Roll No.

MM1820368
Name of Institute Balaji Institute of Modern Management (BIMM)
Batch 2018-2020
Specialization Marketing
Semester 4th
Subject Name Rural Marketing
Submitted By Praneet Selukar
Submitted on Date 18/04/2020
Total no. of Pages Written 23

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Question 1(a)
One of the main challenges faced by the marketers is enhancing the quality of living of
individuals through their products and services. But businesses are not only facing the
obligations convey by the govt to enhance rural areas but also facing pressure to grab the
untapped market potential of rural regions. Among services; financial services propel the
economic process of rural sector, insurance services help in managing various risks and other
services include telephonic or cellular services, entertainment services like Television.
 Marketing of savings and investment services
In rural areas the financial needs of the people are being met by unorganized sector-
moneylenders, friends, family, relatives and arranged sector and arranged sector-NBFCs,
RRBs, commercial banks, cooperative banks. Kisan credit cards were introduced in order that
rural people are ready to fulfill their immediate short term needs for cultivation of crops. they
like combo packs that link their deposits with loans and insurance with installments at lower
rates and at an equivalent time low tenure.
 Marketing of credit services
Though rural population remains hesitant to require loans for general purposes but nowadays
thanks to meager incomes rural folk have started taking loans for marrying off their
daughters, education of their children but there's an upward trend to require loans for
purchasing agricultural inputs. the agricultural people borrow both short term also as future
loans with now some preferring to shop for combo products where savings accounts are
linked to their loans at reasonable interest rates.
 Marketing of insurance services
The passing of IRDA Bill in 2000 paved the way for personal players with some restrictions
to enter this sector which was earlier completely forbidden to safeguard the interests of the
people. Currently this industry has 57 insurance companies out of which 24 are life assurance
companies and 33 non-life insurance companies. the main players during this field include
LIC, ICICI Prudential life assurance , and Bajaj life assurance then on. the agricultural folk
prefer that premium that must be paid is little with periodic payments
 Marketing of Cellular services
There was a time when mobile was a luxury but with the doorway of various players in
market cost of mobile phones have reduced drastically enabling rural population to afford
them and therefore the at same time with technological advancements there's the need for not
only communicating but also for internet services for entertainment and education purposes.
the main players within the market include Airtel, Vodafone, Reliance Jio, and BSNL then
on. the agricultural people are attracted towards a phone offering combination of services like
unlimited calls, free data pack, applications giving information associated with farming but at
affordable prices.
Question 1(b)
The primary occupation in rural sector is farming but to supplement their income there's an
upward trend to interact in other sources like poultry farming, cattle rearing, bee culturing

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and fish culturing. Despite multiple income sources profits earned are low due erratic
monsoon, seasonal changes, low demand, high transportation costs to sell in urban markets
and lack of adequate support. This results in the increased need among rural people to secure
their assets to avoid any bumps in their routine income. The insurance won't only help them
in expanding their business but also reduce their despair.

Need of insurance in rural economy

 Due to irregular rainfall or occurrence of any natural disasters it'd happen that crops of
farmers are damaged, death of their cows thanks to diseases or lack of cash for correct
treatment, loss of agricultural equipments or the other unfortunate event; such possibilities
produce to the necessity to require insurance to mitigate risks thanks to uncertainties in life.
This not only ensures that the farmers are protected but also help in relieving tensions.
 At an equivalent time education in insurance allows some interested rural people to
require up a course on insurance and add companies as insurance agents, thus generate
employment opportunities.
 Due to attractive returns being offered by some rural insurance schemes people are ready
to but meeting important needs like marriage, education

Importance of insurance in rural economy

 Due to increased complexities and dynamics of politics resulting in various empirical
implications during a fast changing world it's becoming difficult to make predictions in an
uncertain environment.
 Though one cannot predict whether something would happen or not but one can surely
mitigate the risks and share the losses if any as loss is cover the massive number of policy
holders, thus minimizing the losses if not preventing them.
Penetration of insurance sector in rural economy are often seen in terms of rural plans being
offered by various insurance companies:
 ICICI life assurance
• ICICI Pru Sarv Jana Suraksha – A Micro Insurance Plan allows to urge life cover at very
low cost by paying premiums as low as Rs 50 per annum and maximum of Rs 2000 per
annum
• ICICI Pru Anmol Bachat - Non Linked Micro Insurance Term Plan allows the individual to
settle on the amount of years that he wants to premiums and at an equivalent time ensures
guaranteed payout along side the bonuses.

 HDFC ERGO
• Kisan Sarva Suraksha Kawach Policy has been introduced that covers personal accident
insurance, Animal driven cart insurance, damage to agricultural pump set and protection to
putting together , contents and agricultural equipments from natural calamities.
• Cattle policy covers the death of the cattle within a specified area thanks to accident or
diseases and even outside the mentioned area thanks to natural disaster.
• Agriculture Crop policy covers the shortages in yield thanks to natural tragedy

 HDFC life assurance Company Limited

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• HDFC SL Sarv Grameen Bachat Yojana may be a micro insurance plan with a hard and fast
tenure of 5 years with payment of only Rs 200 when policy starts and no payment required
henceforth but it covers only one person.

 TATA AIG Insurance

• Personal accident insurance that covers accidental death, accidental loss in eyesight and
hearing, medical expenses incurred thanks to emergency crisis and permanent partial also as
total disability.
• Livestock (Cattle) insurance covers the death of the cattle thanks to diseases, accident,
natural calamities, any damage done deliberately.

