...E-VOLUTION: TECHNOLOGY AS A DRIVER OF RURAL RETAIL IN INDIA – A CASE OF ITC’S FORAY INTO THE RURAL MARKET. | Ms Smita Singh, Research Scholar, Department of Business Administration, University of Lucknow, Lucknow(M) 098395-01035e-mail: smita_saggi@rediffmail.com | Ms. Smita Singh Ms. Singh is a visiting faculty at Institute of Management Sciences, University of Lucknow and Distance Learning Centre for Punjab Technical University. She has been associated with academics for the past 2½ years and is enrolled for PhD research at the Department of Business Administration, University of Lucknow. She has worked with Wigan and Leigh College, Lucknow as Programme Manager and Academic Head, Management. A NTSE (NCERT) and HRD Ministry scholarship holder, she has qualified SLET in Anthropology. With over 8 years of industry experience, her current affiliation as Human Resource Consultant is with the Lucknow based project centre of Johns Hopkins University of Public Health and Hygiene, which she earlier served for 4 years as Manager HR and Research Associate. DECLARATION I hereby declare that the paper/case is original and is authored by me. The paper/case has not been published elsewhere ABSTRACT E-VOLUTION: TECHNOLOGY AS A DRIVER OF RURAL RETAIL IN INDIA – A CASE OF ITC’S FORAY INTO THE RURAL MARKET. 70 % of India's population lives in rural areas in its 627000 villages. Technopak’s...
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...www.iosrjournals.org Organized Retail in the Rural Markets in India 1 Surajit Dey, 2Dr. Sameena Rafat, 3Puja Agarwal 1 (Research Scholar, Department of management, CMJ University, India) 2 (Asst. Professor, IIPM, Lucknow , India) 3 (Management Faculty, Wisdom School of Management, India Abstract: Retail is a buzz word in today’s changing business environment. Different industrial sectors are in the phase of transition from conventional business models to innovative, market driven and consumer centric models. In India retail is not a new word, however the emerging formats of retailing are changing the entire scenario and posing tough challenges in front of Indian retailers. They are now designing customized retail products and services and targeting the untapped segment of the market. Presently, nearly 60% of the population resides in rural India and their retail requirements are partially met by the unorganized retail stores. This study is an attempt to explore the potential of rural retail market of India, accessing their needs for products and brands. The study also aims at developing a business model for the rural retail market in India. I. Introduction: Today Indian consumers are becoming very unpredictable. The consumer today, is richer, younger, eager to accept changes and more aspirational in his/her needs than ever before. This Statement is not confined to urban India but also applicable to rural India. A range of modern retailers...
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...Rural marketing in india accounts for 70% population and 50% of nation's GDP consituting a total income of $100 billion in 2010 elevates the level of significance should be given in expanding the market for rural india.It is a three step module starting with awereness,consumer engagement and finally retail contact.The dynamics of rural marketing has changed over years so has the perception about brands.As the RURAL YOUTH moving out from villages to near by cities and towns for education and employment creating increase in awareness of brands.As the rural marketing involves both urban and rural as it widely deals with sale of agricultural goods in urban areas and finished goods in rural areas.Along with the FMCG product brands the consumer durable goods brands taking their intiative in rural marketing explains its prominance and adoptance.Innovations tend to be happened in the brands in order to overcome challenges like pricing,distribution and packaging.630 billion rural population helping the marketers of most MNC's and indian companies to develop different strategies in tapping this huge market.Market growth of 3-4% per annum gives enouragement to rural investors.for the future decade indian rural market is driven literally by indian markets hence it creates opportunities for the youngsters in terms of innovation in rural distribution and promotion,pricing sensitivity and communication.Rural india buys goods for money not cheap goods which makes it profit making business...
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...Strategic 1 Management Of UNILEVER STRATEGIC ANALYSIS OF THE ISLAMIA UNIVERSITY OF BAHAWALPUR Strategic 2 Management Of UNILEVER Submitted by: Nadia Shoukat (23) MBA, 4th semester, Section A, (M) Submitted to: Sir Shahid Yaqoob MBA Marketing Submittion Date: 22 May, 2010 THE ISLAMIA UNIVERSITY OF BAHAWALPUR Strategic 3 Management Of UNILEVER DEDICATION WE DEDICATE THIS HUMBLE EFFORT TO The Holy Prophet “HAZRAT MUHAMMAD” (P.B.U.H) The greatest Social Worker, Whose every tear was for The Cause of humanity And also dedicated to THE UNFATHOMABLE LOVE, UNFLINCHING SUPPORT UNTIRING MIDNIGHT PRAYERS AND STEADFASTNESS OF “OUR REVERED PARENTS” WHO HAS BEEN A BEACONHOUSE FOR USFOR THE WHOLE OF OUR LIFE, WHO HAS ALWAYS SHOWED US THE RIGHT PATH, THE PATH OF TRUTHFULNESS AND HONESTY AND WHO HAS BEEN ALONG WITH US THROUGHOUT OUR STUDYING CARRIER THE ISLAMIA UNIVERSITY OF BAHAWALPUR Strategic 4 Management Of UNILEVER Acknowledgements God never spoils any effort; every piece of work is rewarded according to the nature of devotion for it. We are extremely thankful to ALLAH ALMIGHTY Who, in spite of numerous difficulties, vicissitudes and acute frustrations enabled us to probe the present study and dissertation. We bow our head to ALLAH ALMIGHTY for the buntings and the blessings that He has bestowed upon us. Who has given us the courage and stamina to come up to the expectations of our revered teachers and ever...
