Research Journal of Economics & Business Studies - RJEBS - The ...

PROCESS
The number of rural consumers who can afford branded consumer products are equal to, it not greater
than ,the number of such urban consumers. Therefore, the areas have to be selected for concentrated
coverage; once this is done, the coverage can be extended further into interiors. So, the first step is this
to short list areas where the purchasing power is high. Once the area (district) have been identified, a
short list of the larger villages in the district can be made & then these villages may be grouped into
clusters & finally these potentials may be followed .
Groups Areas Million Units
1994 -95
Durables : Rural Vs Urban
Growth %
Change over Previous Period
1994 -95 2001-02* 2006-07* 2001-02 2010-11
I Urban 140.10 195.15 245.09 39.29 25.59
Rural 224.17 330.63 430.93 47.49 30.34
II Urban 61.44 95.54 122.70 55.50 28.42
Rural 43.54 100.13 144.83 129.97 44.64
III Urban 35.99 83.05 138.31 130.76 66.54
Rural 11.24 29.90 57.10 166.01 90.97
*Projections
Source: NCAER (National council for Applied Economic Research)
From the table it is obvious that:-
1) Rural markets for groups I durables are bigger than Urban.
2) Rural markets for Group II durables will be much bigger than urban ones
3).Rural market growth notes are faster than urban ones in all the three groups.
For groups (iii) durables remain smalls than urban ones even in 2007 -08. It clearly indicates the
necessity of understandings the attitude of rural people towards these durables as these items are not
purchased according to their full potential. As for as, the income levels are concerned, there is still a
lot of latest demand for these products.
Conclusion:-
the most relevant thing is that the rural segment is extremely fragmented & spread out over a large
geographical base. The cultural & behavioral differences vary not just from state to state but from
village to village. Mapping out this difference in consumer behavior is the key to any successful rural
strategy. Forming is one of the sources of revenue however it is true that rural youth are looking at
alternate sources of revenues. Also they are receptive to new ideas. They are likely to welcome
innovation that satisfies their sense of security. Rural people are mush more social than their
counterparts & this makes the difference. this is the reason a marketer need to have local alliances.
www.theinternationaljournal.org > RJEBS: Volume: 02, Number: 09, July-2013 Page 11