THANK-YOU 18. APPENDIX (*4A= Availability, Affordability, Acceptability,Awareness)The rural marketplace is extremely colossal in difference tothe urban marketplace in addition to it is extra challenging market. The consumerwants those produce that are long permanent, good, easy to use and cheaper. Theincome level of rural customers is not as high as the income level of citycustomers that’s why they want low worth goods. It is one of the reason thatthe vend of sachet is much larger in the rural span in all segments.
It isvital for all the FMCG main companies to furnish those produce that are facileto obtainable and affordable to the consumers. It is right that the profitmargin is very low in the FMCG produce, but at the like period the marketplacesize is much colossal in the rural area. The firms can cut their prices by cuttingthe prices on the packaging because the rural consumers don’t demand appealingpackaging.
We Will Write a Custom Essay Specifically
For You For Only $13.90/page!
Request of 4A* is additionally a major task for the main firmsin this area.17. SUGGESTIONS-As I possesses analyzed the assorted data established onquestionnaire, a fact has come into light that HUL’s produce are the mostrecognized and accepted Brand in context of residence FMCG produce in ruralmarketplace pursued by DABUR, ITC and P. Because of huge product line,cheaper price, brand loyalty, good publicity and advertisement, the ruralcustomers usually prefers the produce of HUL in all segments. Except it, peoplefirstly favor for good quality and moderately low benefits products.16.
1. CONCLUSION-Rural consumers prefers mostly herbal/cool oils, e.g.-Navratna, himtaj, Himgange,etc. 31% of the rural consumers prefers herbaloils 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’sParachute which is prefers by 21% of rural consumers. 18% consumers preferBajaj-Almond and 5% prefers some other hair oil brands.
16. DATA ANALYSIS FORPREFERENCE FOR HAIR-OIL IN RURAL MARKET-The HUL’s Fair & Lovely is most accepted brand in therural marketplace most of the customers especially female consumers uses thisbrand. Approx.
65% of rural customers uses Fair & Lovely as their besttrusted brand. Subsequent locale is additionally inhabited by HUL’s product(Ponds) that is favored by 23% of consumers, 10% customers prefers Viccoand 2% uses a little other brands.As each fairness cream is concern, there is not extra brandsare in the competition. Merely insufficient brands of HUL and e-mami arreststhe market. A brief description is given in the following table.15.
DATA ANALYSIS FORPREFERENCE FOR DETERGENTS IN RURAL MARKET-As given in the above table, lump sum the half of the detergentmarketplace is obscured by HUL and P&G products. Nirma which was theinitiator of introduction of detergent in rural market is presently out of themarket. This condition displays that the rural customers are additionallydesire to quality produce, merely worth is a factor in front of them.14.1.
CONCLUSION:-· 5%customers prefer supplementary innate detergents for their confidentialuse.· Surfexcel of HUL is subsequent managing brand in sachet group alongside 35%customer preference which is prefers merely 6% in colossal examples due to itsprice.· 3% customers prefer P&G’s Current in medium or colossal size example but itis managing brand in sachet group alongside 43%.· 34%customers prefer ghari detergent in medium or colossal size example, but not insachet.· 42%customers prefers HUL’s wheel in medium or colossal example, but customersnot prefer it in sachet.As each given in above table, the consumer’s preferencetowards detergents is as follows:- Detergent is one more extra preference able productfor rural consumers. Approx. 87.
4% penetration level of detergent is goneto rural consumers. The preference of rural consumers towards detergents isgiven in pursuing table-14. DATA ANALYSIS FORPREFERENCE FOR DETERGENTS IN RURAL MARKET- This Analysis displays that a large bulk of rural consumersprefers HUL’s clinic plus and Sun-silk in elevated and medium size sample. Buton the supplementary hand, in sachet example there is disparate story. Extrathan 50% of the rural customers prefers the brands of P&G (Heads &Shoulders and Pantene).13.2.
CONCLUSION:- · 10%includes non-shampoo users or users of some Other brands,· 12% prefers clinic plus.· 18%prefers sunsilk.· 28%goes across Pantene.· 32%of customers uses Heads & Shoulders.
