1. Rural Marketing Environment Module 2 Prof. Raghavendran Venugopal

2. RME: IntroductionThe rural market is transforming year afteryear, and it would be quite inappropriate toapproach it with the mindset about its past image.RURAL INDIA, A Snap Shot:- Villages are the heart of INDIA, 75% of Indiaspopulation(12.2% of worlds population), spreadacross 6,38,365 villages in INDIA. 90% is concentrated in the villages havingpopulation less than 2000.2 Prof. Raghavendran Venugopal 3. Rural Income Distribution Indias 58% disposable income comes from itsrural part, where 41% of the Middle classpopulation are located. Rural India contributions are high than the urbanIndia contribution(55.6% from 74.6 crore ruralpopulation and 44.6% from 25.4 crore 2006-2007 %Consumer Annual1995-1996 % urban Class Incomepeople. Very RichAbove 2,15,000 0.30.9 Consuming Rs 45001- 13.5 25.0 ClassRs215k Climbers22001 45k 31.6 49.0AspirantsRs16001-22k 31.2 14.0 Destitute Rs16k and 23.4 11.13 Prof. Raghavendran Venugopal below 4. RME: Income-wise distribution Income-wise distribution of rural householdsSource: NCAER, The future of the new market Place. Income GroupRural (2001-02) in cr Households (2006-07)in cr Total No.%Total No.% High0.260.0726.90.520.1223.1 Middle12.04 7.7364.216.70 10.32 61.8 Low 5.745.0988.73.683.5295.7Total18.04 12.09 71.420.90 13.96 66.74 Prof. Raghavendran Venugopal 5. RME:Constituents of rural market (as on 2001-02). ClassAnnualNumber ofIncome PeopleVery Rich Above 2,15k40 lakhConsuming45k-215k 11.5 croreClass Climbers22k- 45k33.1 crAspirants16k-22k17 cr DestituteUrban In 1993-98, 1.94% in Agricultural growth, FMCGSectorwas 12%. Share in Rural Share in Urban IncomeIncome 1995-96 2004-05 1995-96 2004-05Agriculture43324.4 3.7Industry 192242358ServiceProf. Raghavendran Venugopal 38475361 9. Literacy in Rural India It is improved from 39% to 56%, but still long wayto go. 16.5 crore people are literate people compared to16 crore people in urban India. 51% of rural population reported no formaleducation 16% in case of urban. 55% urban population at least secondaryeducation as against 15%. 26% of urban households, the head was agraduate or a technical degree/diploma holder.9 Prof. Raghavendran Venugopal 10. Electricity availability in Rural India In the year 2005, 56% households has a electricity connection. Majority of household in rural India are not electrified. 90% rural house holds at Punjab & Goa, 25% in Jharkhand, where as Bihar rest at Bottom. 70% in Karnataka, TN, J&K, Haryana, Maharashtra, Kerala and MP.10 Prof. Raghavendran Venugopal 11. Development Indicators in Rural India Ranked 138th position in HDR. Infant mortality is 75/1000 being highest in World. Access to potable water, health care, sanitation and shelter as far cry. Kerala has highest HDI, which 80% higher than National average. Ranked 103rd in gender disparity index in world.11 Prof. Raghavendran Venugopal 12. Nature and Characteristics of the rural market. Large and Scattered Market Heterogeneous Market Income from Agriculture Standard of Living Infrastructural Facilities.12 Prof. Raghavendran Venugopal 13. End of Module 2Prof. Raghavendran Venugopal13 Prof. Raghavendran Venugopal