Rural Marketing

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tingRURAL MARKETING
By: Kumar Gaurav Rastogi. ( MBA, CUIM)

Rural India


740 million people
24 languages… 1642 Dialects 6,38,691 villages and 5,164 towns







70% population still rural & agrarian 41% are illiterate
56% HH - no access to electricity 70% HH have no bank account









96% have no telephones
7% have two wheelers & 1.3% have 4 wheelers



By: Kumar Gaurav Rastogi. ( MBA, CUIM)

Rural Market Structure
   

Demographic Environment Physical Environment Economic Environment Social, Cultural & Political Environment

By: Kumar Gaurav Rastogi. ( MBA, CUIM)

Demographic Environment

POPULATION
Total Population (milliion) Rural Population (milliion) Rural proportion to total Source: Census 2001

1971 548 439 80%

1981 683 524 77%

1991 848 629 74%

2001 1027 742 72% Distribution of Population by Age groups Age Group 0–4 Rural 13 Urban 11

5 – 14

26
9

23
10

1991
Rural Househol ds (million) Urban Total Rural

2001
Urban Total

15–19

20–34
35–54

23
19

28
20

112

40

152

138

54

192

55+

10

8

By: Kumar Gaurav Rastogi. ( MBA, CUIM)

Physical Environment

Distribution of Towns & Villages
1991 Towns Villages 3697 580779 2001 5161 593154 Hardly any shops

Distribution of Villages
Population Less than 200 200-500 501-1000 1001-2000 2001-5000 5001-1000 Total no of villages No of Villages 92,541 1,27,054 1,44,817 1,29,662 80,313 18,758 5,93,154 By: Kumar Gaurav Rastogi. ( MBA, CUIM)

% of total villages 15.6 21.4 24.4 21.9 13.5 3.2 100

Economic Environment
Distribution of Rural Household by Income Income Class
Very Rich Upper Middle Middle Low Middle

Annual Income
Rs. 215000 Rs. 45000 – 215000 Rs. 22001-45000 Rs.16001-22000

1995-96
0.3% 13.5% 31.6% 31.2%

2006-07
0.9% 25% 49% 14%

Low

Rs.16000 & below

23.4%
100%

11.1%
100%

Total

By: Kumar Gaurav Rastogi. ( MBA, CUIM)

Rural Economy





Agriculture Industry Service

1995-96 43% 19% 38%

2004-05 32% 22% 47%

Consumption Pattern (%) (2001-02)






 

Food Consumer Goods Fuel, clothing & footwear Medical Education Rent & Taxes

Rural 63.7% 13.1% 14.8% 5.5% 2.5% 0.4%

Urban 51.5% 19.6% 13.9% 5.5% 5.1% 4.5%

By: Kumar Gaurav Rastogi. ( MBA, CUIM)

Importance of Rural Markets
12.2% of world Population  120 million households  70 % of Indian households  Use 52 % of durables in the country 

By: Kumar Gaurav Rastogi. ( MBA, CUIM)

Environment


The difference between rural & urban markets based on various socio-economic factors, most dominant being the source of income, the frequency of receipts of income, the seasonal nature of income & consumption.

By: Kumar Gaurav Rastogi. ( MBA, CUIM)



Rural markets are small, continuous settlement units of village with lower infrastructure facilities; low density of population, different lifestyle.

By: Kumar Gaurav Rastogi. ( MBA, CUIM)

Factors critical for Segmentation
 





Differences and variations in climate Development levels: electricity, road connectivity Differences in Food habits: North v/s south Cultural differences: Traditional south v/s outgoing north

By: Kumar Gaurav Rastogi. ( MBA, CUIM)

Factors critical for Segmentation


 

 

Intra region differences -caste based hamlets Variation in population size and density Variation on literacy levels -Bihar v/s Kerala Media exposure levels Differences in income levels and patterns of income flow -Farmers v/s daily wage earners By: Kumar Gaurav Rastogi. ( MBA, CUIM)

Occupation & Consumption Patterns
Category % House holds % TV ownership % two wheeler ownership 33
16 31 3

(Bijapurkar 99)

% Refrigerator s
31
20 39 2

Owner Farmer
Trader Service Agricultural worker

34
8 13 20

33
14 13 6

Non agri workman Artisan Others

17 6 2

9 6 2

4 4 1

5 2 1

By: Kumar Gaurav Rastogi. ( MBA,...
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