Distribution alternatives to serve the rural market, it's

advantages and disadvantages

DCM ASSIGNMENT
Submitted to: Sir Muhammad Ikhlaque Ahmed
Student Name: Nabeel Omer
Rural Population of Pakistan and India are 62 percent and 70 percent of total
population. Considering this huge size a big portion of FMCG market is still untapped
and local unbranded products enjoy a high share according to certain areas.
Here are some distribution alternatives for serving the rural market:
1. Local Retailers:
• Advantages: Partnering with existing local retailers allows businesses to tap into their
established customer base and distribution network. They have knowledge of the local
market, customer preferences, and infrastructure challenges.
• Disadvantages: Limited control over product placement and branding. Inconsistent
quality of retail outlets and potential competition among multiple retailers in the same
area.
2- Handling Agent
• Handling Agent distribute the goods from a main Distributor and in turn they supply the goods
to wholesalers and also serve retails.

3-Direct Sales or Door-to-Door:

• Advantages: Personalized approach and direct interaction with customers, which can build trust
and loyalty. Flexibility to adapt to customer preferences and offer product demonstrations or
trials.
• Disadvantages: Labor-intensive and time-consuming. Requires a dedicated sales force and
ongoing training. Limited scalability due to the need for human resources.

4-Rural Cooperative Networks:

• Advantages: Collaborating with rural cooperatives or self-help groups allows businesses to

leverage their existing distribution infrastructure and community networks. It promotes local
entrepreneurship and empowerment.
• Disadvantages: Limited control over product placement and pricing. Dependence on the
effectiveness and reach of the cooperative network. Coordinating with multiple cooperatives
may be challenging

It's important to consider the specific characteristics and needs of the rural market when choosing a
distribution alternative. A combination of these approaches or a tailored strategy may be required to
effectively serve rural customers.