rural marketing1-pdf-handouts

14
1 Rural Marketing Session – 1 Environment Reaching , the unreachable consumer “The real voyage of discovery consists not in seeking new landscapes, but in having new eyes.” Marcel Proust Understanding Rural Markets An Overview India: The Diversity 17 % of the world’s population in 2% of its land mass 24 languages … 1642 Dialects All major religions … 20000 ethnic groups 6, 38, 691 villages and 5,164 towns. 70 % of population still Rural and agrarian. India India - Not Just One Country ! Not Just One Country ! Rural Market Has Arrived 742 million people Rural is bigger than urban FMCG's 53% Durables 59% Source: NCAER,2002 Estimated annual size of the rural market FMCG Rs 65,000 Crore Durables Rs 5,000 Crore Agri-inputs (incl. tractors) Rs 45,000 Crore 2 / 4 wheelers Rs 8,000 Crore Total Rs 1,23,000 Crore Source: Francis Kanoi, 2002 Rural Income Dispersal Projection 100.0 100.0 Total 11.1 23.4 Rs 16,000 & Below Destitutes 14.0 31.2 Rs 16,001 - 22,000 Aspirants Rs 22,001- 45,000 Rs 45,001- 215,000 Above Rs 215,000 Annual Income 31.6 13.5 0.3 1995-96 49.0 Climbers 25.0 Consuming Class 0.9 Very Rich 2006-07 Consumer Class Projections Based on 7.2% GDP Growth All figures in %

Upload: ravishankar-ulle

Post on 18-Jul-2015

478 views

Category:

Documents


0 download

TRANSCRIPT

1

Rural Marketing

Session – 1Environment

Reaching , the unreachable consumer

“The real voyage of discovery consists not in seeking new landscapes, but in having new eyes.”

Marcel Proust

Understanding Rural Markets

An Overview

India: The Diversity

17 % of the world’s population in 2% of its land mass 24 languages … 1642 Dialects All major religions …20000 ethnic groups 6, 38, 691 villages and 5,164 towns.70 % of population still Rural and agrarian. India India -- Not Just One Country !Not Just One Country !

Rural Market Has Arrived

742 million peopleRural is bigger than urban

FMCG's 53%Durables 59% Source: NCAER,2002

Estimated annual size of the rural marketFMCG Rs 65,000 CroreDurables Rs 5,000 CroreAgri-inputs (incl. tractors) Rs 45,000 Crore2 / 4 wheelers Rs 8,000 CroreTotal Rs 1,23,000 Crore

Source: Francis Kanoi, 2002

Rural Income Dispersal Projection

100.0100.0Total

11.123.4Rs 16,000 & BelowDestitutes

14.031.2Rs 16,001 - 22,000Aspirants

Rs 22,001- 45,000

Rs 45,001- 215,000

Above Rs 215,000

AnnualIncome

31.6

13.5

0.3

1995-96

49.0Climbers

25.0Consuming Class

0.9Very Rich

2006-07Consumer Class

Projections Based on 7.2% GDP Growth

All figures in %

Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Underline

2

Rural UrbanLow -7.3 -10.1Lower middle 2.5 -1.7Middle high 11.3 7.4

Income distribution (Million population)

288

130

4190

153

312

0

100

200

300

400

Low Low er middle Middle high

Rural Urban

2001-02

305

1779

272

170

352

0

100

200

300

400

Low Low er middle Middle high

Rural Urban

2009-10

Impressive growth in purchasing power

Annual growth (%)Urban 2.4 3.2Rural 3.4 4.5

68867740

9665

37954478

6070

0

2000

4000

6000

8000

10000

12000

1989-90 1994-95 2001-02

PC

I (R

s. p

er a

nn

u

Urban Rural

0.55 0.58 0.63

• Share of rural income to national income is declining1995-96 62%2004-05 60%

Rural Economy

• Ratio of rural PCI to urban PCI is increasing1995-96 0.582004-05 0.64

• Share of agriculture sector is declining and gained by service sector

Rural Urban1995-96 2004-05 1995-96 2004-05

Agriculture 43 32 4.4 3.7Industry 19 22 42 35service 38 47 53 61

Rural India

41 % are illiterate56 % HH have no access to electricity 70 % of HH’s have no bank account96 % have no telephones 6.7 % have two wheelers 1.3 % have 4 wheelers

Occupation Demographics(% of households)

0

10

20

30

40

50

Cultivator Pettyshopkeeper

Wage earner Salary earner Others

Urban Rural

• Major source of income for 75% rural homes is agriculture and wages

Know your Rural Consumer

• Low purchasing power (2001-02)Monthly PCI (Rs.)

