Profile Literacythe Rural Consumer of Level Low

Low Income Level Massive Geographic Spread Urban population concentrated 3200 cities town Rural scattered over 630000 villages Reference Group Health Workers Doctors Teachers Panchayat Members Rural Bank Managers District Managers Occupation Principal Farming Trading Handicrafts Cattle & Poultry Farming Fond of music T.V Radio Video Films

Media Habits

} RURAL


CONSUMER CLASS

The Affluent Class The Middle Class The Poor Well Off Climbers Aspirant Poor

Very Rich

RURAL CONSUMER BEHAVIOR How does an individual decide to spread his available
} } } } } } }

resources (time,money effort) on consumption-related products. That is what they buy why they buy when they buy where they buy it how often they buy it how often they use it

Profile of Rural Consumer

} Understanding

a rural consumer is difficult } More difficult is to implement the findings } Defining a rural consumer is difficult because
} }

low literacy levels low capita per income

Traditional backgroundold customs and } The consumer believes in

traditions. } They take the consideration of their culture. It influences a lot on the purchasing decision. } They look at functionality than on the style, brand and features. } The superstition is one of the draw back in the rural market. } They have a set of attitudes and they follow those only. } It is really a tough task to change their mindset.

Perceptions
perceptual experience of rural consumer is most important. } In rural market the size, colour, shape, and packaging of the product matters a lot. If the packaging has some changes in it, then it might be a problem. } The colors differ according to the areas. } In south people prefer yellow as good, but in North it is a sign of a disease.
} The

Less exposure
consumers have less exposure towards the product, marketing of the brands, on the advertisements and its behaviors. } There will not be any ready hand information available for them, which is a great disadvantage.
} The

Money value
} }

} } }

They buy the products depending upon the money they have. And they buy the product if at all they feel that the product will sustain for the long term usage. Rural consumer does not want to pay any extra money for the product. For a lower price the product should be with all attributes. Hence this kind of expectation they have from the product.

Attitude
approach to buy the products is very realistic. } They look at their money and spending patterns before going for any product. } They buy the product if it is in their limits of the budget.
} Their

4 As

4 Ps Promotion Price Place Product

Awareness
Key

Affordability
Challenges

Availability
4A

Acceptability

Rural Market Segmentation

Why is segmentation useful ?

} } } } } }

Segmentation helps firm tailor their marketing programs focuses an actionable and accessible set of the market. cuts of wasteful expenditures on unwanted consumers matches needs and wants of specific groups of buyers to firms offerings stimulates demands through multi-products for multi-segments resource allocation to segment specific marketing mix activities will be made more efficient Segmentation is a way to plan rather than explain

Degree of Segmentation
Marketing } Segment Marketing } Niche Marketing } Micro Marketing
} Mass

Mass Marketing Segmentation

approach for urban market } Market was dominated by production } Companies practiced mass production and mass distribution } Consumer choice was not taken into account } Many companies still practice mass market segmentation for rural markets
} Older

Segment Marketing
on premise that buyers differ in their needs, wants, demands and behaviors } It evolved when consumers became more diverse, sophisticated and choosy
} Prerequisites:
} } }

} Based

Understanding consumer needs and wants Awareness of competition Innovative capabilities

Niche Marketing
} It

is a very small group with a distinctive set of traits who seek a special combination of benefits is a sub-group of a larger segment of market

} It

Micro Marketing
} }

It involves tailor made products and programs to suit the taste of specific locations and individuals Local Marketing
} }

Products and programs for people of specific location Logistics problem Customized marketing as per individuals taste and requirement Hotels, construction of homes

Individual Marketing
} }

Conditions for Effective Market Segmentation

} }

Measurable Accessible
}

Dependent on mobile vans and nearby town distributor Should have distinguishing features It is attractive only when it is profitable It should be homogenous and large enough

Differentiable
}

Substantial
} }

Segmentation Basis Demographic Segmentation

Geographic Segmentation

Psychographics Segmentation

Behavior Segmentation

Geographic Segmentation
East, west, north, south and center } States, districts, towns, villages } Density } Climate } Culture
} Zones:

Demographic Segmentation
} } } } } } } } }

Age Life cycle: Infants, children, teenagers, young adults, elders and seniors Gender Marital status Family size Income Occupation Education Religion

Psychographic Segmentation
}

Social class
} } } }

Caste Combination of education, occupation, income, wealth Ownership of durables Type of house Trend setters, traditionalists and chameleons Self confidence, sociability, creativity

} }

Lifestyle
}

Personality
}

Behavior Segmentation
} Occasions } Benefits

sought } User status } Usage rate } Loyalty status

Approaches for segmentation the rural market of India

Based on Size of Village Population (The size of population residing in a village is a significant factor which determines the overall potential demand for a product or service in that village) Population No.of Villages % of total Villages Less than 200 114,267 17.9* 200-499 155,123 24.3* 500-999 159,400 25.0 1,000-1,999 125,758 19.7 2,000-4,999 69,135 10.8** 5,000-9,999 11,618 1.8** 10,000& above 3,064 0.5**
}

* Hardly any shop in these 2.7 lakh village ** 13% of villages falling in the last three categories account 50% rural population and 60% rural wealth.

Based on Location with Respects to Nearby Town

Near Urban Centers. } Villages in Developing Districts } Immobile and self sufficient Asiatic Villages
} Villages

Based on Size of Farmland

1. 2. 3.

4. 5.

Marginal Farmer Small Framer Semi-medium Farmer: Medium Farmer Large Farmer above

:holding upto 1.0 hectare :holding 1.0-2.0 hectare :holding 2.0-4.0 hectare : holding 4.0-10.0 hectare :holding 10.0 hectares and