Retailers influence 67% rural consumers

Through a research, a group of students in Nasik district of Maharashtra studied the buying pattern in rural India and prepared a roadmap for actual field research with the help of NGO-YuvaMitra. It was found that retailers influence 67% rural consumers in promoting brands and they usually promote the high margin products.

Challenge statement is defined as 'Role of Retailer in purchasing behaviour of consume for promoting the construction supplementary products effectively in the rural areas.'  Through initial secondary research about the challenge statement, we studied the various types of houses in India, some of the qualities and values of rural customers and their buying pattern. Secondary research helped us to identify the possible stakeholders that we need to study. Through the brainstorming sessions within our group we created the Possible Stakeholders Map. 


The area selected for primary research was Sinnar Taluka in Nashik, Maharashtra. We prepared the road map for the actual field research with the help of Sinnar based NGO-YuvaMitra. Based on our primary research in Sinnar, based on the important insights and observations from the field research, we observed that Retailers play an important role in promoting products in local markets. It is seen that 67% people influenced by the retailers. Major factors influencing the rural consumer behaviour are income group, brand loyalty, role of retailer, role of friends, role of radio and price. Retailers in towns or even in rural areas play strong role of influencer for individual consumers. 


In Rural India, the construction of houses has taken a shift from traditional roof tile houses to modern RCC construction. But, the construction supplementary products, which are a necessity, are not effectively used. The reason behind this could be lack of awareness about the products and promotion of the products in rural India.  


The basic idea is to look for innovative and creative out-of-the box ideas for creating promotion strategies and to create awareness in the minds of the people living in the rural areas about Construction Supplementary Products such as Waterproofing products, Leakage-Protection and Termite Proofing Products. 


In order to enhance distribution power in rural areas, companies apply match box strategy or product piggy backing method to ensure that their products reach each and every household. 


FMCG Companies use the bundle packing strategy to promote the new products along with popular products.  

Methodology 


The study based on primary as well as secondary research. Area selected for primary research was Sinnar Taluka in Nashik, Maharashtra. We prepared the roadmap for the actual field research with the help of Sinnar based NGO-YuvaMitra. Data collected for the year 2013-14. The villages covered in primary research are Sinnar town, Malegaon, Konambe, Nimgaon, Sonari, Thangaon, Sonambe, Chincholi, Dubere, Wahi, Wadangali. We tried to cover all the important stakeholders under our survey in Sinnar. 


Major insights gathered from the study; 
* They tend to push high margin products. 
* Retailers play an important role in promoting products in local markets. 
* Construction personnel are unaware of correct waterproofing methods. 
* Word of mouth is the most effective medium. 
* TV ads do not influence alone, expert advice is necessary. 
* Ads with rural themes attract people the most. 
* Construction supplementary products are used as curative practices rather than preventive measures. 
* Relatively lower income groups do not go for branded products as they do not believe in set brand mentality. 
* Some rural people are habitual to using cheap products and don't like their habits to change. 
* Farmers believe in trust and faith and demand consultancy from experts and look for after sales services. 
* Retailers in towns or even in rural areas play strong role of influencer for individual consumers. 
* Regional/local newspapers are getting advertisements from fertilizers, pesticides, farm equipments, etc. 


The construction supplementary products are available in towns with approximate population of 5,000 and above or the towns which are acting as a hub for small towns. But still people from smaller villages have to travel to the central towns to reach to the products, which leads the people to carry on the traditional practices to be followed instead of having awareness. The people who are uneducated or deprived from basic media or communication channels are not aware of the products and are dependent upon the influencers such as retailers, construction people, relatives and friends. 


Due to lack of basic infrastructure, ICT services, it is difficult to reach people in the interiors. Still we found that word of mouth is prevailing and most influencing promotion strategy. 

Conclusion 


The study concluded that retailers play an important role in promoting products in local markets. It is seen that 67% people influenced by the retailers and only 25 % consumers are nor influenced by them. Constructions personnel are unaware of correct waterproofing methods hence retailer tend to push high margin products.  

(This case study was conducted by Shritika De, Omkar Ranade, Abhishek Dhole, Amit Mehta, Vishal Shah, Student, PGDM-Rural Management (Emerging Economies), Welingkar Institute of Management Development & Research, Mumbai)