Rural Brand Preference Determinants in India
Rural Brand Preference Determinants in India
复制标题
印度农村品牌偏好的决定因素
DOI:
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发表时间:
2008
期刊:
影响因子:
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通讯作者:
R. Krishna
中科院分区:
文献类型:
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作者:
Sandip Anand;R. Krishna
Introduction In the last few years, spending patterns have been changing in both rural and urban India. Discretionary incomes have started going into mobile phones, televisions, white goods and motorcycles. However, FMCG brands penetration in India, particularly in rural India, is so low that the potential for growth remains huge. The Rural market has been growing steadily since the 1980s. Rural markets are vital for the growth of most companies. For instance, more than half of HLL’s annual turnover of Rs.9,954 crore comes from rural markets. But despite the high rural share, the rural penetration rates are low, thus offering tremendous potential for growth. The proposed agricultural reforms in the Tenth Plan, easy availability of agriculture credit, the Rs. 60,000 crore village road programs, introduced recently to connect 1.9 lakh villages, and improved communication network is likely to give a huge fillip to the rural economy and incomes, resulting in higher penetration as also increased consumption rates in the coming years. “These villages and small towns, which were once inconsequential dots on maps, are now getting the attention of global marketing giants and media planners. Thanks to globalization, economic liberalization, IT revolution, Indian diasporas, female power, and improving infrastructure, middle class rural India today has more disposable income than urban India. Rural marketing is gaining new heights in addition to rural advertising.” (Bhatia, T.K; 2000) There are many challenges that companies face in tackling rural markets, some of the more critical being: understanding rural consumers, reaching products and services to remote rural locations and communicating with vastly heterogeneous rural audiences. Rural customers are fundamentally different from their urban counterparts, and different rural geographies display considerable heterogeneity, calling for ruralspecific and region specific strategies. In an urban family, the entire family is involved in making a purchase, however in the village community women have very little contact with the market, the male makes the purchase decision, and community decision-making is quite common in a village, because of strong caste and social structures and low literacy levels. The demand for rural credit is estimated at Rs. 143,000 crore. For banks, the challenge is not in disbursement but in loan recoveries because of uncertainties in Agri Sector. Therefore, it seems that gap between demand of credit and supply may be a challenge from Rural Marketing point of view.