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“A STUDY OF MARKETING STRATEGIES ADOPTED

FOR MARKETING OF CONSUMER PRODUCTS IN

RURAL AREA OF PUNE DISTRICT WITH SPECIAL

REFERENCE TO HINDUSTAN UNILEVER LTD.”

A THESIS SUBMITTED TO

BHARATI VIDYAPEETH UNIVERSITY, PUNE (INDIA) UNDER THE FACULTY OF ARTS, SOCIAL SCIENCES AND COMMERCE

FOR THE AWARD OF DEGREE OF

DOCTOR OF PHILOSOPHY IN MARKETING

BY

HOSSEIN ESMAEIL KHORSAND

UNDER THE GUIDANCE OF

DR. SUSHAMA KESKAR

RESEARCH CENTRE

DEPARTMENT OF COMMERCE,

BHARATI VIDYAPEETH UNIVERISITY

YASHWANTRAO MOHITE COLLEGE OF ARTS, SCIENCE

AND COMMERCE, PUNE – 411038

SEPTEMBER 2017

This thesis is dedicated to my

beloved father

Late Haj Esmaeil Khorsand

who has been source of

inspiration in my life

CERTIFICATE

This is to certify that the thesis entitled, “A Study of Marketing

Strategies Adopted for Marketing of Consumer Products in Rural

Area of Pune District with special reference to Hindustan Unilever

Ltd.” which is being submitted by Mr. Hossein Esmaeil Khorsand in

partial fulfillment for the award of the degree of Ph. D. in Faculty of

Commerce under Marketing to Bharati Vidyapeeth University, Pune

(India) is a record of bonafide work carried out by him at our institution.

Date: Prin. Dr. K. D. Jadhav

Place: Pune

CERTIFICATE

This is to certify that the thesis entitled, “A Study of Marketing

Strategies Adopted for Marketing of Consumer Products in Rural

Area of Pune District with special reference to Hindustan Unilever

Ltd.” which is being submitted herewith for the award of the degree of

Doctor of Philosophy in Commerce of Bharati Vidyapeeth University,

Pune is the result of the original research work completed and carried out

by Mr. Hossein Esmaeil Khorsand under my supervision and guidance.

This work has not previously formed, the basis either in full or part, for

the award of this or any other degree, diploma or other similar title of this

or any other educational institution and the thesis, as a whole, in the

approach to the subject, its organization, treatment of the material and its

critical evolution of is independent work on the part of the candidate.

Date Dr. Sushama Keskar

Research Guide

Place: Pune

DECLARATION

I declare that this thesis, entitled “A Study of Marketing Strategies

Adopted for Marketing of Consumer Products in Rural Area of Pune

District with special reference to Hindustan Unilever Ltd.” submitted

to Bharati Vidyapeeth University, Pune (India) in partial fulfillment of

the requirements for the award of the degree of Doctor of Philosophy in

Commerce is a record of original research work done by me under the

supervision and guidance of Dr. Sushama Keskar and that it has not

formed the basis for the award of any Degree or any other similar titles of

this or any other educational institution. I, further, declare that whatever

material has been borrowed from other sources and incorporated in the

thesis has been duly acknowledged and I could be held responsible and

accountable for plagiarism, if any, detected later on.

Date: Hossein Esmaeil Khorsand

Research Scholar

Place: Pune

ACKNOWLEDGEMENT

First and foremost, I am thankful to God – the almighty for getting this

research work completed through me.

I am highly indebted to my research guide Dr. Sushama Keskar for accepting

me as her student. I would like to thank her for encouraging my research and for

grooming me as a researcher. Her guidance and advice from time to time are very

much valuable.

I would also express my sincere gratitude to Hon. Dr. Patangrao Kadam,

Chancellor of Bharati Vidyapeeth University, Hon. Dr. Shivajirao Kadam – Pro

Chancellor, Bharati Vidyapeeth University, and Hon. Dr. Manikrao Salunkhe – Vice

Chancellor of Bharati Vidyapeeth University for providing me encouragement and

the opportunity of accomplishing this research. I thank Hon. Dr. K. D. Jadhav,

Principal, Yashwantrao Mohite College, Pune for his support and encouragement.

Dr. Shivaji Borhade,Dr. Rajaram Zirange and all the members of the

Department of Commerce of Yashwantrao Mohite College deserve special mention

and sincere thanks for their support in completing this research.

