leveraging itc for rural mktg
TRANSCRIPT
-
8/3/2019 Leveraging ITC for Rural Mktg
1/26
Leveraging ICT for Rural MarketingAmit K Roy ITC LTD - IBD
FICCI RURAL MARKETING SUMMITMay 10th 2007, New Delhi
-
8/3/2019 Leveraging ITC for Rural Mktg
2/26
What we keep hearing about RuralWhat we keep hearing about Rural Large Population baseLarge Population base
Lower IncomesLower Incomes
Monsoon DependentMonsoon Dependent Rural is differentRural is different
Limited Media reachLimited Media reach
IlliteracyIlliteracy
Poor InfrastructurePoor Infrastructure
Spurious ProductsSpurious Products
Unviable Direct DistributionUnviable Direct Distribution
Insufficient ResearchInsufficient Research
-
8/3/2019 Leveraging ITC for Rural Mktg
3/26
We Believe that the Incomes inWe Believe that the Incomes inRural are low because ofRural are low because of
FragmentationFragmentation Geographical DispersionGeographical Dispersion
HeterogeneityHeterogeneity
Weak InfrastructureWeak Infrastructure
Scope of my PresentationScope of my Presentation
Talk about implications of these realitiesTalk about implications of these realities
Explain how IT makes a positive DifferenceExplain how IT makes a positive Difference
Illustrate through ITCIllustrate through ITC eChoupaleChoupal case Studycase Study
-
8/3/2019 Leveraging ITC for Rural Mktg
4/26
-
8/3/2019 Leveraging ITC for Rural Mktg
5/26
Efforts made so farEfforts made so far
Unbundled InstitutionsUnbundled Institutions Right Solutions, but oneRight Solutions, but onecan only go this far.can only go this far.
Institutional Credit : Constrained by difficult Counterparty risInstitutional Credit : Constrained by difficult Counterparty riskkmanagement.management.
GovtGovtAgriAgri Extension workerExtension worker High Cost and low impactHigh Cost and low impact
AgriAgri Input CompaniesInput Companies-- Typically Product FocusTypically Product Focus
Cooperative SocietiesCooperative Societies Benefits Cornered by a few .Benefits Cornered by a few .
MandiMandi Ideal Price Discovery, Sunk cost on transportation , forcesIdeal Price Discovery, Sunk cost on transportation , forcesFarmers to Sell.Farmers to Sell.
Higher Transactions cost and malpractices by tHigher Transactions cost and malpractices by the middlemenhe middlemen
-
8/3/2019 Leveraging ITC for Rural Mktg
6/26
Which resulted in ..Which resulted in ..
Low Productivity
Low Investment
Low Risk Taking Ability
Low Incomes
-
8/3/2019 Leveraging ITC for Rural Mktg
7/26
Implications for Rural marketersImplications for Rural marketers
Passive DistributionPassive DistributionWeak InfrastructureWeak Infrastructure
Not worthwhile toNot worthwhile to customisecustomiseHeterogeneityHeterogeneity
High Cost of reachHigh Cost of reachGeographicalGeographical
DispersionDispersion
Reward: Effort ratio better in UrbanReward: Effort ratio better in UrbanFragmentationFragmentation
ImplicationImplicationRealityReality
-
8/3/2019 Leveraging ITC for Rural Mktg
8/26
Which resulted in
-
8/3/2019 Leveraging ITC for Rural Mktg
9/26
-
8/3/2019 Leveraging ITC for Rural Mktg
10/26
ENTER IT - Illustration The ITC eChoupal
-
8/3/2019 Leveraging ITC for Rural Mktg
11/26
The Problem Faced by FarmerThe 2 DsThe Problem Faced by FarmerThe 2 Ds DEEP SEADEEP SEA -- Institutional supportInstitutional support
Information on farming best practices/Information on farming best practices/
weatherweather
Quality and information on InputsQuality and information on Inputs
DEVILDEVIL Middle MenMiddle Men
Price DiscoveryPrice Discovery
Quality and weighmentQuality and weighment
Handling LossHandling Loss
TimeTime
-
8/3/2019 Leveraging ITC for Rural Mktg
12/26
TheThe eChoupaleChoupal Information and Communication Technology Infrastructure at eachInformation and Communication Technology Infrastructure at each
eChoupaleChoupal..
Computer with printerComputer with printer
Internet connectionInternet connection
Solar PanelSolar Panel
VSATVSAT
This farmer called This farmer called SanchalakSanchalak is is
EducatedEducated
A progressive farmer middle size farmer.A progressive farmer middle size farmer.
Well respected by fellow farmersWell respected by fellow farmers Not a businessmanNot a businessman
A formal training is imparted to the Sanchalaks on the usage of the ICT
infrastructure.
