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SREI Sahaj e-Village Ltd

EMPOWERING RURAL LIVES
Agenda

         Sahaj: Raison d’etre


             Rural India: Bharat Driving India


               Capabilities: Redefining service standards


              Innovations: Emerging Businesses


          Expanding Reach: Partnership Opportunities
SREI Infrastructure Finance
 Limited


 Sahaj:100% subsidiary of SIFL



 Listed on BSE, 1st infra co. listed on London Stock
 Exchange

 Network of 86 offices in India and 3 in Russia



 SREI: 4 billion dollar infrastructure finance company




Pioneer in infra. Financing, with 22 years experience & turnover of 20,000
crore
Sahaj: Bridging the Divide


                                                                           ACCESS TO
                                                                           THE WORLD




                                                 H ec
                                                  um o
                                                   th

                                                      an nsu
                                                        in me
                                                          te r
                                                            rfa
                                                               ce
                                                                    fo
                                                    Support structure




                                                                      r
                                                               er
                                                            st
                                                          fa
                                                           re
                                                       ee u
                                                  ns fr ns
                                               tio ud o e
                                            ac fra y t
                                          ns d og
                                       tra an nol
                                              ch
                                            Te
                          Rural Citizens                                  Global Village




Through its digital, physical and human network Sahaj provides efficient
access to Remote Rural
Positioning
                                      28000 CSCs
                                      across 6 states




         State of Art
         Technology
                            Dimensions                  Pop Strata:
                                                        Sub 10,000




                        Delivery of
                        Products &
                        Services



       Sahaj providing services to villages with pop strata of
       sub 10000 through 28000 CSCs across 6 states by
       adopting technology
Empowerment through information

Reliable point for delivery
 Reliable point for delivery         Access to 280 million people
                                      Access to 280 million people   Bridge the 'delivery gap in
                                                                      Bridge the 'delivery gap in
of Products & Services
 of Products & Services              through 28,000 VLEs
                                      through 28,000 VLEs            GOVT, COMM & SOCIAL
                                                                      GOVT, COMM & SOCIAL




                               Making Information & Knowledge Available




 Village Level entrepreneur helps in dissemination of information
 through its ICT Centre : Human face to technology
National e-Governance Plan




                                           Sahaj has the largest CSC network


                                           Entrepreneurship at village
                                           level

                                           Technology to overcome geographical barriers


                                           Public Private Partnership (PPP) Mode




Sahaj is India’s largest CSC partner of the NeGP of Ministry of
Information Technology of Govt. Of India
Management Profile
                                            People who have
                                          been part of strategic
                                             corporate rural
            People who have                   interventions
             seen rural India
          in the cusp of Change


   Specialists with proven
Ruralrecord ofprogram for all employees
      Induction successful
  consumer engagements
       & brand launches


     Young vibrant professional
      from diverse backgrounds
     Galvanizing paradigm shifts            Drivers of Innovation
                                           and those who can usher
                                           change with significant
                                               scope and scale
Agenda

         Sahaj: Raison d’etre


             Rural India: Bharat Driving India


               Capabilities: Redefining service standards


              Innovations: Emerging Businesses


          Expanding Reach: Partnership Opportunities
Contributions from Rural


     70 % of Total
      70 % of Total       33 % of Total
                           33 % of Total          56 % of Total
                                                   56 % of Total
                                                                        64% of Total
                                                                         64% of Total
      population
       population            Savings
                              Savings                Income
                                                      Income
                                                                        Expenditure
                                                                         Expenditure




 •   More than half of FMCG and durables, 100% of agri inputs and 40% of automobiles
     sales comes from rural
 •   175 million mobile connections in rural…440 million by 2012
 •   Half of Life insurance policies sold in rural
 •   6 million self- help groups in rural…4 million linked to micro credit
Rural Economy: Service Sector




