Page 58 - MARKETING & PUBLIC RELATIONS EBOOK IC88

 Village walls are cheap backgrounds for promotional messages.

(c) Trends in the Rural Market

The rural sector, in which about 70% of the people live, contributed about 18% to India's GDP. But the
size of the rural market had been increasing. Overall, 56% of Indian consumption comes from the rural
areas. Since 2000, the GDP in the rural areas was growing faster, (at CAGR 6.2%) than in the urban areas
(CAGR 4.7%). Between 2009 and 2012, spending in the rural area was estimated to have touched about
50,000 lakh crores, 25% more than in the urban areas. Estimates also suggest that rural consumption
can continue to grow at 150% of urban consumption and touch70 lakh crores by 2025.

Rural markets have 64% of all retail stores, but account for just one-third of FMCG sales. The
numbers of petrol pumps, repair shops and spare part dealers have gone up. Access to improved water
sources has gone up by 59%. Children attending school has gone up from 18.76% in 2006 to 30.8% in
2914. All these are indicators of positive developments in the rural areas.

The sale of FMCG products in the rural areas was 9% in 2009. It was expected to be 35.3% in 2015, the
figure being Z 90,000 crores approximately. The CAGR growth during the period 2009-15 would have
been 13.2%. Rural growth for most companies was double the urban growth. Market researchers
expect that the sale of FMCG products would have touched ' 250,000 crores by 2015 and may touch Z
1,000,000 crores by 2025. The share of the rural market will increase if the monsoons are favourable.

(d) Corporate Initiatives

1. Hindustan Unilevers's Kan Khajura Tesan programme, very popular in therural areas, responds
to a missed call by playing popular songs, interspersed with advertisements for their products.
This initiative was started in Bihar and Jharkand in 2013 and has since been extended to other
states. HUL is also compiling data on the time when calls are made, the point in the programme
when the connection is cut, the person who calls, etc., enabling them to target more sharply on
the use of advertisements. HUL estimates that there are over 42 million subscribers to the
programme.

2. Another initiative of HUL, started in 2001, is called 'Shakti'. Women in villages, called Shakti
Ammas, are encouraged to become entrepreneurs distributing HUL's products. The villagers are
also given education on health and hygiene through community portals. Shakti has extended to
over 50,000 villages in 12 states across the country. By the end of 2014, 70000 Shakti Ammas,
along with 48000 Shaktimaans (men) are making sure that societal needs and business interests
go hand in hand.

3. ITC Ltd had introduced e-Choupals in rural areas in 2007. By 2012, e-Choupals were operating in
40000 villages in 10 states, benefitting 40 million farmer households.

4. Other similar initiatives are DCM's Haryali Kisan Bazaar, ITC's Choupal Saagar, Godrej's Aadhar
chain, M Et M's Shubh Labh Stores, Tata Rallis Kisan Kendras and Escort's Rural Stores. All these

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010