In INDIA mostly target market belongs from rural.(70%)
L.G. - All places other than the 7 metros Nabard .- All locations with a population up to 10000 considered “rural”
According to late C.K PRAHALAD(GURU) FUTURE BELONGS TO THOSE COMPANIES WHO SEE RURAL AND POOR AS THEIR CUSTOMERS.
Size of the market Largely Untapped Too crowded Urban Market Reasons for Going Rural Income on the rise/disposable income Income from other than agriculture Income flow from urban /abroad Better exposure - media
Low per capita income Low disposable income Inadequate fixed income (daily wages) PROBLEMS IN RURAL MARKETING Infrastructure problems Roads, power Low awareness Communication- difficult & expensive Too many languages Geographic Spread Digging for Diamond
FACTS ABOUT RURAL MARKET The average Monthly per capita Consumer Expenditure (MPCE) for rural areas is Rs 495 and that for urban areas is Rs 914. 93% people in Rural Area live in their own houses as comparative to 61% of Urban. Food Expenditure in Rural Area is 56% as in Urban it is 44%. 9 in 10 Rural households use branded washing powder or cakes 2 in 5 uses more than 1 brand of soap
OPPORTUNITIES Infrastructure improving rapidly Rural literacy level improved from 36% to 59% In fifty years only 40% villages have been connected by road
So there is need to invest in these areas such as
Providing refrigerated trucks for transportation
Sorting centers and education to the marketers.
It is not that overnight rural India has become prosperous and consumerism is booming. A decade ago India has only 400 MF institutions covering nearly 2 lac customers, today more than a 1000 MF institutions crisscross India’s hinterland and serve over 17 million people.
OTHER STRATEGIES Data Management: Data mining & Data Warehousing Two to Tango: Airtel & Nokia Channel Adaption: Success depends a lot on how you approach your target audience Pricing: HPCL sold value not cheaper Brands Engaging Rural Sales Force: Hero Honda