                                Source : Economic Survey & Bird of Gold, MGI
Rural Occupation: Self Employed




                                  Source : Max- NCAER , 2007
Rural Income Composition




 • Traditional rural income sources from farming – now changing to non-farm
 • Typically at least one person from farming households is employed in service sector  regular
   monthly incomes allowing planned expenditure.
 • Thus, less dependence on erratic agriculture and seasonal incomes.
Agenda

         Sahaj: Raison d’etre


             Rural India: Bharat Driving India


               Capabilities: Redefining service standards


              Innovations: Emerging Businesses


          Expanding Reach: Partnership Opportunities
Sahaj Operation Model




Challenges of cash management and information flow addressed through
real Time Transaction and voucher based funds flow
Sahaj Bouquet of Services


                  High Ticket, Low                    High Ticket, High
                  Engagement                          Engagement

                  • Gas Cylinder Booking              •   2 wheeler
                                                      •   Tractor sale
 Ticket




                  • General Insurance
 High




                  • Renewal Premium                   •   Life Insurance
                                                      •   Power Tiller
                                                      •   PFRDA
                                             SERVICES
              Low Ticket, Low Engagement          Low Ticket, High
                                                  Engagement
 Low Ticket




              •   BSNL Bill payment
              •   West Bengal Electricity Board   •   Agricultural Service
              •   Oxygen                          •   Consultation services
              •   IRCTC                           •   Commercial tax
              •   Courier service                 •   G2C
                                                  •   UID
                          Low                                 High Engagement
                       Engagement
Sahaj Bouquet of Services: Ticket Size


                 High Ticket, Low                  High Ticket, High
                 Engagement                        Engagement

                                                   •No. of services: 11
                 •No. of services: 8
    Ticket




                                                   •Average Ticket Size: 5000
    High




                 •Average Ticket Size: 2000
                                                   •No. of transactions: 5%
                 •No. of Transactions: 9%
                                              SERVICES
                 Low Ticket, Low Engagement       Low Ticket, High
                                                  Engagement
    Low Ticket




                 •No. of services: 10
                 •Average Ticket Size: 350        •No. of services: 6
                 •No. of transactions: 76%        •Average Ticket Size: 850
                                                  •No. of transactions: 10%

                          Low                            High Engagement
                       Engagement
CSC – State wise status
                               No of
  STATE      No of Districts            Roll out   Connected
                               blocks

  ASSAM            18           147      2833        2780


  BIHAR            27           361      5387        4001

 ORISSA            16           149      2426        1878


TAMIL NADU         4            56       1976        1047


  UTTAR
                   24           334      5560        3935
 PRADESH

  WEST                                                             BSNL
                   18           341      5822        4412
 BENGAL                                                             20%
                                                                          Others
  TOTAL           107          1388     24004       18053                  5%




                                                            VSAT           Data Card
                                                             52%             23%



Sahaj is the largest CSC player with 32 % of mandate and the only
player with a dedicated web portal & data centre
Sahaj CSCs
Profile of Sahaj CSCs


                                       CSCs within 20 to 80 kms from Tehsil level

                                       Average CSCs size: 200 sq feet

                                        Branding Space Available

                                      •3 Inside walls (2 side Walls + 1 centre wall)
                                      •1 outside wall (Front)

                                        Timing: 9:00 am to 7:00 pm


                                      High footfalls between 9 to 12 and 4 to 7 pm




Locations near market places providing homogeneous cluster of
audiences around CSCs and high footfalls in CSCs
Sahaj VLE Profile: Income
                                    VLEs              Average    Contribution
       Work Category          Distribution (%)         Income    by CSC (%)
General Merchant                    19                  5800          20
Contract Type Work                   8                 11500          10
Big Merchants                        7                 14500          10
Agri. Related Business              20                  6800          20
Business Agent (Insurance)           7                  8800          20
Service provider                    11                  8100          15
CSC Only                            28                  3950           100




