Pradeep Kashyap ,CEO MART, Delhi based Rural Marketing Research & Consulting Firm explaining rural retail scenario in India and opportunities & challenges in emerging markets.
Rural distribution models can be categorized into smaller companies using a wholesale activation route and bigger companies using a retail route. There are two main rural distribution models - the van/sub-stockist model and the sub-stockist operation model. FMCG companies distribution models can also be divided into two models - Distribution Model 1 (DM1) involving sub-distributors and Distribution Model 2 (DM2) minimizing distribution costs. Emerging rural distribution channels include Self Help Groups (SHGs), satellite distribution, syndicated distribution, NYKS model, petrol pumps, agricultural input dealers and others.
HUL and ITC are the two largest FMCG companies in India. HUL has the largest portfolio of household brands and saw higher sales turnover in 2013 than 2012. ITC was originally an tobacco company but has diversified into foods, hotels, and other sectors. Both companies divide customers into segments - striving, aspiring, and affluent - and target each segment differently with branded products at various price points. While HUL focuses on cost leadership, ITC aims to deliver value. ITC has overtaken HUL in food sales but HUL maintains an overall lead in the non-cigarette FMCG market. Both companies employ strategies around segmentation, targeting, and positioning to compete effectively.
This document summarizes the business and growth of DMart, a value retailer in India. It operates predominantly through an ownership model of stores located in densely populated residential areas. Between 2012-2016, DMart's revenues and profits grew at CAGRs of 40% and 54% respectively, with like-for-like growth above 20% each year. This growth has come from increasing its store count and growing sales volumes, not from price inflation. DMart focuses on the essential product categories of food, FMCG, and general merchandise. It aims to sustain its low-price strategy through high operational efficiency from inventory management, a clustered store network, and regional distribution centers. DMart filed plans to use its upcoming IPO
The document discusses ITC Ltd's strategic management approach across its various business divisions. It outlines ITC's vision, mission, and core values. It then analyzes each of ITC's business divisions - FMCG (cigarettes, foods, etc.), paperboards and packaging, agri-business, and hotels. It discusses the sales and growth rates of each division and ITC's market share and competitive strengths. It also performs a SWOT analysis and maps the business divisions using the BCG matrix to identify strategic priorities and learning opportunities.
Organized Retail India - Critical AnalysisAmit Kumar
Document looks at organized retail in india and its hype and success and prediction . The successes have come but at a pretty low return for stock investors and a pathetic return on capital employed. This is sure to continue in future as well
- HUL (Hindustan Unilever Limited) is an Indian consumer goods company based in Mumbai that is majority owned by Unilever. It produces foods, beverages, cleaning agents, and personal care products.
- P&G (Procter & Gamble) is an American multinational consumer goods company headquartered in Cincinnati, Ohio. It produces cleaning agents and personal care products that are sold globally.
- The document analyzes financial ratios for HUL and P&G for 2013-2014 to evaluate profitability, efficiency, liquidity, leverage, and investor returns. Key ratios like operating margin, inventory turnover, and return on equity are compared between the two companies for the two
Rural distribution models can be categorized into smaller companies using a wholesale activation route and bigger companies using a retail route. There are two main rural distribution models - the van/sub-stockist model and the sub-stockist operation model. FMCG companies distribution models can also be divided into two models - Distribution Model 1 (DM1) involving sub-distributors and Distribution Model 2 (DM2) minimizing distribution costs. Emerging rural distribution channels include Self Help Groups (SHGs), satellite distribution, syndicated distribution, NYKS model, petrol pumps, agricultural input dealers and others.
HUL and ITC are the two largest FMCG companies in India. HUL has the largest portfolio of household brands and saw higher sales turnover in 2013 than 2012. ITC was originally an tobacco company but has diversified into foods, hotels, and other sectors. Both companies divide customers into segments - striving, aspiring, and affluent - and target each segment differently with branded products at various price points. While HUL focuses on cost leadership, ITC aims to deliver value. ITC has overtaken HUL in food sales but HUL maintains an overall lead in the non-cigarette FMCG market. Both companies employ strategies around segmentation, targeting, and positioning to compete effectively.
