Rural Consumer Behaviour

Case Study - Ruf & Tuf Jeans

Presented by:
Mr. Arpit Raikwar
Mr. Balveer Meena
Presented to: Mr. Dhiraj Saxena
Mr. Jinesh Jain Mr. Gorav Barkiya
Ms. Swati Parashar
MBA - FT
Semester - IVth
 Overview
• Introduction
• Explaining answer of question with
1.Factors affecting consumer behavior
2.Consumer buying decision process &
3.Psychology of consumer.
 Introduction
Arvind mills expanded its market base by targeting rural market
with a product designed to cater their need.
It launched a low cost ready-to-stitch jeans kit and used
local store to sell it. It trained tailors to craft a perfectly fit jeans
to ensure customer satisfaction and also initially provided them
with free sewing machine accessories.
Its plan clicked with the masses and demand soared to
unprecedented levels and it is found that around 75% of the
customers are first time jeans wearer.
 Qu. Trace the reason for the success of Ruf & Tuf in rural India?

Ans. Factors affecting rural consumer behaviour:

A) Socio – cultural factors

i. Culture:
Approval of family head is required.
Orthodox approach lead to time consuming decision making process.
ii. Social Class:
Middle & upper segment is exposed to urban lifestyle through cable T.V. so
are more aware of prevalent trends.
iii. Groups:
Primary group – friends, Family & neighbors.
Secondary group – opinion leaders.
iv. Family:
Roles – initiator, influencer, decider, payer & buyer.
v. Status:
High income people – Landlords, doctors, teachers, sarpanch,
postmaster etc.

B) Technological factors:
Free tool kit

C) Economic factor:
Low income levels so low cost product accepted quickly.

D) Political factors:
PMRY, CMEY etc.
A) Buyer characteristics:
i. Age & life cycle:
Around 65% population young so demand is high.
ii. Lifestyle:
Lower & middle class people have upper class aspirations.
Activities – watching films.
Interest – fashionable clothes.
Opinion – favoring social change from orthodox to liberal.
iii. Personality & self-concept:
Young, educated, energetic, rugged, contemporary, liberal etc.
iv. Occupation:
Many youth works in offices, companies or in shops in cities.
v. Economic situation:
High disposable income due to many earning hands & less spending options.

vi. Psychological factors:

a)Beliefs & attitude:
• Functional benefits like durability & utility are considered.
• Multiple ownership.
• Price sensitivity.
• Trendy designs are not very important.
• Brand Name continues to be an unimportant factor in the customer’s mind.
• Does not wish to be seen as the deprived cousin.
• Does not experiment easily but this does not mean that “he would not
change”.
• Values local relationships
b) Motivation:
To attract opposite sex.
Comfort – stitched so best fit.
Social approval.
 Rising % of Increase
Demographic Changing
young in income spending
pattern population levels pattern

Effect
Consumerisation
of rural India

More Increase in Rising

Enablers number spending aspiration
of working power levels
youths

Outcome Consumption of lifestyle items

 Consumer Decision-Making Process
Need Recognition

Needs - wants,
stimuli Information Search
Buyer
responses
Product, price,
place, Buyer’s Evaluation
Choices of
promotion etc black of Alternatives
•product
box
•brand
•dealer
Environmental Purchase
•timing
(PEST) factors •price
Buy more,
Postpurchase
less, stay
Behavior
loyal etc
Thank you