Planman media hosted a special interactive session on May 28, 2010 focusing on a very contemporary and relevant topic in the automobile sector – ‘The fight between the urban and rural consumer’ – at India Habitat Centre, New Delhi. As almost all automakers in the country are heading towards the Tier-II and Tier-III cities to generate a sustainable growth for the future, we decided to explore how strategies differ when it comes to convincing the rural consumer versus the urban consumer. The session was attended by industry stalwarts, media representatives, journalists and also members of the editorial team at Planman Media. The welcome address was given by Planman Media’s editor, Prof. A. Sandeep, where he questioned the importance being given to rural markets – as rural customers earn almost five times lesser than the urban customer, and spend much less as compared to the urban consumer. Pankaj Dubey, National Business Head, Yamaha Motors (India) was the first speaker, where he threw light on Yamaha’s rural strategy. Notably, after gaining a considerable position in the premium segment, the Japanese two-wheeler major has recently made its presence felt in the executive segment with the YBR 110. The next speaker Sanjeev Goyle, Senior Vice President – Marketing (Farm Equipment Sector), Mahindra & Mahindra, defended the rural consumer commenting that Mahindra & Mahindra has become the world’s largest tractor manufacturer last year, purely based on sales in the Indian rural markets. Goyle focused on how the rural consumer, both behaviourally and in terms of need based purchases, is different as compared to the urban consumer. At the same time, the subsequent speaker, P. S. Choudhary, Head-Marketing, LML, stressed on the fact that there were many similarities between the urban and rural consumer, especially while considering the automobile industry. Choudhary shared his 4A theory for rural India – affordability, awareness, availability and acceptance. The next speaker, Udit Bhandari, CEO, Indimoto, peppered his speech with research findings that differentiated rural from the urban consumer. The last speaker, Anuj Guglani, CEO, Ace Associates, provided hard statistics, research data and convincing figures that augmented the past speakers’ various points. The concluding session saw the speakers agreeing to disagree on how much advertisement spend should be invested in the rural segment. In all, a critical and incisive conclave.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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12/08/2011 2:07am

The focus of this B-school ranking has deliberately been put on the parameter of placements as most management aspirants and students today seem to be giving greater weight to placements than to quality of education. In the second stage, TSI took up top 30 B-schools in this list and ranked them further on a uniquely developed placement index. The final ranking of these top 30 prepared by ICMR is, therefore, based on the Total Placement Activity Index (TPAI), which is an extremely unique index as it takes into consideration total placement efforts of an institute viewed critically in terms of its contribution to employment generation. TPAI, therefore, is the percentage mean weight (i.e. average salary multiplied by % batch placed) further multiplied by the batch size. In other words, TPAI is also equal to the average salary package multiplied by the exact number of students placed. For example, a B-school might have just 30 seats and thus may be able to provide an average annual salary of Rs 20 lakh to its students, while another B-school might have 300 students getting Rs 12 lakh average salary.

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13/08/2011 1:39am

The boom in the auto Industry in India was reflected in the search behavior of Indian users on Google. According to the report, the auto vertical witnessed tremendous growth in online searches registering 110% and 84% growth in 2009 and 2010. The trend continues to show fast paced growth this year with the auto category showing a growth of 72% in the first six months of 2011 over same period last year. The auto vertical is now also the fastest-growing vertical compared to other key verticals like consumer electronics, finance and travel.

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13/08/2011 1:41am

The online search behavior of consumers mirrors the offline world, as query volumes on Google search see a 38% increase over first half of the year as Indian consumers tend to make auto purchases during the festive season (2009 to 2010). Indians are also more research oriented when it comes to auto related purchases, with 65% Indians using the Internet as the first place to do their research before deciding on the vehicle of their choice. This is ahead of consumers in mature markets like US and Europe where only 62% of users use Internet as their first stop.

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13/08/2011 1:46am

Advent of suburban society Because of the automobile, the outward growth of cities accelerated, and the development of suburbs in automobile intensive cultures was intensified. Until the advent of the automobile, factory workers lived either close to the factory or in high density communities farther away, connected to the factory by streetcar or rail.

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13/08/2011 1:49am

The automobile and the federal subsidies for roads and suburban development that supported car culture allowed people to live in low density communities far from the city center and integrated city neighborhoods.

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