Paper presentation held at national seminar

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Paper presentation on "Emerging opportunities in rural market of India"
Presented in National Seminar held at ITS Ghaziabad in feb\'2012

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Paper presentation held at national seminar

  1. 1. Paper Presentation on “Emergingopportunities in Rural Market” Presented by, Krishna Kumar & Vikram Kumar Jaiswal
  2. 2. About India India is the worlds 12th- largest consumer market. By 2025, it is projected to be ahead of Germany. The biggest strength of Indian markets lies in the size. GDP growth in India is in between 7-8%.Source: Mckinsey report 2010 Paper presentation on Opportunities in Rural Market
  3. 3. India lives in Villages Current population : 1.21billion Rural population: 69% which means Current rural population:0.83billion No. of villages: 6,40,876 Increase in literacy rate of rural India by 10.2%. Paper presentation on Opportunities in Source: projected census report 2011 Market Rural
  4. 4. Rural India: FMCG products FMCG sector to grow from US$ 17.37 billion in 2011 to US$ 21 billion in 2012. Eastern states such as Bihar, Orissa, Chhattisgarh and Assam are leading rural sales. FMCG players like HUL and ITC have already established their foothold. Paper presentation on Opportunities in Rural Market
  5. 5. e-chaupal byITCProject Shaktiby HUL Paper presentation on Opportunities in Rural Market
  6. 6. Rural India: consumerdurables Anticipated to expand by 40 per cent in 2011-12(according to a study Rise of Consumer Durables in Rural India) Paper presentation on Opportunities in Rural Market
  7. 7. Rural India: Automobiles The two-wheeler market derives about 45-50 % of its sales from the rural market. Hero Cycles may soon tie- up with insurance firms to provide health cover to its rural customers Paper presentation on Opportunities in Rural Market
  8. 8. Rural India: Internet facilities projected to rise 24 million by Dec’2011 from 12.1 million in Dec’2010 (Internet and Mobile Association of India -IAMAI) Sales from ecommerce increase from 5% to 9% in 2011 in rural India Major sales through ebay.com & amazon.com Paper presentation on Opportunities in Rural Market
  9. 9. Literature review Paper presentation on Opportunities in Rural Market
  10. 10. Literature review The rural markets to increase insurance penetration(The Economics Times 13 th Jan 2012) In the FMCG industry - 10% by volume and 12% by value - in the first ten months of 2011.(Indian Market Research Bureau) Paper presentation on Opportunities in Rural Market
  11. 11. Source: NACER(National Council of Applied Economic Research )2011 Paper presentation on Opportunities in Rural Market
  12. 12.  Currently over 40% of market leader Hero Motos sales come from rural markets (Auto Expo 2012) Expenditure on durable goods has increased from 3.1% in1987-88 to 4.8% in 2009-10 (A report by National Sample Survey Office (NSSO) on November 2011) Paper presentation on Opportunities in Rural Market
  13. 13. Objectives Paper presentation on Opportunities in Rural Market
  14. 14. Objectives of the study To know the emerging opportunity in the rural market. To know the different challenges with the rural market. Scope of growth and expansion for different industry in rural market. Paper presentation on Opportunities in Rural Market
  15. 15. Research Methodology Paper presentation on Opportunities in Rural Market
  16. 16. Research Methodology Research Design : Descriptive Research Sample member: Rural Customer of Sunderpur, near greater Noida (U.P.). Sample size: 150 Paper presentation on Opportunities in Rural Market
  17. 17.  Sampling method: Convenience sampling Collection of data:1. Primary Data: Questionnaire and Personal interview2. Secondary Data: Internet, Books, Journals, Newspapers Paper presentation on Opportunities in Rural Market
  18. 18.  Data Analysis1. Mean2. Median Graphical representation1. Bar Chart2. Pie Chart3. Column Chart Software used:1. MS Word2. MS Excel Paper presentation on Opportunities in Rural Market
  19. 19. Data Analysis & Interpretation Paper presentation on Opportunities in Rural Market
