Mr. Anil Wanarse Patil

8/14/2019 Mr. Anil Wanarse Patil

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AN INCREASINGLY AFFLUENT INDIA IS

HARDER TO IGNORE

SUBMITTED TO,

INTERAVION

PRESENTED BY,

MR. ANIL WANARSE PATIL,ROLL NO.-R08PGDM044INDIAN INSTITUTE OF PLANTATION MANAGEMENT ,BANGALORE.


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INTRODUCTION

CASE SUMMERY

The case study illustrate that , Huge potential for any kind of business ishidden in middle India. Some facts, opinion, figures showing thepotential are as follows

Today India is 26% urban & 74% rural, in 2046 it would be 2% rural &98% urban (Samu, ISB).

Indian urban growth story has been driven by metros, but this is nowmoving beyond metros in to smaller towns. (Ashok Rajgopal, mediapartner at Ernst & Young).

In India 51 districts have at least one town with a population more than500,000, together they have twice market potential of 4 metros. (RKSwamy,BBDO-guide,market planning.)


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C O N T

The ratio of spending to earning is higher in tier 2 towns

(Nagpur, Jaipur, Surat) than it is in the metro.(NCAER).

Higher % of the rich is in middle India than in some metros.(crorepatidensity of Haryana in 2004 is 280.)

As consumption is to be concerned metros constitute 30% of the totalconsumption market, rest urban & rural constitute 70%.

Of the 80 million household that constitute the middle class , only 25million are in Tier 1 cities, close to 55 million belong to smaller town.


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C O N T .

Case study explains TWO effects

EFFECTS

DHONI BUNTY AUR BABLI


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C O N T . .

DHONI EFFECT

Dhoni from small town of Ranchi in Eastern India.

Got one of its flashier success in recent time.

This effect identifies phenomenon where rapidlygrowing small town of India are taking centre stage.

This research highlights

Growing affluence level

Increased awareness due to media penetration Improved physical connectivity.

Significant changes in consumption pattern.


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C O N T .

BUNTY AUR BABLI

Popular name of small town of India.

There is a sense of urgency, excitement, & confidence as

they reach ahead.

Hence, they are the future market.

This effect attempts to understand attitude and behavior

of youth in Tier 1 & 2 cities.

Some characteristics ofBUNTYbehavior-1. High confidence in their abilities.

2. Reemergence of Gandhian values.

3. Pride of being Indian.


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C L A S S I F I C A T I O N O F C I T I E S

METROS HIGH GROWTH

CITIES

EMEGING CITIES POTENTIAL

CITIES

MUMBAI PUNE NASHIK AURANGABAD

DELHI JAIPUR NAGPUR PATNA

BANGALORE LUCKNOW GOA RAJKOT

HYDERABAD KOCHI KANPUR MEERUT

CHENNAI AHMEDABAD SURAT BHOPAL

KOLKOTA CHANDIGARH AGRA SONEPAT

LUDHIANA MYSORE VIJAYAWADA


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C O N T . .

By seeing this points we can say that there is a immense

potential for company like INTERAVION to grab

Indian middle market.

Certain major cities are shown here having particular

characteristics.


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QUESTIONS ?


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1. WHAT IDENTIFIES THE DIFFERENCE BETWEEN

TIER 1 & TIRE 2 CITIES IN TERMS OF -

A. Demand of Frozen processed products.B. Demand of chickenFrozen/chilled.

C. Demand of imported/exotic fruits & vegetables.

ANS -A. Demand of Frozen processed products

Following parameters identifies the actual difference-

AWARNESS

PRICE SENSITIVE

FRESHNESS FARMING IMPACT

HEALTH ASPECT


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I D E N T I F I E S T H E D I F F E R E N C E

DEMAND OF FROZEN PROCESSED PRODUCTS

PARAMETERS TIER- 1 TIER - 2 /3

AWARNESS

More aware about frozen processed

products.

Not that much aware, bec

traditionally bound.

INCOME

More income so more purchasing

power, demand is more. Morefrequently the are going for Frozen

products

Generally not going for such

type of products, bec- of middleincome level.

