how to tap the rural Indian market , what should be the strategy and step should be take by the company ...........

1. TAPPING
THE
RURAL
MARKETS
ASBM/10-12
PRESENTED BY-
AKASH AGRAWAL
& PAWAN KUMAR

2. Paying
Intermed,
30%
Food, 40%
Social
Liabilities,
15%
Health,
15%
Average Income: $ 50 per month

3.  Rural markets, as part of any economy, have untapped
potential. There are several difficulties confronting the
effort to fully explore rural markets. The concept of
rural markets in India, as also in several other
countries, like China, is still in evolving shape, and the
sector poses a variety of challenges, including
understanding the dynamics of the rural markets and
strategies to supply and satisfy the rural consumers.

7.  Under developed people and underdeveloped market .
 Lack of physical communication facilities .
 Media for rural communication.
 Many language and dialects.
 Prevalence of spurious brands and seasonal demad.
 Different way of thinking .
 Banking and credit problems

8.  The rural consumer is savvy and demands real
“value for money”

11. Urban Rural
Food 51.5 63.7
Consumer goods 19.6 13.1
Fuel, clothing & foot wear 13.9 14.8
Medical 5.5 5.5
Education 5.1 2.5
Rent & taxes 4.5 0.4
Source: Household Consumer
Expenditure 2009

14. First and the foremost challenge
India's 6,38,365 villages are spread over 3.2 mn.sq.kms.
720 mn people-reaching them is not easy
Given the poor state of roads ,it is an even greater
challenge.

16.  With low disposable incomes, products need to be
affordable to rural consumers ,most of them are on
daily wages.
 Some companies have addressed the affordability
problem by introducing small unit packs :
GODREJ Introduced Cinthol and Fairglow in 50 gram
packs priced at rs.4
coca-cola introduced Sunfill ( a powdered soft
drink concentrate ) 25 gram pack priced at rs.2

17. Next challenge is to gain acceptability for the
product or service.
Therefore there is a need to offer products that suit the
rural markets and conditions.
coca-cola is providing low cost ice-boxes
because of the lack of electricity and refrigerators
in the rural areas.

18.  With large parts of rural India inaccessible to
conventional advertising media, building awareness is
another challenge.

20.  The company’s e-chaupal initiative is a novel idea which
bypasses the brokers between the Company and the
farmers.

21.  It is helping Indian agriculture to enhance its
competitiveness by empowering Indian farmers through
the power of internet .
 This unique transformational strategy has become the
subject matter of a case study at Harvard b school ,has
created for I.T.C a huge rural distribution infrastructure
, significantly enhancing the company’s marketing reach

22.  Financial Inclusion  Kisan Credit Card