The Hindu Business Line : Corporates sharpen focus on rural markets

According to industry analysts, the budget for experiential or below-the-line marketing has grown by 15-25 per cent in the last six months with companies tweaking their budgets to accommodate the rural market which has been hitherto less affected by the economic slowdown.

A study by Rural Marketing Association points that rural incomes are on the rise following a farm loan waiver and hike in support prices.

Growing significance

“Companies are recognising the growing significance of rural marketing and many have come to realise that an experiential approach helps in popularising the brand besides addressing any flaws at the end points itself,” says Ms Ambika Sharma, National Head for Jagran Solutions.

She said that FMCG, durables, automobile and even insurance products are finding succour in experiential marketing as companies are keen to tap the rural audience.

Durables company Samsung India is also looking to increase penetration in the rural market.

Initiatives

“You cannot cut-paste urban strategies to upcountry markets. We will be investing heavily in BTL activities.

“Customisation and functionality will remain the key marketing element in the rural channel. However, this doesn’t mean that we will not be introducing high-end products,” said Mr R. Zutshi, Deputy Managing Director.

Not surprising, since 59 per cent of sales of consumer goods come from rural areas and small towns.