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RURAL MARKETING
PROJECT
Under Guidance of: Prof. Sri Ashutosh Pandey
Submitted by: Group 2
Akarsh Kumar Pandey- 143006
Rajat Singh –143037
Gandavaram Bharath Kumar Reddy- 034014
Rishabh Jain- 034039
Shounak Banerjee- 034044
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Contents
1. Introduction 3
ITC’s Agri Business 3
2. Rural Initiatives taken by ITC 4
A. Farmer empowerment through E-choupals 4
B. Choupal Pradarshan Khet 4
C. Choupaal Saagar 5
3. Product Mix 6
4. STP Strategies adopted by ITC 7
ITC likewise utilizes 4As in e-Choupal 8
4 Ps of ITC 9
5. Product Strategy 10
A. Aashirvad Atta 10
B. Fiama Di Wills 10
6. Pricing Strategy 11
A. Bingo: 11
B. Sunfeast : 12
7. Distribution Strategy 13
8. Communication Strategy 15
9. References 16
10. Members’ Contributions 17
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1. Introduction
ITC is one of India’s largest private sector companies and a diversified conglomerate with
business spanning FMCGs, Hotels, Paperboards and Packaging, Agri Business and
Information Technology. The company is acknowledged as one of India’s most valuable
business corporations with a gross sales value of Rs 74,979 crores and Net profit of 13,032
crores.
ITC has created over 50 popular brands across categories that serve millions of households and
support and sustain over 5 million livelihoods across India. Within a relatively shorter duration
of time, ITC has established its brands across diverse businesses. Each of ITC’s brands has
gained significant market standing in the global marketplace.
ITC’s new consumer goods business has established a vibrant portfolio of world-class Indian
brands that create and retain value in India. ITC’s world-class FMCG brands include
Aashirvaad, Sunfeast, Bingo, Yippee, B Natural, Fabelle, Sunbeam, Fiama, Engage, Vivel,
Savlon, Classmate, Papercraft, Managaldeep, Aim, ITC Master Chef, and others have garnered
encouraging consumer franchise within a short span of time. While some of these brands are
market leaders in their segment others are making appreciable progress.
ITC’s Agri Business
ITC’s position as one of the leading corporates in the agricultural sector is based on strong and
persistent partnerships that have revolutionized and transformed the rural agricultural sector. It
is one of the largest exporters of agri products from the country. ITC sources the finest of food
grains, Marine products, processed fruits, and coffee.
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2. Rural Initiatives taken by ITC
A. Farmer empowerment through E-choupals
The unique strength of ITC is the extensive backward linkages that it has established with the
farmers. This networking with the farming community has enabled ITC to build a highly cost-
effective procurement system. It has made significant investments in web-enabling the Indian
farmer. ITC’s empowerment plan for the farmer centers around providing internet kiosks in
villages. Farmers use this technology infrastructure to access online information from ITC’s
farmer-friendly website. Data accessed by the farmers relates to weather, crop conditions, best
practices in farming, international prices and other relevant information.
This model creates a significant two-way multi-dimensional channel which can efficiently
carry products and services into and out of rural India while recovering the associated costs
through agri-sourced led efficiencies. This initiative compromises nearly 6100 installations
covering 35000 villages and serving nearly 4 million farmers. Currently the website provides
information to farmers across 10 states of Karnataka, Kerla, Maharashtra, Andhra Pradesh,
Tamil Nadu, Rajasthan, Haryana, Uttar Pradesh, Madhya Pradesh and Uttarakhand.
The E-choupal networks are supported by ITC’s procurement teams, handling agents and
contemporary warehousing facilities across India enabling its Agric business to source identity
preserved merchandise even at a short notice.
B. Choupal Pradarshan Khet
In line with the mission of improving the quality of life in rural India, ITC’s agri business has
launched a flagship extension program called Choupal Pradarshan Khet (CPK) or
demonstration plots to help farmers enhance farm productivity by adopting best agricultural
practices. This initiative was started in the year 2005-06 and the crop portfolio includes maize,
cotton, paddy, soya, wheat, gram, potato, mustard, sunflower and bajra. This initiative has
covered over 60.000 hectares and reaches out to more than 70,000 farmers.
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C. Choupaal Saagar
After the success of E-Choupaal ITC launched E-Saagar. It is a physical infrastructure hub that
consists of collection and storage facilities with a unique rural hypermarket structure that offers
multiple services under one roof. This landmark infrastructure has set a new benchmark for
rural customers and also incorporates farmer facilitation centers with services such as sourcing,
training, criteria, banking, investment services, fuel station etc. 23 Choupaal saagar have
commenced operations in the states of Uttar Pradesh, Maharashtra and Madhya Pradesh.
