UNIVERSITY OF MUMBAI

This is to certify that Mr.Yaditya Badriprasad Chaurasiya of Bachelor of.

Management Studies undertaken and completed the project work titled.

“Project Report On Rural Marketing In The Case Of ITC”

Submitted In For Partial Fulfillment For Award Of The Degree Of

Bachelor Of Management Studies

Under The Faculty Of Commerce

By

CHAURASIYA YADITYA BADRIPRASAD

(ROLL NO – 1038)
UNDER THE GUIDANCE OF

Prof. VEENITA KAMBLE

NCRDS STERLING COLLEGE OF ARTS, COMMERCE & SCIENCE

Plot no 43,Sector -19, D.G. Walse Patil Marg, Nerul (E), Navi Mumbai
-400706

1
 National Centre for Rural Development's

Sterling College of Arts, Commerce & Science

Affiliated to University of Mumbai & Approved by Govt. of

Maharashtra
CERTIFICATE

This is to certify that Mr. CHAURASIYA YADITYA BADRIPRASAD of Bachelor of Management has
undertaken and completed the project work titled

"Project Report On Rural Marketing In The Case Of ITC"

During the academic year 2024 - 2025 under the guidance of Prof. VEENITA KAMBLE submitted
on_________
to this college in fulfilment of the curriculum of Bachelor of Commerce University of Mumbai.

This is a bonafide project work and the information presented is true and original to the best of our
knowledge and belief.

PROJECT GUIDE COURSE CO-

ORDINATOR

(_______________________) (____________________)

PRINCIPAL EXTERNAL GUIDE

Plot No. 43, Sector - 19, D.G. WalsePatilMarg, Nerul (E), Navi Mumbai - 400 706,
Maharashtra Tel. No. 022-27705535, 022-27708059,

2
website: sterlingcollege.edu.in

Declaration By Learner

I Mr. YADITYA BADRIPRASAD CHAURASIYA of NCRD STERLING COLLEGE OF ARTS

COMMERCE AND SCIENCE, studying in BMS

(Semester-VI) here by, declare that I have complete this project report on

“Project Report On Rural Marketing In The Case Of ITC”

And has not been submitted to any other University of Institute for the award
of any degree, diploma, etc. The information is submitted by me is true and
original to the best of my knowledge.

Date:

Place: Nerul, Navi Mumbai

_________________________

YADITYA BADRIPRASAD CHAURASIYA

3
 ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous and the depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project. I take this opportunity to thank the University of Mumbai for giving me
chance to do this project.

I would like to thank my principal, Dr. K. Ravi varma for providing the necessary facilities
required for completion of this project.

I would also like to express my sincere gratitude towards my project guide prof. veenita hose guidance
and care made the project successful.

I would like to thank my college library, for having providing various reference books and magazines
related to my project.

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 INDEX

SR.NO TABLE OF CONTENTS Pg. no.

1. Chapter-1 8 - 22
Introduction

2. Chapter-2 23 - 26
Research Methodology

3. Chapter-3 27 – 30
Literature Review

4. Chapter-4 31 – 42
Data Analysis and Interpretation

5. Chapter-5 43 – 45
Findings and Suggestions

6. Chapter-6 45
Conclusion

7. Chapter-7 46 - 51
Bibliography

5
 EXECUTIVE SUMMARY

6
 In country over 60% of the total population live in villages. There are states like U.P, M.P,
Bihar, Rajasthan, and Odessa where rural population varies from 80 to 90 per cent. Agriculture
and agriculture related activities contribute to about 75% of the income in rural areas. The
general impression is that the rural markets have potential only for agricultural inputs like seeds,
fertilizers and pesticides, cattle feed, and agricultural machinery. More than 40% of the national
income is generated in rural India and there are opportunities to market modern goods and
services in rural areas and market agricultural products in urban areas.

While rural markets offer big attractions to the marketers, it is not easy to enter the market
and take a sizeable share of the market within a short period. This is due to low literacy, low
income, seasonal demand and problems with regards to transportation, communication and
distribution channel. Further there are diverse groups based on religion, caste, education, income
and age. There is a need to understand the rural markets in terms of buyer behavior, attitudes,
beliefs and aspirations of people.

Today in 21 century e-business & e-commerce initiative have become popular, but it may be
rather difficult to think of poor illiterate farmer in dusty villages of India making e-business as a
part of their daily lives.

In India about 60% proportion of farmers are illiterate & not aware of the existence of
computer, let alone the internet & e-business. However large number of illiterate farmers conducted
e-commerce transactions easily in the year of 2002 with the help of innovative & revolutionizing
concept of e- Choupal which was introduced by ITC Ltd.
e-Choupal is an initiative of ITC Limited, a conglomerate in India, to link directly with
rural farmers via the Internet for procurement of agricultural and aquaculture products like
soybeans, wheat, coffee, and prawns for exports. e-Choupal tackles the challenges posed by
Indian agriculture, characterized by fragmented farms, weak infrastructure and the
involvement of intermediaries. The programme installs computers with Internet access in rural
areas of India to offer farmers up-to-date marketing and agricultural information. There are
6,100 e-Choupals in operation in 35,000 villages in 10 states (Madhya Pradesh, Haryana,
Uttarakhand, Uttar Pradesh, Rajasthan, Karnataka, Kerala, Maharashtra, Andhra Pradesh
and Tamil Nadu), affecting around 4 million farmers.

ITC Limited kiosk with Internet access is run by a sanchalak — a trained farmer. The
computer is housed in the sanchalak's house and is linked to the Internet via phone lines or by a

7
 VSAT connection. Each installation 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
a service fee for the etransactions done through his e-Choupal. The warehouse hub is managed by
the same traditional middlemen, now called samyojaks, but with no exploitative power due to the
reorganization.

