Zero based Distribution

channel
for toys in Rural market
Abhishek Agggrawal 091101
Agraj Bhatia 091104
Bhargav Shekhar 091113
Debolina Panja 091115
Loveaman Shukla 091124
Nitul Chaudhary 091129
Rinku moni 091140
Satyabrata Shetty 091146
Vaishali Bhati 091154
 Defining Rural Market
• The census of India, defines Rural as any
habitation with a population density of less
than 400 per sq. km ,where at least 75% of the
male working population is engaged in
agriculture and where there exists no
municipality or board.
 Myths about the rural sector
• Rural people are not brand conscious.

• Rural People buy cheap products. They seek

“value for money”.

• Rural market is a homogenous mass.

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 Traditional toys making in india
Child And Nature
•It is nature that rural children look to when it comes to
toys and playing. What touches one's heart is the
simplicity of these toys that provide not just amusement
to the child but also the means to learn while playing.
•The list of toys characteristic of rural India is endless;
from whistles, toy trains, catapults, and marbles to
swings. Unlike the mechanical mindless GI Joes and
Barbie dolls of today, these toys are more natural and
close to real life. They teach a child about the bounty of
nature and enable understanding and appreciation of
nature from an early age.
 Types of toys
Clay toys Wooden toys

Plastic toys Mechanical toys

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 Challenges and Dilemma
• Large number of small market
• Dispersed population and trade
• Poor road connectivity
• Multiple tiers leading to higher costs
• Poor availability of suitable dealers
• Inadequate bank and credit facilities
• Poor storage system
• Highly credit driven market and low investment
capacity of retailers
• Lack of communication due to poor reach of media

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 Distribution strategy
• Availability determines volume and market
share, because the consumer usually purchase
whatever is available at the outlet, influenced
largely by retailer’s advice and
recommendation.
• Historically the rural distribution system has
included wholesalers, retailers, mobile
traders, vans and weekly Haats.
Prevalent rural distribution model
Urban/rural Urban whole
manufacturer seller

Feeder town
Whole seller
and retailer

Rural retailer

End user
 Zero-based channel
It is set up by organization when the service output
demand of consumer and that of manufacturers not being
met by the existing channels.

They do not have any historical data.

They are put into place to bridge the gap between the
expected
service output demand

And what is currently being performed by the existing

channels.
 A New Channel •Maximize reach.

•Minimization of
Intermediaries hence
manufacturer increase in profits.

•Minimization of waiting and

delivery time

Mobile
Vendors(tokriwalaas,thelewalaas,paddlers,etc.)

End user
 A New Channel

company NGO’s

Village retailers

.Extension of product width.

.Better mobilization of
End user resources.
 Advantages of channel proposed
 Employment Generation

 Increase in the profits and equal sharing

 Less risk involved

 Direct feedback

 Presence of trust

 Eco-friendly

 Can reach to more number of consumers

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 Conclusion
• Rural market is not Brand conscious as for the
toys, it is similar like you buy a polythene
without thinking of Brand but conscious of it’s
usability.