Mandar Research Paper

8/8/2019 Mandar Research Paper

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BY

MANDAR .U. NAIK

0801210473

Guided by

Ms. Smita Kulkarni {Faculty Guide}

INC AKOLA

ORGANIZATION:

ITC ABD Limited.


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INTRODUCTION

A study on rural retiling and consumer behavior towards it with special reference to ITC

Choupal Sagar in Washim District. This study shows important fact & figure. This report will

help to ITC Choupal Sagar to understand the behavior of the consumer towards it. This report

also helps to understand the actual meaning of the rural retailing and their strategies adopted by

it.

OBJECTIVES

To study the Rural Retailing.

To study the consumer behavior towards rural retailing.

To study the Rural Retailing in Choupal Sagar.

To study the different strategies adopted by Choupal Sagar.

Importance of the Study

To find what is mean Choupal Sagar.

To known what Choupal Sagar plays a role on rural people.

To known whether it is useful for rural people or not.


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Methodology

Method is the way of doing something. Methodology means studying something from the

particular subject.

Sample Size: 100.Sample Method: Random Sampling.

PRIMARY DATA:

It is collected from the 100 respondents through questionnaire method

new in Washim.

SECONDARY DATA:

It is collected from the following method

Internet

Journals

Articles

Books.


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ITC Choupal Sagar

ITC has continued to build new infrastructure by supplementing the farm gate presence of Choupal with new physical infrastructure rural retailing hubs called Choupal Sagars, positionedwithin tractor able distance of 30 Choupal-sagar centers and their user communities. TheChoupal Sagar hub and spoke combination is first-time grassroots click and mortar infrastructuretransporting rural local economies to a new level of productivity and consumption. The ITCCompany wants to say that is LET INDIA PUT FIRST.Choupal-Sagar offer a combination of services to rural India. Made-to-design agri-business hubs, they function as:

1. ITC is a agri-sourcing centers providing farmers a transparent best price sales window,

2. Shopping centers bringing a range of products comparable to urban levels of choice, and

3. Facilitation centers delivering a host of farm-related services training, soil testing,

product quality certification, medical and clinical services, and cafeteria and fuel station.

It works on mainly 4Rs

Right Time,

Right Place,

Right Price &

Right Quantity

The pioneering effort towards the establishment of rural malls came from the tobacco major, ITC

Ltd.As a logical extension of its highly lauded e- Chaupal project, the company launched rural

malls under the banner Choupal Saagar came up at a cost of Rs.4 cr on an eight acre plot in

Rafiqganj, about 4 k.m. from Sehore in Madhya Pradesh.The idea was that farmer could drive in

with his family on his tractor laden with harvest, get it weighed on a digital weighing machine &

offload the same at a huge go down at the back of the mall for a fair price. In meantime, the lady

of the house could look around the mall & pick items from the racks bursting with packaged

foods, spices, cereals, clothes ( trousers at Rs.166 a pair) , shoes sewing machines , watches,

grinders, TVs , DVD players, pressure cookers, room heaters. The children would have swings &

videogames to engage themselves, while their mothers went about their shopping. These apart,

the houses a soil testing laboratory, doctor, pharmacy, pathology lab ( in Madhya Pradesh &

Uttar Pradesh, the choupal saagars have tied up with the Apollo Group & with Care Foundation

to extend medical services to the customers), a diesel pump , a training center for farmers & a


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cafeteria. Moreover, there is enough space to display new models of tractors, threshers,

motorbikes etc.ITC welcomed companies like Marico, Eicher,TVS, LG Philps, Usha, Prestige,

Hawkins & Everyday, among others to display their products in the mall, apart from its own. The

company plans to synergize its rural distribution network through one choupal saagar for every

40 e- Choupals. The ultimate objective is to set up around 1,000 such rural malls in India.

Rural Retailing

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 availabilityof goods and then supplying them to consumer on a relatively small scale.

The mix of variables including price, location, communications, wholesaler, physical attributes,services and personnel form the retail mix and these components form the over all strategicmarketing components of retailing.

