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http://www.interarchbuil dings.com/casestudiesitc.asp?links=cases

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Rural distribution channels

Channel partners
Level 1 Level 2 Level 3 Level 4 Level 5
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Market place

Company depots / CFAs/ National / state super stockiest CFAs / redistribution stockiest / retailers (modern/ traditional) Cluster of districts / district headquarters

redistribution stockiest / Sub-district (Tehsil/ semi-wholesalers / Block)/ feeder town retailers Semi-wholesalers / Feeder town / periodic retailers / Mobile traders market in haat/ van Retailers / vans / Large and small villages barefoot agents( Shakti dealers) / cooperative societies /

Rural channel members

Conventional distribution channel members servicing rural market primarily include:

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Rural channel members

CFAs

Carrying & Forwarding agents

CFAs are the first link with the company depot for supplying products to channel Members, generally engaged by FMCG and consumer goods companies to supplement their own depot Usually cater to one region or state, depending on stock handled
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CFAs

Two types: with the investment, investing in stocks and transporting it to the next level investment (forwarding agents), acting as the transporter for the company

One

Without

falls in second category, providing go down space for stock4/21/12

Majority

Rural channel members

Redistributi on They are critical link between a company stockiest and its rural channels Responsible for supplying stocks to both rural & urban retail network Located at district headquarters First customers of company, investing in stock & employing a sales force to cover rural & Urban retailers Companies with large product portfolios 4/21/12

Rural channel members

wholesalers One of the oldest channel member In rural area, there is seldom distinction between wholesalers & retailers Retailers

Last link in distribution chain Procure stock from wholesalers in nearby feeder towns, & in some cases supplies reach them from stockiest through van supplies. 4/21/12

The rural retail environment

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Traditional retail
With

the Spread of consumers across various population categories, marketers face the problem of accessing these markets apart from ensuring the reach of their products to retail outlets, marketers also need to motivate retailers to stock their brands

They

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The rural retail spread

Number

of rural retail outlets has more than doubled in the last decade, from 3.5 million in 2002 to 7.8 million in 2010 more than 40 per cent of retail outlets are present in rural areas. outlets increases as we move from smaller to larger villages to design cost-effective

Today Retail Need

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Retail premises
Manifestations:

More permanent shops than kiosks Implications Transition from all-in-one to Changing lifestyle specialization Wider choices Shops : Bakeries, stationers, chemists Changing consumption etc. entry of specialty shop categories habit Greater use of non-existent earlier : mobile shops, photo studios, specialized product beauty /services Improved in-store parlors, Computer centers New categories in food segment : Iceexperience cream Parlors , Cold drink, milk parlors etc. Improved availability of brands 4/21/12

Rural market place

The rural retail shelf

With

the changing consumption habits and rising demand for new products and services, the profile of rural outlets & stocks on shelves are changing rapidly rural markets used to have shops stocking groceries and tobacco products categories have emerged:

Earlier

New
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The rural retail shelf

Type of shop
Chemists General stores Grocery stores Paan plus

Shops (in per cent)

4 13 62 21

Total
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100

Rural retail habits

With

improving connectivity, brand awareness, rural retail habits are also changing fast to shop from the nearby town or city is high among customers who residing within 25km periphery

Tendency

per cent of durables & 70 per cent of cloths/ footwear are 4/21/12 purchased from nearby towns and

80

Emergence of modern retail in rural areas

Major players: ITCs Choupal Saagar, DSCL Hariyali Kisaan Bazaar, Godrej Aadhaar & TATA Kisan Sansar

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Emergence of modern retail in rural areas

Share of organized retail is very low (merely 5%) only 10,000 out of 600,000 villages in India have access to organized retail services such conditions marketers have largely taken the agri-input

Approximately,

In

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Assignment
write a note on the following:
1. 2. 3. 4. 5.

ITCs Choupal Saagar, DSCL Hariyali Kisaan Bazaar, Godrej Aadhaar TATA Kisan Sansar 3A Bazaar

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Channel behavior in rural areas

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