I am thankful to the respondents from the rural area of Pune district for

providing me the primary data and the local executives of Hindustan Unilever Ltd. for

providing all the information needed for this research. I am also thankful to the

librarian of Yashwantrao Mohite College, Pune for providing me reference books.

I am thankful to Dr. Keerti Mahajan the Director of International Student

Office of Bharati Vidyapeeth University and Dr. Suresh Suryawanshi from Ph. D.

Section of Bharati Vidyapeeth University Pune.

I am grateful to Mr. Sameer Rajopadhye of Sameer Copiers for neatly

attending to typing and presentation of this research professionally.

Words cannot express how grateful I am to all members of my family,

specially my brother in law Mr. Ali Sadeghi Kiadehi whose encouragement for

completion of this research was exemplary. Only because of their blessings and well

wishes I could complete this research.

Pune

Date: Hossein Esmaeil Khorsand

TABLE OF CONTENTS

Chapter

No.

Details Page Nos.

I INTRODUCTION 1 - 32

1.1 Introduction 1

1.2 India's Demographic Scenario 3

1.3 Historical Perspective of Marketing 5

1.4 New Age Rural Consumer 6

1.5 Growth of the Middle Class 7

1.6 Changed Rural Scenario 8

1.7 Conceptual Framework 10

1.8 Rural Consumer Behaviour 13

1.9 Rural Marketing Mix - Challenges 14

1.10 Promising Rural Consumer 16

1.11 Rural Market Segmentation 17

1.12 Over View of Indian Rural Market 17

1.13 Product Branding a New Dimension in Rural Area 25

1.14 Packaging in Rural Markets 26

1.15 Pricing Strategies 27

1.16 Distribution Chanel in the Rural Area 28

1.17 Impact of Globalization on FMCG Marketing in

Rural Area

28

1.18 Future Prospects 31

1.19 Summary 32

II RESEARCH METHODOLOGY 33 – 49

2.1 Introduction 33

2.2 Statement of Problem 34

2.3 Significance of Study 34

2.4 Objectives of the Study 35

2.5 Research Hypotheses 37

2.6 Research Methodology 39

2.7 Scope of the Study 47

Chapter

No.

Details Page Nos.

2.8 Limitations of the Study 47

2.9 Chapter Scheme 48

III REVIEW OF LITERATURE 50 - 94

3.1 Introduction 50

3.2 Previous Research 50

3.3 Books 55

3.4 Journals & Periodicals 65

3.5 News Paper Articles 87

3.6 Website Surfing 91

3.7 Knowledge Gap 93

3.8 Knowledge Gained 93

3.9 Chapter Summary 93

IV PROFILE OF THE STUDY PUNE DISTRICT AND

HINDUSTAN UNILEVER LTD.

95 - 112

4.1 Profile of Pune District 95

4.2 Historical Background 96

4.3 Geographical Location 96

4.4 Demographic Scenario 97

4.5 Agriculture Sector 100

4.6 Administrative Set Up 101

4.7 Infrastructural Development 103

4.8 Industrial Scenario 104

4.9 Profile of Hindustan Uniliver Ltd. 105

4.10 Company's Performance during the Study Period 108

4.11 Operational Highlights 2014-15 109

4.12 Company's Marketing Strategies 110

4.13 Consumers Insights for Innovation 110

4.14 Technology at Work 110

4.15 Sales 111

4.16 Centralized Logistic Expertise 111

Chapter

No.

Details Page Nos.

4.17 Generating Consumer LED Growth 111

4.18 Summary 112

V DATA ANALYSIS AND INTERPRETATION 113 - 219

5.1 Introduction 113

5.2 Primary Data Presentation 113

5.3 Data from the Rural Shop Keepers 177

5.4 Hypotheses Testing 204

VI OBSERVATIONS, RECOMMENDATIONS AND

CONCLUSION

220 - 239

6.1 Preamble 220

6.2 Observations 222

6.3 Recommendations 231

6.3.1 Recommendations to Hindustan Unilever Ltd 232

6.3.2 Recommendations to the Managers 233

6.3.3 Recommendations to the Government 235

6.4 Attainment of the Objectives 236

6.5 Scope for Further Research 237

6.6 Conclusion 238

BIBLIOGRAPHY 240 - 250

ANNEXURES 251 - 270

LIST OF TABLES

Table

No.

