This presentation gives a roadmap for FMCG rural sales in India example of Odisha is taken

1.  Roadmap to take FMCG to rural
markets of Orissa

2.  Assortment Challenge: Low per capita income coupled with
different spending pattern . Also seasonal imbalances coupled
with alternate droughts and floods is a concern
 Distributional Challenge: Unviability of distribution due to low
consumption and small populace
 Logistical Challenge: Unviable to transport goods to rural market
due to low volume
 Promotional Challenges: How to create awareness among rural
population in a cost effective manner
 Activation Challenges : Sampling and demo of our products to
evangelize rural population
In the next slides we will work out a plan to how to counter these
challenges and sales and distribution planning for Orissa will be dealt
in detail

3.  Choosing right products and SKU’s for the rural markets among
our products
 What is presently being sold in rural outlets by our competitors
 Market research to determine what other products / sku can be
targeted for rural
 Out of the set of products some are designated as focus as whole
thing will revolve around them and volumes can be extracted from
them due to high potential they have

4.  Due to low volumes sustainability is an issue for rural outlets so
versatility is the name of the game a pan shop will sell all and
sundry products
 SHG groups aka Project Shakti of HUL, NGO’s working aka Green
light Planet,VLE’s , SREI SAHAJ outlets , KSK’s of IOCL , BC’s of
various Banks, Guards /owners of telecom towers, fertilizer sales
outlet, PDS etc have to be roped in to sell our products
 These outlets will be designated as Rural Distributors and will
subsequently sell to other retailers at 3% margin and to general
population at retailer margin

5.  Unviable to transport very low volume to interior and micro
interior markets
 In order to service rural outlets telecom diesel suppliers can be
roped in who have fixed plan of visiting towers and filling fuel
every 15 days in which they can take our products and deliver it to
the concerned outlet
 Tie ups with local bus owners ,truckers , tractor owners , fertilizer
suppliers , NGO’s , SHG’s etc will also help in meeting demand real
time and reduce buffer at stockiest end freeing up his inventory
 The most important factor in this is route planning for channel
partners .The PDP (Product delivery plan ) should be strictly
followed in these cases .

6.  How to best promote our products and create awareness among
rural population
 Wall Painting is a good way to showcase our offerings
 Tie up with various operas which are hugely popular with rural
population for promotion of our products
 Telecom tower boundary to be wall painted with our offerings
 List of all melas , haats ,fairs and festivals to be collected from all
across Orissa
 Canopy or mobile van to be deployed in the above to make people
sample and purchase the products
 NGO and SHG tie ups will enable us to sample our products among
the group members and people benefited by NGO

7.  Three tier distribution model SS(Super stockist ) to Sub DB to
Rural DB to retail outlets (rural)
 Rural DB’s to cover about 10-15 retail outlets in interior micro
interior rural markets , few SHG groups for home delivery and
help in activations / sales during Haats , melas etc
 Will be done in 2 phases phase 1 to cover all 1000+ population
villages and clusters while phase 2 will cover all the remaining
villages
 Integration with our existing billing systems and processes will be
taken but separate calculations to be done on them

8.  There are 521 blocks in Orissa we require coverage to 500 blocks
via sub DB’s . Clustering them on basis of potential and population
require 125 sub DB’s to service them
 In order to serve these 125 sub DB's require 5 SS with HQ’s at
Cuttack , Balasore , Angul , Sambalpur and Berhampore
respectively
 These Sub DB’s will service rural outlets as well as urban semi
urban outlets depending upon area of operation excepting 30
towns with direct distributors
 Each SubDB has 1 ISR who will have the responsibility of
generating orders and collections
 Expect these sub DB’s to service 2500 outlets (RDB,Rural
Distributor) via these ISR , RDB further sells to retailers and
households.

9.  Block level clustering using demographic and geographical data
will require 1 month
 Appointment and allocation of territories to sub DB’s will require 3
months
 Onboarding and training of agents to become ISR’s will require 3
months
 Appointment of Rural DBs by ISR’s will require 3 months
 Training of rural DB’s will require 2 months
 Appointing of 5 SE’s handling 25 ISR’s each will require 2 months
,they will be assigned SS and focus exclusively for rural sales
 Retail will commence 6 months from start date of project

10. SS (3%) in selling to sub
DB’s
Sub DB(2%) in selling to
Rural DB’s to local retailers
margin of 5%
Rural DB (3%) in selling to
other retailers to public 12-
15% margin

11.  Once phase 1 completes successfully and is
up and running will then focus on phase2
 Phase 1 will take us to all 2000+ villages and
sub urban areas where at least
communication and retail outlets > 10 are
present
 Phase2 will create infrastructure to tackle
500+ population villages and remote
locations

12.  Phase 2 begins with developing rural DB and appointing more
Rural DB’s to cover all remaining inaccessible potential areas
 Phase 1 will have ideally 1300 Rural DB’s which will be doubled to
2500 Rural DB’s
 In Phase 1 a rural DB is expected to serve 10-12 retail outlets same
in case of Phase2 so as to reach approx. 30,000 outlets in rural
 The ISR’s involved in Phase 1 will help each Rural DB to increase
coverage and create awareness and also appoint new Rural DB’s in
unrepresented areas
 In phase 2 need more SE’s approximately 15 to handle 8-10 sub
DB’s and same number of ISR’s since network will double up and
after appointing desired number of Rural DB’s ISR’s will also be
doubled to handle such volume and also separate rural ASM

13.  No. of Rural DB’s (Planned , Appointed)
 Average value billed to Rural DB’s (Estimated, Actual)
 No. of retailers serviced by Rural DB’s
 Planned schedule of activities and leads / footfalls for the same
 Logistics burden for Sub DB and SS
 ROI for SS (rural only) , Sub DB(Rural only) and Rural DB
 Cost to serve (cost of sales)
 Impact on margin
 Avg credit days

14.  ASM : track SS ROI and sub DB appointment and performance ,
SE performance on appointing and maintaining sub DB network
 SE : track Sub DB ROI and rural DB appointment and performance
, ISR performance on appointing Rural DB’s and maintaining Rural
channel
 ISR : Rural DB ROI and network enhancement via field visits ,
Appointment and maintenance of rural channel partners ,Local
activations and promotions as per calendar
 Rural Champion (Zonal Level) : Track key metrics and provide
guidance to teams, track competition and benchmark against
them , Plan and execute activity calendar , MOU’s with various
organizations at zonal level, Engaging third parties to collect data
and organise activities

15.  Apart from usual marketing , manpower , promotional and trade
marketing support require the following
 A high level monitoring team from the highest level of corporate
to track and give guidance to field teams
 MOU’s with IOCL , Banks etc to utilize their rural infrastructure for
sales and promotions
 Regular feedback system to track various metrics regarding
functioning , productivity and costing
 Data analysis and reporting to help take better decisions
 IT systems and regular audits to track no undercutting happens
due to price differential between rural and urban or rural stocks
come to urban shops