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Paper Presentation
on
“Emerging
opportunities in Rural
Market”

Presented by,
Krishna Kumar &
Vikram Kumar Jaiswal

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

India lives in Villages

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

Source: projected census report 2011 Market
Rural

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.

Rural Market

e-chaupal by
ITC

Project Shakti
by HUL

Rural Market

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

Rural Market

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

Rural Market

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

Rural Market

Literature review

Rural Market

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)

Rural Market

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

 Currently over 40% of market leader
Hero Moto's sales come from rural
markets (Auto Expo 2012)

 Expenditure on durable goods has
increased from 3.1% in1987-88 to
4.8% in 2009-10 (A report by National Sample Survey Office
(NSSO) on November 2011)

Rural Market

Objectives

Rural Market

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

Rural Market

Research Methodology

Rural Market

Research Methodology

 Research Design : Descriptive

Research

 Sample member: Rural Customer of

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

 Sample size: 150 Paper presentation on Opportunities in
Rural Market

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

 Data Analysis
1. Mean
2. Median

 Graphical representation
1. Bar Chart
2. Pie Chart
3. Column Chart

 Software used:
1. MS Word
2. MS Excel

Rural Market

Data Analysis & Interpretation

Rural Market

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
total 59 89 114 163
Rural Market 154

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
Rural Market

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

Rural Market

RURAL AWARENESS ABOUT e-commerce

0%

8% 8%

18%
21%

STRONGLY AGREE
AGREE
NEITHER AGREE NOR DISAGREE
DISAGREE
STRONGLY DISAGREE

45%

Rural Market

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

Rural Market

Findings

Rural Market

Findings
 Large and Scattered Market
 Huge potential customers of consumer
durables & vehicle purchaser.
 Lots of scope for Insurance sector.
 Major Income from Agriculture Sector

Rural Market

 Low Standard of Living
 Conservative Outlook
 Lack of Infrastructure Facilities
 Increased literacy rate

Rural Market

Recommendation

Rural Market

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

 Company should insure proper
communication and promotion in
regional languages by regional
popular person.

Rural Market

 Collaboration with government like
PPP(public private partnership)

 Create employment opportunities for
rural people to increase their
purchasing power and make them
loyal customer.

Rural Market

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

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

Rural Market

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

Rural Market

Bibliography

Rural Market

Bibliography
Books
 Awadhesh Kumar, Pandey
(2005), “Rural Marketing”, New Age
International Publisher.
 C.K. Prahalad (2005), “ The Fortune
at the Bottom of the Pyramid”
 Philip, Kotler (1999), “Marketing
Management”, Prentice Hall of India.

Rural Market

 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

Rural Market

 Websites
 www.thehindubusinessline.com/nic/073/index.h
tm
 www.coolavenues.com/know/mktg/
 www.indianmba.com/Faculty_Column/FC658/fc
658.html
 business.mapsofindia.com/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
Rural Market

Rural Market

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