Recognizing the huge potential of the rural markets, companies like HLL and ITC are coming up with specific marketing strategies to reach the rural markets.

According to the 2001 census, the rural population in India stood at 74.6 crores. In terms of sheer numbers, this is 2.5 times the total population of America. Although this large population has low incomes there are encouraging signs. A recent study conducted by the National Council for Applied Economic Research (NACER) shows the rise in the rural income, which shows that the low income class (earning Rs. 25,000 pa and below) would come down from more than 60% in 1994-95 to 20% by 2006-07.

This positive trend means a huge potential for many of the companies that have already reached a saturation point in the highly competitive urban market. Intensifying their rural marketing effort means creation of new customers which not only increases their sales, but also gives them the opportunity to achieve the much-needed crucial economies of scales for gaining a competitive edge. Prof. Sushil Bahl, Faculty, Marketing Area, Institute of Management, Nirma University, Ahmedabad says that, "The future for marketers, thus, lies in developing and implementing effective strategies for penetration (reach) resulting in volumes (demand and consumption), with or without the usual incentives from the government."

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