Rural UrbanCultivator 805 1,467 Wage earner 522 636 Salary/Professionals 1,540 1,876 Business 1,112 1,637

• Consumption pattern (%)Rural Urban

Food 63.7 51.5Consumer goods 13.1 19.6Fuel, clothing & foot wear 14.8 13.9Medical 5.5 5.5Education 2.5 5.1Rent & taxes 0.4 4.5

Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight

3

Understand & Feel

We believe, Farmer is the face of Rural MarketsAs such to successfully explore Rural Markets, we must understand typical needs of the FarmerHaving done so, we must work-out a solution which when presented, makes the Farmer feel empoweredThe Mantra is “Do it in field and not in Boardrooms’

Press Availability

No. % No. % No. %

English 437 7 7704 16 8141 14

Hindi 2645 45 19422 39 22067 40

Other languages 2884 48 22688 45 25572 46

Total 5966 100 49814 100 55780 100

Languages Dailies Magazines Total

86 % language publications 86 % language publications 55500 + publications 55500 + publications

Channel Explosion

13

5575

200

137

50

50

100

150

200

250

1990 1991 1993 1995 1999 2002 2004

Source : Broadcasting Corporation of India & Industry estimates

DD1/2DD RegCableCNN

ATNZee TVStar PlusBBCPrime SpMTVSun TVDD (Info)

TVI, In MumbaiSun-2, Raj-2JJ TV, GECE TV, GeminiPTV, YesDiscovery, SonyESPN, NEPCABNI, Money TVVenus, Zee CinemaEl TV, DD4-16(Reg)Asianet, Jain TVUdaya TV

DD4-16(Reg) , AsianetJain TV, Star World, Star News, Surya TVAXN, Punj WorldDD Sports, FTV

Alpha TV, Ani Plan

Jaya TV, Raj ATN Ben & NGC

2 Out of 5 Indians are unreachable by Mass media

5186.460.7Any Media20.122.520.8Radio9.119.111.9Cinema

24.158.633.5Press33.476.145TV

RuralUrbanTotalReach %

……thatthat’’s 425 s 425 mnmn people, or Japan, France,UK and people, or Japan, France,UK and Germany put together !Germany put together !

…. 2 out 4 Rural households have access to electricity !

And those who have access to electricity …

Little UseOf electricity

Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight

4

The Change…

Soaps & Detergents– Most of rural India.

Because of Operation Shakti, etc ? OR,Because of entrepreneurial energy ?

PCC cereals for rural population - 12.34 kg/month PCC for urban population - 9.90 kg/month

96% rural households are self-owned.(oops! There are serious issues here…)

5 lakh ruralites have gone abroad. 27% holiday within country.– Conservative estimates

Tolerates traditional theatre / folk art. Wants Hindi movies, follows cricket…

Urban RuralFood 51.5 63.7Consumer goods 19.6 13.1Fuel, clothing & foot we 13.9 14.8Medical 5.5 5.5Education 5.1 2.5Rent & taxes 4.5 0.4

Distribution of Monthly Per Capita expenditure

Distribution of households by occupation of head of households

0

10

20

30

40

50

Cultivator Pettyshopkeeper

Wage earner Salary earner Others

Urban Rural

Rural Share 1989-90 1992-93 1998-99 2001-02Over 75%

1

Radio/ Transistors

2

Bicycle. Radio/Transistors

4

Bicycle. Radio/Transistors, Mechanical Wrist Watch, B&W TV 6

Bicycle. Radio/Transistors, Mechanical Wrist Watch, B&W TV, Pressure Cooker, Cassette Recorder

