Researching Rural Market
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Researching Rural Market


Welcome everyone to the class of marketing
research analysis till date we have discussed about the introduction of market research
the steps of marketing research followed by the different statistical techniques with
hypothesis development research question development etc today we will discuss about the two more
areas one is which is very less you know discussed in markets in fact it is discussed but companies
have not put in much of importance and it has been neglected a part. To which process seck pyramid you know bottom
with the pyramid approach where he talks about how the market is like an you know inverted
pyramid and the base right the base is the biggest area which is more which is the one
which has got the large number of costumers right but these customers if I taken into
compression arte the Indian rural consumers basically right so the real consumers are
large the size is very high big but somehow companies have been unable to tape it to a
large extent okay. So why is rural market to be discussed first
of all so the first is it is a large market there is no dough about it the next issue
that comes is if you see rural markets have a certain characteristic right so let us see
the differences first if you talk about differences if you look into urban and rural research
vis a vis the urban and rural market is for if you see urban markets are more literate
brand aware individual are responsive right. In the rural markets on the other hand if
you find that the individual is mostly it is not always but mostly if they are illiterate
or less educated you can say another of many brands but this is this sometimes very controversial
thing because it has been seen that the hypothesis that rural and consumers are not brand conscious
might not be very true right. So willingness to respond and you know in
the urban life people have very less time with them on the other hand if you go to a
rural land scape people have amble amount of time this they discuss they spend the time
with their families relatives and all right so if you look at the differences in both
urban and rural research so these are some of the primary characteristics aspects like
the time that accessibility for example in urban it is easy to access but is rural it
is tough because of the geographical problems. The cultural problems right for example there
are some places many places in India or for example yeah if you go to collect data from
the rural part it is very tough because you might not find a very responsive responded
out there right then in the urban of side if you see the sample is more homogeneous
right and income can be taken as a criteria for example in the urban when you discuss
on the rural the interesting part is a person is known wealthy by the amount of land he
holds okay or the number of cattle he holds so the parameter of judging wealth is also
different right. So these are basically some of the differences
that you talk about when you discuss about the urban and rural research urban research
has been vastly researched and companies national companies MNC’s international companies
have all tried to find out ways to permit into the or you know percolate into the India
markets the other markets the rural markets sorry in the urban markets but may be if you
look at the penetration of the banks into rural India or the any rural sphere it is
very less except the public sector banks you would not find much of private sectors because
simple is they do not find it to be very profitable in nature. So the question is the rural market really
something that is not very profitable or thought to be looked up to and they should be avoided
so let us see what are this is a problem of something else that where you know the discussion
comes is may be companies have been unable or may be less innovative to find ways to
chartered to this rural base okay so what are challenges. Low literacy levels as I said right so people
or not very literate right then they do not have a poor exposure to media but this things
are slowly changing for example at least in India the media exposure is slowly improving
but we obviously cannot compare it with the urban you know urban places but still the
media exposure is comparably lesser brand awareness as I said it is controversial but
yes most of the brands they launched into the obviously because of the awareness because
of the paying ability. And all these things they are generally launched
in the urban markets local language communication becomes a big problem right for example in
the urban this is not an issue language is not an issue they can talk in the most you
know general language that is English or the national language Hindi or something, but
in rural the direct in India if you know that in India every 26 kilometers they saying the
dialect changes right now that becomes very difficult for somebody. To get it to a market where the communication
is so wisely changing right then risk and the villages are so remote and sometimes they
are so you know the scale of economic becomes a question also they are scattered and small
so apart from reaching it also becomes a question okay whether his would be economical to scatter
to such a market, the you have lot of social taboos in the rural markets right. For example if you go to a state like Haryana
somewhere why Haryana many states in India if you want to directly talk to some other
women respondents then it is very difficult Rajasthan UP Haryana anything right timing
in the interviews right the timing is also different because people usually got to the
land for cultivation and all these things for agriculture very early in the morning
right, so the timing are different right so these are some of the issues that are very
important when you discuss about the rural markets now. Two cases we can see how qualitative research
and quantitative researchers used in the rural market to my experience I have seen that qualitative
research works much better and easier than quantitative research just for the reason
that the people are mostly literate right, so they do not even understand your numbers
well this is the case where BS it says BSNL, BSNL might is a quantitative research BSNL
might ask it is customers BSNL is a government organization so it reaches into the deepest
remotest villages also. Right so it asks his customers rate the overall
service right so such techniques can be used but the few case techniques are questionable
another is if you look at the other side is a qualitative research in the qualitative
research for example HUL Hindustan Unilever limited they may stop a consumer whose purchase
