rular marketing

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Project ReportOn

EMERGING TREND IN MORDEN RETAIL FORMAT

WITH SPECIAL REFERENCE TO HUL (SHAKTI), ITC

(E-CHAUPAL) & GODREJ (ADHAAR)

SUBMITTED TO- SUBMITTED BY-

DR. R. K. JAIN RAVI SONI


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KSHIPRA JOSHI

ABSTRACT

The field of Rural marketing has taken a giant leap at the threshold of twentieth century.

Rural marketing have become an booming sector in all over the globe. The proverb

Need is the mother of invention is proving equally correct in case of Rural marketing.

Rural marketing have already had a considerable impact on many aspects of our society.

This Project on

EMERGING TREND IN MORDEN RETAIL FORMAT WITH SPECIAL

REFERENCE TO HUL (SHAKTI), ITC (E-CHAUPAL) & GODREJ (ADHAAR)

Deals with the automation of various activities done in Rural marketing like how the

Rural marketing spread hisbusiness and what is the Market strategy and what is supply

chain Management applied by HUL (SHAKTI) & ITC (e-chupal) GODREJ (Aadhar) in

Rural marketing.


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ACKNO WLEDGEMENT

W e a m h ea rt y g ra te fu l t o D r. R .K . j ai n. H e h as a lw ay s b ee n a n

invaluable source of inspi rat ion.

I t gives me immense pleasure in submit t ing this project on EMERGING

TREND IN MORDEN RETAIL FORMAT WITH SPECIAL REFERENCE TO

HUL (SHAKTI), ITC (E-CHAUPAL) & GODREJ (ADHAAR)

We have developed th i s pro jec t in par t i a l fu l f i l lment of M.B.A. f rom

MEDICAPS INSTITUTE OF TECHNOLOGY AND MANAGEMENT

We would l ike to express my s incere thanks to my Projec t Guide Dr .

R .K . J a i n f o r he r cons t an t gu i dance and va l uab l e s uppor t du r i ng t he

project work and also for her Encouragement and excel lent guidance in

the successful complet ion of the project work.

And of course nothing could have come t rue wi thout the suppor t of my

family , and f r iends constant encouragement and useful t ips through out

my project . I wi l l a lways be grateful to al l of them.


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DECLARATIONDECLARATION

We here by declare that this Project Report titled EMERGING TREND IN

MORDEN RETAIL FORMAT WITH SPECIAL REFERENCE TO HUL

(SHAKTI), ITC (E-CHAUPAL) & GODREJ (ADHAAR) is the result of my own

effort of my study which I did as a part of the curriculum, for the fulfillment of M.BA. It

has not been duplicated from any other earlier works and all information provided in this

report is genuine.


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CONTENTS

Chapter 1. Introduction & Background

1.1 Objective of the Project

1.2 Company Profile

Chapter 2. Research Methodology & Design

Chapter 3. Research Findings

Chapter 4. Conclusion

Chapter 5. Limitations

Chapter 6. Suggestion

References

Books

Web sources


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Introduction

From the strict marketing point of view, the market structure in India is dichotomous

having rural and urban markets. But many do not concur with this view as they contend

that consumer everywhere is a consumer and hence their needs, aspirations, beliefs and

attitudes will also be the same. The fact, however, remains that there are certain unique

characteristic features which call for separate marketing strategies to be distinctively

developed to suit the rural and urban market behaviors.

Conditions existing in urban markets at present can also be analyzed in this context. First,

the urban markets have almost reached a saturation level that further tapping them with a

high profit margin has become difficult. Secondly, competition is becoming tough in

urban markets compelling many firms to incur heavy costs in promotional expenditure.

Thirdly, the awareness level of urban consumers is high and hence product features have

to be changed often. Needless to say this process needs a huge investment which will

have a negative impact on profitability. Thus, except perhaps for easy reach the urban

markets have become as oasis.

Significance of Rural Markets

The rural markets are estimated to be growing fastly compared to the urban markets. The

potentiality of rural markets is said to be like a 'woken up sleeping giant'. These facts are

substantiated in a study of market growth conducted by various researches. In recent

years, rural markets have acquired significance in countries like China and India, as the

overall growth of the economy has resulted into substantial increase in the purchasing

power of the rural communities. On account of the green revolution in India, the rural

areas are consuming a large quantity of industrial and urban manufactured products. In

this context, a special marketing strategy, namely, rural marketing has taken shape.

