10 - Chapter 3 PDF

CHAPTER - III
REVIEW OF THE LITERATURE

REVIEW OF THE LITERATURE
The state and markets are the two main factors influencing development^ The
first one is largely vested with the responsibility of community development,
control over static and administrative affairs and other development concerns.
As regards the market's task and responsibilities, important among them are
economic development, income generation and employment generation. The
markets in a rural setting are governed by the rural power structure with its
implicit social, political and trade dimensions.
The major inhibiting factors to rural marketing are institutional and infrastructural
issues; many of these have yet to be addressed by government policies, and
need to betaken fast-forward to implementation.
Corporate marketers have been quick to hit the rural dirt-tracks but they came
adequately prepared. Hard selling to the heart of India is a formidable challenge
because reaching 6.3 lakh villages and feeding a retail network of over 20 lakh
village shops is a distribution nightmare,says Pradeep Kashyap^ ,and suggests
innovative and cost effective ways to reach the rural consumer through haats
(weekly village markets) and melas{ fairs).
Most companies in FMCG and agri input sectors would define Yural' as any place
with population upto 20,000. Similarly, companies selling durable goods consider
any town with population below 50,000 as rural. These are some of the
challenges that companies face in tackling rural markets^.
For the Indian farmer, agriculture is more a way of life than a profession. This
is the something that professionals who have trained at management schools
Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 78

With reference to Agriculture Inputs - HOPE Pipes -a case study -
Amravathi University-2005
refuse to understand, and often fail in marketing agri-inputs to the farming
community. The need of the hour is a management strategy to marl<et farm
inputs because while farmers show eagerness to learn about new technology but
may not adopt readily the inputs that have the potential to improve their
productivity, which consequently, will give them the means to improve their
economic and social well being, says R L N Murthy^.
There are more than 38 lakh retail outlets in rural India, which averages to
averaging 5.8 shops per village. (The term "shop" refers to any type of premises
- huts, stalls, or shacks that sell goods). Overall, the rural market has been
growing at 3-4 per cent per annum, adding more than 10 lakh new customers
evey year. It now accounts for close to 50 per cent of consumption of Fgoods
produced by the MCG sector in India"^.
According to Brinda Murthy and Rathindra Basu^ rural marketing in India is

largely perceived as a sellers market. The primary factor for its success still
remains a very well established distribution network. The rural consumer
is also very price-sensitive, which gives local manufacturers and marketers a
competitive edge. Literacy levels amongst the rural masses being low, coloured
pictures and packaging will definitely attract attention, and could also contribute
to an increase in sales.
There have been some endeavours to comprehend the complexity of

consumption patterns in rural markets based on empirical studies conducted by
research organisations. However, understanding of the structure of rural markets
is still at a nebulus stage. The focus of available research has mostly been on
analysis of markets, and more specifically, on agricultural commodity markets^.
Ph.D Thesis: Competitive Advantage Strategies for Rural IMarl<eting 79

In the years to come, information technology is expected to play a vital role in
bringing the power of technology to villagers located in remote corners of this
vast country. It is fast emerging as the latest facilitator of positive change in
various walks of rural life, and the domain of'Rural Marketing' is no exception''
The word-of-mouth exchange is still a reliable source of information that

consumers in rural areas have confidence in and rely on, and their trust in this
information channel is greater when compared to consumers in urban areas^.
The Indian rural markets are vast and in most cases still an enigma to marketers.
What then is the biggest challenge that faces marketers of fast-moving consumer
goods? Simple, it is to increase penetration and consumption in rural markets.
Rural markets be damned. Fickle, slow moving, irrational, often ludicrous - are
they perhaps a mix of it all. It is difficult to put the finger on the pulse of the
rural consumer. Given the lack of infrastructure, facilities like power and difficult
logistics making for high cost of operating in rural markets, says Sachin Baxi^.
According to G Srinivas Rao^°, the Indian market with its vast size and demand
potential offers great opportunities to marketers. The rural markets provide vast
potential as many new products have already made their entry into them. Thus,
the rural market has been growing in magnitude for both traditional and modern
consumer goods and services. In spite of its large size and high potential, many
marketing firms are not able to tap the potential of the rural market because of
the problems they face in selling goods there.
There is a need for a thorough examination of the rural marketing scenario. For
this purpose, efforts should be made to analyse the rural market environment,
and measures initiated to develop the rural market by charting appropriate
Ph.D Thesis: Competitive Advantage Strategies for Rural IMarketing 80

Witli reference to Agriculture Inputs - HDPE Pipes -a case study -
marketing strategies. Tiie timely supply of modern agricultural inputs to farmers
of all categories at reasonable prices can be facilitated by the setting up of an
efficient marketing system.. These inputs could by sold be projecting them as a
means to improve farm productivity which would improve farm incomes, and
ultimately lead to economic and social welfare^^
RajagopaP says that rural marketing is a mix of farm and non-farm produce
marketing activities. The role of rural marketing needs to be understood in view
of the social dynamics and various economic and operational gaps therein.
Thus, appropriate planning is needed for rural product marketing in terms of
trade channels, developing infrastructure, and tapping technology in an attempt
to improve the economic efficiency of marketing operations.
The marketing mix strategy has to flow from a thorough understanding of the
rural consumer. Therefore, in the first instance, the rural consumer has to be
understood in the right perspective, his background and mindset needs to be
explored, and an assessment made of how this consumer is different from his
urban counterpart^^.
According to S S Acharya and N L Agarwal^\ the agricultural situation in India

has undergone a rapid change during the last two decades. Investment in
agriculture sector - both in the public and private sectors - has risen. Agricultural
production has achieved reasonable growth,, but the growth rate has not only
to be maintained, but accelerated; efforts also need to be directed to minimise
fluctuations in agricultural production.
Efforts are already underway to evolve location-specific technologies, transfer

then to farmer's fields, and assure quality input supply to farmers at the right

time, and place. The rate at which farmers adopt new technology, and farm
inputs that increase yields, will affect the prices of farm inputs and output.
Simultaneously, rural consumers also expect that consumption goods will be

available at reasonable prices. To achieve these objectives, the marketing
system for agricultural commodities and inputs has to play a very crucial role.
This necessitates an understanding of the marketing system and market
structure for agricultural products and inputs by all the sections of the
population, viz., farmers, traders, consumers, extension workers, scientists,
sociologists, administrators, planners, and politicians.
Conditions in rural markets do not assume an organised functioning pattern. The

status of rural marketing needs to be understood in view of social dynamics and
various economic and operational gap theories. Thus, there needs to be greater
emphasis on appropriate planning for the rural market- in terms of creating the
channel infrastructure, adopting technology, and understanding the behaviourql
dimensions - to achieve operational efficiency^^
Rural marketing has often been defined in a narrow sense to include only the
marketing of agricultural production. Marketing of agricultural production has
received adequate attention of researchers, policy-makers, and the central and
state governments resulted. As a result, there are about 5000 agricultural
commodity markets in the country, which are being regulated by the State.
The advent of commercial and market-oriented farming with the help of modern
agricultural technology, necessitated the use of manufactured inputs like
fertilisers, pesticides high-yielding varieties of seeds, electric pumps and
frictionless pipes. Thus, the definition of rural marketing has expanded in scope.

