Zero base Distribution channel

for toys in Rural market Abhishek Agggrawal 091101

Agraj Bhatia 091104Bhargav Shekhar 091113

Debolina Panja 091115Loveaman Shukla 091124

Nitul Chaudhary 091129 Rinku moni 091140

Satyabrata Shetty 091146Vaishali 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/ruralmanufacturer

Urban whole seller

End user

Feeder townWhole seller and retailer

Rural retailer

Zero-based channelIt 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

manufacturer

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

End user

•Maximize reach.

•Minimization of Intermediaries hence increase in profits.

•Minimization of waiting and delivery time

A New Channel

company

Village retailers

End user

NGO’s

.Extension of product width.

.Better mobilization of

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 consumers11/04/23 12

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.