distribution system of rural market

8/13/2019 Distribution System of Rural Market

1/4

1

Mini Project on

Distribution System of

Rural Market

Visit nearby villages and observe the

distribution practices that are leading to the

availability of products and services to the

villagers. Find the gap and problems. Prepare

a paper on the distribution practices.

Submitted By:

Pratik Lohia (13108)

Arpit Chitransh (13032)

Swapnil Khushwah (13048)

Sharique Tahzib (13152)

Dhawal Shah (13230)


2/4

Rural Marketing Mini Project

Visit nearby villages and observe the distribution practices that are leading to

the availability of products and services to the villagers. Find the gap and

problems. Prepare a paper on the distribution practices.

Introduction:

We visited 3 villages to check the distribution practices of product and services. The names of the

villages are Ahire Gaon, Kondhwa Village, Barshi takli. These villages are located at a distance of 30

km from pune and come under grampanchayat. The villages have a population of approximately

8000 each and located at a distance of 9km from each other. The main occupation of these villages is

farming and fishery (as located very near to khadakwasla dam) however at least one or two

members of almost every house hold goes to city for a labour work wherein they are involved in

construction work.

Market:

Mandi : The villages have a common market called mandi wherein all the villagers buy vegetables

and fruits in bulk and it is seen that they visit twice a week to buy these items. The mandi also have

certain shops which sells all the products of daily needs. The typical kirana shops are also the part of

the mandi who are the main sellers of the grains.

Figure 1: Mandi Figure 2: Kirana store Mandi

Retail Stores in Villages: Villages have small retail stores where villagers can buy their daily

requirement products when they need it. The products are very limited and it was observed that its

usually the small size SKU. As per the information received these stores usually have higher sales

volume of Soaps, Biscuits, Cold drinks and bakery products.

Figure 3: Small Stores in Villages


3/4


Transportation Facility:

The villagers need to go the main road to avail the Government transport facility where they have a

request bus stop. The shared auto is considered to be the best way to commute as they are easily

available and dont cost much to them. and dont cost much to them.

Figure 4: Transportation facility for villagers

The Goods are usually transported with the help of Mini Tempo which are usually owned by the big

shopkeepers. The tempos are also given on rent by the owners when they are not in use.

Figure 5: Goods transportation

Services Available:

The Major services available which were available in these villages were Bank, Mobile Phone

Services, and Gas Cylinder services. The Villagers have a very good banking facility available wherein

they can avail different loan facility. All the three villages were equipped with all the possibletelecom service provider network since they were near to the city.

Problem: The Gas Cylinder Service was an issue where there is only one distribution centre among 7

villages. People have to que up to get the cylinder as there is always a shortage of supply.

Figure 6 Cylinder distribution centre


4/4


Solution: Since the villages have at least 1500 households each a distribution point can be setup in

each village where the distribution can be done directly from the Delivery trucks. Delivery truck can

be made like a distribution centre so it can minimise the hassle for the same.

Distribution of Products:

The Distribution of the FMCG and daily needs products is taken by one of the wholesaler ofthe village. He purchases the items in bulk from the city and distributes at a higher rate to

the small store. The wholesaler also owns a retail shop. He owns his mini tempo which is

used for the transportation of product.

Since the villagers are involved into farming they get their products to the mandi and sell itto the city dealers every morning so vegetable and fruits are easily available in the villages at

a cheaper rate.

Most of the villagers have their own cattle for milk. The excess milk is purchased by the smallstores which are then sold to the other villagers.

The purchasers of milk are the one who get fresh bakery products everyday to the villages sobakery products are also easily available.

Coca Cola and PepsiCo are the only two companies who make sure that their product isavailable and they distribute by their distribution van. They also supply with ICE box to the

retailer as electricity is a problem in these villages.

So if we look at the over distribution they follow a hub and spoke model where they areinterrelated to each other.

Problems & Gaps:

Lack of Pucca Road connecting Villages to Townships Lack of adequate transport facility.

Lack of Mass Media infrastructure Distance between the villages. Retailers are not aware of the new product as they never reach them. Marketing strategies make the product virtually available for the customer but the products

never reach the customer.

Companies manufacturing the clone products are actually taking advantage of thedistribution issues.

The margin earned by small store is very less as they dont get it directly from thedistributor.

distribution system of rural market

Documents