50-75%

5

Bicycle, Motor Cycle, Table Fan, Sewing Mechanical Wrist Watch 4

Table Fan, Sewing Machine, Mechanical Wrist Watch

7

Cassette Recorder, Pressure Cooker, Table Fan, Ceiling Fan, Sewing Machine, Motor Cycle, Quartz Wrist Watch

6

Table Fan, Ceiling Fan, Sewing Machine, Motor Cycle, Quartz Wrist Watch, Moped

30-50%

7

Moped, B&W TV, Cassette Recorder, Pressure Cooker, Electric Iron, Ceiling Fan, Quartz Wrist Watch

8

Moped, Motor Cycle, B&W TV, Cassette Recorder, Pressure Cooker, Electric Iron, Ceiling Fan

5

Moped, CTV, Mixer/Grinder, Scooter, Electric Iron 4

CTV, Mixer/Grinder, Scooter, Electric Iron

20-30% 2 Scooter, Mixer/Grinder 2 Scooter,

Mixer/Grinder 1 Refrigerator 1 Refrigerator

10-20%2

CTV, Refrigerator1

Refrigerator2

VCR/VCP, Washing Machine 2

VCR/VCP, Washing Machine

5-10% 1 Washing Machine 2 VCR/VCP, Washing Machine 0 - 0 -

Below 5% 1 VCR/VCP 0 - 0 - 0 -

Rural share in market for consumer goods

Product penetration - Case I(Ownership per thousand households)

0

40

80

120

160

200

AC VCP VC Car Mo ped Mo to rcycle SM Sco o ter

Rural Urban

Product penetration - Case II(Ownership per thousand households)

0

100

200

300

400

500

600

700

WM Fridge MG TB (C) TV (B) Elec tricIro n

Trans is to r Bicycle P C

Rural Urban

Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight

5

Product penetration - Case III(Ownership per thousand households)

0

500

1000

1500

2000

Fan Wrist Watch

Rural Urban

Products Total Stock (Million)

Rural Share (%)

Air Conditioner Family Car

Vaccum Cleaner11 6.8

VCP & VCR Washing Machine

Refrigerator42 18.0

Mixer Grinder Scooter

Color Television Electric Iron

Moped Pressure Cooker

189 37.2

Motorcycle Fan

Sewing Machine Television (B&W)

239 52.7

Wrist watch Transistor

Bicycle503 67.9

All Products (19) 984 55.5

Rural share in total stock

Rural-urban divide

Households (%)

Share in stock (19 products)

Average number of goods per

householdsUrban

Low 4.1 3.9 5.0Lower midlle 9.0 11.8 6.8Middle high 15.3 28.8 9.8

28.4 44.4 8.2

RuralLow 30.6 14.2 2.4Lower midlle 28.3 22.4 4.1Middle high 12.7 19.0 7.8

71.6 55.6 4.1

Factors explaining rural-urban divide

2001-02

31%

42%

8%

19%

Income Infrastructure Interaction Lifestyle

25%

15%46%

14%

Penetration Intensity of Use

Income Population

Factors affecting change in market size(between 1995-96 and 2001-02)

URBAN

44%

6%

42%

8%

RURAL

Health beverages

Factors affecting change in market size(between 1995-96 and 2001-02)

URBAN11%

34%

21%

34%

RURAL

19%

46%

17%

18%

Penetration Intensity of use

Income Population

Toilet soap

Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight

6

Factors affecting change in market size(between 1995-96 and 2001-02)

URBAN RURAL

65%14%

16%5%

77%

13%

8% 2%

Penetration Intensity of Use

Income Population

Shampoo The Rural Market has arrived

In 2001-02, LIC sold 55 % of its policies in rural India.Of two million BSNL mobile connections, 50% in small towns/villages.Of the six lakh villages, 5.22 lakh have a Village Public Telephone (VPT) 41 million Kisan Credit Cards issued (against 22 million credit-plus-debit cards in urban) with cumulative credit of Rs 977 billion resulting in tremendous liquidity.Of 20 million Rediffmail signups, 60 % are from small towns. 50% transactions from these towns on Rediff online shopping site42 million rural HHs availing banking services in comparison to 27 million urban HHs.Investment in formal savings instruments: 6.6 million HHs in rural and and 6.7 million in urban

