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Rural market potential or paradox

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  • 1. It happens only inRural India
  • 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 Cattlesmeans more thancommunication ??? ?
  • 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 loweconomic status and low disposableincome
  • 7. With 742 million people, rural India is the largest FMCG – 53% potential market in the Consumer Rs.65,000 world estimated 1,25,000 Durables crores crores Rs.5,000 crores 2/4 wheelers Agri-inputs Rs.8,000 Rs.45,000 crores croresThe increase in procurement (minimum support price) MSP has contributed to a rise inrural demand. Government schemes like NREGS [National Rural Employment GuaranteeScheme, which guarantees 100 days of employment to one member of every ruralhousehold] reduced rural underemployment and raised wages. Also, farmers benefitedfrom loan waivers [introduced in the last Union Budget]. The increase in rural purchasingpower 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 richThe 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 ruralIndia and Rs.1472 in urban India at 2007-08 prices. About 65% of the rural population hadMPCE lower than the national rural average. For urban India the correspondingproportion was 66%. In 2007-08, around one-half of the Indian rural population belonged to The percentage of BPL ( Below Poverty households with MPCE less than Line )Have come down to 26% from Rs.649. In 2006-07corresponding level 42% of MPCE for the rural population had been estimated as Rs.580.
  • 10. 2005 INDIAN INCOME PYRAMIDForecasted 2015
  • 11. What is Rural ……..?Is it a hinterland where govt. still underestimatedestitute condition of people ???
  • 12. • 1,46,185 kms. of road length is proposed to be constructed . This will benefit 66,802 unconnected eligible habitations in the country. ToBharat Nirman ensure full farm to market connectivity, it is also proposed to upgrade 1,94,132 kms. of the existing Associated Through Routes. A sum of approximately Rs.48,000 crore is proposed to be invested to achievePradhan Mantri • The primary objective of the PMGSY is to provide connectivity to all the eligible unconnected habitations of more than 500 persons in the rural Gram Sadak areas (250 persons in the hilly and desert areas) by good quality all- weather roads Yojana • The Ministry of Rural Development is implementing Indira Awaas Indira Awaas Yojana (IAY) with a view to providing financial assistance to the rural poor living below poverty line for construction of pucca house Yojana • "Rajiv Gandhi National Drinking Water Mission (RGNDWM)- in 1991 with three key objectives: RGNDWM • Providing safe drinking water to all villages, • Assisting local communities to maintain sources of safe drinking water i
  • 13. • launched with the objectives of improving the quality of life Central rural of rural people and providing privacy and dignity to women. The concept of sanitation was expanded to include personal sanitation hygiene, home sanitation, sage water and disposal of garbage, human excreta and wastewater.. programme National • To examine and analyse the factors contributing to the improvement of economic and social well-being of people inInstitute of rural rural areas on a sustainable basis with focus on the rural poor and the other disadvantaged groups through research, action research and consultancy efforts development
  • 14. Rural Employment Scheme • National Rural Employment Guarantee Act (NREGA)- National Rozgar unprecedented scale. The primary objective of the Act is augmenting wage employment. Its auxiliary objective is Guarantee Yojana strengthening natural resource management through works that address causes of chronic poverty like drought. • The Sampoorna Grameen Rozgar Yojana (SGRY) was launched onSampoorna Grameen 25 September, 2001 by merging the on-going schemes of EAS and the JGSY with the objective of providing additional wage rozgar yojana employment and food security, alongside creation of durable community assets in rural areas. •The objective of the programme was to provide additional resources National Food for apart from the resources available under the Sampoorna Grameen Rozgar Yojana to 150 most backward districts of the country so that generation work Program of supplementary wage employment and providing of food-security through creation of need based economic, social and community assets • The objective of the scheme is to bring the assisted poor familiesSwarna Jayanti Gram above the poverty line by organising them into Self Help Groups (SHGs) through the process of social mobilisation, their training and Swarozgar Yojana capacity building and provision of income generating assets through a mix of bank credit and government subsidy
  • 15. Other programs Council for • Formal recognition of the role of voluntary organisations in the Seventh Plan documentled to the formation of the Council for advancement of Advancement of Peoples Action and Rural Technology (CAPART) inpeople’s action and 1986, as a nodal agency for catalysing and coordinating the emerging Rural technology partnership between voluntary organisations and the Government for sustainable development of rural areas. (CPART) • The objective of PURA scheme are provisioned of livlelyhoodProvision of Urban oppertunities and urban amenities in rural area to bridge Rural – Urban divide by Providing PPP framework to gram panchayat Amenity in rural Areas (PURA) • It involves provision of lunch free of cost to school-children on all working days. The key objectives of the programme are: protecting Mid -Day Meal children from classroom hunger, increasing school enrolment and attendance, improved socialisation among children belonging to Scheme all castes, addressing malnutrition, and social empowerment through provision of employment to women
  • 16. What is Rural ……..?Is it a Market where Brandsand corporate still suffocating???
