Theni Chandai Visit

Rural Marketing

Team-9
Subramanian
Indhu Mathi
Surya Rao

On 14-03-2015

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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 300
Sample type: Convenient sample of study with respect to time sparability of seller
Few 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 Santoor
Interview with few Vendors:
1. Name
Nature of selling
Supply
Duration
Rent
Sales
Products Available

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: Ms. Selvi
: Retail seller
: From auction sales
: Last one year in the chandai business
: Rs.150/month (Tender payment)
: Rs. 800-100
: Farm Products (Onion, Garlic, Vegetables)

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2. Name
Nature of selling
Supply
Sales
Products Available

: Mr. Sundaram
: Retail seller
: Own mills product (Each 250gm pocket @ Rs.25)
: Rs. 2000-5000
: Farm Product (Masala Powder)

3. Name
Nature of selling
Supply
Products Available
Duration

: Mr. Muniyyappan
: Retail seller
: From whole sellers (3levels of intermediaries)
: Farm Product (Palm /sugan cane sugar jiggery, Tamarind)
: Last 25yrs.

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4. Name
Nature of selling
Supply
Duration
Rent
Product Available
Sales

: Mr. Maiden
: Retail seller
: Own Production (Detergent Powder)
: 3 Years
: Rs. 70
: FMCG (Classic Detergent/ Pooja Items)
: Rs. 500- 1000

5. Name
Nature of selling
Supply
Duration
Rent
Sales
Products Available

: M/S. Fathima Stores

: Retail and Whole sales Business
: From own Store
: 15 Years
: Rs. 170
: Rs. 5000-10000
: FMCG (Lifebuoy, Lux, Hamam, Chik, Dove, Medimix)

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6. Name
Nature of Selling
Supply
Product Available
Sales
Rent

: Vanathaiyu
: Retail
: Collecting Hen and Cock from different locations
: Animal Husbandry (Hen and Cock)
: Rs. 2000-4000
: Rs. 150

7. Name
Nature of Selling
Supply
Price
Sales
Rent
Pagadu
Retail Sales
Whole Sales
Vendors
Duration

: Bema Raj
: Retail and Wholesale
: From farmers
: Based on the News Papers
: Rs. 2000-3000
: Rs. 160
: Rs. 6 for Coconut, Rs.14 for FMCG stores
: By price
: By Weightage
: 60
: One Year

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Case Study:
Mr. Bema Raj is 45 years old who lives in Bodi, Theni District. He studied up to 5 th 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 8 th 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.

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Look alike and spurious products

Original Product

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Spurious and Look alike Product

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Conclusion
Rural Marketing

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Theni 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.

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