Project Rural Marketing1

7/31/2019 Project Rural Marketing1

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OBJECTIVES

To study the emergence of rural market in India.

To study the role of advertisement in rural India in different villages (Aagar and

Gusbethi).

To study the constraints of marketing communication in Aagar and Gusbethi.

To study the awareness or knowledge of consumers regarding mobile phones in

Aagar and Gusbethi.

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Rural Marketing

Rural marketing involves the process of developing, pricing, promoting, distributing rural

specific product and a service leading to exchange between rural and urban market which

satisfies consumer demand and also achieves organizational objectives.

It is a two-way marketing process wherein the transactions can be:

1. Urban to Rural: A major part of rural marketing falls into this category. It

involves the selling of products and services by urban marketers in rural areas.

These include: Pesticides, FMCG Products, Consumer durables, etc.

2. Rural to Urban: Transactions in this category basically fall under agricultural

marketing where a rural producer seeks to sell his produce in an urban market. An

agent or a middleman plays a crucial role in the marketing process. The following

are some of the important items sold from the rural to urban areas: seeds, fruits and

vegetables, milk and related products, forest produce, spices, etc.

3. Rural to Rural: This includes the activities that take place between two villages in

close proximity to each other. The transactions relate to the areas of expertise the

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URBAN RURAL

RURAL URBAN

RURAL RURAL


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particular village has.These include selling of agricultural tools, cattle, carts and

others to another village in its proximity.

Rural marketing requires the understanding of the complexities. Indian agricultural

industry has been growing at a tremendous pace in the last few decades. The rural areas are

consuming a large number of industrial and urban manufactured products. The rural

agricultural production and consumption process plays a predominant role in developing

the Indian economy. This has designed a new way for understanding a new process called

Rural Marketing.

Rural marketing scientists also term it as developmental marketing, as the process of rural

marketing involves an urban to rural activity, which in turn is characterised by various

peculiarities in terms of nature of market, products and processes. Rural marketing differs

from agricultural or consumer products marketing in terms of the nature of transactions,

which includes participants, products, modalities, norms and outcomes. The participants in

case of Rural Marketing would also be different they include input manufacturers, dealers,

farmers, opinion makers, government agencies and traders.

Rural marketing needs to combine concerns for profit with a concern for the society,

besides being titled towards profit. Rural market for agricultural inputs is a case of market

pull and not market push. Most of the jobs of marketing and selling are left to the local

dealers and retailers.

The market for input gets interlocked with other markets like output, consumer goods,

money and labour.

Rural marketing in India is not much developed there are many hindrances in the area of

market, product design and positioning, pricing, distribution and promotion. Companies

need to understand rural marketing in a broader manner not only to survive and grow in

their business, but also a means to the development of the rural economy. One has to have

a strategic view of the rural markets so as to know and understand the markets well. In the

context of rural marketing one has to understand the manipulation of marketing mix has to

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be properly understood in terms of product usage. Product usage is central to price,

distribution, promotion, branding, company image and more important farmer economics,

thus any strategy in rural marketing should be given due attention and importance by

understanding the product usage, all elements of marketing mix can be better organised and

managed.

Nature of Rural Market

Large, Diverse and Scattered Market: Rural market in India is large, and

scattered into a number of regions. There may be less number of shops available to

market products.

Major Income of Rural consumers is from Agriculture: Rural Prosperity is tied

with agriculture prosperity. In the event of a crop failure, the income of the rural

masses is directly affected.

Standard of Living and rising disposable income of the rural customers: It is

known that majority of the rural population lives below poverty line and has low

literacy rate, low per capital income, societal backwardness, low savings, etc. But

the new tax structure, good monsoon, government regulation on pricing has created

disposable incomes. Today the rural customer spends money to get value and is

aware of the happening around him.

Traditional Outlook: Villages develop slowly and have a traditional outlook.

Change is a continuous process but most rural people accept change gradually. This

is gradually changing due to literacy especially in the youth who have begun to

change the outlook in the villages.

