RURAL INDIA

RURAL INDIA:-

AGRICULTUR LOAN :0 TO 3% CAR LOAN:-5%

MOBILE SIM:-FREE RICE:RS 3.5

RANKED IN (HDI):-134/182

IS INDIA REALLY GREAT?

RURAL MARKETING

REAL MARKETING

Any market that exists in a area where the population is less than 10000Marketing focuses to reach its target market.

In INDIA mostly target market belongs from rural.(70%) L.G. - All places other than the 7 metros Nabard .- All locations with a population up to 10000 considered “rural”

ACCORDING TO LATE C.K PRAHALAD(GURU)

FUTURE BELONGS TO THOSE COMPANIES WHO SEE RURAL AND POOR AS THEIR CUSTOMERS.

Reasons for Going Rural

Size of the market

Largely Untapped

Too crowded Urban Market

Income on the rise/disposable income

Income from other than agriculture

Income flow from urban /abroadBetter exposure - media

GOVERNMENT INITIATIVES

CONGRESS :-THEY WORKED FOR “AAM AADMI”

MGNREGASHGPMGSY

MID DAY MEAL

SUCCESS STORIES OF COMPANIES

HUL 50%Colgate 50%LG 50%Asian Paints 60%Dabur 40%Videocon 40%Cadbury’s 25%Hero Moto corp 40%

PROBLEMS

IN

RURAL

MARKETING

Low per capita income

Low disposable income

Inadequate fixed income(daily wages)

Infrastructure problemsRoads, power

Low awareness

Communication- difficult & expensive

Too many languagesGeographic Spread

LATEST DETAILS

FACTS ABOUT RURAL MARKET

The average Monthly per capita Consumer Expenditure (MPCE) for rural areas is Rs 1054 and that for urban areas is Rs 1984.

93% people in Rural Area live in their own houses as comparative to 61% of Urban.

Food Expenditure in Rural Area is 57% as in Urban it is 44%.

9 in 10 Rural households use branded washing powder or cakes

2 in 5 uses more than 1 brand of soap

OPPORTUNITIES

Infrastructure improving rapidly

Rural literacy level improved from 36% to 59%

In fifty years only 40% villages have been connected by road

LEVEL NO. STATES EXPENDITURE

High

(Above Rs 382/-)7

Punjab 614

Kerala 604

Haryana 546

Rajasthan 452

Gujarat 416

Andhra Pradesh 386

Maharastra 384

Average

(Rs. 382/-)5

West Bengal 382

Orissa 381

Tamil Naidu 381

Uttar Pradesh 373

Karnataka 365

Low

(Below Rs. 382/-)3

Assam 338

Madhya Pradesh 326

Bihar 289

Per capita household expenditure (is Rs.)

CONTEMPORARY ISSUES

Customer is the “Queen” Digitalization Efficiency in the Supply Chain Micro financing Product customization Others

CUSTOMER IS THE “QUEEN”

Role of Women in decision making

Getting equal opportunities

Working outside home

DIGITALIZATION

E-Choupal Project Shakti Telecom Revolution Banking Govt. Initiatives: e-governance

EFFICIENCY IN THE SUPPLY CHAIN

40% of the loss occurs in transportation. Less number of warehouses are there then needed Lack of sufficient storage facility Lack of refrigerated logistic support So there is need to invest in these areas such as Providing refrigerated trucks for transportation Sorting centers and education to the marketers.

MICRO FINANCING

It is not that overnight rural India has become prosperous and consumerism is booming. A decade ago India has only 400 MF institutions covering nearly 2 lac customers, today more than a 1000 MF institutions crisscross India’s hinterland and serve over 17 million people.

Easy finance availability

PRODUCT CUSTOMIZATION

Not only reducing the bottle to the sachet

Innovative Product like Godrej’s Chottu Cool TATA’s Swatch Water Purifier Max’s Max Vijay L G sampoorna

OTHER STRATEGIES

Two to Tango:

Airtel & NokiaChannel Adaption:

Success depends a lot on how you approach your target audience

Pricing:

HPCL sold value not cheaper BrandsEngaging Rural Sales Force:

Hero Motocorp