IBA Seminar on Banking in the Hinterland PRODUCT DEVELOPMENT  FOR  RURAL MARKETS S. P. GARG Dy.Gen Manager Bank of Baroda ...
RURAL CHALLENGES: <ul><li>India Growth Story & Eleventh Five Year Plan: </li></ul><ul><li>Special Focus on Agriculture & R...
RURAL MARKET SCENARIO <ul><li>APPROACHES TOWARDS RURAL MARKET </li></ul><ul><li>Geographical  Coverage </li></ul><ul><li>P...
RURAL MARKET SEGMENTATION <ul><li>Rural Banking, Rural Credit, Rural Insurance </li></ul><ul><li>Rural Marketing: Agri Inp...
RURAL BRAND: AMBASSADORS & INSTITUTIONS <ul><li>Mahatma Gandhi: Sarvodaya & Antoydaya </li></ul><ul><li>Dr. M.S. Swaminath...
RURAL BUSINESS MODEL <ul><li>RURAL   </li></ul><ul><li>R:Retail Business for Rural Community As  </li></ul><ul><li>(Consum...
New Avenues for Rural Business: Special Focus   <ul><li>Horticulture, Plantation, Vegetable Growing, Floriculture,Aromatic...
CHALLENGES FOR PRODUCT DEVELOPMENT <ul><li>Need for  aggressive strategies for </li></ul><ul><li>Breakthrough Business (BB...
CHALLENGES FOR PRODUCT DEVELOPMENT(Contd.) <ul><li>Product Differentiation with Great Values </li></ul><ul><li>Regular rev...
To SUM UP   <ul><li>DEVELOP  “SMART” MODEL </li></ul><ul><li>HAVE “ART”  </li></ul><ul><li>TO BE IN “MART”  </li></ul><ul>...
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echopal

  1. 1. IBA Seminar on Banking in the Hinterland PRODUCT DEVELOPMENT FOR RURAL MARKETS S. P. GARG Dy.Gen Manager Bank of Baroda 14 th Feb’07
  2. 2. RURAL CHALLENGES: <ul><li>India Growth Story & Eleventh Five Year Plan: </li></ul><ul><li>Special Focus on Agriculture & Rural Segment </li></ul><ul><li>To achieve 9 % growth projections, 4 % Farm growth is a must for self sufficiency, food security and for 2 nd Green Revolution </li></ul><ul><li>“ Deficit Areas” for development of Rural Economy </li></ul><ul><li>1.   Investment and Credit Deficit </li></ul><ul><li>2.   Infrastructure Deficit </li></ul><ul><li>3.   Market Economy Deficit </li></ul><ul><li>4.  Knowledge Deficit </li></ul><ul><li>With new emerging areas Rural Business : sustainable and profitable business proposition </li></ul>
  3. 3. RURAL MARKET SCENARIO <ul><li>APPROACHES TOWARDS RURAL MARKET </li></ul><ul><li>Geographical Coverage </li></ul><ul><li>Production and Potential Based </li></ul><ul><li>Income Generation and Consumer spending </li></ul><ul><li>Rural Markets ( 20,000 to 50,000 population) Tier2 and Tier3 cities contribute about 40-45% of FMCG and consumer durable items. </li></ul><ul><li>Pyramid Approach for future Development (BOP-Model) </li></ul><ul><li>Product Specific Target Segmentation </li></ul>
  4. 4. RURAL MARKET SEGMENTATION <ul><li>Rural Banking, Rural Credit, Rural Insurance </li></ul><ul><li>Rural Marketing: Agri Inputs, FMCGProducts </li></ul><ul><li>Rural Education, Extension, Research for Capacity & Capability Building &Employment </li></ul><ul><li>Rural Investment & Infrastructure Development </li></ul><ul><li>Rural Synergy with Corporates for value Chain based marketing, and Linkages. </li></ul><ul><li>Rural to Global(Rural Exports) </li></ul><ul><li>Rural NGOs, Rural BPOs and Other Segments </li></ul>
