New Market Penetration Strategy in Rural India

protection. India is a land of villages. Nearly 65-70% of our country is agriculturists. About

However, the concept of rural markets, in India, is still evolving and possesses like any other sector its own set of opportunities and challenges. The primary objective of this study will be understanding

South Asia is one of the most densely populated regions of the world, where despite a slow growth, agriculture remains the backbone of rural economy as it employs one half to over 90 percent of the labor force. Both extensive and intensive policy measures for agriculture

A study by Assocham in 2011 estimated the rural consumer durables market to grow at 40% in 2012 as a result of higher disposable income among rural consumers. The size of the home appliance market in India is pegged at `30,000 crore, with air-conditioners, refrigerators and washing machines as the largest categories, though household peneration levels are in low single-digits.

A whole new economic activity has now emerged because of Keggfarms, which till now was a routine, redundant but a certain source of income even though meagre. The key results could be underlined as: significant contribution to household income, gender Empowerment, alternate livelihoods at several points, food security and environmental converter of rubbish into food. The Govt of India, Department of Animal Husbandry and Dairying, set up a committee headed by a senior technocrat from NABARD to study the rural poultry scenario with a view to include this sector in the venture capital fund of the department in the Tenth Five Year Plan. The study revealed that Kuroiler farming in the traditional style was being extensively practiced in villages with substantial benefits to rural stakeholders. NABARD presented bankable and venture capital funding for Kuroiler farming projects in rural areas In 2009, a joint venture of FAO and NDDB (SAPPLPP) studied the impact of the Keggfarms model of Kuroiler farming in rural India. Results indicated that very substantial benefits were accruing to rural stakeholders. (Kapur & Singh)

With this come different strategies to achieve growth such as through market penetration, product development, market development and diversification. When these all are broken down in details, it becomes a clearer picture. So when it comes to market penetration it is the objective of reaching higher number of sales and having a larger share with products already existing. Out of the four strategies this is the least risky one. However, there is still some low risk because prices which are low are being used to penetrate markets and it could lead to potentially damaging price wars that reduces the profit margins of all firms in the industry. When it comes to market development, it means to sell the products already existing in a market, but to sell them in a new market, this includes exporting goods to overseas markets or selling to a new market segment. When it is about Product development it is the progress made in current existing products and then sold or even new products being sold in existing markets. For example, the launch of red bull standard, they took a product which had already been in the market before, changed it a little bit and modified it and converted into a different version and sold it in the same market where red bull standard was sold. Product development is about creating something new or modifying product into its better self to attract consumers. Moving to Diversification- it means selling unrelated goods or new products, in new markets The

The real India breathes in its villages.India is a land of villages with around 70 % of its population still residing in it .The basic characteristics of the Indian villages are:

Being one of the most remote states of India, it faces some unique challenges as well as has some advantages. As per the Union Economic Survey 2014-15, only 6.25% of the population is above 60. The large young population,

across rural India. According to the article, “Maharashtra drought: 12-year-old dies of heat stroke while fetching water for family”, as the title states young children are bearing a similar amount of stress as the females in the families. The girl was dehydrated after she made four trips to fill water at the water pumps. Women are the breadwinners in their households; their lives are at stake with the physical and emotional stresses that searching for water can have on them. Another example is that there is a video surfacing a few years back that showed two women at a busy water pump station. They were fighting and throwing all of the other buckets at each other, because there was a woman who cut in front of the other. As one can tell water, is the most necessary resource for household management is considered as the sole responsibility of the women. The grim reality is that women who manage water in the household and crops substantially increase the burden of their responsibilities with their lack of access to water, specifically clean water.

India’s population extends to 32.7 percent urban (68 percent rural) with an average annual change of 2.38%, providing market opportunity. Urban agglomeration is found in New Delhi, Mumbai, Bangalore, and Kolkata (formally spelled Calcutta).

For centuries the rural world in India was static as a self sufficient unit of production and consumption, but it is no longer so. The rural setting is changing every day, with the corporate sector acting both as the carrier and bearer of the consequences of this change which is happening at an accelerating rate. Demographic profiles and spending patterns in rural India too are changing and marketers have to junk their old perception about rural India. Rural consumers who were on the receiving end so far are now gradually getting into position to dictate terms for the first time. Although there is a long way to go, the beginning has already been made.

The Indian land business sector size is relied upon to touch US$ 180 billion by 2020. The lodging division alone contributes 5-6 every penny to the nation 's (GDP). Additionally, in the period FY08-20, the business sector size of this segment is required to increment at a compound yearly development rate (CAGR) of 11.2 every penny. Retail, friendliness and business land are

Rural areas are considered “country” and usually don’t have the resources that cities and towns contain. Living conditions can reach extreme measures. In some rural areas, they

This paper elaborates on the definition of rural villages and what should be taken into

The rural market offers a vast untapped potential, and it is not easy to operate in the market,