Rural Marketing Snapshot

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2. RURAL MARKETS
CURRENT LANDSCAPE – RURAL INDIA
OPPORTUNITIES FOR MARKETERS
CONSTRAINTS
POSSIBLE SOLUTIONS
MICRO FINANCE - INDIA
END NOTE
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3.  Village defined – population less than 5000
 6, 42,000 villages – spreaded over 3.5 million square km.
 Contribution to GDP – less than 20%
 Annual Per Capita Income - $ 550 p. a
 Fact – 70% population live in Rural India
 NSS (National Sample Survey) – 35% households engaged in non –
agricultural activities.
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4.  Kirana to Malls
 Urban to Rural areas
 MNCs keen to enter Indian Rural Markets
 Indian Companies – Urban to Rural
 Emerging Microfinance Concept
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5. HINDUSTAN
ITC E-CHOUPAL HARIYALI KISAN TATA – TATA
LEVER –
SAAGAR BAZAAR KISAN SANSAR
PROJECT SHAKTI
M&M– TRIVENI
MAHINDRA GODREJ – ENGINEERING –
SHUBHLABH & AADHAR & TRIVENI
MAHINDRA MANTHAN KHUSHALI
KRISHI VIHAR BAZAAR
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6. NSAP
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7. Retail
Contribution towards Rural India
Wholesale trade
Sale, maintainance and repair of motor vehicles
Construction
1% 2% 4% Electricity , Gas & Water supply
2% 4%
2%
Manufacturing
5% 39%
2%
Mining & Quarrying
8%
Other Activities
Community, social & personal services
0%
Health & social work
0% 26%
Education
2% Public administration, defence & social security
1%
0% 1%
Real estate, renting & business services
Financial Intermediation
Source: Economic Census All-India Report (2005), Govt. of India, Ministry of
Statistics and Programme Implementation. Post & Telecommunication
Transport, Storage
Hotels & Restaurants
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8.  53% FMCG sales – Rural India
 50% LIC policies – Rural Customers
 Kisan Credit Cards – 40 million holders as equal to urban areas
 Hero Honda – 50% sales Rural Market 2008 – 2009
 120 million bank accounts – 70 million in Rural Areas
 48% Rural Income – Agricultural sector
 92% villages covered – Telecom Sector
 Private Sectors – initiate to educate 70% people
 Create Rural Entrepreneurs
 Emerging Microfinance Concept
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9.  Huge Imbalance between production & demand
 Increasing logistics & transportation costs
 Lack of production planning
 Lack of market research
 Unorganized & immature market
 Illiterate & uneducated people
 Underdeveloped & Poor people
 Lack of infrastructure
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10.  Bring together Rural Entrepreneurs – standardize products, marketing under
common brand, revenue sharing equal proportion
 Awareness programs – Rural Entrepreneurs
 Careful planning required
 Public – Private Partnership – to explore rural areas
 Start – production to sales efforts
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12. Urban Areas
have become a
magnet of poor
HUL – JAIPUR
SHAKTI FOOT
ITC ARVIND
ICICI E-CHOUPAL EYE
SELF – HELP HOSPITAL
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13. Focus on direct selling
Shop –in-shop stores double to 1200 by April
Pack Model – smaller packing – multiple choices
Product Innovation
Group to re-look – product innovation, rural marketing
No Forex Risk Attached
B2C Model – 50-60% y-o-y higher than denim
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14.  1999 start up – 6 new growth opportunities
 Confectionaries & sweets – candy fastest growing product @ BOP
 Ayush – Consumer Health Care
 Sangam – E-tailing program for daily ordering & delivering.
 Addressing needs of top – end consumers
 Water facility
 Project Shakti – direct – to – consumer initiative
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15.  Women’s Self Help Groups – Entrepreneur Development training
 Educating consumers on health & hygiene
 4 goals of Project Shakti:
i. Plan to increase reach – Rural Market
ii. Attempt to increase awareness
iii. Change attitudes
iv. Catalyze rural affluence & drive growth
 Andhra Pradesh – 70% involved in SHG
 Total – 1 million nationwide
 Investment > Rs. 20,000> 10% margin
 Shakti Vani programme – trained communicators, driven messages on sanitation, good hygiene
practices & women empowerment
 Year end 2008 – 45,000 entrepreneurs covering 1,00,000 villages across 15 states reaching 3
million homes
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16.  States covered – 10
 Villages covered – 40,000
 # of e-Choupal – 6,500
 Farmers e-empowered – 4 million
 Expanding spectrum of commodities – wheat, pulses, soya, maize, spices,
coffee, aqua – products
 Farmers – rise in income level
 Compare price @ Chicago Trading Board too.
 Choupal Saagar – 24 hubs, 3 states, grow by 100 by 2010
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17.  E-commerce classification:
a. B2C – online selling by business unit to an individual consumer
b. B2B – Online selling by business to business
c. C2C – Online selling by consumer to another consumer
 Today:
 Customer is the king – 24*7 service through email, chat & toll free
 Supply chain
 E.g – ITC e-choupal
 Better information
 Convenience
 Targeted & Mass Customization
 Global Reach @ low cost
 Value Added Service with best Customer service
“Shopping Anywhere, Anytime”
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18.  Public – Private partnership help rural grow
 Literacy rate to grow & make people grow
 Awareness highly required
 Micro Finance concepts need to be boosted more
 Need to encourage youth – towards rural market & opportunity
 Schools, Colleges & B-Schools – Importance of Rural Markets
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