LUX and ask him or her why he or she has chosen the soap, now when you ask why somebody is
choosing it the reasons could be quite different right, so by understanding the reason. With the people the respondent is sighting
one can make an understanding okay what exactly the rural customer thinks right? So qualitative research can be done in the
which is I said is more successful in the rural markets through observation though interviews
you can interact with the you know rural consumers through maybe group discussion for example
if you are talking about fertilizers tractors kind of products so you can have a group discussion
among the people right or a focus group discussion that means right and you can find out okay
what how do they purchase right how do the rural consumers purchase. For example you know the products a very interesting
case I will give you this was done by one of the companies I am not sighting the company
this company is representative what did they do it was popularized his products in the
rural market so what they did was he sat down in the near the heart is placed were in the
markets rural markets are called hearts basically so he sat down there and he brought some of
the most big sized vegetables right and he connected to the bags and tied to the bags
of you know the fertilizers and he then connected in some balloons kind of things so that to
make it colorful and attractive for the people to come down and watch it okay, what is happening. So when he did that people came by getting
an attraction towards the balloons and all and then they found they were surprised by
the size of the vegetables for example the pumpkin, the brinjal or something. So when they were surprised they said how
is that so, it so big so automatically the marketing guy being smart he said, okay this
is because of this fertilizer. So this we how the rural market works right,
so this people they are very simple they go by the face value sometimes right, so they
understand by what they see okay. So participatory research methods are also
very popular we will see, okay. Okay, some of the secondary data sources,
secondary data sources are equally important because all the while you cannot go into a
primary study so if there is some data available already with you then why not a valid right,
so they some of the industry associations are like for example the traders institutions
like FICCI right, CII Indian industry configuration, Indian Industries ASSOCHAM market research
agencies like MART right, Sampark, Rural marketing association of India. Companies do their own research also like
Colgate, HUL, Ralies India, ITC which are mostly they have entered into the rural marketing
in a bigger. These are some of the companies ralies India
being a Tata group and all they have penetrated into the Indian you know rule and scale every
nicely. Some of the NGO’s and other government agencies
so these people have done enough of research in the rural markets and the data are available
with them, right other educational institutions are also there. Even ONM also does its own I know they have
do it their own rural research right, in a big way. So these are some of the measures sources
providing rural data, for example if you want to know okay, what are the sources from where
I can get the rural data these are some of the sources. The earlier one was the bodies and they are
sources the census of India, the National Council for Applied Economic Research NCAER
then NSSO National Sample Survey Organization, then District Rural Development Authority,
Integrated Child development Scheme so these are some schemes or some of the sources from
where you can get the rural data, right, okay. Now you see the rural market is more heterogeneous
in nature now why because the disparity of wealth is quite high sometimes you find people
very poor, and sometimes they are people who are rich landlords okay, so in some places
toothpaste and soap or luxuries where in some places it is a necessity right, so you look
at the some of the example, these some of the examples. In a case of Haryana and Punjab, Haryana is
a state and Punjab are two states in India so where lassie the you know, you see the
use of the products. Now the washing machines are being used for
making lassie so a company who sells washing machines can also make it a kind of a market
for it right, can think of it is a market right. So the other examples for example if you look
at this, now one has to understand any marketer or anybody if you want to understand the rural
market you have to understand that the rural consumer behavior is quite different right. The habits are quite different now in some
parts of Rajasthan for example, utensils are cleaned with ash and sand, now why is it because
there is a water scarcity right, so washing powder would face stiff competition from the
alternatives that need very little water. So now it is a challenge for any marketer
to innovate or device a product which can use less water and then only the people will
appreciate it, right. So again in places where there is a hard water
right, in Rajasthan many places Bihar and Rajasthan so you find there is a low acceptance
of soap because the soap does not work because the water is too hard right, okay. Now how do you sample in the rural areas. Okay, sampling in the rural areas can be the
researcher has to be very smart enough to understand okay, what is your objective of
the study and according to your objective of the study you have to find out okay, what
exactly you know who are you looking to, so what is your respondent, who is your respondent,
who is your sample we will decide accordingly. Now one is as I told you earlier also in rural
market research says that land holding is an indicator of wealth and income and it is
not about how much money you have in your bank or something but it is how much of land
you have in your bank or something but it is how much of land you have right in the
urban context may be income works right, so land holding has to be balanced. So there some of things when you are looking
in the sample you have to understand who exactly would be your consumer because as I said there
is lot of hydrogenate in the market so you have to understand who exactly could be my
possible consumer so once the companies can understand this then accordingly they can
find the right respondents okay. Now the village sampling for example area
sampling we have already discussed area sampling cluster sampling so the rural markets are
scattered they are small and you know they disposed so you can there researcher or the
marketer can think of making a cluster of villages also a single unit right. So it could be selected villages could be
selected on the basis of population proximity or accessibility to highways or something
