Skip to main content

India's Rural Market - " The Fortune At The Bottom Of The Pyramid "

India's Rural Market - " The Fortune At The Bottom Of The Pyramid "

For the last five days I was out for a market visit to some of the districts in south Tamil Nadu. I opted to travel by car covering thousands of kilometers through rural areas of Tamil Nadu. It was truly an experience to travel through the villages and my mind was stuck at the rural market - the so called untapped markets !

Each & every small shop I passed through reminded me the two books I have read on rural Indian markets,
 " The Fortune at the Bottom of the Pyramid" By C.K. Prahalad and " We are Like that Only " by Rama Bijapurkar. My eyes were surfing through the leading brands hanging at almost every shop in the villages which include products like Mineral Water, Cola's, Shampoo, Detergent Powder, Tooth Paste and even Packed Snacks.

There was a time when the whole world thought that the rural India was a land of snakes and holy men with magical powers, maybe its time to re-acquaint ourselves with the true identity of the rural side of our country.Coke / Pepsi or Chic / Pantene or Colgate / Close Up or Ariel / Surf or Lays / Cheetos
 are house hold brand names in rural markets today!

"The future lies with those companies who see the poor as their customers" says C. K. Prahalad in his book
 " The Fortune at the Bottom of the Pyramid " . He clearly pinpoints on the raw fact that there is vast potential for profits in the rural markets. He says, globally the bottom of the (economic) pyramid consists of 4 billion people living on less than $2 per day. If we stop thinking of the poor as victims or as a burden and start recognizing them as value-conscious consumers, a whole new world of opportunity will open up. Prahalad suggests that four billion poor can be the engine of the next round of global trade and prosperity, and can be a source of innovations.

He cites numerous examples of companies that have generated wealth for the poor and profits for themselves by focusing on underserved rural markets. As urban markets become saturated, more businesses are retooling their marketing strategies, and in many a case their products targeting rural consumers with tiny incomes but rising aspirations, giving birth to a new era of rural marketing.

To expand the market by tapping the countryside, more and more MNC's are foraying into India's rural markets. Among those that have made some headway are Hindustan Lever, ITC, Coca-Cola, LG Electronics, Britannia, LIC, HDFC Standard Life, ICICI, Philips, Colgate Palmolive and most of the Telecom companies.

In this article let me share with you my views on Opportunities & Challenges for all the Companies targeting to tap this huge rural untapped markets

Popular posts from this blog

Overview of Social Media Marketing

Social media marketing refers to the process of gaining traffic or attention through social media sites. Social media itself is a catch-all term for sites that may provide radically different social actions.

Use social media marketing to listen, analyze, publish, and engage across networks. Align your marketing, customer service, and sales efforts on social — strengthening customer relationships.

Listen and analyze. Hear conversations from over 650 million different sources with social listening tools. Discover what consumers are saying about your brand, your products, and your competitors. Discover trending topics and influential conversations — then use that information to inform your marketing decisions.
Plan and publish. Plan, execute, and track social media marketing campaigns. Customize and craft your content from multiple sources, while protecting your brand with configurable approval rules and a full audit trail. Manage social strategy, tailor campaigns, and drive social awareness…

Future Of Digital Marketing

The Origin of Digital-Marketing: The term 'digital marketing' was first used in the 1990s. In the 2000s and the 2010s, digital marketing became more sophisticated as an effective way to create a relationship with the consumer that has depth and
While the term 'digital marketing' may not have been used until the 1990s, digital marketing itself has roots to the mid-1980s when the Soft Ad Group, now ChannelNet developed advertising campaigns for several major automobile companies, wherein people would send in reader reply cards found in magazines and receive in return floppy disks that contained multimedia content promoting various cars and offering free test drives.
The rapid evolution of digital media has created new opportunities and avenues for advertising and marketing. Fueled by the proliferation of devices to access digital media, this has led to the exponential growth of digital advertising.
In 2012 and 2013 statistics showed digital marketing remained a gro…

Why Digital Marketing and Web 2.0 Important To Business?


Digital marketing technology helps you understand and reach your audience most effectively so you can generate the most revenue.  For advertising campaigns, ad serving technology makes it possible to serve the right ad at the right time to right person.  That means your advertising is being as productive as possible. When technology is working for you, you’ll understand your audience at a whole new level, and it will show up on your bottom-line.

NEED FOR THE STUDY The pace of change in today’s business environment is faster than ever. New markets, technologies, and opportunities are arising on a daily basis. Current ways of doing business need to be adapted or they will become outdated. Organizations and enterprises have to become agents of evolution to be successful; as victims of evolution they risk failure. With so many dynamics operating in the global economy, Digital Marketing is now more than ever an effective tool to make a company stand out from the pack.

The pe…