NMG has developed proprietary tools CITPRO (City Profiler) and DISPRO(District Profiler) which can help companies prioritize urban and rural markets for a variety of business requirements.

 

CITPRO for consumer product companies

Consumer product companies face numerous challenges while evaluating opportunities in urban markets. The metros are well known as large demand centers for most products. The challenge is which Tier II and Tier III cities should be prioritized for expansion.

CITPRO identifies a market’s attractiveness based a number of factors for the city and the nearby rural areas. Attractiveness coupled with other factors like distribution strength and brand awareness is used to prioritize urban towns.

 

CITPRO for organized retailers

Prioritizing market entry and expansion remains a challenge for organized retailers. Some of the issues they grapple with are:

• Which towns are attractive for setting up new stores? What is the potential number of stores that can be set up in each town?
• How do we prioritize newer towns for expansion over the next 5 years?
• What should be the roll-out plan for entering the prioritized towns?

CITPRO maps attractiveness with readiness for modern trade to prioritize town’s for entry.

 

DISPRO

Lack of adequate data typically limits the business’s ability to prioritize rural markets optimally. Data available for consumer goods from traditional sources like AC Nielsen’s retail audit and IRS’s product penetration permits analysis at a state level only. Disparities at a district level are not available. Identification of districts with a high number of potential users is also not possible with current data sources.

DISPRO can assist consumer facing companies prioritize rural markets in a comprehensive manner far more effectively than traditional methods. This approach is developed on a large sample of ~50,000 households in rural India in 2006, 2008 and 2010. A similar sample is available for urban India.

The approach is first to understand factors impacting current and potential adoption of a category in rural India. Next market potential is identified based on both current and future users. Next focus markets are prioritized considering market potential as well as cost-to-serve indicators.

DISPRO can be used to prioritize both rural and urban markets for addressing strategic issues related to geographic expansion and market share gain for both existing and new products. In times of slowdown, it can be used to find pockets of resilient demand and focus resources on them to ride the downturn effectively.