This document summarizes the business and growth of DMart, a value retailer in India. It operates predominantly through an ownership model of stores located in densely populated residential areas. Between 2012-2016, DMart's revenues and profits grew at CAGRs of 40% and 54% respectively, with like-for-like growth above 20% each year. This growth has come from increasing its store count and growing sales volumes, not from price inflation. DMart focuses on the essential product categories of food, FMCG, and general merchandise. It aims to sustain its low-price strategy through high operational efficiency from inventory management, a clustered store network, and regional distribution centers. DMart filed plans to use its upcoming IPO
The document discusses ITC Ltd's strategic management approach across its various business divisions. It outlines ITC's vision, mission, and core values. It then analyzes each of ITC's business divisions - FMCG (cigarettes, foods, etc.), paperboards and packaging, agri-business, and hotels. It discusses the sales and growth rates of each division and ITC's market share and competitive strengths. It also performs a SWOT analysis and maps the business divisions using the BCG matrix to identify strategic priorities and learning opportunities.
Organized Retail India - Critical AnalysisAmit Kumar
Document looks at organized retail in india and its hype and success and prediction . The successes have come but at a pretty low return for stock investors and a pathetic return on capital employed. This is sure to continue in future as well
- HUL (Hindustan Unilever Limited) is an Indian consumer goods company based in Mumbai that is majority owned by Unilever. It produces foods, beverages, cleaning agents, and personal care products.
- P&G (Procter & Gamble) is an American multinational consumer goods company headquartered in Cincinnati, Ohio. It produces cleaning agents and personal care products that are sold globally.
- The document analyzes financial ratios for HUL and P&G for 2013-2014 to evaluate profitability, efficiency, liquidity, leverage, and investor returns. Key ratios like operating margin, inventory turnover, and return on equity are compared between the two companies for the two
Rural India is characterized by low per capita income, low productivity, low literacy and low rate of industrialization along with absence of basic amenities. The unprivileged class is set back by a lack of educational opportunities that could empower them to confidently pursue economic progress and overcome the debilitating effects of low literacy and rigid social hierarchies. India’s rural markets are growing at double the rate of urban markets. The retail revolution is going to act as a catalyst. So, the new concept that is hitting the market today is the "Rural Retailing".
This document discusses organized rural retailing in India. It provides examples of major organized rural retail models including Hariyali Kisaan Bazaar, Aadhaar Retailing, ITC Choupal Sagar, and Tata Kisan Sansar. These models operate retail stores in rural areas that offer agricultural inputs, consumer goods, services like credit and insurance to serve the needs of local farmers and communities. Organized rural retailing is seen as an important opportunity in India as around 70% of the population lives in rural areas with growing incomes and purchasing power.
The document discusses rural retail in India, focusing on three major players: Godrej Adhar, ITC Chaupal, and Hariyali Kisan Bazaar. Hariyali Kisan Bazaar aims to simplify the rural retail experience for farmers by providing a one-stop shop for agricultural inputs, information services, product procurement, and more across its network of outlets. It now has over 177 outlets across 8 states and plans to expand further. The model provides farmers with better access to resources and pricing, helping to increase their incomes and standard of living.
“Retailing includes all activities involved in selling goods or services directly to final consumers for personal , non business use.” - Philip Kotler
70% population lives in villages
About 6 lakh villages are in India
Rural retail are growing @7%
A real source of energy
Hub of raw materials
The document discusses trends in rural vs urban markets in India. Some key points:
1) Rural markets are growing twice as fast as urban markets and rural consumers are purchasing more appliances like refrigerators and mixers.
2) Rural purchasing power is increasing, with the average rural household owning 3 durables vs 7 for urban households.
3) FMCG, consumer durables, apparel, pharmaceuticals, and food/grocery sectors see over 50% of sales coming from rural India.
Opportunities and challenges in indian rural marketSAMEER LAKHANI
The document discusses opportunities and challenges in the Indian rural market. It outlines objectives related to studying the current rural market scenario in India. It examines the scope, needs, features and importance of rural markets. Some key opportunities in rural markets include rising incomes, improved infrastructure, and changing consumption patterns. However, marketers also face challenges such as low literacy, distribution issues, and seasonal demand fluctuations. Innovative rural marketing practices adopted by companies are also described.
The document provides an overview of rural marketing in India. It discusses:
1) Rural marketing is becoming increasingly important as rural markets outpace urban markets in growth. Many companies have made inroads into rural India.
2) Rural consumers have different characteristics than urban consumers due to factors like occupation, income sources, and lifestyle. Their buying behavior is influenced by their culture, reference groups, and available information.
3) Rural and urban markets differ in terms of population density, infrastructure, income stability, and other factors. Marketers must tailor their approaches to address the specific constraints of rural areas.
The document discusses strategies that companies are using to market to rural Indian consumers. Some of the key strategies mentioned include communicating about quality and value to change rural perceptions; using Indian languages in promotions; understanding cultural values; developing rural-specific products; associating with Indian celebrities, sports teams, and culture; and using effective media communication tailored for rural audiences. The overall strategies are aimed at better understanding rural customers and associating the company's brands with Indian values and identities.