The term now encompasses the marketing of agricultural production, as also the
agricultural inputs required for production Rural marketing in thus a two-way
process. Rural marketing now encompasses not only marketing of products
which flow to rural areas - be it for production or consumption, but also products
which flow to urban areas from rural areas, says T P Gopalaswamy^^.
Rural citizens who occupy a pivotal position in rural markets, are both buyers as
well as sellers of goods and services. Hence, changes in rural markets, changes
in rural marketing and their inter-relationship, affectsthem both in the capity of
sellers as well as buyers. There two aspects independently as well as collectively,
have a bearing on rural market situations^''.
According to C S G Krishnamacharyulu and Lalitha Ramakrishnan^^ rural

marketing can be seen as a function which manages all those activities involved
in assessing, stimulating and converting purchasinge power into an effective
demand for specific products and services, and moving them to the people in
rural area to create satisfaction and improving their standard of living. A critical
issue for marketers has been the rampant use of deceptively similar-looking fake
goods that sell at lower prices. The best way to counter fakes is through better
presentation and creating awareness^^.
The interesting position that finally emerges abut the profile of the rural
consumer is that one cannot proceed on the basis of a stereotype of the rural
consumer, or of rural consumer behaviour. The most interesting aspect is that
the rural market is growing at an astounding rate of 25% per annum^°.
The relationship between co-operative and rural marketing can be termed as

catalytic. Cooperatives in rural areas provide impetus for the growth of rural

demand by playing a major role in improving the socio-economic conditions of
tlieir members ^^
The first great boom is over. "Now companies must dig deeper to create a
second sustained surge. With the dominant position that the rural market in
India has come to occupy in recent years, the country is is all set for rapid rural
transformation. India is a huge dormant market, but good marketing can help to
awaken the giant, says Balakeritz^^.
The challenges lying in wait for rural marketers are many, and they are also
tough. New approaches have to be adopted and new models have to be
developed that are both imaginative and innovative. The self-help groups, being
apart of rural community, can be a good source of information. They can give
insights that will help design the behavioral models that facilitate product
marketers to understand their target audiences^^
Rakesh Handa^'^ says the rural markets are neglected not because companies
would need have to develop new marketing strategies, but because of
perceptions based on biased industrial views. Commonly followed by all
companies due to labour involved in developing these markets. He further
reaffirms that if they develop these markets, it Is possible that they may not be
able to cope with the demand that would be generated.
In any economy, marketing is a critical factor that can affect all stages of
economic development. In a country like India, which is largely agrarian,
marketing of goods and services to consumers in rural areas can contribute
significantly to rural development. Marketing activity can help introduce an
entirely new line of products based on new concepts or principles, and reach
Ph.D Thesis: Competitive Advantage Strategies for Rural Marl<eting 84

them to potential buyers. It can bring a range of innovative products to rural
liousel-iolds, and help find a market for their produce products, thus contributing
to rural development, says Vigneshwara V^^
Bose^^ says that the rural market, however, has always been seen as an
unmanageable territory; due to its vastness and scattered spread managing it
calls for a hard look at available data.
The observations of a pilot study conducted by ICICI^'' on rural marketing make

interesting reading. It would appear that the village shops have an important
role to play from the point of view of making goods of frequent use available to
the bulk of the rural population, notably the less well-off sectors among rural
communities. It found that strengthening of road networks would help retailers
operating in rural areas. Given their low stock turnover, it suggests that
manufacturers incur some of the distribution expenses that they are normally
pass on to small retailers.
Manufacturers could come up with incentive schemes to encourage small

retailers to stock their products. These incentives could take the form of partial
reimbursement of expenses that the retailer incurs to move goods from the
distribution network to his retail outlet. Such a move would ensure that the
products are available at the village level at the same price that they are sold at
in the smaller towns. This will ensure that the retailer stocks a greater variety of
goods and the consumer will not have to pay more for the privilege of buying the
goods at outlets that are within easy reach.
According to an ORG report^^, the rural markets for packaged consumer products
has grown nearly threefold, from Rs. 733 crore in 1984 to Rs. 2,083 crore in

1989. The contribution of rural sales to the all-India sales has grown
substantially from 28 per cent in 1984 to 37 per cent in 1989. While the sale of
soaps to urban consumers increased by 1.3 % each year, the sale of toilet soaps
galloped ahead at 15 per cent a year during the period 1984-89. During the
same period, the demand for washing powder increased by only 5 per cent in
urban areasa but grew by 20 per cent among the rural populace. As for dry
battery cells and shaving blades, the rural market registered an annual growth of
5% while their sale actually declined in urban areas.
The survey conducted by N Raghupathy and Subhas C Mehta^^, corroborated

that in rural Tamil Nadu there was a poor penetration of consumer durables
and that manufacturing companies have failed to exploit the market potential
in rural areas.
The socio-economic survey by Hindustan Lever Limted^° revealed that the high
percentage of school-going children will increase substantially as literacy levels
are poised to rise during the next decade. An encouragingly high proportion of
the village population - particularly among upper income groups - already read
language newspapers and magazines, and are regular radio listeners.
The survey, conducted by advertising agency Clarion Mc Cann~^^ has revealed

that radio and point-of-sale publicity can be two verymost effective media to help
manufacturers boost sales in rural areas. Today, bout 90.27 per cent of the
population spread over 79.78 per cent of India's land area is covered by
medium-wave broadcast.
A survey in rural Tamil Nadu shows that upper income households (those with
income above Rs. 12,000 per annum) are beginning to acquire a number of

consumer durables like scooter, furniture items - such as sofa-cum-bed, sofa and
dining table, appliances - like electric iron, pressure cooker, refrigerator, hot
plates, camera, sewing machine and record player. More than 10% of the
households surveyed owned a number of these items, and good opportunities
exist for manufacturers to further explore the market"^^.
Nagarajan^^ suggests the use of many media channels, viz, posters, signboards,
magazines, hoardings, wall sites, shandies or mandis, participation in fairs,
exhibitions and meSas, use of propaganda / demonstration vans, etc. to win
favour with rural customers. He also suggests that while marketing in rural
areas, advertising strategies should lay more emphasis on using the media
channels suggested and time the release of ads with events and festivals
observed in the villages.
A socio-economic survey conducted by the management services group of