Since the introduction of e-Choupal services, farmers have seen a rise in their income
levels because of a rise in yields, improvement in quality of output, and a fall in transaction
costs. Even small farmers have gained from the initiative. Farmers can get real-time information
despite their physical distance from the mandis. The system saves procurement costs for ITC
Limited. The farmers do not pay for the information and knowledge they get from e-Choupals;
the principle is to inform, empower and compete.

ITC has claimed many headlines in recent times for its foray in FMCG and packaged foods
business to spruce up its tobacco-laden brand imagery and create new growth areas. But what
gave it more brownie points than these initiatives, has been its well itched-out rural foray with e-
choupal and choupal Saagar.

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 CHAPTER 1
INTRODUCTION
Gone are the days when a rural consumer had to travel to nearby city to purchase
branded
products due to scarcity of products in the rural market. Time was when only a few selected
households consumed branded goods were present in the market. Today the rural markets are
critical for every marketer – be it a branded shampoo or an automobile. Companies have realized
this enormous opportunity and are largely tuning their strategies to woo the rural clan through their
products and services.

Is going rural that simple? A number of today’s marketers who believe that consumers in the
rural market are less demanding and can be easily satisfied are in for a rude shock. It is high time
that these marketers realize that an indiscriminate marketing strategy, a replication of that used for
the urban customer, will not work with his rural counterpart. The latter have a different set of
priorities, which necessitates a different approach, both in terms of developing appropriate
products to suit them and using appropriate communication strategies, which they will comprehend
better.

There is a debate in some quarters that the rural market is mature enough to understand
communication developed for urban markets, especially in the case of FMCGs. This is partly true, if the
communication is such that it makes the product in a simple and easy-to-understand style.

It is also true that the section of rural society, which is exposed to urban lifestyles because
of employment, is beginning to appreciate and understand all types of communication aimed at it.
But they are in small numbers and the vast majority of rural folks, even today, cannot
understand clever communication.

What to communicate and how to communicate to the rural audience is a subject which
must be understood clearly before any attempt to develop a communication package aimed at
them is undertaken.

9
 “Real India lies in Rural India”, ‘India is a land of‘ villages’, ‘Rural economy is the backbone
of the Indian economy’, ‘India lies in its villages’, etc., are the perpetual and common slogans.
India is predominantly an Agricultural Economy, and the rural markets hold immense potentials
for any company to expand.

Thus, the next word after “expanding sales” today is “targeting the rural markets”. Also,
intensified competitions in the urban markets have resulted in increase in costs but not higher
market share and profits. This has resulted in change of focus by a host of organizations. Thus,
rural bazaars are becoming more important than urban markets and many organizations have
realized that in a host of product classes the winners of tomorrow are going to be those who focus
on rural India. Industrial giants and other savvy small to medium firms are awakening to the
potential of India’s jackpot rural market of nearly 900 million consumers, more than thrice the
population of the USA. It has thus become very necessary to study the rural markets because this
market, which is mostly underestimated, is drastically changing.

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 BACKGROUND OF RURAL MARKETING

It was in the late 1960s and 1970s that rural marketing became a topic of general
discussion. The Green Revolution and the consequent pockets of rural prosperity that appeared
on its wake awakened many manufacturers to the new purchasing power. The NCAER’s Market
Information Survey of Households (MISH) shows that the 1980’s saw a rapid improvement in the
distribution of income in the rural as compared with urban India. In 1989-90, the number of
households with income over Rs. 25,000/- per annum as 9 million (around 50 million people), and
above Rs. 12,500 per annum was 35 million households (around 160 million people).

However, aggressive Rural Marketing is not a recent activity. With the Green Revolution,
companies like Siemens with a package of products for water drilling marketers of fertilizers,
pesticides, seeds, bicycles, etc., were followed by manufacturers of motorcycles, and many others
who took their products to the rural consumers.

Earlier, consumers who were illiterate or unable to read English created symbols to identify
their favorite products-Red Soap for Lifebuoy, Palm tree for Dalda, etc. Manufacturers now began to
deliberately build symbols and colors into their products to enable identification of their brands.

Nineties was a phase when the advocates of rural marketing convinced corporate India that
villages were big, this decade is differentiating between companies that can unlock the potential of
the rural market and those that cannot.

Today rural population is 909,384,771, while that of urban India is 498,179,071 (Census of
India 2021).The rural population has been dependent primarily on agriculture as their main source of
income. However, after 75 years of independence, and the advent of industrialization, the agriculturally
skewed income of rural India is steadily normalizing. Horticulture and fishery are also fast becoming
income- generating activities in rural India.

WHAT IS RURAL MARKETING?

‘Rural marketing is a process of developing, pricing, promoting, distributing rural

11
 specific goods and services leading to exchanges between urban and rural markets, which satisfies
consumer demand and also achieves organizational objectives.’

“Rural Marketing is a two-way process which encompasses the discharge of business activities
that direct the flow of goods from urban to rural areas (manufactured goods) and vice versa
(agriculture products) as also within the rural areas.”

URBAN TO RURAL (U 2 R)

A major part of rural marketing falls into this category. It includes the transactions of urban
marketers who sell their goods and services in rural areas. The following are some of the
important items, which are sold in rural areas and manufactured in urban areas: pesticides,
fertilizers, seeds, FMCG products, tractors, bicycles, consumer durables, etc.

URBAN RURAL

RURAL TO URBAN (R 2 U)

Transactions in this category basically fall under agricultural marketing where a rural producer
seeks to sell his produce in an urban market. An agent or a middleman plays a crucial role in the
marketing process. The following are some of the important items sold from the rural to urban
areas: seeds, fruits and vegetables, milk and related products, forest produce, spices, etc.

