The business plan attempts to bring forward an innovative way of organising the rural markets. The study aims at making products accessible, available and affordable through small unit packs, low profit margin/unit and high return on capital employed. It targets the people in the villages and works towards improving their standard of living of the people. This plan explains about the high growth potential and the future retail hub for the companies in search of new markets and strives to prove that the bottom of the pyramid market is not only lucrative but also very profitable.
As per the study, entering a rural market would need making the existing kirana shopkeepers as employees of paropakar and selling products through their shops. This would remove incurring of the infrastructural overheads, get first mover advantage and utilise the experience of shopkeepers to serve customers better. The advantage to the seller is higher profit margin with fixed amount of salary and convince in procurement of goods. The buyers will be getting more variety with cheaper prices paid on these goods. The methodology followed here is the evaluation of the model using the Michele Porter’s Five Force model and SWOT analysis. A survey has been conducted among four shopkeepers and it gives their views on this model. This also attempts towards bringing in the best technology to serve the rural consumers.
The main aim of this business plan is that it should be serving the people of the villages and as a company it should be able to perform its societal obligations.
Saturday, December 6, 2008
Paropakar a Rural retail Business Model
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