MARKETING OF

SERVICES
SERVICES FOR DEVELOPMENT

 Development obligation and emerging market potential in rural hinterlands.

 Financial services: Engine for the growth of rural economy

 Financial security: Insurance services

 Life Enhancers: Cellular services, TV channels and DTH.

MARKETING OF SAVINGS AND INVESTMENT
SERVICES
MARKETING OF SAVINGS AND INVESTMENT
SERVICES
MARKETING OF SAVINGS AND INVESTMENT
SERVICES
 MARKETING OF SAVINGS AND INVESTMENT
SERVICES
NABARD plays a key role.

Types of refinancing facilities by NABARD

Agency Credit facilities
Commercial Banks Long term credit for investment purposes, financing the working capital
requirements of Weavers' Cooperative Societies (WCS) and State
Handloom/Handicraft Development Corporations

Short term cooperative structure (State Short term (crop and other loans), medium term (conversion) loans, term
Cooperative Banks, District Central Cooperative loans for investment purposes, financing weavers’ cooperatives, State
Banks, Primary Agricultural Credit Societies) Handloom Development Corporations for working capital by State
Cooperative Banks

Long term cooperative structure (State Term loans for investment purposes
Cooperative Agriculture and Rural Development
Banks, Primary Cooperative Agriculture and Rural
Development Banks)

Regional Rural Banks (RRBs) Short term (crop and other loans) and term loans for investment purposes

Non-government organizations (NGOs); Informal Revolving fund assistance for micro credit delivery innovations and
Credit Delivery System promotional projects
 SOURCES OF FUNDS

Regional Rural Bank (RRB)

Presently 86 RRBs are operating in the country with 15,107 branches in 615
districts. In terms of number of borrowers' coverage, the share of priority
sector was about 84 per cent to total loans issued during 2008–09.

Co-operative Banks

 Co-operative Credit Structure (CCS): State Cooperative Banks (SCB); District

Central Cooperative Banks (DCCB); Primary Agricultural Credit Societies
(PACS)
 Long term credit: Supplied by the Primary Cooperative Agriculture and Rural
Development Banks (PCARDB).
 Spread: There are now 367 central co-operative banks and over 92,000 primary
agricultural credit societies in the country with a membership of over 100
million.
 SOURCES OF FUNDS (CONTD.)

Commercial banks

 Priority sector lending: Domestic banks (including private banks)

contribute 40 percent and foreign banks contribute 32 per cent of their

net banking credit

 Two innovations: Micro-finance and Kisan Credit Card (KCC) Scheme

Micro-finance- BASIX,MYRADA,Share,Dhan Foundation ,Adithi, Access

Microfinance Alliance(AmFA)

KCC- August 1998,short term credit, March 2009-0.085 billion and credit

of Rs 3700 billion by RRB,s,co-operatives and CBS

 SAVINGS AND INVESTMENT BEHAVIOUR

The Max-NCAER survey results reveal that around 78.5 per cent of rural
households save some part of their earnings

Reasons: The predominant reasons for savings for the majority of

households are emergencies (81.2%) and education of children (79%).

Other reasons for savings are old age(66.7%), social ceremonies (63.9%),
buy or build house (44.8%), improve or expand business(43.5%), buy
large consumer goods (19.8%) and gifts (17.5%).
 PREFERRED MODE OF SAVING

 Almost 42 per cent of households keep their savings at home and about
45 per cent of the households opt for bank deposits.
 The other modes of savings are deposits in cooperative societies
(3.0%), post office (5.4%), insurance (1.8%) and chit funds (2.7%).

Savings and investment opportunities

 Bank deposits
 Postal savings
 Mutual funds
 INVESTMENT PATTERNS

Investments by households: occupation- wise (percentage of households)

Investment Salary/ Self-employed Labour Self-employed Others

type wages in non in agriculture
agriculture

Stock market 43.6 34.6 8.9 10.7 2.3

Small savings 48.7 18.7 7.6 21.4 3.6

Life insurance 39.9 25.8 9.1 21.5 3.7

 MARKETING MIX OF BANKING SERVICES

Mix Decisions
components
Product Combo products linking deposits with loans and insurance. Emphasis on
service quality.

Price Small savings with periodical (weekly too) payment facility

Place Branches, business correspondents, agents in case of postal savings , tie-ups

with kisan kendras, companies and NGOs.

Promotion TVs, FM, radios, print media, transit media, hoardings, van campaigns, word
of mouth, and leaflets.

Community Social responsibility programmes

service
 MARKETING OF CREDIT SERVICES

Credit needs: The credit needs of rural people are two fold:

 Occupational needs

 Household needs
Credit repayment behaviour

Rural folk are more community oriented, which makes for a better collections

environment.

Mahindra’s strategy has a less than one per cent rate of bad debts.

Factors responsible for lower delinquency levels are:

 One person responsible

 Customized credit

 Convenience in collection

 Continuous monitoring

 Opinion makers help

 MARKETING MIX OF CREDIT SERVICES BY BANKS

Mix components Decisions

Product Loans, both short term and long term; small to large
amounts; combo products; loan tied to savings
account
Price Priority lending rates determined by RBI and
reasonable interest rates in other cases.
Place Branches, tie-ups with micro-finance institutions,
companies and NGOs.
Promotion Sensitization programmes: meetings, opinion leaders,
NGO channels, SHG channels.
Community Social responsibility programmes
service
 MARKETING OF INSURANCE SERVICES

Types of insurance plans offered:

 Life insurance: For students, children, family, individuals, etc.

