Appraising the FMCG Product Distribution in Rural Areas

Abstract

The study intends to analyze the distribution and logistics problems faced by companies at lower level. As the maximum sales of FMCG products are done in rural areas, the companies face problems of distributing goods as there is no fixed transport facility. Companies operating in rural markets face particular challenges because of the low density of the population and poor transport facilities and infrastructure. The objective of study is to understand and analyze the problems from wholesaler and retailers point of view simultaneously. The study is based on descriptive research technique. FMCG retailers of rural areas of NCR region have been questioned while using convenient sampling method. After analyzing the distribution system of FMCG companies (incorporating distributors, diverse retailers and the sales executives) study found the product delivery, frequency and timely supply as the main issue with the retailers and they face a lot of problems due to weak distribution network and channel. Lack of transport utility and bad condition of rural roads also create a lot of hindrance in distribution of FMCG products in rural areas. Every company has to evolve suitable distribution network to sell its products and services in rural emerging markets.