Understanding the rural consumer is essential for effective marketing strategies in rural areas. Here, we break down the characteristics and categories of rural consumers:
Consumer Groups
- The Affluent Group
- Description: This group comprises cash-rich farmers, such as wheat farmers in Punjab and rice merchants in Andhra Pradesh.
- Characteristics: Despite their affluence, their numbers are too few to form a substantial demand base for large-scale marketing efforts.
- The Middle Class
- Description: This is one of the largest and fastest-growing segments for manufactured goods. Farmers cultivating sugar cane in UP and Karnataka fall into this category.
- Characteristics: They have significant purchasing power and represent a crucial target for marketers.
- The Poor
- Description: This segment has low purchasing power but is large in number. Farmers in Bihar and Orissa typically belong to this group.
- Characteristics: They benefit from various government grants and schemes, which can potentially elevate them to the middle class over time.
Characteristics of Rural Consumers
- Nature
- Social Status: Rural regions generally have lower income levels and literacy rates. Traditional values and superstitious beliefs often hinder progress.
- Occupation
- Diversity: Principal occupations include farming, trading, crafts, plumbing, electrical work, primary health care, and teaching.
- Agricultural Dominance: Agriculture and related activities are the main occupations for the majority, with land being a major income source for about 77% of the rural population.
- Market Size
- Vast and Scattered: The rural market covers the majority of the Indian population (about 74%), making it a significant area of opportunity.
- Response to Price
- Price Sensitivity: Rural consumers are highly price-sensitive and often opt for low-cost, medium-quality products.
- Attraction to Discounts: They are easily attracted by price discounts, rebates, and credit facilities.
- Payment Preferences: There is a strong preference for credit and installment plans.
- Media Habits
- Entertainment Preferences: Popular forms of entertainment include traditional performances like ‘Tamasha’ and ‘Nautanki,’ along with television, radio, and video films.
- Response to Products
- Utility Over Prestige: Rural buyers prioritize product utility over status and prestige but appreciate novel products with unique features.
- Preference for Simple Products: They favor simple, long-lasting products that offer immediate benefits.
- Cultural Sensitivity: Products must align with their religious beliefs, social norms, and traditional occupations.
- Focus on Family Use: There is a preference for family-use products rather than individual-use items.
- Service Expectations: They have minimal concern for after-sales services, guarantees, warranties, and home delivery. Branding and packaging are less influential compared to urban consumers.
- Reference Groups
- Influencers: Key influencers in rural areas include primary health workers, doctors, teachers, panchayat members, village traders, and grocers (commonly called ‘Baniya’ or ‘Mahajan’).
- Marketing Impact: Marketers must be aware of these influencers as they play a significant role in shaping rural consumers’ purchasing decisions.
Additional Insights
- Technological Influence: The increasing penetration of technology and media in rural areas is gradually changing consumer behavior and preferences.
- Government Initiatives: Various government programs aimed at improving rural infrastructure, education, and economic opportunities are slowly elevating the living standards and purchasing power of rural consumers.
- E-commerce Growth: The rise of e-commerce platforms is also opening new avenues for rural consumers to access a wider range of products and services.