Facts About Rural Market
• 70% of Indian Population lives in Rural India.
• Mostly depend on Agriculture.
• Largely Illiterate.
• Earn as low as Rs.80 Per day.
• Live with minimum infrastructures.
• Language changes per few kms.
• Villages are sparsely populated and sparsely located.
Why We Need To Target Rural Market
647 Million population largely uncovered.
72% population contributes to half of India’s GDP’s.
Approximate size of Rural Market 123000 Crores.
Rural India has seen growth in income due to rise in agriculture
• Less exposure to various brands so less competition.
• Between 2009 and 2012, spending in rural India reached US$69
billion, significantly higher than the US$55 billion spent by urban
• Government Initiatives like Bharat nirman, NREGA and Loan waivers
have made Rural Indian approachable and very marketable.
Bharat Nirman is an business plan for creating and augmenting basic rural infrastructure.
National Rural Employment Guarantee Act (MGNREGA)that aims to guarantee the 'right to work'
and ensure livelihood.
Low literacy rate.
Lack of Infrastructure facilities like power, Roads etc.
Fake products in the market.
No common language across area.
Sparsely located population.
Low Earning per household.
Low penetration of traditional media.
Traditional outlook of Rural consumers which makes th
Government spending in Rural India is on increase
•41 Million Kisan credit cards issued providing a cumulative credit of 97
Billion to Rural India.
•Bharat Nirman and Pradhanmantri Grameen Sadak Yojna has resulted in
Increased Rural Connectivity.
•90% Villages are electrified.
•Schemes like Rural Employment Gurantee act (NREGA) & loan waiver
have pumped Liquidity.
Rural Markets are ripe and fresh. A new brand can enter easily as compet
Rural India’s resistance to change gives established brand a leverage.
Creating products for Rural India is tricky.
Only corporate with deep pockets can enter as huge
infrastructure is required.
Tough rural terrain requires extra handling.
To reach sparsely located population a very scattered
distribution network is required.
Low availability of infrastructure facilities can cause loss of
Initial entrants in Rural India are exposed to more risks.
Rural population is mostly illiterate, Communicating message
to them is a real challenge.
Maruti plans to drive into one
lakh villages by March
• "We have been giving
emphasis on rural markets.
Last year, we had covered
44,000 villages and till
November this year, we
have presence in 60,000
villages and by March next
year, we will have presence
in one lakh out of a total of
6.51 lakh villages in India"
R. C. Bhargava
Maruti Suzuki India
Tap rural market as rural market
is still growing at 10-14%
whereas the urban markets are
either marginally de-growing
or are flat.
• Is aggressively targeting
rural areas and plans to
launch Smartphones and
its flagship flat-panel
television sets in these
markets for the festive
• Expects consumers in rural
India will upgrade their
• Rural markets are growing
7-8% more than urban
markets for LG India and
account for 15-18% of
Bharti Airtel has huge plan for
• Has started an interactive,
recorded voice service to
• A lot of customers in these
markets will experience
Internet for the first time
over a mobile device, and
services like m-commerce
could be a game-changer.
• Top three telecom
companies said nearly 70%
of the firm's current capital
investment is going into rural
Tata Motors launched its
rural initiative Project
“NEEV” in 2010, focusing on
rural areas with a population
of less than 50,000.
Sales through NEEV account
for 8 per cent of the
company’s national sales
volume of small CVs.
• Helped sell 1,500 more small
commercial vehicles per
month in six states, and
crossed 2,000 units in Nov
• Required lower investment
and less lead time to activate
the network, and deeper
reach than the traditional
Tap rural market by launching
more models at affordable
• Announced that India will be its
biggest market by 2016.
• Plans to strengthen presence in
Tier- III cities.
• Yamaha Crux, well accepted
• Installed annual capacity of 6
Lakh units at its 2 manufacturing
units at Surajpur in UP and
Faridabad in Haryana.
• Plans to further strengthen
production to 1 million units by
HDFC Bank aims to grow share
of rural business to 50% in five
The bank is targeting to
generate a business of about
Rs 800 crore from this initiative
in about three to five years
Committed to making one
crore women economically
Only 15 % of their income comes
from semi urban and rural areas
even though 56% distribution
outlets are there.
Provides occupational training,
financial literacy, credit
counselling, livelihood finance and
market linkages to women under
the Bank's Sustainable Livelihood
Initiative (SLI) programme .
the bank is providing loans in the
range of Rs 12,000-15,000 per
year with an interest rate of 20-25
per cent to the women under the
The SLI outreach of the bank is
about 7,000 villages across 24
states in the country.
Hyundai to add dealers, more focus on
• Increase the number of outlets
in rural areas from 270 to 350
and dealerships from 373 to
385 across India by December
• The number of service centres
would be increased from 950 to
1000 in the next four months
after the launch of Grand i10.
• The company’s rural sales had
increased from 15% two years
ago to 19% in the first 8 months
• Depreciation of the Indian
currency presented an
opportunity to increase
Rural region has not seen
slowdown because of good
monsoons and this being
election year the farmers have
the minimum support prices.
In fact there has been demand
for their products like irons,
mixers, toasters, fans etc, from
Lighting segment has expected
growth of 18-20 % for the year
and for consumer durable in
spite of the slowdown, expected
growth 20-22 percent growth.
Against Rs 3,400 crore growth
last year, expected growth for
this year is more than Rs 4,200
Fans business have improved but
the project business which saw a
major hit in the last one and a
half years, is now coming back in
Its waiting to be explored