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 India’s population is more than 1000 million, around 350
million, are living below the poverty.
 Only 20% access loan f...
 Focus on, providing the capital for poor women to
use their innate "survival skills" to pull
themselves out of poverty.
...
 Strength
• Helped in reducing the poverty.
• Huge networking available.
 Weakness
• Not properly regulated.
• High numb...
 Rural India is potentially the largest segment of
the Indian market.
 Executives have long recognized that to build
rea...
 According to MART
› Rural India buys 46% of all soft drinks sold, 49%
of motorcycles, 59% of cigarettes and 11% of rural...
 Rural marketing involves persuading people to try and adopt
products they may not have used before
› Colgate has to buil...
 The objectives of Project Shakti
› To create income-generating capabilities for under privileged
rural women.
 In 2001,...
 The Shakti model was piloted in 50 villages of the Nalgonda
district in Andhra Pradesh.
› Now it has created 26,000 wome...
 Increase in income
 Education to children
 Social Recognition to rural women
 Knowledge about health and Hygiene
 Kn...
 ITC's enhanced distribution network came from the
recognition that the existing agri-produce distribution
channels
› The...
 The E Choupal infrastructure consists of:
› A collaborative network of companies orchestrated by ITC
with a pan-India pr...
 Better content of information
 Transport Cost
 Knowledge to access technology
 Weighing Accuracy
 Transaction Durati...
 Indian rural market is huge just to strengthen the
distribution
 Reliance Infocomm, a mobile services provider. Its
net...
Rural marketing and micro-finance
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Rural marketing and micro-finance

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Rural marketing and micro-finance

  1. 1.  India’s population is more than 1000 million, around 350 million, are living below the poverty.  Only 20% access loan from the formal sources and 80% from the informal sources.  Out of that 20% only 10% have access to Micro finance.  Annual credit demand by the poor is estimated to be about Rs 60,000 crores. And only 12,000 crores are disbursed. (April 11)  Customers of Micro Finance are “Small and marginal farmers", " rural artisans" and "economically weaker sections”
  2. 2.  Focus on, providing the capital for poor women to use their innate "survival skills" to pull themselves out of poverty.  Lend mostly to women in small groups (credit circles), say of five or seven.  Draw up a weekly or bi-weekly repayment schedule.  In case any member defaults the entire circle is denied access to credit
  3. 3.  Strength • Helped in reducing the poverty. • Huge networking available.  Weakness • Not properly regulated. • High number of people access to informal sources of finance. • Concentrating on few people only and mainly in urban areas.  Opportunity • Huge demand and supply gap. • Employment Opportunity. • Huge Untapped Market. • Opportunity for Pvt. Banks, NBFCs, Foreign Banks to enter this business segment.  Threat • High Competition. • Neophyte Industry. • Over involvement of Govt.
  4. 4.  Rural India is potentially the largest segment of the Indian market.  Executives have long recognized that to build real sales volumes they will have to reach outside the big cities.  67% of the total sales is contributed by Rural Markets.
  5. 5.  According to MART › Rural India buys 46% of all soft drinks sold, 49% of motorcycles, 59% of cigarettes and 11% of rural women use lipstick.  According to NCAER › Rural households form 71.7% of the total households in the country. › Spending in this segment is growing rapidly and consumption patterns are closing in on those of urban India.
  6. 6.  Rural marketing involves persuading people to try and adopt products they may not have used before › Colgate has to build toothpaste by convincing › Coca-Cola is growing at 37% in rural markets, compared with 24% in urban areas.  In rural India low penetration rates can be attributed to three major factors › Low income levels › inadequate infrastructure facilities › different lifestyles.
  7. 7.  The objectives of Project Shakti › To create income-generating capabilities for under privileged rural women.  In 2001, with rural self-help groups (SHGs) started to educate rural women, while also making them part of the company's marketing network  This micro-enterprise offers low risks and high returns  Direct-to-home distributors  A typical Shakti distributor sells products worth Rs 10,000- 15,000 a month & earn Rs 700-1,000
  8. 8.  The Shakti model was piloted in 50 villages of the Nalgonda district in Andhra Pradesh. › Now it has created 26,000 women distributors covering 80,000 villages. › By 2010, the goal is to recruit 100,000 Shakti distributors covering 500,000 of India's more than 600,000 villages. › Shakti project includes Shakti Vani (or voice), a social awareness program, and iShakti, a community portal
  9. 9.  Increase in income  Education to children  Social Recognition to rural women  Knowledge about health and Hygiene  Knowledge of urban areas  Enhancement of purchasing power  ICICI partnership gave micro credit
  10. 10.  ITC's enhanced distribution network came from the recognition that the existing agri-produce distribution channels › The company exports various agricultural products -- soybean, rice and wheat › In 2000, ITC embarked on an initiative to deploy technology to reengineer the procurement of soybeans from rural India  E Choupal’s connectivity - both physical and informational -- between the farmer and the market that it facilitated has allowed ITC to use it for distribution of goods and services from the market to the farmer
  11. 11.  The E Choupal infrastructure consists of: › A collaborative network of companies orchestrated by ITC with a pan-India presence.  In 2004, ITC introduced the Choupal Sagar › A rural retail outlet at the hub. › First was set up at Sehore in Madhya Pradesh. › This is 7,000 sq. ft. mall sells consumer goods as well as agri-products
  12. 12.  Better content of information  Transport Cost  Knowledge to access technology  Weighing Accuracy  Transaction Durations
  13. 13.  Indian rural market is huge just to strengthen the distribution  Reliance Infocomm, a mobile services provider. Its network now encompasses 240,000 towns and villages, accounting for 42% of the rural population  Godrej Aadhaar -- plans to set up 1,000 stores across India in the next five years.

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