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PROJECT REOERT
ON
Opportunities & Challenge in Indian
Organized Retail sector for GLAMI
FOR
THE PARTIAL FULFILLMENT OF
BACHELOR OF BUSINESS ADMINISTRATION(BBA)
DEGREE COURSE OF H N B GARHWAL UNIVERSITYSRI,NAGAR
GARHWAL
SESSION-2010- 2013
SUBMITTED BY: SUBMITTED TO
SATWANT SINGH MR.ANUJ KUMAR
BBA 3 YEAR FACULTY, MANAGEMENT
MARKETING I M S-ROORKEE



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ACKNOWLEDGEMENT


An OWN A GREAT MANY THANKS TO A GREAT MANY PEOPLE WHO HELPES AND SUPPORTED ME
DURING THE WRITING OF THIS BOOK

MY DEEPEST THANKS TO LECTURER, MR. ANUJ KUMAR THE GUIDE OF THE PROJECT FOR GUIDING
AND CORRECTING VARIOUS DOCUMENTS OF MINE WITH ATTENTION. AND
CARE. HE HAS TAKEN PAIN TO GO THROUGH THE PROJECT AND MAKE NECESSARY CORRECTIONAS AND WHEN
NEEDED.
DEEP SENSE OF GRATITUDE TO MR. VINEET BALIYAN (MANAGING DIRECTOR),
GREEN LEND AGREE MARKETING INDIA PVT LTD SUPPORT AND
GUIDANCE.

I WOULD ALSO THANK MY INSTITUTION AND MY FACULTY MEMBERS WITHOUT WHOM THIS
PROJECT WOULD HAVE BEEN A DISTANT REALITY. I ALSO EXTEND MY HEARTFELT THANKS TO
MY FAMILY AND WELL WISHERS

With sincere thanks
SATWANT SINGH




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DECLARATION


IT IS HEREBY DECLARE THAT THE PROJECT REPORT ENTITLED OPPORTUNITIES & CHALLENGE IN
INDIAN ORGANIZED RETAIL SECTOR FOR GLAMI SUBMITTED FOR POST GRADUATE
DIPLOMA IN MANAGEMENT IS MY ORIGINAL WORK AND THE PROJECT REPORT HAS NOT FORMED THE BASIS
FOR THE AWARDED OF ANY DEGREE DIPLOMA ASSOCIATED SHIP OR OTHER SIMILAR TITLES.

DATE: SATWANT SINGH

IT IS CERTIFIED THAT ABOVE STATEMENT MADE BY THE CANDIDATE IS COORRECT TO THE
BEST OF MY KNOWLEDGE

PROJECT GUIDE :
MR. ANUJ KUMAR






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S.No CONTENT P.No
1
Introduction of GLAMI

6
2
Whats Rural Market

16
3
Characteristic of Rural Market

18
4
Distribution Chanel strategy

29
5
Problem of Rural India farmer

30
6.
Why into Rural Market

31
7.
Challenge

33
8
What opportunity in India Retail

36
9.

Retail sector in India
38
10.

Retail format in India
40
11.

Industry Revolution
43
12.

Does Urban Development Drive Rural
growth in India
46
13.

India Retail Challenge/ scope
49
14.

Benefit of FDI in Retail sector
51
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COMPANY PRROFILE
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INTRODUCTION OF GLAMI

THE FIRST NAME GREEN LAND AGRO TECH WHICH STARTED IN 28 April 2009 & SOON REGISTERED
IN JULY 2009

THE FOUNDER OF GREEN LAND IS MORE ENERGETIC & OPTIMISTIC BUT CO. WAS GROWING IN RIGHT WAY &
COVERED MANY AREA IN UP BUT UNFORTUNILITY BECAME A WRONG CHANGE IN FRONT OF GREEN LAND CO.
GROWTH BECAME STOPPED & RETAILER BE GAIN BRAKED ON BY ONE FROM CO. VINET BALIYAN WHO S
THE MD OF OUR CO., SEEING THE CONDITION OF CO. BUT THIS PERSON ALWAYS MOTIVATE TO HIMSELF,
NEVER FORGOT OWN DREAM & AGAIN MADE NEW STRATEGY TO DEVELOP.

GLAMI MEANS THE SHORT NAME OF OUR CO. GREEN LAND AGRI MARKETING INDIA PVT.
LTD.


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AGRICULTURE INPUT & OUTPUT OUTLET



.




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GREEN LAND OBJECTIVES PROVIDE ALL INPUT OR OUTPUT SOLUTION AT
A PLACE.
INPUT SOLUTION
Farmer needs different inputs for their agriculture practices such as seed, pesticides,
insecticides, equipments, tractor, tube well, seed drill Machines etc.
All we will provide in Green Land Outlets.
OUTPUT SOLUTION
In India farmers are facing big problem, whom and where they sell their output. We at Green
Land outlet works as a bridge between agri-processing companies and farmers.
SERVICES
Farmers need different services to produce international quality product such as information
about new technology, market information, distribution centers, price information, soil testing,
information about disease and paste etc. we here at Green Land Outlets provide all facilities
under one roof.
WORKING FORMAT
1. Exclusive Franchisee
2. Non- Exclusive Franchisee
3. Super Stockiest
EXCLUSIVE FRANCHISEE
A form of business organization in which a firm which already has a successful product or
service (the franchisor) enters into a continuing contractual relationship with other businesses
(franchisees) operating under the franchisor's trade name and usually with the franchisor's
guidance, in exchange for a fee.
1. Exclusive franchisee gets exclusive rights of sale with in an assign territory.
2. Exclusive franchisee gets exclusive margins on products.
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3. Exclusive franchisee gets rights to deal with non-exclusive franchisee with in assign
territory.
4. Exclusive franchisee gets right to use company intangible asset company logo and
company name on their outlet.
5. Exclusive franchisee gets margins from sale of Green Land marketing partners
products.
6. Exclusive franchisees get margins from the procurement for Green Land partners.
7. Exclusive franchisee gets marketing field support from Company.
8. Continues technical training workshop.
9. A long of product from fertilizer, pesticides equipment up to farmers output
solution.
10. Exclusive franchisee gets online support in office hours.

CONDITION
1. Minimum Investment capital in products.
2. Franchisee security deposit.
3. Exclusive franchisee bound to show all marketing promotion at exclusive franchisee outlet
of Green Land marketing partner.

NON-EXCLUSIVE FRANCHISEE

It usually refers to a municipality which offers a contract to a garbage-collection or other
municipal service. Some such contracts are exclusive -- the company has the sole right to collect
garbage, for example. Other such contracts grant non-exclusive franchise rights -- the company
has a right, but not an exclusive right, to collect garbage, for example. WSI offers its franchisee
consultants wonderful opportunities for working in a flexible, white-collar industry of business,
technology and marketing consulting.
Benefits
1. NON-Exclusive franchisee can sale products from their own shop.
2. Non-Exclusive franchisee gets Margin from the sale of Green Land marketing partners
products.
3. Non-Exclusive franchisee gets Margin from the procurement for Green Land marketing
partners.
4. Non-Exclusive franchisee gets technical field training for products.
5. Exclusive franchisee gets online support in office hours.
6. Direct conversation with technical team in office time.
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SUPER STOCKIEST

Super Stockiest is the kind of C&F agency, where Companies Keeps their stock to pass it on to
the next steps of the Movement like wholesalers, dealers, retailers and finally to the customers.
They act like C&f. they do all kinds of Jobs like sales and marketing, stock analysis, inventory
Management & control, packaging and distribution etc.