Rising literacy levels: It is documented that approximately 45% of rural Indians

are literate. Hence awareness has increases and the farmers are well-informed about

the world around them. They are also educating themselves on the new technology

around them and aspiring for a better lifestyle.

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Diverse socioeconomic background: Due to dispersion of geographical areas and

uneven land fertility, rural people have disparate socioeconomic background, which

ultimately affects the rural market.

Infrastructure Facilities: The infrastructure facilities like cemented roads,

warehouses, communication system, and financial facilities are inadequate in rural

areas. Hence physical distribution is a challenge to marketers who have found

innovative ways to market their products.

Emerging Rural Mobile Market in India

The Indian mobile market has been continued to witness rapid increase in its subscriber

base over the past few years, largely due to the declining mobile tariffs and availability of

low cost handsets in the country. The country saw addition of an average of around 10

Million subscribers per month in its mobile subscriber base during 2008 with penetration

approaching saturation in urban India. With this, mobile operators in the country are now

vying rural India as their next area for growth in the near future. Meanwhile, a number of

mobile handset manufacturers have been working to cover the untapped rural mobile

market, which will be the major driver for Indian mobile market in coming years.

According to our latest study on sector called, Emerging Rural Mobile Market in India,

the mobile market in rural India has significant potential with number of subscribers

anticipated to grow at a CAGR of around 32% during 2009 to 2012. The report thoroughly

discusses about the factor which will drive the growth of rural mobile market over the

forecasted period.

Our research highlights that the success mantra for rural mobile market in India lies in the

operators service pricing models coupled with the availability of low cost handsets that

support affordable access for rural areas. It is forecasted that sales of mobile handsets in

rural India will grow at CAGR of around 17% from 2009 to 2012. Availability of low-cost

battery efficient handsets will drive the future sales in this segment.

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This report covers various aspects of the Indian rural mobile market. It gives detailed

analysis of the rural mobile market in terms of total subscribers, subscribers by technology

and service providers. Each section sufficiently explains the current and future market

trends, and developments in the Indian rural mobile market. Our research foresees immense

opportunities for various industry players including mobile operators and handset

manufacturers.

Besides this, we have also comprehensively analyzed the mobile market in metros and in

various circles, rural mobile penetration in different states helping the clients to understand

the mobile market trends and developments across the country. The study also evaluates

various strategies that will boost the rural mobile market in India.

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RESEARCH METHODOLOGY

Types of research: The project comprises of two types of researches:

Exploratory research: This research provides insights into and comprehension of

an issue or situation. Exploratory research is a type of research conducted for a

problem that has not been clearly defined. We conducted this research as we tried

to find out the awareness of people about mobile phones in the village, their

lifestyle and standard of living or quality of life, preferences or choices etc.

Qualitative research: This research is a method of inquiry employed in many

different disciplines that helps to gather an in-depth understanding of human

behavior and the reasons that govern such behavior. The qualitative method

investigates the why and how of decision-making, not just what, where, when.Through this research, we gathered a lot of information regarding the reasons for

low or high level of awareness, level of education of members etc.

Sources of Data: The whole study was based on collection from two types of data:

Primary sources: This data consists of original, first-hand information collected by

means of observation and interview. We collected information based on the

responses provided by the families which was the first-hand information we got

through observation and interviewing.

Secondary sources: This data in the form of already existing company policies was

also used.

Study area: Aagar Village, UP and Gusbethi Village, Haryana.

Sample size: 60 (30+30)

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Data Analysis and Interpretation

AAGAR VILLAGE

Q1. Do you own a mobile phone?

Ownership of mobile phone CountYes 30No 0

Ownership

30

0

yes

no

INTERPRETATION:

Allthe respondents surveyed were having a mobile phone with them.

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Q2. When did you buy your first mobile phone?

INTERPRETATION:

According to the survey, 63% of consumers purchased their 1st cell phone during the year

2005-2010 followed by 34% in 2000-2005 and 3% during the phase of 2010-2015.

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Q3. Which brand did you purchase?

INTERPRETATION:

77% of consumers bought Nokia because of two reasons, one they had a good knowledge

about the brand and the other was the influencing power for others.

