CHANGING ROLE OF RURAL MARKETING

AND
CONSUMER BEHAVIOUR
Development of IT & satellite communications
have opened up new avenues into the rural
market.
The rural consumer has woken up to existence
of multiple brands.
What are the implications of this?
What are the hurdles in building brand loyalty
among the rural consumers?
Is rural market the next big thing?

CHANGING PROFILE OF RURAL MARKETING

INDIAN HOUSEHOLD DISTRIBUTION OF INCOME

Urban Rural comparison
Income

No. of households
%
Urban

No. of households
%
Rural

Up to 35,000

19.2

52.83

35,001-70,000

39.26

35.58

70,001-1,05,000

22.48

8.39

1,05,001-1,40,000

10.76

2.59

8.48

.61

4,621

10,965

Above 1,40,000
Total No. of
households(000)

Source: India Market Demographics Report of NCAER .

RURAL INDIAS INCOME CLASSES BY SIZE OVER DIFFERENT TIME PERIODS

(All figures in million)
Different
classes

1995-96

2001-2002

2006-2007 projected

households

population

households

population

households

population

0.4

0.7

1.2

Consuming
class

15.9

92

19.9

115

34.8

202

Climbers

37.3

216

57

331

68.1

395

Aspirants

36.9

214

29.3

170

19.5

113

Destitute

27.7

161

21.4

124

15.5

90

Very rich

Source: NCAER

OCCUPATIONAL AND PERSONAL SPENDING AF RURAL CONSUMERS

Items

Groceries

Spending
%
26.5%

Items

Spending
%

Items

Spending
%

Entertainment

3%

Home

1%

4%

Household
maintenance

2%

Agri inputs

13%

Personal
case

4%

Hard liquor
tobacco

Medicines
and
healthcare

8%

Home
appliances

Fuel

6%

Vehicles

6%

Interest
repayment

6%

Savings& Invst

5%

0.5%

Jewellery

Source: KSA Techno parks Rural consumer outlook 2003

3%

INDIAN RURAL CONSUMERS

Buy inexpensive products
Purchase decision by male
Lesser exposure to the product quality
Brand awareness and brand loyalty is less
among rural consumers
Proliferation of television channels, opinion
leaders, village educated and employed youth,
school going children have great knowledge on
various products.

BEHAVIOURAL ISSUES OF INDIAN CONSUMERS

Spectacular change in income level leads to a steep increase in
disposable income.
Newspaper readership has grown by 10% over all.
rural consumers have given importance to emerging products.
Less educated, more traditional and keen T.V. viewers.
A study by IMRD revealed :
Pattern of buying different from urban buyers
Conspicuous consumption of consumer durables
Demand for consumer durables
Transportation durables preceded consumer electronics.
Those who give higher priority to consumer electronic products are more
educated and affluent.
Moving from unbranded to branded products

STAGES OF BUYING BEHAVIOUR

Feel the need

Pre-purchase activities
Final decisions on purchase and actual buying
Using the product and post purchase feeling

RURAL CONSUMER BEHAVIOUR ASPECTS

Consumer information source
Place of purchase
Brand awareness
Media habits
Brand loyalty
Brand switching

FACTORS INFLUENCING RURAL CONSUMER BEHAVIOUR

Education &
Exposure

Durable
Products

FMCG

Opinion
Leader

Media Reach

Personality
Traits

Behaviour

Rural
Consumer
External
Environment

Nearness to
City/Town

Retailers
Opinion

Friends
&
Relatives

CONCLUSION

TO CONCLUDE THE RURAL MARKET TODAY IS NOT JUST

FOR PRODUCTS LIKE FERTILZERS AND PESTICIDES
BUT OFFERS SIGNIFICANT OPPORTUNITIES FOR ALL
CONSUMER GOODS BOTH DURABLE AND NON DURABLE.
IT IS GROWING AT THE RATE OF 25% PER ANNUM.

THANK YOU