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To talk about India without mention of the country’s rural communities would be folly for any brand seeking main market dominance or appeal.
It is a group that accounts for 12.2% of the world’s population and is responsible for about 50% of the country’s GDP. Rural areas, according to Nielsen, is growing at around 1.5 times the rate of urban areas, with today’s USD$12 billion consumer goods market in rural India expected to hit USD$100 billion by 2025.
High-profile metro hubs such as New Delhi, Mumbai, Chennai, Bangalore and Hyderabad have oftentimes been touted as prime examples of India’s rapid march towards a digital and hyper-connected economy. But beyond these urban hubs lies the rest of India – an emerging wave of consumers, entrepreneurs and families whose lives have been irrevocably changed by development, technology and the unceasing march of global commerce.
This edition of WARC’s Spotlight series puts the practice of rural marketing in focus. As brands look ahead to a less than positive economic climate in 2020, the preferences and priorities of rural India will become a critical foundation for marketers across industries currently rethinking their engagement playbook.
Any brand strategy to capture the hearts and wallets of a market like India cannot be done without knowing the proverbial ‘soul’ of India. Our expert contributors offer much food for thought in how brands need to re-adapt and re-engage. Amit Tiwari, vice president of marketing at Havells India, lifts the curtain on the changes taking place in small-town and rural India via a recent ethnographic study conducted by the agency.
“The true potential that India holds cannot be measured accurately without understanding the consumers of small-town and rural India, the environment in which they exist, their social fabric and their interaction with retail,” he argues. “Don’t be surprised if you find the small town or rural Indian consumer more brand conscious and loyal then their urban counterparts.” Amandeep Singh of VMLY&R India speaks from deep personal experience in his piece, zeroing in on the nation’s farming communities. India may have come a long way since the Green Revolution when farm mechanisation was introduced, however, the situation for farmers has not, and remains a serious issue.
“The potential is massive, but the challenges for farmers and brands keen to target rural communities are many,” he writes. “The digital transformation taking place across rural India does hold some promise, and it all starts with mobile.”
Rural marketing veteran Sandip Bansal, currently chief client & field officer at Dialogue Factory for GroupM Media India points out that one must recognize that the spread-out rural India has specific distribution needs. “The standard distribution approaches, if forced-fitted, do not work. Till one has an inclusive approach, it will never be able to deliver and will render most sound strategies futile,” he writes. “If we must win in rural India, we need to break it down to smaller geographies and not [only] the regions.”
Meanwhile, Bianca Joseph and Krishnan Subramanian of TBWA India advocate a more radical reset of the way things are done, especially with rural markets developing at twice the rate of urban Indian markets.
A combination of literacy, aspiration, and affluence further magnified by technology-driven access is changing the very nature of the rural consumer. The duo believes that the long-held maxims of marketing to rural communities in the country no longer hold sway and have lived well past their expiry dates. “It's time to put our preconceived notions about these markets under the scanner,” they argue. “It is time to retire them and connect more richly with the emerging rural Indian consumer.”
Rural India has changed and continues to change. Marketers need to get reacquainted and redefine the relationship or risk missing out on what could be the biggest consumer tsunami since, well, China.
Name:Ashwini Rajeev Bajagoli USN:GIT20MBA080-T Roll no:21 Division:A
The buying preferences of India’s rural consumers are changing fast and several factors – economic, psychological, and technological – are coalescing to fuel this transformation. Rural consumers’ income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12. There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India’s values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy. Here I would like to mention the research conducted by accenture company. Accenture undertook a research to understand how Indian rural consumers’ behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states. Their study identified three broad dimensions characterising behaviour change emerging among India’s rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today’s rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture’s report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category. Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India’s hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families. Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don’t fall for such tactics.
MUMBAI: From biscuits to televisions, the expectations of India's rural consumers are changing and price is taking a back seat to brand image and aesthetics a report has said.
Consulting firm Accenture Strategy India highlighted the shift in perspective, driven by the penetration of media and telecoms services, in the latest of its Masters of Rural Markets series, for which it carried out focus group discussions with rural consumers in ten Indian states and surveyed 2,800 rural respondents in eight states, as well as interviewing executives and business leaders.
"Rural consumers are changing in three fundamental ways," the report said. "They are far more aspirational, networked and discerning."
Some marketers no longer bother to make the distinction. "There is no difference between the urban and the rural consumer," Mayank Shah, group product manager at biscuit maker Parle Products, told Livemint. Consumption patterns are broadly similar – with more premium products being sold in rural areas and only total spend being less.
Accenture's research found that 71% of rural consumers buy branded products and the factors driving purchase are weighted 66:34 in favour of brand image, functionality and aesthetics as against price.
"The next generation of the rural consumer who is coming in has a higher exposure level than the previous generation," said Arun Pal, chief operating officer for domestic appliances brand Kenstar.
He cited the example of flat-screen TVs, sales of which are now split evenly between urban and rural areas, but just two years ago these were seen as an urban product.
This underlines another of the report's findings – that four in ten rural consumers are spending more in order to upgrade. In doing so, they are "defying conventional wisdom which says that rural consumers care most about getting the lowest possible price and will settle for sub-standard offerings to get the best deal," the report said.
While the old fashioned image of the rural consumer continued in one of four segments identified by the report – the traditionalist – the others – including steady climbers, young enthusiasts and village elites – were much more brand aware.
Brands need to extend not just their physical reach but their "mental reach" in order to grasp the opportunities offered by these new consumers, the report said.
Warc's recent series on Indian youth made a similar point, when Narayan Devanathan of Dentsu India Group argued that the urban-rural divide was a myth and that the real split was between traditional and progressive mindsets.
Name: manjunath I shinganalli USN: GIT20MBA075-T Roll no: 53 (A division)
The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12.
There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
Accenture undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Our study identifies three broad dimensions characterising behaviour change emerging among India's rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.
Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.
Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics.
Name: Manjula USN: GIT20MBA001-T Roll no: 52(A div)
The buying preferences of India’s rural consumers are changing fast and several factors – economic, psychological, and technological – are coalescing to fuel this transformation. Rural consumers’ income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12. There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India’s values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy. Here I would like to mention the research conducted by accenture company. Accenture undertook a research to understand how Indian rural consumers’ behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states. Their study identified three broad dimensions characterising behaviour change emerging among India’s rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today’s rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture’s report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category. Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India’s hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families. Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don’t fall for such tactics. While the rural consumers’ needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts.
Name : Dipali Jadhav USN. : GIT20MBA011-T Roll no: 42
To talk about India without mention of the country’s rural communities would be folly for any brand seeking main market dominance or appeal.
It is a group that accounts for 12.2% of the world’s population and is responsible for about 50% of the country’s GDP. Rural areas, according to Nielsen, is growing at around 1.5 times the rate of urban areas, with today’s USD$12 billion consumer goods market in rural India expected to hit USD$100 billion by 2025.
High-profile metro hubs such as New Delhi, Mumbai, Chennai, Bangalore and Hyderabad have oftentimes been touted as prime examples of India’s rapid march towards a digital and hyper-connected economy. But beyond these urban hubs lies the rest of India – an emerging wave of consumers, entrepreneurs and families whose lives have been irrevocably changed by development, technology and the unceasing march of global commerce.
This edition of WARC’s Spotlight series puts the practice of rural marketing in focus. As brands look ahead to a less than positive economic climate in 2020, the preferences and priorities of rural India will become a critical foundation for marketers across industries currently rethinking their engagement playbook.
Any brand strategy to capture the hearts and wallets of a market like India cannot be done without knowing the proverbial ‘soul’ of India. Our expert contributors offer much food for thought in how brands need to re-adapt and re-engage. Amit Tiwari, vice president of marketing at Havells India, lifts the curtain on the changes taking place in small-town and rural India via a recent ethnographic study conducted by the agency.
“The true potential that India holds cannot be measured accurately without understanding the consumers of small-town and rural India, the environment in which they exist, their social fabric and their interaction with retail,” he argues. “Don’t be surprised if you find the small town or rural Indian consumer more brand conscious and loyal then their urban counterparts.” Amandeep Singh of VMLY&R India speaks from deep personal experience in his piece, zeroing in on the nation’s farming communities. India may have come a long way since the Green Revolution when farm mechanisation was introduced, however, the situation for farmers has not, and remains a serious issue.
“The potential is massive, but the challenges for farmers and brands keen to target rural communities are many,” he writes. “The digital transformation taking place across rural India does hold some promise, and it all starts with mobile.”
Rural marketing veteran Sandip Bansal, currently chief client & field officer at Dialogue Factory for GroupM Media India points out that one must recognize that the spread-out rural India has specific distribution needs. “The standard distribution approaches, if forced-fitted, do not work. Till one has an inclusive approach, it will never be able to deliver and will render most sound strategies futile,” he writes. “If we must win in rural India, we need to break it down to smaller geographies and not [only] the regions.”
Meanwhile, Bianca Joseph and Krishnan Subramanian of TBWA India advocate a more radical reset of the way things are done, especially with rural markets developing at twice the rate of urban Indian markets.
A combination of literacy, aspiration, and affluence further magnified by technology-driven access is changing the very nature of the rural consumer. The duo believes that the long-held maxims of marketing to rural communities in the country no longer hold sway and have lived well past their expiry dates. “It's time to put our preconceived notions about these markets under the scanner,” they argue. “It is time to retire them and connect more richly with the emerging rural Indian consumer.”
Rural India has changed and continues to change. Marketers need to get reacquainted and redefine the relationship or risk missing out on what could be the biggest consumer tsunami since, well, China.
Rural sector which was once disdained by one and all due to the uncivilized and barbarian culture, amenities and demeanor has recently come into global limelight. It is consistently showing promising signs of shining in the near future. Once ignored, it is now receiving undivided attention and strong impetus from the government, various foreign and domestic companies. Right now, the urbane problem of work-life balance, home cooked food and cleanliness is a major concern that needs insightful solutions to be implemented. Foreign Brands like Maggi, Dairy-milk, Sunsilk, Fair-and-Lovely, etc. are coming to the rescue. The game of marketing is all about a war between the heart and mind. The crux of this amusement is the pocket share. The complexity in this multi-faceted world is constantly increasing. The opportunities exist in resolving confusions and facilitating decision-making amongst the copious brands that exist and throng the marketplace. The changes that are constant are paradoxical at times. The scope of development had been pioneered and sustained by the FMCG companies like HUL, Colgate-Palmolive, Philips, et al. With the execution of their developmental approach, the rural markets had been well nurtured by the agri-input marketers and government agencies. The rural prosperity is the opportunity and an ethical onus for global marketers. The proposition is, Rural India as a growth driver for the future rather than Rural India as an attractive market today’. The proposition also is, ‘India as a separate unit for strategy development’ in lieu of ‘India as an extension market for global strategy deployment’. In conclusion, the objective is to leverage global competencies and knowledge of the company to create a winning ‘Made for India Global Strategy’ rather than leveraging a global strategy to create a new market. Rural markets will be playing a major role in company balance sheets whether in form of creditors or debtors to the company funds. Although rural India is filled with opportunities, tapping them is not an easy mission. There are various hurdles in the way of any corporate house that intends to bring its business into rural India. Much of the rural India remains a mystery. Communication is still an active trial with encountering about thirteen major languages and thirteen hundred dialects. Diversity in tradition and cultures surmount. Poor reach of mass media and shallow understanding of rural consumers is a challenge to be encountered.
Although rural marketing is a tough cookie to crack, the opportunities and potential for growth is immense. Hence, with a mind to look at the positive side of things, we must remember what all we need to do, in order to work the rural market in just the right way.
Why is rural such a discounted reality? Why is it that even before we pry we decide not to try? Just the definition of rural, up until now has been enough to drive us away from Rural India. More and more people have migrated from rural to urban. As the years went by, urban has now become completely saturated and simply has no scope left. You can’t expect to sell a smartphone in a city like Delhi, until and unless your product really has something special and unique to offer. Brands who are not innovators, but mere imitators won’t get very far in such a market. Rural India represents a raw diamond that is simply in the need of a good, thorough clean. With some efforts from the government, along with various companies interested in tapping rural, this region can be a complete hit on all fronts. Up until now, it has not been deemed fit by companies, due to a very archaic view of rural, but now; various parties across the globe are realizing the potential of rural India. The rural consumer is also changing. It is now gradually getting over its apprehensions about “city brands”.
Name: Bhavishkumar S Sunagar USN : GIT20MBA092-T Division: A Roll No: 27
The buying preferences of India’s rural consumers are changing fast and several factors – economic, psychological, and technological – are coalescing to fuel this transformation. Rural consumers’ income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12. There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India’s values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy. Here I would like to mention the research conducted by accenture company. Accenture undertook a research to understand how Indian rural consumers’ behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states. Their study identified three broad dimensions characterising behaviour change emerging among India’s rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today’s rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture’s report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category. Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India’s hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families. Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don’t fall for such tactics. While the rural consumers’ needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts.
The buying preferences of India’s rural consumers are changing fast and several factors – economic, psychological, and technological – are coalescing to fuel this transformation. Rural consumers’ income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12. There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India’s values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy. Here I would like to mention the research conducted by accenture company. Accenture undertook a research to understand how Indian rural consumers’ behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states. Their study identified three broad dimensions characterising behaviour change emerging among India’s rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today’s rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture’s report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category. Second, rural consumers are better networked. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families. Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don’t fall for such tactics. While the rural consumers’ needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty. Name: Aishwarya S Rugi USN:GIT20MBA103-T Roll no:07 Div:A
India is on the march. Its momentum is not only evident in metros—it is apparent in small towns and villages as well. Collectively, all over India’s rural heartland and in its teeming cities, India is readying for an even more impressive era of economic growth. There is no question that India’s rural markets are becoming a powerful economic engine. One telltale sign: rural accounts now comprise over 50 percent of new subscribers for some of the leading telecom providers. The rural multiplier effect is what excites policy makers and business leaders alike. For every new opportunity for a villager to use his mobile phone to protect his crops, there is a knock-on opportunity for him to purchase a small refrigerator or a motorcycle. There is a growing realization that global investment and growth will increasingly come from rural populations, as their savings translate into consumption. But rural India’s contributions to the nation’s economic success and the obvious potential for profitable growth is just a part of the promise of wholehearted commitment to doing business beyond the city centres and suburbs. India’s rural markets offer unprecedented opportunities for global and local companies to experiment with approaches and business models, which if successful, may be replicated in rural markets of other emerging economies. The paper offers a framework that highlights the characteristics of highperformance businesses in rural markets. The framework identifies three distinctive capabilities the ability to create, shape and develop markets; the ability to adapt and optimize supply chains; and the ability to cocreate value through innovative use of technology. The report explores each of these tenets in detail, before highlighting the facets of organizational culture essentials to the organization’s growth strategy.Businesses in India are more confident than ever about the growth of the country's rural consumer markets. According to the third annual edition of Accenture Research, “Masters of Rural Markets: From Touchpoints to Trustpoints - Winning over India's Aspiring Rural Consumers,” rural consumers are particularly aspirational, striving to purchase branded, high quality products. The report notes that rural consumers are better networked and proactively seek information through multiple sources. The expectations of today's rural Indian consumers differ markedly from those of previous generations. They are moving away from purely economic concepts of value driven by low prices, towards a broader notion of value that combines price with the utility, aesthetics and features of products and services. Significantly, penetration of media and telecom services has changed the way India’s rural consumers buy. The hinterlands in India generate around half of the country's gross domestic product (GDP) and are home to about 70 per cent of its population. This market is a combination of growing incomes and aspirations of about 850 million consumers who inhabit 650,000 villages across the country. Some of India's biggest companies generate a third of their consumers from rural India. Consumption patterns in these areas are also gradually beginning to mirror those of their urban counterparts. Owing to this changing trend as well as the size of the market, rural India provides a tremendous investment opportunity for private companies. The rural regions were home to 75 per cent of all new factories built in India in the last decade and accounted for around 70 per cent of new manufacturing jobs. The Indian government has earmarked financial inclusion as one of its foremost priorities. In August 2014, Prime Minister Mr Narendra Modi launched the Pradhan Mantri Jan Dhan Yojana, the National Mission for Financial Inclusion. There is enough evidence to suggest that financial inclusion is crucial to reducing poverty. Name:Ashwini Babli USN: GIT20MBA097-T Roll no:22 Division:A
Businesses in India are more confident than ever about the growth of the country's rural consumer markets. According to the third annual edition of Accenture Research, “Masters of Rural Markets: From Touchpoints to Trustpoints - Winning over India's Aspiring Rural Consumers,” rural consumers are particularly aspirational, striving to purchase branded, high quality products. The report notes that rural consumers are better networked and proactively seek information through multiple sources. The expectations of today's rural Indian consumers differ markedly from those of previous generations. They are moving away from purely economic concepts of value driven by low prices, towards a broader notion of value that combines price with the utility, aesthetics and features of products and services. Significantly, penetration of media and telecom services has changed the way India’s rural consumers buy. The hinterlands in India generate around half of the country's gross domestic product (GDP) and are home to about 70 per cent of its population. This market is a combination of growing incomes and aspirations of about 850 million consumers who inhabit 650,000 villages across the country. Some of India's biggest companies generate a third of their consumers from rural India. Consumption patterns in these areas are also gradually beginning to mirror those of their urban counterparts. Owing to this changing trend as well as the size of the market, rural India provides a tremendous investment opportunity for private companies. The rural regions were home to 75 per cent of all new factories built in India in the last decade and accounted for around 70 per cent of new manufacturing jobs. The Indian government has earmarked financial inclusion as one of its foremost priorities. In August 2014, Prime Minister Mr Narendra Modi launched the Pradhan Mantri Jan Dhan Yojana, the National Mission for Financial Inclusion. There is enough evidence to suggest that financial inclusion is crucial to reducing poverty. India's Rural Consumers Are Changing Fast. New attitudes, priorities and behaviors are reshaping the purchase decisions of India's rural consumers. These consumers are becoming far more aspirational, networked and discerning. Our latest research challenges many traditional assumptions about how rural consumers make their purchases, and demonstrates how a few companies have managed to understand the changing rural consumer behavior. Research found that rural consumers in India are waiting to be served in new ways, and with new offerings. They have already started deciding which brands they will pledge their loyalty to. What can companies do to lock in these consumers' loyalty before their competitors can? Researcher believe that companies must augment their physical reach by understanding the minds of these customers what they really want and why. The Changing Realities of Rural India Companies will have to let go of longstanding assumptions about rural Indian consumers that have prevented them from understanding who these consumers really are and establishing long-lasting brand relationships with them.
Name:Amruta Revankar Roll no: 12 Div: A USN:GIT20MBA017-T
To talk about India without mention of the country’s rural communities would be folly for any brand seeking main market dominance or appeal.
It is a group that accounts for 12.2% of the world’s population and is responsible for about 50% of the country’s GDP. Rural areas, according to Nielsen, is growing at around 1.5 times the rate of urban areas, with today’s USD$12 billion consumer goods market in rural India expected to hit USD$100 billion by 2025.
High-profile metro hubs such as New Delhi, Mumbai, Chennai, Bangalore and Hyderabad have oftentimes been touted as prime examples of India’s rapid march towards a digital and hyper-connected economy. But beyond these urban hubs lies the rest of India – an emerging wave of consumers, entrepreneurs and families whose lives have been irrevocably changed by development, technology and the unceasing march of global commerce.
This edition of WARC’s Spotlight series puts the practice of rural marketing in focus. As brands look ahead to a less than positive economic climate in 2020, the preferences and priorities of rural India will become a critical foundation for marketers across industries currently rethinking their engagement playbook.
Any brand strategy to capture the hearts and wallets of a market like India cannot be done without knowing the proverbial ‘soul’ of India. Our expert contributors offer much food for thought in how brands need to re-adapt and re-engage. Amit Tiwari, vice president of marketing at Havells India, lifts the curtain on the changes taking place in small-town and rural India via a recent ethnographic study conducted by the agency.
“The true potential that India holds cannot be measured accurately without understanding the consumers of small-town and rural India, the environment in which they exist, their social fabric and their interaction with retail,” he argues. “Don’t be surprised if you find the small town or rural Indian consumer more brand conscious and loyal then their urban counterparts.” Amandeep Singh of VMLY&R India speaks from deep personal experience in his piece, zeroing in on the nation’s farming communities. India may have come a long way since the Green Revolution when farm mechanisation was introduced, however, the situation for farmers has not, and remains a serious issue.
“The potential is massive, but the challenges for farmers and brands keen to target rural communities are many,” he writes. “The digital transformation taking place across rural India does hold some promise, and it all starts with mobile.”
Rural marketing veteran Sandip Bansal, currently chief client & field officer at Dialogue Factory for GroupM Media India points out that one must recognize that the spread-out rural India has specific distribution needs. “The standard distribution approaches, if forced-fitted, do not work. Till one has an inclusive approach, it will never be able to deliver and will render most sound strategies futile,” he writes. “If we must win in rural India, we need to break it down to smaller geographies and not [only] the regions.”
Meanwhile, Bianca Joseph and Krishnan Subramanian of TBWA India advocate a more radical reset of the way things are done, especially with rural markets developing at twice the rate of urban Indian markets.
A combination of literacy, aspiration, and affluence further magnified by technology-driven access is changing the very nature of the rural consumer. The duo believes that the long-held maxims of marketing to rural communities in the country no longer hold sway and have lived well past their expiry dates. “It's time to put our preconceived notions about these markets under the scanner,” they argue. “It is time to retire them and connect more richly with the emerging rural Indian consumer.”
Rural India has changed and continues to change. Marketers need to get reacquainted and redefine the relationship or risk missing out on what could be the biggest consumer tsunami since, well, China.
Name:Kiran Dandagi Roll no:46 Div:A USN:GIT20MBA087-T
Rural Marketing is one of the emerging concepts which have attracted the attention of marketers globally in the recent years. The concept incorporates the marketing of rural specific goods and services leading to exchange between rural and urban markets. The green and white revolutions in the rural areas have raised the standard of living, purchasingcapacity and consumptions levels of huge quality and quantity of industrial and manufactured goods. This move have made many business houses to plan strategies to extend their business to rural areas, the trade channels for different types of commodities available in rural areas are private, cooperatives, processors, regulated markets and state agencies.
The rural markets offer huge opportunities for enhancing businesses. In spite of much scope for business development very less attention has been paid for the development of rural marketing concept. Further, under developed market, people, infrastructure, communication,transport and many more factors have contribute for the unbalanced growth of rural markets. The researcher has consulted secondary sources of literature for the development of the title.
On the whole, in this paper an attempt has been made to discuss the problems of rural markets in India and at the end some solutions have been offered for overcoming the same
Our study identifies three broad dimensions characterising behaviour change emerging among India's rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.
These many tiers increase the cost of distribution. Rural markets typically signify complex logistical challenges that directly translate into high distribution costs. Bad roads, inadequate warehousing and lack of good distributors pose as major problems to the marketers. The rural populace should be developed in all aspects strategies must be designed by the central government, respective state governments, local bodies and NGOs for the upliftment of the same.
1. Wide and Scattered Market: Wide and scattered market is difficult to reach in both the aspects – promotion and distribution. Rural India is spread in the entire county in around 6 lakhs villages of different sizes while urban population is concentrated in around 3200 cities. Most of villages are extremely small with population less than 500 people. Only one percent (6300) villages have a population of more than 5000. It is challenging tasks to choose target markets and to serve them effectively.
2. Problem of Designing Products: Products sold successfully in urban markets, may not necessarily be successful in the rural markets due to difference in utility value of the products. Mind-set of rural segments seems quite astonishing and different. Existence of considerable heterogeneity among rural folks poses challenges for marketers to incorporate their uneven expectations in the products.
3. Transportation Bottleneck: Transportation is the nerve centre for any type of business. Most of villages are not properly connected with main roads. Every year during monsoon thousands of villages are disconnected.
Name:Mandhar madhu S Mared Roll No:51 Div: A USN No:GIT20MBA117-T
The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy. As per research done by Accenture , there are three broad dimensions characterising behaviour change emerging among India's rural consumers. First, rural consumers are more aspirational. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television have also reshaped lifestyle and consumption patterns among rural consumers. Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics. While the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty. Anusha kajagar GIT20MBA121-T Roll no 18 A division
Rural sector which was once disdained by one and all due to the uncivilized and barbarian culture, amenities and demeanor has recently come into global limelight. It is consistently showing promising signs of shining in the near future. Once ignored, it is now receiving undivided attention and strong impetus from the government, various foreign and domestic companies. Right now, the urbane problem of work-life balance, home cooked food and cleanliness is a major concern that needs insightful solutions to be implemented. Foreign Brands like Maggi, Dairy-milk, Sunsilk, Fair-and-Lovely, etc. are coming to the rescue. The game of marketing is all about a war between the heart and mind. The crux of this amusement is the pocket share. The complexity in this multi-faceted world is constantly increasing. The opportunities exist in resolving confusions and facilitating decision-making amongst the copious brands that exist and throng the marketplace. The changes that are constant are paradoxical at times. The scope of development had been pioneered and sustained by the FMCG companies like HUL, Colgate-Palmolive, Philips, et al. With the execution of their developmental approach, the rural markets had been well nurtured by the agri-input marketers and government agencies. The rural prosperity is the opportunity and an ethical onus for global marketers. The proposition is, Rural India as a growth driver for the future rather than Rural India as an attractive market today’. The proposition also is, ‘India as a separate unit for strategy development’ in lieu of ‘India as an extension market for global strategy deployment’. In conclusion, the objective is to leverage global competencies and knowledge of the company to create a winning ‘Made for India Global Strategy’ rather than leveraging a global strategy to create a new market. Rural markets will be playing a major role in company balance sheets whether in form of creditors or debtors to the company funds. Although rural India is filled with opportunities, tapping them is not an easy mission. There are various hurdles in the way of any corporate house that intends to bring its business into rural India. Much of the rural India remains a mystery. Communication is still an active trial with encountering about thirteen major languages and thirteen hundred dialects. Diversity in tradition and cultures surmount. Poor reach of mass media and shallow understanding of rural consumers is a challenge to be encountered.
Although rural marketing is a tough cookie to crack, the opportunities and potential for growth is immense. Hence, with a mind to look at the positive side of things, we must remember what all we need to do, in order to work the rural market in just the right way.
Why is rural such a discounted reality? Why is it that even before we pry we decide not to try? Just the definition of rural, up until now has been enough to drive us away from Rural India. More and more people have migrated from rural to urban. As the years went by, urban has now become completely saturated and simply has no scope left. You can’t expect to sell a smartphone in a city like Delhi, until and unless your product really has something special and unique to offer. Brands who are not innovators, but mere imitators won’t get very far in such a market. Dolly Jain Roll No 35 'A'
Rural Marketing is one of the emerging concepts which have attracted the attention of marketers globally in the recent years. The concept incorporates the marketing of rural specific goods and services leading to exchange between rural and urban markets. The green and white revolutions in the rural areas have raised the standard of living, purchasingcapacity and consumptions levels of huge quality and quantity of industrial and manufactured goods. This move have made many business houses to plan strategies to extend their business to rural areas, the trade channels for different types of commodities available in rural areas are private, cooperatives, processors, regulated markets and state agencies.
The rural markets offer huge opportunities for enhancing businesses. In spite of much scope for business development very less attention has been paid for the development of rural marketing concept. Further, under developed market, people, infrastructure, communication,transport and many more factors have contribute for the unbalanced growth of rural markets. The researcher has consulted secondary sources of literature for the development of the title Francis 36
The buying preferences of India’s rural consumers are changing fast and several factors – economic, psychological, and technological – are coalescing to fuel this transformation. Rural consumers’ income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12. There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India’s values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy. Here I would like to mention the research conducted by accenture company. Accenture undertook a research to understand how Indian rural consumers’ behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states. Their study identified three broad dimensions characterising behaviour change emerging among India’s rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today’s rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture’s report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category. Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India’s hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. Farheen Shiggaon 36
Example: “UTSAV” Campaign by Asian PaintsThe well-known paint brand, Asian Paints “Utsav” campaign has been very popular in rural areas.In this campaign, the Mukhiya’s home in villages was painted 6 months before launching the paint as a demonstration for non-peel-off quality of paint.The concept for doing such a demonstration was that rural customers give more focus on other’s experiences of using brands to make purchase decisions. So, the Utsav campaign grabbed the attention of rural customers and also successfully built reliability and durability due to painted Mukhiya’s house walls and attracted lots of rural customers.The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives Accenture undertook a research to understand how Indian rural consumers' behaviors and attitudes have evolved in the past few years and what influences their buying behavior the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states. First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fueled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category. Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families. Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics. While the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty. NAME: Amratha Shetty Roll no :11 Div :A USN no:GIT20MBA101-T
To talk about India without mention of the country’s rural communities would be folly for any brand seeking main market dominance or appeal.
It is a group that accounts for 12.2% of the world’s population and is responsible for about 50% of the country’s GDP. Rural areas, according to Nielsen, is growing at around 1.5 times the rate of urban areas, with today’s USD$12 billion consumer goods market in rural India expected to hit USD$100 billion by 2025.
High-profile metro hubs such as New Delhi, Mumbai, Chennai, Bangalore and Hyderabad have oftentimes been touted as prime examples of India’s rapid march towards a digital and hyper-connected economy. But beyond these urban hubs lies the rest of India – an emerging wave of consumers, entrepreneurs and families whose lives have been irrevocably changed by development, technology and the unceasing march of global commerce.
This edition of WARC’s Spotlight series puts the practice of rural marketing in focus. As brands look ahead to a less than positive economic climate in 2020, the preferences and priorities of rural India will become a critical foundation for marketers across industries currently rethinking their engagement playbook.
Any brand strategy to capture the hearts and wallets of a market like India cannot be done without knowing the proverbial ‘soul’ of India. Our expert contributors offer much food for thought in how brands need to re-adapt and re-engage. Amit Tiwari, vice president of marketing at Havells India, lifts the curtain on the changes taking place in small-town and rural India via a recent ethnographic study conducted by the agency.
“The true potential that India holds cannot be measured accurately without understanding the consumers of small-town and rural India, the environment in which they exist, their social fabric and their interaction with retail,” he argues. “Don’t be surprised if you find the small town or rural Indian consumer more brand conscious and loyal then their urban counterparts.” Amandeep Singh of VMLY&R India speaks from deep personal experience in his piece, zeroing in on the nation’s farming communities. India may have come a long way since the Green Revolution when farm mechanisation was introduced, however, the situation for farmers has not, and remains a serious issue.
“The potential is massive, but the challenges for farmers and brands keen to target rural communities are many,” he writes. “The digital transformation taking place across rural India does hold some promise, and it all starts with mobile.”
Rural marketing veteran Sandip Bansal, currently chief client & field officer at Dialogue Factory for GroupM Media India points out that one must recognize that the spread-out rural India has specific distribution needs. “The standard distribution approaches, if forced-fitted, do not work. Till one has an inclusive approach, it will never be able to deliver and will render most sound strategies futile,” he writes. “If we must win in rural India, we need to break it down to smaller geographies and not [only] the regions.”
Meanwhile, Bianca Joseph and Krishnan Subramanian of TBWA India advocate a more radical reset of the way things are done, especially with rural markets developing at twice the rate of urban Indian markets.
A combination of literacy, aspiration, and affluence further magnified by technology-driven access is changing the very nature of the rural consumer. The duo believes that the long-held maxims of marketing to rural communities in the country no longer hold sway and have lived well past their expiry dates. “It's time to put our preconceived notions about these markets under the scanner,” they argue. “It is time to retire them and connect more richly with the emerging rural Indian consumer.”
Rural India has changed and continues to change. Marketers need to get reacquainted and redefine the relationship or risk missing out on what could be the biggest consumer tsunami since, well, China.
The concept of rural market in India is still evolving and it posses numerous challenges like understanding rural consumer, reaching and providing services to remote locations and communicating with heterogeneous audience. Though there are several difficulties in targeting the rural market but still almost all companies are rushing towards this market. This is mainly because of saturated urban market and favourable changes in rural market like improving lifestyle, habits, taste, increasing literacy level, increase in income, increase in expectations and aspirations, improving infrastructure, government support via various schemes etc. Now day's rural consumers are also using branded products and almost all major brands are available in rural market of India. Though the gap between Indian rural and urban consumer is decreasing still there is considerable difference between them in terms geographic, demographic and psychographic aspects. These differences are resulting in distinction in rural and urban consumers' behaviour, hence requiring different marketing strategies for these regions.
The concept of rural market in India is still evolving and it posses numerous challenges like understanding rural consumer, reaching and providing services to remote locations and communicating with heterogeneous audience. Though there are several difficulties in targeting the rural market but still almost all companies are rushing towards this market. This is mainly because of saturated urban market and favourable changes in rural market like improving lifestyle, habits, taste, increasing literacy level, increase in income, increase in expectations and aspirations, improving infrastructure, government support via various schemes etc. Now day’s rural consumers are also using branded products and almost all major brands are available in rural market of India. Though the gap between Indian rural and urban consumer is decreasing still there is considerable difference between them in terms geographic, demographic and psychographic aspects. The Indian rural market comprises of around 840 million people which generates around 50 per cent of the country’s Gross Domestic Product (GDP). This population is always ignored by private sector due to its low -income level, low literacy rate and high cost because of improper infrastructure facilities. The rural market was never looked upon as a profit centre due to unavailability of proper distribution channels and media, low awareness and high competition from unorganized players. However, as the growth of urban market started stagnating, the need for exploring new market became essential. There has been improvement in living standards of rural population since last few decades. Rural poverty has declined by eight percentage points from 41.8 per cent to 33.8 per cent, and urban poverty by 4.8 per cent from 25.7 per cent to 20.9 per cent over the period 2004-05 to 2009-10 (Bhalchandra,K., Rural Poverty,2011 ). Rural Indian households are spending more on consumer goods like durables, beverages and services than five years ago. In fact, when the global recession hit urban demand few years ago, it was strong rural demand that rescued the economy (Economic Times, 2011). It has become a powerful economic engine due to rising income levels, changing lifestyle, habits,taste, increasing literacy level and increasing expectations of rural consumers. As a result, the consumption habits of rural consumer are gradually mirroring those of their urban counterparts. However, still the composition of the Indian rural market is different from urban market on number of aspects such as the physical environment, marketing environment, the consumer profile, etc. Today almost all leading FMCG brands are available in rural parts of India and rural consumers are using it regularly. Therefore, there is a need to study the factors contributing to the gap between rural and urban consumers such as socioeconomic environment, marketing environment etc.
Name: Sunil Akkannavar Roll No.: 108 USN: GIT20MBA118-T
The idea of Rural Marketing in Indian Economy has always played a significant role in the lives of people. The rural market in India brings in greater revenues in the country, as the rural regions comprise of the maximum consumers in this country. Indian rural market produces almost more than half of the country’s income. Indian Rural Marketing has always been difficult to predict and consist of special uniqueness. However, many companies were efficacious in entering the rural markets. They bagged the market with its proper understanding and innovative marketing ideas. It is very challenging for the companies to overlook the opportunities offered by the rural markets. As two – third of Indian population exists in rural areas, the market is much unanticipated for the companies to be effective in rural markets. They have to overcome few challenges such as pricing and distribution. The present paper aims to know the status of rural market in India, the identification of different rural marketing strategies, to highlight the opportunities and challenges of rural marketing in India.Rural markets are tomorrow’s markets in India. They are big attractions to producers and marketers. For instance, Hindustan Unilever Ltd. (HUL), ITC, Parley Foods and many other companies are concentrating on the rural markets as the urban markets have become saturated. The scope of future expansion lies in the development of rural markets. In fact, rural marketing should be recognized as developmental marketing by big business firms. In India it has gained greater significance these days as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities. On account of the green revolution in India, the rural areas are consuming a large quantity of industrial and consumer products produced near the urban areas. In this context, a special marketing strategy, namely, rural marketing has replaced agricultural marketing which was confined merely to selling farm machines and other inputs. Due to competition in the urban market, the market is more or less saturated as most of the capacity of the purchasers has been targeted by the marketers. So the marketers are looking for extending their product categories to an explored market, i.e., the rural market. This has also led to the CSR activities being done by corporates to help the poor people attain some wealth to spend on the product they want. For instance, HUL’s Project Shakti is not only helping the company earn some revenues but also helping the poor women of the village to earn some money which is surely going to increase their purchasing power. Similarly ITC’s e-Chaupal, is helping the poor farmers get all the information about the weather as well as the market price of the food grains they are producing and those of inputs (seeds, fertilizers, etc.) they want to buy. The Indian rural economy has not been impacted by the global economic slowdown, according to a recent study by the Rural Marketing Association of India (RMAI). The study found that the rural and small town economy which accounts for 60% of India’s income has remained insulated from the economic slowdown. Moreover, rural incomes are on the rise driven largely due to continuous growth in agriculture over the years and increase in employment opportunities in the rural areas. NAME: Amratha Shetty Roll no :11 Div :A USN no:GIT20MBA101-T
Rural India has become a massive consumer goods market with more than six hundred thousand villages and more than 70% of the population living in villages. In these rural markets, FMCG products have emerged as a major product category. Various researchers have found that rural and urban Indian consumers have different needs and wants. These differences have revealed a huge marketing potential for MNCs and other foreign investors, who try to explore rural regions for marketing opportunities. Thus, understanding rural consumer behaviour is very important for the marketers. This paper focused on the important factors that affect the rural purchase behaviour of FMCG products. The findings of this study indicate that price, brand name, quality, availability, packaging, and so forth were the important factors influencing the rural consumers' purchase decisions. The study also focused on the important aspects such as the effective modes of communication, reasons for switching brands, billing patterns, and satisfaction level among the rural consumers.
Rural marketing require great concept and content to make villagers fall in love with your products and services. When you think about rural marketing in India that means you are talking about 700 million people of India or 40% of middle income group who are not much far from urban happenings and activities. Rural market is the vital source of most of the companies over the years and they are reaching to them with tradition marketing only. Here are few ideas you can use to reach them.
- Bulk SMS
- Whatsapp Blasts
- YouTube
- Facebook Marketing
- Display ads
All in all, the importance of rural marketing in Indian economy can be summarised as follows:
- Enhanced professional services
- Establishing fixed contact points for better responsibility and accountability
- Better delivery in reduced time for the village market
- Meeting last mile consumer needs
- Transforming unprofessional attitudes to professional ones
- Growth of innovative business models, which can also lead to more business and competition
- Reduced expenditure for rural populace
- More income for livelihoods
- Better supply chains
- Growth of rural based enterprises
- Diverse growth of literacy in villages including education, financial literacy and technological literacy
- Brings more hygiene in the hinterlands
- Drives the consumption of economy
- Alternative area for upcoming entrepreneurs to invest in.
Name: Devu Ashok Roll no: 32 Div: A USN : GIT20MBA032-T
India is growing at an average annual rate of 7.6 for the past many years and it is expected to continue growing at an equal if not faster rate. The rapid economic growth is increasing and enhancing employment and business opportunities and in turn increasing disposable incomes. The rural consumers in India account for about 73 percent of the total consumers. In recent years, the lifestyle of a large number of rural consumers in India has changed dramatically and the process of change is going on. The buying behaviour of the rural consumers is influenced by several factors such as socio-economic conditions, cultural environment, literacy level, occupation, geographical location, efforts on the part of sellers, exposure to media etc.Rural consumers in emerging markets of developing countries are among the largest and fastest growing segments of the world’s population. In a country like India, where a substantial number of the rural people are living below poverty line, having high level of unemployment and poor literacy level; consumer awareness continues to remain low. Above all about 70 percent of India’s population lives in rural areas. There are about 6, 38,365 villages in the country as against about 300 cities and 5,161 towns. Of the 121 crore Indians, 83.3 crore live in rural areas while 37.7 crore stay in urban areas, as per the Census 2011. Even in urban areas, a large number of people live in slums whose life is not better than those living in rural areas. This clearly highlights that India is still dominated by rural population. There were 7,935 towns in 2011 as against 5,161 in 2001. About 13.3% of India’s population and 42.6% of urban population reside in 53 cities having more than a million people, while the remaining 7,882 cities account for 47.4% of the urban population. There has been a steady increase in the number of cities from 5 in 1951 to 35 in 2001 to 53 in 2011 having a population of more than 10 lacs. About 31% of the urban population lives in the top-20 cities and about 51% of the country’s urban population lives in the top-100 cities. It is found that companies have expanded in rural areas because they are able to ward off competition, generate a new demand and in turn increase their sales or profits as well. The rural India offers a tremendous market potential. In fact, rural markets are the new markets offering both durable and non-durable products. Long-term perspective of marketing planning with modern approach is essential for their future growth. The Indian rural market is a goldmine, which needs to be explored. Rural consumers’ behaviour needs to be understood and products specially designed to suit the rural lifestyle. The key business players are ecstatic about the immense market potential in India’s rural areas. It is also believed that major changes have taken place in the economic fundamentals, decrease in agricultural dependence, and increase in average income, life style, standard of living of the rural due to high economic growth rate. Business tycoons plan huge investments focused on rural areas, as part of growth of rural strategy. Rural India has witnessed a wave of change in recent times. Rural markets dominate Indian marketing scene and they need special attention for the expansion of marketing activities. With media exposure and increasing literacy levels, people are now demanding a better lifestyle. Figure shown below depicts the consumer India’s confluence of change in this regard. Consumer India’s Confluence of Change The changing shape of income distribution suggests growth in rural incomes which in turn should herald a consumption boom. Now-a-days, liberalisation, comfort with technology, changed attitude of people especially middle income group, alongwith rise in aspiration, the rural India is going beyond agriculture and is creating a new market for mass consumption.
Name:Keerti Desai USN: GIT20MBA126-T ROLL NO : 45 (A)
India’s rural economy constitutes nearly half of the national income. Despite growing urbanisation, more than half of India's population is projected to be rural. The buying preferences of India's rural consumers are changing fast and several factors like economic, psychological, and technological are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy. Digital Technology is making strong inroads into rural markets under the digi village programme, the government has connected over 150,000 villages out of 647,000 with wifi. This has made rural tech start-ups attractive for funding from the likes of Mahindra, Accel and Bill Gates. Rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics. While the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty. Rural aspirations are very much the same as in urban areas, it is important that we understand the mind and the mood of the rural consumer.
Name:Dhanya Shetty Roll no:34(A) USN:GIT20MBA089-T
The basic consumer behaviour model has a limited application to understanding rural customer behaviour in India since the rural market is not a homogeneous group; rather it consists of a diverse range of cultural, social, traditional, socio-economic factors affecting consumption.
The 4 As of marketing: acceptability, affordability, awareness, accessibility have evolved as a more customer oriented solution for designing appropriate marketing strategy for rural markets. The 4 As of rural marketing together drive the rural marketer’s efforts for sustained growth in rural markets.
1. Acceptance Understanding what the rural customer wants is pivotal in succeeding in the rural markets. While on one hand, the rural customers have growing aspirations, they are price sensitive. Rural customers are highly value conscious: in the case of consumer durables, this translates into high functionality in terms of the product being durable and multiple uses (Accenture Research Report, 2010). In terms of the product into the rural customer’s requirements, a research found that rural customers purchased motorcycles especially to attend social functions with families and to carry various products such as agricultural produce; hence for the rural customer, it is not so much the appearance and the style of the motorcycle that matters, as is its load carrying capacity.