Details Page

No.

1.1 India's GDP growth rate during the period 2010-11 to 2014-15 2

1.2 India's Population Growth since 1951 3

1.3 Sex Ratio and Share of Female Population as per 2011 census 4

1.4 Rural / Urban Differential in Growth Population - India 4

1.5 Trend in Urbanization - India 5

1.6 India's FMCG Market size 22

1.7 On the basis of the performance the Top 10 Companies in FMCG

Sector

22

2.1 Identified Study Area 40

2.2 Village wise Number of Identified Respondents 41

2.3 Village wise Identified Respondents 42

2.4 Total Land Holding and Dry and Irrigated Land of the Identified

Talukas

43

4.1 Administrative Sub-Division wise Tahsils of Pune District with

Number of Villages

97

4.2 Statistical Profile of Pune District 98

4.3 Land Utilization 100

4.4 Irrigation Coverage (Ha) 100

4.5 Major Crops and Cash Crops are Cultivated in Pune District 101

4.6 Details of population of each Taluka of the Pune District 102

4.7 Classification of the Taluka sub-division wise 102

4.8 Position on each year 108

5.1 Gender wise Classification of Respondents 114

5.2 Earning Status wise Composition of the Respondents 115

5.3 Education wise distribution of the Respondents 116

5.4 Category wise Composition of the Respondents Families 117

5.5 Size wise Composition of the Respondents Families 118

5.6 Occupation wise Classification of the Respondent Families 119

5.7 Family Income wise Classification of the Respondent Families 120

5.8 Source of Procurement of the Requirements 122

Table

No.

Details Page

No.

5.9 Sources through which the knowledge of HUL products were

available

124

5.10 Availability of HUL Products at the Rural Area 125

LIST OF FIGURES

Figure

No.

Details Page

No.

1.1 Movement of FMCG Rural Market and the Potential offered by it 18

1.2 All India FMCG - Value Growth in terms of Percentage 23

1.3 Sales per Point of Distribution (Consumer Pull Growth) 23

1.4 Changing Consumption Pattern 25

4.1 Map of Pune District 95

4.2 Companies Gross Sales from 2005 to 2014-15 109

5.1 Gender wise Classification of Respondents 114

5.2 Earning Status wise Composition of the Respondents 115

5.3 Education wise distribution of the Respondents 116

5.4 Category wise Composition of the Respondents Families 117

5.5 Size wise Composition of the Respondents Families 118

5.6 Occupation wise Classification of the Respondent Families 119

5.7 Family Income wise Classification of the Respondent Families 120

5.8 Source of Procurement of the Requirements 122

5.9 Respondents views on - Since last ten years or so we get standard

company's products in our village

127

5.10 Respondents views on - We get quality products since couple of

years

128

5.11 Respondents views on - Before globalization we were getting local

made washing powder and such other goods

129

5.12 Respondents views on - Now we see standard company's delivery

vans visit our village

131

5.13 Respondents views on - Due to advertisements on the television

sets we get to know the latest products and their uses

132

5.14 Respondents views on - Due to development of all weather roads

now number of vendors put up their stalls in the weekly market in

the nearby town

133

5.15 Respondents views on - The colourful advertisements depicting the

uses of the new products help us to understand the uses of it

134

Figure

No.

Details Page

No.

