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VAKRANGEE SOFTWARESLIMITED

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 ANALYSIS OF RURAL RETAIL

CONSUMER BEHAVIOUR, TOUDERSTAND THE SCOPE OF

RURAL MARTS

Project guides

• Mr. Santosh dash

(C.E.O (Retail ,BFSI) By:

•   Mrs. Charu Bisaria Madhulika

singh

(Asst. prof. Amity University) MBA-IB

( 2012 – 14)

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OBJECTIVES OF STUDY

To understand the buying behavior of RuralConsumers

 To understand the demands and

expectations of Rural Consumers

To know what different

factors affect Consumer behavior

To understand their Income pattern, Spending

pattern, and Saving pattern

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RESEARCH

METHEDOLOGY Research Type Adopted – Descriptive Method

Data collection technique – Primary Data throughquestionnaire, by way of telephonic interview

Sample Plan – Village Level Entrepreneurs fromdifferent Gram Panchayats

Sample Size – 140 respondents , 10 from

each district

Sampling Method used – Stratified simple

random sampling

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FINDINGS FROM STUDY

More than 80% of households have a family size of 5 – 10members

More than 90% of households are electrified

75% of Rural population have an average yearly income over50,000

Top 3 Non food expenditures are: Children schooling , Mobilerecharge, Petrol/Diesel

10-30% of households have taken loans from Banks, morethan 90% of villagers have taken loans from ‘Kishan Creditcards’. 

Top three Non-Farming occupations : Commercial shops,Dail villa e labor Labor in nearb cit

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SHARE OF WALLET

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FINDINGS CONTINUED

Impressive growth in spending in Health and Educationsectors.

Huge spending done by government in Rural Areas  – NAREGA , Bharat Nirman

Significant increase in MSP

Rural FMCG growth outpacing

urban both in value and volume

Increase in mechanization ,

instead of decrease in farm profitability

Steady growth in two wheelers, almost half of motorcyclesales come from Rural areas.

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LIMITATIONS

The sample respondents are limited to the State ofRajasthan

Samples available at the time of fieldwork are smaller innumber to be generalized on a larger perspective

Large number of non-responding respondents

Lack of awareness and

illiterate respondents

Difficult to gather information

through telephonic interview

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CONCLUSION

Rural market is very large in compare to urban market as well asit is more challenging market

Rural population demand products which are easily availableand affordable

Rural consumer no longer is a layman, heis aware of the brands , the specialty

products, even their purchasing power has

increased slightly.

Future of Rural market is promising for those who understandthe dynamics of rural market and exploit them to their bestadvantage.

The scope of Rural Marts is very promising amnd there arechances of it being successful.

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RECOMMENDATIONS

Company should adapt rigorous marketing strategies, inorder to spread awareness

They should try to expand their area of focus and reachas many people as possible

Focus on Organized Rural Retail

Company should spend more in Promotional activities

and Campaign

Rural consumers prefer electronic products now, henceit is a profitable sector for the company

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FUTURE PROSPECTS IN

RURAL MARKET By 2017 Rural per capita consumption of FMCG’s  to

equal current Urban Levels

Non farm sector to contribute 70% of Rural Incomes by2020

40% Tele density in Rural India by 2014

Construction of 12 million pucca

houses by 2015 under Indira Awas Yojana

Health spend to rise two folds

100% road connectivity by 2020

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