Rural Marketing Research

Amity Business School
Rural Marketing Research
By: Pankaj Pant Sandeep Sindhu Tushar Upadhyay Anshuman Bhardwaj Abhishek Kumar
Rural Market Research

The systematic design , collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company
Sources & Methods of Data Collection

Ensuring the support of opinion leader Behaving in a manner to be liked by rural people Being at right places: o Village Chou pal o Retail outlet o o Fairs Haats
Data Collection
Secondary Data Primary data
Data Collection
Secondary Data :

Industry, commerce and trade associations FICCI, CII, ASSOCHAM Marketing research agencies and associations Rural Relations, MART, Anugrah Madison, Sampark, Rural marketing Association of India Companies Colgate, HUL, ITC, Rallis India NGOs RASS (AP), Rural Innovations Network (Chennai), CARE (New Delhi) Government Agencies NCAER, RBI, Ministry for Rural Development, Mandal Revenue Offices, Panchayats. Educational Institutions Institutes like NIRD (AP), and NIRMA (Gujarat) Media organs The Economic Times, The Financial Express, Hindu Business Line, yojana, Kurukshetra, RMAI journals and other periodicals
Data collection
Major sources providing rural data:

Census of India Largest compilation of rural demographic data NCAER (National Council for Applied Economic Research) Largest sample surveyor in the country, compiles data on demographics, durables and non-durables. NSSO (National Sample Survey Organization) Consumption and expenditure-related data on major products and services. DRDA (District Rural Development Authority) Compilation of districtlevel data on government-aided projects. ICDS (Integrated Child Development Scheme) Compilation of villagelevel information mainly on health by anganwadi workers.
Data collection
Primary Data:
In-depth interview, focus group discussion, social research (PRA), Scaling method, wheel, faces of rating, Questionnaire, Sampling
Primary data collection
PRA technique
Is a set of approaches and methods to enable rural people to share, enhance and analyze their knowledge of life and conditions, to plan and to act.
PRA Tools
Social mapping : capture house location/ caste distribution Resource mapping : availability of resources Seasonality diagram : information on the basis of seasons Venn diagrams : to identify various issues with relative importance
Advantages of PRA with FGD

Participatory Rural Appraisal
Large, heterogeneous Expression both verbal& non verbal, all peoples participate Attitudes and behavioral oriented Spot analysis by participants
Focus Group Discussion

Small, homogeneous Only verbal, out spokes person dominate the discussion Action oriented Analysis done by moderators
Cross checking and validation of data by FGD needs to be verified with more other members of group FGD till a consensus is reached
Research Tools for Rural Market

Semiotic Analysis (AC Neilson ORG-MARG) appropriate colors, signs and symbols to avoid inappropriate ones. Helps advertising agencies in promotion mix Customer eQ (AC Neilson) quality, satisfaction and loyalty which provides information about brand equity Advanced Tracking Programme (ATP) (IMRB) tracking brand health and brand equity to analyze different brands performance
Research Tools for Rural Market

Consumer ID (IMRB) different consumers relate and react to different variables of product
Lincompass (Lintas) a software tool maps rural market

Mapping software ARCVIEW - agricultural maps, socio-cultural maps, national and state highway , identifies potential market up to
village level and provides with respect to accessibility, coverage and penetration
Measurement and Scaling Methods

Restrictions on the tool for researchers1)Lower literacy level in rural areas 2)Lower level of Exposure The tools and technique for research in rural areas should bea)Simple and easy to understand b)Use of visuals and colours c) Involvement of respondents d)Empowering the respondents
Innovative tools scaling techniques

Simple, easy to understand techniques to indicate varying preferences and feelings have been evolved by rural researchers. Ladder For rating purposes, a typical Likert scale on the ascendancy is achieved by the steps on the ladder. The respondent is asked to place a visual card corresponding to the product or preference on a rung according to his ranking or rating. 2
3 4
Images of faces The images of faces with varying expressions (smiling to wailing) is another useful tool that is used to ascertain preferences and liking. Colour wheels Colours are very strong indicators and forms of expressing feelings in the rural areas. The selection of colors is done on the basis of the association of rural people with colors.
Continued..
Dice Dice are wooden or plastic piece with 6 faces with varying number of holes or dots ranging from 1 to 6. A face value of 1 is the lowest and a face value of 6 is the highest. Carrom coins Fifteen coins are given to the respondents and they are asked to distribute them among the brands under study in order of their preferences more coins for the most preferred brand. Playing Cards The face cards with K,Q,J,10 and 9 represent a descending order in terms of values. As such, they are assigned ranks from 1 to 5 in that order. 3-Point Rating Scale Researchers interested in conventional scales may use three-point scales (agree, neutral, disagree), especially when the respondents are school educated.
Colours and Associations

