Introduction of Rurql Market

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INTRODUCTION OFINTRODUCTION OF

RURAL MARKETRURAL MARKET

Any market that exists in a area whereAny market that exists in a area where

the population is less than 10000the population is less than 10000

70% of population in rural India70% of population in rural India



Defining rural indiaDefining rural india

L.G.L.G. -- All places other than the 7 metros All places other than the 7 metros

Nabard .Nabard .-- All locations with a population up to All locations with a population up to

10000 considered ´ruralµ10000 considered ´ruralµ



Growth of rural marketGrowth of rural market

Estimated annual size of the ruralEstimated annual size of the rural

marketmarket

FMCGFMCG 65000 CR .65000 CR .

DUR ABLESDUR ABLES 5000CR .5000 CR .

AGRI INPUTS AGRI INPUTS 45000 CR .45000 CR .

2 /4 WHEELER S2 /4 WHEELER S 8000 CR .8000 CR .



CONT«««.CONT«««.

20012001 ² ² 02 LIC sold 55% of its polices02 LIC sold 55% of its polices

41 million kissan credit card have been issued41 million kissan credit card have been issued

6.0 lakh villages ,5.22 lakh have a (vpt)6.0 lakh villages ,5.22 lakh have a (vpt) 42 million rural households are availing banking 42 million rural households are availing banking

servicesservices

R ural india buys 46% of all soft drinks sold in theR ural india buys 46% of all soft drinks sold in the

countriescountries 49% of motorcycles & 59% cigarettes49% of motorcycles & 59% cigarettes

11%of rural women use lipstick 11%of rural women use lipstick



Opportunities..Opportunities..

Infrastructure improving rapidly Infrastructure improving rapidly

R ural literacy level improved from 36% to 59%R ural literacy level improved from 36% to 59%

In fifty years only 40% villages have beenIn fifty years only 40% villages have beenconnected by roadconnected by road



Powerful brands in rural marketPowerful brands in rural market

Chick shampooChick shampoo

Ghadi detergentGhadi detergent



Why com panies go to rural market Why com panies go to rural market

Un tabbed marketUn tabbed market

Cost effectiveCost effective

Increase sales volumeIncrease sales volume Less competitionLess competition



V arious com panies initiative in V arious com panies initiative in

rural marketrural market Hero HondaHero Honda Kotak Kotak MahindraMahindra Vim bar Vim bar

NokiaNokia Coca colaCoca cola ItcItc Asian paints Asian paints

IdeaIdea CastrolCastrol HpclHpcl



Hero HondaHero Honda

Test drive Test drive

On the sport finance by kotak MahindraOn the sport finance by kotak Mahindra



V im Bar V im Bar

Face competition from R in supremeFace competition from R in supreme

CustomizationCustomization

Promotion strategy Promotion strategy Variety Variety



NOKIA NOKIA

Nokia began its focus on the rural market inNokia began its focus on the rural market in

20032003

Nokia provide NLT service(Nokia life tools)Nokia provide NLT service(Nokia life tools)

Nokia on the first positionNokia on the first position



NokiaNokia

Variety of product Variety of product

low Pricelow Price

Airtel sim free with nokia cell phone Airtel sim free with nokia cell phone



LO W PR ICE CELLPHONELO W PR ICE CELLPHONE



NEW PR ODUC TS AND SER V ICESNEW PR ODUC TS AND SER V ICES

TEACHING THEM TO USE CELL TEACHING THEM TO USE CELLPHONESPHONES



NOKIA RUR A L M A R K E TNOKIA RUR A L M A R K E T



Coca colaCoca cola

´THANDA M ATLABH COC A COLAµ´THANDA M ATLABH COC A COLAµ

COC A COLA C APTUR E 17.34% R UR ALCOC A COLA C APTUR E 17.34% R UR ALM

AR

KET TILL 2009.

M AR

KET TILL 2009.

Cool Amir Khan ADS,COCA COLA.flv



EE--CH A UP A LCH A UP A L

This concept aims to This concept aims to

Provide the power of expert knowledgeProvide the power of expert knowledge

to even the smallest farmerto even the smallest farmer

Information helps farmers secures better price,Information helps farmers secures better price,quality and productivity quality and productivity



EE ² ² Chou palChou pal

Benefits to farmers includeBenefits to farmers include

Better purchase price of Better purchase price of agriagri--inputsinputs

Avail information on best farming practices Avail information on best farming practices

Command prevailing market pricesCommand prevailing market prices

4 million farmers benefited through 6,5004 million farmers benefited through 6,500

installations covering around 40,000 villagesinstallations covering around 40,000 villages



. .

