fmcg distribution strategies in rural India
Reaching The Real India
Distribution strategies for FMCGs in the rural Indian landscape
A paper byAnurag Kumar (10)
Bhuvan Deep Dua (20)
Himanshu Goyal (30)
Nitika Gupta (38)
Pramod Kumawat (40)
Sahil Jain (50)
CONTENTS
TITLE
Abstract
Introduction
The FMCG Sector in India
Challenges
Distribution Channels
Various Distribution Strategies
Haat Activation
Use of Affinity Groups
Co-operative Institutions
Mobile Traders
Hub and Spoke Distribution
Syndicated Distribution
Conclusion
1|Reaching the Real India
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ABSTRACT
In recent years, rural markets have acquired a significant part of consumer market, as the growth of economy has resulted into increased purchasing power of the rural communities.
Simultaneously, urban markets have saturated with a high degree of competitions and organizations are now looking at rural markets. The rural market consists of 70 per cent of
India’s more than 1 billion population and provides immense opportunities for organizations to enter and operate profitably.
The impelling case of rural markets has lured large corporations and small and medium enterprises (SMEs) alike. India’s largest Fast Moving Consumer Goods (FMCG), consumer durable and automobile companies are already clocking 20-40% of their annual revenues from rural markets, beating the growth rate estimates of their urban counterpart’s year on year. At the same time the nature of rural emerging markets makes building a successful marketing and distribution channel challenging. For example, the population is widely dispersed, transportation infrastructure is often poorly developed or non-existent, household incomes are low and sporadic, and traditional methods of creating brand trust and awareness do not work.
This paper examines these challenges for FMCG organizations from a marketing channel and distribution perspective. The paper attempts to:
Analyse FMCG sector in
Distribution strategies for FMCGs in the rural Indian landscape
A paper byAnurag Kumar (10)
Bhuvan Deep Dua (20)
Himanshu Goyal (30)
Nitika Gupta (38)
Pramod Kumawat (40)
Sahil Jain (50)
CONTENTS
TITLE
Abstract
Introduction
The FMCG Sector in India
Challenges
Distribution Channels
Various Distribution Strategies
Haat Activation
Use of Affinity Groups
Co-operative Institutions
Mobile Traders
Hub and Spoke Distribution
Syndicated Distribution
Conclusion
1|Reaching the Real India
PAGE NO.
2
3
5
6
7
9
11
12
14
16
17
18
ABSTRACT
In recent years, rural markets have acquired a significant part of consumer market, as the growth of economy has resulted into increased purchasing power of the rural communities.
Simultaneously, urban markets have saturated with a high degree of competitions and organizations are now looking at rural markets. The rural market consists of 70 per cent of
India’s more than 1 billion population and provides immense opportunities for organizations to enter and operate profitably.
The impelling case of rural markets has lured large corporations and small and medium enterprises (SMEs) alike. India’s largest Fast Moving Consumer Goods (FMCG), consumer durable and automobile companies are already clocking 20-40% of their annual revenues from rural markets, beating the growth rate estimates of their urban counterpart’s year on year. At the same time the nature of rural emerging markets makes building a successful marketing and distribution channel challenging. For example, the population is widely dispersed, transportation infrastructure is often poorly developed or non-existent, household incomes are low and sporadic, and traditional methods of creating brand trust and awareness do not work.
This paper examines these challenges for FMCG organizations from a marketing channel and distribution perspective. The paper attempts to:
Analyse FMCG sector in