IIPM AHMEDABAD 09 - 11   1
RURAL MARKETSCURRENT LANDSCAPE – RURAL INDIA  OPPORTUNITIES FOR MARKETERS         CONSTRAINTS      POSSIBLE SOLUTIONS     ...
   Village defined – population less than 5000   6, 42,000 villages – spreaded over 3.5 million square km.   Contributi...
   Kirana to Malls   Urban to Rural areas   MNCs keen to enter Indian Rural Markets   Indian Companies – Urban to Rura...
HINDUSTANITC E-CHOUPAL                                       HARIYALI KISAN               TATA – TATA                     ...
NSAP       IIPM AHMEDABAD 09 - 11   6
Retail         Contribution towards Rural India                                                                           ...
   53% FMCG sales – Rural India   50% LIC policies – Rural Customers   Kisan Credit Cards – 40 million holders as equal...
   Huge Imbalance between production & demand   Increasing logistics & transportation costs   Lack of production planni...
   Bring together Rural Entrepreneurs – standardize products, marketing under    common brand, revenue sharing equal prop...
IIPM AHMEDABAD 09 - 11   11
Urban Areas                                                            have become a                                      ...
Focus on direct sellingShop –in-shop stores double to 1200 by AprilPack Model – smaller packing – multiple choicesProduct ...
   1999 start up – 6 new growth opportunities   Confectionaries & sweets – candy fastest growing product @ BOP   Ayush ...
      Women’s Self Help Groups – Entrepreneur Development training      Educating consumers on health & hygiene      4 ...
   States covered – 10   Villages covered – 40,000   # of e-Choupal – 6,500   Farmers e-empowered – 4 million   Expan...
    E-commerce classification:a.      B2C – online selling by business unit to an individual consumerb.      B2B – Online...
   Public – Private partnership help rural grow   Literacy rate to grow & make people grow   Awareness highly required...
IIPM AHMEDABAD 09 - 11   19
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Rural marketing snapshot

