De hat business plan


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A Business plan for a village

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  • 70 % of India's population lives in 627000 villages in rural areas. According to the NCAER study, there are almost twice as many 'lower middle income' households in rural areas as in the urban areas.
  • The rural markets offer the great potential to help the India Inc which has reached the plateau of their business curve in urban India to bank upon the volume-driven growth.
  • Therefore sheer product availability can affect decision of brand choice, volumes and market share.
  • De hat business plan

    1. 1. DE - HAT
    2. 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. 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. 4.  Large and Scattered market Major income from agriculture Low standard of living Traditional Outlook Diverse socio-economic backwardness:
    5. 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. Indias 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. 6.  Place : Rajapur {Uttar Pradesh} Land : 1000 sq. ft. {owned} Capital Required: 20 lacs{inc. WC} Working Capital : 10 lacs People required: 7
    7. 7.  FMCG products White goods Apparels Bikes Tractors Insurance seeds
    8. 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. 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. 10.  Primary healthcare facility Information centres They can log on internet and check the pricing and sell their commodities. Godowns facilities
    11. 11.  Radio advertising News papers. Pamphlet distribution Word of mouth publicity Special offers Advertising cost : 1 lakhs
    12. 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. 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. 14.  Special offers Appropriate pricing Good atmosphere All services under the roof Product demonstrators Good quality product Proper service
    15. 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. 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
    17. 17.  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