RURAL

MARKETING
VIDEO
RURAL MARKETING
RURAL INDIA- FOUNDATION FOR ECONOMIC
GROWTH AND ITS IMPACT DURING ECONOMIC
CRISIS

GROUP-2 Abhimanyu
Ayush
Priya
Smriti
Kush
Nitin
 What is Economic Growth

 Quantity of goods and services produced

 Process by which a nation's wealth increases over time

 Influenced by natural resources, human resources,

capital resources, and technological development
 INDICATORS OF
ECONOMIC GROWTH
 Gross Domestic Product

 Rate of inflation

 Industrial growth

 Foreign Institutional Investors

 Foreign Direct Investment

 WHY RURAL INDIA
 742 Millon people

 Rural is bigger than urban

 The growth in rural markets are zooming faster than the urban markets
at 25%

 Want of gradual urbanization

 Growth in number of establishments

VIDEO
IT HAS POTENTIAL

SOCIO ECONOMIC CHANGES

INCREASE IN LITRACY LEVEL

INFRASTUCTURE FACILITIES

INCREASE IN INCOME

INCREASE IN EXPECTATION
CONTRIBUTION RURAL MARKET
OF UNION ACCOUNTS FOR 8
BUDGET(NREGA) BILLION

GROWTH IN
NON FARM
SECTOR
 TREND OF
RURAL URBAN
GRADUAL
LINKAGE
URBANIZATION

FALL IN RURAL-
URBAN
MIGRATION
Estimated annual size of the rural market

SECTOR Annual share

FMCG Rs 65,000 Crores

Durables Rs 5,000 Crores

Agri-inputs (incl. tractors) Rs 45,000 Crores

2 / 4 wheelers Rs 8,000 Crores

Total Rs 1,23,000 Crores

 A NEW RURAL
ECONOMY
3 Conclusions
 CSO data
indicates
that number
of
establishmen
ts has
increased Increase in non farm job
opportunities
Helped to control
livelihood-driven
Share of rural
migration to cities
India in total
GDP has
increased
 Rural vs Urban
 No of middle class house holds

(income between Rs. 45000- 215000)

Rural 27.4 million

Urban 29.5 million

 Per capita annual income

Rural Rs.9481

Urban Rs.19407

 Rural incomes CAGR was 10.95% compared to 10.74% in urban

between 1970-71 and 1993-94

source: ETIG
 INFRASTRUCTURE
IMPROVING
 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.
IMPRESSIVE FACTS ABOUT
RURAL MARKET
LIC sold 55% of its policies to rural market

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)
 Contd …..

 41 Million kisan credit cards

 Of 20 million rediffmail sign-ups 60% from rural india

 42 million avail banking services

 Investment in formal saving instruments

It is already showing signs of growth

 CHALLENGES

 DISTRIBUTION

 COMMUNICATION

 UNDERSTANDING THE RURAL CONSUMER

Economic Crisis

Recession

Impact on India

Strategies adopted
to escape the
negative impact of
recession
 Economic Crisis

 Many experts think that it is mirage of prosperity

 Prosperity is restricted to only the places where money is

concentrated
 Lack of basic and adequate infrastructure

 Age old vicious poverty cycle

 Limited livelihood opportunities

 Agriculture – stagnation and high dependence on monsoons.

 There has been stagnation in the level of public investment in

rural infrastructure in India
 Role during economic crisis

 Study commissioned by RMAI and done by MART

 The rural consumer market grew by 25% even

during recession
 Many corporates tried to enter into the rural
markets to shield against recession
INNOVATIVE STRATEGIES
USED BY COMPANIES
MARUTI SUZUKI’S “GHAR GHAR
MEIN MARUTI”
HERO HONDA “HAR GAON
HAR AANGAN”

BHARTI AIRTEL
TATA TEA
VIDEO
WAYS TO BOOST THE ECONOMY
THROUGH RURAL MARKET
Understanding The Consumer

BUYS DISTRIBUT
BUYS
HETEROGE
PRODUCTS ION AND
SMALL
NOUS
MORE PRICING
PACKS
PRODUCTS
OFTEN ARE KEY
 VALUE FOR MONEY, NOT CHEAP PRODUCTS
MAKING EFFECTIVE USE OF LARGE
INFRASTUCTURE

 Post offices 1,38,000

 Haats (periodic markets) 42,000
 Melas (exhibitions) 25,000
 Mandis (agri markets) 7,000
 Public distribution shops 3,80,000
Using IT to Transform Markets

 ITC’s e-choupal and other IT initiatives (EID parry,

Amul dairy information system kiosk)

 STD revolution/ mobile connectivity

 Strategies already undertaken
Integrated Rural Development Program (IRBD)

Wage Employment Programs

Employment Assurance Scheme (EAS

Food for Work Program

Rural Housing

Social Security Programs

 Future
strategies
Promote
private sector
participation

Priority to
location and Multi agency
economic viable approach
technology

People
Farming
participation in
research
decision
system
making
Capacity
 RURAL DEVELOPMENT CAN
BE COINED IN 20 POINTS
 I-Increase in irrigation potential

 P-Pulses oilseeds development

 R-Rural development

 O-Observe equitable distribution of lands

 M-Minimum wage payment

 I-Independence to bonded labour

 S-Scheduled castes welfare

 E-Essential water supply

 R-Rural housing

 U-Urban housing

 R-Rural electrification

 A-Afforestation

 L-Lever for family welfare

 W-Wealth through health

 E-Eradicating malnutrition

 L-Literacy promotion

 F-Fair price shops

 A-Accelerate rural industrial growth

 R-Restrain anti-social elements

 E-Efficiency in rural sector

 CONCLUSION

 “Although rural India provides plenty of scope for

cautious optimism, a more realistic perception of
rural India will emerge over time as corporates and
government realize that rural India will not give
them rapid earnings growth, but a more resilient
earnings profile across the business cycle.”