Question 1(c)

Development procedures to sell protection in provincial zones:

 Company can develop by improving new items for example After the death of RERA
Act HDFC ERGO General Insurance was the principal safety net provider to bring out Title
protection along these lines repaying against dangers identified with abandons in property
title

 Company can develop by shaping organizations with government and NGOs for
example LIC as a team with COMAT Technologies offered wide scope of protection benefits
through it 1000 or more country business focuses

Limited time procedures to sell protection in country part:

 Advertisements appeared on TV ought to be with the end goal that they are appealing
and message is fresh and clear for example LIC gives an enthusiastic touch to all its
commercials by indicating that LIC will consistently bolster their policyholders in each
condition that can be with its slogan "poke LIC ka ho saath, to fikar ki chodo bat" like in its
most recent advertisement a situation of a wedded couple talking about during their pheras
where the spouse is guaranteeing his better half that have confidence her life is totally made
sure about by him

 Company can likewise make mindfulness about their arrangements by exhibiting

short movies for example Kamdhenu cows advance battle by ICICI Lombard General
Insurance in this manner making mindfulness about credits for buying dairy cattle and
protection for steers for provincial society

 Company can viably make mindfulness by causing superstars to embrace their items
for example in 2018 Farhan Akhtar embraced Apollo Munich Health protection which was
unique medical coverage plan that secured hospitalization costs as well as OPD costs.

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Question 1(d)

QUESTION 1(d)
1. Name
2. Gender
 Male
 Female
3. Marital status
 Married
 Single
4. Age (in years)
 18-25
 26-35
 36-45
 46-55
 56-65
5. Family structure
 Nuclear
 Joint
6. Your occupation
 Service
 Business
 unemployed
7.What is your income? (per annum)
 1-5 lakh
 6-10 lakh
 11-15 lakh
 Above 15 lakh
8. Have you taken any health insurance?
 Yes
 No
If yes, then answer the questions from 9-13; otherwise move to Q14
9. Type of insurance company
 Private
 Government
10. Type of health insurance
 Individual
 Group Health
 Family floater
11. What made you take health insurance? (you can tick more than one)
 to do tax planning
 suffering from an illness
 to get best medical treatment
 to cover myself in case of future illness
 travelling abroad
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12. Are the services being provided as per the claims made during purchase?
 Yes
 No
13. Will you renew the policy once it expires?
 Yes
 No
 May be
If no, then answer the questions from 14-19
14. Do you know what health insurance is?
 Yes
 No
15. How did you get information about health insurance?
 TV
 Newspaper
 Social media
 Friends
 Family
16. Are you interested in taking health insurance?
 Yes
 No
 Might be
17. Type of insurance company preferred
 Government
 Private
18. Type of health insurance
 Individual
 Group Health
 Family floater
19. Mode of payment of insurance premium
 Monthly
 Quarterly
 Annually

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Question 2(a)

The definite method to decrease rancher suicides and neediness of provincial agrarian based
economy is to support nourishment preparing industry utilizing horticultural sources of info.
Nourishment handling industry is a wide part comprises of different exercises, for example,
agribusiness, ranch, animal cultivation, agriculture and fisheries. This industry incorporates
different ventures likewise that utilization farming contributions for assembling of eatable
items.
The Ministry of nourishment handling, Government of India has characterized the
accompanying sections which go under the Food Processing industry.

 Dairy, natural products, vegetable handling

 Grain handling
 Meat handling
 Fisheries
 Packaged nourishments, refreshments, bundled drinking water.
Agrarian data sources spread improved seeds, manures and yield assurance synthetic
concoctions, water system, hardware. The foundation of agrarian unrest is access of ranchers
to rural information sources.
Agrarian data sources are of two sorts:

a. Consumable sources of info

b. Capital inputs
Consumable data sources comprises of:

 Seeds
 Fertilizers
 Veterinary meds
 Packing materials
 Agrochemicals
 Oil and greases
 Cattle feed
Capital data sources comprises of:

 Tractors
 Agricultural machines( thrasher, collector)
 Agricultural executes and tools(cultivators, water system, siphon sets)
 Seeds are pivotal for effective harvest creation and ranch profitability.
 Fertilizers supplies supplements to the dirt for the manor development.
 Irrigation is likewise significant for plant development as it empowers slow time of
year cultivating and furthermore gives potential to different gathers every year.
 Crop insurance synthetic substances, for example, pesticides, herbicides, bug sprays
and fungicides control hurtful bugs, weed species that hurt the yields.

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KEY HIGHLIGHTS FOR AGRICULTURAL INPUTS IN INDIA:
 The requests for the farming sources of info are inferred request. Rural yield relies
upon the accessibility of the quality information sources and reasonable cost of the
data sources.
 With the development of financial advancement for import of the best germ plasm
accessible, there has been progress in the improvement of private seed industry.
 The manure relationship of India is the delegate body for the compost producers.

Question 2(b)
Broad overview of food processing industry in India

Food preparing industry in India is probably the biggest business in the nation and it is
positioned fifth as far as creation, trade, utilization. The nourishment handling industry in
India is assessed to be worth of US$ 70 billion. The Indian food preparing industry in
India contributed 6.3 percent to India's GDP in 2003 and furthermore had 6% share
altogether modern creation. This industry utilizes 1.6 million laborers.

