(*4A= Availability, Affordability, Acceptability,
The rural marketplace is extremely colossal in difference to
the urban marketplace in addition to it is extra challenging market. The consumer
wants those produce that are long permanent, good, easy to use and cheaper. The
income level of rural customers is not as high as the income level of city
customers that’s why they want low worth goods. It is one of the reason that
the vend of sachet is much larger in the rural span in all segments. It is
vital for all the FMCG main companies to furnish those produce that are facile
to obtainable and affordable to the consumers. It is right that the profit
margin is very low in the FMCG produce, but at the like period the marketplace
size is much colossal in the rural area. The firms can cut their prices by cutting
the prices on the packaging because the rural consumers don’t demand appealing
packaging. Request of 4A* is additionally a major task for the main firms
in this area.
As I possesses analyzed the assorted data established on
questionnaire, a fact has come into light that HUL’s produce are the most
recognized and accepted Brand in context of residence FMCG produce in rural
marketplace pursued by DABUR, ITC and P. Because of huge product line,
cheaper price, brand loyalty, good publicity and advertisement, the rural
customers usually prefers the produce of HUL in all segments. Except it, people
firstly favor for good quality and moderately low benefits products.
Rural consumers prefers mostly herbal/cool oils, e.g.-
Navratna, himtaj, Himgange,etc. 31% of the rural consumers prefers herbal
oils because of their multipurpose use. They use these oils as medicine also.
25% of the rural consumers prefer dabur amla, third place occupied by Marico’s
Parachute which is prefers by 21% of rural consumers. 18% consumers prefer
Bajaj-Almond and 5% prefers some other hair oil brands.
16. DATA ANALYSIS FOR
PREFERENCE FOR HAIR-OIL IN RURAL MARKET-
The HUL’s Fair & Lovely is most accepted brand in the
rural marketplace most of the customers especially female consumers uses this
brand. Approx. 65% of rural customers uses Fair & Lovely as their best
trusted brand. Subsequent locale is additionally inhabited by HUL’s product
(Ponds) that is favored by 23% of consumers, 10% customers prefers Vicco
and 2% uses a little other brands.
As each fairness cream is concern, there is not extra brands
are in the competition. Merely insufficient brands of HUL and e-mami arrests
the market. A brief description is given in the following table.
15. DATA ANALYSIS FOR
PREFERENCE FOR DETERGENTS IN RURAL MARKET-
As given in the above table, lump sum the half of the detergent
marketplace is obscured by HUL and P&G products. Nirma which was the
initiator of introduction of detergent in rural market is presently out of the
market. This condition displays that the rural customers are additionally
desire to quality produce, merely worth is a factor in front of them.
customers prefer supplementary innate detergents for their confidential
excel of HUL is subsequent managing brand in sachet group alongside 35%
customer preference which is prefers merely 6% in colossal examples due to its
% customers prefer P&G’s Current in medium or colossal size example but it
is managing brand in sachet group alongside 43%.
customers prefer ghari detergent in medium or colossal size example, but not in
customers prefers HUL’s wheel in medium or colossal example, but customers
not prefer it in sachet.
As each given in above table, the consumer’s preference
towards detergents is as follows:-
Detergent is one more extra preference able product
for rural consumers. Approx. 87.4% penetration level of detergent is gone
to rural consumers. The preference of rural consumers towards detergents is
given in pursuing table-
14. DATA ANALYSIS FOR
PREFERENCE FOR DETERGENTS IN RURAL MARKET-
This Analysis displays that a large bulk of rural consumers
prefers HUL’s clinic plus and Sun-silk in elevated and medium size sample. But
on the supplementary hand, in sachet example there is disparate story. Extra
than 50% of the rural customers prefers the brands of P&G (Heads &
Shoulders and Pantene).
includes non-shampoo users or users of some Other brands,
% prefers clinic plus.
goes across Pantene.
of customers uses Heads & Shoulders.
13.1. Preference of
shampoo in sachets:-
customers prefer supplementary shampoos or non-shampoo users.
customers go across Calvin Care’s Chick.
customers prefer sunsilk.
prefers clinic plus.
The customer’s preferences towards shampoo are as follows:-
As each concern of shampoo, finished 31.9% shampoo uses in
rural market. It shoes a good number of consumer’s preference towards
shampoo in rural area. From the last insufficient years, the demand of shampoo
sashes in addition to medium size bottles possesses increased in rural area.
Peoples of every single period are interested to use shampoo at usual interval.