Retailing is for the rural markets are virgin markets. It is the pillars of Indian economy. It ishaving high transportation, traveling cost low maintenance cost. Accuracy is maintained throughintermediaries. It is handled by local kirana stores. Retailing the first phase of the distributionchannel and available for the distribution that grows in rural of Indian markets. Hence, it willundergo in greater organization and maturity level in rural markets. New ideas in retail modelsare the way for getting good satisfaction level from the customer. Distribution of Mall Spacesacross zones: Northzone-39%, Westzone-33%, Southzone-18% and Eastzone-10%. Haats areusually weekly that serve groups of10 to 50 villages and sell day -to- day necessities. Melas arelarger in size and provide more variety in terms of goods, such as T.V. sets etc.


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Meaning of Consumer Behavior

W e can believe that we know where the world should go. But unless were in touch with our customers, our model of the world can diverge from reality. Theres no substitute for innovation,but innovation is no substitute for being in touch, either .

-Steve Ballmer, CEO, Microsoft Corporation

In this era of competition, understanding the consumer is necessity for marketers.Consumer needs & preferences are continuously changing, given the changes in factors likedemographic& lifestyles. These changes can become great business opportunities for alertmarketers & threats for marketers who fail to adapt. Consumers acquire, consume & dispose off the products & services created by organizations. They go through several cognitive &

behavioral processes while making their purchase & consumption decisions. The knowledge of how they decide on one brand instead of another and what factors influence their decision-

making is crucial for marketers not only to cater to the existing needs of their consumers but alsoto prepare for their future needs. This knowledge is also essential to make various businessdecisions related to product development, packaging, pricing, distribution promotionscommunications, etc. Consumer Behavior helps to understand the internal variables likemotivation, perception, learning & attitude & external variables like reference groups, family,social class & culture their influence on consumer decision-making process. It also discusses theconsumers acceptance of innovation & their purchase & post-purchase behavior & the need for its regulation. CCoonnssuummeer r BBeehhaavviioor r ccaann b bee ddeef f iinneedd aass aa,, t t hhee aa ccqquuii s siit t iioonn , , ccoonn s suumm p p t t iioonn && d d ii s s p poo s siit t iioonn oo f f p p r r ood d uucct t s s , , s seer r vviiccee s s , , t t iimmee && iid d eeaa s s bb y y d d eeccii s siioonn -- mmaa k k iinn g g uunniit t s s .. IInn ootthheer r wwoor r ddss,, iitt iiss tthhee b booddyy oof f k k nnoowwlleeddggee wwhhiicchh ssttuuddiieess vvaar r iioouuss aass p peeccttss oof f p puur r cchhaassee && ccoonnssuumm p ptt iioonn oof f p pr r oodduuccttss && sseer r vviicceess b byy iinnddiivviidduuaallss wwiitthh vvaar r iioouuss ssoocciiaall && p pssyycchhoo llooggiiccaall vvaar r iiaa b blleess aatt p pllaayy..

TThhee N Neeeedd ttoo SSttuuddyy CCoonnssuummeer r BBeehhaavviioor r :: The field of consumer behavior is interdisciplinary, i.e. it uses concepts from a large variety of fields like anthropology, sociology, and marketing, psychology etc.The belief that consumer

behavior could be predicated and consumers influenced gave an added impetus to study of consumer behavior. There are thus, four underlying principles on which the field of consumer

behavior is based:

Sovereignty of the consumers.

Consumer research facilities an in-depth understanding of the consumers.

It is possible to influence consumers.

It is socially acceptable to influence consumers.


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Rural Retailing Strategies

Discounted price:It is given the discount means it is given at reasonable prices.

Functional in nature:It is diversified in various functions like minimum prices, good quality etc.

Designed to encourage impulse purchase By farmers By influencers:It is influenced by various peoples like references, peoples etc.

Blocks competitors entry:There are various competitors in market

Keeps everything a farmer may need. :In that mall all things are available which are used by farmers

Additional support services:It provides good quality of product to increase their value.

