A Business plan for a village

1. DE - HAT

2.  Two-thirds of countries consumers live in rural areas and almost
half of the national income is generated here.
 Our nation is classified in around 450 districts, and approximately
630000 villages.
 Middle and high-income households in rural India is expected to
grow from 80 million to 111 million by 2008.
 In urban India, the same is expected to grow from 46 million to 59
million.

3.  The idea is to open a retail outlet in rural areas which are basically
not surrounded by farms, and are in the centre of many villages.
 The Indian rural market with its vast size and demand base offers
a huge opportunity that MNCs cannot afford to ignore.
 With 128 million households, the rural population is nearly three
times the urban.

4.  Large and Scattered market
 Major income from agriculture
 Low standard of living
 Traditional Outlook
 Diverse socio-economic backwardness:

5.  The rural market accounts for half the total market for TV sets, fans, pressure
cookers, bicycles, washing soap, blades, tea, salt and toothpowder
 The first challenge is to ensure availability of the product or service.
 India's 627,000 villages are spread over 3.2 million sq km
 Any serious marketer must strive to reach at least 13,113 villages with a
population of more than 5,000.
 Study on buying behaviour of rural consumer indicates that the rural retailers
influences 35% of purchase occasions.

6.  Place : Rajapur {Uttar Pradesh}
 Land : 1000 sq. ft. {owned}
 Capital Required: 20 lacs{inc. WC}
 Working Capital : 10 lacs
 People required: 7

7.  FMCG products
 White goods
 Apparels
 Bikes
 Tractors
 Insurance
 seeds

8.  Floor manager : 1
 Product demonstrator : 6
 SALARY
 Floor manager :8,000
 Product demonstrator :4,000
So the total salaries given is
8,000 + 24,000. = 32,000

9.  Mall will be open from 5 am to 10 pm.
 It will sells everything that a rural consumer may ask for.
 Banking and automated teller machines will be standard at the
malls.
 Insurance products for farmers.
 Entertainment facilities, restaurants, public facilities and parking
space will also be available.
 Parking lot for 160 tractors.

10.  Primary healthcare facility
 Information centres
 They can log on internet and check the pricing and sell
their commodities.
 Godowns facilities

11.  Radio advertising
 News papers.
 Pamphlet distribution
 Word of mouth publicity
 Special offers
Advertising cost : 1 lakhs

12.  The future plan of the DE – HAT is to open more number
of stores in the same type of areas as the first one.
 Gradually increase the value of the brand, enter the semi
urban areas.
 Giving the customers the great service and good quality
products and different brands
 To make DE – HAT a national brand.

13.  Chaupal Sagar is one of the first organised retail forays into the
hinterland.
 It is actually a warehouse for storing the farm produce that ITC
buys through its e-chaupals.
 The mall has come up in one part of this warehouse.It has been set
up by the international business division of tobacco major ITC.
 It has been initiated as rural shopping-cum-information centres in
Madhya Pradesh.
 ITC Spent 3 years and Rs.80 crores on research and development
of this concept including investments in E-choupal

14.  Special offers
 Appropriate pricing
 Good atmosphere
 All services under the roof
 Product demonstrators
 Good quality product
 Proper service

15.  Since it is a retail outlet so there will be muti
brands available in the outlet so the products
will be purchased in bulk and the per product
price will come down and hence the customer
will be able to purchase it at a relativly cheaper
price

16.  Fixed cost
 Building : 5,00,000
 Land: owned
 Other equipments: 5,00,000
 Variable cost
 Salaries : 3,84,000
 Advertising : 1,00,000
 Products: 5,00,000
 Misc.: 16,000

18.  If some how the business does not do well
which is a remote possibility, because a lot of
research will be done before starting up the
store.
 Even then if the store does not does well. We’ll
have a big hall which can be divided into many
small shops and then it can be sold to different
purcahsers