rural marketing strategies 5
TRANSCRIPT
Rural Marketing Strategies 5(Distribution & Logistics)
Advertising is easy but Managing Distribution network in Rural Market is Donkey’s work
- Mr Harish Bijoor a marketing Consultant
Distribution Chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.'
Logistics is the management of the flow of goods, information and other resources, between the point of origin and the point of consumption in order to meet the requirements of consumers
What is Distribution? What is Logistics?
WholesalerConventional RetailerWeekly Haats, Bazaar and ShandiesVans
Distribution channels in Rural Marketing
Conventional
New players
Unofficial Channel – eg 500 dealers of Hero Honda Co-operative Societies – State, Regional & District Level
Petrol Bunks – LPG, Ferilizer, Pesticides etc.
NGO – Some NGO work for the social sustainable development
Son of Soil Channel – Self help
Ensure ReachReach by whatever mode
Strategies of Distribution & Logistics in Rural Marketing
Strategies of Distribution & Logistics in Rural Marketing
Ensure VisibilityNo Stock outs – Over stocking is bad but Stock outs are worst
Reach Haats / Mela / Pilgrim SiteA typical Mela or Fair – a case study
Strategies of Distribution & Logistics in Rural Marketing
In 2007 HLL spend Rs 30 cr in Kumbha melaAverage spending in Mela/Haats/Fairs/Shandies is around Rs 50 to 60 Cr
Delivery Vans cum Promotional Vans cumMobile Retail OutletConvert Delivery van into Promotional van or Mobile retail outlets in remote areas
Strategies of Distribution & Logistics in Rural Marketing
Understand the Peak SeasonDemand based strategy
Convert Unorganized Sector Manufacturers into DistributorsLocal Manufacturers knows the pulse of local retailers & distributors
Strategies of Distribution & Logistics in Rural Marketing
Collaborate with DistributionP&G collaborated with most of the distributors
Encourage JobbersSon of Soil – a mobile traders that go from house to house
Sales Women NetworkProject Shakti – Shakti Amma, TTK group – Prestige Pressure cooker – Emphasis on Add
Strategies of Distribution & Logistics in Rural Marketing
Manufacturer
C&F Agent of a State/City
Sole Distributor of a District
Stockist of a Feeder Town
Distributor of a village
Retailer
Customer
Through Which Transports A Rural Customer Gets His Product
The key components of Transportation decisions are:
1. Route and network selection – Direct shipment, Milk run, Central DC, Tailored Transportation
2. In-house or Outsource – Purchase versus Leased versus Vendor’s vehicle
3. Trade off - Responsiveness versus Efficiency – Cost versus Speed
Key Components of Transportation
Suppliers Retail Stores
Direct Shipping Network
Transportation Network
Suppliers Retail Stores
Direct Shipping with Milk Runs of Retail Stores
Transportation Network
Suppliers Retail Stores
Direct Shipping with Milk Runs of Suppliers
Transportation Network
Suppliers Retail Stores
Direct Shipping via Central DC
DC
Transportation Network
Suppliers
Milk Runs from DC
DC
Retail Stores
Transportation Network
Factors to be considered while deciding stores route
Octroi naka passing (In Cities)Octroi Held up timeStore opening/closing timeTraffic regulationsLean hours of retailerStaff availability to unloadMerchandise mixLoad sizeDelivery Route – length in km
Route selection in Transportation
DC
1
Retail Stores2
3
8
9
7
6
5
10
4
Route selection in Transportation
DC
1
Retail Stores2
3
8
9
7
6
5
10
4
Route selection in Transportation
Route selection methods
Saving Matrix method
General assignment method
Distribution Centre
Go down
DC/ Godown Inventory Flow
Put away method
Flow through method
Cross Docking
DC/ Godown Layout
DC Planning and Parameter
Infrastructure
Layout
Staffing
Equipments
IT
Misc.
Location & Infrastructure of DC/ Gown
Communication – landlines/Mobile/VSAT
Nearness to City /Cities / Town /District/ Feeder town
Octroi
Weighing Bridges / Petrol pumps
Power / Electricity – Gen set
Water for (Wet DC)
Layout
Out bound / In bound staging areas
Pallets v/s Bins
Grid Layout
Flooring / Height / lights / Ventilation / Docks
Other planning – Office/Security/Staff Welfare/Genset
Food v/s Non- Food
Area for flow through / cross docking
Other areas – Scarp/Damage/Expiry/Batch mgt
Layout Grid Layout
Staffing
3PL v/s Own Staff
KAM/DC Mgr/OB/IB/Inventory/Transportation
3PL – KAM/ Supervisor/DEO/Checkers/Pickers/Helpers
Shifts / Breaks / Over time
Security
Equipments & IT in (DC)
Bar-coding – IB & OB
Pickup Trolleys
Fork-Lifts & Reach Trucks
Battery charging section
RFID – Chips/RF Gun / Wi-Fi for RFID