Sometimes, rural marketing is confused with agricultural marketing the later denotes

marketing of produce of the rural areas to the urban consumers or industrial consumers,


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whereas rural marketing involves delivering manufactured or processed inputs or services

to rural producers or consumers.

A number of factors have been recognized as responsible for the rural market boom to

come into existence:

1. Increase in population and hence increase in demand.

2. A marked increase in the rural income due to agrarian prosperity.

3. Standard of living is also increasing in rural areas.

4. Large inflow of investment for rural development programmes from government and

other sources.

5. Increased contact of rural people with their urban counterparts due to development of

transport and wide communication network.

6. Increase in literacy and educational level and resultant inclination to sophisticated lives

by the rural folks.

7. Inflow of foreign remittances and foreign made goods into rural areas.

8. Change in the land tenure systems causing a structural change in the ownership

patterns and consequent changes in the buying behaviour.

9. Rural markets are laggards in picking up new products. This will help the companies to

phase their marketing efforts. This will also help to sell inventories of products out dated

in urban markets.

Rural market has following arrived and the following facts substantiate this.

What makes Rural Markets Attractive?

* 742 million people

* Estimated annual size of the rural market

* FMCG Rs. 65,000 Crores

* Durables Rs. 5,000 Crores

*Agri-inputs (incl. tractors) Rs. 45,000 Crores

* 2 / 4 wheelers Rs. 8,000 Crores

* In 2001-02, LIC sold 55 % of its policies in rural India.

* Of two million BSNL mobile connections, 50% in small towns/villages.

* Of the six lakh villages, 5.22 lakh have a Village Public Telephone (VPT)


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* 41 million Kisan Credit Cards issued (against 22 million credit-plus-debit cards in

urban) with cumulative credit of Rs. 977 billion resulting in tremendous liquidity.

* Of 20 million Rediffmail signups, 60 % are from small towns. 50% transactions from

these towns on Rediff online shopping site

* 42 million rural HHs availing banking services in comparison to 27 million urban HHs.

* Investment in formal savings instruments: 6.6 million HHs in rural and 6.7 million in

urban

Opportunities: In Rural Marketing

Infrastructure is improving rapidly.

* In 50 years only 40% villages connected by road, in next 10 years another 30%.

* More than 90 % villages electrified, though only 44% rural homes have electricconnections.

* Rural telephone density has gone up by 300% in the last 10 years; every 1000+ pop is

connected by STD.

* Social Indicators have improved a lot between 1981 and 2001

* Number of "pucca" houses doubled from 22% to 41% and "kuccha" houses halved

(41% to 23%)

* Percentage of BPL families declined from 46% to 27%

* Rural Literacy level improved from 36% to 59%

* Low penetration rates in rural so there are many marketing opportunities.

Durables Urban Rural Total

* CTV 30.4 4.8 12.1

* Refrigerator 33.5 3.5 12.0

FMCGs Urban Rural Total

* Shampoo 66.3 35.2 44.2

* Toothpaste 82.2 44.9 55.6


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* Marketers can make effective use of the large available infrastructure

* Post offices - 1, 38,000

* Haats (periodic markets) - 42,000

* Melas (exhibitions) - 25,000

* Mandis (agri markets) - 7,000

* Public distribution shops - 3, 80,000

* Bank branches - 32,000

* Proliferation of large format rural retail stores which have been successful also.

* DSCL Haryali stores

* M & M Shubh Labh stores

* TATA/Rallis Kisan Kendras

* Escorts rural stores

* Warnabazaar, Maharashtra (annual sale Rs. 40 crores)

EMERGING TRENDS IN MARKETS

ONLINE RURAL MARKET (INTERNET, NICNET):

Rural people can use the two-way communication through on line service for crop

information, purchases of Agri-inputs, consumer durable and sale of rural produce online

at reasonable price. Farm information online marketing easily accessible in rural areas

because of spread of telecommunication facilities all over India. Agricultural information

can get through the Internet if each village has small information office.

INFORMATION THROUGH LOCAL AGRICULTURE

INPUT DEALERS

Most of the dealers have direct touch with the local farmers; these farmers need

awareness about pests, decease, fertilizers, seeds, technology and recent developments.

