Description on itc e choupal

1. ITC e-
choupal
GROUP NUMBER – 3
Roll No – 64 to 72
Section - 2

2. CONTENT
1. Examine the innovativeness in the model and the
rationale for the model.
2. Critically analyze the unique features of the
channel strategy.
3. What was the experience of the company over a
period ? Was it successful or failure and how the
company responded over a period to the market
dynamics ?
4. Offer suitable strategy in the channel design to
remain competitive in the market.

3. ITC e- choupal : Introduction
 E-choupal in hindi means ‘village meeting place’.
 Virtual market place where farmers can transact directly with a
processor and realize better price for their produce.
 Initiative of ITC Limited to link directly with rural farmers via
internet for procurement of agricultural and aquaculture
products like soyabean , wheat , coffee , prawns etc.
 Introduced by ITC in June 2000.
 Over 6500 choupals serving over 4 million farmers and
villagers across 40000 villages.
 The programme installs computers with internet access in
rural areas of India to offer farmers up-to-date marketing and
agricultural information.

4. (1) INNOVATIVENESS IN ITC e-
choupal MODEL
An Internet-based two-way platform to
procure from and sell to farmers,
which has evolved into a mobile-
based channel that offers services too.

5. TYPES OF INNOVATION
FRAMEWORK: ITC e-CHOUPAL
1. Business Model: By passing mandis from the
procurement process by directly connecting with
farmers. Transforming the procurement channel to a
distribution channel building a services platform.
2. Networking: Transforming e-Choupal network into a
platform to partner with multiple agencies to provide
value-added services.
3. Enabling Process: Leveraging the established credibility
of the sanchalaks to play a specific role in building up the
original e-Choupal channel.
4. Core process: Setting up a wide IT and logistics
infrastructure even in remote places.

6. 5. Product performance: Reducing cost of contract
(buyers), offering value-added services (farmers): Low-
cost access to rural India (network partners).
6. Product systems: Offering a range of products/services
to address farmers' needs. Offering network partners the
ability to easily "plug in" to the network.
7. Brand: Leveraging brand "e-Choupal" to promote sales
of its FMCG and network partners' products/services.
8. Customer experience: Bringing transparency and ease
to farmers, both as suppliers of agri-products and as
customers of ITC's value-added products/services.
Organizations that achieve breakthrough innovation
usually cover at least 3-4 types of innovation included in
the framework. ITC e-Choupal fulfils eight.

7. Rationale
• To build a unique and competitive channel to
reach farmers, which is different from the
model used by unorganized players and
MNCs.

8. (i) A farmer’s experience on benefits of e-Choupal,
(ii) Challenges of Indian Agriculture,
(iii) ITC’s strategy for sustainable and inclusive growth,
(iv) ITC e-Choupal integrated rural development strategy,
(v) ITC e-Choupal providing information, knowledge and
quality inputs and expanding market access,
(vi) Supplementary income generation through
livestock development, women’s empowerment, and
vocational training, and
(vii) Augmenting natural resources through watershed
development and social and farm forestry.

9. (2)UNIQUE FEATURES OF
CHANNEL STRATEGY
 Delivery of real time information.
 Immediate cash payment.
 Easy access to any e-choupal.
 Low transactional cost.
 Transparent and fast process.
 Use of technology.
 Provide additional information to farmers.
 Used for many commodity and multiple transactions.
 Uses local talent , local people & develop local local
leader.

10. Contd….
 Unique CRM programme in commodity
exports.
 Extended local as well as global procurers.
 Nurtures local entrepreneurs.

13. (3)EXPERIENCE OF COMPANY
OVER A PERIOD
 ITC e-choupal has seen a numerous
experiences over a period of time.
 It helps to
1. ELIMINATE:
• Intermediaries
• Time pressure ( perishable )
2. RAISE:
• Crop Yield
• Quality of product
• Level And Quality of information.

14. 3. REDUCE:
• Inefficiencies in the market.
• Inconvenience to the farmer.
• Instability of Income.
4. CREATE:
• New market place.
• Trust and transparency through the supply chain.

15. SUCCESSFUL OR FAILURE!!
 The model of ITC e–choupal is successful.
 Based on belief that farmer needed an
alternative to the mandi system.
 Worked with respected existing culture:
choupal, sanchalak.
 Transparancy of information.
 No obligation.

16. Company responded over a
period to the market dynamics!
 E-choupal kiosks places technology at the core of new
supply chain , allowing farmers to break away from old
supply chain.
 Access to information via e-choupals
• Weather reports
• Global crop standards.
• Best practices.
• Market prices from around the world.
• Q & A forum
• News page

17. (4)Suitable strategy in the channel
design to remain competitive in
the market.
1) Continue to develop infrastructure:
• Create a barrier to entry for new competitors.
2) Expand into other markets and industries:
• Coffee , seafood wheat etc.
• Maintain principles of trust and transparency.
3) Continue to innovate and develop
information technology.
• Continue to provide beneficial information.