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4. STP Strategies adopted by ITC
ITC is intending to build its entrance in the provincial regions. As a component of this
arrangement, the organization will present a little hypermarket design in select states with a
speculation of around Rs 80 crore. It will likewise open more e-choupal stands.
The organization accepts that these drives will assist ranchers in less evolved markets with
loving Uttar Pradesh, Madhya Pradesh, Rajasthan and Maharashtra to improve return for their
produce.
"We are intending to expand our rancher administration focuses in country regions (e-choupal
stands) from the present 6,450 to 20,000 by 2012. We are taking a gander at setting up 40 little
hypermarkets in the main stage on the comparative lines of our current hypermarket model -
Choupal Sagar - one year from now at a speculation of Rs 2 crore each. In the second stage we
will add 30 new little hypermarkets," said S Sivakumar, CEO (agri business division), ITC.
While the large arrangement Choupal Sagar possesses an area of around 6 sections of land to
10 sections of land, the little communities will be spread around 2 sections of land. This is
relied upon to assist negligible ranchers as it with willing give them a more modest catchment
region to showcase their produce. The model will likewise help cut down functional expenses,
said Sivakumar.
Conversing with correspondents uninvolved of Customers, an industry occasion zeroing in on
client the board, he said, the new drives will target states, where the back-end tasks and ranch
advertising are yet to advance.
"For states, for example, Andhra Pradesh, Punjab and Karnataka, we have an alternate
methodology. In these states, our attention will be on cultivation and Choupal Sagars and stands
will help us working on the ranch to showcase heredity. In addition, in beach front regions of
AP, we are additionally assisting ranchers with taking up hydroponics," he said.
These drives, he said, would likewise assist the organization with accomplishing higher
commodity returns. "These stands are basically data focuses, where ranchers can get data on
unfamiliar market necessities, recognizability standards and other quality models. Likewise,
we offer monetary items including crop protection to ranchers. This will set them off to take
on somewhat hazardous yet exceptional yield harvests and cultivating rehearses like natural
development strategies," he said.
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The organization had reserved Rs 5,000 crore on its e-Choupal division since its
commencement in 2,000. It is as yet furrowing back cash into the framework however a portion
of these focuses have become self-sustainable. The arrangement is to keep on contributing till
2012.
e-Choupal is a drive of ITC Limited, an aggregate in India, to interface straightforwardly with
country ranchers through the Internet for acquirement of horticultural and hydroponics items
like soybeans, wheat, espresso, and prawns. e-Choupal handles the difficulties presented by
Indian agribusiness, described by divided ranches, frail framework and the association of go-
betweens. The program introduces PCs with Internet access in country areas of India to present
ranchers to-date advertising and rural data. Today the drive of ITC has enabled the existences
of individuals residing I 10 states where 40000 towns have 6500 e-Choupals and around 4
million ranchers have been engaged.
ITC likewise utilizes 4As in e-Choupal
AVAILABILITY: It accentuates the accessibility of the labor and products to the end
buyers. On account of e-choupal the items are accessible persistently in light of the fact
that sanchalaks keeps up with nonstop Inventory and keeps up with total demand.
AFFORDABILITY: It centers around item estimating. ITC purchases from ranchers
straightforwardly somewhat recently shutting cost and even pays them for
transportation. Products are weighed electronically and thus ranchers are not cheated
any more as they used to be already. Henceforth it is a mutually advantageous
arrangement both for ranchers and the organization.
ACCEPTABILITY: It centers around persuading the client to purchase the item. ITC's
e-choupal drive is demonstrating the ranchers with continuous refreshed data on
climate. It is p them tweaked information as ranch the executives and hazard the board.
It is likewise giving them lower exchange costs. It is likewise giving them monetary
administrations as life, general, wellbeing and yield Insurance.
AWARENESS: It centers around making individuals mindful of the item. It is giving
dynamic adjusting up to rustic outlets. It is giving them a wide scope of item classes.
Also, it has made business people out of ranchers as they are overseeing the vast
majority of the work, it ingrains in them the feeling of responsibility.
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4 Ps of ITC
1. Product - The items Rural ITC is making or are ready to go to catch expected markets.
Highly diversified product range.
Related products.
Multiple price offerings.
Products are of relatively high quality.
Leveraging agri-business
2. Price - Pricing system that Rural ITC is chasing after in different client fragments it is
working in.
Agricultural inputs were aggressively priced (lower than competitors)
Competitive pricing within similar priced SKUs.
