Mr. Anil Wanarse Patil
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Transcript of Mr. Anil Wanarse Patil
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AN INCREASINGLY AFFLUENT INDIA IS
HARDER TO IGNORE
SUBMITTED TO,
INTERAVION
PRESENTED BY,
MR. ANIL WANARSE PATIL,ROLL NO.-R08PGDM044INDIAN INSTITUTE OF PLANTATION MANAGEMENT ,BANGALORE.
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INTRODUCTION
CASE SUMMERY
The case study illustrate that , Huge potential for any kind of business ishidden in middle India. Some facts, opinion, figures showing thepotential are as follows
Today India is 26% urban & 74% rural, in 2046 it would be 2% rural &98% urban (Samu, ISB).
Indian urban growth story has been driven by metros, but this is nowmoving beyond metros in to smaller towns. (Ashok Rajgopal, mediapartner at Ernst & Young).
In India 51 districts have at least one town with a population more than500,000, together they have twice market potential of 4 metros. (RKSwamy,BBDO-guide,market planning.)
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C O N T
The ratio of spending to earning is higher in tier 2 towns
(Nagpur, Jaipur, Surat) than it is in the metro.(NCAER).
Higher % of the rich is in middle India than in some metros.(crorepatidensity of Haryana in 2004 is 280.)
As consumption is to be concerned metros constitute 30% of the totalconsumption market, rest urban & rural constitute 70%.
Of the 80 million household that constitute the middle class , only 25million are in Tier 1 cities, close to 55 million belong to smaller town.
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C O N T .
Case study explains TWO effects
EFFECTS
DHONI BUNTY AUR BABLI
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C O N T . .
DHONI EFFECT
Dhoni from small town of Ranchi in Eastern India.
Got one of its flashier success in recent time.
This effect identifies phenomenon where rapidlygrowing small town of India are taking centre stage.
This research highlights
Growing affluence level
Increased awareness due to media penetration Improved physical connectivity.
Significant changes in consumption pattern.
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C O N T .
BUNTY AUR BABLI
Popular name of small town of India.
There is a sense of urgency, excitement, & confidence as
they reach ahead.
Hence, they are the future market.
This effect attempts to understand attitude and behavior
of youth in Tier 1 & 2 cities.
Some characteristics ofBUNTYbehavior-1. High confidence in their abilities.
2. Reemergence of Gandhian values.
3. Pride of being Indian.
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C L A S S I F I C A T I O N O F C I T I E S
METROS HIGH GROWTH
CITIES
EMEGING CITIES POTENTIAL
CITIES
MUMBAI PUNE NASHIK AURANGABAD
DELHI JAIPUR NAGPUR PATNA
BANGALORE LUCKNOW GOA RAJKOT
HYDERABAD KOCHI KANPUR MEERUT
CHENNAI AHMEDABAD SURAT BHOPAL
KOLKOTA CHANDIGARH AGRA SONEPAT
LUDHIANA MYSORE VIJAYAWADA
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C O N T . .
By seeing this points we can say that there is a immense
potential for company like INTERAVION to grab
Indian middle market.
Certain major cities are shown here having particular
characteristics.
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QUESTIONS ?
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1. WHAT IDENTIFIES THE DIFFERENCE BETWEEN
TIER 1 & TIRE 2 CITIES IN TERMS OF -
A. Demand of Frozen processed products.B. Demand of chickenFrozen/chilled.
C. Demand of imported/exotic fruits & vegetables.
ANS -A. Demand of Frozen processed products
Following parameters identifies the actual difference-
AWARNESS
PRICE SENSITIVE
FRESHNESS FARMING IMPACT
HEALTH ASPECT
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I D E N T I F I E S T H E D I F F E R E N C E
DEMAND OF FROZEN PROCESSED PRODUCTS
PARAMETERS TIER- 1 TIER - 2 /3
AWARNESS
More aware about frozen processed
products.
Not that much aware, bec
traditionally bound.
INCOME
More income so more purchasing
power, demand is more. Morefrequently the are going for Frozen
products
Generally not going for such
type of products, bec- of middleincome level.
HEALTH
ASPECT
Giving more attention towards
hazards aspects of frozen processed
product.