occupation profile what is the main profile of the people in that village right religion,
religion works very importantly at last in a country like India so one has to be very
clear when you are trying to go to sell a product whether the religious sentiments would
have effect or not right so that has to be seen. Similarly you want to understand when you
talk about rural markets you just cannot go with the similar mindset that you have for
urban markets right now for urban markets your data collection is more simpler but for
rural markets you have to be extremely careful while you are collecting the data. Now because the person the respondent might
be less educated he might not understand your thought process as well so and so problems
right. So it has been is seen that earlier several
sophisticated tools fail to evoke the or generate the required response in the rural markets,
so companies thought their ideas would be good brilliant and they would be excepted
but in rural markets they bombed they failed okay. So detailed question similarly when people
make detail questions it might not work well in the rural market because the rural consumer
would not be interested to re did in detail right. So is there any other way yes rural consumers
are more comfortable with color picture stories so one which I gave an example of the fertilizer
is a case of similar sub thing similar so visibility so who you can attract the consumer
they comfortable with colors so the balloons are red blue yellow green may be so they attracted
them right. So in when you talk about getting data from
rural market you can use a continuous scale right give them length and say how this is
0 this is suppose the full. So where do you want to place it as for satisfaction
so they might be able to give you a some response or you can give them graphical or face you
faces you know for example some smiling face suppose how do you like this fertilizer or
how do you like this tractor somebody smile there is a smiling face there is a crying
face there is a highly satisfied face so the person can pick it or give his opinion accordingly. So when he does that automatically you realize
well this is what he wants to sell okay, rural researchers make use of participate research
methods okay. so we understood now that in the rural market your data collection techniques
have to be smart enough I would not use the word any other word because I would said it
smart right. So if you want to do is similarly as you were
doing in the urban it would not work right, so what are the different techniques. So secondary data sources already there so
different bodies are there I just told then observation now observation method is very
important method in the rural markets because when people cannot speak their mind what is
in their mind it is better to absorb them how they are selecting something or they are
responding to something right. So that becomes a very important way of understanding
or data collection interviews diagrams right face making different faces stories pictures
and asking them to how do you relate with it or something like this so all these different
techniques are more in to you know like is a method of understanding his physiology okay
physiology so if you can understand the physiology it is better you would go in to better response
or the you know data collection okay data collection would be most simpler okay so if
you remember we had discuss about trimetric perception test story writing you know sentence
completion work completion. So those kind of techniques are more popular
quality research parts and more popular interval markets so what is this participatory rural
appraisal it is the data collection technique that gets the participants of the process
research process to be actively involved in the research so it is has good as suppose
a company wants to know how people would buy they would ask to the person to come and select
the products right. A good keep large number of products not necessary
their products their competitors products also and then they would be asked to select
the product and say and finally say why did they select this products right so by participating
they are more vocal and they speak better and more clear okay so it is the method which
enables rural people to share enhance and analyses the knowledge of life and conditions. To plan into an act thus what it is arouses
the curiosity of the people and they voluntarily and eagerly get involved in the process so
that is what you cannot expect them rural people as I said they are very more or less
they are honest and they do not get into too much of complexities so once they are involved
in the process once they are part of the process then they explained the process more clearly. Why and how they did it okay so these are
some of the things which have so I am not getting into this in participate rural appraisal
focus group discussion there is a small difference this is the difference between the two like
this is the PRA is more heterogeneous in nature ensuring participation from all works of life
so people is not necessary that a particular kind of respondent would be selective which
is their in a focus group discussion right so typically small homogenous groups but that
is not in the case of PRA. And similarly people who are good in speaking
generally are part of the focus group discussion but it is not in the case in case of PRA right
moderator role is almost negligible in the participatory approach right and in the case
of focus group discussion the moderator play’s a very important role because he is the one
who is going to moderate still than in decision to be arrived okay. So they are some of the differences between
the two oaky so what are the key principles of the participation participatory rural appraisal
the fist is participation and empowerment it realize heavily on the participation by
the communities right it has very flexible so you might not use only one method of data
collection but you can use the multiple number of data collection methods okay. So by doing that what happens is automatically
we have data collection approach becomes richer and more flexible okay team work optimal ignorance
so it evolves unnecessary details and irrelevant data so data which is not workably importance
to the research study can be ignored okay So these are the characteristics the key principles
of the and it inclusiveness it is this research method of research to involve various kinds
of people so people who might be a consumer or might not be a consumer would also be part
of the participatory rural appraisal right but there is a drawback like for example time
deadliness so insufficient time is allowed for the team to relax and mingle with the