                             35%
                                                         29%
                             30%
                             25%             22%                21%
                             20%
                                    14%
                             15%
                             10%                                           8%

                             5%                                                                        3%
                                                                                    1%       1%
                             0%
                                     A1          A2      A3     B1         B2       C1        D1       D2


                                                                             Data Source: MART Study’Aug 2011
  Sahaj VLEs have higher disposable income and willing to undertake
  new businesses
Sahaj VLE: Grassroots Influencer
      Prepare
      Customi
      zed MIS




                                                 VLE
                   VLE can do these activities



       Data                                                                                Can




                                                           VLE can organize activities
                                                                                         organize
       entry
                                                                                          events



                                                                                           Miking
Pamphlet
Distribution




                Communication                                                               Facilitate
                      in                                                                     Training
                 Local Dialect



    Sahaj VLEs serve as Key Opinion leader of the village and can
    undertake multiple activities and organize events
Sahaj VLE Profile




Data Source: MART Study’Aug 2011
Sahaj Customers’ Profile


Online Transactions    13
Offline Transactions   18
Idle Footfalls         12
Footfalls              43

Footfalls at CSC




                            Age Profile
Sahaj Customer Profile
• HH income of Sahaj customers   • Education Profile of Sahaj
                                   Customers
Agenda

         Sahaj: Raison d’etre


             Rural India: Bharat Driving India


               Capabilities: Redefining service standards


              Innovations: Emerging Businesses


          Expanding Reach: Partnership Opportunities
Emerging Businesses for Sahaj
                      MR/Data
                      Collection




     Activation/BTL




                                      CUSTOMISED GRASSROOT INITIATIVES



 Ad- sales (OOH)




                        Sales &               Edutainment
                       Distribution             centres
Marketing Research

            PEOPLE                      PROCESS                           SYSTEM
    VLEs                                                           • Questionnaire hosted
                                 • Back checks at all levels          on Sahaj website
                                 • Back Checks through CRM         • Data collected online
    MVLEs                        • Online data capture             • Collection Fees paid to
                                 • Data Digitisation at 10           all tiers through
    Sales Executive                centres per district              Skash card
    District Manager




   Past Projects

        •   Demand for new Services (April’ 2010)
        •   Cinema and TV viewing habits (Oct’2010)
        •   Entrepreneurship model for a PHD student (Jan’ 2011)
        •   Study by Nielsen on VLE profile (Sep’ 2011)



Sahaj VLEs can collect consumer insights from rural India
Ad-Sales & Activation

Inventories for Advertising
• Walls, hoardings, Bus-stop, Schools etc
• Sahaj Portal & magazine (Setu)
• RCCs and Sahaj Training Centres
• Sahaj Aaina (OOH)

VLE: The New Age Marketing Thekedar
• Identifies media inventory in all 6 mapped villages
• Negotiates deals with local inventory owners
• Monitors media inventory in the cluster of villages




Sahaj CSCs offering the last mile reach
Ad-Sales & Activation
Sahaj Aaina: OOH
                                      • Digital OOH launched for the first
                                        time in rural India

                                      • Regional Content for all 6 states

                                      • Content mix: Education,
                                        Entertainment and Social

                                      • Hyperlocal medium for
                                        advertising

                                      • Cost per exposure: 0.35 paisa




Sahaj Aaina is stretching media boundaries to reach out to media dark villages
Sahaj Edutainment centres

• IEE: All 3 key services to be provided through a single platform

• Digital platform using VSAT, Projector and Screen

• Sahaj entertainment centre will provide an electronic platform for

         INFORMATION                  EDUCATION                  ENTERTAINMENT




   …… through single screen in villages


Bringing education and entertainment together to remote rural locations
Sales & Distribution: Options
                            ORDER & SELL

                                   B


 CONSIGNMENT        A                               C   REFERRAL
    SALES                                               MARKETING
                               Sales &
                             Distribution

