rural market condition

RURAL MARKETING IN INDIA : 

RURAL MARKETING IN INDIA LESSONS FROM ITCs choupal saagar

Introduction to Rural Market : 

Introduction to Rural Market Rural market is larger than urban market in India. total size of the rural market for FMCG is Rs.41550 as compared to Rs 37130 crores in urban areas.

% SHARE IN RURAL MARKET : 

% SHARE IN RURAL MARKET

Rural market share : 

Rural market share

RURAL MARKET SHARE IN SERVICES : 

RURAL MARKET SHARE IN SERVICES In 2001-02 LIC sold 55% of its policies in rural India. Out of 2 million BSNL mobile connection , 50% are in rural India. The 24 million Kisan credit cards issued in rural India. Out of 20 million rediffmail signups 60% are from small towns.

Place of purchase : 

Place of purchase

Why people prefer Urban Market : 

Why people prefer Urban Market Customer mindset:- local retailers have very low credibility among rural customers due to the rampant availability of fake and look alike products which are sold throughout rural India. NB-Indian FMCG sector incurs a loss of 18 billion each year due to fake products The range available at the local retail stores is also low because people go to towns.

Why people prefer Urban Market(cont’d) : 

Why people prefer Urban Market(cont’d) 2. Low modal incomes:- unless there is a business model which helps in increasing the income of the customers, they will never show interest for purchasing quality products/services.

The ITC model : 

The ITC model

Second layer : 

Second layer

Slide 11: 

Challenges in rural retailing Solution of ITC Diverse customer base. Smaller wallet size. Media dark customers Flexible, fast supply chain. High quality, affordable merchandise. Reach the customers by their doorstep

CONCLUSION : 

CONCLUSION Affordable producer range. Customer friendly layout &innovative market programme. Win-Win situation for both Rural consumers and ITC.

Slide 13: 

. Subject :-rural retailing in india lessons from ITCs choupal saagar experience written by:-seshu kumar (the writer is business head, rural retailing, agri bussiness division, secunderabad, ITC Reference:-financing agriculture juarnal vol-47.