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Rural Marketing Snapshot

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  1. 1. IIPM AHMEDABAD 09 - 11 1
  2. 2. RURAL MARKETSCURRENT LANDSCAPE – RURAL INDIA OPPORTUNITIES FOR MARKETERS CONSTRAINTS POSSIBLE SOLUTIONS MICRO FINANCE - INDIA END NOTE IIPM AHMEDABAD 09 - 11 2
  3. 3.  Village defined – population less than 5000 6, 42,000 villages – spreaded over 3.5 million square km. Contribution to GDP – less than 20% Annual Per Capita Income - $ 550 p. a Fact – 70% population live in Rural India NSS (National Sample Survey) – 35% households engaged in non – agricultural activities. IIPM AHMEDABAD 09 - 11 3
  4. 4.  Kirana to Malls Urban to Rural areas MNCs keen to enter Indian Rural Markets Indian Companies – Urban to Rural Emerging Microfinance Concept IIPM AHMEDABAD 09 - 11 4
  5. 5. HINDUSTANITC E-CHOUPAL HARIYALI KISAN TATA – TATA LEVER – SAAGAR BAZAAR KISAN SANSAR PROJECT SHAKTI M&M– TRIVENI MAHINDRA GODREJ – ENGINEERING – SHUBHLABH & AADHAR & TRIVENI MAHINDRA MANTHAN KHUSHALI KRISHI VIHAR BAZAAR IIPM AHMEDABAD 09 - 11 5
  6. 6. NSAP IIPM AHMEDABAD 09 - 11 6
  7. 7. Retail Contribution towards Rural India Wholesale trade Sale, maintainance and repair of motor vehicles Construction 1% 2% 4% Electricity , Gas & Water supply 2% 4% 2% Manufacturing 5% 39% 2% Mining & Quarrying 8% Other Activities Community, social & personal services 0% Health & social work 0% 26% Education 2% Public administration, defence & social security 1% 0% 1% Real estate, renting & business services Financial IntermediationSource: Economic Census All-India Report (2005), Govt. of India, Ministry ofStatistics and Programme Implementation. Post & Telecommunication Transport, Storage Hotels & Restaurants IIPM AHMEDABAD 09 - 11 7
  8. 8.  53% FMCG sales – Rural India 50% LIC policies – Rural Customers Kisan Credit Cards – 40 million holders as equal to urban areas Hero Honda – 50% sales Rural Market 2008 – 2009 120 million bank accounts – 70 million in Rural Areas 48% Rural Income – Agricultural sector 92% villages covered – Telecom Sector Private Sectors – initiate to educate 70% people Create Rural Entrepreneurs Emerging Microfinance Concept IIPM AHMEDABAD 09 - 11 8
  9. 9.  Huge Imbalance between production & demand Increasing logistics & transportation costs Lack of production planning Lack of market research Unorganized & immature market Illiterate & uneducated people Underdeveloped & Poor people Lack of infrastructure IIPM AHMEDABAD 09 - 11 9
  10. 10.  Bring together Rural Entrepreneurs – standardize products, marketing under common brand, revenue sharing equal proportion Awareness programs – Rural Entrepreneurs Careful planning required Public – Private Partnership – to explore rural areas Start – production to sales efforts IIPM AHMEDABAD 09 - 11 10
  11. 11. IIPM AHMEDABAD 09 - 11 11
  12. 12. Urban Areas have become a magnet of poor HUL – JAIPUR SHAKTI FOOT ITC ARVIND ICICI E-CHOUPAL EYESELF – HELP HOSPITAL IIPM AHMEDABAD 09 - 11 12
  13. 13. Focus on direct sellingShop –in-shop stores double to 1200 by AprilPack Model – smaller packing – multiple choicesProduct InnovationGroup to re-look – product innovation, rural marketingNo Forex Risk AttachedB2C Model – 50-60% y-o-y higher than denim IIPM AHMEDABAD 09 - 11 13
  14. 14.  1999 start up – 6 new growth opportunities Confectionaries & sweets – candy fastest growing product @ BOP Ayush – Consumer Health Care Sangam – E-tailing program for daily ordering & delivering. Addressing needs of top – end consumers Water facility Project Shakti – direct – to – consumer initiative IIPM AHMEDABAD 09-11 14
  15. 15.  Women’s Self Help Groups – Entrepreneur Development training Educating consumers on health & hygiene 4 goals of Project Shakti:i. Plan to increase reach – Rural Marketii. Attempt to increase awarenessiii. Change attitudesiv. Catalyze rural affluence & drive growth Andhra Pradesh – 70% involved in SHG Total – 1 million nationwide Investment > Rs. 20,000> 10% margin Shakti Vani programme – trained communicators, driven messages on sanitation, good hygiene practices & women empowerment Year end 2008 – 45,000 entrepreneurs covering 1,00,000 villages across 15 states reaching 3 million homes IIPM AHMEDABAD 09-11 15
  16. 16.  States covered – 10 Villages covered – 40,000 # of e-Choupal – 6,500 Farmers e-empowered – 4 million Expanding spectrum of commodities – wheat, pulses, soya, maize, spices, coffee, aqua – products Farmers – rise in income level Compare price @ Chicago Trading Board too. Choupal Saagar – 24 hubs, 3 states, grow by 100 by 2010 IIPM AHMEDABAD 09-11 16
  17. 17.  E-commerce classification:a. B2C – online selling by business unit to an individual consumerb. B2B – Online selling by business to businessc. C2C – Online selling by consumer to another consumer Today: Customer is the king – 24*7 service through email, chat & toll free Supply chain E.g – ITC e-choupal Better information Convenience Targeted & Mass Customization Global Reach @ low cost Value Added Service with best Customer service “Shopping Anywhere, Anytime” IIPM AHMEDABAD 09-11 17
  18. 18.  Public – Private partnership help rural grow Literacy rate to grow & make people grow Awareness highly required Micro Finance concepts need to be boosted more Need to encourage youth – towards rural market & opportunity Schools, Colleges & B-Schools – Importance of Rural Markets IIPM AHMEDABAD 09 - 11 18
  19. 19. IIPM AHMEDABAD 09 - 11 19

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