Unlocking the Wealth in Rural Markets discusses distribution strategies for reaching rural customers in India. It recommends adopting a multipronged distribution approach using multiple layers like conventional distribution, smaller sub-distributors, and van delivery. Companies should identify high-potential customer segments like the underemployed, large-scale farmers, and small businesses. Building trust through local stakeholders and influencers helps companies engage rural communities. Organizing with dedicated rural divisions, employee support programs, and technology coordination enables long-term success serving rural markets.

1. Unlocking the Wealth
in Rural Markets
Group 1
Yana Cherepashenskaya, Garry Gonzalez, Ismet C. Cetinguc,
Alexandra Menéndez Meléndez, Md Kabir Hossain Kanak, Zach Foster

2. ● Establish Cost - effective ways to get goods to India’s rural dwellers
○ Only then can a business be successful
● Distribution must be a company’s first focus
● Multipronged Approach- Adopted by most successful companies that includes
multiple layers of distribution
● Different methods reach different populations of people
○ Conventional distributions
○ Smaller - scale sub distributors
○ Van delivery to reach small sparse populations
Developing a Distribution Strategy

3. Identifying Prospective Customers
● Identify Once the distribution channel has been planned, the company
must then identify the customers who have the highest potential
● Targeting The leading firms have begun this process by targeting a
cluster of villages that have potential for high profits
● Three customer segments
○ Underemployed or unemployed
○ Families involved in large - scale agriculture
○ Small businesses
● Research A lot of research is done to identify the customer base
appropriate for the company

4. ● Building trust through an ecosystem of stakeholders
○ They want to build a reputation rather than just corporate profits
○ Novartis has created such a cohesive ecosystem
● Engaging influencers
○ Gaining the trust of high standing in the community
○ Tata Motors has tapped local teachers and mechanics to refer
potential customers
● Retaining customers
○ Providing reliable, consistent, and cost-effective
○ Idea Cellular relies on mobile vans where customers can go to these
mobile vans
Creating Durable Ties With Customers

5. Organizational and Management practices to be successful in rural areas:
● Dedicated divisions
○ Central Unit vs Regional Units
● Mechanisms to garner employee support
○ highlight internal initiatives for rural markets
○ develop & recognize local talent
● Clearly defined roles
○ Who does what
● Coordination through technology
○ tablets & mobile phones used to track, update, and predict sales
Organizing to Serve Rural Markets

6. Quiz
1. What is the Multipronged Approach?
2. What are three customer segments?
3. Name one type of organizational and management practice.

7. The End