(Rural Marketing Association of India) Rural Marketing Association of India C/o. MART, A-6, 1st Floor, Sector – 2, Noida. Tel. No.: (0120) 2512140, 4215323, Fax: (0120) 4273995 Mobile: +91-9910023628 / 9818960558 (Ms. Shrija Venugopal) Email: [email protected], [email protected]Subscribe to the Rural Marketing Journal for In-depth research, news and events in the rural marketing landscape of India Subscription fee Rs. 600/- per annum (four issues) Send your cheque / DD in favour of Rural marketing Association of India C/o. MART, A-6, 1st Floor, Sector – 2, Noida. Tel. 9910023628/9818960558 Place your advertisement in the most widely read journal in rural marketing industry. Tariff Back Cover – Rs. 30,000/- Inside Back Cover – Rs. 25,000/- Full Page – Rs. 20,000/- Half Page – Rs. 10,000/- Quarter Page – Rs. 5,000/- Please contact : Shrija Venugopal at 9910023628/9818960558 ([email protected]) (Full page) : Non-bleed 26 cm height ; 17 cm width Size specified :- Bleed : 22 cm height ; 21 cm width (Rural Marketing Association of India) THE RURAL MARKETING JOURNAL A Quarterly Publication Of Rural Marketing Association Of India VOL-6 ISSUE-2 JUNE-2012 FOR PRIVATE CIRCULATION ONLY SANJAY BHAN Associate VP & Head Marketing Rural Vertical, Hero MotoCorp Ltd FACE TO FACE RURAL SPEAKS Health Insurance A Rural Perspective The Need for Different Strategies In Rural Markets for Upcoming Businesses The Business of Water Role of IT in Rural development COVER STORY
Transcript
(Ru ra l Ma rke t i ng Assoc ia t i on o f I nd ia )
Rural Marketing Association of IndiaC/o. MART, A-6, 1st Floor, Sector – 2, Noida.
The Rural Marketing JournalA quarterly publication of Rural Marketing Association of India
RMAI organized a roundtable on i n t e r e s t e d t o r e n e w t h e i r rural marketing. To encourage
“Role of IT in Rural Development” in membership for 3 or 5 years or life corporates to advertise in the Journal
partnership with NASSCOM on 8th of membership. we have fixed very modest rates
May, 2012 at India International which are given in the Journal.RMAI Annual General Meeting will be Centre, New Delhi. The main sponsor held to pass annual accounts and This issue carries case studies from of the event was SREI Sahaj E-Village select new team of office bearers on RSR Lemon Media, Percept out of Ltd and Knowledge partners were 10th of July, 2012. Invitation to Home. We are happy that RMAI Digital Empowerment Foundation and attend and voting new team will be members are contributing articles for Nasscom Foundation. The roundtable sent to all members by second week the journal. There are also was attended by 70 senior people of June, 2012. contributions from Prof Sunildro L S from Corporate, Institution and Akoijam from Kurukshetra University, The 6th edition of Summer Awards for NGOs. Please read the cover story of Dharmik Shah and Milind Dwivedi Students will be held in New Delhi in the current issue for more details Associate Consultants MART, Dr. P C the month of September 2012. about this event. Sabharwal, Director Amity School of Invitations for Intern Summer RMAI held its Executive Meeting on Rural Management and Pushyamitra Projects have been sent to all the same day and took a few Joshi. We also have an article from a premium institutions across India. significant decisions. Henceforth student Mr Ishan Vyas from NMIMS, The judging panel comprise of RMAI will provide Corporate Mumbai.Mr. Sanjeev Shukla, GM, Hero Membership Certificate to new MotoCorp Ltd, Mr. R V Rajan, We are thankful to Mr Khurram Askari members and existing members who Chairman – Anugrah Madison and and his team at Insight for the renew their membership for current founder member of RMAI and Prof. editing, formatting, production and year. A new policy will be drafted by Chander Sabharwal, Professor at IMT printing of the Journal.RMAI Vice President, Mr. Raj Kr. Jha on and Managing Director – Crop Health restriction of usage of RMAI logo by Pradeep KashyapProducts Limited.members. Long Term membership President, RMAIThe Journal has become quite will be discussed in our next EC
popular and more importantly it is meeting wherein members who are read by most who are connected with
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FROM THE PRESIDENT’SDESK
President Pradeep Kashyap
Vice President Raj Kumar Jha
Secretary Sanjay Kaul
Treasurer Rashi Monga
Relio Quick Sandeep Kapoor
Ayurvet Ltd Anup Kalra
SOI Live Marketing & Events Himanshu Shah
Maadhyam Atul Mandale
Crompton Greaves Biswabaran Chakrabarty
Insight Outreach Khurram Askari
Hero MotoCorp Sanjeev Shukla
Sumita Rajan
Maruti
Punit Chhadha
Ajit Singh
Former President R V Rajan
4COVER STORY
Roundtable on the Role of IT in Rural Development
Health InsuranceA Rural Perspective ........ 7
Government RecruitsYoung Blood to Empower Rural India ........ 8
BRANDING A product identity strategy inRural Marketing ........ 12
The Need for Different Strategies InRural Markets for Upcoming Businesses ........ 14
Lucky 30% of India ........ 16
SPIRITUALITY Way to Business Management inRural ........ 18
RC Cola Now Available in Rural India ........ 20
ICICI Prudential - Mayabazar in Rural A.P. .. 21
Face to Face ........ 22
Rural Snapshots ........ 26
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hospitals, schools, public health begin is good, THIS is the right time to only a market, it is an opportunity.
centres, and other facilities is a huge start. And CSR can play an important role in
challenge for India. But what is it. He emphasized that CSR should go He said that in a rapid span of time,
changing and will change is beyond its limits to get the work we have seen India getting access to
technology. The reason for the same done. 30% of work is already being TVs and now mobile phones. In the
is that we now don’t have to talk done by the government and the last 3-4 years, changes have been
much about physical infrastructure remaining 70% we will have to tap. We happening at an even faster pace.
and we can ta l k about IT will have to work collectively to find 2,50,000 vi l lages have been
infrastructure, which can be the solutions.connected with broadband and
game changer. This technology can be money has already been there to
used for a myriad of purposes from enable this connectivity. In every call
Focusing on the challenges related to health care to education, agricultural made, a small percentage of the call
use and management of ICT in rural communication to e-commerce, etc. charge goes to a fund which is used in
development Mr. Osama Manzar It all depends on how far we can the development of the villages.
(Founder Digital Empowerment stretch our imagination. Inclusive He further elaborated that for the IT Foundation) explained that the basic growth is now possible because of to succeed, connectivity is pivotal. characteristic of the rural population technology. And the world has already made a lot is that they communicate orally.