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...and create artisanal owned rural livelihoods through marketing of contemporary designed artisanal produce for urban markets,”2 Industree sources products and materials from small-scale artisan groups across Southern India and sells their products, primarily home textiles, gifts, and natural fiber furniture, to domestic and international markets. It currently operates three Industree-branded retail shops, sells via shop- in-shops in leading domestic retail stores, and exports products for international retailers such as IKEA. Industree’s annual revenue reached $1 million USD in 2007. What hinted you to start this venture? There are some 40 million rural artisans in India today. While global demand for Indian artisan products is growing both in India and abroad, rural artisans largely remain poor. Prior to the industrial revolution, high quality artisan products were historically crafted in rural areas for domestic and international consumption. Governments support for manufacturing centers in urban hubs has increasingly isolated rural producers and decreased their access to functioning markets. As a result, much of India’s rural population has migrated to cities in search of work, sadly trading rural unemployment for urban displacement and poverty. I found a new generation of socially responsible consumers emerging in India’s urban centers, one that is rooted in ethnicity yet aspires to modernity and I thought addressing this gap between rural unemployment, traditional...
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...FMCG NOVEMBER 2011 For updated information, please visit www.ibef.org 1 FMCG NOVEMBER 2011 Contents Advantage India Market overview and trends Growth drivers Success stories: Major players Opportunities Useful information For updated information, please visit www.ibef.org 2 FMCG NOVEMBER 2011 Advantage India Growing demand • Attractive opportunities • 2018E Market size: USD74 billion Rising disposable income of the young population has been a major growth driver for the sector Emergence of organised retail has boosted the distribution of FMCG sector Low penetration levels in rural market offer room for growth Consumers are highly adaptable to new and innovative products • • • Advantage India Increasing investments • There is a growing market for premium products Policy support • Industry saw heavy FDI inflows as they accounted for 2.1 per cent of the country’s total FDI 2000-10 Many players are pursuing inorganic growth by acquiring regional players Automatic investment approval of up to 100 per cent foreign equity is allowed Have improved on the infrastructure facilities which has increased access to the industry • • 2010 Market size: USD28 billion Notes: Market size estimates from Technopak 2018E – estimated figure for 2018 For updated information, please visit www.ibef.org ADVANTAGE INDIA 3 FMCG NOVEMBER 2011 Contents Advantage India Market overview and trends Growth drivers Success stories: Major players Opportunities...
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...criteria were used in selecting the case studies – the diversity of ownership models, and the requirement of a sufficient scale of the intervention. In addition to the field research conducted in 2008 using qualitative methods, the research also built on secondary sources. A review of the literature in the field of Information and Communication Technology for Development (ICTD) showed that while telecentres are viewed as contributing positively to development in general, they are largely not really seen as a space for catalysing transformative social change. Instead, there remains in the notion of telecentres for development a perpetuation of market-led approaches, wherein telecentres are viewed as a strategic means for expanding markets in rural areas, especially for corporates. In this approach, poor communities are repositioned as an opportunity for business, with ICTs as the most effective way of connecting them to the global market system. This espouses a version of inclusion that instumentalises disadvantaged sections, overlooking the potential of telecentres to serve as a tool for equitable and participatory development. Such subjugation of local development and the local community to the neo-liberal ideology can be seen as the ‘Walmartisation’ or ‘marketisation’ of...
