Page 59 - MARKETING & PUBLIC RELATIONS EBOOK IC88

companies had opened chain stores, some in the nature of the malls in towns. The experience of
all these initiatives has not been uniform. DCM had opened 300 stores by 2008. By 2012, it
closed most of them, as profits were low. Godrej had 45 outlets in Punjab and Gujarat. Over the
year 90 % of sales came from groceries and consumer goods, compared to 33% from farm
inputs, when they started. They believe that local franchisees can do better with these stores as
they build stronger customer relationships.

5. Among the many entrepreneurs seeing business opportunities in the rural areas is 101
Commerce Services. It is set to help traditional shops fight online organised retailers with the
use of technology. With its technology platform Shop X, it seeks to provide small retailers the
same level of technology, logistics, sophistication and supply which e-commerce or organised
retail uses.

F. INSURANCE IN RURAL AREAS

(a) Selling Insurance

 It has been noted earlier that selling of insurance is a difficult task even in the urban areas.
Resistance to the sale is natural. Agents would therefore be reluctant to work and develop the
rural markets.
 Rural agents must find ways to improve the ratio of effort to result.
 These persons have the added advantage, that they would already have gained the trust of the
customers.

(b) Crop Insurance

The Pradhan Mantri Fasal Bima Yojana covers distress due to crop failure or damage because of
unseasonal rains, monsoon failure, storms, floods, pests or diseases. It will cover at least 50% of the
11.86 crores farmers, of which 61% had small and marginal holdings (below 2 hectares).

(c) Micro Insurance

To enable insurance companies to provide insurance cover to the poorer sections of society, the IRDA
introduced the concept of micro insurance.

A new variable hybrid life policy cover was also recognised as micro insurance, which is a policy with
systematic contributions with term insurance and a lock-in period of 5 years, during which surrender
was not permitted, but partial withdrawals may be permitted.

Micro insurance can be sold only through specially licensed micro insurance agents, who have to
undergo training at the time of initial appointment and every three years thereafter. NGOs, Self help
groups and microfinance institutions are permitted to be intermediaries.

(d) Uplift Mutual

Uplift Mutual is a fully community owned, comprehensive health risk management scheme, working
among the slums in Mumbai, Pune and Rajasthan Thin persons who are covered by the scheme own the
Company. They become entitled to receive the benefits from

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