unlocking the wealth of rural markets

Unlocking the Wealth in Rural Markets

Group 1Yana Cherepashenskaya, Garry Gonzalez, Ismet C. Cetinguc,

Alexandra Menéndez Meléndez, Md Kabir Hossain Kanak, Zach Foster

● 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

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

● 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

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

Quiz1. What is the Multipronged Approach?2. What are three customer segments?3. Name one type of organizational and management practice.

The End