1. Super stockiest appoints for pesticide, fertilizer and livestock products for one or two
district depend upon the population and other market environment factors.
2. Super stoker responsible for stock the Inventory and sales to authorized exclusive
franchise within their assign territory.
3. Super stockiest gets service charges for their services upon their investment.
4. Super stockiest need to deposit security deposit.
5. Super stockiest is responsible for keeping minimum inventory.


COMPANY PRODUCT

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1. Magic Tech (Growth promoter)
2. Aryan (Growth 21% seavd)
3. Rock green
4. Red green
5. Roxxgreen
6. Green Magician
7. Virigreen
8. Bacteriogreen
9. Neemogree
10. Tarmigreen
11. Little Magic
12. Nematigreen
13. Wet green


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Retail outlet in west U.P & uk
Roorkee (H.O)
Muzffernager (R. O)
Saharanpur
Dhanoree
Bahadrabad
Kotdwar
Agra (Aligarh)






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Future strategies & plan of GLAMI

Product pitch
Connect to all retailer with Internet
Marketing tai up
Buying product
Trading






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Selling Monthly Growth (in lac)
1.98
2.5
3.2
6
0
1
2
3
4
5
6
7
feb March April May
Series 1
Series 1
Selling Monthly Growth (in lac)

Why should use GLAMI product
Non toxic
No harmful for corps
Degradable
It s affect only worms & insects
It made by organic items


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HOW TO WORK GLAMI & WHATS TREND TO WORK








Retailers
Green Land
Menufacturer
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WHAT OPPORTUNITY IN PESTICIDE SEC









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WHATS THE RURAL MARKETING?

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 50% of the national income is generated in rural India and there are opportunities
to market modern goods and services in rural areas and also market agricultural
products in urban areas. Infect it has been estimated that the rural markets are growing
at fives times the rate of urban markets. About 70% of bicycles, mechanical watches
and radios and about 60% of batteries, sewing machine and table fans are sold in rural
India. At the same time the sales of colour television, washing machines, refrigerators,
shampoos, face cream, mosquito repellent and tooth paste are very low and there is
tremendous potential for such products in rural markets
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 different 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.






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ESTIMATED ANNUAL SIZE OF THE RURAL MARKET -

FMCG Rs. 65,000 Crore
Durables Rs. 5,000 Crore

Agri-Inputs (including tractors) Rs. 45,000 Crore

2 / 4 Wheelers Rs. 8,000 Crore


Durables Urban Rural
Total (% of Rural
HH)
CTV 30.4 4.8 12.1
Refrigerator 33.5 3.5 12.0


FMCGs Urban Rural Total (% of Rural HH)
Shampoo 66.3 35.2 44.2
Toothpaste 82.2 44.9 55.6





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MARKETERS CAN MAKE EFFECTIVE USE OF THE LARGE AVAILABLE
INFRASTRUCTURE -


Post Offices 1,38,000
Haats (periodic markets) 42,000
Meals (exhibitions) 25,000
Mendes (agri markets) 7,000
Public Distribution Shops 3,80,000
Bank Branches 32,000






PROLIFERATION OF LARGE FORMAT RURAL RETAIL STORES, WHICH HAVE BEEN
SUCCESSFUL ALSO
DSCL Haryali Stores
M & M Shubh Labh Stores
TATA / Rallis Kisan Kendras
Escorts Rural Stores
Warn bazaar, Maharashtra (Annual Sale Rs. 40 cror)
CHARACTERISTICS OF RURAL MARKETS



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1. Large number of consumers:
According to the 1991 census, the rural population constitutes about 74% of the total
population in our country. While the population went from 55 crores (1971) to 85 crores
(1991), the rural-urban proportion have remained more or less the same as in 1971.
There are states like U.P, M.P, Bihar, Rajasthan and Orissa where rural population
varies from 80 to 90 percent. Therefore a large population gives an opportunity for
marketing a variety of goods and services. However income and purchasing power play
a major role in determining the demand in rural areas.







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2. Occupation pattern: Agriculture and related activities continue to be the main
occupation for majority of the rural population. Land is the major source of income for
about 77% of the population. Others are engaged in business (10%), non-agriculture
labour (9%), and salary earners (2%) and not gainfully employed (2%). It is evident that
rural prosperity depends upon growth and development of agriculture.












77
10
9
2 2
0
10
20
30
40
50
60
70
80
90
Land Business Labour salery others
Occupation pattern
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3. Literacy level:
It has been estimated that the rural literacy level is 36% compared to 62% in urban
areas. Literacy is one of the important factors in developing awareness and knowledge
about technological changes. As many as 16 major languages are spoken adding to the
complexities in rural communication.

4. Low standard of living:
Low income, low purchasing power, overall social and economic backwardness
lead to low standard of living. In general a rural consumer spends less on non-food
items.
5. Media reach:
The media reach in rural household is low. Statistics indicates that the reach of Print
media is 10%, followed by TV 31%, Radio 32% and Cinema 36%. Therefore
the marketer has to consider rural specific promotion media and methods to reach the
villagers.


36
64
0
10
20
30
40
50
60
70
Rural Urban
Series 1
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6. Communication facilities:
About 20% of the six lakh villages are without telephone facility even today. This
includes Rajasthan (17600 villages), MP (14200 villages), Maharashtra (12000 villages),
Gujarat (7000 villages), and AP, Assam, Orissa about 6000 villages each. (Source:
The Indian Express dated 30.3.2003)

7.Transportation facilities:
About 50% of the markets are not connected by road. Most of the roads are
kachha and become unusable during rainy season. Many

Farmers use bullock cart for transporting their produce from village to the market. This
means of transport is time consuming


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8. Rural electrification:
The main objective is to provide electricity for agricultural operations and for small
industries in rural areas. About 5 lakh villages (77%) have electric supply and this has
increased the demand for electric supply and this has increased the demand for electric
motors, pumps and agricultural machinery.
9. Medical facilities:
Medical facilities are quite inadequate and the villagers have to travel long distances for
getting medical treatment Distance:
Village nearer to towns has elements of the urban life. Interior villages are more
traditional Promotion strategies
Through the rural markets offer big attractions to the marketers, one of the most
important questions frequently asked is How do we reach the large rural population
through different media and methods?

1 0 . Formal media
It includes Press and print, TV, Cinema, Radio, and Point of purchase and Outdoor
advertisement. Reach of formal media is low in rural households (Print:18%,
TV:27%, Cinema:30%, and Radio:37%) and therefore the marketer has to
consider the following points:




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11.Newspapers and magazines:
English newspapers and magazines have negligible circulation in
rural areas. However local language newspapers and magazines are becoming popular
among educated facilities in rural areas. Examples: Newspapers: Eenadu in A.P., Dina
Thanthi in Tamil Nadu, Punjab Kesari in the North, Loksatta in Maharashtra and
Tamil magazines Kumudam are very popular in rural areas.