2. Affordability The customers are price sensitive and expects value for money . Affordability is an important marketing decision in rural marketing since the rural customer’s income levels still are much lower than his urban counterparts. Affordability means the price of the offering should be within the rural customer’s purchasing capacity and does not mean a low-cost, low quality version of an urban product or service. Customers are highly value conscious and a product will not have customers in this market, if it does not offer value, however low the price. Affordability thus, is not only a low pricing decision, but involves designing products and services such that they offer value simultaneously with the rural customer’s purchasing capacity. This has led to the success of various sachet packaging-whether in personal care products, such as shampoos as demonstrated by CavinKare’s Chic shampoo sachets. 3. Awareness Rural markets require novel treatments for promoting products and gaining customer awareness. For instance, Asian Paints selected some opinion leaders in the villages and painted their houses to demonstrate that the colour does not come off; Life Insurance Corporation of India made use of puppet shows to create awareness amongst the rural people regarding the importance of insurance products; ICICI Prudential promoted its product in the haats, mandis, and other local markets organised in the rural areas. It also educated the rural people by advertising through mobile vans. Many companies use folk theatre formats as a means to promote their products. 4.Accessibility That distribution is key for sustainable growth in Indian rural markets with far geographically dispersed, poorly connected villages, has been reported in two Accenture reports. This became more apparent recently, when lack of availability due to inadequate presence in the rural markets was attributed to Britannia’s (a leading marketer of biscuits in India) loss in its market share, when despite awareness of its biscuits, people were not consuming the biscuits.
Name: Annapurna B USN: GIT20MBA106-T Roll no: 16(A)
A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example – “Use a low cost product to attract rural consumers. Once the organization, via our low cost product, has established a relationship with consumers, the organization will sell additional, higher-margin products and services that enhance the consumer’s interaction with the low-cost product or service.” The strategy for rural marketing has to be basically different from that for the urban market because of two very important reasons. In the first place, since the urban people are concentrated, it is physically easier to contact them. On the contrary, people in villages are scattered, so that the task of contacting them is several degrees more demanding and challenging. Secondly, the methods of communicating with the villagers have to be of a different order in view of their lower levels of education and the environmental differences. The rural consumer, due to the increased literacy, advent of television, promotional efforts and increased contact with urban markets, has become much more knowledgeable about products and empowered than in the past. Therefore, companies must offer good quality products in order to satisfy his needs effectively. The word of mouth factor is very crucial in rural markets; it can affect the entire operation in a magnifying manner. If single bad experience can discourage the entire village from a brand then a single good experience can win the entire village as consumer with no additional promotional effort.
The primary customer for the organisation, the retailer has a very high bargaining power in the rural markets. To create shelf space for the products at the rural retail outlet is a big challenge as rural retailer is only stockings few brands per products category. He can live with that very comfortably as his market is not very choosy and demanding and is ready to accept whatever he offers because of lack of alternative options.
One fine evening as I was commuting via metro, an elderly man boarded from a station dressed in white Indian male attires. He wasn't clean shaved and smelled of cow dung. I observed that passengers could not bear the stink and started drifting away making him apparently isolated. This incidence draws my attention towards rural people. The literal meaning of ‘Rural’ stands to explain a market that is, under explored, less developed, where accessibility is scattered, where doubts and enquiries related to technology are plentiful, where people are more than means to an end, where existence is marked by both discomfort and inconvenience. Dictionary defines 'rural' as rustic, raw, unrefined, uncouth, hinterland. But the meaning of the word rural goes much beyond to what dictionary defines. Adding to this twin perspective of political and economic, this is that part of the world where India's demographic dividend resides. These people have huge potential for development and contribute heavily to the GDP of the country. Their skills sets, if enhanced, can contribute phenomenally to the prowess of industries. This paper aims to establish both literal meaning of the word 'rural'; it is an attempt to make the readers and practitioners change their perspective by highlighting the promising prospects that this sector beholds. This is a thought- provoking piece of writing meant to orient new incumbents to embrace the concepts and fundamentals of this sector than to shun it.
Why is rural such a discounted reality? Why is it that even before we pry we decide not to try? Just the definition of rural, up until now has been enough to drive us away from Rural India. More and more people have migrated from rural to urban. As the years went by, urban has now become completely saturated and simply has no scope left. You can’t expect to sell a smartphone in a city like Delhi, until and unless your product really has something special and unique to offer. Brands who are not innovators, but mere imitators won’t get very far in such a market. This is where rural enters the picture. Rural is like an untouched goldmine simply sitting, and waiting for the right miner to see, realize and tap its core.
Rural Indians who are largely simple and literal beings, won’t be attracted to a brand name they can’t even pronounce, much less understand. The company must keep it in mind while trying to market its product in rural India. Permutation and combination of Marketing Mix is under the IMC model must focus on re-engineering marketing communication must focus on mass consumption. Many of the foreign brands that target mass consumption have their tagline in local language. E.g. Coca-Cola: Aaj tu jashn mana le, or Cadburys: Kuch meetha ho jaaye.
Name: Sujay Sangati USN : GIT20MBA088-T ROLL NO: 105(B)
Rural consumers are particularly aspirational, striving to purchase branded, high quality products. The report notes that rural consumers are better networked and proactively seek information through multiple sources. The expectations of today's rural Indian consumers differ markedly from those of previous generations. They are moving away from purely economic concepts of value driven by low prices, towards a broader notion of value that combines price with the utility, aesthetics and features of products and services. Significantly, penetration of media and telecom services has changed the way India’s rural consumers buy. The hinterlands in India generate around half of the country's gross domestic product (GDP) and are home to about 70 per cent of its population. This market is a combination of growing incomes and aspirations of about 850 million consumers who inhabit 650,000 villages across the country. Some of India's biggest companies generate a third of their consumers from rural India.New attitudes, priorities and behaviors are reshaping the purchase decisions of India's rural consumers.
Changes In Rural Consumer Behavior emerging among the rural consumers in India.
1) As incomes of India's rural consumers rise, they want to provide their children with a better future through education and healthcare. In addition, their shopping basket has begun resembling that of their urban counterparts and includes products from categories they have not purchased from in the past. In the process of becoming more aspirational, rural consumers in India are now: Brand Savvy: Willing to invest in branded products to ensure quality Trading Up: Want more features and better product designs to boost social image Explorers: Adopt new categories, using multiple channels
2) Rural consumers operate as members of tightly-knit communities, with word of mouth playing a powerful role in their purchase decisions. Today, they have greater access to mobile Internet, and consume the same media–music, TV, movies–as urban consumers.
3)Rural consumers no longer fall for fraudulent retailer tactics or blindly accept a product only because it is low priced. At the same time, they will not buy an expensive offering unless they are convinced of its utility and longevity. In their judgment, they are: Street smart: More aware, not prone to fraudulent schemes Value seeking: Evaluate total value of investment, not just price Social: Information sharing with strong peer effect.
The contact of rural marketing environment is quite complex in India which has been changing continuously since last few years. Hence marketing organizations who want to target the rural Market should foresee and adapt such strategies to make some necessary changes in market.an adoptive organization can always have modest growth and stand competition by making effective marketing plans and also creating opportunities in the market with change in the dynamic environment as it might prove profitable for them.hence in India there are various factors which affect the consumer behavior,some of the major ones are discussed:
1. The environment in which consumer dwells: In India environment or the surrounding in which the consumer lives certainly has a strong influence on buyer behavior.various such factors like electrification,water supply do effect the demand for durables.
2. Influence of consumer's occupation:
Occupation as such is the main source of income for any individual living in a society and the same applies to rural areas also where in owner of land buy more consumer durables than agricultural labourers.
3. Brand preference and loyalty:
People in rural areas will not give much preference to branded products but certainly give importance to loyalty for a product.hence more than 80% of sales in rural areas come from branded in 16 various product categories.
4. Place of purchase:
Company needs to access those products to rural consumers which mostly influences purchase decision of rural consumer.hence and organisation having it's presence in rural area should develop various shops and outlets where retailers can avail better service.
5. Geographical influence:
The geographic location where in the consumer is located also affects the taught process of consumer buying behavior.to cite and example most of the rural villages in south India accept technology quicker compared to other parts of India.Hence HMT sells more quartz watch in south.
Name: Muttavva Mudenagudi Rollno:58 A USN:GIT20MBA090-T
According to the third annual edition of Accenture Research, “Masters of Rural Markets: From Touchpoints to Trustpoints - Winning over India's Aspiring Rural Consumers,” rural consumers are particularly aspiring or striving to purchase branded, high quality products. Consequently, businesses in India are optimistic about growth of the country's rural consumer markets, which is expected to be faster than urban consumer markets. The report highlights the better networking among rural consumers and their tendency to proactively seek information via multitude sources to be better informed while making purchase decisions. Importantly, the wider reach of media and telecommunication services has provided information to India’s rural consumers and is influencing their purchase decisions. In line with general trend, rural consumers are evolving towards a broader notion of value provided by products and services which involves aspects of price combined with utility, aesthetics and features, and not just low prices.
The hinterlands in India consist of about 650,000 villages. These villages are inhabited by about 850 million consumers making up for about 70 per cent of population and contributing around half of the country's Gross Domestic Product (GDP). Consumption patterns in these rural areas are gradually changing to increasingly resemble the consumption patterns of urban areas. Some of India's largest consumer companies serve one-third of their consumers from rural India. Owing to a favourable changing consumption trend as well as the potential size of the market, rural India provides a large and attractive investment opportunity for private companies.
Recent Developments Following are some of the major investments and developments in the Indian rural sector.
The National Bank for Agriculture and Rural Development (NABARD) plans to provide around 200,000 point-of-sale (PoS) machines in 100,000 villages and distribute RuPay cards to over 34 million farmers across India, to enable farmers to undertake cashless transactions. Magma Fincorp, a Kolkata-based non-banking finance company (NBFC) plans to expand its operations in South India, with specific focus on rural and semi-urban markets to help the company grow rapidly. Payments banks are meant to fan out into the rural, remote areas of the country, offering limited but critical services such as money transfers, loans and deposit collection. While banks have the knowhow, telecom companies have the network, making it an ideal match. Government Initiatives The Government of India has planned various initiatives to provide and improve the infrastructure in rural areas which can have a multiplier effect in increasing movements of goods, services and thereby improve earnings potential of rural areas subsequently improving consumption.
The Government of India has approved the proposal to construct 10 million houses for the rural population, which will require an investment outlay of Rs 81,975 crore (US$ 12.7 billion) for the period from 2016-17 to 2018-19. The Government of India aims to provide tap water regularly to every household by 2030 in line with United Nations Sustainable Development Goals, requiring a funding of Rs 23,000 crore (US$ 3.57 billion) each year until the target is met. The Government has introduced various reforms in the Union Budget 2017-18 to uplift the rural markets. Some of the key highlights of the Budget are: Rs 187,223 crore (US$ 28.08 billion) has been allocated towards rural, agriculture and allied sectors. The Allocation for Pradhan Mantri Aawas Yojana-Gramin has been increased from Rs 15,000 crore (US$ 2.25 billion) to Rs 23,000 crore (US$ 3.45 billion) in the year 2017-18 with a target to complete 10 million houses for the houseless by the year 2019.
Name : Aishwarya S Rugi USN : GIT20MBA103-T Roll no : 07 Div : A
The factors that have created rising demands among rural buyers are increase in literacy levels, migration to urban sectors, growth in media and telecommunication, availability of bank credit schemes, globalization of market, low price technology products (such as television, mobile, fridge, camera, etc.), government sponsored employment generation, and tax concessions and loan waivers. •Socio-cultural Factors Socio-cultural environment is an important part of environment — culture, traditions, beliefs, values and lifestyle of the people within a limitation of society constitute the socio-cultural environment •Social Class Social class is one of the main concepts in socio-cultural environment. A society consists of different social classes and all social classes are determined by income, occupation, literacy level etc. of its members. •Social and Cultural Environment The society and polity across the country varies between different religions, castes and linguistic groups. Common socio-cultural behavior has been mapped as distinct sociocultural regions, which may be spread across political boundaries. The influence of social practices shows itself in consumer preference for product features, product size, shape and color. •Occupation Occupational pattern of rural people also has an impact on the nature of income generation, which will in turn affect the expenditure pattern. Purchase behavior of the rural consumers depends upon the nature of occupation and the consistency in the generation of income. •Literacy Level The literacy level of rural people has a considerable impact on the marketing strategies to be adopted by the marketing team especially in communication with the rural people. Higher the level of literacy, the easier it becomes for companies to penetrate into rural areas. Name:shweta sureshbabu madalli USN:GIT20MBA131-T Roll no:100 'B'
The expectations of today's rural Indian consumers differ markedly from those of previous generations. They are moving away from purely economic concepts of value driven by low prices, towards a broader notion of value that combines price with the utility, aesthetics and features of products and services. Significantly, penetration of media and telecom services has changed the way India’s rural consumers buy. The hinterlands in India generate around half of the country's gross domestic product (GDP) and are home to about 70 per cent of its population. This market is a combination of growing incomes and aspirations of about 850 million consumers who inhabit 650,000 villages across the country. Some of India's biggest companies generate a third of their consumers from rural India. Consumption patterns in these areas are also gradually beginning to mirror those of their urban counterparts. Owing to this changing trend as well as the size of the market, rural India provides a tremendous investment opportunity for private companies. The rural regions were home to 75 per cent of all new factories built in India in the last decade and accounted for around 70 per cent of new manufacturing jobs. The Indian government has earmarked financial inclusion as one of its foremost priorities. In August 2014, Prime Minister Mr Narendra Modi launched the Pradhan Mantri Jan Dhan Yojana, the National Mission for Financial Inclusion. There is enough evidence to suggest that financial inclusion is crucial to reducing poverty.
The Changing Realities of Rural India Companies will have to let go of longstanding assumptions about rural Indian consumers that have prevented them from understanding who these consumers really are and establishing long-lasting brand relationships with them
Rural Consumer Segments Increased incomes, growing awareness and rising individual aspirations are creating distinct consumer segments in India's hinterlands. Drawing on granular analysis of responses to our survey, we have defined four broad rural Indian consumer segments:
Indian Rural Marketing: The Changing Realities of Rural India of their purchase decision and they typically purchase the cheapest offerings available. Building Trust along the Rural Consumer Purchase Journey To gain wallet share in India's rural market, companies need to meet specific imperatives at each stage of the rural consumer's purchase journey. We call such milestones "trustpoints" instead of "touchpoints," as they constitute critical moments where companies can build trust with the customer–or destroy it: Swaranjali Publication, 2018 219
Economic Development of India • Keep communication simple, customised and engaging Awareness • Customise marketing mix by product and geography • Look beyond traditional media; explore mobile marketing Consideration • Tailor value proposition to create resonance • Appeal to diversity • Demonstrate results to inspire consumer trust Validation • Engage with relevant influencers • Invest to transform retailers into informed advisors Purchase • Enhance in-store experience • Support online channel through offline intervention • Offer improved financial access and payment flexibility Experience • Differentiate through service; initiate contact with customer • Deliver on the brand promise to win loyalty Advocacy • Nurture advocates to leverage positive word of mouth • Seek customer feedback proactively
Name : Desai Sarvada Maruti USN NO : GIT20MBA012-T Roll No : 30 (Division : A)
India's rural consumers are an aspirational, brand-conscious lot who set little value to star-endorsed products and the latest Accenture research shows that businesses in India are more confident than ever about the growth of the country’s rural consumer markets, but are risking their competitiveness by failing to respond to the changing needs and behaviours of rural consumers.
To meet the changing needs of the rural consumers, companies will need to adapt their product portfolio, their value propositions and their go-to-market strategies,” said Raghuram Devarakonda, managing director, Sales and Customer Services, Accenture Strategy. “Companies that act now to enhance their understanding of changing rural consumer behaviors and tailor their marketing, selling and service strategies to these consumers’ shifting realities will gain a competitive edge over those who wait until the market evolves further.”
Trustpoint 1 — Need recognition: Target the right consumers according to their means. Show how offerings address their unique needs through simple and entertaining marketing.
Trustpoint 2 — Awareness: Include non-traditional media in marketing that conveys consistent messages across multiple channels.
Trustpoint 3 — Consideration: Define an irresistible value proposition that looks beyond pricing as a long-term source of differentiation, especially for products categories that are new to rural consumers.
Trustpoint 4 — Validation: Identify and engage the most relevant influencers for targeted consumer segments to strengthen trust through word of mouth.
Trustpoint 5 — Purchase: Offer expert advice and differentiated service to enhance the in-store experience as rural consumers increase their purchase expectations.
Trustpoint 6 — Experience: Differentiate by offering exceptional customer service across the purchase journey to maintain loyalty well beyond the point of transaction.
Trustpoint 7 — Advocacy: Nurture consumer advocates by promptly addressing problems to preempt negative word of mouth.
Name : Rasika kashid USN : GIT20MBA036-T ROLL NO: 82 ( Division : B)
The rural market of India started showing its potential from the 1960s and the 70s and 80s showed its steady development. During 90’s, there was a steady growth of purchasing power of rural India, and there are clear indications that the 21st century is going to see its full blossoming. In our country, where research on consumer behavior has been limited to names only, not much synchronized information is available about the rural consumers. Only a few big companies known for their marketing orientation, for example Hindustan Lever, Philips India, Asian Paints, Larsen and Toubro, TATA group have made concrete efforts in this direction. There are many aspects that affect rural marketing, for instance, the rural buyers are not very discriminating. Once they are persuaded to buy a particular product, they develop a strong felling for it, and become brand loyals. As a result, Indian manufacturers generally prefer selling fewer items at higher prices than selling more items at lower prices. Another thing is that the rural buyers are not particularly keen about quality and packaging because of which consumer research is not accurate for entering the rural market. In recent years, the rural sector gives a unique opportunity to expand their market since the urban segment is showing clear signs of saturation. The nature and characteristics of rural market is quite different than the urban market. Therefore, it is necessary to understand the rural area characteristics and environment and take action accordingly.
Rural Market and Marketing
India is a land of diversity and about 70% of the population lives in villages. To a large extent, villages contribute towards the economic development of the nation through the production of food grains, vegetables, fruits etc. Export of these agricultural products generate capital and earnings from foreign exchange. There are approximately 600,000 big and small villages in India according to rural market researchers. 25% of villages account for 65% of the total rural population. So we can calculate 65% of 700 million populations by from only 150,000 villages – which becomes a huge potential of this market.
If we go by statistics, around 70% of the Indian population lives in the rural areas. This accounts to almost 12% of the world population.
To expand the market by making inroads into the countryside, more number of MNCs are getting into India's rural markets. Among those are the bigshot companies like Hindustan Lever, Coca-Cola, Pepsi, LG Electronics, Britannia, Philips, Colgate Palmolive and the foreign-invested telecom companies as well.
Rural marketing involves a bunch of processes that includes developing, pricing, promoting, distributing rural specific product and service which satisfies the consumer demand and also achieves organizational objectives as expected from the target market. It is basically a three-way marketing stage where the transactions can be −
Urban to Rural − It is a process of selling the products and services by urban marketers in rural areas. These products mostly include pesticides, FMCG products, consumer durables, etc. Rural to Urban − It is a process where a rural producer sells his products in urban market. This may or may not be direct, but mostly there are middlemen, agencies, government co-operatives etc. who take initiatives in the successful running of the selling process happen successfully in an appropriate price. Rural to Rural − It is a process which includes selling or exchange of agricultural products, tools, cattle, carts and others to another village in its proximity.
Name : Tejaswee Jadhav USN : GIT20MBA095-T ROLL NO: 113 ( Division : B)
Rural sector which was once disdained by one and all due to the uncivilized and barbarian culture, amenities and demeanor has recently come into global limelight. It is consistently showing promising signs of shining in the near future. Once ignored, it is now receiving undivided attention and strong impetus from the government, various foreign and domestic companies. Right now, the urban problem of work-life balance, home cooked food and cleanliness is a major concern that needs insightful solutions to be implemented. Foreign Brands like Maggi, Dairy-milk, Sunsilk, Fair-and-Lovely, etc. are coming to the rescue. They are becoming much needed. Rural Retail is vulnerable and thus, has abundant opportunities for the numerous market leaders. The rural prosperity is the opportunity and an ethical onus for global marketers. The proposition is, ‘Rural India as a growth driver for the future’ rather than ‘Rural India as an attractive market today’. Although rural India is filled with opportunities, tapping them is not an easy mission. There are various hurdles in the way such as , 1.Lack of effective education 2.Not enough motivation 3.Preferences 4.Aversion to technology
Rural Indians who are largely simple and literal beings, won’t be attracted to a brand name they can’t even pronounce, much less understand. The company must keep it in mind while trying to market its product in rural India. marketing communication must focus on mass consumption. Many of the foreign brands that target mass consumption have their tagline in local language. E.g. Coca-Cola: ‘Aaj tu jashn mana le’, or Cadbury’s: ‘Kuch meetha ho jaaye’.
Rural India represents a raw diamond that is simply in the need of a good, thorough clean. With some efforts from the government, along with various companies interested in tapping rural, this region can be a complete hit on all fronts. Up until now, it has not been deemed fit by companies, due to a very archaic view of rural, but now; various parties across the globe are realizing the potential of rural India. The rural consumer is also changing. It is now gradually getting over its apprehensions about “city brands”. The rural consumer is becoming slowly modernized and ready to go digital in the near future. By facing some of the challenges this region presents, any company can easily reach new height, by using rural as its incubator.
Name - Shrinidhi P Kolhapur Roll no - 95 Div - B USN - GIT20MBA053-T
It is very difficult to sum things up in an answer as we are talking about a broad topic across a vast geography but I will try my best to share my learnings.
Price Matters,
When we look at the purchase decision journey of a typical rural Indian house hold, price dominates all the parameters as they are yet not willing to pay premium for a brand name. But there are some exceptions, especially old brands which have become synonyms to category itself - Maggi, Colgate, Tide etc. Though even these brand face tough competition from similar looking products sold at cheaper rates or higher margins for Retailers. Brand Loyalty here is very very limited. Secondly, quantity matters as well. Major chunk of this population earns on daily basis, hence they cannot afford buying bigger SKUs. This is exactly why sachets turned out to be a huge success.
There are a lot of minor parameters that come into picture but these are the main ones.
There are three main shifts taking place — spending on services; focus on income generating spending and the changing role of women in spending decisions.
1) Services to the fore In the last few years the typical consumption basket of a rural household has seen a marked shift towards spending on services v/s goods. Starting from education, telecommunications, entertainment, healthcare, financial services or information. It’s all about services.
2) Income generating spending Consumer preferences have evolved over the years and the rural consumer has become much more savvy. The repeated droughts or unseasonal rains and low crop prices have contributed to this sense of discipline when it comes to spending. Villagers are much more conscious of how and where they spend their incremental dollar of income. They are prioritizing spending on goods or services which can help them boost their incomes.
3) Changing role of women in driving spending decisions Last but not the least — women are playing a much larger role not only in earning but therefore also in spending. It should not come as a surprise that women are contributing more to the income of the household as well. Whether it is by working in aanganwadis or schools or joining Self-help or join lending groups to start small businesses. They have become an important contributor to the rural household income.
Name: Suprit Suresh Naik USN: GIT20MBA091-T Roll no: 109 (Division: B)
The idea of Rural Marketing in Indian Economy has always played a significant role in the lives of people. The rural market in India brings in greater revenues in the country, as the rural regions comprise of the maximum consumers in this country. Indian rural marketproduces almost more than half of the country’s income.Indian Rural Marketing has always been difficult to predict and consist of special uniqueness. However many companies were efficacious in entering the rural markets. They bagged the market with its proper understanding and innovative marketing ideas. It is very challenging for the companies to overlook the opportunities offered by the rural markets. As two – third of Indian population exists in rural areas, the market is much unanticipated for the companies to be effective in rural markets. They have to overcome few challenges such as pricing and distribution. The present paper aims to know the status of rural market in India, the identification of different rural marketing strategies, to highlight the opportunities and challenges of rural marketing in India. The main aim of this study is to observe the potentiality of Indian rural markets and finding out several problems being faced by rural markets.
Rural marketing in Indian is still in its infancy stage. its in an area after darkness to Indian entrepreneurs, although, with its immense size and demand base, its offer plethora of opportunities to marketers .more then 70 percent of the country’s consumers are in the rural market more than half of the national income is generated here. the indian rural market bigger and vast in size with its large consumer base
Out of the total of 1210.2 million population in India, the size of rural population is 8333.1 million which constituted around 70% Of rural populations as per census survey of 2011
During 2001-2002 the rural population improved byn90.4 million and the number of villages increased by 2279 in between 2001-2002.the majority of world's rural population breathes in rural India
According to the national commission on agriculture 'Rural Marketing is a process which starts with a decision to produce a saleable farm commodity and its involve all the aspects of the market structure or system both functional and institutional, based on technical and economic considerations and includes pre and post-harvest Operations,assembling grading, storage transportation and distribution
Name:Akshata B Nalattawad Roll No:09 Div: 'A' USN:GIT20MBA076-T
Rural markets are witnessing value growth . that is rural consumers are willing to go for premium brands in any product category. Rural market is providing ample options to its consumer in terms of tastes choices which are changing . The three most important factors are change in consumption pattern change in life style change in consumption pattern change in life style change in behavior of rural consumer. in this regard many large sized corporations have seen great success in rural areas because of innovative strategies like smaller packaging fast moving consumer goods FMCG companies have creams and soaps priced at Rs 5 hair oil and shampoo sachets at Re 1 and small coke at Rs 5 customized development and positioning and a good distribution network the rural india success story is being replicated across a range of sectors in the rural markets thus the sales of FMCG products in rural markets is growing at a fast pace even faster that that the urban markets nielsen estimates that by 2025 the fast moving consumer goods FMCG market in rural india will hit 100 billion and that inflation and pricing will be outstripped by consumption. India is growing at an average annual rate of 7.6 for the past many years and it is expected to continue growing at an equal if not faster rate/ the rapid economic growth is increasing and enhancing employment and business opportunities and turn increasing disposable incomes. the rural consumers in idea account for about 73 percent of the total consumers. in recent years the lifestyle of a large number of rural consumers is influenced by several factors such as socio economic conditions cultural environment literacy level occupation geographical location efforts on the part of sellers exposure to media etc. as the benefits of growth tickle down an increasing number of people are moving up from the economically weaker class to join the middle class the middle class with its rising numbers and incomes is thus becoming the biggest market segment the affluent class to will continue to grow in terms of size and value albeit at a slower pace than the middle class most of the companies are going rural because of large and diverse markets increase in literacy level and changing life style of the people even globalization and liberalization expanded the indian rural market. several studies have sows that rural consumers are generally ignorant and they are also un orgnised under these circumstances the sellers or the manufactures exploit the consumers though the consumers in india have been provided with various safety measures against their exploitation. The changing shape of income distribution suggests growth in rural incomes which in turn should herald a consumption boom now a days liberalisation comfort with technology changed attitude of people especially middle income group along with rise in aspiration the rural india is going beyond agriculture and is creating a new market for mass consumption the figure given below depicts that with the increase in income the rural people are moving form lower to lower middle lower middle to middle middle to upper middle and upper middle to upper level as far as income and spending are concerned.
Name : Abhijeet Patil Roll No. : 01 USN : GIT20MBA015-T Div : A
How consumer aspirations are changing in rural market of India??
India's Rural Consumers Are Changing Fast. New attitudes, priorities and behaviors are reshaping the purchase decisions of India's rural consumers. These consumers are becoming far more aspirational, networked and discerning.
A Research found that rural consumers in India are waiting to be served in new ways, and with new offerings. They have already started deciding which brands they will pledge their loyalty to. What can companies do to lock in these consumers' loyalty before their competitors can? Researcher believe that companies must augment their physical reach by understanding the minds of these customers what they really want and why. The Changing Realities of Rural India Companies will have to let go of longstanding assumptions about rural Indian consumers that have prevented them from understanding who these consumers really are and establishing long-lasting brand relationships with them.
Three Broad Dimensions Characterizing Change In Rural Consumer Behavior A research identifies nine behavioral characteristics emerging among the rural consumers in India. These have been organized into three broad dimensions:
1. Aspirational 2. Networked 3. Discerning
1.Aspirational As incomes of India's rural consumers rise, they want to provide their children with a better future through education and healthcare. In addition, their shopping basket has begun resembling that of their urban counterparts and includes products from categories they have not purchased from in the past. In the process of becoming more aspirational, rural consumers in India are now: Brand Savvy: Willing to invest in branded products to ensure quality Trading Up: Want more features and better product designs to boost social image Explorers: Adopt new categories, using multiple channels
2.Networked Rural consumers operate as members of tightly-knit communities, with word of mouth playing a powerful role in their purchase decisions. Today, they have greater access to mobile Internet, and consume the same media–music, TV, movies–as urban consumers As they grow more networked, rural consumers are increasingly becoming: Connected: Increased online and offline interaction with urban counterparts Empowered: Active role of women in decision making Proactive: Seek information through multiple sources
3.Discerning Rural consumers no longer fall for fraudulent retailer tactics or blindly accept a product only because it is low priced. At the same time, they will not buy an expensive offering unless they are convinced of its utility and longevity. In their judgment, they are: Street smart: More aware, not prone to fraudulent schemes Value seeking: Evaluate total value of investment, not just price Social: Information sharing with strong peer effect
Name:Seemaanjum Makandar Roll No : 89 USN : GIT20MBA094-T Dib : B
New Attitudes, Priorities and Behaviours are reshaping the purchase decision of India’s rural consumers. These consumers are becoming far more aspirational and are changing rapidly. We can say that Aspirations of consumers in rural market are changing based on the 4A’s of Marketing, this approach is organized around the values that matter the most to customers: Acceptability, Affordability, Accessibility and Awareness. Acceptability: the rural market consumers have growing aspirations; they are price sensitive; they are highly value conscious: in the case of consumer durables, this translates into high functionality in terms of the product being durable and fitting multiple uses. In terms of the product fitting into the rural customer’s requirements, a research found that rural customers purchased motorcycles specially to attend social functions with families and to carry various products such as agricultural produce; hence for the rural customer, it is not so much the appearance and the style of the motorcycle that matters, as is its load carrying capacity. Affordability: The rural market consumer is price sensitive and expects value for money. This has led to the success of various sachet packaging-whether in personal care products, such as shampoos as demonstrated by CavinKare’s Chic shampoo sachets or even in the case of insurance such as one which Max Vijay offers with sachet purchasing with small, frequent payments made to the local retailer. Accessibility: The Rural Consumer Needs Accessibility to all kinds of products which are also used in Urban Markets, but it is difficult to find them as there are no proper transportation facilities to the villages nor a proper grocery shop or supermarket. But companies are using a variety of strategies to extend their distribution networks into rural India. The most successful companies, though, have adopted a multipronged approach. For instance, ITC uses smaller scale sub-distributors who carry a narrower assortment of products catering to local tastes for rural areas with populations of 10,000-20,000 with adequate transportation infrastructure. Awareness: Rural market consumers require novel treatments for promoting products and gaining customer awareness. For instance, Asian Paints selected some opinion leaders in the villages and painted their houses to demonstrate that the colour does not come off; Life Insurance Corporation of India made use of puppet shows to create awareness amongst the rural people regarding the importance of insurance products; ICICI Prudential promoted its product in the haats, mandis, and other local markets organised in the rural areas. It also educated the rural people by advertising through mobile vans. Many companies use folk theatre formats as a means to promote their products. The Government of India utilised this medium for selling seeds and fertilisers, due to which the rural consumer is aware of the latest products, trends, technologies which results into changing aspirations. Conclusion: Rural consumer is price sensitive enough such that they would purchase stripped down products with inadequate features. In fact, the rural consumer has more specific requirements for features to suit their more challenging living conditions in India, as demonstrated with the success of Nokia phones with built in torch. To appeal to the rural consumer, the key is to recognise that they are value conscious consumers, who seeks value and not necessarily low price.
Name: Amruta Vaze Roll No: 13 USN: GIT20MBA081-T Sem: 1st Div: A
It is a group that accounts for 12.2% of the world’s population and is responsible for about 50% of the country’s GDP. Rural areas, according to Nielsen, is growing at around 1.5 times the rate of urban areas, with today’s USD$12 billion consumer goods market in rural India expected to hit USD$100 billion by 2025.
High-profile metro hubs such as New Delhi, Mumbai, Chennai, Bangalore and Hyderabad have oftentimes been touted as prime examples of India’s rapid march towards a digital and hyper-connected economy.
But beyond these urban hubs lies the rest of India – an emerging wave of consumers, entrepreneurs and families whose lives have been irrevocably changed by development, technology and the unceasing march of global commerce.
It is a group that accounts for 12.2% of the world’s population and is responsible for about 50% of the country’s GDP. Rural areas, according to Nielsen, is growing at around 1.5 times the rate of urban areas, with today’s USD$12 billion consumer goods market in rural India expected to hit USD$100 billion by 2025.
High-profile metro hubs such as New Delhi, Mumbai, Chennai, Bangalore and Hyderabad have oftentimes been touted as prime examples of India’s rapid march towards a digital and hyper-connected economy.
But beyond these urban hubs lies the rest of India – an emerging wave of consumers, entrepreneurs and families whose lives have been irrevocably changed by development, technology and the unceasing march of global commerce.
Name:Shashank Math Roll no:91 USN:GIT20MBA058-T DIV:B
The market of India has been witnessing a lot of changes especially with the advent of many global firms. These changes have been with regards to a higher penetration of the mass media, wide communication network availability of various categories and brands of goods and services increased, purchasing power leading to higher disposable income and a complex buying behaviour displayed by consumers at the market place. While firms are trying to deliver superior innovative and value added products and services in their attempt to delight the customers, they have realized that the key to understanding consumer behaviour lies in identifying those vital elements which derive a positive consumer value and work out the entire marketing programme to deliver that unique value. Internet makes life simple and innovative. People are doing business online and trade has become more easy and fast due to this. Internet provides new ways to promote business. Website becomes the essence of online business as to show their services and products. Internet gathers all competitors and consumers in one place. It brings new lane to promote, advertise products and services in market. All this has resulted in the growth of consumer’s aspiration levels and their seeking right value and a certain lifestyle from the various products and services offerings. The challenge before marketers is to offer products, which will provide them the desired value satisfaction in this age of constantly changing consumer behaviour and aspirations.
Name :Nikita Sampath Korde Rollno.:62 USN :GIT20MBA100-T Sem:1st Div:'B'
India’s rural economy constitutes nearly half of India’s national income. Despite growing urbanisation, more than half of India's population is projected to be rural till 2050. Thus, growth and development of the rural economy and population is key to the overall growth of India. Although rural marketing is a tough cookie to crack, the opportunities and potential for growth is Immense.Things we need to do to improve the rural market are:
• Increase Consumer Perceived Value: The idea is not to deploy low technology to deliver products with poor consumer perceived value at low prices. The objective is to use first rate consumer insight and sophisticated business process thinking, to innovate products which have high consumer perceived value, delivered via low-cost business system.
• Consumerism: It is the next big leap in this rural market owing to the expanding middle class.
• Inculcate brand awareness and brand following: The rural populace needs to be made aware about the brand, and how it will help them in developing their quality of life. The ease which can be brought to them with the help of the brand needs to be communicated to them.
• Probe in and profile the consumers: All customers are not the same and neither are their pressure points. Each and every person of the rural populace has different sets of needs and requirements. The company which intends to market its product in rural India, must segment the population and target the group that is most likely to buy its products.
• Return on Investment: Deliver ‘value for money’. The Indian market is ‘price sensitive’ viz-a-viz ‘quality conscious’. Therefore, the company must be very sure that the prices it has attached to its products and services are fair and genuine.
• Visual Delight: Visual Merchandising and store design must be kept in mind while working with Rural India. The customer is a highly visual creature. Without a pretty picture presented to him, he won’t budge.
• Growing Purchasing Power: Commercial agriculture has revolutionized this sector. It has augmented productivity and income manifold. This is because contract for production of crops, livestock, fisheries, etc. is enclosed between the buyer and seller. The farmers are assured of markets for their harvest/products. Cereals production of rice, pulses, spices, juice, etc. is a growing market.
- Namrata Pandit - Roll No – 60 - MBA 1st year ‘A’ division - GIT20MBA055-T
Rural markets have grown both in income as well as consumption and have created enormous interest among industries like FMCG, retailing, consumer durable, automobile and insurance etc. Key drivers of rural market growth are 1) Higher income Which includes crops diversification such as biotech products, horticulture etc higher commodity prices, organised retailing and contract farming, government schemes like NREGA, subsidy on seeds and fertilizers etc this factors improving the financial level of rural people.
2) New Aspirations Mainly through more exposure to urban products and services due to literacy, media, migration etc demand for urban type product is increasing. Aspiration for Better quality of life as product become affordable and better informed due to projects such as e choupal program of itc.
3) Improvement in infrastructure and rural connectivity Several government schemes have been launched in past couple of years related to rural housing, road connectivity, drinking water, rural electrification etc. These have considerably improved the living conditions of rural population and have led to increase in the demand of automobile, consumer durable goods like mobile, television,air cooler.
4) Growth of rural consumption Due to easier availability of credit, lowering prices of consumer durable goods, increase in rural saving, improvement in literacy, urban association due to migrants driving sale of footwares,FMCG products etc. Easy availability of branded products die rural organised retail such as haryali bazar,godrej Aadhar.And availability of low price product due to technology improvement.
Name- Akash Deshpande Roll no- 08 Div - A Usn - GIT20MBA082-T
• With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. • Following are few of the changes regarding market aspirations in the rural areas.
• Large Population: 742 million Indians constituting 138 million households reside in 6,38,365 villages (Census, 2001). The size of rural market itself speaks of its potential.
• Growth in Market: The market has been growing at 3-4% per annum adding more than one million new consumers every year. Consumer is brand loyal and understands symbols better.
• IT Penetration in Rural India: Today's rural children and youth will grow up in an environment where they have 'information access' to education opportunities, exam results, career counseling, job opportunities, government schemes and services, health and legal advice and services, worldwide news and information, land records, mandi prices, weather forecasts, bank loans, livelihood options. If television could change the language of brand communication in rural India, affordable Web connectivity through various types of communication hubs will surely impact the currency of information exchange. As the electronic ethos and IT culture moves into rural India, the possibilities of change are becoming visible.
• Impact of Globalization: The impact of globalization will be felt in rural India as much as in urban. But it will be slow. It will have its impact on target groups like farmers, youth and women. Farmers, today 'keep in touch' with the latest information and maximize both ends. Animal feed producers no longer look at Andhra Pradesh or Karnataka. They keep their cell phones constantly connected to global markets. Surely, price movements and products' availability in the international market place seem to drive their local business strategies. On youth its impact is on knowledge and information and while on women it still depends on the socio-economic aspect. The marketers who understand the rural consumer and fine tune their strategy are sure to reap benefits in the coming years. In fact, the leadership in any product or service is linked to leadership in the rural India except for few lifestyle-based products, which depend on urban India.
• Increasing Income and Purchasing Power: The agricultural development programs of the government have helped to increase income in the agricultural sector. These in turn have created greater purchasing power in rural markets.
• Accessibility of Markets: The attraction of a market depends not only on its potential but also on its accessibility. The road network has facilitated a systemized product distribution system to villages. An increasing number of companies are supplying village markets directly. Increasing direct contacts to villages helps product promotion and availability of the product in the village shop.
• Consumer Behaviour Changes: Increased literacy and greater awareness in rural markets create new demands and discriminating buyers. This is observed more in the younger generation. In villages today, this segment of buyers consumes a large variety of products, both durables and non-durables. There is a visible increase in the consumption and use of a variety of products, which is easily observed.
• Competition in Urban Markets: Intensified competition in urban markets increases costs and reduces market share. The rural markets are therefore increasingly attractive in relation to urban markets. The automobile market brings this out clearly. Rajdoot motorcycles, Bajaj scooters or Ambassador Cars find ready acceptance in rural markets as compared to urban markets where there is a proliferation of brands.
Name: Sairaj Pissurlekar USN: GIT20MBA044-T Div: B Roll No: 68
Rural markets have become integral part of global market. The rural markets are growing at above two times faster pace than urban markets. To explore and understand rural market is crucial for any marketers today. Rural market is like goldmine with lot of difficulties. Thea growing power of the rural consumer is forcing big companies to flock to rural markets. The rural market in India is currently witnessing an impressive growth primarily because of the significant improvement in purchasing power, increasing brand consciousness, and spread of proper communication network and rapidly changing profile of the rural consumers. Indian economy comprising of both urban sector as well as rural sector. And concept of rural marketing in Indian economy has always played an influential role in the lives of people. In India, leaving out a few metropolitan cities, all the districts and industrial townships are connected with rural markets. The rural market in India is not a separate entity in itself and it is highly influenced by the sociological and behavioural factors operating in the country. With the rapid pace of technological improvement and increase in peoples buying capacity, more and better goods and services now are in continuous demand. The liberalization and globalization of the Indian economy have given an added advantage to sophisticated production, proliferation and mass distribution of goods and services. The reasons for changing aspirations of rural people, • Rural purchasing power has grown faster than urban in the recent years. Rural Indian economy is highly supported by increasing disposable income, Government initiatives and schemes and favourable demographics. • Rural consumers are consuming more premium and convenience oriented categories that are typical of their urban counterparts. • Literacy level of rural area is increasing with the help of internet and through the education people in rural areas are imparted with knowledge about the market and its environment which inturn has lead to rural people increasing their lifestyles . • The rural people are also willing to buy expensive products for better quality. • Rural people are attracted to mobile marketing. • Companies packaging smaller packages are more popular in the rural areas.
Name :Annapurneshwari G Gaddi Roll no : 17 Div :A USN:GIT20MBA026-T
India’s rural economy constitutes nearly half of her national income. Despite growing urbanisation, more than half of India's population is projected to be rural till 2050. Thus, growth and development of the rural economy and population is key to the overall growth of India. Connectivity (infrastructure and telecom), healthcare, education and income generation are important areas.
These focused development initiatives makes the rural sector an appreciating asset. It is home to highly aspirational consumers, who are likely to be the future citizens of urban centres or the smart cities. Brands and corporates should look at the rural sector as an opportunity to connect with their future city cohabitants, through purpose-led brand engagement or behaviour adoption in the same way as you look at your child’s nurturing. Returns are both short term and long term, though in different forms.
Aspiration breaks the distance barrier between the two India’s. When a child is unwell, both the rural and the urban mother have the same set of emotions and reactions. Expressions may differ based on their exposure, education and income but the aspiration levels are not different. It is all about understanding of both levels of emotion-based actions.
Every new highway is putting the rural consumers on the “super-ways” — faster mobility resulting in frequent connectivity. Every megabyte of data is diminishing the border and divide, not only between the rural and the urban but the rural and the overseas markets too. Television soaps are fuelling the aspiration for expression (mind, body and relationships). The other aspect is access to goods and services, thanks to the expansion of distribution channels by various companies besides the access to credit. Rural incomes are rising and this in turn is increasing consumption.
Rural markets are delicately powerful. Certain adaptations are required to cater to the rural masses; they have unique expectation and warrant changes in all four parameters of product, price, promotion and distribution. A lot is already emphasized on adapting the product and price in terms of packaging,flavoring, etc and in sachets, priced to suit the economic status of the rural India in sizes like Rs.5 packs and Re.1 packs that are perceived to be of value for money. This is a typical penetration strategy, which promises to convert the first time customers to repeated customers. The promotion strategies and distribution strategies are of paramount importance. Ad makers have learnt to leverage the benefits of improved infrastructure and media reach. The television airs advertisements to lure rural masses, and they are sure it reaches the target audience, because majority of rural India possesses and is glued to TV sets! Distributing small and medium sized packets through poor roads, over long distances, into deep pockets of rural India and getting the stockiest to trust the mobility is a Herculean task Giving the confidence those advertisements will support. Sales force is being trained to win the confidence of opinion leaders. Opinion leaders play an important role in popularizing the brand. They sometimes play the role of entry barriers for new products. The method of promotion needs to be tailored to suit the expectations of the market.
