E-Volution: Technology as a Driver of Rural Retail in India – a Case of Itc’s Foray Into the Rural Market.

In: Business and Management

Submitted By SmitaSingh
Words 6685
Pages 27
| 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 estimated size of the Indian rural market at USD 300 billion shows the rural-urban split in the ratio 55 – 45 and the FMCG and durables consumption in the rural market at about 53% and 59% of all India figures respectively. Organised retail, in recognition of this potential has started offering products and services to the rural consumers, but find inadequate infrastructural…...

Similar Documents

Retailing in Rural Market

...2249-877X Pu b l i s h ed b y : S o u th As i a n Aca d e m i c Re s ea r ch J o u rn a l s SAJMMR: South Asian Journal of Marketing & Management Research RURAL RETAIL REVOLUTION: THE RISE OF RURAL MARKET ASHISH GUPTA* *Research Scholar, School of management Studies, Motilal Nehru National Institute of Technology, Allahabad, India. ABSTRACT “The future lies with those companies who see the poor as their customers." C. K. Prahalad Strategic Guru Rural India is characterized by low per capita income, low productivity, low literacy and low rate of industrialization along with absence of basic amenities. The unprivileged class is set back by a lack of educational opportunities that could empower them to confidently pursue economic progress and overcome the debilitating effects of low literacy and rigid social hierarchies. The Indian rural retail opportunity is currently estimated to be in excess of Rs. 1400 billion (approximately US$34 billion). The figure is likely to touch Rs. 1800 billion (approximately US$ 43 billion) in 2010 and go up to Rs. 2400 billion (approximately US$ 58 billion) by 2015, according to CII - YES BANK Study on the Rural Retail Sector15. India’s rural markets are growing at double the rate of urban markets. The retail revolution is going to act as a catalyst. So, the new concept that is hitting the market today is the "Rural Retailing". KEYWORDS: Rural India, Rural retail, rural market, Retail revolution, Kirana stores.......

Words: 7474 - Pages: 30

Hul Entering in Rural Market

...THE WILLIAM DAVIDSON INSTITUTE 06 November 2006 case 1-428-604 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 About Hindustan Lever Limited Hindustan Lever Limited began operating in India in 1888 with the distribution of its “Made in England” Sunlight detergent. In 1931, when India was still a British colony, Hindustan Vanaspati Limited was formed as a 100% subsidiary of Unilever in India. It primarily sold soaps, detergents, and other household products to a select group of affluent consumers, such as British government employees and the Indian elite. In Research Assistant Maulin Vakil and Professor Ted London of the University of Michigan developed this case. They thank Vijay Sharma and Rohithari Rajan of Hindustan Lever for their assistance.© 2008, Ted London. DO 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. The Millennium Plan was a part of the company’s renewed emphasis on business focus and operational efficiencies.......

Words: 9456 - Pages: 38

Retail Market in India

... Retailing Challenges in INDIA Submitted By: Sudev Rajdarshan (2011198) Shriram Tarawade (2011204) Valluru Naveen (2011218) Varun Luthra (2011221) Vasundhara Singh (2011222) INTRODUCTION The recent time has been observed as growth of Indian organized retail market with many folds. Numerous business groups are attracted in the past few years, including some renowned business groups like Bharti, Future, Reliance, and Aditya Birla to establish hold, showing the future growth in times to come. In addition, organized retail sector has also grabbed the attention of foreign companies, showing their interest to enter India, Retailing in India is witnessing a radical transformation. The increase in the number of retail chains across the country is an indication that retailing is emerging as an industry and will boom in a big way in the near future. Retailing like any product does follow a life cycle. India is currently at a stage where customers needed variety in products and retail formats. At present, the contribution of retailing is just about two percentages to total size of $180 billion. Almost every major Indian business house are either getting into the retail space or are consolidating......

Words: 4016 - Pages: 17

Rural Urban Divide in India

...Rural Urban divide in India The sharp increase in rural-urban disparities in India after decades of planned development is alarming, for planning itself was conceived as an instrument to narrow down such disparities. RURAL-urban disparities, particularly in post-colonial countries, have for long been one of the causes of concern for the policymakers. The disparities are seen in all spheres of human life - economic and non-economic. The long colonial rule in India had created an urban-rural divide. What causes great concern now-a-days is the sharp increase in the level of disparities after a few decades of planning, especially because planning was conceived as an instrument to narrow down rural-urban disparities. The rural-urban disparities is found across the World, as is indicated with the fact that Cities take up less than two percent of the Earth’s land surface, but are home to almost half of the world’s population and utilize seventy-five percent of the Earth’s resources. In 1998 47 percent of the world’s population lived in cities as opposed to 29 percent in 1950. Globalization is leading to increased urbanization. According to the World Bank, urban areas in developing countries account for an estimated 60 - 80 percent of GDP. Urban populations mainly have greater access to water and sanitation services, but an estimated quarter to a half of those populations live in slums or squatter settlements. As regards India, the statistics are about 70% of the people live in......

