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Myth
1-Rural
Market
is
a
homogeneous massIn reality it is a heterogeneous market.
various tiers which present on the incomes
like land lords, traders, small farmers,
marginal farmers, labours, artisans, and
state wise variations in rural demographics
are present viz literacy (kerala 90%,Bihar
44%) & population below poverty line is
(orissa 48% Punjab 6%)
(million)
(million)
Demographic classification
Urban
Rural
Total
4.84
1.32
6.16
29.45
27.36
56.81
Total
34.29
28.68
62.97
% of total
54%
46%
100%
Urban
people.
The
dhabas
CONT_ _ _ _
1.Crop Cultivation
2.Animal Husbandry
3.Dairying
4.Fisheries
5.Poultry
6.Floriculture
7.Horticulture
Phase-II (1960s-1990)
Phase-III (After-1990s)
As a result of Indias industrial sector
gained strength & maturity signifying the
transition of agricultural society into an
industrial one.
The increased efforts of central & state
government for rural development
witnessed socio economic progress.
All these factors resulted in the growth of
rural markets for house hold consumables
& durables.
Pradhan
Mantri
gramodaya
yojana
-announced in 2002 fund of 5000 crores
sanctioned out of which 50% for roads &
rest for house, water, sanitation.
Pradhan Mantri gram sadak yojana
Pradhan mantri Rojagar yojana.-To provide
skill based training & credit.
National housing & habitat policy-aimed at
providing for all.
Swarna jayanti gram swarojagar-on going
programmes for the self employment of
poor.
To Rural
To urban
From Urban
From Rural
Products:
Population in India-proportion of
rural VS urban
Year
Urban
populati
on in
million
Proportion
to total
populati
on (%)
Total
populati
on in
million
1951
295.0
82.6
62.0
17.4
357.0
1961
360.0
82.0
79.0
18.0
439.0
1971
439.0
80.1
109.0
19.9
548.0
1981
508.0
76.0
160.0
24.0
668.0
1991
621.0
74.3
215.0
25.7
836.0
2001
742.0
72.2
285.0
27.8
1027.0
Occupation Pattern
The main occupation for a vast majority of
rural population is agriculture & allied activities.
About half of the rural population own or lease
land & cultivate it for their livelihood.
Another 27 percent are dependent on these
cultivators for jobs as agriculture laborers.
Others include petty shop owners, Merchants,
teachers, health workers & village-level
officials. So disposable income in the hands of
rural people is very much dependent on the
status of agriculture & other allied activities.
Occupation
Agriculture
50
Agricultural Labour
27
Business
10
Salary Earners
100
Income generation
The occupation pattern dictates the
pattern of income generation. Major
occupation being agriculture a large
portion of income generated in rural areas
is from agriculture & agriculture related
activities.
Occupation
Agriculture
59
Agricultural wages
16
Salaries
Others
Total Rural
population
100
Expenditure Pattern -1
Expenditure Pattern -2
Literacy Level
1971
1981
1991
2001
Rural
Urban
Rural
urban
Rural
Urban
Rur
al
urban
Male
34
61
41
66
58
81
71
87
Female 13
42
18
48
31
64
47
73
Total
52
30
57
45
73
59
80
24
Land Distribution
Infrastructure facilities-3
Infrastructure facilities-4
The
1.organised.
2.Un
organized.
Banking-Nationalised Banks,
Grameen
Banks,
Cooperatve
societies,
Cooperative
banks,
Non
Banking
institutions,
Peerless, Sahara & others
3.Innovative
Systems(avoid)
Unorganized Finance.
Village shopkeepers.
Organized Sector
Rural
5. Dispersed Market:
1.Traditional FormatHaats
Melas
Local shops
47,000(MART estimates,1995)
4,580
314
Rs2.23 lakhs
Melas
Number
of 25,000
Melas Held
annually
Average number 7.6 lakhs
of visitors
Average number 854
of outlets
Average sales
Source-Mart
study
Rs243 lakhs
Local Shops
As
Of
Warna Bazar
Rural malls
Days are gone when the kirana shop owner sat in full
control of the products stocked in shelves behind him.
Rural people can now have the shopping experience
as their urban counterparts in some of the rural
organized retail outlets listed below.
ITC-CHOUPAL SAGAR(Rural
Mall) in Rafiq Ganj-Madhya
pradesh
ITC-CHOUPAL SAGAR(Rural
Mall) in Rafiq Ganj-Madhya
pradesh
ITC-CHOUPAL SAGAR
ITC choupal sagar was the first rural mall in India, with an
7,000 square feet. it stocks almost everything from tooth
paste to fertilizer. Most of the brands that choupal sagar
sells are national brands such as Marico, eveready & others.
the mall is located near the stock points of ITCs echoupals.To offset the huge investments made in the
distribution net work ITC has partenered with other
companies interested in serving the Rural market.
Fortis HealthWorld
Telemedicine
Godrej Aadhaar
Khushiyon Ka, Khushhali Ka
Godrej - Aadhaar
GODREJ
Positioned
Godrej - Aadhaar
At harvest time, ITC offers to buy the crop directly from any
farmer at the previous day's closing price; the farmer then
transports his crop to an ITC processing center, where the
crop is weighed electronically and assessed for quality.
The farmer is then paid for the crop and a transport fee.
"Bonus points," which are exchangeable for products that
ITC sells, are given for crops with quality above the norm.
In this way, the e-Choupal system bypasses the
government-mandated trading mandis.
Features
Rural
Urban
Demand pattern
Seasonal
Uniform
Spread
Widely spread
concentrated
Literacy Level
Low
High
Sources of supply
Inadequate
adequate
Very good
Sources of information
Word of mouth
Any media
Timeliness of supply
Untimely
timely
Inadequate
Adequate
Low
high
10
Mostly No
Mostly yes
N
o
Affiliate Primary
te
Secondary whole sale markets
Village Shops
(matchboxes, Cigarettes, Tea, kerosene, Salt,
Edible oils etc
Product strategies
Pricing Strategies
Distribution Strategies