rm nov2011 lpd 2 3 4 education in india (2001) education levelruralurban below primary31.718.0...
TRANSCRIPT
THE RURAL MARKETING
ENVIRONMENT
DEMOGRAPHIC ENVIRONMENT
RM NOV2011 LPD 2
RM NOV2011 LPD 3
Some Comparisons
RM NOV2011 LPD 4
Education in India (2001)
Education Level Rural Urban
Below Primary 31.7 18.0
Primary but below Middle 29.5 22.9
Middle but below Matric 16.9 16.3
Matric but below Graduate 18.4 29.6
Graduate and above 3.5 13.2
Distribution of Population by age groups (2001)
Age Groups Rural Urban
0 – 4 11.5 8.9
5 – 14 25.7 21.8
15 – 19 9.5 10.6
20 – 34 23.1 26.8
35 – 54 19.7 22.5
55+ 10.5 9.4
Source : 2001 Census
Lower due to lack of facilities
Lower due to migration
factor
Some Comparisons
RM NOV2011 LPD 5
Family Structure
Type of Household Rural Urban
Joint 19.5% 15.2%
Nuclear without elders 60.2% 65.5%
Nuclear with elders 17.1% 15.4%
Others 3.2% 3.9%
Total (million) 138 54
Household Size
Size of Household Rural Urban
1 – 2 members 11.1% 10.7%
3 – 4 members 30.4% 38.8%
5 – 6 members 34.0% 32.8%
7 members and above 24.5% 17.7%
Average Family Size 5.36 5.31
Joint Family System
Breakdown
"pucca" doubled from 22% to 41%
"kuccha" houses halved (41% to 23%)
Rural Market Structure
Demographic Environment Share of rural population down from 80.1% in 1971
census to 72.2% in 2001 census. The number at 741.6 million indicates an increase of over 15%
Youth (20 to 34) 23.1% of rural population Rural literacy up from 36% in 1981 to 59% in 2001
census Rural households up by 26 million in last decade Family size has gone down marginally due to migration Joint families now breaking apart with over 77% going
nuclear in rural Concept of individualised joint families staying in the
same house but having separate kitchens
RM NOV2011 LPD 7
Population Distribution - Rural
16%
21%24%
22%14%
3%
<200 200-500 501-1000 1001-2000 2001-5000 >5000
Population Number of Villages
Less than 200 92,541
200-500 127,054
501-1,000 144,817
1,001-2,000 129,662
2,001-5,000 80,313
More than 5,000 18,758
Total number of villages 593,145
RM NOV2011 LPD 8
Source : MARTDo not include uninhabited. Total
villages including these are 638,365
Hardly any shops
in these villages
account for 50% of rural
population & 60% rural wealth
Distribution of Towns in India
Town Class Population Category Number of Towns
Literacy(%)
LPG penetration(% of HHs)
Working population(% of pop)
Class I 1 lakh & above 423 82 47 32
Class II 50,000 – 99,999 498 79 44 31
Class III 20,000 – 49,999 1,386 77 36 32
Class IV 10,000 – 19,999 1,560 76 29 34
Class V 5,000 – 9,999 1,057 76 27 35
Class VI Less than 5,000 237 80 37 34
All India 5,161 80 48 32
RM NOV2011 LPD9
Source: Census 2001
*10 lakh+ : 27, 5-10 lakh: 42, 1-5 lakh: 354
90 % of durables
purchased by rural
people from these towns
ECONOMIC ENVIRONMENT
RM NOV2011 LPD 10
Economic Environment
1995-96
2006-07
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
23.411.1
31.2
14.0
31.6
49.0
13.525.0
0.3 0.9
Very Rich
Consum-ing class
Climbers
Aspirers
Destitutes
AnnualIncome
1995-96
2006-07
Above Rs 215,000 0.3 0.9
Rs 45,001- 215,000 13.5 25.0
Rs 22,001- 45,000 31.6 49.0
Rs 16,001 - 22,000 31.2 14.0
Rs 16,000 & Below 23.4 11.1
100.0 100.0
RM NOV2011 LPD 11
All figures in %
Projections Based on 7.2% GDP Growth
• The rich and the very rich have doubled in the last ten years• The aspirers and the destitute have fallen by 50%• Increasing incomes are also changing expenditure patterns
RM NOV2011 LPD 12
Changing Rural Consumers Expenditure Pattern
Per Capita Consumption Expenditure
(Rs. Per month)
YEAR RURAL URBAN
1983 112 166
1991 281 458
2001 486 855
Source: NSSO
Consumption Expenditure – Rural
Percentage
YEAR FOOD NON-FOOD
1983 66 34
1991 63 37
2001 59 41
Source: NSSO
RM NOV2011 LPD 13
• Per capita consumption expenditure has grown 4 times in the last two decades• Expenditure on non-food items is increasing• 42 million rural households avail banking services in rural against 27 million in
urban
RM NOV2011 LPD 14
Occupational Pattern
Over 40% of rural population is in cultivation followed by 35% wage earners
11% of the rural population are salary earners and nearly 5% petty shopkeepers
3.4% are artisans The cultivator’s disposable income
is highly seasonal being available at the time of harvesting
RM NOV2011 LPD 15
Infrastructure is improving rapidly
In 50 years only, 40% villages have been connected by road, in next 10 years another 30% would be connected.