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Q4. What are the reasons for continuance/discontinuance of the same brand?

INTERPRETATION:

Consumers either continued with the same brand due to the quality which was 40% in case

of rural consumers followed by price being the next factor for the purchase.

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Q5.How many members are there in your family?

INTERPRETATION:

As joint family has been phased out 33% of consumers were living in nuclear families and

using the mobile phones followed by 17% with one or four mambers in a family using it.

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Q6. How many mobile phones are there in your family?No. of mobiles in family % of respondents no. of respondents

one (A) 57 17

two (B) 27 8

three (C) 2 1

four (D) 7 2

five (E) 7 2

others (F) 0 0

INTERPRETATION:

Out of the 30 respondents surveyed for the number of mobile phones in the family, 17 ofthem (57%) said that there is only one mobile phone in their family while 8 of them (27%)

said there are two mobiles. The rest 1 (2%), 2 (7%), 2 (7%) said that there are three, four

and five mobiles their families use respectively.

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% of respondents

57%27%

2%7%

7% 0%

one (A)

two (B)

three (C)

four (D)

five (E)

others (F)


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Q7. Which members of the family use it?

which members in family use it % of respondents no. of respondents

A (SELF) 23 7

B (WIFE/HUSBAND) 3 1

C (ELDERS) 0 0

D (CHILDREN) 3 1

E (BROTHER) 3 1

F (SELF,WIFE/HUSBAND) 33 10G(SELF,WIFE/HUSBAND,ELDERS) 10 3

H (SELF,CHILDREN) 8 2

I (SELF,BROTHER) 8 2

J (SELF,ELDERS,BROTHER) 3 1

K (WIFE/HUSBAND,BROTHER) 3 1

L (ELDERS,BROTHER) 3 1

INTERPRETATION:

Out of the 30 respondents surveyed for the members in the family who use them, 10 ofthem (33%) said that the mobile phone is used by the wife/husband and self (the

respondent itself) while 7 of them (23%) said that it is used by the respondent itself or self.

Only 1 respondent said that it is used by the wife/husband, another 1 respondent said that it

is used by the children, yet another 1 respondent said that it is used by the brother. In

addition, 1 respondent said that it is used by the self, elders and brother. Another 1respondent said that it is used by the wife/husband and brother while the remaining 1

respondent said that it is used by the elders and brother. 2 other respondents said that it isused by the self and children while the remaining 2 of them out of the 30 said that it is used

by self and brother.

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% of respondents

23%

3%

0%

3%

3%

33%

10%

8%

8%

3%

3%

3%A (SELF)

B (WIFE/HUSBAND)

C (ELDERS)

D (CHILDREN)

E (BROTHER)

F (SELF,WIFE/HUSBAND)

G (SELF,WIFE/HUSBAND,EL

H (SELF,CHILDREN)

I (SELF,BROTHER)

J (SELF,ELDERS,BROTHER)

K (WIFE/HUSBAND,BROTHE

L (ELDERS,BROTHER)


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Q8. Which Mobile Phone does the respondent have?

nokia

samsung

Lg

micromaxmotorola

videocon

karbonn

sony

others

Brand Identification

0

2

4

6

8

10

12

Series1 11 8 2 4 2 0 1 2 0

nokia samsung Lg micromax motorola videocon karbonn sony others

INTERPRETATION:

After evaluating the data, it can be seen that the most preferred mobile brand used in Aagar

village is NOKIA (37%), followed by SAMSUNG (27%).

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Q9. For mobile phone purchase, please answer the following questions?

A. Who initiates or raises a request for their buying?

Count

self 16wife 2elders 0children 4Family 3Friends 0Self +Wife+ Elders+ Children 1Self+ children 2

Wife+Elders+children 2

Initiates Purchase

16

20

4 3

0 12 2

02468

1012141618

self

wife

elders

children

Family

Friends

Self+W

ife+Elders+

Children

S

elf+children

Wife+Elders+childre

n

INTERPRETATION:

The respondent is themselves involved in the purchase decision ie 53% of them said thatits their own requirement which initiates purchase.

