Companies are increasingly targeting rural markets in India for three main reasons: 1) Rural areas account for most of India's population and generate a significant portion of the country's income, representing a major potential source of revenue. 2) Rural consumer markets are growing much faster than urban ones as literacy and incomes rise, changing lifestyles and increasing demand. 3) Urban markets are becoming saturated and competitive, so companies are looking to rural areas for opportunities to expand their customer base and sales.

2. Why Companies
Go
Rural?
Presented By: Anu Mishra

3. Meaning of Rural:
• Rural areas or the country or countryside are
areas of land that are not urbanized,
• Though when large areas are
described, country towns and smaller cities
will be included.
• They have a low population density, and
• Typically much of the land is devoted to
agriculture and there may be less air and
water pollution than in an urban area.

4. Facts Profile of Companies Growth:
• Maruti Suzuki, India's leading automobile
manufacturer, today sells 5% of its vehicles in the
rural markets.
• In Telecom Industry 70% of all new subscribers
will come from rural areas.
• According to World Gold Council figures, 60% of
India's US$15 billion annual consumption of gold
and gold jewellery is from rural and semi-urban
areas.
• TATA Nano Car model launches in rural areas.

5. What is the reason that corporate are
moving to Rural Markets?
• Most of the population in India live in Rural only.
• The main revenue is generated from rural India
only.
• Indian rural market has great demand base and
offers great opportunities to marketers.
• The two third of the population lives in rural India
and half of the national income generated here.

6. What is the reason that corporate are
moving to Rural Markets?
• The Urban consumer durable markets like
colour TV's, Washing Machines, refrigerators
are zooming with 7% only but where as rural
market is growing with 25% annually.
• There is change in Socio-Economic Changes
like Life Style, Habits and Tastes.
• Literacy levels which was 25% before
independence is now more than 60% .

7. What is the reason that corporate are
moving to Rural Markets?
• Infrastructure Facilities.
• Increase in Income.
• Increase in expectation.
• Better to go for rural India for a healthier
Marketing and ROI.
• In rural market non-farm sector accounts for
almost 50% of total rural incomes and this is
not Dependant on Monsoon.

8. What is the reason that corporate are
moving to Rural Markets?
• As the Urban Markets getting saturated and
fiercely competitive.
• So, all the Corporate like HUL , ITC ,FMCG to
durables and automobiles are in rural markets
and achieving their target.