For this information, farmers mostly depend on local dealers. For development of rural

farmers the government may consider effective channel and keep information at dealers,


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MARKET DRIVEN EXTENSION

Agricultural extension is continuously going through renewal process where the focus

includes a whole range of dimensions varying from institutional arrangements,

privatization, decentralization, partnership, efficiency and participation. The most

important change that influences the extension system is market forces. There is a need

for the present extension system to think of the market driven approach, which would

cater the demands of farmers.

PROCESSING INDUSTRY

India is the second largest producer of fruits and vegetables in the world with an annual

production of more than 110 million tones of fruit and vegetable only 1.3 percent of the

output is processed by the organized sector commercially, the reason higher consumption

in fresh form. However, as the packaging, transportation and processing capacities

increase, the market for processed fruits and vegetables is projected to grow at the rate of

about 20 % per annum. 100 % export oriented units (EOU) and Joint venture units

required improving the processing industry.

APANAMANDI / KISAN MANDI / RYTHUBAZAAR

There is a need to promote direct agricultural marketing model through retail outlets of

farmer's co-operatives in urban areas. The direct link between producers and consumers

would work in two ways: one, by enabling farmers to take advantage of the high price

and secondly, by putting downward pressure on the retail prices.


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OBJECTIVE

"Any task without sound objectives is like Tree without roots". Similarly in case of any

research study undertaken, initially the objectives of the same are determined and

accordingly the further steps are taken on. A research study may have many objectives

but all these objectives revolve around one major objective which is the focus of the

study. In this study, the focus is on the emergence of Rural markets as the most

happening market on which every marketer has an eye. And so this study will be based

on studying the emergence of rural market in various contexts.

The following are the objectives of this research study :-

To study the emergence of Rural markets in the context of India.

To study the present scenario of rural marketing in India.

To measure the success of rural marketing campaign of few brands in Terms of

consumer appreciation.

To understand the working process of HUL(sakti), ITC(e-choupal), GODREJ

(aadhar).


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HUL (SHAKTI)

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer GoodsCompany, touching the lives of two out of three Indians with over 20 distinct categoriesin Home & Personal Care Products and Foods & Beverages. The companys Turnover isRs. 20, 239 crores (for the 15 month period January 1, 2008 to March 31, 2009).

HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast movingconsumer goods with strong local roots in more than 100 countries across the globe withannual sales of 40.5 billion in 2008. Unilever has about 52% shareholding in HUL.

Hindustan Unilever was recently rated among the top four companies globally in the listof Global Top Companies for Leaders by a study sponsored by Hewitt Associates, in partnership with Fortune magazine and the RBL Group. The company was rankednumber one in the Asia-Pacific region and in India.

The mission that inspires HUL's more than 15,000 employees, including over 1,400managers, is to add vitality to life". The company meets everyday needs for nutrition,hygiene, and personal care, with brands that help people feel good, look good and getmore out of life. It is a mission HUL shares with its parent company, Unilever, whichholds about 52 % of the equity.

Heritage

HULs heritage dates back to 1888, when the first Unilever product, Sunlight, wasintroduced in India. Local manufacturing began in the 1930s with the establishment ofsubsidiary companies. They merged in 1956 to form Hindustan Lever Limited (Thecompany was renamed Hindustan Unilever Limited on June 25, 2007). The companycreated history when it offered equity to Indian shareholders, becoming the first foreignsubsidiary company to do so. Today, the company has more than three lakh residentshareholders.

HULs brands -- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Sunsilk,Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna, Kwality-Walls - are household names across the country and span many categories - soaps,detergents, personal products, tea, coffee, branded staples, ice cream and culinaryproducts. They are manufactured in over 35 factories, several of them in backward areasof the country. The operations involve over 2,000 suppliers and associates.HUL'sdistribution network covers 6.3 million retail outlets including direct reach to over 1million.


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HUL has traditionally been a company, which incorporates latest technology in all itsoperations. The Hindustan Lever Research Centre (now Hindustan Unilever ResearchCentre) was set up in 1958.

