Retailing in Rural Market

In: Business and Management

Submitted By jaymin7591
Words 7474
Pages 30

Volume 1, Issue 3 (December, 2011)

ISSN 2249-877X

Pu b l i s h ed b y : S o u th As i a n Aca d e m i c Re s ea r ch J o u rn a l s

South Asian Journal of Marketing & Management Research RURAL RETAIL REVOLUTION: THE RISE OF RURAL MARKET
ASHISH GUPTA* *Research Scholar, School of management Studies, Motilal Nehru National Institute of Technology, Allahabad, India. ABSTRACT “The future lies with those companies who see the poor as their customers." C. K. Prahalad Strategic Guru Rural India is characterized by low per capita income, low productivity, low literacy and low rate of industrialization along with absence of basic amenities. The unprivileged class is set back by a lack of educational opportunities that could empower them to confidently pursue economic progress and overcome the debilitating effects of low literacy and rigid social hierarchies. The Indian rural retail opportunity is currently estimated to be in excess of Rs. 1400 billion (approximately US$34 billion). The figure is likely to touch Rs. 1800 billion (approximately US$ 43 billion) in 2010 and go up to Rs. 2400 billion (approximately US$ 58 billion) by 2015, according to CII - YES BANK Study on the Rural Retail Sector15. India’s rural markets are growing at double the rate of urban markets. The retail revolution is going to act as a catalyst. So, the new concept that is hitting the market today is the "Rural Retailing". KEYWORDS: Rural India, Rural retail, rural market, Retail revolution, Kirana stores. ______________________________________________________________________________ INTRODUCTION 1. THE RETAIL REVOLUTION In this land of 15 million retailers, most of them owning small mom and pop outlets, we also have a modern retail flourishing like never before. The rural revolution is driven by rising purchasing power, changing consumption patterns, increased access to…...

Similar Documents

‘Portray the Rural Market:

...Rural: Rural refers to an area where most of the people’s livelihoods depend on agriculture, the population density is low, the usage of technological gadgets is low and the infrastructures i.e. road, pool are not so developed. Portraying Rural Market of Rajshahi District: Rural Markets are defined as those segments of overall market of any economy which are used for the rural people. Rajshahi District is a district in north-western Bangladesh. It is a part of the Rajshahi Division with an area of 2407.01 sq km. Beside the City Corporation area and the nine Sub-district or upazilla headquarters, all the rest of the district can be referred as rural area. These rural areas are the areas to portray the rural market of Rajshahi district. By using the four factors or bases of segmenting consumer market, we can portray the rural market of Rajshahi district. The four bases or factors for segmentation are as follows: 1. Geographic Factors 2. Demographic Factors 3. Psychographic Factors 4. Behavioral Factors Fators 1. Geographic Factors Rajshahi district is bounded by Naogaon District to the north, Natore District to the east, and Chapai Nababganj District and the river Padma to the south.There are ten rivers in this district, totaling 146 km in length. The main river is Padma River (Ganges). Some others are Mahananda, Baral and Barnai river. The District remains predominantly rural with 1443249 people (63%) residing in rural areas. Figure1:......

Words: 1568 - Pages: 7

Hul Entering in Rural Market

...THE WILLIAM DAVIDSON INSTITUTE 06 November 2006 case 1-428-604 Rural demand for, and consumption of, consumer products is set to explode. The challenge for most companies is to be able to offer appropriate products in an affordable way in relatively remote locations. It is our view that India will soon see an inflexion point in rural consumption.1 Mr. K.B. Dadiseth, Hindustan Lever Limited Chairman About Hindustan Lever Limited Hindustan Lever Limited began operating in India in 1888 with the distribution of its “Made in England” Sunlight detergent. In 1931, when India was still a British colony, Hindustan Vanaspati Limited was formed as a 100% subsidiary of Unilever in India. It primarily sold soaps, detergents, and other household products to a select group of affluent consumers, such as British government employees and the Indian elite. In Research Assistant Maulin Vakil and Professor Ted London of the University of Michigan developed this case. They thank Vijay Sharma and Rohithari Rajan of Hindustan Lever for their assistance.© 2008, Ted London. DO In fact, since 1999 revenues at HLL had remained nearly constant, an outcome stockholders had not welcomed. With this lack of growth, increasing attention was directed to the company’s Millennium Plan an ambitious blueprint outlining the company’s growth strategies for the 21st century. The Millennium Plan was a part of the company’s renewed emphasis on business focus and operational efficiencies.......

