Paper presentation on "Emerging opportunities in rural market of India" Presented in National Seminar held at ITS Ghaziabad in feb\'2012

1. Paper Presentation
on
“Emerging
opportunities in Rural
Market”
Presented by,
Krishna Kumar &
Vikram Kumar Jaiswal

2. About India
 India is the world's 12th-
largest 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

3. 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%.
Paper presentation on Opportunities in
Source: projected census report 2011 Market
Rural

4. 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

5. e-chaupal by
ITC
Project Shakti
by HUL
Paper presentation on Opportunities in
Rural Market

6. 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

7. Rural India: Automobiles
 The two-wheeler market
derives about 45-50 % of
its sales from the rural
market.
 Hero Cycles may soon tie-
up with insurance firms to
provide health cover to its
rural customers
Paper presentation on Opportunities in
Rural Market

8. Rural India: Internet facilities
 projected to rise 24 million
by Dec’2011 from 12.1
million in Dec’2010 (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

9. Literature review
Paper presentation on Opportunities in
Rural Market

10. Literature review
 The rural markets to
increase insurance
penetration(The Economics Times 13 th Jan
2012)
 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

11. Source: NACER(National Council of Applied Economic Research )2011
Paper presentation on Opportunities in
Rural Market

12.  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

13. Objectives
Paper presentation on Opportunities in
Rural Market

14. 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

15. Research Methodology
Paper presentation on Opportunities in
Rural Market

16. 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

17.  Sampling method: Convenience
sampling
 Collection of data:
1. Primary Data: Questionnaire and
Personal interview
2. Secondary Data:
Internet, Books, Journals, Newspapers
Paper presentation on Opportunities in
Rural Market

18.  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

19. Data Analysis & Interpretation
Paper presentation on Opportunities in
Rural Market

20. Demand of different Consumer Durables in recent time
List of product Within 1 month From 1 month to 3 From 3 month to 6 From 6 month to 1 More than 1
month month year year
T.V 15 23 32 41 20
LCD/LED 21 13 11 21 24
Refrigerator 12 22 24 27 42
Cooler 7 14 14 22 17
AC 2 11 12 13 7
DVD 1 4 5 5 6
Sound system - 1 3 4 11
Water purifier 1 1 13 24 24
oven - - - 6 3
Paper presentation on Opportunities in
total 59 89 114 163
Rural Market 154

21. 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 6 11 11 23
SUV’s 2 2 5 7
Truck - - 1 3
Tractor 2 2 7 12
total 22 38 57 86
Paper presentation on Opportunities in
Rural Market

22. INSURANCE PENETRATION
140
132
118
120
YES NO
100 96
RESPONDENTS
80
Life Insurance 32 118 YES
60 NO
54
40
General Insurance 54 96 32
18
20
Health Insurance 18 132 0
Life Insurance General Insurance Health Insurance
Paper presentation on Opportunities in
Rural Market

23. 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

24. FACTOR AFFECTING PURCHASE
DECISION OF RURAL CONSUMER
100
90
90
80
74
70
70
RESPONDENTS
60
50 47
40 38
30
20
12
10
0
Availability of the Price of the product Quality of the after sales services Brand name other
product product
Paper presentation on Opportunities in
Rural Market

25. Findings
Paper presentation on Opportunities in
Rural Market

26. 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

27.  Low Standard of Living
 Conservative Outlook
 Lack of Infrastructure Facilities
 Increased literacy rate
Paper presentation on Opportunities in
Rural Market

28. Recommendation
Paper presentation on Opportunities in
Rural Market

29. 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

30.  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

31.  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

32. 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

33. Bibliography
Paper presentation on Opportunities in
Rural Market

34. 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

35.  Journals
1. International Journal of Business and
Management September 2010
2. McKinsey (2007). India Consumer
3. 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
Paper presentation on Opportunities in
Rural Market

36.  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/rural-
economy/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

37. Paper presentation on Opportunities in
Rural Market