STUDENT OF CHANDIGARH UNIVERSITY

1. Segment Indian RuraL
Market
PRESENTED
BY
ASHVIN(15MBA1383)
and Kanhiya
15MBA1608

2. Introduction
Marketer can target a market with two broad strategies.
Mass Market
Strategy
Market Segmentation
strategy
•Market Segmentation is the process of identifying small Markets that
exists within a large market .

3. 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.
 Heterogenity
Population size, socio cultural difference
between regions, difference in income
level, family structure.

4. 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.

5. 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.

6. Prerequisites for Effective
Segmentation:
 Measurable
 Accessible
 Differentiable
 Substantiable

7. Degrees of Segmentation:
 Mass Marketing
 Segment Marketing
 Niche Marketing
 Micro Marketing
(i)Local Marketing
(ii)Individual Marketing
 Mass Marketing : Most marketers used this in rural
markets.
All consumers being treated the same.
Company could target maximum no. of consumers.
First step in marketing-less market knowledge

8. Segment MARKETING
 Identifies customers as different groups
 Eg1: Colgates 10Rs sache in 2000 aimed rural consumer
 Eg2: LG s low cost television Sampoorna(1999)

9. NICHE MARKETING
 Niche marketing is used when there is as small group
with specific need .Our rural market is not matured to
this level
Eg: Hero Honda bikes, Nokia mobiles

10. MICRO MARKETING
 Focus on individuals or very small groups
To satisfy a particular taste or need
Eg: Dabur launched Anmol,a mustard and amla based
hair oil to target rural consumers in northern markets
who used loose mustard oil.50 ml pack worth
Rs 10.

11. Micromarketing is divided into
Two..
i)Local marketing
This involves designing brands and promotions to suit the
needs of local customers on the basis of geography and
demography.
Eg:Philips promotion programme in TamilNadu Engavettu
superstar.
In TN Rajnikanth is the superstar.
-- Castrol Using Rajani Kanth Too.

12.  In Andra pradesh they launched the campaign maa inti
megastar.
 In AP Chiranjeevi is the megastar This strategy helped
them to increase their television sales by 25-30%
Similarly Coca cola India Used Chiranjeevi in Thumbs Up
Promotions.

13.  Eg 2.MRF introduced nylon bullock cart tyres.They
used the muscleman symbol as well as their
leadership in tyres.Finally the communication
revolved around the brandname and its meaning
viz.,
Pahalwan Muscleman.
MRF became the leader

14. INDIVIDUAL MARKETING
 Individual can get the product made exactly to his need
Eg: carpentry,tailoring .

15. Why is segmentation useful ?
 Segmentation helps firm tailor their marketing programs
 focuses an actionable and accessible set of the market.
 cuts of wasteful expenditures on unwanted consumers
 matches needs and wants of specific groups of buyers to firm’s
offerings
 stimulates demands through multi-products for multi-segments
 resource allocation to segment specific marketing mix activities will
be made more efficient
 Segmentation is a way to plan rather than explain

16. Bases
Geographic - Rural Urban; metropolis/city/town/village;
modern retail stores/kirana stores / mandis/ haats/
Demographic – Age, Family Size (nuclear or joint ),
gender,Income, Occupation, Education, SEC,
religion, race,Nationality, social class
Psychographic – Use of Psychology and demographics
•Lifestyle (AIO) – Nike, Benetton, * Personality – Femina
– woman of substance
* Values – HiDesign leather accessories – consumers
who hold the value ‘style and elegance in a classical sense’
Behavioral Segmentation – next slide
Basis of Segmentaion

17. GEOGRAPHIC SEGMENTATION
Geographic
Segmentation
NORTH
Aggressive, Dominant, Big is
Beautiful
EAST
Sensual, Assertive Women,
Men socialistic, idealistic
SOUTH
Sensual, Rational, Diligent
WEST
Leisure, Simple Life,
Money is God,
Democratic
http://www.facebook.com/mr.fortyseven
Commercial
Open to new
product
Simplicity
Cleanliness/Hygiene
Emotionally
expressive
Generous
Family centric
Culturally concious

18.  Village Population and Density size of population
-a major factor that determines the overall potential
demand for a product/service.
Class I-population over 5000.
Class II-population between 1000-5000
Class III-population less than 1000
Climate: Climatic conditions play an important role.
Eg: talcum powder in hot and humid regions,
and health tonics in winter.
Culture: Society and culture provide insights into the
attitudes of people and their needs.

19. Demographic Segmentation
 Age & Life Cycle
 Family Structure
 Income
 Landownership
 Occupation
 Education and House Type
 Religion & Caste

20. Segmentation
 Psychographic Segmentation
 Social Class
 Lifestyle
The slowdown experienced by India on account of the IT
(information technology),real estate, financial services
and automobile sectors was an urban phenomenon .
-15.6 million middle class house holds in rural India
-Rural households form 72% of the total households.
The above Factors have made the
Manufacturers to come to rural..

21. Some examples are
 Affordability Has changed the Life style
-Godrej introduced three brands of Cinthol, Fair Glow and Godrej (soap)
in 50-gram packs, priced at Rs 5.
 Adidas and Reebok increased their sales by 50% in rural markets by
reducingprices. Size and design changes
 Videocon introduced a washing machine without a drier for US$60;
 Philips launched a low-cost smoke less chulha
(stove);
 DCM Shriram developed a low-cost water purifier especially for rural
areas.
Improving product acceptance --
 LG Electronics developed a customized TV (cheap and capable of picking
up low-intensity signals) for the rural markets and christened it
Sampoorna. It sold 100,000 sets in the first year;
 Coca-Cola provided low-cost ice boxesas regular power outages meant
families could not depend on refrigerators.

22. Segmentation
 Behavioural Segmentation
 Occasions
 Benefits Sought
 User Status
 Usage Rate
 Loyalty
 Place of Purchase

23. Segmenting the Market: Nirma vs HLL
Until about twenty ago, the rural market in India was considered a
homogenous decade of the 1980s was a significant one for Hindustan
Level Ltd (HLL), when the giant and undisputed market leader in
detergent (Surf) in Indian Suffered significant losses at the hands of a
new and small firm , Nirma Chemicals . Nirma immediately caught th
fancy of the middle and lower-income customers, who were finding it
difficult to make both ends meet with their limited monthly income.
Nirma was the lowest –priced branded washing powder available in
grocery and co-operatives stores. The middle class house wife was
happy as she could choose a lower priced washing powder against
Surf, Which was beyond her budget
Around 1984 , HLL decided to take a fresh look at the market.
Research conducted across the country revealed that different
income groups of consumers had varying expectorations from
detergent and washing powder. Thus, to counter the attack from
Nirma, HLL launched Sunlight (Yellow), Wheel (green) and Rin (blue)
detergent powders for different market segments. This strategy of
segmenting the market helped HLL win back part of its lost market.

24. Segmentation by companies
 T-Series introduced audiocassettes at unbelievably low
price and took away a huge share from the market
leader HMV.
 Cavin Kare studied the Shampoo market and came out
with Chik Shampoo priced at 50 paisa per sachet and
the brand became an instant hit in rural areas.
 Titan has introduced Sonata brand watches; priced
between Rs 350/- and Rs.800/- to meet the
requirement of price sensitive rural and semi urban
consumers.

25. Thank
You