13.1. Preference ofshampoo in sachets:-· 8%customers prefer supplementary shampoos or non-shampoo users.
· 10%customers go across Calvin Care’s Chick.· 30%customers prefer sunsilk.· 42%prefers clinic plus.The customer’s preferences towards shampoo are as follows:- As each concern of shampoo, finished 31.9% shampoo uses inrural market. It shoes a good number of consumer’s preference towardsshampoo in rural area. From the last insufficient years, the demand of shampoosashes 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 FORPREFERENCE FOR SHAMPOO IN RURAL MARKET-In this scutiny, I found that a large bulk of ruralcustomers prefers Lux as their extra devoted brand.12.3. CONCLUSION:-As each given in the above table, the 90% of the soapmarketplace is covered by the produce of Hindustan Uniliver.50% of ruralcustomers prefers HUL’s Lux, whereas as 30% goes towards HUL’s Lifebuoy thirdlocale is additionally acquired by a HUL product where 15% of the marketplaceseized by Rexona.
8% of rural consumers prefers a little supplementary soapbrands. In the survey of preference of my target customers towardssoap, I had discovered the disparate preference and disparate choice of theconsumers. On the basis of their choice, I possesses become the pursuing datagiven in pursuing table:-12.2. Data Analysisfor Preference for soap in Rural Market-As each analyses of above pie chart, we possesses discoveredthat Hindustan Uniliver’s Pepsodent leads the marketplace alongside 35% rural marketshare. 30% of rural customers prefer Colgate as their favorite toothpastebrand, after once more Hindustan Uniliver’s close up occupies third localealongside 15% marketplace share.10% of the rural consumers prefers Dabur’sbabool toothpaste and 10% customer’s uses supplementary toothpaste brands.
TABLE-1:- customerspreference towards disparate toothpastes In the early years, the rural customers favored toothpowders,datoons etc. but from the last decade, the preference of rural customerstowards toothpaste possesses been changed. A huge number of toothpastes ofdisparate firms are vended in rural market. Colgate, Pepsodent are the mostaccepted toothpaste brands in rural market.
The rural customer’s preferencetowards the disparate toothpaste brands are given in pursuing pie chart.12.1.
Data Analysisfor Toothpaste in Rural Marketing-After a good deal of customer survey and marketing scutiny, Ipossesses amass a good collection of data. The analyses of those data’sare given as follows:-12. Data Analysis-As the questionnaire is self-administrated one, the survey isretained easy and user friendly. Words utilized in questionnaire areeffortlessly understandable to all respondent. Additionally technical jargonsare evaded to safeguard that there is no confusion for respondents.11.1. QuestionnaireDesign-11.
ResearchInstruments-Secondary data was collected throughmagazines, research papers, internet etc.Secondary Data-Primary data was amassed across a self-administratedquestionnaire. This questionnaire aims to gather data connected to assortedCalled Electronic Home Appliances.Primary Data-10.2. Data CollectionMethod-· SAMPLINGPROCEDURE: -Random Sampling· SAMPLEREGION : -Pune· SAMPLE SIZE: -50Irrespective of their education level.· SAMPLEUNIT: -All working people are included both the gendersi.
e.males and females10.1. SAMPLEDESIGN10. RESEARCH METHODOLOGY Rural marketplace is one of thebest opportunities for the FMCG sector. In a little sense we can say that ruralmarketplace is upcoming of FMCG.
As each scrutiny of Purba Basu, (faculty ofICFAI company school), the lifestyle of rural customers is changing. RuralIndian marketplace and the marketing strategy possess come to be the latestmarketing buzzword for most of the FMCG majors. She added the strategies ofdisparate FMCG firms for seizing rural marketplace like Titan’s Sonata watches,Coco Cola’s 200ml bottle, disparate strategies of HUL and Marico etc. Sheseizes into thought the discover of Nationwide Council for Requested CommercialScutiny (NCAER). According to the NCAER protrusions, the number of middle andhigh-income households in rural area. India is anticipated to produce from 80million to 111 million by 2007. In city India, the alike is anticipated toproduce from 46 million to 59 million. Thus, the definite size of rural Indiais anticipated to be double that of city India.
