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The rural consumer is discerning & the rural market is vibrant.

At the current rate of growth itll soon outstrip the urban market. The market is not sleeping any longer.

We are.
----- Adi Godrej

India-Population Distribution

13-04-2012

Rural Consumer Behavior

Neeraj Mehla(A-25)

Population Distribution
RURAL POUPLATION IN STATES

13-04-2012

Rural Consumer Behavior

Neeraj Mehla(A-25)

Landscape & Income distribution

13-04-2012

Rural Consumer Behavior

Neeraj Mehla(A-25)

Consumption

13-04-2012

Rural Consumer Behavior

Neeraj Mehla(A-25)

Rural India

13-04-2012

Rural Consumer Behavior

Neeraj Mehla(A-25)

Consumer
Consumer is a broad label for any individuals or households that use goods and services generated within the economy.

C-level Executives

Typical Indian Farmer

Housewife

13-04-2012

Rural Consumer Behavior

Neeraj Mehla(A-25)

Consumer Behavior
Consumer behaviour is the study of when, why, how, and where people do or do not buy a product. Understand the buyer decision making process, both individually and in groups. Studies characteristics of individual consumers such as demographics and behavioural variables.
C-level Executives Typical Indian Farmer Housewife

13-04-2012

Rural Consumer Behavior

Neeraj Mehla(A-25)

Rural Consumer Behavior


Buyers of rural & urban areas differ in their characteristics while buying any product

Because
Age & Lifecycle stage- Child, Teenage, Young, Middle age, Old
Occupation- Fishermen, Farmers, Shopkeepers Economic Situation- Disposable incomes, Savings, Creditworthiness Life style- Affluent, Climbers, Aspirants, Destitute Personality & Self concept Psychological factors( Perception, Cognition, Motivation)
13-04-2012

Rural Consumer Behavior

Neeraj Mehla(A-25)

Black Box Model

13-04-2012

Rural Consumer Behavior

Neeraj Mehla(A-25)

STAGES IN BUYING PROCESS


BUYING PROCESS RURAL CONSUMER BEHAVIOR
High involvement product(Tractor), Productivity drives consumers recognition for need
First hand information from a fellow owner & nearby dealer at district town(Exposure to electronic media)
Lower education/awareness He depends on fellow owner & illustration of dealer Consults opinion leader e.g Progressive farmer(Repeats process several times Live field demonstrations are crucial to evaluation

Need Recognition Information Search


Evaluation Of Alternatives

Purchase Decision Post Purchase Behavior

Collective decision by buyer, adult son & progressive village farmer Very less or No say of women in the process Higher satisfaction, lower dissonance(Risk taken is low) Low risk taking ability, Lack of technical knowhow, after sales service Rural Consumer Behavior Neeraj Mehla(A-25)

13-04-2012

Mantra for success

There is a need for a paradigm shift in the thinking of the top management of the companies which have been reluctant to realize the potential of rural markets.
Rural markets remain untapped because of 3 Ds

Distance Diversity Dispersion

4 As for Rural Marketing

Affordability
Acceptability Accessibility Awareness Rural Consumer Behavior Neeraj Mehla(A-25)

13-04-2012

Consumption Pattern
PRODUCT PROPER
MESSAGE MEDIA CHANNEL PRICE
Social & Cultural factors (Rural customer is highly rigid in terms of cultural values & beliefs) Television viewing is community viewing( Less electrification) Perceptions about the product changes from region to region e.g Washing machine Nature of occupation e.g-Daily wage system would force one to pay a smaller purchase price
13-04-2012

Rural Consumer Behavior

Neeraj Mehla(A-25)

Products in Rural India

13-04-2012

Rural Consumer Behavior

Neeraj Mehla(A-25)

Initiatives by Dabur

13-04-2012

Rural Consumer Behavior

Neeraj Mehla(A-25)

Initiatives by HUL, ITC


PROJECT SHAKTI AMMA-

Shakti: Micro-businesses, massive impacts Shakti is THE initiative that combines social responsibility, sustainability, and business strategy. India has more than 6,30,000 villages, most of these are 'hard to reach' and offer relatively lower business potential. Hence, reaching them through the conventional distribution system is a challenge.

e-Choupal
States covered Villages covered No. of e-Choupals

Now
10 40,000 6,500

Farmers e-empowered
13-04-2012

4 million
Neeraj Mehla(A-25)

Rural Consumer Behavior

Lets tap the untapped

13-04-2012

Rural Consumer Behavior

Neeraj Mehla(A-25)

Thank you

13-04-2012

Rural Consumer Behavior

Neeraj Mehla(A-25)

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