Bottom Of The Pyramid: Rural Market Poised For A Leap

Bottom Of The Pyramid: Rural Market Poised For A Leap

India’s inadequacy stricken volume market is not a paranoia to the corporate world. Undeterred by 37. 5 per cent of the population ( about 100 million people ) living below the dearth line, the corporate are foraying into rural market. The evolution story is increasing to India’s hinterland. Indian rural market is booming with surging agriculture prosperity since the mid of 2000’. It has also provided cushion for the recession hit urban market. It was not hit by global recession. Only 11 percent of the rural market depends on bank credit.
Today, Maruti, the country’s biggest automobile holiness, is targeting rural market to sustain its auto hold in the country. Launching the rural drive only two years back, its rural sales soared to 16. 5 per cent or about 1, 65, 000 vehicles in 2009 - 10. At today, rural market accounts for hefty shares in several market segments – 70 percent in toilet soaps, 50 per cent in TV and 55 per cent in LIC policies. FMCG companies are reaping high revenue from rural market – 45 per cent each of Colgate Palmolive and Hindustan Lever, 50 per cent of Victor Honda and 60 per cent of Mahindra and Mahindra
While the urban market is shrinking, rural market is growing prone. In FMCG, rural market witnessed 23 per cent evolvement in 2009 - 10. It is projected to ripen at 40 percent against 25 percent in urban areas. In telecom, rural market was growing at 70 percent. As of June 2009, rural wireless subscribers were 125. 95 million against 70. 83 million in June 2008. Rural market accounts for 30 per cent of motile telephones.
The rural market in India is a home for 790 million consumers. The total income in rural India will spread US$ 425 billion in 2010 - 11, a 12 percent annual crop since 2004 - 05. This exponential evolvement in rural income was derived from four main factors, in addition tom agricultural multiplication: no tax, NREGA ( National Rural Employment Guarantee Calendar ), loan waiver in 2009 - 10 and increase in MSP ( Minimum Support Prices ).
NREGA emerged a driving force for propelling up the rural market. As of 2009, 44. 9 million households, comprising of five members per household, benefited from the scheme. One member from each household was offered employment for 100 days underneath the schedule. According to accredited, majority of the beneficiaries reported increase in their consumption, health expenditure and savings. An estimation reveals that of about Rs 7000 earned by per household every year, about 50 per cent were spent for non - food items.
Over the period of three years through NREGA was launched in February 2006, US$ 12 billion ( Rs 53, 605 crores ) was infused in the rural market as earnings. Of theses, if 50 per cent were laid back on non - food, the rural India generated US $ 6 billion ( Rs 26, 802 crore ) new market during these three years period. During 2010 - 11, about US$ 6 billion ( Rs. 27, 268 crore ) will be infused as earnings beneath the scheme. Of these, 50 per cent or US$ 3 billion ( Rs 13, 634 crore ) will be extended to the rural market.
Corporations are adopting different strategies to capture the rural market. Small packaging at lower prices, use of IT services to call the agriculture and weather information and major distribution systems are some of the originative steps taken to mind into the rural market. New bottle water brand Bonaque by Coca Cola, customized TV Samporna by LG with guidebook in regional languages, Shanti Amla oil by Marico are some of the brands generated to lure the rural consumers.
New retailing strategies were grafted to woo the rural people. Rural India accounts halfway 55 per cent of retail market. Haryali Kisan Bazar by DCM, Choupa Sagar by ITC, Kisan Sansars by Tata are some of the success stories for retailing in rural market. Product adaptation, suiting to rural market, is extended strategy by the corporate. Nokia felt the need to dwarf the infrastructure hidden. It introduced a animated phone – Nokia 1100 - with in - built stimulate, an alarm clock and a radio. It launched Life Tool service, which offers agriculture information, education and entertainment targeting rural India.
In summing up, despite the vagaries of monsoon, rural market will soar with the infusion of big public and infrastructure development expenditures. It ushers for a transformation from indigent to lower middle income group and to middle income group people. It may serve as a strong back - up support for the groove on flop urban market.

Health Benefits With A Healthier Bottom Line

Health Benefits With A Healthier Bottom Line

A new cost - saving approach to corporate health care is just what the doctor ordered - and two major corporations may have just the prescription.
According to the most recent projections by the U. S. Department of Health and Human Services, health care will account for 20 percent of the nation ' s gross national product by 2016. And with health care costs on the rise, employers are clamoring for a fresh approach to designing employee health benefits.
GlaxoSmithKline ( GSK ) advocates a three - pillared holistic approach to lowering health care costs and providing better care. It calls for:
• Prevention: to keep people healthier, longer.
• Encroachment: to give patients the right medicines at the right time to maintain their health.
• Innovation: to find new cures and make life - ending diseases viable.
GSK and Pitney Bowes, Inc. have sponsored the journal of " BeneFIT Design: Seven Steps to Market price - Based Health Benefit Decisions " to guide employers who want to pocket money their approach to benefit planning, develop healthier employees and get better returns on their health care investment.
The book, co - authored by David Hom and Chicamin Mahoney of Pitney Bowes, guides employers through collecting, framework, analyzing and responding to the employee health data they extant have or can happily secure but often do not use when making benefit design decisions.
" David Hom and Chicamin Mahoney are transforming the way employers and health plans esteem about benefit design, " says GSK ' s Scott Smith. " Even the most emulous listener is won over by the commonsense approach of assessment - based benefits design. "
Pitney Bowes initiate that three chronic illnesses - diabetes, asthma and hypertension - were major health care cost drivers for the company. Hospital stays and emergency room visits were up, and people weren ' t taking medications oftentimes - and those patients experienced higher medical costs the following year.
Mahoney and Hom lowered co - insurance for medications within selected chronic disease groups quite than hoist the out - of - pocket costs for employees, and then measured progress. The bottom line was a entangle savings of $1 million in 2004 and king-size significant overall health care savings.
" The proof of your market price - based strategy is in your people, " the authors conclude. investing in healthy employees makes healthy companies - and can help save health care in the U. S.