IDE A BEHIND CH A UP A L S AGA R IDE A BEHIND CH A UP A L S AGA R

----M

AKE THE POTENTI

ALC

USTOM

ER

SM

AKE THE POTENTI

ALC

USTOM

ER

S

----PR OV IDE DIFFER ENT CUSTOMER PR OV IDE DIFFER ENT CUSTOMER SER V ICESSER V ICES

----R EAP THE BENEFI T FR OM POTENTI ALR EAP THE BENEFI T FR OM POTENTI ALCUSTOMER CUSTOMER



FUTURE PLANNINGFUTURE PLANNING

ESTABLISHMENT OF ATMs AT M ALLSESTABLISHMENT OF ATMs AT M ALLS

AVAILIBILI TY OF INSUR ANCE PR ODUC TS FOR F ARMER S AVAILIBILI TY OF INSUR ANCE PR ODUC TS FOR F ARMER S

TIE W I TH PRI VATE HEALTHC AR E SER V ICE PR OV IDER FOR TIE W I TH PRI VATE HEALTHC AR E SER V ICE PR OV IDER FOR PRIM AR Y HEALTH C AR E F ACILI TY PRIM AR Y HEALTH C AR E F ACILI TY

TIE W I TH BPCL FOR FUEL PUMPS TIE W I TH BPCL FOR FUEL PUMPS

ESTABLISHMENT OF SOIL TESTING LABOR ATRIESESTABLISHMENT OF SOIL TESTING LABOR ATRIES

PUBLIC ENTER TAINMENTPUBLIC ENTER TAINMENT



IDE A IDE A

Has a customer base of over 17 million.Has a customer base of over 17 million.

Promotional Strategy ( A n Idea can change your life!)Promotional Strategy ( A n Idea can change your life!)

¶Idea· as an instrument of democracy, bringing power to the¶Idea· as an instrument of democracy, bringing power to thepeople.people.

Social messaging to reach the hearts and minds of rural India.Social messaging to reach the hearts and minds of rural India.

Abhishek Bachchan Abhishek Bachchan-- presented as a humble public servant, anpresented as a humble public servant, anagent of change.agent of change.



idea c ercial ad.flv



We don¶t consider other service providers, only IDEAworks here«´



R ural India consists of 720 Million consumersR ural India consists of 720 Million consumers

acrossacross 6,38,0006,38,000 villages villages

Extensive reach is required as to cover 50%Extensive reach is required as to cover 50%market 1,00,000 villages must be cateredmarket 1,00,000 villages must be catered

Immense opportunity amounting toImmense opportunity amounting to US$ 125US$ 125

billionbillion

R E TAIL TO W A R DS RUR A L A R E A SR E TAIL TO W A R DS RUR A L A R E A S



Cont«««..Cont«««..

R ural R etail is growing @ 7% p.a.R ural R etail is growing @ 7% p.a.

R ural consumption is also shifting from basicR ural consumption is also shifting from basic

food grains to fruits, vegetables, dairy andfood grains to fruits, vegetables, dairy and

poultry products, as well as beveragespoultry products, as well as beverages

Demand for better quality food leading to hugeDemand for better quality food leading to huge

demand for basic foodsdemand for basic foods



THE INDIAN RURAL MARKETTHE INDIAN RURAL MARKET

The Rs 140,000The Rs 140,000 crorecrore rural retail market isrural retail market isexpected to cross Rs 180,000expected to cross Rs 180,000 crorecrore markmarkby 2010, And up to Rs 240, 000by 2010, And up to Rs 240, 000 crorecrore byby20152015

The rural revolution is driven by The rural revolution is driven by R R ising purchasing power,ising purchasing power,

Changing consumption patterns,Changing consumption patterns,



RUR A L OCCUP ATIONRUR A L OCCUP ATION

OCCUP ATIONS UR B AN RUR A L

Cultivator 5 40

Petty

Sho pkee per

15 5

Wage

earner

20 35

Salaryearner

40 20

Others 18 8



SIGNIFICANT PL AY ER SSIGNIFICANT PL AY ER S

GODR EJ ADHAR GODR EJ ADHAR

HAR YALI K ISAN BAZZAR HAR YALI K ISAN BAZZAR



GodrejGodrej A adhar A adhar

FORM AT OF GODR EJ ADHAR FORM AT OF GODR EJ ADHAR

FMCG products, fertilizers, animal feed, etc.FMCG products, fertilizers, animal feed, etc.

Services like banking, insurance, pharmacy,Services like banking, insurance, pharmacy,postal services and petrol pumpspostal services and petrol pumps



OPER ATIONSOPER ATIONS

24 outlets in eight rural locations across the country and each outlet services 20 villages in its vicinity

Godrej Aadhar has already forged JVs with Apollo Pharmacy, Tata Agrico, Bajaj Allianz Life Insurance and HPCL for value added services at the outlets.

The company plans to set up more than 1,000 stores by 2010.



The Trusted R ural Business Hub The Trusted R ural Business Hub

Help the customer increase his income, educateHelp the customer increase his income, educate

the customer, before you sell to the customerthe customer, before you sell to the customer

H A R IYA LI KIS AN B AZAA R H A R IYA LI KIS AN B AZAA R



Triggering Rural economyTriggering Rural economy

Creates Purchasing Power by focusing on increasing Creates Purchasing Power by focusing on increasing Income LevelsIncome Levels



IT IN RUR A L M A R K E TIT IN RUR A L M A R K E T



CH A LLENGES IN RUR A L CH A LLENGES IN RUR A L

M A R K E TINGM A

R K E TING

LOW LI TR EAC Y LOW LI TR EAC Y

COMMUNIC ATION PR OBLEMCOMMUNIC ATION PR OBLEM

SEASONAL DEM ANDSEASONAL DEM AND TR ANSPOR TATION TR ANSPOR TATION

MEDI A FOR PR OMOTIONMEDI A FOR PR OMOTION

BUY ING DECISIONSBUY ING DECISIONS DISTRIBUTIONDISTRIBUTION



TTHHA A NNKKSS

TTHHA A NNKKSS April 14, 2010 37

Introduction of Rurql Market

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