Dairy part has the most noteworthy portion of prepared nourishment with 37% of
absolute produce is handled, of which 15% is prepared by the sorted out segment.

Bundled products of the soil, milk, rice, tea, flavors and so forth which goes under
essential nourishment handling have 60% of prepared food sources.

Section WISE ANALYSIS:

DAIRY SECTOR

 This part first in quite a while of prepared nourishments with 37% of the produce.

 There are complete 676 dairy plants which are enrolled with Government of India.

 Out of the complete nation's use on nourishment milk and milk items comprises of
17%

Foods grown from the ground

 India is the second biggest vegetable maker and third biggest organic product
maker

 India represents 8.4% of the world nourishment and vegetable creation

 In India the all out region assessed for the organic product development is 4.18
million hectares and for vegetable development is 7.59 million hectares

GRAIN PROCESSING

 In 2005-06 India delivered 209.32 million tones of grains

 Grain preparing is the greatest part of nourishment area with portion of 40%

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  India has 516 enormous flour factories and in excess of 10 thousand heartbeat
plants

MEAT AND POULTRY PROCESSING

 India comprises of the biggest number of animals populace in world with half of
wild oxen and 16% of goat populace

 Consumption for both new and prepared meat per head is exceptionally low at 1.5
kg as contrasted and the world normal 35.5 kg

FISHERIES

 In this part India is the third biggest fish maker and second biggest in the in-land
fish creation on the planet.

 To the nation's GDP fisheries part comprises of 1.1%

Bundled FOODS

 In this section noodles is the quickest developing classification with CAGR of

15%

 Tomato ketchup and jams have low entrance levels as of late

Refreshments

 This portion is worth at US$ 155 million and out of which natural product
beverages and juices evaluated at US$ 60 million

 In the world India is the biggest maker of tea with 28% of all out worldwide
creation

 In the world India is likewise the fifth biggest maker of espresso with 4% of
absolute creation

INDIA'S STRENGTHS IN FOOD PROCESSING INDUSTRY:

 Favourable factor conditions-watered land, less expensive workforce, agro-

climatic conditions and so on.

 Supporting businesses

 Government backing and guidelines

 Investments required in the Food Processing SECTOR

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Question 2(c)

The challenges to the present industry from supply side of availability of agricultural

produce as an input factor to the event of food industry in India are as follows:
 Accurate forecasting of demand:
Companies within the food industry have analyzed importance of repeatable and an
accurate demand forecasting process. This helps to maximise production efficiency,
optimize distribution, minimize inventory and also ensures growth in projections.
Developing a requirement plan with the assistance of individuals in several roles and
areas use to form global supply chain management plans are very challenging.

 Efficient inventory management:

It is one among the foremost visible global supply chain management expenses in
food industry. the quantity of inventory which are required may be a by-product of
supply chain design, product quality and also the power of the corporate to predict
demand and produce products.
Warehouse management which are basic and doesn’t consider unique demand
variability, customer service targets, lead- time variability of every product
combination end in misaligned inventory positions. To specialise in a worth adding
task inventory management solutions are the simplest way for companies to spice
up up their service levels and release time for the workers .

 Time-phased Replenishment planning:

The better future visibility of the merchandise , material requirements, customer
demands are the output from inventory and demand planning. actually this is
often one among the simplest practices for global supply chain management. The
output also reflects the actions needed by suppliers and makers to satisfy the market
demand. Manufacturers of this industry are being asked to manage inventory at
locations of the customer.

 Optimize the master data in supply chain management:

Continued adoption of processes of companies and therefore the capacity to
leverage the web of-T hings, further drives the necessity to attach multiple systems of
the organization.

 Sales and operations planning:

The planning of sales and operations in supply chain management in food
industry specialise in balancing supply and demand over the tactical time horizon and
also make sure that the financial objectives of organizations are met.

Question 2(d)

The concept useful addition and development of rural economy by having food

processing industry.
 This industry has strong backward linkages with the agricultural economy.
Therefore growth in food processing industry, will have positive or negative will
have direct impact on economy of rural India.
 According to NABARD (2005-06) the share of agro-industry in rural industry in
terms of the many factors like number of enterprises, total employment and gross
value added were 83, 78, 72 percent respectively.

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 In rural areas, the food processing industry is that the second most vital industry
in terms of revenue generation, out of the agro processing sector.
 The food processing industry is especially unorganized, in rural areas.
 There are two sorts of setup in unorganized sector, consistent with NSSO
a. Own-account enterprise- It runs with none hired worker employed on a
daily basis
b. Establishment-It employs a minimum of one hired worker with fairly regular
basis.

The export market potential for Indian food processing industry.

 India’s enhancing exports provide stimulus to the domestic production. However

its growing imports support domestic production by supplying essential raw
materials, capital goods and advanced technology.
 The quality shall be the key to India’s success and India also has large prospects
for agricultural products.

 To boost exports, India has two challenges
a genuine quality issues
b. pseudo quality issues
 Total quality management begins from stage one among productions of the staple
 The highest value of export is especially contributed mainly by the animal related
products which are estimated at 26.4% of the whole export value.
 India’s exports of food and related products including animal related products
grew at a CAGR of 11.74% worth at US$ 16.2 billion.
 The Middle East and Southeast Asia are the most export destinations for
processed food products.