-
8/3/2019 Leveraging ITC for Rural Mktg
13/26
Power Connectivity
Training Content
Overcoming OddsOvercoming Odds
-
8/3/2019 Leveraging ITC for Rural Mktg
14/26
e helps overcome 2Ds..e helps overcome 2Ds..Unbundling Information and TransactionUnbundling Information and Transaction
Price Discovery before deciding to sellPrice Discovery before deciding to sell
Freedom of choice for transactionFreedom of choice for transaction
PaymentPayment Cash on spotCash on spot
Bundling Information, Knowledge and TransactionBundling Information, Knowledge and Transaction
Knowledge on Farming best practicesKnowledge on Farming best practices
Information on WeatherInformation on Weather
High Quality Products and SolutionsHigh Quality Products and Solutions UsageUsage
Power of scale to farmers Overall improvement in productivity Sanchalak has build tremendous Trust and Credibility in
the Village.
-
8/3/2019 Leveraging ITC for Rural Mktg
15/26
Relevant & Real-time Information
Commodity prices, Local Weather, News
Customised Knowledge
Farm Management, , Risk Management
Direct Marketing Channel for Farm Produce
Lower Transaction Costs, Better Value through Traceability
Supply Chain for FMCGs, Vehicles, and Farm Inputs Screened for Quality,
Demand Aggregation
Competitive Prices
Efficient Logistics
Financial Services Life, General , Health and Crop Insurance
Education
The eChoupal Services
-
8/3/2019 Leveraging ITC for Rural Mktg
16/26
Whats in it for the farmer?
Bottom line for the farmer
Increased yieldsIncreased yields
Improved QualityImproved Quality
Reduction in Transaction costsReduction in Transaction costs
Power of Scale to the Small Farmer
Customized Knowledge despite Heterogeneity
Real time information despite Distances
-
8/3/2019 Leveraging ITC for Rural Mktg
17/26
The Network SizeThe Network Size
Our Vision - 20000 choupals ,covering 100, 000
villages in 16 states
3393533935No of VillagesNo of Villages
61706170150150TotalTotal
10010033Andhra PradeshAndhra Pradesh
10010022KarnatakaKarnataka
8708702525RajasthanRajasthan
100010002626MaharashtraMaharashtra
210021004848Uttar PradeshUttar Pradesh
200020004646Madhya PradeshMadhya Pradesh
ChoupalsChoupalsHubsHubsStateState
-
8/3/2019 Leveraging ITC for Rural Mktg
18/26
Distribution thruDistribution thru eChoupaleChoupal
Company O/Company O/lsls egeg TVS,TVS, EicherEicher etcetcLead Customers to respectiveLead Customers to respectiveSpecial ProductsSpecial Products
Hypermarket @Hypermarket @ ChoupalChoupal SaagarSaagarBulk buy and High ValueBulk buy and High Value
b) Aggregates Demandb) Aggregates Demand
a) Continuous Inventorya) Continuous Inventory
SanchalakSanchalakFacilitates DistributionFacilitates DistributionContinuous AvailabilityContinuous Availability
Active ServicingActive Servicing uptoupto rural outletsrural outletsDaily BuyDaily Buy
MechanismMechanismCategoryCategory
-
8/3/2019 Leveraging ITC for Rural Mktg
19/26
Marketing Services thruMarketing Services thru eChoupaleChoupal
DistributionDistribution ResearchResearch
CommunicationCommunication
Micro MarketingMicro Marketing
SamplingSampling
Product DemonstrationProduct Demonstration
-
8/3/2019 Leveraging ITC for Rural Mktg
20/26
Choupal Sagar Can make a difference..
-
8/3/2019 Leveraging ITC for Rural Mktg
21/26
State of Art facility forProcurement.
-
8/3/2019 Leveraging ITC for Rural Mktg
22/26
Setting new benchmarks in shopping experience for ruralSetting new benchmarks in shopping experience for rural
ConsumersConsumers
-
8/3/2019 Leveraging ITC for Rural Mktg
23/26
Wide Range of Product CategoriesWide Range of Product Categories
-
8/3/2019 Leveraging ITC for Rural Mktg
24/26
Coming out with Families
Increasing.
-
8/3/2019 Leveraging ITC for Rural Mktg
25/26
RecapRecap
ICT Ingredients of ITC eChoupalICT Ingredients of ITC eChoupal
Deliver realDeliver real--time information and customisedtime information and customised
knowledgeknowledge
Aggregate demand and access high qualityAggregate demand and access high quality
products at lower costproducts at lower cost
Act as a direct marketing channel allowing efficientAct as a direct marketing channel allowing efficient
logistics managementlogistics management
Provide products as per the needs of the villagersProvide products as per the needs of the villagers
-
8/3/2019 Leveraging ITC for Rural Mktg
26/26
Thank YouThank You