When a bicycle maker chanced upon a village in Rajasthan that believed in gifting the groom a bicycle on his wedding day, it believed it had struck gold. But soon it realised that there was something peculiar about the custom. The colour black is considered inauspicious and so gifting a bicycle without any black part was proving to be difficult. After all, you can’t do away with wheels or chain of a bike. Villagers were buying bicycles and painting over the black parts in a bid to keep the tradition alive. This is when the bicycle manufacturer decided to introduce an all red and silver bike to the village. Yes, even the wheels were red. The bikes were, obviously, a raging success. In that case, how would a marketer go about marketing his/her products? The rural consumer was, by default, assumed to be poor, with little or no education and limited purchasing power. But that perception is changing. Brands are starting to realise that the rural consumer is as diverse and different as the urban consumer and that they too have the purchasing power that they are looking for. It isn’t surprising then that brands are looking beyond metros and trying to increase their footprints in rural India.
“Brands should resist viewing rural Indian consumers as a homogeneous group. There are various segments of consumers within India’s hinterlands and each consumer segment is different from the other. Rural demand is largely driven by agricultural harvest unlike the salaried class in urban India. Our approach is to win our consumers’ trust by understanding what their needs, gaps, pain points are and then accordingly customising our strategy and offerings to meet their expectations,” said Nandagopal Nair, Vice-President, Corporate Communications, V-Guard Industries Ltd.
With all these factors, making rural an alluring market for marketers, what should marketers keep in mind when trying to reach rural consumers?
Simplicity: Simplicity seems to be the universal code when it comes to reaching out to a rural consumer. Communication has to be crisp, simple and should serve a purpose. Giving the example of an ad by Nokia for their 1100 handset, Sridhar said, “The rural consumer then, used to look at mobile phones as a luxury. So, they came up with a campaign which talked about the features of the phone, essentially giving out the message that it is not a vanity product.” Consumption pattern: According to a leading marketer, one of the key difference between rural consumers and urban consumers is their consumption pattern. “Rural consumers are more likely to consume smaller packs. One-rupee packs of products like shampoos and smaller packs of toothpaste get consumed more in rural areas. One reason for this trend could be the fact that people in rural areas earn money more on a daily or a season-to-season basis rather than a monthly basis. For example, a farmer will make money when his yield is good. Whereas an employee in an urban setting gets a monthly salary,”
Influencers: A leading finance company of the country, when giving loans on vehicles like tractors or trucks, started enlisting the people who they were selling their loans to as their brand ambassadors. Once, the person had paid off his/her loan, the company would ask them to go to neighbouring villages and take the people over there through the company’s schemes and services. Thus creating a credible brand ambassador for themselves.
Packaging: “It is important to reach out to the rural consumer in his/her language and I am not talking about the text here. It is possible that a rural consumer understands the language of colours. Visual appeal is very important. In fact, people go to stores and ask for products based on colours or the packaging,” said Rao.
It is, therefore, important to understand and consider the rural audience as a separate entity and try to create communication specific to their needs and wants and not peddle something that worked for them in the urban markets.
In our country, where research on consumer behavior has been limited to names only, not much synchronized information is available about the rural consumers. Only a few big companies known for their marketing orientation, for example Hindustan Lever, Philips India, Asian Paints, Larsen and Toubro, TATA group have made concrete efforts in this direction.
There are many aspects that affect rural marketing, for instance, the rural buyers are not very discriminating. Once they are persuaded to buy a particular product, they develop a strong felling for it, and become brand loyals. As a result, Indian manufacturers generally prefer selling fewer items at higher prices than selling more items at lower prices.
Another thing is that the rural buyers are not particularly keen about quality and packaging because of which consumer research is not accurate for entering the rural market.
In recent years, the rural sector gives a unique opportunity to expand their market since the urban segment is showing clear signs of saturation. The nature and characteristics of rural market is quite different than the urban market. Therefore, it is necessary to understand the rural area characteristics and environment and take action accordingly.
The concept of refill packs of toothpowder, tea, talcum powder and other FMCGs are promoted by the marketer as the money saving options. Consumers once purchase the product which is packed in bottle of either plastic or glass and then they need not purchase a whole new bottle for their next use. They can just refill the bottle with refill packs which comes in poly packets. The price of such refill packs is lower than the price of the products that are available in bottles. Such strategy works well in case of toothpaste, powder, spices, health drinks etc.
Because of interrupted power supply in rural areas; it is also a point to work on for marketers to make proper arrangements for storage of products which require special storage like ice creams and cold drinks etc.
Companies now provide ice boxes to retailers of remote areas for storage of cold drinks, ice creams etc. Those ice boxes are usually made of thick thermocol and keep the products always cool and also increases their shelf life.
Most rural families don’t yet have consumer durable products like televisions, washing machines, gas stoves, refrigerators, etc. So there is a big potential market waiting to be served. But this all huge market will not accept existing models of these consumer durable products because of the following reasons
In India, most of the villages do not have reliable supply of electricity. Many villages may be connected to the grid but the supply is very erratic.
Rural people have been managing their lives with or without these consumer durable products and most of the rural people consider such products to be for luxury. To make them buy these products, these products have to be priced low. The best way to enter rural markets is by offering them simple, functional and less price products.
The idea of Rural Marketing in Indian Economy has always played a significant role in the lives of people. The rural market in India brings in greater revenues in the country, as the rural regions comprise of the maximum consumers in this country. Indian rural marketproduces almost more than half of the country’s income.Indian Rural Marketing has always been difficult to predict and consist of special uniqueness. However many companies were efficacious in entering the rural markets.
The rural markets offer huge opportunities for enhancing businesses. In spite of much scope for business development very less attention has been paid for the development of rural marketing concept. Further, under developed market, people, infrastructure, communication,transport and many more factors have contribute for the unbalanced growth of rural markets. The researcher has consulted secondary sources of literature for the development of the title.
The market surge is accompanied by a diminishing difference in the expectations of rural and urban customers. Such a scenario makes it imperative for dealers to offer services that meet expectations of the rapidly evolving consumer, particularly those in the rural areas.
Rural India has changed and continues to change. Marketers need to get reacquainted and redefine the relationship or risk missing out on what could be the biggest consumer tsunami since, well, China.
New Attitudes, Priorities and Behaviours are reshaping the purchase decision of India’s rural consumers. These consumers are becoming far more aspirational and are changing rapidly. We can say that Aspirations of consumers in rural market are changing based on the 4A’s of Marketing, this approach is organized around the values that matter the most to customers: Acceptability, Affordability, Accessibility and Awareness.
KEY DIFFERENCES BETWEEN URBAN AND RURAL USERS There are significant differences between rural and urban Internet users that marketers need to take into account.
Primarily for reasons of cost and network availability, almost two-thirds of rural users go online using inexpensive Internet-enabled phones (also known as feature phones) connected to 2G or sometimes 3G networks. Only about a quarter of these users have smartphones and only 10% use PCs or laptops. In urban areas, by contrast, almost two-thirds of users own smartphones, and another 20% use PCs or laptops. Rural usage patterns will change over time as device prices drop and faster networks are deployed. But in the near term, the experience for the vast majority of rural users will remain fundamentally different from that of their urban counterparts—the users for whom companies have so far been developing digital marketing strategies and campaigns.
The market surge is accompanied by a diminishing difference in the expectations of rural and urban customers. Such a scenario makes it imperative for dealers to offer services that meet expectations of the rapidly evolving consumer, particularly those in the rural areas.
Name:Sachin koppad Roll number:83 Div:B USN:GIT20MBA037-T
There is a lot of changes in consumer aspirations in rural market of India. Rural consumers are looking for products that will take their specific needs and environmental limitations into account. Though there are several difficulties in targeting the rural market but still almost all companies are rushing towards these markets because there have been drastic and favorable changes in rural markets like improving lifestyle, taste,increasing literacy level,increase in income, increase in expectations and aspirations. Nowdays Rural consumers are having branded products and major brands are available in Rural market of India. In rural area people are shifting to occupations like skilled work and salaried job. Skill up graduation in rural region is improving with exposure to new technology. Rural consumers are more cautious than the urban consumer. Since the availability of information is less the involvement and efforts taken by rural consumer is more.They purchase products from the point of view of utility and Quality.There has been a boom in communication too. The rural consumer of today is different buyer than ten years ago and the consumers of rural market is developing more than urban consumer.
There are major investments and development in the Indian rural sector. Like Tata motors, it plans to widely expand its network in the rural markets.It is the biggest expansion by a passenger vehicle maker in the country so far. Online sites and channels are viewed for companies as a gateway to break into the rural market. The internet is an effective means of broadening the expansion of various companies into the rural sector.As incomes of India's rural consumers rise they want to provide the children with a better future through education and healthcare. In addition to this the rural shopping market has also began to resemble the urban parts and also includes products from categories they have not purchased from in the past. Rural consumers are increasingly becoming connected, empowered and proactive. Growing access to internet and mobile technology is driving rural consumers to use the internet for better purchase decisions, demand quality as well as value, buy brands and look beyond the price tag, seek customised consumption experiences and look for good after sales services. The influence of internet on the purchasing process is already becoming a significant factor in rural areas. Almost 15% of rural consumers use the internet to research products, purchase a product or register satisfaction or dissatisfaction with a product after the purchase is made compared with 30% of urban consumers. The degree of digital influence is as high in rural areas as it is in cities. Online commerce is in its infancy in rural markets but is increasing fast. The FMCG sector in rural and semi urban India is estimated to cross hundred billion dollars by 2025. Among the leading retailers Dabur generates over 40 to 45% of its domestic revenue from rural sales. Earlier marketers believed that what sells in urban India is too sophisticated and special products would be required for rural, created at a lower cost and with great durability. Today rural consumers want exactly what is selling in the urban market. They won't settle for anything less or different. Rural market will not compromise on brand or quality this has made the job of consumer goods companies easier because today they are focusing on reaching villages and creating relevance as opposed to having to re-invent the product itself. It is clear that India lives in villages and government is developing the life of villagers to make them more and more luxurious. The development is not only evident in metros it is apparent in small towns and villages as well. There is no question that India's rural markets are becoming a powerful economic engine for every new opportunity for a villager to use his mobile phone to protect his crops, there is a knock on opportunity for him to purchase a small refrigerator or a motorcycle. Consumption patterns in these areas are also gradually becoming to mirror those of the urban parts moving to the changing trend as well as size of the market. Rural India provides a tremendous investment opportunity for private companies. The Government of India seeks to promote innovation and technology development in rural and tribal areas of the country.
Name. : Harshal Chougule Roll no: 38 USN. : GIT20MBA064-T Div. : A
Assignment 2 The buying behaviour of the rural consumers is influenced by several factors such as socio-economic conditions, cultural environment, literacy level, occupation, geographical location, efforts on the part of sellers, exposure to media Rural consumers in emerging markets of developing countries are among the largest and fastest growing segments of the world’s population. In a country like India, where a substantial number of the rural people are living below poverty line, having high level of unemployment and poor literacy level; consumer awareness continues to remain low. Rural markets are witnessing ‘value growth’. That is rural consumers are willing to go for premium brands in any product category. Rural market is providing ample options to its consumer in terms of tastes, choices which are changing. The three most important factors are:
Change in consumption pattern
Change in life style
Change in behavior of rural consumer In this regard, many large sized corporations have seen great success in rural areas because of innovative strategies like smaller packaging (Fast Moving Consumer Goods – FMCG companies have creams and soaps priced at Rs5, hair oil and shampoo sachets at Re1 and small Coke at Rs5), customized development and positioning and a good distribution network. The rural India success story is being replicated across a range of sectors in the rural markets. Thus, the sales of FMCG products in rural markets is growing at a fast pace, even faster than that in urban markets. Nielsen estimates that by 2025, the fast-moving consumer goods (FMCG) market in rural India will hit $100 billion and that inflation and pricing will be outstripped by consumption. Today, rural consumers are not only buying to fulfill their basic needs but also taking care of higher needs of comfort and socialization. Moreover, they are getting more conscious about health and that they have the extra money to spend on such products. Consumer behaviour which is related to likes and dislikes and expectations of the consumers has changed in recent years owing to enhanced awareness, information technology and more importantly governmental intervention through legislations. The buying behaviour of the rural consumers is influenced by several factors such as socio-economic conditions, cultural environment, literacy level, occupation, geographical location, efforts on the part of sellers, exposure to media etc. Thus, the manufacturers are more cautious in dealing with consumers of their respective products.
Name : Aishwarya Kulkarni Roll no :06 USN : GIT20MBA057-T Div : A
Penetration of media and telecom services has changed the way India’s rural consumers buy. Like their urban counterparts, consumers in the rural have become more aspirational, striving to purchase branded, high-quality products. They have also become more discerning, no longer willing to accept inferior products simply because they cost less, according to a research study. The changing rural consumer is also defying stereotypes and outdated assumptions. There is no longer one rural consumer—a generic entity who supposedly can be served profitably with one-size-fits-all strategies. Over the last few years, marketers have been expanding to the interiors to capture a share of rural consumer spending. For instance, Hindustan Unilever Ltd, the country’s largest consumer packaged goods company by sales, added one million stores under direct coverage across rural and urban India, taking its total direct reach to 3.2 million outlets. Dabur India Ltd, the maker of household brands like Babool toothpaste, Sani Fresh toilet cleaner, Hajmola tablets and Glucose-D, has increased its penetration from 14,000 villages to 40,000 as part of its so-called “project double" programme launched. The rural consumer has evolved and can be broadly classified as traditionalists, steady climbers, young enthusiasts and village elites, said the report. traditionalists are the conservative rural consumers that rely on conventional channels to make their purchase decisions and necessity drives most of their purchase decisions and price is a key factor. Steady climbers aspire for a more comfortable lifestyle and strive to buy branded products. Young enthusiasts are rural consumers aged 18-28, make extensive use of digital technology and buy branded products to enhance their social image. Village elites are the progressive rural consumers, boasting high education and awareness levels, and desire the best in all products. “There is no difference between the urban and the rural consumer," says Mayank Shah, group product manager, Parle Products Pvt. Ltd, the maker of Parle G, Monaco and Krack Jack biscuits, while explaining that due to media and telecom penetration, the aspirations of rural consumers have become similar to those of the urban consumer. Interestingly, willingness to purchase online in the near future is going to increase…
In India, rural market has got two broad categories. They are selling of agricultural produces in urban markets and selling of industrial goods in rural markets. Also, rural market includes the sale of durable goods, non durable goods and agricultural inputs. It is good to hear that Indian rural market is growing. But the reality is that the Indian population is gradually migrating to modern urban centers. This is mainly because of the lack of facilities and comforts in rural areas. For the marketers the challenge is to run both traditional brick and mortar, and click and mortar pattern of business simultaneously. Due to the lack of strong infrastructure in rural India, technology adoption still seems to be impossible. NEED FOR THE STUDY India has more than six lakhs villages but with not so acceptable facilities. These villages are low in population numbers, poor in terms of infrastructure, low per capita income. Their income predominantly comes from pure agricultural activities or agricultural wages. There are few countable petty shop owners, artisans, and blacksmiths. This clearly shows the income pattern of rural population. For most of the Indian rural families, income is seasonal. The quantum of income is largely dependent on monsoon. As the income is not predictable, the pattern of their buying is also not predictable. Their major spending goes into food and clothing. Only few people can save money for their future. There are few large agriculturists who are supposed to be well to do in rural villages. Though government talks about support to rural India, the reach and effectiveness is not that appreciable. Following are some of the major hurdles in rural markets: Poor Banking farcicalities Lack of basic infrastructure facilities like roads, electricity and communication Lack of exposure to different product categories Highly dispersed markets with thin population Low per capita income with economic backwardness Heavy distribution costs Credit seeking mindset Wide cultural gap between rural and urban markets Difficulty in generating demand for industrial goods
In India, rural market has got two broad categories. They are selling of agricultural produces in urban markets and selling of industrial goods in rural markets. Also, rural market includes the sale of durable goods, non durable goods and agricultural inputs. It is good to hear that Indian rural market is growing. But the reality is that the Indian population is gradually migrating to modern urban centers. This is mainly because of the lack of facilities and comforts in rural areas. For the marketers the challenge is to run both traditional brick and mortar, and click and mortar pattern of business simultaneously. Due to the lack of strong infrastructure in rural India, technology adoption still seems to be impossible. NEED FOR THE STUDY India has more than six lakhs villages but with not so acceptable facilities. These villages are low in population numbers, poor in terms of infrastructure, low per capita income. Their income predominantly comes from pure agricultural activities or agricultural wages. There are few countable petty shop owners, artisans, and blacksmiths. This clearly shows the income pattern of rural population. For most of the Indian rural families, income is seasonal. The quantum of income is largely dependent on monsoon. As the income is not predictable, the pattern of their buying is also not predictable. Their major spending goes into food and clothing. Only few people can save money for their future. There are few large agriculturists who are supposed to be well to do in rural villages. Though government talks about support to rural India, the reach and effectiveness is not that appreciable. Following are some of the major hurdles in rural markets: Poor Banking farcicalities Lack of basic infrastructure facilities like roads, electricity and communication Lack of exposure to different product categories Highly dispersed markets with thin population Low per capita income with economic backwardness Heavy distribution costs Credit seeking mindset Wide cultural gap between rural and urban markets Difficulty in generating demand for industrial goods Name - Dipali Jadhav Roll no- 42 USN - GIT20MBA011-T Div - A
The book is all about the growing power of consumers in rural markets in developing countries in Asia and Africa. It examines the forces that are adding to rural prosperity, including the billions of dollars in remittances. And the young man waiting on Mahajan in the coffee lounge of a prominent New Delhi hotel becomes an instant case study. He comes from a village in Uttarakhand and landed in Delhi looking for work. His father tends to his farms back home. But the young man who is being quizzed says he sends money to his parents. And the money is transferred online. “That’s a live example of remittance going back to the village and adding to the rise in rural consumption," says Mahajan as he concludes his conversation with the waiter. About 48% of the world’s population lives outside urban areas and nine of every 10 of those people, or about 3 billion, live in rural Africa or Asia, he says. “Companies that discount these consumers essentially cut their global marketplace in half. The bigger opportunity lies in the up-and-coming rural populations of emerging economies, particularly in Asia and Africa," he adds.
For the book, he focused on 10 countries with the largest rural populations, seven of them in Asia and three in Africa. The rural top 10 include India, China, Indonesia, Pakistan, Bangladesh, Nigeria, Ethiopia, Vietnam, Egypt and the Philippines. Mahajan says he focused on these because collectively they total nearly 2.2 billion people or two-thirds of the entire world’s rural population. “They represent a massive market opportunity for the progressive consumer companies. These economies have increasing spending power," he says.
Between 2013 and 2015, Mahajan travelled to each of the rural top 10 countries, as well as to Thailand, Myanmar and Bhutan. In these countries, he discovered an increasingly affluent consumer base “whose needs were the same as any consumer I have seen anywhere around the world". So, a big takeaway from his travel around the world is that consumer aspirations are the same everywhere. There is no difference between the aspirations of the urban and rural consumers and the aspirations of rural consumers in different parts of the world, says the professor.
“From a marketing point of view, there are people who are poor, people who are rich and people who are in between. But their aspirations don’t change. After travelling to 60-70 countries, I can say that mothers everywhere are the same. They want to give their children better than what they have and they want them to achieve what they have not achieved. That’s why aspirations are universal,
Simran Sambrekar RollNo 101 USN GIT20MBA025-T Div B
In the busying preference of India's consumer are changing fast and several factors PESTAL analysis are coming. Together to form one information as rural consumers income levels are on rise ,more of them are buying product n services that improve the quality of live There also have been shift in business levels of the rural consumer and the increased media presentation has played a vital role in rural india values. Secondly , rural consumers have a better connection activity , they both have better connection in digital and physical sense , the recent data shows that there are many as 35% of rural household activities both husband and wife earning money New technology and attitude behaviour are reshaping the purchase decision of India's rural customer's. These consumers are becoming far more aspirational and networked . Our recent researchers have found that consumers in india are waiting to be served in new ways and with new offerings
The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy. Accenture undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. Our study identifies two broad dimensions characterising behaviour change emerging among India's rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families. From biscuits to televisions, the expectations of India's rural consumers are changing and price is taking a back seat to brand image and aesthetics a report has said. "Rural consumers are changing in three fundamental ways," the report said. "They are far more aspirational, networked and discerning." "The next generation of the rural consumer who is coming in has a higher exposure level than the previous generation," Brands need to extend not just their physical reach but their "mental reach" in order to grasp the opportunities offered by these new consumers, the report said. Warc's recent series on Indian youth made a similar point, when Narayan Devanathan of Dentsu India Group argued that the urban-rural divide was a myth and that the real split was between traditional and progressive mindsets. Name: Nikita Patil Roll no:61 USN:GIT20MBA045-T Div:B
The Rural markets offer immense opportunities for enhancing businesses. Inspite of so much scope for business development very less attention has been paid for the development of rural marketing concept. Further, under developed market, people, infrastructure, communication, transport and many more factors have contribute for the unbalanced growth of rural markets. But slowly all this is changing.
The concept of rural market in India is still evolving and it posses numerous challenges like understanding rural consumer, reaching and providing services to remote locations and communicating with audience. Though there are several difficulties in targeting the rural market but still almost all companies are rushing towards this market. This is mainly because of saturated urban market and favourable changes in rural market like improving lifestyle, habits, taste, increasing literacy level, increase in income, increase in expectations and aspirations, improving infrastructure, government support via various schemes etc. This is how the aspirations are changing in rural consumers. Now day’s rural consumers are also using branded products and almost all major brands are available in rural market of India. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television have also reshaped lifestyle and consumption patterns among rural consumers.
Many companies were efficacious in entering the rural markets. It is very difficult for the companies to overlook the opportunities offered by the rural markets. As two – third of Indian population exists in these areas, the market is much unanticipated for the companies to be effective in rural markets. Hindustan Unilever Ltd. , ITC, Parley Foods and many other companies are concentrating on the rural markets as the urban markets have become saturated.
Conclusion: The scope of future expansion lies in the development of rural markets. In fact, rural marketing should be recognized as developmental marketing by big business firms. In India it has gained greater significance these days as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities.
Name - Aditi Dalal Roll No.- 04 USN - GIT20MBA018-T Div- A
The rural markets are growing at above two times faster pace than urban markets. To explore and understand rural market is crucial for any marketers. Rural Marketing is one of the emerging concepts which have attracted the attention of marketers globally in the recent years. The concept incorporates the marketing of rural specific goods and services leading to exchange between rural and urban markets. The green and white revolutions in the rural areas have raised the standard of living, purchasing capacity and consumptions levels of huge quality and quantity of industrial and manufactured goods.This move have made many business houses to plan strategies to extend their business to rural areas, the trade channels for different types of commodities available in rural areas are private, cooperatives, processors, regulated markets and state agencies.
Some major hurdles in rural markets are poor Banking facilities, Lack of basic infrastructure facilities like roads, electricity and communication, Lack of exposure to different product categories, Highly dispersed markets with thin population, Low per capita income with economic backwardness, Heavy distribution costs, Credit seeking mindset, Wide cultural gap between rural and urban markets. The primary customer for the organisation, the retailer has a very high bargaining power in the rural markets. To create shelf space for the products at the rural retail outlet is a big challenge as rural retailer is only stockings few brands per products category. He can live with that very comfortably as his market is not very choosy and demanding and is ready to accept whatever he offers because of lack of alternative options.
The strategy for rural marketing has to be basically different from that for the urban market because of two very important reasons. In the first place, since the urban people are concentrated, it is physically easier to contact them. On the contrary, people in villages are scattered, so that the task of contacting them is several degrees more demanding and challenging. Secondly, the methods of communicating with the villagers have to be of a different order in view of their lower levels of education and the environmental differences. Though the gap between Indian rural and urban consumer is decreasing still there is considerable difference between them in terms geographic, demographic and psychographic aspects. These differences are resulting in distinction in rural and urban consumers' behaviour, hence requiring different marketing strategies for these regions.
Name - Sameeksha Kini USN - GIT20MBA010-T Roll No.- 85 Div - B
The rural market has changed drastically in the past one decade. Rural marketing today is much easier than it was for the pioneers because there has been considerable improvement in the means of transport and communication during the last decade. Markets are better connected by road and rail, and the number of trucks and buses (public and private) has increased considerably. Banks in the villages or nearby help rural dealers in cleaning their documents without much delay. Cinema, Television and Radio now make it easier to communicate with the rural consumers.
Also a decade ago, the rural market was more unstructured and was not a prioritized target location for corporate. Very few companies, mainly the agro based ones, were concentrating in those markets. There were no innovative strategies and promotional campaigns exclusively for rural markets. What makes Rural Markets Attractive? Rural market has following arrived and the following facts substantiate this. 742 million people Estimated annual size of the rural market - FMCG Rs. 65,000 Crores - Durables Rs. 5,000 Crores - Agri-inputs (incl. tractors) Rs. 45,000 Crores - 2 / 4 wheelers Rs. 8,000 Crores 41 million Kisan Credit Cards issued (against 22 million credit-plus-debit cards in urban) with cumulative credit of Rs. 977 billion resulting in tremendous liquidity. Of 20 million Rediffmail signups, 60 % are from small towns. 50% transactions from these towns on Rediff online shopping site 42 million rural House Holds availing banking services in comparison to 27 million urban House Holds. Investment in formal savings instruments: 6.6 million House Holds in rural and 6.7 million in urban 53% of FMCG sales happen at Rural India. Talcum powder is used by more than 25% of rural India. Lipsticks are used by more than 11% of the rural women and less than 22% of the urban women. Close to 10% of Maruti Suzuki’s sales come from the rural market. Hero Honda, on its part, had 50% of its sales coming from rural market in FY’09. Rural India has a large consuming class with 41% of India’s middle-class and 58% of the total disposable income accounting for consumption. By 2010 rural India will consume 60% of the goods produced in the country. In 20 years, rural Indian Market will be larger than the total consumer markets in countries such as South Korea or Canada today, & almost 4 times the size of today’s urban Indian market Opportunities: Rapid improvement in Infrastructure is attracting companies to shift focus from urban to rural market - In 50 years only 40% villages connected by road, in next 10 years another 30%. - More than 90 % villages electrified, though only 44% rural homes have electric connections. - Rural telephone density has gone up by 300% in the last 10 years; every 1000+ pop is connected by STD. Social Indicators have improved a lot between 1981 and 2001 - Number of "pucca" houses doubled from 22% to 41% and "kuccha" houses halved (41% to 23%) - Percentage of BPL families declined from 46% to 27% - Rural Literacy level raised from 36% to 59% Problems & Challenges of rural markets: The rural market offers a vast untapped potential; it should also be recognized that it is not that easy to operate in rural market because of number of problems such as improper infrastructure and transportation would lead to time delay and high cost on transportation could lead to weak logistics and distribution also. Thus Rural marketing is a time consuming affair and requires considerable investments in terms of evolving appropriate strategies with a view to encounter the problems.
Name :- Saiel Pawaskar USN :- GIT20MBA020-T Roll No :- 84 Div :- B
The expectations of today's rural India n consumers differ markedly from those of previous generation. They are moving away from purely economic concepts of value driven by low prices towards a trader notion of value that combine price with the utility and features of products and services
Companies will have to let go of longstanding assumptions about rural Indians that have prevented them from understanding who these consumers really are and establishing long lasting brand relationship with them Three broad dimensions characterizing change in rural consumer behaviour
1.aspiration As incomes of India's rural consumers rise they want to provide their children with a better future through education and healthcare 2 .network Rural consumer operate as members of tightly knit communities, with word of mouth playing a powerful role in they purchase decision 3.Discerning Rural consumers no longer fall for fraudulent retailer tactics or blindly accept a product only because it is low priced
Name:- Apeksha Bhat USN:-GIT20MBA013-T Roll no:- 19 Div:- A
Businesses in India are more confident than ever about the growth of the country's rural consumer markets. The present rural consumers are particularly aspirational, striving to purchase branded high quality products. The rural consumers are better networked and proactively seek information through multiple sources. Online portals are today viewed as instrumental channels for companies trying to break into rural market. New attitudes, priorities and behaviours are reshaping the purchase decisions of Indias rural consumers. Research found that rural consumers in India are waiting so be served in new ways and with new offering. Rural Consumer Segment Traditionalist Traditionalist are the conservative rural consumers rely on conventional channels to make their purchase.
Steady Climbers Aspire for a more comfortable lifestyle they want to enhance their social standing among their peers and strive to do so by buying branded products and offerings.
Young Enthusiast Rural consumers aged 18-28 make extensive use of digital technology and buy branded products to enhance their social image.
Village Elites Village elites are the progressive rural consumers boasting high education and awareness level. They desire the best in product quality features and aesthetics.
Name:Anirudh Ghatage USN no:GIT20MBA104-T Roll no:15(Division A)
Vijay Mahajan prefers to cite anecdotal evidence for everything he says or writes. So, it is no surprise that the professor, who was in India for his book launch in New Delhi last week, starts quizzing the attendant in the restaurant who is serving him green tea, to prove his point on remittances. Published by Sage, his book is titled Rise of Rural Consumer in Developing Countries and professor Mahajan is John P. Harbin Centennial Chair in Business at the McCombs School of Business, University of Texas at Austin. He was also the dean at the Indian School of Business, Hyderabad, between 2002 and 2004.
The book is all about the growing power of consumers in rural markets in developing countries in Asia and Africa. It examines the forces that are adding to rural prosperity, including the billions of dollars in remittances. And the young man waiting on Mahajan in the coffee lounge of a prominent New Delhi hotel becomes an instant case study. He comes from a village in Uttarakhand and landed in Delhi looking for work. His father tends to his farms back home. But the young man who is being quizzed says he sends money to his parents. And the money is transferred online. “That’s a live example of remittance going back to the village and adding to the rise in rural consumption," says Mahajan as he concludes his conversation with the waiter. For the book, he focused on 10 countries with the largest rural populations, seven of them in Asia and three in Africa. The rural top 10 include India, China, Indonesia, Pakistan, Bangladesh, Nigeria, Ethiopia, Vietnam, Egypt and the Philippines. Mahajan says he focused on these because collectively they total nearly 2.2 billion people or two-thirds of the entire world’s rural population. “They represent a massive market opportunity for the progressive consumer companies. These economies have increasing spending power," he says.
Between 2013 and 2015, Mahajan travelled to each of the rural top 10 countries, as well as to Thailand, Myanmar and Bhutan. In these countries, he discovered an increasingly affluent consumer base “whose needs were the same as any consumer I have seen anywhere around the world". So, a big takeaway from his travel around the world is that consumer aspirations are the same everywhere. There is no difference between the aspirations of the urban and rural consumers and the aspirations of rural consumers in different parts of the world, says the professor.
“From a marketing point of view, there are people who are poor, people who are rich and people who are in between. But their aspirations don’t change. After travelling to 60-70 countries, I can say that mothers everywhere are the same. They want to give their children better than what they have and they want them to achieve what they have not achieved. That’s why aspirations are universal," he says. The rural story in his book is directed at the company CEOs in Mumbai, Shanghai and New York as well as for the policymakers, he says. “I wanted to tell them what they are missing. I wanted to say that you cannot have sustainable economic growth unless you have an inclusive strategy. That inclusive strategy must include the world’s non-urban population," he adds. As mentioned earlier, rural markets are being transformed by the remittances from migrant workers. Then there is government intervention, which may be improving their lot. There are several government schemes in India for the benefit of the rural folk, says Mahajan. In China, too, the government subsidized a lot of white goods during recession. It wanted to encourage people in rural areas to buy those products.
Name :- Bhushan P Desai USN :- GIT20MBA069-T Roll No :- 28 Div :- A
Predominantly India is dominated by rural population. Roughly around 12 percent of the world’s population is living in rural India. According to 2014 World Bank Report, 67.63 percent of Indian population lives in rural areas. In the year 2010, Indian rural population was about 70 percent. After 2010, there has been a gradual decline in the rural population in India. Rural India accounts for 64 percent of total expenditure and 1/3 of total savings. On the one hand, Fast Moving Consumer Goods industry is growing. On the other hand many companies feel that the urban markets are saturated. Most of the leading companies are now trying to target rural markets. Till very recently, per capita income of rural population is roughly about Rs. 60,000. Due to the initiatives like minimum support price, rural employment guarantee scheme, disposable income of rural population has started increasing. But the increase in income is not that remarkable.
Predominantly India is dominated by rural population. Roughly around 12 percent of the world’s population is living in rural India. According to 2014 World Bank Report, 67.63 percent of Indian population lives in rural areas. In the year 2010, Indian rural population was about 70 percent. After 2010, there has been a gradual decline in the rural population in India. Rural India accounts for 64 percent of total expenditure and 1/3 of total savings. On the one hand, Fast Moving Consumer Goods industry is growing. On the other hand many companies feel that the urban markets are saturated. Most of the leading companies are now trying to target rural markets. Till very recently, per capita income of rural population is roughly about Rs. 60,000. Due to the initiatives like minimum support price, rural employment guarantee scheme, disposable income of rural population has started increasing. But the increase in income is not that remarkable. Predominantly India is dominated by rural population. Roughly around 12 percent of the world’s population is living in rural India. According to 2014 World Bank Report, 67.63 percent of Indian population lives in rural areas. In the year 2010, Indian rural population was about 70 percent. After 2010, there has been a gradual decline in the rural population in India. Rural India accounts for 64 percent of total expenditure and 1/3 of total savings. On the one hand, Fast Moving Consumer Goods industry is growing. On the other hand many companies feel that the urban markets are saturated. Most of the leading companies are now trying to target rural markets. Till very recently, per capita income of rural population is roughly about Rs. 60,000. Due to the initiatives like minimum support price, rural employment guarantee scheme, disposable income of rural population has started increasing. But the increase in income is not that remarkable.
rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics. While the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty.
Sushma R Arkasali Roll no: 110 USN : GIT20MBA084-T B DIVISION
buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12. has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy. centure undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states. , rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty.
Rural India has witnessed a wave of change in recent times. Rural markets dominate Indian marketing scene and they need special attention for the expansion of marketing activities. With media exposure and increasing literacy levels, people are now demanding a better lifestyle.As we know, in a country like India, 70 percent of Indian population lives in rulal areas. The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. Take example of Changing technology which leads to change rural consumer aspirations rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet usin mobile handsets, the spread of wireless data networks, and evolving consumer behaviors and preferences will all drive rural penetration This has been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy. Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families. The rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics. Therefore, Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty specially rural consumers.
Name - Priyanka Khot USN. - GIT20MBA051-T Roll no- 76 Div. - 'B'
HOW CONSUMERS ASPIRATIONS ARE CHANGING IN RURAL MARKET IN INDIA The buying preference of India's rural consumers are changing fast and several factors – economic, psychological and technological are coalescing to fuel this transformation that is people are moving towards more advanced technology. Rural consumers income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased. There has also been change in the awareness levels of the rural consumer and this due to the increased media has played a vital role in rural India’s values and attitudes. These economic trends and recent advances in technology have triggered major changes in how rural consumers make purchase decision and what to buy and from where to buy. The changing aspirations can be studied by characteristics behavior of India’s rural consumers First rural consumer are more aspirational and they have deep desire to provide better life for they family and a better future and providing them with better quality of life. As consumers are becoming brand conscious, they are also trading up and seeking more features and for better product to enhance their social image. Rural consumers are more discerning. Rural consumers are street smart about common schemes and view value through broader lens and share information with other consumers while companies may feel that rural consumers can be swayed by celebrity endorsements and ads in reality consumers don’t fall for such tactics. While rural consumers need at different points in purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies needs to develop products and services that address the unique needs of the consumers
Name - Priyanka Desai USN - GIT20MBA062-T Roll no - 75 Div - B
Name : Dhanashree kangralkar Roll no. : 33 USN : GIT20MBA102-T Div : A
Consumers are king in the market n becoming tough factor for the marketers. Rural India was before not aware about the products services brands, companies, quality ect. But the consumers of rural area are aware about all these things n now theire buying behaviour is changing. Reach of the television, mobile phones, internet network creating the urban place in rural India. People are becoming aware about the products and marketing. They have become more choose for the products and services. Litteracy rate of the rural area is increasing and this leads to changing aspiration of the consumers. Students are moving to the urban areas and in return bringing the urban consumers fashion to the villages. Also many institutions are moving to the villages n this leads to change in the life style of the rural people. Many companies have analysed the opportunity in rural areas n they are targeting to rural consumers n consumers are giving good response to them. There are some govt. Campaign which are making aware about the consumers rights. Development of infrastructure n roads n transportation in rural areas attracting rural consumers to uraban market n they are attracting towards this metro city life style and this is the reason they are looking for the options in the market. Companies like Amazon, flipcart, mynta these online sites are reaching to the village n therefore rural people r attracting to these sites and their taste is changing. Modernisation of the society is changing the aspiration of the consumers buying pattern n now rural n urban people area are connected n becoming one area. Also the changing pattern of agriculture n modernised techniques in agriculture system making aware about the new market. These are some above reasons which are resulted into changing aspiration of rural consumers in India.
rural consumers are particularly aspiring or striving to purchase branded, high quality products. Consequently, businesses in India are optimistic about growth of the country's rural consumer markets, which is expected to be faster than urban consumer markets. The report highlights the better networking among rural consumers and their tendency to proactively seek information via multitude sources to be better informed while making purchase decisions. Importantly, the wider reach of media and telecommunication services has provided information to India’s rural consumers and is influencing their purchase decisions. In line with general trend, rural consumers are evolving towards a broader notion of value provided by products and services which involves aspects of price combined with utility, aesthetics and features, and not just low prices.
Saloni pattanshetty Roll no 65 Usn no GIT20MBA014-T DIV B
Rural marketing involves addressing over 700 million potential consumers and over 40 per cent of the Indian middle income. ... For a number of PMCG companies is the country, more than half their annual sales come from the rural market.
Consumers in India’s hinterlands are increasingly vying for premium options and evaluating products based on their distinct utility and value. However, given Indian agriculture’s heavy reliance on monsoons, farmers’ incomes continue to be susceptible to the vagaries of nature resulting in farmers often being cash-strapped, and hence price sensitive.
In addition to product price, our studies also highlight farmer skepticism to servicing and overall maintenance cost of their tractors, which is often noted to be higher than their expectation. rural consumers are particularly aspiring or striving to purchase branded, high quality products. Consequently, businesses in India are optimistic about growth of the country's rural consumer markets, which is expected to be faster than urban consumer markets. The report highlights the better networking among rural consumers and their tendency to proactively seek information via multitude sources to be better informed while making purchase decisions. Importantly, the wider reach of media and telecommunication services has provided information to India’s rural consumers and is influencing their purchase decisions. In line with general trend, rural consumers are evolving towards a broader notion of value provided by products and services which involves aspects of price combined with utility, aesthetics and features, and not just low prices.
Saloni pattanshetty Roll no 65 Usn GIT20MBA014 (The previous comment was raw Sir kindly accept this comment )
The concept of rural market in India is still evolving and it posses numerous challenges like understanding rural consumer, reaching and providing services to remote locations and communicating with heterogeneous audience increase in income, increase in expectations and aspirations, improving infrastructure, government support via various schemes etc. Now day's rural consumers are also using branded products and almost all major brands are available in rural market of India. The rural regions are already well covered by basic telecommunication services and are now witnessing increasing penetration of computers and smartphones. Taking advantage of these developments, online portals are being viewed as key channels for companies trying to enter and establish themselves in the rural market. The Internet has become a cost-effective means for a company looking to overcome geographical barriers and broaden its reach. Migration is resulting in increase in urban population but at the same time this migrated rural population is sending money to their relatives living in rural region. As a result of these differences in socio economic environment of rural and urban region,asignificant difference was observed in rural and urban consumers’ mindset also. • Need based buyer behavior • Value for Money • Consensus decision making • Brand consciousness • Brand loyalty
India's Rural Consumers Are Changing Fast.New attitudes, priorities and behaviors are reshaping the purchase decisions of India's rural consumers.Following points explain the reasons why companies are going rural i.e. what attracts them:
•Large and Scattered market •Major income from agriculture •Low standard of living •Traditional Outlook •Diverse socio-economic backwardness •Infrastructure Facilities •High Growth Rate
Now it is clear that India lives in villages and Government is developing the life of villagers to make them more and more luxurious. Some highlights are:– 1. The development is not only evident in metros—it is apparent in small towns and villages as well. 2. There is no question that India’s rural markets are becoming a powerful economic engine. 3. For every new opportunity for a villager to use his mobile phone to protect his crops, there is a knock-on opportunity for him to purchase a small refrigerator or a motorcycle. 4. Consumption patterns in these areas are also gradually beginning to mirror those of their urban counterparts. 5. Owing to this changing trend as well as the size of the market, rural India provides a tremendous investment opportunity for private companies. 6. The Government of India seeks to promote innovation and technology development in rural and tribal areas of the country. 7. Banks are working on establishing 'Rural ATMs' which will dispense currency notes of smaller denominations. 8. With the increasing demand for skilled labour, the Indian government plans to train 500 million people by 2022, and is looking out for corporate players and entrepreneurs to help in this venture.
Name:Shamala C Hukkeri Usn: GIT20MBA134-T Roll no:90 Div :B
Name :-Prakash R Shapurkar Roll :- 70 Division :- B Usn no :-GIT20MBA048-T
ASSIGNMENT 2
“Rural marketing can be seen as a function which manages all those activities involved in assessing, stimulating and converting the purchasing power into an effective demand for specific products and services, and moving them to the people in rural area to create satisfaction and a standard of living to them and thereby achieves the goals of the organization.” So we can define rural marketing as not only marketing of goods to rural people but our marketing activities should also encourage the rural consumers to enhance the standard of living by providing high quality product. Increasing Prosperity Rising Consumption Changes in Life Cycle Life Cycle Advantage Higher Market growth rate than Urban Inexpensive marketing Increasing reach [2] The government added fresh impetus to the National Rural Employment Guarantee Scheme; its flagship job creation program for rural India which provides guaranteed work for 100 days of a year for the country’s poor [3] . During year 2008-09, the scheme provided employment opportunities to more than 44 mn households when compared to a figure of 33 mn households covered the previous year. The rural road outlay has been upped by close to 60 per cent [4] . Rural population accounts for 70% of the total Indian population and it is increasing at a higher rate in comparison to urban population. We see a basic difference in urban and rural buyers’ characteristics while buying any product. Some of the reasons behind this differentiation are:
Definition “Rural marketing can be seen as a function which manages all those activities involved in assessing, stimulating and converting the purchasing power into an effective demand for specific products and services, and moving them to the people in rural area to create satisfaction and a standard of living to them and thereby achieves the goals of the organization. ocess of rural consumer undergoes following steps. The purchase decision cycle starts with consumer trying to understand the need of the product. In rural India cost is still the major consideration and prime purchases are for essential items. Information search is typically via word of mouth and discussions with the neighbors, friends, and society. Henceforth, depending upon the need, buying power, and other environmental factors, final decision to select the best alternative to consume is made. All this followed by the post purchase behavior which depends upon the satisfaction or dissatisfaction level of the consumer. Rural People: Purchasing Branded Products [8] This paper talks about branding in rural markets. It recites that against the common belief that brands are for rich people, poor people are more loyal to branded products because most the time they do not have a second chance. By second chance we mean to say that if a product does not deliver the expected value, because of limited resources BoP consumers will not be able to buy another new product. The financial risk is too high. So buying branded products is a rational purchase, since it assures the expected deliver. Basically they define what a brand is – consistent and reliable. What differs among low-income and upper-income consumers is the way they perceive the value proposition of brands, products: that is, the costs-attribute-benefit relationship is perceived. The lower income groups perceive reinforcement of dignity and personalized relationships as more important than among upper income. The promise of inclusiveness lends to the value proposition directed to the low-income consumers, the proposition of exclusiveness is what expands the perception of the product benefits among upper-income consumers.
