A case study on a hypothetical brand that is trying to increase its market share in the rural segment in India, facing two problems- identifying its priority markets, and deciding on its distribution networks. This case presents a proposal on how to go about the same and suggests some methods which will be looked into while conducting research.

1. A proposal for understanding the market
demographics & consumer behavior of
the rural population in India for V-Care
products, and to measure the ways &
provide solutions for introduction of these
products in a cost effective manner.
Report by:

2. Client Brief
Area Stores (Mn) Sales Contribution (%) Market Share
FMCG V-Care FMCG V-Care V-Care
Urban 2.6 1.9 62% 79% 19%
Rural 4.6 2.9 38% 21% 10%
Total India 7.2 4.8 100% 100% 15%
• Objective: 3X growth in Rural segment in 2 years
• Threats from competitors having direct distribution
• Where to Play -> Identify Target Markets
• How to Reach -> Decide on Distribution Channel(s)

3. Phase I- Identifying Priority
Target Markets

4. Identifying Priority Markets
80:20 RULE – Which areas are driving the maximum sales.
Villages in 15-20sq km of tier 2-3 cities
•Input: RES pan-india rural data of 15000 sample for V-Care for past 12
months. SEC data. Census data. State Government. In-house research
done in past 5 years for the Rural Population in this segment.
•Output: Who are we reaching out to, where are we reaching them.
Target Group SEC D & E

5. Phase II- Selecting the Right
Distribution Channel

6. Wholesalers
Pros
•Lower Cost
•Wider Cost in Lesser Time
•Flexible Network
Cons
•Lesser Margins
•Harder to Push Product

7. Direct Distribution/Salesmen
Pros
• Wider variety
• Greater revenue
• Better Customer Handling
Cons
• High Cost

8. Direct Distribution/Salesmen + Data
Acquisition
Pros
•Wider variety
•Greater revenue
•Better Customer Handling
•Deeper insight into consumer behaviour
•Ease in gathering further data
Cons
•High Cost
•Training Required

9. TARGETING LARGER VILLAGES
• First step towards distribution strategy.
UNDERSTANDING PEAK SEASONS
• During the festival season, people in rural households are in the shopping mode
and there is a need for the products.
MOBILE SHOPS
• No need for investment in land.
• Small sized packages.
Innovative Distribution Channels

10. Innovation in Advertising Strategy
VIILLAGE PANCHAYATS AND WOMEN
•Collaborate with the influential members of the rural segments as an advertising strategy
MOVIE SCREENINGS
COLLABORATING WITH THE GOVERNMENT
COOPERATIVE SOCIETIES
CLUSTERED PROBLEM-BASED POSITIONING AND ADVERTISING

11. Innovation Through Technology
A mobile based model which caters
to the rural population that owns
basic mobile handsets and they
place orders with V-care either by
calling or by texting the details of
the products they need.
V-care delivers products door-to-
door in delivery vans and delivery
bikes and take payment through
the mobile platform itself which
can be recharged at local shops.
We’re also going to build a platform
for families to send money to send
money to each other and this
money can be used to make the
payments as well

12. Research Methodology
Identify and
collaborate with
popular mobile
networks for TG
Pilot testing of
concept
Innovation and
Tweaking of
Concept
Implementation
of Strategy
Periodic
Evaluation and
Follow up
1.5 yrs
3 months
5 months Semi-Annually
2 years

13. Thank You
Made
by:
Aakriti
Akshita
Ashima
Avantika
Gaurav