India to bring in the much-needed volumes was large. The crux for companies’ policies when innovating for evolving BoP consumers, had to center round its distribution and supply-chain. People within the company and outside agencies were singled out to understand the system and make it a success. Strategies were evolved. Physical and social infrastructure were set up. And the latter has paid off.
A New face Initially, in order to reach out to the masses, most companies sought
out super-stockists in areas that had a cluster of villages or shops. Sachin Vyas, Vice-President (Sales), Tata Global Beverages (TGBL), says, “We worked out van routes to incubate spaces where normal stockists were unable to reach and created a pull for our products.” This worked well when the company was merely trying to sell new products in such places. But it was the creation of incomes for people there and the appointment of rural folk, especially women, and bringing them into the distribution system that worked
well for both – companies as well as rural folks. While Hindustan Lever Ltd (HUL) is cited as the role model in this strategy, and ITC’s e-Choupal has been another trendsetter, many more companies have taken this forward over the last few years, thus playing a vital role in rural development. Saroj Kumar Mohanta, Partner, MART, says, “We understand that the rural consumer is also a producer of goods and services. Therefore, if companies can work with the rural poor to produce goods or services, the income will increase INDIA |
Companies are known to train rural people before roping them into the supply-chain.
September 2011 | www.logisticsweek.com
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