Hindustan Lever Ltd ^"^ covering 64 villages in four districts (Ludhiana, Punjab,
Bhilai, Madhya Pradesh (now in Chattisgarh), Tanjore, Tamil Nadu and Junagarh,
Gujarat) yielded interesting results. It showed that with the significant exeption
of farm labourers, rise in income levels in rural households led to additional
expenditure on farm inputs ( tractors, pumps, pipes, farm implements)
ornaments, expensive clothes,consumer durables and food. Expenditure on non-
durables items such as soap, edible fats, toiletries and oils were at the end of the
shopping list.
Pradeep Kashyap^^, President, Marketing and Research Team ( MART) which

conducted an exhaustive study of the country's - traditional haats ( weekly rural
markets) and melas\v\ 1995 says. There are in all 47000 haats he\(ii throughout
the country, mostly on a weekly basis. Out of the sample of 128 haats \h3\. we
Ph.D Thesis: Competitive Advantage Strategies for Rural IMarketing 87

covered for an in-depth study, not even in one did we find a product from an
FMCG manufacturer or a marl<eter of consumer durables. Of the 47000 haats
about 15000 are big ones, catering to populations of 2000 plus. Considering
them frequency, haats can at the very least, be turned into replenishment
points for rural retailers, making the logistics of rural distribution much easier,
adds Kashyap.
Multi-national companies are going deep into rural India to sell soaps,
detergents and toiletries. Multinational companies HLL, P&G and Indian
companies like Tata, Nirma and Godrej are all in the race to sell packaged
consumer goods in the rural market. Gandhiji said that India lives in its villages.
The modern markets are realising that truth now, says Naidu-^^. He adds that
the rural market will soon outstrip the urban market. It appears to be a market
segment where consumer goods manufacturers can gainfully sell their products
even as they satisfy a need.
The major reasons for the small size of the rural market are low purchasing
power, slow rate of change in attitudes, widespread dispersal of villages,
inadequate road networks and communication facilities. The other factors
impeding rapid growth of rural markets are scant marketing research, poor
media reach, a limited number of outlets and the widespread availability of
spurious products, as observed by Rajendra Aneja^''.
The development of rural market will involve additional cost both in terms of
promotion and distribution. This cost of developing markets will have to be built
into the pricing policy for specific brands. It would be a welcome step if the
additional distribution cost which is incurred in the development of the rural
Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing

Witln reference to Agriculture Inputs - HOPE Pipes -a case study -
market, in recognised by the Government in the Interest of evolving a uniform
pricing policy for both rural and urban consumers.^^.
Purushotham Rao ^^ in his study says that the media habits in rural areas were
found to be poor, resulting in low awareness. The task of the marketer would
be to develop awareness among rural consumers through retailers. The
implications are clear: to succeed in rural markets, a manufacturer or retailer
should be quick to adopt to change. The penetration of rural markets is easier
when marketers introduce economy-oriented products that stress on functional
benefits in their promotional efforts.
Venkateshwarlu ^^ in his study says that those in the corporate world who are
dismayed by the low brand awareness in the rural sector might be shaken by the
fact that is the urban sector, even some commonly used products command only
moderate brand recall. He reports that rural buyers are in the dark when it
comes to knowledge of consumer durables, and that brand awareness among
them is very low - except for some products like watches and two-wheelers.
The Indian rural market is vast and expanding, and the manufacturers consumer
products have started to tap this growing market. While analysing the
scenario of rural markets, it is necessary to note that institutional reforms
increased investment in rural development. No uniform strategy can be adopted
to market goods which are varied in nature, says Patro''^ Hence he has
recommended that a region-wise study of various marketing parameters be
undertaken for a better understanding of the rural marketing system.
According to Mukunda Das and Somnath''^ the values and aspirations of the
heterogeneous rural populace are different from those of urban people. The

With reference to Agriculture Inputs - HDPE Pipes -a case study -
authors note of course logic and internal consistency on which so many major
markets provide themselves have their place. But they offer are not enough
while dealing with diverse markets.
A majority of rural buyers believe that since prices are generally highest in
villages, they prefer to go for economy products, says Rama Rao"*-^. He adds that
the perception of products varied with income levels. Most of the rural
consumers make their purchases on the advice of retailers and pay little or no
attention to advertisements. Rao also observes that the influence of peer groups
and neighbors is substantial in rural markets.
Sontakki'*'* says that marketing in rural areas has varied conceptual dimensions.
Rural markets offer excellent opportunities to become focal centres for rural
development. Today rural folk are not as conservativeon as they were in the
past. They are responsive to new ideas, technologies, products and services and
the level of education amongst them is rising. They now have greater access to
purchasing power, but it needs to be channeled properly.
Ramaswamy and Nama Kumari''^ explore the problems of rural markets. They
observe that problems result from the peculiar dynamics of the rural market of
India - the uniqueness of the rural consumer, the uniqueness of the structure of
the rural market, and the unique distribution infrastructure in the rural areas.
The special problems in physical distribution in the rural context relate to : (i)
transportation (ii) warehousing (iii) communication. Though India has the
fourth largest railway system in the world, many parts of rural India remain
outside the rail network. As far as road transport is concerned, the constraints
are two-fold: (i) inadequate road networks (ii) constraints of carriers. Nearly
50% of the 6,38,365 villages in the country are not connected by roads at all.

Today, many parts in rural India have only Kacha roads. And even these kacha
roads become unserviceable during the monsoons leaving the rural interiors
unconnected, and in isolation. Inadequacy of suitable carriers is the second
constraint just as in transportation, in warehousing agency in the interiors of
rural India. Posts, telegraph and telephones facilities are quite inadequate in the
rural parts of our country. So are distribution networks, banking and credit
facilities. Even after the expansion in rural banking facilities in recent times,
there is only one branch for every fifty villages.
W W Rostow"*^ has stressed the need for national market development processes
in developing countries to lay emphasis on rural areas. He suggests there are
four major jobs that might be done, and that they should be done
simultaneously as part of conscious national strategy, with public and private
authorities working in tandem. The four elements are: (i) a build-up of
agricultural productivity, (ii) a revolution in the marketing of agricultural
products in the cities, (iii) a shift of industry to the production of simple
agricultural equipment and consumer goods for the mass market, and (iv)
revolution in marketing methods for low-cost manufactured goods that can be
marketed in the rural areas.
According to other estimates, the market for clothing cosmetics, toilet soaps
washing soaps, books, newspapers and journals, household utensils, torches and
batteries, sewing machines, electrical goods and bicycles will grow spectacularly
in rural areas. The total expenditure In rural areas on non-food items is likely to
be 2 to 2.5 times more than in the urban sector. The same author estimates that
the share of the rural sector for items like domestic utensils, cotton textiles, and

bicycles is about 80 per cent of sales, for woolen clothing over 54 per cent, and
over 50 per cent for toiletries and detergents.'*^
A "Survey of living conditions in a few villages in India" "^^ conducted by the

