Theni Chandai Visit

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Theni Chandai VisitRural Marketing

On 14-03-2015Team-9Subramanian Indhu MathiSurya Rao

Objective of the project: To familiarise our-self on the system of functioning of a typical rural chandai , sellers activities on selling materials in / out supply chain logistics , consumer behaviour, study on sale of spurious product in the chandai, life style / culture related sales other than routine sales, competition strategy, approximate sales turn-over seller-wise, rules / formalities to carry out business trade in the chandai and consequences on non-existence of this chandai concept (i.e. pros and cons of chandai concept) Inception of Chandai: It had been started around a half century ago.Sellers business start-up in the chandai: The general system is First-come-First-serve. Initially sellers have to get a place of their choice in the chandai against availability and the formalities towards business commencement inside chandai are to go with the local municipality / township and with the chandai lease taker if any.Then a Weekly rental of around Rs.170/ which may vary with respect to access-space / area of each shop and other factors need to be paid by sellers holding those shops.Business hours: Weekly once (i.e. on every Saturday) from morning to night. During forenoon session vendors, retailers, whole sale sellers keep visiting more to buy and during evening session consumers (workers) keep visiting / purchasing more. Sellers Population: Around 300Sample type: Convenient sample of study with respect to time sparability of sellerFew generic Sales data of chandai: The Sellers whom had been taken as samples of chandais sellers population, being furnished below with some details:Main products sold: FMCG:-Soap, shampoo, groceries, pooja items, snacks and beverages, commodities like vegetables, grains / pulses, palm/sugarcane sugar and other farm fresh products.Most selling brands: Aachi masala, Anil seamiya HULs Hamam, Lifebouy, Lux Kavin cares Chik shampoo Wipros SantoorInterview with few Vendors: 1. Name: Ms. SelviNature of selling: Retail sellerSupply: From auction sales Duration: Last one year in the chandai business Rent: Rs.150/month (Tender payment)Sales: Rs. 800-100Products Available: Farm Products (Onion, Garlic, Vegetables)

2. Name: Mr. SundaramNature of selling: Retail sellerSupply: Own mills product (Each 250gm pocket @ Rs.25)Sales: Rs. 2000-5000Products Available: Farm Product (Masala Powder)

3.Name: Mr. MuniyyappanNature of selling: Retail sellerSupply: From whole sellers (3levels of intermediaries)Products Available: Farm Product (Palm /sugan cane sugar jiggery, Tamarind)Duration: Last 25yrs.

4. Name: Mr. MaidenNature of selling: Retail sellerSupply: Own Production (Detergent Powder)Duration: 3 YearsRent: Rs. 70Product Available: FMCG (Classic Detergent/ Pooja Items)Sales: Rs. 500- 1000

5. Name: M/S. Fathima StoresNature of selling: Retail and Whole sales BusinessSupply: From own StoreDuration: 15 YearsRent: Rs. 170Sales: Rs. 5000-10000Products Available: FMCG (Lifebuoy, Lux, Hamam, Chik, Dove, Medimix)

6. Name: VanathaiyuNature of Selling: RetailSupply: Collecting Hen and Cock from different locationsProduct Available: Animal Husbandry (Hen and Cock)Sales: Rs. 2000-4000Rent: Rs. 150

7. Name: Bema RajNature of Selling: Retail and WholesaleSupply: From farmersPrice: Based on the News PapersSales: Rs. 2000-3000Rent: Rs. 160Pagadu: Rs. 6 for Coconut, Rs.14 for FMCG storesRetail Sales: By priceWhole Sales: By WeightageVendors: 60Duration: One Year

Case Study:Mr. Bema Raj is 45 years old who lives in Bodi, Theni District. He studied up to 5th standard and his main occupation is selling coconut in Chandais of Theni District. He started his business last year before that he was working for daily wage in a construction company. Where he couldnt satisfy his family need. He has two children studying in 8th and 5th respectively in a Government School. Before coming into the coconut business he worked some time in vegetable stores to understand the basic need of vegetable business and later he made contacts with the coconut farmers and he started his business last year.He buys the coconut from farmers based on the weightage of total coconuts harvested from the particular farmer. He reads Daily news papers and gets to know about the different price range for coconuts in the vegetable markets like, oddanchatram market, Chennai market etc., He buys in bulk from farmers he has 60 vendors who supplies coconuts for him through auction method. If Bema Raj can afford to pay the highest price for the coconut then he buys from the farmers. The market is equally distributed with wholesalers of coconut and retailers like him. There are 8 coconut retail sellers in the chandai located at a desirable distance so that no one gets hit from the others. The price range of coconut is same from all the retailers. He also does wholesale business if his regular customers wants to. He gets into the understanding between the customers so both the parties have Win-Win situation.He buys in bulk and sells in single quantity or more as per the customers need. If the customer buys in bulk then the price/ coconut is not considered instead of weightage of the bulk coconut is considered this is due to the size of coconuts. Size of coconuts is a main parameter to set the price in case of retail but in case of wholesale the size of coconut doesnt matter instead the weightage plays a main role.He has 60 suppliers who are not predetermined who ever sells at low price in auction he goes and buys it. The farmers intimate the buyers and when all the buyers gather at the farmers place then they start the auction. He travels to two more chandais in Theni District they are Tuesday- Kambam Chandai, Thursday- Chinnamanur Chandai on Saturdays- Theni Chandai. During the weekends he takes leave and spend time in buying the supplies and with his family.He earns profit based on the amount he spend on auction and the market price of the coconut. His revenue per Chandai will be from Rs. 2000 to 5000.

Look alike and spurious productsOriginal ProductSpurious and Look alike Product

ConclusionTheni Chandai is one of the big market in theni district it is located in the heart of the city where the customers are from Retail store owners and in the evening time the common people gather at this place to buy daily groceries at a low price when compare with the basic brick and mortar stores. This district even has Ulavar Chandai where the farmers can sell their product directly to the end user at a low price here the intermediaries are avoided and the farmers gets better value for their product. But in case of Theni Chandai there are lots of intermediaries and this Chandai operates only on Saturdays which is not a good place for farmers to sell their products daily. So this market is very useful for those who undergo retail sales.

Rural MarketingTSMTeam-6