130700095 Hul Shakti Project Report

8/13/2019 130700095 Hul Shakti Project Report

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Project Report

OnEMERGING TREND IN MORDEN RETAIL FORMAT

WITH SPECIAL REFERENCE TO HUL (SHAKTI), ITC

(ECHAUPAL) ! GODRE" (ADHAAR)


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CONTENTS

C#$pter %& Intro'cton ! *$c+ron'

1.1 Company Profile

1.2 Objective of the Project

C#$pter -& Re.e$rc# Met#o'o/o0 ! De.n

C#$pter 1& Re.e$rc# Fn'n.

C#$pter 2& Conc/.on

C#$pter 3& L4t$ton.

C#$pter 5& Se.ton

Re6erence.

Books

Web sources


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C#$pter %

Intro'cton


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Intro'cton

From the strict marketing point of vie! the market structure in "n#ia is #ichotomous

having rural an# urban markets. But many #o not concur ith this vie as they conten#that consumer everyhere is a consumer an# hence their nee#s! aspirations! beliefs an#

attitu#es ill also be the same. $he fact! hoever! remains that there are certain uni%ue

characteristic features hich call for separate marketing strategies to be #istinctively

#evelope# to suit the rural an# urban market behaviour.

Con#itions e&isting in urban markets at present can also be analy'e# in this conte&t. First!

the urban markets have almost reache# a saturation level that further tapping them ith a

high profit margin has become #ifficult. (econ#ly! competition is becoming tough in

urban markets compelling many firms to incur heavy costs in promotional e&pen#iture.

$hir#ly! the aareness level of urban consumers is high an# hence pro#uct features have

to be change# often. )ee#less to say this process nee#s a huge investment hich ill

have a negative impact on profitability. $hus! e&cept perhaps for easy reach the urban

markets have become as oasis.

Sn6c$nce o6 Rr$/ M$r+et.

$he rural markets are estimate# to be groing fastly compare# to the urban markets. $he

potentiality of rural markets is sai# to be like a *oken up sleeping giant*. $hese facts are

substantiate# in a stu#y of market groth con#ucte# by various researches. "n recent

years! rural markets have ac%uire# significance in countries like China an# "n#ia! as the

overall groth of the economy has resulte# into substantial increase in the purchasing

poer of the rural communities. On account of the green revolution in "n#ia! the rural

areas are consuming a large %uantity of in#ustrial an# urban manufacture# pro#ucts. "n

this conte&t! a special marketing strategy! namely! rural marketing has taken shape.

(ometimes! rural marketing is confuse# ith agricultural marketing + the later #enotes

marketing of pro#uce of the rural areas to the urban consumers or in#ustrial consumers!

hereas rural marketing involves #elivering manufacture# or processe# inputs or services


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to rural pro#ucers or consumers.

, number of factors have been recogni'e# as responsible for the rural market boom to

come into e&istence-

1. "ncrease in population an# hence increase in #eman#.

2. , marke# increase in the rural income #ue to agrarian prosperity.

. (tan#ar# of living is also increasing in rural areas.

/. 0arge inflo of investment for rural #evelopment programmes from government an#

other sources.

. "ncrease# contact of rural people ith their urban counterparts #ue to #evelopment of

transport an# i#e communication netork.

. "ncrease in literacy an# e#ucational level an# resultant inclination to sophisticate# lives

by the rural folks.

3. "nflo of foreign remittances an# foreign ma#e goo#s into rural areas.

4. Change in the lan# tenure systems causing a structural change in the onership

patterns an# conse%uent changes in the buying behaviour.

5. 6ural markets are laggar#s in picking up ne pro#ucts. $his ill help the companies to

phase their marketing efforts. $his ill also help to sell inventories of pro#ucts out #ate#

in urban markets.

6ural market has folloing arrive# an# the folloing facts substantiate this.