Leverage printing & packaging business, cost effective & innovative packaging.
3. Place (Channels of Distribution) - Distribution blend of Rural ITC has taken another
aspect with the rise of Online Retailing and mastery of players like Amazon.
Leverage its well established cigarette distributing network.
Developed procurement hubs, rural mini malls in the vicinity of villages.
All products available under one roof.
Selling, purchasing and storage at the same place.
4. Promotion (Communication Strategy of Rural ITC) - The development of web-based
media and internet promoting has changed the scene of Rural ITC correspondence blend and
procedure.
Products are sold through samyojaks, sanchalaks who were among the villagers.
Better usage of radio channels and 1000s of hoardings.
Awareness among farmers, CSR activities job opportunities, farmer self-efficacy.
Skilled central management group.
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5. Product Strategy
A. Aashirvad Atta
India is one of largest Producer and consumer of wheat. Wheat is consumed in the form of Atta
after processing through wheat mills which is called Chakki Atta. Wheat Producing farmers
process their wheat at flour mills for some charge. Whereas non wheat Producing farmers and
others purchase Atta from local shops generally it is Loose packing from stock Shopkeeper
having shopkeeper weigh in front of customer and sell it.Price of it is not standard and
manufacturing date is not available also shop keepers indulge in malpractice in quantity and
quality.
ITC decided to penetrate into this sector seeing that most of the sector is unorganized.
ITC ventured pre-packaged atta under the brand name Aashirvaad. ITC assured customers with
price quantity and quality. It was introduced for Urban market it also became successful in
rural market. ITC advertising it is procuring from fields of Madhya Pradesh made people
confident of raw materials and quality.
B. Fiama Di Wills
It is a gel soap bar with exotic flavors rather than normal lemon rose neem. It is launched as a
premium brand with cutting edge packing and branding. Advertising started with top filmstars
ads being played at prime time on television. It sponsored Top rated shows CID. This type of
soap excited customers to get a boost in rural areas and made good sales.
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6. Pricing Strategy
A. Bingo:
Bingo! is a delectable Indian snack that was first introduced in 2007. It comes in a variety of
flavors. It's a product created by ITC (Indian Tobacco Company). Potato Chips & Finger
Snacks are available in a variety of flavors.
The brand is connected with a lot of fun and adventure, and it is aimed primarily at teenagers.
Bingo! It currently has four sub-brands under its belt and is a household name in India.
Bingo! for the product! It's available in India's rural and urban marketplaces. Because of its
holding company, ITC, they also have a very powerful distribution chain. To improve
reachability, the brand has tried to implement a micro-distribution policy. As a result, even in
the most remote parts of rural India, a pack of Bingo may be purchased.
Since the product's inception, pricing has played a critical role. Since the inception, the brand
has aimed for a quarter-share of the market. The company has used an aggressive price strategy
that has helped them gain 16 percent of the snack market share today. Its pricing strategy has
worked because it consistently lowers prices and gives customers greater value for their money.
Bingo! is known for creating inventive and distinctive campaigns to promote their company,
many of which include social messages and are well-received by young people. They don't
have any celebrities backing the brand, and most of their advertisements feature young actors.
They employ a lot of Hindi in their content, which is understandable by the majority of people
in the country.
It is a well-known brand that will undoubtedly be there for a long time!
Brand Bingo is up against some of the country's most well-known FMCG companies.
As a result, it must be astute while being aspirational in terms of market share. The brand
currently has a 16 percent market share, but it has always aspired for a quarter of the total
market, which it is gradually achieving. The goal is to deliver a larger quantity at the same
price as other brands' chips. Bingo packets contain roughly 49 grams of chips, whereas Frito
Lays packs have far fewer. The price of a Bingo packet is determined by the weight of the
packet.
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B. Sunfeast :
Sunfeast is a well-known brand that is owned by ITC, a company that makes biscuits and other
packaged foods. The biscuits segment product offerings in Sunfeast's marketing mix can be
roughly classified into four categories:
• Nutritional Bites
• 'Light' and 'Fun'
• Delightful Cream
• There are cookies.
Sunfeast Health Bites is a range of biscuits aimed at health-conscious consumers, featuring
items such as Marie Light that are low in sugar, nutritious such as Milky Magic and Glucose
cookies, and manufactured with healthy grains such as Farmlite. Snacky, Sweet 'n' Salt, and
Nice brand biscuits are part of the Light 'n' Fun range, which provides light nibbles. Dark
Fantasy, Dream Cream, Bounce, Bourbon Bliss, and Yumfills are among the cream-filled
cookies in the Cream Delights line. It also has a high-end gourmet cookie line, including HiFi
Cookies, Delishus, and Mom's Magic.