local people to listen to them. Since the number is not defines it could be
a large number so giving time to individuals becomes an understanding them might some time
become very difficult okay creditability is sometimes questionable but then till it is
much better it is very powerful technique right so this are some of the things okay. Now while designing suppose you have understood
that rural markets this is how it functions now I have to collect the data so I have to
make an instrument questionnaire while making an instrument of the questionnaire. You need to understand that the question should
be simple and direct you should not making it very complicated for the rural markets
because it is not required the question should be self explanatory it should be easy right
not ambiguous at all right there are some of things that one has to understand and most
importantly. The question should be in the local language,
if you want translate the accuracy of the translation should be checked by the person
from the same region, suppose we have collected a data then you have to collect from their
local in local language and while transforming and translating we need to be ensure it with
the knowledge of the person who got the you know the knowledge of that particular language. So this is very important that whenever you
do a research, you have to be very clear that the local language needs to be kept in mind
okay. Case of the guidelines for the research investigators
appearance for example, it should be simple and culturing the bound because well marketers
well people or sensitivity to the culture. So if they do not connect with you they will
not open up, they will not participate okay. So greetings a courteous greeting win respect
to age mentioning in the relationship is very important. Language speaking in the local language is
extremely important we have already discussed. So there are some of things right, the flow
in the questioning and getting responses, when you are conducting a research, you cannot
be as fast as you are in no conditions because we are the people are slow they have their
own space, their own time, so they are not in the hurry. So if you are in a hurry, then they might
not appreciate it, they might not give you the true picture, so encourage group interaction
right after gaining trust. What should not you do? Do not pretend, avoid direct enquiry, do not
touch, sometimes touching the arm or placing the hand on the shoulder might not be desirable
right. Avoid suspicious behaviors; behaviors are
traditional in the outlook. So male researchers should not talk to women
without the female assistance, so if you are speaking to some women and you are male and
directly if you do that, you mean into trouble, so you should avoid it. Do not get controversial, when you get into
real research, you need not discuss about the village politics, and you need not get
into the heated argument right. What should be the ideal characteristics? He should have the mind set to think like
a real villager right and constantly well hidden response. Effective communication, so more effective
communication as the accurate responses in rural research right, then he should have
the ability, when to ask a question and when to finish it. So you should know when should I bring in
the question and a new idea and how do I finish it, so sensitivity issues need to be handled
delicately. Nobody has to be good enough all the time
you may not right because they might become little scare. Because they are living in the life you know
a different life, like go to somebody what is not desirable are not good for them. So one should avoid these situation and patience
finally. Now coming to the colors and association,
so as I said real images and real people are more open when they understand you much better,
when you ask questions, the question as to be in a local dialogue or when you are using
colors they become more attracted right. so for example , this is the research thing
which has been said, you know instead of giving 1, 2, 3, 4, 5 as numbers which they might
not understand, if you give it red, orange, yellow, light green and dark green. Because red is 1, it is danger, orange is
setting sun end of the day 2, yellow dry sand dry field 3, light green is not a very good
cloth 4 and dark green is very good cloth 5. One needs to understand how we are going to
conduct the rural research so what are the right. locations for conducting the research rural
research the best places are the shops and the places where people are coming for a discussion
for relaxation right so if you get hold of people to discuss with them they are more
free and open to your ideas okay tea stall, play ground, chapel where the mostly the discussion
happens and even in heart. So these are some of the places where the
research can be rural research can be conducted okay well this is all that I discussed about
rural research but again tell me tell you one thing that rural research can be very
successful to improve the bottom line of companies like LG have done it extremely nicely extremely
well by introducing the you know brand of TV like Sampoorna and plus which they brought
into the rural market they brought even washing machine and refrigerator looking at the rural
peoples need. And you know they want so when you can do
this kind of designs even recently ICCI they tired up with some of the diary companies
to sell their insurance policies right so the question is rural market is there it is
large it is hugely available but the question is it is still not attractive for some marketer
because they feel it is too scared and it is not a economy scale and they do not find
that the same standardize product could be possibly sold yeah that is possible very much
possible but one has to understand that 70% of the market still lives in the rural India
right. So if you want to be if you want to open a
if you want to increase your bottom line your profits every marketer has to understand the
requirement and need of the rural consumers and accordingly develop products for them
and sell it to them right for example Marathi came up with a very interesting idea to you
know they associated the sales of a car with a Brahmin now Brahmin mean the one who breaks
the coconut to make it more auspicious right. So by doing such things Mahindra and Mahindra
recently did one good thing they said not only the vehicle but the health of the driver
who is running the vehicle is also equally important to them so by having such slogans
such things they have become they made it very attractive to the rural consumers so
this is what we have in the rural market for the researcher thank you very much.

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