Multi-state Cooperative SocietyJai Desai – 09

Furquan Deshmukh – 16

Zahan irani – 22Pritpal Khokar –

25Smilie Misquitta –

35Joshua Nagawkar

– 40Shraddha Patel –

48

Topics covered in Presentation Role of Co-operative in Indian economy Multi-State Co-operatives Introduction Features of Multi-State Co-operatives Case Study – NCCF Recommendation to NCCF New Rural Marketing Program through

Multi-State Co-operatives : Mobile Phones

Role of Co-operatives in Indian Economy During the year 2007-08, Co-operatives

accounted for: 46% of Agricultural Credit disbursement 36% of fertilizer distribution 59% of sugar production 32% of wheat procurement 65% of Storage facility

Developments so far…

In Fertilizer production & distribution the Indian Farmers fertilizer Cooperative ( IFFCO) with a domestic annual capacity of producing 4.3 Million tones of nitrogenous fertilizers, commands over 35 percent of the market with over 50 million farmers associated with it .

In the production of sugar the cooperative share of the market is over 58percent and in the marketing and distribution of cotton they have a share of around 60 percent.

The cooperative sector accounts for 55 percent of the income in the hand-weaving sector.

Cooperatives process, market & distribute 50 percent of edible oils .

Multi-state Co-operative

A multi-state Cooperative Society means a society

registered or deemed to be registered under the Multi

State Cooperative Societies Act, 2002 and includes a

national Cooperative society or a Federal Cooperative.

Features

Objective – Interest of members and community

No. of Members Individual membership: minimum 50 from

different states Societies: minimum 2 societies from different

states Multi-state cooperative: multi-state cooperative

and a society can sign for the registration

Control – The Central registrar of Cooperatives advises in the affairs of a multi state society

Management – Chairperson, Managing Director and Chief Executive are elected by board of directors

Features continued…

Voting Power – One member has right of one vote irrespective of no. of shares held of any denomination

Shares Not issued to general public Only equity shares are available Shares can be withdrawn as per the byelaws

Distribution of profit – Minimum 25% of net profits should be transferred to the General reserve and the maximum dividend cannot exceed 20%

National Cooperative Consumers’ Federation of India Limited

CASE STUDY

NCCF

Set up on 16th October 1965 It is an apex federation of the consumer cooperatives

in India Headquarters at New Delhi 34 Branches in different states 136 members (31/03/09)

Main Objective To provide supply support to the consumer cooperatives and other distributing agencies for distribution of consumer goods at reasonable and affordable rates besides rendering technical guidance and assistance to the consumer cooperatives.

Membership

State level Consumer's Coop. Federations – 20

National level Apex Coop. Federations – 02(NEFED + NCUI)

Large sized Wholesale/ Central/Dept/ – 112 Primary Stores

Government of India – 01

National Cooperative Development – 01 Corporation(NCDC)

Total 136

MANAGING DIRECTOR

Vigilance Addl. MD

PERS. & ADMIN A/CS & FINANCE BUSINESS R & D

GM ( P & A ) GM ( A & F )

•Pers & admin•Legal•Official Language

•Board & Policy•Grievances•Coordination•Publicity•IT

•Accounts•Internal Audit•Recovery

GM (Mktg) Sr. Adviser General Manager

•Merch.•Grocery•Coal•CG•Textile

•Import & Export•Agri Inputs•Cooperation

•Housing•Infra- Structure•Industry

Manager R & D

•Mktg Intelligence•Lab Accredition

Organization Chart

Financial Highlights

Sales Performance

Business

Grocery Agri-inputs & infra-structure General Merchandise Textile Confiscated Goods Import & Export Coal New Line of Business

Let us see some highlights of the above

Grocery

The Grocery business increased from 164.80 Crores in 2006-07 to Rs. 232.82 crores during the year under review.

This was mainly due to efforts made to supply of food grains, various kinds of pulses, edible oil, spices and agricultural seeds to the cooperatives/state agencies and other buyers.

The Federation is likely to procure sizeable quantity of paddy in few States during the Kharif 2008-09 under Minimum Price Support Scheme in order to boost the sales turnover

Agri-inputs & Infrastructure

Agri related infrastructure projects like Modern Terminal Markets, Megha Food Parks, Integrated Agri Biotech Park with the permitted financial assistance of APEDA

Pack House/Perishable Cargo Complex at Airports in Gujarat and Madhya Pradesh with the permitted financial assistance of APEDA.

