This document discusses rural markets in India, with a focus on the Mewat region. Some key points: - Rural areas account for 72% of India's population but have low infrastructure development and literacy. - The rural telecom market in Mewat has low penetration rates, with 1-2 mobile phones per family of 8 members who recharge about once every 10-15 days. - Reaching rural consumers and distributing products in these areas presents significant challenges due to low population densities, socio-cultural factors, and lack of infrastructure and distribution channels. - Developing an effective rural communications strategy using local languages and traditions is important to market products and services in rural India.

1. RURAL MARKET PRESENTATION Group – 9 RishiKalantri SahilKhurana SharadRastogi SidharthSehgal UditBubna

2. Facts Of Rural Markets India lives in villages, close to 72 percent of Indian population lives in rural areas. The McKinsey report on the rise on consumer market in India predicts that in twenty years the rural Indian market will be almost four times the size of today’s urban Indian market and estimated the size of the rural market at $577 Billion. With the initiation of various rural development programs there have been an upsurge of employment opportunities for the rural poor. Rural market covers the maximum population and regions and thereby, the maximum number of consumers. The steps taken by the Government of India to initiate infrastructural developments and various schemes to cut down the poverty line have improved the condition of the rural masses.

3. About Mewat Population of Mewat 1 million. Male and female constitute 53% and 47% of the population respectively. 75% of Population in NaiNangla is below 18 years of age. Average Literacy rate for Mewat District is 56.10 percent.

5. THERE IS 1-2 MOBILE PHONES IN A FAMILY OF 8 MEMBERS

6. THEY RECHARGE THEIR PHONES ONCE IN EVERY 10-15 DAYS.

7. THE RECHARGE COUPONS AVAILABLE ARE OF RS. 10 20 50 & 100.

9. Characteristics of Rural Market(Mewat) Population characteristics Average population density is 729 per sq. km, which is quite low as compared to urban areas. Hence, making it difficult for telecom companies to service the region individually and often uneconomical. Takes more time to achieve breakeven. Socio-Cultural Characteristics Most of the population of Mewat is of Meo Muslims. They are generally reserved and are not open to new technologies. Low income and literacy levels, products like recharge coupons need to be specifically tailored for rural masses. Tariffs also need to be low due to lower income levels.

10. Contd… Political and Environmental Climate Mewat has generally been ignored in political circles. Not much development has taken place and area is economically weaker. Infrastructure Not much telecom infrastructure exist. Minimal number of telecom towers are catering to such a huge area. Signals are weak in most of the area and call drop rate is high. Availability of products & services New connections and Recharge coupons are available but the distribution system is quite weak and has a very low penetration. People generally need to travel 5kms on an average to get the required service.

11. Contd… Distribution channels Making the product reach the consumers and in the case of telecom services studies have shown this to be the biggest barrier to be overcome in rural markets. The task of distribution in these areas is considered to be more difficult than in urban areas. Marketing Communications The promotion of the services also needs to be adapted to the village environment; the language and means of communication used should be in the local language.

12. VILLAGE FACTORY OPPORTUNITIES Low Cost of Production. Scope of diversification. CHALLENGES Low connectivity Infrastructure Inadequate credit facilities

13. Approach to market our product We should focus on Rural communications and public relations. One of the first steps in rural marketing communications is to research the rural audience, and find out how much of their thinking is being influenced by local and rural traditions and customs. The next step is to understand these traditions, so that rural promotion exercises such as rural events, wall paintings, community programs, street plays, fairs or advertising in targeted publications can be built around them. Our services should range from managing and maintaining rural public relations, hosting and managing rural events, handling rural promotions professionally, getting involved in rural brand management, conducting rural advertising and marketing communications and supervising rural CSR activities.

14. KEY LEARNING Rural markets in India constitute a wide and untapped market. There is a demand for telecommunication services to be provided in these areas. As of now the telecom market has low penetration(Avg-1 on 8). There is a market for only prepaid services and the component of recharge also needs to be tailored according to the needs of rural masses. Lastly, issue of proper segmenting and targeting of village consumers should also be addressed. Affordability issues in telecom would a fixed cost and an initial barrier for a villager to start with the service needs to be brought down and many companies including the market leader Nokia are working on low cost handsets which could be of use in rural areas.