SIDDANNA M BALAPGOL

1. OPPORTUNITIES & CHALLENGES
IN THE INDIAN RURAL MARKET
By
Gopi Krishnan K
MBA-MS (2011-13 Batch)
Amrita School of Business
Bengaluru Campus

2. OPPORTUNITIES
CHALLENGES
•Low Literacy Rate.
•Communication to be made in the local languages or other simple means
• Lower facilities for communication
Communication Barriers
•Dependence on the agricultural business
•Income of rural India grosses up during those seasons when the
agriculture produce is more
Seasonal Demand
•Customization such that the product is affordable and simple
•New product to be introduced if necessary
Tailoring the product/ Services
•Poor transport infrastructure
•Access limited only to the outer areas
Transportation & Distribution
•Cautious buyers- hence slow in buying decisions
Buying Decisions
•Rural salesperson need certain qualifications and specialized talent
Whom to assign in Rural Market?
•Beliefs and perceptions affecting their buying behavior
Cultural Factors
•Major part of India
•Unexplored Markets
Large Untapped Market
•Literacy rate increased from to (Census 2011)
Increasing literacy rate
•Infrastructure facilities improving in rural areas
•Concept of “Rurban” emerging
Improving Infrastructure Facilities
•Employment in sectors other than agriculture growing
Shift from seasonal employment
•Not many companies entering into the rural market
Not Much Competition
Creation of Potential Loyal Customer Base