Why in rural market? Rural Consumer behavior, selling distribution approach & channel & Roles of middleman

1. A Presentation by -
Adarsh Srivastava PGP21006
Aniket Soni PGP21020
Ayush Rathi PGP21037
Deepesh Saini PGP21048
Himanshu Garg PGP21068
Kirti Dhingra PGP21082
Mohit Chadha PGP21099
Nilesh Upadhaya PGP21112
Rabiya Khatun PGP21139
Ritika Vijay PGP 21151
Shantanu Verma PGP21169
Sushil Pal PGP21186
Vasu Bansal PGP21201
Sameer PGP21222
Rajnish Kumar PGP21236

2. 
About the Company
Amazon.com is an American multinational technology company which focuses on
e-commerce, cloud computing, digital streaming and artificial intelligence.
Amazon Alexa : It is voice interaction, music playback, making to-do lists, setting alarms,
playing audiobooks and providing weather, traffic and sports news. Alexa can also control
several smart devices using itself as a home automation system.
 CEO & Founder : Jeff Bezos
 Founded : 5 July 1994, Bellevue, Washington, United States
 Headquarters : Seattle, Washington, United States
 Launch in India : June 2013
 Alexa launch in India : 4 October, 2017

3. 
About the Case
 US e-commerce giant Amazon prioritized bringing its Alexa-powered smart speakers to
India.
 The company thought that its voice-based solution could cut through literacy barriers far
better than any smartphone app.
 While India has a massive base of 250 million smartphone users.
 The Echo speakers are tuned to understanding Indian accents and will respond to a set of
10,000 different commands.
 It doesn't require any new hardware or even a software update. Amazon wants to learn
how Indians speak to Alexa, what they ask it and how best to serve their needs through
the voice assistant.
 This will give the company the data and learning to start taking the Echo speakers
and Alexa to Indian customers who are still not exposed to the apps and smartphones.

4. 
Why enter Rural market?
 Amazon is data driven company.
 By launching one product, it can penetrate majority of it's services.
 Illiteracy & use of feature phones in rural areas, was seen as necessity for
voice system.

5. 
FUTURE OF ALEXA’S ECHO IN RURAL INDIA
 According to data, India’s voice recognition industry is poised to increase
from $440.3 million in 2015 to $1.99 billion by 2022, which is definitely an
exponential level of growth.
 Alexa Echo will make online shopping easier in future
 Alexa’s Echo is cutting through literacy barrier in Rural India.
 Voice remains a major input medium.
 Future of Alexa in Rural India Education
 Alexa redefining itself for Rural India

6. 
CHALLENGES
 Less awareness in rural area.
 Requires continuous power supply.
 Costly product.
 Requires Internet connection.

7. 
SWOT Analysis
Strengths :
 As Amazon already has customer base in rural market, which can act as trust factor for
Amazon echo.
 Ease of use – Online order, News updates etc. just by voice command.
 Removal of literacy barrier.
Weaknesses :
 As rural people are price sensitive, so they will be reluctant to purchase.
 Technological Barrier & Language Barrier.
 Device require regular charging , which can act as a drawback in rural market due to poor
power supply .
 Lack of internet service .

8. 
Opportunities :
 More Potential customers are available in rural.
 Voice is going to be very important in near future as people with no or little literacy can use
it to educate themselves.
Threats :
 Google is also providing a voice assistant outside the Smartphone. E.g. - Google Home
 Google Assistant which is already providing the similar feature in smart phones can act as
threats
SWOT Analysis

9. 
Identify the key elements of the Consumer Behaviour which Amazon
should consider while designing Alexa based product.
 Understanding of consumer behavior is important for making competitive
decisions.
 While analyzing consumer behavior, family needs to be studied as single unit,
because different members of a family play different roles for different product
categories while making a purchase decision.
 Need for booking railway tickets, outside food & news gathering, listening
songs etc. are rising but lack of literacy is becoming barrier.
 Lack of qualified & good teacher in rural areas.
 Unaware about echo systems like Amazon Alexa, Apple Siri etc.
 Believes in word of mouth.

10. 
Should Amazon create same products for Urban and Rural India or different
products for these areas. Identify the considerations?
Amazon should create two different products for Urban and Rural areas.
 Literacy Rate
 Languages Used
 Per Capita Income
 Usage of the Product
 Population Density
 Deep Pockets of the Company
Rural
Area
Ss
Urban
Area
Semi
Urban
Area

11. 
If this product was to be distributed in rural areas, create a distribution strategy for
the product with reference to:
-distribution approach,
-direct/indirect channel
-role and responsibilities of the channel
Intensive Distribution Approach:
 A marketing strategy under which a company sells through as many outlets as
possible, so that the consumers encounter the product virtually everywhere they
go. Under the intensive distribution strategy, all the possible outlets can be used
by a company to distribute the product. It creates brand awareness of the product
as well as boost sales.
 Amazon echo will be distributed in rural market with intensive distribution
approach as it will help in increase the brand awareness amongst the rural
population.
 Intensive distribution approach will help in better rural market coverage .

12. 
Direct/Indirect Channel
Manufacturer
Wholesaler/
Distributor
Retailer Consumer
Amazon Echo uses Indirect Channel
- Two level channel

13. 
Roles and Responsibility
 Logistic Functions
 Facilitating Functions
 Transactional Functions
 Customer service
 Developing Rural Database
 After sales service

14. 
Alexa in Bastar
https://www.youtube.com/watch?v=lwCWKQ-B4PQ

15. THANK YOU