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Articles & Case Studies

Tourism is an important industry in the economy of India. Its contribution is significant in the socio economic development of the country. It creates mew avenues of employment and generates the income of foreign currency.

GSTDC was established in 1973 and in 1978 the tourism corporation of Gujarat was formed.

The tourism development corporation of India has divided the sectors of tourism in eight segments for development of sectors and facility of tourists. Ahmadabad, Rajkot, Surat, vadodara, Jamnagar, junagadh, Bhuj and so on. In all these centers attempt has been made to increase structural facilities and provide modern amenities regarding commerce, communication, hospitality, transportation, and medical facilities

The function of Tourisam Corporation of Gujarat is to develop business activities related to tourism. Apart from this facility of lodging and boarding, transportation facility of packaged tour, planning of cultural festivals, organizing exhibition, posters, maps and distribution of tourism related information. This corporation has made arrangement for lodging and boarding at pilgrim places such as somnath, dwarka, ambaji, palitana etc. at sea resorts the corporation has created such facilities at chorvad, Mandvi,Bet dwarka, Porbandar, Hajira, Tithal etc. in forest area like sasan gir, such facilities are provided by tourism. Saputara a hill station noted for its uniqueness is developed by Gujarat Tourism. It has drawn the attention of all by attracting people through alliance with Indian Railway has started.

As per statistics of tourism department 70% tourists prefer Saputara, Kachha, Bet Dwarka, areas only 15% have preferred North Gujarat. The most important thing is about the expense. Local and the tourist from other states have spent Rs 500 per day. While foreigners spend Rs 1000 per day. The survey by tourism department shows that the age group of 21 to 25 22%, 26 to 40 age group 56% and above 60 years of age 6% people take the advantage of tourism. 55% people visit places of religion, 37% people visit historical places, and 4% visit for entertainment, 55% of the tourists visit Gujarat for business purpose, 35% visit for religious purpose and 5% visit for medical purpose.

The numbers of foreign tourists as well as tourists from other states have been increasing day by day. They visit mainly from December to February. In the same way domestic tourists also are increasing. Well known film star celebrity Amitabh Bachhan is the brand ambassador of tourism sector of Gujarat and another reason is the economic development of Gujarat has influenced many foreign and domestic tourists. In 2009 Gujarat was on the 10th rank in domestic tourists and 16th rank in foreign tourists. It proves that the development of Gujarat is considerably slow and less compare to these in other states so far as tourism is concerned. The root cause is lack of effective tourism policy, inadequate infrastructure, ineffective marketing and lack of the highest quality facility.

Rs 730 crore is allocated for the development of the infrastructure of tourism with a view to increasing infrastructure facilities private companies has been invited.


1 explains the functions of Tourism Corporation of Gujarat.

2. Explain strategy of providing service in tourism sector.

3. Explain causes of underdevelopment of tourism sector in Gujarat.

4. Explain the suggestion for the development of Gujarat tourism sector

5. How does the corporation manage service and demand in context of tourism sector?  

RUDI – The Gujarat Model of Rural Distribution Network

RUDI is an internal network of Self Employed Women's Association (SEWA) which   was started in 1972 in the western state, Gujarat. However, today it is helping women  across the country through social network building, financial inclusion and agriculture empowerment with the prime objective of generating employment opportunities for them.  

In 1999, the Department of Rural Development of Gujarat and  Self  Employed  Women's Association (SEWA) have founded SEWA Gram Mahila Haat (SGMH) in order to eliminate middleman and provide direct technical financial and marketing facilities to the rural  poor producers of the state. The programme focuses on linking local producers in four sectors- agriculture, salt, forest produce and handicrafts to large corporate bulk buyers.......

The main objective of the organisation were defined as to quality products produced  by the rural producers reach the rural markets under a common brand of RUDI, Employment  to  women, Rid middlemen so farmers can get good prices and the consumers can get the goods in competitive prices. The 6.5 lakhs SEWA members to be further integrated through the Rural Distribution Network. There are five RUDI processing centres that cover 14 districts. Each  processing centre has a technical team comprised of six groups that facilitate all post harvest  management activities.

