RURAL DISTRIBUTION STRATEGIES

PRESENTED BY: SWATI SAXENA VARTIKA SONI VIKRAM SINGH UNDER THE GUIDANCE OF

PROF S P GARG JAIPURIA INSTITUTE OF MANAGEMENT JAIPUR (INDIA) APRIL2010

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 the consumer. In rural areas the population density is low and spread out, and customers have low-purchasing capacities.

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 of Distribution

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 products y By giving indian words for brands y By effective media communication

HANDSET MANUFACTURER: NOKIA FMCG: MARICO

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.   

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. y Nokia started distributing its phones through a partnership with HCL (formerly Hindustan Computers Ltd.), which had already built an extensive network for its own products.

CONTD«
y Tie-ups with key operators to deploy mobile vans in rural

villages.
y These co-branded vans are to educate consumers on the

impact of mobility on their lives, new bundled offers and product features/experiences

Nokia lifetools
y The pilot program of Nokia Life Tools in India was y y y y

launched in December 2008 With Services in Agriculture Learn English General Knowledge Astrology

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 years y 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 Crore consumers

PRODUCTS

y Parachute, y Saffola, y Sweekar, y Hair & Care, y Nihar, y Shanti,

y Mediker, y Revive, y Manjal, y Kaya, y HairCode, y Black Chic.

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 Indian

town 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.

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.

MARICO¶S SUPPLY CHAIN

Raw Material Vendors

Primary Sales Plants Depots Direct Distributors

Secondary Sales Retailer

33 depots, 37 ASM Areas

Super Distributors

Stockists

Total, > 1100

SUPPLY CHAIN

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.

Your views are invited

Sign up to vote on this title
UsefulNot useful