They are also health conscious
towards processed products.
HECTIC LIFEMostly people are job oriented , infamily both husband & wife do the
job , so, many times they go for
frozen processed products which are
ready to eat.
Not so, The demand isultimately less of frozen
processed products.
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B . DEMAND OF CHICKEN FROZEN/CHILLED.
PARAMETERS TIER - 1 TIER 2 & 3
AWARNSEE High awareness level , hencedemand is high .
Degree of awareness is low.
PRICE
SENSITIVE
Less price sensitive More price sensitive
FRESHNESS Generally they are going for
Frozen chicken.
Generally they are going for
fresh cut chicken, so, demandis less.
FARMING
IMPACT
Non Agri. Business .
Automatically consumption
of frozen chicken is more &
hence demand is more .
Almost 70% people they are
doing Agriculture diversified
farming . Domestication of
poultry commonly followed
by them.
HEALTH
ASPECT
They feel comfortable with
frozen chicken eating,
They feel that because of
package somewhat problem
will be there.
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C O N T .
PARAMETERS TIER - 1 TIER 2 & 3
HEALTH ASPECT They feel that no problem
with such type of food
bec- packed ,& more
nutritious.
Not so. Mostly they try
for freshly cut chicken.
Hence here demand of
frozen chicken is less as
compare to tier 1.
CULTURE These people are not that
much culture conscious
More culture conscious
,as BRAMHIN strictly
avoid the chicken.
OCCOSIONALITY At week end most of the
people going for alcohol ,youth also making
celebrations at week end
so demand in the hotels is
more for frozen chicken.
Not so,Occosionally they
are going for statedfactors.
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C. DEMAND OF IMPORTED/EXOTIC FRUITS
& VEGETABLES
Exotic fruits & vegetables- Collection crops of Asianorigin.(China, Hong-Kong, Singapore).
Various fruits & vegetables are
SUPERFRUIT STRAWBERRY
RED CABBAGE
YELLOW FLESHED SEEDLESS WATER MELON
BIMAL FRUIT
BOX SHAPED WATERMELON
BLACK TOMATO
CHERRY TOMATO
APRICOT
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IMPORTED/EXOTIC FRUITS & VEGETABLES
RED CABBAGEYELLOW FLESHED SEEDLESS
WATER MELON
CHERRY TOMATOBLACK TOMATO
APRICOT
BIMAL FRUIT BOX SHAPEDWATERMELON
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DEMAND OF IMPORTED/EXOTIC FRUITS & VEGETABLES
PARAMETERS TIER - 1 TIER 2 & 3
INCOME
Generally they are going
for exotic F&V even
though it is costly ,because
high income.
Generally income is
medium, but do not
changes the habit of eating
food.
GANDHIAN VALUEValue which follows theGandhi principles. Here it
is low ,bec of modern era.
They are following thisparameter . More demand
give s to the SWADESHI
F&V.
WAProud to be an Indian
LKING ON WIDE SIDE
Not so. Here they have great desire
to express towardsunknown things ,they can
also follow these products.
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C O N T . .
PARAMETERS TIER - 1 TIER 2 & 3
LITERACY More literacy rate
among people, because
of that they are familiar
with exotic F&V,
Less literacy rate ,not
that much familiar with
exotic F&V.
MEDIA Also bec- of media
exposure peoples are
aware about products of
exotic origin.
Not that much media
exposure.so,ultimately
demand is low.
NUCLEAR FAMILY No influence of family
members. So easily they
can eat it.
Influence of family
members, hence, less
demand for exotic F&V.
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2. HOW LOGISTICS WILL BE DIFFERENT FOR TIRE 2 &
TIER 3 CITIES AS COMPARE TO TIER 1 CITIES ?
L O G I S T I C S I S T H E C O N N E C T I V E T I S S U E T H A T M A K E S T H E G L O B A L E C O N O M Y
W O R K .
For the difference we have to consider following
PPARAMETERS GEOGRAPHY & PHYSICAL INFRASTRUCTURE.
PROXIMITY TO SUPPLIERS & CUSTOMERS.
ROAD FACILITY.
DISTANCE FACTOR.
SERVICE.
