RURAL INDIA

RURAL INDIA:EDUCATION LOAN :12% CAR LOAN:-5%

MOBILE SIM:-FREE

RICE:RS 20

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

10000 Marketing 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.

Size of the market Largely Untapped

Reasons for Going Rural

Too crowded Urban Market

Income on the rise/disposable income

Income from other than agriculture

Income flow from urban /abroad Better exposure - media

GOVERNMENT INITIATIVES
CONGRESS

:-THEY WORKED FOR AAM

AADMI

NAREGA SHG

PMGSRY

MID

DAY MEAL

SUCCESS STORIES OF COMPANIES

HLL
Colgate LG

Asian
Dabur

Paints

Videocon

Cadburys
Hero

Hona

50% 50% 50% 60% 40% 40% 25% 40%

Low per capita income Low disposable income

PROBLEMS
IN RURAL MARKETING

Inadequate fixed income (daily wages)

Infrastructure problems Roads, power

Low awareness Communication- difficult & expensive

Too many languages Geographic Spread

Digging for Diamond

FACTS ABOUT RURAL MARKET

The average Monthly per capita Consumer Expenditure (MPCE) for rural areas is Rs 495 and that for urban areas is Rs 914. 93% people in Rural Area live in their own houses as comparative to 61% of Urban. Food Expenditure in Rural Area is 56% 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

Infrastructure improving rapidly

Rural literacy level improved from 36% to 59%

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

Per capita household expenditure (is Rs.)

LEVEL NO. STATES Punjab Kerala Haryana High (Above Rs 382/-) EXPENDITURE 614 604 546

Rajasthan
Gujarat Andhra Pradesh Maharastra West Bengal Orissa

452
416 386 384 382 381 381

Average (Rs. 382/-)

Tamil Naidu

Uttar Pradesh
Karnataka Assam Low 3 Madhya Pradesh

373
365 338 326

(Below Rs. 382/-)

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 Indias hinterland and serve over 17 million people. Easy finance availability

PRODUCT CUSTOMIZATION

Not only reducing the bottle to the sachet Innovative Product like
Godrejs Chottu Cool TATAs Swatch Water Purifier Maxs Max Vijay Castrols Operation Attack

OTHER STRATEGIES
Data Management:

Data mining & Data Warehousing

Two to Tango:

Airtel & Nokia

Channel Adaption:

Success depends a lot on how you approach your target audience

Pricing:

HPCL sold value not cheaper Brands

Engaging Rural Sales Force:

Hero Honda