Doing Well by Doing Good

HUL believes that an organisations worth is also in the service it renders to thecommunity. HUL focuses on hygiene, nutrition, enhancement of livelihoods, reduction ofgreenhouse gases and water footprint.It is also involved in education and rehabilitation ofspecial or underprivileged children, care for the destitute and HIV-positive, and ruraldevelopment. HUL has also responded in case of national calamities / adversities andcontributes through various welfare measures, most recent being the relief andrehabilitation of the people affected by the Tsunami disaster, in India.

Project Shakti was launched in the year 2001 in the Nalgonda district situated in AndhraPradesh.HULs Project Shakti is a rural initiative that targets small villages populated by

less than 5000 individuals. Through Shakti, HUL is creating micro-enterpriseopportunities for rural women, thereby improving their livelihood and the standard ofliving in rural communities. Shakti also provides health and hygiene education throughthe Shakti Vani programme.The program now covers 15 states in India and has over45,000 women entrepreneurs in its fold, reaching out to 100,000 villages and directlyreaching to over three million rural consumers.

HUL also runs a rural health programme, Lifeboy Swasthya Chetana. The programmeendeavours to induce adoption of hygienic practices among rural Indians and aims tobring down the incidence of diarrhoea. It has already touched 120 million people inapproximately 50, 676 villages across India.

If Hindustan Unilever straddles the Indian corporate world, it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life.

The recruitment of a Shakti Entrepreneur or Shakti Amma (SA) begins with theexecutives of HUL identifying the uncovered village. The representative of thecompany meets the panchayat and the village head and identify the woman who theybelieve will be suitable as a SA. After training she is asked to put up Rs 20,000 asinvestment which is used to buy products for selling. The products are then sold door-to-door or through petty shops at home. On an average a Shakti Amma makes a 10%margin on the products she sells.

It is the association between the company and the self help groups and financialinstitutions.

The Shakti Entrepreneur programme creates income- generating capabilities forunderprivileged rural women by providing them with a sustainable micro-enterpriseopportunity.


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The Shakti Vani programme improves rural quality of life by spreading awareness ofbest practices in health and hygiene.

The Shakti community portal tries to empower rural communities by creating access to

relevant information.

OBJECTIVE OF SHAKTI PROGRAM

The Shakti entrepreneur program creates livelihood opportunities forunderprivileged rural women.

The Shakti Vani program works to improve the quality of life in rural India, byspreading awareness of best practices in health and hygiene.

They are also studying the consumption habits of the rural people.

HOW IT WORKS

Villages with a population of about 20003000 are selected Personnel from HUL approach SHGs Selection of the Shakti Amma HUL vouches for Shakti Ammas with banks for credit one Shakti entrepreneur

The Shakti dealer places initial orders worth Rs. 15,000/(principal customer ofHUL)

Finance : Self+SHG+micro credit Training by the Rural sales promoter. The Shakti dealer organizes, a Shakti Day in the village (display of products &

free gifts ) Core Brands: Lifeboy, Wheel, Pepsodent, Annapurna salt, Clinic Plus, Lux,Ponds, Nihar and 3 Roses tea.


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VISION 2010

100,000 Entrepreneurs 500,000 villages 600 million Consumers

Shakti shall reach every home in every village, create sustainable livelihoodopportunities, and enhance the quality of life in rural India.

Future plans

Project Shakti plans to extend to the states of West Bengal, Punjab and Rajasthan. Partnership with other non-competitor companies to sell their products through

the Shakti network.

Nippo, TVS Motor for mopeds, insurance companies for LIC policies.


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ITC E-chupal

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of

India Limited. As the Company's ownership progressively Indianised, the name of the

Company was changed from Imperial Tobacco Company of India Limited to India

Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of

the Company's multi-business portfolio encompassing a wide range of businesses -

Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards &

Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and

Personal Care - the full stops in the Company's name were removed effective September

18, 2001. The Company now stands rechristened 'ITC Limited'.

ITC is one of India's foremost private sector companies with a market capitalisation of

nearly US $ 19 billion and a turnover of over US $ 5 billion.* ITC is rated among the

World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies

by Forbes magazine, among India's Most Respected Companies by BusinessWorld andamong India's Most Valuable Companies by Business Today. ITC ranks among India's

`10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and

published by the Economic Times. ITC also ranks among Asia's 50 best performing

companies compiled by Business Week.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,

Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,

Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.

