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
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