Biria Institute of Scientific Research reveals that 43 per cent of the households
in the villages surveyed (in West Bengal) did not own a radio, record player, tape
recorder, camera, pressure cooker, or wrist watch. The comparable figure in
Maharashtra stand at 38 per cent. Only 27 per cent of the households in the
sample for Maharashtra possessed either a radio or a transistor, while
respondents from 31% of the households reported owning a wrist watch.
Sanal Kumar and Bhupendra Suri"*^ conducted a survey on consumer response to

promotional efforts in rural areas. Their study examined consumer responses
to efforts to promote consumer durables and non-durables - and where possible
- across urban and rural markets. They found that the dealer recommendation
was an important factor affecting the purchase of consumer durables, and that
consumers relied on his assurance on quality, and were guided by him in
selecting the brand. Price was also found to be an important factor while
selecting brands. It is often used more as on eliminating factor, if there is dealer
assurance on quality. Awareness of brands came from friends, relatives, or
television advertisements in the case of non-durables, while knowledge and
further information came from friends, relatives, and dealers.
While constituting nearly 80 per cent of the population, the lowest income
groups in India account for 63 per cent of the total spending in 22 FMCG
categories. In rupee terms, this means that this group spends nearly Rs. 42,000
crore on FMCG goods; in contrast, high-income groups who comprise only 3.5
per cent of the population consume goods to the value of Rs.7000 crore.

Witli reference to Agriculture Inputs - HOPE Pipes -a case study -
Amravathi Universit/-2005
India has 6,38,365 villages, the customers in these markets are served by 5.5
lakh outlets, supported by long and short channels of distribution called
intermediaries. Perhaps the channel with the best chance to reach rural
audiences are the traditional melas and haats. Over 47000 haats are organised
every year in India and their average daily sales are Rs. 2.25 lakh. This works
out to Rs. 825 crore a year. And at the 25000 melas conducted in a year, sales
figures are over Rs. 350 crore per annum. Thus, Rs. 5000 Crore of merchandise
is sold through these mobile and temporary markets, says Shard Sarin^°.
It Is a business model that is innocuously labeled ' Rural consumption'; if it

works, it could radically change the potential that FMCG major HLL could tap in
India's rural markets. The model aims at stocking goods at points where rural
consumers can reach them. This is done by extending micro-credit to rural
consumers, and proliferating the distribution outlets that villagers can access.
The logic in simple. Of the 6 lakhs villages in India, Lever's products reach just
70,000. Even among these, there are thousands where 70% of Lever's products
are not consumed, often because retailers don't want to stock them because of
low demand. Lever wants to crack that by generating demand. They are doing
so by taking a leaf out of the success of the Grameena Bank in Bangladesh.
Lever wants to tie-up with institutions like the National Bank for Agricultural &
Rural Development (NABARD) and non-government organisations (NGOs) to
provide small loans to villagers, who could use-part of it to buy HLL products
and sell them in their villages, say Sanjay Narayan and Roshi Jakar^^
An economic slowdown typically breeds innovation, as it did In 2001. The first

was Hindustan Lever's successful adoption of the Grameena Bank concept of

micro banking to spur demand for its products where none existed before. The
company's success with this initiative in rural segment of Nalgonda district of
Andhra Pradesh could well change the way products and distributed in rural
India, says Ashetosh Sinha".
Rural media habits according to NRS 2001": The print medium reaches 17.4 per
cent of rural adults, television penetration reaches 42 per cent of rural house
holds, C & S penetration is 8.8 per cent of rural households, C& S viewership
(at least 1 hour a week ) is 5.9 per cent for rural adults, radio listenership ( at
least 1 hour a week) stands at 26.6 per cent for rural adults, and cinema-going
habit ( at least once a month ) is prevalent among 11 per cent of rural adults.
According to Pradeep Kashap^'* of MART, "there is no attempt to segment the

rural market. As a result, there is a total mismatch between the aspirations of
the rural consumer and what marketers have been thrusting on them" He adds
that social norms impact the rural consumer in ways different from his urban
counterpart; that is why opinion leaders - like the panchayat head or the school
teacher - play the role of influencers in the taking of decisions by rural people.
Some companies have made a beginning by profiling rural consumers at haats

and melas. Am it Roy^^ says that people who visit these haats have money, as
they come there primarily sell their produce. While there, they buy certain
necessities that may not be available in the vicinity of their villages".
According to market researchers ORG-Marg^^, the penetration of branded goods

to rural outlets is pitifully low in comparison to the best bench mark of consumer
product availability. HLL's Lifebouy had a presence in 2,248,000 outlets whereas
the penetration of branded salt is just 9.2 per cent; The figures for other

branded products are: flour {3tta) - 0.5 per cent, teas - 6 per cent,, health
beverages - 6 per cent, and ketchups - less than 0.5 per cent.
The vastness of the rural market poses both a challenge and an opportunity to
marketers. The desire to improve the living standards is felt as keenly in the
rural areas as it is in urban areas. Rural incomes are rising and the poverty ratio
is falling. The marketing strategy to tap this vast market potential must take into
account the special characteristics of the rural areas in terms of attitudes and
socio-psychological characteristics. In fact, improving the marketing channels
distribution outlets, and communication facilities can help being about a
transformation of rural areas ^^.
In planning products for villages, irrespective of the country, it is important to

ensure that the packaging is sturdy and robust. Products meant for rural
markets have to travel longer distances and the external packaging should
withstand frequent handling. Moreover, considering the lowpoor purchasing
power of the weakest rural consumers, small pack sizes, containing enough
product for a day or a week are a requirement.^^
Here is a happy coincidence of data and visual evidence. The familiar blue and
red signage that spread like wildfire across the vast rural hinterland during the
last decade has stormed its way into macro economic data. An analysis of
consumer expenditure in rural India by various categories of food items over the
last two decades clearly shows that rural India is increasingly spending more on
beverages. According to NSS data for the 80's & 90's, the share of beverages
and processed foods In total food expenditure has gone up from 5.5 per cent in
1983 to 7.6% in 1999. What is interesting is that this increase seems to come
from across all population groups - bottom, middle, and top - which could imply

that beverages and packaged foods are slowly finding greater acceptance and
among all income classes^^.
Among the different components of the marketing mix, price plays an important
role in bringing about product-market integration. In the rural areas, most of
the products consumed are in the nature of basic goods like soaps, cooking oils,
tea, kerosene etc. The general level of disposable income among rural
consumers as compared to urban consumers is low. Villagers have limited and
incomes, and the flow of income is quite erratic. They do not care much for
brand image, and seek value for money. The price of the product is a major
variable for them to arrive at a purchase decision^°.
The composition of the Indian rural market is probably much more complex than
the whole market in Europe in terms of cultural, religious, linguistic and other
diversities^\
The social and religious customs, climatic considerations, duel ownership due
to prevalence of joint family system, mould the buying habits of the rural
population. The chairman of Hindustan Lever Ltd., also corroborates this view:
"Our survey shows that rural consumers tend to be more subject to local
religious, cultural and social pressures, and there and regional variations in
tastes and habits"^l
Marketers in India^'^ are now actively investing in educating rural customers, in

extending their communication reach through mass media, notably television.
They are also increasing their one-to-one interaction with rural customers in
efforts to keep the sales growing. A mere one percent increase in India's rural
income translates to a whopping Rs. 10,000 crore of buying power.

