BBA_SEM-3_RURAL MARKETING_u-4

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2 RURAL MARKET INDEX www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

THOMPSON RURAL MARKET INDEX 3 • A successful attempt in the direction of assessing the potential of rural markets has been made by Hindustan Thompson Associates limited. • They made the first attempt in 1972. since most of the data are available at district level, they collected these data for 334 districts. They identified 11 factors and assigned a weightage to each other. However, this was not considered to be satisfactory approach. • Hence another attempt was made in the year 1986. During the second attempt, they considered 26 factors for constructing the rural marketing index, in this attempt they considered 383 districts. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

4 • Hindustan Thompson Associates have developed the ‘Thompson rural market index’ based on 26 variables , including area of the concerned district , demographic pattern occupational pattern , agriculture –related data , rural electrification data and commercial bank data. • The index is majorly used in segmentation of the rural market. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

INDICATORS CONSIDERED FOR 5 RURAL MARKET INDEX Area of the district in sq km Demographics ◦ Population ◦ Males ◦ Females ◦ Density per sq km ◦ Number of villages ◦ Percentage distribution of villages ◦ Literate – rural numbers ◦ Percentage of literacy ◦ Literate : males ◦ Literate : females www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

6 Agricultural inputs data ◦ Pump sets and tube wells ◦ Fertilizer consumption in metric tonnes ◦ Number of tractors Rural electrification data ◦ Percentage of villages electrified Commercial banks data : ◦ Number of rural branches ◦ Deposits in lakh of rupees ◦ Advances in lakh of rupees www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

THOMPSON RURAL MARKET INDEX 7 After collecting the data, statistical correlation analysis was conducted with 10 selected variables related to agriculture. Following are those variables: 1. Agricultural labourers 2. Gross cropped area 3. Gross irrigated area 4. Area under non-food crops 5. Pump sets 6. Fertilizer consumption 7. Tractors 8. Rural credit 9. Rural deposit 10.Villages Electrified www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

THOMPSON RURAL MARKET INDEX 8 Based on the statistical analysis the districts have been classified as A B C D and E class markets. Class of Index Range No. of Districts Percentage of Markets Market 60 TO 100 22 A 17.80 B 40 TO 59.9 39 20.50 C 30 TO 39.9 54 20.40 D 20 TO 29.9 86 23.00 E Below 20 154 18.30 www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

THOMPSON RURAL MARKET INDEX 9 INDEX says that: • 40% of the districts have high potential (A&B) • 20% of the districts have medium potential (C) • 40% of the districts need more time to develop(D&E) This Index can be used for evolving strategies for marketing agricultural inputs and consumable and durable items. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

10 REFERENCES 1. Kashyap, Pradeep, Amp, Raut, Siddhartha, Rural Marketing, Wiley, New Delhi 2. Krishnamacharyulu, C.S.G and Rama Krishnan Lalitha, “Rural Marketing – Text and Cases”, Pearson Education, New Delhi. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

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