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Copyright © 2011 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Accenture presents Consulting Knights at
Intaglio 2012
(IIM Calcutta International Business Summit)
Accenture Management Consulting: Case Overview
Do you know the cause behind the tremendous growth in rural purchasing power?
Do you know the share of contribution of rural markets to leading companies?
Do you know the potential of the opportunities across value chains in rural markets?
Do you know what make the rural markets highly attractive for investing opportunities?
Do you know the key barriers that hamper entry into rural markets?
The challenge for the participants is to scope the impact of rural marketing for a company, devise the implementation
strategy, measure the impact and project the benefits. Here is what you need to do:
• Choose any industry in India
• Choose a company in the industry
• Draft a strategy for the company on how they can use Rural Marketing to redefine their competitive advantage
• Project the benefits of adopting Rural Marketing
2© Accenture. All rights reserved.
3© 2011 Accenture All Rights Reserved.
Case background
The concept of Rural Marketing in India Economy has always played an
influential role in the lives of people
The rural market in Indian economy generates almost more than half of the country's income.
Rural marketing in Indian economy can be classified under two broad categories.
These are:
• The market for consumer goods that comprise of both durable and non-durable goods
• The market for agricultural inputs that include fertilizers, pesticides, seeds etc
Though the concept of Rural Marketing is often associated with agricultural marketing, Rural Marketing is defined as any
marketing activity in which one dominant participant is from a rural area. This implies that rural marketing consists of marketing of
inputs (products or services) to the rural as well as marketing of outputs from the rural markets to other geographical areas.
To be precise, Rural Marketing in India Economy covers two broad sections, namely:
• Selling of agricultural items in the urban areas
• Selling of manufactured products in the rural regions
4
Understanding Rural Marketing
© Accenture. All rights reserved.
55
Source: Accenture Analysis
Rise in Purchasing Power
There has been significant increase in the business confidence in rural
markets on the back of multifold increase in rural purchasing power
© Accenture. All rights reserved.
The increase in rural purchasing power is reflected in many ways:
• Rural incomes have been growing at more than 7 percent over
the past few years, helping to account for almost 40 percent of
India’s total consumption of goods and services
• Non-food expenditures are growing at an 8.2 percent annual
compound rate
• Rural households are purchasing a wide range of products—
cars, flat-screen televisions, microwaves—that until recently
would have been beyond their reach
• Fifty percent of revenues from the FMCG sector now come
from rural sales
• In the case of the telecom sector, subscriber base in the semi-
urban and rural markets (Circle C geographies) has grown at a
phenomenal 98 percent over the last five years in comparison
to other circles representing metros
27%
50%
69%
50%
32%
53%
71%
51%
33%
55%
76%
55%
Shampoos Toilet Soaps Washing Cakes Washing Powder
1995-96 2001-02 2009-10
FMCG- Share of Rural market as % of All India
30%
47%
2%
39% 40%
8%
40%48%
11%
Scooters Motorcycles Cars/Jeeps
1995-96 2001-02 2009-10
Auto- Share of Rural market as % of All India
1.70%
26.20%14.80%
88.70%
18.50%
102.80%
Rural Urban
2004-05 2008-09 2009-10
Total Tele density
66
Today, businesses are confident about the opportunities that rural India
has to offer and plan to strengthen their presence in semi urban and
rural areas over the medium to long term
Increasing business
confidence in Rural Markets
© Accenture. All rights reserved.
12%
22%
21%
22%
23%
No plans to invest
Plan to invest witihn the next 3 years
Investments in the last 1 to 3 years
Investments in the last 3 to 5 years
Invested in rural markets for more than 5 years
More than half of Accenture’s survey respondents
foresee 20 to 50 percent of their revenues coming
from the rural market over the next three years.
And, more than 65 percent of the organizations
surveyed have already invested in rural India, in
some cases more than five years ago
42
38
36
36
28
27
7
8
6
17
6
6
8
9
54
6
9
16 2
41
31
2029
215
21
2321
223
41
1829
221
Match competitor’s strategy
Tapping into new consumer markets
Fulfill corporate commitment
Getting access to cheap labour pool
Saturation in urban markets
BenefitingBenefitting from Govt. support
Sourcing raw materials cost efficiently
Rural Markets offer opportunities
across value chain
(% of respondents)
V. Relevant Not Relevant
Source: Accenture Analysis
There are distinctive capabilities that aid companies to
achieve high performance in rural markets
7© Accenture. All rights reserved.
49
46
39
38
35
6
4
5
9
0
1
2
2
3
Product localisation and innovation
Customer Services
Supply chain and distribution efficiency
Collaborative services
Pricing 338 18
939
1326
2336
2630
Key imperatives for profitable and sustainable
growth in rural markets
(% of respondents)
Very Important Not important
Source: Accenture Analysis
Deliverables required
Participants are required to do the following
Choose any particular industry in India which can use Rural Marketing effectively
Choose a company in the industry
Draft a strategy for the company on how they can use Rural Marketing to redefine their competitive advantage. The strategy can
include applications to Marketing, Supply Chain, Sales and Distribution, Business development etc.
Stage 1 Deliverables (5 slide presentation)
Tentative date: 23rd December 2011
Choice of industry with rationale
Company definition – For whom the strategy would be defined
Executive summary of
Opportunity assessment
Go to Market/ Implementation Approach methodology
Expected final output
8© Accenture. All rights reserved.
Deliverables required (Contd.)
9© Accenture. All rights reserved.
Stage 2 Deliverables
Tentative Date: 5th January 2012
Strategy definition
Business case for strategy
Go To Market/Implementation Plan
Identification of key success factors
Potential Benefit to the company
Risk assessment in current plan
Other supporting industry analyses to support the recommendation (as relevant)
Please ensure that you undertake the necessary primary and secondary research effort needed to support your ideas.
All the best!
Terms & Conditions (Contd.)
• The winners will be notified by Accenture on the day of the event organized by IIM – C. The winner is asked to share their
personal details, an e-mail address or such contact details for which Accenture could courier the gift if required. Accenture
maintains the personal information shared as per the Accenture Privacy Policy, please read the following link
http://www.accenture.com/us-en/Pages/privacy-policy.aspx
.
• Accenture reserves the right to replace the Prize(s) with item(s) of similar value in case of unavailability.
• Late, illegible, incomplete, defaced or corrupt entries will not be accepted.
• All prizes are non transferable and there are no cash alternatives.
• Prizes will only be delivered within India