Distribution medium in rural retailing

Abstract

When a company decides to sell its products and services in a rural emerging market, one of the most important decisions it will make is the design of its distribution network. While a company operating in a developed market needs to carefully consider its distribution network design in order to achieve profitability, companies operating in rural emerging market face particular challenges because of the low density of the population and poorly developed transportation infrastructure. Indian rural market poses gargantuan challenges for the marketers. To fill the retail centers which exist in about 6 lakhs odd villages is a very challenging task for marketers. The present paper analyses different distribution channels that can be effectively used in rural retailing. For every new opportunity for a villager to use his mobile phone to protect his crops, there is a knock-on opportunity for him to purchase a small refrigerator or a motorcycle. The main advantage of this system is that it facilitates market penetration in the interiors of market. However, the firm must ensure is that it facilitates market penetration in the interiors of the market. Thus successful company will be one which meets consumer's expectations through products offered at affordable cost and still is in position to earn a decent return on investment because of its strong, efficient and intelligent distribution channel.