A Comparative Study of Growth, Challenges and

Opportunities in FMCG of Rural Market

By :-
Gurunatham Vangara (16BSPHH01C1287)
Varun (16BSPHH01C1511)
Paawan Dayarmani (16BSPHH01C0633)
Madhu (16BSPHH01C0509)
Pankaj Tahilyani (16BSPHH01C0642)
INDIAN RURAL MARKET
 RURAL MARKETING PROCESS
Urban to rural - Major part of rural marketing. Includes transactions of urban
marketers who sell their goods and services in rural areas like pesticides,
fertilizers, FMCG products, tractors, bicycles, consumer durables, etc.
Rural to urban - Basically falls under agricultural marketing. A rural producer
seeks to sell his produce in urban market like seeds, fruits and vegetables, forest
produce, spices, milk and related products, etc.
Rural to rural - Includes the activities that take place between two villages in
close proximity to each other like agricultural tools, handicrafts, dress materials,
bullock carts, etc.
The word rural is so much associated with agriculture and farmers that rural
marketing is often confused with agricultural marketing but it should not be so
as the latter is only a part of rural marketing.
 Characteristics of FMCG & Distinguishing
features of Indian FMCG Business

1.Design and Manufacturing:

LowCapital Intensity, Technology, Third-party
Manufacturing
2. Marketing and Distribution
High Initial Launch Cost, Limited Mass Media
Options, Huge Distribution Network
3. Competition:
GROWTH OF FMCG SECTOR
The Consumer Market, especially Fast Moving Consumer Goods (FMCG), sector in
rural and semi-urban India is estimated to cross $20 billion by 2018 and $100 billion
by 2025, according to an AC Nielsen survey.(400-500%)
According to a study by McKinsey Global Institute (MGI), incomes in India are
likely to grow 3 times over the next two decades and India will become the
world's fifth largest consumer market by 2025.
Single product leaders such as Colgate Palmolive India Ltd and Britannia
Industries Ltd have also witnessed strength in their respective categories, aided by
innovations and strong distribution. Strong players in the economy segment like
Godrej Consumer Products Ltd in soaps and Dabur in toothpastes have also
posted market share improvement, with revived growth in semi-urban and rural
areas.
CHALLENGES FACED BY FMCG SECTORS
FOR RURAL MARKETING

Distribution Cultural Factors

Packaging Low per capita income
Media problems Transportation problems
Seasonal marketing Career in rural market
Low level of literacy rate
 FACTORS ACCOUNTABLE UPCOMING
PARADIGMS OF MARKETING

Increasein purchasing power Affordability

and disposable income Acceptability
Competition in urban market Awareness
Reduction of risk during
recession
Availability
Thank You