Ta k i n g h i s v i e w s f o r w a r d , of investment to eliminate the Elaborating his point of view he
Mr.Som Mittal, President NASSCOM, complexity of technology. So it is a explained about oral mediums like
said that for the development of the good defining moment. radio, cinema, TV, computer, mobile,
country we need to listen to the SMS (as a literacy tool), youtube and
ground realities and how we can help. facebook (as an audio-visual
Creating infrastructure in India is not Explaining the importance of rural medium), and their effectiveness as a a big issue, however the management India, Mr. Mittal said that rural is not medium to disseminate information of the same is. And as any time to
IMPEDIMENTS TO ICT SCALE
RURAL INDIA: AN OPPORTUNITY
Roundtable on the Role of IT in Rural DevelopmentRoundtable on the Role of IT in Rural DevelopmentIt is a well-known fact that 60-70% through digital inclusion across presented an overall scenario of
population of India lives in rural governance,business,education, rural development in our country.
areas. As there is a lack of facilities health and social sector, a Stating the words of Mahatma
and opportunities in rural India, roundtable was organized by RMAI Gandhi that “India lives in its
there is always a constant (Rural Marketing Association of villages”, he said that this was true
aspiration for the rural population India) at India International Centre in his times. But currently, the
to migrate in search of jobs to on 08th May, 2012. The roundtable villagers now live on the periphery
towns, cities and metros. With the was organized in association with of urban development as most of
development and innovation in IT Digital Empowerment Foundation & the development is focused on
industries, development can now NASSCOM Foundation as knowledge urban rather than rural.
reach ru ra l I nd ia th rough partners and was sponsored by SREI He pointed out that ten years back
information and communication Sahaj E-village Ltd.we did not talk about developing
technologies (ICT) and creation of our villages so rapidly. We have
information infrastructure.6,40,000 villages, the highest
In order to understand the number for any country in the The president of RMAI, Mr.Pradeep
opportunities and challenges in world. And to provide them with Kashyap, in his welcome note
creating the rural development connectivity, roads, electricity,
DEVELOPMENT AND RURAL INDIA:
PRESENT DAY SCENARIO
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among people in the villages. country and 70% of them are absent Talking about the services available in
from the digital map. Hence they are the villages, Mr. Sanjay Panigrahi Talking about the penetration of
unable to take any advantage of the (CEO, SREI Sahaj) said that rural technology, he said that, in rural we
information highway. centric IT content is available at have 800 million mobiles, 180 million
28,000 Sahaj centres across 6 states. TV sets, 120 million radios and 100 Another area of concern is the
He said that rural is the most million internet connections. Among content which we provide to these
emerging market and this is the right this 100 million internet users, people. So we really need to identify
time when ICT can play a big role in approximately 50,000 use internet the content which relates to the daily
the development of rural and that in once or twice in a year and 60-70% l i fe o f the peop le we are
rural India lies a deep pocket of huge people use internet on their mobiles. communicating with. One of the
demand.Community radio and information issues that he highlighted was that
kiosks are emerging as new there is no single window wherein we He said, “We should offer services
techno log ie s and modes o f can provide access to all the with trust.” He highlighted that we
communication in the rural areas. government schemes at one place. need to provide services in such a way
Attempts to create content in local that people feel that we are not going He said that according to a
languages still needs to be done. to cheat them. characteristics-based analysis there
are about 2,50,000 panchayats Mr.Som Mittal expressed that the best
covering 6,35,000 villages. However, way for us to overcome these hurdles Talking about overcoming the
99% of them have no connectivity and is to go with the flow.He said that we barriers, Ms. Rita Soni (CEO,
they are not ICT literate. Though will have to take small steps to NASSCOM Foundation) said that what
government provides funds to train overcome these challenges and that is required is an understanding of the
200,000 panchayats every year, but we cannot wait to change the mindset market. We really need to understand
these funds are not being utilised of our government. He expressed the the needs of people and what they
properly. There are 1.3 million need to create visibility around actually want.
schools in our country and more than ground realities and sensitising the Adding to her points, Mr. Raj Kumar 95% are off the information highway. problems to the government. Jha (VP, RMAI) said that we should
Apa r t f r om th i s t he re a re This 2 hour conference proved to be a understand the needs of the people
approximately 26.1 million MSMEs, fruitful learning experience for all first and then should accordingly
mostly working with communities of the participants. At the end create content. We cannot artificially
artisans, weavers, workers and Mr. Pradeep Kashyap appreciated and create need and then make people
women etc., serving the community thanked the presence of all the buy anything especially the things
at the bottom of the pyramid. This speakers, participants and sponsors.that they don’t want. We will have to
sector is again digitally neglected. We create the content according to INPUTS BY :
have around 3.3 million NGOs in our people’s needs and wants. SAKSHI SHARMA (Ogilvy Action)
SOLUTIONS:
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The rapid pace at which the Indian address the local health problems. establishment of direct-to-customer
healthcare industry is growing distribution to ensure efficient drug • Tailor-made health schemes can be indicates that by the year 2020 it will penetration.initiated through public-private become a massive $280 billion p a r t n e r s h i p s . P r e - e x i s t i n g Health practitioners and doctors industry. However, healthcare government initiatives such as RSBY prevalent in these rural areas could coverage and drug penetration in (Rashtr iyaSwasthyaBimaYojna) b e e n c o u r a g e d t h r o u g h a rural India is in a desperate need of could tie up with local NGOs and registration and certification drive rejig. An overall medical coverage of private insurance players to achieve by the Medical Council of India or 35% exists in our nation, a vast such partnerships. Census board. An upcoming rural majority of which lies in the urban MBBS programme, an initiative by • Subsidised schemes for the BOP parts. the MCI and central government, will (bottom of the pyramid) population A report by McKinsey shows that aide in creating adequate health will ensure that they get cover for there is only a mere 2% of medical awarenes s o f l ow- r i sk , l ow basic ailments at a marginal i n s u r a n c e c o v e r a g e i n investment therapeutic segments premium such that they would be India,regardless of which the Indian like cold, allergies, communicable easily affordable for even a daily healthcare sector still grows at a diseases, etc. This programme will wage earner.rate of 16%. This lack of insurance also reduce the quacks prevailing in
Healthcare infrastructure is also a coverage leads to an 80% out-of- rural areas.genuine concern in rural India. Most pocket healthcare expenditure for The development of rural India is of of the rural citizens are forced to Indians, where 70% of the population the essence if we want our nation to leave their homes and travel great hails from rural areas. Addressing g r o w. H o w e v e r, h e a l t h c a r e distances for basic healthcare. this issue is pivotal and increasing f a c i l i t i e s , a v a i l a b i l i t y a n d Micro-financing options provided to the marketing of micro-insurance affordability of drugs are the crux of local retailers as well as community plans in rural India could help this the matter in rural India.health practitioners could help ailing industry and also the folks develop basic health amenities. This residing in these areas. A few would lead to better adaptability of solutions to this issue are: ARTICLE BY : ISHAN VYASthe healthcare services in rural
Student – School of Pharmacy and • Community based micro-insurance India. Cold chain support could also Technology Management, NMIMS, plans must be devised which could b e p r o v i d e d , a l o n g w i t h Mumbai
Roundtable on the Role of IT in Rural DevelopmentRoundtable on the Role of IT in Rural Development
SNI U RHT AL NA CE EH
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Rising wages in both rural and urban India have The RBI has seen significant divergence in wage rise and
contributed to inflation, and managing price levels when inflation across major states. States such as Manipur,
wages are rising is the key to driving benefits from higher Rajasthan, Andhra Pradesh, Karnataka, Himachal
growth, the Reserve Bank of India has said. “The pressure Pradesh and Bihar have seen significant rise in both wage
on generalised inflation from sustained increase in wage and inflation. “A host of factors could explain the increase in
costs has been one important characteristic of the recent wages, including high inflation, withdrawal of the labour
high inflation episode. Wage increases for unskilled force with increased participation in education and
labourers in rural areas continue to be at a rate faster than government schemes such as Mahatma Gandhi National
the comparable rate of inflation,” the RBI's annual Rural Employment Guarantee Act,” said the RBI report.
macroeconomic and monetary developments report said. “There is merit in this argument but inflation is not solely led The wholesale price-based index inflation for March dipped by rise in salaries. We expect salaries to increase by about to 6.89%, down from 6.95%. 12% to 15% in the organized sector in the calendar year
“Even if I don't agree with the Reserve Bank of India, it is 2012. This range is not higher than last year's,” said K
true that all public sector employees' dearness allowances Pandiarajan, founder, Ma Foi Management Consultants.
go up in line with inflation,” said Saugata Bhattacharya, “In the unorganized sector, we have very little surveying chief economist at Axis Bank. “Wage price spiral is the most done. Money Supply, government borrowing, rising
commodity prices are also contributors,” said
Pandiarajan. “Wage inflation is generally linked to food
inflation because the dearness allowance is adjusted in
line. Political factors like elections have also led to an
increase in rural income through the NREGA,” said Rupa
Rege, chief economist Bank of Baroda.
