India is a country of villages , about 50% of
the villages have very poor socio-economic
Need for proper basic infrastructure.
Financial assistance to the poor by providing
productive resources through credit and
Livelihoods rely on businesses this called for
Most of the population of rural areas is poor
and needs financial assistance in the form of credit.
Borrow money to buy fertilizers ,seeds ,other implements.
Family expenses of marriage, death, religious ceremonies.
Money lenders and traders exploit the poor farmers.
Lend money on High Rate of Interest.
Do not maintain proper accounts and Harass the poor
Borrowers find themselves in a Debt Trap.
Sources of Credit
Informal Sources :
Non Govt. sources such as
Formal Sources :
Govt. owned institutions such as
commercial banks, regional rural
National Bank for Agriculture and Rural Development.
Regional Rural Banks.
Micro Finance Institutions.
Self Help Groups.
Introduction of Subsidy.
National Bank for Agriculture
and Rural Development
Established on 12 July 1982 by a special act by
It is an apex body to coordinate Rural Financing
Its main focus was to uplift rural India by
increasing the credit flow.
It regulates the cooperative banks and the RRB’s.
Provide financial services to micro-entrepreneurs and
small businesses, which lack access to banking and
related services due to the high transaction costs.
Give loans to poor rural people at a low interest rate.
Promote Self Reliance.
Provision of Subsidies.
Provide Access to Funds.
Community wide Benefits.
Self Help Groups
Are village-based financial
intermediary usually composed of 10-20
members of the same area.
Members make small regular savings
contributions and lend at a very low
rate of interest.
These are Non Profit organizations and
work for the welfare of the members.
Main objective is to Empower Women.
Building blocks of the rural and village
It involves the process of developing
, pricing, promoting and distributing rural products
and services to satisfy consumer needs and
achieve organizational objectives.
Plays a vital role in the lives of rural people.
Changing life style of people has also influenced
Rural Marketing in many countries.
Rural Marketing In India
The rural population in India accounts for around 627
million, which is exactly 74.3 % of the total population.
Rural market in India is not a separate entity in itself and it
is highly influenced by the sociological and behavioural
factors operating in the country.
Contributes approximately 50% to India's Consumer
Absolute size of rural India is expected to
be double that of urban India.
Features Urban Rural
• Large and Scattered
• Major income from
• Low standard of living.
• Diverse socio-economic
• Lack of Infrastructure
• Sustains livelihood.
Attractiveness of Rural Markets
Growth in consumption.
Growth rate higher than urban.
Rural marketing is not expensive.
Remoteness is no longer a problem.
Urban Markets are overcrowded.
Source of income other than
Low Per Capita income.
Too many languages.
Majority depend upon Agriculture.
Inadequate fixed income.
Lack of proper Technology and
Lack of Transportation and Communication
Amul was formed in 1946 as a dairy co-operative.
It is jointly owned by 2.79 million milk producers in
Every day Amul collects 8.4 million liters of milk
2.79 million farmers.
Amul advertises in
AMUL INFRASTRUCTURE IN RURAL INDIA
Producers Members 3.11 Billion
Village Societies 11,962
Milk Handling Capacity 9.1 million liters per day
Daily average milk production 511 metric tons per day
Sales turnover $ 1068 million
Biggest strength Supply Chain Management
After 16 years if absence from 1977-1993
Coco-cola returned in India to become nations
top soft drink brand.
Atlanta based Coco-cola company is one of the
first global majors to have spotted the
potential in Indian rural markets.
Over the years companies rural distributors
have reached 6000.
To excel in rural market it created local
flavours to suit peoples needs.