First team is doing Procurement of products. Women purchase agro- produce in tons. This is a significant process because these local women are introduced to the fundamentals of market pricing; they become familiar with price discrepancies between suppliers and also learn how to determine fair pricing. Second team is doing processing and packaging works. Rural women are taught to clean, sieve, grind, weight,package and label agro- commodities. This stage introduces the concept of  value added' to women producers who are witness to the transformation of a raw material to a marketable product. Third team is doing Quality Control Agro- commodities are inspected for quality. Women learn about the meaning and value of product quality. Forth team is doing Brand Promotion Rural women spread awareness about RUDI products. They learn most effective ways of spreading awareness about a brand. Fifth team is doing Marketing for every processing center, there are round 100 Rudiben who work to market Rudi products. Rudiben learn to effectively advertise products to buyers. RUDI products are promoted as 'value for money' products that are 'pure' because they are developed at the local level by rural women. Sixth team is doing Record keeping and Accounting. A small contingent of women is trained in basic financial accounting.                  

The rural distribution network that  is RUDI works through dedicated centres that  operate at all levels of  processes. Village hubs cater to three villages at any given  time. Above village hubs are district level hubs. There are storage and processing centres at all village hub centres. Distribution centres set at the village and district levels. RUDI retail outlets operate in villages across the state. A targeted 80% of  total production is sorted , cleaned and packed at village hubs. It is then sent to the District hubs were it is supplied to  sellers based on demand.

Today, there are five RUDI processing centres catering 14 districts in Gujarat. Each centre is comprised of technical teams that nurtures rural business women at all levels of the supply chain- from purchasing to marketing. The sales turnover has been doubling year over year and aims to reach 6 crores in 2010-2011. The profit margin has already reached 12 percent.


(1)   Discuss the objectives of RUDI.

(2)   Describe the advantages of RUDI to rural areas.

(3)   How Rudiben can be motivated ?

(4)   Which function RUDI'S six teams are doing?

(5)   Suggest your idea to make rural distribution more effective. 

  • Rural marketing in FMCG sector..... View More

With the urban market saturated, FMCG companies are now targeting the rural markets. In spite of the income imbalance between urban and rural India, rural holds great potential since 70% of India's population lives there. Due to the recent government measures like waiver of loans, national rural employment guarantee scheme and increasing minimum support price, disposable income in rural India has been rapidly increasing. However, rural markets present their own sets of problems. These include poor infrastructure, dispersed settlements, lack of education and a virtually non-existent medium for communication. Furthermore, retailers cannot be present in all the centers as many of them are so small that it makes them economically unfeasible.

The  ‘project shakti’  by HUL ( Hindustan Unilever Limited)

By the late 1990’s, though the company had a vast reach and was the market leader, it was looking for the next big opportunity. The aim was to get to really small villages not reached by their distribution network. India is the second

largest country in terms of population size after China and over 70% of its more

than one billion people live in rural areas. While the business rationale was clear, setting up a distribution channel to reach remote parts of India was less straightforward. The company was  tapping into some of the rural populations through tools such as van road shows, but a large share remained outside its reach.Hence it came up with an interesting solution: build a distribution system through a network of women micro-entrepreneurs to get the product directly to consumers. The solution also aimed to assist rural entrepreneurs to start businesses and improve living conditions in their regions. The business objective was to extend company’s direct reach into untapped markets and to build brands through local influencers. The social objective was to provide sustainable livelihood opportunities for underprivileged rural women. The model proved to be an excellent way of tapping the fortune at the ‘bottom of the pyramid’.

The recruitment of a Shakti Entrepreneur or Shakti Amma (SA) begins with the executives of HUL identifying the uncovered village. The representative of the company meets the panchayat and the village head and identify the woman who they believe will be suitable as a SA. After training she is asked to put up Rs 20,000 as investment which is used to buy products for selling. The products are then sold door-to-door or through petty shops at home. On an average a Shakti Amma makes a 10% margin on the products she sells.