Name :-Prakash R Shapurkar Roll :- 70 Division :- B Usn no :-GIT20MBA048-T
ASSIGNMENT 2
“Rural marketing can be seen as a function which manages all those activities involved in assessing, stimulating and converting the purchasing power into an effective demand for specific products and services, and moving them to the people in rural area to create satisfaction and a standard of living to them and thereby achieves the goals of the organization.” So we can define rural marketing as not only marketing of goods to rural people but our marketing activities should also encourage the rural consumers to enhance the standard of living by providing high quality product. Increasing Prosperity Rising Consumption Changes in Life Cycle Life Cycle Advantage Higher Market growth rate than Urban Inexpensive marketing Increasing reach [2] The government added fresh impetus to the National Rural Employment Guarantee Scheme; its flagship job creation program for rural India which provides guaranteed work for 100 days of a year for the country’s poor [3] . During year 2008-09, the scheme provided employment opportunities to more than 44 mn households when compared to a figure of 33 mn households covered the previous year. The rural road outlay has been upped by close to 60 per cent [4] . Rural population accounts for 70% of the total Indian population and it is increasing at a higher rate in comparison to urban population. We see a basic difference in urban and rural buyers’ characteristics while buying any product. Some of the reasons behind this differentiation are:
Definition “Rural marketing can be seen as a function which manages all those activities involved in assessing, stimulating and converting the purchasing power into an effective demand for specific products and services, and moving them to the people in rural area to create satisfaction and a standard of living to them and thereby achieves the goals of the organization. ocess of rural consumer undergoes following steps. The purchase decision cycle starts with consumer trying to understand the need of the product. In rural India cost is still the major consideration and prime purchases are for essential items. Information search is typically via word of mouth and discussions with the neighbors, friends, and society. Henceforth, depending upon the need, buying power, and other environmental factors, final decision to select the best alternative to consume is made. All this followed by the post purchase behavior which depends upon the satisfaction or dissatisfaction level of the consumer. Rural People: Purchasing Branded Products [8] This paper talks about branding in rural markets. It recites that against the common belief that brands are for rich people, poor people are more loyal to branded products because most the time they do not have a second chance. By second chance we mean to say that if a product does not deliver the expected value, because of limited resources BoP consumers will not be able to buy another new product. The financial risk is too high. So buying branded products is a rational purchase, since it assures the expected deliver. Basically they define what a brand is – consistent and reliable. What differs among low-income and upper-income consumers is the way they perceive the value proposition of brands, products: that is, the costs-attribute-benefit relationship is perceived. The lower income groups perceive reinforcement of dignity and personalized relationships as more important than among upper income. The promise of inclusiveness lends to the value proposition directed to the low-income consumers, the proposition of exclusiveness is what expands the perception of the product benefits among upper-income consumers.
The book is all about the growing power of consumers in rural markets in developing countries in Asia .As per the pmc Companies in the country are more than half of the annual sales come from the rural market. In olden daysRural India was not aware about the products services brands, companies, quality ect. But the consumers of rural area are aware about all these things n now theire buying behaviour is changing. Litteracy rate of the rural area is increasing and this leads to changing aspiration of the consumers. The monthly per capita spending among rural consumers has increased yet there are lot many changes that as to take place for the betterment of rural marketer's. It's peoveny rural marketing is time consuming as in the is no proper infrastructure transport facilities and so on. There is a huge difference in urban marketing and rural marketing. Rural marketing requires good investment and proper marketing strategy as per the regions and there way of approaching things. Karthika ps _44
rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category. rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. Name: shradha Laxman chopade Roll no: 92 Div.: B
Sudeer hanagi Roll num 104 Division B USN GIT20MBA111-T
Rising affluence is the biggest driver of increasing consumption. (See Exhibit 1.) Of India’s five household income categories (elite, affluent, aspirers, next billion, and strugglers), the top two income classes are the fastest growing. From 2016 through 2025, the share of elite and affluent households will increase from 8% to 16% of the total while the share of strugglers will drop from 31% to 18%.
Behind the growth headlines is an even more important story: consumer behaviors and spending patterns are shifting as incomes rise and Indian society evolves. These shifts have big implications for how companies position themselves now.
In 2012, BCG’s Center for Customer Insight (CCI) conducted its first in-depth exploration of growth and consumer trends in India. (See The Tiger Roars: Capturing India’s Explosive Growth in Consumer Spending, BCG Focus, February 2012.) In 2016, we took an updated look at emerging developments, basing it on new research among 10,000 consumers in 30 locations nationwide. The evolution in consumer behaviors is playing out largely as we predicted four years ago, but, inevitably, new developments, as well as twists and turns, are affecting consumer attitudes and consumption.
This report examines the factors that are shaping India’s complex and growing market, consumers’ evolving spending patterns, the increasing and substantial impact of digital technologies on spending, and emerging trends that could alter spending. It presents an assessment of how companies need to adjust their strategies and models to meet shifting circumstances.
THE FACTORS SHAPING A GROWING MARKET
Companies today need to focus on three aspects of India’s fast-growing consumer market: rising affluence, the country’s continuing and unique pattern of urbanization, and fundamental shifts in family structures. (See Exhibit 2.)
Rising Affluence. We observed in 2012 that India’s income pyramid was transforming itself into a diamond as household incomes grew. In terms of spending, the two top consumer categories—elite and affluent—will become the largest combined segment by 2025, accounting for 40% of consumption compared with 27% in 2016. Within this segment, the urban elite and affluent are fueling most of the growth. By 2025, wealthy urbanites will be responsible for one-third of total consumption. The share of the next billion and strugglers will shrink from 49% in 2016 to 36% in 2025.
Continuing Urbanization. India’s continuing pattern of urbanization is uniquely Indian. The migration to urban centers is not concentrated in a few cities as it is in countries such as Indonesia or Thailand; nor is urbanization in India occurring as quickly as in China. In India, the population is booming in scores of small cities across the country. About 40% of India’s population will be living in urban areas by 2025, and these city dwellers will account for more than 60% of consumption. Much of this growth will take place in small towns.
Name: Sonal Vernekar Roll no:116 USN no.GIT20MBA016-T The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preference.Accenture undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Name Shweta Hanje Roll no 98 Division B USN GIT20MBA070-T
The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12.
There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
Accenture undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Our study identifies three broad dimensions characterising behaviour change emerging among India's rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.
Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.
Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics.
The three broad dimensions characterising behaviour change emerging among India's rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category. Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families. Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics. While the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty.
Name:Payal Jain Rollno:67 USN : GIT20MBA112-T buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12. There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy. three broad dimensions characterising behaviour change emerging among India's rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category. Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families. Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics. While the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty.
The aspirations of the modern consumer is changing with time is a well known fact. Currently in India there are 65000 crore people who use internet on their mobile phones and a sizable amount of it consists of the rural population who are now aware about the technological advancements and it's benefits. It all started with introduction of Jio SIM cards which led to this change, it made the rural population opt for the internet facilities and here their first aspiration came into existence is fast internet speed. They started trying out different internet connections to find the fastest internet service provider in their area.
With the rise in the use of internet service their brand awareness also started to increase. All the people from rural areas started using different social media platforms like facebook, whatsapp, instagram, tiktok, etc which acted as a medium to introduce new brands to the rural population. Earlier they only had access to the television and selected channels which showed different advertisements, but now when the use of internet increased in the rural areas they also started to become brand cautious.
Earlier they had to ask many friends and neighbours before buying a particular product, but now they have many options on the internet and also they can get information and be aware about the new products online. They can browse through the internet and find information about any product before purchasing them. Also the rural customer is now aware about the after sales services the companies provides and they know their rights. RBI has focused on showing different advertisements on local channels to make people aware about the fraudulent practices and how to fight against anything wrong that has happened with them when they buy a product or a service.
Also one of the major reason towards the shift from the local brands to the modern and well know brands is because of the increase in disposable income of the people. Earlier all rural people used to do agriculture business inorder to meet their needs and a large part of their profits went to pay the loans that they had taken with the intrest rates, But now they have also shifted to new businesses which earns them good amount of money.
The rural customer is now smart and wants the best value for the least money. In many areas rural some of the customers are now shifting from shampoo sachets to bottles as they want are influenced by the brand ambassadors of different brands.
And lastly the rise of selfie era has made people post selfies for different occasions. Here the fashion retailers tap the market. The rural consumers buy new ethnic wears like kurtas, pyjamas, kurtis, etc and want to post selfies on social media. Earlier there was no such fancy to buy new clothes for every festival.
Name : Nishant Desai Roll no. 29 USN: GIT20MBA032-T Division: A MBA I semester
name vinod naik roll no-118 div-B usn- GIT20MBA049-T
New attitudes, priorities and behaviors are reshaping the purchase decisions of India's rural consumers. These consumers are becoming far more aspirational, networked and discerning. The latest research challenges many traditional assumptions about how rural consumers make their purchases, and demonstrates how a few companies have managed to understand the changing rural consumer behavior. Research found that rural consumers in India are waiting to be served in new ways, and with new offerings. They have already started deciding which brands they will pledge their loyalty to. What can companies do to lock in these consumers' loyalty before their competitors can? Researcher believe that companies must augment their physical reach by understanding the minds of these customers what they really want and why. The Changing Realities of Rural India Companies will have to let go of longstanding assumptions about rural Indian consumers that have prevented them from understanding who these consumers really are and establishing long-lasting brand relationships with them. Three Broad Dimensions Characterizing Change In Rural Consumer Behavior Our research identifies nine behavioral characteristics emerging among the rural consumers in India. These have been organized into three broad dimensions: 1. Aspirational 2. Networked 3. Discerning Aspirational:- As incomes of India's rural consumers rise, they want to provide their children with a better future through education and healthcare. In addition, their shopping basket has begun resembling that of their urban counterparts and includes products from categories they have not purchased from in the past. In the process of becoming more aspirational, rural consumers in India are now: Brand Savvy: Willing to invest in branded products to ensure quality Trading Up: Want more features and better product designs to boost social image Explorers: Adopt new categories, using multiple channels Networked Rural consumers operate as members of tightly-knit communities, with word of mouth playing a powerful role in their purchase decisions. Today, they have greater access to mobile Internet, and consume the same media–music, TV, movies–as urban consumers. Discerning Rural consumers no longer fall for fraudulent retailer tactics or blindly accept a product only because it is low priced. At the same time, they will not buy an expensive offering unless they are convinced of its utility and longevity. In their judgment, they are: Street smart: More aware, not prone to fraudulent schemes Value seeking: Evaluate total value of investment, not just price Social: Information sharing with strong peer effect.
A rural marketing strategy refers to the planning of adequate supply of consumer goods and agricultural input to the villages at an affordable price to fulfil the needs of the consumers residing in these rural areas. Rural markets have a high potential and can generate huge sales volume for the companies which manufacture cost-efficient products and have active supply chain management.
For example:In rural markets, most of the selling products belong to spurious brands. These with a name similar to those of well-known brands have penetrated the Indian rural markets due to the product’s look-alike feature (copy of branded products) and cheap prices. Brands like GlaxoSmithKline (GSK), a UK based multinational FMCG launched a product, Asha-milk food drink for rural consumers. The product was 40% cheaper than the outcomes of well-known brands like Horlicks. It gained popularity due to its excellent pricing strategy.
The Rural Marketing is based on 4As: Affordability,Availability,Assessibilty and Awareness. Following are some of the factors which are taken into consideration while framing the product Strategies: 1.Product launch 2.New product design 3.Brand Name 4.Small unit Low price Packaging
The rural markets function diversely from the urban markets. Therefore, marketers need to customize a whole set of different strategies to penetrate the rural market. Rural consumers are slowly upgrading to technology with the help of smartphones and computers. The companies must make use of simple and easy to access technological means to create awareness about the products in rural areas.
Therefore Business in India are more confident than ever about the growth of the country's Rural Consumer Markets.
Name: Shweta Janagekar USN: GIT20MBA110 Roll No: 99 Div :B
Businesses in India are more confident than ever about the growth of the country's rural consumer markets. Rural consumers are particularly aspirational, striving to purshase branded, high quality products. The expectations of today's rural Indian consumers differ markedly from those of previous generations. They are moving away from purely economic concepts of value driven by low prices, towards a broader nation of value that combines price with the utility, and the anesthetics and features of products and services has changed the way India rural consumers buy. India's rural consumers are changing fast. Because new attitudes, priorities and behaviors are reshaping the purchase decisions of India's rural consumers. These consumers are becoming far more aspirational, and networked and discerning. Our latest research challenges many traditional assumptions about how rural consumers make their purchases, and demonstrates how a few companies have managed to understand the changing rural consumers behavior. The rural consumers in India are waiting to be served in new ways, and with new offerings. They have already stated deciding with brands they will pledge their loyalty to. The companies must augment thier physical reach by understanding the minds of these customers what they really want and why. As incomes of India's rural consumers rise, they want to provide their children with a better future through education and Healthcare. In addition their shopping basket has begun resembling that of their urban counterparts and includes products from categories they have not purchased from in the past. In the process of becoming more aspirational, rural consumers in India are now: * brand savvy : willing to invest in branded products to ensure quality * trading up :want more features and better product designs to boost social image *explorers :adopt new categories, using multiple channels.
Name :sristi konnur Roll No :103 Usn:GIT20MBA065-T B Div
India is growing at an average annual rate of 7.6 for the past many years and it is expected to continue growing at an equal if not faster rate. The rapid economic growth is increasing and enhancing employment and business opportunities and in turn increasing disposable incomes. The rural consumers in India account for about 73 percent of the total consumers. In recent years, the lifestyle of a large number of rural consumers in India has changed dramatically and the process of change is going on. The buying behaviour of the rural consumers is influenced by several factors such as socio-economic conditions, cultural environment, literacy level, occupation, geographical location, efforts on the part of sellers, exposure to media etc. India is growing at an average annual rate of 7.6 for the past many years and it is expected to continue growing at an equal if not faster rate. The rapid economic growth is increasing and enhancing employment and business opportunities and in turn increasing disposable incomes. The rural consumers in India account for about 73 percent of the total consumers. In recent years, the lifestyle of a large number of rural consumers in India has changed dramatically and the process of change is going on. The buying behaviour of the rural consumers is influenced by several factors such as socio-economic conditions, cultural environment, literacy level, occupation, geographical location, efforts on the part of sellers, exposure to media etc. Several studies have shown that rural consumers are generally ignorant and they are also unorganised. Under these circumstances, the sellers or the manufacturers, exploit the consumers. Though, the consumers in India have been provided with various safety measures against their exploitation. In this paper, an attempt has been made to study the changing face of rural consumer in emerging markets.
Key Words: Globalisation, Rural Consumer, Rural Market, Rural Potential. Introduction. A report on survey conducted by National Council of Applied Economic Research (NCAER) says that there are 720 million consumers across the villages in rural India. Hence, the development of the nation largely depends upon the development of the rural population. Agriculture is the main occupation of the rural people for their subsistence. It has been observed in the report that the condition of the rural consumers is deplorable because they are being exploited in the rural markets on account of lack of competition among the sellers. Although the rural consumers face various problems like fake brands and spurious products, misleading advertisements, unfair warranties and guarantees, and unreasonable pricing but it hardly affects their passion to buying because they want to buy those products which reflect their prosperity level. Similarly, with globalization and liberalization, rural market in India expanded its potentialities across the world. Globalization describes a process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade. Globalization can be defined as the intensification of worldwide social relations which link distant locations in such a way that local happenings are shaped by events occurring many miles away and vice – versa. Globalization generally means integrating our economy with the economy of world. Globalization had its impact on various sectors including agricultural, industrial, financial, health and many others. Globalization has helped in: 0.Raising the living standards of people, 1. Alleviating of poverty, 2. Assuring food security, 3. Creating a market for expansion of industry and services, and 4. Making substantial contribution to the national economic growth Name: Prathamesh Chachadi Roll no: 72 USN: GIT20MBA043-T
Name; Omkar Ibrampurkar Div: B Roll no; 63 USN; GIT20MBA033-T
Rural sector which was once disdained by one and all due to the uncivilised and barbarian culture, amenities and demeanour has recently come into global limelight. Once ignored, it is now receiving undivided attention and strong impetus from the government, various foreign and domestic companies. Right now the urbane problems of work life balance, home cooked food and cleanliness is a major concern that needs insightful solutions to be implemented
Some marketers no longer bother to make the distinction. "There is no difference between the urban and the rural consumer," Mayank Shah, group product manager at biscuit maker Parle Products, told Livemint. Consumption patterns are broadly similar – with more premium products being sold in rural areas and only total spend being less.
Accenture's research found that 71% of rural consumers buy branded products and the factors driving purchase are weighted 66:34 in favour of brand image, functionality and aesthetics as against price.
"The next generation of the rural consumer who is coming in has a higher exposure level than the previous generation," said Arun Pal, chief operating officer for domestic appliances brand Kenstar.
He cited the example of flat-screen TVs, sales of which are now split evenly between urban and rural areas, but just two years ago these were seen as an urban product.
Accenture undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Name; Omkar Ibrampurkar Div: B Roll no; 63 USN; GIT20MBA033-T
Rural sector which was once disdained by one and all due to the uncivilised and barbarian culture, amenities and demeanour has recently come into global limelight. Once ignored, it is now receiving undivided attention and strong impetus from the government, various foreign and domestic companies. Right now the urbane problems of work life balance, home cooked food and cleanliness is a major concern that needs insightful solutions to be implemented
Some marketers no longer bother to make the distinction. "There is no difference between the urban and the rural consumer," Mayank Shah, group product manager at biscuit maker Parle Products, told Livemint. Consumption patterns are broadly similar – with more premium products being sold in rural areas and only total spend being less.
Accenture's research found that 71% of rural consumers buy branded products and the factors driving purchase are weighted 66:34 in favour of brand image, functionality and aesthetics as against price.
"The next generation of the rural consumer who is coming in has a higher exposure level than the previous generation," said Arun Pal, chief operating officer for domestic appliances brand Kenstar.
He cited the example of flat-screen TVs, sales of which are now split evenly between urban and rural areas, but just two years ago these were seen as an urban product.
Accenture undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Name; Omkar Ibrampurkar Div: B Roll no; 63 USN; GIT20MBA033-T
Rural sector which was once disdained by one and all due to the uncivilised and barbarian culture, amenities and demeanour has recently come into global limelight. Once ignored, it is now receiving undivided attention and strong impetus from the government, various foreign and domestic companies. Right now the urbane problems of work life balance, home cooked food and cleanliness is a major concern that needs insightful solutions to be implemented
Some marketers no longer bother to make the distinction. "There is no difference between the urban and the rural consumer," Mayank Shah, group product manager at biscuit maker Parle Products, told Livemint. Consumption patterns are broadly similar – with more premium products being sold in rural areas and only total spend being less.
Accenture's research found that 71% of rural consumers buy branded products and the factors driving purchase are weighted 66:34 in favour of brand image, functionality and aesthetics as against price.
"The next generation of the rural consumer who is coming in has a higher exposure level than the previous generation," said Arun Pal, chief operating officer for domestic appliances brand Kenstar.
He cited the example of flat-screen TVs, sales of which are now split evenly between urban and rural areas, but just two years ago these were seen as an urban product.
Accenture undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Name:Maruti Budale Roll no:55 Div:A USN:GIT20MBA042-T
CONSUMER ASPIRATIONS ARE CHANGING IN RURAL MARKET OF INDIA
India is on the march. Its momentum is not only evident in metros—it is apparent in small towns and villages as well. Collectively, all over India’s rural heartland and in its teeming cities, India is readying for an even more impressive era of economic growth. There is no question that India’s rural markets are becoming a powerful economic engine. One telltale sign: rural accounts now comprise over 50 percent of new subscribers for some of the leading telecom providers. The rural multiplier effect is what excites policy makers and business leaders alike. For every new opportunity for a villager to use his mobile phone to protect his crops, there is a knock-on opportunity for him to purchase a small refrigerator or a motorcycle. There is a growing realization that global investment and growth will increasingly come from rural populations, as their savings translate into consumption. But rural India’s contributions to the nation’s economic success and the obvious potential for profitable growth is just a part of the promise of wholehearted commitment to doing business beyond the city centres and suburbs. India’s rural markets offer unprecedented opportunities for global and local companies to experiment with approaches and business models, which if successful, may be replicated in rural markets of other emerging economies.
Rural Consumer Segments Increased incomes, growing awareness and rising individual aspirations are creating distinct consumer segments in India's hinterlands. Drawing on granular analysis of responses to our survey, we have defined four broad rural Indian consumer segments: 1. Traditionalist 2. Steady Climbers 3. Young enthusiast 4. Village Elites 1. Traditionalist Traditionalist are the conservative rural consumers that rely on conventional channels to make their purchase. Necessity drives mostof their purchase decision and they typically purchase the cheapest offerings available. 2. Steady Climbers Aspire for a more comfortable lifestyle. They want to enhance their social standing among their peers and strive to do so by buying branded products and offerings. 3. Young Enthusiast Rural consumers aged 18-28, make extensive use of digital technology and buy branded products to enhance their social image. They powerfully influence the decision of other consumer segments. 4. Village Elites Village elites are the progressive rural consumers, boasting high education and awareness level. They desire the best in product quality, features and aesthetics. eed Recognition
Conclusion
Now it is clear that India lives in villages and Government is developing the life of villagers to make them more and more luxurious. Some highlights – 1. The development is not only evident in metros—it is apparent in small towns and villages as well. 2. There is no question that India’s rural markets are becoming a powerful economic engine. 3. For every new opportunity for a villager to use his mobile phone to protect his crops, there is a knock-on opportunity for him to purchase a small refrigerator or a motorcycle. 4. Consumption patterns in these areas are also gradually beginning to mirror those of their urban counterparts. 5. Owing to this changing trend as well as the size of the market, rural India provides a tremendous investment opportunity for private companies.
Name: Abhishek singh rajpurohit Roll No: 02 USN: GIT20MBA004-T Div: "A"
Now-a-days, every company is excited about the potential of rural India and trying to get a grip on the rural market because the urban market is showing the sign of saturation. But the challenges are many: how to make the product affordable, how to penetrate villages with small population, connectivity, communication, language barrier, overcoming spurious brands etc. The reasons for companies going rural are manifold. Increasing rural incomes driven by agricultural growth, increasing enrolment in primary schools, high penetration of TV and other mass media which has increased the propensity to consume branded and value added products in rural areas. As per a study conducted by the Market information Survey of Households (MISH) and NCAER – rural India is quietly transforming and growing and becoming different. Today the rural market offers a vast untapped potential. According to a McKinsey survey conducted in 2007, rural India would become bigger than the total consumer market of many countries such as South Korea or Canada in another 20 years.
Marketers and manufacturers are becoming aware of the increasing purchasing powers, vast size and demand base of the once neglected Indian hinterland. They are now making efforts to understand the attitude of rural consumer. While entering the rural market companies are also resorting to CSR- Corporate Social Responsibility activities, thus helping the poor not only to augment their income but promote their products also. For example, Hindustan Uniliver’s Project Shakti not only brings revenues to the company but also assist poor rural women to become income earners by selling the company’s product in the rural markets. It provides entrepreneurial opportunity and thus improves the living standard of rural women. It is a win-win situation for the company as well as for the consumers. Some major companies that have focused in Indian rural sector so far are Asian Paints, P&G, and Bajaj Auto, LG electronics, Coca Cola, Hindustan Unilever, Britannia, Philips, Colgate, ITC and LIC. We are still to understand the rural consumer, his attitudes, and his habits, particularly from the marketing point of view. Following points explain the reasons why companies are going rural i.e. what attracts them:
Name: Abhishek singh rajpurohit Roll No: 02 USN: GIT20MBA004-T Div: "A"
Now-a-days, every company is excited about the potential of rural India and trying to get a grip on the rural market because the urban market is showing the sign of saturation. But the challenges are many: how to make the product affordable, how to penetrate villages with small population, connectivity, communication, language barrier, overcoming spurious brands etc. The reasons for companies going rural are manifold. Increasing rural incomes driven by agricultural growth, increasing enrolment in primary schools, high penetration of TV and other mass media which has increased the propensity to consume branded and value added products in rural areas. As per a study conducted by the Market information Survey of Households (MISH) and NCAER – rural India is quietly transforming and growing and becoming different. Today the rural market offers a vast untapped potential. According to a McKinsey survey conducted in 2007, rural India would become bigger than the total consumer market of many countries such as South Korea or Canada in another 20 years.
Marketers and manufacturers are becoming aware of the increasing purchasing powers, vast size and demand base of the once neglected Indian hinterland. They are now making efforts to understand the attitude of rural consumer. While entering the rural market companies are also resorting to CSR- Corporate Social Responsibility activities, thus helping the poor not only to augment their income but promote their products also. For example, Hindustan Uniliver’s Project Shakti not only brings revenues to the company but also assist poor rural women to become income earners by selling the company’s product in the rural markets. It provides entrepreneurial opportunity and thus improves the living standard of rural women. It is a win-win situation for the company as well as for the consumers. Some major companies that have focused in Indian rural sector so far are Asian Paints, P&G, and Bajaj Auto, LG electronics, Coca Cola, Hindustan Unilever, Britannia, Philips, Colgate, ITC and LIC. We are still to understand the rural consumer, his attitudes, and his habits, particularly from the marketing point of view. Following points explain the reasons why companies are going rural i.e. what attracts them:
you don’t understand what your potential buyers/users are expecting from Brands and not only from products or services of these Brands, you risk to be out of their conversation and buying list. Why? Because they buy for consuming AND realizing their utopia. If you match only their product needs but miss their utopia you won’t probably be the chosen brand. And by the way, realizing utopia has a value (see my post on economic value). While the Job To Be Done is helping you to understand the problem people are trying to solve when buying your product/services, the Aspirations will help you to understand their utopia they would like to realize through their consumptions. Some scholars are considering that Job To Be Done could be used for both, I personally prefer to split it and use Job To Be Done only for their personal problems they are trying to solve. Great brands fire people’s hopes and ambitions. Aspirations — people’s hopes and ambitions — fuel choices. For marketers and brand builders, being tuned into people’s aspirations matters. Because brands that are aspirational win loyalty, premium and appeal. Brand owners and shapers strive to make their brands more aspirational. However, few brands are so in the minds of the consumers. This quality of ‘being looked up to’, aspired for, has become all the more vital, given the near parity of products and services and the domination of many categories by two-three big. Great brands fire people’s hopes and ambitions. Aspirations — people’s hopes and ambitions — fuel choices. For marketers and brand builders, being tuned into people’s aspirations matters. Because brands that are aspirational win loyalty, premium and appeal. Brand owners and shapers strive to make their brands more aspirational. However, few brands are so in the minds of the consumers. This quality of ‘being looked up to’, aspired for, has become all the more vital, given the near parity of products and services and the domination of many categories by two-three big brands. What do consumers aspire for and what makes a brand aspirational? There has been a big shift towards aspiration in society. The media coined the phrase “the politics of aspiration” to describe this shift. There has been frequent references to the confluence of three key factors — surge in disposable income, easy access to credit and exposure to media — that have affected people’s choices and mindset. Indians are now more aspirational and less fatalistic.
To understand what consumers aspire to, we adopted a unique approach of listening in. Our sample size was over 5,000 men and women in the age group of 25-35 years. Rather than using the usual research method of asking special questions of them, we were just listening in on their normal conversations. The discussions and questions were not moderated. The participants interacted in a natural
Great brands fire people’s hopes and ambitions. Aspirations — people’s hopes and ambitions — fuel choices. For marketers and brand builders, being tuned into people’s aspirations matters. Because brands that are aspirational win loyalty, premium and appeal. Brand owners and shapers strive to make their brands more aspirational. However, few brands are so in the minds of the consumers. This quality of ‘being looked up to’, aspired for, has become all the more vital, given the near parity of products and services and the domination of many categories by two-three big brands. . Name: shraddha jayavant patil. Div:B Roll no:64 USN no: GIT20MBA123-T
Rural markets now are attracting large number of firms and businesses.slowly rural markets are changing in India.the consumer of rural India are connected through technology.rural consumers are mostly dependent on agriculture and were not very literate about product and services available in the market till some time back.this scenario is slowly changing due to an increase in income and literacy.long ago,rural consumers went to anearby city to buy branded products and services.only selected households used branded products be it tea or jeans.earlier, big companies flocked to rural market to establish their brands. Rural market these days are very critical for every marketer and company.may be it for a branded shampoo or a television. Earlier marketers thought of van campaigns,cina commercials,and a few wall paintings to entice rural masses under their folds. Today a customer in rural market is quite literate about branded products that are an offer in market place thanks to television and telecommunicationn media. Many companies are entering into rural markets and educating rural population on newer products.their features and services and also about their maximise utilisation.the rural youth today are playing a far more significant role in influencing the purchase decisions. They frequently travel out of village and are drivers of purchase decisions regarding radios,televisions,phones, Automobile and other goods.they may not be end users but often these are people who influence purchase decision of high value products and they also decide on which brand to choose The consumption level of consumer durables in rural sector has risen dramatically over the last two decades.the biggest challenge faced by marketers today is to develop a model to influence the rural customers mind over a large period of time and keep it going.the marketers who really need to understand rural markets and marketing agencies can make a difference and develop a communication model. The most important element is to understand rural customer and deliver appropriate suitable products to rural people. There is minimum brand loyalty in rural consumers.this is mainly due to higher problem of brand recognition.the challenge is to create communication that would help rural consumers in recognising brands, logos,visual,colour Combination,etc.so that he or she actually buys actual brand and not something else
Rural markets now are attracting large number of firms and businesses.slowly rural markets are changing in India.the consumer of rural India are connected through technology.rural consumers are mostly dependent on agriculture and were not very literate about product and services available in the market till some time back.this scenario is slowly changing due to an increase in income and literacy.long ago,rural consumers went to anearby city to buy branded products and services.only selected households used branded products be it tea or jeans.earlier, big companies flocked to rural market to establish their brands. Rural market these days are very critical for every marketer and company.may be it for a branded shampoo or a television. Earlier marketers thought of van campaigns,cina commercials,and a few wall paintings to entice rural masses under their folds. Today a customer in rural market is quite literate about branded products that are an offer in market place thanks to television and telecommunicationn media. Many companies are entering into rural markets and educating rural population on newer products.their features and services and also about their maximise utilisation.the rural youth today are playing a far more significant role in influencing the purchase decisions. They frequently travel out of village and are drivers of purchase decisions regarding radios,televisions,phones, Automobile and other goods.they may not be end users but often these are people who influence purchase decision of high value products and they also decide on which brand to choose The consumption level of consumer durables in rural sector has risen dramatically over the last two decades.the biggest challenge faced by marketers today is to develop a model to influence the rural customers mind over a large period of time and keep it going.the marketers who really need to understand rural markets and marketing agencies can make a difference and develop a communication model. The most important element is to understand rural customer and deliver appropriate suitable products to rural people. There is minimum brand loyalty in rural consumers.this is mainly due to higher problem of brand recognition.the challenge is to create communication that would help rural consumers in recognising brands, logos,visual,colour Combination,etc.so that he or she actually buys actual brand and not something else
The book is all about the growing power of consumers in rural markets in developing countries in Asia and Africa. It examines the forces that are adding to rural prosperity, including the billions of dollars in remittances. And the young man waiting on Mahajan in the coffee lounge of a prominent New Delhi hotel becomes an instant case study. He comes from a village in Uttarakhand and landed in Delhi looking for work. His father tends to his farms back home. But the young man who is being quizzed says he sends money to his parents. And the money is transferred online. “That’s a live example of remittance going back to the village and adding to the rise in rural consumption," says Mahajan as he concludes his conversation with the waiter. About 48% of the world’s population lives outside urban areas and nine of every 10 of those people, or about 3 billion, live in rural Africa or Asia, he says. “Companies that discount these consumers essentially cut their global marketplace in half. The bigger opportunity lies in the up-and-coming rural populations of emerging economies, particularly in Asia and Africa," he adds.
For the book, he focused on 10 countries with the largest rural populations, seven of them in Asia and three in Africa. The rural top 10 include India, China, Indonesia, Pakistan, Bangladesh, Nigeria, Ethiopia, Vietnam, Egypt and the Philippines. Mahajan says he focused on these because collectively they total nearly 2.2 billion people or two-thirds of the entire world’s rural population. “They represent a massive market opportunity for the progressive consumer companies. These economies have increasing spending power," he says.
Between 2013 and 2015, Mahajan travelled to each of the rural top 10 countries, as well as to Thailand, Myanmar and Bhutan. In these countries, he discovered an increasingly affluent consumer base “whose needs were the same as any consumer I have seen anywhere around the world". So, a big takeaway from his travel around the world is that consumer aspirations are the same everywhere. There is no difference between the aspirations of the urban and rural consumers and the aspirations of rural consumers in different parts of the world, says the professor.
“From a marketing point of view, there are people who are poor, people who are rich and people who are in between. But their aspirations don’t change. After travelling to 60-70 countries, I can say that mothers everywhere are the same. They want to give their children better than what they have and they want them to achieve what they have not achieved. That’s why aspirations are universal,
The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12.
There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy. First, rural consumers are more aspirational. Research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. About 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families. Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics. While the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty.
Nabeel Sajid Jamkhandi Roll Number 59 MBA A Division USN= GIT20MBA039-T
Consider the businesses running I did a survey and found this following data
This edition of WARC’s Spotlight series puts the practice of rural marketing in focus. As brands look ahead to a less than positive economic climate in 2020, the preferences and priorities of rural India will become a critical foundation for marketers across industries currently rethinking their engagement playbook.
Any brand strategy to capture the hearts and wallets of a market like India cannot be done without knowing the proverbial ‘soul’ of India. Our expert contributors offer much food for thought in how brands need to re-adapt and re-engage. Amit Tiwari, vice president of marketing at Havells India, lifts the curtain on the changes taking place in small-town and rural India via a recent ethnographic study conducted by the agency.
This edition of WARC’s Spotlight series puts the practice of rural marketing in focus. As brands look ahead to a less than positive economic climate in 2020, the preferences and priorities of rural India will become a critical foundation for marketers across industries currently rethinking their engagement playbook.
To talk about India without notice of the country's natural organizations would be carelessness for any brand searching for essential market transcendence or appeal.
It is a social event that addresses 12.2% of the all out people and is responsible for about portion of the country's GDP. Rural zones, according to Nielsen, is creating at around 1.5 events the speed of metropolitan areas, with the present USD$12 billion buyer items market in country India expected to hit USD$100 billion by 2025.
Noticeable metro place focuses, for instance, New Delhi, Mumbai, Chennai, Bangalore and Hyderabad have intermittently been advanced as ideal portrayals of India's quick stroll towards a high level and hyper-related economy.
However, past these metropolitan place focuses lies the rest of India – an emerging rush of purchasers, business visionaries and families whose lives have been forever changed by progress, development and the ceaseless stroll of overall exchange.
This arrival of WARC's Spotlight plan puts the demonstration of nation promoting in focus. As brands anticipate a not actually certain monetary climate in 2020, the tendencies and requirements of provincial India will transform into an essential foundation for publicists across adventures at present rethinking their responsibility playbook.
Any brand system to get the hearts and wallets of a market like India is unthinkable without knowing the popular 'soul' of India. Our lord benefactors offer a ton of something to consider in how brands need to re-change and reconnect.
Amit Tiwari, VP of displaying at Havells India, starts the movements happening around there and country India through another ethnographic assessment drove by the workplace.
"The certified potential that India holds can't be assessed absolutely without understanding the purchasers of unassuming local area and nation India, the environment where they exist, their social surface and their association with retail," he battles. "Do whatever it takes not to be stunned if you track down the modest local area or provincial Indian client more brand aware and unwavering then their metropolitan accomplices."
"The potential is huge, anyway the challenges for farmers and brands fast to target country networks are many," he creates. "The modernized change happening across common India holds some assurance, and everything starts with adaptable."
Nation advancing veteran Sandip Bansal, as of now supervisor client and field official at Dialog Factory for GroupM Media India points out that one ought to see that the spread-out rural India has express scattering needs.
A mix of instruction, objective, and extravagance further intensified by advancement driven permission is changing the genuine thought of the common client. The couple acknowledges that the since quite a while past held adages of publicizing to common organizations in the nation as of now don't hold impact and have lived well past their expiry dates.
"It's an ideal chance to put our suppositions about these business areas under the scanner," they fight. "The opportunity has arrived to leave them and interface even more sumptuously with the emerging common Indian purchaser."
Country India has changed and continues developing. Sponsors need to get reacquainted and rename the relationship or peril leaving behind what could be the best purchaser tsunami since, in light of everything, China. Nama:sana kadolkar Roll no.87 Div B
Rural markets have become integral part of global market. The rural markets are growing at above two times faster pace than urban markets. the buying prefrence of the rural people are changing fast as several factors like Economic, Physiological Technological, the rural market is changing very rapidly because very are well educated the market are better connected with roads Better transport number of bus and rail have increased. Nowadays rural people are also using branded products and also much of the brands are available in rural market in india rural consumers are better connected in both physical nd digital sense tjere has been increase in media penetration has played a vital role in rural market that the rural consumers are fuelled by a deep desire to provide their children a better future through education and health care about 40% of the survey respondents claimed they plan more to spend on education of their children and health care of the family the next generation of the rural consumers who is coming it has a higher exposure level then precious generation, brand need to extend not just their physical reach. But their mental reach aswell. Rural consumers aged of 20-28 make use of digital technology and buy branded products to enhance their social image. So companies need to develop product a d service that address the unique need of the consumer to win loyalty and brand value of the product...
Name - Swastik .K. Rajput Roll no- 112 Div-B USN-GIT20MBA071-T
Rural markets have become integral part of global market. The rural markets are growing at above two times faster pace than urban markets. the buying prefrence of the rural people are changing fast as several factors like Economic, Physiological Technological, the rural market is changing very rapidly because very are well educated the market are better connected with roads Better transport number of bus and rail have increased. Nowadays rural people are also using branded products and also much of the brands are available in rural market in india rural consumers are better connected in both physical nd digital sense tjere has been increase in media penetration has played a vital role in rural market that the rural consumers are fuelled by a deep desire to provide their children a better future through education and health care about 40% of the survey respondents claimed they plan more to spend on education of their children and health care of the family the next generation of the rural consumers who is coming it has a higher exposure level then precious generation, brand need to extend not just their physical reach. But their mental reach aswell. Rural consumers aged of 20-28 make use of digital technology and buy branded products to enhance their social image. So companies need to develop product a d service that address the unique need of the consumer to win loyalty and brand value of the product...
Name - Swastik .K. Rajput Roll no- 112 Div-B USN-GIT20MBA071-T
The game of marketing is all about a war between the heart and mind. The crux of this amusement is the pocket share. The complexity in this multi-faceted world is constantly increasing. The opportunities exist in resolving confusions and facilitating decision-making amongst the copious brands that exist and throng the marketplace. The changes that are constant are paradoxical at times. The scope of development had been pioneered and sustained by the FMCG companies like HUL, Colgate-Palmolive, Philips, et al. With the execution of their developmental approach, the rural markets had been well nurtured by the agri-input marketers and government agencies. Although rural marketing is a tough cookie to crack, the opportunities and potential for growth is immense. Hence, with a mind to look at the positive side of things, we must remember what all we need to do, in order to work the rural market in just the right way. It is a group that accounts for 12.2% of the world’s population and is responsible for about 50% of the country’s GDP. Rural areas, according to Nielsen, is growing at around 1.5 times the rate of urban areas, with today’s USD$12 billion consumer goods market in rural India expected to hit USD$100 billion by 2025. Why is rural such a discounted reality? Why is it that even before we pry we decide not to try? Just the definition of rural, up until now has been enough to drive us away from Rural India. More and more people have migrated from rural to urban. As the years went by, urban has now become completely saturated and simply has no scope left. You can’t expect to sell a smartphone in a city like Delhi, until and unless your product really has something special and unique to offer. Brands who are not innovators, but mere imitators won’t get very far in such a market Name- Hrishikesh Nilajkar Roll No.- 39 DIV- A USN - GIT20MBA120-T
buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12. There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
This was a great read and reminder to prepare ourselves for the coming year! And after all the crazy we went through in 2020, it's important to remember your tips above, especially making specific and measurable goals. Too often, vague goals are set, with no real means to measure progress towards them, and they end up discarded and forgotten by spring. Pi Network Review Setting specific and measurable ones can hopefully keep us engaged on our progress throughout the year
116 comments:
Assignment no 2
To talk about India without mention of the country’s rural communities would be folly for any brand seeking main market dominance or appeal.
It is a group that accounts for 12.2% of the world’s population and is responsible for about 50% of the country’s GDP. Rural areas, according to Nielsen, is growing at around 1.5 times the rate of urban areas, with today’s USD$12 billion consumer goods market in rural India expected to hit USD$100 billion by 2025.
High-profile metro hubs such as New Delhi, Mumbai, Chennai, Bangalore and Hyderabad have oftentimes been touted as prime examples of India’s rapid march towards a digital and hyper-connected economy.
But beyond these urban hubs lies the rest of India – an emerging wave of consumers, entrepreneurs and families whose lives have been irrevocably changed by development, technology and the unceasing march of global commerce.
This edition of WARC’s Spotlight series puts the practice of rural marketing in focus. As brands look ahead to a less than positive economic climate in 2020, the preferences and priorities of rural India will become a critical foundation for marketers across industries currently rethinking their engagement playbook.
Any brand strategy to capture the hearts and wallets of a market like India cannot be done without knowing the proverbial ‘soul’ of India. Our expert contributors offer much food for thought in how brands need to re-adapt and re-engage.
Amit Tiwari, vice president of marketing at Havells India, lifts the curtain on the changes taking place in small-town and rural India via a recent ethnographic study conducted by the agency.
“The true potential that India holds cannot be measured accurately without understanding the consumers of small-town and rural India, the environment in which they exist, their social fabric and their interaction with retail,” he argues. “Don’t be surprised if you find the small town or rural Indian consumer more brand conscious and loyal then their urban counterparts.”
Amandeep Singh of VMLY&R India speaks from deep personal experience in his piece, zeroing in on the nation’s farming communities. India may have come a long way since the Green Revolution when farm mechanisation was introduced, however, the situation for farmers has not, and remains a serious issue.
“The potential is massive, but the challenges for farmers and brands keen to target rural communities are many,” he writes. “The digital transformation taking place across rural India does hold some promise, and it all starts with mobile.”
Rural marketing veteran Sandip Bansal, currently chief client & field officer at Dialogue Factory for GroupM Media India points out that one must recognize that the spread-out rural India has specific distribution needs.
“The standard distribution approaches, if forced-fitted, do not work. Till one has an inclusive approach, it will never be able to deliver and will render most sound strategies futile,” he writes. “If we must win in rural India, we need to break it down to smaller geographies and not [only] the regions.”
Meanwhile, Bianca Joseph and Krishnan Subramanian of TBWA India advocate a more radical reset of the way things are done, especially with rural markets developing at twice the rate of urban Indian markets.
A combination of literacy, aspiration, and affluence further magnified by technology-driven access is changing the very nature of the rural consumer. The duo believes that the long-held maxims of marketing to rural communities in the country no longer hold sway and have lived well past their expiry dates.
“It's time to put our preconceived notions about these markets under the scanner,” they argue. “It is time to retire them and connect more richly with the emerging rural Indian consumer.”
Rural India has changed and continues to change. Marketers need to get reacquainted and redefine the relationship or risk missing out on what could be the biggest consumer tsunami since, well, China.
Name:Ashwini Rajeev Bajagoli
USN:GIT20MBA080-T
Roll no:21
Division:A
The buying preferences of India’s rural consumers are changing fast and several factors – economic, psychological, and technological – are coalescing to fuel this transformation. Rural consumers’ income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12.
There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India’s values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
Here I would like to mention the research conducted by accenture company.
Accenture undertook a research to understand how Indian rural consumers’ behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Their study identified three broad dimensions characterising behaviour change emerging among India’s rural consumers:
First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today’s rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture’s report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.
Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India’s hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.
Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don’t fall for such tactics.
Name: shreya j Naik
USN: GIT20MBA073-T
R.no: 94 (B division)
MUMBAI: From biscuits to televisions, the expectations of India's rural consumers are changing and price is taking a back seat to brand image and aesthetics a report has said.
