Rural Marketing of Consumer Durables

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Rural marketing of consumer durables
A study of two Taluka

Table of Content

1.Executive Summary……………………………………… 2.Introduction……………………………………………….. 3.Overview of the Auto segment………………………… 4.Review of Literature……………………………………… 5.Objective of the study………………………………… 6.Scope of the study……………………………………….. 7.Research methodology…………………………………. 8.Limitation of the study………………………………….. 9.Car’s Profile……………………………………………….. 10.Finding and Analysis……………………………………. 11.Cross Tabulation…………………………………………. 12.Conclusion………………………………………………… 13.Annexure…………………………………………………...

Executive summary
The rural market has changed drastically in the past one decade. A decade ago, the rural market was more unstructured and was not a prioritised target location for corporates. Very few companies, mainly the agro-based ones, were concentrating in these markets. Their were no innovative strategies and promotional campaigns. A distribution system did exist, but was feeble. Illiteracy and lack of technology were the other factors leading to the poor reach of products and lower level of awareness amongst villagers. Gradually, corporates realised that there was saturation, stiff competition and clutter in the urban market, and a demand was building up in rural areas. Seeing the vast potential of 75 per cent Indians living in rural areas, they started focusing on these unexplored, high-potential areas.

What is rural market:

There is different definition for rural market.
(a)As per the latest census, the rural market has been defined as a place where where the population is not more than 5000,the density of population is not more than 400 per square km and at least 75% of male working population is engaged in agriculture. (b)A simple definition from marketers view would be “any market that exits in the area with less than 100000 population ,low density of population and without significant infrastructure facilities in rural market ” (c)Most companies in FMCG would define rural as any place with population upto 20000 . (d)Consumer durables companies would consider any town with a population below 500000 as rural.

Objectives :
To find out buying patterns of consumer durables in rural marketing. •To find out out the challenges and opportunities in rural market. •To know the different marketing stratergy used in rural market for the consumer durables . •To know the consumer behavior for consumer durables in rural market. •To know the future perspectives of consumer durables of rural market in consumer durables .

CONSUMER DURABLE GOODS
SURVEY’

a comprehensive Survey of industries in the consumer durable goods sector. , based on feedback and interaction with representatives of consumer durables industry, allied industry organizations, associations, Government agencies and public sector undertakings, reveals that sector is poised for a quantum leap due to technological improvements, falling prices due to competition, aggressive marketing and declining import tariffs.

The Survey reflects the changing dynamics of consumer behaviour luxury goods are now being perceived as necessities with higher disposable incomes being spent on lifestyle products. There is a discernible shift in the consumers’ preference in favour of higher-end, technologically superior branded products, the demand being spurred by increasing consumer awareness and preference for new models. This shift is also explained by the growing trend of products being manufactured in the organized sector of the economy and the narrowing down of the price differential between branded and non-branded goods. Competition has forced companies to offer efficient after sales service and support and this, in turn, has swayed customer preference for branded products.

The Survey highlights the positive growth trends in consumer durable segments white goods and consumer electronics during April-March 2004-05 and points to...
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