VAKRANGEE SOFTWARES LIMITED

ANALYSIS OF RURAL RETAIL CONSUMER BEHAVIOUR, TO UDERSTAND THE SCOPE OF RURAL MARTS
Project guides Mr. Santosh dash
(C.E.O (Retail ,BFSI) By:

Mrs. Charu Bisaria singh

(Asst. prof. Amity University)

Madhulika
MBA-IB ( 2012 14)

OBJECTIVES OF STUDY

To understand the buying behavior of Rural Consumers 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

RESEARCH METHEDOLOGY

Research Type Adopted Descriptive Method Data collection technique Primary Data through questionnaire, by way of telephonic interview Sample Plan Village Level Entrepreneurs from different Gram Panchayats Sample Size 140 respondents , 10 from each district Sampling Method used Stratified simple random sampling

FINDINGS FROM STUDY

More than 80% of households have a family size of 5 10 members More than 90% of households are electrified 75% of Rural population have an average yearly income over 50,000 Top 3 Non food expenditures are: Children schooling , Mobile recharge, Petrol/Diesel 10-30% of households have taken loans from Banks, more than 90% of villagers have taken loans from Kishan Credit cards. Top three Non-Farming occupations : Commercial shops,

SHARE OF WALLET

FINDINGS CONTINUED

Impressive growth in spending in Health and Education sectors. 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 motorcycle sales come from Rural areas.

LIMITATIONS

The sample respondents are limited to the State of Rajasthan Samples available at the time of fieldwork are smaller in number 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

CONCLUSION

Rural market is very large in compare to urban market as well as it is more challenging market Rural population demand products which are easily available and affordable Rural consumer no longer is a layman, he is aware of the brands , the specialty products, even their purchasing power has increased slightly. Future of Rural market is promising for those who understand the dynamics of rural market and exploit them to their best advantage. The scope of Rural Marts is very promising amnd there are chances of it being successful.

RECOMMENDATIONS

Company should adapt rigorous marketing strategies, in order to spread awareness They should try to expand their area of focus and reach as many people as possible

Focus on Organized Rural Retail

Company should spend more in Promotional activities and Campaign Rural consumers prefer electronic products now, hence it is a profitable sector for the company

FUTURE PROSPECTS IN RURAL MARKET

By 2017 Rural per capita consumption of FMCGs to equal current Urban Levels Non farm sector to contribute 70% of Rural Incomes by 2020

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