FMCG sales in rural market

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Definition of rural area.

As per census govt. of India 2011,rural area means all the area or location except the following             

 A.A place where minimum  population is 5000                                                               

B. At least 75% of male working population are engaged in non agricultural sector.            

C. Density of population is at least  400 per square KM.

Working in rural area.

Rural market working is not like urban market . In rural market there are many challenges . First of all population for rural are low in  comparison to urban area. In rural area majority of  population  are not aware of quality product. In this area retailers play a vital role .  As the retailers are concerned about their own profit ,obviously they will sell high margin product. Quality products cannot give too much margin for retailers , here comes the challenge for low margin brands.

Sale people working with low margin product finds some difficulties in this area. Convincing traders becomes very challenging. In this case it is recommended to promote a comparatively high margin product. Once you enter in a outlet with comparatively high margin product , step by step you can place other quality product. But it will take time. In rural area, always focus on traders profit first ,and quality second. In rural area retailers are king , because number of outlets are low.

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