ITC Rural Marketing


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ITC Rural Marketing

  1. 1. Rural Marketing ITC By: Sumati Joshi
  2. 2. Rural marketing is now 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 What is Rural Marketing?
  3. 3. ITC is the country’s leading FMCG marketer, the clear market leader in the Indian Paperboard and Packaging industry, a globally acknowledged pioneer in farmer empowerment through its wide reaching Agri Business, the second largest Hotel Chain in India and a trailblazer in ‘green hoteliering’. Chairman, ITC Ltd. : Y C Deveshwar ITC
  5. 5. Business Segments Of ITC ITC have 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 short span of time, ITC has established vital brands across diverse businesses that include branded packaged foods, personal care, education & stationery products, incense sticks and safety matches, lifestyle apparel and hotels. Each of ITC’s brands has today garnered significant market standing in the global Indian marketplace. FMCG Paperboards & Specialty paper Packaging & Printing Agri Business Hotels Information Technology
  6. 6. Major Brands Of ITC
  7. 7. Cigarettes and Cigars FMCG Key product segments in FMCG sector are Branded Packaged Foods Personal Care Products Lifestyle Apparels Education & Stationery Products Agarbattis and Safety Matches
  8. 8. Launched in 1975, ITC Hotels, India's premier chain of luxury hotels, has become synonymous with Indian hospitality. ITC Hotels pioneered the concept of 'Responsible Luxury' in the hospitality industry, drawing on the strengths of the ITC groups’ sustainability practices. Responsible Luxury personifies an ethos that integrates world-class green practices with contemporary design elements to deliver the best of luxury in the greenest possible manner. HOTELS
  9. 9. ITC's Paperboards and Specialty Papers Division is India's largest, technologically advanced and most eco-friendly, paper and paperboards business. The business caters to a wide spectrum of packaging, graphic, communication, writing, printing and specialty paper requirements through its four world-class manufacturing units, 7sales offices and a network of more than 50 dealers in India, along with an international trade network of 18 distributors / agents and 4 finishing operations close to the market for providing faster service to the customers. PAPERBOARDS & SPECIALITY PAPERS
  10. 10. ITC's Packaging & Printing Business is the largest value added converter of paperboard packaging in South Asia. It converts over 70,000 tonnes of paper, paperboard and laminates per annum into a variety of value-added packaging solutions for the food & beverage, personal products, cigarette, liquor and consumer goods industries. PACKAGING
  11. 11. ITC's pre-eminent position as one of India's leading corporates in the agricultural sector is based on strong and enduring farmer partnerships that has revolutionized and transformed the rural agricultural sector. A unique rural digital infrastructure network, coupled with deep understanding of agricultural practices and intensive research, has built a competitive and efficient supply chain that creates and delivers immense value across the agricultural value chain. One of the largest exporters of agri products from the country. AGRI BUSINESS
  12. 12. ITC Infotech is a fully owned subsidiary of ITC Ltd. Formed in 2000, ITC Infotech has today carved a niche for itself in the arena of global IT services and solutions. The company has established technology Centers of Excellence (CoE) to deepen capabilities and incubate cutting-edge technical competencies. With over 5600 employees, ITC Infotech conforms to the highest standards in process quality, with ISO 27001, ISO 9001 and CMMi Level 3 accreditations. INFORMATION TECHNOLOGY
  14. 14. Key Rural Marketing Strategies employed by ITC are: • By communicating and changing quality perception • By proper communication in Indian Language • By understanding cultural and social values • By promoting Indian Sports Teams • By developing rural specific products • By adopting localized way of distribution. • By giving Indian words for brands
  15. 15. e-Choupal is an initiative of ITC Limited, a conglomerate in India, to link directly with rural farmers via the Internet for procurement of agricultural and aquaculture products like soybeans, wheat, coffee, and prawns. e-Choupal tackles the challenges posed by Indian agriculture, characterized by fragmented farms, weak infrastructure and the involvement of intermediaries. The programme installs computers with Internet access in rural areas of India to offer farmers up-to-date marketing and agricultural information. Today the initiative of ITC has empowered the lives of people living in 10 states where 40000 villages have 6500 e choupals and around 4 million farmers have been empowered. ITC E-Choupal
  16. 16. AVAILABILITY: It emphasizes on the availability of the goods and services to the end consumers. In the case of e-choupal the products are available continuously because sanchalaks maintains continuous inventory and maintains aggregate demnand. AFFORDABILITY: It focuses on product pricing. ITC buys from farmers directly in the last days closing price and even pays them for transportation. Goods are weighted electronically and hence farmers are no more cheated as they used to be previously. Hence it is a win- win situation both for farmers and the company. ACCEPTABILITY: It focuses on convincing the customer to buy the product. ITC’s e-choupal initiative is proving the farmers with real time updated information on weather. It is providing them customized knowledge in the form of farm management and risk management. It is also providing them lower transaction cost. It is also providing them financial services in the form of life, general, health and crop insurance. AWARENESS: It focuses on making people aware of the product. It is providing active servicing up to rural outlets. It is providing them with wide range of product categories. Moreover it has made entrepreneurs out of farmers as they are managing most of the work, it instills in them the sense of ownership ITC also employs 4As in e-Choupal
  17. 17. • Highly diversified product range. • Related products selling -whitegoods, diesel, fertilizers, insurance etc. • Products are of relatively high quality Product • Agricultural inputs were aggressively priced (lower than competitors) • Comparable products at lower price under different brand namePrice • 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 Place • Products are sold through samyojaks, sanchalaks who were among the villagers. • Awareness among farmers, CSR activities job opportunities, farmer self-efficacy. • Skilled central management group. Promotion PRODUCT, PRICE, PLACE, PROMOTION 4Ps of ITC Rural Marketing Strategies
  19. 19. • Technology Innovation • Cooperation with Government Bodies Infrastructure Barrier • Enhance Publicity and Training • Simplify Interface of e-choupal Knowledge Barrier • Extend lifecycle of equipment • Increase revenue by adding advertisementsCost Key Challenges faced by ITC in Rural Marketing and possible alternatives are : CHALLENGES FACED
  20. 20. • Increase the utilization of eChoupal • Sign contract with the farmers • More innovations are needed • Provide faster and more responsive customer service • Create incentive programs for the farmers • Maintain good relationship with sanchalak and samyojak Key Recommendations for ITC e-Choupals are: RECOMMENDATIONS
  21. 21. • Rural wealth creation in agriculture through securing empowerment, collaboration & competition. • A transformational initiative for sustainable development of society. • Commitment to transparency & the respect & fairness with which both farmers & local partners are treated. CONCLSION ITC eChoupal an innovative strategy which is elaborative & extensive in rural markets so far