RURAL URBAN

RURAL TO RURAL (R 2 R)

This includes the activities that take place between two villages in close proximity to each
other. The transactions relate to the areas of expertise the village has. The items in this
category include agricultural tools, handicrafts and bullock carts, dress materials, etc.

12
 RURAL RURAL

13
 RURAL MARKETING ENVIRONMENT

❖ Untapped Potential

Rural markets offer an immense potential for marketing branded goods and services for two reasons:

→ The large number of consumers. A pointer to this is the larger volume of sales of certain
products in rural areas as compared to the sales of the same products in urban areas.

→ Largely untapped markets. The penetration levels for many products are low in rural areas.

❖ Market Size and Penetration

The estimated size of India’s rural market stated as the percentage of world population is 12 percent.
This means 12 percent of the world’s consumers live in rural India. In numbers, this works out to
about 120 million households. In India, the rural households form about 72 percent of the total
households.
This is a huge market by world standards.

Rural consumers own only 52 percent of available consumer durables, even though they form 72
percent of the total households in India. On an average, rural household own three consumer
durables as compared to seven consumer durables owned by an average urban household
(NCAER, 1998). The gap clearly indicates the untapped potential among the large number of
rural households.

❖ Increasing Income and Purchasing Power

The agricultural development programs of the government have helped to increase

income in the agricultural sector. These in turn have created greater purchasing power in rural
markets.
Households in the lower income group have reduced while there is a strong growth in the number of
households in upper middle- and higher-income households.

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 ❖ Accessibility of Markets

The attraction of a market depends not only on its potential but also on its accessibility. A market
that cannot be exploited is a case of “sour grapes”. Development of infrastructural facilities and
marketing institutions has increased the accessibility of these markets.

In the past, companies relied on a ‘trickle down of stocks to the buyer in interior villages
that resulted from the active participation of channel members. In this system, the village retailer
made fortnightly purchase visits to a bigger retailer in the nearest tehsil (sub-division of a
district) level town. The large retailer in the tehsil town procures goods from district
headquarters.
The district headquarters were therefore the terminal point of the company distribution channel.

Today, an increasing number of companies are supplying village markets directly. Increasing
direct contacts to villages helps product promotion and availability of the product in the village
shop. Marketers of durable goods use direct contacts to promote and attract rural consumers to
dealer points in large feeder villages or towns. Delivery- cum-promotion vans traversing 8 to 10
villages a day and covering huts or mandis, is the widely used method of direct control in rural
areas.

❖Competition in Urban Markets

Intensified competition in urban markets increases costs and reduces market share. The rural
markets are therefore increasingly attractive in relation to urban markets. The automobile market
brings this out clearly. Bajaj scooters or Ambassador Cars find ready acceptance in rural markets
as compared to urban markets where there is a “proliferation of brands”

❖ . Consumer Behavior Changes

Increased literacy and greater awareness in rural markets create new demands and discriminating
buyers. This is observed more in the younger generation. In villages today, this segment of buyers
consumes a large variety of products, both durables and non- durables.

15
 There is a visible increase in the consumption and use of a variety of products, which is easily
observed. The younger generations appears to seek variety and are more discriminating buyers.
The young adult in a village likes to sport a fashionable watch. The preferred brand of toilet soap
for the youth is not necessarily Lifebuoy, the brand preferred by the elders.
ITC COMPANY PROFILE

ITC is one of India's foremost private sector companies and a diversified conglomerate with
businesses spanning Fast Moving Consumer Goods, Hotels, Paperboards and Packaging, Agri
Business and Information Technology. The Company is acknowledged as one of India's most
valuable business corporations with a
Gross sales value of 90,104 crores and Net Profit of 15,058 crores (as on 31.03.2022). ITC was
ranked as India's most admired company, according to a survey conducted by Fortune India, in
association with Hay Group.

ITC is the country's leading FMCG marketer, the clear market leader in the
Indian Paperboard and Packaging industry, a globally acknowledged pioneer in farmer
empowerment through its wide-reaching Agri Business, a pre-eminent hotel chain in India
that is a trailblazer in 'Responsible Luxury'. ITC's wholly-owned subsidiary, ITC Infotech,
is a specialized global digital solutions provider.
Over the last decade, ITC's new Consumer Goods Businesses have established a vibrant
portfolio of 25 world- class Indian brands that create and retain value in India. ITC's world class
FMCG brands including Aashirvaad, Sunfeast, Yippee!, Bingo!, B Natural, ITC Master Chef,
Fabelle, Sunbean, Fiama, Engage, Vivel, Savlon, Classmate, Paperkraft, Mangaldeep, Aim and
others have garnered encouraging consumer franchise within a short span of time. While several
of these brands are market leaders in their segments, others are making appreciable progress.
As one of India's most valuable and respected corporations, ITC is widely perceived to be
dedicatedly nation-oriented. Chairman Sanjiv Puri calls this source of inspiration "a commitment
beyond the market". In his own words: "ITC believes that its aspiration to create enduring value
for the nation provides the motive force to sustain growing shareholder value. ITC practices this
philosophy by not only driving each of its businesses towards international competitiveness but by
also consciously contributing to enhancing the competitiveness of the Larger value chain of it is a
part.

16
 “ITC wants to create a high-quality low-cost fulfillment channel for rural India. The e-

Choupal was the first step in the last mile towards complete backward integration. But

it's also the first mile on a new information highway around which multiple suppliers

and buyers can converge. It is transformational in its implications and can make a

huge contribution towards rural well being."

- Sanjiv Puri, Chairman, ITC.

