POTENTIAL OF RURAL INDIA
India is one of the fastest growing free market democracy. Having a population of 1.1 billion, the economy is worth of $3trillion and GDP is growing at 8-9%.India would be the fifth largest market by 2025.
Rural India has a population of 790 million and contributes 50% of India’s national Income. Nearly 100 million have been pulled out of poverty in the last 10 years. The earning of rural people in India is $2+/day and will grow nine times to 200 million by 2025.By 2017,Rural consumption levels will equal current Urban levels.
In understanding Rural India ,4As –Awareness ,Availability, Affordability and Acceptability-can be used as marketing framework.
AWARENESS
About 40% of the population is illiterate while 50% of the population lives in the media dark areas. There are 16 languages and 432 dialects.
Awareness can be spread through below the line (BTL)communication.
AVAILABILITY
Availability is assured through 47,000 periodic markets. Other touch points include 25,000 fairs and festivals and 7,ooo agriculture markets.
Out of 6,00,000 villages 50% are not connected by motorable road There are by and large 5 shopes in villages.
Women’s Micro-Finance Groups.Individual women take credit from the group to start Income generating activity.
For the 50% villages is not connected by the road ,Uniliver wanted a solution so as to insure deeper reach Enterprising individual women were on the look out for sustainable business opportunities. Project Shakti proved to be a win –win for both .It was co-created by Unilever and Mart.
Under Project shakti, Individual women take up dealership for Unilever brands .There are 35000 shakti dealers at present and the turnover is around $50 million .
Under Integrated Marketing Model using Youth ,educated Rural youth are selected from youth clubs and recruited and trained for marketing corporate brands .These entrepreneurs communicate brand benefit s,merchandize and sell.
AFFORDABILITY
Average per capita income is less than $1 per day. Mostly it is irregular income through wage labor. Moreover rural population has limited access to institutional finance. Solution lies in low unit packs at low price points or equated monthly installments (EMIs) offered by market.
ACCEPTABILITY
More than 50% households are without electricity .Rural marketers have limited understanding of need of rural consumer .The solution lies with local customization .For example, color television with battery backup ,mobile phone with menu in local language, dust cover and torch, and ice box to chill aerated drinks.
India is one of the fastest growing free market democracy. Having a population of 1.1 billion, the economy is worth of $3trillion and GDP is growing at 8-9%.India would be the fifth largest market by 2025.
Rural India has a population of 790 million and contributes 50% of India’s national Income. Nearly 100 million have been pulled out of poverty in the last 10 years. The earning of rural people in India is $2+/day and will grow nine times to 200 million by 2025.By 2017,Rural consumption levels will equal current Urban levels.
In understanding Rural India ,4As –Awareness ,Availability, Affordability and Acceptability-can be used as marketing framework.
AWARENESS
About 40% of the population is illiterate while 50% of the population lives in the media dark areas. There are 16 languages and 432 dialects.
Awareness can be spread through below the line (BTL)communication.
AVAILABILITY
Availability is assured through 47,000 periodic markets. Other touch points include 25,000 fairs and festivals and 7,ooo agriculture markets.
Out of 6,00,000 villages 50% are not connected by motorable road There are by and large 5 shopes in villages.
Women’s Micro-Finance Groups.Individual women take credit from the group to start Income generating activity.
For the 50% villages is not connected by the road ,Uniliver wanted a solution so as to insure deeper reach Enterprising individual women were on the look out for sustainable business opportunities. Project Shakti proved to be a win –win for both .It was co-created by Unilever and Mart.
Under Project shakti, Individual women take up dealership for Unilever brands .There are 35000 shakti dealers at present and the turnover is around $50 million .
Under Integrated Marketing Model using Youth ,educated Rural youth are selected from youth clubs and recruited and trained for marketing corporate brands .These entrepreneurs communicate brand benefit s,merchandize and sell.
AFFORDABILITY
Average per capita income is less than $1 per day. Mostly it is irregular income through wage labor. Moreover rural population has limited access to institutional finance. Solution lies in low unit packs at low price points or equated monthly installments (EMIs) offered by market.
ACCEPTABILITY
More than 50% households are without electricity .Rural marketers have limited understanding of need of rural consumer .The solution lies with local customization .For example, color television with battery backup ,mobile phone with menu in local language, dust cover and torch, and ice box to chill aerated drinks.