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B. Whom do you consult before taking the buying decision?

Self 14wife 3

elders 3children 1Friends 3Relatives 1Family 1None/others 2Friends+ Relatives 2

0

5

10

15

Consults for Purchase

Series1 14 3 3 1 3 1 1 2 2

sel f wife elderschildre

n

Friend

s

Relativ

esFamily

None/o

thers

Friend

s+

INTERPRETATION:

Mainly people buy their mobile phones on their own and in rural areas no one has extra

knowledge about the same. According to the data, 47% of the respondents said they buy

the mobile phone without consulting anyone.

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C. Who finally goes and buys the mobile phone?

self 28wife 0

elders 0children 0Everyone 2

0

5

10

15

20

25

Purchase

Series1 25 0 0 0 1 4

self wife elders childrenSelf

+Wife+

Wife+Elde

rs+childre

INTERPRETATION:

The respondents do mostly the purchase only as 83% of them said they themselves

purchase their phones because they are the ones who are the main users of the mobile andan earning member in the family.

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D. Who finally uses the mobile phone?

0

5

10

15

20

25

30

Finally uses

Series1 28 0 0 0 2

self wife elders children Everyone

INTERPRETATION:

93% of the people responded that they are the final users of the mobiles purchased and only7% said everyone uses the phone. This could be due to more availability of mobile phones

in the family.

self 28wife 0elders 0children 0Everyone 2

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D (a) What is the reason for the purchase of the mobile phone?

Reasons for purchase

30

0

0

ow n consumption

gifting marriage

gifting to others

INTERPRETATION:

All the respondents said that they have purchased the mobile phone for their own

consumption, as these days in rural areas everyone owns a mobile phone.

Reasons for purchase Count

own consumption 30

gifting marriage 0

gifting to others 0

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Q14. From where do you usually prefer to buy your mobile phone?

Touch Points Counts

company outlets 5

any organised retail outlet 8

any other 0

nearby big city 2

unorganised open retail 6

haats/ malls 1

company outlets & organised retail 2

company outlets & organised retail & haats 1

company outlets & any other 1

company outlets & nearby big city 1

any organised retail outlet & haats 2

any organised retail outlet & nearby big city 1

Touch points

17%

27%

0%

7%

20%

3%

7%

3%

3%

3% 7%3%

company outlets

any organised retail outlet

any other

nearby big c ity

unorganised open retail

haats/ malls

co. outlets+organised retail

co.outlets+organised retail+haats

INTERPRETATION:

Due to growing awareness level in rural areas, 27% respondents purchase their mobile

phones from an organized retail outlet but still there is a need of spreading knowledge

about the benefits of buying a phone from these outlets as 20% of the respondents opted forunorganized retail outlet.

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GUSBETHI VILLAGE

Q1. Do you own a mobile phone?

ownership of mobile phone

100%

INTERPRETATION:

All respondents own mobile phones.

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Q2. When did you buy your first mobile phone?

2000-2005 11

2005-2010 16

2010-2015 3

2000-2005

37%

2005-2010

53%

2010-2015

10%

2000-2005

2005-2010

2010-2015

INTERPRETATION:

Most of the respondents purchased mobile phone in year between 2005- 2010.

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Which brand did you purchase?

Nokia 25

Samsung 4

Micromax 1

nokia84%

samsung

13%

micromax

3%

nokia

samsung

micromax

INTERPRETATION:

Most of the respondents purchased Nokia.

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Q3. What are the reasons for continuance/ discontinuance of the same brand?

quality 8

price 5

durability 8

features 5loyalty 4

quality

29%

price

19%

durability

29%

features

19%

loyalty

4%

quality

price

durability

features

loyalty

INTERPRETATION:

For most of the respondents, reasons for continuance for the same brand are durability.

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Q4. How many members are there in your family?

1 member 3

2 member 8

3 member 7

4 member 6

5 member 3

6 member 3

1 member

10%

2 member

27%

3 member

23%

4 member20%

5 member

10%

6 member

10%

1 member

2 member

3 member

4 member

5 member6 member

INTERPRETATION:

Most of the family consists of only 2 family members

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Q5. How many mobile phones are there in your family?