While ITC is an outstanding market leader in its traditional businesses of Cigarettes,

Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even

in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal

Care and Stationery.
http://www.itcportal.com/the_itc_profile/ads/ad.htmhttp://www.itcportal.com/the_itc_profile/ads/ad.htm


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Rural market E CHUPAL

Before ITC introduced us to e-Choupal, we were restricted to selling our produce in the

local mandi. We had to go through middlemen and prices were low. ITC trained me tomanage the Internet kiosk and I became the e-Choupal Sanchalak in my village. Todaywe are a community of e-farmers with access to daily prices of a variety of crops in Indiaand abroad this helps us to get the best price. We can also find out about many otherimportant things weather forecasts, the latest farming techniques, crop insurance, etc. e-Choupal has not only changed the quality of our lives, but our entire outlook.

e-Choupal Now

States covered 10

Villages covered 40,000

No. of e-Choupals 6,500

Farmers e-empowered 4 million


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Today 4 million farmers use e-Choupal to advantage bargaining as virtual buyers co-

operatives, adopting best practices, matching up to food safety norms. Being linked to

futures markets is helping small farmers to better manage risk. e-Choupal has been

specially cited in the Government of Indias Economic Survey of 2006-07, for its

transformational impact on rural lives.The network of 6,500 e-Choupal centres spread

across 40,000 villages has emerged as the gateway of an expanding spectrum of

commodities leaving farms wheat, rice, pulses, soya, maize, spices, coffee, aqua-

products. The reverse flow carries FMCG, durables, automotives and banking services

back to villages.

By providing them with farming know-how and services, timely and relevant weather

information, transparent price discovery and access to wider markets, e-Choupal enabledeconomic capacity to proliferate at the base of the rural economy.

ITC has continued to build new infrastructure by supplementing the farmgate presence of

e-Choupal with new physical infrastructure rural marketing hubs called Choupal

Saagars, positioned within tractorable distance of 30 e-Choupal centres and their user

communities.

Choupal Saagars offer a combination of services to rural India.Made-to-design agri-business hubs, they function as:

1. ITC agri-sourcing centres providing farmers a transparent best price sales window

2. shopping centres bringing a range of products comparable to urban levels of

choice.

ITCs strategic intent is to develop e-Choupal as a significant two-way multidimensional

delivery channel, efficiently carrying goods and services out of and into rural India. By

progressively linking the digital infrastructure to a physical network of rural business

hubs and agro-extension services, ITC is transforming the way farmers do business, and

the way rural markets work


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Effects of e -Choupal

ITC Limited has now established computers and Internet access in rural areas across

several agricultural regions of the country, where the farmers can directly negotiate the

sale of their produce with ITC Limited. The PCs and Internet access at these centresenable the farmers to obtain information on mandi prices, good farming practices and

place orders for agricultural inputs like seeds and fertilizers. This helps farmers in

improving the quality of produce, and also helps in realizing a better price. Each ITC

Limited kiosk having an access to Internet is run by a sanchalak a trained farmer. The

computer housed in the sanchalaks house is linked to the Internet via phone lines or by a

VSAT connection and serves an average of 600 farmers in the surrounding ten villages

within about a 5 km radius. The sanchalak bears some operating cost but in return earns

service fee for the e-transactions done through his eChoupal. The warehouse hub is

managed by the same traditional middle-men, now called samyojaks, but with no

exploitative power due to the reorganized role. Indeed these middlemen make up for the

lack of infrastructure and fulfill critical jobs like cash disbursement, quantity aggregation

and transportation.

Because to the eChoupal services, farmers have seen a rise in their income levels because

of rise in yields, improvement in quality of output and a fall in transaction cost. Evensmall farmers have gained from the initiative. Customized and relevant knowledge is

offered to the farmers despite heterogeneous cultures, climates and scales of production.

Farmers can get real-time information despite their physical distance from the "mandis"..

The model is quite different from the other models, as the farmers do not pay for the

information and knowledge they get from eChoupals. The principle of the eChoupals is to

inform, empower and compete. At the same time ITC Limited also has extracted value in

four steps to make the model sustainable and scalable:

1. Elimination of non-value added activities.

2. Differentiated product through identity preserved supply chains.

3. Value added products traceable to farm practices.

4. E-market place for spot transactions and support services to futures exchange.
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One of the factors leading to eChoupal's success is ITC's managerial expertise in

executing complex projects and managing costs. ITC Limited adopted a flexible project

management approach called "roll out, fix it, and scale up" to deal with uncertainties in a

pioneering model.

