Q1) Looking at the profile of the rural consumers in India today, what are the key challenges posed for Indian marketers in the rural market segments? Discuss with reference to an FMCG product and a consumer durable product of your choice?

 

The peculiarity of the rural markets and rural consumers pose challenges to the marketers in reaching them effectively. While making out a case for rapidly developing opportunities in rural markets, one should not underrate the several daunting problems in planning for growth. Marketing activities require transportation facilities. Due to inadequate transportation facilities, marketers find it difficult to reach markets.

 In rural areas, there are no facilities for the public as well as private warehousing. Marketers face the problem of storage of their goods. It is the first important step in product processing. If the packaging cost is high, it will increase the total cost of products. It is suggested that marketers should use cheaper materials in packaging for the rural markets.

 Media have lots of problems in rural areas. The main problem of rural marketing is seasonal demand. It is because 75% of rural income is also seasonal. Rural marketing depends upon the demand of rural people, and demand depends upon income and consumer behavior. Per capita income is lower in rural areas compared to those in urban areas.

 Again, rural income distribution is highly skewed since the landholding pattern, which is an essential asset, is skewed. The literacy rate is low in rural areas compared to urban areas. This again leads to the problem of communication for promotion purposes.

 Distribution costs and non-availability of retail outlets are the major problems faced by marketers. The sole consumption patterns, tastes, and needs of rural consumers should be analyzed at the product arrangement stage to match the rural people's needs. Therefore, marketers need to identify with the social dynamics and approach variations within each village nationally; it follows a consistent pattern.

Step-by-step explanation

Fast-moving consumer goods (FMCG), also known as consumer packaged goods (CPG), are sold quickly and relatively low. Examples include non-durable household goods such as packaged foods, beverages, toiletries, candies, cosmetics, over-the-counter drugs, dry goods, and other consumables.