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FEATURES OF RURAL MARKETS (HIMACHAL PRADESH & PUNJAB):

In this cut throat competition, companies are always searching new ways to win this battle of

attraction, for the new customers. They are now looking towards the rural market and there are

number of reasons for that. The main reason is that the big part of rural market is still untapped.

The rural market is not the old days market; but it is continuously changing itself very fast. Now

the rural customers are more educated, having more buying power and on the basis of recent

research they are more brand loyal. Whenever a company wants to expand its base, they always

think about the rural customers. For example, when Nokia entered the market, the mobile phones

were not for all so it focused rich customers. Of late, the mobile has become a necessity, so the

company has entered urban as well as rural market. The success of Nokia 1100 phone is a classic

example. This model was developed keeping in mind the rural customers who may require

features like easy to operate, Hindi keypad, local languages profile, torch, etc.

Indian rural market is larger than many European countries put together. Urban market offers

high growth rate but rural market may offers vast and untapped market for the marketers. Now

with help of various employment programmers of government MNREGA, which offer 100 days

employment for rural persons, purchasing power of the rural consumers has increased. On

analyzing the buying behaviour of rural population we found that the types of product used by

same purchasing power are strikingly different. The reason behind this is that rural customers are

still conservative and they value their culture and believes. As a result, these factors always

create obstacle in the mind of the customer while buying the products. But of late, rural

customers as well as rural market both are continuously changing their conservative outlook.

Now rural customers are also asking the branded products. Recent studies have shown that rural

customers have left behind the empathy for cheaper products and have become brand loyal and

brand conscious. The only problem is they are not having the adequate knowledge.

Now the time has come for the marketers to think about certain factors while developing the

strategies for the rural market. The current paper deals with various factors which can help the

marketers to tap more market segments and also can apply the integrated approach. The

following lines discuss this:

I. Literacy level: Now with the help of the many government schemes and programmes like

Sarv Siksha Abhiyan, Education for All,Prodh Sikha abhiyan the literacy level of the rural area

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has increased from 58 % in 2001 to 68% in 2011. So the marketer will find it easy to

communicate their messages to the target consumers. Slogans and punch lines of the

advertisements posted by the marketers for their products and services are now well received by

the rural consumers. But the advertisement techniques have to be different for punjabi customers

because they have a different life style.

II. Communication & Infrastructure: Internet and mobile association of India (IAMI) have

reported that there will be 45 million internet users in the rural India by December 2012. The

50% increase leading to expected 4.5 crores by December 2012 is primarily driven by mobile

internet access, community centres and cyber cafes. This has resulted into a proper

communication in rural India. Prime Minister Gram Sadak Yojana has set up proper road

infrastructure in village and that has increased the connectivity of rural India with urban India.

All these have made the rural market a better target segment for marketers. But the facilities like

electricity, warehouses are still big concern for the marketers.

III. Per capita Income: India's rank in per capita GDP has shown an improvement from 117 in

1990 to 101 in 2000 and further to 94 in 2009. According to a new report by market research and

ratings agency Crisil, based on preliminary National Sample Survey Organization (NSSO) data

per capita monthly consumption in rural India has increased by 19 per cent during the period

2009-10 to 2011-12. This has happened because of increase in the wages of rural people. Five

years ago only 26% of rural households owned a television but now the percentage has increased

to 42. 14 per cent had a two-wheeler, now it is twice the level seen in 2004-05. Also loan

provided by various banks for agriculture purpose to the farmers has increased the purchasing

power of rural consumers.

IV. Language and dialects: The number of languages and dialects vary from state to state and

even district to district also. So the marketers have to use different languages at different places

for creating awareness among rural people about their products and services.

V. Traditional outlook: The rural customer likes to follow the old tradition and customs. The

buying decision largely depends on the social customs, tradition and beliefs. The rural people are

socially gathered in melas, cultural fests and other activities, mainly buy expensive product on

occasion festival like Diwali, Eid, Holi. .

The marketers need to follow these factors so that they can tap the untapped Punjab market.

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VI. Price sensitive: No doubt there is an increase in the per capita income but still the Punjabi

persons are price sensitive and risk adverse. They always prefer a low unit priced product. So if

marketer can drive towards the sachets, they can convert no buyers into the buyers. Now these

days many companies are converting the high priced products into low price products by sachets.

And they are making profit by converting the big quantity into small quantity.

These factors have to be taken into consideration while going to the rural market. That can help

the marketers to understand the rural consumer buying behaviour and their attitude.