Towns Districts UA Variables

MICA Market Ratings

 Indian Market
Sources of Data
 Census of India 2001
 Ministry of Agriculture- Land Use and Value of Crop Production- 2001-02
 Fertilizer Association,2006- Fertilizer Consumption
 Audit Bureau of Circulation of India- Jan-June, 2005- Circulation of Dailies
 Reserve Bank of India –Report on basic statistical returns- 2006
 National Sample Survey, 2004-05 – MPCE
Potential. Indexed.
Introduction

Good business sense dictates that for a venture to be successful, returns must exceed the inputs,
both financial and physical. In an increasingly competitive landscape, it is imperative that returns
for every venture be estimated with some degree of certainty before it is even rolled out. These
returns are directly linked to the potential of the market in which the venture is rolled out. In order
to successfully roll out a venture or a marketing campaign in multiple markets, it becomes extremely
important to identify markets with the highest potential. This is the context in which a market
potential study assumes importance.

India presents a unique challenge due it its vastness and diversity. Marketing resources and efforts
must be optimized in various markets to maximize returns. The most popular area segmentations are
states, metros, urban and rural. The state as a division is fairly large and diverse. To take marketing
decisions based on knowledge at this aggregate state level would lead to suboptimal returns. This is
why market potential ratings for areas within states become relevant and important. These areas have
to be geographically identifiable and compact enough to enable localization of marketing efforts.

MICA Market Rating (MMR) attempts to

address this problem. Covering 579 districts
Who Can Use MMR
across the country, MMR is perhaps the largest
and most comprehensive market potential
MMR can be used by strategic decision makers
study of its kind. It uses data on demographic
to make informed marketing decision in
and economic variables taken from reliable
various industry sectors such as Advertising,
sources like Census of India, RBI, NSS, and
Manufacturing, FMCG, Durables, Banking
Audit Bureau of Circulation among others.
& Finance, Food Products, Automobiles,
Advanced statistical methods are then applied
Pharmaceutical, Travel & Hospitality, and
to this data to derive the market potential
Telecommunication etc.
rating for each of the 579 districts.

MMR can also be used by consultants, entre-

preneurs, academicians and students to get a
better understanding of the market potential
across India.
Salient Features
 Market Ratings for 579 districts/district groups of India indicating overall district potential.
 Figures for given variables based on complete enumeration rather than estimation or extrapolation.
 Consequently, these figures can be easily used for relative measurement.
 Since the market potential of a district is a linear combination of various economic and demographic
variables, the ratings are additive over a group of districts.
 Dividing the market rating of one district by another gives a relative market potential of the districts.
 Flexibility in terms of constructing new ratings for a particular product category or geography by
altering the weights of the principal variables.

As a by-product
 Ratings of Rural segment of districts
 Ratings of Urban segment of districts
 Ratings of 79 Urban Agglomorations

Data on 42 demographic and economic variables separately

 For district level (urban + rural)
 For urban and rural segments of the districts
 For the 79 Urban Agglomorations
 Data on 29 demographic and economic variables for 5154 towns

Digitized Maps of all districts with pictorial location

 Urban towns
 Tehsil headquarters
 National and state highways
 Railway lines with railway stations

User Interface permitting

 Enlargement and reduction of map
 Retrieval of desired data
 Entering of specific market and company data along with demographic and economic variables data
 Enabling simple arithmetic calculations of the data for better understanding
 Rural Urban
Variables
(25 Variables) (23 Variables)

Demographic
Total Population  
Number of Households  
Literate Population  
Total Workers  
Main Workers  
Towns
Main Cultivators  
Agricultural Population  
Non-Workers  

Ownership
Radio/ Transistor  
Television  
Telephone  
Bicycle  
Two-Wheelers  
Jeep/Van  
Circulation of Dailies  

Financial Services
Bank Deposits  
Bank Credits  
Number of Bank Accounts  
Number of Bank Branches  

Agricultural
Cropped Area  
Irrigated Area  
Value of Crop Production  
Fertilizer Consumption  
Amenities
Water Source  
Bathroom Facility  
Number of Rooms  
Electrified Households  
LPG Users  
Number of Hospitals / Health Centers  
Hotels/ Lodges/ Guest Houses  
Hospital Beds  
Educational Institutes  
Number of Commercial Establishments  
Number of Factories  
Number of Worship Places  

Principal Variables and their Coefficients

Rural Segment
Total Population 0.3053
Electrified Households 0.1252
Cropped Area 0.2731
Irrigated Area 0.1590
Bank Deposits 0.1372

Urban Segment Variables
Total Population 0.2775
Hospital Beds 0.0314
Bank Deposits 0.2690
Circulation of Dailies 0.1100
Hotels / Lodges / Guest Houses 0.2040
Car Owners 0.1080
 Methodology