 Health insurance: For self, for family, accidental insurance premium, medical

claim policies, etc.

 Non-life insurance: Home or house Insurance and other property insurance,

auto Insurance (for cars, motorcycle and other two-wheelers, commercial

vehicles), infrastructure projects insurance, travel insurance, real estate

insurance, mobile insurance, etc.

 MAJOR PLAYERS

Some of the major players are :

LIC (Life Insurance Corporation of India) Reliance Life Insurance Co. Ltd
ICICI Prudential Life Insurance Co. Ltd HDFC Standard Life Insurance Co. Ltd
Bajaj Allianz Life Insurance Co. Ltd Birla Sun Life Insurance Co. Ltd
SBI Life Insurance Co. Ltd Max New York Life Insurance Co. Ltd
 IRDA Regulations

Every insurer transacting non-life insurance business, 'shall underwrite business in

the rural sector' of at least 2% of total gross premium in the first financial year, at
least 3% in the second financial year and 5% in the third and further financial years.
Life Insurance 5%,7%,10%,12%,15%

Private life insurers had covered 5.02 million lives and LIC covered 13.2 million lives
in the year 2012-13

The non life-insurers had underwritten a gross direct premium of Rs 8,196 crore in
the rural sector, which is 12.69 per cent of the gross direct premium underwritten (Rs
64,583 crore) by them in 2012-13.
 Policies For Rural Sector

 ICICI- Suraksha- small ticket size micro insurance policy

 LIC- Jeevan Madhur- Endowment assurance plan. Premium-
25/week,50/fortnight,100/month
 Tie up- LIC and COMAT technologies Pvt ltd- 1250 rural business centres-
increase reach ,awareness and settlement of claims.
 SBI Life- Grameen Shakti Shakti-dual benefit life insurance policy
Protection to the family member of group member.
 Distribution- SBI branches. Tie with Coromandel Ltd in AP. Sell Life insurance 427
rural retail outlets Gram Manor. Each centre would cover 30-40 villages having
5000 farm families in the radius of 20 km.
 Policies For Rural Sector

• Union Budget 2015-16.

• Pradhan Mantri Suraksha Bima Yojana (PMSBY), which is a Personal Accident
Insurance Scheme.

• Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY),

• Government’s Life Insurance Scheme. Both the schemes offer basic insurance at
minimal rates and can be easily availed of through various government agencies and
private sector outlets.
 MARKETING MIX OF INSURANCE SERVICES

Mix components Decisions

Product Combo products tied to life, non-life and deposits

Price Small premiums with periodical (weekly too) payment

facility
Place Agents, all retail outlets, part-time agents (retired
teachers, housewives and youth ) tie-ups with kisan
kendras and companies.
Promotion Advertisements, word of mouth, hoardings, and leaflets
MARKETING OF CELLULAR SERVICES
 MARKETING OF CELLULAR SERVICES

Prominent players have huge plans for rural India:

 Bharti Airtel

 Idea cellular

 Tata Teleservices

 Spice Telecom

 Reliance Communications

 Vodafone
 MARKETING OF CELLULAR SERVICES

 Bharti Airtel: innovative initiatives

 efficient infrastructure deployments, expanding its distribution network via

partnerships, and customized content and tariffs

 Micro financing agreements in collaboration with Nokia and SKS Micro-finance

 To expand coverage into rural regions- Sharing infrastructure services with Vodafone

(42 percent ownership) and Idea (16 percent ownership) through its joint venture.

Bharti Airtel also formed a joint venture with the Indian Farmers Fertilizer Cooperative

Limited (IFFCO). IFFCO's wide rural presence (present in 80 percent of Indian

villages) and appeal among the rural agricultural community to market and distribute

Bharti's products
 MARKETING OF CELLULAR SERVICES

 IFFCO Kisan Sanchar

 Subsidized handsets

 Connections at competitive rates in rural areas.

 Identify and acquire suitable locations for deploying its cell sites.

 Tailored services including voice-based updates on crop prices, farming techniques,

rural health initiatives, and "help line" services.

 MARKETING OF CELLULAR SERVICES

 Idea- TV Jalsa, FM- Idea Madhur, Masti Ki Patshala, Inviting opinion leaders like

sarpanch/head master for inauguration of tower.

 Vodafone- Gappa Goshti for prepaid customers of Maharashtra and Goa.

 Spice Mobiles- Sabka Spice -Handset and connection @599, one year validity,zero

rental for one year,call rate @50p,long battery life ,talk time of 3.5 to 4 hrs

 Reliance – JV with KRIBCO- KRIBCO Reliance Kisan Ltd(KRKL) 72% coverage-

25000 co-operatives,6300 member co-operatives and 60 KSK.

 MARKETING MIX FOR MOBILE SERVICES

Mix components Decisions

Product Simple handset with lifetime free prepaid service and a range of
value-added services (music, farm services, etc) and combo offers

Price Affordable prepaid charges, recharge coupons, group

subscriptions.

Place Cooperatives, Dabbawalas, Corporate malls, canteen stores

department (CSD), retail shops, haats and mandis

Promotion Vans, advertisements with celebrities in TV channels, sponsoring

programme s(movies and TV serials), FM radio and opinion
leaders