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Rural Marketing

Activity 1

Submitted By: Ritu Taneja

MBA-M&S

(A04)

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Rural perspective of ITC

Rural Marketing, for ITC, is purely BUSINESS

Sense.

ITC has ventured into agricultural products and

is training farmers in order to:

1. Serve the agriculture division(Spices, Cream, Sugar etc.) and

2. To feed its other divisions(Tobacco and Paper for Packaging).

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Basis of defining Rural Market

ITC selects those villages where the farmers are ready to produce what ITC

wants them to.

The selection is based on:

Which villages come within the proximity ofITC factories.

The quantity of raw material that ITC can get from them.

The factors such as electricity supply, water supply, area, population

density also play important role in the selection. Also, in case of lack of

some resource, ITC makes arrangements for the particular resource.

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Relationship Establishment

It is a mutual effort ofITC and the farmers to

serve each other.

The Mutual Benefit:

ITC gets agricultural products like butter, cream, tobacco leaves etc.from the farmers and trains them for productivity enhancement.

ITC provides vocational training to housewives and educates themabout the vaccines which are aimed for the infants.

And the village people considers ITC a friend and gives them theirproduce at cheaper rates.

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Tobacco Production

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Training and Equipping the Farmers

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Factory Production of Spices

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Supported by new techniques of Farming

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Farmer Empowerment through e- Chaupals

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Status of Execution

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Choupal Saagar

Following the impressive success of the e-Choupal, the Company launched

Choupal Saagar, a physical infrastructure hub that comprises collection

and storage facilities and a unique rural hypermarket that offers multiple

services under one roof.

This landmark infrastructure, which has set new benchmarks for rural

consumers also incorporates farmer facilitation centres with services such

as sourcing, training, soil testing, health clinic, cafeteria, banking,

investment services, fuel station, etc. ITC is engaged in scaling up the rural

retailing initiative to establish a chain of 100 Choupal Saagars in the nearfuture.

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Chaupal Sagar- The small version of a mall

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Chaupal Fresh

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Choupal Pradsarshan Khet

Another path-breaking initiative which brings the benefits of agriculturalbest practices to small and marginal farmers.

Backed by intensive research and knowledge.

Provides Agri-extension services which are qualitatively superior andinvolve pro-active handholding of farmers to ensure productivity gains.

The services are customized to meet local conditions, ensure timelyavailability of farm inputs including insurance and credit.

Provides a cluster of farmer schools for capturing indigenous knowledge.

This initiative, which covers more than 70,000 hectares, has a multiplierimpact and reaches out to over 1.6 million farmers.

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Chaupal Pradarshan Khet

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Rural marketing by other companies

Coco Cola requires water for production purposes and used to take water

from the villages which led to shortage of water in the areas. To deal with

the problem, the company has adopted the technique of Rain Water

Harvesting in the rural areas and underground wells have been

constructed.