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ITC- As a group Farmers conditions in India ITC- E chopal Farmers under ITC E- chopal Effect of itc E-chopal Slen model STP Marketing Mix
hotels. They produce the commercial crops. packaging. ITC then began renting processing-plant time and buying soya from mandis. His wife and children help him in his work. They are the backbone of the nation. produce was bought and crushed by small-scale crushers who were also traders. Bullocks are the precious possession of the Indian farmer. with a market capitalization of approximately $4 billion and annual revenues of$2 billion. Their daily life: The Indian farmer is busy day and night. They produce some raw materials for our industries. they are the life-blood of our nation. specialty papers. paperboards. Seventy percent of the Indian people are farmers. as that from soya). He keeps watch over the crops at night. He sows the seeds. When ITC entered this industry. They produce the food-crops and the oil-seeds. He works in sun and shower. and processed fruits. He guards the harvest against the thieves. edible nuts. Hence. He takes care of his bullocks. coffee. The Indian Farmer Introduction: India is an agricultural country. Spurred by India's need to generate foreign exchange. black pepper. Their financial condition: . agri-business. He reaps the crops and carries them home. marine products. food grains. that division is a $150 million company that trades in commodities such as feed ingredients.THE ITC GROUP The ITC group is one of India's foremost private-sector companies. He ploughs the land. ITC's international business division was created in 1990 as an agri-trading company with the goal to "offer the world the best of India's produce. packaged foods. He guards the crops against the stray cattle. ITC began with buying and exporting DOC (de-oiled cake." Today. and other fast-moving consumer goods (FMCG) products. In a year. ITC has a diversified presence in tobacco. it realized it needed a greater presence in the chain to better understand product dynamics. branded apparel.
He has no good house to live in. He wears a piece of coarse cloth. as much as possible helped the network to get the acceptance closely. His poverty is well-known to the entire world. Leveraging the logistics channels: The existing logistics of the rural markets are leveraged but they are not able to exploit the information asymmetry (unlike that in a conventional market). Hence. He cannot give education to his children. The Indian farmer does not possess a suitable residence. He cannot give ornaments to his wife. Understanding the operations is vital before the systems are conceptualized. Use of local population. In that sense e-choupal uses the local institutions but eliminates the information asymmetry that they used previously. He cannot give fine dress to his sons and daughters. He cannot get two full meals a day. because she will use them as fuel during the wet monsoon months. She gathers cowdung and pats it into pancakes. The farmer's wife has to manage with a few pieces of cloth. She cleans the cowshed. Designing a Win-Win transaction model: The success of e-Choupal comes from the condition in which both the farmer and the processor share the benefits coming out of the elimination of middle men and hence due to timely information availability. His room is very small and dark. These platforms have enormous potential provided they are conceptualized for the specific needs of the community and business. She also works at home and in the field. He is harassed by the money-lenders and the tax collectors.The Indian farmer is poor. Some of the elements that helped the eChoupal to work successfully are discussed below: Comprehensive knowledge of rural markets: Rural markets are both economic and social networks and there is a strong connection between the operation of social and economic transactions. . he cannot enjoy his own yield. The Indian farmer is harassed by the village touts. He lives i a straw-thatched cottage. She drives them in sun and piles them up. Itc e-Choupal:The e-Choupal experience highlights that ITC platforms can provide rural connectivity and ecommerce support.
Training and sensitizing him for the crucial role has been the main reason for the acceptance of the Sanchalak by the farmers. and a representative of farming community. Farmers under e-Choupal ITC’s strategic intent is to develop e-Choupal as a significant two-way multidimensional delivery channel. e-Choupal has been specially cited in the .Selection of Sanchalak: Both the selection of Sanchalak and the acceptance of Sanchalak by the community are very critical for the success of e-Choupal. Evolving an appropriate user interface: The Technology interface used in rural areas has to be very simple. ITC is transforming the way farmers do business. For example. tested and validated. Firstly. e-Choupal evolved a simple interfacing arrangement that a farmer can understand. The farmer and Sanchalak are free to use the e-choupal and develop new uses. it has to be tried. thus. acts as the coordinator of the knowledge community. efficiently carrying goods and services out of and into rural India. adopting best practices. Bottom-up model for entrepreneurship: e-Choupal encourages enormous amount of creativity at the local level along with local entrepreneurship stimulation. and the way rural markets work. By progressively linking the digital infrastructure to a physical network of rural business hubs and agro-extension services. matching up to food safety norms. e-Choupal unleashes the creative spirit in the rural India. Today 4 million farmers use e-Choupal to advantage – bargaining as virtual buyers’ cooperatives. In the platform terminology Sanchalak is the interface for maintaining the platform. Being linked to futures markets is helping small farmers to better manage risk. farmers do not understand the concept of insurance. Sanchalak. For the farmer the Sanchalak is the e-Choupal. ITC used a trial and error method for developing the procedure for selecting Sanchalaks. one has to understand the user pattern and secondly. Interface has to be tried for rural settings and only after its validation it has to be used.