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Question 3(a)

Social marketing is that the a part of marketing, along side other concepts and

techniques, to realize specific behavioural goals for a social good, it begins and ends
with the audience the first aim of social marketing is ‘social good’, over ‘financial good’
unlike commercial marketing which aims at creating a possible customer by influencing
him or her to love and buy a product or service whereas a social marketer seeks to
influence clients to make a change in behavior.

• Government agencies use social marketing to encourage legal behaviors, also to

market the overall well-being of society. There are several government social marketing
campaigns designed to tell the general public on issues like food safety, sexually
transmitted diseases, and private hygiene etc. Social marketing may be a complex,
intellectual and human process to understanding people, creating change, innovative
initiatives and modifying behaviours.

• Action Exchange is that the process of heightening awareness, shifting attitudes and

strengthening knowledge relevant to desired behavior and by reducing negative
behaviours like cigarette smoking or encouraging positive behaviours like condom use.

• In social marketing, the distinguishing feature is its primary specialise in social good.

Though social marketing and commercial marketing make use of an equivalent concepts,
they differ in context and purpose. a billboard marketer aims at creating a customer by
influencing him or her to love and buy a product or service whereas a social marketer
seeks to influence clients to make a change in behavior audience Identify the target
groups and put them at the centre of each decision. so as to infl uence the audience ,
understand their behaviours and therefore the reasons. Action Change in behaviour
implies abandoning certain behaviours or modifying an old behaviour or accepting a
replacement one. The is happens only there's a positive gain that adequately compensates
the loss of the old behavior.

Examples,
1. Pepsi with youthful exuberance a corporation that competes with native food; formula
feeding competes with breastfeeding due to convenience and participation by
other relations . Intense Competition and rationalized by the participating organizations
and peer pressures. Pepsi promotes lifestyle soft drinks and fast foods. Friends may
encourage a university student to drink alcoholic beverages. Competition The social
world is filled with good and bad options. The audience can always prefer to do
something aside from what's being advocated. Pepsico India to place AIDS awareness
slogans on Coke and Pepsi bottles and caps and use their individual 1 million-strong
retail network for selling condoms.

2. Hindustan Latex Family Planning Promotion Trust (HLFPPT), a non-profi t

organization was promoted by HLL, the corporate realized the necessity for birth
control and healthcare programmes aimed toward the poor and disadvantaged sections of
the society .HLL is actively related to public health programmes of international
agencies, the Union Government’s National Rural Health Mission, Reproductive and
Child Health Project and National Aids Control Programme. The Trust was established
for promoting the agenda of birth control , its activities have now been broad-based
to specialise in reproductive and sexual health and to make sure that quality

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contraceptives are available to the people at a reasonable price. Social marketing may be
a key ingredient of product marketing for them.

Question 3(b)

Athreye segmented the agricultural market into three tiers. consistent with him the

BoP is that this segment that needs attention and, “We had to seek out how of addressing
the last segment, because it would help us fulfil our obligation also as generate
incremental new business.”As the poor aren't just the “bottom of the pyramid” or
just consumers of products. they supply knowledge and drive innovation.

Globalization and advancements in technology has impacted target groups like rural

households at rock bottom of the pyramid, farmers, fishermen, artisans, youth and
ladies .Government and NGOs have introduced collaborative development programmes
with expanding opportunities for improvements within the quality of labor and life for
various categories of individuals .

Rural markets are responding enthusiastically to the stimulus provided by the

communication and promotional campaigns and fairly priced innovative product and
repair offers of corporations.

BOTTOM-OF-THE-PYRAMID APPROACH helps businesses to improved radically by

injecting social entrepreneurship into the marketing philosophy and also a tool of social
marketing to like HUL and ITC in India. they might identify and understood that
development isn't a CSR or philanthropic act but a business that benefits the
corporate and therefore the poor. And believed that business cannot achieve a society
that fails, a replacement win–win sustainable model like social marketing and BoP is
important . The aim of this model is developing rural people into entrepreneurs or
participants in business. This has resulted within the creation of opportunities for
partnerships between companies and non-governmental organizations, not-for-profit
organizations, and governmental agencies. Ex. The Shakti amma initiative ,e-choupal
etc.

Canara Bank: The bank’s major focus is on imparting vocational skills to unemployed
people. The bank has partnered with various other banks like the Syndicate Bank and
therefore the Dharmastala Manjunatheshwara Educational Trust to line up 20 Rural
Entrepreneurship Institutes across India.To provide training associated with businesses
for the villagers. And Introduced the projects it undertakes alone, like artisans’ training
and computer literacy initiatives.

Question 3(c)

Public–private partnerships (PPP) make the foremost of the opportunities within the rural

space for personal players, and therefore the government’s willingness to
enhance various services in rural markets, public–private partnerships (PPPs) are
emerging as a win-win solution to supply cost-effective and better productivity, resulting
in an accelerated delivery of services with a transparent customer focus, quality

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healthcare to rural consumers, also it's delivering the promise of enhanced welfare
work along side ensuring the recovery of user charges.

PPP model and is bringing a growth across the country with its ownership being
accepted at every level of the governance structure. This helps to develop a
platform which will enable the govt , private, and social-sector organizations to
return together and meet their social and commercial goals for the advantage of rural
populations within the remote villages of the country, with the assistance of IT and non-
IT services.

