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Cci Last Mile Distribution Challenge

In: Business and Management

Submitted By jayesh13a
Words 1159
Pages 5
Subject: Sales & Distribution Management (SDM)
Roll No: EPGP-06-173
Name: Jayesh V Nair
Case: CCI- Last Mile Distribution Challenge

* Why should CCI invest in rural markets? What are the opportunities in rural markets for CCI? The size of the rural market is much higher than the urban market as 68.80% of the population resides in rural India. 50% of the GDP comes from rural India and the income from the rural India is going to increase substantially in future. The per capita income of the rural population is going to increase to a great extend. According to the study by McKinsey the rural household in the annual income bracket of Rs 90000 to Rs 200000 will contribute 70% of the rural contribution.
The per capita consumption of confectionery in India was as low as 20 gm, when compared to the global average of 3000 gm, Europe’s average of 6500 gm, and US average of 9000 gm. As the per capita income and population in rural India is large, there’s a lot of opportunity for CCI to grow in the rural area.
The penetration of the chocolates is very low in the rural markets so the company has a huge market in the rural India compared to urban India. The company needs to create brand awareness and brand recall in the rural India who are more price conscious. With the new marketing strategies CCI can capture an untapped market potential faster.
The increased allocation of the of the funds by the government to the rural population will enhance the spending capacity of the rural population. The potential increase in income at the hands of the rural population will increase in growth opportunity for the company.

* What were the barriers for CCI to distribute in rural markets?

It will be very difficult to understand the consumption pattern of the rural population was its very large and scattered. Without understanding the spending pattern, CCI

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