  • 17. Launched New Refrigrtor for Rural and Semi urban market priced at BIJLI 10,000 Range of TV’s with Devnagri script on display Priced at 12,000SAMPOORNAMAHASANGR Focusing on rural town with population less than 5000 with special economy model of color TV priced at 8000 AM SAPNO KA Road Show in semi urban & Rural with mid priced consumer durables to provide Touch & Feel experience GHAR
  • 18. Rural initiative targeted villages population less than 2000, providing SHAKTI income generating opportunity through shakti vani OPERATION Jagruti, a village consumer contact campaign wasOperation launched with the objective of massive rural penetration targeted at the non-users and infrequent users of dentifrices. JAGRUTI Anti Loose Campaign and Temper proof Packaging in Smaller VariantsParachute Low cost snacks & Beverages ASHA
  • 19. Launched Coca Cola in Rs 5 with tag line “Thand Matlab Coca Cola”Chota Coke US-based direct seller Amway Corporation, is looking to reverse itsGreat Value fortune with the launch of a range of low-priced fast moving consumer goods (FMCG) products aimed at rural tier II & III cities. Product CavinKare launched an aggressivecampaign to educate people on how Chick 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 E- Choupal even tractors. It serves as an agri-sourcing centers, shopping centers, and facilitation centersa
  • 20. After securing its foothold in urban and semi-urban markets, it hasMera sapna launched a pan-India campaign — Mera Sapna Meri Maruti — to tapmeri maruti the vast potential of the rural market. The promotional scheme ‘Ghar Ghar ki Pehchaan’ is aimed atGhar Ghar ke taking highly accomplished product like Santro into the depth of rural India. pehchan Panchayat runs a panchayat scheme wherein it gives Rs 2,000 as incentive on every buy of a Spark scheme Har Gaon Har Angan seeks to build an ongoing relationship withHar Gaon Har millions of households in rural India through a network of 500 rural angan sales executives
  • 21. Mahindra Samriddhi, an initiative of Mahindra Farm Equipment, eyes having 600 Mahindra Samriddhi centres and five million farmers Samridhi under its ambit by 2020.TATA ACE TATA’s Rural Transport Vehicle for Rural and Semi Urban Landscape MAGIC Titan Industries’ GoldPlus is designed for the jewellery preferences ofGold Plus the semi-urban and rural Indian customer.
  • 22. A Range of Colour solution intended for the Rural Mass & Market UtsavMiss Palampur Cadbury has rolled out campaign “ Miss Palanpur “ eyeing to captured Rural Mass Market campaign Met Suvidha (Rural) is a participating flexible Endowment Plan thatMet Suvidha combines savings and security to Rural Masses Kamdhenu The Kamdhenu campaign, a unique high-impact marketing and sales campaign through cattle loans to farmers campaign
  • 23. Advance sales training for retail ascendance in rural areas ASTRA initiative to build a sustainable, profitable business that improves access to healthcare among the underserved millions in rural India by Arogya creating awareness, enhancing local availability, and designing parivar appealing and affordable health solutionsHume Jitna Campaign run rural part of north india , in which rural masses and key opinion leader are educated and aware about epilepsy Hain Elder has launched its new division to reach deep pocket of the rural Elvista hinterland with separate team of sales force
  • 24. Proliferation of large format rural retailstores TATA/Rallis Kisan Kendras Escorts rural stores DSCL Haryali stores M & M Shubh Labh stores Warnabazaar, Maharashtra ITC Choupal Sagar
  • 25. The future lies with those companies who see the“poor” as their customers. CK Prahalad to Indian CEOs, Jan 2000. To get rich, sell to the “poor”. Pradeep Kashyap
  • 26. GAURAV RAWAL +919302901996 gaurav.rawal04@gmail.com

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