ITC's diversified status originates from its corporate strategy aimed at

creating multiple drivers of growth anchored on its time-tested core competencies:
unmatched distribution reach, superior brand-building capabilities, effective
supply chain management and acknowledged service skills in hoteliering. Over
time, the strategic forays into new businesses are expected to garner a significant
share of these emerging high-growth markets in India. ITC's Agri-Business is one
of India's largest exporters of agricultural products. ITC is one of the country's
biggest foreign exchange earners (US $
billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian
agriculture significantly enhance its competitiveness by empowering Indian farmers
through the power of the Internet. This transformational strategy, which has already
become the subject matter of a case study at Harvard Business School, is expected to
progressively create for ITC a huge rural distribution infrastructure, significantly
enhancing the Company's marketing reach.

ITC employs over 20,000 people at more than 60 locations across India. Ranked
among India's most valuable companies by the 'Business Today' magazine, ITC continuously
endeavors to enhance its wealth generating capabilities in a globalizing environment to
consistently reward more than 4,67,000 shareholders, fulfill the aspirations of its
stakeholders and meet societal expectations. This over-arching vision of the company is
expressively captured in its corporate positioning statement: "Enduring Value. For the
nation. For the Shareholder."

17
 ARKETING MIX OF ITC

The marketing mix is one of the various marketing techniques that are used by
companies. Companies use it to promote their product or brand in a market
that reaches out to a targeted audience. The main focus of the marketing mix
are 4Ps, i.e. product, price, promotion, and place. By using this technique
businesses can expand their name and products in the market.

1. Price Strategy of ITC

ITC being a multi-industry company has a variety of products in the market.

Therefore, a different pricing strategy is followed for each product.

Keeping in consideration that India is home to many middle-class families ITC uses
a reasonable pricing policy for consumer products so that by selling products at
reasonable rates the company can generate maximum profit. ITC being a multi-
industry company also owns hotels, for that, it has adopted a premium pricing
policy.

For example, the company launched yippee with basic pricing which is
affordable, hence it became an alternative to maggie. This shows how smartly the
company has set reasonable prices to deliver it to a larger segment.

ITC has a dynamic portfolio with numerous products in the market which contributes
most to its business.

2. Product Strategy of ITC

Here’s a list of the brands with various products offered by ITC in different
industries.

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 ❖ In the food industry: Products offered by ITC includes
FMCG i.e. (Fast Moving Consumer Goods) such as biscuits,
cakes, noodles, candies, spices, juice, etc.

❖ In personal care: ITC also offers personal and hygiene care products such as
soaps, shower gels, perfumes, shampoos, and much more.
❖ In the education industry: ITC is also a well-established brand when it comes

to stationery products such as pens, pencils, notebooks, erasers, math

instruments, art, pencil sharpeners, etc.

❖ Apart from the above-mentioned products and brands, ITC is a market-

leading company in cigarettes.

❖ They also have a lifestyle, infotech, and luxury hotels in India.

3. Place Strategy of ITC

ITC has a strong and diverse distribution channel so that its product is accessible in
every retail shop and remote area in India. Their product is available in more than
4 million retail stores in India. It has a strong distribution network and logistics
facility. The company has around 60 dealers and several manufacturing units in
India. Their network has expanded to almost 60 places across India. Its products
are sold in various countries worldwide, such as Australia, North America, Africa,
and the Middle east.

4. Promotion Strategy of ITC

ITC Uses different platforms such as television, radio, and print to promote its
product as a part of the marketing mix. As it has so many different sub-brands,
different brand ambassadors are required by ITC to promote each brand. Kartik
Aryan and Tara Sutaria are brand ambassadors of ITC’s“ Engage”. To advertise
its products, ITC has used a variety of promotional activities, such as ad campaigns
shown on well-known television channels, and hoardings are also used to promote
its brand. Keeping Indian farmers in consideration ITC has launched an e-choupal

19
 program which has solved various problems faced by the farmers, the company is
planning to expand the program to 15 states across India, over the following

20
 ITC TRIPLE BOTTOM LINE CONTRIBUTION

21
22
ITC AGRI BUSINESS

ITC's pre-eminent position as one of India's leading corporates in the agricultural sector is
based on strong and enduring farmer partnerships that has revolutionized and transformed the
rural agricultural sector. A unique rural digital infrastructure network, coupled with deep
understanding of agricultural practices and intensive research, has built a competitive and
efficient supply chain that creates and delivers immense value across the agricultural value
chain. One of the largest exporters of agri products from the country, ITC sources the finest of
Indian Feed Ingredients, Food Grains, Marine Products, Processed Fruits & Coffee.

ITC's Agri Business is the country's second largest exporter of agri-products. It

currently focuses on exports and domestic trading of:

Feed Ingredients - Soyameal

Food Grains - Wheat & Wheat Flour, Rice, Pulses, Barley & Maize

Marine Products - Shrimps and Prawns

Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits, Organic Fruit

Products.

Coffee

ITC Agri Business is one of the leading domestic players and exporters of numerous agricultural
commodities. It works with farmers to improve the productivity and quality of various crops and
sources the finest of Grains, Oil Seeds, Pulses and a range of value- added agri products such as
Processed Fruits, Coffee and Shrimps across multiple geographies in India. The business deploys
customized infrastructure and technology to supply these products to discerning customers in
India and over 60 markets worldwide.

23
 Farm -to-Fork Leadership

ITC has developed sustainable and inclusive value chains which enables the
Company to make a large & growing contribution to the twin priority sectors of
the economy, namely, Agriculture and Food Processing

24
 CHAPTER 2

RESEARCH METHODOLOGY
Research will comprise defining and redefining problems, formulating hypothesis or suggested
solutions, collecting, organizing and evaluating data; making deductions and reaching conclusions and at
last carefully testing the conclusions to determine whether they fit the formulating. In short, the search for
Knowledge through Objective and Systematic method of finding solutions to a problem is Research.

