Rural Market research Strategies by MART and ITC

By: Sunil M. Sharma

Suniti Badaya

Swapnil Mathur

Under the guidance of

Prof S P Garg

Jaipuria Institute of Management ,Jaipur

Market research

Any organized effort to gather information about markets or customers

Important component of business strategy

It includes social and opinion research, it is the systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision making.

Objectives of Rural market research  Strategies to ‘go rural’  Analysis of Micro/Macro Rural Marketing Environment Rural market entry and expansion strategies Rural Market Choice Mapping & Planning Market potential and demand estimation studies Market segmentation/ positioning studies New product development related research Rural Consumer Behaviour Pricing and packaging strategies Communication planning Optimum route planning or distribution planning Rural Retail Strategy Development and Distribution Developing databases on rural markets Rural market watch Rural market mapping Training/ strengthening professional capabilities for rural marketers

Differences in Urban –Rural Market ResearchS.No.

Aspect Urban Rural

1. Respondents

Literate ,brand aware, individuals respond individually

Semiliterate or illitereate,unaware of brands. difficult to get individuals response. generally group response.

2. Time Willing to respond ,have time pressures ,spare little time

Hesitant, But devotes time

3. Accessibility

Easy to access, though many suffer from research fatigue

Tough to access; geographical and psychological apprehensions. do not speak easily to outsiders.

4. Secondary Data

Internal data, syndicate research, published media and many sources.

Very few sources and less data

5. Primary data sources

Large no. of middlemen,experts,consumers,sales force, opinion leaders

Less no. of all categories

6. Sampling Respondents form relatively homogenous group. income can be a criterion

Heterogeneous group, income and land holding to be applied carefully.

7. Data Collection

Use of sophisticated instruments, style and administration. respondents comfortable with number ratings and scales.

Requires simplified instruments .respondents comfortable with colours ,pictures and stories.

MART

Established in 1993, MART is a pioneer in the rural domain and over the years has also developed as the Leading Consultancy and Knowledge based organization on Emerging Markets.

MART's expertise lies in its understanding of the Base of the Pyramid (BoP) segments, their eco system and behavior

MART enjoys a unique position as an end to end solutions facilitator for both the corporate and development sectors

Innovative solution in global market.

Vision is to become the most respected, employee owned consultancy firm in the emerging markets creating innovative and effective solutions in the sectors of our focus.

Mission is to enable the poor in emerging markets improve their quality of life, by delivering innovative, high value, end to end solutions through our partners.

Innovative Approaches to Research Tools

Participatory Rural Appraisal (PRA)

The process adopted is pictorial and drawn by the community themselves, hence cross check and validation of data is done automatically.

PRA is a set of approaches and methods that enable the rural community to share, enhance and analyze their knowledge of their own environment and life.

The process adopted is pictorial and drawn by the community themselves, hence cross check and validation of data is done automatically.

Here role of moderator is very low who simply acts as facilitator. The PRA approach empowers the community in such a manner that they voluntarily participate in the research process.

Some PRA applications:

Social and Resource Map : The Resource Map captures various infrastructural and community resources, highlighting ownership and access. This exercise identifies the various need gaps for each community.

A Seasonality Diagram is used to gather information on income flows and expenditure patterns for different communities and occupations.

A Need Assessment Map can be developed for any introductory product and serves to identify issues associated with access, acceptability or affordability.

A Daily Activity Clock captures economic and social activity in daily life. This helps identify time windows for communicating with the community and potential consumers.

MART Independent Studies

An Impressionistic Study On Role Of Consumer Finance In Rural India

Feasibility Study On Mobile Traders As A New Distribution Channel

National Study On Haats (Weekly Bazaar) And Melas Role Of Rural Youth In The Buying Process

Study On Impact Of Spurious / Counterfeit Products In Rural Markets

Study On Potential Channels For Promotion Of Consumer Durables In Rural India

Study On Rural Distribution Models For FMCG

Study On Specific Market Research Tools And Techniques In Rural Markets

Use Of Folk Media For Effective Communication And Advertising

ITC e-Choupal and the Strategy

ITC followed a different media/communication strategy which is more elaborate and extensive in rural marketing so far, which benefits both the farmers and the organization.

The strategy is use the Information Technology and bridge the information and service gap in rural INDIA which gives an edge to market its products like seeds, fertilizers and pesticides and other products like consumer goods.

The e- Choupal model, in contrast, has required that ITC make significant investments

Vision and Planning behind the e-Choupals

Re-engineer, Not Reconstruct: ITC decided to build e-Choupal on existing system. Already ITC has trading agents in local mandis for its tobacco business. It retained the efficient providers and created roles for inefficient people.

Address the Whole, Not Just One Part: The farmers various activities range from procuring inputs to selling produce. ITC e-Chopal provide services as a bundle what the entire agricultural community needs.

An IT-Driven Solution: E-Choupal was seen as a medium of delivering critical market information independent of the mandi, thus allowing the farmer an empowered choice of where and when to sell his crop.

Strategies to be followed

Adopt the ability to determine the grades of the crop grains in the field which commands the price premium for the crop.

Build the concept of traceability into the supply chain which will allow to address the food safety concerns.

Provide the service as market-place for commodities where ITC is not a sole buyer. It will reduce the operational cost of e-Choupal such as IT infrastructure and transaction cost.

Marketing value added products and services to rural INDIA , in addition to marketing agro inputs, through e-Choupal system.

Sourcing IT-enabled services from rural INDIA. Telemedicine, eco- tourism , traditional medicine and traditional crafts are some of the services that can be sourced from rural INDIA.

THIS PRESENTATION WOULD FACILITATE

MBA students

and

market research professional

to understand the subject