Q1.

Comment on the future of rural marketing in the lights of this case

study.

 Rural marketing is a process that consist of developing and empowering

people in rural communities through capabilities enhancement and
social innovation to facilitate a two way marketing of economic and
socio goods between rural and urban case.
 This case talks about how usha has worked towards capabilities
enhancement which lead to developing and empowering rural
communities.
 Usha realized that 95% of rural population preferred buying products
from their town or nearby town and did not prefer travelling to bigger
towns to purchase their products, so it focused on the ‘A’-Availability out
of 4A’s. It started the SILAI school thereby promoting ‘A’-Awareness of a
product which priced ‘Affordably’ as is it was highly Acceptable by the
rural consumers.
 Out of the 3BOP strategies companies should focus on 2nd and 3rd ones
co-creation of production with the help of rural consumers and
investment in social business.
 Unless the consumers aren’t reachable and if they aren’t aware about
the products/services of the companies they have no ways of purchasing
it.
 By developing a bond between companies offerings and consumers,
sales can be boosted, companies can enjoy consumers loyalty and they
can gain consumer trust and acceptance.
 Q.2. Is the way forward converting into social business? Any
other alternative?

 BOP strategy 3 says- Go beyond, co-creation of products to

changing the very approach by companies towards marketing-a
complete change in purpose and mindset of companies and
investment in social business.
 This is the highest level a company go upto. By doing so, not only
the rural people will benefit but also the companies. Capability
enhancement of rural people and by doing social innovations or
social business, the companies will open the gates for the
unserved or underserved millions of rural customers.
 If the companies succeed in connecting with these rural people
and build their trust , then the sales of the company will pick up
and so the standard of living of rural consumers will improve as
they will get access to so many products and services.
 Best way to attract rural population is by showing them that the
company cares for them, is aware about their problems will
solve their problem.
 Connecting with rural consumers through social business is a
great way of entering and/or sustaining in rural market. Another
strategy is BOP2- Co-creation. But investment in social business
is a better alternative amongst these two as it helps in
empowering rural consumers.
Q3. What are the benefits to companies of empowering rural
consumers?

 The potential of rural market is visible when we consider two

factors:
1. The general rise in the level of prosperity as people move
away from agriculture and find other employments
2. Large government investments and schemes for rural areas.

 The general rise in the level of prosperity has bought in two

dominant shifts in the rural consumption patterns.
 First, because of lifestyle marketing, people want to use the
products that are used in urban marketing.
 There is also an element of conspicuous consumption, as people
want to show their neighbors that they are modern by consuming
the latest products and brands. Second, better communications
and branding have caused a shift in preference for branded goods.
 That is the reason that rural markets are said to represent huge
opportunities. The factors that have contributed to some amount
of modernization of villages are:
 Large Population: According to the census 2011, 833 million
people, representing more than two-thirds of Indian population,
live in villages. This population is also increasing annually. More
over, these consumers are underserved, that is many companies
simply do not have a presence in rural market. This attracts
companies who see an immense opportunity as urban markets are
saturated.
 Market growth :According to a study by India Brand Equity
Foundation (IBEF), 2015), per capita Gross Domestic Product
(GDP), In India has grown at a compound as annual growth rate
(CAGR) OF 6.2 per cent in its rural regions since 2000.
 Rural per capita consumption increased by 19 per cent annually in
the period from 2009-10 to 2011-12. In the same period, spending
in rural India touched US$69 Billion.
 The market has been growing at 3-4 per cent per annum adding
more than one million new consumers every year.
 Impact of globalization: Improved global information is also
providing rural areas an exposure their productivity and earn
better prices.
 Increase in income and rural indebtedness: Dependence on
agriculture is decreasing due to people finding alternative
livelihoods and also because of the development and social
security programmers undertaken by the government. This has
resulted in an increase in income in rural areas and a consequent
increase in purchasing power.
 Accessibility of market: Improved roads and communications are
changing Indian villages. They are improving access to villages to
sell produce on the one hand and for providing market access to
companies on the other.
 Improved literacy and awareness: Due to increased literacy and
education as well as greater awareness in rural markets , there has
also been change in consumer behavior. Rural customers are no
longer willing to accept inferior products and are gradually
becoming discriminating buyers.
 Mainly, the companies can benefit by educating and empowering
rural people so as to increase their standard of living which will
ultimately lead to rise in income so they will purchase the
companies products and these consumers will eventually be
responsible for the companies profit generation.
 Empowering rural communities may also mean formulation of
salesforce within that rural community. In either ways companies
will benefit by empowering rural consumers and the rural
population as a whole.