Consulting firm Accenture Strategy India highlighted the shift in perspective, driven by the penetration of media and telecoms services, in the latest of its Masters of Rural Markets series, for which it carried out focus group discussions with rural consumers in ten Indian states and surveyed 2,800 rural respondents in eight states, as well as interviewing executives and business leaders.
"Rural consumers are changing in three fundamental ways," the report said. "They are far more aspirational, networked and discerning."
Some marketers no longer bother to make the distinction. "There is no difference between the urban and the rural consumer," Mayank Shah, group product manager at biscuit maker Parle Products, told Livemint. Consumption patterns are broadly similar – with more premium products being sold in rural areas and only total spend being less.
Accenture's research found that 71% of rural consumers buy branded products and the factors driving purchase are weighted 66:34 in favour of brand image, functionality and aesthetics as against price.
"The next generation of the rural consumer who is coming in has a higher exposure level than the previous generation," said Arun Pal, chief operating officer for domestic appliances brand Kenstar.
He cited the example of flat-screen TVs, sales of which are now split evenly between urban and rural areas, but just two years ago these were seen as an urban product.
This underlines another of the report's findings – that four in ten rural consumers are spending more in order to upgrade. In doing so, they are "defying conventional wisdom which says that rural consumers care most about getting the lowest possible price and will settle for sub-standard offerings to get the best deal," the report said.
While the old fashioned image of the rural consumer continued in one of four segments identified by the report – the traditionalist – the others – including steady climbers, young enthusiasts and village elites – were much more brand aware.
Brands need to extend not just their physical reach but their "mental reach" in order to grasp the opportunities offered by these new consumers, the report said.
Warc's recent series on Indian youth made a similar point, when Narayan Devanathan of Dentsu India Group argued that the urban-rural divide was a myth and that the real split was between traditional and progressive mindsets.
Name: manjunath I shinganalli
USN: GIT20MBA075-T
Roll no: 53 (A division)
The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12.
There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
Accenture undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Our study identifies three broad dimensions characterising behaviour change emerging among India's rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.
Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.
Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics.
Name: Manjula
USN: GIT20MBA001-T
Roll no: 52(A div)
The buying preferences of India’s rural consumers are changing fast and several factors – economic, psychological, and technological – are coalescing to fuel this transformation. Rural consumers’ income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12.
There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India’s values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
Here I would like to mention the research conducted by accenture company.
Accenture undertook a research to understand how Indian rural consumers’ behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Their study identified three broad dimensions characterising behaviour change emerging among India’s rural consumers:
First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today’s rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture’s report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.
Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India’s hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.
Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don’t fall for such tactics.
While the rural consumers’ needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts.
Name : Dipali Jadhav
USN. : GIT20MBA011-T
Roll no: 42
To talk about India without mention of the country’s rural communities would be folly for any brand seeking main market dominance or appeal.
It is a group that accounts for 12.2% of the world’s population and is responsible for about 50% of the country’s GDP. Rural areas, according to Nielsen, is growing at around 1.5 times the rate of urban areas, with today’s USD$12 billion consumer goods market in rural India expected to hit USD$100 billion by 2025.
High-profile metro hubs such as New Delhi, Mumbai, Chennai, Bangalore and Hyderabad have oftentimes been touted as prime examples of India’s rapid march towards a digital and hyper-connected economy.
But beyond these urban hubs lies the rest of India – an emerging wave of consumers, entrepreneurs and families whose lives have been irrevocably changed by development, technology and the unceasing march of global commerce.
This edition of WARC’s Spotlight series puts the practice of rural marketing in focus. As brands look ahead to a less than positive economic climate in 2020, the preferences and priorities of rural India will become a critical foundation for marketers across industries currently rethinking their engagement playbook.
Any brand strategy to capture the hearts and wallets of a market like India cannot be done without knowing the proverbial ‘soul’ of India. Our expert contributors offer much food for thought in how brands need to re-adapt and re-engage.
Amit Tiwari, vice president of marketing at Havells India, lifts the curtain on the changes taking place in small-town and rural India via a recent ethnographic study conducted by the agency.
“The true potential that India holds cannot be measured accurately without understanding the consumers of small-town and rural India, the environment in which they exist, their social fabric and their interaction with retail,” he argues. “Don’t be surprised if you find the small town or rural Indian consumer more brand conscious and loyal then their urban counterparts.”
Amandeep Singh of VMLY&R India speaks from deep personal experience in his piece, zeroing in on the nation’s farming communities. India may have come a long way since the Green Revolution when farm mechanisation was introduced, however, the situation for farmers has not, and remains a serious issue.
“The potential is massive, but the challenges for farmers and brands keen to target rural communities are many,” he writes. “The digital transformation taking place across rural India does hold some promise, and it all starts with mobile.”
Rural marketing veteran Sandip Bansal, currently chief client & field officer at Dialogue Factory for GroupM Media India points out that one must recognize that the spread-out rural India has specific distribution needs.
“The standard distribution approaches, if forced-fitted, do not work. Till one has an inclusive approach, it will never be able to deliver and will render most sound strategies futile,” he writes. “If we must win in rural India, we need to break it down to smaller geographies and not [only] the regions.”
Meanwhile, Bianca Joseph and Krishnan Subramanian of TBWA India advocate a more radical reset of the way things are done, especially with rural markets developing at twice the rate of urban Indian markets.
A combination of literacy, aspiration, and affluence further magnified by technology-driven access is changing the very nature of the rural consumer. The duo believes that the long-held maxims of marketing to rural communities in the country no longer hold sway and have lived well past their expiry dates.
“It's time to put our preconceived notions about these markets under the scanner,” they argue. “It is time to retire them and connect more richly with the emerging rural Indian consumer.”
Rural India has changed and continues to change. Marketers need to get reacquainted and redefine the relationship or risk missing out on what could be the biggest consumer tsunami since, well, China.
Name:Ishwar loni
USN : GIT20MBA115-T
Roll no:41
Rural sector which was once disdained by one and all due to the uncivilized and barbarian culture, amenities and demeanor has recently come into global limelight. It is consistently showing promising signs of shining in the near future. Once ignored, it is now receiving undivided attention and strong impetus from the government, various foreign and domestic companies. Right now, the urbane problem of work-life balance, home cooked food and cleanliness is a major concern that needs insightful solutions to be implemented. Foreign Brands like Maggi, Dairy-milk, Sunsilk, Fair-and-Lovely, etc. are coming to the rescue.
The game of marketing is all about a war between the heart and mind. The crux of this amusement is the pocket share. The complexity in this multi-faceted world is constantly increasing. The opportunities exist in resolving confusions and facilitating decision-making amongst the copious brands that exist and throng the marketplace. The changes that are constant are paradoxical at times. The scope of development had been pioneered and sustained by the FMCG companies like HUL, Colgate-Palmolive, Philips, et al. With the execution of their developmental approach, the rural markets had been well nurtured by the agri-input marketers and government agencies.
The rural prosperity is the opportunity and an ethical onus for global marketers. The proposition is, Rural India as a growth driver for the future rather than Rural India as an attractive market today’. The proposition also is, ‘India as a separate unit for strategy development’ in lieu of ‘India as an extension market for global strategy deployment’. In conclusion, the objective is to leverage global competencies and knowledge of the company to create a winning ‘Made for India Global Strategy’ rather than leveraging a global strategy to create a new market. Rural markets will be playing a major role in company balance sheets whether in form of creditors or debtors to the company funds. Although rural India is filled with opportunities, tapping them is not an easy mission.
There are various hurdles in the way of any corporate house that intends to bring its business into rural India. Much of the rural India remains a mystery. Communication is still an active trial with encountering about thirteen major languages and thirteen hundred dialects. Diversity in tradition and cultures surmount. Poor reach of mass media and shallow understanding of rural consumers is a challenge to be encountered.
Although rural marketing is a tough cookie to crack, the opportunities and potential for growth is immense. Hence, with a mind to look at the positive side of things, we must remember what all we need to do, in order to work the rural market in just the right way.
Why is rural such a discounted reality? Why is it that even before we pry we decide not to try? Just the definition of rural, up until now has been enough to drive us away from Rural India. More and more people have migrated from rural to urban. As the years went by, urban has now become completely saturated and simply has no scope left. You can’t expect to sell a smartphone in a city like Delhi, until and unless your product really has something special and unique to offer. Brands who are not innovators, but mere imitators won’t get very far in such a market.
Rural India represents a raw diamond that is simply in the need of a good, thorough clean. With some efforts from the government, along with various companies interested in tapping rural, this region can be a complete hit on all fronts. Up until now, it has not been deemed fit by companies, due to a very archaic view of rural, but now; various parties across the globe are realizing the potential of rural India. The rural consumer is also changing. It is now gradually getting over its apprehensions about “city brands”.
Name: Bhavishkumar S Sunagar
USN : GIT20MBA092-T
Division: A
Roll No: 27
The buying preferences of India’s rural consumers are changing fast and several factors – economic, psychological, and technological – are coalescing to fuel this transformation. Rural consumers’ income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12.
There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India’s values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
Here I would like to mention the research conducted by accenture company.
Accenture undertook a research to understand how Indian rural consumers’ behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Their study identified three broad dimensions characterising behaviour change emerging among India’s rural consumers:
First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today’s rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture’s report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.
Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India’s hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.
Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don’t fall for such tactics.
While the rural consumers’ needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts.
Name:Keerti Desai
USN :GIT20MBA126-T
Roll no:45
The buying preferences of India’s rural consumers are changing fast and several factors – economic, psychological, and technological – are coalescing to fuel this transformation. Rural consumers’ income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12.
There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India’s values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
Here I would like to mention the research conducted by accenture company.
Accenture undertook a research to understand how Indian rural consumers’ behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Their study identified three broad dimensions characterising behaviour change emerging among India’s rural consumers:
First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today’s rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture’s report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.
Second, rural consumers are better networked. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.
Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don’t fall for such tactics.
While the rural consumers’ needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty.
Name: Aishwarya S Rugi
USN:GIT20MBA103-T
Roll no:07
Div:A
India is on the march. Its momentum is not only evident in metros—it is
apparent in small towns and villages as well. Collectively, all over
India’s rural heartland and in its teeming cities, India is readying for an
even more impressive era of economic growth.
There is no question that India’s rural markets are becoming a powerful
economic engine. One telltale sign: rural accounts now comprise over
50 percent of new subscribers for some of the leading telecom providers.
The rural multiplier effect is what excites policy makers and business
leaders alike. For every new opportunity for a villager to use his mobile
phone to protect his crops, there is a knock-on opportunity for him to
purchase a small refrigerator or a motorcycle. There is a growing
realization that global investment and growth will increasingly come
from rural populations, as their savings translate into consumption.
But rural India’s contributions to the nation’s economic success and the
obvious potential for profitable growth is just a part of the promise of
wholehearted commitment to doing business beyond the city centres and
suburbs. India’s rural markets offer unprecedented opportunities for
global and local companies to experiment with approaches and business
models, which if successful, may be replicated in rural markets of other
emerging economies.
The paper offers a framework that highlights the characteristics of highperformance businesses in rural markets. The framework identifies three
distinctive capabilities the ability to create, shape and develop markets;
the ability to adapt and optimize supply chains; and the ability to cocreate value through innovative use of technology. The report explores
each of these tenets in detail, before highlighting the facets of
organizational culture essentials to the organization’s growth strategy.Businesses in India are more confident than ever about the growth of the
country's rural consumer markets. According to the third annual edition
of Accenture Research, “Masters of Rural Markets: From Touchpoints
to Trustpoints - Winning over India's Aspiring Rural Consumers,” rural
consumers are particularly aspirational, striving to purchase branded,
high quality products. The report notes that rural consumers are better
networked and proactively seek information through multiple sources.
The expectations of today's rural Indian consumers differ markedly from
those of previous generations. They are moving away from purely
economic concepts of value driven by low prices, towards a broader
notion of value that combines price with the utility, aesthetics and
features of products and services. Significantly, penetration of media and
telecom services has changed the way India’s rural consumers buy.
The hinterlands in India generate around half of the country's gross
domestic product (GDP) and are home to about 70 per cent of its
population. This market is a combination of growing incomes and
aspirations of about 850 million consumers who inhabit 650,000 villages
across the country. Some of India's biggest companies generate a third of
their consumers from rural India.
Consumption patterns in these areas are also gradually beginning to
mirror those of their urban counterparts. Owing to this changing trend as
well as the size of the market, rural India provides a tremendous
investment opportunity for private companies. The rural regions were
home to 75 per cent of all new factories built in India in the last decade
and accounted for around 70 per cent of new manufacturing jobs.
The Indian government has earmarked financial inclusion as one of its
foremost priorities. In August 2014, Prime Minister Mr Narendra Modi
launched the Pradhan Mantri Jan Dhan Yojana, the National Mission for
Financial Inclusion. There is enough evidence to suggest that financial
inclusion is crucial to reducing poverty.
Name:Ashwini Babli
USN: GIT20MBA097-T
Roll no:22
Division:A
Businesses in India are more confident than ever about the growth of the
country's rural consumer markets. According to the third annual edition
of Accenture Research, “Masters of Rural Markets: From Touchpoints
to Trustpoints - Winning over India's Aspiring Rural Consumers,” rural
consumers are particularly aspirational, striving to purchase branded,
high quality products. The report notes that rural consumers are better
networked and proactively seek information through multiple sources.
The expectations of today's rural Indian consumers differ markedly from
those of previous generations. They are moving away from purely
economic concepts of value driven by low prices, towards a broader
notion of value that combines price with the utility, aesthetics and
features of products and services. Significantly, penetration of media and
telecom services has changed the way India’s rural consumers buy.
The hinterlands in India generate around half of the country's gross
domestic product (GDP) and are home to about 70 per cent of its
population. This market is a combination of growing incomes and
aspirations of about 850 million consumers who inhabit 650,000 villages
across the country. Some of India's biggest companies generate a third of
their consumers from rural India.
Consumption patterns in these areas are also gradually beginning to
mirror those of their urban counterparts. Owing to this changing trend as
well as the size of the market, rural India provides a tremendous
investment opportunity for private companies. The rural regions were
home to 75 per cent of all new factories built in India in the last decade
and accounted for around 70 per cent of new manufacturing jobs.
The Indian government has earmarked financial inclusion as one of its
foremost priorities. In August 2014, Prime Minister Mr Narendra Modi
launched the Pradhan Mantri Jan Dhan Yojana, the National Mission for
Financial Inclusion. There is enough evidence to suggest that financial
inclusion is crucial to reducing poverty.
India's Rural Consumers Are Changing Fast.
New attitudes, priorities and behaviors are reshaping the purchase
decisions of India's rural consumers. These consumers are becoming far
more aspirational, networked and discerning. Our latest research
challenges many traditional assumptions about how rural consumers
make their purchases, and demonstrates how a few companies have
managed to understand the changing rural consumer behavior.
Research found that rural consumers in India are waiting to be served in
new ways, and with new offerings. They have already started deciding
which brands they will pledge their loyalty to. What can companies do
to lock in these consumers' loyalty before their competitors can?
Researcher believe that companies must augment their physical reach by
understanding the minds of these customers what they really want and
why.
The Changing Realities of Rural India
Companies will have to let go of longstanding assumptions about rural
Indian consumers that have prevented them from understanding who
these consumers really are and establishing long-lasting brand
relationships with them.
Name:Amruta Revankar
Roll no: 12
Div: A
USN:GIT20MBA017-T
To talk about India without mention of the country’s rural communities would be folly for any brand seeking main market dominance or appeal.
It is a group that accounts for 12.2% of the world’s population and is responsible for about 50% of the country’s GDP. Rural areas, according to Nielsen, is growing at around 1.5 times the rate of urban areas, with today’s USD$12 billion consumer goods market in rural India expected to hit USD$100 billion by 2025.
High-profile metro hubs such as New Delhi, Mumbai, Chennai, Bangalore and Hyderabad have oftentimes been touted as prime examples of India’s rapid march towards a digital and hyper-connected economy.
But beyond these urban hubs lies the rest of India – an emerging wave of consumers, entrepreneurs and families whose lives have been irrevocably changed by development, technology and the unceasing march of global commerce.
This edition of WARC’s Spotlight series puts the practice of rural marketing in focus. As brands look ahead to a less than positive economic climate in 2020, the preferences and priorities of rural India will become a critical foundation for marketers across industries currently rethinking their engagement playbook.
Any brand strategy to capture the hearts and wallets of a market like India cannot be done without knowing the proverbial ‘soul’ of India. Our expert contributors offer much food for thought in how brands need to re-adapt and re-engage.
Amit Tiwari, vice president of marketing at Havells India, lifts the curtain on the changes taking place in small-town and rural India via a recent ethnographic study conducted by the agency.
“The true potential that India holds cannot be measured accurately without understanding the consumers of small-town and rural India, the environment in which they exist, their social fabric and their interaction with retail,” he argues. “Don’t be surprised if you find the small town or rural Indian consumer more brand conscious and loyal then their urban counterparts.”
Amandeep Singh of VMLY&R India speaks from deep personal experience in his piece, zeroing in on the nation’s farming communities. India may have come a long way since the Green Revolution when farm mechanisation was introduced, however, the situation for farmers has not, and remains a serious issue.
“The potential is massive, but the challenges for farmers and brands keen to target rural communities are many,” he writes. “The digital transformation taking place across rural India does hold some promise, and it all starts with mobile.”
Rural marketing veteran Sandip Bansal, currently chief client & field officer at Dialogue Factory for GroupM Media India points out that one must recognize that the spread-out rural India has specific distribution needs.
“The standard distribution approaches, if forced-fitted, do not work. Till one has an inclusive approach, it will never be able to deliver and will render most sound strategies futile,” he writes. “If we must win in rural India, we need to break it down to smaller geographies and not [only] the regions.”
Meanwhile, Bianca Joseph and Krishnan Subramanian of TBWA India advocate a more radical reset of the way things are done, especially with rural markets developing at twice the rate of urban Indian markets.
A combination of literacy, aspiration, and affluence further magnified by technology-driven access is changing the very nature of the rural consumer. The duo believes that the long-held maxims of marketing to rural communities in the country no longer hold sway and have lived well past their expiry dates.
“It's time to put our preconceived notions about these markets under the scanner,” they argue. “It is time to retire them and connect more richly with the emerging rural Indian consumer.”
Rural India has changed and continues to change. Marketers need to get reacquainted and redefine the relationship or risk missing out on what could be the biggest consumer tsunami since, well, China.
Name:Kiran Dandagi
Roll no:46
Div:A
USN:GIT20MBA087-T
Rural Marketing is one of the emerging concepts which have attracted the attention of marketers globally in the recent years. The concept incorporates the marketing of rural specific goods and services leading to exchange between rural and urban markets. The green and white revolutions in the rural areas have raised the standard of living, purchasingcapacity and consumptions levels of huge quality and quantity of industrial and manufactured goods. This move have made many business houses to plan strategies to extend their business to rural areas, the trade channels for different types of commodities available in rural areas are private, cooperatives, processors, regulated markets and state agencies.
The rural markets offer huge opportunities for enhancing businesses. In spite of much scope for business development very less attention has been paid for the development of rural marketing concept. Further, under developed market, people, infrastructure, communication,transport and many more factors have contribute for the unbalanced growth of rural markets.
The researcher has consulted secondary sources of literature for the development of the title.
On the whole, in this paper an attempt has been made to discuss the problems of rural
markets in India and at the end some solutions have been offered for overcoming the same
Our study identifies three broad dimensions characterising behaviour change emerging among India's rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.
These many tiers increase the cost of distribution. Rural markets typically signify complex logistical challenges that directly translate into high distribution costs. Bad roads, inadequate warehousing and lack of good distributors pose as major problems to the marketers.
The rural populace should be developed in all aspects strategies must be designed by the central government, respective state governments, local bodies and NGOs for the upliftment of the same.
1. Wide and Scattered Market:
Wide and scattered market is difficult to reach in both the aspects – promotion and distribution. Rural India is spread in the entire county in around 6 lakhs villages of different sizes while urban population is concentrated in around 3200 cities. Most of villages are extremely small with population less than 500 people. Only one percent (6300) villages have a population of more than 5000. It is challenging tasks to choose target markets and to serve them effectively.
2. Problem of Designing Products:
Products sold successfully in urban markets, may not necessarily be successful in the rural markets due to difference in utility value of the products. Mind-set of rural segments seems quite astonishing and different. Existence of considerable heterogeneity among rural folks poses challenges for marketers to incorporate their uneven expectations in the products.
3. Transportation Bottleneck:
Transportation is the nerve centre for any type of business. Most of villages are not properly connected with main roads. Every year during monsoon thousands of villages are disconnected.
Name:Mandhar madhu S Mared
Roll No:51
Div: A
USN No:GIT20MBA117-T
The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy. As per research done by Accenture , there are three broad dimensions characterising behaviour change emerging among India's rural consumers.
First, rural consumers are more aspirational. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image.
Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television have also reshaped lifestyle and consumption patterns among rural consumers.
Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers.
While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics.
While the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty.
Anusha kajagar
GIT20MBA121-T
Roll no 18
A division
Rural sector which was once disdained by one and all due to the uncivilized and barbarian culture, amenities and demeanor has recently come into global limelight. It is consistently showing promising signs of shining in the near future. Once ignored, it is now receiving undivided attention and strong impetus from the government, various foreign and domestic companies. Right now, the urbane problem of work-life balance, home cooked food and cleanliness is a major concern that needs insightful solutions to be implemented. Foreign Brands like Maggi, Dairy-milk, Sunsilk, Fair-and-Lovely, etc. are coming to the rescue.
The game of marketing is all about a war between the heart and mind. The crux of this amusement is the pocket share. The complexity in this multi-faceted world is constantly increasing. The opportunities exist in resolving confusions and facilitating decision-making amongst the copious brands that exist and throng the marketplace. The changes that are constant are paradoxical at times. The scope of development had been pioneered and sustained by the FMCG companies like HUL, Colgate-Palmolive, Philips, et al. With the execution of their developmental approach, the rural markets had been well nurtured by the agri-input marketers and government agencies.
The rural prosperity is the opportunity and an ethical onus for global marketers. The proposition is, Rural India as a growth driver for the future rather than Rural India as an attractive market today’. The proposition also is, ‘India as a separate unit for strategy development’ in lieu of ‘India as an extension market for global strategy deployment’. In conclusion, the objective is to leverage global competencies and knowledge of the company to create a winning ‘Made for India Global Strategy’ rather than leveraging a global strategy to create a new market. Rural markets will be playing a major role in company balance sheets whether in form of creditors or debtors to the company funds. Although rural India is filled with opportunities, tapping them is not an easy mission.
There are various hurdles in the way of any corporate house that intends to bring its business into rural India. Much of the rural India remains a mystery. Communication is still an active trial with encountering about thirteen major languages and thirteen hundred dialects. Diversity in tradition and cultures surmount. Poor reach of mass media and shallow understanding of rural consumers is a challenge to be encountered.
Although rural marketing is a tough cookie to crack, the opportunities and potential for growth is immense. Hence, with a mind to look at the positive side of things, we must remember what all we need to do, in order to work the rural market in just the right way.
Why is rural such a discounted reality? Why is it that even before we pry we decide not to try? Just the definition of rural, up until now has been enough to drive us away from Rural India. More and more people have migrated from rural to urban. As the years went by, urban has now become completely saturated and simply has no scope left. You can’t expect to sell a smartphone in a city like Delhi, until and unless your product really has something special and unique to offer. Brands who are not innovators, but mere imitators won’t get very far in such a market.
Dolly Jain
Roll No 35 'A'
Rural Marketing is one of the emerging concepts which have attracted the attention of marketers globally in the recent years. The concept incorporates the marketing of rural specific goods and services leading to exchange between rural and urban markets. The green and white revolutions in the rural areas have raised the standard of living, purchasingcapacity and consumptions levels of huge quality and quantity of industrial and manufactured goods. This move have made many business houses to plan strategies to extend their business to rural areas, the trade channels for different types of commodities available in rural areas are private, cooperatives, processors, regulated markets and state agencies.
The rural markets offer huge opportunities for enhancing businesses. In spite of much scope for business development very less attention has been paid for the development of rural marketing concept. Further, under developed market, people, infrastructure, communication,transport and many more factors have contribute for the unbalanced growth of rural markets.
The researcher has consulted secondary sources of literature for the development of the title
Francis 36
The buying preferences of India’s rural consumers are changing fast and several factors – economic, psychological, and technological – are coalescing to fuel this transformation. Rural consumers’ income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12.
There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India’s values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
Here I would like to mention the research conducted by accenture company.
Accenture undertook a research to understand how Indian rural consumers’ behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Their study identified three broad dimensions characterising behaviour change emerging among India’s rural consumers:
First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today’s rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture’s report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.
Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India’s hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions.
Farheen Shiggaon 36
Example: “UTSAV” Campaign by Asian PaintsThe well-known paint brand, Asian Paints “Utsav” campaign has been very popular in rural areas.In this campaign, the Mukhiya’s home in villages was painted 6 months before launching the paint as a demonstration for non-peel-off quality of paint.The concept for doing such a demonstration was that rural customers give more focus on other’s experiences of using brands to make purchase decisions.
So, the Utsav campaign grabbed the attention of rural customers and also successfully built reliability and durability due to painted Mukhiya’s house walls and attracted lots of rural customers.The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives
Accenture undertook a research to understand how Indian rural consumers' behaviors and attitudes have evolved in the past few years and what influences their buying behavior the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fueled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.
Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.
Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics.
While the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty.
NAME: Amratha Shetty
Roll no :11
Div :A
USN no:GIT20MBA101-T
To talk about India without mention of the country’s rural communities would be folly for any brand seeking main market dominance or appeal.
It is a group that accounts for 12.2% of the world’s population and is responsible for about 50% of the country’s GDP. Rural areas, according to Nielsen, is growing at around 1.5 times the rate of urban areas, with today’s USD$12 billion consumer goods market in rural India expected to hit USD$100 billion by 2025.
High-profile metro hubs such as New Delhi, Mumbai, Chennai, Bangalore and Hyderabad have oftentimes been touted as prime examples of India’s rapid march towards a digital and hyper-connected economy.
But beyond these urban hubs lies the rest of India – an emerging wave of consumers, entrepreneurs and families whose lives have been irrevocably changed by development, technology and the unceasing march of global commerce.
This edition of WARC’s Spotlight series puts the practice of rural marketing in focus. As brands look ahead to a less than positive economic climate in 2020, the preferences and priorities of rural India will become a critical foundation for marketers across industries currently rethinking their engagement playbook.
Any brand strategy to capture the hearts and wallets of a market like India cannot be done without knowing the proverbial ‘soul’ of India. Our expert contributors offer much food for thought in how brands need to re-adapt and re-engage.
Amit Tiwari, vice president of marketing at Havells India, lifts the curtain on the changes taking place in small-town and rural India via a recent ethnographic study conducted by the agency.
“The true potential that India holds cannot be measured accurately without understanding the consumers of small-town and rural India, the environment in which they exist, their social fabric and their interaction with retail,” he argues. “Don’t be surprised if you find the small town or rural Indian consumer more brand conscious and loyal then their urban counterparts.”
Amandeep Singh of VMLY&R India speaks from deep personal experience in his piece, zeroing in on the nation’s farming communities. India may have come a long way since the Green Revolution when farm mechanisation was introduced, however, the situation for farmers has not, and remains a serious issue.
“The potential is massive, but the challenges for farmers and brands keen to target rural communities are many,” he writes. “The digital transformation taking place across rural India does hold some promise, and it all starts with mobile.”
Rural marketing veteran Sandip Bansal, currently chief client & field officer at Dialogue Factory for GroupM Media India points out that one must recognize that the spread-out rural India has specific distribution needs.
“The standard distribution approaches, if forced-fitted, do not work. Till one has an inclusive approach, it will never be able to deliver and will render most sound strategies futile,” he writes. “If we must win in rural India, we need to break it down to smaller geographies and not [only] the regions.”
Meanwhile, Bianca Joseph and Krishnan Subramanian of TBWA India advocate a more radical reset of the way things are done, especially with rural markets developing at twice the rate of urban Indian markets.
A combination of literacy, aspiration, and affluence further magnified by technology-driven access is changing the very nature of the rural consumer. The duo believes that the long-held maxims of marketing to rural communities in the country no longer hold sway and have lived well past their expiry dates.
“It's time to put our preconceived notions about these markets under the scanner,” they argue. “It is time to retire them and connect more richly with the emerging rural Indian consumer.”
Rural India has changed and continues to change. Marketers need to get reacquainted and redefine the relationship or risk missing out on what could be the biggest consumer tsunami since, well, China.
Pavitra Hegde
Roll no.:66
Div:B
USN:GIT20MBA085-T
The concept of rural market in India is still evolving and it posses numerous challenges like understanding rural consumer, reaching and providing services to remote locations and communicating with heterogeneous audience. Though there are several difficulties in targeting the rural market but still almost all companies are rushing towards this market. This is mainly because of saturated urban market and favourable changes in rural market like improving lifestyle, habits, taste, increasing literacy level, increase in income, increase in expectations and aspirations, improving infrastructure, government support via various schemes etc. Now day's rural consumers are also using branded products and almost all major brands are available in rural market of India. Though the gap between Indian rural and urban consumer is decreasing still there is considerable difference between them in terms geographic, demographic and psychographic aspects. These differences are resulting in distinction in rural and urban consumers' behaviour, hence requiring different marketing strategies for these regions.
Name: Manjula
Roll.No : 52(A)
USN : GIT20MBA001-T
The concept of rural market in India is still evolving and it posses numerous challenges like understanding rural consumer, reaching and providing services to remote locations and communicating with heterogeneous audience. Though there are several difficulties in targeting the rural market but still almost all companies are rushing towards this market. This is mainly because of saturated urban market and favourable changes in rural market like improving lifestyle, habits, taste, increasing literacy level, increase in income, increase in expectations and aspirations, improving infrastructure, government support via various schemes etc. Now day’s rural consumers are also using branded products and almost all major brands are available in rural market of India. Though the gap between Indian rural and urban consumer is decreasing still there is considerable difference between them in terms geographic, demographic and psychographic aspects.
The Indian rural market comprises of around 840 million people which generates around 50 per cent of the country’s Gross Domestic Product (GDP). This population is always ignored by private sector due to its low -income level, low literacy rate and high cost because of improper infrastructure facilities. The rural market was never looked upon as a profit centre due to unavailability of proper distribution channels and media, low awareness and high competition from unorganized players. However, as the growth of urban market started stagnating, the need for exploring new market became essential. There has been improvement in living standards of rural population since last few decades. Rural poverty has declined by eight percentage points from 41.8 per cent to 33.8 per cent, and urban poverty by 4.8 per cent from 25.7 per cent to 20.9 per cent over the period 2004-05 to 2009-10 (Bhalchandra,K., Rural Poverty,2011 ). Rural Indian households are spending more on consumer goods like durables, beverages and services than five years ago. In fact, when the global recession hit urban demand few years ago, it was strong rural demand that rescued the economy (Economic Times, 2011). It has become a powerful economic engine due to rising income levels, changing lifestyle, habits,taste, increasing literacy level and increasing expectations of rural consumers. As a result, the consumption habits of rural consumer are gradually mirroring those of their urban counterparts. However, still the composition of the Indian rural market is different from urban market on number of aspects such as the physical environment, marketing environment, the consumer profile, etc. Today almost all leading FMCG brands are available in rural parts of India and rural consumers are using it regularly. Therefore, there is a need to study the factors contributing to the gap between rural and urban consumers such as socioeconomic environment, marketing environment etc.
Name: Sunil Akkannavar
Roll No.: 108
USN: GIT20MBA118-T
The idea of Rural Marketing in Indian Economy has always played a significant role in the lives of people. The rural market in India brings in greater revenues in the country, as the rural regions comprise of the maximum consumers in this country. Indian rural market produces almost more than half of the country’s income. Indian Rural Marketing has always been difficult to predict and consist of special uniqueness. However, many companies were efficacious in entering the rural markets. They bagged the market with its proper understanding and innovative marketing ideas. It is very challenging for the companies to overlook the opportunities offered by the rural markets. As two – third of Indian population exists in rural areas, the market is much unanticipated for the companies to be effective in rural markets. They have to overcome few challenges such as pricing and distribution. The present paper aims to know the status of rural market in India, the identification of different rural marketing strategies, to highlight the opportunities and challenges of rural marketing in India.Rural markets are tomorrow’s markets in India. They are big attractions to producers and marketers. For instance, Hindustan Unilever Ltd. (HUL), ITC, Parley Foods and many other companies are concentrating on the rural markets as the urban markets have become saturated. The scope of future expansion lies in the development of rural markets. In fact, rural marketing should be recognized as developmental marketing by big business firms. In India it has gained greater significance these days as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities. On account of the green revolution in India, the rural areas are consuming a large quantity of industrial and consumer products produced near the urban areas. In this context, a special marketing strategy, namely, rural marketing has replaced agricultural marketing which was confined merely to selling farm machines and other inputs. Due to competition in the urban market, the market is more or less saturated as most of the capacity of the purchasers has been targeted by the marketers. So the marketers are looking for extending their product categories to an explored market, i.e., the rural market. This has also led to the CSR activities being done by corporates to help the poor people attain some wealth to spend on the product they want. For instance, HUL’s Project Shakti is not only helping the company earn some revenues but also helping the poor women of the village to earn some money which is surely going to increase their purchasing power. Similarly ITC’s e-Chaupal, is helping the poor farmers get all the information about the weather as well as the market price of the food grains they are producing and those of inputs (seeds, fertilizers, etc.) they want to buy. The Indian rural economy has not been impacted by the global economic slowdown, according to a recent study by the Rural Marketing Association of India (RMAI). The study found that the rural and small town economy which accounts for 60% of India’s income has remained insulated from the economic slowdown. Moreover, rural incomes are on the rise driven largely due to continuous growth in agriculture over the years and increase in employment opportunities in the rural areas.
NAME: Amratha Shetty
Roll no :11
Div :A
USN no:GIT20MBA101-T
ASSIGNMENTS-2
Rural India has become a massive consumer goods market with more than six hundred thousand villages and more than 70% of the population living in villages. In these rural markets, FMCG products have emerged as a major product category. Various researchers have found that rural and urban Indian consumers have different needs and wants. These differences have revealed a huge marketing potential for MNCs and other foreign investors, who try to explore rural regions for marketing opportunities. Thus, understanding rural consumer behaviour is very important for the marketers. This paper focused on the important factors that affect the rural purchase behaviour of FMCG products. The findings of this study indicate that price, brand name, quality, availability, packaging, and so forth were the important factors influencing the rural consumers' purchase decisions. The study also focused on the important aspects such as the effective modes of communication, reasons for switching brands, billing patterns, and satisfaction level among the rural consumers.
Rural marketing require great concept and content to make villagers fall in love with your products and services.
When you think about rural marketing in India that means you are talking about 700 million people of India or 40% of middle income group who are not much far from urban happenings and activities.
Rural market is the vital source of most of the companies over the years and they are reaching to them with tradition marketing only.
Here are few ideas you can use to reach them.
- Bulk SMS
- Whatsapp Blasts
- YouTube
- Facebook Marketing
- Display ads
All in all, the importance of rural marketing in Indian economy can be summarised as follows:
- Enhanced professional services
- Establishing fixed contact points for better responsibility and accountability
- Better delivery in reduced time for the village market
- Meeting last mile consumer needs
- Transforming unprofessional attitudes to professional ones
- Growth of innovative business models, which can also lead to more business and competition
- Reduced expenditure for rural populace
- More income for livelihoods
- Better supply chains
- Growth of rural based enterprises
- Diverse growth of literacy in villages including education, financial literacy and technological literacy
- Brings more hygiene in the hinterlands
- Drives the consumption of economy
- Alternative area for upcoming entrepreneurs to invest in.
Name: Devu Ashok
Roll no: 32
Div: A
USN : GIT20MBA032-T
India is growing at an average annual rate of 7.6 for the past many years and it is expected to continue growing at an equal if not faster rate. The rapid economic growth is increasing and enhancing employment and business opportunities and in turn increasing disposable incomes. The rural consumers in India account for about 73 percent of the total consumers. In recent years, the lifestyle of a large number of rural consumers in India has changed dramatically and the process of change is going on. The buying behaviour of the rural consumers is influenced by several factors such as socio-economic conditions, cultural environment, literacy level, occupation, geographical location, efforts on the part of sellers, exposure to media etc.Rural consumers in emerging markets of developing countries are among the largest and fastest growing segments of the world’s population. In a country like India, where a substantial number of the rural people are living below poverty line, having high level of unemployment and poor literacy level; consumer awareness continues to remain low. Above all about 70 percent of India’s population lives in rural areas. There are about 6, 38,365 villages in the country as against about 300 cities and 5,161 towns. Of the 121 crore Indians, 83.3 crore live in rural areas while 37.7 crore stay in urban areas, as per the Census 2011. Even in urban areas, a large number of people live in slums whose life is not better than those living in rural areas. This clearly highlights that India is still dominated by rural population. There were 7,935 towns in 2011 as against 5,161 in 2001. About 13.3% of India’s population and 42.6% of urban population reside in 53 cities having more than a million people, while the remaining 7,882 cities account for 47.4% of the urban population. There has been a steady increase in the number of cities from 5 in 1951 to 35 in 2001 to 53 in 2011 having a population of more than 10 lacs. About 31% of the urban population lives in the top-20 cities and about 51% of the country’s urban population lives in the top-100 cities.
It is found that companies have expanded in rural areas because they are able to ward off competition, generate a new demand and in turn increase their sales or profits as well. The rural India offers a tremendous market potential. In fact, rural markets are the new markets offering both durable and non-durable products. Long-term perspective of marketing planning with modern approach is essential for their future growth. The Indian rural market is a goldmine, which needs to be explored. Rural consumers’ behaviour needs to be understood and products specially designed to suit the rural lifestyle. The key business players are ecstatic about the immense market potential in India’s rural areas. It is also believed that major changes have taken place in the economic fundamentals, decrease in agricultural dependence, and increase in average income, life style, standard of living of the rural due to high economic growth rate. Business tycoons plan huge investments focused on rural areas, as part of growth of rural strategy. Rural India has witnessed a wave of change in recent times. Rural markets dominate Indian marketing scene and they need special attention for the expansion of marketing activities. With media exposure and increasing literacy levels, people are now demanding a better lifestyle. Figure shown below depicts the consumer India’s confluence of change in this regard.
Consumer India’s Confluence of Change
The changing shape of income distribution suggests growth in rural incomes which in turn should herald a consumption boom. Now-a-days, liberalisation, comfort with technology, changed attitude of people especially middle income group, alongwith rise in aspiration, the rural India is going beyond agriculture and is creating a new market for mass consumption.
Name:Keerti Desai
USN: GIT20MBA126-T
ROLL NO : 45 (A)
India’s rural economy constitutes nearly half of the national income. Despite growing urbanisation, more than half of India's population is projected to be rural. The buying preferences of India's rural consumers are changing fast and several factors like economic, psychological, and technological are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives.
There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
Digital Technology is making strong inroads into rural markets under the digi village programme, the government has connected over 150,000 villages out of 647,000 with wifi. This has made rural tech start-ups attractive for funding from the likes of Mahindra, Accel and Bill Gates.
Rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics. While the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty. Rural aspirations are very much the same as in urban areas, it is important that we understand the mind and the mood of the rural consumer.
Name:Dhanya Shetty
Roll no:34(A)
USN:GIT20MBA089-T
The basic consumer behaviour model has
a limited application to understanding rural customer behaviour in India since the rural market is not a homogeneous group; rather it consists of a diverse range of cultural, social, traditional, socio-economic factors
affecting consumption.
The 4 As of marketing: acceptability, affordability, awareness, accessibility have evolved as a more customer oriented solution for designing appropriate marketing strategy for rural markets. The 4 As of rural marketing together drive the rural marketer’s efforts for sustained growth in rural markets.
1. Acceptance
Understanding what the rural customer wants is pivotal in succeeding in the rural markets. While on one hand, the rural customers have growing aspirations, they are price sensitive. Rural customers are highly value conscious: in the case of consumer durables, this translates into high functionality in terms of the product being durable and multiple uses (Accenture Research Report, 2010). In terms of the product into the rural customer’s requirements, a research found that rural customers purchased motorcycles especially to attend social functions with families and to carry various products such as agricultural produce; hence for the rural customer, it is not so much the appearance and the style of the motorcycle that matters, as is its load carrying capacity.
2. Affordability
The customers are price sensitive and expects value for money . Affordability is an important marketing decision in rural marketing since the rural customer’s income levels still are much lower than his urban counterparts. Affordability means the price of the offering should be within the rural customer’s purchasing capacity and does not mean a low-cost, low quality version of an urban product or service. Customers are highly value conscious and a product will not have customers in this market, if it does not offer value, however low the price. Affordability thus, is not only a low pricing decision, but involves designing products and services such that they offer value simultaneously with the rural customer’s purchasing capacity. This has led to the success of various sachet packaging-whether in personal care products, such as shampoos as demonstrated by CavinKare’s Chic shampoo sachets.
3. Awareness
Rural markets require novel treatments for promoting products and gaining customer awareness. For instance, Asian Paints selected some opinion leaders in the villages and painted their houses to demonstrate that the colour does not come off; Life Insurance Corporation of India made use of puppet shows to create awareness amongst the rural people regarding the importance of insurance products; ICICI Prudential promoted its product in the haats, mandis, and other local markets organised in the rural areas. It also educated the rural people by advertising through mobile vans. Many companies use folk theatre formats as a means to promote their products.
4.Accessibility
That distribution is key for sustainable growth in Indian rural markets with far geographically dispersed, poorly connected villages, has been reported in two Accenture reports. This became more apparent recently, when lack of availability due to inadequate presence in the rural markets was attributed to Britannia’s (a leading marketer of biscuits in India) loss in its market share, when despite awareness of its biscuits, people were not consuming the biscuits.
Name: Annapurna B
USN: GIT20MBA106-T
Roll no: 16(A)
A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example – “Use a low cost product to attract rural consumers. Once the organization, via our low cost product, has established a relationship with consumers, the organization will sell additional, higher-margin products and services that enhance the consumer’s interaction with the low-cost product or service.”
The strategy for rural marketing has to be basically different from that for the urban market because of two very important reasons. In the first place, since the urban people are concentrated, it is physically easier to contact them. On the contrary, people in villages are scattered, so that the task of contacting them is several degrees more demanding and challenging. Secondly, the methods of communicating with the villagers have to be of a different order in view of their lower levels of education and the environmental differences.
The rural consumer, due to the increased literacy, advent of television, promotional efforts and increased contact with urban markets, has become much more knowledgeable about products and empowered than in the past. Therefore, companies must offer good quality products in order to satisfy his needs effectively.
The word of mouth factor is very crucial in rural markets; it can affect the entire operation in a magnifying manner. If single bad experience can discourage the entire village from a brand then a single good experience can win the entire village as consumer with no additional promotional effort.
The primary customer for the organisation, the retailer has a very high bargaining power in the rural markets. To create shelf space for the products at the rural retail outlet is a big challenge as rural retailer is only stockings few brands per products category. He can live with that very comfortably as his market is not very choosy and demanding and is ready to accept whatever he offers because of lack of alternative options.
Name: Anusha k
USN :GIT20MBA121-T
Roll no:18
One fine evening as I was commuting via metro, an elderly man boarded from a station dressed
in white Indian male attires. He wasn't clean shaved and smelled of cow dung. I observed that
passengers could not bear the stink and started drifting away making him apparently isolated.