W#$t 4$+e. Rr$/ M$r+et. Attr$ct7e8

7 3/2 million people

7 8stimate# annual si'e of the rural market

9 F:C; 6s. !


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urban? ith cumulative cre#it of 6s. 533 billion resulting in tremen#ous li%ui#ity.

7 Of 2< million 6e#iffmail signups! < A are from small tons.


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7 :arketers can make effective use of the large available infrastructure

9 Post offices 9 1! 4!9 =(C0 Daryali stores

9 : I : (hubh 0abh stores

9 $,$,@6allis isan en#ras

9 8scorts rural stores

9 Warnaba'aar! :aharashtra >annual sale 6s. /< crores?

EMERGING TRENDS IN MARKETS

ONLINE RURAL MARKET (INTERNET, NICNET)9

6ural people can use the to9ay communication through on + line service for crop

information! purchases of ,gri9inputs! consumer #urable an# sale of rural pro#uce

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

rural areas because of sprea# of telecommunication facilities all over "n#ia.

,gricultural information can get through the "nternet if each village has small

information office.


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INFORMATION THROUGH LOCAL AGRICULTURE

INPUT DEALERS

:ost of the #ealers have #irect touch ith the local farmersE these farmers nee#

aareness about pests! #ecease! fertili'ers! see#s! technology an# recent

#evelopments. For this information! farmers mostly #epen# on local #ealers. For

#evelopment of rural farmers the government may consi#er effective channel an#

keep information at #ealers! for farmer e#ucation hang notice boar# an# also train the

#ealer recent changes an# #evelopments in agriculture.

)ational Chain (tores- large number of stores set up in #ifferent rural areas

throughout the country by the same organi'ation for marketing its pro#ucts. $hus

national chain stores can serve large number of customers in rural area.

COST *ENEFIT ANAL:SIS

Cost benefit can be achieve# through #evelopment of information technology at the

#oorsteps of villagersE most of the rural farmers nee# price information of agri9

pro#uce an# inputs. "f the information is available farmers can take %uick #ecision

here to sell their pro#uce! if the price matches ith local market farmer no nee# to

go near by the city an# aste of money I time it means farmers can enrich their

financial strength.

NEED *ASED PRODUCTION

(upply plays major role in price of the rural pro#uce! most of the farmers gro crops

in particular seasons not through out the year! it causes oversupply in the market an#

#rastic price cut in the agricultural pro#uce. )o the information technology has

been improving if the rural people enable to access the rural communication! farmers

aareness can be create# about crops an# forecasting of future #eman#! market taste.


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Farmers can e%uates their pro#uce to #eman# an# supply! they can create farmers

#riven market rather than supply #riven market. "f the nee# base# pro#uction system

#evelope# not only prices but also storage cost can be save#. "t is possible no a #ays

the concept of global village.

MARKET DRI;EN E


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Inter$te' M$r+etn

Hn#er this concept! both the supply of inputs an# servicing of inputs are un#ertaken

at the same point or by the same company.

C/$..6c$ton o6 C.to4er.

In'$ % In'$ - In'$ 1

Con.4n C/$.. Ser7n C/$.. Str/n c/$..

Constitutes only %2 ?of

the countryKs population

:ost of these customers

have a [email protected]$nt$/#isposable income an#

they form part of usually

calle# as the pper

4''/e an# the /oer

4''/e c/$..

"nclu#es people like

#rivers! house hol#

helpers! office peons!

liftmen! asher man etc.

$hese people make life

easier an# more

comfortable for the

consuming class or In'$

%.

6esearch in#icates that

for every "n#ia one at

least three "n#ia $os are

there! making up appro&.

33 ? of the population

but #ue to lo income

they have a very little

#isposable income to

spen# on buying

aspirational goo#s I

services .

"t lives han#9to9mouth

e&istence! so can not

affor# to even aspire for

goo# living.

Hnfortunately this

segment ill continue to

be on the peripheries of

the consumption cycle in

"n#ia! in years to come.

