COMMUNICATION STRATEGY FOR

RURAL MARKET
IN
ITC

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BALAJI V
RURAL MARKETING:
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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

ITC:

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

BUSINESS SEGMENTS:

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

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MAJOR BRANDS OF ITC :

RURAL MARKETING STRATEGIES ITC :

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

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

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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

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

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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

CHALLENGES FACED AND RECOMMENDATIONS ITC:

RECOMMENDATIONS:

• Increase the utilization of eChoupal

• Sign contract with the farmers

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• 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

CONCLSION:

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