Reprint: R1406J
In India and other large emerging economies, rural markets hold great promise for boosting corporate earnings. Companies that sell in the countryside, however, face poor infrastructure, widely dispersed customers, and other challenges. To better understand the obstacles and how to overcome them, the authors—researchers with Accenture—conducted extensive surveys and interviews with Indian business leaders in multiple industries. Their three-year study revealed several successful strategies for increasing revenues and profits in rural markets:
Start with a good distribution plan.
The most effective approaches are multipronged—for example, adding extra layers to existing networks and engaging local partners to create new ones.
Mine data to identify prospective customers.
Combining site visits, market surveys, and GIS mapping can help companies discover new buyers.
Forge tight bonds with channel partners.
It pays to spend time and money helping distributors and retailers improve their operations.
Create durable ties with customers.
Companies can build loyalty by addressing customers’ welfare and winning the trust of community leaders.
