Understanding Rural Consumer Behaviour - Sent

7/28/2019 Understanding Rural Consumer Behaviour - Sent

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Economic Pyramid - India

Top 48 cities 25% Purchasing Power

7800 small towns 25% Purchasing Power

640000 villages 50% Purchasing Power


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Understanding Consumer Buying

Behaviour

Who buys products or services in rural market?

How do they buy these products and services?

From where and how often?

How often do they use these products and

services?

What factors influence the decision making

process of the rural consumers?

How many number of people involved in the

decision making?


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SEC Grid in Rural

Education Type of House

Pucca Semi Pucca Kuchha

Illiterate R4A R4A R4B

Below SSC R3A R3B R4A

SSC/HSC R2 R3A R3B

Some college not

graduate

R1 R2 R3B

Graduate/PG(General)

R1 R2 R3A

Graduate/PG(Professional)

R1 R2 R3A


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SEC Break-up in Rural

R2

40

R3

41R4

5 (R1)

14


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Cokes strategy to tap BOP

Coke started out by drawing up a hit list of highpotential villages from various districts.

Preparation well done.

Distribution mix set right. Innovative thinking.

Hub & spoke model of distribution.

Low penetration of conventional media forced it toconcentrate on alternative options like 47,000 haats(weekly markets) & 25,000 melas (fairs) heldannually in various parts of the country.

Localisation of taste.


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Buyer decision Process

Need recognition

Information search

Evaluation of alternatives

Purchase of product/service

Post purchase behaviour

Insight with reference to Aircel


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Rural Market Opportunities

HUL with its Project Shakti already has a reach of 1.7lakh villages, and aspires to reach 5 lakh villages by2020.

ITC has a lot of penetration in the rural markets and

the e-Choupals are a big hit in the rural market. Airtel is planning to reach around 2 lakh villages.

Marico with its most famous brand Parachute has areach of 1 lakh villages.

Pepsi and Coke have a reach of 70,000 villages.

Dabur, known for its Lal Dant Manjan and Hajmola,has a reach of 60,000 villages.

Mahindra & Mahindra sells most of its SUVs in therural market.


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Rural Market Opportunities

Colgate with its Operation Jagruthi has a reach

of over 60,000 villages.

Mahindra Shubhlabh is Indias largest exporter offresh produce.


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Marketing Challenge

Delivering to the rural markets is a real challenge. Infact, the whole dynamics of these markets are sodifferent that marketers need to look at a differentproduct mix containing the 4As instead of the

traditional 4Ps of marketing:

Acceptability Build what the consumer wants

Affordability- Make an affordable product

Availability - Distribution plays a key role in the ruralmarkets

Awareness - Dont promote the brand, demonstratethe product.


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Diffusion of Innovation

Innovators

Early adopter

Early majority

Late majority

Laggard

Insight with reference to HPCL Rasoi Ghar (caselet)


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Rural Marketing Research

Process

Defining the objectives

Determining the research budget

Designing the research

Sampling

Designing the research instrument

Organising the field and collecting the data Collating and analysing the data

Reporting the findings


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Special research tools used in

rural marketing Participatory Rural Appraisals

PRA tools:

Market access or mobility map

Daily activity clock

Chapati diagram

Process map

Need assessment map

Wealth map


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Special research tools used in

rural marketing Scaling tools for rural Quantitative research

Satisfaction scale

Agreement scale

Ranking ladder

Dos and Donts in rural marketing research

Limitations of rural research

Understanding Rural Consumer Behaviour - Sent

Documents

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