This document discusses rural retailing in India and its future outlook. It notes that rural markets represent a large opportunity as two-thirds of India's consumers live in rural areas. Rural demand is growing for packaged foods, personal care products, and other goods. Several companies have customized their products, pricing, and distribution for rural consumers. While rural retailing faces challenges like infrastructure and taxation issues, the future outlook remains positive as rural incomes and consumption are expected to significantly increase over the next decade. Organized retailers and FMCG companies are recognizing the potential of rural markets.
The document discusses the growing importance of rural markets in India. It notes that over 70% of India's population lives in rural areas, yet they remain an untapped market. Rural incomes are rising due to increased agricultural procurement prices and government programs, growing the rural consumer market. Companies will need targeted marketing strategies to succeed in rural India, focusing on product relevance, affordable prices, widespread distribution networks, and culturally-appropriate communication. Developing a dedicated rural business vertical and leveraging new retail and IT models can help companies better access this sizable rural consumer base.
Rural retailing in India is an important and growing sector. Approximately 70% of India's population lives in rural areas across 66,000 villages. Rural retail is growing at 7% annually and represents a significant portion of India's overall GDP and consumption in various industries such as FMCG. However, rural retailing also faces challenges including poor infrastructure, lack of suitable dealers and retailers, and low investment capacity. To succeed in rural markets, companies must focus on availability, affordability, acceptability, and awareness of products for rural consumers. Various models for rural retailing have emerged such as Hariyali Kisaan Bazaar, Aadhaar, and E-Chaupal which aim to be one-stop shops
This document discusses rural retailing in India. It notes that 70% of India's population lives in rural areas and rural retail is growing at 7% annually. Rural retail represents a large market opportunity, estimated at $112 billion currently. Organized retail makes up only 3% of the total retail sector in India, with 97% being unorganized. Some challenges to rural retailing include poor infrastructure like roads and storage facilities. Successful rural retail models provide a one-stop shop for farmers and focus on availability, affordability, acceptability, and awareness of products in rural markets.
The document discusses the challenges and opportunities of marketing in rural India, noting the vast rural population and growing purchasing power but also challenges like poor infrastructure, understanding rural consumers, and effective promotion. It outlines strategies for rural marketing like customizing products, using local distribution methods like village fairs, and folk media for promotion. Capturing the rural market requires treating it as independent from urban areas and understanding unique rural consumption patterns.
The document discusses opportunities and challenges for logistics and supply chain management in rural India. It notes that over 70% of the Indian economy is centered in rural areas, representing $100 billion in potential. However, poor rural infrastructure makes logistics difficult. The growth of retail and demand for goods from rural consumers represents an opportunity for logistics companies to develop supply networks reaching rural markets. Key challenges include lack of transportation infrastructure and ensuring availability and affordability of goods for low-income rural populations.
Rural marketing involves planning and implementing marketing functions tailored to rural areas. It differs from urban marketing in several key ways, including infrastructure availability, income patterns, lifestyle and culture, accessibility, and media habits. The case study describes Akashganga, a computerized dairy management system that helps farmers increase efficiency and transparency in milk collection and payment. By offering trials, responsive service, and hiring local people, the company was able to gain farmers' trust and succeed in the rural market.
The document discusses the role and importance of rural India's economy. It notes that around 700 million people, or 70% of India's population, live in rural areas. A mere 1% increase in rural income translates to Rs. 10,000 crore in increased buying power for rural Indians. Many major companies like HLL and Colgate have focused on penetrating rural markets through programs like "Operation Bharat" and "Operation Jagruti". The document also discusses the rural consumer profile, FMCG consumption trends in rural areas, and strategies companies use to target rural consumers effectively.
The document discusses the role and importance of rural India's economy. It notes that around 700 million people live in rural India, accounting for 70% of the country's population. Rural India offers a huge potential market, as even a 1% increase in rural income translates to Rs. 10,000 crore in additional buying power. Many major companies like HLL and Colgate have focused on penetrating rural markets through programs like "Operation Bharat" and "Operation Jagruti". The document also provides details on the performance and strategies of major FMCG companies in rural India.
This document discusses the growth of new retail formats in India. It notes that organized retail currently makes up 3% of the $200 billion Indian retail industry, but is projected to reach $23 billion and 20-25% market share by 2010. Modern retail formats like supermarkets and hypermarkets are growing rapidly. Changing consumer demographics, lifestyles, and increasing incomes are fueling retail growth. Both domestic and global retailers see opportunities in India and are exploring new formats to serve both urban and rural markets.
