Competitive and innovative marketing strategies for tapping vast rural potential in India

Rural India is on the threshold of momentous change. With a population of 790 million 50% of India's income contribution comes from it. Nearly 100 million people have evolved out of poverty in the last 10 years. Rural India will be a market worth USD 500–600 billion by 2020, according to McKinsey report. Rural consumption levels are also anticipated to equal current urban levels by 2017. The economy is vibrant, incomes are rising; and the habits, preferences and attitudes are changing rapidly. In view of the large investments made by the government in rural infrastructure pushing income and demand level, the prospects are seen bright for rural India. With empowerment of rural people with education, employment, higher purchasing power, better media exposure, better connectivity with outside world, they provide a massive unexplored pool of consumers. To be successful in the rural market, companies will have to be innovative and sensitive while devising marketing strategies. Traditional urban marketing strategies will have to be localized as per the demands of the rural market. The current paper attempts to discuss the challenges and opportunities in rural markets. It also covers the innovative marketing strategies adopted by key marketers to enhance their brand visibility, goodwill and sales in the mystic rural markets of India.