UNDERSTANDING THE RURAL MARKET AND ITS ATTRACTIVENESS

000 will be considered as rural • FMCG COMPANIES: • Population up to 20.WHAT IS RURAL MARKET • NABARD: • All locations irrespective of villages or towns.000 • CONSUMER DURABLE COMPANIES: • Population up to 50.000 . up to a population of 10.

000 population.WHAT IS RURAL MARKET • A SIMPLE DEFINITION FROM MARKETERS VIEW: “Any market that exists in an area with less than 10. low density of population and without significant infrastructural facilities is a rural market” .

• In urban areas the output from the farm i. in the developing countries live in rural areas • Depend upon agriculture and related activities for their livelihood. fibre and other raw materials are processed and made available to the consumers .e.RURAL ENVIRONMENT • About two-third of the people. food.

RURAL ENVIRONMENT • Rural environment is closely connected to nature as agricultural lands. rivers. casual and mostly short lived. • In rural areas the population is more homogeneous and social contacts are personal and relatively long lasting. the relations are impersonal. mountains etc where as urban environment is man made. . In urban area. forests.

health. education.housing. hospitals. sewerage. water supply. lighting. transport and telecommunication • Basic facilities. banks. roads are poor in rural areas .RURAL ENVIRONMENT • Limited availability of services such as schools.

education. communication. drainage. electricity.RURAL ENVIRONMENT • Many people believe that rural areas are developing fast: Example: Mobile phones. two wheelers have become popular in rural areas • What is development without protected water supply. health care and sanitation? .

22 billion (Census 2012) and rural population 818 million (72%).FEATURES OF RURAL MARKET • Large number of consumers: Total population of the country 1. Medium <5000 and Large >5000 . Bihar and Orissa varies from 80 to 90% • Scattered markets: Six lakh villages and the population varies from village to village • Tiny<1000. Rural population in HP. Assam.Small <2000.

Eg Consumer durable purchases are more during post harvest season and festivals .FEATURES OF RURAL MARKET • Rural income: Agriculture 53% and Non-Agriculture 47%. • Seasonal demand: Income from agriculture depends upon climatic conditions and is highly seasonal.

TV 36%/50%(U 78%). Radio 18%. Cinema 16% (U31%) • Telephone facilities: Rural:18% (U >90%) and All India (45%): 2009 • Rural electrification: 80% of the villages have electric connections and Kutir Jyoti programme plans to increase electrification of villages .FEATURES OF RURAL MARKET • Media reach in rural market: Print 14% (Urban 46%).

Interior villages are more traditional .FEATURES OF RURAL MARKET • Transportation facilities: About 80% of the villages are connected by road. Bullock cart is used for transporting produce from village to the market • Distance: Villages near to towns have elements of urban life. 50% of the villages are not accessible during rainy season.

education. • There it t is impossible to develop a a single profile that represents the whole rural population accurately. cultural and linguistic factors.PROFILE OF RURAL CONSUMER • Rural consumers are diverse in terms of religion. • There are vide variations even in the same village. income. . social.