Accenture presents Consulting Knights at Intaglio 2012 (IIM Calcutta International Business Summit)

Copyright 2011 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Accenture Management Consulting: Case Overview

Do you know the cause behind the tremendous growth in rural purchasing power?

Do you know the share of contribution of rural markets to leading companies?

Do you know the potential of the opportunities across value chains in rural markets? Do you know what make the rural markets highly attractive for investing opportunities? Do you know the key barriers that hamper entry into rural markets?

The challenge for the participants is to scope the impact of rural marketing for a company, devise the implementation strategy, measure the impact and project the benefits. Here is what you need to do: Choose any industry in India Choose a company in the industry Draft a strategy for the company on how they can use Rural Marketing to redefine their competitive advantage Project the benefits of adopting Rural Marketing

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Case background

2011 Accenture All Rights Reserved.

The concept of Rural Marketing in India Economy has always played an influential role in the lives of people
Understanding Rural Marketing

The rural market in Indian economy generates almost more than half of the country's income. Rural marketing in Indian economy can be classified under two broad categories. These are: The market for consumer goods that comprise of both durable and non-durable goods The market for agricultural inputs that include fertilizers, pesticides, seeds etc Though the concept of Rural Marketing is often associated with agricultural marketing, Rural Marketing is defined as any marketing activity in which one dominant participant is from a rural area. This implies that rural marketing consists of marketing of inputs (products or services) to the rural as well as marketing of outputs from the rural markets to other geographical areas. To be precise, Rural Marketing in India Economy covers two broad sections, namely: Selling of agricultural items in the urban areas Selling of manufactured products in the rural regions

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There has been significant increase in the business confidence in rural markets on the back of multifold increase in rural purchasing power

Rise in Purchasing Power

The increase in rural purchasing power is reflected in many ways: Rural incomes have been growing at more than 7 percent over

Auto- Share of Rural market as % of All India

47% 39% 40% 30% 40% 48%

2% Scooters 1995-96 Motorcycles 2001-02 2009-10

8%

11%

the past few years, helping to account for almost 40 percent of

Indias total consumption of goods and services Non-food expenditures are growing at an 8.2 percent annual compound rate Rural households are purchasing a wide range of products cars, flat-screen televisions, microwavesthat until recently would have been beyond their reach Fifty percent of revenues from the FMCG sector now come from rural sales
Shampoos Toilet Soaps 1995-96 Washing Cakes Washing Powder 2001-02 2009-10 27% 50% 53% 32% 33% 55% Cars/Jeeps

FMCG- Share of Rural market as % of All India

69% 71% 76% 50% 51% 55%

In the case of the telecom sector, subscriber base in the semiurban and rural markets (Circle C geographies) has grown at a phenomenal 98 percent over the last five years in comparison to other circles representing metros
1.70%

Total Tele density

88.70% 26.20% 102.80%

14.80% 18.50%

Source: Accenture Analysis

Rural 2004-05 2008-09

Urban 2009-10

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Today, businesses are confident about the opportunities that rural India has to offer and plan to strengthen their presence in semi urban and rural areas over the medium to long term
Increasing business confidence in Rural Markets
More than half of Accentures survey respondents foresee 20 to 50 percent of their revenues coming from the rural market over the next three years. And, more than 65 percent of the organizations
Tapping into new consumer markets
54

Rural Markets offer opportunities across value chain (% of respondents)

21 16
72

surveyed have already invested in rural India, in

some cases more than five years ago

Sourcing raw materials cost efficiently

42

21

23

8 6

Match competitors strategy Invested in rural markets for more than 5 years Investments in the last 3 to 5 years Investments in the last 1 to 3 years Plan to invest witihn the next 3 years 23% Getting access to cheap labour pool

38

31

23

26

36

29

20

6 9

22%
Fulfill corporate commitment 21% Saturation in urban markets 22%
28 36

41

15

62

29

18

17

No plans to invest

12%

BenefitingBenefitting from Govt. support

27

41

21

2 9

V. Relevant Accenture. All rights reserved.

Source: Accenture Analysis

Not Relevant 6

There are distinctive capabilities that aid companies to achieve high performance in rural markets

Key imperatives for profitable and sustainable growth in rural markets (% of respondents)

Supply chain and distribution efficiency

49

39

9 3

0
Product localisation and innovation

46

26

13

6 9

Pricing

39

38

18

2
Customer Services

38

30

26

4 2

Collaborative services

35

36

23

5 1

Very Important

Not important

Source: Accenture Analysis

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Deliverables required
Participants are required to do the following Choose any particular industry in India which can use Rural Marketing effectively Choose a company in the industry Draft a strategy for the company on how they can use Rural Marketing to redefine their competitive advantage. The strategy can include applications to Marketing, Supply Chain, Sales and Distribution, Business development etc.

Stage 1 Deliverables (5 slide presentation) Tentative date: 23rd December 2011 Choice of industry with rationale Company definition For whom the strategy would be defined Executive summary of Opportunity assessment Go to Market/ Implementation Approach methodology Expected final output

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Deliverables required (Contd.)

Stage 2 Deliverables Tentative Date: 5th January 2012 Strategy definition Business case for strategy

Go To Market/Implementation Plan
Identification of key success factors Potential Benefit to the company Risk assessment in current plan Other supporting industry analyses to support the recommendation (as relevant)

Please ensure that you undertake the necessary primary and secondary research effort needed to support your ideas.

All the best!

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Terms & Conditions (Contd.)

The winners will be notified by Accenture on the day of the event organized by IIM C. The winner is asked to share their personal details, an e-mail address or such contact details for which Accenture could courier the gift if required. Accenture maintains the personal information shared as per the Accenture Privacy Policy, please read the following link http://www.accenture.com/us-en/Pages/privacy-policy.aspx Accenture reserves the right to replace the Prize(s) with item(s) of similar value in case of unavailability. Late, illegible, incomplete, defaced or corrupt entries will not be accepted. All prizes are non transferable and there are no cash alternatives. Prizes will only be delivered within India