12.Television:
It has made a great impact and large audience has been exposed to this medium. HLL
has been using TV to communicate with the rural masses. Lifebuoy, Lux, Nihar oil etc
are some of the products advertised via television. Regional TV channels have become
very popular especially in Southern states. Examples: SUN TV is very popular even in
rural areas in Tamil Nadu and Asianet is a preferred regional channel in Kerala. Many
consumer goods companies and fertilizer companies are using these TV channels to
reach the rural customer.
13.Radio:
Radio reaches large population in rural areas at a relatively low cost. Example:
Colgate, Jyoti Labs, Zandu Balm, Zuari industries are some of the companies using
radio communication programme. There are specific programmes for farmers like Farm
and Home/Krishi Darshan in regional languages. The farmers have a habit of listening
to regional news/agricultural news in the morning and the late evening. The
advertisement has to be released during this time to get maximum coverage in rural
areas. Another advantage is that the radio commercial can be prepared at short notice
to meet the changing needs of the rural folk.
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Example: Release of a pesticide ad at the time of outbreak of a
pest or disease in crops.
14.Cinema
About 65% of the earnings from cinema are from rural markets. Film viewing habits is
high in certain states like Tamil Nadu, Karnataka and Andhra Pradesh. Village theatres
do roaring business during festivals by having four shows per day. The monthly charge
for showing an ad film is within Rs.500. Local distributor or dealer who has good
contacts with cinema houses in villages can easily monitor this activity. Examples: Films
on products like Vicks, Lifebuoy and SPIC fertilizers are shown in rural cinema halls.
Apart from films, Ad slides can also be screened in village theatres.

15.Outdoor advertisements:
This form of media, which includes signboards, wall painting, hoarding, tree boards, bus boards,
dealer boards, product display boards etc, is cost effective in rural areas. Symbols, pictures and
colours should be used in POPs meant for rural markets so that they can easily identify the
products. Generally rural people prefer bright colours and the marketer should utilize such
cues.
16.Point of purchase:
Display of hangings, festoons and product packs in the shops will catch the attention of
prospective buyers. However a clutter of such POP materials of competing companies
will not have the desired effect and is to be avoided.



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17. Direct mail advertising .
It is a way of passing on information relating to goods or services for sale, directly to
potential customers through the medium of post. It is a medium employed by the
advertiser to bring in a personal touch. In cities lot of junk mail is received by all of us
and very often such mails are thrown into the dustbin whereas a villager get very few
letters and he is receptive to such mailers.

18.Wall paintings:
It is an effective and economical medium for communication in rural areas, since it stays
there for a long time depending upon the weather conditions. The cost of painting one
square foot area is just Rs.10. Retailers welcome painting of their shops so that the
shop will look better. Walls of farm houses, shops and schools are ideal places for
painting and the company need not have to pay any rent for the same. The walls have
to be painted at least one or two feet from ground level. It is better to take permission of
the owner. Very often the owner takes responsibility for taking care of the wall painting.
Painting to be avoided during election time and rainy season. The matter should be in
the form of pictures, slogans for catching the attention of people. Companies marketing
TV, fans, branded coffee/tea, toothpaste, pesticides, fertilizers etc. use wall painting as
promotion medium in rural areas.
19.Tree boards:

These are painted boards of about two square feet in dimension having the picture or
name or slogan of the product painted on it. The cost of such a painted board is about
Rs.80. These boards are fixed to the trees on both sides of the village road at a height
of about 10 feet from ground level. These boards attract the attention of slow moving
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vehicles like cycles, bullock carts and tractors and people walking on the road.
Considering the poor condition of roads, even the buses move at slow speed through
village road. Fertilizer and pesticide companies in rural areas extensively use tree
boards. These are low priced promotion items and can be used by consumer goods
companies too.
20. Informal/Rural specific media
These media with effective reach and personalized communication will help in realizing
the promotional objectives. Companies to suit the specific requirements of rural
communication are using a variety of such media effectively and some of the more
important media and methods are given below.

21.Farm-to-Farm/House-to-House visit:
Rural people prefer face-to-face communication and farm visits facilitate two-way
communication. The advantage is that the sales person can understand the needs and
wants of the rural customer by directly discussing with him and answer his queries on
products and services. Potential customers in the village are identified and the
companys/distributors representative makes farm-to-farm visits and highlight the
benefits of the products. The person carries with him literature in local language and
also samples of products. The person does not sell the product but only promotes the
use of the product. Very often the local dealer also joins the representative in making
farm-to-farm visits. The dealer clarifies the terms and conditions of sale and also makes
independent follow up visits for securing orders. Example: This approach has been
found to be very effective for agricultural machinery, animal health products and
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agricultural inputs. Many LIC agents and companies dealing with high value consumer
durables have tried this method with success in rich rural areas
22.Group meeting:
Group meetings of rural customers as well as prospects are an important part of
interpersonal media. The company is able to pass on the message regarding benefits of
the products to a large number of customers through such meetings. Group meeting of
key customers are conducted by banks, agricultural inputs and machinery companies in
rural areas. The bankers visit an identified village, get the village people in a common
place and explain the various schemes to the villagers. Such meetings could be
organized in prosperous villages for promoting consumer durables and two wheelers
also. Example: MRF Tyres conduct tractor owners meet in villages to discuss repairs
and maintenance of tractors.
23. Opinion leaders:
Villagers place more emphasis on the experience of others who have used a
product/brand to make purchase decision. Opinion leader is a person who is considered
to be knowledgeable and is consulted by others and his advice is normally followed.
Such opinion leaders could be big landlords, bank official, panchayath-president,
teachers, extension workers etc. Examples: a) Mahindra Tractors use bankers as
opinion leaders for their product. b) Asian Paints promoted its Utsav brand of paint by
painting the village Sarpanchs house a few months prior to the launch if the branch to
demonstrate that the paint does not peel off


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24.The Meals :
Melas are of different types i.e. commodity fairs, cattle fairs and religious fairs and may
be held only for a day or may extend over a week. Many companies have come out with
creative ideas for participating in such meals. Examples: a) Britannia promotes Tiger
Brand Biscuits through meals. b) The mahakumbh at Allahabad is the biggest mela in
India. HLL has put up 14 stalls in the meals grounds for promoting Lifebuoy. Handcarts
have been deployed for increasing access.