Sorce9 Ftre Grop Re.e$rc#, P@/.#e' n t#e *oo+ BIt H$ppene' n In'$ @0

K.#ore *0$n, - ..e&


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E4ern Tren'. n Mo'ern Ret$/ For4$t.9

"t is #ifficult to fit a successful international format #irectly an# e&pect a similar

performance in "n#ia. $he lessons from multinationals e&pan#ing to ne geographiesalso point to this. For e&ample! Wal9:art is highly successful in H(, but the story is

#ifferent in ,sian countries like China. $herefore! it is important for a retailer to look at

local con#itions an# insights into the local buying behavior before shaping the format

choice. Consi#ering the #iversity in terms of taste an# preferences prevailing in "n#ia! the

retailers may go for e&perimentation to i#entify the inning format suite# to #ifferent

geographies an# segments. For e&ample! the taste in south is #ifferent from that in north

an# this brings challenges to the retailers. $herefore! most of grocery retailers are region

centric at this point in time. $he available research fin#ings on retail in#icate the

folloing tren#s in :o#ern 6etail formats-

%) Tr$/ ! Error9 )o a number of retailers are in a mo#e of e&perimentation

an# trying several formats hich are essentially the representation of retailing

concepts to fit into the consumer min# space. ,part from geography even rural

an# urban #ivi#e poses #ifferent kin# of challenge to the retailer. Pantaloon 6etail

"n#ia is e&perimenting ith several retail formats to cater to a i#e segment of

consumers in the market. (ome of the ne formats are Fashion (tation >popular

fashion?! Blue (ky >fashion accessories?! a00 >fashion apparel for plus9si'e

in#ivi#uals?! Collection i >home furnishings?! =epot >books I music? an# 89Lone

>Consumer electronics?.

-) E4erence o6 W#o/e.$/e C/@.9 (ince retailers are trying to segment the

market ith the help of formats! they #evelope# another ne format in the form

of Wholesale Club to sell a segment of consumers! ho purchase on bulk an#

look out for substantial #iscounts an# offers. $he ne format is going to be a kin#of holesale club hich is likely to be locate# close to Foo# Ba'aar. Consumers

ho are intereste# to purchase on bulk can take benefit from this format.

(imilarly the 0an# mark group also operates multiple formats such as

hypermarket >:a&?! #epartmental store >0ifestyle?! (hoe mart an# Funcity 4 etc.


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(uch e&perimentation an# i#entification of an appropriate format for the local

con#itions oul# separate inners from losers in "n#ia! possibly implying

multiple formats coul# be the reality in the long run. Pantaloon 6etail "n#ia 0t# is

a live e&ample of that in "n#ian scenario.

1) Incre$.n Accept$nce o6 Rr$/ M$r+et.9 :all9mania is phenomenal in

"n#ia an# is sprea#ing fast an# entering even the secon# tier cities in "n#ia. 6eal

estate #evelopers are jumping very fast to take this further from :etro cities to

smaller cities an# corporate houses like "$C an# (riram group are making stea#y

progress to make this phenomena feasible in rural markets as ell. $here is no

#enying that the top notch cities like :umbai! =elhi! Bangalore! Dy#eraba#!

olkata! Chennai an# Pune are lea#ing the ay but the secon# tier cities like

0u#hiana! Chan#igarh! )agpur an# (urat are also catching the eye of all retailers.

6etail #evelopers are in such a moo# that they may over ri#e the re%uirement in a

specific city.