Public–private partnership is an approach which will benefit the poor and therefore

the organizations simultaneously as it’s a equitable model that gives benefits to all or
any stakeholders equally. Such win-win market-based models are more likely to be
sustainable as they utilize the simplest strengths of every partner.
It is estimated that rural insurance services will grow from 14 %- 20 %, fuelled by PPP
initiatives and customised product offerings. The microfinance model is one PPP
initiative that has achieved scale and sustainability thanks to the active involvement
of the various stakeholder and therefore the poor themselves, NGOs, government and
financial institutions.

For example, YESHASVINI Initiated by the Karnataka government and Narayan

Hridayalaya as a PPP initiative in 2002, aims to supply quality healthcare facilities to
cooperative farmers across the state of Karnataka. it's self-funded healthcare scheme to
access quality healthcare at the nominal amount of INR 5 per month, covering over
1,700 surgical procedures for the farmers and their relations . The scheme offeres
cashless beneficiaries and treatment in additional than 135 hospitals across Karnataka.
After the launch within few months 5,000 farmers underwent various sorts of operations
and 23,500 farmers had out-patient medical consultations just for INR 5 per month.
Yashaswini Cooperative Farmers Healthcare Scheme, currently has quite 6 lakh enrolled
members from rural cooperative societies and shortly are going to be extended to the
whole state’s population of 6.5 crore.

Chiranjeevi Yojna is another example of how public–private partnership for maternity

care has dramatically reduced maternal and infant deathrate within the state of Gujarat.
Chiranjeevi Yojna with Gujarat government as a PPP initiative, together with private
healthcare providers to supply delivery care to the poor in rural India. Initially it had
been launched for was launched in 5 backward districts of Gujarat, later under this
scheme, the health department managed and contracted private, practicing obstetricians
and gynecologists who operated their own small hospitals in rural areas to
supply adequate care and treatment the doctors got an advance payment of about USD
625 on signing the contract with the govt , to the ladies in these districts for USD 4,500
(for 100 deliveries), eventually over 800 private-sector hospitals were participating  and
therefore the programme had helped buy quite 800,000 deliveries. Also for the
deliveries happened privately hospitals, they were reimbursed rapidly by the district
health office.

Question 3(d)
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The public–private–participation (PPP) models involving the govt , NGOs and
company enterprises may be a prediction to the socio-economic revolution sweeping the
countryside these change agents must offer incentives to motivate the target groups  to
form changes in their live the model are often successful only it understands and applies
the concept and techniques of social marketing. Change in behavior
implies abandoning certain old behaviours or modifying an old behavior or accepting a
replacement one. only there's a positive gain that adequately compensates the loss of the
old behavior. PPP is bringing about cost-effectiveness thus, various state governments
are collaborating with the private sector through PPPs to deal with the inefficiency and
inequity within the health system.
BoP (Bottom of pyramid) is that the distribution of wealth and therefore the capacity to
get incomes within the world are often captured within the sort of an economic pyramid.
At the highest of the pyramid are the rich with numerous opportunities for generating
high levels of income. Demands innovations BoP, as a market, provides a
replacement growth opportunity for the private sector and a forum for innovations.
Innovations in technology, products and services, and business models are going to
be needed to serve BoP consumers.
 4 Ps of marketing mix:
Product The expected behavior communicated to the audience, the associated benefits in
exchange like tangible objects and/or services that support behavior change.
Price Cost or barriers the audience face in making the specified behavior change.
Place Location where the audience will access the programme products and services and
where the audience will perform the specified behavior.
Promotion Communication through media channels, promotion materials and activities.

 Additional Social Marketing P’s:

Public Both the external and internal groups involved within the programme. External
include the audience , secondary audiences, policymakers and gatekeepers, while the
interior publics are those that are involved in how approvingly of the programme.
Partnership Combining or working with other organizations within the community that
have similar goals for creating synergy.
Policy- laws, rules and regulations along side decisions that help remove barriers and
alter the behavior of the audience . Social marketing is beneficial in removing obstacles
that prevent behavioral change.

Question 4(a)

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1.The way rural supply chain has been operating in most parts of India with reforms in
resource management skills, favorable policies, efficient and friendly technologies then
the transformation of rural supply chain is becoming a reality.
2. Technology facilitates a far better means of processing, supplying Agri-produce, and
creating market finished produce. Temperature controlled facilities, mobile refrigerators,
efficient energy means, technology aided cultivation, and irrigation methods are some
such initiatives where technology is changing face of agricultural production.
3. ITC e-choupals are creating sustainable stakeholder value by reorganizing the agri-
commodity supply chains while simultaneously improving the competitiveness of small
farmers and enhancing rural prosperity.
4. Industry best practices & well developed and maintained supply chains of
commercial goods can guide the availability of products within the rural market.
Also intrinsically rural markets offer variety of growth chances that are expected to
succeed in their potential. Agriculture offers huge opportunity for growth within
the rural supply chain management through Public and personal investments for
mechanization, introduction of best practices, modernizing the availability chain, making
price mechanisms more transparent and reducing post-harvest losses.
5. to extend the worth delivery processes within the food supply chain, Production &
consequent sale of produces by farmers and Rural Retail Network reengineering  must be
considered. While exposure to electronic and medium has increased consumers’
awareness about different brands, the shortage of physical distribution has created a
niche within the supply chain.
6. Increase within the informatization of rural logistics systems, adoption of smartphone
apps makes it easier for local villagers to deliver agriculture produce in lots to other
villager through farm shops or rural supermarkets. Increasing e-commerce initiatives and
a crowdsourcing approach is speeding up the delivery and lower the delivery cost for the
receiver.
Ex. Ghari, the second largest-selling detergent brand in India with an INR 3 billion turn-
over in 2012–13 entered the market through the economy segment where real volumes
lie. It focused on small-town housewives and villagers and therefore the rural market at
its focus and , the corporate kept its supply chain on the brink of key markets, which
helped in controlling the transportation costs Ghari occupied a market share of 17.4 per
cent within the detergent category.
ICT also assists all elements of the worth chain in bringing a few more efficient
exchange of products and services. Retailers use ICT to reinforce the general efficiency
of the worth chain generally and like placing orders or gather information from
distributors or wholesalers directly over the phonephone instead of visiting them
personally within the nearby towns. This has smoothened the availability chain and
reduced investment in stocks.

