Uploaded byKamal Chandra Upreti
RURAL MARKETING
Rural India holds the key to India's economic future as 67% of companies are expanding their presence in rural tier 4 and below markets. Rural areas are seeing faster GDP growth, higher incomes, and a young population. Many brands are introducing more affordable products tailored to rural consumers. Companies are using various methods to reach rural customers directly such as training rural women to sell products door-to-door or establishing large retail stores. Rural India now accounts for nearly half of branded soft drinks and motorcycle sales in the country.
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RURAL MARKETING
- 1. Does rural Bharathold the key to India’s economic future ?
- 2. No wonder that67% of companies in India are expanding their presence in these tier IV and beyond markets,
- 3. A few reasonsare driving the growth of brands in rural India: A highly penetrated urban market, Requiring fresh markets to be tapped, Improved education, Higher disposable incomes, More employment and economic, initiatives by the government. , A young, more aspirational majority population
- 4. GDP has grownfaster in rural India than in urban: at a 6.2% compounded annual growth rate versus 4.7%.
- 5. "Tier IV isno longer a poverty market as small towns are catching up with urban centres in terms of disposable incomes and consumption," --Kirti Prasanna Mishra, partner at rural market research firm MART
- 6. A Roland BergerStrategy Consultants (RBSC) report, ‘How to reach emerging market consumers with new strategies’ says: “Emerging markets will be extremely young in terms of demographics
- 7. In 2030, 40%of the population will be under 25, compared to just 26% in developed nations. This fact will have a profound influence on consumption patterns.”
- 8. According to aTata Strategic Management Group report, one-third of fast moving consumer goods (FMCG) and consumer durables are sold in rural markets.
- 9. A McKinsey GlobalInstitute report says that by 2025, annual real income per household in rural India will grow from the 2.8% of the past two decades to 3.6% over the next two decades.
- 10. companies are introducemore suitable products and pricing. Many brands have revised unit prices downwards.
- 11. Hindustan Unilever hasbeen training rural women as Shakti Ammas to reach its products to consumer homes – the last mile. Reportedly, the Shakti initiative delivers around 20% of Unilever’s overall rural sales.
- 12. Godrej Consumer Productstrains rural youth in channel sales. ITC has Choupal Sagar and Godrej Agrovet has large format retail stores called Adhaar.
- 13. According to industryestimates, rural India buys 45% of all branded soft drinks and 49% of all motorcycles sold in India.
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