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...advertising. In such they are building walls between themselves and target segments. Some of the theories suggested by Mr. Harish Bijoor are as follows 1. Get off the script: According to him modern retail store does not occupy less then 5.5% of market it is the Kirana stores that accommodate around 92%. So sustainable marketing is all about focusing in unorganized sector. Let the product speak and not the marketing. Eg: Pizza Hut (Keep the smile going), Jet Flight 2. Trysumers: It means a new consumer. Such consumers try everything before they buy. 3. Demand generation has taken a back seat: “Why buy when you can borrow”. – Proscmer Movement. People nowadays have started considering installments (emi) as an option to try a product and if it suits the consumer needs it will buy. So marketers have to create a demand in order to sustain with the competition. 4. Marketing the sublime and the ridiculous: Marketing hype is distributing real consumer. Brands with fake advertising are not accepted by customers anymore. Eg: Honest shirt, Toothpaste with oxygen. Consumers are trusting advertising less and are going by experiences of others. Don’t be stupid as a marketer. “When you are swimming against the consumer you are not with the consumer”. 5. Never forget RURAL: Rural population accounts for more than 60% of population...
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...Rural demand for, and consumption of, consumer products is set to explode. The challenge for most companies is to be able to offer appropriate products in an affordable way in relatively remote locations. It is our view that India will soon see an inflexion point in rural consumption.1 Mr. K.B. Dadiseth, Hindustan Lever Limited Chairman On August 30, 2004, Hindustan Lever Limited’s (HLL) share price on the Bombay Stock Exchange touched Rs.100.5 (US$ 2.28) - a new low for one of the largest Indian companies by market value (see Exhibit 1). In its Q2 2004 results, HLL’s bottom line had fallen by 43% due to price pressures in its mainstay detergents business. Procter & Gamble, its long-time nemesis, had unveiled a series of price cuts on its leading detergent brands, Ariel and Tide, forcing HLL to respond. As a consequence, operating profit margins, which had peaked in 2002 at 19.6%, declined to 14%.2 Furthermore, although the mergers, restructuring, and operating changes that HLL underwent in the 1990s had helped profits grow through 2003, the company’s top-line growth had remained more or less stagnant over the past few years, causing some analysts to re-align their portfolios. In fact, since 1999 revenues at HLL had remained nearly constant, an outcome stockholders had not welcomed. With this lack of growth, increasing attention was directed to the company’s Millennium Plan - an ambitious blueprint outlining the company’s growth strategies for the 21st century....
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...Masters of rural markets: Accenture Research Report The Hallmarks of High Performance Contents Foreword: Unleashing India’s rural multiplier effect Growing business confidence in rural opportunities The attractions and distractions of rural markets 03 05 09 Distinctive capabilities that enable 15 companies to succeed in India’s hinterland Framework factors critical to nurturing distinctive capabilities Developing the right capabilities—and acting on them Last word 28 29 31 2 Foreword Unleashing India’s rural multiplier effect But rural India’s contributions to the nation’s economic success—and the obvious potential for profitable growth—is just a part of the promise of wholehearted commitment to doing business beyond the city centers and suburbs. India’s rural markets offer unprecedented opportunities for global and local companies to experiment with approaches and business models, which if successful, may be replicated in rural markets of other emerging economies. India is on the march. Its momentum is not only evident in metros— it is apparent in small towns and villages as well. Collectively, all over India’s rural heartland and in its teeming cities, India is readying for an even more impressive era of economic growth. There is no question that India’s rural markets are becoming a powerful economic engine. One telltale sign: rural accounts now comprise over 50 percent of new subscribers for some of the leading telecom providers.1 The rural multiplier...
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...Colgate Mazbooth Daath rakhe surakshith The Colgate Rural Initiative, targeted at rural areas with a population between thirty and a hundred thousand people, aimed at disseminating information and spreading the message of oral hygiene to children and their families in schools and rural centres. To this effect, Colgate conducted dental check ups in along with various activities at schools. The dental check up camps were supervised by teams of dentists and organisers who interacted with over 1 lakh people teaching them the benefits of oral hygiene. Children were targeted through “infotainment” – activities that included interactive activities like essay writing and painting competitions centred around the “Spread a Smile” theme. Colgate, a company also tied up with ITC E-Choupal and Rotary to spread the message of dental care and oral hygiene to villages across India. The campaign successfully targeted over 156 villages in Uttar Pradesh in association with Project Disha and 36 villages in Maharashtra. In addition, dental camps were also conducted in the Dussera Mela at Kota. Dental checkups and school activities have succeeded in spreading the message of 'Zero Tooth Decay' to children and adults in around 433 villages and towns, bringing a brighter, bigger smile to rural India. This grass root initiative went a long way in helping Colgate touch base with consumers in the interiors. Abstract Promotion of brands in rural markets requires the special measures. Due to the social...
