REACHING

THE

UNREACHED

A case on Oral Care major

trying to reach the

hinterland and create a

market. The key problems

addressed are brand,

customer and distribution

TYPICAL MOVEMENT OF GOODSReality Check on the Distribution

Company

C&FA

Distributor

Retailer (Local) Retailer

Wholesaler

Company

C&FA

Distributor (Rural)

Sub Distributor

(Block Level)Wholesaler

Retailer (Rural)

Retailer (Local)

Retailer

(Satellite Market)

DISTRIBUTIONUrban Rural

LET DELVE INTO A REALITYHere is the problem statement

Colgate Palmolive, the world’s leading

manufacturer of Oral Care products

Dominates the Indian oral care

industry with a market share of more

than 45%.

The word ‘Colgate’ has become

synonymous with ‘toothpaste’ for most

consumers in India, especially those in

the rural Indian context.

PROSPECT & PROBLEMIssues Opportunities & Challenges

Colgate faced major challenge of

expanding the market

Saturated urban markets

Intense competition

Rural market offered scope for

growth

30% do not use oral care

Direct reach limited to 5K pop strata

If there is a market then it is less than 5K pop

strata

CURRENT DISTRIBUTIONReach and Process

C&F

Rural Stockist

StockistSuper Stockist

Retail

Rural Retail

Consumer

Rural Urban

Rural offers

growth

Big Oral

Care Market

Sustained

Growth Potential

Reach till 5K

Penetrate

further down

Commerciall

y Unviable

Create a viable and sustainable model to reach

less than 5K pop

CONCEPT SUGGESTEDThink Out of the Urban

Identify educated, unemployed

youth in villages as potential

channel partners.

Act as entrepreneurs, Cash &

Carry and earning from sale of

products.

Youth to commute by bicycle with

a stock box attached for product

storage to keep cost low.

Branding of Youth using on T-shirt,

bicycle and box to increase

visibility and ensure authenticity.

WORKING MODELThings to Do on Ground

YouthVillage

Retailer

Village

Retailer

Village

Retailer

Village

Retailer

Haat

Haat Haat

Haat

Each youth is entrusted with an area of

about 10 – 15 km

Covers approximately retail of 2 villages

and one Haat

On Non-Haat days covers retail of 4

villages

Total coverage spans across 30 – 40

villages and 4 Haats.

WORKING MODELMore Working Detail

Youth As Entrepreneur

In the age of 18 – 35 years.

Educated but unemployed

Being part of some social group in the village.

Community mobilization – ability to

communicate.

Market both Periodic Market & Retail

20-50 surrounding villages catered by Haat.

Average visitor turnout is 4500+.

Majority of the visitors, have finance and decision

making powers.

Business nerve center ,open to new ideas

ROADBLCKS & SOLUTIONSOperational Hiccups & Way Out

Operational

Roadblocks

Motivation and retention

of channel partner

Sustainable earning

potential

Incorrect profile of youth –

Mismatch on expectation

Continued loyalty once

business is established

Solution Mitigating

Correct identification

of youth profile

Increased

handholding of youth

in market working.

Introduction of stipend

Continued stipend on

reducing scale no

elimination

ROADBLCKS & SOLUTIONSOperational Hiccups & Way Out

28 Districts

154 youth selected trained

and deployed

Rs 10 Crore turnover from

this channel

With that last Information

THANK YOU