25.The Haats :
Traditionally on certain days of week, both the sellers and buyers meet in the village to
buy and sell goods and services. These are the haats that are being held regularly in all
rural areas. The sellers arrive in the morning in the hats and remain till late in the
evening. Next day they move to other hats. The reason being that in villages the wages
are paid on weekly basis and hats is conducted on the day when the villages get their
wages. For the marketer, the hats can be an ideal platform for advertising and selling of
goods. By participating in hats and meals, the company can not only promote and sell
the products but also understand the shared values, beliefs and perceptions of rural
customers that influence his buying behaviour.
26.Folk dances:
These are well-appreciated form of entertainment available to the village people. The
folk dance Kuravan Kurathi is popular in Tamil Nadu. The troupe consists of dancers,
drummers and musicians and they move in a well-decorated van from one village to
another village singing and dancing. In a day the troupe covers about 8-10 villages. As
soon as the van reaches a village, film songs are played to attract the attention of the
villages. This is followed by folk dances. Mike announcement is made about the
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companys products and leaflets are distributed. After the dance programme, queries, if
any, about the products are answered by the sales person. Folk dance progra costs
about Rs.5000 per day and therefore these programmes are conducted during the peak
season in selected villages.
Examples: Fertilizer and pesticide companies organize folk dance programmes during peak
season in selected markets. Thumps Up has sponsored Lavnis, the folk dance programme of
Maharashtra and over 30 programmes have been arranged in selected rural markets.
27.Audio Visual Publicity Vans (AVP Vans):
AV unit is one of the effective tools for rural communication. The van is a mobile
promotion station having facilities for screening films slides and mike publicity. The
sales person makes a brief talk about situation in the village, the products and the
benefits. The ad film is screened along with some popular film shots and this continues
for about 30 minutes. At the end of the film show, he distributes handbills and answers
queries of the customers. The whole operation takes about 1-2 hours depending upon
the products under promotion, number of participants in the meeting and time taken for
question and answers. The vans move to the next village for the second show. The cost
of running a fully equipped AVP unit is about Rs.4000 per day and AVP van operation
has to be considered as an investment for business development in rural areas.
Example: Companies such as HLL, Colgate, and Phillips have made effective use of
AVP vans for popularizing their products in rural areas.


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28.Product display contests:
Package is an integral part of the product. Its main purpose is to protect the product
during transit, to preserve the quality and to avoid any loss in quality and quantity. The
main purpose of this contest is to remind the customer to buy the product as soon as he
enters the shop. Another objective is to influence the dealer to stock the product and
support the company in increasing the sales. The display contest has to be announced
well in advance and promotional materials to be distributed to all the selected dealers in
a geographical area. Prizes for best displays are announced to motivate the dealers; the
contest lasts for about a month. A well- planned product display contest not only
increases the involvement of dealers in the companys products but also increases the
sales during the contest period. This is used for promoting consumer goods such as
shampoos, soaps and toothpaste.
29.Field demonstration:
This is based on the extension principle seeing is believing and is one of the most
effective methods to show the superiority of the companys products to the customers. A
progressive farmer who is an opinion leader is selected and the demonstration is
conducted in his field in the presence of a group of farmers in the village. The farmers
observe the results in the field and the local dealer calls on them in their farms and
persuades them to buy the particular brand of pesticide or fertilizer. Examples: a)
Spraying a particular brand of an insecticide against insect pests and showing the
farmer how effectively the insects are controlled. b) Demonstrating the use of
tractor/implements for different agricultural operations. c) Hawkins pressure cooker has
demonstration representatives who carry out demos in rural households. The
representative receives 1% commission for every customer who approaches the dealer
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via demonstrations. e) Similarly effectiveness of detergents, pressure cookers, vaccum
cleaners and mosquito coils could be promoted by demonstrations in selected markets.
30.Field days:
These are extension of field demonstrations. One of the main objectives of following
modern agricultural practices is to increase the yield. The company organizes
demonstrations in a piece of land belonging to progressive farmers. All the fertilizers,
pesticides, nutrients etc. are applied after making field observations. Just before
harvest, all the important farmers are invited to see demonstration plot and see for
themselves how the yields are better in the plot compared to other fields. Field
demonstrations/field days consume lot of time and efforts and therefore have to be
planned well.
31. Information centers:
They provide latest information on cultivation of crops, fertilizer application, weed,
management and control of pests and diseases. Experienced agricultural graduates
who make frequent visits to the field and advice farmers on modern agricultural
practices manage the centers. They also provide information on farm implements,
seeds, fertilizers, pesticides, diesel engines, sprayers and tractors etc. Many consumer
goods companies have opened show rooms in prosperous rural areas. Example: Hero
Honda has opened extension counters with show room facilities in major rural markets.



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32.Life-style marketing:
Each rural market segment has certain special features i.e. they share common life-
style traits. They include village sports, religious events, prominent personalities and
role models. Examples: Textile mills maintaining community gardens, Mineral water
companies supplying clean drinking water during summer festivals in villages and
Consumer goods companies sponsoring Kabaddi.
33. Distribution Channel Strategies
The channel members consist of wholesalers and retailers who are middlemen in
distribution and they perform all marketing functions. These middlemen facilitate the
process of exchange of goods; create time, place and possession utilities. Therefore
channels are useful to producers as well as consumers. Even if a company has a
product that meets the requirements of rural consumers, it will succeed only if it is made
available at the right place as and when required by the consumer.
34.Direct sales to consumers:
Examples: In many states, the government has encouraged farmers to sell vegetables
directly to urban consumers by setting up Framers market. Farmers, in this case, put
up stalls in the market place and directly sell fresh vegetables to the consumers,
eliminating middlemen in the market.
35.Manufacturer-whole saler-retailer cosumer :
The manufacturer appoints wholesalers in key rural markets and these wholesalers
cater to the needs of retailers in villages. Example: Sale of pesticides used in
agriculture.
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36.Manufacturer-retailer-ultimate consumer:
Examples: 1) Companies like Hero Honda have direct retailers in semi-urban
markets.
2) Mahindra Tractors have appointed distributors in all prosperous rural areas and
these distributors deal directly with farmers for sales and services of tractors.
3) Philips has direct distributors in areas with low demand and poor accessibilities. The
distributors extend credit facilities; they follow a journey cycle and have delivery vans to
service remote markets.

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WHY INTO RURAL MARKETING
When ITC entered into rural marketing because it understood the problems faced by the
farmers and also realized the vast opportunity it can capitalize using its mammoth
reserves and surplus. The problems faced by farmers can be best explained with
Thus it clearly explains that farmers basically suffered from 2 DS




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DEEP SEA INSTITUTIONAL SUPPORT

Information of farming best practices
Information on weather
Quality and Information on inputs

DEVIL MIDDLE MAN

Price Discovery
Quality and Weightment
Handling Loss
CHALLENGES IN RURAL MARKETING
Though rural markets are a huge attraction to marketers, it is not easy to enter the
market and take a sizeable share of the market, in the short time due to the following
reasons.
LOW LITERACY
There are not enough opportunities for education in rural areas. The literacy level is as
low (36%) when compared to all- India average of 52%.
Seasonal Demand
Demand for goods in rural markets depends upon agricultural situation, as agriculture is
the main source of income. Agriculture to a large extent depends upon monsoon and,
therefore, the demand or buying capacity is not stable or regular.


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Transportation
Many rural areas are not connected by rail transport. Kacha roads become
unserviceable during the monsoon and interior villages get isolated.
Distribution
An effective distribution system requires village-level shopkeeper, Mandal/ Taluka- level
wholesaler or preferred dealer, distributor or stockiest at district level and company-
owned depot or consignment distribution at state level. The presence of too many tiers
in the distribution system increases the cost of distribution.
Communication Problems
Facilities such as telephone, fax and telegram are rather poor in rural areas.