           SOLE                                 D       STOCK &
          SELLING       E
                                                          SELL
          AGENCY


  Sahaj offers multiple models for distribution of products
Agenda

         Sahaj: Raison d’etre


             Rural India: Bharat Driving India


               Capabilities: Redefining service standards


              Innovations: Emerging Businesses


          Expanding Reach: Partnership Opportunities
We assure you of…
                           •   6 states, 107 districts, 23k CSCs
                           •   Reach under 10k pop strata
         CAPABILIT         •   Footprint of 44 customers / day
                           •   Average OTS of ____
         Y                 •   Average transaction ticket size of Rs. 450/-
                           •   State of the art online portal
                           •   Trained talent for flawless execution


                       •   Multiple branding touch points: CSC & in - village
                       •   Consumer engagement programs
        OPPORTUNITY    •   Product Sales & distribution
                       •   Ground level MR – trade & consumer segments
                       •   Localized engagement & alliances



                       •   Real time ground MIS for all portal based transactions
                       •   VoC based on agreed time frame.
       MEASURABILITY   •   Proof of execution – pics, videos etc
                       •   Consumer validation data
                       •   All on - ground MR assignments
Thank You

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Empowering Rural Lives with Technology

  • 1. SREI Sahaj e-Village Ltd EMPOWERING RURAL LIVES
  • 2. Agenda Sahaj: Raison d’etre Rural India: Bharat Driving India Capabilities: Redefining service standards Innovations: Emerging Businesses Expanding Reach: Partnership Opportunities
  • 3. SREI Infrastructure Finance Limited Sahaj:100% subsidiary of SIFL Listed on BSE, 1st infra co. listed on London Stock Exchange Network of 86 offices in India and 3 in Russia SREI: 4 billion dollar infrastructure finance company Pioneer in infra. Financing, with 22 years experience & turnover of 20,000 crore
  • 4. Sahaj: Bridging the Divide ACCESS TO THE WORLD H ec um o th an nsu in me te r rfa ce fo Support structure r er st fa re ee u ns fr ns tio ud o e ac fra y t ns d og tra an nol ch Te Rural Citizens Global Village Through its digital, physical and human network Sahaj provides efficient access to Remote Rural
  • 5. Positioning 28000 CSCs across 6 states State of Art Technology Dimensions Pop Strata: Sub 10,000 Delivery of Products & Services Sahaj providing services to villages with pop strata of sub 10000 through 28000 CSCs across 6 states by adopting technology
  • 6. Empowerment through information Reliable point for delivery Reliable point for delivery Access to 280 million people Access to 280 million people Bridge the 'delivery gap in Bridge the 'delivery gap in of Products & Services of Products & Services through 28,000 VLEs through 28,000 VLEs GOVT, COMM & SOCIAL GOVT, COMM & SOCIAL Making Information & Knowledge Available Village Level entrepreneur helps in dissemination of information through its ICT Centre : Human face to technology
  • 7. National e-Governance Plan Sahaj has the largest CSC network Entrepreneurship at village level Technology to overcome geographical barriers Public Private Partnership (PPP) Mode Sahaj is India’s largest CSC partner of the NeGP of Ministry of Information Technology of Govt. Of India
  • 8. Management Profile People who have been part of strategic corporate rural People who have interventions seen rural India in the cusp of Change Specialists with proven Ruralrecord ofprogram for all employees Induction successful consumer engagements & brand launches Young vibrant professional from diverse backgrounds Galvanizing paradigm shifts Drivers of Innovation and those who can usher change with significant scope and scale