Colour Dark Green Rating 5 Association Represents a good crop or hariyali and hence represents prosperity. It is considered to be the best. Represents a Not very good crop Represents Dry sand or a dry field Represents Setting sun and the end of the day
Light Green Yellow Orange
4 3 2
Red
Represents danger
QUESTIONNAIRE DESIGN
Following points should be kept in mind1)Question should be simple and direct e.gWhy do you think you dont need to use a mobile phone?(not direct) Would you consider using a mobile phone?(direct) 2)Questions should be self explanatory. 3)Questions should not be ambigous.e.gDo you like the mobile phone?(not clear) Are you satisfied with the performance of the mobile phone?(clear) 4)Questions should have a logical flow, moving from general to specific, from macro to micro . 5)Questions should be in the local language. Accuracy should be checked by persons for no change in the meaning.
Urban Vs. Rural Market ResearchMarket

Aspect
Respondents
Urban
Research Rural
Semiliterate or illiterate, brand unaware. Difficult to get individual responses. Generally group responses Hesitant. But devotes time. Tough to access, Geographical barriers. Do not speak easy to outsiders
Literate, brand aware, individuals respond individually
Time
Willing to respond. Have time pressures. Spares little time for researchers Easy to access, though many suffer from research fatigue
Accessibility
Aspect
Secondary data source
Urban
Internal data, syndicate research, publish media. Many sources and large data
Rural
Less number of all categories
Primary data Large number of middle men, Less number of all experts, sales force, consumers, categories sources opinion leaders Sampling Respondents from relatively homogeneous group. Income can be criterion Sophisticated instrument, style and administration. Respondents comfortable with numbers ratings and timelines Heterogeneous group. Income and land holdings to be carefully applied Simplified instruments, respondents comfortable with colors, pictures &
Data collection
SAMPLING IN RURAL AREA

A variable such as income cannot be used to stratify rural samples. The reason is that incomes are uncertain and unaccounted. In the urban context, the income category is the primary criterion for grouping consumers. Often, rural market research utilizes land holding as an indicator of wealth and income. The land holding has to be balanced with the productivity and realizations from the crop mix.
SAMPLING METHODS:
For qualitative study in rural areas:
-Purposive Sampling - Snow ball Sampling
For quantitative study in rural areas:
-Multi stage area sampling is used
VILLAGE SAMPLING
Village could be selected on the basis of :
Population Proximity to highway or remote location Occupation profile Religion : Hindu-dominated or Muslim-dominated villages Tribal population : tribal or non-tribal.
RESPONDENT SAMPLING

Respondent sampling is done on the basis of SEC categories. SEC categories are: R1(most prosperous) R2 R3 R4(least prosperous)
CHOICE OF SAMPLE SIZE

Factor Large Small Time available More Less
Accuracy
High
Low
Cost
High
Low
Population
Heterogeneous
Homogeneous
Dos and Donts in rural market research

Wears simple clothes Familiar with local language or accompany a known person Spent time with villagers even though it is not needed to his research Purpose and its benefits to villagers should be explained in order to get correct data's. Issues sensitive to respondents should be carefully handled
Male researchers should approach a woman through her husband or guardian of the woman.
Avoid one- to-one interact as they gather as crowd.
Researcher always carry food, water and first aid kit to avoid health problems
Attributes of Rural Researchers
Mindset Effective Communication Discerning Ability Good Memory Patience
Locations for Conducting Research
Retail Shop / STD Booth Tea Stall
Playground
Chaupal Haat
Limitations of Rural Research

Low literacy levels Poor media exposure, low product & brand awareness Local language communication Scattered & remote villages Social taboos Interview timing Rule out revalidation of data

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Amity Business School