Words: 3084 - Pages: 13

Rural Marketing: a New Way to Tap the Rural Consumers in Present Scenario

...A Research paper On Rural marketing: A New Way to Tap The Rural Consumers In Present Scenario Name of Authors:- *Mr. Rajesh Rathore Research Scholar , Maharaja College of Management, Udaipur, Rajasthan Corresponding Address:- Maharaja College of Management Maharaja Educational Campus, N.H.76, Airport Road, Debari, Udaipur (Rajasthan) – 313024 E-mail:- rajesh_rathore@rediffmail.com Mobile No:- 07597868902 Rural marketing: A New Way to Tap The Rural Consumers In Present Scenario Abstract *Mr. Rajesh Rathore Indian rural market consists of more than 740 million consumers and has wide potential for expansion. According to Census 2001, 73% of Indian population is living in rural areas. Though over the last three decades there has been a marginal reduction in the rural population expressed as a percentage of total population, there has been a steady growth in rural population in terms of absolute numbers and it has reached 74 crores. After the 1991 economic reforms there have been many changes in the socio, economic, political and cultural outlook of India. The rural India is providing a large consumer base to the marketers to market their products. This paper highlights the challenges of marketing communication for rural Indian consumers. Over the past few years rural India has witnessed an increase in......

Words: 4107 - Pages: 17

Why Rural India Is Important?

...Why Rural India is important (for policy makers, business country as a whole)? The word Rural has no specific definition and it depends upon the perceptions of the people. Different people differentiate or mark rural area in accordance to their priorities. It is measured by the parameters leading to underdevelopment or unawareness. It can deal with different sectors and is not specific to any area of work. The Rural area for a policy maker may be one but the same area from the point of view of a businessman might not be underdeveloped. This is the reason, the word ‘Rural’ cannot be defined and it doesn’t hold any concrete definition. When we talk about development it basically deals with the quality of life of the people. Development of a country is measured by the HDI index that takes into account parameters like life expectancy, literacy and the standard of living of its citizens. And in a country with such a large population living below this standard needs to concentrate more on the rural areas to bring about an inclusive growth & development. Rural has become a very important area to be focussed upon because of many reasons. It acts as major source of man power, resources, opportunities etc. There is a large force of underdeveloped people. There is a need to enlighten them and make them aware about different things and then they can be helpful to the country as a whole in many ways. Again, there is abundance of resources available in rural areas. But the proper...

Words: 1125 - Pages: 5

Rural Lpg Marketing in India

...Rural LPG Marketing Presentation by Ashok Sen General Manager(LPG-Sales) Indianoil Corporation Limited India Agenda • Overview- LPG Marking in India • New Initiatives • Supply and Demand • Conclusion Various Products Marketed in LPG • Domestic LPG – Packed product in 14.2Kg, & 5kg cylinders, home delivered through distributors Non Domestic LPG – Packed product 19Kg and 47.5 kg delivered supply through distributors. Bulk – Delivered to Storage Tanks of Customers – Business Associates to garner Customers Auto LPG – Through Retail Outlets along with MS/Diesel and/or stand alone outlets Share of Products(%) • 407.6 6.4% 117.3 82.7 1.9% 1.3% • Segments 5719.8 90.4% • Dom. NDNE Bulk Auto Domestic LPG Business Overview • Total Customer Strength : 142 Million (IOC- 69.7 Million) • Average Enrolment last 3 Years : 10.4 Million (IOC- 4.9 Million) • Daily Bottling Source (Refineries/Import) 185 Bottling Plants (IOC 90) 11860 Distributors (IOC 6110) 142 Million Customers (IOC 69.7 Million) HPC 25% : 3.3 Million (IOC- 1.6 Million) HPC 26% Industry Share Customer Population IOC 49% BPC 25% Industry Share Distributors IOC 52% BPC 23% India- Unity in Diversity • • • • Current population 1.2 billion. 246.7 million Households >30 lakh cyl a day Environment movement on the rise. – Strict Guidelines by Government. – Shift to efficiency and concern for Environment • For better logistics by packaging near to market, bottling plants even at remotest corners– At Leh -......