Distribution of Villages

Source: Census 2001

3.218,7585001-1000

24.4144,817501-1000

21.9129,6621001-2000

13.580,3132001-5000

100.0593,154*Total no of villages

21.4127,054200-500

15.692,541Less than 200

% of total villages

No of villagesPopulation

17% of villages account for 50%

of rural population & 60% rural

wealth

Hardly any shops in these 2.2 lac villages

*Inhabited villages, total number of villages is 638, 691

Distribution of Towns in India

Town Class Population No of towns % of total towns

Class I 1 lac and above 423* 8.2

Class II 50,000-99,999 498 9.6

Class III 20,000- 49,999 1386 26.9

Class IV 10,000- 19,999 1560 30.2

Class V 5,000- 9,999 1057 20.5

Class VI less than 5000 237 4.6

Total no of towns

5161 100.0Source: Census

2001

90 % of durables

purchased by rural people

are from these 1900 towns

*10 lakh+ : 27, 5-10 lakh: 42, 1-5 lakh: 354

Is “Rural Connect” tougher to establish than “Urban Connect”?

No, it is not but we make it tough for ourselves when, we presume,

“Rural customer” to be entirely different from the “Urban Customer”.“Rural customer” to be one homogenous set of customers.“Rural preferences” to be stationary in time.“Rural customer” wants everything cheap.Rural folk are hard-working “sonof the soils” who do not need conveniences.Rural customers are widely dispersed across Village level haats.

Rural Customer is not a homogenous set of customers with preferences frozen in time

MYTH 1: Rural Market Is a Homogeneous Mass

REALITYHeterogeneous population

16 languagesState wise variations in rural demographics

Literacy (Kerala 90%, Bihar 44%)Population below poverty line (Orissa 48%, Punjab 6%)

Big Landlords

Traders,Small Farmers

Marginal Farmers

Laborers, Artisans

Source: Planning Commission, GoI

Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight

7

MYTH 2: Disposable Income Is Low

REALITY Number of middle class HHs (annual income Rs 45,000-2,15,000)Rural 27.4 millionUrban 29.5 millionPer Capita Annual IncomeRural Rs 9,481 Urban Rs 19,407 Total Rs 12,128 Source: NCAER,2002

Rural incomes CAGR was 10.95% compared to 10.74% in urban between 1970-71 and 1993-94

Source:ETIG,2002-03

MYTH 3: Individuals Decide About Purchases

REALITY

Decision making process is collective

Purchase process- influencer, decider, buyer, one who pays can all be different. So marketers must address brand message at several levels

Rural youth brings brand knowledge to HH

Rural Consumer Insights

Rural India buys.Products more often (mostly weekly).Buys small packs, low unit price more important than economy.Distribution and pricing are the mantras to success in rural India.

Even expensive brands like Close up, Marie biscuits, Clinicshampoo are doing well because of deep distribution.

Rural Consumer Insights

In rural India, brands rarely fight with each other, they just have to be present at the right place.Many brands are building strong rural base without much advertising support.

Chik shampoo, second largest shampoo brand.Ghadi detergent, third largest brand.

Fewer brand choices in rural : number of FMCG brand in rural is half that of urban.Buy value for money, not cheap products

Infrastructure Improving Rapidly

In 50 years only 40% villages connected by road, in next 10 years another 30%.

More than 90 % villages 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.

Infrastructure Improving Rapidly

70% of R1,R2, R3 can be reached through mass media.