Source :
Economic Times, Delhi edition, 17th April, 2012
dangerous part of inflation. Government interventions and
subventions have contributed to increase in inflations.”
“Outside the public sector realm, corporate India is
prepared to give a salary hike on account of increased
productivity that has nothing to do with inflation. This is not
accounted for anywhere. On a broader macroeconomic
level, people have also lost jobs and have not got fresh
jobs,” said Bhattacharya.
Rising Rural, Urban Wages Aiding Inflation
GOVERNMENT RECRUITS YOUNG BLOOD TO EMPOWER RURAL INDIA
GOVERNMENT RECRUITS YOUNG BLOOD TO EMPOWER RURAL INDIA
These might not be the best days of Prime Minister dedicated youngsters who are willing to work for the
Manmohan Singh's eight-year tenure, but with the general betterment of the other India. They will also provide
elections just two years away, youngsters selected for much-needed feedback from the states.” said a rural
fellowships named after his position are going to villages development official.
for ensuring efficient implementation of rural Last September, rural development minister Jairam development programmes. The government spends more Ramesh announced the fellowships following a workshop than Rs. 1 lakh crore every year on rural development on development activities in Maoist areas. It was done through schemes such as MGNREGA, Indira Awas Yojana, after taking into account the need to strengthen grass Prime Minister Gram Sadak Yojana and an Integrated root structures – from block level agencies to panchayats – Action Plan for 78 Maoist-affected districts. However, it and reach out to people in these conflict zones. At Rs. 75, does not always get the desired results. 000 per month, and a 10% hike next year, the PMRDF is the
This Saturday, as many as 156 fellows — among them top fellowship in the country.
graduates from prestigious institutes such as the IITs and “The unprecedented remuneration offered under the JNU — will be deployed in each of the 78 districts of fellowship helped attract the best talents — some of them central India. They will assist the collectors concerned from abroad,” said an official.and work towards ensuring better delivery of schemes,
Source: Hindustan Times (4th April, 2012)improving the planning process, refurbishing machinery
and influencing government decisions for quick redress of
problems.
The Prime Minister Rural Development Fellows, aged
between 22 and 31 years, are selected from 8,560
applicants, and are paid a remuneration of Rs. 75, 000 per
month. The tenure of the “development facilitators” is
two years – close to the date for the next general polls.
“The idea is to provide rural India with unbiased and
GOVERNMENT RECRUITS YOUNG BLOOD TO EMPOWER RURAL INDIA
GOVERNMENT RECRUITS YOUNG BLOOD TO EMPOWER RURAL INDIA
TAKING INDIA FORWARD•
•
•
156 fellows – hailing from prestigious institutes such as
the IITs and JNU – will be deployed across 78 rural
districts of central India Besides assisting collectors in
their work, they will work towards ensuring better
delivery of schemes and enhancing the planning process
Tenure of the “development facilitators” will be 2
years.
“Water, water everywhere not a drop
to drink”… This one liner suddenly
struck me, recently on my visit to
Bhopal and its adjoining villages. Who
would dare to say that there is a dearth few other technologies have been t h e r e
of water in the city (everyone introduced in the market for the has to be
associates the city with a sobriquet – purification of water. However, one of t r a i n e d
“The city of Lakes”). But even then, I the biggest loopholes with reference to manpower that
was pretty cautious about drinking the developing world is its exorbitant could actually do
water from packaged bottles due to a cost. It is generally unaffordable to the this on a regular
fear of falling prey to “diseases” if we rural Indian and many features of the b a s i s , t h u s
gulped it. This definitely allows me to product might not even be useful to the improving the health
infer that there is a lot of water around rural consumers. On reading an article s t a t u s o f t h e
us, but as atmospheric scientists say – in HBR 'How GE is disrupting itself?';I communities. Remember,
only 3 % of water is actually came across the concept of 'Reverse the science of public health
consumable – the liquid state and out Innovation' by Dr. Vijay Govindrajan began with the detection of impure
of this only 3 % of it is portable. And this who actually talks about simplifying water at the 'Broad street pump', which
naturally, has caused a dearth of the technology to make it economical, was considered to be a shocking
drinking water across the continents. technically simple for low resource reason at that time, but has now
Imagine rural India entangled in the settings. Why bring something from changed the scenario of the world.
same plight! the western world which is actually so
complicated and costly? Instead The government has been trying to companies could design technology provide safe drinking water since They say that “water available in the for water purification in low resource years and has yielded some positive nature is pure but the moment you settings which could penetrate the results but this process really needs to touch it, it gets impure.” The depths of rural India.gear up.If we are looking to quickly community sources of water actually
reach the Millennium Development need to be maintained well. In many Goals (MDG’s), this is definitely not “Surveillance” has definitely been one parts of rural India, household chores possible without letting private players of the major problems in our country. near the water sources actually lead to in. There actually arises the need for a their contamination. Moreover, they do
Yes, “Water” is something which the network of monitoring stations across not have the required technical
private players can look forward to the country which could easily detect a expertise to keep the water clean.
invest in. Here’s how I think they change in water quality, according to Business houses could actually tap
possibly could: the seasons. This calls for the this opportunity to try and create
establishment of good laboratories or sustainable business models around
kits and other tools which are efficient it. Some of you might argue that 'Water
and effective in testing of water which is a free entity and not anyone's Reverse osmosis, Ozonisation and could be easily used by people. If not, property!' but all know that public –
MAINTENANCE OF WATER
SOURCES
WATER TESTING STATIONS
SIMPLE LOW COST TREATMENT
TECHNOLOGY
THE “BUSINESS” OF “WATER”THE “BUSINESS” OF “WATER”“Water, water everywhere not a drop to drink”
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WOW AWARDS - 2012RMAI members have won the WOW awards under category “Rural Engagement Program of the Year”. The gold Award was won by MART,Silver by Impact Communications and Bronze by Hero MotoCorp Limited.
Entry Title Medal Entrant
Project Asha MART
Horlicks
Swasthya Abhiyaan Impact Communications
Hero Naye Indian Ki Khoj Hero MotoCorp Limited
GOLD
SILVER
BRONZE
private partnerships have always worked. Moreover, after able to sell products which people absolutely don’t require,
generating the required amount of profits and developing a then why not talk to them about something which is actually
culture of clean water – they could handhold the process to so significant.Advertising agencieshave an opportunity to
the community and then withdraw. design communication campaigns for the organisations
involved in dong the same.
