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Easy Access Case Analysis

The document summarizes an initiative called "Easy Access" that was started in 2005 to develop cost-effective rural distribution channels in India focusing on women empowerment. Easy Access partnered with local self-help groups (SHGs) and trained women called "Sahayikas" to sell Easy Access products in their villages. However, the initiative faced several challenges including high operational costs, improper demand forecasting, and cultural issues. Sales started declining and receivables increased. Recommendations included refocusing on marketing fundamentals, tailoring the strategy for underprivileged regions, and improving training.

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Rajan Mishra
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138 views11 pages

Easy Access Case Analysis

The document summarizes an initiative called "Easy Access" that was started in 2005 to develop cost-effective rural distribution channels in India focusing on women empowerment. Easy Access partnered with local self-help groups (SHGs) and trained women called "Sahayikas" to sell Easy Access products in their villages. However, the initiative faced several challenges including high operational costs, improper demand forecasting, and cultural issues. Sales started declining and receivables increased. Recommendations included refocusing on marketing fundamentals, tailoring the strategy for underprivileged regions, and improving training.

Uploaded by

Rajan Mishra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Easy Access Case Analysis

Presentation
Group: 06
Problem Statement

To develop a cost effective distribution channels for last mile distribution among rural
consumers and focusing on noble social objectives like women empowerment so that rural
customers would be benefited.
Easy Access

Opportunities 4As
Founder Objective

• Dr. Prasad Established • Rural marketing • According to McKinsey, Prasad believed in the 4A’s
“Easy Access” in 2005 Indian rural markets will • Acceptability: Product
• Developing an alternative be four times larger than • Availability: Place
• Engineering from IIT and cost effective last mile urban markets i.e. $577 • Affordability: Price
PGDM from IIM distribution networks bn (2007) • Awareness: Promotion

• Work Experience in • women empowerment • rural consuming class in


Development sector and India is growing at the
Academia rate of 3-4 %
Rural Market Distribution Channel

Existing(traditional) FMCG Distribution Channels


Rural Market Distribution Channel
Issues and challenges related to Operations and Marketing Challenges
Logistics
• Different consumer buying
behaviour than urban
High Transportation Cost Improper Demand Estimation
• product development
• Deciding pricing
• sales and distribution
• marketing communication
Low Population Density Issues Inaccessibility
• Complex socio-cultural
environment

Storage/Warehousing Improper connectivity


Business objective of easy access

Initiative with SHG (Self Helping Group)


Objective
• Started in 2007, with help of “Sahayika” from local SHG
• Mitigate the existing gap between considered as partners in distribution channel
marketing efforts for various
• Objective: Promote micro-savings and micro lending among
products/services and customers
the group members
• Rural marketing
• Sahayikas acted as a connecting link, sold easy access products
• Female empowerment to end consumers

• Livelihood generation • Initial training and periodic training was given to the Sahayikas
Business operations of easy access

• Products like soaps, oil, cream etc. were marketed under the brand name of Easy access

• Procurement was done by partnering with small scale industries manufacturers on contract basis

• Regional manager was assisted by four area managers Area Managers

• Area Manager:

• Monitored activities of 20-30 Sahayikas in each district

• Responsible for capacity building of Sahayikas


Problems/issues related to the easy access

• Ambitious target : 20,000 SHGs in 18 districts

• To tie up with ICICI Prudential and Reliance Life for insurance

• Sales started to shrink after few months, receivables still pending

Problems on field

• Staff accused the government giving products for free: KBK (Kolhapur, Kalahandi, Bolangir)

• Employees accused Easy access to make a profit

• KBK region is one the most under privileged in country as well as world

• Situation that critical for administration broken in to 8 districts in 1992

• Majority of population of KBK region lives in Rural (84%-92%)


Problems/issues
Problems/issues related
related to thetoeasy
the easy access
access (Contd)

• Literacy Rate in Odisha KBK v/s Non KBK : 77.54% vs 57.17%

• Organizations, NGOs work in this area to facilitate government schemes which gave product at minimal price
/free.

• Sahayikas had complaints about RM, AM and product suppliers

• Suppliers forcibly insisted all the categories on Retailers

• Problem of Big packets of 500g, 1kg and 2 kg: buying capacity and behavior of Rural market

• AM working in pressure to push sales, giving stocks on credit without verifying Credit worthiness of Sahayikas

• Sahayikas, using product in their own homes : Cultural factor

• Losses due to environment, rats and improper storage were also high

• Above MRP by sahayika and below MRP in Melas made customer angry
Recommendations

• Bring focus back to 4A’s (acceptability, availability, affordability and awareness)

• Having different strategy for KBK region or leaving it out for initial years

• Promotional campaigns to have a brand identity not to be confused with government schemes,
(consumer will pay)

• Targets of channel instead of individual player

• Consumer behavior to be acknowledged e.g. size of packets

• Operational losses to be reduced to increase profit margin

• Proper training of AM (credit worthiness) and sahayika (selling and personal) for their respective role
Thank You

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