14

21

41

26

53

70

SatelliteTV

Radio Press Cinema TV All Media

Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight

8

Climbing Social Indicators

Between 1981 to 2001 Number of pucca houses doubled from 22% to 41% and kucchahouses halved (41% to 23%)

Percentage of BPL families declined from 46% to 27%

Rural Literacy level improved from 36% to 59%

But Rural India Offers Huge potential

Growth from Rural India

Unilever (India) … 50% of its sales turnover of US$ 2.6 Billion is from Rural India. LG Electronics to double contribution from Rural India to US$ 1.6 Billion 53 & 59 % sales contribution for FMCG & Consumer durables respectively are from rural India .50% of subscription base for BSNL from Rural markets.India’s largest Insurance company (L.I.C) sells 50% of its policies in Rural India.60% of rediffmail.com subscribers from small towns

This market has not gone unnoticed …

High competition from Local manufacturers on price value equation.

Duplicates and Fakes have flooded this market

The Rural Spread

Population Dispersity

15.6

21.4

24.4

21.9

13.5 3.2

<200 200-500 501- 1000 1001- 2000 2001-5000 > 5000An avg. of 1 shop

For 15 villages

Source : Census Of India

Understanding this elusive consumer

Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight

9

The Rural Indian .. Male

Religious

Prefers to work hard Himself

Strong Family ties

Supports a family of six

Seeking Economy

Loves chatting with friendsAbout politics & trade affairs

Plays cards & Hangs out At Choupal

A Day in his life Up at 5.30

Trading

Field workField work

..my biggest assets.. Cattle

Prepare fodder

Take a bath, wash my clothes ..if needed !

Off to the fields

Chatting with friendsin evenings

The Rural Indian .. Woman

Religious

Guilt about spending on

Self

Conservative

Manages home and Assists husband in farm

Disturbed by vulgarity

Secretly seeks to be beautiful

Supports children

A Day in Her Life Women

ChildrenMy children's school Children help on fieldsGirl child helps at home

Preparing food for the family Alternative occupationsWomen help in the fields

Shopping habits

Buy small quantities - more frequently

Unit Price Critical Look for ‘acceptable performance”

- VFM

Make high-volume purchases

at weekly village markets

Personal acquaintance withneighborhood retailer-Only Influencer - Provides credit

What drives this consumer ..

Small packs with a low unit price – Britannia - Tiger biscuits– Cavin Kare - Chik shampoo– Coke (Small Coke for Rs. 5 only)

A little (of the product) goes a long way– Rin detergent bar claims that with just a little Rin, you can get

a whole lot of wash

Multiple uses from the same product– Dettol liquid for cuts, gargle for bad throat, washing clothes

as a disinfectant , dandruff etc– Jet mosquito coil for mosquito repellent and room freshener

Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight

10

Drivers for choice ..

Opinion leaders– If they are credible, they work– Sunlight detergent powder employs a doctor to endorse the

brand – Colgate dental cream endorsed by a doctor– Sarpanch - Anti Leprosy

Folklore and natural ingredients– Ganga soap claims that it contains milk and is made from the

water of Ganga, a river revered as holy by the majority of India’s Hindu population.

Therefore …

We have an emerging marketWhere Brands can establish themselves early .. But are riddled with problems of the 4 A’s

– Awareness– Availability – Acceptability – Affordability

Where can we touch the rural consumer

Touch Points..

At Home At Home At Work At Work

Touch Points..

At At Chaupals Chaupals Travel Travel

Touch Points

Mandi Mandi (Trade Places)(Trade Places) Retail Outlets Retail Outlets

Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight

11

Touch Points ..

Schools Schools Haats Haats (Periodic Markets)(Periodic Markets)

Touch Points ..

Source of water Source of water Places of WorshipPlaces of Worship

Communicating to the Rural Consumer

Communication Medium: One on One contact

One on One contact programs are extremely efficient manner to reach the Rural Consumer

Provides an opportunity to

– Demonstrate– Induce Trial– Educate

Personal Interface Personal Interface

Communication Medium Events - Using Culture to touch a chord

Communication Medium Events - Folk entertainment

Ragini - MPRamayan - UP

Qawwalli - UPMagic Show

Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight

12

Communication Medium Haats - Presence in the Market

42000 rural haats (supermarkets)4500+ Visitors per haat.Average Sales per day US$ 5000300+ Sales outlets/haat.