Words: 2402 - Pages: 10

Rural India

...Visit to the boys hostel(Gunnore) According to the schedule,we visited to Gunnore block where we had to see the boys hostel and to understand about the policies being implemented with respect to the education system of Madhya Pradesh government.The block is about 35 kilometres from Panna district.We reached the hostel around 11am in the morning Location The hostel was located little away from the main market .But the surrounding was very good and the first impression was about the cleanliness.The hostel was very clean .Proper gardening was done on a regular basis with good number of plants and trees were there inside the boundary of the hostel and the the atmosphere was very peaceful. The hostel had only tweny seats.The students were given seats based on academic performance.The hostel had only ninth and tenth class students.The students were given Rs 970 as a scholarship of which 10% of it was deposited in bank account of the students and the remaining 90% was deposited as mess fee. Staffs There were altogether three people who were given the responsibility of the hostel.Firstly,there was a care taker who looked after the students.He was responsible for maintaining the accounts of the students.Besides that he was given a separate block inside the hostel area where lived.He could not leave the hostel without the prior permission of the concerned authorities.Secondly,there was a person who looked after the kitchen work .Thirdly,there was a watchman whose duty was to......

Words: 573 - Pages: 3

Growth in Rural India

...Growth in Rural India: Children and Babies Maria Celina Hidajat Anthropology 315 Lab 4 (Proposal and Report) Growth in Rural India: Children and Babies Maria Celina Hidajat Lab 4 Table of Contents Title Page Table of Contents Section 1: Proposal Executive Summary Budget Itinerary Letter of Invitation Proceedings Section 2: Report Executive Summary Study Methods Graphs Results Discussion Conclusion Works Cited 12 13 16 18 19 20 21 23 1 2 3 4 5 6 9 10 2 Growth in Rural India: Children and Babies Maria Celina Hidajat Lab 4 Section 1: Proposal 3 Growth in Rural India: Children and Babies Maria Celina Hidajat Lab 4 Executive Summary Personnel My team will consist of three professional anthropologists including myself, and three apprentices which will serve as assistants while interning throughout the study, namely:  Maria Celina Hidajat, Ph.D. in Comparative Human Development  Diana Mendoza, Ph.D. in Nutritional Anthropology  Scott Hookey, Ph.D. in Nutritional Anthropology Study We will be conducting an anthropometry regarding the growth and malnutrition of approximately 650 people (10% of the population in Pune, India), which include new mothers with children between the ages of six months to six years. We will be going to Pune, India, which has a malnutrition epidemic, for 5 days starting on December 23, 2013. I brought along this article with me to further aid my study: Semba, Richard D., Saskia de Pee, Kai Sun, Ashley A. Campbell, Martin W.......

Words: 4888 - Pages: 20

Future of Payment Systems in Rural India

...In the partial fulfillment of AF Project to Prof. Vaibhav Bhamoriya Future of Payment Services in Rural Areas Submitted By Group 5 Amrita Dokania, Anjali Neha Lakra, Ashish Negi, Bhawna Nirmal, Veeru Kumar Prajapati INDIAN INSTITUTE OF MANAGEMENT, AHMEDABAD Introduction Payments are indispensable parts of our daily transactions, be it B2B, B2C or C2C, and be it rural areas or urban areas. Payment system of a country should be “safe, secure, efficient and accessible” owing to its vital role in raising the GDP of a nation. Payments being one of the most important parts of the financial system, different channels that accelerate the process efficiently constitute the focus of the system. Banking industry has witnessed a tremendous growth in the last few decades in terms of volume and the complexities in the banking system. Even if banks have made significant improvements in the recent years for achieving financial viability and profitability there have been concerns regarding reach and serving a huge population of interior areas. There has been a skewed distribution of population i.e. 6000 per bank branch in urban and 24000 in the rural areas. India has approximately 6.4 lakh villages out of which 5 lakh villages are still unbanked because of the operational and structural issues for example viability, long distance, costs etc.   Although rural India comprises of 68% of population, it constitutes only 9% of total deposits and 8% of advances which is......

Words: 4047 - Pages: 17

Marketing Practices in Rural India

...Current Marketing Practices in Consumer Durables in Rural India Contents Introduction ........................................................................................................... 3 Indian Rural Market: ........................................................................................... 3 Recent shift in attention from urban to rural market:......................................... 3 Special Features of rural markets: ...................................................................... 4 Methodology ......................................................................................................... 6 Questionnaire ........................................................................................................ 7 Responses .............................................................................................................. 8 Respondent 1...................................................................................................... 8 Respondent 2...................................................................................................... 9 Respondent 3.................................................................................................... 11 Learnings from the Project................................................................................... 14 Awareness ........................................................................................................ 14 Acceptability .......................