CANTAINER SIZE.
DISTRIBUTION PATTERN.
TRANSPORTATION COST.
MAINTAINANCE COST
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C O N T .
PARAMETERS TIER - 1 TIER 2 & 3GEOGRAPHY & PHYSICAL
INFRASTRUCTURE.Good Geography &
physical infrastructure as
availability of plenty of
resources in tier- 1
Not that much developed as
compare to tier 1.
PROXIMITY TO SUPPLIERS
& CUSTOMERS.Here mainly concentrated
population ,so one
DC(Distribution centre)
can serve purpose of huge
customer base. But here
traffic curfews & zonal
restrictions reduces the
functioning of logistics.
Scattered population.
No traffic, so well
functioning of logistics.
ROAD FACILITY Good quality, which
increases the efficiency of
vehicles.
Poor quality, so affect life
span of vehicle.
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C O N T .PARAMETERS TIER - 1 TIER 2 & 3
DISTANCE FACTOR.
Vehicles has to cover less
distance
Vehicles has to cover more
distance
SERVICING Easily done ,bec- availabilityof tools & techniques in such
cities.
Sometimes very difficult tomanage it.
CANTAINER SIZE.
Generally small size
containers are used
Big size containers are
useful for bulk
transportation.
DISTRIBUTION
PATTERN.
Direct to retailers Indirect, 1st it goes to
primary DC & then
distributed to final
destination.
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C O N T .
PARAMETERS TIER - 1 TIER 2 & 3
TRANSPORTATION
COST.
Less transportation cost ,
bec concentrated location.
(Bangalore to Bangalore)
More transportation cost
,bec- more distance.
(Nagpur to Aurangabad)
MAINTAINANCE COST Less, as less functioning More , due to distance &
more functioning.
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3. WHAT APPROACH DO YOU PROPOSE FOR LOGISTICS
COMPANY TOWARDS TIER 2 & 3 CITIES
APPROACH
HUB & SPOKESYSTEM
APPROACH
LOGISTICMODEL
TRADITIONALMETHOD
OVERCOMEAPPROACH
JIT
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1. LOGISTIC MODEL APPROACH
SOURCE COLD STORAGE(FUEL +ELECTRICITY)
TRANSPORTATION
( FUEL)RETAIL DISPLAY
REPLENISHMENT
(FUEL + ELECTRICITY)CUSTOMER
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2 . J I T A P P A R O C H
Just In Time approach
Final produce reach to the customer each time &
every time. Delivery of produce here is very important.
3. TRADITIONAL METHOD OVERCOME APPROACH
Previously in Tier 2 & 3 cities of fruit & vegetables produce
transferred by traditionally like, Tractor, Truck, Bullock cart etc. Due to traditional transportation F&V loss occur more,to reduce
this & to maintain proper cold chain new method should be
follow.
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C O N T . .
v Various containers are-
1. REFRIGERATED CONTAINER
2. REFRIGERATED TRUCKS
3.FREEZER TRUCKS
These vehicles should be equipped with -
Data logger to record the temp. & out-cut
thermostat to maintain the temperature.
Reverse logistics approach(Aftermarket consumer survey) .
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3. HUB & SPOKE SYSTEM APPROACH
v It would be utilized for the distribution of perishable
commodities.
SHIPMENT
1. Road
2. Rail 3. Water ways
PRIMARY HUB
Transportto the finaldestination
.
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EXAMPLE
PUNE + NASHIK
HINTERLAND HINTERLAND
SOLAPUR JALGAON
SANGLI NAGPUR
SATARA AURANGABAD
MUMBAI Where produced can be consumed or Exported.
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CONCLUSION
v India is second largest producer of fruits (45.5 millionton) & vegetables (90.8 million ton) contributing 10.5%
& 14.5% of the total world production respectively.
v However , in stark contrast, Rs. 55,600 crore worth of
these , including grain & pulses are lost due to poor postharvest management of which inadequate or near non
existent cold chain logistics & storage is the biggest
contributor.
v As far as potential is to be concern affluent middle Indiais harder to ignore & now it seems that it is directly
related with core management principles applied by
various cold chain logistics players in the corporate war.
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T H A N K Y O U