Question 4(b)

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1. In India 6.1 Lakhs of villages are there in rural India which spans across 3.2 million
square kilometers and is inhabited by 700 million people and roughly 3.6 million rural
retail points in India aren't covered by active distribution of products .
2. Efficient supply chains across India is difficult to imagine and hence there's an
increasing advocacy on behalf of foreign investment to enhance rural supply chain.
3. HUL introduced Project Streamline to reinforce its control on the agricultural supply
chain through a network of rural sub-stockists based in these villages. the
corporate gained a competitive edge, and extended its direct reach to 37 you look
after the country’s rural population.
4. The emergence of supermarkets has led to changes within the retailing model of fresh
produce and therefore the management of the availability chain, and exposure to
electronic and medium has increased consumers’ awareness about different brands, the
shortage of physical distribution has created a niche within the supply chain.
5. RUDI was initiated by Self Employed Women’s Association (SEWA) . RUDI Multi
Trading Company Limited has been established with an objective to internally generate
funds for the agricultural producer groups, enhance the standard , capacity and efficiency
of production with the assistance of latest technology for the farming, warehousing and
post-harvest processing of the agro commodities and improve the financial condition of
the marginal farmers and workers.
6. The central government is promoting the unified planning of rural logistics in selected
provinces, and prefectural or city-level rural logistics planning should be synchronized
with provincial development planning.
7. Indian Cold chain logistics supply chains cash in of technology improvements and IT
tools and software to capture and process data, product tracking and tracing,
synchronized freight transport transit times for time compression along the
availability chain and provide demand matching.
8. Government takes efforts to style and built supply chain as an entire in an integrated
manner with the processes of latest development , procurement and order to delivery
processes, while recent advances in RFID technology will have tremendous
impact within the management of the organic phenomenon particularly for source
identification and tracking and also in providing supply chain visibility.
9. Standardization may be a powerful tool for improving supply chain efficiency
.Standards enable partners across the availability chain to enjoy increased productivity
and economies of scale thanks to better compatibility and interoperability of their
systems and processes.

Question 4(c)

The challenges and bottlenecks for smooth flow of goods and services from and towards
rural markets are as follows:
 Transportation infrastructure-
It is one of the major hurdle in the SCM in rural markets nearly 50% of total 5, 76,000
villages of the country are not connected with the roads. In India many villages still have
kachaa road, because of such infrastructure issues many companies are not able to
penetrate the rural areas.

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The study conducted by the ICICI on rural markets has shown that the small shops in
rural areas play important role for making goods available for the mass population in
village.
 Lack of organizational relationship-
For a successful supply chain it is essential to have strategic alliances and partnerships.
Many companies have preferred vendor programs and also carrier to ensure about the
quality.
 Warehousing-
In India warehousing is a big problem in rural area as it is difficult to find suitablw
godowns. There is no public and Government warehousing facilities available in many
parts of rural areas. Therefore much of the material waste due to unavailability of
warehouse.
Some of the important inventory issues are:
a. shorter delivery times
b. just in time
c. point of sales
d. vendor managed inventory
e. consignment inventory
 Communication-
It is necessary to improve inventory levels and uncertainty. Communicating following
types of information is required for successful buyer/supplier relationship.
a. Product innovation
b. Demand forecasting
c. Vendor communication
d. Production schedules
 Cost issues-
One of the major reason is to establish a supply chain is to reduce costs of inventory,
logistics, channel members costs by eliminating the redundancies in the chain.
SCM also reduces the cycle times by quick response inventory system.

Question 4(d)

a) Advanced model in which separate channels are utilized for item appropriation in
urban and country advertises In this model, provincial dispersion has been
isolated from urban dissemination to make a particular spotlight on the rustic
market. The inclusion region of provincial merchants (RDs) is unmistakably
characterized. The RD covers a huge zone with poor street systems and a low
volume for each outlet, which makes it unfruitful for him to cover little areas.

b) Another appropriation model is fundamentally a customary model of circulation

wherein country markets are adjusted through a similar channel overhauling
urban markets This model is for the most part embraced by some local and
national players with constrained SKUs who by and large don't receive a different
provincial system.

c) Examples:

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  Bharat Nirman Yojna , is without question, about giving urban conveniences in
country regions. Be that as it may, it isn't just about that. Bharat Nirman is
something more than better country streets, provincial lodging, rustic network,
rustic schools and medical clinics. It is all these, however in particular, Bharat
Nirman is tied in with building another India. An India where the urbanrural
separate is not, at this point a noticeable one.
 The Government of Madhya Pradesh proposes to create Rural Shopping Malls
(RSM) over the State to take into account the requirements of populace living in
the provincial and in reverse zones outside the retail and dispersion system of
assembling organizations.
 To counter this additional cost, some companies are trying out more specific
distribution models such as mobile retailers, haats, and self-help groups. Such
models not only reduce the number of mediators and their roles, but also help to
expand access to domestic markets.

