this is my research paper powerpoint presetation

1. Challenges and
opportunities of rural
market
Presented by
Dr. Apar Singh
Mr. Ranu Kumar
( School of Management Studies, PUP Pta)

2. A. Introduction
• India live in villages is a quoted facts.
• A huge proportion of India’s population live
in 63, 30,000 villages.
• According to census 2011, nearly 70 per
cent of the country’s population lives in
rural areas. .

3. Rural Market

4. Definition of Rural area.
• According to the Reserve Bank of India, locations
with population up to 10,000 will be considered as
rural area and 10,000 to 100,000 as semi-urban.
• According to National Bank for Agriculture and
Rural Development (NABARD), all locations
irrespective of villages or town, up to a population
of 10,000 will be considered as rural.
• According to the Planning Commission, towns with
population up to 15,000 are considered as rural.

5. Impressive Facts About the Rural
Sector
• There are 42,000 rural supermarkets in India which exceeds
the total number of retail chain stores, i.e. 35,000 in the US.
(Kashyap, 2010)
• The FMCG sector in India is the fourth largest in the
economy, with a market size of over Rs 1,10,00/- crore.
• India’s per capita GDP in rural regions has grown at a
Compound Annual Growth Rate (CAGR) of 6.2 per cent
since 2000. The Fast Moving Consumer Goods (FMCG)
sector in rural and semi-urban India is expected to cross US$
20 billion mark by 2018 and reach US$ 100 billion by 2025.

6. • In the consumables market, the rural share is larger than the
urban, so there are immense opportunities for those who don’t
have difficulties in logistics, supply and storage while catering
to rural customers.
• The main challenge and dilemma in the rural market is – large
number of intermediaries leading to higher costs, dearth of
suitable dealers, low density of shops, inadequate stocking of
products, credit-driven market and low investment capacity of
channel members and poor display of products on rural shop
shelves.

7. REVIEW OF LITRATURE
• Kumar, S et al (20014) – Investigate the superior
performance of local retail shop compared to out shopping
in periodic markets is contrary to observation in literature
developed in the context of urban out shopping. – Retail
chains need to develop a separate program for location of
outlets that serve rural areas as access influences retail
performance. In rural areas marketers can use traditional
periodic markets in addition to conventional retail store
given the limited inter-format retail competition.

8. • Patel, SK (2013) This research describes the challenges and
strategies of rural marketing in India. there is huge potential
and substantial growth opportunities in the rural markets, yet
there are some challenges too, which caused hurdles in tapping
rural markets. This study is a step forward in exploring various
strategies to be adopted in the rural market along with the
current scenario of rural marketing, highlighting key challenges
related to rural marketing.

9. 3. Objectives of the Study
• To find out the problems associated with rural
market.
• To highlight the Challenges and Opportunities of
Rural Marketing in India

10. 4. DATE COLLECTION
• SECONDARY DATA
• Data is collected from various Published &
unpublished Journals, Articles available in various
websites, popular Journals, Text Books etc.

11. 5. Problems & challenges of rural Market
• Indian Rural Market has always been complex to forecast
and consist of special uniqueness. However many companies
were successful in entering the rural markets. They proved
with proper understanding of the market an innovative
marketing idea, it is possible to bag the rural markets. The
peculiarities of rural markets and rural consumers pose
challenges to marketers in reaching them effectively. There
are a large number of small villages which are not easily
accessible because of all weather roads. The main challenges
of rural marketing are discussed below ( show in figure 1)

13. 4 A Approach
• Source : Rural Marketing in India written by Sumesh
Raizada And Umesh Agarwal

14. 2. Lack of per capital income
• This is the most crucial challenge which is faced by most
rural people who has small lands or landless. Rural
employment depend on agriculture.
• Although 30% of GDP (Gross Domestic Product) generated
from rural areas. It is shared by 70% of the population so
there are low per capital income(TP Gopalswami 2009).

15. 3. Traditional Life:
• Life in rural areas is still governed by customs and traditions
and people do not easily adapt new practices. For example,
even rich and educated class of farmers does not wear jeans
or branded shoes.

16. 4. Low Literacy rate
• The literacy rate is low in rural areas as compared to urban
areas. Marketers face communication problem. due to the
lack of literacy rate rural consumers can’t different between
counterfeits and original products and Print medium is not
much effective and it is irrelevant since its reach is poor. So,
low level of literacy becomes challenge for marketers in
rural areas. The literacy level is as low (36%) when
compared to all-India average of 52%.(Malick et al 2014)

17. 5. Seasonal Demand:
• Income of rural people come from agriculture so here
demand for goods in rural markets depends upon
agricultural situation.
• Agriculture to a large extent depends upon monsoon and,
therefore, the demand or buying capacity is not stable or
regular.

18. 6. Media Mix
• Media have lots of problem in rural areas.
• Television has made a great impact and large audience has
been exposed to this medium.
• due to non-availability of power as well as television sets,
majority of rural population cannot get the benefits of
various media.

19. 7. Language Barrier
• India is a country of many languages language become a
barrier in effective communication.
• The number of languages vary from state to state, region to
region, and probably from district to district(TP Gopalswami,
2009)

20. 8.Cultural Factors:
• Culture play important role in business.
• Culture is a system of shared values, beliefs and
perceptions that influence the behavior of consumers.
• Rural consumers purchase product according to cultural
their aspect.

21. 9. Distribution and Warehousing
• The problems of physical distribution and channel
management adversely affect the service as well as
the cost aspect.
• , there are no facilities for public as well as private
warehousing. Marketers face problem of storage of
their goods

22. Opportunities of rural market
• India's rural population comprises of 12% of the world's
population presenting a huge, untapped market .
• Infrastructure is improving rapidly.
• Increase communication resources.
• Increase in rural credit .
• Rural Literacy level improved (After the 2011 census,
literacy rate India 2011 was found to be 74.04%.) .
• Rural Development programs.
• Percentage of BPL families declined (29.5 % of India's
population was poor in planning commission report 2011-12).

23. Conclusion
• There are many problem in rural market but
opportunities more than problems. So marketers or
business players should tripe rural market.

24. Thank you