Competing for market share in rural India

The Indian market is at the center of a virtuous cycle of investments and consumption. Its economy has grown by 8% over the past decade and is predicted to grow even faster over the next 10 years.

Previously, growth has come from urban centers, but future growth is expected predominantly from semi-urban and rural markets. Given that market characteristics in rural and urban India are significantly different, organizations will increasingly need to customize their go-to-market strategies and maximize their “distribution equity.”

Distribution equity refers to the maturity and flexibility of a business’s distribution network – the ability with which that network enables the organization to effect sales.

“A focus on distribution equity will yield greater returns to organizations planning to succeed in rural markets in India.”

This article is based on the successful deployment of an integrated market-share improvement framework for a leading agriculture equipment manufacturer in India and we argue that the same methodology would be equally successful for most product-based companies.

The complete article was written by:

  • Raghu Venkatnarayan
    Executive Director in the Advisory Practice, Ernst & Young, India
  • Anant Sood
    Senior Manager in the Advisory Practice, Ernst & Young, India

Download the full article pdf (pdf, 1,7 MB)

EY refers to one or more of the member firms of Ernst & Young Global Limited (EYG), a UK private company limited by guarantee. EYG is the principal governance entity of the global EY organization and does not provide any service to clients. Services are provided by EYG member firms. Each of EYG and its member firms is a separate legal entity and has no liability for another such entity's acts or omissions. Certain content on this site may have been prepared by one or more EYG member firms