Why companies go

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Why companies go

  1. 1. Why Companies Go Rural?Presented By: Anu Mishra
  2. 2. Meaning of Rural:• Rural areas or the country or countryside are areas of land that are not urbanized,• Though when large areas are described, country towns and smaller cities will be included.• They have a low population density, and• Typically much of the land is devoted to agriculture and there may be less air and water pollution than in an urban area.
  3. 3. Facts Profile of Companies Growth:• Maruti Suzuki, Indias leading automobile manufacturer, today sells 5% of its vehicles in the rural markets.• In Telecom Industry 70% of all new subscribers will come from rural areas.• According to World Gold Council figures, 60% of Indias US$15 billion annual consumption of gold and gold jewellery is from rural and semi-urban areas.• TATA Nano Car model launches in rural areas.
  4. 4. What is the reason that corporate are moving to Rural Markets?• Most of the population in India live in Rural only.• The main revenue is generated from rural India only.• Indian rural market has great demand base and offers great opportunities to marketers.• The two third of the population lives in rural India and half of the national income generated here.
  5. 5. What is the reason that corporate are moving to Rural Markets?• The Urban consumer durable markets like colour TVs, Washing Machines, refrigerators are zooming with 7% only but where as rural market is growing with 25% annually.• There is change in Socio-Economic Changes like Life Style, Habits and Tastes.• Literacy levels which was 25% before independence is now more than 60% .
  6. 6. What is the reason that corporate are moving to Rural Markets?• Infrastructure Facilities.• Increase in Income.• Increase in expectation.• Better to go for rural India for a healthier Marketing and ROI.• In rural market non-farm sector accounts for almost 50% of total rural incomes and this is not Dependant on Monsoon.
  7. 7. What is the reason that corporate are moving to Rural Markets?• As the Urban Markets getting saturated and fiercely competitive.• So, all the Corporate like HUL , ITC ,FMCG to durables and automobiles are in rural markets and achieving their target.

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