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International Business
INTB 2200
Luming Wang

Chapter11: Did U SAY Couch potato ….eh ??? There is a wide gap between urban and rural segments in terms of purchasing power, literacy, and readership habits and media exposure. The purchasing power of the rural consumer has been increasing in the recent years with the rise in income levels due to agricultural prosperity. The trends in media penetration show that the penetration of print media (barring regional publications), radio, and cinema is on the decline in both urban and rural areas; the only media that is growing is Television through Satellite Channels. Also gone are the days when advertisements could be conceived in English and then dubbed in regional languages. The regional language is becoming an important medium of communication for the booming rural market. Developing the right Marketing strategy …….. Marketing companies had initially turned to rural India on a look out for newer markets. Clearly, the possibility of converting approximately 700 million innocents into voracious Cadbury- homping, shampoo lathering consumers has galvanised the industry. The focus of the companies, apart from increasing the geographical width of their product distribution is to capture the television-savvy rural consumer. Introduce their brands and develop marketing strategies specific to the rural consumers. The existence of the divide between the urban and rural consumer triggered these. The seriousness of the efforts is evident from an in-house study conducted by ORG-MARG that revealed that 75% of both Indian and the multinational companies are taking the help of the rural marketing organisations to establish distribution links across the length and breadth of the country. Some of the recent success stories are: An Indian farmer working in jeans sounds improbable. But, Arvind Mills did not think so. In the first two months the demand for its Ruf & Tuf kits crossed a million pieces as against a production capacity of 0.25 million kits. The rural thrust was a part of HLL’s “Operations Bharat”. Last year, HLL perhaps conducted the most extensive exercise of its kind, to create demand for its products in the rural market. They peddled 15-rupee packs containing soap, toothpaste and a fairness cream in 20,000 villages, which resulted in an incredible 30% conversion. Britannia launched Tiger Biscuits especially for rural markets thus increa
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