HOW DOES IT COMPARE WITH HUL’S

STRATEGY?
• WIDE REACH - Recognized as India's largest Internet-based initiative, covering 1,300
choupals, linking 7,500 villages, and serving almost 1million farmers.
• CONVINIENCE FOR FARMERS- Web-enabled, real-time data on crop prices gives farmers
an accurate picture of the prices they can expect from ITC and from different mandis. This
information enables them to become informed decision-makers and thereby sell their
produce at a price that gives them a higher profit margin and also increases their savings.
• EMPLOYMENT FOR VILLAGERS- The intermediaries are not removed from the value
chain. Instead, their roles are redefined to samayojaks(coordinators), who assist ITC in
setting up new e-choupals by conducting village surveys and by identifying the best
sanchalaks. with initiatives like e-chaupal; farmers became more informed and empowered
in India.
• INFORMATION- Access to information through e-choupal has reduced the dependence
of the farmers on the traditional agricultural intermediaries. It has also enabled them to
align their agricultural output with market demand and also its very transparent system
increasing the bargaining power of the farmers.
• RURAL MINI MALLS- The mini malls of ITC has helped the rural people to access lot
of products and services, at the same time giving enough training programs for the
farmers. Collaboration with Apollo hospital gives an additional competitive advantage
for the rural market race.
• DIFFERENTIAL PRICING METHODS- In rural areas people don’t believe in brand
they buy product on the basis of the prices. For them buying branded product is not a
necessity always. n rural areas people don’t believe in brand they buy product on the
basis of the prices. For them buying branded product is not a necessity always. They will
buy products if we show them the value proposition.
WHAT DO YOU THINK OF ITC’S STARTEGY TO
EXPAND THE NETWORK OF SAAGARS TO 100 BY
2010?
• In the case its been stated that ITC plans to add 10,000 e-Choupals to extend its network.
So increasing the E-Choupal gives a huge benefit for the increased number of Saagars as
they have a direct relationship.
• Company expects a sales at most Saagras would rise to about $2 million each giving a good
cash inflow to the company and at the same time it increases the range of commodities.
• Enables the company to get customer trust and increasing their rural market share by
showcasing wide range of products and delivering services to the rural customers making
them more informative.