RURAL INDIA: A BREIF PROFILE

Approximately 75% of Indias population lives in 6,38,365 villages spread over 32 lakh square kilometers. As per the census (2001) rural segments comprises 13.5 crore household which constitute 72% of total households in India. Rural market is not homogenous across the country . With economic development of rural areas , disposable income of rural people has gone up. Today , the rural market share as follows: 50 per cent of total FMCG, 38 per cent of two-wheelers, 55 per cent of LIC policies, 70 per cent of toilet soaps, 50 per cent of TV, fans, bicycles, tea and wrist watches. Rural Market Penetration of Biscuit Industry : 50% to 65%

PARLE
Flagship brand of Parle Products Pvt. Ltd Parle G, retains, almost half the market share for biscuits in India. The brand recently achieved the distinction of being the highest selling Glucose biscuit in the world. Parle G, enjoys a 69% share in the glucose biscuit market, selling 2.7 million tones a year. The brand continues to grow in spite of the launch of various me too products with better packaging like Tiger from Britannia & Sun feast from ITC. Parle-G target market is from 2 years to 80 years They dont ask for biscuits, but just ask for PARLE. Be it a big city or a remote village of India, the Parle name symbolizes quality, health and great taste !!!

CHALLENGES & OPPORTUNITES

1. AVAILABILITY: India's 627,000 villages are spread over 3.2 million sq km; 700 million Indians live in rural areas, finding them is not easy. Lack of Proper Physical Communication Facilities To serve remote village, stockists use autorickshaws, bullock-carts and even boats Hub and Spoke distribution model To ensure full loads, the company depot supplies, twice a week, and the large distributors act as hubs. These distributors supply, once a week and the smaller distributors supply the adjoining areas.

PARLE G RURAL SUPPLY CHAIN

2. AFFORDABILITY : With low disposable incomes, products need to be affordable to the rural consumer, most of whom are on daily wages 3. ACCEPTABILTIY : Need for customized product Different way of thinking The key dilemma for Multinational companies eager to tap the large and fast-growing rural market is whether they can do so without hurting the company's profit margins

4. AWARENESS : The Reach of message and the available means of reaching messages to these markets.

Increased penetration of electronic media

LEARNINGS
Companies are finding Rural Markets increasingly attractive. Rural population is gradually getting urbanized and has a great potential and improving purchasing power. The 4 As- has to be effectively adopted in order to capture the untapped potential of the rural consumers. Acceptability Affordability Availability Awareness

 Continuous customization seems a sure shot approach to provide both short and long-term returns in the rural markets. "To be successful in the rural market, - there is no unity in diversity, but act local while thinking global."

Thank You .
India lives in her villages .
As described by Adi Godrej, Chairman , Godrej Group The rural consumers is discerning and the rural

market is vibrant . At the current of growth , it will

soon outstrip the urban market. The rural market is no longer sleeping but we are.