MBA ProjectsMarketing

A Project Report On Rural Marketing


  1. The concept and scope of rural markets
  2. The nature and attractiveness of rural markets
  3. Roadblocks of Indian Rural Markets
  4. Solutions to problems of rural markets
  5. Definition Of Rural Market And Rural Marketing

Definition Of Rural Market And Rural Marketing

India is a land of diversity and about 70% of the Indian population lives in villages. These villages contribute to the economic development of the nation through the production of food grains, vegetables, fruits, etc. Export of these agricultural commodities results in the generation of capital and earnings of foreign exchange.

There are 600,000 villages in India. 25% of all villages account for 65% of the total rural population. So we can contact 65% of the 680 million or 700 million population by simply contacting 150000 villages – which shows the huge potential of this market. Indian rural market has a vast size and demand base. Before going into more aspects of rural marketing, let us understand how rural is

Rural Marketing

Rural marketing involves the process of developing, pricing, promoting, and distributing rural-specific products and services leading to an exchange between rural and urban markets which satisfies consumer demand and also achieves organizational objectives. It is a two-way marketing process wherein the transactions can be

Urban to Rural: It involves the selling of products and services by urban marketers in rural areas. These include Pesticides, FMCG Products, Consumer durables, etc.

Rural to Urban: Here, a rural producer (involved in agriculture) sells his produce in the urban market. This may not be direct. There generally are middlemen, agencies, government co-operatives, etc. who sell fruits, vegetables, grains, pulses, and others.

Rural to rural: These include selling agricultural tools, cattle, carts, and others to another village in its proximity.

Features Of Indian Rural Markets:

1· Large, Diverse, and Scattered Market: The rural market in India is large, and scattered into a number of regions. There may be less number of shops available to market products.

2· Major Income of Rural consumers is from Agriculture: Rural Prosperity is tied to agricultural prosperity. In the event of a crop failure, the income of the rural masses is directly affected.

3· Standard of Living and rising disposable income of the rural customers: It is known that the majority of the rural population lives below the poverty line and has a low literacy rate, low per capita income, societal backwardness, low savings, etc. However the new tax structure, good monsoon, and government regulation on pricing have created disposable incomes. Today the rural customer spends money to get value and is aware of the happening around him.

4· Traditional Outlook: Villages develop slowly and have a traditional outlook. Change is a continuous process but most rural people accept change gradually. This is gradually changing due to literacy, especially in the youth who have begun to change their outlook in the villages.


Title – A Project Report On Rural Marketing

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