Unilever India – Haats

1. TG interaction2. Exchange offer3. Spot sales

1

3 2

Communication Medium: Events : Melas

25000+ Melas held every year.850+ outlets per Mela.Average sales per Mela: US$ 400000.Melas are for Religious/festive/tradingAnnual sale : US $ 1 Billion Nearly half the outlets are for manufactured goods Exposure at a low cost per contact

Provides Unique platform for communicating to rural Masses. An opportunity to present Brand Stories using better Display tools

– Large Screens – Animations – Gizmos

Larger retention time – Multiple Interactive games– Talent Hunt etc

Melas can be used for – Retail Sales Points – Sampling Exercise – Demonstration

Screening at Kumbh

Communication Medium: Events : Melas

Maha Kumbh

Clients– Unilever , Titan, Ministry of Environment, Medimix, GM Pens, Cavin

Care, Anchor, Khaitan, Maruti, Tata Tea

Achievements– Largest sampling exercise ever done;

Fair & Lovely sachets distributed to 4.1 million25000 packs worth 10560 family photographs taken as incentive

– 4 million people exposed through large screens– 15.8 million people exposed through branding of “Prayag” railway station– 17.4 million people exposed through branding of “Naini” railway station– 18 watches sold per day as against an average sale of 38 watches per

month by the local dealer

sampling

Sampling Branding at Prayag Station

Branding at Prayag Station Giant Screen

Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight

13

Communication Medium: Static Media

LG Wall Paintings

Vicks Buntings

Shopboards

Tinplates

Other Branding OpportunitiesPostal Stationery

Other Branding options … Giveaways

Family Snap

Umbrella

Choosing Media Vehicles

Tin Plating – Trees/ShopsLeafletsPostersBannersStreamers/Danglers

Co-operative Notice BoardShop Front PaintingTin Plating – HouseDealer BoardsVillage BoardsWell TilesCalendars/Lables

Van Based AdvertisingMelasDirect to HomeFolklore groupsExhibitions/Created events

Jeep based advertisingWall PaintingBus StandBus PanelsHaatsHoardingsPostal branding

Hig

hRe

ach

Low

Reac

h

High Frequency Low Frequency

Challenges in the future Challenges in the Future

Making effective use of the large available infrastructure

Post offices 1,38,000Haats (periodic markets) 42,000Melas (exhibitions) 25,000Mandis (agri markets) 7,000Public distribution shops 3,80,000Bank branches 32,000

Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight

14

Using IT to transform markets

ITCs e- choupal and other IT initiatives (EID parry, Amul dairy information system kiosk)

STD revolution/ mobile connectivity

Challenges in the Future

Proliferation of large format rural retail storesDSCL Haryali storesM & M Shubh Labh storesTATA/Rallis Kisan KendrasEscorts rural storesWarnabazaar, Maharashtra (annual sale Rs 40 crore)

Rural IndiaRural IndiaRural India

Irrigation1 Mn hectaresIrrigationIrrigation

1 Mn hectares1 Mn hectares

Drinking Water74,000 Habitations Drinking WaterDrinking Water74,000 Habitations 74,000 Habitations

RoadsVillages with 1000

population

RoadsRoadsVillages with 1000Villages with 1000

populationpopulation

Electrification125,000 Villagesi.e. 23 Mn more

people

ElectrificationElectrification125,000 Villages125,000 Villagesi.e. 23 Mn morei.e. 23 Mn more

peoplepeople

Housing6 Mn housesHousingHousing6 Mn houses6 Mn houses

Telephones 67,000 Villages

Telephones Telephones 67,000 Villages 67,000 Villages

Bharat Nirman Yojana [A 40 Bn US $ Plan To Be Implemented By 2009]

Rural Quotes

The future lies with those companies who see the poor as their customers.

CK Prahalad to Indian CEO's, Jan 2000.

To get rich, sell to the poor.Pradeep Kashyap.

Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight
Aj
Highlight