  • 9. Agenda Sahaj: Raison d’etre Rural India: Bharat Driving India Capabilities: Redefining service standards Innovations: Emerging Businesses Expanding Reach: Partnership Opportunities
  • 10. Contributions from Rural 70 % of Total 70 % of Total 33 % of Total 33 % of Total 56 % of Total 56 % of Total 64% of Total 64% of Total population population Savings Savings Income Income Expenditure Expenditure • More than half of FMCG and durables, 100% of agri inputs and 40% of automobiles sales comes from rural • 175 million mobile connections in rural…440 million by 2012 • Half of Life insurance policies sold in rural • 6 million self- help groups in rural…4 million linked to micro credit
  • 11. Rural Economy: Service Sector Source : Economic Survey & Bird of Gold, MGI
  • 12. Rural Occupation: Self Employed Source : Max- NCAER , 2007
  • 13. Rural Income Composition • Traditional rural income sources from farming – now changing to non-farm • Typically at least one person from farming households is employed in service sector  regular monthly incomes allowing planned expenditure. • Thus, less dependence on erratic agriculture and seasonal incomes.
  • 14. Agenda Sahaj: Raison d’etre Rural India: Bharat Driving India Capabilities: Redefining service standards Innovations: Emerging Businesses Expanding Reach: Partnership Opportunities
  • 15. Sahaj Operation Model Challenges of cash management and information flow addressed through real Time Transaction and voucher based funds flow
  • 16. Sahaj Bouquet of Services High Ticket, Low High Ticket, High Engagement Engagement • Gas Cylinder Booking • 2 wheeler • Tractor sale Ticket • General Insurance High • Renewal Premium • Life Insurance • Power Tiller • PFRDA SERVICES Low Ticket, Low Engagement Low Ticket, High Engagement Low Ticket • BSNL Bill payment • West Bengal Electricity Board • Agricultural Service • Oxygen • Consultation services • IRCTC • Commercial tax • Courier service • G2C • UID Low High Engagement Engagement
  • 17. Sahaj Bouquet of Services: Ticket Size High Ticket, Low High Ticket, High Engagement Engagement •No. of services: 11 •No. of services: 8 Ticket •Average Ticket Size: 5000 High •Average Ticket Size: 2000 •No. of transactions: 5% •No. of Transactions: 9% SERVICES Low Ticket, Low Engagement Low Ticket, High Engagement Low Ticket •No. of services: 10 •Average Ticket Size: 350 •No. of services: 6 •No. of transactions: 76% •Average Ticket Size: 850 •No. of transactions: 10% Low High Engagement Engagement
  • 18. CSC – State wise status No of STATE No of Districts Roll out Connected blocks ASSAM 18 147 2833 2780 BIHAR 27 361 5387 4001 ORISSA 16 149 2426 1878 TAMIL NADU 4 56 1976 1047 UTTAR 24 334 5560 3935 PRADESH WEST BSNL 18 341 5822 4412 BENGAL 20% Others TOTAL 107 1388 24004 18053 5% VSAT Data Card 52% 23% Sahaj is the largest CSC player with 32 % of mandate and the only player with a dedicated web portal & data centre
  • 20. Profile of Sahaj CSCs CSCs within 20 to 80 kms from Tehsil level Average CSCs size: 200 sq feet Branding Space Available •3 Inside walls (2 side Walls + 1 centre wall) •1 outside wall (Front) Timing: 9:00 am to 7:00 pm High footfalls between 9 to 12 and 4 to 7 pm Locations near market places providing homogeneous cluster of audiences around CSCs and high footfalls in CSCs
  • 21. Sahaj VLE Profile: Income VLEs Average Contribution Work Category Distribution (%) Income by CSC (%) General Merchant 19 5800 20 Contract Type Work 8 11500 10 Big Merchants 7 14500 10 Agri. Related Business 20 6800 20 Business Agent (Insurance) 7 8800 20 Service provider 11 8100 15 CSC Only 28 3950  100 35% 29% 30% 25% 22% 21% 20% 14% 15% 10% 8% 5% 3% 1% 1% 0% A1 A2 A3 B1 B2 C1 D1 D2 Data Source: MART Study’Aug 2011 Sahaj VLEs have higher disposable income and willing to undertake new businesses
