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The Number Game of rural india

12.2% of the world's consumers live in India Rural households form 72% of the total households This puts the rural market at roughly 720 million customers Total income in rural India
 Contributes about 43% of total national income  Is expected to increase from around US$220 billion in 2004-

2005 to US$425 billion by 2010-2011, a CAGR of 12%

The new investments are expected to enhance wireless coverage in the countryside from just 30 percent at present to 85 percent in 2011

insurance. telecom. retail. and agri-inputs (including tractors) about US$1 billion Some 42 million rural households use banking services against 27 million urban households There are 41 million Kisan credit cardholders against some 22 million card users in urban markets Be it automobile. The durables & automobile sectors contribute US$2. real estate or banking. the future drivers of growth are rural No marketer can afford to ignore the possibilities of rural India         .5 billion each.

  The FMCG the market has grown at a robust rate of 23% As durables shrink in urban India. the rural market is witnessing a 15% growth rate Some 60% of the durables market lies in rural India Telecom in rural India is growing at 31% It depends on the product. just the sheer population numbers don't mean very much from a marketing point of view        .

the mobile market in rural India has significant potential with number of subscribers anticipated to grow at a CAGR of around 32% during 2009 to 2012     Source: RNCOS . 70% of all new subscribers would be coming from rural areas According to a latest study on telecom sector called. In telecom. “Emerging Rural Mobile Market in India”. service providers are growing rapidly in villages. That's where the growth in what is now the world's fastest growing mobile market lies According to industry estimates.

it went one step further with the launch of Nokia Life Tools Nokia Life Tools is a range of agriculture. Mobile device manufacturers are also tailoring their products to this market Nokia had earlier launched a basic handset with a torch (large parts of rural India don't have electricity) and an alarm clock In December 2008. education and entertainment services designed especially for the consumers in small towns and rural areas of emerging markets Aimed at providing timely and relevant information customized to the user's location and personal preferences directly on their mobile devices. Nokia Life Tools was the first step towards bridging the digital divide         .



Rahul Sharma and Vikas Jain joined Micromax as cofounders company branched out from a mere distributor to a marketer of telecommunication equipments   Micromax   In   The . three more people Sumit Arora.ABOUT MICROMAX  Micromax was founded in 1991 by Rajesh Agarwal in its original avatar was a distributor of computer hardwares 1998.


2008 – A BREAKTHROUGH   In 2008 that Micromax ventured into the mobile handset market The brand wanted to create a base before taking on the large players Adopted a strategy Micromax concentrated on the rural market It was a different move altogether As most of the marketers tend to concentrate on the urban markets then move to the rural markets          .

 LAUNCH OF Micromax X1i Micromax launched its first phone in the rural market with a very unique USP   -30 days battery standby time  By increasing the size of the battery to 1800 mAh. Micromax X1i priced at Rs 2150 was lapped up by rural market . Micromax was able to tout a standby time of 30 days for the X1i    The brand was launched from a consumer insight that  Most of the rural households do not get enough electricity to recharge phones on a daily basis   They got the inspiration from a group of villagers standing in the afternoon heat waiting to get their cell phones charged from a car battery that was mounted on a bicycle   Hence a phone with a 30 day battery standby would be a worthwhile differentiation   The first product was a big success.

 34 super distributors  450 distributors  Around 55.000 retailers        .2010). Micromax created a distribution network comprising of.LATCHING ON THE OPPORTUNITY   The success of X1i enthused the company to go aggressively into the market But tapping the rural market is not an easy task There was severe logistics pressure in servicing these markets First thing that Micromax did was to leverage the already developed powerful distribution network they possessed According to a report in Forbes India ( March 5.

Dealing with the dealers  One of the highlight of their distribution strategy. Micromax managed this hurdle through this strategy of more margins for advance payment It is not a new strategy to offer such kind of discounts for advance payments (cash discounts).  Micromax managed to make these dealers pay in advance by offering them more margins    The most difficult part in managing distribution is the payment collection part According to the news report. but to make a retailer accept such an offer is indeed a remarkable feat (if the Forbes report is true)    .

of which 1 percent is usually given away as discounts The remaining 1 percent cannot sustain any business So Micromax decided to give a 5 percent commission to each of its distribution chain partners which included.000 retailers      .  34 super distributors  450 distributors  Around 55. Nokia usually gives a channel margin of 2 percent.

(distribution) partners tend to work harder .  It would not offer any credit   Instead distributors are expected to complete an  online bank transfer to Micromax before getting any of its phones to sell further on inventory  As a result they were not plagued with dead   The retailer only picks up what he sees demand for   And as their money is involved.  But there was a catch.

800 & Rs2. The focus was more on value than price.400 when they started selling the devices in 2008 Confining itself to small towns and specifically focusing on rural areas in the first 12-18 months Although all Micromax products were towards the lower end of the pricing spectrum.       .PRICING AT MICROMAX  Micromax specialized in entry-level and midsegment handsets which are suitable for rural markets Price ranged between Rs1. the brand was focusing on adding more features at a reasonable price .

COST + INNOVATION = MICROMAX   Micromax was careful in its product strategy Although all Micromax products were towards the lower end of the pricing spectrum ( Focusing on COST ) The brand was focusing on adding more features at a reasonable price ( Focusing on Innovation) The focus was more on value than price There was some USP in their products which offered more value Mantra for Micromax  Value orientation with a clear differentiation           .

 30 day battery life  Affordable Dual Sim  Mobiles with Mosquito repellants  Universal remote •    .Variety is the spice of Micromax  The company in their website claims to have invested heavily in the product development The brand boast of launching many firsts in the rural market like.

Apt for rural marketS   According to Vikas Jain the business director at Micromax Informatics Ltd. the company’s main customer base is in rural India   Six in every 10 handsets that it sells are sold in India’s villages   80% of companies’ sales is driven by Rural India  .

enhancement  • But in case of Micromax the enhancement was not required  • The music output is also very powerful even in entry level handsets  • Workers while working in factories or farms can enjoy the music while they are on the go and use the phone like a mobile cum radio   .e.Apt for rural marketS  Radio without enhancements • In any mobile phones if you have to access the radio/FM it has  to be connected with the headphones i.

Apt for rural marketS  Mobile as a Universal Remote  Also have a handset which acts as a universal  remote   It is no more a luxury but has become a need   In rural areas these days each & every  household has a remote control operated TV multiple uses more uses  In this case as well the Handset serves   In urban areas the same handset has even  .

The way ahead  MOBILES WITH MOSQUITO REPELLANTS  Planning to come up with a entry level   handset in which a mobile phone and a mosquito repellant are integrated repellants would be required  In rural areas without any doubt mosquito   It would serve dual needs of the rural people   Therefore would turn out to be a multi utility product • .

people are not inclined to insure   But if it is available free of cost. they are very   Large sales volumes make it easier to negotiate with insurance providers • . he can get   insurance for the handset and for himself themselves interested  In rural areas.   Mobiles bundled with Insurance Services the concept  Once a person buys a handset.

MICROMAX VERY WELL UNDERSTOOD THAT.” .    “If you give people something that helps them in their day to day lives. they will buy it.

and own categories and did that with perfection .MICROMAX VERY WELL UNDERSTOOD THAT.   competing on price along with Nokia. Samsung or LG would not get them anywhere   Instead they wanted to create.

   VISTAAR SE SUNNE KE LIYE AAP SABHI KA BAHUT BAHUT SHUKRIYA  पसतुतकता    िवनीत.87 वैभव .39  .

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