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.