General Merchandise

During the year under review the sales of General Merchandise stood at the level of Rs. 149.47 Crores during the 2007-08 in comparison to the sales of Rs.149.68 Crores during the year.

Though the Government has issued revised order in modified form in respect of supply of stationery and other office use articles to Government Departments in favour of the federation, no significant impact has been felt as far as sales is concerned

Textile

The sales of non controlled textiles has registered growth as compared to the previous year. It was Rs. 18.57 Cores in the year 2007-08 as against the sales of Rs.14.06 Crores during 2006-07.

Closure of many textile mills in organized sector is the main reason for less turnover in this commodity.

Confiscated Goods

The Federation, which is an agency nominated by the Government of India for lifting & distribution of confiscated goods from customs, continued to lift consumer confiscated goods on all India basis.

It distributed confiscated goods comprising of various items to the extent of Rs. 9.45 crores during the year as against the sales of Rs.12.78 crores of the previous year

Import / Export

The Federation exported 9000 MTs of par boiled rice to Bangladesh under Indian Flood Relief Assistance during the year 2007-08. Besides, Federation exported 35,353 MTs. of onion through associate shippers

Coal

The Federation has faced operational problems to procure Coal from the subsidiaries of Coal India Ltd. due to change in Govt.’s policy/guidelines.

Inspite of the obstacles encountered upon, the sales turnover during the year 2007-08 has increased to Rs. 74.37 crores as compared to the turnover of Rs. 49.74 crores during 2006-07

New Line of Business (NLB)

With a view to diversify its commercial operations in the changed

economic scenario, the Federation has been exploring possibilities

of adding new lines of business

Distribution of Select items of daily use by the masses alongwith major PDS items in four States viz. Maharashtra, Gujarat, Rajasthan and West Bengal (Two Districts in each State as a Pilot Project).

Development of Housing Projects in Kolkata being undertaken by the Federation on the land allotted by the Govt. of West Bengal is still in progress which is expected to be completed by March, 2010

Lifting and distribution of Iron Ore Fines in Jharkhand.

Distribution of Eggs to the School Children under Mid-day Meal Scheme and Arhar Dal under supplementary Nutrition Program/Emergency Feeding Program in the State of Orissa

New Line of Business (NLB)

Supply of Sanitary Items in the rural areas in the State of Andhra Pradesh under Total Sanitation Program launched by the A.P. Government.

Supply of agri-inputs like pesticides, insecticides, bio-fertilizers, micro nutrients, seeds to the Government Agencies.

Revival of functioning of Super Bazaar under Joint Venture with M/s. Pantaloon Retail (India) Ltd.

The Federation has also made attempts to enter into the following new lines of business:- Medical Tourism Undertaking sale of Liquor.

Services

Supplier Cities

DELHI / GUWAHATI / KOCHI / KOLKATA / NASHIK / NOIDA

Services Undertaken

Render technical guidance and assistance to its member institutions in particular, and consumer cooperative societies in general and management methods to improve and increase their operation and management efficiency.

Establish trade connections with manufacturers, their authorized distributors and suppliers/dealers including Government agencies and cooperative organization and to undertake purchase, sale and supply of:- Agricultural commodities like food grains, pharmaceutical

items and other consumer goods Manufactured and value added items and other Consumer

Goods. Coal and its by products, chemicals, fertilizers, pesticides,

insecticides and other industrial goods Undertake supply of the above items in wholesale and retail

as well as to Govt. departments/State Agencies /Cooperatives small scale industries and private parties.

Services Undertaken Cont…

Establish, run or sponsor processing of agricultural commodities like food grains, pulses, spices, tea, oilseeds, etc.

Import and export of agricultural commodities like, foodgrains, pulses, spices, oilseeds etc and any other item permissible under import and export policy

Secure from the Government or other sources requisite facilities, assistance and financial aid, both for self and for its member-institutions

Acquire land, building, warehouse, vehicles, factories, workshops, machinery and equipment for its activities.

Coordinate the working of its member institutions with other national level cooperative institutions.

Collect and disseminate necessary marketing intelligence for the benefit of its member’s institutions.

Services Undertaken Cont…

Do all such things and take such steps as are incidental or conducive to the attainment of any or all the objects, in collaboration with other cooperatives, public sector undertaking and other Agencies

Establish testing laboratories for testing of consumer goods To act as agents of Central/State Government for the

purpose of sale, storage and distribution of consumer goods.

