Improving FMCG Distribution in Peripheral Areas of Emerging Smart Cities: The Case of Gurgaon (Gurugram), India

• Published in: South Asian journal of management 2017-10, Vol.24 (4), p.109-121
• Main Authors: Singh, Hardeep, Ahuja, Sanjog Singh
• Format: Article
• Language: English
• Subjects: Brand equity; Brand loyalty; Classification; Consumers; Distribution channels; Economic development; Fast moving consumer goods; Geography; Innovations; Market penetration; Marketing; Product life cycle; Purchasing power; Rural areas; Smart cities; Startups; System theory; Towns
• ISSN: 0971-5428

This research paper aims at identifying and describing the improvements in the distribution models followed by FMCG Companies in peripheral areas of Indian smart cities. These midsized geographies are believed to be the epicenters of ever-growing consumer demand. Classification of Indian cities by multiple sources was studied. The concept of product life cycle was used to classify cities. This classification helped to realize why emerging markets in smart cities are drawing attention of FMCG companies. Through secondary research, field work and observational research, possible improvements in distribution of products to the unorganized retail outlets were arrived at. The authors have also looked at best practices followed by all the leading FMCG companies in India and have made recommendations to adopt the most efficient models. Best practices followed by all the leading FMCG companies in India were studied and recommendations are made to adopt the most efficient models. The innovations enumerated can help increase the shelf off-take and optimize distribution in FMCG sector. Additionally, an FMCG distribution centric classification of Indian cities is proposed.