FUTURE PLAN

There are 6,500 eChoupals today. ITC Limited plans to scale up to 20,000 eChoupals by

2012 covering 100,000 villages in 15 states, servicing 15 million farmers.

MISSION

ITCs mission is to build community based capacity to remove these adverse

conditions and create the basis for renewed agrarian prosperity:

help farmers to achieve higher farm productivity,

enable communities to develop and manage water, soil and forest resources for

long term ecological security,

empower rural men and women by creating new non-farm livelihoods,

facilitate development of infrastructure for primary education, health

ITC enables farmers to implement solutions that are sustainable because they are

1. mutually reinforcing,

2. based on knowledge transfer and co-operative application of technology,

3. Dependent on mobilisation and optimisation of local resources.

The delivery model mobilises a four-way partnership between village communities,

specialist NGOs, the Government and ITC, bringing to every initiative the best relevant

management and technical expertise.


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GODREJ AADHAR

Godrej Group is one of the largest conglomerates based in Mumbai, India, involved in

various industries that include appliances, precision equipment, machine tools, furniture,

healthcare, interior solutions, office equipment, food-processing, security, materials

handling and industrial storage solutions, construction and information technology. Its

products include security Systems and Safes, Typewriters and Word processors, Rocket

Launchers, Refrigerators and Furniture, Outsourcing Services, Machine Tools and

Process Equipment, Cosmetics and Detergents, Engineering Workstations, Medical

Diagnostics and Aerospace Equipment, Edible Oils and Chemical, Mosquito Repellents,

Car perfumes, Chicken and Agri-products, Material Handling Equipments Like

FORKLIFT Trucks, Stackers, Tyre handlers, Sweeping machines, access equipments etc.

The Group is headed by Mr. Adi Godrej & Mr. Jamshyd Godrej.

Traditionally, Vikhroli, a suburb to the Northeast of Mumbai has been Godrej's

manufacturing base, but increasingly the group has moved significant production

facilities away from Mumbai. The Godrej group also owns vast land in Vikhroli,occupying 3500 acres (14 sq km) of land on both sides of the Vikhroli section of the LBS

marg. That makes the Godrej group the biggest private land owner in Mumbai by far.

Such vast land can, in theory, be used to create at least 1500 acres of residential floor

space, which, at very modest rates (Rs.10000/sq ft), can be sold for USD 16 billion .

Thus, the Godrej group is sitting on an invisible cashpile that is envy of other Indian

conglomerates.

Aadhar Retailing

agri-services to direct sourcing from farmers, Aadhar Retailing is now getting into the

business of output management with farmers across the country. With the Future Group

owing a 70 per cent stake in Godrej Aadhar, the newly formed company, Aadhar, would

now serve as a procurement hub for the Future Groups retail formats such as Food
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Bazaar and KBs Fair Price and even become supplier to other retailers across the

country.

Mr Arvind Chaudhary, Chief Executive Officer, Aadhar Retailing, toldBusiness Line,

We have now started buying the farmers produce and getting into the business of output

management. With the intention of selling the farmers produce to other retailers, we

would be adding one crop after another and help them in managing their produce, stated

Mr Chaudhary.

Reaching out to 50,000 farmers every month, the company has already employed 300

people to directly access the produce of farmers across 2,000-odd villages in the country.

The States where farmers are being approached include Punjab, Haryana, Maharashtra

and Gujarat.

With the Future Groups cash-and-carry format on the backburner, sourcing from farmers

and helping them sell their produce to other retailers is being seen as an extension of the

same format by analysts.

FRESH INPUTS

Meanwhile, the existing 66 Godrej Aadhar outlets would also be stocking the Future

Groups private labels and financial products to extend its current portfolio. New brands

such as Koryo (for consumer durables) and food brands such as Tasty Treat and Fresh N

Pure would be making an appearance at the Aadhar outlets.

Besides, with the Future Group having forged strategic alliances with players such as

GlaxoSmithKline to develop the Gopika brand of ghee, its outlets would also see the

brand making an appearance at Aadhar outlets. Financial products, such as insurance-

based products of Future Generalli, would also get sold at the outlets.