According to Pradeep Tognatta,(former vice head of LG) The commercial development in India’s agrarian sectorin last year was above 7%, contrasted alongside 3% in the manufacturing sector.This implies a huge marketplace potentiality for the marketer to encounter uprising demand. Factors such as village psyche, forceful allocation web andmarketplace awareness are insufficient prerequisites for making a dent in therural markets. The ideal is of the stolid Anglo-Dutch conglomerate UnileverGroup, that possesses enjoyed a century-long attendance in India across itssubsidiary Hindustan Lever Ltd. It was Hindustan Lever that countless years agopopularized the believed of vending its produce in puny packages. Its sachetsof detergent and shampoo are in outstanding demand in Indian villages.Britannia alongside its low priced Tiger brand biscuits possesses come to be alittle 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 Ruralmarketplaces are an vital and producing marketplace for most produce andservices encompassing telecom. The characteristics of the marketplace in wordsof low and range out populace and manipulated buying manipulation make it atough marketplace to capture. The Bottom of the pyramid marketing strategiesand the 4 A’s ideal of Availability, Affordability, Acceptability and Awarenessprovide us with a means of developing appropriate strategies to tackle themarketing issues for marketing telecom services in rural areas. Successful caseslike the Grameen Phone Bangladesh and Smart Communications Inc. in Philippinesalso provide us with some guidelines to tackling the issue. As per concern ofmy research, it is a detail study of different FMCG products used by ruralconsumers. It will provide detail information about consumers’ preferencestowards a good number of FMCG products which is too unique and different fromthose above researches.
9. Literature Review-While surveying I encounter alongside a little problems likea little people were not keen to answer and insufficient of them who respondedwere in hurry hence the alert participation was lacking. Due to that weconfronted difficulties in accumulating information regarding ourquestionnaire.
One more setback that we face was that people were wavering togive data concerning their income. Except it, the example size we possessseized for survey was tiny and it’s a tough task to sketch precise conclusionor grasp to an precise consequence on the basis of manipulated example size.Moreover, our investment was manipulated and period was additionally lessto go in depth. Threats to us are that- as people were wavering to give theirincome features so there is chance of error considering income.8.1. Limitations-I am additionally a resident of rural area.
I uses myexperiences and perceptions as hypothesis towards to made this project.8. Hypothesis:- · Tounderstand concerning the present demand of FMCG products in rural area.· Toascertain concerning the rural consumers preference towards FMCG products.Here are pursuing goals of the project:-7. Objectives- As each given in the above chart, rural market displays agood improvement. In the attendance of a little product categories like, toiletsoap, detergent bar, cleaning dust etc.
, it is same as in the city level. Ruralmarketplace is additionally enhancing in the other produce category. Category All India % Urban% Rural% Deodorants 2.
1 5.5 0.6 Toothpaste 48.6 74.9 37.6 Skin Cream 22 31.5 17.
8 Shampoo 38 52.1 31.9 Utensil Cleaner 28 59.9 14.6 Instant Coffee 6.6 15.5 2.
8 Washing Powder 86.1 90.7 84.
1 Detergent Bar 88.6 91.4 87.4 Toilet soap 91.
5 97.4 88.9 Source: HLL investor meet 2016 Due to the colossal size of the market, penetration level inmost product groups like jams, toothpaste, skin care, hair clean etc.
in Indiais low. This is extra visible after analogy is completed amid the rural and thecity areas. The average consumption by rural households is far lower than theircity counterparts. Attendance of unsaturated market provides an brilliantopportunity for the industry contestants in the form of a vastly untappedmarket as the income rises.6.
2. Low penetration and low each capita consumption:Rising each capita income, increased literacy and quickurbanization possess provoked quick development and change in demand patterns.The rising aspiration levels, rise in paying manipulation possesses managed toa change in the consumption pattern.6.1. Changing lifestyles: An average Indian spends concerning 40% of his income ongroceries and 8% on confidential care products. A larger part of thefinished paying pie alongside alongside a colossal center (in wordsof population) makes India one of the biggest FMCG markets.With a populace of 1 bn people, India is a large marketplacefor FMCG companies.
Concerning 70% of the finished households in India residein the rural areas. The finished number of rural households is anticipated todevelopment from 135 m in 2002 to 153 m in 2010, that represents the biggestpossible market in the world. 6. Scope of Study-The discovery of opportunity for FMCG products in the ruralmarket is a sum finished of disparate analytical survey of different FMCGproducts in the rural area. In one sense, we can say that it is determination ofhow far market is seized by different FMCG companies.5.1. Definition of the Problem· Knowconcerning the different choices of rural consumers· Toascertain the rising demand of FMCG products in rural area.
