Post on 05-Apr-2018
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http://www.interarchbuildings.com/casestudies-
itc.asp?links=cases
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channels
Level 1
Level 2
Level 3
Level 4
Level 5
Channel partners Market place
Company depots / CFAs/super stockiest
National / state
CFAs / redistributionstockiest / retailers
(modern/ traditional)
Cluster of districts /district headquarters
redistribution stockiest /semi-wholesalers /retailers
Sub-district (Tehsil/Block)/ feeder town
Semi-wholesalers /retailers / Mobile tradersin haat/ van
Feeder town / periodicmarket
Retailers / vans /barefoot agents( Shaktidealers) / cooperative
societies /-
Large and small villages
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Rural channel members
Conventional distribution channelmembers servicing rural market
primarily include:
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Rural channel members
CFAs
CFAs are the first link with the companydepot for supplying products to channelMembers, generally engaged by FMCG
and consumer goods companies tosupplement their own depotUsually cater to one region or state,depending on stock handled
Carrying &Forwarding agents
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CFAs
Two types:
One with the investment,
investing in stocks andtransporting it to the next level
Without investment (forwarding
agents), acting as thetransporter for the company
Majority falls in second category,
providing go down space for stock-
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Rural channel members
Redistribution
stockiestThey are critical link between a company
and its rural channelsResponsible for supplying stocks to bothrural & urban retail network
Located at district headquartersFirst customers of company, investing instock & employing a sales force to coverrural & Urban retailersCom anies with lar e roduct ortfolios
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Rural channel members
wholesalers
One of the oldest channel memberIn rural area, there is seldom distinctionbetween wholesalers & retailers
Retailers
Last link in distribution chainProcure stock from wholesalers in nearby feedertowns, & in some cases supplies reach them
from stockiest through van supplies.
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The rural retailenvironment
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Traditional retail
With the Spread of consumers acrossvarious population categories,
marketers face the problem ofaccessing these markets
They apart from ensuring the reach
of their products to retail outlets,marketers also need to motivateretailers to stock their brands
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The rural retail spread
Number of rural retail outlets hasmore than doubled in the last
decade, from 3.5 million in 2002 to7.8 million in 2010
Today more than 40 per cent of retailoutlets are present in rural areas.
Retail outlets increases as we movefrom smaller to larger villages
Need to design cost-effective
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Retail premises
Manifestations:
More permanent shops than kiosks
Transition from all-in-one tospecializationShops : Bakeries, stationers, chemistsetc. entry of specialty shop categoriesnon-existent
earlier : mobile shops, photo studios,beautyparlors, Computer centersNew categories in food segment : Ice-cream
Parlors , Cold drink, milk parlors etc.Improved availability of brands
Implications
Changing lifestyleWider choicesChanging consumptionhabitGreater use ofspecialized product/servicesImproved in-storeexperience
Rural marketplace
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The rural retail shelf
With the changing consumptionhabits and rising demand for newproducts and services, the profile ofrural outlets & stocks on shelves arechanging rapidly
Earlier rural markets used to haveshops stocking groceries andtobacco products
New categories have emerged:
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The rural retail shelf
Type of shop Shops (in per cent)
Chemists 4
General stores 13
Grocery stores 62
Paan plus 21
Total 100
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Rural retail habits
With improving connectivity, brandawareness, rural retail habits arealso changing fast
Tendency to shop from the nearbytown or city is high amongcustomers who residing within 25-km periphery
80 per cent of durables & 70 percent of cloths/ footwear are
urchased from nearb towns and
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Emergence of modernretail in rural areas
Major players: ITCs Choupal Saagar,DSCL Hariyali Kisaan Bazaar, Godrej
Aadhaar & TATA Kisan Sansar
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Emergence of modernretail in rural areas
Share of organized retail is verylow (merely 5%)
Approximately, only 10,000 outof 600,000 villages in India haveaccess to organized retail
services
In such conditions marketershave largely taken the agri-inputn ri- t t r t thr h
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Assignment
write a note on the following:
1. ITCs Choupal Saagar,
2. DSCL Hariyali Kisaan Bazaar,
3. Godrej Aadhaar4. TATA Kisan Sansar
5. 3A Bazaar
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Channel behavior in ruralareas