Case Study | The uncaptured market: How rural marketing is expanding?

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A rural area
A rural area

Lately, the concentration of multinational organizations and marketers in the country were the urban consumer. But, the effort to reach rural markets was lacking. However, this is transforming.

Online users are rising in the country’s rural regions thanks to the growth of smartphone users and affordable data plans. An approximate of more than 650 million internet users will be there in India, and this is grabbing the attention of marketers to initiate new opportunities as the users are gradually rising.

Currently, out of the total revenue of FMCG majors, the rural FMCG market accounts for 30% to 50%. Furthermore, by 2025, this sector is likely to reach a valuation of Rs 14 lakh crore per year.

But, the question still prevails. What has recently changed in this market that makes it more active than before?

Technology

Currently, organizations are using technology to not only provide a push to their marketing strategies but also to provide a one-of-a-kind product or service atmosphere to the consumers in rural India.

That is where technology plays a crucial role. In many ways, technology has been aiding potential villages, hence idealizing the cost.

Additionally, a collaborated report by Mobile Marketing Association (MMA) and Isobar found that voice search queries are increasing at 270% in the country. That is because Indians are multilingual and are not prompt with typing. It is just quicker and convenient.

Inevitably, the digital atmosphere is engulfing rapidly in rural India, leading to the development of rural marketing.

Dynamics

The presence of wholesale always dominated in the rural markets. While wholesalers are assuring that the last mile is served, they are opposed to selling fresh products.

The traditional wholesale techniques are lagging in terms of moving stocks. That generates issues for new companies in rural areas.

Amid the pandemic, few rural retailers discontinued their visits to wholesale markets, leading the channels to wither. That was when brands had no choice but to widen their reach to rural areas.

Aggregation

Utilizing an aggregation model for the rural areas could be pivotal. It helps brands to capture possible market space while avoiding the exorbitant cost of heavy-duty. Aggregation models aid brands, whether big or small, to broaden their reach faster and cheaper.

Supply chain

Numerous supply chain problems have been prominent in rural markets. However, those issues are being solved by leveraging technology. For instance, delivery confirmations, geo-tagging of vehicles, order tracking, etc. are now becoming popular with the help of technology.

To be frank, never in the past years did rural areas of the country have had numerous remarkable changes. It will result well for brands to activate this opportunity to become vigorous about their rural marketing mix of 4As: Awareness, Accessibility, Affordability, and Availability.

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