Marketing To Rural India


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Rural India has been a neglected sector by Corporate world. Because of various challenges like very little incomes, lack of infrastructures, illiteracy levels and media darkness, Rural India was always a no no for Corporates. But in Last 10 years with Indian government increasing its spending, Rural consumers income is increasing. Rural India has surprised all by coming safe from the worst hit recession of human life.
HLL , Hero Honda, ITC are reaping benefits of being the first to travel road no one travelled.

Published in: Business, News & Politics
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Marketing To Rural India

  2. 2. FLOW OF PRESENTATION<br /><ul><li> SWOT Analysis of Rural India with Corporate </li></ul>perspective.<br /><ul><li> Making a dent in Rural India.</li></li></ul><li>SWOT ANALYSIS OF RURAL INDIA<br /> corporate perspective<br />
  3. 3. Marketing to Rural India :<br />IS IT A CRAZY CONCEPT?<br /><ul><li>70% of Indian Population lives in Rural India.
  4. 4. Mostly depend on Agriculture.
  5. 5. Largely Illiterate.
  6. 6. Earn as low as $2 Per day.
  7. 7. Live with minimum infrastructures.
  8. 8. Language changes per few kms.
  9. 9. Villages are sparsely populated and sparsely located.</li></li></ul><li><ul><li>647 Million population largely uncovered.
  10. 10. 72% population contributes to half of India’s GDP’s.
  11. 11. Approximate size of Rural Market 123000 Crores.
  12. 12. Rural India has seen growth in income due to rice in agriculture prices.
  13. 13. Less exposure to various brands so less competition.
  14. 14. Rise in Expenditure is 9% since 2002.
  15. 15. Government Initiatives like Bharat nirman, NAREGA and Loan waivers have </li></ul> made Rural Indian approachable and very marketable.<br />STRENGTH<br />
  16. 16. W<br />E<br />A<br />K<br />N<br />E<br />S<br />S<br /><ul><li>Low literacy rate.
  17. 17. Lack of Infrastructure facilities like power, Roads etc.
  18. 18. Fake products in the market.
  19. 19. No common language across area.
  20. 20. Sparsely located population.
  21. 21. Low Earning per household.
  22. 22. Low penetration of traditional media.
  23. 23. Traditional outlook of Rural consumers which makes them</li></ul> resist change.<br />
  24. 24. OPPORTUNITIES<br /><ul><li>Government spending in Rural India is on increase
  25. 25. 41 Million Kisan credit cards issued providing a cumulative credit of 977 </li></ul> Billion to Rural India.<br /><ul><li>Bharat Nirman and PradhanmantriGrameenSadakYojna has resulted in </li></ul>Increased Rural Connectivity.<br /><ul><li>90% Villages are electrified.
  26. 26. Schemes like Rural Employment Gurantee act (NREGA) & loan waiver </li></ul>have pumped Liquidity.<br /><ul><li>Rural Markets are ripe and fresh. A new brand can enter easily as competition</li></ul> is low.<br /><ul><li>Rural India’s resistance to change gives established brand a leverage.</li></li></ul><li>T<br />H<br />R<br />E<br />A<br />T<br />S<br /><ul><li>Creating products for Rural India is tricky.
  27. 27. Only corporate with deep pockets can enter as huge</li></ul> infrastructure is required.<br /><ul><li>Tough rural terrain requires extra handling.
  28. 28. To reach sparsely located population a very scattered </li></ul> distribution network is required.<br /><ul><li>Low availability of infrastructure facilities can cause loss of</li></ul> investment.<br /><ul><li>Initial entrants in Rural India are exposed to more risks.
  29. 29. Rural population is mostly illiterate, Communicating message</li></ul> to them is a real challenge.<br />
  30. 30. MAKING A DENT <br />IN RURAL BAZAAR<br />
  31. 31. PRODUCT DIFFRENTIATION<br />Introducing variations in products or all together new products for Rural needs based on price<br /> sensitivity, requirements and tough rural terrain<br />
  32. 32. USE OF TECHNOLOGY<br />Use of technology for reaching far reached rural customers. <br /><ul><li>Smart cards for villagers for accessing bank accounts.
  33. 33. ITC E- Chaupalwhere farmers keep in touch with latest prices.
  34. 34. Amul using refrigeration units at collection points.</li></li></ul><li>COMMUNICATE IN THEIR LANGUAGE<br />Message to Rural consumers should be in their language and comprehensible to them.<br /><ul><li> Lifebuoy swasthyachetna campaign
  35. 35. Vodafone Wall paints</li></li></ul><li>THINKING DIFFERENTLY<br />New concepts to reach and serve rural consumers have to be thought for making rural <br />consumers buy your products.<br /><ul><li>Grameen Bank introduced Microfinance and Micro Credit for poor.
  36. 36. Bajaj Allianz’s Micro Insurance.</li></ul> GRAMEEN BANK<br />
  37. 37. SUPPLY CHAIN MANAGEMENT<br />Rural Markets are sparsely located and are not connected with good roads. Supply chain<br /> management needs to be effective and efficient.<br /><ul><li>HUL Shakti--- Using Rural woman as distributor of HUL Products.
  38. 38. Tata using NGO network in UP to supply its product in Villages.
  39. 39. Reliance retail procuring from local villages to supply in neighboring cities.</li></li></ul><li>REAPING BENEFITS<br /><ul><li>In 2001-02, LIC sold 55 % of its policies in rural India.
  40. 40. Of two million BSNL mobile connections, 50% in small towns/villages .
  41. 41. Herohonda’s 43% sales comes from Rural India.
  42. 42. MarutiSuzukis Rural sale increased from 3.5 to 10% in one year.
  43. 43. HUL’s one of the initiators in rural India has more than 45% sale coming from</li></ul> Rural India.<br /><ul><li>Of 20 million Rediffmail signups, 60 % are from small towns. 50% transactions</li></ul>from these towns on Rediffonline shopping site. <br /><ul><li>42 million rural HHs availing banking services in comparison to 27 million </li></ul> urban HHs. <br /><ul><li>LG sold 55% of its color television in Rural India.</li></li></ul><li>RURAL INDIA<br />Its waitingto be explored<br />Areyou<br />READY?<br />