2. AGRI INDUSTRY OF INDIA Comprises of the Post-Harvest activities of processing and preserving agricultural products for intermediate or final consumption. India is the second largest producer of food in the world. Basically exports- Food Grains, Dairy Products, Frozen Food, Fish, Meat, Poultry, Sea Fishing, Aqua Culture, Milk And Milk Products.
3. WHAT IS ITC e- CHOUPAL? Developed by ITC agri-business division Brainchild of S Sivakumar. Promoted by YC Deveshwar, chairman ITC Launched in 2000 Benefits 4 million farmers in 40000 villages. Farm linkages in 14 states Rural India’s largest Internet- based intervention
4. CHARACTERSTICS OFITC e- CHOUPAL Customer centric Used for many commodities and multiple transactions Uses local talent and local people and develops local leaders Extended to local as well as global procures Nurtures local entrepreneurs Unique CRM programme in commodity exports
9. MARKET SEGMENTATION Psychographic Lifestyle (Interests) Geographic National and International Demographic Occupation Behavioral Usage Rate, Buyer Readiness Stage
10. FOR BUSINESS TO CUSTOMER Geographic Rural India Behavioral Benefits and Loyalty Demographic Income Psychographic Lifestyle
11. CASE STUDY The case discusses basically about the two different trading system in Agro Industry of India. One was before ITC e- Choupal i.e. Mandi System and the other system is when ITC e- Choupal introduced Information Technology in Trading directly with the farmers thereby minimizing the monopoly of Traders in the system. In a traditional Mandi system, the trading is conducted by commission agents who didn’t serve the farmers well and exploited their situation as well as use to extract extra commission from the company by manipulating the prices of the commodities offered, thus making the system inefficient. ITC has worked in Indian agriculture for decades hence took a different approach by looking at the successes and the loopholes of the current system and identifying how they could re-engineer the existing one by introducing ITC e- Choupal, that is an IT based solution which serves as both a social gathering place for exchange of information and an e- commerce HUB. It also catalyzed rural transformation i.e. helping to improve rural isolation, create more transparency for farmers and improve their productivity and incomes.
12. SWOT ANALYSIS Delivery of real –time information Immediate cash payment Easy access to any e- Choupal Sanchalakis educated and trained in computer operations. Low Transactional costs Transparent and Fast Process Use of Technology Provides additional information to Farmers
13. Power unavailability in Rural India Poor Telecommunication Infrastructure Lack of proper roads, limiting vehicle access Competitors attempt to divert produce from Farmers
14. Better supply chain for ITC s food and agri-business Access to the underserved rural markets New ITES business opportunities Shareholding value creation through servicing society
15. Bulk storage and handling hubs Demand for Unwarranted additional payments by the Sanchalaks Threats to execution management due to speed of expansion The strained Samyojak–ITC relationship.
25. QUESTIONS The competitors try to attract the farmers by providing them higher prices for their produce than e- Choupal. How to overcome this? What could be done to improve the Samyojak- ITC e- Choupal relationship? What action should be taken against the Sanchalaks, who unionize and extract unwarranted “Rents” from ITC e- Choupal? How to generate a sense of trust in the farmers’ mind with respect to the laboratory tests conducted?
