Rural marketing research new


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  • Nothing original. Only a take off from Rural Marketing 2nd edition by Pradeep Kashyap
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  • » Availability The first challenge is to ensure availability of the product or service. India's 627,000 villagesare spread over 3.2 million sq km; 700 million Indians may live in rural areas, finding them isnot easy. However, given the poor state of roads, it is an even greater challenge to regularlyreach products to the far-flung villages. Any serious marketer must strive to reach at least13,113 villages with a population of more than 5,000. Marketers must trade off the distributioncost with incremental market saturation. Over the years, India's largest MNC, Hindustan Lever,a subsidiary of Unilever, has built a strong distribution system which helps its brands reach theinteriors of the rural market.» Affordability The second challenge is to ensure affordability of the product or service. With low disposableincomes, products need to be affordable to the rural consumer, most of who are on daily wages.Some companies have addressed the affordability problem by introducing small unit packs.Most of the shampoos are available in smaller packs. Fair and lovely was launched in a smallerpack. Colgate toothpaste launched its smaller packs to cater to the travelling segment and therural consumers. Hindustan Lever, among the first MNC’s to realize the potential of India's rural market, haslaunched a variant of its largest selling soap brand, Lifebuoy at Rs 2 for 50 gm. The move ismainly targeted at the rural market. Coca-Cola has addressed the affordability issue byintroducing the returnable 200-ml glass bottle priced at Rs 5. » Acceptability The third challenge is to gain acceptability for the product or service. Therefore, there is a needto offer products that suit the rural market. One company which has reaped rich dividends bydoing so is LG Electronics. In 1998, it developed a customized TV for the rural market andchristened it Sampoorna. It was a runway hit selling 100,000 sets in the very first year. Becauseof the lack of electricity and refrigerators in the rural areas, Coca-Cola provides low-cost iceboxes — a tin box for new outlets and thermocol box for seasonal outlets.» Awareness Brand awareness is another challenge. Fortunately, however, the rural consumer has the samelikes as the urban consumer — movies and music — and for both the urban and rural consumer,the family is the key unit of identity. However, the rural consumer expressions differ from hisurban counterpart. Outing for the former is confined to local fairs and festivals and TV viewingis confined to the state-owned Doordarshan. Consumption of branded products is treated as aspecial treat or indulgence. Hindustan Lever relies heavily on its own company-organized media. These are promotionalevents organized by stockiest. Godrej Consumer Products, which is trying to push its soapbrands into the interior areas, uses radio to reach the local people in their language. U&A:-Market Tools' research studies of awareness, attitude, and usage help marketers to better understand their customers –  and their customers' knowledge, perceptions, intentions, and behaviors.
  • NCAER:- National Council of Applied Economic ResearchCSO:- Central statistical officeDRDA:-District Rural Development Agency
  • Rural marketing research new

    2. 2. Rural Market Research• The systematic design , collection, analysis and reporting of data and findings relevant to a specific marketing situation facing by the company in rural market.• “The systematic planning, gathering, recording and analyzing data about problems related to marketing of goods and services.” -American Marketing Asso. Ramendra Mani Tripathi MBA IInd Yr. 2
    3. 3. Rural Market Research Process• Marketing research involves a sequence of steps-• Step-I Defining a research problem• Step-II Finalizing a research design• Step-III Developing a research hypothesis• Step-IV Planning the research methodology• Step-V Data collection• Step-V Data analysis• Step-VI Conclusion and Recommendations Ramendra Mani Tripathi MBA IInd Yr. 3
    4. 4. Types of Rural Studies• Quantitative studies – Since penetration and consumption of most products are low, the market is under development, hence quantitative studies cannot be done for most products• Qualitative studies – 4As of Rural marketing – Acceptability, Affordability, Awareness and Availability – U &A (Usage & Attitudes) or KAP (Knowledge, Attitude and Practices) – Feasibility – Mapping distribution, promotion and communication channels Ramendra Mani Tripathi MBA IInd Yr. 4
    5. 5. 4 A’s of Rural Marketing» Availability» Affordability» Acceptability» Awareness Ramendra Mani Tripathi MBA IInd Yr. 5
    6. 6. Sources & Method of Data Collection Sources• Ensuring the support of opinion leader• Behaving in a manner to be liked by rural people• Being at right places: - Village Chou pal - Retail outlet - Fairs - Huts Ramendra Mani Tripathi MBA IInd Yr. 6
    7. 7. Sources & Method of Data Collection Methods• Secondary Data – – Census of India, NCAER, CSO, DRDA, Panchayat office• Primary data – In-depth interview, – focus group discussion, – social research (PRA), – Questionnaire, – Sampling Ramendra Mani Tripathi MBA IInd Yr. 7
    8. 8. Primary Data• PRA technique – Is a set of approaches and methods to enable rural people to share, enhance and analyze their knowledge of life and conditions, to plan and to act.• PRA Tools – Social mapping : capture house location/ caste distribution – Resource mapping : availability of resources – Seasonality diagram : information on the basis of seasons – Venn diagrams : to identify various issues with relative importance Ramendra Mani Tripathi MBA IInd Yr. 8
    9. 9. Advantages of PRA & FGDPRA(Participative Rural Appraisal) FGD( Focused Group Discussion)Large and Heterogeneous Small and HomogeneousAll people participate in Verbal & Non Spokespersons Dominant the discussionVerbal ways in Verbal form.Attitude and Behavioral oriented. Action orientedSpot analysis by Participant Analysis done by Moderator Ramendra Mani Tripathi MBA IInd Yr. 9
    10. 10. Research Tools for Rural Market• Semiotic Analysis -appropriate colors, signs and symbols to avoid inappropriate ones. Helps advertising agencies in promotion mix• Customer I.Q -quality, satisfaction and loyalty which provides information about brand equity• Advanced Tracking Program (ATP) -tracking brand health and brand equity to analyze different brands performance Ramendra Mani Tripathi MBA IInd Yr. 10
    11. 11. Urban VS Rural Market ResearchASPECT URBAN RURALRespondents Literate, brand aware, Semiliterate or illiterate, individuals respond brand unaware. Difficult individually to get individual responses. Generally group responsesTime Willing to respond. Have Hesitant. But devotes time pressures. Spares time. little time for researchers Ramendra Mani Tripathi MBA IInd Yr. 11
    12. 12. Urban VS Rural market contd..Accessibility Easy to access, though Tough to access, many suffer from Geographical barriers. research fatigue Do not speak easy to outsidersSecondary data source Internal data, syndicate Less number of all research, publish media. categories Many sources and large dataPrimary data sources Large number of middle Less number of all men, experts, sales categories force, consumers, opinion leaders Ramendra Mani Tripathi MBA IInd Yr. 12
    13. 13. Do’s and Donts in rural market research Wears simple clothes Familiar with local language or accompany a known person Spent time with villagers even though it is not needed to his research Purpose and its benefits to villagers should be explained in order to get correct datas. Issues sensitive to respondents should be carefully handled Male researchers should approach a woman through her husband or guardian of the woman. Avoid one- to-one interact as they gather as crowd. Researcher always carry food, water and first aid kit to avoid health problems Ramendra Mani Tripathi MBA IInd Yr. 13
    14. 14. Limitations & challenges in Rural Marketing Research• Nature of Rural Market• Scarcity of Rural Marketing Research Budget• Lack of Uniformity in Secondary Data• Accessibility• Lack of Facilities in Rural Areas• Comprehension of Research Tools• Sensitivity of Rural People Ramendra Mani Tripathi MBA IInd Yr. 14
    15. 15. Ramendra Mani Tripathi MBA IInd Yr. 15