Page 202 - DMGT509_RURAL MARKETING

Unit 10: Distribution Strategies for Rural Market

who visits the shops. Now, the shoe shops sell sports wear, woolens, leather garments Notes
besides shoes. Gasoline stations have general merchandize shops from where patrons
who come for filling their cars can purchase gift items, food products, and novelties to
name a few products. Service centers have restaurants where the persons coming to get
their car serviced can spend their time having a meal or snacks. Big departmental stores
too keep small eating areas and toilets for the shoppers. They have also added children
centers for the kids to have a good time while their parents do the shopping.
2. Discount stores are coming up for several manufacturers. Products, which, have some
small defect are sold at a discount at these shops. Manufacturers use these stores to fight
competition. While heavy discounts can be offered on practically good products, no price
war can be started on this basis.

3. Boutiques have sprung up in most cities to cater to the elite of the town. These shops keep
the latest fashion garments and other accessories. The products are high priced, as the
customers are not price conscious, they are looking for some thing unique as status
symbols.
4. Super store chains have come up to provide the same range of products, at the same prices
and similar selling techniques. Normally, the customer has one such store near his house
and he does not have to travel long distance to his super market for shopping. Marks and
Spencer and C&A in the UK are such chains. Now, Delhi too has its own Marks and Spencer
shop. With large volume business they offer competitive prices to the customers. The
small shopkeeper with low volumes finds it difficult to compete with these giants. These
chain stores dictate their terms to manufacturers as they hold large volume business. They
at times, get the manufacturers to supply the product in their own brand name, rather
selling the product with manufacturers brand.

5. Shop-less shops sell products to customers through television shows, computer advertising
and telephone marketing. Television has time slots during which products are shown and
their use demonstrated. The customer is then requested to place his order on telephone for
delivery to his for cash payment. Internet too is used to give product demonstration and
orders are solicited through Internet only, with payment to be made via credit cards.
Telephone calls are used by tele-marketers, who give their sales pitch on telephone to
carefully selected, likely customers. These calls are followed by visit of salesman to procure
the order on the basis of telephone calls, which have, to an extent conveniences the customer
in to buying the products. With low overheads these sellers can offer low prices and one
wonders if the days of Super markets are numbered.
6. Retailers are now using the latest electronic products like computers for billing, inventory
control, building customer database, and electronic anti-theft and surveillance devices.
Bank retailing has gone to the extent of salesman less sales through Automatic Teller
Machines or the ubiquitous ATMs.
7. Manufacturers’ own shops as a retail system has been tried by several manufacturers in
India, like Usha, Bata and Singer. These shops have the advantage of providing the genuine
products at company prices. Customers can get the entire range of products, as well as full
variety. However, if the manufacturers range of product is not large enough, the shop will
not be a success as the customers visits shops for a range of products where they get to see
the full variety. A manufacturer of only toothpaste, handkerchief or boot polish cannot
sustain to run a shop just for a single product. Specially for this reason, Usha, Bata and
Singer have all started to sell a complete range of products even on buy-sell basis. Shops
diversify their product range by adding similar products/products which go as accessories
with their main products to take the synergic benefit of add on products.

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