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Rural Consumer Behavior

A journey of understanding the rural consumer behavior
by

Benjamin Mathew

on 3 May 2016

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Transcript of Rural Consumer Behavior

Enigmatic
Rural Consumer
Understanding the Rural Consumer Behavior
Who Am I ?
b e n j a m
i n
Nah!
Okay...With your permission...shall we
THIS WILL BE ONE OF
Your Expectations
So what are we
going to go through
Layout of Presentation
Indian Demographics
Defining
Rural
Understanding
Rural
Consumer
Behavior
Some Myth's
Some Realities
Insights
and finally......
Share an example
if at all time permits
So then..
.
Lets Roll
Can i ask a few questions?
How many States in India..?
28 or 29
Number of Districts
593 or 640
Number of Blocks
600 or...6087
Number of Villages
6,40,000
Where Does
India Live
Urban - 30% Pop
70 Million HH
Rural - 70% Pop
164 Million HH
If we call this rural then...
Definition of Rural
75% of male pop engaged in agriculture or allied activities
Per sq km density of population does not exceed 400 persons
No municipality or board.
Distribution
of Villages
0.23 Million outlets there are hardly any shops...extremely limited economic activity
17% of villages contributing to 50% of Population and 60% of wealth
Distribution
of Cities & Towns
90% of all durables bought in rural are from these 1900 towns.
The Scenario By Marketing Jargon..
Small Towns
Not so Small
&
Contributes
Income
Morphing
to Diamond
Kept all eggs in one basket
Who are these people?
Understand HIM
& HER
Definitely this guy
First classification of Rural
Education
Type of House
Chief Wage Earner
Urban SEC
Rural SEC
A
B
C
D
E
R1
R2
R3
R4
Prosperous
Underpriviledged
How do they buy
Shift from Loose to
Packaged
Multiple Brands Within One Family
& By the Individual
Aspiration Now
like the Urban
Buy Value for Money
Not Cheap Products
Affordability
to Economy
English Medium Schools
Private Schools
Private
Tuitions
Direct to Home Television (DTH)
28 Million in rural out of total 46 million
Mobile Phone
330 Million & Growing
Expanding reach and delivery of
Community Radio
National Brands Losing Sheen
Regional Gaining Ground
Loss of One Species - Tailor
Ready Stitched No Tailoring
Changing
Trends
The buying role played
One Who Has the Need
the initiator
the payer
One who pays to buy
the influencer
One Who Brings Information
One Who Decides
the Decision Maker
All Can Be
Different
Individualized
Joint Families
Nuclear family living as part of a Joint Family but each family has different kitchens
Why ?
Traditional family structure being broken by younger generation who is higher aspirations and need independence
Individual Decision but elders still hold strong influence
Strong Bonding with Joint Family on Customs like Marriage, Death and Birth
Role Reversals
Large land ownership
Contribution to growth of village
Early adopter of many products
Fully Male Domain
The Sarpanch is no longer an opinion leader...has become
more politically motivated and masses alienated
Then Who is....?
Assertion of women in last decade
Education focus of girl child
Media penetration
Passive Productivity to Active Earning
New found role of the Primary School Teacher
New influences are driven by profession
Medical Practitioner
Retired Defense Personnel
Young Female who have excelled in something
Traditional Influences
The Pandit
The Maulvi
Symbols of
Representation
Life Cycle
Stages

Does
C
o
l
o
r
s
also mean anything
Festivities
Prosperity
Growth
Auspicious
Danger
Don't Go
Stop
Blood
Religious
Keeping Fast
Going on Pilgrimage
Abstinence
Religious
New Trends
Out of Crowd
Bad Omen
Abstain
Discarded
Classic Style
Make Personal Statement
Unique
Selling and Buying Points
42000 Periodic Markets
15-25 Villages as Catchment
Visitors Average 5000/Day
200 - 300 Stalls
R3-R4
Haats or
Periodic Markets
Mandi's or
Agricultural Markets

6800 Agricultural Markets
50 - 100 Village Catchment
Turnout 100,000+
R1+R2

Mela or
Religious Gatherings

25000 Mela in India/Year
Catchment Local Deity
Turnout 200,000 or more
Family Fun Out

That About It
the story

Before we close
Thank You !
Open to Questions
Here is my whole Presentation
Good
my name is
KHAN
M A T H E W
The Journey Begins....
But we feel
Some bit repeat from earlier session
5% of population
46% of Population
CHANGING
Family Structure
Full transcript