2) Go7t& . $/.o pro4otn t#e De7e/op4ent o6 Mo'ern Ret$/

For4$t.90arge format malls are increasingly getting prominence ith a#e%uate

retail space allocate# to leisure an# entertainment. (ome states like Punjab have

lifte# entertainment ta& on multiple&es till 2


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home #Mcor! gift i#eas an# other services. (hopperKs (top is getting stronger an#

stronger year after year. "t attracts more than 12 million shoppers every year ith

a conversion rate of 4 per cent. "n the en# of FN2< plus stores?! an# ,#ani are the lea#ing super market


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operators .One of the biggest super market operators in the estern "n#ia is ,#ani

6etail 0imite# hich operates ,#ani super market plans to continue its journey to

reach total 15 cities ith the store strength of < plus in the state of ;ujarat. ,60

also plans to e&pan# its operation in the neighboring states of 6ajasthan! :a#hya

Pra#esh! :aharashtra an# Chhattisgarh.

(ubhiksha is one of the lea#ing super market operators! ho largely operates in the

.ot#ern p$rt o6 In'$ is e&pan#ing to e.tern In'$. One more retailer 6eliance

6etail is on the move an# this retailer opene# its 6eliance Fresh9a super market chain

ith 11 stores in Dy#eraba# in )ovember 2(Hs?. )ormally it remains open for

long hours an# shoppers use it for buying fill9in merchan#i'e an# emergency


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purchases. "n "n#ia! Convenience stores occupie# 2 thousan# s%. meter of retail

space ith sales of about 6s 1/3 million in 2


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paper an# stationery! househol# goo#s! toys! foo# an# sometimes clothing. Both

private9label an# bran#9name goo#s fill the shelves. $hey are looking for

employing technology to manage large #istribution netorks. (tore 55 is the

e&ample of it in "n#ian (cenario.

%1) Ret$/ De7e/op4ent n Rr$/ In'$9 A M$r+et t# S/7er /nn 9

Chennai base# market research firm Francis anoi estimate# the si'e of the rural

market to be ")6 1!


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)orth "n#ia. Farmer response has been e&tremely encouraging. , centre is attracting 1H( .2 billion in the last #eca#e?.

$he Company*s *e9Choupal* initiative is enabling "n#ian agriculture significantly enhance

its competitiveness by empoering "n#ian farmers through the poer of the "nternet.

$his transformational strategy! hich has alrea#y become the subject matter of a case

stu#y at Darvar# Business (chool! is e&pecte# to progressively create for "$C a huge

rural #istribution infrastructure! significantly enhancing the Company*s marketing reach.

"$C*s holly one# "nformation $echnology subsi#iary! "$C "nfotech "n#ia 0t#!

provi#es "$ services an# solutions to lea#ing global customers. "$C "nfotech has carve# a

niche for itself by a##ressing customer challenges through innovative "$ solutions.


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"$C*s pro#uction facilities an# hotels have on numerous national an# international

aar#s for %uality! pro#uctivity! safety an# environment management systems. "$C as

the first company in "n#ia to voluntarily seek a corporate governance rating.

"$C employs over 2!


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important things + eather forecasts! the latest farming techni%ues! crop insurance! etc. e9Choupal has not only change# the %uality of our lives! but our entire outlook.

eC#op$/ No

(tates covere# 1( "?

$echnical (ervice "ncharge >$ ( "?

Fiel# (ervice ,ssistance >F ( ,?

Farmer >$arget Customer?


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*ene6t o6 M/tn$ton$/ co4p$ne. n Rr$/ M$r+et

6H6,0 ")=", ith its tra#itional perceptions has gron up over the years! not only in

terms of income! but also in terms of thinking. $he rural markets are groing at about

to time faster pace than urban markets! not surprisingly! rural "n#ia accounts for < per

cent of the total national #eman#.

,ccor#ing to a survey con#ucte# by :ckinsey in 2"$C?! ;o#rej!

Din#ustan 0ever 0imite# >D00?! ;ujarat Cooperative :ilk :arketing Fe#eration

>;C::F9,mul? an# =abur "n#ia 0imite#. ,ll these have shon a strong global

presence in the rural sector an# it can be sai# that all the F:C; companies shoul# target

the rural sector.