Besides, there is also a possibility of the Future Card (the Future Groups loyalty cum

credit card) being introduced.


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GODREJ AGROVET

Godrej Agrovet (GAVL) is a diversified agribusiness company with interests in

animal feed, oil palm plantations, agrochemicals and poultry.It is headquartered at

Vikhroli, Mumbai India. The business was set up in 1971. GAVL today has 45

manufacturing facilities across India, a network of over 10,000 rural distributors, dealers

& agents and over 1900 employees committed to improving the lives of Indian farmers.

The company has a presence in 21 states.Under the guidance of Chairman, noted

industrialist Nadir Godrej and its Cheif Executive Officer Balram Singh Yadav , GAVL

today occupies the position of India's largest animal feed company, producing over

750,000 tons of nutritionally balanced feed for diary cattle, poultry & aquaculture every

year.

Its oil palm plantation business is the market leader in India, with over 35,000 hectares of

smallholder cultivation across Andhra Pradesh, Karnataka, TamilNadu, Orissa,

Goa, Gujarat & Mizoram. With the intend of radically improving farmer

economics, the agrochemicals business focuses on innovative and environmentally

sensitive products.It has dominant market share in plant growth promoters & soil

conditioners.

The Rs 900 crore Godrej Agrovet Ltd, a unit of the $1 billion Godrej Industries Ltd, will

open 1,000 'hub-and- spoke' centres in rural and semi-urban areas across the country in

the next five years. These centers will also provide technical services like farm

management, soil micro-nutrient analyses to farmers. The hub would cover about 10,000

sq ft and spoke 3,000 sq ft, each costing about Rs 75 lakh and Rs 30 lakh respectively.

These outlets will sell agro-products like seeds, pesticides, fertilisers and grocery,

apparel, footwear, home appliances, furniture and kitchen appliances. It will also house

banks, insurance offices, pharmacies, post offices and petrol pumps.

Godrej Agrovet posted a turnover of Rs 900 crore in 2005-06 and is expecting revenues

of Rs 3,500-4,000 crore from these stores in the next five years.


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At present, it has 24 Aadhaar centres in Maharashtra, Punjab, West Bengal, Orissa and

Tamil Nadu. It has earmarked Rs 750 crore to train technical and marketing staff.

BENEFIT OF MULTINATIONAL COMPANIES IN RURAL MARKET

RURAL INDIA with its traditional perceptions has grown up over the years, not

only in terms of income, but also in terms of thinking. The rural markets are growing at

about two time faster pace than urban markets, not surprisingly, rural India accounts for

60 per cent of the total national demand.

Gone are the days when rural consumer went to nearby city to buy branded products and

services. The rural consumer is growing and this is an opportunity to grab the marketshare for all the global players in the market -- whether it is into Fast Moving Consumer

Goods (FMCG) sector or retail sector (either insurance or banking or for that sake any

other sector).

The FMCG sector includes companies like Indian Tobacco Corporation (ITC), Godrej,

Hindustan Lever Limited (HLL), Gujarat Cooperative Milk Marketing Federation

(GCMMF-Amul) and Dabur India Limited. All these have shown a strong global

presence in the rural sector and it can be said that all the FMCG companies should target

the rural sector.

Some FMCGs products like toothpaste, hair oil and other like shampoos have done much

better in the rural areas than the urban and the semi urban areas. It has been a

phenomenon that the sales of many companies have gone up; Coca-Cola, Nestle and

Godrej too have also reported better sales in rural areas.

The retail sector has a huge potential for growth as a study shows that opportunities in

rural retail sector were estimated to be over $34 billion in the year 2007, which is

expected to touch $43 billion by the year 2010. It can be seen from the market that

companies like Reliance, Subhiksha are expanding in the rural market. ITC has launched

its first rural mall Chaupal Sagar, which offers products ranging from FMCG to

electronic appliance to automobiles. Indian Oil is planning to invest $ 189.10 in the rural

areas during the financial year 2009.


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RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. In it we studythe various steps that are generally adopted by a researcher in studying his research problemalong with logic behind them.

TYPE OF RESEARCH-

To Study on emerging trend in modern retail format. I have gone through various newspapers, magazines, websites and collected information and data. And my study based onexploratory research.