SAMPLE SIZE AND SAMPLING TECHNIQUES

The number of items selected from the universe to represent the universe is called size of the
sample. So for the purpose of this study, a total of 50 respondents will be approached. The sampling
technique used for the study will be convenience sampling.

DATA COLLECTION

For the study, both primary and secondary data will be collected. For primary data, a
questionnaire can be developed and administered to the farmers who have worked with ITC on Agri
Business Program in Maharashtra by the way of interview method. For secondary data, existing literature
in form of magazines, papers, company literature, book, web sources will be consulted.

QUESTIONNAIRE

For conducting a survey on ITC Agri Business, a structured questionnaire with multiple choices
related to overall experience with ITC’s Program, their problems related to program will be asked. The
questionnaire will be administered using inter
LIMITATIONS

The main source of data was from websites and the data on the websites may not have been updated.

Sample size was too small to show an actual representation of the situation.

25
 ❖ I will have to rely on the information given by respondents, which may or may not be true.

❖ The respondent may not have proper awareness about the topic of the survey

❖ The study was only limited to Maharashtra.

❖ The respondent may be in a hurry and answered the survey without thinking properly.

❖ It is only for a short period of time.

❖ Lack of professional approach since the researcher is a student.

❖ No proper assurance of right information.

OBJECTIVES OF THE STUDY

❖ To study the rural market current scenario in India.

❖ To study rural marketing strategies
❖ To understand the limitations and challenges of rural marketing

THE SCOPE OF STUDY

The scope of study for the “Project Report On Rural Marketing In The Case Of ITC” includes:

 Understanding Rural Marketing – Examining the concept, challenges, and opportunities of rural
marketing in India.
 Case Study of ITC – Focusing on ITC’s rural marketing strategies, specifically through its e-
Choupal initiative.
 Impact on Farmers – Analyzing how ITC’s agribusiness programs have affected farmers’ crop
yields, quality, income, and access to markets.
 Marketing Strategies – Studying ITC’s marketing mix (Product, Price, Place, Promotion) and its
approach to reaching rural consumers.

26
  Research Methodology – Using surveys and questionnaires to gather primary data from farmers
associated with ITC’s programs.
 Challenges and Solutions – Identifying key issues faced in rural marketing and proposing strategies
to improve ITC’s impact.

DATA COLLECTION

❖ Source of data collection are both primary data and secondary data.
❖ Primary data is collected through questionnaire method in the forms of yes or no and also by giving
some choice.
❖ Secondary data is collected through websites, books ets.

27
 CHAPTER 3
LITERATURE REVIEW
Several studies have been conducted to analyze different aspects of rural marketing, exchange rate risk
management, and financial strategies for businesses. Various researchers have explored how businesses
adopt strategies to overcome financial risks, rural market challenges, and the importance of adapting
marketing approaches to rural consumers.

V. V. Devi Prasad Kotni (2012) examined the prospects and challenges of Indian rural markets. The study
emphasized the crucial role of government in addressing rural market issues. It highlighted the necessity
for infrastructure development, effective implementation of regulations, and safeguarding consumer
interests through strong policies.

Aditi Naidu (2017) discussed the “4 As” of rural marketing—Acceptance, Affordability, Awareness, and
Accessibility—as the fundamental pillars guiding rural marketers. The study emphasized that businesses
must offer customized products that align with rural consumer needs, ensuring they provide value for
money while being user-friendly and feature-rich.

Dr. Ashfaque Ahmed (2013) analyzed the challenges and strategies for selling products and services in rural
markets. The study found that rural consumers are highly price-sensitive. However, rather than budget
constraints, the major challenge is cash flow issues, as rural incomes are seasonal. The study suggested that
companies introduce financial schemes tailored to the purchasing power and payment cycles of rural
customers.

Manpreet Kaur (2013) highlighted Hindustan Unilever Limited (HUL) as the pioneer in Indian rural
marketing. The study explored the initiatives undertaken by HUL to penetrate the rural segment, including
innovative distribution techniques, digital mapping, and leveraging improved road infrastructure. The
research also noted that the increasing reach of television in rural areas significantly impacts rural
marketing strategies.

Anil Kumar S. Hagargi (2011) identified key challenges faced by companies in rural markets, including
understanding rural consumer behavior, establishing effective distribution networks, and developing
efficient communication strategies. The study recommended that businesses incorporate innovative
marketing and distribution techniques to maximize profitability and market share.

28
Dr. S. Nadarajan & M. Josephin Rangith (2018) conducted a SWOT analysis of rural marketing,
highlighting the differences between strengths, weaknesses, opportunities, and threats that affect rural
businesses. The study concluded that a deeper understanding of rural market dynamics enables companies
to develop better marketing strategies and expand their reach.

P. Sandhya Rani (2016) explored the untapped potential of rural markets and their evolving nature. The
study emphasized that companies must adapt their marketing strategies to address the specific needs and
challenges of rural consumers, including distribution barriers, lack of brand awareness, and affordability
concerns.

Bhavika Pandita Hakhroo (2020) stated that rural markets are undergoing rapid transformation and that
businesses must embrace innovation to succeed in these areas. The study emphasized the importance of
establishing strong connections with rural consumers and developing products tailored to their specific
needs.

Modi (2009) examined the evolution of rural marketing, noting that post-liberalization policies encouraged
businesses to explore the rural sector. The study stated that rural marketing is no longer just about
distributing products to rural consumers; rather, it is a strategic business approach that aims to uplift rural
communities and enhance economic conditions.