This incidence draws my attention towards rural people. The literal meaning of ‘Rural’ stands to
explain a market that is, under explored, less developed, where accessibility is scattered, where
doubts and enquiries related to technology are plentiful, where people are more than means to an
end, where existence is marked by both discomfort and inconvenience. Dictionary defines 'rural'
as rustic, raw, unrefined, uncouth, hinterland. But the meaning of the word rural goes much
beyond to what dictionary defines.
Adding to this twin perspective of political and economic, this is that part of the world where
India's demographic dividend resides. These people have huge potential for development and
contribute heavily to the GDP of the country. Their skills sets, if enhanced, can contribute
phenomenally to the prowess of industries. This paper aims to establish both literal meaning of
the word 'rural'; it is an attempt to make the readers and practitioners change their perspective by
highlighting the promising prospects that this sector beholds. This is a thought- provoking piece
of writing meant to orient new incumbents to embrace the concepts and fundamentals of this
sector than to shun it.
Why is rural such a discounted reality? Why is it that even before we pry we decide not to try?
Just the definition of rural, up until now has been enough to drive us away from Rural India.
More and more people have migrated from rural to urban. As the years went by, urban has now
become completely saturated and simply has no scope left. You can’t expect to sell a smartphone
in a city like Delhi, until and unless your product really has something special and unique to
offer. Brands who are not innovators, but mere imitators won’t get very far in such a market.
This is where rural enters the picture. Rural is like an untouched goldmine simply sitting, and
waiting for the right miner to see, realize and tap its core.
Rural Indians who are largely simple and literal beings, won’t be attracted to a brand name they
can’t even pronounce, much less understand. The company must keep it in mind while trying to
market its product in rural India. Permutation and combination of Marketing Mix is under the
IMC model must focus on re-engineering marketing communication must focus on mass
consumption. Many of the foreign brands that target mass consumption have their tagline in local
language. E.g. Coca-Cola: Aaj tu jashn mana le, or Cadburys: Kuch meetha ho jaaye.
Name: Sujay Sangati
USN : GIT20MBA088-T
ROLL NO: 105(B)
Rural consumers are particularly aspirational, striving to purchase branded,
high quality products. The report notes that rural consumers are better
networked and proactively seek information through multiple sources.
The expectations of today's rural Indian consumers differ markedly from
those of previous generations. They are moving away from purely
economic concepts of value driven by low prices, towards a broader
notion of value that combines price with the utility, aesthetics and
features of products and services. Significantly, penetration of media and
telecom services has changed the way India’s rural consumers buy.
The hinterlands in India generate around half of the country's gross
domestic product (GDP) and are home to about 70 per cent of its
population. This market is a combination of growing incomes and
aspirations of about 850 million consumers who inhabit 650,000 villages
across the country. Some of India's biggest companies generate a third of
their consumers from rural India.New attitudes, priorities and behaviors are reshaping the purchase
decisions of India's rural consumers.
Changes In Rural
Consumer Behavior emerging among the rural consumers in India.
1) As incomes of India's rural consumers rise, they want to provide their
children with a better future through education and healthcare. In
addition, their shopping basket has begun resembling that of their urban
counterparts and includes products from categories they have not
purchased from in the past.
In the process of becoming more aspirational, rural consumers in India
are now:
Brand Savvy: Willing to invest in branded products to ensure quality
Trading Up: Want more features and better product designs to boost
social image
Explorers: Adopt new categories, using multiple channels
2) Rural consumers operate as members of tightly-knit communities, with
word of mouth playing a powerful role in their purchase decisions.
Today, they have greater access to mobile Internet, and consume the
same media–music, TV, movies–as urban consumers.
3)Rural consumers no longer fall for fraudulent retailer tactics or blindly
accept a product only because it is low priced. At the same time, they
will not buy an expensive offering unless they are convinced of its utility
and longevity.
In their judgment, they are:
Street smart: More aware, not prone to fraudulent schemes
Value seeking: Evaluate total value of investment, not just price
Social: Information sharing with strong peer effect.
Name:Devika goral
Roll no:31
USN:GIT20MBA108-T
Assignment 2
The contact of rural marketing environment is quite complex in India which has been changing continuously since last few years. Hence marketing organizations who want to target the rural Market should foresee and adapt such strategies to make some necessary changes in market.an adoptive organization can always have modest growth and stand competition by making effective marketing plans and also creating opportunities in the market with change in the dynamic environment as it might prove profitable for them.hence in India there are various factors which affect the consumer behavior,some of the major ones are discussed:
1. The environment in which consumer dwells:
In India environment or the surrounding in which the consumer lives certainly has a strong influence on buyer behavior.various such factors like electrification,water supply do effect the demand for durables.
2. Influence of consumer's occupation:
Occupation as such is the main source of income for any individual living in a society and the same applies to rural areas also where in owner of land buy more consumer durables than agricultural labourers.
3. Brand preference and loyalty:
People in rural areas will not give much preference to branded products but certainly give importance to loyalty for a product.hence more than 80% of sales in rural areas come from branded in 16 various product categories.
4. Place of purchase:
Company needs to access those products to rural consumers which mostly influences purchase decision of rural consumer.hence and organisation having it's presence in rural area should develop various shops and outlets where retailers can avail better service.
5. Geographical influence:
The geographic location where in the consumer is located also affects the taught process of consumer buying behavior.to cite and example most of the rural villages in south India accept technology quicker compared to other parts of India.Hence HMT sells more quartz watch in south.
Name: Muttavva Mudenagudi
Rollno:58 A
USN:GIT20MBA090-T
According to the third annual edition of Accenture Research, “Masters of Rural Markets: From Touchpoints to Trustpoints - Winning over India's Aspiring Rural Consumers,” rural consumers are particularly aspiring or striving to purchase branded, high quality products. Consequently, businesses in India are optimistic about growth of the country's rural consumer markets, which is expected to be faster than urban consumer markets. The report highlights the better networking among rural consumers and their tendency to proactively seek information via multitude sources to be better informed while making purchase decisions. Importantly, the wider reach of media and telecommunication services has provided information to India’s rural consumers and is influencing their purchase decisions. In line with general trend, rural consumers are evolving towards a broader notion of value provided by products and services which involves aspects of price combined with utility, aesthetics and features, and not just low prices.
The hinterlands in India consist of about 650,000 villages. These villages are inhabited by about 850 million consumers making up for about 70 per cent of population and contributing around half of the country's Gross Domestic Product (GDP). Consumption patterns in these rural areas are gradually changing to increasingly resemble the consumption patterns of urban areas. Some of India's largest consumer companies serve one-third of their consumers from rural India. Owing to a favourable changing consumption trend as well as the potential size of the market, rural India provides a large and attractive investment opportunity for private companies.
Recent Developments
Following are some of the major investments and developments in the Indian rural sector.
The National Bank for Agriculture and Rural Development (NABARD) plans to provide around 200,000 point-of-sale (PoS) machines in 100,000 villages and distribute RuPay cards to over 34 million farmers across India, to enable farmers to undertake cashless transactions.
Magma Fincorp, a Kolkata-based non-banking finance company (NBFC) plans to expand its operations in South India, with specific focus on rural and semi-urban markets to help the company grow rapidly. Payments banks are meant to fan out into the rural, remote areas of the country, offering limited but critical services such as money transfers, loans and deposit collection. While banks have the knowhow, telecom companies have the network, making it an ideal match.
Government Initiatives
The Government of India has planned various initiatives to provide and improve the infrastructure in rural areas which can have a multiplier effect in increasing movements of goods, services and thereby improve earnings potential of rural areas subsequently improving consumption.
The Government of India has approved the proposal to construct 10 million houses for the rural population, which will require an investment outlay of Rs 81,975 crore (US$ 12.7 billion) for the period from 2016-17 to 2018-19.
The Government of India aims to provide tap water regularly to every household by 2030 in line with United Nations Sustainable Development Goals, requiring a funding of Rs 23,000 crore (US$ 3.57 billion) each year until the target is met.
The Government has introduced various reforms in the Union Budget 2017-18 to uplift the rural markets. Some of the key highlights of the Budget are:
Rs 187,223 crore (US$ 28.08 billion) has been allocated towards rural, agriculture and allied sectors.
The Allocation for Pradhan Mantri Aawas Yojana-Gramin has been increased from Rs 15,000 crore (US$ 2.25 billion) to Rs 23,000 crore (US$ 3.45 billion) in the year 2017-18 with a target to complete 10 million houses for the houseless by the year 2019.
Name : Aishwarya S Rugi
USN : GIT20MBA103-T
Roll no : 07
Div : A
The factors that have created rising demands among rural buyers are increase in literacy levels, migration to urban sectors, growth in media and telecommunication, availability of bank credit schemes, globalization of market, low price technology products (such as television, mobile, fridge, camera, etc.), government sponsored employment generation, and tax concessions and loan waivers.
•Socio-cultural Factors
Socio-cultural environment is an important part of environment — culture, traditions, beliefs, values and lifestyle of the people within a limitation of society constitute the socio-cultural environment
•Social Class
Social class is one of the main concepts in socio-cultural environment. A society consists of different social classes and all social classes are determined by income, occupation, literacy level etc. of its members.
•Social and Cultural Environment
The society and polity across the country varies between different religions, castes and linguistic groups. Common socio-cultural behavior has been mapped as distinct sociocultural regions, which may be spread across political boundaries. The influence of social practices shows itself in consumer preference for product features, product size, shape and color.
•Occupation
Occupational pattern of rural people also has an impact on the nature of income generation, which will in turn affect the expenditure pattern. Purchase behavior of the rural consumers depends upon the nature of occupation and the consistency in the generation of income.
•Literacy Level
The literacy level of rural people has a considerable impact on the marketing strategies to be adopted by the marketing team especially in communication with the rural people. Higher the level of literacy, the easier it becomes for companies to penetrate into rural areas.
Name:shweta sureshbabu madalli
USN:GIT20MBA131-T
Roll no:100 'B'
The expectations of today's rural Indian consumers differ markedly from those of previous generations. They are moving away from purely economic concepts of value driven by low prices, towards a broader notion of value that combines price with the utility, aesthetics and features of products and services. Significantly, penetration of media and telecom services has changed the way India’s rural consumers buy.
The hinterlands in India generate around half of the country's gross domestic product (GDP) and are home to about 70 per cent of its population. This market is a combination of growing incomes and aspirations of about 850 million consumers who inhabit 650,000 villages across the country. Some of India's biggest companies generate a third of their consumers from rural India.
Consumption patterns in these areas are also gradually beginning to mirror those of their urban counterparts. Owing to this changing trend as well as the size of the market, rural India provides a tremendous investment opportunity for private companies. The rural regions were home to 75 per cent of all new factories built in India in the last decade and accounted for around 70 per cent of new manufacturing jobs.
The Indian government has earmarked financial inclusion as one of its foremost priorities. In August 2014, Prime Minister Mr Narendra Modi launched the Pradhan Mantri Jan Dhan Yojana, the National Mission for Financial Inclusion. There is enough evidence to suggest that financial inclusion is crucial to reducing poverty.
The Changing Realities of Rural India
Companies will have to let go of longstanding assumptions about rural Indian consumers that have prevented them from understanding who these consumers really are and establishing long-lasting brand relationships with them
Rural Consumer Segments
Increased incomes, growing awareness and rising individual aspirations are creating distinct consumer segments in India's hinterlands. Drawing on granular analysis of responses to our survey, we have defined four broad rural Indian consumer segments:
Indian Rural Marketing: The Changing Realities of Rural India
of their purchase decision and they typically purchase the cheapest offerings available.
Building Trust along the Rural Consumer Purchase Journey
To gain wallet share in India's rural market, companies need to meet specific imperatives at each stage of the rural consumer's purchase journey. We call such milestones "trustpoints" instead of "touchpoints," as they constitute critical moments where companies can build trust with the customer–or destroy it:
Swaranjali Publication, 2018 219
Economic Development of India
• Keep communication simple, customised and engaging
Awareness
• Customise marketing mix by product and geography
• Look beyond traditional media; explore mobile marketing
Consideration
• Tailor value proposition to create resonance
• Appeal to diversity
• Demonstrate results to inspire consumer trust
Validation
• Engage with relevant influencers
• Invest to transform retailers into informed advisors
Purchase
• Enhance in-store experience
• Support online channel through offline intervention
• Offer improved financial access and payment flexibility
Experience
• Differentiate through service; initiate contact with customer
• Deliver on the brand promise to win loyalty
Advocacy
• Nurture advocates to leverage positive word of mouth
• Seek customer feedback proactively
Name : Desai Sarvada Maruti
USN NO : GIT20MBA012-T
Roll No : 30 (Division : A)
India's rural consumers are an aspirational, brand-conscious lot who set little value to star-endorsed products and the latest Accenture research shows that businesses in India are more confident than ever about the growth of the country’s rural consumer markets, but are risking their competitiveness by failing to respond to the changing needs and behaviours of rural consumers.
To meet the changing needs of the rural consumers, companies will need to adapt their product portfolio, their value propositions and their go-to-market strategies,” said Raghuram Devarakonda, managing director, Sales and Customer Services, Accenture Strategy. “Companies that act now to enhance their understanding of changing rural consumer behaviors and tailor their marketing, selling and service strategies to these consumers’ shifting realities will gain a competitive edge over those who wait until the market evolves further.”
Trustpoint 1 — Need recognition: Target the right consumers according to their means. Show how offerings address their unique needs through simple and entertaining marketing.
Trustpoint 2 — Awareness: Include non-traditional media in marketing that conveys consistent messages across multiple channels.
Trustpoint 3 — Consideration: Define an irresistible value proposition that looks beyond pricing as a long-term source of differentiation, especially for products categories that are new to rural consumers.
Trustpoint 4 — Validation: Identify and engage the most relevant influencers for targeted consumer segments to strengthen trust through word of mouth.
Trustpoint 5 — Purchase: Offer expert advice and differentiated service to enhance the in-store experience as rural consumers increase their purchase expectations.
Trustpoint 6 — Experience: Differentiate by offering exceptional customer service across the purchase journey to maintain loyalty well beyond the point of transaction.
Trustpoint 7 — Advocacy: Nurture consumer advocates by promptly addressing problems to preempt negative word of mouth.
Name : Rasika kashid
USN : GIT20MBA036-T
ROLL NO: 82 ( Division : B)
The rural market of India started showing its potential from the 1960s and the 70s and 80s showed its steady development. During 90’s, there was a steady growth of purchasing power of rural India, and there are clear indications that the 21st century is going to see its full blossoming. In our country, where research on consumer behavior has been limited to names only, not much synchronized information is available about the rural consumers. Only a few big companies known for their marketing orientation, for example Hindustan Lever, Philips India, Asian Paints, Larsen and Toubro, TATA group have made concrete efforts in this direction.
There are many aspects that affect rural marketing, for instance, the rural buyers are not very discriminating. Once they are persuaded to buy a particular product, they develop a strong felling for it, and become brand loyals. As a result, Indian manufacturers generally prefer selling fewer items at higher prices than selling more items at lower prices.
Another thing is that the rural buyers are not particularly keen about quality and packaging because of which consumer research is not accurate for entering the rural market.
In recent years, the rural sector gives a unique opportunity to expand their market since the urban segment is showing clear signs of saturation. The nature and characteristics of rural market is quite different than the urban market. Therefore, it is necessary to understand the rural area characteristics and environment and take action accordingly.
Rural Market and Marketing
India is a land of diversity and about 70% of the population lives in villages. To a large extent, villages contribute towards the economic development of the nation through the production of food grains, vegetables, fruits etc. Export of these agricultural products generate capital and earnings from foreign exchange. There are approximately 600,000 big and small villages in India according to rural market researchers. 25% of villages account for 65% of the total rural population. So we can calculate 65% of 700 million populations by from only 150,000 villages – which becomes a huge potential of this market.
If we go by statistics, around 70% of the Indian population lives in the rural areas. This accounts to almost 12% of the world population.
To expand the market by making inroads into the countryside, more number of MNCs are getting into India's rural markets. Among those are the bigshot companies like Hindustan Lever, Coca-Cola, Pepsi, LG Electronics, Britannia, Philips, Colgate Palmolive and the foreign-invested telecom companies as well.
Rural marketing involves a bunch of processes that includes developing, pricing, promoting, distributing rural specific product and service which satisfies the consumer demand and also achieves organizational objectives as expected from the target market. It is basically a three-way marketing stage where the transactions can be −
Urban to Rural − It is a process of selling the products and services by urban marketers in rural areas. These products mostly include pesticides, FMCG products, consumer durables, etc.
Rural to Urban − It is a process where a rural producer sells his products in urban market. This may or may not be direct, but mostly there are middlemen, agencies, government co-operatives etc. who take initiatives in the successful running of the selling process happen successfully in an appropriate price.
Rural to Rural − It is a process which includes selling or exchange of agricultural products, tools, cattle, carts and others to another village in its proximity.
Name : Tejaswee Jadhav
USN : GIT20MBA095-T
ROLL NO: 113 ( Division : B)
Rural sector which was once disdained by one and all due to the uncivilized and barbarian
culture, amenities and demeanor has recently come into global limelight. It is consistently
showing promising signs of shining in the near future. Once ignored, it is now receiving
undivided attention and strong impetus from the government, various foreign and domestic
companies. Right now, the urban problem of work-life balance, home cooked food and
cleanliness is a major concern that needs insightful solutions to be implemented. Foreign Brands
like Maggi, Dairy-milk, Sunsilk, Fair-and-Lovely, etc. are coming to the rescue. They are
becoming much needed. Rural Retail is vulnerable and thus, has abundant opportunities for the
numerous market leaders.
The rural prosperity is the opportunity and an ethical onus for global marketers. The proposition
is, ‘Rural India as a growth driver for the future’ rather than ‘Rural India as an attractive market
today’.
Although rural India is filled with opportunities, tapping them is not an easy mission. There are
various hurdles in the way such as ,
1.Lack of effective education
2.Not enough motivation
3.Preferences
4.Aversion to technology
Rural Indians who are largely simple and literal beings, won’t be attracted to a brand name they
can’t even pronounce, much less understand. The company must keep it in mind while trying to
market its product in rural India. marketing communication must focus on mass
consumption. Many of the foreign brands that target mass consumption have their tagline in local
language. E.g. Coca-Cola: ‘Aaj tu jashn mana le’, or Cadbury’s: ‘Kuch meetha ho jaaye’.
Rural India represents a raw diamond that is
simply in the need of a good, thorough clean. With some efforts from the government, along
with various companies interested in tapping rural, this region can be a complete hit on all fronts.
Up until now, it has not been deemed fit by companies, due to a very archaic view of rural, but
now; various parties across the globe are realizing the potential of rural India. The rural
consumer is also changing. It is now gradually getting over its apprehensions about “city
brands”. The rural consumer is becoming slowly modernized and ready to go digital in the near
future. By facing some of the challenges this region presents, any company can easily reach new
height, by using rural as its incubator.
Name - Shrinidhi P Kolhapur
Roll no - 95
Div - B
USN - GIT20MBA053-T
It is very difficult to sum things up in an answer as we are talking about a broad topic across a vast geography but I will try my best to share my learnings.
Price Matters,
When we look at the purchase decision journey of a typical rural Indian house hold, price dominates all the parameters as they are yet not willing to pay premium for a brand name. But there are some exceptions, especially old brands which have become synonyms to category itself - Maggi, Colgate, Tide etc. Though even these brand face tough competition from similar looking products sold at cheaper rates or higher margins for Retailers. Brand Loyalty here is very very limited.
Secondly, quantity matters as well. Major chunk of this population earns on daily basis, hence they cannot afford buying bigger SKUs. This is exactly why sachets turned out to be a huge success.
There are a lot of minor parameters that come into picture but these are the main ones.
There are three main shifts taking place — spending on services; focus on income generating spending and the changing role of women in spending decisions.
1) Services to the fore
In the last few years the typical consumption basket of a rural household has seen a marked shift towards spending on services v/s goods. Starting from education, telecommunications, entertainment, healthcare, financial services or information. It’s all about services.
2) Income generating spending
Consumer preferences have evolved over the years and the rural consumer has become much more savvy. The repeated droughts or unseasonal rains and low crop prices have contributed to this sense of discipline when it comes to spending. Villagers are much more conscious of how and where they spend their incremental dollar of income. They are prioritizing spending on goods or services which can help them boost their incomes.
3) Changing role of women in driving spending decisions
Last but not the least — women are playing a much larger role not only in earning but therefore also in spending. It should not come as a surprise that women are contributing more to the income of the household as well. Whether it is by working in aanganwadis or schools or joining Self-help or join lending groups to start small businesses. They have become an important contributor to the rural household income.
Name: Suprit Suresh Naik
USN: GIT20MBA091-T
Roll no: 109 (Division: B)
The idea of Rural Marketing in Indian Economy has always played a significant role in the lives of people. The rural market in India brings in greater revenues in the country, as the rural regions comprise of the maximum consumers in this country. Indian rural marketproduces almost more than half of the country’s income.Indian Rural Marketing has always been difficult to predict and consist of special uniqueness. However many companies were efficacious in entering the rural markets. They bagged the market with its proper understanding and innovative marketing ideas. It is very challenging for the companies to overlook the opportunities offered by the rural markets. As two – third of Indian population exists in rural areas, the market is much unanticipated for the companies to be effective in rural markets. They have to overcome few challenges such as pricing and distribution. The present paper aims to know the status of rural market in India, the identification of different rural marketing strategies, to highlight the opportunities and challenges of rural marketing in India. The main aim of this study is to observe the potentiality of Indian rural markets and finding out several problems being faced by rural markets.
Rural marketing in Indian is still in its infancy stage. its in an area after darkness to Indian entrepreneurs, although, with its immense size and demand base, its offer plethora of opportunities to marketers .more then 70 percent of the country’s consumers are in the rural market more than half of the national income is generated here. the indian rural market bigger and vast in size with its large consumer base
Out of the total of 1210.2 million population in India, the size of rural population is 8333.1 million which constituted around 70% Of rural populations as per census survey of 2011
During 2001-2002 the rural population improved byn90.4 million and the number of villages increased by 2279 in between 2001-2002.the majority of world's rural population breathes in rural India
According to the national commission on agriculture 'Rural Marketing is a process which starts with a decision to produce a saleable farm commodity and its involve all the aspects of the market structure or system both functional and institutional, based on technical and economic considerations and includes pre and post-harvest
Operations,assembling grading, storage transportation and distribution
Name:Akshata B Nalattawad
Roll No:09
Div: 'A'
USN:GIT20MBA076-T
Rural markets are witnessing value growth . that is rural consumers are willing to go for premium brands in any product category. Rural market is providing ample options to its consumer in terms of tastes choices which are changing . The three most important factors are change in consumption pattern change in life style change in consumption pattern change in life style change in behavior of rural consumer. in this regard many large sized corporations have seen great success in rural areas because of innovative strategies like smaller packaging fast moving consumer goods FMCG companies have creams and soaps priced at Rs 5 hair oil and shampoo sachets at Re 1 and small coke at Rs 5 customized development and positioning and a good distribution network the rural india success story is being replicated across a range of sectors in the rural markets thus the sales of FMCG products in rural markets is growing at a fast pace even faster that that the urban markets nielsen estimates that by 2025 the fast moving consumer goods FMCG market in rural india will hit 100 billion and that inflation and pricing will be outstripped by consumption.
India is growing at an average annual rate of 7.6 for the past many years and it is expected to continue growing at an equal if not faster rate/ the rapid economic growth is increasing and enhancing employment and business opportunities and turn increasing disposable incomes. the rural consumers in idea account for about 73 percent of the total consumers. in recent years the lifestyle of a large number of rural consumers is influenced by several factors such as socio economic conditions cultural environment literacy level occupation geographical location efforts on the part of sellers exposure to media etc. as the benefits of growth tickle down an increasing number of people are moving up from the economically weaker class to join the middle class the middle class with its rising numbers and incomes is thus becoming the biggest market segment the affluent class to will continue to grow in terms of size and value albeit at a slower pace than the middle class most of the companies are going rural because of large and diverse markets increase in literacy level and changing life style of the people even globalization and liberalization expanded the indian rural market.
several studies have sows that rural consumers are generally ignorant and they are also un orgnised under these circumstances the sellers or the manufactures exploit the consumers though the consumers in india have been provided with various safety measures against their exploitation.
The changing shape of income distribution suggests growth in rural incomes which in turn should herald a consumption boom now a days liberalisation comfort with technology changed attitude of people especially middle income group along with rise in aspiration the rural india is going beyond agriculture and is creating a new market for mass consumption the figure given below depicts that with the increase in income the rural people are moving form lower to lower middle lower middle to middle middle to upper middle and upper middle to upper level as far as income and spending are concerned.
Name : Abhijeet Patil
Roll No. : 01
USN : GIT20MBA015-T
Div : A
Assignment 2
How consumer aspirations are changing in rural market of India??
India's Rural Consumers Are Changing Fast.
New attitudes, priorities and behaviors are reshaping the purchase
decisions of India's rural consumers. These consumers are becoming far
more aspirational, networked and discerning.
A Research found that rural consumers in India are waiting to be served in
new ways, and with new offerings. They have already started deciding
which brands they will pledge their loyalty to. What can companies do
to lock in these consumers' loyalty before their competitors can?
Researcher believe that companies must augment their physical reach by
understanding the minds of these customers what they really want and
why.
The Changing Realities of Rural India
Companies will have to let go of longstanding assumptions about rural
Indian consumers that have prevented them from understanding who
these consumers really are and establishing long-lasting brand
relationships with them.
Three Broad Dimensions Characterizing Change In Rural
Consumer Behavior
A research identifies nine behavioral characteristics emerging among
the rural consumers in India. These have been organized into three broad
dimensions:
1. Aspirational
2. Networked
3. Discerning
1.Aspirational
As incomes of India's rural consumers rise, they want to provide their
children with a better future through education and healthcare. In
addition, their shopping basket has begun resembling that of their urban
counterparts and includes products from categories they have not
purchased from in the past.
In the process of becoming more aspirational, rural consumers in India
are now:
Brand Savvy: Willing to invest in branded products to ensure quality
Trading Up: Want more features and better product designs to boost
social image
Explorers: Adopt new categories, using multiple channels
2.Networked
Rural consumers operate as members of tightly-knit communities, with
word of mouth playing a powerful role in their purchase decisions.
Today, they have greater access to mobile Internet, and consume the
same media–music, TV, movies–as urban consumers
As they grow more networked, rural consumers are increasingly
becoming:
Connected: Increased online and offline interaction with urban
counterparts
Empowered: Active role of women in decision making
Proactive: Seek information through multiple sources
3.Discerning
Rural consumers no longer fall for fraudulent retailer tactics or blindly
accept a product only because it is low priced. At the same time, they
will not buy an expensive offering unless they are convinced of its utility
and longevity.
In their judgment, they are:
Street smart: More aware, not prone to fraudulent schemes
Value seeking: Evaluate total value of investment, not just price
Social: Information sharing with strong peer effect
Name:Seemaanjum Makandar
Roll No : 89
USN : GIT20MBA094-T
Dib : B
New Attitudes, Priorities and Behaviours are reshaping the purchase decision of India’s rural consumers. These consumers are becoming far more aspirational and are changing rapidly.
We can say that Aspirations of consumers in rural market are changing based on the 4A’s of Marketing, this approach is organized around the values that matter the most to customers: Acceptability, Affordability, Accessibility and Awareness.
Acceptability: the rural market consumers have growing aspirations; they are price sensitive; they are highly value conscious: in the case of consumer durables, this translates into high functionality in terms of the product being durable and fitting multiple uses. In terms of the product fitting into the rural customer’s requirements, a research found that rural customers purchased motorcycles specially to attend social functions with families and to carry various products such as agricultural produce; hence for the rural customer, it is not so much the appearance and the style of the motorcycle that matters, as is its load carrying capacity.
Affordability: The rural market consumer is price sensitive and expects value for money. This has led to the success of various sachet packaging-whether in personal care products, such as shampoos as demonstrated by CavinKare’s Chic shampoo sachets or even in the case of insurance such as one which Max Vijay offers with sachet purchasing with small, frequent payments made to the local retailer.
Accessibility: The Rural Consumer Needs Accessibility to all kinds of products which are also used in Urban Markets, but it is difficult to find them as there are no proper transportation facilities to the villages nor a proper grocery shop or supermarket. But companies are using a variety of strategies to extend their distribution networks into rural India. The most successful companies, though, have adopted a multipronged approach. For instance, ITC uses smaller scale sub-distributors who carry a narrower assortment of products catering to local tastes for rural areas with populations of 10,000-20,000 with adequate transportation infrastructure.
Awareness: Rural market consumers require novel treatments for promoting products and gaining customer awareness. For instance, Asian Paints selected some opinion leaders in the villages and painted their houses to demonstrate that the colour does not come off; Life Insurance Corporation of India made use of puppet shows to create awareness amongst the rural people regarding the importance of insurance products; ICICI Prudential promoted its product in the haats, mandis, and other local markets organised in the rural areas. It also educated the rural people by advertising through mobile vans. Many companies use folk theatre formats as a means to promote their products. The Government of India utilised this medium for selling seeds and fertilisers, due to which the rural consumer is aware of the latest products, trends, technologies which results into changing aspirations.
Conclusion: Rural consumer is price sensitive enough such that they would purchase stripped down products with inadequate features. In fact, the rural consumer has more specific requirements for features to suit their more challenging living conditions in India, as demonstrated with the success of Nokia phones with built in torch. To appeal to the rural consumer, the key is to recognise that they are value conscious consumers, who seeks value and not necessarily low price.
Name: Amruta Vaze
Roll No: 13
USN: GIT20MBA081-T
Sem: 1st Div: A
It is a group that accounts for 12.2% of the world’s population and is responsible for about 50% of the country’s GDP. Rural areas, according to Nielsen, is growing at around 1.5 times the rate of urban areas, with today’s USD$12 billion consumer goods market in rural India expected to hit USD$100 billion by 2025.
High-profile metro hubs such as New Delhi, Mumbai, Chennai, Bangalore and Hyderabad have oftentimes been touted as prime examples of India’s rapid march towards a digital and hyper-connected economy.
But beyond these urban hubs lies the rest of India – an emerging wave of consumers, entrepreneurs and families whose lives have been irrevocably changed by development, technology and the unceasing march of global commerce.
It is a group that accounts for 12.2% of the world’s population and is responsible for about 50% of the country’s GDP. Rural areas, according to Nielsen, is growing at around 1.5 times the rate of urban areas, with today’s USD$12 billion consumer goods market in rural India expected to hit USD$100 billion by 2025.
High-profile metro hubs such as New Delhi, Mumbai, Chennai, Bangalore and Hyderabad have oftentimes been touted as prime examples of India’s rapid march towards a digital and hyper-connected economy.
But beyond these urban hubs lies the rest of India – an emerging wave of consumers, entrepreneurs and families whose lives have been irrevocably changed by development, technology and the unceasing march of global commerce.
Name:Shashank Math
Roll no:91
USN:GIT20MBA058-T
DIV:B
The market of India has been witnessing a lot of changes especially with the advent of many global firms. These changes have been with regards to a higher penetration of the mass media, wide communication network availability of various categories and brands of goods and services increased, purchasing power leading to higher disposable income and a complex buying behaviour displayed by consumers at the market place. While firms are trying to deliver superior innovative and value added products and services in their attempt to delight the customers, they have realized that the key to understanding consumer behaviour lies in identifying those vital elements which derive a positive consumer value and work out the entire marketing programme to deliver that unique value. Internet makes life simple and innovative. People are doing business online and trade has become more easy and fast due to this. Internet provides new ways to promote business. Website becomes the essence of online business as to show their services and products. Internet gathers all competitors and consumers in one place. It brings new lane to promote, advertise products and services in market. All this has resulted in the growth of consumer’s aspiration levels and their seeking right value and a certain lifestyle from the various products and services offerings. The challenge before marketers is to offer products, which will provide them the desired value satisfaction in this age of constantly changing consumer behaviour and aspirations.
Name :Nikita Sampath Korde
Rollno.:62
USN :GIT20MBA100-T
Sem:1st Div:'B'
Assignment 2
India’s rural economy constitutes nearly half of India’s national income. Despite growing urbanisation, more than half of India's population is projected to be rural till 2050. Thus, growth and development of the rural economy and population is key to the overall growth of India.
Although rural marketing is a tough cookie to crack, the opportunities and potential for growth is
Immense.Things we need to do to improve the rural market are:
• Increase Consumer Perceived Value: The idea is not to deploy low technology to deliver
products with poor consumer perceived value at low prices. The objective is to use first rate
consumer insight and sophisticated business process thinking, to innovate products which
have high consumer perceived value, delivered via low-cost business system.
• Consumerism: It is the next big leap in this rural market owing to the expanding middle
class.
• Inculcate brand awareness and brand following: The rural populace needs to be made
aware about the brand, and how it will help them in developing their quality of life. The ease
which can be brought to them with the help of the brand needs to be communicated to them.
• Probe in and profile the consumers: All customers are not the same and neither are their
pressure points. Each and every person of the rural populace has different sets of needs and
requirements. The company which intends to market its product in rural India, must segment
the population and target the group that is most likely to buy its products.
• Return on Investment: Deliver ‘value for money’. The Indian market is ‘price sensitive’
viz-a-viz ‘quality conscious’. Therefore, the company must be very sure that the prices it has
attached to its products and services are fair and genuine.
• Visual Delight: Visual Merchandising and store design must be kept in mind while working
with Rural India. The customer is a highly visual creature. Without a pretty picture presented
to him, he won’t budge.
• Growing Purchasing Power: Commercial agriculture has revolutionized this sector. It has
augmented productivity and income manifold. This is because contract for production of
crops, livestock, fisheries, etc. is enclosed between the buyer and seller. The farmers are
assured of markets for their harvest/products. Cereals production of rice, pulses, spices, juice,
etc. is a growing market.
- Namrata Pandit
- Roll No – 60
- MBA 1st year ‘A’ division
- GIT20MBA055-T
Rural markets have grown both in income as well as consumption and have created enormous interest among industries like FMCG, retailing, consumer durable, automobile and insurance etc.
Key drivers of rural market growth are
1) Higher income
Which includes crops diversification such as biotech products, horticulture etc higher commodity prices, organised retailing and contract farming, government schemes like NREGA, subsidy on seeds and fertilizers etc this factors improving the financial level of rural people.
2) New Aspirations
Mainly through more exposure to urban products and services due to literacy, media, migration etc demand for urban type product is increasing. Aspiration for
Better quality of life as product become affordable and better informed due to projects such as e choupal program of itc.
3) Improvement in infrastructure and rural connectivity
Several government schemes have been launched in past couple of years related to rural housing, road connectivity, drinking water, rural electrification etc. These have considerably improved the living conditions of rural population
and have led to increase in the demand of automobile, consumer durable goods like mobile, television,air cooler.
4) Growth of rural consumption
Due to easier availability of credit, lowering prices of consumer durable goods, increase in rural saving, improvement in literacy, urban association due to migrants driving sale of footwares,FMCG products etc. Easy availability of branded products die rural organised retail such as haryali bazar,godrej Aadhar.And availability of low price product due to technology improvement.
Name- Akash Deshpande
Roll no- 08
Div - A
Usn - GIT20MBA082-T
• With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook.
• Following are few of the changes regarding market aspirations in the rural areas.
• Large Population: 742 million Indians constituting 138 million households reside in 6,38,365 villages (Census, 2001). The size of rural market itself speaks of its potential.
• Growth in Market: The market has been growing at 3-4% per annum adding more than one million new consumers every year. Consumer is brand loyal and understands symbols better.
• IT Penetration in Rural India: Today's rural children and youth will grow up in an environment where they have 'information access' to education opportunities, exam results, career counseling, job opportunities, government schemes and services, health and legal advice and services, worldwide news and information, land records, mandi prices, weather forecasts, bank loans, livelihood options. If television could change the language of brand communication in rural India, affordable Web connectivity through various types of communication hubs will surely impact the currency of information exchange. As the electronic ethos and IT culture moves into rural India, the possibilities of change are becoming visible.
• Impact of Globalization: The impact of globalization will be felt in rural India as much as in urban. But it will be slow. It will have its impact on target groups like farmers, youth and women. Farmers, today 'keep in touch' with the latest information and maximize both ends. Animal feed producers no longer look at Andhra Pradesh or Karnataka. They keep their cell phones constantly connected to global markets. Surely, price movements and products' availability in the international market place seem to drive their local business strategies. On youth its impact is on knowledge and information and while on women it still depends on the socio-economic aspect. The marketers who understand the rural consumer and fine tune their strategy are sure to reap benefits in the coming years. In fact, the leadership in any product or service is linked to leadership in the rural India except for few lifestyle-based products, which depend on urban India.
• Increasing Income and Purchasing Power: The agricultural development programs of the government have helped to increase income in the agricultural sector. These in turn have created greater purchasing power in rural markets.
• Accessibility of Markets: The attraction of a market depends not only on its potential but also on its accessibility. The road network has facilitated a systemized product distribution system to villages. An increasing number of companies are supplying village markets directly. Increasing direct contacts to villages helps product promotion and availability of the product in the village shop.
• Consumer Behaviour Changes: Increased literacy and greater awareness in rural markets create new demands and discriminating buyers. This is observed more in the younger generation. In villages today, this segment of buyers consumes a large variety of products, both durables and non-durables. There is a visible increase in the consumption and use of a variety of products, which is easily observed.
• Competition in Urban Markets: Intensified competition in urban markets increases costs and reduces
market share. The rural markets are therefore increasingly attractive in relation to urban markets. The automobile market brings this out clearly. Rajdoot motorcycles, Bajaj scooters or Ambassador Cars find ready acceptance in rural markets as compared to urban markets where there is a proliferation of brands.
Name: Sairaj Pissurlekar
USN: GIT20MBA044-T
Div: B
Roll No: 68
Rural markets have become integral part of global market. The rural markets are growing at above two times faster pace than urban markets. To explore and understand rural market is crucial for any marketers today. Rural market is like goldmine with lot of difficulties. Thea growing power of the rural consumer is forcing big companies to flock to rural markets. The rural market in India is currently witnessing an impressive growth primarily because of the significant improvement in purchasing power, increasing brand consciousness, and spread of proper communication network and rapidly changing profile of the rural consumers.
Indian economy comprising of both urban sector as well as rural sector. And concept of rural marketing in Indian economy has always played an influential role in the lives of people. In India, leaving out a few metropolitan cities, all the districts and industrial townships are connected with rural markets. The rural market in India is not a separate entity in itself and it is highly influenced by the sociological and behavioural factors operating in the country.
With the rapid pace of technological improvement and increase in peoples buying capacity, more and better goods and services now are in continuous demand. The liberalization and globalization of the Indian economy have given an added advantage to sophisticated production, proliferation and mass distribution of goods and services.
The reasons for changing aspirations of rural people,
• Rural purchasing power has grown faster than urban in the recent years. Rural Indian economy is highly supported by increasing disposable income, Government initiatives and schemes and favourable demographics.
• Rural consumers are consuming more premium and convenience oriented categories that are typical of their urban counterparts.
• Literacy level of rural area is increasing with the help of internet and through the education people in rural areas are imparted with knowledge about the market and its environment which inturn has lead to rural people increasing their lifestyles .
• The rural people are also willing to buy expensive products for better quality.
• Rural people are attracted to mobile marketing.
• Companies packaging smaller packages are more popular in the rural areas.
Name :Annapurneshwari G Gaddi
Roll no : 17
Div :A
USN:GIT20MBA026-T
Name:- prateek h
Roll no :-71
Div:- B
India’s rural economy constitutes nearly half of her national income. Despite growing urbanisation, more than half of India's population is projected to be rural till 2050. Thus, growth and development of the rural economy and population is key to the overall growth of India. Connectivity (infrastructure and telecom), healthcare, education and income generation are important areas.
These focused development initiatives makes the rural sector an appreciating asset. It is home to highly aspirational consumers, who are likely to be the future citizens of urban centres or the smart cities. Brands and corporates should look at the rural sector as an opportunity to connect with their future city cohabitants, through purpose-led brand engagement or behaviour adoption in the same way as you look at your child’s nurturing. Returns are both short term and long term, though in different forms.
Aspiration breaks the distance barrier between the two India’s. When a child is unwell, both the rural and the urban mother have the same set of emotions and reactions. Expressions may differ based on their exposure, education and income but the aspiration levels are not different. It is all about understanding of both levels of emotion-based actions.
Every new highway is putting the rural consumers on the “super-ways” — faster mobility resulting in frequent connectivity. Every megabyte of data is diminishing the border and divide, not only between the rural and the urban but the rural and the overseas markets too. Television soaps are fuelling the aspiration for expression (mind, body and relationships). The other aspect is access to goods and services, thanks to the expansion of distribution channels by various companies besides the access to credit. Rural incomes are rising and this in turn is increasing consumption.
Rural markets are delicately powerful. Certain adaptations are required to cater to the rural masses; they have unique expectation and warrant changes in all four parameters of product, price, promotion and distribution. A lot is already emphasized on adapting the product
and price in terms of packaging,flavoring, etc and in
sachets, priced to suit the economic status of the rural India in sizes like Rs.5 packs and Re.1 packs that are
perceived to be of value for money.
This is a typical penetration strategy, which promises to convert the
first time customers to repeated customers. The promotion strategies and distribution strategies
are of paramount importance. Ad makers have learnt to leverage the benefits of improved infrastructure and
media reach.
The television airs advertisements to lure rural masses, and they are sure it reaches the target audience, because majority of rural India possesses and is glued to TV sets! Distributing small and medium sized packets through poor roads, over long distances,
into deep pockets of rural India and getting the stockiest to trust the mobility is a Herculean task
Giving the confidence those advertisements will support. Sales force is being trained to win the confidence of opinion leaders. Opinion leaders play an important role in
popularizing the brand.
They sometimes play the role
of entry barriers for new products. The method of promotion needs to be tailored to suit the expectations
of the market.
Name sujay Walvekar
Roll no 106
Usn GIT20MBA093-T
When a bicycle maker chanced upon a village in Rajasthan that believed in gifting the groom a bicycle on his wedding day, it believed it had struck gold. But soon it realised that there was something peculiar about the custom. The colour black is considered inauspicious and so gifting a bicycle without any black part was proving to be difficult. After all, you can’t do away with wheels or chain of a bike. Villagers were buying bicycles and painting over the black parts in a bid to keep the tradition alive. This is when the bicycle manufacturer decided to introduce an all red and silver bike to the village. Yes, even the wheels were red. The bikes were, obviously, a raging success.
In that case, how would a marketer go about marketing his/her products?
The rural consumer was, by default, assumed to be poor, with little or no education and limited purchasing power. But that perception is changing. Brands are starting to realise that the rural consumer is as diverse and different as the urban consumer and that they too have the purchasing power that they are looking for. It isn’t surprising then that brands are looking beyond metros and trying to increase their footprints in rural India.
“Brands should resist viewing rural Indian consumers as a homogeneous group. There are various segments of consumers within India’s hinterlands and each consumer segment is different from the other. Rural demand is largely driven by agricultural harvest unlike the salaried class in urban India. Our approach is to win our consumers’ trust by understanding what their needs, gaps, pain points are and then accordingly customising our strategy and offerings to meet their expectations,” said Nandagopal Nair, Vice-President, Corporate Communications, V-Guard Industries Ltd.
With all these factors, making rural an alluring market for marketers, what should marketers keep in mind when trying to reach rural consumers?
Simplicity:
Simplicity seems to be the universal code when it comes to reaching out to a rural consumer. Communication has to be crisp, simple and should serve a purpose. Giving the example of an ad by Nokia for their 1100 handset, Sridhar said, “The rural consumer then, used to look at mobile phones as a luxury. So, they came up with a campaign which talked about the features of the phone, essentially giving out the message that it is not a vanity product.”
Consumption pattern:
According to a leading marketer, one of the key difference between rural consumers and urban consumers is their consumption pattern.
