A research study submitted in partial fulfillment of the requirements for the Degree of Master of Business Administration in International Business

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2007

Urban markets are becoming saturated and to look for growth FMCG companies are looking at the rural or low-income consumers to help generate volumes. When talking of rural markets, most the marketers refer to low-income consumers living in the urban as well as rural areas. Marketing and selling products to these markets requires a thorough understanding of the consumer needs specific to their settings. This paper takes a look at several companies operating in India that have benefited from entering the rural markets. The research goes beyond Prahalad's bottom of the pyramid, where he stresses on poverty in the developing countries and the need for adapted products. Rural markets though are defined by more than just the level of income, as not all rural consumers are poor. When we look at the Indian FMCG market or the developing countries in general, we can observe that local solutions are being created. But, brands alone cannot sustain, a strong communication strategy is required to help establish the brand in the minds of the consumer. Firms need to think globally, but act locally. Companies that benefit are those that look for long-term involvement in these markets, as results may not always be immediate.