Rural Marketing In India Beyond Tactics

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  • + AKSHAYkumath AKSHAYkumath 1 month ago
    plz send this ppt to me akshay
  • + guest6566ad0 guest6566ad0 6 months ago
    can u send this ppt to me rajkambhoj@gmail.com
  • + guest8590be0 guest8590be0 7 months ago
    can you send me this ppt on atishkasture@yahoo.com
  • + Lolita1985 Lolita1985 7 months ago
    Sir,
    I would like to agree with your point over here, though there is a huge market in the form of rural areas, the companies are fighting for the 1% share in the urban areas, when they can enter into rural markets and be the no 1 , by gaining the first mover advantage.
    But I also feel that all this is goign to change, i had recently gone for a research program to MP for ITC , and visitied the echoupals out there , the farmers are really wealthy and are keen to save their money., there are lot of opportunities out there....
  • + rajeshaithal Rajesh Aithal 9 months ago
    Dear Rakesh,

    That is the sad story about rural marketing in India, inspite all these years we have not been able to penetrate much into rural markets, and the heterogenity within rural India is too high for us to prescribe any uniform strategy across these markets. But when you look at the various coporate intiatives, many of them are looking at rural markets not just because the growth in urban markets is down , but for procurment (echoupal) , or larger goals (HP Rasoi Ghar). The journey has just started and we have a lot of ground to cover...

    Regards

    Rajesh Aithal
  • + guest0e46a4 guest0e46a4 9 months ago
    SIR, don’t u think even after all of this our rural india is still lagging behind. Now when ever we think abt RURAL india d first think comes in our mind is e.choupal(ITC), shakti( HUL). Rasoi ghar(HP), they all r spending their business because they r not getting more urban consumer. its all about business. If u see the villages of UP & Bihar... still people r exchanging goods from shops, because they do not have money. in MP & Jharkhand tribles lives in jungles.... with no clothes in their body.... hw a marketer can apporach them. It is a great indian mystrey that still 4.3 crore family earns less than 71000/- rs per year. Condition is worst than worst, if you see them closely.


    Rakesh Bhardwaj
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Rural Marketing In India Beyond Tactics - Presentation Transcript

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

+ Rajesh AithalRajesh Aithal, 9 months ago

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