Topics: Decision making, Decision theory, Decision making software Pages: 14 (2896 words) Published: March 12, 2011
|Current Marketing Practices in Consumer Durables in |
|Rural India |
| |
| |





Indian Rural Market:2

Recent shift in attention from urban to rural market:2

Special Features of rural markets:3




Respondent 17

Respondent 28

Respondent 310

Learnings from the Project13








Indian Rural Market:

The census of India defines rural market as any inhabitation where the population density is less than 400 per sq. km., where at least 75% of the male working population is engaged in agriculture and where there exists no municipality or board. This definition encompasses 70% of Indian population, who resides in 6.4 Lakh villages.

Recent shift in attention from urban to rural market:

The Indian rural market has a huge demand base ad offers great opportunities to marketers. Two-thirds of Indian consumers live in rural areas and almost half of the national income is generated here. The reasons for heading into the rural areas are fairly clear. The urban consumer durable market for products like colour TVs, washing machines, refrigerators and air conditioners is growing annually at between 7 per cent and 10 per cent. The rural market is zooming ahead at around 25 per cent annually. "The rural market is growing faster than urban India now," says Venugopal Dhoot, chairman of the Rs 989 –crore (Rs billion) Videocon Appliances. "The urban market is a replacement and up gradation market today," adds Samsung's director, marketing, Ravinder Zutshi. 'Go rural' is the slogan of marketing gurus after analyzing the socio-economic changes in villages. The Rural population is nearly three times the urban, so that Rural consumers have become the prime target market for consumer durable and non-durable products, food, construction, electrical, electronics, automobiles, banks, insurance companies and other sectors besides hundred per cent of agri-input products such as seeds, fertilizers, pesticides and farm machinery. The Indian rural market today accounts for only about Rs 8 billion of the total ad pie of Rs 120 billion, thus claiming 6.6 per cent of the total share. So clearly there seems to be a long way ahead. Although a lot is spoken about the immense potential of the unexplored rural market, advertisers and companies find it easier to vie for a share of the already divided urban pie. The success of a brand in the Indian rural market is as unpredictable as rain. It has always been difficult to gauge the rural market. Many brands, which should have been successful, have failed miserably. More often than not, people attribute rural market success to luck. Therefore, marketers need to understand the social dynamics and attitude variations within each village though nationally it follows a consistent pattern looking at the challenges and the opportunities which rural markets offer to the marketers it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage. A radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for, so they can successfully impress on the 230 million rural consumers spread over approximately six hundred thousand villages in rural India.

Special Features of rural markets:

Unlike urban markets, rural markets are difficult to predict and possess special characteristics. The featured population is predominantly illiterate, have low income, characterized by irregular income, lack of monthly income and flow of income fluctuating with the monsoon winds. Rural markets face the critical...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Prospects and Challenges of Rural Marketing in India Essay
  • Information Technology and Rural Marketing in India Essay
  • Practice Marketing Simulation Essay
  • Rural Marketing in India Essay
  • Essay on Innovation in Rural Marketing in India
  • Importance of Rural Marketing in India Essay
  • Rural Marketing Essay
  • Rural Marketing Strategy by Colgate Essay

Become a StudyMode Member

Sign Up - It's Free
Running Man Episode 397 | ', CENTER);" onmouseout="return nd();">my kitchen rules s10e14 hdtv x264 fqm[eztv] mkv torrent icb torrent | weiter...