case study solution presentation contain marketing strategies

1. ITC IN RURAL INDIA
Prasanna M Kashettiwar
FMS/MBA/2018-20/083

2. RURAL MARKETING
It is a two-way marketing process.
There is inflow of products into rural
markets for production or consumption
and there is also outflow of products to
urban areas.

3. ITC
 Incorporated in August 1910
 Diversified business
• Cigarettes & leaf Tobacco
• Packaging & printing
• Hotels
• Education
• Paperboard
• Lifestyle retailing
• FMCG business
 Market capitalization > $22 Billion
 India’s largest exporter of Agricultural products
 Employs 26,000 at over 60 locations across the
country
 Over 3,73,000 shareholders

4. PEST Analysis: Post Independence
POLITICAL
Congress Dominance
Politically Active Unions
Govt. took over ‘sick ‘ companies.
MNCs urged to liquidate equity with a cap
of 40%.
ECONOMIC
Favored Capital Goods, increased black
market.
Low competition in domestic market
Not competent enough for international le
vel.
Lower purchasing power of consumer.
Foreign Investment Discouraged
SOCIAL
88% of the rural population below poverty
line
Poor Infrastructure
NGOs to assist smaller level
cooperatives.
TECHNICAL
New technologies were not accessible
Limited access to information for rural s
ector.
Limited mediums available to promote
brand building.
Post
Independence

5. Challenges & opportunities for ITC in Rural India
Rising rural prosperity
Challenges Opportunities
Low penetration level of FMCG products
Huge Consumer Base
IT Penetration in Rural India
Imminent Growth
Rural Consumer is different
Lack of market data to understand
consumer behavior
Dispersed population in village
Influence of retailer
Heterogeneous culture
Inadequate infrastructure and cyclic
income

6. ITC in Rural India
Product & Services
• FMCG
• Agri- Commodities
 ITC IT- enabled Procurement
 Procurement hubs
• E-Choupal
Activities in Villages
• Provide assistance in procurement of
farmers produce
• Rural mini-malls
• Shakti Vani program

7. HUL’s game plan-Shakti Program
Women Empowerment
02
01
03
The company distributors brought
products from district warehouses
to village entrepreneurs home
whereas ITC uses procurement
hubs.
Distribution
The self help groups: were
trained by a 1000 people
strong field force and moved
in groups of three to five
from door-to-door to sell
HUL products.The end customers got the benefit
of doorstep delivery of products,
got introduced to new product
launches and proper use of
particular products.
Customer

8. Bottom of Pyramid
1. Availability
- Hub & Spoke model
2. Acceptability
- Distribute or sell a
Product
3. Affordability
- Breaking the initial
Barrier and changing
the packaging
4. Awareness
- Promotion of the
products

9. Marketing Mix of ITC’s Rural Strategy
Place
Developed procurement hubs , rural mi
ni malls in the vicinity of villages.
All products available under one roof.
Selling, purchasing and storage at the s
ame place.
Promotion
• Products were sold through samyojaks,
sanchalaks .
• Awareness among farmers,CSR activitis.
job opportunities.
• Better facilities at hubs.
• Fair dealing with farmers.
• Skilled central management group.
Product
• Highly diversified product range.
• Products are of relatively high
quality
• Quality input to farmers
Price
• Agricultural inputs were
aggressively priced (lower than
competitors)
• Comparable products at lower
price under different brand name.

10. SWOT Analysis of ITC Rural Marketing

11. Conclusion
 E-Choupal is an innovative strategy which is
elaborative & extensive in rural markets
 RURAL WEALTH CREATION in Agriculture through
securing empowerment, collaborations & competitions
 A transformational initiative for substantial
development of society
 Commitment to transparency & the respect & fairness
with which both farmers & local partners are treated

12. THANK YOU