AmravathI University-2005
It is important that marketers in India develop understanding about spending
power and buying patterns of rural consumers that should go beyond annual
income. The focus only on their total annual income is not the best measure to
gauge their ability and willingness to spend on consumption goods. They should
also consider per capita income, number of earning members, and the pattern of
spending of households - particularly of joint families.
Thanks to the proliferation of mass media and improvement in transportation

networks, there is a greater exchange of goods and services between the rural
and urban areas. The rural market, however, is largely restricted to mass
consumption products. Even premium brands are gaining acceptance in the rural
bastions. Increasing awareness has led to significant changes in buying behavior
and consumption patterns. The urban market is getting increasingly competitive
and saturated. There is less scope for growth in the urban markets, especially in
categories that are already well established. Today, the rural markets are
booming, with increase in the disposable incomes of the households, say Dr. V S
Ganeshmurthy, Dr. M K Radhakrishna and S Bhuvaneshwari^"^.
Dr. N Raman and Prof J Suganthi^^ say that in modern society, villages are
acquiring a new profile by adopting themselves to the technological change that
are revolutionizing life in urban areas. There is an indirect d impact of modern
means and methods on the life of rural folk. This impact has a bearing on rural
marketing. The rural market is growing at five times the rate of urban market.
The villages flush with disposable income thanks to bountiful harvest in the last
four years. Companies that are targeting rural consumers with a plethora of
products are hopeful about a positive change in their outlook. Even as they do

so, they continue to explore the reasons that induce consumers in rural areas to
make specific product purchases.
According to Pradeep Kashyap^^ in the area of communication, corporate

marketers have perhaps failed to recognise that a rural consumer may be buying
a particular brand or even the product category itself (particularly durables) for
the first time. The key influencers for such a purchase could be advertising in the
mass media and information available within the village or in its vicinity. Hence,
there is a strong need to build reassurance and trust about product quality,
service support, and establishing the company credentials in the minds of rural
consumers. This is best done through the face to face " below the line" touch,
feel and talk mode at haats, and melasdin6 media events.
To sum up rural markets are as much an opportunity as a challenge. The rural

consumer is very rational as well as value conscious. Therefore, the marketing
mix must deliver superior value to rural consumer at price points he is
comfortable with in order to be successful, says C K Ranganathan^^.
The approach to win over rural consumers has to turn savvy, and anchor in an
understanding of felt needs. It is value that he seeks? If so, is the value
dictated by price, quality, function, or other factors? Will an emotional pitch
appeal to them?
Creating brand for rural India is a science that will require many ardent students
who are willing to move off the beaten track as they chart brand strategies. It
will require swimming against the tide of all that marketers have been doing in
the past, and exploding many myths. It will demand many years of hard work,
something the urban-based marketers will find daunting. The rural market for
Ph.D Thesis: Competitive Advantage Strategies for Rural l^larketing 98

brands is a goldmine of opportunity waiting to be explored.... Not exploited.
The traditional means of taking the urban brand and its appeal into the rural
heartland will only destroy the fragile rural mind and milieu, Harish Bijoor^^.
STRATEGIC MARKETING / MANAGEMENT

Peter Benntt^^ contemplated that the competitive advantage exists when the
match between the competence of a company and the factors for success within
the industry, permit the firm to outperform its competitors.
Michel Porter''° asserted that there are two basic steps to attain the competitive
advantage. First, firms may pursue a strategy of low costs, which enable them
to offer similar products at lower prices than those charged by the competitors.
Second, firms may pursue a strategy of differentiation - that is one of trying to
convince customers that their products have unique benefits that offset their
premium prices. Both these strategies have the same effect. They increase the
perceived benefits of the product.
Michael Porter^^ is his latest research found that competitive advantage is

achieved through innovation. In its broadest sense, this includes both new
technologies and new processes. New bases for competing, better means of
competition, new production processes and new marketing approaches, are all
aspects of innovation. Encouraging firms to make long-term investments in
innovation is particularly critical. Michael Porter^^ in another journal cited says
that companies developing strategies to achieve a competitive advantage would
invariably tend to establish a competitive edge for their country.
Gary Hamel and C K Prahlad''^ found that only few competitive advantages are
long lasting. Keeping up with the existing advantages is not the same as

Amravathi Unlversity.-2005
building new advantages. The essence of strategy lies In creating tomorrow's
competitive advantages faster than the ability of competitors to mimic the ones a
company possesses today. A company's capacity to improve existing skills and
learn new one's is the most defensible competitive advantage of all. The
authors quote the successful approaches adopted by Japanese firms to faster
competitive innovation.
Jeffery Bracker^"* quoted that business strategy has the following characteristics:
an environmental and situational analysis is first used to determine a firm's
posture in its field; then, the firm's resources are utilised in a manner appropriate
to attain its major goals. Strategic management in the direct application of the
business strategies that have been developed in the academic realm. It entails
the analysis of internal and external environments of a firm to measures
the utilisation of resources in relation to objectives. Alfred Chandler''^ specified
that strategy is the determination of the basic long-term goals and objectives
of an enterprise, by allocating resources and adopting courses of action to
achieve set goals.
Hofer and Schendle^^ proposed that an organisation's strategy is the

fundamental pattern of present and planned resource developments, and
environmental interactions that indicates how the organization will achieve its
objectives.
Philip Kotler'''' defines the strategic marketing process as taking place within the
content of strategic management, and as being concerned with the development
of marketing positions and programmes at product and market levels. Jerome
McCarthey''^ suggested that the marketing strategy focus on some target

customers, with a view to develop a more satisfying and profitable marketing mix
- one that will give the firm a distinctive advantage over its competitors.
Dona! Robin^^ explained marketing strategy as the blending of the marketing

mix to satisfy the needs of target buyers, subject to the constraints of the
marketing environment.Simon and Fremin^° note that marketing strategy has
two principal components (a) selection of a market target group toward whom
the effort of the firm will be directed, and (b) development of a marketing mix
to achieve set targets. Noel Zabriskie and Hullemantel^^ give insights into this
strategic plan to exploit market opportunities, and observe that the charting of a
strategic marketing plan is integral to evolving a strategic plan for all the
operations of a firm.
E Ralph Beggadike^^ cited that essentially, marketing sees strategic management

as being market-driven and provides aids for hypothesizing about customer
needs and competitor behavior. The areas of importance for a strategic
management professional in marketing are market segmentation, positioning,
and the marketing mix. He also mentioned that market segmentation and its
counterpart, positioning, must rank as marketing's most important contribution
to strategic management. Thus, these two concepts deal directly with analysing
a firm's environment so as to make strategic decisions about the extent of a
firm's domain, and the goals that the company sets for itself.
Michael McGinnis^^ further stated that strategic successes would increasingly

depend on the ability of the firm to integrate analysis and intuition. Effective
integration depends on the ability to manage effectively the issues of
intelligence, firm balance, analysis, innovation, pro-activity and risk-taking. The
firms that learn to manage these fundamental issues will probably enjoy more