  20. 20. Demand of different Consumer Durables in recent timeList of product Within 1 month From 1 month to 3 From 3 month to 6 From 6 month to 1 More than 1 month month year yearT.V 15 23 32 41 20LCD/LED 21 13 11 21 24Refrigerator 12 22 24 27 42Cooler 7 14 14 22 17AC 2 11 12 13 7DVD 1 4 5 5 6Sound system - 1 3 4 11Water purifier 1 1 13 24 24oven - - - 6 3 Paper presentation on Opportunities intotal 59 89 114 163 Rural Market 154
  21. 21. Demand of Automobiles in recent timeList Less than 3 month 3 to 6 month 6month to 1 year More than 1 yearBike 12 23 33 41Small car 6 11 11 23SUV’s 2 2 5 7Truck - - 1 3Tractor 2 2 7 12total 22 38 57 86 Paper presentation on Opportunities in Rural Market
  22. 22. INSURANCE PENETRATION 140 132 118 120 YES NO 100 96 RESPONDENTS 80Life Insurance 32 118 YES 60 NO 54 40General Insurance 54 96 32 18 20Health Insurance 18 132 0 Life Insurance General Insurance Health Insurance Paper presentation on Opportunities in Rural Market
  23. 23. RURAL AWARENESS ABOUT e-commerce 0% 8% 8% 18% 21% STRONGLY AGREE AGREE NEITHER AGREE NOR DISAGREE DISAGREE STRONGLY DISAGREE 45% Paper presentation on Opportunities in Rural Market
  24. 24. FACTOR AFFECTING PURCHASE DECISION OF RURAL CONSUMER 100 90 90 80 74 70 70RESPONDENTS 60 50 47 40 38 30 20 12 10 0 Availability of the Price of the product Quality of the after sales services Brand name other product product Paper presentation on Opportunities in Rural Market
  25. 25. Findings Paper presentation on Opportunities in Rural Market
  26. 26. Findings Large and Scattered Market Huge potential customers of consumer durables & vehicle purchaser. Lots of scope for Insurance sector. Major Income from Agriculture Sector Paper presentation on Opportunities in Rural Market
  27. 27.  Low Standard of Living Conservative Outlook Lack of Infrastructure Facilities Increased literacy rate Paper presentation on Opportunities in Rural Market
  28. 28. Recommendation Paper presentation on Opportunities in Rural Market
  29. 29. Recommendations Companies should understand the need of rural customers and accordingly make the products. Company should insure proper communication and promotion in regional languages by regional popular person. Paper presentation on Opportunities in Rural Market
  30. 30.  Collaboration with government like PPP(public private partnership) Create employment opportunities for rural people to increase their purchasing power and make them loyal customer. Paper presentation on Opportunities in Rural Market
  31. 31.  Increase the awareness about the product and their usage like ITC had introduced e-choupals. Collaboration with other companies for capturing the huge untapped market like HUL had collaborated with SBI. Paper presentation on Opportunities in Rural Market
  32. 32. Limitations of the Research Budgetary constraints Time constraints Small sample size Reliability of the data Difficulty to make respondents aware about the project Paper presentation on Opportunities in Rural Market
  33. 33. Bibliography Paper presentation on Opportunities in Rural Market
  34. 34. BibliographyBooks Awadhesh Kumar, Pandey (2005), “Rural Marketing”, New Age International Publisher. C.K. Prahalad (2005), “ The Fortune at the Bottom of the Pyramid” Philip, Kotler (1999), “Marketing Management”, Prentice Hall of India. Paper presentation on Opportunities in Rural Market
  35. 35.  Journals1. International Journal of Business and Management September 20102. McKinsey (2007). India Consumer3. UNITED NATIONS ECONOMIC AND SOCIAL COUNCIL (E/ESCAP/1199 5 February 2001) Newspapers1. The Times Of India2. The Economics Times3. The Business Line Paper presentation on Opportunities in Rural Market
  36. 36.  Websites  www.thehindubusinessline.com/nic/073/index.h tm  www.coolavenues.com/know/mktg/  www.indianmba.com/Faculty_Column/FC658/fc 658.html  business.mapsofindia.com/rural- economy/state-development/marketing.html  www.icmrindia.org/casestudies/catalogue/Mark eting/MKTG081.htm  www.ijrcm.org.in  www.scribd.com  http://www.indiaonlinepages.com/population/in dia-current-population.html  http://rural.nic.in/sites/downloads/general/Caste _Census_book_indd.pdf Paper presentation on Opportunities in Rural Market
  37. 37. Paper presentation on Opportunities inRural Market

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