Is there a business in rural markets
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Transcript of Is there a business in rural markets
India lives in its villages.India lives in its villages.
Is there a Business Is there a Business in Rural Markets?in Rural Markets?
Pharma Marketing Conference, IDMA, Chennai, 19 May 2012.
Dr Surinder Kumar
69 %
69 %83 Crores of 121 Crores
Image: wikimedia
Image: Adam Jones
Image: Banana Chippy
Image: IndiaAfrica connect.in
Image: IndiaAfrica connect.in
91.21
64.67
0
10
20
30
40
50
60
70
80
90
100
Rural Urban
Census 2011, Number in Million
Image: Youthkiawaaz
8.64
14.72
0
2
4
68
10
12
14
16
Rural Urban
Census 2011, Number in Million
Image: Youthkiawaaz
56.0060.50
20
25
30
35
40
45
50
55
60
65
70
Rural Urban
Rural
Urban
Census 2011, Number in Million
Planned
Spent
Value in Rs. Crores
Investment on rural developmentSource: Rural Ministry Annual Report 2012
Image: The Viewspaper
Narrowing
rural-urban divide
Image: The Viewspaper
•Better income from farmingBetter income from farming
•Increasing income from non-Increasing income from non-farming avenues and emigrantsfarming avenues and emigrants
Narrowing rural-urban divide
•Industry projects in rural areasIndustry projects in rural areas
•Infrastructure developmentInfrastructure development
•Increase Increase inin literacy and awareness literacy and awareness
•Affordability of technology & white Affordability of technology & white goodsgoods
Contd..Narrowing rural-urban divide
Is there a Business Is there a Business in Rural Markets?in Rural Markets?
There a Business There a Business in Rural Markets!in Rural Markets!
isis
32.94 32.59 31.69 31.19
28.01 29.55 30.52 30.62
19.97 20.08 19.71 18.95
19.07 17.79 18.08 19.24
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Rural
Class II-VI
Metros
Class I
2009 201220112010
IMS March 2012
Contribution by Rural Market
Metro > 10 lacsClass 1 – 1-10 LacsClass 2 – 6 – between 20,000 to 1 lacRural –not urban
11686 13622 15291 173149937 12351 14728 169987084
83929513
105176766
74358725
10678
0
10000
20000
30000
40000
50000
60000
2009 2010 2011 2012
RURAL
CLASS II TO VI
METROS
CLASS I TOWNS
Contribution by Rural Market
IMS March 2012, Value in Rs. Crores
Metro > 10 lacsClass 1 – 1-10 LacsClass 2 – 6 – between 20,000 to 1 lacRural –not urban
11686 13622 15291 173149937 12351 14728 169987084
83929513
105176766
74358725
10678
0
10000
20000
30000
40000
50000
60000
2009 2010 2011 2012
RURAL
CLASS II TO VI
METROS
CLASS I TOWNS
Contribution by Rural Market
IMS March 2012, Value in Rs. Crores
Metro > 10 lacsClass 1 – 1-10 LacsClass 2 – 6 – between 20,000 to 1 lacRural –not urban
1977 (14%)
4350(20%)
2411 (15%)
4046 (15%)4293 (14%)
2957 (16%)
Image: Evelyn Simak
Image: Evelyn Simak
Road blocks…Road blocks…
Image: The Hindu Business Line
Inadequate Inadequate Healthcare SystemHealthcare System
Image: The Hindu Business Line
Image: Chattopadhyay
Image: Chattopadhyay
Lack of Awareness
Lack of Affordability
Image: Vrittiimedia.com
Pharmacy
12 KM
Image: Vrittiimedia.com
Pharmacy
12 KM
Poor AccessibilityPoor Accessibility
•Improve Healthcare SystemImprove Healthcare System
•Create AwarenessCreate Awareness
•Provide AffordabilityProvide Affordability
•Ensure AccessibilityEnsure Accessibility
Improving Healthcare System
•Partnering with government, NGOs and other key stake holders
• Training rural doctors and supporting staff
•Providing microfinance to doctors, retails, etc. to create healthcare infrastructure
Improving Healthcare System
Example
•MSD India launched Project Transcend, a program to train GPs on evidence based management of diabetes.•Sanofi Aventis’ PRAYAS, a program to meet rural India’s healthcare needs and to bridge the gap by training rural doctors, plan to train150000 doctors across India.
Creating Awareness
•Educating rural masses about safe and reliable remedies for common ailments
•Partnering with rural institutions and NGOs
•Making use of annuals fairs, weekly haats and mandis to spread awareness
Creating Awareness - Examples
•Novo Nordisk Education Foundation is undertaking massive diabetes control program that involves screening, spreading awareness and training doctors.
•SPARSH, a multilingual helpline for diabetics to support Januvia and Janumet.
•NPL had run ‘Teach more, reach more’ campaign to educate masses about epilepsy.
•J&J’s Mobile health for mothers helped many.
Providing Affordability
•Making medicine more affordable
•Rural healthcare insurance
•Training medical staff
Providing AffordabilityExamples
Arogya Parivar (Healthy Family), a low-profit social initiative developed by Novartis, proved to be a commercially sustainable program. It had achieved break-even within 30 months.
Pharmacy
12 KM
Ensuring Accessibility
•Company delivery vans
•Pooling of resources by collaborations
•Developing products suitable for rough storing conditions
•Mobile clinics and mobile pharmacies
•Post offices duplicating as pharmacies
Pharmacy
12 KM
Ensuring Accessibility
Examples
Ranbaxy and Pfizer have formalized an alliance with ITC to penetrate the rural markets for their over-the-counter (OTC) products.
Indian & Multinationals in Rural Markets
• Traditionally Indian companies, especially mid- & small-size, have better penetration in rural and class II-VI markets.
• Now multinationals (Indian & foreign) are becoming more aggressive in these markets.
• Mid- & small-size companies need to be proactive to exploit the new markets created by these companies and to protect their current business.
Challenges are what make life interesting; overcoming them is what makes life meaningful.
Thank You
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http://www.surinderkumar.com