The preference of customers towards shampoo is given in pursuing table.
13. DATA ANALYSIS FOR
PREFERENCE FOR SHAMPOO IN RURAL MARKET-
In this scutiny, I found that a large bulk of rural
customers prefers Lux as their extra devoted brand.
As each given in the above table, the 90% of the soap
marketplace is covered by the produce of Hindustan Uniliver.50% of rural
customers prefers HUL’s Lux, whereas as 30% goes towards HUL’s Lifebuoy third
locale is additionally acquired by a HUL product where 15% of the marketplace
seized by Rexona. 8% of rural consumers prefers a little supplementary soap
In the survey of preference of my target customers towards
soap, I had discovered the disparate preference and disparate choice of the
consumers. On the basis of their choice, I possesses become the pursuing data
given in pursuing table:-
12.2. Data Analysis
for Preference for soap in Rural Market-
As each analyses of above pie chart, we possesses discovered
that Hindustan Uniliver’s Pepsodent leads the marketplace alongside 35% rural market
share. 30% of rural customers prefer Colgate as their favorite toothpaste
brand, after once more Hindustan Uniliver’s close up occupies third locale
alongside 15% marketplace share.10% of the rural consumers prefers Dabur’s
babool toothpaste and 10% customer’s uses supplementary toothpaste brands.
preference towards disparate toothpastes
In the early years, the rural customers favored toothpowders,
datoons etc. but from the last decade, the preference of rural customers
towards toothpaste possesses been changed. A huge number of toothpastes of
disparate firms are vended in rural market. Colgate, Pepsodent are the most
accepted toothpaste brands in rural market. The rural customer’s preference
towards the disparate toothpaste brands are given in pursuing pie chart.
12.1. Data Analysis
for Toothpaste in Rural Marketing-
After a good deal of customer survey and marketing scutiny, I
possesses amass a good collection of data. The analyses of those data’s
are given as follows:-
12. Data Analysis-
As the questionnaire is self-administrated one, the survey is
retained easy and user friendly. Words utilized in questionnaire are
effortlessly understandable to all respondent. Additionally technical jargons
are evaded to safeguard that there is no confusion for respondents.
Secondary data was collected through
magazines, research papers, internet etc.
Primary data was amassed across a self-administrated
questionnaire. This questionnaire aims to gather data connected to assorted
Called Electronic Home Appliances.
10.2. Data Collection
PROCEDURE: -Random Sampling
REGION : -Pune
SAMPLE SIZE: -50
Irrespective of their education level.
UNIT: -All working people are included both the genders
i.e.males and females
10. RESEARCH METHODOLOGY
Rural marketplace is one of the
best opportunities for the FMCG sector. In a little sense we can say that rural
marketplace is upcoming of FMCG. As each scrutiny of Purba Basu, (faculty of
ICFAI company school), the lifestyle of rural customers is changing. Rural
Indian marketplace and the marketing strategy possess come to be the latest
marketing buzzword for most of the FMCG majors. She added the strategies of
disparate FMCG firms for seizing rural marketplace like Titan’s Sonata watches,
Coco Cola’s 200ml bottle, disparate strategies of HUL and Marico etc. She
seizes into thought the discover of Nationwide Council for Requested Commercial
Scutiny (NCAER). According to the NCAER protrusions, the number of middle and
high-income households in rural area. India is anticipated to produce from 80
million to 111 million by 2007. In city India, the alike is anticipated to
produce from 46 million to 59 million. Thus, the definite size of rural India
is anticipated to be double that of city India. According to Pradeep Tognatta,
(former vice head of LG) The commercial development in India’s agrarian sector
in last year was above 7%, contrasted alongside 3% in the manufacturing sector.
This implies a huge marketplace potentiality for the marketer to encounter up
rising demand. Factors such as village psyche, forceful allocation web and
marketplace awareness are insufficient prerequisites for making a dent in the
rural markets. The ideal is of the stolid Anglo-Dutch conglomerate Unilever
Group, that possesses enjoyed a century-long attendance in India across its
subsidiary Hindustan Lever Ltd. It was Hindustan Lever that countless years ago
popularized the believed of vending its produce in puny packages. Its sachets
of detergent and shampoo are in outstanding demand in Indian villages.