“Rural consumers are more likely to consume smaller packs. One-rupee packs of products like shampoos and smaller packs of toothpaste get consumed more in rural areas. One reason for this trend could be the fact that people in rural areas earn money more on a daily or a season-to-season basis rather than a monthly basis. For example, a farmer will make money when his yield is good. Whereas an employee in an urban setting gets a monthly salary,”
Influencers:
A leading finance company of the country, when giving loans on vehicles like tractors or trucks, started enlisting the people who they were selling their loans to as their brand ambassadors. Once, the person had paid off his/her loan, the company would ask them to go to neighbouring villages and take the people over there through the company’s schemes and services. Thus creating a credible brand ambassador for themselves.
Packaging:
“It is important to reach out to the rural consumer in his/her language and I am not talking about the text here. It is possible that a rural consumer understands the language of colours. Visual appeal is very important. In fact, people go to stores and ask for products based on colours or the packaging,” said Rao.
It is, therefore, important to understand and consider the rural audience as a separate entity and try to create communication specific to their needs and wants and not peddle something that worked for them in the urban markets.
Name:Prajakta Bijapure
Roll no:69
DIV:B
In our country, where research on consumer behavior has been limited to names only, not much synchronized information is available about the rural consumers. Only a few big companies known for their marketing orientation, for example Hindustan Lever, Philips India, Asian Paints, Larsen and Toubro, TATA group have made concrete efforts in this direction.
There are many aspects that affect rural marketing, for instance, the rural buyers are not very discriminating. Once they are persuaded to buy a particular product, they develop a strong felling for it, and become brand loyals. As a result, Indian manufacturers generally prefer selling fewer items at higher prices than selling more items at lower prices.
Another thing is that the rural buyers are not particularly keen about quality and packaging because of which consumer research is not accurate for entering the rural market.
In recent years, the rural sector gives a unique opportunity to expand their market since the urban segment is showing clear signs of saturation. The nature and characteristics of rural market is quite different than the urban market. Therefore, it is necessary to understand the rural area characteristics and environment and take action accordingly.
The concept of refill packs of toothpowder, tea, talcum powder and other FMCGs are promoted by the marketer as the money saving options. Consumers once purchase the product which is packed in bottle of either plastic or glass and then they need not purchase a whole new bottle for their next use. They can just refill the bottle with refill packs which comes in poly packets. The price of such refill packs is lower than the price of the products that are available in bottles. Such strategy works well in case of toothpaste, powder, spices, health drinks etc.
Because of interrupted power supply in rural areas; it is also a point to work on for marketers to make proper arrangements for storage of products which require special storage like ice creams and cold drinks etc.
Companies now provide ice boxes to retailers of remote areas for storage of cold drinks, ice creams etc. Those ice boxes are usually made of thick thermocol and keep the products always cool and also increases their shelf life.
Most rural families don’t yet have consumer durable products like televisions, washing machines, gas stoves, refrigerators, etc. So there is a big potential market waiting to be served. But this all huge market will not accept existing models of these consumer durable products because of the following reasons
In India, most of the villages do not have reliable supply of electricity. Many villages may be connected to the grid but the supply is very erratic.
Rural people have been managing their lives with or without these consumer durable products and most of the rural people consider such products to be for luxury. To make them buy these products, these products have to be priced low. The best way to enter rural markets is by offering them simple, functional and less price products.
Name Adarsh Naik
Roll no. 03
Div A
The idea of Rural Marketing in Indian Economy has always played a significant role in the lives of people. The rural market in India brings in greater revenues in the country, as the rural regions comprise of the maximum consumers in this country. Indian rural marketproduces almost more than half of the country’s income.Indian Rural Marketing has always been difficult to predict and consist of special uniqueness. However many companies were efficacious in entering the rural markets.
The rural markets offer huge opportunities for enhancing businesses. In spite of much scope for business development very less attention has been paid for the development of rural marketing concept. Further, under developed market, people, infrastructure, communication,transport and many more factors have contribute for the unbalanced growth of rural markets.
The researcher has consulted secondary sources of literature for the development of the title.
The market surge is accompanied by a diminishing difference in the expectations of rural and urban customers. Such a scenario makes it imperative for dealers to offer services that meet expectations of the rapidly evolving consumer, particularly those in the rural areas.
Rural India has changed and continues to change. Marketers need to get reacquainted and redefine the relationship or risk missing out on what could be the biggest consumer tsunami since, well, China.
Rashmi Malapur
Roll no 81
Div B
New Attitudes, Priorities and Behaviours are reshaping the purchase decision of India’s rural consumers. These consumers are becoming far more aspirational and are changing rapidly.
We can say that Aspirations of consumers in rural market are changing based on the 4A’s of Marketing, this approach is organized around the values that matter the most to customers: Acceptability, Affordability, Accessibility and Awareness.
KEY DIFFERENCES BETWEEN URBAN AND RURAL USERS
There are significant differences between rural and urban Internet users that marketers need to take into account.
Primarily for reasons of cost and network availability, almost two-thirds of rural users go online using inexpensive Internet-enabled phones (also known as feature phones) connected to 2G or sometimes 3G networks. Only about a quarter of these users have smartphones and only 10% use PCs or laptops. In urban areas, by contrast, almost two-thirds of users own smartphones, and another 20% use PCs or laptops. Rural usage patterns will change over time as device prices drop and faster networks are deployed. But in the near term, the experience for the vast majority of rural users will remain fundamentally different from that of their urban counterparts—the users for whom companies have so far been developing digital marketing strategies and campaigns.
The market surge is accompanied by a diminishing difference in the expectations of rural and urban customers. Such a scenario makes it imperative for dealers to offer services that meet expectations of the rapidly evolving consumer, particularly those in the rural areas.
Name:Sachin koppad
Roll number:83
Div:B
USN:GIT20MBA037-T
There is a lot of changes in consumer aspirations in rural market of India. Rural consumers are looking for products that will take their specific needs and environmental limitations into account. Though there are several difficulties in targeting the rural market but still almost all companies are rushing towards these markets because there have been drastic and favorable changes in rural markets like improving lifestyle, taste,increasing literacy level,increase in income, increase in expectations and aspirations. Nowdays Rural consumers are having branded products and major brands are available in Rural market of India. In rural area people are shifting to occupations like skilled work and salaried job. Skill up graduation in rural region is improving with exposure to new technology. Rural consumers are more cautious than the urban consumer. Since the availability of information is less the involvement and efforts taken by rural consumer is more.They purchase products from the point of view of utility and Quality.There has been a boom in communication too. The rural consumer of today is different buyer than ten years ago and the consumers of rural market is developing more than urban consumer.
Mansi Chinchani
Roll No–54
Div-A
There are major investments and development in the Indian rural sector. Like Tata motors, it plans to widely expand its network in the rural markets.It is the biggest expansion by a passenger vehicle maker in the country so far.
Online sites and channels are viewed for companies as a gateway to break into the rural market. The internet is an effective means of broadening the expansion of various companies into the rural sector.As incomes of India's rural consumers rise they want to provide the children with a better future through education and healthcare.
In addition to this the rural shopping market has also began to resemble the urban parts and also includes products from categories they have not purchased from in the past. Rural consumers are increasingly becoming connected, empowered and proactive. Growing access to internet and mobile technology is driving rural consumers to use the internet for better purchase decisions, demand quality as well as value, buy brands and look beyond the price tag, seek customised consumption experiences and look for good after sales services. The influence of internet on the purchasing process is already becoming a significant factor in rural areas. Almost 15% of rural consumers use the internet to research products, purchase a product or register satisfaction or dissatisfaction with a product after the purchase is made compared with 30% of urban consumers. The degree of digital influence is as high in rural areas as it is in cities. Online commerce is in its infancy in rural markets but is increasing fast. The FMCG sector in rural and semi urban India is estimated to cross hundred billion dollars by 2025. Among the leading retailers Dabur generates over 40 to 45% of its domestic revenue from rural sales.
Earlier marketers believed that what sells in urban India is too sophisticated and special products would be required for rural, created at a lower cost and with great durability. Today rural consumers want exactly what is selling in the urban market. They won't settle for anything less or different. Rural market will not compromise on brand or quality this has made the job of consumer goods companies easier because today they are focusing on reaching villages and creating relevance as opposed to having to re-invent the product itself. It is clear that India lives in villages and government is developing the life of villagers to make them more and more luxurious. The development is not only evident in metros it is apparent in small towns and villages as well. There is no question that India's rural markets are becoming a powerful economic engine for every new opportunity for a villager to use his mobile phone to protect his crops, there is a knock on opportunity for him to purchase a small refrigerator or a motorcycle. Consumption patterns in these areas are also gradually becoming to mirror those of the urban parts moving to the changing trend as well as size of the market. Rural India provides a tremendous investment opportunity for private companies. The Government of India seeks to promote innovation and technology development in rural and tribal areas of the country.
Name. : Harshal Chougule
Roll no: 38
USN. : GIT20MBA064-T
Div. : A
Assignment 2
The buying behaviour of the rural consumers is influenced by several factors such as socio-economic conditions, cultural environment, literacy level, occupation, geographical location, efforts on the part of sellers, exposure to media
Rural consumers in emerging markets of developing countries are among the largest and fastest growing segments of the world’s population. In a country like India, where a substantial number of the rural people are living below poverty line, having high level of unemployment and poor literacy level; consumer awareness continues to remain low.
Rural markets are witnessing ‘value growth’. That is rural consumers are willing to go for premium brands in any product category. Rural market is providing ample options to its consumer in terms of tastes, choices which are changing. The three most important factors are:
Change in consumption pattern
Change in life style
Change in behavior of rural consumer
In this regard, many large sized corporations have seen great success in rural areas because of innovative strategies like smaller packaging (Fast Moving Consumer Goods – FMCG companies have creams and soaps priced at Rs5, hair oil and shampoo sachets at Re1 and small Coke at Rs5), customized development and positioning and a good distribution network. The rural India success story is being replicated across a range of sectors in the rural markets. Thus, the sales of FMCG products in rural markets is growing at a fast pace, even faster than that in urban markets. Nielsen estimates that by 2025, the fast-moving consumer goods (FMCG) market in rural India will hit $100 billion and that inflation and pricing will be outstripped by consumption.
Today, rural consumers are not only buying to fulfill their basic needs but also taking care of higher needs of comfort and socialization. Moreover, they are getting more conscious about health and that they have the extra money to spend on such products. Consumer behaviour which is related to likes and dislikes and expectations of the consumers has changed in recent years owing to enhanced awareness, information technology and more importantly governmental intervention through legislations. The buying behaviour of the rural consumers is influenced by several factors such as socio-economic conditions, cultural environment, literacy level, occupation, geographical location, efforts on the part of sellers, exposure to media etc. Thus, the manufacturers are more cautious in dealing with consumers of their respective products.
Name : Aishwarya Kulkarni
Roll no :06
USN : GIT20MBA057-T
Div : A
Penetration of media and telecom services has changed the way India’s rural consumers buy. Like their urban counterparts, consumers in the rural have become more aspirational, striving to purchase branded, high-quality products. They have also become more discerning, no longer willing to accept inferior products simply because they cost less, according to a research study.
The changing rural consumer is also defying stereotypes and outdated assumptions. There is no longer one rural consumer—a generic entity who supposedly can be served profitably with one-size-fits-all strategies.
Over the last few years, marketers have been expanding to the interiors to capture a share of rural consumer spending. For instance, Hindustan Unilever Ltd, the country’s largest consumer packaged goods company by sales, added one million stores under direct coverage across rural and urban India, taking its total direct reach to 3.2 million outlets.
Dabur India Ltd, the maker of household brands like Babool toothpaste, Sani Fresh toilet cleaner, Hajmola tablets and Glucose-D, has increased its penetration from 14,000 villages to 40,000 as part of its so-called “project double" programme launched.
The rural consumer has evolved and can be broadly classified as traditionalists, steady climbers, young enthusiasts and village elites, said the report.
traditionalists are the conservative rural consumers that rely on conventional channels to make their purchase decisions and necessity drives most of their purchase decisions and price is a key factor. Steady climbers aspire for a more comfortable lifestyle and strive to buy branded products. Young enthusiasts are rural consumers aged 18-28, make extensive use of digital technology and buy branded products to enhance their social image. Village elites are the progressive rural consumers, boasting high education and awareness levels, and desire the best in all products.
“There is no difference between the urban and the rural consumer," says Mayank Shah, group product manager, Parle Products Pvt. Ltd, the maker of Parle G, Monaco and Krack Jack biscuits, while explaining that due to media and telecom penetration, the aspirations of rural consumers have become similar to those of the urban consumer.
Interestingly, willingness to purchase online in the near future is going to increase…
VINAYAK BABU TALLI
ROLL NO -117
DIV-B
In India, rural market has got two broad
categories. They are selling of agricultural
produces in urban markets and selling of
industrial goods in rural markets. Also, rural
market includes the sale of durable goods,
non durable goods and agricultural inputs.
It is good to hear that Indian rural market is
growing. But the reality is that the Indian
population is gradually migrating to modern
urban centers. This is mainly because of the
lack of facilities and comforts in rural areas.
For the marketers the challenge is to run
both traditional brick and mortar, and click
and mortar pattern of business
simultaneously. Due to the lack of strong
infrastructure in rural India, technology
adoption still seems to be impossible.
NEED FOR THE STUDY
India has more than six lakhs villages but
with not so acceptable facilities. These
villages are low in population numbers, poor
in terms of infrastructure, low per capita
income. Their income predominantly comes
from pure agricultural activities or
agricultural wages. There are few countable
petty shop owners, artisans, and
blacksmiths. This clearly shows the income
pattern of rural population. For most of the
Indian rural families, income is seasonal.
The quantum of income is largely dependent
on monsoon. As the income is not
predictable, the pattern of their buying is
also not predictable. Their major spending
goes into food and clothing. Only few
people can save money for their future.
There are few large agriculturists who are
supposed to be well to do in rural villages.
Though government talks about support to
rural India, the reach and effectiveness is not
that appreciable. Following are some of the
major hurdles in rural markets:
Poor Banking farcicalities
Lack of basic infrastructure facilities like
roads, electricity and communication
Lack of exposure to different product
categories
Highly dispersed markets with thin
population
Low per capita income with economic
backwardness
Heavy distribution costs
Credit seeking mindset
Wide cultural gap between rural and
urban markets
Difficulty in generating demand for
industrial goods
In India, rural market has got two broad
categories. They are selling of agricultural
produces in urban markets and selling of
industrial goods in rural markets. Also, rural
market includes the sale of durable goods,
non durable goods and agricultural inputs.
It is good to hear that Indian rural market is
growing. But the reality is that the Indian
population is gradually migrating to modern
urban centers. This is mainly because of the
lack of facilities and comforts in rural areas.
For the marketers the challenge is to run
both traditional brick and mortar, and click
and mortar pattern of business
simultaneously. Due to the lack of strong
infrastructure in rural India, technology
adoption still seems to be impossible.
NEED FOR THE STUDY
India has more than six lakhs villages but
with not so acceptable facilities. These
villages are low in population numbers, poor
in terms of infrastructure, low per capita
income. Their income predominantly comes
from pure agricultural activities or
agricultural wages. There are few countable
petty shop owners, artisans, and
blacksmiths. This clearly shows the income
pattern of rural population. For most of the
Indian rural families, income is seasonal.
The quantum of income is largely dependent
on monsoon. As the income is not
predictable, the pattern of their buying is
also not predictable. Their major spending
goes into food and clothing. Only few
people can save money for their future.
There are few large agriculturists who are
supposed to be well to do in rural villages.
Though government talks about support to
rural India, the reach and effectiveness is not
that appreciable. Following are some of the
major hurdles in rural markets:
Poor Banking farcicalities
Lack of basic infrastructure facilities like
roads, electricity and communication
Lack of exposure to different product
categories
Highly dispersed markets with thin
population
Low per capita income with economic
backwardness
Heavy distribution costs
Credit seeking mindset
Wide cultural gap between rural and
urban markets
Difficulty in generating demand for
industrial goods
Name - Dipali Jadhav
Roll no- 42
USN - GIT20MBA011-T
Div - A
The book is all about the growing power of consumers in rural markets in developing countries in Asia and Africa. It examines the forces that are adding to rural prosperity, including the billions of dollars in remittances. And the young man waiting on Mahajan in the coffee lounge of a prominent New Delhi hotel becomes an instant case study. He comes from a village in Uttarakhand and landed in Delhi looking for work. His father tends to his farms back home. But the young man who is being quizzed says he sends money to his parents. And the money is transferred online. “That’s a live example of remittance going back to the village and adding to the rise in rural consumption," says Mahajan as he concludes his conversation with the waiter.
About 48% of the world’s population lives outside urban areas and nine of every 10 of those people, or about 3 billion, live in rural Africa or Asia, he says. “Companies that discount these consumers essentially cut their global marketplace in half. The bigger opportunity lies in the up-and-coming rural populations of emerging economies, particularly in Asia and Africa," he adds.
For the book, he focused on 10 countries with the largest rural populations, seven of them in Asia and three in Africa. The rural top 10 include India, China, Indonesia, Pakistan, Bangladesh, Nigeria, Ethiopia, Vietnam, Egypt and the Philippines.
Mahajan says he focused on these because collectively they total nearly 2.2 billion people or two-thirds of the entire world’s rural population. “They represent a massive market opportunity for the progressive consumer companies. These economies have increasing spending power," he says.
Between 2013 and 2015, Mahajan travelled to each of the rural top 10 countries, as well as to Thailand, Myanmar and Bhutan. In these countries, he discovered an increasingly affluent consumer base “whose needs were the same as any consumer I have seen anywhere around the world". So, a big takeaway from his travel around the world is that consumer aspirations are the same everywhere. There is no difference between the aspirations of the urban and rural consumers and the aspirations of rural consumers in different parts of the world, says the professor.
“From a marketing point of view, there are people who are poor, people who are rich and people who are in between. But their aspirations don’t change. After travelling to 60-70 countries, I can say that mothers everywhere are the same. They want to give their children better than what they have and they want them to achieve what they have not achieved. That’s why aspirations are universal,
Simran Sambrekar RollNo 101
USN GIT20MBA025-T
Div B
In the busying preference of India's consumer are changing fast and several factors PESTAL analysis are coming. Together to form one information as rural consumers income levels are on rise ,more of them are buying product n services that improve the quality of live
There also have been shift in business levels of the rural consumer and the increased media presentation has played a vital role in rural india values.
Secondly , rural consumers have a better connection activity , they both have better connection in digital and physical sense , the recent data shows that there are many as 35% of rural household activities both husband and wife earning money
New technology and attitude behaviour are reshaping the purchase decision of India's rural customer's. These consumers are becoming far more aspirational and networked . Our recent researchers have found that consumers in india are waiting to be served in new ways and with new offerings
The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives.
There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
Accenture undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most.
Our study identifies two broad dimensions characterising behaviour change emerging among India's rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only.
Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.
From biscuits to televisions, the expectations of India's rural consumers are changing and price is taking a back seat to brand image and aesthetics a report has said.
"Rural consumers are changing in three fundamental ways," the report said. "They are far more aspirational, networked and discerning."
"The next generation of the rural consumer who is coming in has a higher exposure level than the previous generation,"
Brands need to extend not just their physical reach but their "mental reach" in order to grasp the opportunities offered by these new consumers, the report said.
Warc's recent series on Indian youth made a similar point, when Narayan Devanathan of Dentsu India Group argued that the urban-rural divide was a myth and that the real split was between traditional and progressive mindsets.
Name: Nikita Patil
Roll no:61 USN:GIT20MBA045-T
Div:B
The Rural markets offer immense opportunities for enhancing businesses. Inspite of so much scope for business development very less attention has been paid for the development of rural marketing concept. Further, under developed market, people, infrastructure, communication, transport and many more factors have contribute for the unbalanced growth of rural markets. But slowly all this is changing.
The concept of rural market in India is still evolving and it posses numerous challenges like understanding rural consumer, reaching and providing services to remote locations and communicating with audience. Though there are several difficulties in targeting the rural market but still almost all companies are rushing towards this market. This is mainly because of saturated urban market and favourable changes in rural market like improving lifestyle, habits, taste, increasing literacy level, increase in income, increase in expectations and aspirations, improving infrastructure, government support via various schemes etc. This is how the aspirations are changing in rural consumers.
Now day’s rural consumers are also using branded products and almost all major brands are available in rural market of India.
As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image.
Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television have also reshaped lifestyle and consumption patterns among rural consumers.
Many companies were efficacious in entering the rural markets. It is very difficult for the companies to overlook the opportunities offered by the rural markets. As two – third of Indian population exists in these areas, the market is much unanticipated for the companies to be effective in rural markets.
Hindustan Unilever Ltd. , ITC, Parley Foods and many other companies are concentrating on the rural markets as the urban markets have become saturated.
Conclusion:
The scope of future expansion lies in the development of rural markets. In fact, rural marketing should be recognized as developmental marketing by big business firms. In India it has gained greater significance these days as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities.
Name - Aditi Dalal
Roll No.- 04
USN - GIT20MBA018-T
Div- A
The rural markets are growing at above two times faster pace than urban markets. To explore and understand rural market is crucial for any marketers. Rural Marketing is one of the emerging concepts which have attracted the attention of marketers globally in the recent years. The concept incorporates the marketing of rural specific goods and services leading to exchange between rural and urban markets. The green and white revolutions in the rural areas have raised the standard of living, purchasing capacity and consumptions levels of huge quality and quantity of industrial and manufactured goods.This move have made many business houses to plan strategies to extend their business to rural areas, the trade channels for different types of commodities available in rural areas are private, cooperatives, processors, regulated markets and state agencies.
Some major hurdles in rural markets are poor Banking facilities, Lack of basic infrastructure facilities like roads, electricity and communication, Lack of exposure to different product categories, Highly dispersed markets with thin population, Low per capita income with economic backwardness, Heavy distribution costs, Credit seeking mindset, Wide cultural gap between rural and urban markets. The primary customer for the organisation, the retailer has a very high bargaining power in the rural markets. To create shelf space for the products at the rural retail outlet is a big challenge as rural retailer is only stockings few brands per products category. He can live with that very comfortably as his market is not very choosy and demanding and is ready to accept whatever he offers because of lack of alternative options.
The strategy for rural marketing has to be basically different from that for the urban market because of two very important reasons. In the first place, since the urban people are concentrated, it is physically easier to contact them. On the contrary, people in villages are scattered, so that the task of contacting them is several degrees more demanding and challenging. Secondly, the methods of communicating with the villagers have to be of a different order in view of their lower levels of education and the environmental differences. Though the gap between Indian rural and urban consumer is decreasing still there is considerable difference between them in terms geographic, demographic and psychographic aspects. These differences are resulting in distinction in rural and urban consumers' behaviour, hence requiring different marketing strategies for these regions.
Name - Sameeksha Kini
USN - GIT20MBA010-T
Roll No.- 85
Div - B
The rural market has changed drastically in the past one decade. Rural marketing today is much easier than it was for the pioneers because there has been considerable improvement in the means of transport and communication during the last decade. Markets are better connected by road and rail, and the number of trucks and buses (public and private) has increased considerably. Banks in the villages or nearby help rural dealers in cleaning their documents without much delay. Cinema, Television and Radio now make it easier to communicate with the rural consumers.
Also a decade ago, the rural market was more unstructured and was not a prioritized target location for corporate. Very few companies, mainly the agro based ones, were concentrating in those markets.
There were no innovative strategies and promotional campaigns exclusively for rural markets.
What makes Rural Markets Attractive?
Rural market has following arrived and the following facts substantiate this.
742 million people
Estimated annual size of the rural market
- FMCG Rs. 65,000 Crores
- Durables Rs. 5,000 Crores
- Agri-inputs (incl. tractors) Rs. 45,000 Crores
- 2 / 4 wheelers Rs. 8,000 Crores
41 million Kisan Credit Cards issued (against 22 million credit-plus-debit cards
in urban) with cumulative credit of Rs. 977 billion resulting in tremendous
liquidity.
Of 20 million Rediffmail signups, 60 % are from small towns. 50% transactions
from these towns on Rediff online shopping site
42 million rural House Holds availing banking services in comparison to 27
million urban House Holds.
Investment in formal savings instruments: 6.6 million House Holds in rural and
6.7 million in urban
53% of FMCG sales happen at Rural India.
Talcum powder is used by more than 25% of rural India.
Lipsticks are used by more than 11% of the rural women and less than 22% of the
urban women.
Close to 10% of Maruti Suzuki’s sales come from the rural market.
Hero Honda, on its part, had 50% of its sales coming from rural market in FY’09.
Rural India has a large consuming class with 41% of India’s middle-class and
58% of the total disposable income accounting for consumption.
By 2010 rural India will consume 60% of the goods produced in the country.
In 20 years, rural Indian Market will be larger than the total consumer markets in
countries such as South Korea or Canada today, & almost 4 times the size of
today’s urban Indian market
Opportunities:
Rapid improvement in Infrastructure is attracting companies to shift focus from
urban to rural market
- In 50 years only 40% villages connected by road, in next 10 years another 30%.
- More than 90 % villages electrified, though only 44% rural homes have electric
connections.
- Rural telephone density has gone up by 300% in the last 10 years; every 1000+
pop is connected by STD.
Social Indicators have improved a lot between 1981 and 2001
- Number of "pucca" houses doubled from 22% to 41% and "kuccha" houses
halved (41% to 23%)
- Percentage of BPL families declined from 46% to 27%
- Rural Literacy level raised from 36% to 59%
Problems & Challenges of rural markets:
The rural market offers a vast untapped potential; it should also be recognized that
it is not that easy to operate in rural market because of number of problems such as
improper infrastructure and transportation would lead to time delay and high cost on
transportation could lead to weak logistics and distribution also. Thus Rural marketing is
a time consuming affair and requires considerable investments in terms of evolving
appropriate strategies with a view to encounter the problems.
Name :- Saiel Pawaskar
USN :- GIT20MBA020-T
Roll No :- 84
Div :- B
The expectations of today's rural India n consumers differ markedly from those of previous generation. They are moving away from purely economic concepts of value driven by low prices towards a trader notion of value that combine price with the utility and features of products and services
Companies will have to let go of longstanding assumptions about rural Indians that have prevented them from understanding who these consumers really are and establishing long lasting brand relationship with them
Three broad dimensions characterizing change in rural consumer behaviour
1.aspiration
As incomes of India's rural consumers rise they want to provide their children with a better future through education and healthcare
2 .network
Rural consumer operate as members of tightly knit communities, with word of mouth playing a powerful role in they purchase decision
3.Discerning
Rural consumers no longer fall for fraudulent retailer tactics or blindly accept a product only because it is low priced
Name:- Apeksha Bhat
USN:-GIT20MBA013-T
Roll no:- 19
Div:- A
Businesses in India are more confident than ever about the growth of the country's rural consumer markets.
The present rural consumers are particularly aspirational, striving to purchase branded high quality products. The rural consumers are better networked and proactively seek information through multiple sources.
Online portals are today viewed as instrumental channels for companies trying to break into rural market.
New attitudes, priorities and behaviours are reshaping the purchase decisions of Indias rural consumers.
Research found that rural consumers in India are waiting so be served in new ways and with new offering.
Rural Consumer Segment
Traditionalist
Traditionalist are the conservative rural consumers rely on conventional channels to make their purchase.
Steady Climbers
Aspire for a more comfortable lifestyle they want to enhance their social standing among their peers and strive to do so by buying branded products and offerings.
Young Enthusiast
Rural consumers aged 18-28 make extensive use of digital technology and buy branded products to enhance their social image.
Village Elites
Village elites are the progressive rural consumers boasting high education and awareness level. They desire the best in product quality features and aesthetics.
Name:Anirudh Ghatage
USN no:GIT20MBA104-T
Roll no:15(Division A)
Vijay Mahajan prefers to cite anecdotal evidence for everything he says or writes. So, it is no surprise that the professor, who was in India for his book launch in New Delhi last week, starts quizzing the attendant in the restaurant who is serving him green tea, to prove his point on remittances. Published by Sage, his book is titled Rise of Rural Consumer in Developing Countries and professor Mahajan is John P. Harbin Centennial Chair in Business at the McCombs School of Business, University of Texas at Austin. He was also the dean at the Indian School of Business, Hyderabad, between 2002 and 2004.
The book is all about the growing power of consumers in rural markets in developing countries in Asia and Africa. It examines the forces that are adding to rural prosperity, including the billions of dollars in remittances. And the young man waiting on Mahajan in the coffee lounge of a prominent New Delhi hotel becomes an instant case study. He comes from a village in Uttarakhand and landed in Delhi looking for work. His father tends to his farms back home. But the young man who is being quizzed says he sends money to his parents. And the money is transferred online. “That’s a live example of remittance going back to the village and adding to the rise in rural consumption," says Mahajan as he concludes his conversation with the waiter.
For the book, he focused on 10 countries with the largest rural populations, seven of them in Asia and three in Africa. The rural top 10 include India, China, Indonesia, Pakistan, Bangladesh, Nigeria, Ethiopia, Vietnam, Egypt and the Philippines.
Mahajan says he focused on these because collectively they total nearly 2.2 billion people or two-thirds of the entire world’s rural population. “They represent a massive market opportunity for the progressive consumer companies. These economies have increasing spending power," he says.
Between 2013 and 2015, Mahajan travelled to each of the rural top 10 countries, as well as to Thailand, Myanmar and Bhutan. In these countries, he discovered an increasingly affluent consumer base “whose needs were the same as any consumer I have seen anywhere around the world". So, a big takeaway from his travel around the world is that consumer aspirations are the same everywhere. There is no difference between the aspirations of the urban and rural consumers and the aspirations of rural consumers in different parts of the world, says the professor.
“From a marketing point of view, there are people who are poor, people who are rich and people who are in between. But their aspirations don’t change. After travelling to 60-70 countries, I can say that mothers everywhere are the same. They want to give their children better than what they have and they want them to achieve what they have not achieved. That’s why aspirations are universal," he says.
The rural story in his book is directed at the company CEOs in Mumbai, Shanghai and New York as well as for the policymakers, he says. “I wanted to tell them what they are missing. I wanted to say that you cannot have sustainable economic growth unless you have an inclusive strategy. That inclusive strategy must include the world’s non-urban population," he adds.
As mentioned earlier, rural markets are being transformed by the remittances from migrant workers. Then there is government intervention, which may be improving their lot. There are several government schemes in India for the benefit of the rural folk, says Mahajan. In China, too, the government subsidized a lot of white goods during recession. It wanted to encourage people in rural areas to buy those products.
Name :- Bhushan P Desai
USN :- GIT20MBA069-T
Roll No :- 28
Div :- A
Predominantly India is dominated by rural population. Roughly around 12 percent
of the world’s population is living in rural India. According to 2014 World Bank
Report, 67.63 percent of Indian population lives in rural areas. In the year 2010,
Indian rural population was about 70 percent. After 2010, there has been a gradual
decline in the rural population in India. Rural India accounts for 64 percent of total
expenditure and 1/3 of total savings. On the one hand, Fast Moving Consumer
Goods industry is growing. On the other hand many companies feel that the urban
markets are saturated. Most of the leading companies are now trying to target rural
markets. Till very recently, per capita income of rural population is roughly about
Rs. 60,000. Due to the initiatives like minimum support price, rural employment
guarantee scheme, disposable income of rural population has started increasing. But
the increase in income is not that remarkable.
Predominantly India is dominated by rural population. Roughly around 12 percent
of the world’s population is living in rural India. According to 2014 World Bank
Report, 67.63 percent of Indian population lives in rural areas. In the year 2010,
Indian rural population was about 70 percent. After 2010, there has been a gradual
decline in the rural population in India. Rural India accounts for 64 percent of total
expenditure and 1/3 of total savings. On the one hand, Fast Moving Consumer
Goods industry is growing. On the other hand many companies feel that the urban
markets are saturated. Most of the leading companies are now trying to target rural
markets. Till very recently, per capita income of rural population is roughly about
Rs. 60,000. Due to the initiatives like minimum support price, rural employment
guarantee scheme, disposable income of rural population has started increasing. But
the increase in income is not that remarkable.
Predominantly India is dominated by rural population. Roughly around 12 percent
of the world’s population is living in rural India. According to 2014 World Bank
Report, 67.63 percent of Indian population lives in rural areas. In the year 2010,
Indian rural population was about 70 percent. After 2010, there has been a gradual
decline in the rural population in India. Rural India accounts for 64 percent of total
expenditure and 1/3 of total savings. On the one hand, Fast Moving Consumer
Goods industry is growing. On the other hand many companies feel that the urban
markets are saturated. Most of the leading companies are now trying to target rural
markets. Till very recently, per capita income of rural population is roughly about
Rs. 60,000. Due to the initiatives like minimum support price, rural employment
guarantee scheme, disposable income of rural population has started increasing. But
the increase in income is not that remarkable.
rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics.
While the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty.
Name=mohammadarbaaz Hudli
Roll no=50
Div=A
Sushma R Arkasali
Roll no: 110
USN : GIT20MBA084-T
B DIVISION
buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12.
has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
centure undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty.
Rural India has witnessed a wave of change in recent times. Rural markets dominate Indian marketing scene and they need special attention for the expansion of marketing activities. With media exposure and increasing literacy levels, people are now demanding a better lifestyle.As we know, in a country like India, 70 percent of Indian population lives in rulal areas.
The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. Take example of Changing technology which leads to change rural consumer aspirations rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet usin mobile handsets, the spread of wireless data networks, and evolving consumer behaviors and preferences will all drive rural penetration This has been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.
The rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics.
Therefore, Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty specially rural consumers.
Name - Priyanka Khot
USN. - GIT20MBA051-T
Roll no- 76
Div. - 'B'
HOW CONSUMERS ASPIRATIONS ARE CHANGING IN RURAL MARKET IN INDIA
The buying preference of India's rural consumers are changing fast and several factors – economic, psychological and technological are coalescing to fuel this transformation that is people are moving towards more advanced technology.
Rural consumers income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased. There has also been change in the awareness levels of the rural consumer and this due to the increased media has played a vital role in rural India’s values and attitudes. These economic trends and recent advances in technology have triggered major changes in how rural consumers make purchase decision and what to buy and from where to buy.
The changing aspirations can be studied by characteristics behavior of India’s rural consumers First rural consumer are more aspirational and they have deep desire to provide better life for they family and a better future and providing them with better quality of life. As consumers are becoming brand conscious, they are also trading up and seeking more features and for better product to enhance their social image. Rural consumers are more discerning. Rural consumers are street smart about common schemes and view value through broader lens and share information with other consumers while companies may feel that rural consumers can be swayed by celebrity endorsements and ads in reality consumers don’t fall for such tactics.
While rural consumers need at different points in purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies needs to develop products and services that address the unique needs of the consumers
Name - Priyanka Desai
USN - GIT20MBA062-T
Roll no - 75
Div - B
Name : Dhanashree kangralkar
Roll no. : 33
USN : GIT20MBA102-T
Div : A
Consumers are king in the market n becoming tough factor for the marketers. Rural India was before not aware about the products services brands, companies, quality ect. But the consumers of rural area are aware about all these things n now theire buying behaviour is changing.
Reach of the television, mobile phones, internet network creating the urban place in rural India. People are becoming aware about the products and marketing. They have become more choose for the products and services.
Litteracy rate of the rural area is increasing and this leads to changing aspiration of the consumers. Students are moving to the urban areas and in return bringing the urban consumers fashion to the villages.
Also many institutions are moving to the villages n this leads to change in the life style of the rural people.
Many companies have analysed the opportunity in rural areas n they are targeting to rural consumers n consumers are giving good response to them.
There are some govt. Campaign which are making aware about the consumers rights. Development of infrastructure n roads n transportation in rural areas attracting rural consumers to uraban market n they are attracting towards this metro city life style and this is the reason they are looking for the options in the market.
Companies like Amazon, flipcart, mynta these online sites are reaching to the village n therefore rural people r attracting to these sites and their taste is changing. Modernisation of the society is changing the aspiration of the consumers buying pattern n now rural n urban people area are connected n becoming one area.
Also the changing pattern of agriculture n modernised techniques in agriculture system making aware about the new market.
These are some above reasons which are resulted into changing aspiration of rural consumers in India.
rural consumers are particularly aspiring or striving to purchase branded, high quality products. Consequently, businesses in India are optimistic about growth of the country's rural consumer markets, which is expected to be faster than urban consumer markets. The report highlights the better networking among rural consumers and their tendency to proactively seek information via multitude sources to be better informed while making purchase decisions. Importantly, the wider reach of media and telecommunication services has provided information to India’s rural consumers and is influencing their purchase decisions. In line with general trend, rural consumers are evolving towards a broader notion of value provided by products and services which involves aspects of price combined with utility, aesthetics and features, and not just low prices.
Saloni pattanshetty
Roll no 65
Usn no GIT20MBA014-T
DIV B
Rural marketing involves addressing over 700 million potential consumers and over 40 per cent of the Indian middle income. ... For a number of PMCG companies is the country, more than half their annual sales come from the rural market.
Consumers in India’s hinterlands are increasingly vying for premium options and evaluating products based on their distinct utility and value. However, given Indian agriculture’s heavy reliance on monsoons, farmers’ incomes continue to be susceptible to the vagaries of nature resulting in farmers often being cash-strapped, and hence price sensitive.
In addition to product price, our studies also highlight farmer skepticism to servicing and overall maintenance cost of their tractors, which is often noted to be higher than their expectation.
rural consumers are particularly aspiring or striving to purchase branded, high quality products. Consequently, businesses in India are optimistic about growth of the country's rural consumer markets, which is expected to be faster than urban consumer markets. The report highlights the better networking among rural consumers and their tendency to proactively seek information via multitude sources to be better informed while making purchase decisions. Importantly, the wider reach of media and telecommunication services has provided information to India’s rural consumers and is influencing their purchase decisions. In line with general trend, rural consumers are evolving towards a broader notion of value provided by products and services which involves aspects of price combined with utility, aesthetics and features, and not just low prices.
Saloni pattanshetty
Roll no 65
Usn GIT20MBA014
(The previous comment was raw
Sir kindly accept this comment )
The concept of rural market in India is still evolving and it posses numerous challenges like understanding rural consumer, reaching and providing services to remote locations and communicating with heterogeneous audience increase in income, increase in expectations and aspirations, improving infrastructure, government support via various schemes etc. Now day's rural consumers are also using branded products and almost all major brands are available in rural market of India.
The rural regions are already well covered by basic telecommunication services and are now witnessing increasing penetration of computers and smartphones. Taking advantage of these developments, online portals are being viewed as key channels for companies trying to enter and establish themselves in the rural market. The Internet has become a cost-effective means for a company looking to overcome geographical barriers and broaden its reach.
Migration is resulting in increase in urban population but at the same time this migrated rural population is sending money to their relatives living in rural region.
As a result of these differences in socio economic environment of rural and urban region,asignificant difference was observed in rural and urban consumers’ mindset also.
• Need based buyer behavior
• Value for Money
• Consensus decision making
• Brand consciousness
• Brand loyalty
India's Rural Consumers Are Changing Fast.New attitudes, priorities and behaviors are reshaping the purchase decisions of India's rural consumers.Following points explain the reasons why companies are going rural i.e. what attracts them:
•Large and Scattered market
•Major income from agriculture
•Low standard of living
•Traditional Outlook
•Diverse socio-economic backwardness
•Infrastructure Facilities
•High Growth Rate
Now it is clear that India lives in villages and Government is developing the life of villagers to make them more and more luxurious. Some highlights are:–
1. The development is not only evident in metros—it is apparent in small towns and villages as well.
2. There is no question that India’s rural markets are becoming a
powerful economic engine.
3. For every new opportunity for a villager to use his mobile phone to
protect his crops, there is a knock-on opportunity for him to purchase a small refrigerator or a motorcycle.
4. Consumption patterns in these areas are also gradually beginning
to mirror those of their urban counterparts.
5. Owing to this changing trend as well as the size of the market,
rural India provides a tremendous investment opportunity for
private companies.
6. The Government of India seeks to promote innovation and technology development in rural and tribal areas of the country.
7. Banks are working on establishing 'Rural ATMs' which will dispense currency notes of smaller denominations.
8. With the increasing demand for skilled labour, the Indian government plans to train 500 million people by 2022, and is looking out for corporate players and entrepreneurs to help in this
venture.
Name:Shamala C Hukkeri
Usn: GIT20MBA134-T
Roll no:90
Div :B
Name :-Prakash R Shapurkar
Roll :- 70
Division :- B
Usn no :-GIT20MBA048-T
ASSIGNMENT 2
“Rural marketing can be seen as a function which manages all those activities involved in assessing, stimulating and converting the purchasing power into an effective demand for specific products and services, and moving them to the people in rural area to create satisfaction and a standard of living to them and thereby achieves the goals of the organization.” So we can define rural marketing as not only marketing of goods to rural people but our marketing activities should also encourage the rural consumers to enhance the standard of living by providing high quality product.
Increasing Prosperity
Rising Consumption
Changes in Life Cycle
Life Cycle Advantage
Higher Market growth rate than Urban
Inexpensive marketing
Increasing reach [2]
The government added fresh impetus to the National Rural Employment Guarantee Scheme; its flagship job creation program for rural India which provides guaranteed work for 100 days of a year for the country’s poor [3] . During year 2008-09, the scheme provided employment opportunities to more than 44 mn households when compared to a figure of 33 mn households covered the previous year. The rural road outlay has been upped by close to 60 per cent [4] .
Rural population accounts for 70% of the total Indian population and it is increasing at a higher rate in comparison to urban population. We see a basic difference in urban and rural buyers’ characteristics while buying any product. Some of the reasons behind this differentiation are:
Definition
“Rural marketing can be seen as a function which manages all those activities involved in assessing, stimulating and converting the purchasing power into an effective demand for specific products and services, and moving them to the people in rural area to create satisfaction and a standard of living to them and thereby achieves the goals of the organization.
ocess of rural consumer undergoes following steps.
The purchase decision cycle starts with consumer trying to understand the need of the product. In rural India cost is still the major consideration and prime purchases are for essential items. Information search is typically via word of mouth and discussions with the neighbors, friends, and society. Henceforth, depending upon the need, buying power, and other environmental factors, final decision to select the best alternative to consume is made. All this followed by the post purchase behavior which depends upon the satisfaction or dissatisfaction level of the consumer.
Rural People: Purchasing Branded Products [8] This paper talks about branding in rural markets. It recites that against the common belief that brands are for rich people, poor people are more loyal to branded products because most the time they do not have a second chance. By second chance we mean to say that if a product does not deliver the expected value, because of limited resources BoP consumers will not be able to buy another new product. The financial risk is too high. So buying branded products is a rational purchase, since it assures the expected deliver. Basically they define what a brand is – consistent and reliable.
What differs among low-income and upper-income consumers is the way they perceive the value proposition of brands, products: that is, the costs-attribute-benefit relationship is perceived. The lower income groups perceive reinforcement of dignity and personalized relationships as more important than among upper income. The promise of inclusiveness lends to the value proposition directed to the low-income consumers, the proposition of exclusiveness is what expands the perception of the product benefits among upper-income consumers.
Name :-Prakash R Shapurkar
Roll :- 70
Division :- B
Usn no :-GIT20MBA048-T
ASSIGNMENT 2
“Rural marketing can be seen as a function which manages all those activities involved in assessing, stimulating and converting the purchasing power into an effective demand for specific products and services, and moving them to the people in rural area to create satisfaction and a standard of living to them and thereby achieves the goals of the organization.” So we can define rural marketing as not only marketing of goods to rural people but our marketing activities should also encourage the rural consumers to enhance the standard of living by providing high quality product.
Increasing Prosperity
Rising Consumption
Changes in Life Cycle
Life Cycle Advantage
Higher Market growth rate than Urban
Inexpensive marketing
Increasing reach [2]
The government added fresh impetus to the National Rural Employment Guarantee Scheme; its flagship job creation program for rural India which provides guaranteed work for 100 days of a year for the country’s poor [3] . During year 2008-09, the scheme provided employment opportunities to more than 44 mn households when compared to a figure of 33 mn households covered the previous year. The rural road outlay has been upped by close to 60 per cent [4] .