(ome F:C;s pro#ucts like toothpaste! hair oil an# other like shampoos have #one much

better in the rural areas than the urban an# the semi urban areas. "t has been a

phenomenon that the sales of many companies have gone upE Coca9Cola! )estle an#

;o#rej too have also reporte# better sales in rural areas.

$he retail sector has a huge potential for groth as a stu#y shos that opportunities in

rural retail sector ere estimate# to be over / billion in the year 2


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electronic appliance to automobiles. "n#ian Oil is planning to invest 145.1< in the rural

areas #uring the financial year 2


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O*"ECTI;E


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O*"ECTI;E

8$ny task 9ithout sound ojectives is like Tree 9ithout roots8. (imilarly in case of any

research stu#y un#ertaken! initially the objectives of the same are #etermine# an#

accor#ingly the further steps are taken on. , research stu#y may have many objectives

but all these objectives revolve aroun# one major objective hich is the focus of the

stu#y. "n this stu#y! the focus is on the emergence of 6ural markets as the most

happening market on hich every marketer has an eye. ,n# so this stu#y ill be base#

on stu#ying the emergence of rural market in various conte&ts.

$he folloing are the objectives of this research stu#y -9

$o stu#y the emergence of 6ural markets in the conte&t of "n#ia.

$o stu#y the present scenario of rural marketing in "n#ia.

$o stu#y the future prospects of rural markets an# their scope for the :)Cs an#

"n#ian companies! in "n#ia.

$o stu#y the challenges face# by rural marketers in "n#ia.

$o stu#y the reasons of popularity of rural markets in "n#ia.

$o measure the success of rural marketing campaign of fe bran#s in $erms of

consumer appreciation. $o stu#y the #eterminants of specification factors hich can #eci#e the success the

rural promotion strategy.

$o evaluate the effects of a#opting the specific bran# ambassa#ors in the rural

marketing conte&t.

.


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C#$pter -

RESEARCH

METHODOLOG:

! DESIGN

RESEARCH METHODOLOG:


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RESEARCH METHODOLOG:

6esearch :etho#ology is a ay to systematically solve the research problem. "n it e stu#ythe various steps that are generally a#opte# by a researcher in stu#ying his research problemalong ith logic behin# them.

T:PE OF RESEARCH

$o (tu#y on emerging tren# in mo#ern retail formatR. " have gone through various nespapers! maga'ines! ebsites an# collecte# information an# #ata. ,n# my stu#y base# one&ploratory research.

DATA COLLECTION 9

"n #ata collection metho# e shall collect the secon#ary #ata from the folloing sources.)es paper:aga'ine"nternet

PARAMETERS OF RESEARCH

Business process(ervice

(atisfaction

RESEARCH DESIGN 9

$he stu#y is a cross sectional stu#y because the #ata ere collecte# from many sourceKs. Forthe purpose of present stu#y a relate# sample of population as selecte# on the basis of

convenience.RESEARCH INSTRUMENT9

$his ork as carrie# out through (econ#ary #ata base#.

TOOLS TO *E USED9

:( 8&cel

:( or#


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C#$pter 1

RESEARCH

FINDINGS

FINDINGS


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$here are very big opportunity in rural market thatKs hy many big giants are move to

rural market .they ma#e serious efforts to tap the potential !initially! innovation ere

confine# to pro#uct or services offering! or to packaging >(Hs?!price >point? an#

communication strategy by bran#s.

Companies are concentrate# on lo cost pro#uct

6s pro#uct are very famous in rural market

$hey use communication in local me#ium > folk me#ia !haats!melas?

$hey make small si'e @%uantity pro#ucts for rural "n#ia

$here are a change in rural people lifestyle.

6ural peoples are aare ith urban market.

0ots of job opportunities are coming in rural market.

;roth of employment .

6ural people are aare ith information technology ith help of these

Companies.

Farmers are benefite# ith "$C 8 +chupal I ;o#rej ,a#har I hul shakti .

