Segment Indian

Rural Market

PRESENTED
BY
ASHVIN
15MBA1383
 Introduction
With the increase in population and with the increased target
groups undifferentiated products for an undifferentiated market
is a thing of the past.

Initially, marketers in India concentrated on segmenting the

urban market only as it contributed to 75% of the revenue.
With the saturation of the urban market in recent years and the
growing demand in rural markets simultaneously, the need to
segment the market is being felt increasingly.
The Fast Moving Consumer Goods (FMCG) sector in rural and
semi-urban India is expected to cross US$ 20 billion mark by
2018 and reach US$ 100 billion by 2025. ( Source: Ibef.org)

As economies evolve, consumer choice and requirements

become more focused. This calls for Segmenting, Targeting and
Positioning (STP).
Segmentation
Segmentation is the process of dividing a
heterogeneous market, into several sub-markets
or segments, each of which tends to be
homogeneous in all significant aspects.

According to Philip Kotler, Market Segmentation

os dividing a market into distinct groups of
buyers who have distinct needs, characteristics,
or behaviuor and who might require separate
products or marketing mixes.
Segmentation
Market Segment: A group of consumers who
respond in a similar way to a given set of
marketing efforts.

Market Segments helps distinguish one customer

profile from another within a given market.

Segmentation facilitates in understanding the

needs of target buyers.
Segmentation
75% of people in rural India are engaged in
agriculture, but they cannot all be clubbed under
one omnibus category of farmers.
There are;
large farmers,
medium farmers,
small farmers,
marginal farmers and
agricultural labourers.
Their income levels, lifestyles and behaviour are
different from each other.
Segmentation
Heterogeneity of the Rural Market:
There are a number of factors that display the
heterogeneity of the rural market;
Socio-cultural differences across regions
Variation in population size and population density
Difference in levels of infrastructural development
Variations in literacy levels
Differences in income levels and patterns of income
flow
Family structure
Segmentation
Prerequisites for Effective Segmentation:
Measurable
Accessible
Differentiable
Substantiable
Homogeneity
Largeness
Segmentation
Degrees of Segmentation:
Mass Marketing
Considers all customers homogeneous.
Segment Marketing
Identifies customers as different groups
Niche Marketing
Serves selectively one or a few customer groups
Micro Marketing
Focuses on individuals or very small groups
Local Marketing
Individual Marketing
Segmentation
Basis of Segmentation and
Approaches to Rural
Segmentation:

Geographic Segmentation
Regions
Village population and density
Culture
Segmentation
Demographic Segmentation
Age & Life Cycle
Family Structure
Income
Landownership
Occupation
Education and House Type
Religion & Caste
Segmentation
Psychographic Segmentation
Social Class
Lifestyle
Segmentation
Behavioural Segmentation
Occasions
Benefits Sought
User Status
Usage Rate
Loyalty
Place of Purchase
Multi-attribute Segmentation
Segmentation
Basis of Segmentation
Thank
You