25 indicator variables 23 indicator variables

for the Rural Segment for the Urban Segment

Factor Analysis Technique to select

statistically independent Principal Variables

5 Principal Variables 6 Principal Variables

for the Rural Segment for the Urban Segment

Discriminant Analysis to determine

coefficients for the linear combination
of Principal Variables

Rural Market Potential Index Urban Market Potential Index

Weighted Linear Combination of Rural and

Urban Market Potential Indices based
on Projected Consumer Expenditure
for Rural and Urban Segments

District Market Potential Rating

Why MMR IS essential for your organization

 MICA Market Ratings (MMR) give the overall relative market potential of different districts. Since the
Ratings have been obtained as a linear combination of demographic and economic variables’ values, the
Ratings are applicable for a wide range of consumer products.
 These Ratings can be manipulated as common arithmetic numbers; that is to say the Ratings can be added
over different districts to get the overall rating for that district group. The rating of one district can be
divided by the rating of another district to understand the relative potentials of the two districts.
 The company’s and industry’s performance can be evaluated by dividing the corresponding information
by the rating of the district(s).
 In case companies want to focus attention only on the urban/rural segment of the districts, MMR
provides ratings separately for urban and rural segments. It has to be clearly understood that urban and
rural ratings are not directly comparable; that is to say if the rural rating of a district is higher than that
of urban rating of that district, it does not imply that rural potential of that district is higher than that
of urban potential of that district. This is due to the fact that variables used are different for rural and
urban and the base districts used are also different for rural and urban ratings.
 In line with the above, some corporates may like to concentrate only on larger cities. Hence Ratings
have been worked out separately for 79 cities and urban agglomerations with population over 5 lakh.
 The software allows entering company and industry data and analysis, using Ratings data, to evaluate
the relative performance different areas.
 Besides the Ratings data, information is also given on various demographic, economic and financial
variables at district level, enabling the user to relate his company’s performance using the data on other
variables.
 In addition to rating data, information is also provided on various economic and demographic variables
at the district level, enabling the user to relate his company’s performance with other available variables
of his choice.
 Since MMR provides basic data for several variables at the district level, in case the user feels the need to
assign a different set of weights to the data for hi specific product category or for a particular geography,
the software provides the flexibility to do so.
Zone-wise market ratings
Sample
Zone

North Zone
Market Rating

444.44
Data
West Zone 376.81
South Zone 317.34
East Zone 262.08
All India 1400.67

Top 10 Districts

State District Market Rating

Maharashtra Mumbai 100.00

Delhi Delhi 83.84
Karnataka Bangalore 32.67
WestBengal Kolkata 29.21
Tamilnadu Chennai 23.43
Andhara Pradesh Hyderabad 19.63
Maharashtra Pune 15.52
Maharashtra Thane 14.32
Gujarat Ahmedabad 14.19
West Bengal Medinipur 8.30

Relative Penetration at Zonal level

TVs as a % Cars as a %
of Radios of Two wheelers

All India 90 21.7

North 88.3 27.8
East 58 27
West 124.9 19.5
South 93.6 18
Index scores for specific economic parameters

Parameters All India North East West South

Electrified Households (%) 55.4 51.8 26.5 73.2 71.9
LPG Households (%) 17.4 19.7 8.6 23.2 18.4
Radio Households (%) 34.9 40.4 31.2 29.6 37.8
TV Households (%) 31.4 35.7 18.1 36.9 35.4
Bicycles (per 1000 pop.) 82 91 87 72 71
Two Wheelers (per 1000 pop.) 22 24 10 28 27
Cars (per 1000 pop.) 5 6 3 5 5
Households with Bank Accounts (%) 13.8 14.3 10.5 19.2 11.9
Per Capita Deposit (Rs.) 20138 21163 10027 29696 20890
(incl. Commercial A/C)
Irrigated to Cropped Area (%) 40.5 61 32.7 24.7 36.4
Fertilizer Usage (kg) 279 198 258 392 428
per Hectare of Irrigated Area
Crop Value (Rs.) 21613 20942 29879 13044 27414
per Hectare of Cropped Area

Correlation Coefficient for MMR and several variables

Correlation Coefficient Variables All India North East West South

Two Wheelers 0.68 0.92 0.62 0.43 0.88
Cars 0.89 0.99 0.86 0.91 0.93
Deposits 0.98 0.99 0.92 0.99 0.98
Radios 0.77 0.91 0.67 0.84 0.76
TVs 0.86 0.94 0.80 0.85 0.88
LPG Households 0.88 0.96 0.81 0.84 0.88
Electrified Households 0.77 0.92 0.78 0.81 0.72
Circulation of Dailies* 0.88 0.99 0.92 0.95 0.92
Population 0.67 0.78 0.64 0.76 0.65
Cropped Area** 0.78 0.76 0.76 0.83 0.76
* Considered for Urban Segment only    
** Considered for Rural Segment only    
 Project Team: G. Parthsarthy
Vina Vani
Shailesh Yagnik

Mudra Institute of Communications, Ahmedabad (MICA), Shela, Ahmedabad – 380 058 Gujarat INDIA
Tel: + 91-2717-308250 Fax: + 91-2717-308349 email: mmr@micamail.in