It happens only in It happens only in It happens only in It happens only in

RuralRuralRuralRuralRuralRuralRuralRural IndiaIndiaIndiaIndia

“ 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 village ,finding no cab available for rent he instantly purchased Brand new Mahindra Bolero”

What is Rural ……..?

Is it a place where Cattles Is it a place where Cattles Is it a place where Cattles Is it a place where Cattles

means more than means more than means more than means more than

communicationcommunicationcommunicationcommunication ? ? ? ?

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 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 .

What is Rural ……..?

Is it a group of consumer having low Is it a group of consumer having low Is it a group of consumer having low Is it a group of consumer having low

economic status and low disposable economic status and low disposable economic status and low disposable economic status and low disposable

income income income income

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

2/4 wheelers

Rs.8,000

Consumer

Durables

Rs.5,000 crores

Rs.45,000

crores

Rs.8,000

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. Thesame income in the hands of an urban person, who is possibly a tech worker, is actuallynot 100 rs of disposable income. It is most likely 67 paise; the rest goes as tax. The farmeconomy, with zero-tax on farm income, creates far more disposable income. Buying powerin 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] bankingservices against 27 million urban households. There are 41 million Kisan creditcardholders [credit cards issued to farmers for purchase of agricultural goods] againstsome 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

2005

INCOME

PYRAMID

Forecasted

2015

What is Rural ……..?

Is it a hinterland where govt. still underestimate Is it a hinterland where govt. still underestimate Is it a hinterland where govt. still underestimate Is it a hinterland where govt. still underestimate

destitute condition of people ???destitute condition of people ???destitute condition of people ???destitute condition of people ???

• 1,46,185 kms. of road length is proposed to be constructed . This willbenefit 66,802 unconnected eligible habitations in the country. Toensure full farm to market connectivity, it is also proposed to upgrade1,94,132 kms. of the existing Associated Through Routes. A sum ofapproximately Rs.48,000 crore is proposed to be invested to achieve

Bharat Nirman

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

Pradhan MantriGram Sadak

Yojana weather roadsYojana

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

Indira AwaasYojana

• "Rajiv Gandhi National Drinking Water Mission (RGNDWM)- in 1991with three key objectives:

• Providing safe drinking water to all villages,

• Assisting local communities to maintain sources of safe drinking water i

RGNDWM

• 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..

Central rural sanitation

programme

• 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

National Institute of rural

development

Rural Employment Scheme

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

National RozgarGuarantee Yojana

• The Sampoorna Grameen Rozgar Yojana (SGRY) was launched on25 September, 2001 by merging the on-going schemes of EAS andthe JGSY with the objective of providing additional wageemployment and food security, alongside creation of durablecommunity assets in rural areas.

Sampoorna Grameenrozgar yojana

community assets in rural areas.rozgar yojana

•The objective of the programme was to provide additional resourcesapart from the resources available under the Sampoorna Grameen RozgarYojana to 150 most backward districts of the country so that generationof supplementary wage employment and providing of food-securitythrough creation of need based economic, social and community assets

National Food for work Program

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

Swarna Jayanti Gram Swarozgar Yojana

Other programs

• Formal recognition of the role of voluntary organisations in theSeventh Plan documentled to the formation of the Council forAdvancement of People's Action and Rural Technology (CAPART) in1986, as a nodal agency for catalysing and coordinating the emergingpartnership between voluntary organisations and the Government forsustainable development of rural areas.

Council for advancement of

people’s action and Rural technology

(CPART)

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

Provision of Urban Amenity in rural

Areas (PURA)

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

Mid -Day Meal Scheme

What is Rural ……..?

Is it a Market where Brands Is it a Market where Brands Is it a Market where Brands Is it a Market where Brands

and corporate still suffocating???and corporate still suffocating???and corporate still suffocating???and corporate still suffocating???

BIJLILaunched New Refrigrtor for Rural and Semi urban market priced at

10,000

SAMPOORNA

MAHASANGR

AM

SAPNO KA

GHAR

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 Operation

JAGRUTI

Rural initiative targeted villages population less than 2000, providing

income generating opportunity through shakti vani

OPERATION Jagruti, a village consumer contact campaign waslaunched with the objective of massive rural penetrationtargeted at the non-users and infrequent users of dentifrices.

JAGRUTIJAGRUTI

Parachute

ASHA

targeted at the non-users and infrequent users of dentifrices.

Anti Loose Campaign and Temper proof Packaging in Smaller Variants

Low cost snacks & Beverages

Chota Coke

Great Value Great Value

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

.

E- Choupal

Chick

Product

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

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

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

Har Gaon Har

angan

Panchayat

scheme

Ghar ke

pehchan

Ghar Ghar ke

pehchan

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

Mahindra Samriddhi, an initiative of Mahindra Farm Equipment, eyes

having 600 Mahindra Samriddhi centres and five million farmers

under its ambit by 2020.

TATA ACE

MAGIC

TATA ACE

MAGIC

Gold PlusTitan 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

PalampurMiss Palampur

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 campaigncampaign

Met Suvidha

Kamdhenu

campaign

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

initiative to build a sustainable, profitable business that improves

access to healthcare among the underserved millions in rural India by

ASTRA Advance sales training for retail ascendance in rural areas

Arogya

parivar

Jitna

Hain

Hume Jitna

Hain

Elvista

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

Proliferation of large format rural retail stores

� TATA/Rallis Kisan Kendras

� Escorts rural stores� 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.

CK Prahalad to Indian CEO's, Jan 2000.

To get rich, sell to the “poor”.

Pradeep Kashyap

+919302901996

gaurav.rawal04@gmail.com

GAURAV RAWAL