• 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
• Use of Vans.
• Reaching Larger villages.
• Understanding peak season.
• Company’s own distribution network-
• Use of co-operative societies.
• Use Of PDS.
• Use of Petrol Pumps.
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-
• 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.