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Masters of Rural Markets Series
From Touchpoints to Trustpoints:
Winning over India’s Aspiring
Rural Consumers
Traditionalists are the
conservative rural consumers
that rely on conventional
channels to make their purchase
decisions. Necessity drives most
of their purchase decisions and
they typically purchase the
cheapest offerings available.
Steady Climbers aspire for a
more comfortable lifestyle.
They want to enhance their
social standing among their
peers, and strive to do so by
buying branded products
and offerings.
Village Elites are the progressive
rural consumers, boasting high
education and awareness levels.
They desire the best in product
quality, features and aesthetics.
Young Enthusiasts, rural
consumers aged 18-28, make
extensive use of digital
technology and buy branded
products to enhance their
social image. They powerfully
influence the decisions of
other consumers segments.
Four Rural Consumer Segments
Three broad dimensions characterizing rural consumer behavior change
The Changing Realities of Rural India
Accenture survey of 2800 rural consumers across 8 states and 10 Focus Group Discussions provides unique insights into how
rural consumers are changing—in terms of their attitudes, preferences and buying behavior. Businesses that capitalize on this
opportunity now could gain a significant competitive advantage over those who wait until the market matures further.
What do rural consumers value?
buy brands and 59 percent see them as
trustworthy and reliable. 66 percent weightage
is given to brand image, functionality and
aesthetics while making their purchase decisions.
71%
When do they buy?
buy when the need arises, rather than waiting
for special occasions.
55%
What sales channels do they use?
Where do they plan to spend more?
travel to nearby cities to make their bigger
purchases.
plan to increase their spend on education
and 49 percent plan to increase their spend
on healthcare.
Who influences them the most?
said the key influencer for their last big-ticket
purchase was the village head and 6 percent
claimed it was the local shopkeeper.
1%
83%
51%
1% 6%
How much do TV ads and celebrity
endorsements influence them?
claimed advertisements and celebrity
endorsements have an influence on their final
purchase decisions.
7%
Brand Savvy
Trading up
Exploring
Connected
Empowered
Proactive
Street-Smart
Value seeking
Social
Aspirational
Networked
Discerning
2
Building Trust along Rural Consumer Purchase Journey
To gain wallet share in India’s rural market, executives need to meet the new imperatives at each milestone in the purchase
journey. We call such milestones “trustpoints” instead of “touchpoints,” as they constitute critical moments where companies
can build trust with the customer—or destroy it.
The use of digital
3. Consideration
• Tailor value proposition
to create resonance
• Appeal to diversity
• Demonstrate results to
inspire consumer trust
4. Validation
• Engage with relevant
influencers
• Invest to transform
retailers into informed
advisors
7. Advocacy
• Nurture advocates to leverage
positive word of mouth
• Seek customer
feedback proactively
of the respondents expressed willingness
to use digital channels
>50%
6. Experience
• Differentiate through service;
initiate contact with customer
• Deliver on the brand promise
to win loyalty
of the respondents agreed getting
explanations on how to use digital
channels could motivate them to use it
38%
2. Awareness
• Customise marketing mix
by product and geography
• Look beyond traditional
media; explore mobile
marketing
Satisfied
Customer
Delighted
Customer
Unsatisfied
Customer
Outside
the loop
1 2 3 4
5
6
7
5. Purchase
• Enhance in-store experience
• Support online channel through
offline intervention
• Offer improved financial access
and payment flexibility
1. Need Recognition
• Develop a deep understanding
of rural consumers
• Shape the market by
identifying and targeting the
right consumers
• Keep communication simple,
customised and engaging
3
14-5627
Copyright © 2014 Accenture
All rights reserved.
Accenture, its logo, and
High Performance Delivered
are trademarks of Accenture.
Core Research Team
Mamta Kapur, Luv Nijhawan, Ashlesha
Naokarkar, Abhijit Bhavsar
Senior Editorial Team
Sanjay Dawar, Raghuram Devarakonda,
Vineet R. Ahuja, Rishabh Bindlish, Paul F.
