rural market reasons

8/9/2019 rural market reasons

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Rural ar!eting" 2e

Chapter 11

Marketing in Small Towns


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Rural ar!eting" 2e

Learning Objectives

# De$ine s%all to&ns" their potential and relevan'e

# (nderstand the )ehaviour o$ s%all*to&n 'usto%ers

# (nderstand the strategi' i%portan'e o$ s%all to&ns $or rural%ar!eters

2


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Rural ar!eting" 2e

Small Towns and Their Potential

#+o&ns &ith population o$ less than one %illion

#,vaila)ility o$ ade-uate land" lo&er 'onstru'tion 'osts a greatadvantage

Number

o Cities

Share

o !!s

"ncome

per !!

Share o Total#isposable

"ncome

+ier I 2/ 1"000 /

+ier II 2 13 12/"000 14

+ier III / 1"000 /

+ier I5 3.0/4 46 114"000 /

+7+,L 3"10 100 100


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Rural ar!eting" 2e

The Potential o Small Towns

#8%all to&ns 'onstitute 3/ o$ the ur)anpopulation

Town Population $in per cent%

Source& Mc'inse( )lobal "nstitute*


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Rural ar!eting" 2e


# In'o%e levels and )uying po&er

#istribution o "ndia+s ,rban Population b( Cit( Tier


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Rural ar!eting" 2e

#istribution o !ouseholds b( "ncome and Si-e o Town $in per cent%


# In'o%e levels and )uying po&er


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#9ridge )et&een ur)an and rural

#8%all to&ns 'ater to 200 near)y villages

# In$rastru'ture opportunities

Small Towns as .ridges .etween ,rban and /ural "ndia


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Rural ar!eting" 2e


#Penetration o$

dura)les and

:C;

!ousehold Penetration o #urables and 0MC) Products $in per cent%


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Rural ar!eting" 2e


#Penetration o$ dura)les and :C;!ousehold Penetration o !ighend #urables in Towns with Less

than 1223222 Population


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Rural ar!eting" 2e

Small Town Consumer.ehaviour

#


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Rural ar!eting" 2e

Small Town Consumer.ehaviour

# ;ro&ing a$$luen'e" leading to a )etter standard o$ living.

# In'rease in a&areness and edu'ation due to penetration o$

D+>" C?8 and Internet

# Changes in aspirations and li$estyle espe'ially a%ongst youth

# In'reasing )rand a&areness and pre$eren'e $or pre%iu%

produ'ts and servi'es

# Consu%er )uying )ehaviour in s%all to&ns re$le'ts )oth

ur)an and rural and is there$ore a %i=


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Strategic "mportance o SmallTowns or /ural Marketers

#,s selling and redistri)ution 'entresProducts Purchased rom #ierent Locations b( /ural Consumers $in per cent%


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Rural ar!eting" 2e

Strategic "mportance o SmallTowns or /ural Marketers

# ,s servi'ing 'entres

# ,s a hu) $or availing servi'es in the area o$ health"

edu'ation and $inan'ial servi'es

# ,s the agri'ultural lin!age

# ,s a pla'e $or leisure and entertain%ent


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Products Purchased rom #ierentLocations b( /ural Consumers

Products 6illageNearb(

Shand(7Mela

Larger6illage

Close b(

NearestTown

LargerTownClose

b(

Cit(

)roceries 89 : 8 1: 8 8

0ood articles :; 1; : 1: : : 8 11 ;8 1= 11

?griinputs 1< 9 1; => ;2 ;2Clothes 70ootwear

: 11 9 =@ ;; ;:

#urables < 8 8 =8 ;@ =@

?ll igures in percentages* 0or urther details reer Table 11*

rural market reasons

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