Tata Shaktee, a manufacturer of galvanized corrugated sheets, saw stagnant sales for two years due to marketing only through static media like wall paintings and videos. MART recommended promoting the brand at weekly rural markets to directly target their illiterate, low-income customer base. They participated in over 5,000 markets across 17 states, exposing 4 million potential customers to the brand through interactive games and surveys. This resulted in a 30% growth in sales at retail outlets.
HPCL launched the Rasoi Ghar project to promote the use of LPG for cooking in rural Indian households as an alternative to firewood. Through the project, over 1,600 community kitchens have been established in villages across six states, where women can cook using LPG stoves and cylinders at a nominal cost. The model involves the local government donating space, HPCL providing cooking equipment, and a self-help group member managing the kitchen, with fees collected going towards refills and wages. The goal is to educate women about the safety, ease and health benefits of LPG, so they eventually purchase their own connections.
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Similar to A rural retailer’s green shoots live mint:Pradeep Kashyap ,CEO MART
Rural India is characterized by low per capita income, low productivity, low literacy and low rate of industrialization along with absence of basic amenities. The unprivileged class is set back by a lack of educational opportunities that could empower them to confidently pursue economic progress and overcome the debilitating effects of low literacy and rigid social hierarchies. India’s rural markets are growing at double the rate of urban markets. The retail revolution is going to act as a catalyst. So, the new concept that is hitting the market today is the "Rural Retailing".
This document discusses organized rural retailing in India. It provides examples of major organized rural retail models including Hariyali Kisaan Bazaar, Aadhaar Retailing, ITC Choupal Sagar, and Tata Kisan Sansar. These models operate retail stores in rural areas that offer agricultural inputs, consumer goods, services like credit and insurance to serve the needs of local farmers and communities. Organized rural retailing is seen as an important opportunity in India as around 70% of the population lives in rural areas with growing incomes and purchasing power.
The document discusses rural retail in India, focusing on three major players: Godrej Adhar, ITC Chaupal, and Hariyali Kisan Bazaar. Hariyali Kisan Bazaar aims to simplify the rural retail experience for farmers by providing a one-stop shop for agricultural inputs, information services, product procurement, and more across its network of outlets. It now has over 177 outlets across 8 states and plans to expand further. The model provides farmers with better access to resources and pricing, helping to increase their incomes and standard of living.
“Retailing includes all activities involved in selling goods or services directly to final consumers for personal , non business use.” - Philip Kotler
70% population lives in villages
About 6 lakh villages are in India
Rural retail are growing @7%
A real source of energy
Hub of raw materials
The document discusses trends in rural vs urban markets in India. Some key points:
1) Rural markets are growing twice as fast as urban markets and rural consumers are purchasing more appliances like refrigerators and mixers.
2) Rural purchasing power is increasing, with the average rural household owning 3 durables vs 7 for urban households.
3) FMCG, consumer durables, apparel, pharmaceuticals, and food/grocery sectors see over 50% of sales coming from rural India.
Opportunities and challenges in indian rural marketSAMEER LAKHANI
The document discusses opportunities and challenges in the Indian rural market. It outlines objectives related to studying the current rural market scenario in India. It examines the scope, needs, features and importance of rural markets. Some key opportunities in rural markets include rising incomes, improved infrastructure, and changing consumption patterns. However, marketers also face challenges such as low literacy, distribution issues, and seasonal demand fluctuations. Innovative rural marketing practices adopted by companies are also described.
The document provides an overview of rural marketing in India. It discusses:
1) Rural marketing is becoming increasingly important as rural markets outpace urban markets in growth. Many companies have made inroads into rural India.
2) Rural consumers have different characteristics than urban consumers due to factors like occupation, income sources, and lifestyle. Their buying behavior is influenced by their culture, reference groups, and available information.
3) Rural and urban markets differ in terms of population density, infrastructure, income stability, and other factors. Marketers must tailor their approaches to address the specific constraints of rural areas.
The document discusses strategies that companies are using to market to rural Indian consumers. Some of the key strategies mentioned include communicating about quality and value to change rural perceptions; using Indian languages in promotions; understanding cultural values; developing rural-specific products; associating with Indian celebrities, sports teams, and culture; and using effective media communication tailored for rural audiences. The overall strategies are aimed at better understanding rural customers and associating the company's brands with Indian values and identities.
This document discusses rural retailing in India and its future outlook. It notes that rural markets represent a large opportunity as two-thirds of India's consumers live in rural areas. Rural demand is growing for packaged foods, personal care products, and other goods. Several companies have customized their products, pricing, and distribution for rural consumers. While rural retailing faces challenges like infrastructure and taxation issues, the future outlook remains positive as rural incomes and consumption are expected to significantly increase over the next decade. Organized retailers and FMCG companies are recognizing the potential of rural markets.
