Paper Presentation on Emerging opportunities in Rural Market

Presented by, Krishna Kumar & Vikram Kumar Jaiswal

About India
India is the world's 12thlargest consumer market. By 2025, it is projected to be ahead of Germany. The biggest strength of Indian markets lies in the size. GDP growth in India is in between 7-8%.

Source: Mckinsey report 2010

Paper presentation on Opportunities in Rural Market

India lives in Villages

Current population : 1.21billion Rural population: 69% which means Current rural population: 0.83billion No. of villages: 6,40,876 Increase in literacy rate of rural India by 10.2%.

Source: projected census report

Paper presentation on Opportunities in Rural Market 2011

Rural India: FMCG products

FMCG sector to grow from US$ 17.37 billion in 2011 to US$ 21 billion in 2012. Eastern states such as Bihar, Orissa, Chhattisgarh and Assam are leading rural sales. FMCG players like HUL and ITC have already established their foothold.

Paper presentation on Opportunities in Rural Market

e-chaupal by ITC

Project Shakti by HUL

Paper presentation on Opportunities in Rural Market

Rural India: consumer durables

Anticipated to expand by 40 per cent in 2011-12(according to a study 'Rise of Consumer Durables in Rural India')

Paper presentation on Opportunities in Rural Market

Rural India: Automobiles

The two-wheeler market derives about 45-50 % of its sales from the rural market. Hero Cycles may soon tieup with insurance firms to provide health cover to its rural customers

Paper presentation on Opportunities in Rural Market

Rural India: Internet facilities

projected to rise 24 million by Dec2011 from 12.1 million in Dec2010 (Internet and
Mobile Association of India -IAMAI)

Sales from ecommerce increase from 5% to 9% in 2011 in rural India Major sales through ebay.com & amazon.com

Paper presentation on Opportunities in Rural Market

Literature review

Paper presentation on Opportunities in Rural Market

Literature review

The rural markets to increase insurance penetration(The Economics Times 13

2012)

th

Jan

In the FMCG industry 10% by volume and 12% by value - in the first ten months of 2011.(Indian Market
Research Bureau)
Paper presentation on Opportunities in Rural Market

Source: NACER(National Council of Applied Economic Research )2011

Paper presentation on Opportunities in Rural Market

Currently over 40% of market leader Hero Moto's sales come from rural markets (Auto Expo 2012)
Expenditure on durable goods has increased from 3.1% in1987-88 to 4.8% in 2009-10 (A report by National Sample Survey Office
(NSSO) on November 2011)

Paper presentation on Opportunities in Rural Market

Objectives

Paper presentation on Opportunities in Rural Market

Objectives of the study

To know the emerging opportunity in the rural market. To know the different challenges with the rural market. Scope of growth and expansion for different industry in rural market.

Paper presentation on Opportunities in Rural Market

Research Methodology

Paper presentation on Opportunities in Rural Market

Research Methodology

Research Design : Descriptive Research

Sample member: Rural Customer of

Sunderpur, near greater Noida (U.P.).

Sample size: 150

Paper presentation on Opportunities in Rural Market

Sampling method: Convenience

sampling

Collection of data:

1.

Primary Data: Questionnaire and

Personal interview

2.

Secondary Data: Internet, Books,

Journals, Newspapers & Magazines.
Paper presentation on Opportunities in Rural Market

 Data Analysis 1. Mean 2. Median Graphical representation 1. Bar Chart 2. Pie Chart 3. Column Chart Software used: 1. MS Word 2. MS Excel
Paper presentation on Opportunities in Rural Market

Data Analysis & Interpretation

Paper presentation on Opportunities in Rural Market

Demand of different Consumer Durables in recent time

List of product Within 1 month From 1 month to 3 month From 3 month to 6 month From 6 month to 1 year More than 1 year

