Rural marketing

Module 2

Socio Economic Position

Low Purchasing Power/ per Capita income Bounded by tradition, culture, religion & community. 60% rural income from agriculture >50% have income <Rs.25,000.00 About 14% have income >50,000 In recent years, 70% rural households have started saving their income. (Service class, non- farmers like shop keepers)

 Culturally a Diverse and heterogeneous market In terms of religious, linguistic, social & Cultural factors. State to State variation in extent of development from study conducted by IMRB (Indian Market Research Bureau) provides development index points for each state on Health & Education Availability of Public Transport Electricity TV Transmission Banks Post Offices Water Supply etc,

Average villages 33 index points In Kerala 88 index points Bihar 22 UP, MP, Rajasthan - close to 22 Maharashtra, Haryana, Karnatka 40- 50

Literacy Level
Rural India has literacy rate of 28% compared with 55% of the whole country. Scenes have changed since last few years. Literacy rate has increased from 20% to 28%. Every year 8 million people get added to rural Indias literate population. Adult literacy programmes have been launched.

Life Style:
Conservative & tradition bound. But it has changed to a good extent due to: Increase in income Growth in Education Enlarged media reach Growing interaction with urban area Marketers effort to reach rural areas

Buying Behaviour:
Factors that influence Literacy Level Occupation Social & Cultural Factors Exposure to media Exposure to Urban Life Style Marketers Efforts The way the product is used. Involvement of others in the purchase

 The buying behaviour has undergone a major change. There are people in the rural area whose income has increased & they have the potential to buy expensive products.

The Rural Demand: Some well Established Products

Pressure Cooker Cooking utensils Batteries Cycles, bikes, Scooters, Radio/ Tape Pesticides, Fertilizers Tea Toothpowder / Paste Sewing Machine Artificial Jewelry Medicines Tobacco & Products Bathing Soaps, Washing cakes, Washing Powder Cell Phones Fans TV Wrist Washes

Recent Trends
Steady Growth Welcome Change in the Composition of Rural Demand. Several Products already well established in the rural market. In many products, rural consumption accounts for a larger share than urban In many products, rural consumption accounts for a larger share than urban. In many products, rural market has overtaken the urban in growth rate detergent powders, washing soaps, analgesics. Position of Durables (bicycle -53, ceiling fan 19, radio 42)

 Who buys the high priced durables in the rural areas? NCAER ( National Council For Applied Economic Research) Classified Durables into 3 Categories Low Price Durables Watches, radios, irons, fans, etc.. Relatively higher price durables b/w TV, Sewing Machines, Mixers, High aspiration & high Priced Color TVs, Refrigerators, Motorized two wheelers