FMCG advantages in rural market.
1.Huge opportunity. Pls read this book
As it is untapped market , opportunity
is huge in this area . New village or Tehsil, even block level coverage can be
given. Obviously giving coverage to new area will give additional business
volume .
2.Last mile
distribution.
Rural is the last mile distribution
point for any FMCG company. Giving micro
level coverage to rural market can create opportunity. This is the point where
product can be given at consumer’s hand.
As per census 2011 rural population
in India is 68.84 %. It is big consumer base and no company can ignore this big numbers of consumer.
3.Opportunity for value
players.
Rural market demands small pack and
high profit margin for traders. So value players can play a vital role in rural
market. Getting maximum quantity with minimum price is key character in rural
market. Hence all the value players can gain from this market segment.
Again we should not forget about
quality players also , day by day
development of electronic media can bring opportunity for them. As a whole, rural market is the key to success for value players
and quality players in future.
4.Increasing income .
Due to Govt. initiative, rural income
is increasing day by day. Also population in rural area are becoming aware of
new life style . As result future in rural India is bright for FMCG company.
5.Low competition .
In rural market competition level in
low . Because of communication and transportation problem ,all the brands cannot reach to the
rural market , so it is the opportunity for some brands. Also some products are
costlier than other products and not
possible to sell in rural market. Again some brands focus exclusively on urban
market and never goes to rural market. Overall,
rural market gives more opportunity and less competition.
Pls read this book
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