Godrej Agrovet is a subsidiary of Godrej Industries Ltd.
GIL holds 57% share of Godrej Agrovet.
Godrej Aadhaar is a program of Godrej Agrovet for rural India with its motto as -
“ Khushiyon ka, Khushhali ka”
Offers great value proposition
“ Unnati Ghar Sansaar and Gaon”
Multi category retail service and retail outlet
Started in December 2003 in Manchar, Pune District.
Aadhaar Centres - Maharashtra, Gujarat, Punjab, Haryana, Andhra Pradesh, Tamil Nadu, Orissa and West Bengal.
Improved cost benefit ratio
Offers crop advisory services
Soil and water testing services
Buy back of output
It services around 20 villages in its radius.
Team of qualified Agronomists who interacts with farmers on a daily basis
Educate the farmers on farm practices.
NEED GAP ANALYSIS
Need to educate
Potential in rural areas
Few players in rural
People are loyal towards the brand
Inappropriate information flow
Availability of products
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.
There purchasing power is increasing,
Exposure and increase in literacy rates will open
Govt. focus on agricultural policies will increase in rural earning,
Population is becoming brand conscious,
Infrastructure is improving rapidly. - In 50 years 40% villages connected by road, in next 10 years another 30%. - More than 90 % villages electrified, though only 44% rural homes have electric connections. - Rural telephone density has gone up by 300% in the last 10 years; every 1000+ popultion is connected by STD.
Social Indicators have improved a lot between 1981 and 2001 - Number of "pucca" houses doubled from 22% to 41% and "kuccha" houses halved (41% to 23%) - Percentage of BPL families declined from 46% to 27% - Rural Literacy level improved from 36% to 59%
Low penetration rates in rural so there are many marketing opportunities.
Initial cost to penetrate such a vast market is very high
Increasing costs of land
Pace of expansion
High operating cost
Low margin on agri-inputs
Many languages and communities.
4 Ps OF RURAL MARKETING Every Product and promotion, which is a hit in cities , might not work in rural areas Product Price Place Promotion
GODERJ AADHAR- PRODUCT’S
Product for rural market must be built or modified to suit the lifestyle and needs of the rural consumers
These centres provide valuable technical guidance, soil & water testing services.
They also retail quality products of leading companies.
Aadhaar centres also facilitate credit to farmers and provide a platform to sell their produce. ; buy back of output, crop finance
Supply of agri-inputs and animal feeds
Transfer of information (weather, price, and demand supply)
Door delivery of products among other things
To farmers, it’s a complete solution under one roof.
ON THE BASIS OF FEED BACK THEY HAVE ALSO DEVELOP
footwear to furniture
value-added services including Banking service.
The villagers due to their limited resources are very price sensitive by nature.
Some retailers in the interior village charge more than the MRP.
Objective of this business venture of Tata Agrico is to enable its products to reach the farmers in the rural interiors of the country at the right price.
Large Volume –low margin.
Overall Efficiency And passing on benefits to consumers.
low cost/ value for money product
Low volume-low price.
Godrej Aadhar chain seeks to empower the farmer by setting up centers which provide all encompassing solutions to the farmers under one roof.
Direct contact with the rural consumer.
Multipurpose distribution center.
Promotion aspect always creates a challenge in rural markets because of the fact that village have thin population density and are widely spread over large remote areas.
High reach High frequency- jeep based advertisement, wall painting and bus stand & bus panels.
Direct to home.
4 As of Rural Marketing Mix
Definitely there is lot of money in rural India.
But there are hindrances at the same time.
The greatest hindrance is that the rural market is still evolving and there is no set format to understand consumer behavior.
Lot of study is still to be conducted in order to understand the rural consumer.