maize.500 e-Choupal centers spread across 40. The reverse flow carries FMCG. rice. and aqua-products. e-Choupal Now States covered 10 Villages covered 40. spices. durables. for its transformational impact on rural lives.Government of India’s Economic Survey of 2006-07. The network of 6. pulses. coffee. automotives and banking services back to villages. Population and Agricultural Workers (In Millions) .000 No. of e-Choupals 6.000 villages has emerged as the gateway of an expanding spectrum of commodities leaving farms – wheat.500 Farmers e-empowered 4 million e-Choupal leverages the Internet to empower small and marginal farmers – who constitute a majority of the 75% of the population below the poverty line. soya.
7) 69.5 (37.1) 125.16 628.5 (37.6) na 97.3) 106.2) 234.3) 185.3 (28.4 2.22 523.8) 55.5) 110.25 298.1) 31.7) 127.5 (24.6 (82.Year Total Population Average Annual Exponential Growth Rate (%) Rural Population Cultivators Agricultural Workers Agricultural Laborers Total 1951 361.1 1.9) 99.1 (68.8 (45.9 (74.3 2.5) 74.5 (62.96 360.64 833.1 1971 548.9 (76.6 (72.3 (54.3 2001 1028.0 (80.2) 92.6 (76.4) na 27.7) 148.0 1991 846.7 1981 683.3 (82.97 742.9 (71.2 (62.2 1.7 1.2 1.2 1961 439.0) 131.6 (40.20 439.0) 78.7 (59.1 2011* 1210.2 2.8) Na .0) 47.
44 25.52 31.2 14.20 54.88 49.21 61.2 17.79 61.82 14.97 18.52 36.0 12.75 17.54 33.91 39.36 26.8 16.8 30.4 25.47 32.04 12.4 25.Percentage of Population Below Poverty Line (Combined Rural and Urban) No.9 5.24 24.91 40.7 22.41 31.40 24.72 43.72 55.22 25.77 27.83 37.02 38.21 25.7 41.42 27.22 61.4 15.03 39.40 14.12 34.60 200405 15.04 70.0 32.96 15.24 49.14 50.28 36.55 28.02 20.15 36.4 32.7 17.42 55.86 54.25 65.1 13.74 7.92 48.79 15.6 .7 4.00 39.22 36.4 8.78 55.1 9.79 56.6 19.86 54.54 16.47 36.31 58.86 51.42 49.0 15.67 47.20 35.5 39.78 52.55 60.0 38.44 37.8 20.18 34.92 24.55 32.90 32.03 47.78 53.88 40.71 51.18 28.23 41.27 37.44 31.99 5.43 55.9 13.4 40.0 10.1 20.85 20.19 54.78 37.37 16.39 35.79 43.19 39.45 38.3 25.4 22.01 40.52 34.53 31.47 62.93 51.09 42.24 40.17 4.3 18.89 54.06 43.13 23.5 18.55 21.8 14.5 32.07 48.00 57.64 15.3 30.89 14.67 44.15 35.87 19.81 36.15 44.29 16.46 39.9 6.92 27.14 54.6 19.15 46.07 8.0 46.07 37.2 17.56 27.5 12.8 39.23 29.38 56.05 38.39 40.66 40.4 40.47 59.15 61.79 21.66 37.45 23.35 50.32 50.13 22.2 34.6 24.63 3.52 55.20 50.32 37.43 25.56 11.5 9.5 31.77 33.43 42.11 35.2 13.16 15.02 28.6 3.72 37.96 50.5 15.6 7.07 40. States/UTs 1973-74 1977-78 1983-84 1987-88 1993-94 19992000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh Uttarakhand West Bengal A&N Islands Chandigarh Dadra & Nagar Haveli 63.2 200405 11.78 43.35 33.86 33.41 41.4 11.15 6.1 33.8 17.58 13.46 33.8 17.9 32.16 25.94 51.07 19.0 5.48 48.32 57.43 55.66 34.05 28.5 14.81 66.0 12.23 41.92 25.85 52.86 36.26 48.1 22.21 52.84 27.67 67.43 35.47 11.6 17.88 53.8 14.96 46.35 40.
