Overview

Rural Distribution Extension Program for a Leading FMCG Company in Snacking, Beverage and Confectionary Categories.

Project Background

The client, a key player in the confectionary, snacking, and beverage industry has had an urban skew in its sales. With increasing income levels and exposure to media, the client sensed an opportunity for achieving significant volume growth in untapped rural areas.

Challenge

There was no outlet census or database for the uncovered villages spread across 75 districts of the target geography. High potential villages had to be identified and route mapping done to maximize coverage efficiencies. Beat plans had to factor coverage of all major village routes as well as distance from the nearest sub-distributor from where ready stock was collected, and settlement done at the end of the day.

The challenge here was to cover all the 75 districts and cover all village routes which had a large base of outlets. An additional challenge was to coordinate the sub-distributor personal to carry stock along with our channel development team. The retailers also need to be sold initial quantity of stock, and complete demographic details needed to be captured.

Our Approach

Target villages in the 75 districts were identified using population data, proprietary databases, and client sales team inputs. Coverage plans were drawn up in conjunction with the client sales team and sub-distributors. Coordination was done with the sub-distributors to ensure adequate stock availability and team alignment on coverage days.

Our reporting software was programmed to collect outlet demographics along with photographs and GPS data for validation. Two rounds of coverage were planned – the first for placement and mapping, and the second for repeat sales to gauge sustained sales.

Key Takeaways

Over 20,000 productive outlets were mapped in uncovered villages with a high level of repeat productivity and sale per outlet to justify cost of coverage. Coverage plans were drawn up and shared with the client for inclusion in their regular distribution plan.