television in rural india

8/4/2019 Television in Rural India

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By Jarryd J. Menezes

Roll no. 80



Acknowledgements

Firstly I would like to thank Mr. Samarjith Padhi, for setting this educational topic

and providing constant supervision and knowledge through exceptional marketingmanagement lectures.

I would also like to express my gratitude to my parents for all their support and

encouragement.

Also many thanks to my fellow classmates who provided me with lots of help andhealthy competition which lead to the completion of this project.



Contents

An Overview of Rural India



An Overview of Rural India

Rural India constitutes „the heart of India‟, generating almost half of the countries national

income. According to the National Council of Applied Economic Research (NCAER), about74% of its population is living in its villages. India has perhaps the largest potential market in the

world.

A potential of 742 million rural consumers live in 638,365 villages across India. Rising incomes,

improving infrastructure, and favorable government policies offer huge potential for rural

marketing. As a result of the growing affluence, rural India has a large consuming class with 46

per cent of India‟s middle-class and 58 per cent of the total disposable income.

The “GREEN REVOLTION” has in turn brought a socioeconomic revolution in Indian villages.

On account of the green revolution the rural areas are consuming a large quantity of not just the

essential commodities but premium products as well. The younger generation in rural areas is

now spending more on luxury products.

A report by Technopak Consultants and the Confederation of Indian Industries, a trade body,

estimates that the country‟s rural consumer market generated US$425 billion of revenue, up from

US$266 billion the previous year.



Features of a Rural Market

According to the Census of India 2001, there are more than 4,000 towns in the country. It has

classified them into six categories, class-I towns with one lakh and above population, class-IItowns with 50,000-99,999 population, class-III towns with 20,000-50,000 population and class-

IV towns with 10,000-19,999 population

Large and Scattered market:

The rural market of India is large and scattered in the sense that it consists of over 63

crore consumers from 5,70,000 villages spread throughout the country.

Major income from agriculture: Nearly 60 % of the rural income is from agriculture. Hence rural prosperity is tied with

agricultural prosperity.

Low standard of living:

The consumer in the village area do have a low standard of living because of low literacy,

low per capita income, social backwardness, low savings, etc.

Traditional Outlook:

The rural consumer values old customs and tradition. They do not prefer changes.

Diverse socio-economic backwardness:

Rural consumers have diverse socio-economic backwardness. This is different in

different parts of the country.

Infrastructure Facilities:

The Infrastructure Facilities like roads, warehouses, communication system, financial

facilities are inadequate in rural areas. Hence physical distribution becomes costly due to

inadequate Infrastructure facilities.



The Consumer Electronics and TV Manufacturers Association expects a growth rate of 25 per

cent for television in the rural markets compared to 5 percent growth in urban markets.

Electrification of villages and increase in awareness among the people, a good harvest and a

booming economy drive these growth trends. The growth in television market is also because of

low penetration levels of the product in the market.

The vast untapped potential, increasing income and purchasing power, improved accessibility

and the increasing competition in urban markets make rural markets an attractive destination for

jaded marketers of products and services. Entry into rural markets reduces the risk of depending

only on the urban market.

Present Share of Indian Television Market



Cinevision: An Outlook

One of the main challenges faced on the road to rural marketing of Cinevision was the

reduction in price. To suit the needs of lower disposable income levels of the rural peoplethe price of Cinevision TV‟s were highly debated. The increases in the standar d of living

of rural India and the demand by the younger generations have proved helpful in this

cause. Hence the price of the TV is now available at a mere

Rs.7000 for 21 inches

and Rs 11,000 for 29 inches

much lower than the equivalent products from other firms like Philips, Samsung.

Majority of rural consumers do now know English and hence were not in a position to

use all the features of any normal television, however good the TV may be.

Cinevision TV‟s put in time and funding into research for developing a unit that would

have on-screen-displays in the vernacular languages of Hindi, Tamil and Bengali.

Many rural people are unfamiliar with English and would be able to use Cinevision‟s

product without feeling intimidated and would feel proud that this product had been

developed keeping them in mind.

As the signal quality is poor in rural India, LG integrated the technology feature which

would give better picture and quality sound overcoming that obstacle.



Bibliography

Wikipedia

www.indiantelevision.com

Search engines – Google, Yahoo etc.

television in rural india

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