The document discusses the growing importance of rural markets in India. It notes that over 70% of India's population lives in rural areas, yet they remain an untapped market. Rural incomes are rising due to increased agricultural procurement prices and government programs, growing the rural consumer market. Companies will need targeted marketing strategies to succeed in rural India, focusing on product relevance, affordable prices, widespread distribution networks, and culturally-appropriate communication. Developing a dedicated rural business vertical and leveraging new retail and IT models can help companies better access this sizable rural consumer base.
Rural retailing in India is an important and growing sector. Approximately 70% of India's population lives in rural areas across 66,000 villages. Rural retail is growing at 7% annually and represents a significant portion of India's overall GDP and consumption in various industries such as FMCG. However, rural retailing also faces challenges including poor infrastructure, lack of suitable dealers and retailers, and low investment capacity. To succeed in rural markets, companies must focus on availability, affordability, acceptability, and awareness of products for rural consumers. Various models for rural retailing have emerged such as Hariyali Kisaan Bazaar, Aadhaar, and E-Chaupal which aim to be one-stop shops
This document discusses rural retailing in India. It notes that 70% of India's population lives in rural areas and rural retail is growing at 7% annually. Rural retail represents a large market opportunity, estimated at $112 billion currently. Organized retail makes up only 3% of the total retail sector in India, with 97% being unorganized. Some challenges to rural retailing include poor infrastructure like roads and storage facilities. Successful rural retail models provide a one-stop shop for farmers and focus on availability, affordability, acceptability, and awareness of products in rural markets.
The document discusses the challenges and opportunities of marketing in rural India, noting the vast rural population and growing purchasing power but also challenges like poor infrastructure, understanding rural consumers, and effective promotion. It outlines strategies for rural marketing like customizing products, using local distribution methods like village fairs, and folk media for promotion. Capturing the rural market requires treating it as independent from urban areas and understanding unique rural consumption patterns.
The document discusses opportunities and challenges for logistics and supply chain management in rural India. It notes that over 70% of the Indian economy is centered in rural areas, representing $100 billion in potential. However, poor rural infrastructure makes logistics difficult. The growth of retail and demand for goods from rural consumers represents an opportunity for logistics companies to develop supply networks reaching rural markets. Key challenges include lack of transportation infrastructure and ensuring availability and affordability of goods for low-income rural populations.
Rural marketing involves planning and implementing marketing functions tailored to rural areas. It differs from urban marketing in several key ways, including infrastructure availability, income patterns, lifestyle and culture, accessibility, and media habits. The case study describes Akashganga, a computerized dairy management system that helps farmers increase efficiency and transparency in milk collection and payment. By offering trials, responsive service, and hiring local people, the company was able to gain farmers' trust and succeed in the rural market.
The document discusses the role and importance of rural India's economy. It notes that around 700 million people, or 70% of India's population, live in rural areas. A mere 1% increase in rural income translates to Rs. 10,000 crore in increased buying power for rural Indians. Many major companies like HLL and Colgate have focused on penetrating rural markets through programs like "Operation Bharat" and "Operation Jagruti". The document also discusses the rural consumer profile, FMCG consumption trends in rural areas, and strategies companies use to target rural consumers effectively.
The document discusses the role and importance of rural India's economy. It notes that around 700 million people live in rural India, accounting for 70% of the country's population. Rural India offers a huge potential market, as even a 1% increase in rural income translates to Rs. 10,000 crore in additional buying power. Many major companies like HLL and Colgate have focused on penetrating rural markets through programs like "Operation Bharat" and "Operation Jagruti". The document also provides details on the performance and strategies of major FMCG companies in rural India.
This document discusses the growth of new retail formats in India. It notes that organized retail currently makes up 3% of the $200 billion Indian retail industry, but is projected to reach $23 billion and 20-25% market share by 2010. Modern retail formats like supermarkets and hypermarkets are growing rapidly. Changing consumer demographics, lifestyles, and increasing incomes are fueling retail growth. Both domestic and global retailers see opportunities in India and are exploring new formats to serve both urban and rural markets.
Similar to A rural retailer’s green shoots live mint:Pradeep Kashyap ,CEO MART (20)
Tata Shaktee, a manufacturer of galvanized corrugated sheets, saw stagnant sales for two years due to marketing only through static media like wall paintings and videos. MART recommended promoting the brand at weekly rural markets to directly target their illiterate, low-income customer base. They participated in over 5,000 markets across 17 states, exposing 4 million potential customers to the brand through interactive games and surveys. This resulted in a 30% growth in sales at retail outlets.
