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Infrastructure Services & Products in The Rural Markets

This document discusses challenges and opportunities in rural Indian markets. It notes that rural areas face infrastructure, market, investment, and knowledge deficits. However, with over 75% of Indians living in rural areas, there is also a large opportunity for corporations. The document outlines characteristics of rural markets like periodic village markets and products tailored to small disposable incomes like shampoo sachets. It provides examples of companies like Hindustan Unilever and their success in rural marketing through programs like Shakti that empower rural women. In conclusion, it advocates for developing "smart" rural business models that leverage local institutions and innovators who have helped drive prior successes in rural development.

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Infrastructure Services & Products in The Rural Markets

This document discusses challenges and opportunities in rural Indian markets. It notes that rural areas face infrastructure, market, investment, and knowledge deficits. However, with over 75% of Indians living in rural areas, there is also a large opportunity for corporations. The document outlines characteristics of rural markets like periodic village markets and products tailored to small disposable incomes like shampoo sachets. It provides examples of companies like Hindustan Unilever and their success in rural marketing through programs like Shakti that empower rural women. In conclusion, it advocates for developing "smart" rural business models that leverage local institutions and innovators who have helped drive prior successes in rural development.

Uploaded by

Wo!f75
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Infrastructure

Services
&
Products
in the rural markets
RURAL CHALLENGES:

Eleventh Five Year Plan:


• Special Focus on Agriculture & Rural Segment
– To achieve 9 % growth projections
– 4 % Farm growth is a must for self sufficiency
– food security
– 2nd Green Revolution
RURAL CHALLENGES:
• “Deficit Areas” for development of
Rural Economy
– Infrastructure Deficit
– Market Economy Deficit
– Investment and Credit Deficit
– Knowledge Deficit
Understand the Rural Market

India population already in excess of one billion

In the eye of multinational corporations  Whole


world

place of opportunity for exploring new markets.

Understanding the characteristics


– that make the people
– and the market in rural India unique can help
corporations to enter this market with success.
Defining Rural

A location is defined as rural if at least 75 percent


of the population is agrarian.

With such a large number of potential consumers,


it is clear why multinational corporations would
like to successfully penetrate the rural Indian
market.
Rural retail markets
Locations  Where Agricultural producers,
traders and consumers come together

For  Commercial purposes

like Supplying, Selling and Buying goods.


General Characteristics

Typology
• Established on a plot of land
• In a building
• A temporary structure
• Semi-permanent structure
• Mobile stalls or fenced-in areas
General Characteristics

Physical categories
• Central markets
– The central market is usually located at a critical
point in the overall transportation grid

• Neighborhood markets
• Village markets
– The neighborhood and village markets are usually
periodic general markets that supply remote areas.
Services and market facilities

• Market cleaning services are provided by the


public sector and commonly are inadequate
and insufficient.

PHOTO
Services and market facilities

• Water services often do not exist or suffer from


serious management problems.

PHOTO
Services and market facilities

• Sanitary facilities are usually present, but they


are overpopulated, expensive or do not work
properly and consequently suffer from poor
hygiene conditions.
PHOTO
Services and market facilities

• In most of the markets, storage facilities and


security services are informally managed by
traders.

PHOTO
Products
Popular
– Due to small disposable incomes concept

– & very little storage space


SACHETS

PHOTO
Think Small for Rural population
• Sachets are plastic pouches that contain
approximately 20 milliliters of product
Example: 10-milliliter sachet of Velvette shampoo Increases affordability
Coca-Cola launched a new 200 mL for rural customer
Products and Uses

• Rural Indians prefer using tooth powder


• rural Indians tend to use the same soap for
washing everything from hair to their bodies to
clothing

Example HHL product and packaging


development processes have taken this rural
habit into account by designing all-in-one soaps
Success Stories
Hindustan Lever  Shakti distributors.

Rural women  Receives training in micro-business skills including PDA a


Personal Digital Assistant to access product prices
RURAL BRAND: AMBASSADORS &
INSTITUTIONS
• Mahatma Gandhi: Sarvodaya & Antoydaya
• Dr. M.S. Swaminathan: Green Revolution
• V. Kurian: White Revolution
• Ela Bhatt: Women Empowerment
• NABARD: Farmers Club
• SBI: ADB Model
• BoB: GVK Model
• ITC: e-Chaupal
• ICICI: Business Facilitator/Correspondent
• IIMA & IRMA: Rural Management
To SUM UP

DEVELOP “SMART” MODEL

HAVE “ART”
TO BE IN “MART”
&
BECOME “ SMART”

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