5.16 Respondents views on - Since the last decade our family budget for

toiletries has sizably increased

136

5.17 Respondents views on - Now we need not go to the nearby town for

getting branded goods of daily use

137

5.18 Respondents views on - I really appreciate the packaging in sachets

as we can use it instantly and it is cheaper too

138

5.19 Respondents views on - My son studying in college insists on

specific company's products

140

5.20 Respondents views on - I am always guided by the quality, utility

and price consideration while buying my day to day requirements

141

5.21 Respondents views on - I go in for new products only on the

recommendation of my relative in the nearby city who first uses it

and recommends it to me

142

5.22 Respondents views on - I prefer small packages because my purse

does not permit me to buy in bulk

144

5.23 Respondents views on - I always prefer to buy products from

Hindustan Unilever Ltd. as those are of high quality

145

5.24 Respondents views on - Hindustan Unilever Ltd. has introduced

sachets and small packages of number of products. It helps us in

buying it in small quantity

146

5.25 Respondents views on - The packaged Red Label Tea from

Hindustan Unilever Ltd. has changed our Tea Taste

147

5.26 Respondents views on - Now our clothes are as white as the city

dwellers as we too get Surf in our village

149

5.27 Respondents views on - In good old days for washing we used to

purchase quality products only at the time of Diwali, but now we

regularly use standard products only

150

5.28 Respondents views on - The representative of HUL has visited my

house and enquired about the quality and availability of products

151

5.29 Respondents views on - As a result of availability of quality goods

or daily consumption, we need not go to nearby town

153

Figure

No.

Details Page

No.

5.30 Respondents views on - A bank branch has been opened up in our

village and it has started financing educated youth from the village

for their self employment activities. This has increased the business

turnover in the village

154

5.31 Respondents views on - The number of vendors of goods of daily

consumption in the weekly market at our centre has substantially

increased

155

5.32 Respondents views on - Now we get shampoo / face powders /

toilet soaps / packaged tea etc. of branded companies locally

156

5.33 Respondents views on - Because of my daughter is now studying in

college, she needs use of cosmetics of good quality

158

5.34 Respondents views on - Family members watch the newly

introduced products on TV and insist on to buy those

159

5.35 Respondents views on - My buying decisions are based on the

availability of the variety of the products

160

5.36 Respondents views on - Unless and until I am satisfied about the

product expectations I do not buy it

162

5.37 Respondents views on - I enjoy credit facility from the vendor and

therefore I prefer to buy only those products which are available in

that shop only

163

5.38 Respondents views on - Free gifts / vouchers prompt me to buy that

product

164

5.39 Respondents views on - Due to use of mobile phones our retail

shop keeper is in a position to make the goods available at a short

notice

166

5.40 Respondents views on - Now we have a bank branch in our village

which has increased the businesses in our village

167

5.41 Respondents views on - I was surprised when my son ordered for

Tajmahal Tea on his computer and the same was delivered within 3

days by courier

168

Figure

No.

Details Page

No.

5.42 Respondents views on - Because of the increase in the irrigated

area of our village, our income has also increased

169

5.43 Respondents views on - Now we are taking cash crops like

sugarcane, onion, vegetables in our village

170

5.44 Respondents views on - Now we have a high school in our village

which facilitates our daughters to go to high school

172

5.45 Respondents views on - A college has been opened in the nearby

town which is just adjacent to our village, which facilitates our

boys and girls too to take higher education

173

5.46 Respondents views on - During the last decade our village has been

electrified and now we have colour TV set in almost every house

174

5.47 Respondents views on - Frequent power failure is faced by us

which needs to be resolved

175

5.48 Respondents views on - During the last decade number of ST buses

connecting several cities has increased

176

5.49 Respondents views on - Since the last two decades there is a

demand for branded products in the rural area

181

5.50 Respondents views on - Because of the irrigation development the

rural populations purchasing power has increased

182

5.51 Respondents views on - Before 20 years we were selling local

made washing powder and such other goods in our rural markets

183

5.52 Respondents views on - There is a regular and uninterrupted supply

of Hindustan Unilever's Products

184

5.53 Respondents views on - Due to advertisements on the television

sets we get to know the latest products and their uses

185

5.54 Respondents views on - Due to development of all weather roads

now many vendors put up their stalls in the weekly market in the

nearby town

187

5.55 Respondents views on - The colorful advertisements depicting the

uses of the new products, help the consumers to understand the uses

those products

188

Figure

No.

Details Page

No.