risk management) * It facilitates sales of Farm Inputs (screened for quality) and * It offers the choice of an alternative Output-marketing channel (convenience. Difference in price for good quality and inferior quality was less.67 26.3 18. the farmers have a choice and the exploitative power of the middleman is neutralized.7 16. news).79 53.80 14. buyers along with information and service providers. e-Choupal is.22 42. where the middleman used to make most of the profit.10 10.06 44. thus. e-choupal is a model with a number of non-conventional characteristics namely: .04 37.5 8.68 53.95 41.4 27. and supports market transactions on line.40 35. lower transaction costs) to the farmer right at his doorstep * It is an interlocking network of partnerships (ITC + Met Dept + Universities + Input COs + Sanyojaks.23 15. and hence there was no incentive for the farmers to invest and produce good quality output.46 38. * It transmits Information (weather.88 33.2 12.41 34.61 59.32 33 34 35 Damn & Diu Delhi Lakshadweep Pondicherry All-India 49. These middlemen used unscientific and sometimes outright unfair means to judge the quality of the product to set the price.60 21. Facilities by itc e-chaupal ITC platform that facilitates flow of information and knowledge.0 10. * It transfers Knowledge (farm management.0 22.25 51. these commodities were procured in ―mandis‖ (major agricultural marketing centers in rural areas of India).2 21.23 52. prices.69 25.36 50.48 12.44 8. distributed transaction platform that brings together sellers.5 14. the erstwhile Commission Agents) bringing the best-inclass in information.97 4.82 54.8 Problems Before eChoupal was introduced: Traditionally. knowledge and inputs. With eChoupal.32 26.86 15.
farmers have seen a rise in their income levels because of rise in yields. good farming practices and place orders for agricultural inputs like seeds and fertilizers. The warehouse hub is managed by the same traditional middle-men. climates and scales of production. improvement in quality of output and a fall in transaction costs.* customer centric * capable of being used for many commodities and multiple transactions * easily scalable once it is verified * uses local talent and local people and develops local leaders * can be extended to local as well as global procurers * stimulates local entrepreneurs to extend their innovativeness * uses all the existing institutions and legal frameworks and * many others can join the market as transaction time is low. EFFECTS OF E-CHOUPAL ITC Limited has now established computers and Internet access in rural areas across several agricultural regions of the country. Customized and relevant knowledge is offered to the farmers despite heterogeneous cultures. Farmers can get real-time information despite their physical distance from the ―mandis‖. The model is quite different from the other models. Even small farmers have gained from the initiative. where the farmers can directly negotiate the sale of their produce with ITC Limited. as the farmers do not pay for the information and knowledge they get from e-Choupals. and also helps in realizing a better price. The sanchalak bears some operating cost but in return earns service fee for the e-transactions done through his e-Choupal. Indeed these middlemen make up for the lack of infrastructure and fulfill critical jobs like cash disbursement. now called samyojaks. The computer housed in the sanchalak’s house is linked to the Internet via phone lines or by a VSAT connection and serves an average of 600 farmers in the surrounding ten villages within about a 5 km radius. This helps farmers in improving the quality of produce. quantity aggregation and transportation. The PCs and Internet access at these centres enable the farmers to obtain information on mandi prices. Each ITC Limited kiosk having an access to Internet is run by a sanchalak — a trained farmer. The principle of the e-Choupals is to . Due to the eChoupal services. but with no exploitative power due to the reorganised role. The system saves procurement costs for ITC Limited.