Question 5(a)

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1. The bigger extent of the INR 15-trillion Indian retail showcase is disorderly while the
composed retail accounts simply 5 percent. At present just 10,000 out of 600,000 towns
in India approach sorted out retail services.IT is trying for India to actualize composed
retail in country zones given the size and assorted variety topographical, social and
financial conditions.

2. The infiltration of sorted out retail in rustic India is exceptionally low. Around, 10,000
out of the 0.6 million towns in India approach sorted out retail benefits. Because of low
thickness of shops per town, lopsided convergence of shops and little size of retail
outlets, numerous levels of dispersion have gotten essential. Likewise burden and
exorbitant in dissemination makes retailing chaotic.

3. In Rural territories the retailers don't have the assets to stock different things and they
will stock the brand that sells the most subsequently country purchasers for the most part
don't have the chance to be presented to different brands. The explanation is that

4.Investment by the legislature for advancement In perspective on the enormous

speculations made by the administration in country framework improving the pay and
request levels, the possibilities for sorted out retail are believed to be splendid for rustic
India.

5. Government is attempting to engage provincial individuals with training, business,

higher buying power, better media introduction and better availability with the world
outside and ways are improved to execute sorted out retail.

6. Sorted out retail is expanding quickly because of ongoing speculations and

improvements in foundation and availability have expanded the physical reach to
unassuming communities. The development of sorted out retail into littler towns has
made things simpler and more financially savvy for advertisers.

7. There is no good example for Indian retailers to follow or adjust in their endeavors to
venture into rustic markets. In such conditions, advertisers have to a great extent taken
the agri-input and agri-yield courses, through activities like ITC's Choupal Saagar,
Aadhaar, and Tata Kisan Sansar to serve end buyers in country markets. ITC turned into
the primary composed player in rustic retail space by propelling the nation's first country
shopping center, 'Choupal Saagar', and offering an assorted item go, from FMCGs

8. ITC's Choupal Saagar, Aadhaar, and Tata Kisan Sansar are the key players in present
day retail in rustic India.to electronic machines to autos, endeavoring to give ranchers an
onestop goal for the entirety of their needs. 3A Bazaar is a one of a kind methodology
planned for giving the first chain of rustic retailing in Quite a while through portable
vans.

Question 5(b)

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Increasing share of organized retail: Organized retail is growing and it's estimated that it
might garner a ten per cent share by 2010 from a mere 3 per cent share at the
present .Indian Government is currently considering liberalization of India’s retail
market valued at $400 billion
 ITC Choupal Saagar - Choupal Saagar may be a warehouse for storing the farm
products that ITC buys through its e-Choupals. it's one among the fi rst organized
retail forays within the hinterland found out by the international business division
of tobacco major ITC. Th is may be a hub-cum-supermarket and forms a
neighborhood of the warehouse
 DSCL Hariyali Kisaan Bazaar- HKB was India’s largest rural chain that offered
50 per cent agricultural products along side 50 per cent commodity and various
product categories stocked and therefore the volume of business, targeted at
farmers, HKB operated with a hub and spoke model. The HKB is envisioned as
an instrumental link within the retail value chain, ready to supply large urban
retailers with fresh fruits, vegetables and grains procured directly from the
farming communities with which DSCL had built relationships. Generally, an
HKB outlet stocked around 400 categories and 5,000 SKUs of agri and non-agri
products.
 Tata Kisan Sansar The TKS may be a network of quite 600 farmer resource
centres catering to over 3 million farmers in 22,000 villages within the northern
and eastern parts of India.It is also amongst largest network providing agricultural
services to farmers. And acts as one-stop solution that provide farmers with
access to a good range of agricultural inputs, like vital fertilizers, seeds, and
pesticides, pulses, cattle feed, and farm implements, along side agricultural
services like soil testing and crop advisory services.
 Godrej Aadhaar Godrej Aadhaar, the agri-services-cum-rural retail initiative with
about 66 outlets, may be a complete solution provider for the farmer. Aadhar
reaches bent 50,000 farmers monthly through 300 employees who directly access
the produce of farmers from as many as 2,000 villages within the country Aadhar
would now function a purchase hub for the longer term Group’s retail
formats like Food Bazaar and KB’s Fair Price and even become a supplier to
other retailers across the country. All the prevailing Godrej Aadhar outlets, during
a bid to increase their current portfolio, started stocking the longer term Group’s
private labels and fi nancial products thanks to the venture deal.
 3A Bazaar is that the first mobile retailing initiative launched by a number
one export house in north India. Every day, each van is full of thousands of
things starting from groceries to FMCGs, cosmetics, garments, and stationery,
covers three to 5 villages. 3A Bazaar helps consumers to shop for authentic and
quality products at cheaper prices from their own doorsteps.

Question 5(c)

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ITC e-choupal enables rural farmers with internet access for accessing the daily prices of
crops, weather forecasts, the newest farming techniques, crop insurance, etc and offers
personalized crop management advisory services to farmers by integrating mobile
phones into the digital and physical network.

