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Itc E-Choupal

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Anchit Agrawal
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300 views5 pages

Itc E-Choupal

Uploaded by

Anchit Agrawal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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step 1: Identifying the target audience- rural market step 2:understanding the environment step 3: analysis of marketing budget-Rs.

5,000 crores are invested in e-choupals and choupal sagars Step 4: Planning the marketing mix:-7 Ps OF SERVICES

1. Product v/s Customer Expectation

Processed Fruits (Mango, Guava, Papaya etc.) Food Grains (Rice, Wheat and Pulses) Feed Ingredients (Soya bean ) Edible Nut (Groundnut) Coffee & Spices Marine Products (Shrimps and Prawns ) 2.Place v/s Conveniencee- a.Choupal within 5km radius serving 10villages b.A processing center within 25 - 30 km radius 3.People v/s Caringa.Sanchalak b.Samyojak c.Farmers d.ITC staff 4. Price v/s Cost-a. Transportation Cost b. Set up

c. CostMandi Cost v/s e Choupal cost. D. Insurance expenses 5.Process v/s Co-ordination- process: a. pricing b.inbound logistics c. inspection & grading d.weighing & payment e. hub logistics 6. Physical Evidence v/s Confirmation ChoupalSagar 7.Promotion v/s Communication a. Carries out CSR activities as part of promotions- CSR
Initiatives through e Choupal : Sunerha Kal Sunerha Kal (CSR) Initiatives focus on Improve Farmer Livelihoods, Long Term Community Impact programmers, Livestock Management programmers, Water Management , Self Help Groups focusing on women. Leveraging capability of ITC s management skills, echoupal reach , human and physical Infrastructure, The knowledge & experience of NGOs .

b. Provided livelihood to 5million people (work, education) c. Social and Farm Forestry d. Water shade development

e. Agriculture development f. ChoupalPradarshanKhet


RURAL MARKETING STRATEGY 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. ITCs 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. This enthusiastic response from farmers has encouraged ITC to plan for the extension of the eChoupal initiative to altogether 15 states across India over the next few years. On the anvil are plans to channelise other services related to micro-credit, health and education through the same e-Choupal infrastructure.

step 5: implementation Step 6: evaluating the marketing effectivenessCritical Success Factors The e-Choupal experience highlights that ICT platforms can provide rural connectivity and ecommerce support. These platforms have enormous potential provided they are conceptualized for the specific needs of the community and business. Some of the elements that helped the e-Choupal 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. Understanding the operations is vital before the systems are conceptualized. Use of local population, as much as possible helped the network to get the acceptance closely. 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. 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). In that sense e-choupal uses the local institutions but eliminates the information asymmetry that they used previously. 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. ITC used a trial and error method for developing the procedure for selecting Sanchalaks. In the platform terminology Sanchalak is the interface for maintaining the platform. For the farmer the Sanchalak is the e-Choupal. Training and sensitizing him for the crucial role has been the main reason for the acceptance of the Sanchalak by the farmers. Sanchalak, thus, acts as the coordinator of the knowledge community, and a representative of farming community. Evolving an appropriate user interface: The Technology interface used in rural areas has to be very simple. Interface has to be tried for rural settings and only after its validation it has to be used. Firstly, one has to understand the user pattern and secondly, it has to be tried, tested and validated. For example, farmers do not understand the concept of insurance. eChoupal evolved a simple interfacing arrangement that a farmer can understand. Bottom-up model for entrepreneurship: e-Choupal encourages enormous amount of creativity at the local level along with local entrepreneurship stimulation. The farmer and Sanchalak are free to use the e-choupal and develop new uses. e-Choupal unleashes the creative spirit in the rural India.

CONCLUSION ITC e-Choupal, an innovative strategy which is elaborative and extensive in rural markets so far. Critical factors in the apparent success of the venture are ITCs extensive knowledge of agriculture, the eort ITC has made to retain many aspects of the existing production system, including retaining the integral importance of local partners, the

companies commitment to transparency, and the respect and fairness with which both farmers and local partners are treated. The concepts, which are becoming more important in every market, include color, product attractiveness visibility, and display quality. In addition, availability (meeting local demand by increasing production locally), acceptability (building brand equity), and affordability (pricing higher than local brands, but adapting to local conditions) are the key factors. Why into Rural Marketing? ITC entered into rural marketing because it understood the problems faced by the farmers and also realized the vast opportunity it can capitalize using its mammoth reserves and surplus.

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