ITC e- CHOUPALITC e- CHOUPAL

Presented By:Presented By:Abhijit Yewale (01)Neha Daga (24)Preeti Chandak (31)Swati Singh (44)Tanvi Thakre (45)V Sreevidya (49)Yogesh Dad (52)

AGRI INDUSTRY OF INDIAAGRI INDUSTRY OF INDIA

• Comprises of the Post-Harvest activities of processing and preserving agricultural products for intermediate or final consumption.

• India is the second largest producer of food in the world.

• Basically exports- Food Grains, Dairy Products, Frozen Food, Fish, Meat, Poultry, Sea Fishing, Aqua Culture, Milk And Milk Products.

WHAT IS ITC e- CHOUPAL?WHAT IS ITC e- CHOUPAL?

• Developed by ITC agri-business division

• Brainchild of S Sivakumar.

• Promoted by YC Deveshwar, chairman ITC

• Launched in 2000

• Benefits 4 million farmers in 40000 villages.

• Farm linkages in 14 states

• Rural India’s largest Internet- based intervention

CHARACTERSTICS OF ITC e- CHOUPAL

CHARACTERSTICS OF ITC e- CHOUPAL

• Customer centric

• Used for many commodities and multiple transactions

• Uses local talent and local people and develops local leaders

• Extended to local as well as global procures

• Nurtures local entrepreneurs

• Unique CRM programme in commodity exports

SYSTEM BEFORE ITC e- CHOUPALSYSTEM BEFORE ITC e- CHOUPAL

ITC e- CHOUPAL SYSTEM

ITC e- CHOUPAL SYSTEM

FARMERS

SANCHALAK

PC and INTERNET

CHOUPAL SAGAR

SAMYOJAK

ITC

GENERAL PRODUCTS OF ITC e- CHOUPAL

GENERAL PRODUCTS OF ITC e- CHOUPAL

• 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 )

MARKETINGMARKETING

Business to Business

Business to Customer

MARKET SEGMENTATIONMARKET SEGMENTATION

Geographic

National and InternationalDemographic

Occupation

Psychographic

Lifestyle (Interests)Behavioral

Usage Rate, Buyer Readiness Stage

FOR BUSINESS TO CUSTOMERFOR BUSINESS TO CUSTOMER

Geographic

Rural India Demographic

Income

Psychographic

Lifestyle

Behavioral

Benefits and Loyalty

CASE STUDYCASE STUDY

The case discusses basically about the two different trading system in Agro Industry of India. One was before ITC e- Choupal i.e. Mandi System and the other system is when ITC e- Choupal introduced Information Technology in Trading directly with the farmers thereby minimizing the monopoly of Traders in the system.

In a traditional Mandi system, the trading is conducted by commission agents who didn’t serve the farmers well and exploited their situation as well as use to extract extra commission from the company by manipulating the prices of the commodities offered, thus making the system inefficient.

ITC has worked in Indian agriculture for decades hence took a different approach by looking at the successes and the loopholes of the current system and identifying how they could re-engineer the existing one by introducing ITC e- Choupal, that is an IT based solution which serves as both a social gathering place for exchange of information and an e- commerce HUB. It also catalyzed rural transformation i.e. helping to improve rural isolation, create more transparency for farmers and improve their productivity and incomes.

SWOT ANALYSISSWOT ANALYSIS

• Delivery of real –time

information • Immediate cash payment• Easy access to any

e- Choupal

• Sanchalak is educated and trained in computer operations.

• Low Transactional costs• Transparent and Fast Process• Use of Technology• Provides additional information to Farmers

• Power unavailability in Rural India

• Poor Telecommunication Infrastructure

• Lack of proper roads, limiting vehicle access

• Competitors attempt to

divert produce from Farmers

• Better supply chain for ITC s food

and agri-business

• Access to the underserved rural markets

• New ITES business opportunities

• Shareholding value creation through servicing society

• Bulk storage and handling hubs

• Demand for Unwarranted additional payments by the Sanchalaks

• Threats to execution management due to speed of expansion

• The strained

Samyojak –ITC relationship.

7 P’s OF SERVICES7 P’s OF SERVICES

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 )

Place v/s Convenience• e-Choupal within 5km radius serving 10villages• A processing center within 25 - 30 km radius

7 P’s CONTD…7 P’s CONTD…

People v/s Caring• Sanchalak• Samyojak • Farmers• ITC staff

Price v/s Cost• Transportation Cost• Set – up Cost• Mandi Cost v/s e – Choupal cost.• Insurance expenses

7 P’s CONTD……7 P’s CONTD……

PRICING INBOUND LOGISTICS

INSPECTION & GRADING

WEIGHING & PAYMENT

HUB LOGISTICS

Process v/s Co-ordination

7 P’s CONTD……7 P’s CONTD……

Physical Evidence v/s Confirmation• Choupal Sagar

Promotion v/s Communication

• Carries out CSR activities as part of promotions• Provided livelihood to 5million people (work, education)• Social and Farm Forestry• Water shade development• Agriculture development• Choupal Pradarshan Khet

The following career opportunities have been identified in the Agri Business Sector:

• Agronomy Sales• Agronomist• Lab Manager• Soil Testing Sales• Grain Operations, Marketer & Superintendent• Landscape Management/Maintenance• Process Engineer

CAREER OPPORTUNITIES CAREER OPPORTUNITIES

QUESTIONSQUESTIONS

1. The competitors try to attract the farmers by providing them higher prices for their produce than e- Choupal. How to overcome this?

2. What could be done to improve the Samyojak- ITC e- Choupal relationship?

3. What action should be taken against the Sanchalaks, who unionize and extract unwarranted “Rents” from ITC e- Choupal?

4. How to generate a sense of trust in the farmers’ mind with respect to the laboratory tests conducted?

THANK YOUTHANK YOU