At the same time ITC Limited also has extracted value in four steps to make the model sustainable and scaleable: 1. value added products traceable to farm practices 4.000 eChoupals by 2012 covering 100. differentiated product through identity preserved supply chains 3. HUMAN CAPITAL:Human capital is the stock of competencies. social and personality attributes. e-market place for spot transactions and support services to futures exchange One of the factors leading to e-Choupal’s success is ITC’s managerial expertise in executing complex projects and managing costs. servicing 15 million farmers. knowledge. ITC Limited adopted a flexible project management approach called ―roll out. and scale up‖ to deal with uncertainties in a pioneering model. There are 6. fix it. ITC Limited plans to scale up to 20.inform. SLEN MODEL FOR ITC:- INVESTMENTS:I.000 villages in 15 states. elimination of non-value added activities 2. empower and compete. including creativity.500 eChoupals today. embodied in the ability to perform labor so as to .
In case of itc e –chaupal the human capital includes the skills that the itc company representatives (the very first human capital is who generated this great idea. investment banking. who all educate farmers and convince to use portal. corporate.e. who all update the data on the portal correctly and all those who all are shares the valuable information with the farmers.) II. etc. social capital is the expected collective or economic benefits derived from the preferential treatment and cooperation between individuals and groups. who all design the software application. who installed the setup and server in different villages. Natural capital is thus the stock of natural ecosystems that yields a flow of valuable ecosystem goods or .produce economic value.on all the expenditures. who all setup infrastructure. retail. FINANCIAL CAPITAL:Financial capital can refer to money used by entrepreneurs and businesses to buy what they need to make their products or provide their services or to that sector of the economy based on its operation. III. In the sense of itc e-chaupal social capital includes educating the farmers about using technology or making them more IT friendly more it make them aware of various agricultural practices or more productive way to do farming so they can produce more and more they also convey them about the weather forecast. most important they convey the farmers about the current rates of agricultural products and marketing conditions thereby ensuring that farmers will get to know reasonable rates for their products without giving any commission to middle man in revert they are earning more and more faith of farmers and also the fair mode of trading with farmers for essential goods. SOCIAL CAPITAL:In sociology. As itc e-chaupal is an idea of a itc company that is why ITC act as its parent company and all the investment done by it only . i. ECOLOGICAL CAPITAL:Natural capital is the extension of the economic notion of capital (manufactured means of production) to goods and services relating to the natural environment. IV.
chaupal they will win the loyalty of the customers and instead of buying at higher rate through middle men they can directly purchase the product at lesser price from the farmers directly which will really help them in reducing the cost of final products and able to generate more profit. ENHANCE QUALTY OF LIFE:By a fair mode of trading farmers are able to generate more and more profit which somewhere and somehow helping in enhancing the quality of life of farmers. . It also provides a fair platform for trading which is a great move to boost the economical development at bottom of pyramid. Not only because of fair trading ITC E.services into the future. LOCAL ECONOMIC DEVELOPMENT AND TRADE:ITC E-chaupal plays a vital role in economic development and trade by educating the farmers about the current market price so farmers can sell it at right price or according to the market price. In the case of ITC e-chaupal ecological or natural capital is trading of all the agricultural products from the farmers and market.chaupal helps them to learn how to increase productivity or how to get more yield which insure that they will sustain better life. buy helping the farmers through ITC E. NETWORK:INVESTORS ENTERPRINAURE FARMERS COMMUNITIES SUSTAINABLE OUTCOMES:PROFIT AND RELIABLE RETURN ON INVESTMENT:As ITC is one of the major players in FMCG sector in the country so they need agricultural products as the basic ingredients of their final products so for that they need to trade with farmers very frequently.
BEHAVIOURAL Under this category further segmentation is done on the basis of benefits sought. selection and coverage:- .it is the process of dividing a heterogeneous market. the marketer needs to evaluate each segment to decide which segments to target. each of which tends to be homogeneous in all significant aspects. convenience. north east India where the most of the Indian farmers lives and further on the basis of village size. in holistic it promises the sustainable view of future. STP for ITC-E Chaupal can b done on following basis:1. services etc. TARGETING:-Once segmentation is done. GEOGRAPHIC Under geographic the very first segmentation is done on the basis of region as ITC echaupal majorly looks for the regions of north India d middle. STP(SEGMENT TARGETING AND POSITIONING) SEGMENTATION:. The decision is based on the premise. in to several submarkets or segments. quality. The three aspects of targeting is evaluation. 2. Targeting involves evaluating various segments and selecting how many and which ones to target. ITC e. 3.INDIVIDUAL QUALITY AND SELF RELIANCE:ITC e-chaupal some where promises the farmers and society for their further upliftment and also boost the economic development by the means of fair trading and providing the valuable information regarding the agricultural practices more over they also tried to make farmers more IT friendly. DEMOGRAPHIC Under demographic the segmentation is done on the basis of occupation they segmented those whose occupation is farming or deals in agriculture products or also those who go to mandis for day to day trading for selling agricultural products and buying seeds. the different preferences. means those who look for value for money.choupal carries really value for these kinds of people.