  • 22. Sahaj VLE: Grassroots Influencer Prepare Customi zed MIS VLE VLE can do these activities Data Can VLE can organize activities organize entry events Miking Pamphlet Distribution Communication Facilitate in Training Local Dialect Sahaj VLEs serve as Key Opinion leader of the village and can undertake multiple activities and organize events
  • 23. Sahaj VLE Profile Data Source: MART Study’Aug 2011
  • 24. Sahaj Customers’ Profile Online Transactions 13 Offline Transactions 18 Idle Footfalls 12 Footfalls 43 Footfalls at CSC Age Profile
  • 25. Sahaj Customer Profile • HH income of Sahaj customers • Education Profile of Sahaj Customers
  • 26. Agenda Sahaj: Raison d’etre Rural India: Bharat Driving India Capabilities: Redefining service standards Innovations: Emerging Businesses Expanding Reach: Partnership Opportunities
  • 27. Emerging Businesses for Sahaj MR/Data Collection Activation/BTL CUSTOMISED GRASSROOT INITIATIVES Ad- sales (OOH) Sales & Edutainment Distribution centres
  • 28. Marketing Research PEOPLE PROCESS SYSTEM VLEs • Questionnaire hosted • Back checks at all levels on Sahaj website • Back Checks through CRM • Data collected online MVLEs • Online data capture • Collection Fees paid to • Data Digitisation at 10 all tiers through Sales Executive centres per district Skash card District Manager Past Projects • Demand for new Services (April’ 2010) • Cinema and TV viewing habits (Oct’2010) • Entrepreneurship model for a PHD student (Jan’ 2011) • Study by Nielsen on VLE profile (Sep’ 2011) Sahaj VLEs can collect consumer insights from rural India
  • 29. Ad-Sales & Activation Inventories for Advertising • Walls, hoardings, Bus-stop, Schools etc • Sahaj Portal & magazine (Setu) • RCCs and Sahaj Training Centres • Sahaj Aaina (OOH) VLE: The New Age Marketing Thekedar • Identifies media inventory in all 6 mapped villages • Negotiates deals with local inventory owners • Monitors media inventory in the cluster of villages Sahaj CSCs offering the last mile reach
  • 31. Sahaj Aaina: OOH • Digital OOH launched for the first time in rural India • Regional Content for all 6 states • Content mix: Education, Entertainment and Social • Hyperlocal medium for advertising • Cost per exposure: 0.35 paisa Sahaj Aaina is stretching media boundaries to reach out to media dark villages
  • 32. Sahaj Edutainment centres • IEE: All 3 key services to be provided through a single platform • Digital platform using VSAT, Projector and Screen • Sahaj entertainment centre will provide an electronic platform for INFORMATION EDUCATION ENTERTAINMENT …… through single screen in villages Bringing education and entertainment together to remote rural locations
  • 33. Sales & Distribution: Options ORDER & SELL B CONSIGNMENT A C REFERRAL SALES MARKETING Sales & Distribution SOLE D STOCK & SELLING E SELL AGENCY Sahaj offers multiple models for distribution of products
  • 34. Agenda Sahaj: Raison d’etre Rural India: Bharat Driving India Capabilities: Redefining service standards Innovations: Emerging Businesses Expanding Reach: Partnership Opportunities
  • 35. We assure you of… • 6 states, 107 districts, 23k CSCs • Reach under 10k pop strata CAPABILIT • Footprint of 44 customers / day • Average OTS of ____ Y • Average transaction ticket size of Rs. 450/- • State of the art online portal • Trained talent for flawless execution • Multiple branding touch points: CSC & in - village • Consumer engagement programs OPPORTUNITY • Product Sales & distribution • Ground level MR – trade & consumer segments • Localized engagement & alliances • Real time ground MIS for all portal based transactions • VoC based on agreed time frame. MEASURABILITY • Proof of execution – pics, videos etc • Consumer validation data • All on - ground MR assignments