HPCL launched the Rasoi Ghar project to promote the use of LPG for cooking in rural Indian households as an alternative to firewood. Through the project, over 1,600 community kitchens have been established in villages across six states, where women can cook using LPG stoves and cylinders at a nominal cost. The model involves the local government donating space, HPCL providing cooking equipment, and a self-help group member managing the kitchen, with fees collected going towards refills and wages. The goal is to educate women about the safety, ease and health benefits of LPG, so they eventually purchase their own connections.
The public-private partnership model of Rasoi Ghar addresses challenges in rural LPG marketing in India by making LPG more affordable, available, and accepted among rural communities. The model involves setting up community kitchens called Rasoi Ghars in small villages, where local women can cook using LPG stoves and cylinders provided by HPCL, without needing to purchase individual LPG connections. This allows women to experience the benefits of clean cooking with LPG. Evaluations found high acceptance of Rasoi Ghars and that they successfully increased LPG usage while saving women time that is used productively. Over 1,500 Rasoi Ghars have been established across three states with plans for more.
This document discusses Colgate's challenge in penetrating rural Indian villages with populations under 5,000. It outlines Colgate's current distribution strategy and issues with reaching smaller villages. The MART team considers options for a new distribution model, including using rural youth organizations as channel partners to sell Colgate products in villages and promote oral hygiene. The model would train and supply products to partners, who would earn income through margins while expanding Colgate's rural reach in a sustainable way.
KUSP is a program implemented by the Government of West Bengal to improve urban planning, access to services, and economic growth for the poor. It focuses on promoting livelihoods through wage employment and microenterprises. Initiatives include skills training programs in sectors like retail, hospitality, and automotive repair. Over 1,600 youth have been trained across 19 municipalities. Microenterprise promotion supports groups in activities like footwear production, embroidery, and garment manufacturing by providing skills training, market linkages, and business support. The program aims to shift from a production focus to a market-led approach to ensure sustainable livelihood opportunities.
The document describes a Collective Marketing model developed by MART to help marginalized agricultural producers in India maximize returns through community-based organizations (CBOs). The model addresses barriers like lack of capital, market knowledge, and bargaining power that keep producers dependent on exploitative traders. It involves CBOs conducting activities like sorting, grading, weighing and packaging to capture more value. The model has been implemented across 6 districts, empowering CBOs to market over 15 commodities worth Rs. 3 crores total. Evaluation found it generated additional income while increasing producer prices. The model aims to sustainably improve livelihoods through community entrepreneurship rather than complex interventions.
This document discusses a collective marketing model to help small and marginal farmers in India. It provides three key benefits: [1] It empowers farmers to collectively achieve economies of scale and better negotiate in the market. [2] It links farmers directly to mainstream markets through public-private partnerships. [3] It builds farmers' capacity but does not get directly involved in buying and selling, focusing on demonstrating scalability and maximizing farmer returns with minimal investment. The approach maps marketable surpluses, provides group orientation and capacity building, establishes marketing infrastructure, and facilitates market linkages and profit sharing between farmers and traders. Initial efforts in two districts of Odisha expanded to six districts, benefiting over 3,000
This document summarizes the development of a sustainable public-private partnership model by Colgate Palmolive to expand access to rural markets in India. [1] It identifies unemployed rural youth as potential channel partners to distribute Colgate products using bicycles and mobile stalls. [2] A stipend system is introduced to motivate partners as business grows slowly. [3] The model provided livelihoods while effectively promoting Colgate's brand in hard to reach villages, contributing significantly to rural sales over three years.
MART provides capacity building on market-led livelihood solutions through various training modules. Their approach focuses on conducting opportunity assessments using their 3M framework, providing market access and development through local markets, and promoting collective marketing and value chain development. Their modules cover topics like livelihoods and marketing, and are designed based on their experience implementing over 200 livelihood programs across India. MART aims to give participants practical skills and help them develop business and marketing plans to enhance sustainable livelihood opportunities.
The rural health delivery business model trains local men as "Health Educators" to create awareness, identify patients, accompany them to doctors, ensure proper treatment, and monitor recovery. This addresses barriers to rural healthcare access by making services available, affordable, and acceptable. Over 12,000 patients across 1,000 villages in 5 states have been treated so far. The program is profitable and aims to expand nationwide while adding services like nutrition and diabetes care.
The document describes MART's approach to business problem solving, which begins with (1) identifying the business problem through participatory rural appraisal to understand consumer behavior, (2) designing quantitative research using appropriate visual tools to capture data from less literate populations, and (3) developing a solution through testing strategies with local data collection teams to ensure solutions are actionable and sustainable for emerging markets. This comprehensive approach focuses on understanding problems and developing effective solutions, unlike standard approaches that focus more on problem diagnosis.
