Indian rural market (potentital or paradox)


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Indian rural market (potentital or paradox)

  1. 1. It happens only in RuralIndia<br />
  2. 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”<br />
  3. 3. What is Rural ……..? <br />Is it a place where Cattles means more than communication ? ? ? ?<br />
  4. 4. Cellular Storm <br /> 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.<br />Satellite TV services <br /> Almost 10 satellite TV Provider ventured in rural India catering to their Needs of profiled consumer and still growing.<br />
  5. 5. Common service centers ( CSC )<br /> 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.<br />Radio Channels <br /> 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.<br />Community radio channels <br /> Total 68 community channels running in India which are operated in rural India .<br />
  6. 6. What is Rural ……..? <br />Is it a group of consumer having low economic status and low disposable income <br />
  7. 7. With 742 million people, rural India is the largest potential market in the world estimated 1,25,000 crores<br />FMCG – 53%<br />Rs.65,000 crores<br />Consumer Durables<br />Rs.5,000 crores<br />Agri-inputs Rs.45,000 crores<br />2/4 wheelers Rs.8,000 crores<br />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.<br />
  8. 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<br />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<br />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%<br />
  9. 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%.<br />The percentage of BPL ( Below Poverty Line )Have come down to 26% from 42%<br />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.<br />
  10. 10. 2005<br />INDIAN INCOME PYRAMID<br /> Forecasted 2015<br />
  11. 11. What is Rural ……..? <br />Is it a hinterland where govt. still underestimate destitute condition of people ???<br />
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  13. 13.
  14. 14. Rural Employment Scheme<br />
  15. 15. Other programs<br />
  16. 16. What is Rural ……..? <br />Is it a Market where Brands <br />and corporate still suffocating???<br />
  17. 17. Launched New Refrigrtor for Rural and Semi urban market priced at 10,000<br />BIJLI<br />Range of TV’s with Devnagri script on display Priced at 12,000 <br />SAMPOORNA<br />Focusing on rural town with population less than 5000 with special economy model of color TV priced at 8000<br />MAHASANGRAM<br />Road Show in semi urban & Rural with mid priced consumer durables to provide Touch & Feel experience <br />SAPNO KA GHAR <br />
  18. 18. Rural initiative targeted villages population less than 2000, providing income generating opportunity through shaktivani<br />SHAKTI<br />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.<br />Operation JAGRUTI<br />Anti Loose Campaign and Temper proof Packaging in Smaller Variants <br />Parachute<br />Low cost snacks & Beverages <br />ASHA<br />
  19. 19. Launched Coca Cola in Rs 5 with tag line “ThandMatlab Coca Cola”<br />Chota Coke <br />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.<br />Great Value <br />Product<br />CavinKare launched an aggressivecampaign to educate people on how to use shampoo through live ‘touch and feel’ in Rural Folks<br />Chick<br />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<br />E- Choupal<br />
  20. 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. <br />Merasapnamerimaruti<br />The promotional scheme ‘GharGharkiPehchaan’ is aimed at taking highly accomplished product like Santro into the depth of rural India. <br />GharGharkepehchan<br />runs a panchayat scheme wherein it gives Rs 2,000 as incentive on every buy of a Spark<br />Panchayat scheme<br />HarGaonHarAngan seeks to build an ongoing relationship with millions of households in rural India through a network of 500 rural sales executives<br />HarGaonHarangan<br />
  21. 21. Mahindra Samriddhi, an initiative of Mahindra Farm Equipment, eyes having 600 Mahindra Samriddhi centres and five million farmers under its ambit by 2020.<br />Samridhi<br />TATA’s Rural Transport Vehicle for Rural and Semi Urban Landscape <br />TATA ACE MAGIC<br />Titan Industries’ GoldPlus is designed for the jewellery preferences of the semi-urban and rural Indian customer.<br />Gold Plus<br />
  22. 22. A Range of Colour solution intended for the Rural Mass & Market <br />Utsav<br />Cadbury has rolled out campaign “ Miss Palanpur “ eyeing to captured Rural Mass Market <br />Miss Palampur campaign<br />Met Suvidha (Rural) is a participating flexible Endowment Plan that combines savings and security to Rural Masses <br />Met Suvidha<br />The Kamdhenu campaign, a unique high-impact marketing and sales campaign through cattle loans to farmers<br />Kamdhenu campaign<br />
  23. 23. Advance sales training for retail ascendance in rural areas<br />ASTRA<br />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<br />Arogyaparivar<br />Campaign run rural part of north india , in which rural masses and key opinion leader are educated and aware about epilepsy <br />Hume JitnaHain<br />Elder has launched its new division to reach deep pocket of the rural hinterland with separate team of sales force <br />Elvista<br />
  24. 24. Proliferation of large format rural retail stores<br /><ul><li>TATA/Rallis KisanKendras
  25. 25. Escorts rural stores
  26. 26. DSCL Haryali stores
  27. 27. M & M ShubhLabh stores
  28. 28. Warnabazaar, Maharashtra
  29. 29. ITC ChoupalSagar</li></li></ul><li> The future lies with those companies who see the “poor” as their customers.<br />CK Prahalad to Indian CEO's, Jan 2000.<br />To get rich, sell to the “poor”.<br />Pradeep Kashyap<br />
  30. 30. GAURAV RAWAL <br />+919302901996<br /><br />