So, why not take opportunity and invest in ‘Water’ Majority of schools in rural India do not have access to benefitting the community as well as the business.This is clean drinking water. Clean water needs to be supplied to what I call as ‘The Business of Water.’children as health also is a responsibility of educational
institutions. Seeing a large number of schools in rural India, This is what I call as “The Business of Water”.
the potential is immense. Kiosks for water supply in schools DHARMIK SHAH,
could be the next big thing.Associate Consultant - MART
Finally something for advertising agencies!We think that
drinking clean water is important, but many of the Indian’s
living far away in the hinterlands might not even perceive it
to be important to drink clean water, because they might not
have been exposed to the concept of clean water and
sanitation. Even if through an extremely efficient
distribution channel, would you try to supply clean water,
very few people might buy it because the perceived
benefits are very less. If all the advertising agencies are
SCHOOL WATER SUPPLY PROGRAM
SUPPORTING AWARENESS DRIVES
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Branding is one of the easiest and is that the perceived risk in buying will • Create an image for the brand that
most effective product identity be lower. helps promote sales of products and
strategies for rural markets. When a l s o a l l o w s o t h e r p r o d u c t A brand name gives identity to a
used strategically, it can gain the introductions in the family.company's product. It helps in
acceptance of consumers and also recognition and makes processing Another additional role of a brand in
secure a competitive edge. Branding easy for the company, distributions the rural market is to evoke a strong
in rural areas should meet and and consumers. This saves costs and emotional feeling that surges an
address two basic objectives, time in manufacturing, logistics interest in buying the product. Today,
namely:including warehousing, transporting rural consumers are aspiring for a
and order processing for the • Generate recognition among less- high quality of life as a consequence
company when selling the product. of the development schemes of literate consumers through brand
Distributors can reap similar benefits NGOs and the government. Brands identity and motivate them to
in handling the products and selling symbolise quality. The general notion purchase.
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BRANDINGBRANDING associations of brands grow larger,
and even transcend the products with
which they are first associated.
Brand identity starts slowly with the
product to which the name is given. It
grows next, to become a symbol, then
an ind iv idua l and f ina l ly an
organisation. 'Vajradanti' translates
to strong teeth. 'Chyawanprash'
means ayurvedic solution for youthful
energy. Together, they create an
image for Dabur as a company that
promotes health.
Take another very famous example of
Philips. The brand represents a whole
range of electrical products; radios,
transistors, lamps, tube lights,
televisions, 2-in-one tape recorders
etc. Over the years it has developed them. companionship that creates a strong
itself into a symbol of quality, bond between a brand and consumer. When a product is given the right
representing an energetic, capable, By their popularity, brands not only branding, consumers find it easy to
illustrious person and an innovative, enhance their value-in-use but also identify and pick out the product.
great company. Its only because of value-in-exchange. A company that Brands earn recogni t ion and
the local brands that companies like has built the brand image over a r e p u t a t i o n t h r o u g h t h e s e
CavinKare (Chik shampoo, Meera period of time by its incessant performances. The image helps the
herbal, Fairever etc), Anchor (100% innovative efforts is rewarded, for existing product line as well as new
percent vegeterian toothpaste), example, a premium price offer for its products. It creates a higher ground
Ghadi detergent power and Power products from its competitor or for the marketer to charge more than
soap have the upper hand over other interested entrepreneur willing to competitors, and also makes it easier
foreign brands which take the back own it.to convince distributors to carry the
seat in the minds of rural masses.products. Names generate some distinct
thoughts in the minds of the rural Artical by Brands in course of their association
people of India. The name 'Sita' is SUNILDRO L.S. AKOIJAM w i t h c o n s u m e r s d e v e l o p (Asst. professor – Institute of associated with 'Virtuousness',
personalities. Advertisers take this Management Studies [IMS],
'Bhima' with strength and 'Arjuna' with opportunity to match the personality Kurukshetra University)
'Chivalry'.Brand names in a similar of brands with that of prospects. It
way reflect particular characteristics helps build brand loyalty- a lasting
a n d a c c o m p l i s h m e n t s . T h e
A product identity strategy in rural marketing
BRANDING
Strong Impression
Repetition
Logo
Price
ProductBenefits
ValueProposition
CustomerService
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STRONG BRANDSCREDIBILITY
PROMOTION
QUALITY
THE NEED FOR DIFFERENT STRATEGIES IN RURAL MARKETS FOR UPCOMING BUSINESSES
Go Rural India campaign is now a market as it is growing by the day. markets should involve:
common slogan used by most of the Rural India is emerging as a large • Introducing the right product andfinancial, banking and retail sector market for a number of goods and pricingcompanies. Every company wants its services – financial services, • Offering and packing smallerpresence in rural and semi-urban h e a l t h c a r e , e d u c a t i o n , quantitiesmarkets to penetrate these markets. telecommunication…and the list goes • Spreading awareness andThe hidden market potential of Rural on. Today rural markets are as critical education among rural folksIndia is now visible and viable due to: as urban markets for marketers. A • Understanding their needs and
strategy to explore the hidden • Increase in the disposable income requirementspotential of rural markets needs to be level of rural consumers • Easy availability and accessibilityworked out by companies to meet the • Better road connectivity It’s difficult to enter and become demands of rural consumers. Most • Advent of various rural successful instantly in rural markets companies are still using the same development schemes by as compared to urban markets.The urban marketing and operational Government urban population have their own approach while trying to penetrate • Saturation in urban market perceptions and they are used to rural markets which does not help to • Basic infrastructure development doing the same thing over and over satisfy the rural consumer and thus • Increase in the literacy level again. The rural market has a vast results in loss when capturing the of rural people untapped potential, however it is not rural markets. Companies do not see
Over the years rural India has seen an that easy to operate in the rural any difference in both the markets. impressive growth. Substantial market due to several problems. Generally marketing mix strategies improvement in purchasing power, Rural Marketing is a time consuming are based on the product, price, increasing brand consciousness, affair and requires considerable place and promotion, however in changing consumption pattern and a investments in terms of evolving rural marketing it is replaced by rapid spread of communication appropriate strategies to tackle acceptab i l i t y, a f fo rdab i l i t y, network in rural areas has presented issues.So if you want to make them awareness and availability. The major a growing potential for the corporate aware of your product you first need strategies for entering the rural sector. It's better to target the rural to break their perceptions and build
trust for your product. Only then can to shut shop a year and a half later.
you make use of the huge potential
for growth that it offers.
Given these two case studies from the
retail and banking sector a read to
have a better understanding of the
problems faced by marketers while
penetrating rural markets.
Being one of India's leading Retail
Company with a massive presence in
the major cities of Madhya Pradesh,
Kushal mega mart wanted to reach
the semi-urban and rural markets as
well. After preliminary market
research in semi-urban/rural areas,
they finally set up shop in a high
potential town called 'Dhar'. The
retail outlet was fully air conditioned
with various products to choose from
and maintained the same set of
standards and methods of operation
as its urban counterparts. They still
held on to their customer service
policy where customers only got
personal attention when they asked
for it.
After the store opened it had mere 2-
3 footfalls a day in the first week.
After the first week, they had a lot
more people walking in but they kept
leaving the footwear outside. The
rural thinking that footwear could
spread dust and dirt in an air-
conditioned environment made them
do so. The staff did not know how
they could deal with this situation and
had a huge dilemma as to how could
one educate them without hurting
their sentiments. 4 months of
educating the customers, they finally
started wearing their footwear inside
the store. While trying to overcome
this problem the company faced
issues such as positioning, how can
the store be different and unique
when compared to local players. But,
it was all in vain as they were forced
Case of Praxis Bank (Banking Sector)
Learning from these casesKushal Mega Mart (Retail sector)
conditions were unfavourable for the
residents and the staff as well, the
results of which were the exact Private Banks are aggressively opposite of what was initially opening their branches in rural areas planned. Private Banks like Praxis still in an attempt to penetrate the rural find it difficult to penetrate the rural market. One of India’s leading private market and small towns like Khargone banks, Praxis,made its move into the being one of the best examples.rural market as well. It setup a branch
similar to that of the ones in the cities
and metros in Khargone, a town in Rural markets have enormous
Madhya Pradesh, with the same potential, however it requires
distribution and product-price different marketing strategies if an
portfolio strategy. organization looks to successfully
penetrate it. Rural consumers look for Basic financial products like savings value for money and basic products, and current account with the same not standard/urban products with price as it had in the urban branches. luxury services. The issues discussed
in the above cases show that whether
it is a product or service provider, it
has to understand the real need by
customisation and co-creation. An
organisation must avoid standardised
offerings in the rural market in every
aspect. Rural customers look for
personal attention and value for
money, not air-conditioning or huge
retail outlets. Air-conditioning is an
unnecessary cost in rural markets and
only increases the cost to company.
