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Rural ar!eting" 2e

Chapter 8

Distribution in Rural Markets

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Rural ar!eting" 2e

Learning Objectives

# $nderstand the %hallenges and dile&&as in ruraldistri'ution

# Des%ri'e the %hannels o distri'ution

# $nderstand the rural retail environ&ent

# *plain %hannel 'ehaviour in rural areas

# Identiy the prevalent distri'ution &odels o dierentprodu%t %ategories

# Des%ri'e innovations in rural distri'ution and rural+%entri%distri'ution &odels

# Dis%uss the logisti% %hallenges in rural India

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Rural ar!eting" 2e

Availability: The Challenges and theDilea

# Rea%hing ,.- &illion retail outlets a%ross 00"000 villages

# -/ o the villages have a population o less than 2"000population

# Poor road %onne%tivity

# ultiple tiers o distri'ution leading to higher %osts

# Lo density o shops per village and high variation in their%on%entration

# Poor availa'ility o suita'le dealers

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Availability: The Challenges and theDilea

# Inadeuate 'an! and %redit a%ilities to rural retail outlets

# Poor storage syste&s leading to inadeuate sto%!ing

# 3ighly %redit driven &ar!et

# Poor visi'ility o produ%ts on rural shelves

# Poor %o&&uni%ation o oers and s%he&es due to poorrea%h o &edia

#

Inadeuate poer supply leading to spoilage o goods hi%hneed rerigeration

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The !volution o" Rural DistributionChannels

L!#!L Channel $artners Marketplace

1Co&pany Depots4C56s" 7uper

sto%!ists8ational47tate

2

C56s4Redistri'ution sto%!ists

Retailers4odern49raditional

Cluster o distri%ts

Distri%t 3eaduarters

:Redistri'ution sto%!ists

7e&i+holesalers4Retailers

7u'+distri%t(9ehsil4;lo%!)

5eeder ton

Grands -+ 1+

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3tock Turnover and Rural RetailHabits

# 6verage value o sto%!s in interior villages one+third oeeder villages

# B+ta!e o pa%!aged oodstus and to'a%%o produ%ts

higher in interior villages ith toiletries &ore in eedervillages

# 9enden%y to shop in near'y tons high ithin a 2/+!&radius or in villages %lose to the highay

# ar!eters need to ensure produ%t availa'ility at the rightpla%es

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Rural ar!eting" 2e

Modern Retail in Rural Areas

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Rural ar!eting" 2e

4TC Choupal 3aagar

# 5irst rural &all ith shopping area o ,"000 suare eet openedin 200ive argu&ents tosupport your %hoi%e.