  5. 5. RURAL BRAND: AMBASSADORS & INSTITUTIONS <ul><li>Mahatma Gandhi: Sarvodaya & Antoydaya </li></ul><ul><li>Dr. M.S. Swaminathan: Green Revolution </li></ul><ul><li>V. Kurian: White Revolution </li></ul><ul><li>Ela Bhatt: Women Empowerment </li></ul><ul><li>NABARD: Farmers Club </li></ul><ul><li>SBI: ADB Model </li></ul><ul><li>BoB: GVK Model </li></ul><ul><li>ITC: e-Chaupal </li></ul><ul><li>ICICI: Business Facilitator/Correspondent </li></ul><ul><li>IIMA & IRMA: Rural Management </li></ul>
  6. 6. RURAL BUSINESS MODEL <ul><li>RURAL </li></ul><ul><li>R:Retail Business for Rural Community As </li></ul><ul><li>(Consumer & Producer) </li></ul><ul><li>U: Urban Facilities(PURA), Investment, </li></ul><ul><li>Infrastucture </li></ul><ul><li>R: Animal Hubandry & Allied Activities </li></ul><ul><li>A: Agri-Production(Field Crops, Plantation ) </li></ul><ul><li>L: Linkages & Synergy </li></ul><ul><li>SEGMENT DIFFERENTIATION APPROACH </li></ul><ul><li>R1: High Net Worth & High Investment </li></ul><ul><li>R2: Mid Segment </li></ul><ul><li>R3: Entry Level Segment & Cluster Based </li></ul>
  7. 7. New Avenues for Rural Business: Special Focus <ul><li>Horticulture, Plantation, Vegetable Growing, Floriculture,Aromatic and Medicinal Plants, Bio-Diesel Plants etc. for high Investment Opportunities </li></ul><ul><li>Post Harvest and Food Processing & Logistics Services </li></ul><ul><li>Seed Multiplication & Processing </li></ul><ul><li>Diversified Activities: Animal Husbandry, Dairy Farming, Sericulture, Aqua-Culture & Others. </li></ul><ul><li>Irrigation Projects & Wasteland Developments. </li></ul><ul><li>Agro-Forestry Products </li></ul><ul><li>Tie-Up Arrangements with Business Houses, Agri- Marketing Institutions, Industry Level Organizations with Supply Chain Management Module </li></ul><ul><li>Rural Tourism & Other emerging areas. </li></ul>
  8. 8. CHALLENGES FOR PRODUCT DEVELOPMENT <ul><li>Need for aggressive strategies for </li></ul><ul><li>Breakthrough Business (BB) instead of Business As Usual (BAU) approach . </li></ul><ul><li>Change of Mindset & Commitment for Rural Business as profitable & sustainable Business Model </li></ul><ul><li>Strong committed Organization Structure </li></ul><ul><li>Focus on People, Products & Process </li></ul><ul><li>Passion for Innovations & Initiatives </li></ul><ul><li>Dynamic comprehensive Approach for Synergy and Partnership Models </li></ul>
  9. 9. CHALLENGES FOR PRODUCT DEVELOPMENT(Contd.) <ul><li>Product Differentiation with Great Values </li></ul><ul><li>Regular review of Existing Products & Services </li></ul><ul><li>Effective Implementation Strategy & Strong delivery Channels. </li></ul><ul><li>Constant Clear cut communications with defined target groups (internal & external) </li></ul><ul><li>IT-enabled strong MIS and CRM </li></ul><ul><li>AND ULTIMATELY </li></ul><ul><li>360 0 Marketing Approach for Product </li></ul><ul><li>Development & Successful Implementation . </li></ul>
  10. 10. To SUM UP <ul><li>DEVELOP “SMART” MODEL </li></ul><ul><li>HAVE “ART” </li></ul><ul><li>TO BE IN “MART” </li></ul><ul><li>& </li></ul><ul><li>BECOME “ SMART” </li></ul>THANK YOU

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