Go rural is the need of the hour but it The branch also had all the standard is better to go for the real potential of facilities like air-conditioning, the rural market. To explore this furniture, and swish interiors similar untapped potential of the rural to their urban counterparts. Savings market it is necessary to understand account had to have a minimum the need and requirements of rural balance of Rs. 5000/-. Whereas, consumers. An organisation must also nationalised and co-operative banks address acceptability of the product, allowed savings account with a affordability in terms of pricing the minimum balance of Rs. 500/- and Rs. product, proper awareness about the 1000/- only. In comparison, Praxis offerings and make sure the was way too heavy on the wallets of availability of the required product rural residents. Customers had little and services is done through the right interest in opening accounts with the channel in rural market for banks, with an exception of doctors companies. and businessmen who had setup
Article by - Dr. P. C. Sabharwal &accounts due to personal relations
Mr. Pushyamitra Joshi,with sales executives and also to show
RMAI Memberstheir status in the society. The
(Ru ra l Ma rke t i ng Assoc ia t i on o f I nd ia )
6th Annual Awards for Best Summer Project in Rural Marketing Rural Marketing Association of India is happy to announce
the 6th edition of “Awards for Best Summer Projects in
Rural Marketing” by students from Management Schools
across the Country.
THE PARTICIPATION PROCESS
•
•
•
Institute should send a consent letter regarding
participation to RMAI.
Each institute can nominate maximum of 5 projects for the awards.
RMAI has nominated an eminent Jury comprising of Mr. Sanjeev Shukla,
General Manager, Hero MotoCorp; Mr. R V Rajan, Chairman
– Anugrah Madison Advertising Pvt. Ltd and founder of Rural Marketing Association of India and Prof. Chander
Sabharwal, Professor at IMT and Managing Director – Crop Health Products Limited, who will evaluate the projects.
THE LAST DATE OF SUBMITTING THE PROJECT WILL BE 15TH JULY 2012.
Top 10 entries will be invited to an Award Event where students will make a presentation. Following awards will be given at
the well attended Ceremony. Students will have to bear the cost of travel and stay if necessary
· GOLD : A TROPHY AND CASH AWARD OF RS. 50,000/-
· SILVER : A TROPHY AND CASH AWARD OF RS. 30,000/-
· BRONZE : A TROPHY AND CASH AWARD OF RS. 20,000/-
All entries will be given Certificate of Merit. “Rural Summer Awards Event 2012” will be held in the month of September 2012 at
New Delhi, where academicians, Corporate Managers and others will be invited.
The 'India Story' has taken quite a bit of
drubbing in the past few months, what with
weak economic numbers, non-existent
reforms, and the odd scam. But for a real
bucket of cold water, it's been hard to beat the
census data released recently, which showed
that while two out of three households in the
country have a mobile phone, well over half
don't have access to a toilet 'on premises' i.e. in
their house. More households in India have cell
phones than they have toilets at home. And
49% of Indian households still use the ‘great
wide open’ to relieve themselves. Experts have
barely begun to dissect the fascinating data
coming out of census 2011. One such piece of
data is about the basics-households which
have access to drinking water and latrines at
home, and a power connection. In fact the
census has data on which households have all
three.
Call it the DWEL (for drinking water, electricity
and loos) indicator. According to the census,
only 30% of households have all three
amenities available at home, up from 21% of
households a decade ago.
What's worrying though is that the urban-rural
divide has deepened. Around 64% of urban
India has access to these amenities, up from
55% a decade ago. In comparison, only 14% of
rural households have access to the basics, up
from about 9% a decade ago. India's biggest
cities have actually done quite well. Much is
made, for instance, of Mumbai's creaking
public infrastructure, but on DWEL at least, it
has galloped ahead, though it still remains
behind metros, including Kolkata.
Among the states, the best performers have
been the smaller ones such as Daman and Diu
and Goa, but one state is a big surprise -
Lucky 30% of IndiaUrban India far ahead of rural India in offering basic amenities to citizens
Haryana, where 53% of households report having all three basic amenities,
up from 30% a decade earlier. And while much is made of the
transformations wrought by Nitish Kumar, Bihar remains a laggard, where
even now, only one in 10 households have access to all three facilities.
Districts which perform poorly on DWEL, tend not to do well in other aspects
as well (though interestingly, that's not always the case). Longleng in
Nagaland is at the bottom of the ranking of districts, with only 1% of
households having access to basic facilities. In this district 57% of
households do not have any of the assets specified in the census form
(radio or TV, a vehicle or cycle, or even a phone). And a whopping 86% of
the population in the district does not access banking services. Dindori in
Madhya Pradesh on the other hand, another low ranker on DWEL, seems
to be relatively well-banked, with only 31% of households reporting no form
of access to a bank. What access to a bank for Dindori's poor means in
practice though, is another question altogether.
Source: TOI (13th May, 2012)
JUNE,2012 | THE RURAL MARKETING JOURNAL 16 www.rmai.in(Ru ra l Ma rke t i ng Assoc ia t i on o f I nd ia )
Awards Sponsored By:
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weak in f ras t ruc tu re and the people in rural India. As the co-founder potential powerful enough so that they
i n v o l v e m e n t o f n u m e r o u s of Comat Technologies, leading can be the brand ambassador and
intermediaries. The program involves provider of e-governance solutions, he enjoy ultimate happiness of your long
the installation of computers with initiated the concept of rural business te rm g row ing bus iness w i th
Internet access in rural areas of India process outsourcing units and rural consumers.
to offer farmers up-to-date marketing business centres. Having a strong Milind Dwivedi, Associate and agricultural information. Here ITC belief that India is a land of young Consultant - MART did not worry about on the spot profit entrepreneurs and it is important to
but instead tried to empower rural empower the youth. Comat passes on
people so that they can be capable the benefits of information technology
enough to buy its products with better to rural India with business centres
perceived values. This defines the and BPO projects across the country
term spiritual marketing in a better and has helped rural India in
way. maintaining its eternity.
Today companies have severe Adopt spirituality in your business
concerns on Corporate Social strategies, make your consumer
Responsibility. CSR activities are not
completely charity oriented as we
think, the larger picture lies in opening
new doors for future markets.
Business gurus always see CSR as a
tool to generate long term profitability.
Heart based business may not provide
instant profits,however by applying it
one can surely generate long term
loyalty. As World Business Academy
cofounder Willis Harman remarked
“The dominant institution in any
society needs to take responsibility for
the whole, as the church did in the
days of the Holy Roman Empire.”
Each day more and more businesses
are helping to create a better world by
being more socially responsible in how
they treat people and the environment.