DATA COLLECTION :-

In data collection method we shall collect the secondary data from the following sources.News paperMagazine

Internet

PARAMETERS OF RESEARCH

Business processServiceSatisfaction

RESEARCH DESIGN :

The study is a cross sectional study because the data were collected from many sources. For

the purpose of present study a related sample of population was selected on the basis ofconvenience.RESEARCH INSTRUMENT:

This work was carried out through Secondary data based.

TOOLS TO BE USED:


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MS Excel

MS word

FINDINGS

There are very big opportunity in rural market thats why many big giants are move to

rural market .they made serious efforts to tap the potential ,initially, innovation were

confined to product or services offering, or to packaging (SKUs),price (point) and

communication strategy by brands.

Companies are concentrated on low cost product

5 Rs product are very famous in rural market

They use communication in local medium ( folk media ,haats,melas)

They make small size /quantity products for rural India

There are changes in rural people lifestyle.

Rural peoples are aware with urban market.

Lots of job opportunities are coming in rural market.

Growth of employment.

Rural people are aware with information technology with help of these

Companies.

Farmers are benefited with ITC E chupal & Godrej Aadhar & hul shakti .

Increase the productivity of rural India.


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CONCLUSION

Marketers make consistent attempt to innovate tools and strategy to overcome the

challenges they face in the business arena .business innovation are broadly classified

under two heads ,namely product/service innovation and process innovation .marketers

need to design creative solution to overcome challenges typical of the rural environment

such as physical distribution channel management and promotion and communication.

Corporate India and government bodies alike have made several efforts to bridge the gap

between rural and urban India .the ICT-drive value chain and the organized retail format

have been found to be the best innovation for rural India.

ITC e-Choupal, Godrej Aadhar & HUL Shakti, an innovative strategy which is

elaborative and extensive in rural markets so far. Critical factors in the apparent success

of the venture are they provide extensive knowledge of agriculture, the & has made to

retain many aspects of the existing production system, including retaining the integral

importance of local partners, the companies commitment to transparency, and the respect

and fairness with which both farmers and local partners are treated.


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The concepts, which are becoming more important in every market, include color,

product attractiveness visibility, and display quality. In addition, availability (meeting

local demand by increasing production locally), acceptability (building brand equity), and

affordability (pricing higher than local brands, but adapting to local conditions) are the

key factors.

LIMITATIONS

Problems related to rural marketing

Barter system.

Underdeveloped people and underdeveloped markets

Lack of proper physical communication facilities.

Many language and Dialects.


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Dispersed population and trade.

Poor road connectivity.

Poor availability of dealers.

Low destiny of shops per village and high variation in their concentration.

Poor storage system, leading to inadequate stocking.

Inadequate Media coverage for rural communication.

SUGGESTION

PRICING

Pricing is the major element for rural marketing so cheaper price product is affordable for

rural people.

IMPROVEMENT IN TECHNOLOGY

Technology is the major part of the rural area without nothing is possible through media

and electrification we improve the lifestyle of rural people.

MAINTAIN THE QUALITY STANDARD

Quality standard is also very important part of rural market because some people are

quality oriented customer.

ESTABLISHMENT OF DISTRIBUTION CHANNELS

Rural market certainly offer a big attraction to marketers, it would be nave to think that

any company can enter the market without facing any problem and walk away with

sizable share .but there are large number of small marketers .

Make a good distribution channel.

Underdeveloped people and underdeveloped markets

Lack of proper physical communication facilities so trained people.

Make an opinion leader for every village.


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Increase the communication strategy in villages

Many language and Dialects

Make the idol distribution channel in the villages .

Improve the electrification in the villages.

Provide the training program for rural people.

Motivate to increase investment capacity of retailers.

BIBLIOGRAPHY

BOOKS:

Marketing Research Paneerselvam

Research Methodology C.R Kothari

Principles of Marketing Philip Kotler

Rural Marketing -Pradeep kashyap

WEB RESOURCES:

www.godrej.com

www.google.com

www.hul.co.in

www.itcportal.com

MAGAZINE:

Outlook Express

Business today


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Money Outlook

NEWS PAPER:

Business standardTimes of India

Economic times

rular marketing

Documents