More than 90% villages are electrified, though only 44% rural homes have electric connections.
Rural telephone density has gone up by 300% in the last 10 years; every 1000+ pop is connected by STD.
Social and Cultural Environment In villages inward migration is insignificant
while outward migration to urban and foreign is reasonably high
The settlement pattern is in clusters largely around caste lines
Land is the primary source of livelihood Activities limited to smaller geographic
areas resulting in higher adherence to customs and traditions
Variations between regions and sub-regions
RM NOV2011 LPD 18
Village Community Villages are self-sufficient and autonomous Each village has a council of elders
(panchayat) Panchayats have the constitutional authority
for exercising self-governance The panchayat structure has undergone
change with elections and reservation for underprivileged families
Shift from subsistence farming to commercial and mixed farming has made the village dependent on external factors
RM NOV2011 LPD 19
Caste System The rural society has a strong caste system:
Brahmins Kshatriyas (Warriors) Vaishyas (Business Class and traders) Shudras (involved in odd jobs) –
Untouchables The settlements of the lower castes are
normally on the outskirts of the village Marketers have to be sensitive to the caste
system especially in the area of communication
RM NOV2011 LPD 20
Political Environment
The panchayats were dominated by upper castes
The panchayati raj system has introduced an integrated and inclusive approach to governance in the rural sector
Villages with 5000 population or a cluster of villages with a combined population of 5000 form a panchayat
Gram Sabhas are to be organised once a quarter to bring in transperancy, accountability and achievement
The sarpanch represents the village at the tehsil/taluka/ block level
RM NOV2011 LPD 21
Tecnological Environment Triggered by three major revolutions:
Green Revolution (1967 to 1978) to bring about food self-sufficiency. Resulted in adoption of high yield seeds, fertilisers, pesticides, and farm mechanisations
White Revolution – Milk production through producer cooperatives and moving processed milk to urban-demand centres. Milk production has gone up from 17 million tonnes in 1950-51 to over 100 million tonnes in 2007-08
The NGO movement has created grassroot level assimilation of technological extensions in rural areas
NGOs have also been instrumental in providing health, homes, hygiene, child care, education and other social development programmes
RM NOV2011 LPD 22
23
GREEN REVOLUTION IN INDIA Mrs . Indira Gandhi decided to take a
major step on present Agriculture condition .
Thus "Green Revolution" was applied
to the period from 1967 to 1978 basically in
parts of Punjab and Haryana .
At this stage the Green Revolution was concern only with Wheat & Rice .
In 1965 the present government of
The introduction of high-yielding varieties of seeds after 1965 and the increased use of fertilizers and irrigation.
Provided the increase in production needed to make India self-sufficient in food grains, thus improving agriculture in India.
It introduced the new techniques and machinary to farmers
WHITE REVOLUTION
INTRODUCTION & BACKGROUND
Also known as “operation flood”. It resulted in making India the largest
producerof milk and milk products, and hence isalso called the White Revolution of India.
Operation Flood was a rural development programme started by India's National Dairy Development Board (NDDB) in 1970.
Kurien Saga the father of milk revolution India.It helped transform India into the largest milk producer of the world.
BLUE REVOLUTION Blue revolution led India to become the
second largest producer of inland fish in the world.
RM NOV2011 LPD 29
Thank you
RM NOV2011 LPD 30
Size of Rural Market
ParticularsRural
MarketCrores
FMCG products 65,000
Consumer Durables 5,000
Agri-inputs incl. tractors 45,000
2/4 wheelers 8,000
TOTAL 1,23,000
Source Francis Kanoi 2002
In the FMCG market the size of the pie is larger than the urban pie. Problems of logistics, supply and storage
Rural markets accounted for 54% of the durables sold in the country
The decadal growth rate for consumer durables is 100% in rural against 40% in urban
RM NOV2011 LPD 31
Durables Urban Rural Total (% of Rural HH)
CTV 30.4 4.8 12.1
Refrigerator 33.5 3.5 12.0
FMCGs Urban Rural Total (% of Rural HH)
Shampoo 66.3 35.2 44.2
Toothpaste 82.2 44.9 55.6
Low penetration rates in rural areas, so there are many marketing opportunities