Traditional Life
Life in rural areas is still governed by customs and traditions and people do not easily
adapt new practices. For example, even rich and educated class of farmers does not
wear jeans or branded shoes.

Buying Decisions
Rural consumers are cautious in buying and decisions are slow and delayed. They like
to give a trial and only after being personally satisfied, do they buy the product.
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Media for Promotions
Television has made a great impact and large audience has been exposed to this
medium. Radio reaches large population in rural areas at a relatively low cost. However,
reach of formal media is low in rural households; therefore, the market has to undertake
specific sales promotion activities in rural areas like participating in melas or fair
Career in Rural Market
While rural marketing offers a challenging career, a rural sales person should require
certain qualifications and specialized talent.
Cultural Factors
Culture is a system of shared values, beliefs and perceptions that influence the behavior
of consumers. There are different groups based on religion, caste, occupation, income,
age, education and politics and each group exerts influence on the behavior of people in
villages.
There is a belief among rural people that experience is more important than formal
education and they respect salespersons who can offer practical solutions to their
problems. Therefore, it is desirable that sales persons, especially those who have been
brought up in cities are given a thorough training consisting of both theory and practical
aspects of village life. The training will help these sales persons to align themselves with
the market realities and settle down smoothly in their jobs.
Rural market has a tremendous potential that is yet to be tapped. A small increase in
rural income, results in an exponential increase in buying power.

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Future Trends
Markets which are not able to face the stiff competition posed by MNCs can restore
their profits in the rural sector. The market share of urban market when compared to the
rural market is low; hence if Indian industries concentrate on rural markets their sales
will increase. If rural markets are brought into the limelight of development, they pave
way to prosperity. Prosperity of India lies in the prosperity of every Indian; hence no
rural segment should be left untapped.
Rural marketing becomes a task for the companies, as most of them are in the way to
capture the market. The market is full of opportunities, where they can get good
business from. So to reach the market there is few challenges to meet. The marketers
need to be aware of these challenges that are in the market, so as to tackle them with
Strategies and Tactics of marketing. The rural market is a untapped one, it may be for
the 3D's , Distance, Diversity, Dispersion. The statement is from Mr. D.K.Bose, VP,
O&M Rural. So these 3D's are one of the causes to challenge the marketing factors.
The companies which are succeeded in the market have tackled the challenges with
Innovations and Marketing strategies. So the challenges are of different factors such as
Distribution, Psyche of consumer, Communication, Fake Products, Budget, Culture, low
literacy levels and so on.

Due to the bad infrastructure like roads, Electricity it is really difficult to reach the remote
locations. The infrastructure plays a tough role for Logistics. And Logistics plays an
important role to reach the product in the market. The physical distribution and Channel
Management plays a vital role for the companies to reach in the market. As the market
is diverse in terms of geographically, so it became difficult for the companies to reach
the market. The lifestyle of the rural consumer is different than urban people, because
of the culture, low literacy levels, Communities, Cast feelings etc. These things need to
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be considered by the companies so as to understand the consumers behaviour. So for
this the companies need to work in the market with up to date research and
development center. The communication in the rural market is tough. For the
advertisement of products and services the words and languages should be used in a
proper manner. Due to the low literacy levels the consumer cannot understand the
message that has been done through advertisement of the respective product or
service. So the communication needs to be considered as a challenging factor to
overcome. Rural consumers need the message in direct and clear way to understand
about product and service.

So because of the lack of communication, there will be more number of fake products in
the market. There are lot of companies which have faced the imitation of their products.
Most of the products are sold in haats as the organized market does not reach there.
The companies which cannot reach the remote locations face these kinds of problems
in the market. For ex: Ponds with polons, Lifebuoy with Liftboy and lifejoy, Fair and
lovely with friends and lovely and so on. So these things became a challenge for the
companies to tackle. To tackle these types of situations companies need to improve
their Distribution and need to reach the market including haats.

But if all these things happen then there is a problem with budgetary allocations in the
company . So if the budget is good then it may not be a challenge for the company to
think over, but if this is not the case then it may be a great challenge. So by looking at
all these we can say that these challenges need to be tackled in a proper manner with
good marketing and business strategies.

There might be some practical problems with costs like van for promotions, labour, and
so on. Which are practical problems for the companies? So these are the challenges
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where company need to work with their innovative strategies. The companies which
have done this became the leaders of the market. The companies like HUL, ITC, and
LG have created a well established market for themselves.

To conclude, "This is a potential market where companies can get good business from".
But to tackle this there should be a proper Marketing Mix. As there is a changing
scenario in the rural market day by day so the companies need to get update depending
upon that. The companies which does this well, Then there is nothing tough to crack
this market.
WHATS OPPORTUNITY IN INDIA RETAIL SECTOR
The various opportunities in the organized retail sector in India are mainly there for the
Indian consumers behavior pattern has changed. Now the Indian consumer gets more
hefty pay- packages, is younger, a large number of women are working, western
influences, and more disposable income have opened a lot of opportunities in Indian
organized retail sector. The Indian consumer wants to shop, eat and get entertainment
in one place and is have also given Indian organized retail sector an opportunity to grow
The opportunities in the organized retail sector in India have also increased with the
desire of many global retail giants to set up shop here. The global retail giants who are
entering the Indian organized retail sector are:
Tesco
Wal- Mart
Metro AG
Carrefour SA
The opportunities in Indian organized retail sector are varied and it must be fully
exploited by the Indian retailers.
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85
81
55
40
36
30
20 20
3
0
10
20
30
40
50
60
70
80
90
Series 1
Series 1
Percentage of Organized Retail




RETAIL SECTOR IN INDIA

Retail, one of Indias largest industries, has presently emerged as one of the most
dynamic and fast paced industries of our times with several players entering the market.
Accounting for over 10 per cent of the countrys GDP and around eight per cent of the
employment retailing in India is gradually inching its way toward becoming the next
boom industry.

The trends that are driving the growth of the retail sector in India are


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Low share of organized retailing
Falling real estate prices
Increase in disposable income and customer aspiration
Increase in expenditure for luxury items

Another credible factor in the prospects of the retail sector in India is the increase in
the young working population. In India, hefty pay-packets, nuclear families in urban
areas, along with increasing working-women population and emerging opportunities
in the services sector. These key factors have been the growth drivers of the
organized retail sector in India which now boast of retailing almost all the
preferences of life - Apparel & Accessories, Appliances, Electronics, Cosmetics and
Toiletries, Home & Office Products, Travel and Leisure and many more. With this the
retail sector in India is witnessing a rejuvenation as traditional markets make way for
new formats such as departmental stores, hypermarkets, supermarkets and
specialty stores.

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27
26
30
7
5
5
Hyderabad
Delhi & NCR
Mumbai
Pune
Banglor
Tier ll cities
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RETAILING FORMAT IN INDIA
MALLS:

The largest form of organized retailing today. Located mainly in metro cities, in proximity to
urban outskirts. Ranges from 60,000 sq ft to 7, 00,000 sq ft and above. They lend an ideal
shopping experience with an amalgamation of product, service and entertainment, all under a
common roof. Examples include Shoppers Stop, Piramyd, and Pantaloon. Specialty Stores:

Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's
Music World and the Times Group's music chain Planet M, are focusing on specific market
segments and have established themselves strongly in their sectors
DISCOUNT STORES:

As the name suggests, discount stores or factory outlets, offer discounts on the MRP through
selling in bulk reaching economies of scale or excess stock left over at the season. The product
category can range from a variety of perishable/ non-perishable goods.