There is also a new trend one can find
in rural Indian market working as
social entrepreneurs who are majorly
responsible for blurring the line
between profit oriented and non-profit
o r i e n t e d a p p r o a c h . S o c i a l
entrepreneur, Sriram Raghavan, has
built a remarkable business model that
is transforming the lives of millions of
SPIRITUALITY..... Way to Business Management in RuralSPIRITUALITY..... Way to Business Management in RuralWay to Business Management in RuralMostly Business is taken as a something quite contrary from it. One example would be of ITC E-Chaupal.
synonym of profit where spirituality cannot suppose instant profit and E-Choupal is an initiative of ITC stands for ultimate happiness and certainly one should not. Here the term Limited, one of India’s biggest satisfaction. Are spirituality and spirituality in business gets its conglomerates, to link directly with profitability mutually exclusive? definition.rural farmers via the internet for
In spirituality, we never think or look for If we want to establish business in procurement of agricultural and
instant and more fragile benefits. rural market we need to do something aquaculture products like soybeans,
Rather, we go for long term everlasting different, something that can connect, wheat, coffee, and prawns. E-Choupal
bliss. And when we think business in match with the need of rural people. was conceived to tackle the
urban, we think about instant profit and Like ‘Blue Ocean strategy’ said where challenges posed by the unique
surviving in cut-throat competition. you have lot of opportunity, you need features of Indian agriculture,
However, business in rural area is to select one and cultivate it. A perfect characterized by fragmented farms,
Cola Now Available in Rural India
JUNE,2012 | THE RURAL MARKETING JOURNAL 20 www.rmai.in(Ru ra l Ma rke t i ng Assoc ia t i on o f I nd ia )
Mohit Khattar (Brand Manager RC consumers to experience the
Cola) says “Since this is the first refreshing flavour, and also engaging
time we are organising an them with entertaining games to make
integrated marketing campaign, them aware about the various SKU
the objective is to create the sizes and flavours. The target
highest level of excitement and audience were invited for blind tasting
awareness about RC Cola which to differentiate between various
is a 100 year old brand and also beverages.
the third largest selling cola in Our ideation team used the 300ml pet the world. The campaign is bottle and best tasting cola as its USPs designed so as to create for RC Cola to design the campaign. distinction between RC Cola Along with the blind tasting of RC
and other players in the market.” Cola’s flavours the TG was engaged
We, Percept OOH, developed the using two specifically designed games T h e strategy and implemented it as which educated the audience about world’s third largest well.Initially we started with a market the differentiating USPs of the brand. cola brand, Royal Crown Cola (RC research to understand the current Also, a creative was displayed on a Cola), has been introduced in the market dynamics for soft drinks and LCD on the vehicle which along with Indian market and has positioned itself later came up the campaign. Till we the still creative also had a TVC as a drink with distinct flavours. It set started working on RC Cola brand, we specifically made for the campaign out this summer with a range of thought that soft drink market is and a RC Cola jingle (Indian song).marketing and promotional activities already saturated and there is no involving social media, market place for any new brand. However, activations, etc. The primary strategy
VIVEK DWIVEDI,after our research we found that it is was to create an awareness and Head - North & East,just a misconception and the market excitement around the brand to Percept Out of Homestill has a lot of potential.Only if a new communicate the product efficacy.
brand comes up with better Research suggests that there is an
flavours and innovative untapped potential in the rural areas
packaging.that will fuel quick growth in the coming
It started with an on-ground years. Per capi ta sof t dr ink activation from Rajasthan’s consumption in rural areas is only 2.8 small town Churu,and is litres, compared to the national 7.4 now running simultaneously litres. However, RC Cola has renewed in Gujarat, Maharashtra, its focus on the rural market in India Andhra Pradesh, Karnataka and believes there is huge opportunity and Tamil Nadu. It was with vast potential for growth in these launched with branded markets. RC Cola is targeting small mobile Van Movement and towns (tier II and III towns like Churu, the concept of ‘Experiential Bharatpur, Sikar etc.) and rural M a r k e t i n g ’ a l l o w i n g markets in India.
JUNE,2012 | THE RURAL MARKETING JOURNAL 21 www.rmai.in(Ru ra l Ma rke t i ng Assoc ia t i on o f I nd ia )
Cola Now Available in Rural India
Introduction: · Education on insurance products
· Benefits of becoming a Financial One of the key challenges faced by Advisorevery life insurance company today
is to recruit right advisors to sell Execution:
policies in rural India. The big This is one of the biggest rural question is how to make these rural activations in life insurance sector people join as financial advisors? recently. To achieve the desired This task has been simplified by resu l t s o f IC IC I Prudent ia l , Hyderabad based Mayabazar (a BTL Mayabazar team went ahead with initiative of RSR Lemon Media) Feedback:the following details:through beyond metros activation Surprised by the results achieved for ICICI Prudential. and the activation done by
Objective: Mayabazar team, the Area Manager,
Mr. Y. V. Pawan Kumar, Kothagudem & The Main objective of this campaign Khammam said “The activation is to create awareness about helped them in strengthening Insurance & the benefits of distribution channels and lead becoming Financial Advisors &
Results: generation”.educate the people dwelling in
towns which fall under STCs & MTCs The results show that Mayabazar Conclusion:
(Small & Medium Towns Category) in could convert 30% of prospect With this activation, Mayabazar Rajahmundry & Vijayawada Clusters financial advisors. opened doors and showed ICICI to become Financial Advisors Prudential, a new path on striking through Door-to-Door Activity & the right chord with rural people in Road shows etc. conversion of prospect financial
Key points briefed to the audience: advisors.
· Need for Insurance V Ranga Rao, Director,
RSR Lemon Media
ICICI PRUDENTIAL CONNECTS WITH
PROSPECTIVE FINANCIAL ADVISORS
THROUGH MAYABAZAR BEYOND A.P.'S METROS
Unit supervisor 1
Promoters for activity 3
Drivers 1
Total Manpower 5
Tata 407 with branding 1
MANPOWER DETAILS – PER TOWN
No. of posters pasted 780
No. of banners pasted 190
No. of customers contacted 1977
No. of customers interested inbecoming advisors 682
No. of days worked 23
DESCRIPTION NUMBERS
ICICI Prudential branded vehiclePromoters interact with prospect advisors.
No. of towns covered 19
No. of locations 134
No. of Kms. covered in 19 towns 287
DESCRIPTION NUMBERS
5. Hero MotoCorp has recently launched Ignitor, Passion xpro and Maestro in the market. Which one will be
targeted to rural markets or is there any new brand coming up for rural markets?
6. Has 'Naye Indian Ki Khoj' campaign given some leverage to Hero MotoCorp to promote other brands in rural
market?
7. Considering the fact of inappropriate distribution network in rural areas, how difficult is it to cope with after
sales service especially in segments like automobile?
8. What has led to a tie up of Hero MotoCorp with Muthoot Capital Services Ltd. in rural market?
If there's single most important factor for Hero being the most popular, most favourite, the most loved brand in India, its
because of the quality, reliability, durability, and performance of Hero products. At Hero, we do not differentiate on basis of
geography but need types and will continue to pursue a focused need segment driven strategy for development of new
models. Hero also has the widest, the most comprehensive range of two-wheelers from the perspective of pricing, styling,
power and brand image. Hero customers , whether in urban or rural, simply choose the one they like and that suits their
sense of style and imagery.
Naye Indian Ki Khoj, as an activation has been a much-awarded, and is a huge success. It identified 400 Naye Indians in
over 600 districts. The intent, the spirit and the plan behind the initiative was to encourage & inspire youth to contribute back
to their village, to their community and help it develop socio-economically. The activation rewarded all those who contribute
towards society and inspired others to carry out the mandate, we believe we have moved in that direction in a small, but solid
way.
