Embed Size (px)
Citation preview
MANAGEMENT AT GRASSROOTS
AGENDA…
Current scenario Education & innovation Entrepreneurship Energy, sustainability & health care Role of IT
MAHATMA GANDHI
“India lives in villages”
Villages are the heart of India. India’s population (equaling
12.2% of the world’s population) lives in 6,38,365 villages spread over 32 lakh square kilometers.
Some FACTS…Rural
ConsumptionRs Bil l ion
2005 9688
2015 16701
2025 26383*
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 /abroad Better exposure – media
Need to go RURAL… FMCG majors have high growth
requirements Many ‘not so huge’ firms that face
difficulty to grow in urban markets due to competition
Some forms opt with FUTURE in mind i.e. early start
TASTED SUCCESS… Companies having market share in Rural
India : HLL 50% Colgate 50% LG 50% Asian Paints 60% Dabur 40% Videocon 40% Cadbury’s 25%
Rural India rocks…Rural India buys : Soft Drinks approx 45% of all soft drinks Almost 50% motor cycles Approx 55% of cigarettes Half the total market for
TV Fans Pressure cooker bicycles Washing soap Tea Blades Salt Toothpowder
Rural India rocks Coca Cola is growing over 35% in Rural areas
compared to Over 22 % in Urban Consumer durables in Indian Villages risen
sharply TV Sales up by 200% Motorcycle by 77% There are 3000 households in rural area that
earn > 50 lakhs
Challenges for a marketer Low per capita income Low disposable income Inadequate fixed income (daily wages) Majority depends on agricultural income
Dependence on monsoon Consumption linked to harvest
Infrastructure problem Power / Electricity Low Awareness Communication Too many languages Geographic spread
4 P’S AND 4 C’S
PRICECOST
Rural Mantra – 4 A’S AND 4 P’S
Overview
Rural Consumers
Product Price Promotion Place
Quality conscious concerned with functional benefits value for money
Premium Product High High Show rooms, Maals,
Value conscious Price sensitive concern with functional benefits
Mass Products Medium High General and fancy stores paan shops and haats
Price conscious Spurious products Low No Kirana, paan shops and haats
Current Operating Systems…
Mandi`s Haat`s Mela`s
Great opportunity in RURAL
Education & Innovation… State funded “Rural University” offering
courses in Agriculture Management, Rural Healthcare Management, Rural Finance etc.
Use of latest technology Accountability in systems introduced KPI`s for all educational Institutes Arrival of foreign universities
“Indian farmer takes birth in debt, lives in debt & dies in debt”
Entrepreneurship http://ibnlive.in.com/videos/67926/vegetableselling-iim-grad-out-to-build-bihar-brand.html
Start Small Think BIG
Entrepreneurship…Issues Lack of confidence amongst farmers Loop holes in education systems Labour problem Price for agri products Lack of standardization No use of latest technology like
MCX,NCDX
Developmental Marketing…
Rural is not about numbers or geographical location…
It is about ‘the mindset’
Background
LIC is a strong player with great equity in rural and small towns
Pvt players are looked at with suspicion People in rural/small towns still do not
understand the concept of insurance in its totality
Challenges….. Rural people plan their life one harvest
season at a time They do not trust pvt players & prefer
dealing with familiar govt organizations like LIC & SBI
Lack of knowledge about financial planning
Change “traditional” mindsets
The Opportunity….. The villager wants his son to to study &
work in the city….. It ICICI Pru could provide a solution it
could win the confidence of the villager This will lead to the sale of the product-
Children`s education Policy which is not associated with LIC
The Solution & Sales Impact Get the parents to think about financial
planning for their children Make them understand the level of
preparedness required when the child steps out from the village to the city
Objectives of the activity: Increase overall sales by 50% in locations where the
activity was run Improve brand preference & consideration
The Delivery Mechanism
Why a School Contact programme: Mass media(TV) has limited reach Limited availability of electricity Insurance cannot be sold overnight as people consider,
evaluate and take time before buying an insurance policy
Need for dedicated two-way communication in a serious setting
What PKAP is designed to be Rural students are talented but they
lack in exposure & guidance PKAP is a unique learning programme
that helps them unlock their potential In the process engage parents to plan
for their children`s education with commitment
PKAP- Architecture
Two day module:Day1(Children`s Module)- Communication Skills
Memory Enhancement Tools Vedic Maths & Logical reasoning
Day2(Parents Module)- Arthyudh
PKAP- Architecture
Achievements on day 1 Children learnt new things in a new way They were excited about what they saw & did They were exposed to various career
opportunities Teachers were exposed to a new way of
learning Created a memorable experience and got the
children to carry the excitement back to their parents
Value addition
Parents Invite
Can you do 97 98 in 15 sec?... . .NOW YOUR CHILD CAN!!!
Arthyudh….. Aim is to make parents understand the value
of financial planning for their childs future Taking the parents through what they were
taught on day 1 Playing financial games like designing your
monthly budget of ‘today” Highlighting the needs of future expenses like
college education, marriage etc
Achievements on day 2 Opened the parents eyes on various
career opportunities Helped them explain the concept of
planning for future Explained the need to start the planning
now
Closing the Loop Individual photos of the kid are clicked The local advisor puts them in a
branded frame & sends it to the home This will help the insurance salesman to
get an entry into the potential household
The Scale of the initiative Year of roll out: August 2009 68000 students exposed to innovative &
fun learning techniques in 09-10 60,000 business leads were generated in
09-10 23,000 parents were educated for the
need of financial planning for children in 09-10