Pawan Kumar & Neha Dangi (2013) explored the historical development of rural marketing in India. The
research categorized the evolution into three phases:

1. Before the 1960s – Rural marketing was primarily agricultural marketing, focusing on the sale of farm
produce.

2. 1960–1990 – The Green Revolution improved agricultural productivity, creating a shift in rural
consumerism.

3. Post-1990s – Rural marketing evolved into a structured business model, with companies recognizing the
commercial viability of rural consumers.

The study concluded that the rising internet penetration in rural areas is revolutionizing consumer
behavior, creating new opportunities for businesses. However, challenges such as poor infrastructure,
inadequate product storage, and high transportation costs continue to hinder market expansion.

29
Vaswani, Aithal & Pradhan (2005) discussed the challenges of multinational corporations entering rural
markets. The study emphasized that misunderstanding rural consumer behavior and treating rural
markets as extensions of urban markets often lead to failures. It recommended that businesses develop
strategic rural-urban linkages to maximize their success.

Sharma (2013) identified key factors driving the growth of rural markets, including rising literacy levels,
increasing awareness among rural consumers, and better infrastructure development. The study stressed
the need for regional language marketing campaigns to enhance communication with rural audiences.

Rani & Shrivastav (2014) explored the importance of demonstration-based marketing in rural areas. The
study found that product awareness and hands-on experience significantly influence rural consumers’
purchasing decisions. It suggested that companies use mobile vans and on-ground sales teams to improve
product accessibility in remote locations.

Nadarajan & Rangith (2018) conducted a SWOT analysis of rural marketing in southern Tamil Nadu,
India. The study found that personalized marketing efforts were among the biggest strengths, while
logistical challenges and a lack of rural-specific marketing strategies were major weaknesses.

Kumar P. (2013) emphasized that rural consumers are highly diverse and that marketing strategies must
align with their unique consumption patterns. The study highlighted government initiatives aimed at
improving rural infrastructure, which are creating new business opportunities. It also noted that digital
connectivity and increasing smartphone penetration are transforming rural marketing dynamics.

Overall, these studies highlight the significant opportunities and challenges in rural marketing. Companies
that understand rural consumer behavior, adopt localized marketing strategies, and leverage technology
are likely to succeed in the evolving rural landscape.

30
 CHAPTER 4
DATA ANALYSIS AND INTERPRETAION

Q1. How has ITC's Agri business impacted your crop yields?

13.4
3.7

82.9

Increased Decreased Stayed the same

Interpretation

As the above data shows that almost 83% of farmers have said that they have seen that the
ITC’s Agri business program has impacted the crop yields in a positive way. The farmers who
have partnered with ITC's Agri business have reported an increase in their crop yields. This is due
to the company's focus on providing quality inputs, training, and technical support to farmers.
Q2. How has the quality of your crops changed since partnering with ITC's Agri business?

31
 3 5.7

91.3

Increased Decreased Stayed the same

Interpretation

Astheabovedatashowsthatalmost91.3%offarmershavesaid that they have seen that the ITC’s Agri

business program has Increased the quality of the yield they produce which helps them get better
profits and more value for their produce . The quality of crops has improved since partnering with
ITC's Agri business. The company provides access to quality inputs and technical support to help
farmers improve their farming practices and produce better quality crops. As the company provides
weather forecast and reports on soil to farmers so the farmers are aware of which crops, they should
grow according to SSthe weather and the fertility of the soil.
Q3. Have you participated in any training programs offered by ITC's Agri business?

32
 30
70

Yes No

Interpretation

Yes, many farmers have participated in training programs offered by ITC's Agri business
under its ITC's Sustainable Agriculture Practices .ITC's Sustainable Agriculture Practices
Program is designed to assist such small farmers to cope with the challenges of less yield due to
poor rain. Demonstration plots and farmer field schools in villages give them information and
practical training on climate smart farming practices and technologies, e.g. waters a Wing
irrigation devices, organic pesticides and fertilizers, mechanization appropriate for small plots,
etc.
The intervention shelp farmers to conserve and manage soil and water resources, improve
crop yields and reduce cultivation costs -leading to higher incomes and fewer incidences of crop
failure, making farming less risky and a more sustainable livelihood now and in the future.
Q4. In your opinion, what is the biggest benefit of partnering with ITC's Agri business?

33
 27.9 32.6

20.9 18.6

Access to Quality Inputs Training Opportunities

Better Prices for the product Improved Marketability of the
product

Interpretation

Through the above data we can see that almost through all the services the farmers have benefitted
equally but the service which helped them the most is Access to Quality Inputs for farming.ITC aims at
providing farmers with various types of services to help them get better yields and overall better profit.

The biggest benefit of partnering with ITC's Agri business is the access to quality inputs,
training opportunities, and improved marketability of produce. The company's focus on
sustainability and technology also helps farmers improve their farming practices and increase
their yields.
Q5. Would you recommend ITC's Agri business to other farmers in your community?

34
 6
15.3

78.7

Yes Unsure No

Interpretation

As the above data shows thatalmost78.7%of farmer shave said that they would like to recommend
the ITC’s Agri business program to other farmers as well who are not aware about this program.

Yes, many farmers would recommend ITC's Agri business to other farmers in their
community. The company's focus on sustainability and technology, coupled with its commitment
to providing quality inputs and training, has helped many farmers improve their yields and
profitability.
Q6.How would you rate the over all support provided by ITC's Agri business?