For Hero, it isn't just about promoting a brand or sales in general, it's about contributing meaningfully to the lives of our
customers, it's about building a positive long-term relationship, with people, and with the community. No wonder, Hero's
CRM programme - GoodLife is one of the largest CRM initiatives.
Hero MotoCorp is the first and only two wheeler organization which offers door step service to its customers known as
Service Har Jagah, recognized by RMAI as one of the most innovative rural initiatives. Under Service Har Jagah, our expert
technicians/teams travel deep inside into pre-identified villages as per a pre scheduled calendar to deliver the highest
standards of quality service at the customer door step. There cannot be a more profound statement of customer support than
by actually extending one self to where the customer resides. We believe that while the challenges will keep emerging, as
dedicated customer centric organization we shall need to find newer ways to respond to such challenges .
Every year more than a million customers have benefited from this programme and we continue to upscale the programme
in our endeavour to reach out to even more.
Given the nature of jobs & income in rural
market, its difficult for our customers to procure
loan for their favourite Hero two wheeler. The
documentary requirements are difficult to fulfill
and the interest rates offered are too-high.
Hero's endeavour has been to be an integral
part in making it's customer live a better life.
Our tie-up with Muthoot, with many other large
banks, both private and public, co-operative
banks & financial institutions, across the
country, to help provide our customers
with financial support in the best way possible,
at the least possible cost.
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1. How important is it to educate or create awareness of a particular product or service among rural consumers?
2 Having highest market share in two wheeler market, has it given your company some advantage to tap rural
markets?
3. Hero MotoCorp registered Y-o-Y growth of 17% in sales this financial year; is strong rural demand one of the
factors?
As per Society of Indian Automobile Manufacturers (SIAM), Indian two wheeler market is expected to grow by
11% this fiscal year. How is Hero Motocorp going to take this opportunity?
Rural customers are very rational in their approach. They need to be sure about the value a product or a service is delivering,
about the functions, about the benefits, about the reliability and about the support post-purchase. So, the rural TG needs to
informed and engaged with extensively s well as, intensively.
Word of mouth is really very powerful , hence everyone in the Rural areas understands the responsibility in recommending,
as he/she understands the value of a recommendation. Rural consumers seek advise and consult people and at the same
time, have complete faith in the opinion of those they consult, before making a buying decision. It is important to engage
those key influential people in the village , who are respected for their wisdom and ability to provide meaningful advisory,
influence others to make that purchasing decision. Hero in fact, has been working painstakingly in terms of on-ground
initiatives & activations to have personal contact with all key stakeholders in rural market.
Yes. That is absolutely right, there is huge comfort in numbers and also significant credibility when someone who's seen as a
very aspirational brand is willing to bend its back at a time when it doesn't need to, customers engage gainfully. Hero
MotoCorp of course, is world's no. 1 two-wheeler company, 11 years in a row. Market share is not just about the ability to be
doing better than the competition but also a reflection of what we deliver on-ground and how we reach out & stay connected
with our customers; its not the other way round. It's a result of top quality products, of delivering customer-delight in our
services, of many innovative & strategic initiatives to keep in touch with and support customers in remotest corners of our
vast country, that we have highest market-share.
We have been driving the growth consistently across markets, not just in Rural. Given our pre-dominant reach, product
offerings and services, besides the huge focus and connect with our Rural customers we are able to leverage this strength
to post very robust numbers.
4.
Hero MotoCorp's growth shall be in-line with the growth projection. With its slew of new products, market-specific
services and even deeper penetration, Hero will continue to be on the forefront of the growth curve.
with SANJAY BHAN Associate VP & Head Marketing
Rural Vertical, Hero MotoCorp Ltd.
Hero continues to be on forefront of growth curve...
AUTOMOBILE
JUNE,2012 | THE RURAL MARKETING JOURNAL 24 www.rmai.in(Ru ra l Ma rke t i ng Assoc ia t i on o f I nd ia )
9. Is there specific pricing strategy for Hero MotoCorp Ltd. for rural markets?
10.India is the second fastest growing market in automobiles. Is it growing demand from rural markets, which
contributes major chunk to overall sales?
11.Constant changes have been observed in rural market demand. Any specific strategy or predications by Hero
MotoCorp for this financial year?
12.What form of CSR activities are carried out in rural markets by Hero MotoCorp Ltd.?
13.What is the perception of rural markets in terms of two wheeler vehicles? Is it still used for mobility purpose or
status symbol?
14.Very much like the Urban TG, there are different set s of people in Rural too, demographically as well as,
Psycho-graphically.
15.Any instance where you interacted with rural
consumers/market and recognized untapped
needs or wants?
Well, as shared, in terms of products & services we do not differentiate. Hero is known for fantastic value and that's true
across the spectrum of its two-wheelers and its markets. Pricing is not different as it in any case, so much driven by our
guiding principle of offering the best value and delight our customers.
Rural contribution is substantial and the growth is consistent & fast, but it still isn't the biggest chunk to overall sales. Given
the low penetration levels in rural – just about 14% per household as per Census 2011 - the faster growth rate and delightful
socio-economic prosperity in rural, contribution from rural is and will be even more so, critical to overall sales and business
as we move forward.
Like I said, rural is not just another opportunity ,it's a dynamic and vibrant set of needs and aspirations of people that has
made it a very strong market for us. We have been building enduring relationships with people in rural, We continue to meet
& engage with them regularly and as such, understand the changes on a continuous basis. Therefore our strategy of Har
Gaon Har Angan, i.e., being there – with best of products and services – at every doorstep !
As a part of our ongoing activations in Rural markets a lot social support activities like, medical camps, tree-plantations,
skill building ,sports etc. happen on a continuous basis.
As mentioned earlier, the rural customer is far more rational. For him or her two-wheeler actually goes beyond even a
mobility-tool. A two-wheeler for a rural customer is an essential tool in efficient delivery of his or her business & services; is an
integral & critical element in living a better life, by way of bringing support systems - like medical help – closer; a reliable,
efficient two-wheeler helps him or her in connecting with family, extended family & friends, thereby bringing overall joy in
community living.
With growing prosperity, similar exposure and the intense desire to do well, there are large sets with aspirational, status
conscious individuals. The fact that a two wheeler, more than any other durable has a much larger announcement value and
its sheer road /street presence and visibility tend to give it a slightly larger role of also communicating the position of an
individual in the society.
We have been interacting with rural people on a
daily basis for many years now. There are several
instances leading for learnings for us, as well as for
them. All our products & services are of course
designed & developed on the basis of and a r o u n d
customers' needs. All our product developments
reflect our understanding of customer needs and
the success of some of these in rural m a r k e t s
strongly endorse this understanding. Need to good
quality service ,closer home being one simple such
insight ,captures the essence.
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JUNE,2012 | THE RURAL MARKETING JOURNAL 26 www.rmai.in(Ru ra l Ma rke t i ng Assoc ia t i on o f I nd ia ) JUNE,2012 | THE RURAL MARKETING JOURNAL 27 www.rmai.in(Ru ra l Ma rke t i ng Assoc ia t i on o f I nd ia )
RURAL SNAPSHOTSMURUGAPPA GROUP TO OPEN MORE RETAIL STORES
MURUGAPPA GROUP TO OPEN MORE RETAIL STORESThe Murugappa group is keen to give a thrust to rural retail. The group started the rural retail business three years ago and it is today profitable with a turnover of Rs 1,300 crore.