The document summarizes a national conference on public-private partnerships for inclusive development held in New Delhi. The conference aimed to understand how partnerships can help alleviate poverty and discuss key questions around making the poor equal partners in development. It featured three tracks on social sector, private sector and donor/international initiatives for partnerships. Each track included two presentations and a discussion session. The day concluded with a panel discussion to debate learnings and formulate a way forward for such partnerships. The conference brought together heads of organizations from social, corporate and public sectors working in this space.
Mart Implementation Team (Dellhi based Rural Marketing Research & Consulting ...MART Knowledge Center
MART is a leading rural marketing consultancy firm based in India that specializes in serving low-income consumer segments in emerging markets. It employs 50 professionals across India and has worked in several other countries in South Asia and Africa. MART provides end-to-end rural marketing solutions including research, strategy development, pilot testing, scaling up of sustainable business models, training, and ongoing support. Some of its key capabilities include conducting pilots to test concepts and products, developing innovative communication platforms tailored for rural audiences, creating new distribution models like Project Shakti that empower women, and improving access to healthcare in rural areas through pilot programs. MART has helped several large companies expand in rural India through customized and evidence-based solutions.
MART Strategic implimentation team (Dellhi based Rural Marketing Research & C...MART Knowledge Center
MART is India's leading rural consultancy firm providing end-to-end rural marketing solutions. It has 45 professionals across 4 states. Services include research, strategy development, piloting innovations, and scaling up strategies. MART has capabilities in implementing pilots, developing concepts, testing prototypes, and scaling sustainable rural marketing models. Some examples of projects include HP Gas' rural LPG strategy, a biomass stove for Shell Foundation, a last mile distribution model, and a rural health awareness project.
MART Research team (Dellhi based Rural Marketing Research & Consulting Firm)MART Knowledge Center
MART is a leading consultancy firm in emerging markets that provides end-to-end solutions through innovative research and partnerships. It has 50 professionals across India and works in sectors like healthcare, agriculture, and financial services. MART uses a user-centric research approach including participatory rural appraisal and ethnography to gain an in-depth understanding of consumer behavior and ecosystems. It has conducted various research projects for organizations to identify opportunities, assess needs, evaluate programs, and develop marketing strategies in rural emerging markets.
MART Development team (Dellhi based Rural Marketing Research & Consulting Firm)MART Knowledge Center
MART is India's leading rural consultancy firm established in 1993. It follows the philosophy of 'Social Heart & Business Mind' to offer marketing solutions working in both the corporate and social sectors. MART has provided expertise in rural marketing to countries like Nepal, Afghanistan, Mozambique and Bangladesh. It pioneered the concept of 'Inclusive Marketing' which looks at marginalized groups as both consumers and producers and uses partnerships and co-creation to improve their livelihoods and quality of life. One of MART's key initiatives is a collective marketing model that has benefitted over 7500 tribal families in Odisha by adding value through drying, cleaning, sorting and packaging and achieving economies of scale through collectivization.
Credential MART (Dellhi based Rural Marketing Research & Consulting Firm)MART Knowledge Center
MART is a leading emerging markets consultancy firm in India established in 1993. It provides end-to-end solutions through a team of 50 professionals with expertise in corporate and social sectors. MART conducts research using tools adapted from participatory rural appraisal to understand rural audiences and identify needs, opportunities, and behaviors. It has worked with clients across sectors including Intel, John Deere, Tata Indicom, GSK, Airtel, and Microsoft, conducting studies on product development, distribution, communication materials testing, and more. Key personnel have extensive experience developing innovative rural research methodologies and conducting qualitative research.
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A rural retailer’s green shoots live mint:Pradeep Kashyap ,CEO MART
1. A rural retailer’s green shoots
While organized retail chains in urban India are shutting stores and scaling down
ambitions, Hariyali Kisaan Bazaar is looking to add 200 rural stores to its existing
chain of 300 in two years
Posted: Tue, Jul 21 2009. 11:03 PM IST
Karan Vir comes calling the agronomist—or agricultural specialist—at the Hariyali Kisaan Bazaar store with
a yellowing paddy plant (plucked out from his field), its roots covered in sand, in a small plastic bag.
It doesn’t take the specialist long to discover the problem. He advises Vir to add sulphur to the soil to
counter excess salt being generated by the use of groundwater for irrigation. The 34-year-old farmer buys
a 15kg bag of the chemical, but his attention is now captured by a shiny black Hero bicycle kept on display
along with hundreds of other grocery and lifestyle products.
