Itc In rural india
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ITC has successfully marketed products in rural India through various initiatives. It established procurement hubs to purchase agricultural commodities directly from farmers and sell products to rural consumers. ITC's e-Choupal program provides IT infrastructure in villages, allowing farmers to check market prices and sell directly to ITC. ITC also operates rural mini-malls selling products at affordable prices. Through these efforts, ITC has increased availability and accessibility of products while benefiting farmers.
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ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal. Its diversified business includes five segments: Fast-Moving Consumer Goods, Hotels, Paperboard & Packaging, Agri Business & Information Technology.
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rm 3.pptx
This document discusses rural marketing of fast-moving consumer goods (FMCG) in India. It outlines 4 main strategies used in rural marketing: product, pricing, distribution, and promotion. For product strategy, companies develop smaller package sizes and lower price varieties to suit rural customers' lower incomes. Pricing strategy aims to keep prices low through minimal packaging. Distribution focuses on reaching villages over 2,000 people and within 50km of cities. Promotion uses mass media like cinema and television but print has low effectiveness due to low literacy. Challenges include transportation and storage infrastructure gaps as well as seasonal incomes and literacy rates.
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ITC is one of India's largest private sector companies with a diverse portfolio including cigarettes, hotels, food, personal care, and more. It has a deep distribution network of manufacturers, distributors, wholesalers, retailers, and paanwalas to ensure its products reach both urban and rural consumers. ITC selects distributors based on their infrastructure and population coverage. Distributors are expected to stock all ITC FMCG products except stationery. ITC leverages its established distribution network for cigarettes to also sell complementary products like matches and expand into new categories like biscuits.
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This document discusses Godrej's Chotu-Kool refrigerator, a small and affordable refrigerator designed for rural Indian markets. Key points:
- Chotu-Kool is a portable 1.5 foot tall refrigerator that runs on batteries, keeping items cool for hours without power. It costs Rs. 3,000-3,500.
- Godrej saw an opportunity to disrupt the refrigerator market by designing for low-income rural consumers not served by traditional models.
- Chotu-Kool is manufactured in Maharashtra and distributed through rural networks like NGOs and micro-finance institutions to maximize access.
- While the simple and affordable design has been successful, Godrej faces challenges in further lowering the price
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The Indian FMCG sector has a market size of US$25 billion and is poised to grow 10-12% annually. It has a well-established distribution network of over 6 million retail outlets across urban and rural areas. Organized retail is growing and expected to increase its share of the market to 14-18% by 2015. Rural India accounts for one-third of total consumption and FMCG companies are devising rural marketing strategies. Food products are the largest consumption category. The export potential for Indian FMCG companies is growing as they focus on international markets.
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Rural marketing in India is growing in importance as rural populations and incomes rise. Some key points:
- Rural markets now account for over 50% of sales for many FMCG products and are growing faster than urban markets.
- Many major companies have implemented rural marketing strategies like training rural sales agents (Hindustan Unilever) or building rural retail stores (ITC).
- Rural consumers have different characteristics than urban consumers in terms of occupation, income sources, media access, and brand awareness. Successful rural marketing requires understanding rural consumer behavior.
- Segmenting the rural market by factors like geography, demographics, and behaviors is important for effective targeting and positioning of products. Companies must consider
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Project Shakti is a rural distribution initiative in small villages. The project benefits HUL by enhancing its direct rural reach and at the same time creates livelihood opportunities for underprivileged rural women. Shakti started with 17 women in one state. Today, it provides livelihood enhancing opportunities to over 65,000 Shakti Entrepreneurs who distribute our productions in more than 165,000 villages and reach over four million rural households.
As per Unilever Sustainable Living Plan, Unilever will increase the number of Shakti entrepreneurs that it recruits, trains and employs from 45,000 in 2010 to 75,000 in 2015 globally.
Hariyali Kisaan Bazaar - Rural Marketing (Retailing) in India
Hariyali Kisaan Bazaar case serves as an excellent case study to understand how Retail works in Rural India. It throws light on Rural Consumerism, Retailing in Rural Markets of India, etc.
distribution channel rakesh kumar(group 5)
The document discusses distribution channels. It begins by defining distribution channels as the path goods take from manufacturers to consumers, with intermediaries eliminating distance. It provides examples of coffee's distribution. It then discusses different designs of distribution channels like zero-level, one-level, two-level, and three-level channels. Factors affecting distribution channels include the nature of the product, market, business, and legal/tax issues. Distribution channels play roles like promotion, negotiation, risk-taking, and providing information. The document analyzes distribution channels of companies like HUL and ITC.
PRAJWAL TARANGE.PPT ppt ppt ppt ppt ppt ppt
The document provides information about Prajwal Navnath Tarange, an MBA student studying rural agriculture marketing. It then discusses several issues related to fake brands such as quality concerns, economic impacts, and intellectual property infringement. The document also outlines challenges of distributing products in rural markets like infrastructure limitations and cultural factors. It provides details about Rythu Bazars, Project Shakti, Apni Mandis, and electronic auction platforms.
Hariyali Kisaan Bazaar | Rural Retail Initiative
The document provides information about Hariyali Kisaan Bazaar, an initiative by Delhi Cloth and General Mills Company Limited (DSCL) to address challenges faced by Indian farmers. It discusses how Hariyali set up retail outlets called "Centers" and "Stores" within 15-30 km of villages to provide farmers access to inputs, advisory services, and output purchase. The initiative helped improve farmers' productivity, incomes and access to technology, credit, and markets. It also discusses the organization structure of Hariyali Kisaan Bazaar and alignment with objectives of inclusive growth in rural India. The document concludes by outlining some challenges faced in expanding the initiative such as maintaining profit margins, adapting to different customer
The future of rural marketing
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.
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The managers achieve organizational objectives by getting work from
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Itc In rural india
- 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