To subscribe to the share capital of other cooperative institution as well as other public sector enterprises.

To enter into collaboration with International Agency(s) or Body(s) for undertaking international trade.

Arrange supplies of various items required by the Central/State Government, Public Sector Undertaking/Cooperative Organizations

Grievance Redressal

The Grievances Officers have been nominated in each Branch and also in Head Office of NCCF.

The customers/buyers/suppliers (Registered) can send their complaint in writing to the above said Grievances Officer for redressal of the same, if necessary they can also meet the Grievances Officers.

The Grievances Officers would redress the grievances within a maximum period of three months.

The Head of the Branch and Divisional Heads including Chief Vigilance Officer and Managing Director meet the complainants from 11.00 A.M. to 12.30 P.M. on each Wednesday.

The Managing Director also hears the grievances during his tour to the branches. The concerned Branch notifies the programme of the Managing Director on Notice Board for the information of the public.

Recommendation – Online Commerce

Step 1.Create a Profile Page to advertise your cooperative

Step 2.Create a password and provide it to vendors to join your cooperative

Step 3.Put in your delivery area and days, or the buyers you sell to

Step 4.Registered buyers can see your Profile Page and price sheet and order for delivery

Step 5.Deliver your local food and receive payment based on terms of invoice. Local Dirt does not receive

NEW RURAL MARKETING PROGRAM FOR MOBILE COMPANY WITH HELP OF MULTI-STATE COOPERATIVE SOCIETY

Telecom Market in India

IAMAI report 2009 – Internet & Mobile Association of India

400 million mobile user 80 % is urban user & 20 % rural user Still 770 million don’t have mobile Telephone density is about 35% in India Still 75 % area is uncover

Reference - http://www.iamai.in

Need & Marketing Challenges

Need Challenges

Low disposable income Affordable Product

Wide separate market Distribution

Different culture, language Incorporate regional language

Consumer are not technology drivenFunctional Complete Product

Eg.- Mobile with SIM card

Low awareness level, low literacy level

Information, education campaign

Different lifestyle, different mindsetInnovative product design for rural need

Decision takes longer time Continuous Relationship

New Marketing Program

Nokia, Airtel can jointly tab rural market Utilize existing multi-state cooperative Business alliances - Rural marketing

contract with IFFCO - Indian Farmers Fertilizer Cooperative

Win - Win situation for both

Benefits to Companies

Better Connect with Rural Market Existing setup across India – Reach Spread Network of multi-state

cooperative Existing members, customers Better consumer understanding Local people as team members –

advantage of language, culture knowledge

Benefits to Consumer ( Farmers) Availability of product & reasonable pricing Communication mode which connects with

urban market Information of market Better business opportunity Contactable at any time Eg: With mobile buyer can contact farmers

any time he doesn’t have to wait till he comes to the market

Marketing Mix - Product

Airtel network connection & Nokia Mobile Handset

Agriculture Value add Services

Product Market prices list Better negotiating power with

local agents

Input prices Better buying power

Weather update Better productivity

Price & Distribution

Price Affordable price Mobile from Rs. 1,500 to 2,000 Call charges – prepaid card, per second

charges

Distribution Existing IFFCO distribution network Training and marketing guidelines

Promotion – Free Charging Booth Free battery charging

booth at cooperative office

Operating on solar energy

Solves the energy problem at minimum cost

Only Booth setup cost & maintenance cost

It is practically done for other product like lights

Wall painting

Radio Ads

Promotion - Advertisement

Educate postman about product Give him postcard of product Give incentives for distribution He will explain product while distributing postcard

Promotion

Society meetings, Mela, Haat, Mandi..

Opportunity to identify opinion leader

It will help in understanding customer psyche

Demonstration of how to use, benefits, solve other queries

Promotion - Demonstration

Identify people who can’t afford to pay Rs. 1500/- at once Ask them how much they can save per day, eg. Rs. 25 Give them Gullak (piggy bank) In two months they can buy a Mobile

Promotion – Gullak Bachat

Identify potential buyer

Opinion leader or influencer

Farmer, Students, Sarpanch

Give it for a two day trial or One week trial

Promotion – Product Trial

Sponsor it as prize

Wrestling events, Bullock cart Races

Promote the Brand to audiences from different villages

Word of Mouth

Promotion – Sponsorship

THANK YOU