Rural Marketing In India Beyond Tactics


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This presentation is from my talk which I had given to MBB Students of IIIT Allahabad. The focus is on the need to recognize the potential or rural markets in India and moving beyond the tactical approach currently adopted to a more sustainable long term strategy.

Published in: Business, Technology
  • Mr. Rajesh,
    i found this presentation very informative and useful. i would be very thankful if you could mail it to me at
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  • Mr. Rajesh..
    The content and the way you had thought is really nice. as u had cover all the dimension of rural marketing. it is really very good presentation.
    Thank You.
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  • This is really wonderful ppt.
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  • Dear Mr. Rajesh Aithal,

    Some time back I requested you to please send me your ppt on Rural marketing in India beyond Tactics. However, I still have not received the same. It could be that you would like to be compensated for the same. No problem, just let me know. Please call me on 98211 11166. Thank you. Regards, Bomi Doctor.
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  • Dear Rajesh ineresting presentations would you please send me this ppt in
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Rural Marketing In India Beyond Tactics

  1. 1. Rural Marketing in India – Beyond Tactics Rajesh Aithal IIM Lucknow IIIT Allahabad Presentation
  2. 2. Structure <ul><li>Why are they important? </li></ul><ul><li>Changes in Rural Markets </li></ul><ul><li>Conceptualizing Rural Markets </li></ul><ul><li>IT & Rural Markets </li></ul><ul><li>More Ideas & Developments </li></ul><ul><li>Cases – ITC echoupal , HP Rasoi Ghar </li></ul><ul><li>Further Readings, books & blogs… </li></ul>
  3. 3. Sudden Interest in Rural Markets <ul><li>GM drives into rural markets to spark sales Mint Jan 20 th </li></ul><ul><li>Mobile phone vendors dial into rural segment ET Jan 18 th </li></ul><ul><li>Hero Honda, Nicholas Piramal to focus on rural markets Domain-B 17 th Jan </li></ul><ul><li>LG to focus on rural markets to fight slowdown ET Jan 14 th </li></ul><ul><li>Cement firms shift focus to villages BS 1 st Jan </li></ul>
  4. 4. Importance
  5. 5. 72% is Rural
  6. 6. <ul><li>72% of the population & contributes nearly half of the country’s GDP ( ETIG, 2002-03) </li></ul><ul><li>Rural is bigger than urban </li></ul><ul><li>6 lakh + villages </li></ul><ul><li>36 lakh shops </li></ul><ul><li>(NCAER, 2002) </li></ul>(NCAER, 2002) 59% Durables 53% FMCG
  7. 7. <ul><li>According to Indian Market Demographics 2004, approximate size of rural market ranges from 300-500 million </li></ul><ul><li>Absolute size is becoming bigger than that of urban market </li></ul><ul><li>Purchase of CTV, VCRs & washing machines increased by 200% </li></ul><ul><li>Since 2002 consumer expenditure in rural India has risen by 9% </li></ul>
  8. 8. Figures <ul><li>FMCG – Rs 6,500 Billion </li></ul><ul><li>Consumer Durables – Rs 500 Billion </li></ul><ul><li>Agri-Inputs – Rs 4,500 Billion </li></ul><ul><li>Automobiles ( 2 & 4 Wheelers) – Rs 800 Billion </li></ul>
  9. 9. 50% 55%
  10. 10. Future
  11. 11. <ul><li>By 2010 rural India will consume 60% of the goods produced in the country </li></ul><ul><li>In 20 yrs rural Indian Market will be larger than the total consumer markets in countries such as South Korea or Canada today, & almost 4 times the size of today’s urban Indian market </li></ul>
  12. 12. Rural Market Has arrived
  13. 13. What is Changing? Infrastructure Disposable Income Aspirations Media Penetration
  14. 14. Climbing Social Indicators <ul><ul><li>Between 1981 to 2001 </li></ul></ul><ul><ul><li>Number of pucca houses doubled from 22% to 41% and kuccha houses halved (41% to 23%) </li></ul></ul><ul><ul><li>Percentage of BPL families declined from 46% to 27% </li></ul></ul><ul><ul><li>Rural Literacy level improved from 36% to 59% </li></ul></ul>
  15. 15. Infrastructure Improving Rapidly <ul><li>In 50 years only 40% villages connected by road, in next 10 years another 30%. </li></ul><ul><li>More than 90 % villages electrified, though only 44% rural homes have electric connections. </li></ul><ul><li>Rural telephone density has gone up by 300% in the last 10 years, every 1000+ pop is connected by STD. </li></ul>
  16. 16. <ul><li>Some impressive facts about the rural sector. </li></ul><ul><ul><li>In 2001-02, LIC sold 55 % of its policies in rural India. </li></ul></ul><ul><ul><li>Of two million BSNL mobile connections, 50% in small towns/villages. </li></ul></ul><ul><ul><li>Of the six lakh villages, 5.22 lakh have a Village Public Telephone (VPT) </li></ul></ul>
  17. 17. <ul><ul><li>41 million Kisan Credit Cards issued (against 22 million credit-plus-debit cards in urban) with cumulative credit of Rs 977 billion resulting in tremendous liquidity. </li></ul></ul><ul><ul><li>Of 20 million Rediffmail signups, 60 % are from small towns. 50% transactions from these towns on Rediff online shopping site </li></ul></ul><ul><ul><li>42 million rural HHs availing banking services in comparison to 27 million urban HHs. </li></ul></ul><ul><ul><li>Investment in formal savings instruments: 6.6 million HHs in rural and and 6.7 million in urban </li></ul></ul>
  18. 18. Urban Linkage
  19. 19. Conceptualize Rural Marketing
  20. 20. Domain of Rural Marketing 1 2 3 From To Rural Urban Rural Urban M Jha (1988)
  21. 21. Successful Cases
  22. 22. HP & Digital Photography ITC eChoupal Grameen Phone HP Rasoi Ghar
  23. 23. Marketing in India Blog :