I:N'2 •
successes and suffer fewer disappointments than tliose tliat do not pay attention
to fundamentals.
Pliilip Cateora^'* mentioned tliat competitive advantage is based on a country's

ability to use the key factors of production to create comparative advantage.
Kinner Beruhadt and Root^^ stress the need for marketing expertise as this helps
a firm make better marketing decisions. They aver that this is an important skill
needed for a firm to improve its performance and profitability.
Brands constitute a large part of the intangible assets that companies own.
Today companies are beginning to recognise the balance sheet value of their
brands. Successful companies have realised that branding is much more that
the mere use of names, logos, etc., and that it encapsulates the relationship
the customer has with the organisation. Developing brand equity does not just
happen. Its creation, maintenance and protection need to actively managed,
and require the use of strategic planning as well as tactical programmes'^.
Srivastava'^ suggested that the marketing plan be like a religious book for
marketing personnel. However, in the absence of proper understanding and
involvement at different decision-making levels in companies, the charting of the
marketing plan has been reduced to a ritualistic exercise.
The implementation of the marketing plan will lead to desired results and
realisation of stated goals only if the people who will direct its execution are
involved right from the planning stage. They, in turn, will set performance
targets, and review them on a periodic basis. Companies must improve in this
area which they often neglect. Only then will the company be able to monitor its
performance against set benchmarks, and even improve on it.

Al Ries and Jack Trout^^ pioneers in positioning, quoted tliat positioning s in a
processes where by a firm attennpts to cope within a longer and more
established competitor's position in the minds of consumer.
Kay^^ found that long term competitive advantage derives from capabilities
which other firms lack. Firms underpin these capabilities with supporting
strategies to gain market advantage over competitors.
Sarin^° observes that business in India is gradually learning to operate in a

competitive environment. However, in a number of organistions the decisions
taken appear to be ad hoc and experimental. No doubt such decisions are
perhaps essential to keep the business running. The fundamental questions
arise: (a) could these decisions be considered more carefully, in the totality of
the context in which Indian businesses operate? (b) Could organisations speed
up decision-making and implementation by making some organisational
changes?
The first and foremost requirement is to see how they companies can inspsire
their employees by infusing into them a sense of urgency in achieving set goals.
Management competence can be viewed in two contexts: "given competence"
and "acquired competence". When engineering firm, L&T went into manufacture
of tractors, they depended more or less on "acquired" competence. There are
many instances where 'given competence' or 'core competence' may appear
limited, but fortunately the country has a large pool of talent that canbe tapped
once the management is committed to a business opportunity and is willing to
take the business risk, it can 'acquire competence' to succeed in the task.

Today most organisations operate in a business climate fraught with uncertainty,
risk and complexity in the external environment. The pressures of international
competition and globalisation of markets require that cutting-edge companies
and their leadership aim to be best-in-class operators to gain and sustain their
competitive advantage. Benchmarking is a continuous management process that
helps firms to identify the benchmark, compare themselves against it, and use
that knowledge to design a practical plan to achieve competitive advantage..
The consulting firm of McKinsey & Co views benchmarking as a skill, an attitude

and a practice that will ensure an organisation always has its sights set on
excellence, not merely on improvement. One way to excite customers is through
innovation. Competitive benchmarking encourages innovation throughout an
organisation. It is the process of continually comparing a company's
performance on critical parameters against the best industry practices in order to
determine which areas should be targeted for improvement. A successful
approach to benchmarking involves a clear focus on the business and bottom
line, and continuing emphasis on being externally, rather than internally says
Chandaran Pillai^^
Devarajan^^ says change is not a new concept to industry; ability to handle

change has always been a feature of management. The difference between the
past and the present lies in the pace at which companies are embracing change.
Products innovations are taking place more rapidly, even if their basic function
remains the same. The revolution in communications and information
technology is facilitating this change.
In a complex, dynamic and fast-changing business scenario, companies must

constantly strive for superiority in their core activities. Competitive edge cannot
Ph.D Thesis; Competitive Advantage Strategies for Rural I*ârl<eting 104

be attained and sustained on the basis of past performance. Benciimarking lias
this objective clearly embedded in its approach to process refinement - right
from the first point of contact to the delivery of the final product to the
customer. Benchmarking per se is a process. The process encourages an
intimate understanding of the business before comparisons can be made, gaps
identified, or actions implemented. The goal, which is to achieve, competitive
advantage, can only be realised over period of time.
According to Michael E Porter^^ the success of failure of any firm depends on its
competitive advantage, its ability to deliver the product at lower cost than its
competitors or offering unique benefits to the buyer that justify a premium price.
But exactly how does a company achieve cost leadership? And how does it
differentiate itself from it rivals?
Michael E Porter introduced his acclaimed techniques to analyse industries, and

competitors. He describes how firms can actually create and sustain a
competitive advantage in their industry. Competitive advantage shows how a
firm can evaluate its competitive position, and implement the specific action
steps necessary to improve it. This definitive work presents the concepts and
the tools needed to create a competitive advantage in cost, or differentiation. It
shows that choices of competitive scope, the breadth of a firm's activities - play
a leading role in creating competitive advantage. It also describes how corporate
strategists can work in tandem with business enterprises to enhance a firm's
competitive advantage by coordinating strategies to take on the competition.
Competitive advantage improves a firm's competitive position by identifying

''good and bad" competitors and to decide what market share and mix of
competitors optimises long-term profitability. It will show how to segment an

industry, and formulate profitable, sustainable focus strategies based on
segmentation. It will also indicate, how to defend a firm's competitive position
wlien challenged, and how and when to attack the industr/ leader. Competitive
advantage introduces a powerful tool that the strategist needs in order to
diagnose and enhance competitive advantage in the value chain.
C K Prahllad and Garry HameP'' say the core competencies of the corporation are
the real sources of its advantage. They enable the management of a company to
consolidate technologies and production skills, and empower individual
businesses to adapt to changing market situations and advantage opportunities
that could come up. It is also about the organiation of work and delivery of
value, and it involves many levels of people and all functions.
According to Robert A Petts and David Lee^^, firms must compete with each
other to win business. Each firm is likely to come up with its own strategy to
deal with its rivals, to serve its base of customers, and to act upon the changes
that impact the way its operates. Each firm needs to develop a competitive
advantage that enables it to compete successfully against their rivals. Strategies
help firms achieve competitive advantage. Competitive advantage allows a
firm an edge over rivals when competing competitive advantages comes from a
firm's ability to perform activities more distinctively on more effectively than
its rivals. It enables a firm to generate successful performance over an extended
period of time.
According to C K Prahalad & Garry HameP^ to realise the potential that core
competencies create, a company must also have the imagination to envision
markets that do not yet exist, and the ability to stake them out ahead of the
competition. A business will strive to create new competitive space only if it
Ph.D Thesis; Competitive Advantage Strategies for Rural Marketing 106

