The Hindu Business Line : `Create rural-specific products'

Mr N. Murali (centre), Joint Managing Director, The Hindu group of publications, handing over a copy of `The Rural Marketing Book' to Mr R.V. Rajan (right), CMD, Anugrah Madison and President, Rural Marketing Agencies Association of India, at a seminar in Chennai on Friday. Mr Pradeep Kashyap, MART, Delhi, who is the co-author of the book, is on the left.— Bijoy Ghosh

Chennai , July 29

CORPORATES need to devise long-term strategies to tap the enormous potential of rural markets, said Mr Pradeep Kashyap, who heads rural marketing agency MART.

Many companies want to deal with rural consumers through one-off events or promotional schemes, which will only prove futile, said Mr Kashyap, delivering the keynote address at a seminar jointly organised by Ad Club Madras and the newly-formed Rural Marketing Agencies Association of India.

Rather, companies must "create rural-specific products and communication," as well as "explore new distribution models."

As an example, he said, bulb manufacturers can look at designing products that are resistant to wild voltage fluctuations, a typical occurrence in rural India.

The whole process of reaching out to the rural masses will be helped if "corporates hire professionals from rural management institutes."

The seminar was conducted to make corporates aware of the potential of the rural markets. There are statistics to support the claim: Rural India sustains over 700 million people; it accounts for over 50 per cent of FMCG sales and nearly 60 per cent of the durables market; a few years ago, LIC sold 55 per cent of its policies there; and over the last decade, poverty has been brought under control.

And, although the per capita income in rural India is only about half of urban India's, he said, the surplus disposable income is roughly the same, with the rural consumer paying virtually nothing for health, education, housing and food.

"Just because the per capita income is low, marketers dismiss the potential, which is wrong."

For companies lured by the rural market, Mr Kashyap said, the idea should be to "grow the pie, rather that fight among themselves for the existing pie." The two key aspects that would enable this are distribution and pricing.

"Brands rarely fight with each other, they just have to be present at the right place," he said, adding "Jo dikta hai, wo bikta hai (what is seen, sells)."

In fact, "many brands are building strong rural bases without much advertising support."

It is also important to get the SKU (stock keeping unit) right, as the "retailer in a rural area can't afford to keep very many different SKUs."

Earlier, Mr N. Murali, Joint Managing Director of The Hindu, inaugurating the seminar, said there is growing realisation that "systematic efforts need to be taken to tackle rural markets."

Mr Murali also unveiled Mr Kashyap's latest book, The Rural Marketing Book, co-authored by Mr Siddhartha Raut.

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