Indian Rural Market

Prakash R
Introduction
 72% of Indian population lives in rural areas
 6.36 lakh villages
 33 languages and 1652 dialects
 1% increase in India’s rural income increases buying
power by Rs.10,000 crores.
 Two-thirds of countries consumers live in rural areas
 75 percent of the expenditure on manufactured goods is
accounted by rural India
 80 percent depend upon agriculture
 almost half of the national income is generated here
Population Number of Villages Percentage of total
villages

Less than 200 1,14,267 17.9

200-499 1,55,123 24.3

500-999 1,59,400 25

1000-1999 1,25,758 19.7

2000-4999 69,135 10.8

5000-9999 11,618 1.8

10000 & above 3,064 0.5

Total 6,36,365 100

Rural and Urban Potential
Urban Rural

Population 2001-02 53 135

(m household)

Population 2009-10 69 153

(m household)

Distribution (2001-02) 28 % 72 %

Market (Towns/Villages) 3,768 6,27,000

Features

 Large and Scattered market

 Major income from agriculture
 Low standard of living
 Traditional Outlook
 Diverse socio-economic backwardness
 Infrastructure Facilities
Rural Occupations
45
40
35
30
25
Urban
20 Rural
15
10
5
0
Cultivator shopkeeper wage earner salary earner others
Rural Market Segmentation
Spending Pattern
45
40%
40
35
30 28%

25
20
15 11%
10 9% 8% Spending pattern
4%
5
0
Major problems
 Underdeveloped People and Markets
 Lack of Proper Physical Communication Facilities
 Many Languages and Dialects
 Dispersed Market
 Low Per Capita Income
 Low Levels of Literacy
 Prevalence of spurious brands and seasonal
demand
 Different way of thinking
Strategies for the Present and Future
 Packaging
 Value for money
 Convenience
 Demonstration
 Promotion and marketing communication

- Wall Paintings
 Mobile Traders
4 A’s approach

 Availability
 Affordability
 Acceptability
 Awareness
Marketing Mix
Thank You