Indian rural market (potentital or paradox)
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Indian rural market (potentital or paradox)

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  • 1. It happens only in RuralIndia
  • 2. “ A farmer went to near by small town to book a rent cab to attend an auspicious occasion near by village ,finding no cab available for rent he instantly purchased Brand new Mahindra Bolero”
  • 3. What is Rural ……..?
    Is it a place where Cattles means more than communication ? ? ? ?
  • 4. Cellular Storm
    With 26 mobile service provider in India with continuous growing pool of consumer in Rural India with major chunk of business from rural population and still growing.
    Satellite TV services
    Almost 10 satellite TV Provider ventured in rural India catering to their Needs of profiled consumer and still growing.
  • 5. Common service centers ( CSC )
    One CSC equipped with Internet Telephony to service a cluster of 6 villages – 6,00,000 villages networked till date with more than 9000 CSC.
    Radio Channels
    Total of 171 AIR FM Transmitters and 248 Private FM Radio Stations are operational in the country majorly are operated in rural hinterland providing effective communication to the target Audiences.
    Community radio channels
    Total 68 community channels running in India which are operated in rural India .
  • 6. What is Rural ……..?
    Is it a group of consumer having low economic status and low disposable income
  • 7. With 742 million people, rural India is the largest potential market in the world estimated 1,25,000 crores
    FMCG – 53%
    Rs.65,000 crores
    Consumer Durables
    Rs.5,000 crores
    Agri-inputs Rs.45,000 crores
    2/4 wheelers Rs.8,000 crores
    The increase in procurement (minimum support price) MSP has contributed to a rise in rural demand. Government schemes like NREGS [National Rural Employment Guarantee Scheme, which guarantees 100 days of employment to one member of every rural household] reduced rural underemployment and raised wages. Also, farmers benefited from loan waivers [introduced in the last Union Budget]. The increase in rural purchasing power is reflected in rural growth across a number of categories.
  • 8. If a farmer in rural Part of Satara earns 1 rs, all of it is his to dispose off as he pleases. The same income in the hands of an urban person, who is possibly a tech worker, is actually not 100 rs of disposable income. It is most likely 67 paise; the rest goes as tax. The farm economy, with zero-tax on farm income, creates far more disposable income. Buying power in the hands of the rural rich is higher than the buying power of the urban rich
    The durables and automobile sectors contribute US$2.5 billion each, and agri-inputs (including tractors) about US$1 billion. Some 42 million rural households [use] banking services against 27 million urban households. There are 41 million Kisan credit cardholders [credit cards issued to farmers for purchase of agricultural goods] against some 22 million card users in urban markets
    Total income in rural India (about 43% of total national income) is expected to increase from around US$220 billion in 2004-2005 to US$425 billion by 2010-2011, a CAGR of 12%
  • 9. Average Monthly Per Capita Consumer Expenditure (MPCE) in 2007-08 was Rs.772 in rural India and Rs.1472 in urban India at 2007-08 prices. About 65% of the rural population had MPCE lower than the national rural average. For urban India the corresponding proportion was 66%.
    The percentage of BPL ( Below Poverty Line )Have come down to 26% from 42%
    In 2007-08, around one-half of the Indian rural population belonged to households with MPCE less than Rs.649. In 2006-07corresponding level of MPCE for the rural population had been estimated as Rs.580.
  • 10. 2005
    Forecasted 2015
  • 11. What is Rural ……..?
    Is it a hinterland where govt. still underestimate destitute condition of people ???
  • 12.
  • 13.
  • 14. Rural Employment Scheme
  • 15. Other programs
  • 16. What is Rural ……..?
    Is it a Market where Brands
    and corporate still suffocating???
  • 17. Launched New Refrigrtor for Rural and Semi urban market priced at 10,000
    Range of TV’s with Devnagri script on display Priced at 12,000
    Focusing on rural town with population less than 5000 with special economy model of color TV priced at 8000
    Road Show in semi urban & Rural with mid priced consumer durables to provide Touch & Feel experience
  • 18. Rural initiative targeted villages population less than 2000, providing income generating opportunity through shaktivani
    OPERATION Jagruti, a village consumer contact campaign was launched with the objective of massive rural penetration targeted at the non-users and infrequent users of dentifrices.
    Operation JAGRUTI
    Anti Loose Campaign and Temper proof Packaging in Smaller Variants
    Low cost snacks & Beverages
  • 19. Launched Coca Cola in Rs 5 with tag line “ThandMatlab Coca Cola”
    Chota Coke
    US-based direct seller Amway Corporation, is looking to reverse its fortune with the launch of a range of low-priced fast moving consumer goods (FMCG) products aimed at rural tier II & III cities.
    Great Value
    CavinKare launched an aggressivecampaign to educate people on how to use shampoo through live ‘touch and feel’ in Rural Folks
    A rural shopping mall where farmers can sell their commodities and everything including cosmetics, garments, electronics, appliances and even tractors. It serves as an agri-sourcing centers, shopping centers, and facilitation centersa
    E- Choupal
  • 20. After securing its foothold in urban and semi-urban markets, it has launched a pan-India campaign — MeraSapnaMeriMaruti — to tap the vast potential of the rural market.
    The promotional scheme ‘GharGharkiPehchaan’ is aimed at taking highly accomplished product like Santro into the depth of rural India.
    runs a panchayat scheme wherein it gives Rs 2,000 as incentive on every buy of a Spark
    Panchayat scheme
    HarGaonHarAngan seeks to build an ongoing relationship with millions of households in rural India through a network of 500 rural sales executives
  • 21. Mahindra Samriddhi, an initiative of Mahindra Farm Equipment, eyes having 600 Mahindra Samriddhi centres and five million farmers under its ambit by 2020.
    TATA’s Rural Transport Vehicle for Rural and Semi Urban Landscape
    Titan Industries’ GoldPlus is designed for the jewellery preferences of the semi-urban and rural Indian customer.
    Gold Plus
  • 22. A Range of Colour solution intended for the Rural Mass & Market
    Cadbury has rolled out campaign “ Miss Palanpur “ eyeing to captured Rural Mass Market
    Miss Palampur campaign
    Met Suvidha (Rural) is a participating flexible Endowment Plan that combines savings and security to Rural Masses
    Met Suvidha
    The Kamdhenu campaign, a unique high-impact marketing and sales campaign through cattle loans to farmers
    Kamdhenu campaign
  • 23. Advance sales training for retail ascendance in rural areas
    initiative to build a sustainable, profitable business that improves access to healthcare among the underserved millions in rural India by creating awareness, enhancing local availability, and designing appealing and affordable health solutions
    Campaign run rural part of north india , in which rural masses and key opinion leader are educated and aware about epilepsy
    Hume JitnaHain
    Elder has launched its new division to reach deep pocket of the rural hinterland with separate team of sales force
  • 24. Proliferation of large format rural retail stores
    • TATA/Rallis KisanKendras
    • 25. Escorts rural stores
    • 26. DSCL Haryali stores
    • 27. M & M ShubhLabh stores
    • 28. Warnabazaar, Maharashtra
    • 29. ITC ChoupalSagar
  • The future lies with those companies who see the “poor” as their customers.
    CK Prahalad to Indian CEO's, Jan 2000.
    To get rich, sell to the “poor”.
    Pradeep Kashyap