DEPARTMENT STORES:

Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs.
Further classified into localized departments such as clothing, toys, home, groceries,
etc.
Departmental Stores are expected to take over the apparel business from exclusive
brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop,
which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft)
across India and even has its own in store brand for clothes called Stop.


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HYPER MARTS/SUPERMARKETS:

Large self-service outlets, catering to varied shopper needs are termed as Supermarkets. These
are located in or near residential high streets. These stores today contribute to 30% of all food
& grocery organized retail sales. Super Markets can further be classified in to mini
supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500
sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.

CONVENIENCE STORES:

These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a
limited range of high-turnover convenience products and are usually open for extended periods
during the day, seven days a week. Prices are slightly higher due to the convenience premium

MBO

Multi Brand outlets; also known as Category Killers, offer several brands across a single product
category. These usually do well in busy market

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.









10
13
2
11
43
21
Delhi
Noida
G.Noida
Fridabad
Gurgaon
Ghaziabad
Retail space distribution in NCR
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RECENT TRENDS
Retailing in India is witnessing a huge revamping exercise as can be seen in the
graph
India is rated the fifth most attractive emerging retail market: a potential
goldmine.
Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade)
makes up 3 percent or US$ 6.4 billion
As per a report by KPMG the annual growth of department stores is estimated at
24%
Ranked second in a Global Retail Development Index of 30 developing countries
drawn up by AT Kearney.
Multiple drivers leading to a consumption boom:
o Favorable demographics
o Growth in income
o Increasing population of women
o Raising aspirations: Value added goods sales
Food and apparel retailing key drivers of growth
Organized retailing in India has been largely an urban
Phenomenon with affluent classes and growing number of double-income
households.
More successful in cities in the south and west of India. Reasons range from
differences in consumer buying behavior to cost of real estate and taxation laws.
Rural markets emerging as a huge opportunity for retailers reflected in the share
of the rural market across most categories of consumption



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ITC is experimenting with retailing through its e-Choupal and Choupal Sagar
rural hypermarkets.
HLL is using its Project Shakti initiative leveraging women self-help groups to
explore the rural market.
Mahamaza is leveraging technology and network marketing concepts to act as
an aggregator and serve the rural markets.




INDUSTRY EVOLUTION
Traditionally retailing in India can be traced to
The emergence of the neighborhood Kirana stores catering to the convenience of
the consumers
Era of government support for rural retail: Indigenous franchise model of store
chains run by Khadi & Village Industries Commission
1980s experienced slow change as India began to open up economy.
Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and
Grasim first saw the emergence of retail chains
Later Titan successfully created an organized retailing concept and established a
series of showrooms for its premium watches
The latter half of the 1990s saw a fresh wave of entrants with a shift from
Manufactures to Pure Retailers.
For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and
Music World in music; Crossword and Fountainhead in books.
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Post 1995 onwards saw an emergence of shopping centers
Mainly in urban areas, with facilities like car parking
Targeted to provide a complete destination experience for all segments of society
Emergence of hyper and super markets trying to provide customer with 3 Vs
- Value, Variety and Volume
Expanding target consumer segment: The Sachet revolution - example of
reaching to the bottom of the pyramid.
At year end of 2000 the size of the Indian organized retail industry is estimated at
Rs. 13,000 crore













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DOES URBAN DEVELOPMENT DRIVE RURAL GROWTH IN INDIA?
A topic that is often discussed in India across political corridors, corporate boardrooms and
households is the rural-urban divide and how the country's two economies -- the rural and the
urban -- are increasingly growing apart. The popular notion is that growth not only has been
skewed towards urban India but also has been gained at the expense of the countryside.
Rural India has diversified significantly into non-farm activities and this has brought Indias
cities much closer to their hinterlands than people might imagine.

Most of the discussions on the rural-urban divide are based on anecdotes about rural India, but if
we look at the data, the story in rural India is a lot more dynamic that it gets credit for.


THREE URBAN MYTHS ABOUT CONTEMPORARY RURAL INDIA
1. Faster economic growth in urban India as compared to rural areas is driving rapid
urbanization.
2. Rural India is still an agricultural economy
3. Rural-urban inequality is on the rise.
DURING THE PAST DECADE ALONE, THE RURAL ECONOMY IS ESTIMATED TO HAVE GROWN ON AVERAGE BY 7.3% AS
COMPARED TO 5.4% IN THE URBAN ECONOMY. THE LATEST CENTRAL STATISTICAL ORGANIZATION FIGURES SHOW
THAT THE RURAL ECONOMY ACCOUNTED FOR 49% OF INDIAS GDP IN 2000. THIS IS A SIGNIFICANT INCREASE
FROM 41% IN 1981-82 AND 46% IN 1993-94.
Scope of the Retail Sector
Global retail giants such as Wal-Mart, Tesco, Germany's Metro AG and many others are ready
to enter the retail markets. The rising demand of branded products and increase in purchasing
power have lured these companies to enter the market.
Retail Landscape
Modern retail development in India is focused on the following cities:





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West
Mumbai
Pune
Ahmadabad North
Delhi and the National Capital Region South
Chennai
Bangalore
Hyderabad East
Kolkata Leading Indian Retailers

Bata India Ltd, Big Bazaar, Crossword, Ebony Retail Holdings Ltd., Food Bazaar, Globus Stores
Pvt. Ltd., Liberty shoes Ltd., Music World Entertainment Ltd., Pantaloon Retail India Ltd.,
Shoppers Stop, Subhiksha, Titan Industries, Trent and the new entrants penetrating the market
soon will include Reliance Retail Ltd, Wal-Mart Stores, Carrefour, Tesco, Boots Group, etc.