processes an opportunity horizon that stretches far beyond the boundaries of its
current business. The horizon identifies, in broad terms, its market territory.
To differentiate your brand from competitors, occupy a distinct space in the

customer's perception of all brands in your product category. Use the space to
convey every one of the associations attached to your brand. And through it all,
add customer value. Just what can you do to convert brand positioning into a
source spring of added value? The process begins, of course with the technical
task of charting a visual map of the customer's mind as all marketers do, or a
mind map - a flat space divided into four quadrants by two areas, each
represents the continuum of a particular brand attribute - such as expensive/
cheap, traditional/modern caring / efficient, serious/frivolous for competitive
advantage^''.
Strategic marketing^^ authority and educator Mark E. Parry shows you how to
identify your most important customers, and then position yourself successfully
in relation to your closest competitors. Built around the percepts of the proactive
means - end theory, targeting and positioning. The interdependence of these
two fundamentals lies at the heart of every successful marketing programme of
consistently successful marketers. Strategic marketing management provides
you with the information and strategies you need to create a benefit framework
that encompasses functional, experiential, financial and psycho-social benefits.
Present evidence and support to make promised benefits both credible and
valuable use customer decision maps to "ladder" from concrete product
attributes to benefits and personal values. Create and employ creative
strategies that speak only to those values considered most essential. Foster and
nurture appropriate brand meanings that retain value in the market place - and

over time - overcome unintended and undesirable product associates in the
minds of your customers.
"Competing for the future" develops a coherent model of how today's executives
can accomplish heroic goals in their company's future, pioneering ideas on
strategy and leadership. Competencies and market forces abound and also
provide a new and thought-provoking look at strategy formulation for large
corporations that participate in global markets. Hamel and Prahalad argue
persuasively that traditional approaches to strategic planning are unlikely
to prepare a firm for industry leadership in the future.
It offers a masterful blueprint for what companies must be doing today if they
are to occupy the competitive high ground tomorrow. It shows that the key to
future industry leadership is to develop an independent point of view about
tomorrow's opportunities and build capabilities that exploit them; what it means
to be strategic, - and successful^^.
Kenichi Ohmoc^°° says in business as on the battlefield, the object of strategy is

to bring about the conditions most favorable to one's own side, judging precisely
the right moment to attack or withdraw, and always assessing the limits of
compromise correctly. Besides the habit of analysis, what marks the mind of the
strategist is an intellectual elasticity on flexibility that enables him to come up
with realistic responses to changing situations, not simply to discriminate with
great predecessors among different shades of grey.
To be successful. Competitive strategies^°^ must be based on some source of

competitive advantage. Competitive advantage allows a firm to gain an edge
over rivals when competing. Competitive advantages come from a firm's ability

With reference to Agnculture Inputs - HOPE Pipes -a case study -
Amravathi UniversJty-2005
to perform activities more distinctively or more effectively than rivals. It enables
a firm to generate successful performance over an extended period of time;
competitive advantage is at the heart of firm's performance in competitive
markets.
After several years' vigorous expansions and prosperity, however, many firms
lose sight te of competitive advantage in their scramble for growth, and pursuit
of diversification. Today the importance of competitive advantage could
hardly be greater. Firms throughout the world face slower growth as well as
domestic and global competiion; they are no longer acting as if the expanding
pie is big enough for all. Competitive advantage is closely linked to strategy.
In fact the two go hand in hand, and a firm cannot have one without the other.
Competitive advantage actually serves as the backdrop for strategy. If a firm
has no competitive advantage whatsoever, it cannot put in place any worthwhile
strategy. Even in well-managed companies, carefully formulated strategies fail if
they lack the competitive advantage required to make them work.
Conventional competitive analysis is usually conducted using three largely

independent streams of analysis that are later integrated and cross-checked to
establish a unified picture of what competitors actually accomplish. Reverse
product engineering is an important part of most analysis. It highlights effective
product designs, their costs, and the processes technology necessary to produce
them. A through financial analysis of publicly available information provides
further evidence of competitive cost positions by focusing on total business
system economics.
Financial analysis can provide an indication of capacity utilisation. It can

highlight the strengths and weakness of alternative paths to market, and

Amravathi University-ZOOS
highlight differences in the way competitors have decided to concentrate
resources. Finally, these exercises are supplemented with field interviews with
suppliers, distributors, and customers - to fill-in gaps in knowledge and to
provide tangible illustrations of how different approaches are received in the
market place.
Competitive analysis is especially useful when top management is faced

with major strategic choices: - should the company acquire or diversify, make
or buy products/ services, exit a business or restructure it ^°^.
HDPE PIPES
High Density Polyethylene (HDPE) pipes are extruded from HDPE Polymer resin,
which is manufactured by various processes pioneered by companies such as
Zeigler - Solvay, Phillips, etc. The main advantage of HDPE pipes made from
these various processes and grades of resin are: low weight, easy to transport,
easy to lay, resistance to aggressive media and soils, low friction losses, no
deposits and encrustation, frost-resistance (ideal for areas that experience suz-
zero temperature) and fortuity^°-^.
Rama Rao says ^^'^ tat HDPE pipes are highly abrasion and corrosion resistant,
and can handle a wide variety of slurries, abrasive materials as well as almost all
acids, caustics, salt solutions and other corrosive liquids and gases. The use of
this material in India is fairly extensive in industrial and chemical plants, and its
advantages in routing water supply coupled with its cost advantages are now
being discovered.

According to actual field studies ^°^ carried out in Marathwada region, Maharastra
HDPE pipes can lead to a substantial saving both in operational cost and energy
consumption, when compared to RCC pipes when used for irrigation purposes.
It is estimated that if HDPE pipes find use in one per cent of land being irrigated
in India, the following savings would accrue to the Nation:
> Total savings in operating cost Rs. 21.00 Crore

> Additional area that can be brought 50,000 hectares
under irrigation due to savings in water
> Savings in power / electricity 76 MWH
The use of HDPE pipes^°^ in replacement of GI suction and delivery pipes for
pump sets helps considerably in conserving electrical energy. According to a
study carried out by Karnataka State Electricity Board (KSEB), replacement of GI
suction and delivery pipes by HDPE pipes resulted in energy savings of almost
29% and improved water discharge by 43% due to lower transit losses.
On this basis, it was estimated that Karnataka alone would save as much as 240
millions units of power by replacing GI pipes with HDPE pipes. The national
enumeration of electric pump sets was 6479000 Nos. in 1986/87. That figure has
since grown manifold, and could lead to tremendous power savings for the
country if HDPE pipes find extensive use. Karnataka is one of the first states to
recognise this energy-saving potential and has issued relevant directives. It is
time for other states to follow suit.
The plastic industry is more than 100 years old, but polyethylene^°^ was not
invented until the 1930's. Early polyethylene was low density and was used
primarily for cable coatings. Today's modern polyethylene pipes began with

