Downloaded 191 times
Uploaded bySandeep Kumar Lukalapu
Distribution channels in rural
The document discusses distribution challenges and opportunities in rural Indian markets. It notes that while there are over 60 lakh retail outlets in rural areas, reaching consumers is difficult due to a long distribution chain, lack of dealers and infrastructure like roads. However, 80% of consumers near highways shop in nearby towns. Emerging models to better reach rural customers include using cooperative societies, government distribution systems, mobile trading units, and modern retail chains with rural focus. Overall, marketers must take a selective approach in developing rural distribution networks due to the wide geographical scope and low population densities.
More Related Content
Similar to Distribution channels in rural
![[Rural marketing]](https://cdn.slidesharecdn.com/ss_thumbnails/ruralmarketing-130311100436-phpapp02-thumbnail.jpg?width=600ounds&width=560&fit=bounds)
Distribution channels in rural
- 2. Introduction: • There are60 lakh outlets, both in urban and rural markets. • 36 lakh retail outlets are spread over six lakh villages. • The companies need substantial amount of working capital and large dedicated sales force.
- 3. Obstacles to reachthe rural consumers • The distribution chain requires a large number of intermediaries and this increases the cost of distribution. • Non-availability of dealers. • Poor viability of retail outlets due to low business volume. • In adequate banking facilities. • Only about 80% of the markets are connected by roads. • Interior village roads. • Interior village roads get flooded during monsoon. • Transport and communication facilities are generally poor in villages. • Credit requirement of channel members.
- 4. Why to increasedistribution channel in rural area ? • As per RMAI retail study , the tendency to shop from the nearby town city is high among consumers residing within a 25-km periphery, or in villages close to the highways. • Whereas 80% of the finished goods are purchased from the near by towns and cities. • Therefore, marketers need to ensure product availability at the right places to generate rural sales.
- 5. Traditional Methods • Haats •Melas Branded products in Haats Company stalls in Melas
- 6. • Mobile Trading Ownbrand mobiles
- 7. Development of Retailersin Rural Market • • • • • • Co-operative Societies Public Distribution System Agricultural Input Dealers Potential Villages Feeder Markets/Mandis Post Offices and Bank Branches
- 8. The Emergence ofModern Retail In Rural Areas • ITC’s Choupal-Saagar, • DSCL Hariyali Kisaan Bazaar
- 9. • Godrej Aadhaar •Tata Kisan Sansar
- 10.
- 11. CONCLUSION: • The ruralmarkets and the consumers are scattered over a wide geographical area. Considering low income of consumers, low density of population, poor condition of roads, it becomes difficult and uneconomical to individually service all the villages. The marketers have to follow a selective approach, based on market potential in developing a network of distributors and retailers in rural markets.