Britannia alongside its low priced Tiger brand biscuits possesses come to be a
little of the accomplishment report in rural marketing. Rajesh K Aithal of IIM
(L) had completed his scutiny on rural telecom in India .He clarify that Rural
marketplaces are an vital and producing marketplace for most produce and
services encompassing telecom. The characteristics of the marketplace in words
of low and range out populace and manipulated buying manipulation make it a
tough marketplace to capture. The Bottom of the pyramid marketing strategies
and the 4 A’s ideal of Availability, Affordability, Acceptability and Awareness
provide us with a means of developing appropriate strategies to tackle the
marketing issues for marketing telecom services in rural areas. Successful cases
like the Grameen Phone Bangladesh and Smart Communications Inc. in Philippines
also provide us with some guidelines to tackling the issue. As per concern of
my research, it is a detail study of different FMCG products used by rural
consumers. It will provide detail information about consumers’ preferences
towards a good number of FMCG products which is too unique and different from
those above researches.
While surveying I encounter alongside a little problems like
a little people were not keen to answer and insufficient of them who responded
were in hurry hence the alert participation was lacking. Due to that we
confronted difficulties in accumulating information regarding our
questionnaire. One more setback that we face was that people were wavering to
give data concerning their income. Except it, the example size we possess
seized for survey was tiny and it’s a tough task to sketch precise conclusion
or grasp to an precise consequence on the basis of manipulated example size.
Moreover, our investment was manipulated and period was additionally less
to go in depth. Threats to us are that- as people were wavering to give their
income features so there is chance of error considering income.
I am additionally a resident of rural area. I uses my
experiences and perceptions as hypothesis towards to made this project.
understand concerning the present demand of FMCG products in rural area.
ascertain concerning the rural consumers preference towards FMCG products.
Here are pursuing goals of the project:-
As each given in the above chart, rural market displays a
good improvement. In the attendance of a little product categories like, toilet
soap, detergent bar, cleaning dust etc., it is same as in the city level. Rural
marketplace is additionally enhancing in the other produce category.
All India %
Source: HLL investor
Due to the colossal size of the market, penetration level in
most product groups like jams, toothpaste, skin care, hair clean etc. in India
is low. This is extra visible after analogy is completed amid the rural and the
city areas. The average consumption by rural households is far lower than their
city counterparts. Attendance of unsaturated market provides an brilliant
opportunity for the industry contestants in the form of a vastly untapped
market as the income rises.
Low penetration and low each capita consumption:
Rising each capita income, increased literacy and quick
urbanization possess provoked quick development and change in demand patterns.
The rising aspiration levels, rise in paying manipulation possesses managed to
a change in the consumption pattern.
An average Indian spends concerning 40% of his income on
groceries and 8% on confidential care products. A larger part of the
finished paying pie alongside alongside a colossal center (in words
of population) makes India one of the biggest FMCG markets.
With a populace of 1 bn people, India is a large marketplace
for FMCG companies. Concerning 70% of the finished households in India reside
in the rural areas. The finished number of rural households is anticipated to
development from 135 m in 2002 to 153 m in 2010, that represents the biggest
possible market in the world.
Scope of Study-
The discovery of opportunity for FMCG products in the rural
market is a sum finished of disparate analytical survey of different FMCG
products in the rural area. In one sense, we can say that it is determination of
how far market is seized by different FMCG companies.
Definition of the Problem
concerning the different choices of rural consumers
ascertain the rising demand of FMCG products in rural area.
In those dates, the rural market is the one of the best
opportunity for the FMCG sector in the India. It is more wide and less
competitive marketplace for the FMCG. As the income level of the rural
customers rising, the demand of FMCG is rising continuously. The assorted
demand of the discover is given as follows:-
Need of the Study-
In 1970, Nirma was the
early FMCG Company to onset and produced goods according to rural consumers. In
the main 1970s, after Nirma cleaning dust was gave in the low-income
marketplace, Hindustan Lever Manipulated reacted in a way typical of countless
multinational companies. Though, Nirma’s entry changed the finished Indian FMCG
scene .It came to be a outstanding success story and allocated the roadmap for
others to follow. MNC’s like HLL, which were sitting pretty till next, arouse up
to new marketplace realities and noticed the latent rural possible of India.
