It happens only in

Rural India

“ A farmer went to near by small town to book a rent cab to attend an auspicious occasion near by village ,finding no cab available for rent he instantly purchased Brand new Mahindra Bolero”

What is Rural ……..?

Is it a place where Cattles means more than

communication ? ? ? ?

Cellular Storm With 26 mobile service provider in India with continuous growing pool of

consumer in Rural India with major chunk of business from rural population and still growing.

Satellite TV services

Almost 10 satellite TV Provider ventured in rural India catering to their Needs of profiled consumer and still growing.

Common service centers ( CSC ) One CSC equipped with Internet Telephony to service a cluster of 6 villages –

6,00,000 villages networked till date with more than 9000 CSC.

Radio Channels Total of 171 AIR FM Transmitters and 248 Private FM Radio Stations are

operational in the country majorly are operated in rural hinterland providing effective communication to the target Audiences.

Community radio channels Total 68 community channels running in India which are operated in rural India .

Is it a group of consumer having low economic status and low disposable income

What is Rural ……..?

With 742 million people, rural India is the largest potential market in the world estimated 1,25,000 crores

FMCG – 53%Rs.65,000

crores

Agri-inputs Rs.45,000

crores

2/4 wheelers Rs.8,000

crores

Consumer Durables

Rs.5,000 crores

The increase in procurement (minimum support price) MSP has contributed to a rise in rural demand. Government schemes like NREGS [National Rural Employment Guarantee Scheme, which guarantees 100 days of employment to one member of every rural household] reduced rural underemployment and raised wages. Also, farmers benefited from loan waivers [introduced in the last Union Budget]. The increase in rural purchasing power is reflected in rural growth across a number of categories.

If a farmer in rural Part of Satara earns 1 rs, all of it is his to dispose off as he pleases. The same income in the hands of an urban person, who is possibly a tech worker, is actually not 100 rs of disposable income. It is most likely 67 paise; the rest goes as tax. The farm economy, with zero-tax on farm income, creates far more disposable income. Buying power in the hands of the rural rich is higher than the buying power of the urban rich

The durables and automobile sectors contribute US$2.5 billion each, and agri-inputs (including tractors) about US$1 billion. Some 42 million rural households [use] banking services against 27 million urban households. There are 41 million Kisan credit cardholders [credit cards issued to farmers for purchase of agricultural goods] against some 22 million card users in urban markets

Total income in rural India (about 43% of total national

income) is expected to increase from around US$220 billion in 2004-2005 to US$425 billion by 2010-2011, a CAGR

of 12%

Average Monthly Per Capita Consumer Expenditure (MPCE) in 2007-08 was Rs.772 in rural India and Rs.1472 in urban India at 2007-08 prices. About 65% of the rural population had MPCE lower than the national rural average. For urban India the corresponding proportion was 66%.

The percentage of BPL ( Below Poverty Line )Have come down to 26% from

42%

In 2007-08, around one-half of the Indian rural population belonged to households with MPCE less than Rs.649. In 2006-07corresponding level of MPCE for the rural population had been estimated as Rs.580.

INDIAN INCOME

PYRAMID

2005

Forecasted 2015

What is Rural ……..?

Is it a hinterland where govt. still underestimate destitute condition of people ???

Bharat Nirman• 1,46,185 kms. of road length is proposed to be constructed . This

will benefit 66,802 unconnected eligible habitations in the country. To ensure full farm to market connectivity, it is also proposed to upgrade 1,94,132 kms. of the existing Associated Through Routes. A sum of approximately Rs.48,000 crore is proposed to be invested to achieve

Pradhan Mantri Gram Sadak Yojana

• The primary objective of the PMGSY is to provide connectivity to all the eligible unconnected habitations of more than 500 persons in the rural areas (250 persons in the hilly and desert areas) by good quality all-weather roads

Indira Awaas Yojana

• The Ministry of Rural Development is implementing Indira Awaas Yojana (IAY) with a view to providing financial assistance to the rural poor living below poverty line for construction of pucca house

RGNDWM• "Rajiv Gandhi National Drinking Water Mission (RGNDWM)- in

1991 with three key objectives:• Providing safe drinking water to all villages,• Assisting local communities to maintain sources of safe drinking

water i

Central rural sanitation

programme

• launched with the objectives of improving the quality of life of rural people and providing privacy and dignity to women. The concept of sanitation was expanded to include personal

hygiene, home sanitation, sage water and disposal of garbage, human excreta and wastewater..

National Institute of

rural development

• To examine and analyse the factors contributing to the improvement of economic and social well-being of people in rural areas on a sustainable basis with focus on the rural poor and the other disadvantaged groups through research, action

research and consultancy efforts

Rural Employment SchemeNational Rozgar

Guarantee Yojana

•National Rural Employment Guarantee Act (NREGA)-unprecedented scale. The primary objective of the Act is augmenting wage employment. Its auxiliary objective is strengthening natural resource management through works that address causes of chronic poverty like drought.

Sampoorna Grameen rozgar

yojana

•The Sampoorna Grameen Rozgar Yojana (SGRY) was launched on 25 September, 2001 by merging the on-going schemes of EAS and the JGSY with the objective of providing additional wage employment and food security, alongside creation of durable community assets in rural areas.

