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8/9/2019 rural market methods
1/32
Copyr i
gh
t
2012
Dor l
ingK
inder
sley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
Chapter 8
Distribution in Rural Markets
8/9/2019 rural market methods
2/32
Copyr i
gh
t
2012
Dor l
ingK
inder
sley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
Learning Objectives
# $nderstand the %hallenges and dile&&as in ruraldistri'ution
# Des%ri'e the %hannels o distri'ution
# $nderstand the rural retail environ&ent
# *plain %hannel 'ehaviour in rural areas
# Identiy the prevalent distri'ution &odels o dierentprodu%t %ategories
# Des%ri'e innovations in rural distri'ution and rural+%entri%distri'ution &odels
# Dis%uss the logisti% %hallenges in rural India
8/9/2019 rural market methods
3/32
Copyr i
gh
t
2012
Dor l
ingK
inder
sley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
Availability: The Challenges and theDilea
# Rea%hing ,.- &illion retail outlets a%ross 00"000 villages
# -/ o the villages have a population o less than 2"000population
# Poor road %onne%tivity
# ultiple tiers o distri'ution leading to higher %osts
# Lo density o shops per village and high variation in their%on%entration
# Poor availa'ility o suita'le dealers
8/9/2019 rural market methods
4/32
Copyr i
gh
t
2012
Dor l
ingK
inder
sley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
Availability: The Challenges and theDilea
# Inadeuate 'an! and %redit a%ilities to rural retail outlets
# Poor storage syste&s leading to inadeuate sto%!ing
# 3ighly %redit driven &ar!et
# Poor visi'ility o produ%ts on rural shelves
# Poor %o&&uni%ation o oers and s%he&es due to poorrea%h o &edia
#
Inadeuate poer supply leading to spoilage o goods hi%hneed rerigeration
8/9/2019 rural market methods
5/32
Copyr i
gh
t
2012
Dor l
ingK
inder
sley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
The !volution o" Rural DistributionChannels
L!#!L Channel $artners Marketplace
1Co&pany Depots4C56s" 7uper
sto%!ists8ational47tate
2
C56s4Redistri'ution sto%!ists
Retailers4odern49raditional
Cluster o distri%ts
Distri%t 3eaduarters
:Redistri'ution sto%!ists
7e&i+holesalers4Retailers
7u'+distri%t(9ehsil4;lo%!)
5eeder ton
Grands -+ 1+
8/9/2019 rural market methods
13/32
Copyr i
gh
t
2012
Dor l
ingK
indersley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
3tock Turnover and Rural RetailHabits
# 6verage value o sto%!s in interior villages one+third oeeder villages
# B+ta!e o pa%!aged oodstus and to'a%%o produ%ts
higher in interior villages ith toiletries &ore in eedervillages
# 9enden%y to shop in near'y tons high ithin a 2/+!&radius or in villages %lose to the highay
# ar!eters need to ensure produ%t availa'ility at the rightpla%es
8/9/2019 rural market methods
14/32
Copyr ig
ht
2012
Dor l
ingK
indersley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
Modern Retail in Rural Areas
8/9/2019 rural market methods
15/32
Copyr ig
ht
2012
Dor l
ingK
indersley(I
ndia)Pvt.L
td.
Rural ar!eting" 2e
4TC Choupal 3aagar
# 5irst rural &all ith shopping area o ,"000 suare eet openedin 200ive argu&ents tosupport your %hoi%e.