T.V LCD/LED Refrigerator

15 21 12

23 13 22

32 11 24

41 21 27

20 24 42

Cooler AC DVD

7 2 1

14 11 4

14 12 5

22 13 5

17 7 6

Sound system

11

Water purifier

13

24

24

oven total

59

89

114

6 3 Paper presentation on Opportunities in 163 154 Rural Market

Demand of Automobiles in recent time

List Less than 3 month 3 to 6 month 6month to 1 year More than 1 year

Bike

12

23

33

41

Small car

11

11

23

SUVs

Truck

Tractor

12

total

22

38

57

86 Paper presentation on Opportunities in Rural Market

INSURANCE PENETRATION
140
132

120

118

YES

NO
100 96

RESPONDENTS

80 YES 60 NO 54

Life Insurance

32

118

General Insurance

54

96

40 32 18

20

Health Insurance

18

132

0 Life Insurance General Insurance Health Insurance

Paper presentation on Opportunities in Rural Market

RURAL AWARENESS ABOUT e-commerce

0% 8% 8%

18% 21% STRONGLY AGREE AGREE NEITHER AGREE NOR DISAGREE DISAGREE STRONGLY DISAGREE

45%

Paper presentation on Opportunities in Rural Market

FACTOR AFFECTING PURCHASE DECISION OF RURAL CONSUMER

100 90 90 80 74 70 70 RESPONDENTS 60 50 40 30 20 12 10 0

47 38

Availability of the Price of the product product

Quality of the product

after sales services

Brand name

other

Paper presentation on Opportunities in Rural Market

Findings

Paper presentation on Opportunities in Rural Market

Findings

Large and Scattered Market Huge potential customers of consumer durables & vehicle purchaser.

Lots of scope for Insurance sector. Major Income from Agriculture Sector

Paper presentation on Opportunities in Rural Market

Low Standard of Living

Conservative Outlook Lack of Infrastructure Facilities Increased literacy rate

Paper presentation on Opportunities in Rural Market

Recommendation

Paper presentation on Opportunities in Rural Market

Recommendations

Companies should understand the need of rural customers and accordingly make the products.

Company should insure proper communication and promotion in regional languages by regional popular person.
Paper presentation on Opportunities in Rural Market

Collaboration with government like PPP(public private partnership) Create employment opportunities for rural people to increase their purchasing power and make them loyal customer.

Paper presentation on Opportunities in Rural Market

Increase the awareness about the product and their usage like ITC had introduced e-choupals.

Collaboration with other companies for capturing the huge untapped market like HUL had collaborated with SBI.

Paper presentation on Opportunities in Rural Market

Limitations of the Research

Budgetary constraints Time constraints Small sample size Reliability of the data Difficulty to make respondents aware about the project

Paper presentation on Opportunities in Rural Market

Bibliography

Paper presentation on Opportunities in Rural Market

Bibliography
Books Awadhesh Kumar, Pandey (2005), Rural Marketing, New Age International Publisher. C.K. Prahalad (2005), The Fortune at the Bottom of the Pyramid Philip, Kotler (1999), Marketing Management, Prentice Hall of India.
Paper presentation on Opportunities in Rural Market

Journals 1. International Journal of Business and Management September 2010 2. McKinsey (2007). India Consumer

UNITED NATIONS ECONOMIC AND SOCIAL COUNCIL (E/ESCAP/1199 5 February 2001) Newspapers 1. The Times Of India 2. The Economics Times 3. The Business Line
3.
Paper presentation on Opportunities in Rural Market

Websites
www.thehindubusinessline.com/nic/073/index.h tm www.coolavenues.com/know/mktg/ www.indianmba.com/Faculty_Column/FC658/fc 658.html business.mapsofindia.com/ruraleconomy/state-development/marketing.html www.icmrindia.org/casestudies/catalogue/Mark eting/MKTG081.htm www.ijrcm.org.in www.scribd.com http://www.indiaonlinepages.com/population/in dia-current-population.html http://rural.nic.in/sites/downloads/general/Caste _Census_book_indd.pdf
Paper presentation on Opportunities in Rural Market

Paper presentation on Opportunities in Rural Market