A rural marketing analysis of leading FMCG and consumer durables in villages with populations as low as 2500

1. Rural Visit
Jhajjar Tehsil, Haryana
Rural Marketing Group 10
Aditya Jain, Ankit Bansal, Harmeet Singh, Manya Girdhar, Nandhagopal
Muralithar

2. About the Tehsil
Population: 2,58,595 No. of villages: 103
Rur/Urb: 4.199 Sex Ratio: 883
Literacy Rate: 70.05%
M F
Main Worker
Division
Cultivators: 27,639
Agri Labourers: 6,580
Other: 29,292
Marginal Workers:
19,418
Main Workers:
64,836

3. Jhajjar
Feeder Town

4.  Flood protection bundh
on three sides of town
 No perennial river, two
seasonal rivlets
 Narrow lanes, old
structures etc.
 District headquarters
constructed in 1997
 2 degree colleges, 1
polytechnic, 1 Kendriya
Vidyalaya. 3 Weaving
centres etc
 4 national level banks
 Cooperative banks –
Haryana Gramin
Cooperative Bank
 ATMs of other banks as
well
 18-20 hour electricity
connection
 4 clinics, 2 multispecialty
hospitals, 2 ear clinics, 1
animal hospital and 1
eye speciality centre
Jhajjar Town Visit
Population Sex Ratio Population (0-6) Child Sex Ratio Literacy Rate Working Population
48,424 886 12.11% 779 84.19% 14,209
Transport
 5 national highways passing through town
from all directions
 Construction of railway line between
Rohtak and Rewari passing through Jhajjar
 Development of Kundil-Manesar-Palwal
Expressway
Infrastructure

5.  TV penetration leading to higher salience of
branded products
 Vodafone and Idea networks preferred, and
Micromax smartphones preferred
 Acceptance for urban products with enough
salience
 20-25 consumer durables outlets mainly MBOs
 3 tractor dealerships
 1 motorcycle dealerships and lots of service
shops
 Dish has a stronger presence than cable, most
popular being Dish TV
 Extensive use of wall paintings to promote
products like steel rods, cement etc.
 Most durable outlets had brand names in big
letters
 Retail outlets used branded trays outside their
shops
 People were engaged in many small business
 Dealers push for direct payment instead of
microfinancing options
 Rurban area - people have enough for
spending over and above necessities
 Daily mandi, no haat with special pricing
4 A’s
Acceptability
Availability
Awareness
Affordability

7. Consumer Durable Audit
 20-25 consumer durable shops – most were mixed brand outlets
 Showroom for TATA Ace, Chevrolet and 3 dedicated tractor dealerships (Mahindra, TAFE etc.)
 Bike repair shops and garages with model bikes kept out front; taking orders
 Most customers are rural, and not from town itself
 Fridges sell more in summer, upto 2000-2500 units of fridge per month, microwaves not very popular
 Direct dealing with company for these dealerships, no distributors
 Margin depends on negotiations with the company itself
 NEXT Multibrand showroom
 10 – 12 Electronic and Electrical stores: Fans and Lighting most popular purchases

8. Jahangirpur
Census 2011 population: 4990

9.  All pucca homes
 Distinct open sewage
system
 Fields around village
used to make bricks
 Gramin cooperative bank
in village
 No recognised bank or
ATM other than this
 Electricity access from
6PM to 6AM only
 Two schools in village – 1
girls’ and 1 boys’
 1 playschool and 2
anganbadis
 3 colleges right outside
village on highway
 Primary health centre
with MBBS doctor on call
 Ambulance facility in
case of emergency
 2 multispecialty hospital
on highway
Jahangirpur Village Visit
Population Sex Ratio Population (0-6) Child Sex Ratio Literacy Rate Working Population
4,990 874 13.75% 759 79.21% 1,482
Infrastructure
Villagers estimated their population to be
almost 7000, and over 1000 households,
although the census shows only 932
households

10. Jahangirpur Retail Audit + Consumer Behaviour
• 26 shops in the village
• Average size 8ft x 6ft
• 4 to 5 varieties of eating items, most local
• Rin and Tide more popular in washing material
• Not a lot of attempts to pass off fake products as branded
products
• Many buffaloes and cows but still Amul milk sells the most
(40lts a day)
• Shopkeepers claim daily business of 3000 to 3500Rs
• No direct distributors visiting the village
• Alternate/daily visit to Jhajjar to buy stock
• Retailers also kept vegetables bought from the town
Consumer Durables
 Consumer durables mostly bought only during
weddings and festivals
 Tractor companies come to village to campaign
through demonstrations
 No other durables (even bikes) come to the village
 80% homes have ACs (Mostly Voltas and LG)
 Every home has at least one to two bikes
 DTH penetration is low (25%), cable connections
are preferred because of low prices
 No mobile shops, but 5 pharmaceutical shops were
available in the village