Rural population accounts for 70% of the total Indian population and it is increasing at a higher rate in comparison to urban population. We see a basic difference in urban and rural buyers’ characteristics while buying any product. Some of the reasons behind this differentiation are:
Definition
“Rural marketing can be seen as a function which manages all those activities involved in assessing, stimulating and converting the purchasing power into an effective demand for specific products and services, and moving them to the people in rural area to create satisfaction and a standard of living to them and thereby achieves the goals of the organization.
ocess of rural consumer undergoes following steps.
The purchase decision cycle starts with consumer trying to understand the need of the product. In rural India cost is still the major consideration and prime purchases are for essential items. Information search is typically via word of mouth and discussions with the neighbors, friends, and society. Henceforth, depending upon the need, buying power, and other environmental factors, final decision to select the best alternative to consume is made. All this followed by the post purchase behavior which depends upon the satisfaction or dissatisfaction level of the consumer.
Rural People: Purchasing Branded Products [8] This paper talks about branding in rural markets. It recites that against the common belief that brands are for rich people, poor people are more loyal to branded products because most the time they do not have a second chance. By second chance we mean to say that if a product does not deliver the expected value, because of limited resources BoP consumers will not be able to buy another new product. The financial risk is too high. So buying branded products is a rational purchase, since it assures the expected deliver. Basically they define what a brand is – consistent and reliable.
What differs among low-income and upper-income consumers is the way they perceive the value proposition of brands, products: that is, the costs-attribute-benefit relationship is perceived. The lower income groups perceive reinforcement of dignity and personalized relationships as more important than among upper income. The promise of inclusiveness lends to the value proposition directed to the low-income consumers, the proposition of exclusiveness is what expands the perception of the product benefits among upper-income consumers.
The book is all about the growing power of consumers in rural markets in developing countries in Asia .As per the pmc Companies in the country are more than half of the annual sales come from the rural market. In olden daysRural India was not aware about the products services brands, companies, quality ect. But the consumers of rural area are aware about all these things n now theire buying behaviour is changing.
Litteracy rate of the rural area is increasing and this leads to changing aspiration of the consumers. The monthly per capita spending among rural consumers has increased yet there are lot many changes that as to take place for the betterment of rural marketer's.
It's peoveny rural marketing is time consuming as in the is no proper infrastructure transport facilities and so on.
There is a huge difference in urban marketing and rural marketing. Rural marketing requires good investment and proper marketing strategy as per the regions and there way of approaching things.
Karthika ps _44
rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.
rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014.
Name: shradha Laxman chopade
Roll no: 92
Div.: B
Sudeer hanagi
Roll num 104
Division B
USN GIT20MBA111-T
Rising affluence is the biggest driver of increasing consumption. (See Exhibit 1.) Of India’s five household income categories (elite, affluent, aspirers, next billion, and strugglers), the top two income classes are the fastest growing. From 2016 through 2025, the share of elite and affluent households will increase from 8% to 16% of the total while the share of strugglers will drop from 31% to 18%.
Behind the growth headlines is an even more important story: consumer behaviors and spending patterns are shifting as incomes rise and Indian society evolves. These shifts have big implications for how companies position themselves now.
In 2012, BCG’s Center for Customer Insight (CCI) conducted its first in-depth exploration of growth and consumer trends in India. (See The Tiger Roars: Capturing India’s Explosive Growth in Consumer Spending, BCG Focus, February 2012.) In 2016, we took an updated look at emerging developments, basing it on new research among 10,000 consumers in 30 locations nationwide. The evolution in consumer behaviors is playing out largely as we predicted four years ago, but, inevitably, new developments, as well as twists and turns, are affecting consumer attitudes and consumption.
This report examines the factors that are shaping India’s complex and growing market, consumers’ evolving spending patterns, the increasing and substantial impact of digital technologies on spending, and emerging trends that could alter spending. It presents an assessment of how companies need to adjust their strategies and models to meet shifting circumstances.
THE FACTORS SHAPING A GROWING MARKET
Companies today need to focus on three aspects of India’s fast-growing consumer market: rising affluence, the country’s continuing and unique pattern of urbanization, and fundamental shifts in family structures. (See Exhibit 2.)
Rising Affluence. We observed in 2012 that India’s income pyramid was transforming itself into a diamond as household incomes grew. In terms of spending, the two top consumer categories—elite and affluent—will become the largest combined segment by 2025, accounting for 40% of consumption compared with 27% in 2016. Within this segment, the urban elite and affluent are fueling most of the growth. By 2025, wealthy urbanites will be responsible for one-third of total consumption. The share of the next billion and strugglers will shrink from 49% in 2016 to 36% in 2025.
Continuing Urbanization. India’s continuing pattern of urbanization is uniquely Indian. The migration to urban centers is not concentrated in a few cities as it is in countries such as Indonesia or Thailand; nor is urbanization in India occurring as quickly as in China. In India, the population is booming in scores of small cities across the country. About 40% of India’s population will be living in urban areas by 2025, and these city dwellers will account for more than 60% of consumption. Much of this growth will take place in small towns.
Name: Sonal Vernekar
Roll no:116
USN no.GIT20MBA016-T
The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preference.Accenture undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Name Shweta Hanje
Roll no 98
Division B
USN GIT20MBA070-T
The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12.
There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
Accenture undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Our study identifies three broad dimensions characterising behaviour change emerging among India's rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.
Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.
Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics.
Name:Payal Jain
Roll no:67
USN : GIT20MBA112-T
The three broad dimensions characterising behaviour change emerging among India's rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.
Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.
Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics.
While the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty.
Name:Payal Jain
Rollno:67
USN : GIT20MBA112-T
buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12.
There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
three broad dimensions characterising behaviour change emerging among India's rural consumers: First, rural consumers are more aspirational. Accenture research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. As per Accenture's report, about 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image. About 42 per cent of our survey respondents indicated product upgrading as a reason for spending more in a category.
Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.
Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics.
While the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty.
The aspirations of the modern consumer is changing with time is a well known fact. Currently in India there are 65000 crore people who use internet on their mobile phones and a sizable amount of it consists of the rural population who are now aware about the technological advancements and it's benefits. It all started with introduction of Jio SIM cards which led to this change, it made the rural population opt for the internet facilities and here their first aspiration came into existence is fast internet speed. They started trying out different internet connections to find the fastest internet service provider in their area.
With the rise in the use of internet service their brand awareness also started to increase. All the people from rural areas started using different social media platforms like facebook, whatsapp, instagram, tiktok, etc which acted as a medium to introduce new brands to the rural population. Earlier they only had access to the television and selected channels which showed different advertisements, but now when the use of internet increased in the rural areas they also started to become brand cautious.
Earlier they had to ask many friends and neighbours before buying a particular product, but now they have many options on the internet and also they can get information and be aware about the new products online. They can browse through the internet and find information about any product before purchasing them. Also the rural customer is now aware about the after sales services the companies provides and they know their rights. RBI has focused on showing different advertisements on local channels to make people aware about the fraudulent practices and how to fight against anything wrong that has happened with them when they buy a product or a service.
Also one of the major reason towards the shift from the local brands to the modern and well know brands is because of the increase in disposable income of the people. Earlier all rural people used to do agriculture business inorder to meet their needs and a large part of their profits went to pay the loans that they had taken with the intrest rates, But now they have also shifted to new businesses which earns them good amount of money.
The rural customer is now smart and wants the best value for the least money. In many areas rural some of the customers are now shifting from shampoo sachets to bottles as they want are influenced by the brand ambassadors of different brands.
And lastly the rise of selfie era has made people post selfies for different occasions. Here the fashion retailers tap the market. The rural consumers buy new ethnic wears like kurtas, pyjamas, kurtis, etc and want to post selfies on social media. Earlier there was no such fancy to buy new clothes for every festival.
Name : Nishant Desai
Roll no. 29
USN: GIT20MBA032-T
Division: A MBA I semester
name vinod naik
roll no-118
div-B
usn- GIT20MBA049-T
New attitudes, priorities and behaviors are reshaping the purchase
decisions of India's rural consumers. These consumers are becoming far
more aspirational, networked and discerning. The latest research
challenges many traditional assumptions about how rural consumers
make their purchases, and demonstrates how a few companies have
managed to understand the changing rural consumer behavior.
Research found that rural consumers in India are waiting to be served in
new ways, and with new offerings. They have already started deciding
which brands they will pledge their loyalty to. What can companies do
to lock in these consumers' loyalty before their competitors can?
Researcher believe that companies must augment their physical reach by
understanding the minds of these customers what they really want and
why.
The Changing Realities of Rural India
Companies will have to let go of longstanding assumptions about rural
Indian consumers that have prevented them from understanding who
these consumers really are and establishing long-lasting brand
relationships with them.
Three Broad Dimensions Characterizing Change In Rural
Consumer Behavior
Our research identifies nine behavioral characteristics emerging among
the rural consumers in India. These have been organized into three broad dimensions:
1. Aspirational
2. Networked
3. Discerning
Aspirational:-
As incomes of India's rural consumers rise, they want to provide their
children with a better future through education and healthcare. In
addition, their shopping basket has begun resembling that of their urban
counterparts and includes products from categories they have not
purchased from in the past.
In the process of becoming more aspirational, rural consumers in India
are now:
Brand Savvy: Willing to invest in branded products to ensure quality
Trading Up: Want more features and better product designs to boost
social image
Explorers: Adopt new categories, using multiple channels
Networked
Rural consumers operate as members of tightly-knit communities, with
word of mouth playing a powerful role in their purchase decisions.
Today, they have greater access to mobile Internet, and consume the
same media–music, TV, movies–as urban consumers.
Discerning
Rural consumers no longer fall for fraudulent retailer tactics or blindly
accept a product only because it is low priced. At the same time, they
will not buy an expensive offering unless they are convinced of its utility
and longevity.
In their judgment, they are:
Street smart: More aware, not prone to fraudulent schemes
Value seeking: Evaluate total value of investment, not just price
Social: Information sharing with strong peer effect.
A rural marketing strategy refers to the planning of adequate supply of consumer goods and agricultural input to the villages at an affordable price to fulfil the needs of the consumers residing in these rural areas. Rural markets have a high potential and can generate huge sales volume for the companies which manufacture cost-efficient products and have active supply chain management.
For example:In rural markets, most of the selling products belong to spurious brands. These with a name similar to those of well-known brands have penetrated the Indian rural markets due to the product’s look-alike feature (copy of branded products) and cheap prices.
Brands like GlaxoSmithKline (GSK), a UK based multinational FMCG launched a product, Asha-milk food drink for rural consumers. The product was 40% cheaper than the outcomes of well-known brands like Horlicks. It gained popularity due to its excellent pricing strategy.
The Rural Marketing is based on 4As: Affordability,Availability,Assessibilty and Awareness.
Following are some of the factors which are taken into consideration while framing the product Strategies:
1.Product launch
2.New product design
3.Brand Name
4.Small unit Low price Packaging
The rural markets function diversely from the urban markets. Therefore, marketers need to customize a whole set of different strategies to penetrate the rural market.
Rural consumers are slowly upgrading to technology with the help of smartphones and computers. The companies must make use of simple and easy to access technological means to create awareness about the products in rural areas.
Therefore Business in India are more confident than ever about the growth of the country's Rural Consumer Markets.
Name: Shweta Janagekar
USN: GIT20MBA110
Roll No: 99
Div :B
Businesses in India are more confident than ever about the growth of the country's rural consumer markets. Rural consumers are particularly aspirational, striving to purshase branded, high quality products. The expectations of today's rural Indian consumers differ markedly from those of previous generations. They are moving away from purely economic concepts of value driven by low prices, towards a broader nation of value that combines price with the utility, and the anesthetics and features of products and services has changed the way India rural consumers buy.
India's rural consumers are changing fast. Because new attitudes, priorities and behaviors are reshaping the purchase decisions of India's rural consumers. These consumers are becoming far more aspirational, and networked and discerning. Our latest research challenges many traditional assumptions about how rural consumers make their purchases, and demonstrates how a few companies have managed to understand the changing rural consumers behavior.
The rural consumers in India are waiting to be served in new ways, and with new offerings. They have already stated deciding with brands they will pledge their loyalty to. The companies must augment thier physical reach by understanding the minds of these customers what they really want and why.
As incomes of India's rural consumers rise, they want to provide their children with a better future through education and Healthcare. In addition their shopping basket has begun resembling that of their urban counterparts and includes products from categories they have not purchased from in the past.
In the process of becoming more aspirational, rural consumers in India are now:
* brand savvy : willing to invest in branded products to ensure quality
* trading up :want more features and better product designs to boost social image
*explorers :adopt new categories, using multiple channels.
Name :sristi konnur
Roll No :103
Usn:GIT20MBA065-T
B Div
India is growing at an average annual rate of 7.6 for the past many years and it is expected to continue growing at an equal if not faster rate. The rapid economic growth is increasing and enhancing employment and business opportunities and in turn increasing disposable incomes. The rural consumers in India account for about 73 percent of the total consumers. In recent years, the lifestyle of a large number of rural consumers in India has changed dramatically and the process of change is going on. The buying behaviour of the rural consumers is influenced by several factors such as socio-economic conditions, cultural environment, literacy level, occupation, geographical location, efforts on the part of sellers, exposure to media etc.
India is growing at an average annual rate of 7.6 for the past many years and it is expected to continue growing at an equal if not faster rate. The rapid economic growth is increasing and enhancing employment and business opportunities and in turn increasing disposable incomes. The rural consumers in India account for about 73 percent of the total consumers. In recent years, the lifestyle of a large number of rural consumers in India has changed dramatically and the process of change is going on. The buying behaviour of the rural consumers is influenced by several factors such as socio-economic conditions, cultural environment, literacy level, occupation, geographical location, efforts on the part of sellers, exposure to media etc.
Several studies have shown that rural consumers are generally ignorant and they are also unorganised. Under these circumstances, the sellers or the manufacturers, exploit the consumers. Though, the consumers in India have been provided with various safety measures against their exploitation. In this paper, an attempt has been made to study the changing face of rural consumer in emerging markets.
Key Words: Globalisation, Rural Consumer, Rural Market, Rural Potential.
Introduction.
A report on survey conducted by National Council of Applied Economic Research (NCAER) says that there are 720 million consumers across the villages in rural India. Hence, the development of the nation largely depends upon the development of the rural population. Agriculture is the main occupation of the rural people for their subsistence. It has been observed in the report that the condition of the rural consumers is deplorable because they are being exploited in the rural markets on account of lack of competition among the sellers. Although the rural consumers face various problems like fake brands and spurious products, misleading advertisements, unfair warranties and guarantees, and unreasonable pricing but it hardly affects their passion to buying because they want to buy those products which reflect their prosperity level. Similarly, with globalization and liberalization, rural market in India expanded its potentialities across the world. Globalization describes a process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade. Globalization can be defined as the intensification of worldwide social relations which link distant locations in such a way that local happenings are shaped by events occurring many miles away and vice – versa. Globalization generally means integrating our economy with the economy of world. Globalization had its impact on various sectors including agricultural, industrial, financial, health and many others. Globalization has helped in:
0.Raising the living standards of people,
1. Alleviating of poverty,
2. Assuring food security,
3. Creating a market for expansion of industry and services, and
4. Making substantial contribution to the national economic growth
Name: Prathamesh Chachadi
Roll no: 72
USN: GIT20MBA043-T
Name; Omkar Ibrampurkar
Div: B
Roll no; 63
USN; GIT20MBA033-T
Name; Omkar Ibrampurkar
Div: B
Roll no; 63
USN; GIT20MBA033-T
Rural sector which was once disdained by one and all due to the uncivilised and barbarian culture, amenities and demeanour has recently come into global limelight. Once ignored, it is now receiving undivided attention and strong impetus from the government, various foreign and domestic companies. Right now the urbane problems of work life balance, home cooked food and cleanliness is a major concern that needs insightful solutions to be implemented
Some marketers no longer bother to make the distinction. "There is no difference between the urban and the rural consumer," Mayank Shah, group product manager at biscuit maker Parle Products, told Livemint. Consumption patterns are broadly similar – with more premium products being sold in rural areas and only total spend being less.
Accenture's research found that 71% of rural consumers buy branded products and the factors driving purchase are weighted 66:34 in favour of brand image, functionality and aesthetics as against price.
"The next generation of the rural consumer who is coming in has a higher exposure level than the previous generation," said Arun Pal, chief operating officer for domestic appliances brand Kenstar.
He cited the example of flat-screen TVs, sales of which are now split evenly between urban and rural areas, but just two years ago these were seen as an urban product.
Accenture undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Name; Omkar Ibrampurkar
Div: B
Roll no; 63
USN; GIT20MBA033-T
Rural sector which was once disdained by one and all due to the uncivilised and barbarian culture, amenities and demeanour has recently come into global limelight. Once ignored, it is now receiving undivided attention and strong impetus from the government, various foreign and domestic companies. Right now the urbane problems of work life balance, home cooked food and cleanliness is a major concern that needs insightful solutions to be implemented
Some marketers no longer bother to make the distinction. "There is no difference between the urban and the rural consumer," Mayank Shah, group product manager at biscuit maker Parle Products, told Livemint. Consumption patterns are broadly similar – with more premium products being sold in rural areas and only total spend being less.
Accenture's research found that 71% of rural consumers buy branded products and the factors driving purchase are weighted 66:34 in favour of brand image, functionality and aesthetics as against price.
"The next generation of the rural consumer who is coming in has a higher exposure level than the previous generation," said Arun Pal, chief operating officer for domestic appliances brand Kenstar.
He cited the example of flat-screen TVs, sales of which are now split evenly between urban and rural areas, but just two years ago these were seen as an urban product.
Accenture undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Name; Omkar Ibrampurkar
Div: B
Roll no; 63
USN; GIT20MBA033-T
Rural sector which was once disdained by one and all due to the uncivilised and barbarian culture, amenities and demeanour has recently come into global limelight. Once ignored, it is now receiving undivided attention and strong impetus from the government, various foreign and domestic companies. Right now the urbane problems of work life balance, home cooked food and cleanliness is a major concern that needs insightful solutions to be implemented
Some marketers no longer bother to make the distinction. "There is no difference between the urban and the rural consumer," Mayank Shah, group product manager at biscuit maker Parle Products, told Livemint. Consumption patterns are broadly similar – with more premium products being sold in rural areas and only total spend being less.
Accenture's research found that 71% of rural consumers buy branded products and the factors driving purchase are weighted 66:34 in favour of brand image, functionality and aesthetics as against price.
"The next generation of the rural consumer who is coming in has a higher exposure level than the previous generation," said Arun Pal, chief operating officer for domestic appliances brand Kenstar.
He cited the example of flat-screen TVs, sales of which are now split evenly between urban and rural areas, but just two years ago these were seen as an urban product.
Accenture undertook a research to understand how Indian rural consumers' behaviours and attitudes have evolved in the past few years and what influences their buying behaviour the most. The study included focus-group discussions in 10 states as well as a quantitative survey that went to more than 2,800 consumers in 320 villages and 32 census towns in eight states.
Name:Maruti Budale
Roll no:55
Div:A
USN:GIT20MBA042-T
CONSUMER ASPIRATIONS ARE CHANGING IN RURAL MARKET OF INDIA
India is on the march. Its momentum is not only evident in metros—it is
apparent in small towns and villages as well. Collectively, all over
India’s rural heartland and in its teeming cities, India is readying for an
even more impressive era of economic growth.
There is no question that India’s rural markets are becoming a powerful
economic engine. One telltale sign: rural accounts now comprise over
50 percent of new subscribers for some of the leading telecom providers.
The rural multiplier effect is what excites policy makers and business
leaders alike. For every new opportunity for a villager to use his mobile
phone to protect his crops, there is a knock-on opportunity for him to
purchase a small refrigerator or a motorcycle. There is a growing
realization that global investment and growth will increasingly come
from rural populations, as their savings translate into consumption.
But rural India’s contributions to the nation’s economic success and the
obvious potential for profitable growth is just a part of the promise of
wholehearted commitment to doing business beyond the city centres and
suburbs. India’s rural markets offer unprecedented opportunities for
global and local companies to experiment with approaches and business
models, which if successful, may be replicated in rural markets of other
emerging economies.
Rural Consumer Segments
Increased incomes, growing awareness and rising individual aspirations
are creating distinct consumer segments in India's hinterlands. Drawing
on granular analysis of responses to our survey, we have defined four
broad rural Indian consumer segments:
1. Traditionalist
2. Steady Climbers
3. Young enthusiast
4. Village Elites
1. Traditionalist
Traditionalist are the conservative rural consumers that rely on
conventional channels to make their purchase. Necessity drives mostof their purchase decision and they typically purchase the cheapest
offerings available.
2. Steady Climbers
Aspire for a more comfortable lifestyle. They want to enhance their
social standing among their peers and strive to do so by buying
branded products and offerings.
3. Young Enthusiast
Rural consumers aged 18-28, make extensive use of digital
technology and buy branded products to enhance their social image.
They powerfully influence the decision of other consumer segments.
4. Village Elites
Village elites are the progressive rural consumers, boasting high
education and awareness level. They desire the best in product quality,
features and aesthetics.
eed Recognition
Conclusion
Now it is clear that India lives in villages and Government is developing
the life of villagers to make them more and more luxurious. Some
highlights –
1. The development is not only evident in metros—it is apparent in
small towns and villages as well.
2. There is no question that India’s rural markets are becoming a
powerful economic engine.
3. For every new opportunity for a villager to use his mobile phone to
protect his crops, there is a knock-on opportunity for him to
purchase a small refrigerator or a motorcycle.
4. Consumption patterns in these areas are also gradually beginning
to mirror those of their urban counterparts.
5. Owing to this changing trend as well as the size of the market,
rural India provides a tremendous investment opportunity for
private companies.
Name: Abhishek singh rajpurohit
Roll No: 02
USN: GIT20MBA004-T
Div: "A"
Now-a-days, every company is excited about the potential of rural India and trying to get a grip on the rural market because the urban market is showing the sign of saturation. But the challenges are many: how to make the product affordable, how to penetrate villages with small population, connectivity, communication, language barrier, overcoming spurious brands etc. The reasons for companies going rural are manifold. Increasing rural incomes driven by agricultural growth, increasing enrolment in primary schools, high penetration of TV and other mass media which has increased the propensity to consume branded and value added products in rural areas. As per a study conducted by the Market information Survey of Households (MISH) and NCAER – rural India is quietly transforming and growing and becoming different. Today the rural market offers a vast untapped potential. According to a McKinsey survey conducted in 2007, rural India would become bigger than the total consumer market of many countries such as South Korea or Canada in another 20 years.
Marketers and manufacturers are becoming aware of the increasing purchasing powers, vast size and demand base of the once neglected Indian hinterland. They are now making efforts to understand the attitude of rural consumer. While entering the rural market companies are also resorting to CSR- Corporate Social Responsibility activities, thus helping the poor not only to augment their income but promote their products also. For example, Hindustan Uniliver’s Project Shakti not only brings revenues to the company but also assist poor rural women to become income earners by selling the company’s product in the rural markets. It provides entrepreneurial opportunity and thus improves the living standard of rural women. It is a win-win situation for the company as well as for the consumers. Some major companies that have focused in Indian rural sector so far are Asian Paints, P&G, and Bajaj Auto, LG electronics, Coca Cola, Hindustan Unilever, Britannia, Philips, Colgate, ITC and LIC. We are still to understand the rural consumer, his attitudes, and his habits, particularly from the marketing point of view. Following points explain the reasons why companies are going rural i.e. what attracts them:
Large and Scattered market
Major income from agriculture
Low standard of living
Traditional Outlook
Diverse socio-economic backwardness
Infrastructure Facilities
High Growth Rate
Name: Abhishek singh rajpurohit
Roll No: 02
USN: GIT20MBA004-T
Div: "A"
Now-a-days, every company is excited about the potential of rural India and trying to get a grip on the rural market because the urban market is showing the sign of saturation. But the challenges are many: how to make the product affordable, how to penetrate villages with small population, connectivity, communication, language barrier, overcoming spurious brands etc. The reasons for companies going rural are manifold. Increasing rural incomes driven by agricultural growth, increasing enrolment in primary schools, high penetration of TV and other mass media which has increased the propensity to consume branded and value added products in rural areas. As per a study conducted by the Market information Survey of Households (MISH) and NCAER – rural India is quietly transforming and growing and becoming different. Today the rural market offers a vast untapped potential. According to a McKinsey survey conducted in 2007, rural India would become bigger than the total consumer market of many countries such as South Korea or Canada in another 20 years.
Marketers and manufacturers are becoming aware of the increasing purchasing powers, vast size and demand base of the once neglected Indian hinterland. They are now making efforts to understand the attitude of rural consumer. While entering the rural market companies are also resorting to CSR- Corporate Social Responsibility activities, thus helping the poor not only to augment their income but promote their products also. For example, Hindustan Uniliver’s Project Shakti not only brings revenues to the company but also assist poor rural women to become income earners by selling the company’s product in the rural markets. It provides entrepreneurial opportunity and thus improves the living standard of rural women. It is a win-win situation for the company as well as for the consumers. Some major companies that have focused in Indian rural sector so far are Asian Paints, P&G, and Bajaj Auto, LG electronics, Coca Cola, Hindustan Unilever, Britannia, Philips, Colgate, ITC and LIC. We are still to understand the rural consumer, his attitudes, and his habits, particularly from the marketing point of view. Following points explain the reasons why companies are going rural i.e. what attracts them:
Large and Scattered market
Major income from agriculture
Low standard of living
Traditional Outlook
Diverse socio-economic backwardness
Infrastructure Facilities
High Growth Rate
Sanjay singhaniya said..
you don’t understand what your potential buyers/users are expecting from Brands and not only from products or services of these Brands, you risk to be out of their conversation and buying list. Why? Because they buy for consuming AND realizing their utopia. If you match only their product needs but miss their utopia you won’t probably be the chosen brand. And by the way, realizing utopia has a value (see my post on economic value).
While the Job To Be Done is helping you to understand the problem people are trying to solve when buying your product/services, the Aspirations will help you to understand their utopia they would like to realize through their consumptions. Some scholars are considering that Job To Be Done could be used for both, I personally prefer to split it and use Job To Be Done only for their personal problems they are trying to solve.
Great brands fire people’s hopes and ambitions. Aspirations — people’s hopes and ambitions — fuel choices. For marketers and brand builders, being tuned into people’s aspirations matters. Because brands that are aspirational win loyalty, premium and appeal. Brand owners and shapers strive to make their brands more aspirational. However, few brands are so in the minds of the consumers. This quality of ‘being looked up to’, aspired for, has become all the more vital, given the near parity of products and services and the domination of many categories by two-three big.
Great brands fire people’s hopes and ambitions. Aspirations — people’s hopes and ambitions — fuel choices. For marketers and brand builders, being tuned into people’s aspirations matters. Because brands that are aspirational win loyalty, premium and appeal. Brand owners and shapers strive to make their brands more aspirational. However, few brands are so in the minds of the consumers. This quality of ‘being looked up to’, aspired for, has become all the more vital, given the near parity of products and services and the domination of many categories by two-three big brands.
What do consumers aspire for and what makes a brand aspirational? There has been a big shift towards aspiration in society. The media coined the phrase “the politics of aspiration” to describe this shift. There has been frequent references to the confluence of three key factors — surge in disposable income, easy access to credit and exposure to media — that have affected people’s choices and mindset. Indians are now more aspirational and less fatalistic.
To understand what consumers aspire to, we adopted a unique approach of listening in. Our sample size was over 5,000 men and women in the age group of 25-35 years. Rather than using the usual research method of asking special questions of them, we were just listening in on their normal conversations. The discussions and questions were not moderated. The participants interacted in a natural
Great brands fire people’s hopes and ambitions. Aspirations — people’s hopes and ambitions — fuel choices. For marketers and brand builders, being tuned into people’s aspirations matters. Because brands that are aspirational win loyalty, premium and appeal. Brand owners and shapers strive to make their brands more aspirational. However, few brands are so in the minds of the consumers. This quality of ‘being looked up to’, aspired for, has become all the more vital, given the near parity of products and services and the domination of many categories by two-three big brands.
.
Name: shraddha jayavant patil.
Div:B
Roll no:64
USN no: GIT20MBA123-T
Rural markets now are attracting large number of firms and businesses.slowly rural markets are changing in India.the consumer of rural India are connected through technology.rural consumers are mostly dependent on agriculture and were not very literate about product and services available in the market till some time back.this scenario is slowly changing due to an increase in income and literacy.long ago,rural consumers went to anearby city to buy branded products and services.only selected households used branded products be it tea or jeans.earlier, big companies flocked to rural market to establish their brands.
Rural market these days are very critical for every marketer and company.may be it for a branded shampoo or a television. Earlier marketers thought of van campaigns,cina commercials,and a few wall paintings to entice rural masses under their folds. Today a customer in rural market is quite literate about branded products that are an offer in market place thanks to television and telecommunicationn media.
Many companies are entering into rural markets and educating rural population on newer products.their features and services and also about their maximise utilisation.the rural youth today are playing a far more significant role in influencing the purchase decisions.
They frequently travel out of village and are drivers of purchase decisions regarding radios,televisions,phones,
Automobile and other goods.they may not be end users but often these are people who influence purchase decision of high value products and they also decide on which brand to choose
The consumption level of consumer durables in rural sector has risen dramatically over the last two decades.the biggest challenge faced by marketers today is to develop a model to influence the rural customers mind over a large period of time and keep it going.the marketers who really need to understand rural markets and marketing agencies can make a difference and develop a communication model. The most important element is to understand rural customer and deliver appropriate suitable products to rural people. There is minimum brand loyalty in rural consumers.this is mainly due to higher problem of brand recognition.the challenge is to create communication that would help rural consumers in recognising brands, logos,visual,colour
Combination,etc.so that he or she actually buys actual brand and not something else
Name=Manthan Kadolkar
Roll no= 121
Division=B
Rural markets now are attracting large number of firms and businesses.slowly rural markets are changing in India.the consumer of rural India are connected through technology.rural consumers are mostly dependent on agriculture and were not very literate about product and services available in the market till some time back.this scenario is slowly changing due to an increase in income and literacy.long ago,rural consumers went to anearby city to buy branded products and services.only selected households used branded products be it tea or jeans.earlier, big companies flocked to rural market to establish their brands.
Rural market these days are very critical for every marketer and company.may be it for a branded shampoo or a television. Earlier marketers thought of van campaigns,cina commercials,and a few wall paintings to entice rural masses under their folds. Today a customer in rural market is quite literate about branded products that are an offer in market place thanks to television and telecommunicationn media.
Many companies are entering into rural markets and educating rural population on newer products.their features and services and also about their maximise utilisation.the rural youth today are playing a far more significant role in influencing the purchase decisions.
They frequently travel out of village and are drivers of purchase decisions regarding radios,televisions,phones,
Automobile and other goods.they may not be end users but often these are people who influence purchase decision of high value products and they also decide on which brand to choose
The consumption level of consumer durables in rural sector has risen dramatically over the last two decades.the biggest challenge faced by marketers today is to develop a model to influence the rural customers mind over a large period of time and keep it going.the marketers who really need to understand rural markets and marketing agencies can make a difference and develop a communication model. The most important element is to understand rural customer and deliver appropriate suitable products to rural people. There is minimum brand loyalty in rural consumers.this is mainly due to higher problem of brand recognition.the challenge is to create communication that would help rural consumers in recognising brands, logos,visual,colour
Combination,etc.so that he or she actually buys actual brand and not something else
Name=Manthan Kadolkar
Roll no= 121
Division=B
The book is all about the growing power of consumers in rural markets in developing countries in Asia and Africa. It examines the forces that are adding to rural prosperity, including the billions of dollars in remittances. And the young man waiting on Mahajan in the coffee lounge of a prominent New Delhi hotel becomes an instant case study. He comes from a village in Uttarakhand and landed in Delhi looking for work. His father tends to his farms back home. But the young man who is being quizzed says he sends money to his parents. And the money is transferred online. “That’s a live example of remittance going back to the village and adding to the rise in rural consumption," says Mahajan as he concludes his conversation with the waiter.
About 48% of the world’s population lives outside urban areas and nine of every 10 of those people, or about 3 billion, live in rural Africa or Asia, he says. “Companies that discount these consumers essentially cut their global marketplace in half. The bigger opportunity lies in the up-and-coming rural populations of emerging economies, particularly in Asia and Africa," he adds.
For the book, he focused on 10 countries with the largest rural populations, seven of them in Asia and three in Africa. The rural top 10 include India, China, Indonesia, Pakistan, Bangladesh, Nigeria, Ethiopia, Vietnam, Egypt and the Philippines.
Mahajan says he focused on these because collectively they total nearly 2.2 billion people or two-thirds of the entire world’s rural population. “They represent a massive market opportunity for the progressive consumer companies. These economies have increasing spending power," he says.
Between 2013 and 2015, Mahajan travelled to each of the rural top 10 countries, as well as to Thailand, Myanmar and Bhutan. In these countries, he discovered an increasingly affluent consumer base “whose needs were the same as any consumer I have seen anywhere around the world". So, a big takeaway from his travel around the world is that consumer aspirations are the same everywhere. There is no difference between the aspirations of the urban and rural consumers and the aspirations of rural consumers in different parts of the world, says the professor.
“From a marketing point of view, there are people who are poor, people who are rich and people who are in between. But their aspirations don’t change. After travelling to 60-70 countries, I can say that mothers everywhere are the same. They want to give their children better than what they have and they want them to achieve what they have not achieved. That’s why aspirations are universal,
Shreeyans mehta
Roll no 93
MBA B div
The buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12.
There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
First, rural consumers are more aspirational. Research findings indicate that Indian rural consumers are fuelled by a deep desire to provide their children a better future through education and healthcare. About 50 per cent of the survey respondents claimed that they plan to spend more on education of their children and healthcare of their family in the coming year. Today's rural consumer is also more brand savvy and is willing to spend more as long as quality is assured. About 71 per cent of respondents purchase branded products only. About 60 per cent of respondents, in fact, believe brands are trustworthy and reliable. As consumers are becoming brand conscious, they are also trading up and seeking more features and better product designs that enhance their social image.
Second, rural consumers are better networked. They are better connected in both the physical and digital sense. Technological developments, particularly deeper penetration of mobile telephony and direct-to-home (DTH) television into India's hinterlands, have also reshaped lifestyle and consumption patterns among rural consumers. The total number of telecom subscribers (mobile plus landline) in rural India crossed 378 million in July 2014. And of the 205 million internet users in India in 2013, 68 million lived in rural areas. Even more impressive, one-fourth of the 100 million people in India who access the Internet using mobile devices live in rural areas. Women and children now play a more empowered role in purchase decisions. The recent Indian Census data shows that as many as 35 per cent of rural households have both husband and wife earning money for their families.
Third, rural consumers are more discerning. Rural consumers are street-smart about common retailer ploys and schemes and view value through a broader lens and share more information with more peers. While companies might feel that a rural consumer can be swayed by celebrity endorsements or catchy ad lines, in reality, consumers don't fall for such tactics.
While the rural consumers' needs at different points in the purchase cycle are evolving, they are also quite different from those of their urban counterparts. Companies need to develop products and services that address the unique needs of customers, innovate on the mobility platform to drive awareness for their brands and increase their physical as well as mental reach to win loyalty.
Nabeel Sajid Jamkhandi
Roll Number 59
MBA A Division
USN= GIT20MBA039-T
Consider the businesses running I did a survey and found this following data
This edition of WARC’s Spotlight series puts the practice of rural marketing in focus. As brands look ahead to a less than positive economic climate in 2020, the preferences and priorities of rural India will become a critical foundation for marketers across industries currently rethinking their engagement playbook.
Any brand strategy to capture the hearts and wallets of a market like India cannot be done without knowing the proverbial ‘soul’ of India. Our expert contributors offer much food for thought in how brands need to re-adapt and re-engage.
Amit Tiwari, vice president of marketing at Havells India, lifts the curtain on the changes taking place in small-town and rural India via a recent ethnographic study conducted by the agency.
This edition of WARC’s Spotlight series puts the practice of rural marketing in focus. As brands look ahead to a less than positive economic climate in 2020, the preferences and priorities of rural India will become a critical foundation for marketers across industries currently rethinking their engagement playbook.
Shubham Angolkar
Roll no. 96
Div B
Assignment no 2
To talk about India without notice of the country's natural organizations would be carelessness for any brand searching for essential market transcendence or appeal.
It is a social event that addresses 12.2% of the all out people and is responsible for about portion of the country's GDP. Rural zones, according to Nielsen, is creating at around 1.5 events the speed of metropolitan areas, with the present USD$12 billion buyer items market in country India expected to hit USD$100 billion by 2025.
Noticeable metro place focuses, for instance, New Delhi, Mumbai, Chennai, Bangalore and Hyderabad have intermittently been advanced as ideal portrayals of India's quick stroll towards a high level and hyper-related economy.
However, past these metropolitan place focuses lies the rest of India – an emerging rush of purchasers, business visionaries and families whose lives have been forever changed by progress, development and the ceaseless stroll of overall exchange.
This arrival of WARC's Spotlight plan puts the demonstration of nation promoting in focus. As brands anticipate a not actually certain monetary climate in 2020, the tendencies and requirements of provincial India will transform into an essential foundation for publicists across adventures at present rethinking their responsibility playbook.
Any brand system to get the hearts and wallets of a market like India is unthinkable without knowing the popular 'soul' of India. Our lord benefactors offer a ton of something to consider in how brands need to re-change and reconnect.
Amit Tiwari, VP of displaying at Havells India, starts the movements happening around there and country India through another ethnographic assessment drove by the workplace.
"The certified potential that India holds can't be assessed absolutely without understanding the purchasers of unassuming local area and nation India, the environment where they exist, their social surface and their association with retail," he battles. "Do whatever it takes not to be stunned if you track down the modest local area or provincial Indian client more brand aware and unwavering then their metropolitan accomplices."
"The potential is huge, anyway the challenges for farmers and brands fast to target country networks are many," he creates. "The modernized change happening across common India holds some assurance, and everything starts with adaptable."
Nation advancing veteran Sandip Bansal, as of now supervisor client and field official at Dialog Factory for GroupM Media India points out that one ought to see that the spread-out rural India has express scattering needs.
A mix of instruction, objective, and extravagance further intensified by advancement driven permission is changing the genuine thought of the common client. The couple acknowledges that the since quite a while past held adages of publicizing to common organizations in the nation as of now don't hold impact and have lived well past their expiry dates.
"It's an ideal chance to put our suppositions about these business areas under the scanner," they fight. "The opportunity has arrived to leave them and interface even more sumptuously with the emerging common Indian purchaser."
Country India has changed and continues developing. Sponsors need to get reacquainted and rename the relationship or peril leaving behind what could be the best purchaser tsunami since, in light of everything, China.
Nama:sana kadolkar
Roll no.87
Div B
Rural markets have become integral part of global market. The rural markets are growing at above two times faster pace than urban markets. the buying prefrence of the rural people are changing fast as several factors like Economic, Physiological Technological, the rural market is changing very rapidly because very are well educated the market are better connected with roads Better transport number of bus and rail have increased. Nowadays rural people are also using branded products and also much of the brands are available in rural market in india rural consumers are better connected in both physical nd digital sense tjere has been increase in media penetration has played a vital role in rural market that the rural consumers are fuelled by a deep desire to provide their children a better future through education and health care about 40% of the survey respondents claimed they plan more to spend on education of their children and health care of the family the next generation of the rural consumers who is coming it has a higher exposure level then precious generation, brand need to extend not just their physical reach. But their mental reach aswell. Rural consumers aged of 20-28 make use of digital technology and buy branded products to enhance their social image. So companies need to develop product a d service that address the unique need of the consumer to win loyalty and brand value of the product...
Name - Swastik .K. Rajput
Roll no- 112
Div-B
USN-GIT20MBA071-T
Rural markets have become integral part of global market. The rural markets are growing at above two times faster pace than urban markets. the buying prefrence of the rural people are changing fast as several factors like Economic, Physiological Technological, the rural market is changing very rapidly because very are well educated the market are better connected with roads Better transport number of bus and rail have increased. Nowadays rural people are also using branded products and also much of the brands are available in rural market in india rural consumers are better connected in both physical nd digital sense tjere has been increase in media penetration has played a vital role in rural market that the rural consumers are fuelled by a deep desire to provide their children a better future through education and health care about 40% of the survey respondents claimed they plan more to spend on education of their children and health care of the family the next generation of the rural consumers who is coming it has a higher exposure level then precious generation, brand need to extend not just their physical reach. But their mental reach aswell. Rural consumers aged of 20-28 make use of digital technology and buy branded products to enhance their social image. So companies need to develop product a d service that address the unique need of the consumer to win loyalty and brand value of the product...
Name - Swastik .K. Rajput
Roll no- 112
Div-B
USN-GIT20MBA071-T
The game of marketing is all about a war between the heart and mind. The crux of this amusement is the pocket share. The complexity in this multi-faceted world is constantly increasing. The opportunities exist in resolving confusions and facilitating decision-making amongst the copious brands that exist and throng the marketplace. The changes that are constant are paradoxical at times. The scope of development had been pioneered and sustained by the FMCG companies like HUL, Colgate-Palmolive, Philips, et al. With the execution of their developmental approach, the rural markets had been well nurtured by the agri-input marketers and government agencies.
Although rural marketing is a tough cookie to crack, the opportunities and potential for growth is immense. Hence, with a mind to look at the positive side of things, we must remember what all we need to do, in order to work the rural market in just the right way.
It is a group that accounts for 12.2% of the world’s population and is responsible for about 50% of the country’s GDP. Rural areas, according to Nielsen, is growing at around 1.5 times the rate of urban areas, with today’s USD$12 billion consumer goods market in rural India expected to hit USD$100 billion by 2025.
Why is rural such a discounted reality? Why is it that even before we pry we decide not to try? Just the definition of rural, up until now has been enough to drive us away from Rural India. More and more people have migrated from rural to urban. As the years went by, urban has now become completely saturated and simply has no scope left. You can’t expect to sell a smartphone in a city like Delhi, until and unless your product really has something special and unique to offer. Brands who are not innovators, but mere imitators won’t get very far in such a market
Name- Hrishikesh Nilajkar
Roll No.- 39
DIV- A
USN - GIT20MBA120-T
buying preferences of India's rural consumers are changing fast and several factors - economic, psychological, and technological - are coalescing to fuel this transformation. Rural consumers' income levels are on the rise, enabling more of them to buy products and services that improve the quality of their lives. The monthly per capita spending among rural consumers has increased 17 per cent between FY10 and FY12, higher than the 12 per cent rise among urban consumers. Disposable incomes have gone up and fuelled aspirations, thus, resulting in a change in buying preferences. Spending on non-food items rose from 40 per cent of the total spend in FY2005 to more than 50 per cent in FY12.
There has also been a shift in the awareness levels of the rural consumer and the increased media penetration has played a vital role in rural India's values and attitudes. These economic trends, socio-economic changes and recent advances in technology, have triggered major changes in how rural consumers make purchase decisions and what they buy and from where they buy.
Name:Umeera Shaikh
Roll No:115
Nice blog, check this also - online marketing
I am really impressed with your blog article such a great article post here. also visit here for social media marketing service and social media marketing firm
This was a great read and reminder to prepare ourselves for the coming year! And after all the crazy we went through in 2020, it's important to remember your tips above, especially making specific and measurable goals. Too often, vague goals are set, with no real means to measure progress towards them, and they end up discarded and forgotten by spring. Pi Network Review Setting specific and measurable ones can hopefully keep us engaged on our progress throughout the year
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