1. Presented By :
Vikash kumar
8/12/2015 1Rural Marketing

2. Small Towns
Those towns that have populaion of less
than 1 million.
At present,there are 5127 small towns in
India.
8/12/2015
2
Rural Marketing

3. Small towns are becoming hubs for
marketing activities.
Purchasing power of peple have increased.
Availability of adequate land at a
reasonable price is most eye catching for
marketers as they also have an advantage
of low construction cost and lower rentals.
8/12/2015
3
Rural Marketing

4. As per the McKinsey Urbanisation
Report(2010):-
1. There has been a significant and impressive
growth in the last 15 years in these small towns.
2. Tier 3 and Tier 4 towns will contribute 50% of
urban GDP and will add 70 m consumers by
2030.
3. Small towns will become self sufficient with the
provision of basic services which will reduce the
migration load on larger cities.
8/12/2015
4
Rural Marketing

5. 8/12/2015
5
Rural Marketing

6. Own(small town) population.
Proximity to villages.
Income levels and buying powers.
Bridge between urban and rural.
Infrastucture Opportunities.
Penetration of durables and FMCG
products.
8/12/2015
6
Rural Marketing

7. 8/12/2015
7
Rural Marketing
DurablesIncome Level
Durables

8. Growing affluence,better standard of
living.
e.g. Gitanjali groups(Diamond jwellery co)
succeded in small owns like Berhampore,Orissa.
In auto industry Tata Nano,Chevrolet spark,
Hyundai(40% sales from small towns and rural
areas)
Increasing awareness and importance
of education through media
penetration,DTH service,Cable & satelite
services.
8/12/2015
8
Rural Marketing

9. Out of total subscribers of DTH 70% are from
small towns and rural areas.
 Aspirations and lifestyles
e.g. young people from small towns are today
aspiring for jobs like air-hostesses,radio
jockeys,pilots,flght stewards,newsreaders.
 Increasing brand awareness and
preference for premium product &
services.
8/12/2015
9
Rural Marketing

10. e.g. Canon a japanese imaging equipment
maker,launched the special campaign
named “image express’’ in 2010 to push
it’s sales into smaller towns.
Consumer buying behaviour
Occasions of purchase are festivals like
Holi,Diwali,Baishakhi etc.
8/12/2015
10
Rural Marketing

11. 8/12/2015
11
Rural Marketing

12. 8/12/2015
12
Rural Marketing

13.  The article related to the small
town,i.e.Rudrapur(Uttaranchal).
 This town has grown by leaps and bounce in
last 5 years.
 Tier IV towns are no longer a poverty market
as small towns are catching up urban centers
in terms of consumption and disposable
income.
 Rudrapur has shown ten times growth in
areas of retail,education,healthcare and in
other sectors as well.
8/12/2015Rural Marketing
13

14. As far as Disposable income is concerned
Tier-IV towns contribution is 39% which is
equal to the Tier-I cities contribution.
MART estimates claims that there are
5127 small towns representing more than
50% share of households.
8/12/2015Rural Marketing
14

15. Tier-I (8 Cities) is having 8% of total
population
Tier-II (26 Cities) 4%
Tier-III (33 Ciies) 7%
Tier-IV (5094 towns) 11%
The rest 70% is the rural population residing
in the 6,38,000 villages across India.
8/12/2015Rural Marketing
15

16. 8/12/2015Rural Marketing
16