1 mobile phone 14

2 mobile phones 13

3 mobile phones 3

1 mobile phone

47%

2 mobile phones

43%

3 mobile phones

10%

1 mobile phone

2 mobile phones

3 mobile phones

INTERPRETATION:

Most of the respondents own only 1mobile phone.

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Q6. Which member of the family uses mobile phones?

self 13

wife 3

wife and self 9

self, wife and elders 2self, wife and children 1

self and elders 2

self43%

wife10%

wife and self30%

self, wife and elders7%

self and elders7%

self, wife and children3%

self wi fe wife and self self, wife and elders self, wife and children self and elders

INTERPRETATION:

Most of the respondents said that they use mobile phone for their self-use.

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Q11. How do you identify the following brands?

brand identification

0

2

4

6

8

10

12

14

16

noki

a

samsu

ng Lg

micromax

motorola

video

con

karbo

nn

sony

othe

rs

Series1

INTERPRETATION:

Out of 30 people, 14 people hold the ownership of Nokia mobile phones and 9 of them

holds the ownership of Samsung and remaining 3 hold the ownership of LG and Micromaxmobile phones.

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Q12. For mobile phone purchase, please answer the following questions?

A. Who initiates or raises a request for their buying?

initiates purchase

73%

17%

0% 7%

0%

0%

3%

A self

B wife

C elders

D children

E Family

F Friends

H Self+ children

INTERPRETATION:

Out of 30 people, 22 of them says that the purchase is initiated to buy mobile phonesthrough self and 5 of them says that the purchase is initiated by their wife and rest says that

it is initiated by their children.

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C. Who finally goes and buys the product?

purchase

74%

20%

3% 0% 3%

A self

B wife

C elders

D children

E self+children

INTERPRETATION:

Out of 30 people, 22 of them says that they purchase mobile for self and 6 of them says that

they buy mobile phone for their wife and remaining 2 says that they buy mobile for theirchildren or for self and children.

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D. Who finally uses the product?

finally uses

81%

13%3%

0%

0%

3%

self

wife

elders

children

Everyone

self+wife

INTERPRETATION:

Out of 30 people, 24 says that they buy mobile phones for self use and four of them says

that they purchase mobile phones for their wife ad remaining 2 says that they buy it for

their elders.

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D (a) What is the reason for purchase of mobile phone?

purchase of mobile phone for self consumption

100%

INTERPRETATION:

All respondents said that they purchase mobile phone for their self-consumption.

Reasons for purchase Count

own consumption 30

gifting marriage 0

gifting to others 0

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Q14. From where do you normally buy mobile phones?

company outlets 2

any organized retail outlet 16

any other 7

nearby big city 2haats/ malls 1

company outlets

7%

any organised retail

outlet

57%

any other

25%

nearby big city

7%

haats/ malls

4%

company outlets

any organised retail outlet

any other

nearby big c ity

haats/ malls

INTERPRETATION:

Most of the respondents purchase mobile phone from any organized retail outlet.

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FINDINGS

1.

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RECOMMENDATIONS

1. Female members of the houses are too ignorant and are not aware of what is

going on in the society, so adult education program should be taken into

account in order to help them.

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LIMITATIONS

Fluency in the language was one of the major constraints.

The female respondents were reluctant in answering the entire question.

Many were not sure what they should reply for few questions as they were illiterate.

There was lack of mutual understanding between the respondent and the researcher.

It was very difficult to win their trust.

As the villages were located in very remote areas, there was transportation problem.

The study relies on a self-report method of data collection. Intentional deception,

poor memory, or misunderstanding of the question can all contribute to

inaccuracies in the data.

Though the respondents were assured of utmost secrecy, however, they were

reluctant to answer certain questions and voice their opinions.

The result of this research cannot be termed as making a fair representation of the

perception of the population.

Time was of course one of the major constraint that affected the study.

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REFERENCES

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APPENDICES

Documents

Project Rural Marketing1