"ncrease the pro#uctivity of rural "n#ia.


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C#$pter 2

CONCLUSION


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CONCLUSION

:arketers make consistent attempt to innovate tools an# strategy to overcome the

challenges they face in the business arena .business innovation are broa#ly classifie#

un#er to hea#s !namely pro#uct@service innovation an# process innovation .marketers

nee# to #esign creative solution to overcome challenges typical of the rural environment

such as physical #istribution channel management an# promotion an# communication.Corporate "n#ia an# govement bo#ies alike have ma#e several efforts to bri#ge the gap

beteen rural an# urban "n#ia .the "C$9#rive value chain an# the organi'e# retail format

have been foun# to be the best innovation for rural "n#ia.

"$C e9Choupal! ;o#rej ,a#har I DH0 (hakti! an innovative strategy hich is

elaborative an# e&tensive in rural markets so far. Critical factors in the apparent success

of the venture are they provi#e e&tensive knole#ge of agriculture! the I has ma#e to

retain many aspects of the e&isting pro#uction system! inclu#ing retaining the integral

importance of local partners! the companies commitment to transparency! an# the respect

an# fairness ith hich both farmers an# local partners are treate#.

$he concepts! hich are becoming more important in every market! inclu#e color!

pro#uct attractiveness visibility! an# #isplay %uality. "n a##ition! availability >meeting


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local #eman# by increasing pro#uction locally?! acceptability >buil#ing bran# e%uity?! an#

affor#ability >pricing higher than local bran#s! but a#apting to local con#itions? are the

key factors.

C#$pter 3

LIMITATIONS


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LIMITATIONS

Pro@/e4. re/$te' to rr$/ 4$r+etn

Barter system.

Hn#er#evelope# people an# un#er#evelope# markets

0ack of proper physical communication facilities.

:any language an# =ialects.

=isperse# population an# tra#e.

Poor roa# connectivity.


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poor availability of #ealers.

lo #estiny of shops per village an# high variation in their concentration.

poor storage system!lea#ing to ina#e%uate stocking .

"na#e%uate :e#ia coverage for rural communication.

Dighly cre#it #riven market an# lo investment capacity of retailers.

C#$pter 5

SUGGESTION


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SUGGESTION

PRICING

Pricing is the major element for rural marketing so cheaper price pro#uct are affor#able

for rural people.

IMPRO;EMENT IN TECHNOLOG:

$echnology is the major part of the rural area ithout nothing is possible

through me#ia an# electrification e improve the lifestyle of rural people.

MAINTAIN THE UALIT: STANDARD

Yuality stan#ar# is also very important part of rural market because some people are

%uality oriente# customer.

ESTA*LISHMENT OF DISTRI*UTION CHANNELS

6ural market certainly offer a big attraction to marketers! it oul# be naZve to think that

any company can enter the market ithout facing any problem an# alk aay ith

si'able share .but there are large number of small marketers .

:ake a goo# #istribution channel.

Hn#er#evelope# people an# un#er#evelope# markets

0ack of proper physical communication facilities so traine# people.

:ake an opinion lea#er for every village.


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"ncrease the communication strategy in villages

:any language an# =ialects

:ake the i#ol #istribution channel in the villages .

"mprove the electrification in the villages.

Provi#e the training program for rural people.

:otivate to increase investment capacity of retailers.

REFERENCES


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*I*LIOGRAPH:

*OOKS9

:arketing 6esearch + Paneerselvam

6esearch :etho#ology + C.6 othari

Principles of :arketing + Philip otler

6ural :arketing 9Pra#eep kashyap

WE* RESOURCES-

&o'rej&co4

&oo/e&co4

/&co&n

.itcportal.com

MAGA>INE9

Outlook 8&press

Business to#ay

:oney Outlook

NEWS PAPER9

Business stan#ar#


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T4e. o6 In'$

8conomic times

130700095 Hul Shakti Project Report

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