QUESTION 01

E-Choupals as a new distribution strategy

In an investigation carried by Bakshi, (2023), it was reiterated that for centuries, many
famers in India had been exploited. For a farmer to get their product in the market, it
involved a very long process with a lot of intermediaries in between. The involvement of
intermediaries such as the middlemen meant that they were entitled to their share of the
farmers profit, leaving the farmers themselves with very little.
In similar case as other companies, the Indian Tobacco Company had no access to its
farmers, thus allowing the company to get products via the use of a middleman. The
services of the mandi, compromised on quality, also preventing the company`s contact with
the growers. The e-Choupals project, in theory, allows ITC to deal directly with the farmers,
whilst also, opening another space or avenue by linking the farmers with other suppliers
such as agricultural fertiliser suppliers, as well as seed companies to assist the famers to
break previous trends of profits that were low. These new companies will introduce the
famers to other farming techniques, which would lead to enhanced crop quality, and by so
doing, increase productivity which will led to increased famer`s income, without having to
share it.
Vishwatej et al., 2022, argues that farmers can make better informed decisions through the
application of information and technology tools. These tools provide a wider range of
information and services, which gives rise to new ways of doing things.
The e-choupals project will be able to expose the farmers to a new world which will benefit
them by eliminating middlemen, providing agricultural education, and giving access to the
outside world. The farmers also will be able to get the exact buying price form ITC, leading
to increased profits that do not need to be shared. ITC will be able to be in contact with the
farmers, however remote they may be. The farmers will be able to access the sourcing
companies, agricultural information, market product prices, farming equipment and other
related services, making it a win-win situation.
The new system set to be developed by the Indian Tobacco Company (ITC) has potential to be
beneficial, therefore, YES, it will work. The system will create space for ICT to satisfy their
requirements with the European market, thus increasing their business, when also satisfying the
famers by increasing their income by cutting or re-imbursing on transport costs.
Question 02

Recommendation

Many companies can see their internal or external forces that affects their operation by simply doing
a SWOT (Strength, Weakness, Opportunities, Strength) analysis. By doing this analysis, companies
can decide on what strategy to implement, or decide which direction is the company heading. ITC
launched e-choupal to source products form the farmers directly, while also allowing it to sell its
products directly to the farmers. Before, the company mainly relied on the local mandis.

The Eastman Kodak Company was formed in 1892, with its core business in selling film. After many
years of operation, the company filled for a bankruptcy protection in 2012. Fuji films, on the other
hand, which were second to Kodak, saw the rise in digital technology and aggressively explored new
opportunities. These opportunities were also very related to their core film business. Today, they are
reported to be having an annual revenue of over $20 billion.

The Indian Tobacco Company exports soya bean sourced form the local mandi. The local mandi
receives products from the farmers. For ITC to meet the requirements of their customers in Europe,
they need to have contact with the farmers. However, the farmers are in remote villages. ITC plans
to develop an innovative way to satisfy all stakeholders. The e-choupals model benefits everyone
involved in the value chain by using the power of technology. As ITC will be the first in the market to
implement this technology, it will give them competitive advantage and allowing them to control the
market.

The farmers will also have the excess to exposure to an environment where they can sell their
produce at a real live market price, buy other products related to their business operation and also
get information on how they can improve/ increase their crops production. The system also will
allow ITC to get best prices, and also sell its other products to its customers. Businesses need to
make profit to operate, by either cutting costs or being innovative. ITC developed e-choupal, also
managed to save money in the process by cutting out the middlemen, hence saving on
transportation costs. The farmer also saves on the transportation costs, making this situation
favourable to them as well.

Exploring further into this strategy, ITC sells its products, and those of other companies. By doing so,
famers get to have access to more information by just using the e-choupals distribution system. This
will give the business its longevity, sustaining it in the long run as it does not rely on one operating
model. ITC aims to grow its business using e-choupals as a tool. The distribution system has potential
to be expanded into different streams, therefore providing the user with not only one service, but a
variety of services for their personal needs and for their business as farmers. This system has
potential to be the go-to place for anyone doing business, especially in the rural areas. ITC will get to
have first hand experience on their customer needs, therefore giving their customers exactly what
they need for themselves or their business.
Question 03

Social marketing as a strategy

Social marketing
behaviour, to either benefit them or the society at large. It is usually beneficial as:

It reaches the targeted audience.

You can customise your message to specifically cater for those is intended for
It can assist you to maintain longer lasting behaviours of your target audience.

The Indian Tobacco Company seeks to create the e-choupal as one-stop-shot for the farmers. It will
allow farmers to buy farming equipment and related services and as well as sell their produce. In the
same breath, allowing ITC as a company, to sell other services, while maintaining their service-
provider-client relationship with the local farmers.

The e-choupal will be accessible to anyone who is a farmer and would like to explore new avenues.
Unlike the normal market, the market price is there for anyone to see. The adaptation of e-choupal
will lead to the removal of the conventional middlemen who hike up prices for their benefit, the
farmer gets to save more money as the price they sell for, is the set price. The implementation and
effective usage of e-choupals, can link a remote farmer in the dep rural area with big companies, this
has a potential to greatly increase their productivity, leading to increased household incomes.

The implementation of the system answers the basic questions of social marketing

Does the company understand the target audience?

ITC identified the farmers as their target audience. They further identified other companies
in the farming business who stands to benefit greatly from this process to also be part of it
through selling of farming related service.

Was the company clear on what they would like the target audience to do?

The company implemented the system in a two-way process by implementing an alternative

distribution system. The system allows the farmer to visit the kiosk and be provided with
real time information, allowing the farmer to make an informed decision.

For the target audience, do the benefits of doing what I would like them to do outweigh the
costs or barriers to doing it?

The farmer gets to cut costs on transport, therefore saving money. They also have the
opportunity of getting to see the market price and decide on the best price to sell directly to
the company other that having to go through someone.

Am I using a combination of activities to encourage people to achieve the desired action?

E-choupal provides different services such as opening a different market of not only farmers
proving Soya beans, but also access to other services such as weather patens and market
prices as well as direct trades between different services providers.
REFERENCES

Anthony, S.D. (2016) about technology: Available at:

https://hbr.org/2016/07/kodaks-downfall-wasnt-about-technology (Accessed on 08 March
2024)

Bakshi, A.. (2023). ITC's e-choupal as a benchmark for rural transformation: a case study.
Academy of Marketing Studies Journal, 27(5), 1-9.

Kodak. About us. Available at: https://www.kodak.com/en/company/home

(Accesses: 08 March 2024)

National Social Marketing Center. What is social marketing. Available at:

https://www.thensmc.com/content/what-social-marketing-1
(Accessed: 08 March 2024)

Vishwatej, R., Angadi, J. G., & Maji, S. (2022). Knowledge and Utilization of Information and
Communication Technology (ICT) Projects among the Farmers: A Case Study from Karnataka,
India. Research Highlights in Agricultural Sciences Vol. 6, 55-63.