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RETAIL INDUSTRY IN INDIA

THE INDIAN RETAIL INDUSTRY IS GROWING AT A RAPID PACE, SLOWLY INCHING TOWARDS
BECOMING THE NEXT BIG BOOM INDUSTRY; IN FACT, RETAIL INDIA IS HERALDED AS ONE OF
THE SUNSHINE INDUSTRIES ACCOUNTING FOR NEARLY 11% OF THE COUNTRYS GDP. A
SURGING ECONOMY, WITH POLICIES THAT CREATE AN ENVIRONMENT CONDUCIVE FOR
INVESTMENT, HAS REVOLUTIONIZED THE INDIAN RETAIL INDUSTRY WHICH IS TURNING OUT TO
BE A PERFECT PLAYING FIELD FOR THE LEADING GLOBAL RETAIL BRANDS AND THE SMALL
ENTREPRENEURS TRYING TO GET A FOOTHOLD IN THE INDUSTRY. THOUGH UNORGANIZED
RETAILING IS STILL THE DOMINANT SEGMENT IN THE RETAIL MARKET, ORGANIZED RETAILING
HAS GROWN IN TANDEM WITH THE GLOBAL RETAIL TRENDS, SLOWLY EMERGING FROM THE
SHADOWS OF UNORGANIZED RETAIL AND TAKING IT TOWARDS A HIGHER GROWTH
TRAJECTORY. THE VIBRANT ECONOMY LEADING TO THE INCREASE IN INCOME LEVELS AND
SPENDING POTENTIALS OF THE MIDDLE CLASS HAS BROUGHT A COMPLETE REVERSAL IN THE
BEHAVIORAL PATTERN OF THE GENERALLY PRICE CONSCIOUS INDIAN CONSUMERS. FOR A
RAPIDLY GROWING ECONOMY LIKE INDIA WITH A BILLION POPULATION (50 PERCENT OF THEM
UNDER THE AGE OF 25, AND A WHOPPING 70 PERCENT UNDER 35), ORGANISED RETAILING IS AT
A VERY NASCENT STAGE THOUGH IT HAS THE POTENTIAL TO EMERGE AS THE BIGGEST MARKET
IN THE NEAR FUTURE.
THE AT KEARNEY'S GLOBAL RETAIL DEVELOPMENT INDEX HAS IDENTIFIED INDIA AS THE
MOST ATTRACTIVE DESTINATION FOR RETAIL BUSINESS, ALL SET TO BECOME ONE OF THE TOP
FIVE RETAIL MARKETS OF THE WORLD IN 10 YEARS. THE PRESENT GOVERNMENTS POLICY OF
ALLOWING 100% FDI IN THE CASH AND CARRY WHOLESALE FORMAT, AND 51% FDI IN SINGLE
BRAND RETAILING, ALONG WITH SIGNIFICANT FRANCHISEE AGREEMENTS AND OTHER FURTHER
LIBERALIZATION WOULD PROPEL THE VALUE OF THE INDIAN RETAIL INDUSTRY TO ABOUT
US$1065 BILLION BY 2016, WITH ORGANIZED RETAIL HOLDING AROUND 15.5% OF THE TOTAL
SALES AT US$165 BILLION.)


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TRADITIONAL AND MODERN RETAILING
TRADITIONAL RETAILING (INDIAN UNORGANIZED RETAILING) CONSTITUTES A MAJOR
SHARE (AROUND 97%) OF THE TOTAL RETAIL MARKET IN INDIA, OFFERING A STIFF
COMPETITION TO THE ADVENT OF ORGANIZED RETAIL. MOST OF THESE MOM AND POP
OUTLETS IN THE NEIGHBORHOOD COLONIES AND RESIDENTIAL AREAS HAVE A FAIR
ADVANTAGE OVER ORGANIZED RETAIL AS THEY HAVE BEEN IN THE BUSINESS FOR YEARS,
RUNNING FROM GENERATION TO GENERATION AND ENJOYS A CLOSER RELATIONSHIP AND
KINSHIP WITH THE CONSUMERS. UNORGANIZED RETAIL OUTLETS CONSISTING OF KARANA
STORES AND STREET SIDE VENDORS ARE GENERALLY LOW COST VENTURES OPERATED
WITH CHEAP LABOR, SMALLER RETAIL SPACE AND LOWER OR SOMETIMES NO TAXES AT
ALL.
MODERN RETAILING (INDIAN ORGANIZED RETAILING) IS GEARED FOR THE BIG TIMES WITH
A VIBRANT ECONOMY AND A POSITIVE SHIFT IN THE DEMOGRAPHY OF THE INDIAN
POPULATION. THE YOUNGER GENERATION WITH HIGH DISPOSABLE INCOMES IN TODAYS
CONSUMERIST GLOBAL ERA ARE SPENDING MORE, DEMANDING BETTER SERVICE, AND
LOOKING FOR QUALITY PRODUCTS TO KEEP UP WITH THE RAPIDLY CHANGING LIFESTYLES
THAT COME WITH EXPOSURE TO THE LATEST GLOBAL TRENDS AND CULTURES. THE
MASSIVE INFLUX OF YOUNG POPULATION(WITH HIGH INCOME) FROM RURAL HAMLETS TO
URBAN SETTLEMENTS, PHENOMENAL RISE IN THE NUMBER OF NUCLEAR FAMILIES WITH
DOUBLE INCOMES, GREATER REPRESENTATION OF WOMEN IN THE WORKFORCE AND A
GENERAL GROWTH IN PROSPERITY MAKE INDIA A HOT DESTINATION FOR ORGANIZED
RETAIL COMPANIES. MARKET ANALYSTS PREDICT THAT ORGANIZED RETAIL IN INDIA IS
POISED TO OVERTAKE THE GDP GROWTH IN THE NEXT FEW YEARS WITH FAVORABLE
GOVERNMENT POLICIES, RAPID LIFESTYLE CHANGES, SWING (POSITIVE) IN THE
DEMOGRAPHIC PATTERN, AND THE STEADY GROWTH IN THE INCOME LEVELS.




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INDIAN RETAIL CATEGORIES, FORMATS AND PLAYERS
UNORGANIZED RETAILERS LARGELY DOMINATE THE RETAIL SPACE IN INDIA, OCCUPYING A
MAJOR CHUNK OF THE BUSINESS ESPECIALLY IN THE FOOD AND GROCERY SEGMENTS.
HOWEVER, ORGANIZED RETAIL IS SLOWLY AND STEADILY PICKING UP MOMENTUM IN
SEGMENTS LIKE APPARELS, FOOTWEAR, AND ELECTRONIC DURABLES, AND IN VARIOUS
RETAIL FORMATS LIKE DEPARTMENTAL STORES AND SUPERMARKETS. THE MAJOR
SEGMENTS OF ORGANISED RETAIL IN INDIA WOULD CONSIST OF APPAREL AND
ACCESSORIES, CONSUMER DURABLES, HOME DECOR, TELECOM, TECHNOLOGY,
ENTERTAINMENT, FINANCE, HEALTH AND WELLNESS, FOOD & BEVERAGE, TRAVEL,
AUTOMOTIVE, CHILD CARE ETC.
SOME OF THE MORE COMMON FORMATS OF ORGANISED RETAIL IN INDIA ARE
HYPERMARKETS, SUPERMARKETS, ONLINE STORES, KARANA STORES, WHOLESALE
RETAIL MARKETS, DIRECT MARKETING, CONVENIENCE STORES, AND SHOPPING MALLS
ETC.
THE TATAS, THE RELIANCE GROUP, THE BHARTI GROUP, ADITYA BIRLA GROUP, ITC,
RPG GROUP, AND THE PIRAMALS ET AL ARE THE LEADING RETAIL COMPANIES WITH A
STAKE IN THE ORGANIZED RETAIL SECTOR IN INDIA. THESE MAJOR INDIAN RETAIL
COMPANIES HAVE BEEN SUCCESSFULLY RUNNING BRANDS LIKE WESTSIDE, BIG BAZAR,
LIFESTYLE, FOOD WORLD, MUSIC WORLD, SUBHIKSA, CROSSWORD, WILLS LIFESTYLE,
GLOBUS AND EBONY TO NAME A FEW. BENETTON, ADDIDAS, REEBOK, LEVIS, DIARY
FARM, KFC, METRO, WAL MART, MARKS & SPENCERS ETC ARE SOME OF THE MORE
POPULAR GLOBAL RETAIL BRANDS THAT HAVE SET UP RETAIL BUSINESS IN INDIA.
WITH 70 PERCENT OF THE INDIAN POPULATION LIVING IN RURAL AREAS, WHERE ALMOST
HALF OF THE COUNTRY'S NATIONAL INCOME IS GENERATED, THE RURAL MARKET OFFERS
HUGE OPPORTUNITIES TO SERIOUS RETAIL MARKETERS LOOKING FOR A LONG HAUL. SOME
OF THE PROMINENT RETAILING COMPANIES HAVE SET UP SHOP IN THE RURAL SECTOR
INTRODUCING INNOVATIVE BUSINESS MODELS, LIKE CHAUPAL SAGAR (AN ITC
INITIATIVE), PROJECT SHAKTI (HLL), AND ADHAR STORES (GODREJ AGROVET)
HARIYALLI KISHAN BAZAR ETC. THESE RURAL RETAIL INITIATIVES ENABLE THE FARMERS
TO ACCESS MULTIPLE SERVICES AND PRODUCTS LIKE RETAIL BANKING, FERTILIZERS AND
CHEMICALS, HEALTH PRODUCTS, FARM NEEDS ETC.