Words: 9456 - Pages: 38


...It leads the tablet market in India ahead of global giants like Samsung and Apple (according to CyberMedia Research figures released on Monday) and is the third largest mobile player in terms of volumes. Micromax, which entered the mobile space just four years ago in 2008, is doing all this, and more: the company on Tuesday forayed into the home entertainment space with LED televisions and home theatre systems. Also Read Related Stories News Now - Micromax forays into home entertainment market, launches LED TVs - Micromax leads the tablet race in India - Micromax leads the tablet race in India - Power packs for smartphones - Is Sony buying time, or problems? - Samsung Q3 profit doubles to $7.3 bn Also Read Related Stories News Now - Markets end flat - Raising investment limit for insurers would be imprudent: Irda - Barmer refinery unviable without all crude from Cairn: HPCL - India can export 2-3 mn tonnes of rice for next 10 years: Gurdev Khush - Ukraine shows interest in Chandrayaan-II More And co-founder Rahul Sharma says it’s quite possible that Micromax will do a Samsung and storm the global markets with its products. “As a brand, we want to be able to touch the lives of consumers. The whole conversion from mobile phones to smart phone to tablets and to TV will happen sooner than later. And we want to be part of that story,” says Sharma. With......

Words: 1246 - Pages: 5


...La Rosa, Maria Sophia S. BSBA – MM3 CHAPTER 7: MARKET SELECTION AND RETAIL LOCATION ANALYSIS 1. Why should retailers be concerned about selecting the right target market? How are target market selection and location related? Retailers should be concerned about selecting the right target market because their target market is their potential customers. These are the people who are most likely to buy their products or to buy from their stores. For the follow up question, target market selection and location are related to each other with regards to reaching the target customers. Location is a very important thing to consider when targeting a segment. Retailers should also be concerned not only with the demographics of their market but with the geographics as well. It would help the retailers in reaching their target markets and it could also help minimize the marketing costs and ensure the focus on the right target market. 2. What three criteria should be met to successfully target a market? The three criteria that should be met to successfully target a market are measurability, accessibility, and substantiality. 3. What types of retailers would be best suited for locating in a lifestyle center? For me, I think specialty and convenience retailers would be best suited to be located in a lifestyle center. 4. Why are some shopping centers and malls now using big-box stores such as Home Depot, Bass Pro Shops and Kaplan’s as anchors? Aren’t anchor stores......

Words: 2701 - Pages: 11


...based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. Especially, competitive strategy should base on and understanding of industry structures and the way they change. Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. Porters model supports analysis of the driving forces in an industry. Based on the information derived from the Five Forces Analysis, management can decide how to influence or to exploit particular characteristics of their industry. 2           The Five Competitive Forces The Five Competitive Forces are typically described as follows: [pic]   2.1          Bargaining Power of Suppliers The term 'suppliers' comprises all sources for inputs that are needed in order to provide goods or services. Supplier bargaining power is likely to be high when:   •       The market is dominated by a few large suppliers rather than a fragmented source of supply, •       There are no substitutes for the particular input, •       The suppliers customers are fragmented, so their bargaining power is low, •       The switching costs from one supplier to another are high, •       There is the......

Words: 6717 - Pages: 27

New Product Launch in Rural Market

... | | |** | | INDEX |SR NO. |TOPICS |PAGE NO. | |1. |Objectives of our project |1 | |2. |Introduction of rural market |2 | |3. |Competition in rural market |3 | |4. |Profile of rural market & consumer |4-6 | |5. |Market segmentation |7-8 | |6. |FMCG industry |9-11 | |7. |Our market study |12-13 | |8. |Why shampoo…?? & |14-16 | | |Consumer buying behaviour | | |9. |Product launch |17 | |10. ...