Nunes, David Light, Raghav Narsalay
We would also like to thank the
following individuals for their
contributions to the study:
Jubin Mishra, Sohini Bhanja, Vinita V. Nair,
Manpreet E. Singh, Prabhat Singh,
Ritesh Kapoor
For more information
on the research,
please contact
Mamta Kapur
Research Manager
Accenture Institute for
High Performance
mamta.kapur@accenture.com
Vineet R. Ahuja
Principal
Accenture Strategy, India
vineet.r.ahuja@accenture.com
Rishabh Bindlish
Managing Director
Accenture Strategy, India
rishabh.bindlish@accenture.com
Raghuram Devarakonda, Ph.D.
Managing Director
Accenture Strategy, India
raghuram.devarakonda@accenture.com
About Accenture
Accenture is a global management
consulting, technology services and
outsourcing company, with more than
305,000 people serving clients in
more than 120 countries. Combining
unparalleled experience, comprehensive
capabilities across all industries and
business functions, and extensive
research on the world’s most successful
companies, Accenture collaborates with
clients to help them become high-
performance businesses and governments.
The company generated net revenues of
US$30.0 billion for the fiscal year ended
Aug. 31, 2014. Its home page is
www.accenture.com.
About the Accenture
Institute for High
Performance
The Accenture Institute for High
Performance develops and publishes
practical insights into critical
management issues and global economic
trends. Its worldwide team of researchers
connects with Accenture’s consulting,
technology and outsourcing leaders to
demonstrate how organizations become
and remain high performers through
original, rigorous research and analysis.
Disclaimer: This report has been published
for information and illustrative purposes
only and is not intended to serve as
advice of any nature whatsoever. The
information contained and the references
made in this report are in good faith,
neither Accenture nor any its directors,
agents or employees give any warranty of
accuracy (whether expressed or implied),
nor accepts any liability as a result of
reliance upon the content. This report also
contains certain information available in
public domain, created and maintained
by private and public organizations.
Accenture does not control or guarantee
the accuracy, relevance, timelines or
completeness of such information.
Accenture does not warrant or solicit
any kind of act or omission based on this
Report. Accenture owns the copyright in
this report. In the event any part of the
report is to be used by a third party in
any manner whatsoever they would need
to obtain permission of Accenture prior to
use of the material from the report.

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Accenture rural-markets-infographic

  • 1. Masters of Rural Markets Series From Touchpoints to Trustpoints: Winning over India’s Aspiring Rural Consumers
  • 2. Traditionalists are the conservative rural consumers that rely on conventional channels to make their purchase decisions. Necessity drives most of their purchase decisions and they typically purchase the cheapest offerings available. Steady Climbers aspire for a more comfortable lifestyle. They want to enhance their social standing among their peers, and strive to do so by buying branded products and offerings. Village Elites are the progressive rural consumers, boasting high education and awareness levels. They desire the best in product quality, features and aesthetics. Young Enthusiasts, rural consumers aged 18-28, make extensive use of digital technology and buy branded products to enhance their social image. They powerfully influence the decisions of other consumers segments. Four Rural Consumer Segments Three broad dimensions characterizing rural consumer behavior change The Changing Realities of Rural India Accenture survey of 2800 rural consumers across 8 states and 10 Focus Group Discussions provides unique insights into how rural consumers are changing—in terms of their attitudes, preferences and buying behavior. Businesses that capitalize on this opportunity now could gain a significant competitive advantage over those who wait until the market matures further. What do rural consumers value? buy brands and 59 percent see them as trustworthy and reliable. 66 percent weightage is given to brand image, functionality and aesthetics while making their purchase decisions. 71% When do they buy? buy when the need arises, rather than waiting for special occasions. 55% What sales channels do they use? Where do they plan to spend more? travel to nearby cities to make their bigger purchases. plan to increase their spend on education and 49 percent plan to increase their spend on healthcare. Who influences them the most? said the key influencer for their last big-ticket purchase was the village head and 6 percent claimed it was the local shopkeeper. 1% 83% 51% 1% 6% How much do TV ads and celebrity endorsements influence them? claimed advertisements and celebrity endorsements have an influence on their final purchase decisions. 7% Brand Savvy Trading up Exploring Connected Empowered Proactive Street-Smart Value seeking Social Aspirational Networked Discerning 2