1983, C K Ranganathan commenced vending shampoos in a sachet alongside an investment
of Rs 15,000 and endangered to seize on the multinationals, Lever and P,
the unquestioned heads in that segment. . He targeted rural and small-town customers who utilized
soaps to wash their hair. He gave the sachet at 90 paise and next decreased it to
50-paise. And that’s after the multinationals sat up and noticed him. Sales
whizzed from 35,000 sachets to 12 lakhs. Initially they seized each sachet, but
afterward three months they restricted to Chic sachets. Now at the present
period, rural marketplace is one of the best opportunity and concentrating
sector for the main FMCG companies in India. Every single and every single firm
is set to invest a huge capital for contest in rural market. According to the Federation
of Indian Chambers of Transactions and Industry, the number of rural households
employing FMCG produce possesses grown from136 million in 2004 to 143 million
in 2007, a clear indication that rural customers are advancing from commodities
to called products. City customers, on supplementary hand, might go sluggish on
FMCG expenses, cheers for inflation spiral, development in gas price and costlier
credit. Evidence suggests that for the early period, the rural market possesses
grown faster than the city marketplace in key product categories in April-May
2008, the latest months for that such information is obtainable, according to market
research firm AC Nielsen.
Background of the study:-
There was a period after the FMCG companies ignores rural
market, they seized no each attention to produced or sell products in rural
marketplace in India. It was the early period of FMCG companies in India. As
each as the period had bypassed, the strategy and marketing style of FMCG firms
had been changed.
Dr. Nisha Bharti
It was a difficult task to gather the data from respondents
by meeting them confidentially so as to become questionnaire filled. There was
a lot of period pressure and from period to period unwillingness of respondents
As the consequence,
there is close competition between the companies. As every single of them
are rising their products, qualities, looks and bestowing larger
services everyday. Our scutiny is established on example results.
The report additionally provides the features concerning the
past of FMCG sector in rural India. There is a plenty of data analysed and
conclusions are given in the analysed paper.On the basis of feedback across
questionnaire and observation method, I find out that the rural customer
possesses changed their strategy towards the produce and starts to buy them on the
basis of their quality.
This undertaking report provides a package of knowledge
concerning demand of disparate FMCG produce in rural areas as well it
additionally provides a detail vision concerning the consumer preference towards
disparate FMCG products.
The dissertation report “Rural
Marketing and a study of factor determining the success of FMCG product” is coordinated below under the
guidelines of Dr.Nisha Bharti (HOD-Agribusiness).
– SWATI YADAV
The enthusiastic and cheerful encouragement of
our dear friends through both the bright and dark phases of my work has been
invaluable to me.
to record the deep sense of gratitude for his valuable guidance, constant
encouragement, helpful and constructive criticism, timely suggestions and
abiding interest in preparation of dissertation report.
It is indeed a
moment of immense gratification for me to express my deepest gratitude to Mrs. Asmita Chitnis, Director of
Symbiosis Institute of International Business.
The project on “Rural Marketing and a study of factor
determining the success of FMCG product” would not
have seen the light of the day without the accompanying individual and their
extremely valuable support and participation.
1. ACKNOWLEDGEMENT. 3
2. Abstract. 4
3. Introduction. 5
4. Background of the study:-. 5
5. Need of the Study-. 5
5.1. Definition of the Problem.. 6
6. Scope of Study-. 6
6.1. Changing lifestyles: 7
6.2. Low penetration and low each capita consumption: 7
7. Objectives-. 8
8. Hypothesis: 8
8.1. Limitations-. 8
9. Literature Review-. 8
10. RESEARCH METHODOLOGY. 9
10.1. SAMPLE DESIGN.. 9
10.2. Data Collection Method-. 9
11. Research Instruments-. 9
11.1. Questionnaire Design-. 9
12. Data Analysis-. 10
12.1. Data Analysis for Toothpaste in Rural
12.2. Data Analysis for Preference for soap in
Rural Market-. 11
12.3. CONCLUSION:-. 11
13. DATA ANALYSIS FOR PREFERENCE FOR SHAMPOO IN
RURAL MARKET-. 11
13.1. Preference of shampoo in sachets:-. 13
13.2. CONCLUSION:-. 13
14. DATA ANALYSIS FOR PREFERENCE FOR DETERGENTS
IN RURAL MARKET-. 13
14.1. CONCLUSION:-. 14
15. DATA ANALYSIS FOR PREFERENCE FOR DETERGENTS
IN RURAL MARKET-. 15
16. DATA ANALYSIS FOR PREFERENCE FOR HAIR-OIL IN
RURAL MARKET-. 16
16.1. CONCLUSION-. 16
17. SUGGESTIONS-. 16
18. APPENDIX. 17
Symbiosis Institute of International Business, Pune
Dr. Nisha Bharti
Rural Marketing and a
study of factor determining the success of FMCG product.