An initiative which helps support Project Shakti is the Shakti Vani program. Under this program, trained communicators visit schools and village congregations to drive messages on sanitation, good hygiene practices and women empowerment. This serves as a rural communication vehicle and helps them.

               The main advantage of the Shakti program for HUL is having more feet on the ground. Shakti Ammas are able to reach far flung areas, which were economically unviable for the company to tap on its own, besides being a brand ambassador for the company. Moreover, the company has ready consumers in the SAs who become users of the products besides selling them. Shakti is not only a channel for increasing the company’s reach, the Shakti entrepreneurs are also brand ambassadors for all HUL brands in rural India. Their relationship with consumers is forged by their home-to-home contacts, and goes a long way in building brand loyalty. The Shakti Initiative, started back in 2000 when they worked closely with rural self-help groups, microcredit lenders; nongovernmental organizations (NGOs), and the Indian government –the key forces that were driving opportunity creation to elevate poverty.

           In general, a member from a SHG was selected as a Shakti entrepreneur, commonly referred as 'Shakti Amma'. She received stocks from the company’s rural distributor. After being trained by the company, the Shakti entrepreneur then sold those goods directly to consumers and retailers in the village.

Study  Questions

(1) For which objective ‘project shakti ‘is established?

(2) what are the various roles played by’ Shakti Amma’ for rural?

(3) How the marketing strategy of HUL differs from others in rural areas?

(4) Mention some popular brands of FMCG from HUL.

(5)Give your suggestions for further increase in rural sales of HUL FMCG.

  • Dabur India ltd in rural market..... View More

Dabur india ltd in Rural market is famous for ayurvedic herbal products. Dr. S.K.Burman started a very small shop of Medicine in Kolkata. He used to send medicine in small villages by post.

In 1896 at ghadhya near Kolkata he started a medicine manufacturing plant thenafter in 1991 Dabur establish its first laboratory for research & development.  In 1920 narendrapur aurvedic medicine preparation facitlites where started. Dabur amla hair oil, dabur red tooth powder, dabur hajmola and dabur pudin hara are most popular brands. In 1992 Dabur started manufacturing Bubble gum. Dabur is the second company of the world preparing intakes cell ‘anti-cancer’ medicine.Its manufacturing unit is in uttarakhand,Badrinath and himachal Pradesh.In 1995 Dabur has started to produce dairy products .In the next year it entered in food and beverage market by launching ‘dabur Real’ fruit juice.In 1998, a great change came because the burman family assigned company’s management to professionals.

Dabur ‘s product  category includes hair care, oral care, health care, skin care home care and food care.Dabur amla hair oil became very popular for common manwith highest sales.Considering its natural material ingredients, the company entered in rural market.It is available in variety of pack size.e.g 3.5 ml,8 ml,50ml,100ml,200ml, and 500ml.In rural area this product’s other competitors are also trying to capture more market share.

    In 1970, the company entered in oral care segment with ‘Dabur lal dantmanjan’.the factors behind its success were affo     Today rdable price,various sizes, and availability in toothpaste and toothpowder .In 1978 Dabur introduced for the first time ayurvedic appetite increasing tablets ‘Hajmola’ in very convenient small packs.It was sold on big scale in rural markets.Besides this, Dabur successfully sells chyavanprash ,  janamghutti ,dabur lal tel ,odomos oil,  and babool toothpaste. For sales promotion the company uses t.v. commercials,wall paintings, fairs,haats and video vans in rural.

Study questions

(1) Explain business strategy of the company to enter in rural market.

(2) Identify competitive brands of Dabur amla hair oil.

(3) What is USP of Dabur hajmola and Dabur lal dantmanjan ?

(4) Suggest any other product category  for rural market in which Dabur should enter.

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