Words: 3920 - Pages: 16


...What is Retailing?  Retailing involves selling products and services to consumers for their personal or family use.  Department stores, like Burdines and Macy's, discount stores like Wal-Mart and K-Mart, and specialty stores like The Gap, Zales Jewelers and Toys 'R' Us, are all examples of retail stores.  Service providers, like dentists, hotels and hair salons, and on-line stores, like, are also retailers.Many businesses, like Home Depot, are both wholesalers and retailers because they sell to consumers and building contractors.  Other businesses, like The Limited, are both manufactures and retailers.  Regardless of other functions these businesses perform, they are still retailers when they interact with the final user of the product or service. | | Indian retailing Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its GDP.[1][2] The Indian retail market is estimated to be US$ 500 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people.[3][4] As of 2013, India's retailing industry was essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4 percent of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians (3.3%......

Words: 339 - Pages: 2

Rural Marketing

...Rural Marketing Quite clearly, large Indian companies have begun looking at rural markets seriously. Some of them are even developing exclusive marketing strategies to tap this huge mass of consumers. Of India's one billion plus population, nearly 70 per cent live in non-urban or rural areas. According to a National Council for Applied Economic Research (NCAER) study, there are as many "middle income and above" households in rural areas as there are in urban areas. There are almost twice as many "lower middle income" households in rural areas as in urban. According to NCAER's projections, the number of middle and high-income households in rural India is expected to grow from 80 million to 111 million by 2007. In Urban India, the same is expected to grow from 46 million to 59 million. Hence the absolute size of middle and high income households in Rural India is expected to be nearly double that of Urban India. Percentage Distribution of household population and income | |Households |Population |Income | |Rural |73.6 |74.6 |55.6 | |Urban |27.4 |25.4 |44.4 | |All India |100 |100 |100 | Thus we see that Rural India contributes almost 56% to the National Income as against 44% contributed by Urban India. Although it is contributed by 76% of the total...

Words: 15293 - Pages: 62

Retailing business in the 1943, he applied the lessons he learned in Smaland to the home furnishings market. Ingvar's innovative idea was to offer home furnishing products of good function and design at prices much lower than competitors by using simple cost-cutting solutions that did not affect the quality of products. Ingvar used every opportunity to reduce costs, and he scraped and saved in every way possible - except on ideas and quality. The name IKEA comes from the initials of Ingvar Kamprad, I and K, plus the first letters of Elmtaryd and Agunnaryd, which are the names of the farm and village where he grew up SWOT ANALYSIS | | | | | | | | | | |   |   |   |   |   |   |   |   |   |   | STRENGTHS | WEAKNESSES |   | | | |   | | | | |   | Customer Knowledge | |   | Negative Publicity | | |   | Constantly Using Innovations to Drive Cost Down | Decreasing Quality | | |   | Supply Chain Integration | |   | Standard Product | | |   | Brand Reputation and Market Presence |   | Maintain Lower Price | |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | OPPORTUNITIES | THREATS |   | | | |   | | | | |   | Further Expansion Into Developing Economics | Intensifying Competition | |   | Growing Online Sales | |   | Growth Of Average Consumer Income |   | Expansion to Growing Grocery Market |   | | | | |   |   | | | |   | | | | |   |   |   |   |   |   |   |   |   |......

