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FUTURE OF RURAL MARKETING IN INDIA
FIROS FEBIN
14WJCMDO14
3RD SEMESTER
RURAL MARKETING
 According to NCAER, a rural Market is any market that exists in the rural
area with a population
less than 10,000.
 India's growth move is highly driven by the development of the rural people.
Players in various
industries such as retail, fast moving consumer goods (FMCG), consumer
durables, automobiles,
are looking towards the untapped potential hinterlands possess.
 Rural Indian households are spending more on consumer goods like durables,
beverages.
 The Indian rural market is an area of darkness to Indian corporate. Rural
area is vast in size but amorphous in detail.
 With over 70% of India's population residing in rural areas, capturing these
markets is becoming one of the most lucrative options for all sectors.
 At present, rural consumers spend about USD 9 billion per annum on FMCG
items and product categories such as instant noodles, deodorant and fabric,
CHALLENGES FACED BY RURAL MARKET IN INDIA
 Low Per Capita Income
 Seasonal Marketing
 Packaging
 Low Level of Electricity
 Transportation problems
 Warehousing
 Media Problems
FUTURE OF INDIAN RURAL MARKET
There are many opportunities waiting to be exploited in the area of rural marketing
 There is an increasing convergence between urban and rural consumers especially the
young consumers, who have almost same aspirations as that of a young urban consumer.
Thus, the marketers can target a certain section of rural consumers in the same manner as
they are targeting the urban ones.
 The purchasing power of rural families has grown rapidly. Rural Marketing
Association of India (RMAI) confirms that rural income levels are on a rise. Income
from non-farm sector is likely to touch 66% of net rural income by 2020. Market size
would thus, nearly double. Average rural spending would grow 6 times from current
levels in 20 years. Moreover, the percentage of Below Poverty Line (BPL) families
declined from 46% to 27%.
 The various infrastructural problems have been tackled to a great extent. Work is in
progress for the better connectivity by roads; more than 90% of villages are electrified.
Rural telephone density has gone up by 300% in last 10 years. Rural literacy rate has also
improved from 36% to 59%.
As its fact, India's rural population accounts for 12.5% of the world's total population,
600,000 villages with 700 million people; the country side thus, offers a huge consumer
base and huge opportunity for rural marketers in India.
Lastly, the per capita income of top 20%-30% of rural segment is not much different
from urban middle class. This means that the affordability of the segment of rural
consumers will be almost equal to that of the urban middleclass. Thus, marketers can tap
this segment as well with the product he is targeting the urban middle class.

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Future of rural marketing and devlp.pptx

  • 1. FUTURE OF RURAL MARKETING IN INDIA FIROS FEBIN 14WJCMDO14 3RD SEMESTER RURAL MARKETING
  • 2.  According to NCAER, a rural Market is any market that exists in the rural area with a population less than 10,000.  India's growth move is highly driven by the development of the rural people. Players in various industries such as retail, fast moving consumer goods (FMCG), consumer durables, automobiles, are looking towards the untapped potential hinterlands possess.  Rural Indian households are spending more on consumer goods like durables, beverages.  The Indian rural market is an area of darkness to Indian corporate. Rural area is vast in size but amorphous in detail.  With over 70% of India's population residing in rural areas, capturing these markets is becoming one of the most lucrative options for all sectors.  At present, rural consumers spend about USD 9 billion per annum on FMCG items and product categories such as instant noodles, deodorant and fabric,
  • 3. CHALLENGES FACED BY RURAL MARKET IN INDIA  Low Per Capita Income  Seasonal Marketing  Packaging  Low Level of Electricity  Transportation problems  Warehousing  Media Problems
  • 4. FUTURE OF INDIAN RURAL MARKET There are many opportunities waiting to be exploited in the area of rural marketing  There is an increasing convergence between urban and rural consumers especially the young consumers, who have almost same aspirations as that of a young urban consumer. Thus, the marketers can target a certain section of rural consumers in the same manner as they are targeting the urban ones.  The purchasing power of rural families has grown rapidly. Rural Marketing Association of India (RMAI) confirms that rural income levels are on a rise. Income from non-farm sector is likely to touch 66% of net rural income by 2020. Market size would thus, nearly double. Average rural spending would grow 6 times from current levels in 20 years. Moreover, the percentage of Below Poverty Line (BPL) families declined from 46% to 27%.  The various infrastructural problems have been tackled to a great extent. Work is in progress for the better connectivity by roads; more than 90% of villages are electrified. Rural telephone density has gone up by 300% in last 10 years. Rural literacy rate has also improved from 36% to 59%.
  • 5. As its fact, India's rural population accounts for 12.5% of the world's total population, 600,000 villages with 700 million people; the country side thus, offers a huge consumer base and huge opportunity for rural marketers in India. Lastly, the per capita income of top 20%-30% of rural segment is not much different from urban middle class. This means that the affordability of the segment of rural consumers will be almost equal to that of the urban middleclass. Thus, marketers can tap this segment as well with the product he is targeting the urban middle class.