Strategies of Choupal Sagar

ITC has diversified status originates from its corporate strategy aimed at creating multipledrivers of growth anchored on its time-tested core competencies:

Unmatched distribution reach,:It reaches to its customers by various distribution channels

Superior brand-building capabilities:It provides good quality of brands of products.

Effective supply chain management:The supply chain of Choupal Sagar is very good & updates it inventory daily.

Acknowledged service skills:The skills in that adopted are very attractive.


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A Journey to the Interiors Prospects

For Rural Retailing in India

INDIA is on the threshold of retail revolution in the rural areas. According to McKinsey and

Co.a global consulting firm Indias rural market will touch $ bn by2020.Nearly 70%Indians, whoconstitute 12%of the worlds consumers reside in 5, 70,000 plus villages. Merger and erraticlevels of income and lack of infrastructure have so far kept away many marketers from thisdomain. However, a slew of measures to augment the income of the rural mass as well as toimprove substantially the rural infrastructure together with stagnation in urban markets, haveshifted the spotlight to the rural markets.

Rise in the purchasing power and overall literacy exposure to urban influence & electronicmedia have tremendous influence on the rural psyche. The rural people are now willing to spendon branded products_ whether regional, national or international thereby throwing up

tremendous opportunities for corporate sector, to push their retail trade. Responding to thisemerging trend, the first rural mall under the banner Choupal Sagarwas established by thetobacco major,ITC.This was followed by Tatas(Tata Kisan Sansar), Mahindra &Mahindra(Mahindra Sulbhlabh & Mahindra Krishi Vihar) &DCM Shriram ConsolidatedLtd.(Hariyali Kisan Bazaars), to name few. The soaring the popularity of these retail formats can

be attributed to a plethora of reasons. The retail formats have attracted commitments andinvestments from companies which were not originally associated with consumer goods. It doesnot therefore come as a surprise that according to a Technopak study, $12bn is likely to beinvested in India in organized retail over the next 5 years.

Side by side, the local kirana stores with their intimate the knowledge of the customer andextension of credit have kept the fire burning in many villages homes. The weekly or monthlyhaats and occasional melas continue to deliver the simple luxuries and provide entertainment toits visitors. Again these are being increasingly leveraged by companies to popularize their

brands. The population in India is unevenly distributed between cities &villages(table:1).In theurban areas high population density, good transportation connectivity and enlightened consumersamong other factors have traditionally attracted marketers who remained satisfied catering to thisvast consumer class which yielded large margins with relatively less marketing effort. In contrastrural India is the home for more than 70%of the countrys location but is besieged withmarketing bottlenecks in one form or another. This region is, therefore, generally ignored or at

best sidelined by many marketers.

When India opened its market to the world, pot-liberalization in 1991, MNCs lined up their goodies for urban consumers. While manufactures of high- end product targeted the globalIndians, the aspiring Indians were the key demand drivers for companies catering to the

popular segment. Not to be left behind, the Indian companies too went full throttle to retain their market share across various categories of products & services.


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All India Population distribution

Distribution Population Percentage

Rural 741,660,293 72.22

Urban 285,354,954 27.78

Total 1,027,015,247 100.00

Source: National Council for Applied Economic Research (NCEAER)2002

Consequently the urban consumers in India were bombarded with a vide variety of choices of every needs of theirs, big or small. As the battle between competing products & brandsintensified, the urban market began to reach its saturation level. Companies both national &international- were forced to seek greener pastures. The untapped rural market , comprising

about 12% of the worlds consumers & being twice as large as the entire population of the US &Russia, provided tremendous opportunities for these companies.

Current Retailing Landscape in Rural India

Since long, the local kirana stores satisfied the frugal needs of rural customers. The kirana stores(covering approximately 50 sq. ft. in area) are small family- owned businesses where allhousehold members chip in to run the shop. Their intimate knowledge of the customers helpedthem to sell on credit, & endeared them further to cash strapped village folks. The haats &melas added a little color to the serene pace of rural life. However, shopping for occasions or

providing for the occasional luxury invariably necessitated a trip to the nearby town. Thecompetitors for this are:

Hindustan Unilever- Project Shakti.

