04/18/2023 1Rural Marketing

Presentation on“Small Towns Closing Gap With Cities in Spending”

Presented By :Vikash kumar

04/18/2023Rural Marketing2

Introduction Small Towns Those towns that have populaion of

less than 1 million. At present,there are 5127 small

towns in India.

04/18/2023Rural Marketing3

The Potential Of Small Towns

Small towns are becoming hubs for marketing activities.

Purchasing power of peple have increased.

Availability of adequate land at a reasonable price is most eye catching for marketers as they also have an advantage of low construction cost and lower rentals.

04/18/2023Rural Marketing4

Cont...

As per the McKinsey UrbanisationReport(2010):-1.There has been a significant and impressive

growth in the last 15 years in these small towns.

2.Tier 3 and Tier 4 towns will contribute 50% of urban GDP and will add 70 m consumers by 2030.

3.Small towns will become self sufficient with the provision of basic services which will reduce the migration load on larger cities.

04/18/2023Rural Marketing5

Distribution of India’s urban population by city Tier

04/18/2023Rural Marketing6

Main Reasons For the High potential of small towns

Own(small town) population. Proximity to villages. Income levels and buying powers. Bridge between urban and rural. Infrastucture Opportunities. Penetration of durables and FMCG

products.

04/18/2023Rural Marketing7

DurablesIncome Level

Durables

04/18/2023Rural Marketing8

Small town consumer behaviour

Growing affluence,better standard of living.

e.g. Gitanjali groups(Diamond jwellery co) succeded in small owns like Berhampore,Orissa.

In auto industry Tata Nano,Chevrolet spark, Hyundai(40% sales from small towns and rural areas)

Increasing awareness and importance of education through media penetration,DTH service,Cable & satelite services.

04/18/2023Rural Marketing9

Cont….

Out of total subscribers of DTH 70% are from small towns and rural areas.

Aspirations and lifestylese.g. young people from small towns are today

aspiring for jobs like air-hostesses,radio jockeys,pilots,flght stewards,newsreaders.

Increasing brand awareness and preference for premium product & services.

04/18/2023Rural Marketing10

Cont…

e.g. Canon a japanese imaging equipment maker,launched the special campaign named “image express’’ in 2010 to push it’s sales into smaller towns.

Consumer buying behaviourOccasions of purchase are festivals like

Holi,Diwali,Baishakhi etc.

04/18/2023Rural Marketing11

MART Research 2010

04/18/2023Rural Marketing12

Article Analysis

04/18/2023Rural Marketing13

Article Overview

The article related to the small town,i.e.Rudrapur(Uttaranchal).

This town has grown by leaps and bounce in last 5 years.

Tier IV towns are no longer a poverty market as small towns are catching up urban centers in terms of consumption and disposable income.

Rudrapur has shown ten times growth in areas of retail,education,healthcare and in other sectors as well.

04/18/2023Rural Marketing14

Cont...

As far as Disposable income is concerned Tier-IV towns contribution is 39% which is equal to the Tier-I cities contribution.

MART estimates claims that there are 5127 small towns representing more than 50% share of households.

04/18/2023Rural Marketing15

Tier-I (8 Cities) is having 8% of total population

Tier-II (26 Cities) 4%Tier-III (33 Ciies) 7%Tier-IV (5094 towns) 11%

The rest 70% is the rural population residing in the 6,38,000 villages across India.

04/18/2023Rural Marketing16