In those dates, the rural market is the one of the bestopportunity for the FMCG sector in the India. It is more wide and lesscompetitive marketplace for the FMCG. As the income level of the ruralcustomers rising, the demand of FMCG is rising continuously. The assorteddemand of the discover is given as follows:-5. Need of the Study- In 1970, Nirma was theearly FMCG Company to onset and produced goods according to rural consumers. Inthe main 1970s, after Nirma cleaning dust was gave in the low-incomemarketplace, Hindustan Lever Manipulated reacted in a way typical of countlessmultinational companies. Though, Nirma’s entry changed the finished Indian FMCGscene .It came to be a outstanding success story and allocated the roadmap forothers to follow.
MNC’s like HLL, which were sitting pretty till next, arouse upto new marketplace realities and noticed the latent rural possible of India.1983, C K Ranganathan commenced vending shampoos in a sachet alongside an investmentof 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 utilizedsoaps to wash their hair. He gave the sachet at 90 paise and next decreased it to50-paise. And that’s after the multinationals sat up and noticed him.
Saleswhizzed from 35,000 sachets to 12 lakhs. Initially they seized each sachet, butafterward three months they restricted to Chic sachets. Now at the presentperiod, rural marketplace is one of the best opportunity and concentratingsector for the main FMCG companies in India.
Every single and every single firmis set to invest a huge capital for contest in rural market. According to the Federationof Indian Chambers of Transactions and Industry, the number of rural householdsemploying FMCG produce possesses grown from136 million in 2004 to 143 millionin 2007, a clear indication that rural customers are advancing from commoditiesto called products. City customers, on supplementary hand, might go sluggish onFMCG expenses, cheers for inflation spiral, development in gas price and costliercredit. Evidence suggests that for the early period, the rural market possessesgrown faster than the city marketplace in key product categories in April-May2008, the latest months for that such information is obtainable, according to marketresearch firm AC Nielsen.4. Background of the study:-There was a period after the FMCG companies ignores ruralmarket, they seized no each attention to produced or sell products in ruralmarketplace in India. It was the early period of FMCG companies in India. Aseach as the period had bypassed, the strategy and marketing style of FMCG firmshad been changed.
3. Introduction Swati Yadav Dr. Nisha Bharti It was a difficult task to gather the data from respondentsby meeting them confidentially so as to become questionnaire filled.
There wasa lot of period pressure and from period to period unwillingness of respondentsto respond. As the consequence,there is close competition between the companies. As every single of themare rising their products, qualities, looks and bestowing largerservices everyday. Our scutiny is established on example results. The report additionally provides the features concerning thepast of FMCG sector in rural India.
There is a plenty of data analysed andconclusions are given in the analysed paper.On the basis of feedback acrossquestionnaire and observation method, I find out that the rural customerpossesses changed their strategy towards the produce and starts to buy them on thebasis of their quality.This undertaking report provides a package of knowledgeconcerning demand of disparate FMCG produce in rural areas as well itadditionally provides a detail vision concerning the consumer preference towardsdisparate FMCG products.The dissertation report “RuralMarketing and a study of factor determining the success of FMCG product” is coordinated below under theguidelines of Dr.Nisha Bharti (HOD-Agribusiness).2. Abstract – SWATI YADAV The enthusiastic and cheerful encouragement ofour dear friends through both the bright and dark phases of my work has beeninvaluable to me.
Dr. NishaBharti (Mentor)to record the deep sense of gratitude for his valuable guidance, constantencouragement, helpful and constructive criticism, timely suggestions andabiding interest in preparation of dissertation report. It is indeed amoment of immense gratification for me to express my deepest gratitude to Mrs. Asmita Chitnis, Director ofSymbiosis Institute of International Business.
The project on “Rural Marketing and a study of factordetermining the success of FMCG product” would nothave seen the light of the day without the accompanying individual and theirextremely valuable support and participation.1. ACKNOWLEDGEMENT Contents 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 Marketing-. 10 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 BhartiSubmittedTo MBA-AB(2016-18)PRN-16020242047SwatiYadavSubmittedBy Rural Marketing and astudy of factor determining the success of FMCG product. OnDissertationReport