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...Major health problems in india : Major health problems in india communicable disease problem population problem environmental sanitation problem medical care problem nutritional problem COMMUNITY NUTRITION PROGRAMMES: INTEGRATED CHILD DEVELOPMENT SERVICE (ICDS) SCHEME : Integrated Child Development Service (ICDS) scheme was launched on 2nd October, 1975 (5th Five year Plan) in pursuance of the National Policy For Children started in 33 experimental blocks Success of the scheme led to its expansion to 2996 projects by the end of March 1994. Now the goal (Ninth Five Year Plan ) is universalization of ICDS throughout the country. Beneficiaries : Beneficiaries 1. Children below 6 years 2. Pregnant and lactating women 3. Women in the age group of 15-44 years 4. Adolescent girls in selected blocks Objectives : 1. Improve the nutrition and health status of children in the age group of 0-6 years 2. Lay the foundation for proper psychological, physical and social development of the child 3. Effective coordination and implementation of policy among the various departments 4. Enhance the capability of the mother to look after the normal health and nutrition needs through proper nutrition and health education. The Package of services provided by ICDS : 1. Supplementary nutrition, Vitamin-A, Iron and Folic Acid 2. Immunization 3. Health check-ups 4. Referral services 5. Treatment of minor illnesses 6. Nutrition and health education to women 7. Pre-school...
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...discernible trend. In 1951, 47% of India's rural population was below the poverty line. The proportion went up to 64% in 1954-55; it came down to 45% in 1960-61 but in 1977-78, it went up again to 51%. Mid-1970s to 1990: Income poverty declined significantly between the mid-1970s and the end of the 1980s. The decline was more pronounced between 1977-78 and 1986-87, with rural income poverty declining from 51% to 39%. It went down further to 34% by 1989-90. Urban income poverty went down from 41% in 1977-78 to 34% in 1986-87, and further to 33% in 1989-90. After 1991: This post-economic reform period evidenced both setbacks and progress. Rural income poverty increased from 34% in 1989-90 to 43% in 1992 and then fell to 37% in 1993-94. Urban income poverty went up from 33.4% in 1989-90 to 33.7% in 1992 and declined to 32% in 1993-94 Also, NSS data for 1994-95 to 1998 show little or no poverty reduction, so that the evidence till 1999-2000 was that poverty, particularly rural poverty, had increased post-reform. However, the official estimate of poverty for 1999-2000 was 26.1%, a dramatic decline that led to much debate and analysis. This was because for this year the NSS had adopted a new survey methodology that led to both higher estimated mean consumption and also an estimated distribution that was more equal than in past NSS surveys. The latest NSS survey for 2004-05 is fully comparable to the surveys before 1999-2000 and shows poverty at 28.3% in rural areas, 25.7% in urban areas and...
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...me personally for several reasons. I chose to write about urban greenspaces because parks and forests were a very important aspect of my childhood, I have observed how the disparity of greenspaces between communities affects them, and because my exposure to greenspaces has provided me with a valuable relationship with the natural world. Growing up in a rural area, the majority of my childhood activities were dependent on the parks and forests that were accessible to me. I played soccer in the nearby fields, learned about animals in the closest ponds and creeks, and socialized with other kids at playgrounds and parks. As I grew older my choice of activities changed but the venue remained the same. Playing soccer quickly became playing baseball while exploring nature at nearby creeks evolved into day hiking trips at national parks and forests. The parks and greenspaces around me acted as stages for my curiosity, recreation, and socializing and were invaluable experiences growing up. All children and adults should experience the benefits that greenspaces provide regardless of whether they live in an urban or rural environment. I was naive to the important role that greenspaces played in my life and development until I relocated to a more urban environment that lacked accessible greenspaces. Having been surrounded by forests, small nature areas, and community parks growing up, I took the benefits of these greenspaces for granted. While the accessibility of greenspaces...
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...Advantages of India in macro business environment Innovating for Emerging Markets A few decades ago, India was seen as a producer of finished goods for the international market, or if we put it bluntly, we were seen as a dumping ground for products from the developed countries. A pretty sad scenario as we used to import more and our exports were frugal. Barring agriculture and spices, we did not have much to rave about. However, a change in mindset of the authorities has paved the path towards progress. India’s economic growth has prospered over the years, thanks largely to the opening of markets to foreign companies and investors, which has ushered a very healthy and competitive environment. This trend started way back in the early 90s, where liberalisation, privatisation and globalisation policy of 1991 opened up new horizons of opportunities for Indian business to take shape firmly and be equally competent in the world market. As a result, India has progressed quite well in terms of technological innovation and has managed to produce high-tech products and services. In a way, we are world leaders, when it comes to providing solutions, as more or less, every software product or service that comes out has a “made in India” tag to it. It definitely makes us feel proud as we are one of the top contributors to the global economy. But, somewhere in this melee, we are underperforming to our true innovation potential—this somehow has affected our industrial competitiveness...
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