We had to go through middlemen and prices were low. how much they trust and believe on the this. but our entire outlook. That is why they have taken calculated risk by conducting small pilot projects which provide an opportunity to evaluate the target segment behavior towards the services being offered and now those pilots have been transformed into mega rural marketing model. Companies have to plan positions that give their products the necessary advantage in the target market. In case of ITC E-choupal they targeted their segmented market after the complete evaluation of each segments and also their capabilities and resources. Positioning serves as a platform for the brand to reach the target. Before ITC introduced us to e-Choupal. . we were restricted to selling our produce in the local mandi. crop insurance. ITC trained me to manage the Internet kiosk and I became the e-Choupal Sanchalak in my village. Madhya Pradesh we are a community of e-farmers with access to daily prices of a variety of crops in India and abroad – this helps us to get the best price. etc. POSITIONING:-Positioning is the act of designing the company’s offering the image so that it occupies a distinctive place in the mind of target segment.in the process of targeting company should b clear with segment opportunity with reference to their short term and long term objectives and also the same time company should also examine its resources and capability of servicing rural market. eChoupal has not only changed the quality of our lives. so above mentioned lines clears everything about the positioning of ITC-E chopal in the minds of farmer. Today ABHISHEK JAIN Soya Farmer & e-Choupal Sanchalak Dahod Village. the latest farming techniques. We can also find out about many other important things – weather forecasts. Raisen District.
Product is ITC e-chaopal it’s a portal which provides the platform to the farmers which provides information regarding the better yield. The 7P’s of Marketing are:1). If it is done properly this will help us to ensure the highest return for the marketing/sales expenditures incurred. Product 2). Promotion Product Product is something which exist in physical form but in our project we don’t have physical product but its service that we render to farmers. Price 3). weather forecast and the current market scenario and the trading rates which empowers the farmers in terms of making them self dependent by eradicating middle men. Place 4). Price Price is like something which very sensitive thing in rural market for using portal they don’t charge anything because some where the company will going to benefit for that even they also reimburse the transportation price till ITC hub .Marketing mix:7 P’s of Service Marketing The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are "most likely" to purchase you’re offering.
what location you have chosen for the product to the customer. Their incomes have risen. The e-Choupal scheme initiates a reversal in this trend and empowers the farmers by proving reliable information and access to markets where they can get competitive prices for their produce. Besides.chopal teams visited town to town for its promotion. Produce quality and volumes have risen. What is more significant is that.Place Place is actually the location where your product has to be placed in front of the customer i. Distance.e. marginal and resource-poor farmers who have hitherto operated and transacted in unorganized markets. Prices of farm output have risen.as ITC E. Prices of farm inputs have declined and quality of input has risen. Small and poor farmers have been the principle beneficiaries. Their cost of transactions has declined. e-Choupal ensures world class quality in delivering all these goods and services through several products/ services specific partnership with the larders in the respective fields in additions to ITC’s own . social discrimination and formal regulations often keep small and marginal and resource-poor farmers out of the market. As ITC idea to make ITC Echopal available in the radius of 5 km of all the villages those all are agriculture sensitive. CONCLUSION: The e-Choupal has applied information and Communication technology to the advantage of India’s small. the small marginal and resource-poor farmers have typically derived these in their locales. Promotion ITC-E chopal more based on mouth to mouth and convincing face to face promotion. e-Choupal has favorably impacted the supply-chain activities related to agriculture.
While the farmers benefit through enhanced farm productivity and higher farm gate price.expertise. ITC benefits from the lower net cost of procurement [despite offering better prices to the farmers] having eliminated costs in the supply chain that do not add value. .
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