MANAGEMENT

Detailed explanation-1: -Buyers in rural areas prefer smaller-sized packs due to the lower purchasing power compared to urban areas. Companies have reduced the product size to maintain the same pricing in the rural markets.

Detailed explanation-2: -As per the analysis by ASSOCHAM, Companies like Hindustan Unilever Ltd and Dabur India originates half of their sales from rural India. While Colgate Palmolive India and Marico constitutes nearly 37% respectively, however Nestle India Ltd and GSK Consumer drive 25 per cent of sales from rural India.

Detailed explanation-3: -Wall Paintings are an effective and economical means of advertising in rural markets. This is the most widely used form of advertising and is counted among the favourite of Indian masses.

Detailed explanation-4: -FMCG companies’ belief in the rural markets is because of their higher potential for growth. It means that these markets are likely to have more people than cities and, therefore, can have a higher purchasing power.