PLACE

LARGE AND SCATTERED MARKET

It consist of 75 crore rural consumers 6,38,365 villages approx. There are only 7,271 villages with railway stations About 1,45,098 villages or 23% of the total number of village in India have population less than 200. 21% have population between 200 and 500. 13% villages have 50% rural population and they posses 60% rural wealth

WHERE TO DISTRIBUTE?

Rural Distribution Challenges

Large number of small markets

Dispersed population and trade

Poor connectivity ,large no of intermediaries Low availability of suitable dealers Inadequate banking/ credit facilities Poor product display and visibility, Poor communication of offers and schemes

 Distribution
physical
Old setup/ traditional

Distribution

Transportation Warehousing

communication

Wholesaler Stockiest super-stockiest Distributors C&f agents retailers

LEVELS OF DISTRIBUTION
Level Partner Company Depot/ C & FA Distributor/ Van Operator/ Super Stockist/ Rural Distributor Sub Distributor/ retail Stockist/ sub stockist/star seller Wholesaler Retailer Location National/ State level District level

1 2

Tehsil HQ, towns and large villages

4 5

Feeder towns, large villages, haats Villages, haats

Problems of channel mgt

Scope of manufacturers outlet is limited Non-availability of dealers Multiple-tier & high costs Non-viable business for retailers Inadequate credit facilities

Strategies for distribution

Coverage of villages above 2000 population Reaching up to mandi/towns & semi urban mkt Ensuring reach & visibility-sku /being 1st on the
shelf/developing a privileged relation with the retailer

Understanding of peak seasons Companys own dist network or collaboration Continuous availability of the brands Dealership education, training & motivation Quantity discounts, gift, coupons & promotions

Methods of distribution
New & innovative method

Un official channels Co-operative soc Public dist services Petrol pumps Ngo Agro-input dealers Haat & mela

Distribution Adaption( Indicative)

Hub and Spoke Model
Example: Coca Cola

Use of Affinity groups

Example: Project Shakti

Haat Activation
Example: Colgate

Syndicated distribution
Example: Cavin Care & Amrutanjan P&G using Maricos distribution,godrej & nirma godrej with jyoti lab

Use of marketing co-operatives

Example: Warna Bazaar in Rural Areas

Mobile traders
Example: FMCG companies

DISTRIBUTION
To service remote village, stockists use autorickshaws, bullock-carts and even boats in the backwaters of Kerala. Coca-Cola, which considers rural India as a future growth driver, has evolved a hub and spoke distribution model to reach the villages LG Electronics defines all cities and towns other than the seven metros cities as rural and semi-urban market. To tap these unexplored country markets, LG has set up 45 area offices and 59 rural/remote area offices.

PLACE

THANK YOU