HEALTH

ASPECT

Giving more attention towards

hazards aspects of frozen processed

product.

They are also health conscious

towards processed products.

HECTIC LIFEMostly people are job oriented , infamily both husband & wife do the

job , so, many times they go for

frozen processed products which are

ready to eat.

Not so, The demand isultimately less of frozen

processed products.


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B . DEMAND OF CHICKEN FROZEN/CHILLED.

PARAMETERS TIER - 1 TIER 2 & 3

AWARNSEE High awareness level , hencedemand is high .

Degree of awareness is low.

PRICE

SENSITIVE

Less price sensitive More price sensitive

FRESHNESS Generally they are going for

Frozen chicken.

Generally they are going for

fresh cut chicken, so, demandis less.

FARMING

IMPACT

Non Agri. Business .

Automatically consumption

of frozen chicken is more &

hence demand is more .

Almost 70% people they are

doing Agriculture diversified

farming . Domestication of

poultry commonly followed

by them.

HEALTH

ASPECT

They feel comfortable with

frozen chicken eating,

They feel that because of

package somewhat problem

will be there.


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C O N T .


HEALTH ASPECT They feel that no problem

with such type of food

bec- packed ,& more

nutritious.

Not so. Mostly they try

for freshly cut chicken.

Hence here demand of

frozen chicken is less as

compare to tier 1.

CULTURE These people are not that

much culture conscious

More culture conscious

,as BRAMHIN strictly

avoid the chicken.

OCCOSIONALITY At week end most of the

people going for alcohol ,youth also making

celebrations at week end

so demand in the hotels is

more for frozen chicken.

Not so,Occosionally they

are going for statedfactors.


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C. DEMAND OF IMPORTED/EXOTIC FRUITS

& VEGETABLES

Exotic fruits & vegetables- Collection crops of Asianorigin.(China, Hong-Kong, Singapore).

Various fruits & vegetables are

SUPERFRUIT STRAWBERRY

RED CABBAGE

YELLOW FLESHED SEEDLESS WATER MELON

BIMAL FRUIT

BOX SHAPED WATERMELON

BLACK TOMATO

CHERRY TOMATO

APRICOT


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IMPORTED/EXOTIC FRUITS & VEGETABLES

RED CABBAGEYELLOW FLESHED SEEDLESS

WATER MELON

CHERRY TOMATOBLACK TOMATO

APRICOT

BIMAL FRUIT BOX SHAPEDWATERMELON


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DEMAND OF IMPORTED/EXOTIC FRUITS & VEGETABLES


INCOME

Generally they are going

for exotic F&V even

though it is costly ,because

high income.

Generally income is

medium, but do not

changes the habit of eating

food.

GANDHIAN VALUEValue which follows theGandhi principles. Here it

is low ,bec of modern era.

They are following thisparameter . More demand

give s to the SWADESHI

F&V.

WAProud to be an Indian

LKING ON WIDE SIDE

Not so. Here they have great desire

to express towardsunknown things ,they can

also follow these products.


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C O N T . .


LITERACY More literacy rate

among people, because

of that they are familiar

with exotic F&V,

Less literacy rate ,not

that much familiar with

exotic F&V.

MEDIA Also bec- of media

exposure peoples are

aware about products of

exotic origin.

Not that much media

exposure.so,ultimately

demand is low.

NUCLEAR FAMILY No influence of family

members. So easily they

can eat it.

Influence of family

members, hence, less

demand for exotic F&V.


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2. HOW LOGISTICS WILL BE DIFFERENT FOR TIRE 2 &

TIER 3 CITIES AS COMPARE TO TIER 1 CITIES ?

L O G I S T I C S I S T H E C O N N E C T I V E T I S S U E T H A T M A K E S T H E G L O B A L E C O N O M Y

W O R K .

For the difference we have to consider following

PPARAMETERS GEOGRAPHY & PHYSICAL INFRASTRUCTURE.

PROXIMITY TO SUPPLIERS & CUSTOMERS.

ROAD FACILITY.

DISTANCE FACTOR.

SERVICE.

CANTAINER SIZE.

DISTRIBUTION PATTERN.