Philips discoving liigli-density polyethylene in the early 1950's. HDPE pipes
Typical applications for HDPE pipes are to carry chemicals, acid and caustic
solutions, corrosive waste, sewage, drainage, mine tailing, sludge, processed and
potable water, salt water, corrosive gases, sluices, mud, crude oil, fuel gases and
many others. HDPE pipes does not support the growth of algae, bacteria, or
fungi and are resistant to marine biological attack.
The multitude of persistent problems due to the use of conventional pipe sytems
(GI pipes etc.) has been a matter of grave concern for all especially the
agricultural sector. With HDPE pipes finding increasing use in the agriculture
sector, and destined to replace older GI and RCC systems, hopes of overcoming
the constraints to getting more water to crops in a cost-effective way have
reached promising dimensions'"^.
HDPE pipes besides density and crystalline there is also another characteristic
parameter at that commonly arrest in defining PE Behavior. This is melt viscosity
or melt flow rate 9 MFR or MFF. The melt flow rate is that amount of melted
material, in grams, which will pass through the orifice of die of a specified
diameter and length, when the melt has been subjected to a specific pressure
and temperature as stipulated by certain standards. As a rule, the temperature
used is 190°C and the melt flow rate unit is g/10 minutes. Usually, high material
strength is required, which means that high density and crystalline are also
desirable. However, increasing molecular weight creates a high melt viscosity
which in turn influences the material process ability during pipe manufacture.'°^
In terms of quality, price and utility, HDPE pipes are better than conventional
pipes. Therefore, if conventional pipes were replaced by HDPE pipes in all new
piping taken up in the of three districts of Yavatmal, Nashik, and Kolhapur, in
Ph.D Thesis: Competitive Advantage Strategies for Rural Marl<eting ] 12

Maharastra to pipe water, it would mean business for the HDPE industry to the
tune of Rs. 31.25 crore per annum ^^°
A WHO report says^^^ that there is a pressing need to provide convenient and
safe drinking water, especially for the poor. It is not hard to " generate demand"
for drinking and irrigation water supply among the poor, they already calculate
the time it costs to fetch water, and are often willing to pay vendors far more
than affluent families pay the public utility services for safe drinking water.
The current challenges in water supply involve the development of appropriate
institutions, economic and financial arrangements to attract the initial to ensure
continual sustainability these problems can be solved by HDPE Pipes.
The strength of a HDPE pipe may be considered as its ability to withstand (hoop)
stress in the pipe material under internal pressure over a prolonged period of
time. The design stress considered within the water industry is chosen to ensure
a design life in excess of 50 years. Based upon the service performance of PE80
pipe since its introduction in the UK, a service life is excess of 100 years may
confidently be expected. PEIOO pipe has been in service for a shorter-time but it
is likely that it will have a similar service life. In the realisation of purpose, -
whether social or commercial - two factors play a prominent part. They are:
quality decisions, and their committed implementation. These are based on
adequate technology, an interface with the world's economies, and an ethos
based on valves, and a commitment to a Nation's well being. However, this
depends on existing human factors which when perverse (such as profiteering)
lead to shortfalls, says Rama Rao^^^
Flexibility and short-term mechanical strength in HDPE Pressure pipes^^-^

provide exceptional surge tolerance. The low elastic modules provide a quick

Amravathi L)niversity-2005
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CHAPTER - III

REVIEW OF THE LITERATURE

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 78

According to Brinda Murthy and Rathindra Basu^ rural marketing in India is

There have been some endeavours to comprehend the complexity of

Ph.D Thesis: Competitive Advantage Strategies for Rural IMarl<eting 79

The word-of-mouth exchange is still a reliable source of information that

Ph.D Thesis: Competitive Advantage Strategies for Rural IMarketing 80

According to S S Acharya and N L Agarwal^\ the agricultural situation in India

Efforts are already underway to evolve location-specific technologies, transfer

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 81

Simultaneously, rural consumers also expect that consumption goods will be

Conditions in rural markets do not assume an organised functioning pattern. The

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 82

According to C S G Krishnamacharyulu and Lalitha Ramakrishnan^^ rural

The relationship between co-operative and rural marketing can be termed as

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 83

Ph.D Thesis: Competitive Advantage Strategies for Rural Marl<eting 84

The observations of a pilot study conducted by ICICI^'' on rural marketing make

Manufacturers could come up with incentive schemes to encourage small

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 85

The survey conducted by N Raghupathy and Subhas C Mehta^^, corroborated

The survey, conducted by advertising agency Clarion Mc Cann~^^ has revealed

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 86

A socio-economic survey conducted by the management services group of

Pradeep Kashyap^^, President, Marketing and Research Team ( MART) which

Ph.D Thesis: Competitive Advantage Strategies for Rural IMarketing 87

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing

Ph.D Thesis: Competitive Advantage Strategies for Rural Marl<eting 89

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 90

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing

A "Survey of living conditions in a few villages in India" "^^ conducted by the

Sanal Kumar and Bhupendra Suri"*^ conducted a survey on consumer response to

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 92

It Is a business model that is innocuously labeled ' Rural consumption'; if it

An economic slowdown typically breeds innovation, as it did In 2001. The first

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 93

According to Pradeep Kashap^'* of MART, "there is no attempt to segment the

Some companies have made a beginning by profiling rural consumers at haats

According to market researchers ORG-Marg^^, the penetration of branded goods

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 94

In planning products for villages, irrespective of the country, it is important to

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 95

Marketers in India^'^ are now actively investing in educating rural customers, in

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 96

Thanks to the proliferation of mass media and improvement in transportation

Ph.D Thesis: Competitive Advantage Strategies for Rural Marl<eting 97

According to Pradeep Kashyap^^ in the area of communication, corporate

To sum up rural markets are as much an opportunity as a challenge. The rural

Ph.D Thesis: Competitive Advantage Strategies for Rural l^larketing 98

STRATEGIC MARKETING / MANAGEMENT

Michael Porter^^ is his latest research found that competitive advantage is

Ph.D Thesis: Competitive Advantage Strategies for Rural IMarl<eting 99

Hofer and Schendle^^ proposed that an organisation's strategy is the

Ph.D Thesis: Competitive Advantage Strategies for Rural IMarl<eting 100

Dona! Robin^^ explained marketing strategy as the blending of the marketing

E Ralph Beggadike^^ cited that essentially, marketing sees strategic management

Michael McGinnis^^ further stated that strategic successes would increasingly

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 101

Pliilip Cateora^'* mentioned tliat competitive advantage is based on a country's

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 102

Sarin^° observes that business in India is gradually learning to operate in a

Ph.D Thesis: Competitive Advantage Strategies for Rural Marketing 103