IBA Seminar onBanking in the Hinterland.ppt

IBA Seminar onBanking in the Hinterland PRODUCT DEVELOPMENT FOR RURAL MARKETS S. P. GARG Dy.Gen Manager Bank of Baroda 14th Feb’07 RURAL CHALLENGES: India Growth Story Eleventh Five Year Plan: Special Focus on Agriculture Rural Segment To achieve 9 % growth projections, 4 % Farm growth is a must for self sufficiency, food security and for 2nd Green Revolution “Deficit Areas” for development of Rural Economy 1.???Investment and Credit Deficit 2.???Infrastructure Deficit 3.???Market Economy Deficit 4.??Knowledge Deficit With new emerging areas Rural Business : sustainable and profitable business proposition RURAL MARKET SCENARIO APPROACHES TOWARDS RURAL MARKET Geographical Coverage Production and Potential Based Income Generation and Consumer spending Rural Markets ( 20,000 to 50,000 population) Tier2 and Tier3 cities contribute about 40-45% of FMCG and consumer durable items. Pyramid Approach for future Development (BOP-Model) Product Specific Target Segmentation RURAL MARKET SEGMENTATION Rural Banking, Rural Credit, Rural Insurance Rural Marketing: Agri Inputs, FMCGProducts Rural Education, Extension, Research for Capacity Capability Building Employment Rural Investment Infrastructure Development Rural Synergy with Corporates for value Chain based marketing, and Linkages. Rural to Global(Rural Exports) Rural NGOs, Rural BPOs and Other Segments RURAL BRAND: AMBASSADORS INSTITUTIONS Mahatma Gandhi: Sarvodaya Antoydaya Dr. M.S. Swaminathan: Green Revolution V. Kurian: White Revolution Ela Bhatt: Women Empowerment NABARD: Farmers Club SBI: ADB Model BoB: GVK Model ITC: e-Chaupal ICICI: Business Facilitator/Correspondent IIMA IRMA: Rural Management RURAL BUSINESS MODEL RURAL R:Retail Business for Rural Community As (Consumer Producer)