5.56 Respondents views on - HUL products advertisement is in local

language and it is catchy

189

5.57 Respondents views on - Since the last two decade rural

population’s budget for bathing soaps, washing soaps, washing

powders and shampoos have sizably increased

190

5.58 Respondents views on - Now the traders need not go to the nearby

town for getting branded goods of daily use

191

5.59 Respondents views on - Rural people prefer to purchase sachet

packets as they find it more convenient

193

5.60 Respondents views on - Sachet packing is preferred by the

consumers as it is cheaper

194

5.61 Respondents views on - Now obtaining loan from the bank in the

vicinity is hassle free

195

5.62 Respondents views on - Hindustan Unilever helps the traders in

promoting their products in their market area

196

5.63 Respondents views on - Hindustan Unilever participates in the

village fair by putting up their stall

198

5.64 Respondents views on - HUL’s bathing soaps, washing soaps,

washing powders and shampoo products are fast moving

199

5.65 Respondents views on - HUL offers attractive festival discounts to

the traders

200

5.66 Respondents views on - Consumers prefer HUL products because

HUL is the oldest Multinational company in India and has earned a

good reputation in the market

201

5.67 Respondents views on - HUL products’ quality is very good and

hence consumers prefer them

202

5.68 Respondents views on - Company’s name satisfies the rural

consumers who think that it is an Indian company

203

LIST OF ABBREVIATIONS USED

ATM Any Time Money

BOP Bottom of Pyramid

bps Basic point

FDI Foreign Direct Investment

FMCG Fast Moving Consumer Goods

GCA Gross Cropped Area

GDP Gross Domestic Product

GST Goods and Services Tax

HUL Hindustan Unilever Ltd.

IIT Indian Institute of Technology

IT Information Technology

ITC India Tobacco Company

MNC Multi National Corporation

MNRE Ministry of New and Renewable Energy

MNREGA Mahtma Gandhi national Rural Employment Guarantee Act

NABARD National Bank for Agriculture and Rural Development

NCAER National Council for Applied Economic Research

NIA National Irrigation Administration

NSA Net Sown Area

PMKSY Pradhan Mantri Krishi Sinchaee Yojana

R & D Research & Development

RAMIAI Rural Marketing Association of India

SGSY Swarnajayanti Gram Swarozgar Yojana

UEF United Economic Forum (UEF),

US United States

WTO World Trade Organization

1

CHAPTER – I

INTRODUCTION

1.1 INTRODUCTION

Today the Indian economy is poised for achieving higher growth rate as we

have healthy monsoon all over the country. According to the Central Finance

Minister‟s statement India is set for achieving 7.8 GDP growth rate by this year. This

is despite the sluggish markets all over the world. During the last year (2015) there

was GDP growth at 7.5 per cent which was the highest during the past five years. The

Rajya Sabha (Upper House) has on the 3rd

August 2016 passed the Goods and

Services Tax (GST) Bill and it is now certain that by the ensuing financial year the

long awaited TAX reform in the form of introduction of GST which is said to be the

most significant reform since 1991 will be implemented. This bill will streamline the

tax system avoiding double taxation as at present and will reduce the business costs. It

will widen the tax base. The Central Govt. has taken the necessary steps to the effect

that this GST is implementing in right earnest.

Emergence of Fast Moving Consumer Goods

The fast moving consumer goods (FMCG) industry has been shaped over the

past five decades. This industry is the foundation of the Indian economy. It

encompasses every aspect of human life. This FMCG market in India is fragmented.

Almost 50 per cent of the market opts for non branded homemade products. The

remaining is being served by the branded products. Gradually the rural consumer is

changing his buying behavior from non-branded to branded goods. A research study

conducted by National Council for Applied Economic Research (NCAER) the

number of middle class families in rural and urban areas almost equal. Hindustan

Unilever Ltd. almost exclusively depends on its own organized media. These events

are organized by their stockiest themselves.

Over the past few years there is a continuous decline in the share of

Agriculture in the GDP. This is mainly due to the fact that our agriculture is mainly

dependent on the vagaries of the monsoon and there were scanty rainfall in most part

2

of India affecting the agricultural crops. So also because of following traditional

methods of cultivation our productivity of nearly all the crops, compared to the

developed countries is less. Use of modern cultivation practices, use of fertilizers,

increasing irrigation support, farm mechanization is now being resorted to which will

improve the agriculture production in times to come. The govt. is all set for

motivating the agriculturists to achieve the productivity increase and providing

various incentives for adopting scientific and modern cultivation practices.

As against agriculture our manufacturing sector and the services sector has

recorded higher share in the GDP and it is further improving. Despite the

unfavourable market conditions in the West our IT sector is doing well and it is hoped

that it will continue to show better performance. The Govt. has taken several

measures to boost our industries performance. It has offered several concessions for

Foreign Direct Investment (FDI) under Make in India, Start Up Initiatives and in

course of time its fruit will also be available. It will boost the exports as well as

generate sizable employment opportunities. Even the skill development initiative

taken up by the Govt. will have a favourable impact on the economic development.