35
 27.3

5.9 54.5

12.3

Good Average Poor Excellent

Interpretation

ITC has helped the farmers to conserve and manage soil and water resources, improve crop
yields and reduce cultivation costs-leading to higher incomes and fewer incidences of crop failure,
making farming less risky and a more sustainable livelihood now and in the future.

Many farmers rate the overall support provided by ITC's Agri business as excellent and
good. The company's commitment to providing quality inputs, training, and technical support
has helped farmers improve their farming practices and increase their yields.
Q7. How is the attitude of the Sanchalak (ITC representative) towards you?

36
 2.3
9.1

29.5
59.1

Helpful Friendly Indifferent Negative

Interpretation

The Sanchalak is a lead farmer, who acts as the interface between the computer and the acts as
the interface between the computer and the farmer. He operates the computer on behalf of ITC,
but exclusively for farmers. The Sanchalak also known as the ‘Pratinidhi’ is the most important
link between the Sanyojak and the farmers.

Sanchalaks are required to take a public oath of serving their community without discrimination
and sign a social contract to spend a part of the income they earn from e- choupal on community
welfare. The Sanchalak accesses the in form ation and facilitates its dissemination to the farmers.

AstheSanchalakreceivecommissionbasedonhowmuchtheyhelpedthefarmers.So they give their best

to help the farmers.
Q8. Overall how would you rate the impact of ITC’s Agri Business on your farming operations and
your life as a farmer ?

37
 18.2

22.7 59.1

Somewhat Positive Neutral

Interpretation

About 59.1 percent of farmers said that ITC program have helped them in many positive ways and helped them
to come out of debt trap which earlier they had to face.

Earlier the farmers were exploited by the cartel of crop bidders who were paying them less than the actual value
of the crops in the market. But due to this program they are able to get more profits.

The impact of ITC's Agri business on farming operations and the life of a farmer has been very positive. It has
helped to increase crop yields and improve the quality of crops, as well as providing them with valuable market
information and training opportunities.

Q9. What are the challenges that ITC's Agribusiness helped you to overcome?

38
 11.4

18.2 40.9

29.5

Lack of information Unfair pieces for produce Weather forecast Poor soil

Interpretation

ITC's Agribusiness has helped farmers to overcome the challenges of low market prices lack of
information, Unfair prices and weather forecast of the next few days. By providing farmers with valuable
market information and training opportunities.

Farmers who were unaware about which crop is more suitable for their own land can now know by
the help of ITC. When the farmer goes to ITC Warehouse for selling their produce, they carry some soil
sample with them and ITC after doing some lab tests informs the farmers about which crop is more
suitable to their soil and which pesticides or insecticides they should use.

This has helped farmers to get more yields from their small plot of land.
Q10. How much percentage of your income has increased after ITC’s Agri Business program?

39
 11.4

40.9
18.2

29.5

10% -20% Around 50% Above 50% 30%

Interpretation

About 40.9 % of farmers believe that the income from the field has increased by about 10 – 20
percent ITC has helped to increase the income our country’s farmers manifolds through their
services and training. Their program has helped the farmers all over our country to get the proper
payment for their hard work. ITC also provides its farmers their own products at better prices
and discounts.
Q11. Do you use ITC products?

93

40
 Yes No

Interpretation

Most of the farmers have used ITC’s product before. There are still some farmers who have not
used any ITC’s product till now. Some of them have still not come in contact with ITC product which
can be due to living in rural areas which are farm from the urban areas and the products have still
not reached their market in rural area.

More focus on Rural marketing would help the company to reach more number of people in
rural areas. The competition now in the rural markets is increasing due to big companies entering
this market like the HUL ( Hindustan Unilever Ltd.).
Q12. Which product shave you purchased of ITC?

70
6 0
0
5
0 64.2
4
3 0

20
23.6
10
Foods
PersonalCare
Education

Incense Sticks

41
Interpretation

Through the above survey we can see that most of the farmers have purchased products of ITC in
different segments.

Food segment with the highest percentage which includes products like Aashirvaad, Bingo Sunfeast,
Fabelle, Sunbean, Yippee Kitchens of India, B Natural, ITC Master Chef, Farmland, mint-o, Candy
man and Gum On.

Personal Care segment which includes Fiama, Vivel, Engage, Savlon, Charmis, Shower to Shower,
Nimyle, Nimwash and Superia.

Education segment Classmate and Paper kraft.

CHAPTER 5
FINDINGS AND SUGGESTIONS
SUGGESTIONS

ITC can focus on creating a comprehensive and integrated rural marketing strategy to improve
the lives of farmers. Here are a few suggestions that can help:

1. Empowering farmers with knowledge: ITC can organize farmer training programs on modern
farming techniques, crop management practices, and sustainable agriculture. These training
programs can be conducted in partnership with local agricultural universities or institutes.

2. Supporting farmer cooperatives: ITC can support farmer cooperatives by providing them with
market linkages, technical support, and access to finance. This can help farmers get better
prices for their produce and also improve their bargaining power.

42
 3. Developing local supply chains: ITC can create local supply chains by partnering with farmers,
farmer cooperatives, and local businesses. This can help farmers get better access to markets
and reduce their dependence on middlemen.

4. Introducing innovative technologies: ITC can introduce innovative technologies such as mobile-
based apps that can help farmers with real-time information on weather conditions, crop
prices, and other relevant data.

5. Providing access to finance: ITC can provide farmers with access to finance by partnering with
local banks or setting up its own financial services. This can help farmers invest in better
farming practices and improve their overall income.
6. Focus on sustainability: ITC can focus on promoting sustainable farming practices by
encouraging the use of organic inputs, promoting conservation agriculture, and implementing
good agricultural practices. This can help farmers improve the quality of their produce, reduce
production costs, and protect the environment.

