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  • Consumer Behavior in Rural Markets: Their Disposable Incomes Are Quite High)

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    Gandhi Jenny Rakeshkumar BD20029
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    This document discusses marketing strategies for rural consumers in India. It notes that rural consumers have high disposable incomes and purchase patterns similar to urban consumers. Distribution in rural areas has low retail penetration, with general stores selling a limited variety of small stock keeping units. Products may need to be re-engineered to smaller sizes and different packaging. Promotion relies on opinion leaders, and television, radio, and internet penetration is increasing in rural areas. The key factors for rural marketing are awareness, acceptability, availability, and affordability. Marketing to low-income consumers or slums requires an understanding of their living conditions and infrastructure challenges.

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    This document discusses marketing strategies for rural consumers in India. It notes that rural consumers have high disposable incomes and purchase patterns similar to urban consumers. Distribution in rural areas has low retail penetration, with general stores selling a limited variety of small stock keeping units. Products may need to be re-engineered to smaller sizes and different packaging. Promotion relies on opinion leaders, and television, radio, and internet penetration is increasing in rural areas. The key factors for rural marketing are awareness, acceptability, availability, and affordability. Marketing to low-income consumers or slums requires an understanding of their living conditions and infrastructure challenges.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    12 views8 pages

    Consumer Behavior in Rural Markets: Their Disposable Incomes Are Quite High)

    Uploaded by

    Gandhi Jenny Rakeshkumar BD20029
    This document discusses marketing strategies for rural consumers in India. It notes that rural consumers have high disposable incomes and purchase patterns similar to urban consumers. Distribution in rural areas has low retail penetration, with general stores selling a limited variety of small stock keeping units. Products may need to be re-engineered to smaller sizes and different packaging. Promotion relies on opinion leaders, and television, radio, and internet penetration is increasing in rural areas. The key factors for rural marketing are awareness, acceptability, availability, and affordability. Marketing to low-income consumers or slums requires an understanding of their living conditions and infrastructure challenges.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 8

    Consumer Behavior in Rural Markets

    • What do they Buy? (their disposable incomes are quite high)


    • In term of product portfolio the rural consumer is quite similar
    to urban consumer
    • Seasonal buying patterns in many part of the country
    • Large part of income goes into consumables (non food items)
    • Where do they buy?
    • What is the price point?
    • What are their media habits?
    • Large part of buying decisions are centered around: the
    reference group or opinion influencer and the flexible finance
    option
    • Largely insulates and untouched with global meltdown
    situation
    Distribution in Rural Markets
    • Retail penetration is very low
    • Generally, we have general merchants selling
    everything- very less variety and smaller SKU
    • They travel to nearby urban market which
    generally act as feeder market.
    • Mobile vendors
    • Cost of distribution is very high
    • Large part of sale is credit based
    Rural Distribution
    Urban distributor

    Retailer in urban Wholesaler in the Wholesaler/Retailer


    Market city/town in Feeder town

    Rural retailer

    Consumer
    Price Points
    • Generally lower
    • Consumer are very value conscious
    • But that does not mean they are ready to buy
    cheaper products
    Product form
    • Small SKU size of products other than
    groceries
    • Packaging is different
    • Does product need re-engineering
    • Assuming that rural consumer look for low
    quality product has been disastrous for many
    Promotion
    • Use of Opinion leaders (generally you can find a
    purchase patterns in villages with regard to brand
    or a product)
    • Penetration of TV (particularly community TV) is
    increasing
    • Radio penetration is going up
    • Focus on regional programming
    • Increased usage of Wall paintings, boards etc.
    • Internet penetration is increasing
    The video streaming market in India has exploded -- thanks to Reliance Jio -- with
    65% of video consumption coming from rural India that has only 40% Internet
    connectivity, says TV Ramachandran, President, Broadband India Forum (BIF).
    4 P’s to 4A’s
    Awareness

    Rural
    Acceptability Marketing Availability

    Affordability
    Marketing to the Bottom of the
    Pyramid
    • For the purpose of Census of India, 2001, the slum areas broadly
    constitute of :-
    • (i) All specified areas in a town or city notified as ‘Slum’ by
    State/Local Government and UT Administration under any Act
    including a ‘Slum Act’.
    • (ii) All areas recognized as ‘Slum’ by State/Local Government and
    UT Administration, Housing and Slum Boards, which may have not
    been formally notified as slum under any act;
    • (iii) A compact area of at least 300 population or about 60-70
    households of poorly built congested tenements, in unhygienic
    environment usually with inadequate infrastructure and lacking in
    proper sanitary and drinking water facilities.

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