Assignment task:
Usha International, one of tridia's most trusted consumer goods the last-mile connect to retail in the rural areas. The company feels brands according to AC Neilson, is in the process of consolidating that in order to ramp up rural presence, it is very important to its distribution network by strengthening its pristing network as receive reliable information on the last-mile sales, deliveries and well as adding more capacity through, plonely retail formats orders, and customer feedback which will enable the organisation in rural distribution. The company occupies hign brand recall in to be nimble and serve more customers front rural areas affortlesily: seteral product categories like fans, sewing machines, cooking
Another interesting initiative involves opening 'Usha Joy stores appliances, home appliances, drinking water solutions, etc. The in tier-3 and tier-4 towns. The objective is to let the customers company realizes that in these product segments, the main source living in these towns and rural areas experience the company of growth is through tapping the vast rurat market as well as the full product range. These stores are company-designed, franchises customers in tier-IIf and tier-IV towns with a population of less owned and -operated exclusive brand stores that are set up to than 1,00,000. The distribution strategy involves a combination offer all company products under one roof, transfer better brand of exclusive distributors, sub-distributors, and company-owned experience and improved product interaction. The company stores. The company already has a strong presence in large urban is also improving its online presence by offering its products mackets where there are well established distributors and exclusive through Amazon.com. There are Sitso other infitiatives planned to showrooms.
improve the e-commerce sales. Through these initiatives, Ushe
In rural areas - which the company defines as towns/settlements
International aims to vastly improve sates of their new products below 1,00,000 population, the company plans to establish its by changing customer behaviour in the rural areas of Indie o presence through a network of integrated rural distributors. Each developing a strong competitive advantage of these integrated rural distributors will serve about 100 retail outlets in tier-3 and tier-4 towns thus improving the availability Infoline News service: Mumbai, May Adapted, from "USHA further strengthens distribution network in India.. Usha plans150 integrated rural distributors by year end
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1. Detail the activities that typical distribution Channel performs.
2. Do you think intermediation is needed in USHA international? Did it add value to its distribution function?
3. How do you justify the need for assortment in USHA international distribution system?
4. Discuss the salesmanship characteristics that are required for such multi tier company.