TRANSPORTATION COST.

MAINTAINANCE COST


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C O N T .

PARAMETERS TIER - 1 TIER 2 & 3GEOGRAPHY & PHYSICAL

INFRASTRUCTURE.Good Geography &

physical infrastructure as

availability of plenty of

resources in tier- 1

Not that much developed as

compare to tier 1.

PROXIMITY TO SUPPLIERS

& CUSTOMERS.Here mainly concentrated

population ,so one

DC(Distribution centre)

can serve purpose of huge

customer base. But here

traffic curfews & zonal

restrictions reduces the

functioning of logistics.

Scattered population.

No traffic, so well

functioning of logistics.

ROAD FACILITY Good quality, which

increases the efficiency of

vehicles.

Poor quality, so affect life

span of vehicle.


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C O N T .PARAMETERS TIER - 1 TIER 2 & 3

DISTANCE FACTOR.

Vehicles has to cover less

distance

Vehicles has to cover more

distance

SERVICING Easily done ,bec- availabilityof tools & techniques in such

cities.

Sometimes very difficult tomanage it.

CANTAINER SIZE.

Generally small size

containers are used

Big size containers are

useful for bulk

transportation.

DISTRIBUTION

PATTERN.

Direct to retailers Indirect, 1st it goes to

primary DC & then

distributed to final

destination.


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C O N T .


TRANSPORTATION

COST.

Less transportation cost ,

bec concentrated location.

(Bangalore to Bangalore)

More transportation cost

,bec- more distance.

(Nagpur to Aurangabad)

MAINTAINANCE COST Less, as less functioning More , due to distance &

more functioning.


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3. WHAT APPROACH DO YOU PROPOSE FOR LOGISTICS

COMPANY TOWARDS TIER 2 & 3 CITIES

APPROACH

HUB & SPOKESYSTEM

APPROACH

LOGISTICMODEL

TRADITIONALMETHOD

OVERCOMEAPPROACH

JIT


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1. LOGISTIC MODEL APPROACH

SOURCE COLD STORAGE(FUEL +ELECTRICITY)

TRANSPORTATION

( FUEL)RETAIL DISPLAY

REPLENISHMENT

(FUEL + ELECTRICITY)CUSTOMER


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2 . J I T A P P A R O C H

Just In Time approach

Final produce reach to the customer each time &

every time. Delivery of produce here is very important.

3. TRADITIONAL METHOD OVERCOME APPROACH

Previously in Tier 2 & 3 cities of fruit & vegetables produce

transferred by traditionally like, Tractor, Truck, Bullock cart etc. Due to traditional transportation F&V loss occur more,to reduce

this & to maintain proper cold chain new method should be

follow.


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C O N T . .

v Various containers are-

1. REFRIGERATED CONTAINER

2. REFRIGERATED TRUCKS

3.FREEZER TRUCKS

These vehicles should be equipped with -

Data logger to record the temp. & out-cut

thermostat to maintain the temperature.

Reverse logistics approach(Aftermarket consumer survey) .


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3. HUB & SPOKE SYSTEM APPROACH

v It would be utilized for the distribution of perishable

commodities.

SHIPMENT

1. Road

2. Rail 3. Water ways

PRIMARY HUB

Transportto the finaldestination

.


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EXAMPLE

PUNE + NASHIK

HINTERLAND HINTERLAND

SOLAPUR JALGAON

SANGLI NAGPUR

SATARA AURANGABAD

MUMBAI Where produced can be consumed or Exported.


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CONCLUSION

v India is second largest producer of fruits (45.5 millionton) & vegetables (90.8 million ton) contributing 10.5%

& 14.5% of the total world production respectively.

v However , in stark contrast, Rs. 55,600 crore worth of

these , including grain & pulses are lost due to poor postharvest management of which inadequate or near non

existent cold chain logistics & storage is the biggest

contributor.

v As far as potential is to be concern affluent middle Indiais harder to ignore & now it seems that it is directly

related with core management principles applied by

various cold chain logistics players in the corporate war.


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T H A N K Y O U

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Mr. Anil Wanarse Patil