Words: 2281 - Pages: 10

Retailing in India

...of MMS Anjuman-I-Islam’s Allana Institute of Management Studies Mumbai 400 001 2014-15 APPENDIX 1 Anjuman-I-Islam’s Allana Institute of Management Studies Badruddin Tyabji Marg, OFF. 92, Dr. D.N. Road, Opp. CST, Mumbai 400 001 Certificate This is to certify that Pathan Shahid Zuber Khan, a student of Anjuman-I-Islam’s Allana Institute of Management Studies (AIAIMS) pursuing final year in MMS has completed the dissertation report on Market analysis of LG consumer durables in the 2014-15 Date:__________________ Place:__________________ _____________________Prof. Rafana KaziProject GuideAIAIMS | ________________________Dr. Lukman PatelDirectorAIAIMS | DECLARATION Project Title: Market analysis of LG consumer durables Submitted on: Under the Guidance of: Prof. Rafana Kazi College: Allana Institute of Management Studies (AIAIMS) This is to declare that I, Pathan Shahid Khan, student of Allana Institute of Management Studies (AIAIMS) IVth semester (Marketing) hereby declare that I have completed the project on Market analysis of LG consumer durables in the Academic year 2015 The information submitted is true and original to the best of my knowledge. Date: <Date of Submission> Place: Mumbai (SIGNATURE) Pathan Shahid Khan MMS II Year2014-15– B, 39 Specialization – Marketing Acknowledgement I take this opportunity in expressing the fact that this project report is the result of incredible amount of encouragement, co-operation, and moral support......

Words: 14895 - Pages: 60

Market Entry Strategies in Retailing of Cultural Goods

...Martin-Luther-Universität Halle-Wittenberg Juristische und Wirtschaftswissenschaftliche Fakultät Seminar Paper at the Chair of Marketing Summer Semester 2012 Market Entry Strategies in Retailing Cultural Goods. International Best Practise. Submitted by Written at Lea Valentine Frieda Steinlein Prof. Dr. D. Möhlenbruch *20.12.1989, Bayreuth Martin-Luther-Universität Matr. Nr. 210219076 Juristische und Wirtschaftswissenschaftliche Fakultät th Date of Submission: July 27 2012 Lehrstuhl Marketing und Handel 2 TABLE OF CONTENTS 1 INTRODUCTION – THE DEFINITION OF “CULTURAL GOODS” 3 2 STATE OF THE MARKETS OF CULTURAL GOODS IN GERMANY 4 2.1 GENERAL SITUATION IN GERMANY 4 2.2 ANALYSIS OF THE RETAIL SECTOR OF CULTURAL GOODS 5 2.2.1 INDEPENDENT BOOK SHOPS 6 2.2.2 INDEPENDENT MUSIC SHOPS 6 2.2.3 ART AND CRAFTS GALLERIES 7 3 STEPS TO ENTER THE RETAIL MARKET OF CULTURAL GOODS 7 4 INTERNATIONAL BEST PRACTISE FOR START-UPS 8 4.1 8 4.2 CREATING AN EXPERIENCE 9 4.3 5 “GLOCALISATION” OF CULTURAL RETAIL GOODS USING THE “WEB 2.0” 10 CONCLUSION AND CONSEQUENCES FOR START-UPS 11 LIST OF LITERATURE 12 LIST OF INTERNET WEBSITES 13 LIST OF DIAGRAMS 14 3 1 INTRODUCTION – THE DEFINITION OF “CULTURAL GOODS” Every day of our life we are encountering cultural goods and behaviour. Starting with the food we eat, the ways we......

Words: 4167 - Pages: 17


...Functions of retailing From the customer point of view, the retailer serves him by providing the goods that he needs in the required assortment, at the required place and time.  1. Arranging Assortment:manufacturers usually make one or a variety of products and would like to sell their entire inventory to few buyers to reduce costs. Final consumers, in contrast prefer a large variety of goods and services to choose from and usually buy them in small units.    2. Breaking Bulk: to reduce transportation costs, manufacturer and wholesalers typically ship large cartons of the products, which are then tailored by the retailers into smaller quantities to meet individual consumption needs  3. Holding stock: Retailers maintain an inventory that allows for instant availability of the product to the consumers. It helps to keep prices stable and enables the manufacture to regulate production.  4. Promotional support: small manufacturers can use retailers to provide assistance with transport, storage, advertising, and pre- payment of merchandise.  The Retailer also serves the manufacturers by  1. Accomplishing the function of distributing the goods to the end users  2. Creating and Managing a channel of information from manufacturer to the consumer 3. Act as a final link in the distribution chain  4. Recommending products where brand loyalty is not strong or for unbranded products. The Role of the Retailer by Pride Scott Wright  while the companies......

