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Rural Marketing by ITC Limited

Prerna Garg -1025

Group 2

Siddhesh Jhadav 102-

Kirti Gosawi - 102

Nikhil Jhunjhunwala - 102

Introduction Businesses


Rural Marketing
Agri-Business E-Choupal SWOT

Rural Marketing Introduction



Incorporated on August 24, 1910 as Imperial Tobacco Company of India Limited In recognition of the Company's multi-business portfolio, the Company now stands rechristened ITC Limited Rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine Among India's Most Respected Companies by BusinessWorld and among India's Most Valuable Companies by Business Today.

Introduction Businesses Rural Marketing Agri-Business E-Choupal



Introduction Businesses Rural Marketing Agri-Business E-Choupal SWOT

Distribution Channel

*MU Manufacturing Units

Rural Markets in India

Rural Population- 627 million; 74.3% of total population Rural markets generates more than half of the countrys income Rural consumers spend about 13% of their income on FMCG Mobile phones in rural India grew by close to 13% by 2008 59% of consumer durable sales come from rural India

Businesses Rural Marketing Agri-Business E-Choupal SWOT

Size of the market

Largely Untapped

Income on the rise

Growing Awareness

4PS of ITCs Rural Strategy

Highly diversified product range. Related products selling - white goods, diesel, fertilizers, insurance, etc. Products are of relatively high quality

Agricultural inputs were aggressively priced (lower than competitors) Comparable products at lower price under different brand name.

4PS of ITCs Rural Strategy

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.

products were sold through samyojaks, sanchalaks who were among the villagers. Awareness among farmers, CSR activities. job opportunities, farmers self-efficacy. Better facilities at hubs. Fair dealing with farmers. Skilled central management group.

ITC's pre-eminent position as one of India's leading corporate in the agricultural sector is based on strong and enduring farmer partnerships that revolutionized and transformed the rural agricultural sector
ITC's Agri Business Division is the country's second largest exporter of agri-products. It currently focuses on exports and domestic trading of: Feed Ingredients - Soya meal Food Grains - Rice (Basmati), Wheat Marine Products - Shrimps and Prawns Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits, Organic Fruit Products, Fresh Fruits Coffee & Spices - Coffee, Black Pepper, Chilly, Turmeric, Ginger, Celery and other Seed Spices

Rural Marketing Agri-Business E-Choupal SWOT

ITC is the largest buyer, processor and exporter of leaf tobaccos in India. ITC buys nearly 50 per cent of all cigarette tobacco types grown in India. Agri-Business E-Choupal SWOT ITC's foray into the spices business is an endeavour to provide quality differentiation across the value chain from the farmer to the customer

From seed treatment, organic soil management, to grain storage with nontoxic residue-free pest management, ITCs Agri Inputs business focuses on the entire crop cycle with a wide range of products.

Agri-Business E-Choupal SWOT

Appoint Sanchalak Know Real-Time Local As Well As Global Prices

High Quality Information - Regions Soil -Expected Yield -Competitive Pricing

Win Win Situation For Farmers And ITC

'e-Choupal' services reach out to over 4 million farmers, in over 40,000 villages through 6500 kiosks across ten states (Madhya Pradesh, Haryana, Uttarakhand, Karnataka, Andhra Pradesh, Uttar Pradesh, Rajasthan, Maharashtra, Kerela and Tamil Nadu)

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'Choupal Pradarshan Khet brings best practices to small and marginal farmers, provides Agri-extension services which are qualitatively superior and involves pro-active handholding of farmers to ensure productivity gains. This initiative, which has covered over 70,000 hectares reaches out to over 1.6 million farmers.

Choupal Saagar, a physical infrastructure hub that comprises collection and storage facilities and a unique rural hypermarket that offers multiple services under one roof. It incorporates farmer facilitation centers with services such as sourcing, training, soil testing, health clinic, cafeteria, banking, investment services, fuel station etc. 24 'Choupal Saagars' have commenced operations in the states of Madhya Pradesh, Maharashtra and Uttar Pradesh. Choupal Fresh, ITC's fresh food wholesale and retail initiative, leverages its extensive backward linkages with farmers and supply chain efficiencies. It focuses on stocking fresh horticulture produce like fresh fruits and vegetables. Choupal Fresh retail stores are currently operational at Hyderabad.

SWOT Analysis
E-Choupal SWOT Strengths Good distribution network and skills Product quality Highly diversified product range Opportunities New product discoveries with E-choupal initiative in more villages, ITC can become a market leader Consumption of personal care products in rural India is growing Threats Companies like HUL are far ahead Rigidness faced in rural areas Govt. policies vary from state to state

Weaknesses Personal Care products, though priced at as low as Rs. 5 (Vivel & Superia), awareness in rural areas is low Still a huge area of rural India remains untapped