11. 4A’s
 People prefer branded products, but settle for
local products in case of unavailability
 Kids love Maggi, daily sales guaranteed, even
on low margins (1re)
 People can’t distinguish between original and
duplicate
 26 retails shops in village
 Mostly local brands
 No Mobile Store
 5 Medical stores
 Once in two day visit to town for supplies
 TV plays the important role.
 Tractor companies sometimes come to
campaign their tractors
 Bike mechanics visit once a week from Jhajjar,
also a source of awareness
 Local teachers are biggest opinion leaders
 Access to internet and TV
 Majority owning AC’s & Washing Machine
 Costly gifts (consumer durables) were given
during weddings
 Lots of cash to spend, but opportunities and
value match is low
Acceptability
Availability
Awareness
Affordability

13. Ladpur
Census 2011 Population 2907

14.  Highways on both sides of
the village at a distance of 2
to 3 km
 All houses were pucca roads
 Well structured sewage
systems
 No hospitals in village,
no PHC as well
 One SHC with non MBBS
doctor residing in village
 3 electrical equipment
stores in the village
 Nearest college is 8km away.
 Girls school of nursing near
the village
 Electricity connection there
for 14 hours in the day
 Only one chemist shop in
the village
 Retail shops double as
stationary and telecom
recharge shops as well
Ladpur Village Visit
Population Sex Ratio Population (0-6) Child Sex Ratio Literacy Rate Working Population
2,907 875 13.38% 801 83.48% 697
Villagers estimated that their population was
around 4000 people with about 750
households
Infrastructure

15. Ladpur Retail Audit
• Only 20-22 shops
• All small scale shops (8ftx5ft)
• 2 big shops, doubled as stationary and Xerox shop as well
• Telecom players use these big shops to get orders and sell recharge
coupons
• Small shops sell mostly local products while the big shops sell branded
products more
• Preferred tooth paste is colgate and Fena and Rin sell more than Tide
• Cows and buffalo milk is consumed, but over that Amul milk upto 10 ltrs
is sold every day
• Daily business quoted by big shops at Rs 5000, and small shops at as low
as Rs 120-200.
• Branded products kept in front and local products kept deeper into the
shop
• Front of the shops have FMCG products, and in the back stationary items
used
• Pepsi fridges to both big shops selling different cold drinks
• For FMCG no distributors visit, must go to Jhajjar, unlike for telecom

16. Consumer Behaviour
 People prefer buying branded items, mostly
fooled by shop keeper, since shopkeeper is
the biggest influencer
 Fake products and passing off happened very
commonly
 People prefer going to Jhajjar directly over
buying from small shops due to low margins
 High cash reserve with people because of
selling land to SEZ in the Tehsil
 DTH preferred over cable, 90% penetration
 Dish TV most popular
 Bikes preferred by men, scooty for girls,
atleast two two-wheelers per home
 70% homes have car
 High smartphone penetration, with most
people using whatsapp and other apps
 TV in almost all homes, but very low AC
penetration at around 10% only
 Fridges also only in 30% of villages
 Vodafone and Idea preferred over bigger
players like Vodafone and Airtel
 Village sarpanch and Thekedaars biggest
opinion leaders
 Brick bhattis outside village with immigrants
living in slums around it. Thekedars
responsible for putting up shops in the slums
 Buffalo milk sold at Rs 50 per litre
 Every home has a room dedicated to the
buffaos

17. 4A’s
 People prefer branded products but can’t tell
difference between real and fake
 Passing off very prevalent. Eg 5S5 bar instead
of 555 bar.
 Vodafone and Idea are widely used over bigger
players like Airtel.
 20-22 retails shops in the village
 Local brands more in small shops
 Village shopkeepers go to Jhajhar for
purchasing Branded products
 2-3 items in each category. Eg Parle G and
Tiger in biscuits
 Thekedars and teachers are biggest opinion
leaders
 TV plays big role in building salience
 Youth studying in nearby towns decision
influencers for any durable sale
 People were having enough money due to
Reliance buying land
 Every home had 1 Bike and majority have cars
 They used to send their children for higher
education to towns
 Value is issue, not money
Acceptability
Availability
Awareness
Affordability

19. Thank You
Queries?