  • 3. Building Trust along Rural Consumer Purchase Journey To gain wallet share in India’s rural market, executives need to meet the new imperatives at each milestone in the purchase journey. We call such milestones “trustpoints” instead of “touchpoints,” as they constitute critical moments where companies can build trust with the customer—or destroy it. The use of digital 3. Consideration • Tailor value proposition to create resonance • Appeal to diversity • Demonstrate results to inspire consumer trust 4. Validation • Engage with relevant influencers • Invest to transform retailers into informed advisors 7. Advocacy • Nurture advocates to leverage positive word of mouth • Seek customer feedback proactively of the respondents expressed willingness to use digital channels >50% 6. Experience • Differentiate through service; initiate contact with customer • Deliver on the brand promise to win loyalty of the respondents agreed getting explanations on how to use digital channels could motivate them to use it 38% 2. Awareness • Customise marketing mix by product and geography • Look beyond traditional media; explore mobile marketing Satisfied Customer Delighted Customer Unsatisfied Customer Outside the loop 1 2 3 4 5 6 7 5. Purchase • Enhance in-store experience • Support online channel through offline intervention • Offer improved financial access and payment flexibility 1. Need Recognition • Develop a deep understanding of rural consumers • Shape the market by identifying and targeting the right consumers • Keep communication simple, customised and engaging 3
  • 4. 14-5627 Copyright © 2014 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Core Research Team Mamta Kapur, Luv Nijhawan, Ashlesha Naokarkar, Abhijit Bhavsar Senior Editorial Team Sanjay Dawar, Raghuram Devarakonda, Vineet R. Ahuja, Rishabh Bindlish, Paul F. Nunes, David Light, Raghav Narsalay We would also like to thank the following individuals for their contributions to the study: Jubin Mishra, Sohini Bhanja, Vinita V. Nair, Manpreet E. Singh, Prabhat Singh, Ritesh Kapoor For more information on the research, please contact Mamta Kapur Research Manager Accenture Institute for High Performance mamta.kapur@accenture.com Vineet R. Ahuja Principal Accenture Strategy, India vineet.r.ahuja@accenture.com Rishabh Bindlish Managing Director Accenture Strategy, India rishabh.bindlish@accenture.com Raghuram Devarakonda, Ph.D. Managing Director Accenture Strategy, India raghuram.devarakonda@accenture.com About Accenture Accenture is a global management consulting, technology services and outsourcing company, with more than 305,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high- performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com. About the Accenture Institute for High Performance The Accenture Institute for High Performance develops and publishes practical insights into critical management issues and global economic trends. Its worldwide team of researchers connects with Accenture’s consulting, technology and outsourcing leaders to demonstrate how organizations become and remain high performers through original, rigorous research and analysis. Disclaimer: This report has been published for information and illustrative purposes only and is not intended to serve as advice of any nature whatsoever. The information contained and the references made in this report are in good faith, neither Accenture nor any its directors, agents or employees give any warranty of accuracy (whether expressed or implied), nor accepts any liability as a result of reliance upon the content. This report also contains certain information available in public domain, created and maintained by private and public organizations. Accenture does not control or guarantee the accuracy, relevance, timelines or completeness of such information. Accenture does not warrant or solicit any kind of act or omission based on this Report. Accenture owns the copyright in this report. In the event any part of the report is to be used by a third party in any manner whatsoever they would need to obtain permission of Accenture prior to use of the material from the report.