Tata- Tata Kisan Sansar.

Mahindra & Mahindra- Mahindra Shubhlabh & Mahindra Krishi Vihar.

Godrej- Aadhar & Manthan.

DCM- Hariyali Kisan Bazaars.

Triveni Engineering- Triveni Khushali Bazaars.

Data-Analysis & Interpretation


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From where do you purchase your grocery?

Purchase of Grocery No. of Respondents %

Nearby GroceryShop 24 24%

Anywhere 23 23%

Fixed Grocery Shop 30 30%

ITC Choupal Sagar 23 23%

Total 100 100%

From here we can analysis that:24% people purchase their grocery from the nearby groceryshop,23% people purchase their grocery from anywhere, 30% people purchase their groceryfrom the fixed grocery shop & 23% people purchase their grocery from the ITC ChoupalSagar.It means people are more interested towards their fixed grocery shop.

What is the frequency to purchase your grocery?

0%

5%

10%

15%

20%

25%

30%

35%

Nearby GroceryShop

Anywhere Fixed GroceryShop

ITC ChoupalSagar

Series1


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Frequency of purchasing grocery No. of Respondents

%

Daily 7 7%

Weekly 13 13%

Fortnightly 35 35%Monthly 45 45%

Total 100 100%

From here we can analysis that:7%people purchase grocery daily.13% people purchase groceryweekly,35% people purchase grocery fortnightly & 45% people purchase grocery monthly.

Are you using any agricultural product?

Use of Agricultural

Product No. of Respondents

%

Yes 35 35%

No 65 65%

Total 100 100%

7 %

13%

35%

45%

Frequency of Purchasing Grocery

D aily

Weekly

Fortnightly

Monthly


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From above analysis we can say that: 65% are not using the agricultural product &35 % areusing it.

What you prefer most while purchasing grocery/electronic item/agri products?

Use of electronicItem No. of Respondents

%

Product Quality 44 44%

Price 29 29%

Service 16 16%

Convince 11 11%

Total 100 100%

35%

65%

U se of Agricultural Product

Yes

No


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From above analysis we can say that:44% people see the product quality while purchasing thegrocery/electronic item/agri products,29% price,16%service & only 11% see for the convince for them.

If all these services if you will get under one roof do you will purchase from there?

Under one roof No. of Respondents %

Yes 85 85%

No 15 15%

Total 100 100%

44

29

16

11

0

5

10

15

20

25

30

35

40

45

50

Product Quality Price Service Convince


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From above analysis we can say that: 85% are people are willing to buy less than one roof &15%are not interested at all.

Are you aware of Choupal Sagar in Washim ?

Awareness No. of Respondents %

Yes 78 78%

No 22 22%

Total 100 100%

8 5%

15%

Yes

No


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From above analysis we can say that: 78%are aware of Choupal sagar in washim &22% are notaware about it.

Whether it is costly or cheaper than any other retailer?

Costly or cheaper No. of Respondents %

Yes 42 42%

No 10 10%

To some Extent 15 15%

Nothing to say 33 33%

Total 100 100%

78 %

22%

Yes No


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From above analysis we can say that: 42% people say that it is very cheaper than others, 10% saythat more costly than any other, 15% say that it is almost same to some extent & 33% cannot

judge it properly.

Give the rating to Choupal Sagar on the basis of the following :( Between 01 to 05)Sr No. LOW

PRICEGOODQUALITY

SERVICE HELPFUL NATURE

CONVIENCE

1 55 12 08 08 172 14 31 26 16 123 11 25 25 23 184 11 24 25 23 155 07 08 16 30 38

Yes No To Some Extent Nothing Say

42%

10%

15%

33%

0

10

20

30

40

50

60

1 2 3 4 5

55

1411 11 7

12

3125 24

88

26 25 25

16

8

16

23 23

30

1712

1815

38

LO W PRICE GOOD QUALITY SERVICE HELPFUL NATURE CO NVIENCE


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From above analysis we can say that: 55% rank to low price first, 14% rank second, 11% rank third, 11% rank fourth & 7% rank five.12% rank to good quality first,31% rank as second,25%as third,24% rank as a fourth & 8% as a fifth.8% rank as first service 26% as a second,25% as athird, 25% as a fourth & 16% as a fifth.8% rank to helpful nature as a first, 16% as a second,23% as a third, 23% as a fourth,30% as a fifth.17% as a first to convince,12% as a second,18%as a third,15% as a fourth & 38% as a fifth.

