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Challenges of distribution in rural markets


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Challenges of distribution in rural markets

  1. 1. Rural Marketing/Distribution Channels Rameshwar Melvin
  2. 2. Challenges • Poor Road connectivity • Low density of shops per village • Poor storage system • Low investment capacity of rural retailers • Poor display of products • Inadequate banking and credit facilities
  3. 3. Distribution Strategy • Use of Vans. • Reaching Larger villages. • Jatra/Mela/Santhe. • Understanding peak season. • Company’s own distribution network- Shakti/E-Choupal. • Use of co-operative societies.
  4. 4. Strategies (Contd) • Use Of PDS. • Use of Petrol Pumps.
  5. 5. Examples of effective distribution tie- ups in rural market: - • Samsung has tied-up with the Indian Farmers Fertilizer Cooperative (IFFCO). Thus,Samsung will use IFFCO's cooperative network for marketing the hand-sets to ruralconsumers over a wide area. • Nokia has entered into a partnership with HCL for distribution of its hand- sets. • Motorola and Nokia have partnered with ITC e-Choupal which gave them wider reach inrural market. • Procter & Gamble had tie-up with Godrej and Marico Industries, and now it is planning onewith Nirma as well for distribution of Camay Soaps. • Godrej has tie-up with Jyothi Labs to use its extensive distribution network for marketingGodrej Tea across the country.
  6. 6. Project Harvest • Intro