7. Facilitate access to inputs and services: ITC can facilitate farmers' access to high- quality seeds,
fertilizers, pesticides, and other inputs by establishing partnerships with input providers.
Additionally, ITC can provide extension services to farmers to ensure that they get the
necessary technical support and advice.

8. Promote value addition: ITC can promote value addition by setting up processing units or
supporting the establishment of processing units in rural areas. This can help farmers get better
prices for their produce and create employment opportunities in rural areas.

9. Focus on sustainability: ITC can focus on promoting sustainable farming practices by

encouraging the use of organic inputs, promoting conservation agriculture, and implementing
good agricultural practices. This can help farmers improve the quality of their produce, reduce
production costs, and protect the environment.

43
 10. Invest in research and development: ITC can invest in research and development to identify
and develop new technologies and practices that can help farmers improve their productivity,
increase their income, and reduce their vulnerability to risks such as climate change and pests.

By implementing these suggestions, ITC can not only improve the lives of farmers but also create a
sustainable and inclusive rural economy.

FINDINGS

❖ Most of the farmers have used ITC’s product before. There are still some farmers who have not
used any
ITC’s product till now. Some of them have still not come in contact with ITC product which can
be due to living in rural areas which are farm from the urban areas and the products have still
not reached their market in rural area.
❖ The farmer goes to ITC Warehouse for selling their produce, they carry some soil sample with
them and ITC after doing some lab tests informs the farmers about which crop is more suitable to
their soil and which pesticides or insecticides they should use.
❖ The impact of ITC's Agri business on farming operations and the life of a farmer has been very
positive. It has helped to increase crop yields and improve the quality of crops, as well as providing
them with valuable market information and training opportunities.
❖ Many farmers rate the overall support provided by ITC's Agri business as excellent and good. The
company's commitment to providing quality inputs, training, and technical support has helped
farmers improve their farming practices and increase their yields.
❖ The biggest benefit of partnering with ITC's Agri business is the access to quality inputs, training
opportunities, and improved marketability of produce. The company's focus on sustainability and
technology also helps farmers improve their farming practices and increase their yields.

44
 ❖ The intervention help farmers to conserve and manage soil and water resources, improve crop
yields and reduce cultivation costs -leading to higher incomes and fewer incidences of crop failure,
making farming less risky and a more sustainable livelihood now and in the future.

CHAPTER 6
CONCLUSION
Ultimately, the ball lies in the court of rural marketers. It's all about how one approaches the market,
takes up the challenge of selling products and concepts through innovative media design and more
importantly interactivity. So the fact remains that the rural market in India has great potential, which is
just waiting to be tapped. Progress has been made in this area by some, but there seems to be a long way
for marketers to go in order to derive and reap maximum benefits. Moreover, rural India is not so poor
as it used to be a decade or so back. Things are sure a changing. Thus looking at the challenges and the
opportunities which rural markets offer to the marketers it can be said that the future is very promising
for those who can understand the dynamics of rural markets and exploit them to their best advantage.

The e-Choupal model shows that a large corporation can combine a social mission and an ambitious
commercial venture; that it can play a major role in rationalizing markets and increasing the efficiency of
an agricultural system, and do so in ways that benefit farmers and rural communities as well as company
shareholders.

45
ITC’s example also shows the key role of information technology in this case provided and maintained by
a corporation, but used by local farmers in helping to bring about transparency, to increase access to
information, and to catalyze rural transformation, while enabling efficiencies and low cost distribution
that make the system profitable and sustainable.

Critical factors in the apparent success of the venture are ITC’s extensive knowledge of agriculture, the
effort ITC has made to retain many aspects of the existing production system, including retaining the
integral importance of local partners, the company’s commitment to transparency, and the respect and
fairness with which both farmers and local partners are treated.

CHAPTER 7
BIBLIOGRAPHY
❖ www.itcportal.com
❖ www.itcinfotech.com
❖ www.bbc.com
❖ ww.itcibd.com
❖ Times of India Article
❖ www.echoupal.com

46
 QUESSIONAIRE

Q1. How has ITC's Agri business impacted your crop yields?

☐ Increased
☐ Decreased
☐ Stayed The Same

Q2. How has the quality of your crops changed since partnering with ITC's Agri business?

☐ Increased
☐ Decreased
☐ Stayed The Same
Q3. Have you participated in any training programs offered by ITC's Agri business?

☐ Yes
☐ No

47
Q4. In your opinion, what is the biggest benefit of partnering with ITC's Agri business?

☐ Access to Quality Inputs

☐ Training Opportunities
☐ Better Prices for the product
☐ Improved Marketability of the product

Q5. Would you recommend ITC's Agri business to other farmers in your community?

☐ Yes
☐ No
☐ Unsure

Q6.How would you rate the over all support provided by ITC's Agri business?

☐ Good
☐ Average
☐ Poor
☐ Excellent

Q7. How is the attitude of the Sanchalak (ITC representative) towards you?

☐ Helpful
☐ Friendly
☐ Indifferent
☐ Negative

Q8. Overall how would you rate the impact of ITC’s Agri Business on your farming operations and

your life as a farmer ?

☐ Somewhat
☐ Positive
☐ Neutral

48
Q9. What are the challenges that ITC's Agribusiness helped you to overcome?

☐ Lack of information
☐ Unfair pieces for produce
☐ Weather forecast
☐ Poor soil

Q10. How much percentage of your income has increased after ITC’s Agri Business program?

☐ 10% -20%
☐ Around 50%
☐ Above 50%
☐ 30%

Q11. Do you use ITC products?

☐ Yes
☐ No

Q12. Which product shave you purchased of ITC?

☐ Food
☐ Education
☐ Personal Care
☐ Incense Stick

49