rural customer & env

8/7/2019 Rural Customer & Env.

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What is a rural customer like?What is a rural customer like?

Very intelligent and cleverVery intelligent and clever cannot becannot be

easily hoodwinked.easily hoodwinked.

Daily activity is routinizedDaily activity is routinized

Plenty of time / No SundaysPlenty of time / No Sundays

Very conscious of value for moneyVery conscious of value for money

Does not like to pay extra for frills heDoes not like to pay extra for frills he

cannot use.cannot use.


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High involvement in any product purchasedHigh involvement in any product purchased

Very keen on trial packages.smallerVery keen on trial packages.smaller

packagespackages

Perceptions, traditions, values vary from statePerceptions, traditions, values vary from state

to state and in some cases from region toto state and in some cases from region to

region within a stateregion within a state

Divisions based on caste, community and otherDivisions based on caste, community and other

hierarchical factors continue to exist.hierarchical factors continue to exist.


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Characteristics of a ruralCharacteristics of a rural

customercustomerAge & stage in life cycleAge & stage in life cycle

Occupation & incomeOccupation & income

Economic circumstancesEconomic circumstances

LifestyleLifestyle

Personality & self conceptPersonality & self concept

Psychological factorsPsychological factors


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Rural market environmentRural market environment

Demographic environmentDemographic environment

Physical environmentPhysical environment

Economic environmentEconomic environment Social & cultural environmentSocial & cultural environment

Political environmentPolitical environment

Technological environmentTechnological environment


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Demographic environmentDemographic environment

74 crore population74 crore population

Growth of purchasing power (from 40% inGrowth of purchasing power (from 40% in1991 to 51% in 2009)1991 to 51% in 2009)

Age: 48% of population below 20Age: 48% of population below 20

Literacy rate gone up by 23% in the last 20Literacy rate gone up by 23% in the last 20yearsyears

Family structures: moving from joint toFamily structures: moving from joint tonuclear familiesnuclear families

Occupation : 40% farmersOccupation : 40% farmers seasonal incomeseasonal income


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Physical environmentPhysical environment

Scattered populationScattered population

24% villages with population< 500, no shops.24% villages with population< 500, no shops.Only market here is weekly haats.Only market here is weekly haats.

Villages with population> 2000 have 15Villages with population> 2000 have 15--1616

shopsshops


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Economic environmentEconomic environment

Moving from lower income to higher incomeMoving from lower income to higher income

Number of households of middle class (annualNumber of households of middle class (annualincome: Rs. 45,000income: Rs. 45,000--2,15,000)2,15,000)

Rural 27.4 millionRural 27.4 million

Urban 29.5 millionUrban 29.5 million

From kucchha houses to pucca houses ( aboutFrom kucchha houses to pucca houses ( about

50% pucca houses)50% pucca houses)

From food products only to durables &From food products only to durables &branded productsbranded products


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Social / Cultural environmentSocial / Cultural environment

Caste system ( eg. thakur gaon , harijanCaste system ( eg. thakur gaon , harijan

village, etc)village, etc)

Conservative societyConservative society Less exposure to mediaLess exposure to media

Strong opinion leadership conceptStrong opinion leadership concept


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Political environmentPolitical environment

Panchayati Raj: 3 levels of the panchayat,Panchayati Raj: 3 levels of the panchayat,

district leveldistrict level

block levelblock levelvillage levelvillage level

Sarpanch at block levelSarpanch at block level

Gram sabha ( general assembly of villagers atGram sabha ( general assembly of villagers atleast once a quarter)least once a quarter)


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Technological environmentTechnological environment

Green revolution (1967Green revolution (1967--78)78)

country wide food self sufficiencycountry wide food self sufficiency

White revolutionWhite revolutionmilk productionmilk production

NGO movementNGO movement


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Challenges to rural marketingChallenges to rural marketing

AvailabilityAvailability

AffordabilityAffordability

AcceptabilityAcceptability

AwarenessAwareness


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AvailabilityAvailability

ChallengeChallenge

Regularly making the product reach to farRegularly making the product reach to far

flung areasflung areas Indias 627,000 villages are spread over 3.2Indias 627,000 villages are spread over 3.2

million square kilometersmillion square kilometers


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StrategiesStrategies

Reach out atReach out at

Chaupals, mandis, haats, places of worshipChaupals, mandis, haats, places of worship

HUL used bullock carts, auotorickshaws,HUL used bullock carts, auotorickshaws,bicycles & boats in Kerala backwaters tobicycles & boats in Kerala backwaters to

supply to villagerssupply to villagers

Coca colas hub & spoke approach (weeklyCoca colas hub & spoke approach (weeklysupply to distributors)supply to distributors)


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AffordabilityAffordability

ChallengeChallenge

To provide at cheaper priceTo provide at cheaper price

StrategyStrategy Introduce smaller packagesIntroduce smaller packages

Godrej introduced packages of cinthol ,fair &Godrej introduced packages of cinthol ,fair &

glow priced at 4glow priced at 4--5 Rs. particularly for the5 Rs. particularly for thevillagers ofM.P., U.P, & Bihar, Chikvillagers ofM.P., U.P, & Bihar, Chik

shampoo, chota coca colashampoo, chota coca cola


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AcceptabilityAcceptability

ChallengeChallenge

To be accepted & adoptedTo be accepted & adopted

StrategiesStrategies Better communication (AIDCA model)Better communication (AIDCA model)

DemonstrationsDemonstrations


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AwarenessAwareness

ChallengeChallenge

Low literacy rate, less exposureLow literacy rate, less exposure

StrategiesStrategies Use opinion leadersUse opinion leaders

One on one trial programsOne on one trial programs

Melas can be used for: sampling ,Melas can be used for: sampling ,

demonstrations, retail sale pointdemonstrations, retail sale point

rural customer & env

Documents