rural distribution strategies

8/9/2019 Rural Distribution Strategies...

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P R E S E N T E D B Y :

S W A T I S A X E N A

VA R TI K A S O N I

V I KR A M S I NG H

U N D E R T H E G U I D A N C E O F

P R O F S P G A R G

J A I PU R I A I N S TI T U TE O F M A N AG E M E NT

J AI PU R ( IN DI A)

APRIL2010

RURAL DISTRIBUTIONSTRATEGIES


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The essence of marketing lies in the exchange process and

channels of distribution facilitate this exchange process by

providing the linkage between the producer and theconsumer. In rural areas the population density is low and

spread out, and customers have low-purchasing capacities.


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Rural Distribution Channels

y Delivery Vans

y Joint Distribution by Non-Competing Companies

y Distribution up to Feeder Towns / Mandis

y Haats

y Melas

y Hub & Spoke Method ofDistribution


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STRATEGIES. .

y By communicating and changing quality perception

y By proper communication in indian language

y By understanding cultural and social values

y By providing what customer want

y By promoting products with indian models and actors

y By associating themselves with india

y

By developing rural-specific productsy By giving indian words for brands

y By effective media communication


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HANDSET MANUFACTURER: NOKIA

FMCG: MARICO


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NOKIA- connecting people

y Nokia Corporation (Nokia),

A global manufacturer of mobile devices.

Headquartered in Espoo, Finland.

CEO- Olli-Pekka Kallasvuo

Operates four business groups: Mobile Phones, Multimedia,Enterprise Solutions and Networks.


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RURAL DISTRIBUTION STRATEGIES OF

NOKIA

y The company is working on several innovative business

models to reach rural areas in an effective manner.

y The key focus will be to cover villages with a population

of 3000 and above.yNokia started distributing its phones through a partnership

with HCL (formerly Hindustan Computers Ltd.), which

had already built an extensive network for its own

products.


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CONTD

y Tie-ups with key operators to deploy mobile vans in rural

villages.

y These co-branded vans are to educate consumers on theimpact of mobility on their lives, new bundled offers and

product features/experiences


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Nokia lifetools

y The pilot program of Nokia Life Tools in India was

launched in December 2008

y With Services in Agriculture

y Learn English

y General Knowledge

y Astrology


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ABOUT MARICO

y Found in 1991, Public Limited Company

y A leading Indian Group in Consumer Products and Services

y Renowned Brands like Parachute, Saffola,Kaya Skin Clinics

y

CAGR of 13% in turnover, 15% in profits - over last 5 yearsy Turnover of 1550 Crores (2006-07)

12 Brands, Turnover Rs 1150 Crores

100 SKUs, 1500 Suppliers

7 Factories, 15 Contract Manufacturers

30 Depots, 1000 Distributor

20 lac Retail Outlets (Reach)

Reaching 13 Croreconsumers


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y Parachute,

y Saffola,

y Sweekar,

y Hair & Care,

yNihar,

y Shanti,

y Mediker,

y Revive,

y Manjal,

y Kaya,

yHairCode,

y Black Chic.

PRODUCTS


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RURAL DISTRIBUTION STRATEGIES OF

MARICO

y Marico's distribution width and penetration is

acknowledged as one of the best in the industry.

y Marico's distribution network covers almost every Indiantown with a population of over 20,000.

y Marico's parallel rural sales and distribution network

ranks among the top three in the industry and contributes

24% to the company's topline.


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DISTRIBUTION NETWORK

y 882 direct distributors,

y 153 super distributors,

y 2393 small stockists and

y 4523 van markets.

y A dedicated team of Territory Sales Executives and Pilot

Sales Representatives distribute Marico's as well as

alliance brands through this vibrant network.


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RawMaterialVendors

DirectDistributors

Plants Depots

SuperDistributors

Retailer

Stockists

33 depots,

37 ASMAreas

Total,

> 1100

SecondarySales

Primary

Sales

MARICOS SUPPLY CHAIN


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SUPPLY CHAIN


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CONCLUSION

y The geographic dimension of rural markets has been such

an overwhelming problem, that for decades many

organisations did not operate in these areas only because

of the lack of access to these markets.

y But with the improvement in the status of roads and

connectivity to villages the situation has improved but

geographical aspect of the external environment still

remains a barrier which needs to be overcome.


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Your views are invited

rural distribution strategies

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