(Subject: Marketing strategy)

Rural retailing constitutes more than 95% of total retail revenues with more than 70% of India's population concentrated in the rural areas. Rural hypermarkets are growing at a blistering pace meeting the unique requirement of the rural consumer. The range of services provided by the rural retailers extends from creating a platform to buy and sell farm produce, to banking services, to restaurants,etc. One of the key players in the rural retail segment is ITC with its Choupal Sagar initiative. ITC has 14 outlets in operation presently and plans to increase the number to 700 over the next 7 to 10 years. ITC choupal Sagar retail products acts as a procurement hub for ITC e-choupal where farmers are offered better rates for their agricultural produce compared with prevalent market rates for the same. Other examples of players and their services in rural retail segments are DSCLs Hariyali Kisan Bazaar which has more than 70 outlets presently and company proposes to operate a total of 200 outlets over next 12 months Reliance Retail and Pantaloon Retail India Limited are expected to undertake more ventures to capture the fast growing and tap potential in rural retail segment.

a. Why do we call that rural retail has abundance potential in India. Justify it? (500 words)

b. What kind of market strategy can be adopted by ITC to strengthen its presence in rural segment of India? (500 words)