RURAL INDIA RURAL INDIA:- EDUCATION LOAN :12% CAR LOAN:-5% MOBILE SIM:-FREE RICE:RS 20 RANKED IN HDI:-134/182
IS INDIA REALLY GREAT?
RURAL MARKETING REAL MARKETING
Any market that exists in a area where the population is less than 10000
Marketing focuses to reach its target market.
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
CONGRESS :-THEY WORKED FOR “AAM AADMI”
MID DAY MEAL
SUCCESS STORIES OF COMPANIES
Asian Paints 60%
Hero Hona 40%
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
Per capita household expenditure (is Rs.)
CONTEMPORARY ISSUES Customer is the “Queen” Digitalization Efficiency in the Supply Chain Micro financing Product customization Others
Customer is the “Queen”
Role of Women in decision making
Getting equal opportunities
Working outside home
Govt. Initiatives: e-governance
Efficiency in the Supply Chain
40% of the loss occurs in transportation.
Less number of warehouses are there then needed
Lack of sufficient storage facility
Lack of refrigerated logistic support
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.
Easy finance availability
Not only reducing the bottle to the sachet
Innovative Product like
TATA’s Swatch Water Purifier
Max’s Max Vijay
Castrol’s Operation Attack
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