Findings & Recommendations

Quantitative

From here we can analysis that:24% people purchase their grocery from the nearby groceryshop,23% people purchase their grocery from anywhere, 30% people purchase their groceryfrom the fixed grocery shop & 23% people purchase their grocery from the ITC ChoupalSagar.It means people are more interested towards their fixed grocery shop.

From here we can analysis that:7%people purchase grocery daily.13% people purchase groceryweekly,35% people purchase grocery fortnightly & 45% people purchase grocery monthly.

From above analysis we can say that: 65% are not using the agricultural product & 35 % areusing it.

From above analysis we can say that:44% people see the product quality while purchasing thegrocery/electronic item/agri products,29% price,16%service & only 11% see for the convince for them.

From above analysis we can say that: 85% are people are willing to buy less than one roof &15%are not interested at all.

From above analysis we can say that: 78%are aware of Choupal sagar in washim &22% are notaware about it.

From above analysis we can say that: 42% people say that it is very cheaper than others, 10% saythat more costly than any other, 15% say that it is almost same to some extent & 33% cannot

judge it properly.

From above analysis we can say that: 55% rank to low price first, 14% rank second, 11% rank third, 11% rank fourth & 7% rank five.12% rank to good quality first,31% rank as second,25%as third,24% rank as a fourth & 8% as a fifth.8% rank as first service 26% as a second,25% as athird, 25% as a fourth & 16% as a fifth.8% rank to helpful nature as a first, 16% as a second,23% as a third, 23% as a fourth,30% as a fifth.17% as a first to convince,12% as a second,18%as a third,15% as a fourth & 38% as a fifth.


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Qualitative

Some people are less aware about the Choupal sagar.

Some people say they are having high price than others grocery shop.

Some people say that it is good concept for the farmer to satisfy their need in the mall.

Some people say it is far away from the city.

Some people say it is having helping nature & people who work there they guide us tothe people what are good things& what is beneficial for them.

ConclusionFrom the research the researcher concludes that: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 theavailability of goods and then supplying them to consumer on a relatively small scale.

The mix of variables including price, location, communications, wholesaler, physicalattributes, services and personnel form the retail mix and these components form the over all strategic marketing components of retailing. In rural retailing there are 6 players:Hindustan Unilever- Project Shakti.Tata- Tata Kisan Sansar.Mahindra & Mahindra- Mahindra Shubhlabh & Mahindra Krishi Vihar.Godrej- Aadhar & Manthan.DCM- Hariyali Kisan Bazaars.Triveni Engineering- Triveni Khushali Bazaars.Some people are aware about retailing concept but not for the rural retailing. There aresome strategies adopted by the ITC choupal sagar to satisfy the customer needs. They areunmatched distribution channels, good quality of products available there, effectivesupply chain management & servicing skills.Some people visited with their family, individually, friends& relatives. Some purchasegrocery daily needs, electronic items& agricultural products. After analyzing the primarydata some respondents given rates to the choupal sagar are in that they are given thelowest rate to the convince only.


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References

Consumer Behavior: ICFAI Publication of Semester 3rd

Kaberi Bhattacharrya Article on A Journey to the Interiors Prospects for Rural Retailingin India Marketing Mastermind: Magic Mirror Trial Room of the Future RuralRetailing April 2009.

Mr.Prafulla Ghodchar,Choupal Sagar Incharge,Washim.

http://www.google.com/rural retailing/ITC/LETINDIA PUT FIRST.htmlhttp://www.itcportal.com/e-choupal sagar .html

http://www.slideshare.net//rural retailing ITC Choupal Sagar.html

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