Words: 2902 - Pages: 12

E-Governance for Rural Development

...E-Governance for Rural Development Swati Bhatt Sr. Lecturer (Marketing Area), Dept of Management Studies India is a land of diversity. This diversity spans across culture, tradition, language, geography and the economic condition of the people. It is a nation that has a significant number of people who are below the minimal socio-economic benchmarks. This includes rural and urban poor, women in rural areas, street children, people belonging to historically disadvantaged castes and people living in less developed areas. The vulnerability of these sections of society has increased with globalization and this section is prone to become even more marginalized - economically and socially. Successive governments have committed themselves to addressing these divides, but effective implementation of various economic development programmes aimed at individuals belonging to these sections of society has proved an elusive goal. During the 1980s and early 1990s, initial attempts towards e-Governance were made with a focus on networking government departments and developing in-house government applications in the areas of defence, economic monitoring, planning and the deployment of IT to manage data-intensive functions related to elections, census, tax administration etc.80 These applications focused on automation of internal government functions rather than on improving service delivery to citizens. Over the past decade or so, there have been islands of e-Governance......

Words: 15593 - Pages: 63

Rural Retail

...rural retail — Presentation Transcript * 1. • RURAL RETAILING 1 * 2. RURAL RETAILING By R.SATHVEENA - 72060 RURAL RETAILING 2 * 3. INTRODUCTION • The world’ s econom ce ic ntre is s hifting away from the e tablis d, we s he althy econom s of Europe J apan, and North ie , Am ricaandtow e ardstheAs iaPacific • India is one of the fas s -g te t rowing larg e econom s in the w ie orld. Ove the las 15 r t years India has chang d m e uch fas r te thanm any predicte . d RURAL RETAILING 3 * 4. • Overall, competition and structural changes within the economy have raised the bar in terms of what consumers have come to expect. • Retailing is the largest private sector industry . Retail is the sale of merchandise in small quantities to the ultimate consumer. RURAL RETAILING 4 * 5. The Indian Consumer Is Rapidly Transforming Outlook– From Traditional to Modernized Traditional RURAL RETAILING 5 * 6. • From Functional to Lifestyle RURAL RETAILING 6 * 7. DEFINITION • Retailing can be defined as the set of activities that markets products or services to final consumers for their own personal or house hold use. This is done by organizing the availability of goods and then supplying them to consumer on a relatively small scale. RURAL RETAILING 7 * 8. • The mix of variables including price, location, communications, merchandise, physical attributes, services and personnel form the retail mix and these components form the over all strategic marketing components of......

Words: 1305 - Pages: 6

Itc in Rural India

...ITC In Rural India: Case Study By Group X2 Indian context- * 88 % of rural population lived on less than $2/day * NGO’s provided assistance to the poor & voiceless * Foreign investment was discouraged * Great effort was devoted to improve agriculture * Organized sector labour was privileged compared to the poorest people * Government announced rural jobs program to lift 60 million people out of poverty * The IT sector grew rapidly as foreign companies aggressively outsourced services to India * Indian companies rarely competed abroad because of government restrictions * To increase rural presence, HUL started “Project Shakti” which was very successful * ITC launched “e-choupal” to enter into agri-business division & interact directly with the farmers * Retail sales in India was around $250 billion in 2006, which was estimated to rise by 15-18 % by 2016 * Despite widespread poverty, the poor provided significant markets for products like tea, oil, bulb, footwear, bicycles & radios * FMCG accounted for 80% of all Indian consumer spending Opportunities and challenges presented by the India’s rural market Opportunities:- 1. Majority of the Indian population is from rural areas. So in rural market the consumer base is very large. 2. In the category of consumable and durable products, there are lot of products whose rural share is more than that of urban share. This provides a great opportunity for the companies to focus on...

Words: 1243 - Pages: 5

Itc in Rural India

...CASE ANALYSIS: ITC IN RURAL INDIA * GROUP K2 INDIAN CONTEXT: India is a secular state, majority being Hindus. A large chunk of the Indian population still continues to live in the rural areas, their major occupation being agriculture. After independence, Indian economic strategy favoured production of capital goods which lead to development of industrial base. Private sector had to obtain manufacturing licenses for other industries With changing times and conditions, various economic reforms were introduced. Tracing back to 1973, Government asked all the multinationals to dilute foreign equity to 40% except under special circumstances. Many multinationals left the country, yet a few others continued by using the benefits available. The advantages with respect to the demographics were low cost labour, abundance of technically trained staff. By eighties, India had a good industrial environment with respect to the standards of the developing countries. The government control and restrictions was still very high. With the use of new seeds, fertilizers, pesticide and irrigation methods, India became self sufficient in food. India had a very strong Informal or Unorganized sector mainly cottage industries as they were exempted from many restrictions as compared to large or organized firms. Organized sector Labour unions were very strong in India and were politically active. By 1990, GDP was 3.5%, which was largely limited because of the stringent policies of the......

Words: 1884 - Pages: 8

Freshtorge | Hài Hước | Egyptian Pound