National Food for work Program

•The objective of the programme was to provide additional resources apart from the resources available under the Sampoorna Grameen Rozgar Yojana to 150 most backward districts of the country so that generation of supplementary wage employment and providing of food-security through creation of need based economic, social and community assets

Swarna Jayanti Gram Swarozgar Yojana

•The objective of the scheme is to bring the assisted poor families above the poverty line by organising them into Self Help Groups (SHGs) through the process of social mobilisation, their training and capacity building and provision of income generating assets through a mix of bank credit and government subsidy

Other programsCouncil for advancement

of people’s action and Rural technology

(CPART)

•Formal recognition of the role of voluntary organisations in the Seventh Plan documentled to the formation of the Council for Advancement of People's Action and Rural Technology (CAPART) in 1986, as a nodal agency for catalysing and coordinating the emerging partnership between voluntary organisations and the Government for sustainable development of rural areas.

Provision of Urban Amenity in rural

Areas (PURA)

•The objective of PURA scheme are provisioned of livlelyhood oppertunities and urban amenities in rural area to bridge Rural –Urban divide by Providing PPP framework to gram panchayat

Mid -Day Meal Scheme

•It involves provision of lunch free of cost to school-children on all working days. The key objectives of the programme are: protecting children from classroom hunger, increasing school enrolment and attendance, improved socialisation among children belonging to all castes, addressing malnutrition, and social empowerment through provision of employment to women

What is Rural ……..?

Is it a Market where Brands and corporate still suffocating???

BIJLI

SAMPOORNA

MAHASANGRAM

SAPNO KA GHAR

Launched New Refrigrtor for Rural and Semi urban market priced at 10,000

Range of TV’s with Devnagri script on display Priced at 12,000

Focusing on rural town with population less than 5000 with special economy model of color TV priced at 8000

Road Show in semi urban & Rural with mid priced consumer durables to provide Touch & Feel experience

SHAKTI

Operation JAGRUTI

Parachute

Rural initiative targeted villages population less than 2000, providing income generating opportunity through shakti vani

ASHA

OPERATION Jagruti, a village consumer contact campaign was launched with the objective of massive rural penetration targeted at the non-users and infrequent users of dentifrices.

Anti Loose Campaign and Temper proof Packaging in Smaller Variants

Low cost snacks & Beverages

E- Choupal

Chick

Chota Coke

Great Value Product

A rural shopping mall where farmers can sell their commodities and everything including cosmetics, garments, electronics, appliances and even tractors. It serves as an agri-sourcing centers, shopping centers, and facilitation centersa

Launched Coca Cola in Rs 5 with tag line “Thand Matlab Coca Cola”

US-based direct seller Amway Corporation, is looking to reverse its fortune with the launch of a range of low-priced fast moving

consumer goods (FMCG) products aimed at rural tier II & III cities.

CavinKare launched an aggressivecampaign to educate people on how to use shampoo through live ‘touch and feel’ in Rural Folks

Har Gaon Har angan

Panchayat scheme

Ghar Ghar ke pehchan

Mera sapna meri maruti

After securing its foothold in urban and semi-urban markets, it has launched a pan-India campaign — Mera Sapna Meri Maruti — to tap the vast potential of the rural market.

The promotional scheme ‘Ghar Ghar ki Pehchaan’ is aimed at taking highly accomplished product like Santro into the depth of rural India.

runs a panchayat scheme wherein it gives Rs 2,000 as incentive on every buy of a Spark

Har Gaon Har Angan seeks to build an ongoing relationship with millions of households in rural India through a network of 500 rural sales executives

Samridhi

TATA ACE MAGIC

Gold Plus

Mahindra Samriddhi, an initiative of Mahindra Farm Equipment, eyes having 600 Mahindra Samriddhi centres and five million farmers under its ambit by 2020.

Titan Industries’ GoldPlus is designed for the jewellery preferences of the semi-urban and rural Indian customer.

TATA’s Rural Transport Vehicle for Rural and Semi Urban Landscape

Utsav

Miss Palampur campaign

Met Suvidha

Kamdhenu campaign

A Range of Colour solution intended for the Rural Mass & Market

Cadbury has rolled out campaign “ Miss Palanpur “ eyeing to captured Rural Mass Market

Met Suvidha (Rural) is a participating flexible Endowment Plan that combines savings and security to Rural Masses

The Kamdhenu campaign, a unique high-impact marketing and sales campaign through cattle loans to farmers

Arogya parivar

Hume Jitna Hain

Elvista

initiative to build a sustainable, profitable business that improves access to healthcare among the underserved millions in rural India by creating awareness, enhancing local availability, and designing appealing and affordable health solutions

Campaign run rural part of north india , in which rural masses and key opinion leader are educated and aware about epilepsy

Elder has launched its new division to reach deep pocket of the rural hinterland with separate team of sales force

ASTRA Advance sales training for retail ascendance in rural areas

Proliferation of large format rural retail stores TATA/Rallis Kisan Kendras Escorts rural stores DSCL Haryali stores M & M Shubh Labh stores Warnabazaar, Maharashtra ITC Choupal Sagar

The future lies with those companies who see the “poor” as their customers.

To get rich, sell to the “poor”.

CK Prahalad to Indian CEO's, Jan 2000.

Pradeep Kashyap

+919302901996

gaurav.rawal04@gmail.com

GAURAV RAWAL