Marketing In The Hinterland

Saroj Kumar Mohanta

Partner, MART

1
 Rural Images

Saroj Kumar Mohanta

New Roads
Housing
People
Market
Outlets
Place of Gathering
Technology
 RURAL ECONOMIC STRUCTURE

RURAL ECONOMY
FARM SECTOR NON-FARM SECTOR

AGRICULTURE INDUSTRIES SERVICES

HORTICULTURE AGRO-PROCESSING RETAILING/TRADING

ANIMAL HUSBANDRY MANUFACTURING COMMUNITY/SOCIAL SERVICE

FORESTRY MINING/QUARRYING TRANSPORT/STORAGE

FISHING CONSTRUCTION COMMUNICATION

10
 Rural Institutions & Markets

 Large infrastructure
 Post offices 1,38,000
 Bank branches 32,000
 Public distribution shops 3,80,000
 Haats (periodic markets) 42,000
 Melas (exhibitions) 25,000
 Mandis (agri markets) 7,000

11
 RURAL INFRASTRUCTURE

SOCIAL
• Health
 137292 sub centres (1 ANM + 1 MHW)
 22807 PHCs (medical officer + 14 paramedics ; 6 beds)
 3027 CHCs (4 medical specialists + 21 paramedics. 30 beds + X Ray,
labour room, OT, labs)

• Education
 12,28,501 EDU. INST.

12
 RURAL INFRASTRUCTURE

ROAD CONNECTIVITY
• 49% - <1000; 75% - 1-1500; 78% - > 1500
• Pradhan Mantri Gram Sadak Yojna will cover 160000 habitations with
investment of Rs. 60000crores
MEDIA
• Radio - 208 Stations - 98.8% population
• TV – DD 1042 transmitters – 7.5 crore homes
• Press – about 15% of total India
• Mobiles – Over 192 million ……and growing!
ELECTRIFICATION
• 90% Villages electrified but 48% have access

13
Rural Administrative Structure &
Social Structure

14
 Rural Administration
About 10 blocks are
administered under
District administration
About 25 panchayats
are administered under
block administration
Panchayat
Small village
>5000 pop
Big
village
Small village
•DC is in-charge of District administration
•MP is the chairperson in district administraton
• DC is incharge of all departments in the district
and also in-charge of all programs
•BDO is in-charge of block administration
•Representation of panchayats by a pradhan
•MLA is chairman in the block
•All govt programs are channeled through blocks
to panchayats. Monitoring and control
•Elected body
•Gram pradhan heads the elected body
•Gram sevak is the administration representative
•Panchayat empowered to implement programs
15
•Formal body is different from caste panchayats
 Rural Administration (Health)
All PHC & CHC report
•District hospital is a centre with specialist
to District hospital and doctors and a complete set up.
health department •The administration is responsible for the health
officer issues in the district

•PHC have a qualified doctor(s) with support

Block -Sub centres staff: Lab technician, Nurse, others
report to PHC
•CHC has at least one specialist doctor and more
Bigger blocks have
general doctors. Facility has diagnostic and
CHC (better facilities)
imaging facilities

Panchayat : Sub-centre •Multi purpose worker and Auxillary nurse

midwife officiate the sub centre
Small village ANM – 2000pop
•Anganwadi worker is not a health department
Big
representative. But a ICDS worker
village Small village 16
Close of Session

17
CULTURE SYSTEM– LEVELS OF INFLUENCE
MACRO

EXO

MESO

PEER MICRO FAMILY

GROUP

ATTITUDES,
CUSTOMS BEHAVIOUR, CULTURE
VALUES,
IDEOLOGIES

NEIGHBOURS WORK

POINT OF
EXPERTS PURCHASE

SOCIAL NORMS 18
 SPLIT OF RURAL POPULATION

RURAL
POPN.

AGRICULTURE NON-AGRIC.
73% 27%

SELF FORMAL
WAGE INFORMAL
EMPLOYED EARNER 15%
33% 12%
40%

19
 SPLIT OF RURAL INCOMES

RURAL
INCOMES

AGRICULTURE NON-AGRIC.
53% 47%

SELF FORMAL
WAGE INFORMAL
EMPLOYED EARNER 31%
10% 16%
43%

20
 PER CAPITA INCOME

RURAL
POPN
9941.

AGRICULTURE NON-AGRIC.
6855 16464

SELF FORMAL
WAGE INFORMAL
EMPLOYED EARNER 19514
2860 12595
10150

21
 DISTRIBUTION OF RURAL HHs BY INCOME
ANNUAL INCOME IN Rs.AT INCOME CLASS 1989 -90 1998 – 99
1998 – 99 PRICES (% HOUSEHOLDS) (% HOUSEHOLDS)

<=35000 LOWER 67.3 47.9

35001-70000 LOWER MIDDLE 23.9 34.8

70001-105000 MIDDLE 7.1 10.4

105001-140000 UPPER MIDDLE 1.2 3.9

> 140000 HIGH 0.5 3.0

TOTAL 100 100

•Rural Annual Per Capita Income is Rs. 9481 vs Rs. 19407 in Urban
•Highest Rural Per Capita Income is Punjab (Rs. 27256)
•Lowest Rural Per capita Income is Orissa (Rs. 5704)
22
Opportunity & Challenges

23
 Marketing Opportunities
 Low penetration rates in rural

% of rural HH
Durables Urban Rural Total
 CTV 30.4 4.8 12.1
 Refrigerator 33.5 3.5 12.0

FMCGs Urban Rural Total

 Shampoo 66.3 35.2 44.2
 Toothpaste 82.2 44.9 55.6

24
Source: NCAER 2002
 Marketing Opportunities

 R1 - 4%
 R2 - 11%
 R3 - 37%
 R4 - 48%
 Low rural consumption in FMCGs (rich HHs)
urban rural
 Annual consumption Rs 13,000 Rs 9,400

 Rural consumption volumes (R1+R2+R3)

 Toothpaste 88%
 Toothpowder 79%
 Shampoo 88%
25