rural market reasons
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8/9/2019 rural market reasons
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Copyr i
gh
t
2012
Dor l
ingK
inder
sley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
Chapter 11
Marketing in Small Towns
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8/9/2019 rural market reasons
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Copyr i
gh
t
2012
Dor l
ingK
inder
sley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
Learning Objectives
# De$ine s%all to&ns" their potential and relevan'e
# (nderstand the )ehaviour o$ s%all*to&n 'usto%ers
# (nderstand the strategi' i%portan'e o$ s%all to&ns $or rural%ar!eters
2
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Copyr i
gh
t
2012
Dor l
ingK
inder
sley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
Small Towns and Their Potential
#+o&ns &ith population o$ less than one %illion
#,vaila)ility o$ ade-uate land" lo&er 'onstru'tion 'osts a greatadvantage
Number
o Cities
Share
o !!s
"ncome
per !!
Share o Total#isposable
"ncome
+ier I 2/ 1"000 /
+ier II 2 13 12/"000 14
+ier III / 1"000 /
+ier I5 3.0/4 46 114"000 /
+7+,L 3"10 100 100
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Copyr i
gh
t
2012
Dor l
ingK
inder
sley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
The Potential o Small Towns
#8%all to&ns 'onstitute 3/ o$ the ur)anpopulation
Town Population $in per cent%
Source& Mc'inse( )lobal "nstitute*
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Copyr i
gh
t
2012
Dor l
ingK
inder
sley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
The Potential o Small Towns
# In'o%e levels and )uying po&er
#istribution o "ndia+s ,rban Population b( Cit( Tier
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Copyr i
gh
t
2012
Dor l
ingK
indersley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
#istribution o !ouseholds b( "ncome and Si-e o Town $in per cent%
The Potential o Small Towns
# In'o%e levels and )uying po&er
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Copyr i
gh
t
2012
Dor l
ingK
indersley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
The Potential o Small Towns
#9ridge )et&een ur)an and rural
#8%all to&ns 'ater to 200 near)y villages
# In$rastru'ture opportunities
Small Towns as .ridges .etween ,rban and /ural "ndia
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Copyr i
gh
t
2012
Dor l
ingK
indersley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
The Potential o Small Towns
#Penetration o$
dura)les and
:C;
!ousehold Penetration o #urables and 0MC) Products $in per cent%
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Copyr i
gh
t
2012
Dor l
ingK
indersley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
The Potential o Small Towns
#Penetration o$ dura)les and :C;!ousehold Penetration o !ighend #urables in Towns with Less
than 1223222 Population
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Copyr i
gh
t
2012
Dor l
ingK
indersley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
Small Town Consumer.ehaviour
#
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Copyr i
gh
t
2012
Dor l
ingK
indersley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
Small Town Consumer.ehaviour
# ;ro&ing a$$luen'e" leading to a )etter standard o$ living.
# In'rease in a&areness and edu'ation due to penetration o$
D+>" C?8 and Internet
# Changes in aspirations and li$estyle espe'ially a%ongst youth
# In'reasing )rand a&areness and pre$eren'e $or pre%iu%
produ'ts and servi'es
# Consu%er )uying )ehaviour in s%all to&ns re$le'ts )oth
ur)an and rural and is there$ore a %i=
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Copyr i
gh
t
2012
Dor l
ingK
indersley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
Strategic "mportance o SmallTowns or /ural Marketers
#,s selling and redistri)ution 'entresProducts Purchased rom #ierent Locations b( /ural Consumers $in per cent%
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Copyr i
gh
t
2012
Dor l
ingK
indersley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
Strategic "mportance o SmallTowns or /ural Marketers
# ,s servi'ing 'entres
# ,s a hu) $or availing servi'es in the area o$ health"
edu'ation and $inan'ial servi'es
# ,s the agri'ultural lin!age
# ,s a pla'e $or leisure and entertain%ent
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Copyr ig
ht
2012
Dor l
ingK
indersley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
Products Purchased rom #ierentLocations b( /ural Consumers
Products 6illageNearb(
Shand(7Mela
Larger6illage
Close b(
NearestTown
LargerTownClose
b(
Cit(
)roceries 89 : 8 1: 8 8
0ood articles :; 1; : 1: : : 8 11 ;8 1= 11
?griinputs 1< 9 1; => ;2 ;2Clothes 70ootwear
: 11 9 =@ ;; ;:
#urables < 8 8 =8 ;@ =@
?ll igures in percentages* 0or urther details reer Table 11*
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