Words: 3731 - Pages: 15

Rural Retail

...rural retail — Presentation Transcript * 1. • RURAL RETAILING 1 * 2. RURAL RETAILING By R.SATHVEENA - 72060 RURAL RETAILING 2 * 3. INTRODUCTION • The world’ s econom ce ic ntre is s hifting away from the e tablis d, we s he althy econom s of Europe J apan, and North ie , Am ricaandtow e ardstheAs iaPacific • India is one of the fas s -g te t rowing larg e econom s in the w ie orld. Ove the las 15 r t years India has chang d m e uch fas r te thanm any predicte . d RURAL RETAILING 3 * 4. • Overall, competition and structural changes within the economy have raised the bar in terms of what consumers have come to expect. • Retailing is the largest private sector industry . Retail is the sale of merchandise in small quantities to the ultimate consumer. RURAL RETAILING 4 * 5. The Indian Consumer Is Rapidly Transforming Outlook– From Traditional to Modernized Traditional RURAL RETAILING 5 * 6. • From Functional to Lifestyle RURAL RETAILING 6 * 7. DEFINITION • Retailing can be defined as the set of activities that markets products or services to final consumers for their own personal or house hold use. This is done by organizing the availability of goods and then supplying them to consumer on a relatively small scale. RURAL RETAILING 7 * 8. • The mix of variables including price, location, communications, merchandise, physical attributes, services and personnel form the retail mix and these components form the over all strategic marketing components of......

Words: 1305 - Pages: 6


...------------------------------------------------- Retailing A person who can communicate well, convince people easily, and sell something right off, fit well in the retailing business. By serving as the middleperson of producers and consumers, a retailer can earn money easily by selling food, apparel, home furnishings, appliances, automobile parts, and many other kinds of goods. Retailing is selling goods directly to consumers. This entrepreneurial activity is based on the understanding that while a customer keeps buying and never lets up, there are actually certain factors that keep a retailer’s sales up. Consumables and other products with recurring sales value have to be placed regularly on the customers’ homes and ultimately on the retailers’ shelves. Types of Retailing 1. Store-based retailing – Store retailing can take form of an over-the-counter service or a self-service store, a big department store, or a small kiosk offering a variety of goods. Store retailers operate on a fixed location which can draw a lot of walk-in customers. * Supermarket a large self-service store that carries a wide variety of household, food, and laundry products. Examples are Rustan’s Supermarket, SM Supermarket, and The Landmark Supermarket. * Convenience store a retail store that is located near a residential area that is usually open 24 hours a day , 7 days a week. Examples are Ministop, 7-Eleven, Shell Select, Caltex Starmart, and Petron Treats. The growth of the......

Words: 1813 - Pages: 8

E-Volution: Technology as a Driver of Rural Retail in India – a Case of Itc’s Foray Into the Rural Market.

...E-VOLUTION: TECHNOLOGY AS A DRIVER OF RURAL RETAIL IN INDIA – A CASE OF ITC’S FORAY INTO THE RURAL MARKET. | Ms Smita Singh, Research Scholar, Department of Business Administration, University of Lucknow, Lucknow(M) 098395-01035e-mail: | Ms. Smita Singh Ms. Singh is a visiting faculty at Institute of Management Sciences, University of Lucknow and Distance Learning Centre for Punjab Technical University. She has been associated with academics for the past 2½ years and is enrolled for PhD research at the Department of Business Administration, University of Lucknow. She has worked with Wigan and Leigh College, Lucknow as Programme Manager and Academic Head, Management. A NTSE (NCERT) and HRD Ministry scholarship holder, she has qualified SLET in Anthropology. With over 8 years of industry experience, her current affiliation as Human Resource Consultant is with the Lucknow based project centre of Johns Hopkins University of Public Health and Hygiene, which she earlier served for 4 years as Manager HR and Research Associate. DECLARATION I hereby declare that the paper/case is original and is authored by me. The paper/case has not been published elsewhere ABSTRACT E-VOLUTION: TECHNOLOGY AS A DRIVER OF RURAL RETAIL IN INDIA – A CASE OF ITC’S FORAY INTO THE RURAL MARKET. 70 % of India's population lives in rural areas in its 627000......

Words: 6685 - Pages: 27