The following threats faced by the companies in rural markets that are

Seasonal demand: - Since 75% of rural income is generated through agriculture operation which is seasonal; the demand pattern is also seasonal.Product positioning- In a highly heterogeneous market, product positioning becomes very difficult. The product range should be very large. A large product range will give rise to distribution problems.Vastness and Uneven spread- The number of villages in India is more than 5 lakes, which are not uniform in size .Nearly 67% of the villages have only a population of less than 500 persons, which account for 26% of the rural population. About 50% rural populations live in villages with population’s size ranging from 1000 to 5000 persons. Only 18% of the populations live in villages with populations of 5000 persons and above. Hence one can only think of tackling about 2 lakes medium and large villages. Physical distribution & channel management:-The problems of physical distribution and channel management adversely affect the service as well as the cost aspect. The existent market structure consists of primary rural market and retail sales outlet. The structure involves stock points in feeder towns to service these retail outlets at the village levels. But it becomes difficult maintaining the required service level in the delivery of the product at retail level. Strategies for tackling these issues: -Rural marketing strategies require an appropriate segmentation of the highly heterogeneous rural market and identification of their needs and wants. From the marketing mix point of view, these strategies mix point of view, these strategies will revolves around the 4P’s – Product, Price, Place and Promotion to examining these strategies. The concept of Social marketing which is appropriate for rural market, since the standard of living is very low and efforts to educate the consumers could result in expansion and growth of the market in a generic sense.Rural Kid –An Important Player-In rural India , it is the age group b/w 8 & 15 that influence more purchase than any other group , they have a batter retention of messages and often plays back these messages to others too, despite the fact that product is not targeted towards them. Kids are sent by their mothers to purchase something without specifying a brand. So they tend to ask for product they have seen or heard on radio or T.V.Social marketing:-This concept was introduced in the early seventies and applies marketing principles and techniques to sell a social cause or idea or behavior. This is also known as Social Cause Marketing, Idea Marketing Companies or organizations will have to follow certain steps in convincing and implementing Social marketing programs: - Establish operating procedures, Decide on the product mix for rural marketing, properly packaged & positioning the products, Price estimates opportunity cost.Plan the advertising & promotions.The companies should realize that social well being is not against private interest and it is good for business too, in the long run.For Overcoming Threats – Since demand in rural is seasonal so companies can go for sale in bulk in most demanding period with attractive schemes. Companies should organize huge

advertising campaign before demand season. Mostly rural people go for credit purchase with their shopkeeper so companies should give attractive schemes for them so that they will promote their product. Nearly 67% of the villages have only a population of less than 500 persons, which account for 26% of the rural population, to target this population companies should established a rural center between 3 villages because villagers go nearby city to buy product. Promotion can also be done through the phones.Companies can also go to sell that product in rural that are not sold in urban with cheaper price. Companies can also finance to those who are appearing in election.By understanding the cultural & social values: -Companies have recognized that social and cultural values have a very stronghold on the people. Cultural values play major role in deciding what to buy.Moreover, rural people are emotional and sensitive. Thus, to promote their brands, they are exploiting social and cultural values.By developing rural-specific products:- Many companies are developing rural-specific products. Keeping into considerationthe requirements, a firm develops these products. Electrolux is working on a made-for India fridge designed to serve basic purposes: chill drinking water, keep cooked food fresh, and to withstand long power cuts.By communicating & changing quality perception:-Companies are coming up with new technology and they are properly communicating it to the customer. There is a trade-off between Quality a customer perceives and a company wants to communicate. Thus, this positioning of technology is very crucial. The perception of the Indian about the desired product is changing. Now they know the difference between the products and the utilities derived out of it. As a rural Indian customer always wanted value for money with the changed perception, one can notice difference in current market scenario.Whether you are a small business or a big organization, forming a marketing strategy targeting to the right segment is essential. It gives a firm to a clear understanding about what you plan to achieve though your target marketing like India rural market and plan to achieve it.Without forming a marketing plan you may spend on different methods of marketing but you will not see the proportional returns in the form of sales or whatever it is your marketing plan is supposed to do. Without a marketing plan you are shooting at a target in the dark.A marketing plan is made up of two parts:Identifying and choosing a “target market”. The number of middle income house hold in India is about 27Mn where as the rural India contributes as much as 29M and the growth of rural pre-capita income has also recorded a growth as much as urban growth from its earlier stage over the period of time.Identifying various aspects of the “market threats” with respect to the below given parameters.Rural India is an economy comprising only agriculture and nothing else; that means the purchase power fall below the middle class and still growing to the middle class. So the product and segmentation targeting to the target should be carefully designed.The Rural consumers in India can be classified on basis of their economic status further within the segment to get a better idea about the populations buying behavior.Though the purchasing power of the rural middle class is lower than that of urban middle class So the immediate number in analysis shows nothing attractive. 70% of India’s population lives in rural and the little bit less power of purchase can bring magic numbers in volume. So a right customization for my rural India is rightly required to tap it.

Scattered sector create a supply management issue.Micro marketing planning and a close tracking with a map of each geographic sub segment should be organized to play a winning game to handle it. Mix of developed and developing stage of rural will create confusion in implementing strategies.This should be handled through a market analysis in micro level as many part of the rural market has already grown as much as the urban markets are now. A right approach with case to case analyses can only help to resolve it.