RURAL INDIA: A BREIF PROFILE

• Approximately 75% of India’s 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 don’t 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 A’s- 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.”

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