SWOT analysis

SWOT analysis

Strengths:

•         About 70% of India's population lives in 627000 villages in rural. A middle and higher income household in rural India is expected to grow from 80 million to 111 million by 2010.

•         In urban India, the same is expected to grow from 46 million to 59 million. Thus the absolute size of rural India is expected to be double to that of urban India.

•         Young population.

•         Weakness: Low literacy rates

•         Low standard of living

•         Traditional outlook

•         Prevalence of spurious brands and seasonal demand.

Opportunities:

•         3 times more families lives in Rural India

•         Rural India has a large consuming class with 41 per cent of India's middle-class and 58 per cent of the total disposable income.

•         Population-becoming brand conscious

•         Exposure and increase in literacy rates will open market further.

•         Threats: Shifting of young generation-rural to urban cities

•         Entry of small time players –Study on buying behavior of rural consumer indicates that the rural retailers influences 35% of purchase occasions

•         Vast majorities-rural people-tradition bound, fatalistic and believe in old customs, traditions, habits, taboos and practices.

Print media in rural areas

^Ø   Print Media

^Ø   The total number of newspapers and periodicals being published in the year 2000 was 49,145. Newspapers were published in as many as 101 languages and dialects during 2000.

^Ø   The reach of newspapers in rural areas is very poor, only 15% of the copies of newspapers reach rural areas. Newspapers normally reach the feeder market or small towns and are read in shops or road side hotels.

^Ø   People sometimes buy newspapers in small towns and take back home, where it is read at home or at common gathering or social gathering.