Murugappa group runs 700 retail stores across rural Andhra Pradesh (branded Mana Gromor) and Karnataka (Namma Gromor). Plans are on to expand into Maharashtra and Tamil Nadu. The target is to have 1,000 rural retail stores.
What began as centres for soil and farmer education has today diversified into selling urea, pesticides, seeds, micronutrients, sulphur, boron, zinc, farm merchanisation services, crop and weather insurance. They have now started selling organic manure and cattle feed.
“When we started the rural retail stores, there was no prescribed model; we made our own model. Today on paper, we have more retail space than Pantaloon,” says Mr A. Vellayan, Chairman.
Murugappa has tied up with banks for loans. Farmer members are given Kisan cards loaded with some amount of money and part of that to be spent in the store, while the rest can be spent elsewhere.
Source: Business Line
PARLE AGRO INITIATIVE TO INCREASE PRESENCE IN RURAL AREASFood and beverage Major Parle Agro has sewn up an aggressive marketing campaign with emphasis on rural market penetration.The company, which is into beverages, snacks and water, sees all its business segments growing this year with revenues possibly heading towards the Rs 3,000-crore mark, up from Rs 2,000 crore it logged last year, according to Ms Nadia Chauhan, Joint Managing Director and Chief Marketing Officer of Parle Agro.
Addressing newspersons, Ms. Chauhan said the company has charted out a series of initiatives, including expansion of the distribution network to tap the rural market and by investing over Rs 40 crore in marketing spend this year. “The southern region is a major market for Parle Agro and we have roped in Tollywood star Siddharth Narayan to endorse our brands. We see this helping us connect better with our potential customers,” she said.
The company has completed the expansion project of its manufacturing facilities. It has eight self-owned beverage manufacturing units in the country with two of them based in Hyderabad and Chennai. This capacity would see it through for some more time. Summer months tend to contribute about 60 per cent of the total business when it comes to beverages and cool drinks. “We see the ensuing summer having immense potential in terms of further penetration into rural markets and adding more brands to the existing portfolio. Recently, we have also launched drinks in returnable glass bottles,” Ms Chauhan said. The company focus has been on promoting brands Frooti, Appy, LMN, Saint Juice and Appy Fizz.
Source: Business Line
Seeking to give a big boost to sanitation in rural areas, Planning Commission has allocated a Rs.36,000 crores for the 12th Five Year Plan, up from Rs.7800 Crore in the previous Plan. Rural Development Minister Jairam Ramesh, who is also in-charge of the Ministry for Drinking Water and Sanitation, said the Planning Commission's decision “reflects the priority UPA government places on sanitation in rural India“. Noting that 60 per cent of open defecation in the world are in India and “it is a matter of continuing anguish, shame for all citizens”, Mr. Ramesh said that the government has vowed to achieve total sanitation in the country in the next 10 years. The total sanitation campaign will now be known as Nirmal Bharat Abhiyan, Mr. Ramesh said.
Chief Ministers of Uttar Pradesh, Madhya Pradesh, Bihar, Chhattisgarh, Haryana and Punjab have demanded fair allocation for achieving the sanitation goals, Mr. Ramesh said. At present, out of Rs.3400 allocated for individual toilets, the Centre gives Rs.2100, each State's share is Rs.1000 and Rs.300 comes from the beneficiaries, while Rs.1200 is leveraged through MGNREGA works as was approved last year. But after the Cabinet approval today, the Centre has to dole out Rs.3200, the state Rs.1400 and families have to provide Rs.900 while MGNREGA funds will be to the tune of Rs.4500.
Source: The Hindu
Plan panel allocates Rs.36,000 cr for rural sanitation
Coca-Cola India and World Vision to support rural schools in IndiaNew York, June 6 — Coca-Cola and World Vision, a humanitarian organization, have joined hands to revitalise 100 rural and semi-urban schools in India under the internationally recognised "Support My School" campaign.
This partnership will provide basic amenities such as access to water, sanitation, playing fields, rainwater harvesting and other basic amenities to rural and semi-urban schools across India, the two organisations announced Tuesday at an event here to mark the World Environment Day.
Support My School is an ongoing partnership between Coca-Cola India, NDTV, UN-HABITAT, Charities Aid Foundation, Sulabh International, Tata Teleservices and Pearson Foundation to improve school infrastructure across India with a special focus on clean water and sanitation. The campaign reached a critical milestone of 100 schools on June 1 and has already touched the lives of over 43,000 children across India.
Source: Daily News
Welcome rain drops for India Inc!New Delhi: What is common today resultant rural economic activity. “Good monsoon would definitely boost between Parachute, Boroplus, Approximately 40 -45 percent of the up the Agri GDP but its impact on the Navratna, Dabur Red, Splendor, FMCG demand arises from the rural overall GDP is the key thing to watch Lifebuoy, Dove, Ponds etc? All these sector, and talking about the out owing to less contribution of brands simply love the sight of rain consumption demand in the FMCG agriculture,” he averred. Laveesh drops, courtesy the monsoon that hit sector, P D Narang, Whole Time Bhandari, head, Indicus Analytics, an Kerala on June 5. Director, Dabur, said, “Rural demand economic research consultancy,
will definitely remain intact owing to argued, “Good monsoon ensures that The monsoon arrival has brought
normal monsoon expectation.” Rural economy runs smoothly even though about the rare cheer at India Inc in
demand has by and large sustained in agriculture formed 14 percent of India's general, and more so for companies
face of pressure on macro economy GDP.” This view found all round that traditionally thrive on rural
fundamentals led by surge in inflation. endorsement. A K Prabhakar, Senior e c o n o m y. W h i l e t h e I n d i a
But to sustain the momentum in view of vice president, equity research, Anand Meteorological Department (IMD)
monsoon being on time, Narang at Rathi Financial Services, said, “Good forecast that monsoon would be
Dabur wants the government to shed Monsoon normally benefits FMCG and normal this year, the little delay in the
the inertia. “India is suffering from Fertilizer stocks. However, until the onset of the rains had caused sudden
policy paralysis as well as lack of monsoon rains hit the financial capital, concern. The monsoon was earlier
s u p p l y c h a i n m a n a g e m e n t Mumbai, the stock market would watchscheduled to hit Kerala on June 1 this
infrastructure. it very closely.”year.
Government needs to take certain “Emami, HUL, Jyothy Lab, ITC, Rallis, Agriculture's share of the national
initiatives to improve supply chain in GSFC, Coromandel International, are income or GDP has steeply climbed
the country in order to reduce the few stocks which will move based on down over the years to a mere 14
wastage of natural farm output,” he normal monsoon, and investors can percent now but even now around 60 to
added. As that happens hopefully, the accumulate these stocks at the current 70 percent of the total population is still
stock market pundits too are cautiously levels. Tractor stocks like M&M, dependent on this sector. A good
bullish on the monsoon impact on Escorts are also likely to see buying monsoon, therefore, means higher
FMCG pack. Ambareesh Baliga, COO, interest after a month of good Monsoon income for the people reliant on
W a y 2 W e a l t h ( I n v e s t m e n t s data,” added Prabhakar.agriculture leading inevitably to higher
Consultancy Firm), said, “Monsoon consumption of business. Source: Zeenews.com
won't be the key revenue driver for FMCG, Automobiles, Fertilisers, these companies. However, shares of Telecom are amongst the prominent these (FMCG and other companies sectors which get impacted either way dependent on rural consumption) by the quantum of monsoon each year. particular companies can show a Companies in these sectors are bullish bounce back as the market is given the monsoon onset in view of the oversold.”