On average, 300 villagers such as Vir, daily visit the Hariyali
store in this village, about 35km east of Karnal, an agricultural
town in Haryana. Most visit to seek advice on agricultural
problems and buy farm products. And about 30% of them end
up buying other products. Some buy sugar. Some buy shirts.
The store manager says sales are up 40% compared with last
year.
In demand: (top and above) The Hariyali store in Ladwa. On
average, 300 villagers visit the store daily. Ramesh Pathania /
Mint
While sales have shrunk over the last one year or so for
almost all the so-called modern retail chains in urban areas on
the back of an economic slowdown that affected consumer
spending, rural India has witnessed swelling sales of
everything from mobile phones to motorcycles.
Hariyali currently operates a network of 300 stores in eight
states and plans to increase the number of outlets to 500 over
the next two years.
That number is significant because of the corresponding numbers for modern retail chains in urban India.
The country’s largest discount-store operator, Subhiksha Trading Services Ltd, shuttered its nationwide
network of 1,600 stores amid severe cash crunch. The country’s largest listed retailer Pantaloon Retail
(India) Ltd has seen its same-store sales at home segment retailing decline over the last six months and
chains run by Aditya Birla Retail Ltd, Reliance Retail Ltd, Spencer’s Retail Ltd have shrunk as the
companies closed stores and trimmed their expansion plans.
A booming market
A thriving agricultural economy and high food prices—resulting in farmers earning more for their
produce—helped the rural economy thrive even as that in large cities and towns slowed.
2. Rural families spent around 63% of their expenditure on food 15 years ago; this proportion declined to
53% in 2005-06, according to the National Sample Survey Organization. Companies cite anecdotal
evidence to claim that this proportion has declined further in the three years since.
S. SivaKumar, chief executive of Agri business for conglomerate ITC Ltd, which runs Choupal Sagar stores
and e-Choupal kiosks in at least 6,000 villages, says rural retailing has seen an average growth of 25-30%
a year for the past three years and it has maintained its “secular trend” this year as well. Compared with
that, modern retailers in urban areas grew between 15% and 17% in the year ended March, down from
35% a year ago, according to Retailers Association of India, an industry body.
To be sure, if this year’s monsoon fails—it was around 30% below normal as of 15 July— things could be
different next year, but as things stand, rural India is a beacon of hope for marketers. And neither
sentiment nor finances have been affected in India’s vast hinterland like they have been in most large
cities on account of stock market bubbles and real estate crashes.
“There was no speculative activity in rural India,” says Pradeep Kashyap, chief executive of MART, a rural
consultancy group that advises various companies such as Colgate-Palmolive and Coca-Cola. “Nobody (in
rural India) speculates in real estate because you construct a house only for your own use and similarly
nobody would invest in speculative instruments as stocks as they only invest in postal savings. Therefore,
their wealth is not eroded.”
And the government has done its bit, spending around Rs66,000 crore over the last three years through
the National Rural Employment Guarantee Scheme and another Rs62,000 crore last year through a farm
loan waiver programme.
A July report by the Indian arm of Australian investment bank Macquarie Group said “the last 12 months
have been the year of the rural consumer. While same store-sales (sales at stores that existed a year ago)
growth and demand for high-end discretionary goods came under pressure, rural consumption growth was
resilient. A good monsoon in 2008 and pump priming by the government helped demand for low ticket
items, helping staples companies deliver 15−20% top line growth.”
A survey by MART to assess the impact of the economic slowdown on rural areas also found that most
sectors (barring handicraft and exports) showed positive growth.
The result: a number of modern retailers that service in the countryside have been able to reap the
benefits of a booming rural economy.
Home to around 70% of the country’s population of a little over a billion, rural India accounts for almost
40% of the country’s overall Rs14,490 crore-in-sales retail market. The country’s largest two-wheeler
manufacturer Hero Honda Motors Ltd sells 40% of its motorcycles in rural India.
Those numbers may explain why India’s largest listed retailer early last year, Pantaloon Retail acquired a
chain of rural stores from Godrej Agrovet Ltd. It is repositioning its Aadhaar outlets as “rural malls” with
additional focus on fashion and electronics. Pantaloon plans to increase the reach of Aadhaar to 100
villages by March from 62 currently.
Apart from a thriving market, Hariyali’s success is built on two other factors—common to almost all rural
retailers.
The first is real estate costs.
Kashyap of MART says rural retailers have been able to stay profitable because of low real estate costs in
villages, although they do end up paying more in transporting products to villages. Raj Kumar Goel, the