With the advancements in information technology, farmers can use information and
communication technology (ICT) for create sustainable marketing linkages. ITC e-
choupals has built sustainable stakeholder value by reorganizing the agri-commodity
supply chains while simultaneously and helping small farmers to be competitive and
enhance rural prosperity.

e-Choupal enables a farmer with information on the sort of soil, crop variety, the date of
sowing, and details about crop condition on an ongoing basis to the corporate and also
provides ITC with a further reach of 16 million farmers in its area of operation.
The e-Choupals addresses problems like fragmented supply chain, poor infrastructure
etc. ITC takes manages the network by communicating with stakeholders and stitching
together an end-to-end solution and removing the center men, eliminating the local
mandi system ensuring farmers got the proper value for his or her produce removing
value-for-money concerns and eliminate wasteful intermediation and multiple handling..
E- choupal also addresses the concerns stakeholder companies by virtually aggregating
the demand from many small farmers.

Benefitting from profitable distribution and merchandise design channel and e-commerce

platform that's also a low-cost fulfilment system focused on the requirements of rural
India , Today, quite 65,000 ICT kiosks are operational within the country, led by the
government-sponsored CSCs and therefore the corporation-initiated ITC e-Choupal
initiative.

e-Choupal was conceptualized as a sequence of Internet kiosks connected through

VSATs to facilitate the procurement of specific commodities. Each kiosk follows hub
and spoke model, where ITC procurement centre is that the hub and therefore the e-
Choupals are the spokes.

The e-Choupal provides farmers with farming know-how and services, timely and
relevant weather information, transparent price discovery and access to wider
markets.Currently over 4 million farmers use e-Choupal to their advantage and therefore
the network of 6,500 e-Choupal centres spread across 40,000 villages.
This model has led to a 4–7 to a price reductions in contracts for various buyers within
the commodities business, and for ITC, there has been a 40 a discount in transaction
costs of procurement.

ITc’s e-choupal e-Choupal, initiated by the tobacco giant ITC’s agribusiness division
aiming at creating an immediate procurement channel to shop for agricultural produce
from farmers rather than mandis. And re-engineerd the procurement process for soya,
tobacco, wheat, shrimp, and other crops in rural India.
Question 5(d)

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i.Godrej Aadhaar is a joint endeavor between The Future Group and Godrej Agrovet,
planning to rise as a total arrangement supplier to Indian ranchers. Aadhaar is situated as a
rustic grocery store. There is a tie up with ITC e-choupals and godrej aadhars to tap rustic
clients and right now there are 66 outlets the nation over.

Godrej Aadhaar has tied up with Eicher Motors to give business vehicles and HDFC Bank for
conveying money related administrations to country purchasers. Additionally makes
arrangements with Apollo Hospitals to set up drug stores/polyclinics at the huge
configuration stores, just as with BPCL for propelling petro-outlets in semi-urban and rustic
regions.

Aadhaar offers purchaser durables, nourishment and staple, attire, footwear, and so on., along
these lines taking into account each necessity of the provincial family and center is to
improve profitability, guarantee more significant yields, and give an improved money saving
advantage ratio.The new configuration Aadhaars give a favorable retail climate and a ladies
benevolent interface. Godrej Aadhaar focuses off er proficient direction with a target to
improve efficiency, bring better yields and improve cost–benefi t proportion. Th e
administrations offered run from crop warning administrations, soil-and water-testing
administrations, buyback of yield, crop account, supply of agri-data sources and creature
takes care of, move of data (climate, cost and request supply), entryway conveyance of items,
and so on.

At the point when a rancher sells his produce at an ITC e-choupal, he has money close by and
can utilize it to buy in to DTH administrations. So also, when a gas chamber from IndianOil
is conveyed at a house, the conveyance kid conveys Tata Sky prepaid vouchers that can be
bought by the client.

Extension designs At present there are 66 Aadhaar outlets the nation over. They connect with
50,000 ranchers consistently, taking into account 2,000 towns over the conditions of Punjab,
Haryana, Maharashtra, and Gujarat. The provincial retail activity of Godrej Agrovet Ltd is
wanting to set up at any rate 1,000 stores across rustic India in the following five years.

ii. DSCL Hariyali Kisaan Bazaar

DCM Shriram Consolidated Limited (DSCL) set up Hariyali Kisaan Bazaar (HKB), a rustic
business activity, expecting to make a drawn out relationship with ranchers through 'all-
under-one-rooftop' retailing and direct sourcing of value ranch produce, in this manner
expanding provincial wages through progress in farming practices.

Objectives The primary point of the activity is to enable ranchers by fulfi lling all their word
related prerequisites and to manufacture rancher well disposed connections to upgrade their
efficiency, it is additionally biggest provincial retail chain regarding the item classifications
supplied and the volume of business, directed at ranchers.

23
The HKB retail esteem chain, can supply huge urban retailers with new natural products,
vegetables and grains obtained legitimately from the cultivating networks with which DSCL
had manufactured connections.

The normal year-on-year development for the normal outlet from year one to year two was 40
percent, and from the second year on, 25 percent. DSCL assessed incomes of INR 50 million
every year from every outlet once it had been running for a few years.

Scope of administrations incorporates the stockpile of horticultural and day by day needs of
the rancher, for example, the accessibility of information sources, agronomy administrations,
account and yield linkages. HKB is create and alter retail arrangements through its drives to
serve the country client and is making a solid foundation for the activities spread over various
areas.

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