rural distribution strategies
TRANSCRIPT
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P R E S E N T E D B Y :
S W A T I S A X E N A
VA R TI K A S O N I
V I KR A M S I NG H
U N D E R T H E G U I D A N C E O F
P R O F S P G A R G
J A I PU R I A I N S TI T U TE O F M A N AG E M E NT
J AI PU R ( IN DI A)
APRIL2010
RURAL DISTRIBUTIONSTRATEGIES
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The essence of marketing lies in the exchange process and
channels of distribution facilitate this exchange process by
providing the linkage between the producer and theconsumer. In rural areas the population density is low and
spread out, and customers have low-purchasing capacities.
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Rural Distribution Channels
y Delivery Vans
y Joint Distribution by Non-Competing Companies
y Distribution up to Feeder Towns / Mandis
y Haats
y Melas
y Hub & Spoke Method ofDistribution
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STRATEGIES. .
y By communicating and changing quality perception
y By proper communication in indian language
y By understanding cultural and social values
y By providing what customer want
y By promoting products with indian models and actors
y By associating themselves with india
y
By developing rural-specific productsy By giving indian words for brands
y By effective media communication
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HANDSET MANUFACTURER: NOKIA
FMCG: MARICO
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NOKIA- connecting people
y Nokia Corporation (Nokia),
A global manufacturer of mobile devices.
Headquartered in Espoo, Finland.
CEO- Olli-Pekka Kallasvuo
Operates four business groups: Mobile Phones, Multimedia,Enterprise Solutions and Networks.
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RURAL DISTRIBUTION STRATEGIES OF
NOKIA
y The company is working on several innovative business
models to reach rural areas in an effective manner.
y The key focus will be to cover villages with a population
of 3000 and above.yNokia started distributing its phones through a partnership
with HCL (formerly Hindustan Computers Ltd.), which
had already built an extensive network for its own
products.
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CONTD
y Tie-ups with key operators to deploy mobile vans in rural
villages.
y These co-branded vans are to educate consumers on theimpact of mobility on their lives, new bundled offers and
product features/experiences
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Nokia lifetools
y The pilot program of Nokia Life Tools in India was
launched in December 2008
y With Services in Agriculture
y Learn English
y General Knowledge
y Astrology
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ABOUT MARICO
y Found in 1991, Public Limited Company
y A leading Indian Group in Consumer Products and Services
y Renowned Brands like Parachute, Saffola,Kaya Skin Clinics
y
CAGR of 13% in turnover, 15% in profits - over last 5 yearsy Turnover of 1550 Crores (2006-07)
12 Brands, Turnover Rs 1150 Crores
100 SKUs, 1500 Suppliers
7 Factories, 15 Contract Manufacturers
30 Depots, 1000 Distributor
20 lac Retail Outlets (Reach)
Reaching 13 Croreconsumers
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y Parachute,
y Saffola,
y Sweekar,
y Hair & Care,
yNihar,
y Shanti,
y Mediker,
y Revive,
y Manjal,
y Kaya,
yHairCode,
y Black Chic.
PRODUCTS
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RURAL DISTRIBUTION STRATEGIES OF
MARICO
y Marico's distribution width and penetration is
acknowledged as one of the best in the industry.
y Marico's distribution network covers almost every Indiantown with a population of over 20,000.
y Marico's parallel rural sales and distribution network
ranks among the top three in the industry and contributes
24% to the company's topline.
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DISTRIBUTION NETWORK
y 882 direct distributors,
y 153 super distributors,
y 2393 small stockists and
y 4523 van markets.
y A dedicated team of Territory Sales Executives and Pilot
Sales Representatives distribute Marico's as well as
alliance brands through this vibrant network.
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RawMaterialVendors
DirectDistributors
Plants Depots
SuperDistributors
Retailer
Stockists
33 depots,
37 ASMAreas
Total,
> 1100
SecondarySales
Primary
Sales
MARICOS SUPPLY CHAIN
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SUPPLY CHAIN
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CONCLUSION
y The geographic dimension of rural markets has been such
an overwhelming problem, that for decades many
organisations did not operate in these areas only because
of the lack of access to these markets.
y But with the improvement in the status of roads and
connectivity to villages the situation has improved but
geographical aspect of the external environment still
remains a barrier which needs to be overcome.
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Your views are invited