Sunfeast sells cookies in a variety of price ranges and caters to all market groups, from the low-
income group with its glucose biscuits to the high-end market with its Dark Fantasy and HiFi
Cookies.
Sunfeast also caters to the rapidly rising very health-conscious group that does not want to use
maida or sugar, and is classified as medium to high premium. Sunfeast uses effective
advertising tactics to place its brands in their respective target segments. Its Pasta Treat line
and Yippie Tricolor Pasta cost INR 25 each. Yippie noodles are priced between INR 10 and
INR 15 per package. Premium biscuits are marketed at INR 30 for each packet, whereas
digestive biscuits are priced at INR 25 per packet.
Other lower-priced biscuits, such as Snacky, cost between INR 5 and INR 25 depending on the
size of the packet. For each category, Sunfeast uses a distinct pricing section. It uses
competitive pricing in its marketing mix to compete with low-cost brands in the lower segment,
while charging larger margins for premium products.
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7. Distribution Strategy
ITC being a giant conglomerate, cannot rely on a single distribution system. They should have
different distribution networks for different products and different geographies. There are
different challenges with respect to distribution in rural India. These include poor road
infrastructure, lack of quality transport infrastructure, small and scattered markets. It results in
a long lead time in rural areas which ranges from 1 week to up to 3 weeks in some cases.
ITC has started implementing a direct distribution strategy to tackle the problem of longer
lead time. ITC will distribute finished goods directly from the manufacturing unit directly to
the retail units by eliminating all the intermediaries. Through this they will reduce the lead time
to as little as 1 day. It will not only make their distribution more efficient but all help them earn
better margins.
Choupal Saagar, multipurpose hubs, apart from being used for procurement of agricultural
commodities, are also used for sales of goods in the rural areas. It is a part of distribution
strategy for rural regions and currently operational in three stated namely, Uttar Pradesh,
Maharashtra, and Madhya Pradesh.
Choupal Mahotsav, a three-day event organized in Choupal Saagars is strategically organized
by ITC in the months of Kharif and Rabi harvesting. It helps to build a framework of shopping,
information, and entertainment. Product launches, product sales, information distribution
remains the key focus.
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Apart from the above direct distribution strategies, indirect channels in traditional formats are
also being used extensively. In most cases intermediaries include distributors, wholesalers and
retailers. The typical flowchart showing indirect distribution of ITC is shown below:
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8. Communication Strategy
Multifacet communication strategies have been used by ITC to connect with the rural
population. One of the most important strategies is the use of Hindi/Sanskrit names for its
products such as Aashirvaad for flour, Mangaldeep for incense sticks.
ITC has actively sponsored sports events such as tennis, cricket, billiards et cetera to reach a
large audience and mark its presence in their minds. They do sports sponsoring mainly through
their food division which comprises the maximum sales in rural areas both in terms of volume
and revenue.
Communication is done mostly in Indian and local languages by ITC. Whether in promotion
or in e-choupal portal, the focus of the company remains to be as accessible to the end
customers as possible. To this end they use local languages of various states as their
communication medium.
To attract the attention of target audience ITC has recently made Kiara Advani, a famous
Bollywood actor, as its brand ambassador.
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9. References
1. www.livemint.com/industry/advertising/charmis-announces-kiara-advani-as-new-
brand-ambassador-11640253136329.html
2. www.itcportal.com/media-centre/press-releases-
content.aspx?id=248&type=C&news=ITC-decides-voluntarily-withdraw-sports-
sponsorships#:~:text=Following%20the%20reported%20decision%20of,legal%20pos
ition%20on%20the%20subject.
3. https://www.marketing91.com/marketing-mix-itc/
4. https://www.marketing91.com/?s=product+mix+of+itc+in+rural+market
5. www.livemint.com/Companies/5vgpIIJ3gRxTwZaJTFyUfJ/ITC-looks-at-direct-
supply-of-products-to-retail-outlets.html
6. www.itcabd.com/e-choupal.aspx
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10. Members’ Contributions
1. Gandavaram Bharath Kumar Reddy- 034014
a. Product Strategy
2. Rishabh Jain- 034039
a. STP strategies
b. Product Mix
3. Shounak Banerjee- 034044
a. Pricing Strategy
4. Akarsh Kumar Pandey- 143006
a. Distribution Strategy
b. Communication Strategy
5. Rajat Singh –143037
a. Introduction
b. Rural Initiatives