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INDIAN RETAIL - CHALLENGES
INDIAN RETAIL INDUSTRY STILL HAS TO OVERCOME A NUMBER OF CHALLENGES AND
ROADBLOCKS, BEFORE IT ESTABLISHES ITSELF AS AN ORGANIZED RETAIL MARKET AT PAR
WITH INTERNATIONAL STANDARDS. IN INDIA, UNORGANIZED RETAIL MARKETERS STILL
POSE A SERIOUS CHALLENGE TO THE ENTRY OF ANY ORGANIZED RETAIL PLAYER. SOME
DEBILITATING FACTORS IN THE PROGRESS OF INDIAN RETAIL MAY INCLUDE:
.Huge gap in the demand and supply of trained work force
. Absence of efficient supply chain management system
. Small retail space (by international standards)
. Socio-economic and cultural diversity hampers in projecting an established
model and pattern of consumption
.Intrinsic complexity of retailing low margins, danger of product
obsolescence & constant price changes
.Complex legislation and bureaucratic red tape resulting in difficult
navigation
. Taxation that favours unorganized retail players
.High cost of operation
.Price conscious consumers with an age old culture of saving rather than
spending







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GROWTH DRIVERS OF INDIAN RETAIL
Retail industry in India, however, has a huge growth potential, with
opportunities existing in multiple sectors and segments. Organised retailing
in India in the near future would be driven by:
Liberalization of the Indian Economy
Rapid Urbanization
Sharp rise in the Per Capita Income
Changing lifestyles
Shift in the consumer shopping behavior pattern.
Increase of dual income nuclear families
Internet revolution opening new doors to the global market
Increasing population of young working people under 25
High prospect of India becoming a sourcing base for international
retail companies
Availability of great quality real estate
A billion population ( and rising)









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BENEFITS OF FDI IN RETAIL SECTOR
Higher competition would lead to higher quality in products and services.
Better lifestyle as better products would be introduced.
Exports would increase due to greater sourcing of major players.
Investment in whole supply chain would increase.
Technology would be upgraded in terms of logistics, production, and distribution channels.
The markets of the sector would flourish and develop.
Employment would increase and skills & manpower will develop.
A strong retailing sector would promote tourism.
Economies of scale would help lower consumer prices and increase the purchasing power of
the consumer.
In the long term it will be beneficial in the up-gradation of agriculture and small scale &
medium scale industries.










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60

SOME PRODUCT WITH OTHER COMPETITOR WITH PRIES
QUESTIONNARY
Category : pesticides
Product
name
Company
name
MRP Sailing
price
Delar
price
dose Reped
demand
Perform-
ance
Form
surprise Green land 90/10
ml
90 64 10ml/2t
ank
v.good good LQ
zingold camchura 175/2
50ml
150 85 250ml/1
0tank
good goog LQ
Bomflower Jai shree
rashyan ltd.
150/2
50ml
130 70 250ml/1
0tank
goog goog LQ
Milisan IIL 90/25
ml
80 46 25ml/3t
ank
goog goog LQ
xxxm Hindustan
crop science
190/5
0ml
150 90 50ml/10
tank
goog goog LQ
Flowris Crown Agro 150/2
5gm
150 85 25gm/1
0tank
goog goog Cst
Agranin Aries Ago
Ltd
76/25
0ml
70 45 250ml/7
5litter
goog goog LQ





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61



QUESTIONNARY
Category : pesticides

Product
name
Companyna
me
MRP Sailing
price
Delar
price
dose Reped
demand
Perform-
ance
Form
redgreen Green land 90.25/2
5ml
85 64.98 25/1ta
nk
v.good good LQ
O -mite Dhanuka
Agrotech
135/100
ML
100 95 100ML
/4Tank
good good LQ
Xmito Enzyame 160/100
ML
240 220 100ML
/4Tank
good good LQ
Macistar Duepond 218/100
ML
175 160 100ML
/4Tank
good good LQ
Mastmit
e
Comcara 540/500
ML
525 475 100ML
/16Tan
k
good good LQ
Simbha Pi 105/250
ML
90 70 100ML
/8Tank
good good LQ
Sonata Hidustan 1000/25
0ML
600 600 100ML
/15Tan
k
good good LQ
Mite davdayal 105/250
ML
90 70 100ML
/8Tank
good good LQ


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QUESTIONNARY
Category : pesticides

Product
name
Companynam
e
MRP Saling
price
Delar
price
dose Reped
Deman
d
Perform-
ance
Form
Rock green Green land 90.25
/25m
l
90 64.98 25ml/1
tank
good Good LQ
monostar Swal
corporation
130/2
50ml
130 100 30ml/1
litter
good Good LQ
Tarzan Krishi rashyan
Export pvt.
55/10
0ml
50 40 30ml/1
litter
good Good LQ
Acmstar Acame
organize
pvt.ltd
248/5
00ml
248 170 30ml/1
litter
Good good LQ
G-super Ab chame
india
130/2
50ml
125 120 30ml/1
litter
Good Good LQ
Durshan Daw agro 80/25
0ml
80 70 30ml/1
litter
Good Good LQ
jadu Bharat
insecticides
70/10
0ml
60 40 30ml/1
litter
Good Good LQ
Budgur Bharat krishi
rashyan
55/10
0ml
50 45 100ml/
2bhiga
good good LQ


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BIBLIOGRAPHY
Books
MARKETING MANAGEMENT PHILIP KOTLER
MARKETING STRATEGY- WALKER, MULLINS, BOYD, LARRECHE.
RETAILING (ENVIRONMENT & OPERATION)
(ANDREW J NEWMAN & PETER CULLEN)

ARTICLES
ECONOMIC TIMES- 2 MAY 2012
TIMES OF INDIA

Personnel
Mr. Vineet baliyan, MD GLAMI


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