The following table depicts the growth of India‟s GDP during the past five years.

Table 1.1: India’s GDP growth rates during the period 2010-11 to 2014-2015

F. Y. Ending 31st March

Particulars 2011 2012 2013 2014 2015

India‟s growth rate of GDP

(2004-05 prices) (Factor Cost)

8.91 6.69 5.6* 6.6* 7.2*

Industrial growth GDP (2004-

05 prices)

7.55 7.81 5.00* 5.9* 7.3*

Agriculture & Allied Sector

(2004-05 prices)

6.60 5.02 1.5* 4.2* -0.2*

Services Sector Growth 9.67 6.57 7.08* 10.3* 9.2*

(Source: Reserve Bank of India, Central Statistical Organization, Finance Ministry CSO 30/05/2014)

* At 2011-12 prices.

3

1.2 INDIA’S DEMOGRAPHIC SCENARIO

The last Indian Population Census was held in 2011 and its results have come

out. In the following tables the data revealed in the Population Census 2011 has been

presented using different parameters which are useful in the context of the present

research.

Table 1.2: India’s Population Growth since 1951

Census Year Rural Urban Total Decadal

growth %

1951 298644381 62443709 361088090 13.31

1961 360298168 78936603 439234771 21.64

1971 439045675 109113977 548159652 24.80

1981 523866550 159432547 683329097 24.66

1991 628691676 217611012 846421039 23.87

2001 742490639 586119689 1028737436 21.54

2011 833087662 377105760 1210193422 17.64

(Source: http://censusindia.gov.in/2011 and

http://www.censusindia.gov.in/ Census_ Data_2001/India_at_Glance/variation.aspx)

It can be seen from the above data that the population growth trend between

1951 to 1981 was an upward trend while it started decline since then to 2011. The

highest decadal growth rate was 24.66 which has come down to 17.64 per cent in

2011. It is the result of the spread of education and the deliberate policy perused by

the Govt. for family planning.

Sex ratio is also having a bearing on deciding the marketing strategies.

Therefore the marketer does require this classification of the population on the basis

of gender. Therefore the following table provides this data as per the latest population

census of 2011.

4

Table 1.3: Sex ratio and share of female population as per 2011 Census

Territory Sex Ratio Female population Percentage of

female population

India 940 586649174 48

Maharashtra State 925 54111575 48

Pune District 927 2717131 47.34

(Source: National Census Data 2011)

In order to understand how the population growth has taken place during a

long period also helps in deciding the marketing strategies. It is equally important to

know the rural – urban composition of the population. This helps in chalking out rural

marketing strategy. Hence the following table provides this data.

Table 1.4: Rural/Urban Differential in Growth Population – India

Period Average annual percentage growth rate of population

Rural Urban Total

1951-61 2.06 2.64 2.16

1961-71 2.19 3.82 2.48

1971-81 1.93 4.61 2.47

1981-91 2.00 3.64 2.38

1991-2001 1.81 3.15 2.15

2001-2011 1.22 3.18 1.76

(Source: office of the Registrar General of India)

Rural –Urban Migration:

There has been a process of rural urban migration on account of various

reasons which have been explained with the help of the following data.

5

For various reasons there is a migration of population from rural area to urban

or metropolitan area. It may be due to lack of sustainable employment or for

education etc. The following table provides data on the trend of urbanization in India

since 1951 to 2011.

Table 1.5: Trend in urbanization – India

Period Urban population as percentage

to total population

1951 17.3

1961 18.0

1971 19.9

1981 23.3

1991 25.7

2001 27.8

2011 31.2

(Source: office of the Registrar General of India)

From the above table it can be seen that the annual average percentage growth

of population in the rural area has been consistently decreasing and there is

corresponding increase in the urban population. This is partially due to migration

from rural to urban on account of various reasons. E.g. lack of full employment, lack

of civic amenities such as education, health care etc. However, of late it has been

observed that this rate of migration has also been arrested because of the various

measures like MNAREGA and other employment schemes launched by the Govt.

1.3 HISTORICAL PERSPECTIVE OF MARKETING

The marketing activity is an age old concept. The fact is right from the

evolution of mankind, no one can have all resources which meet his requirements.

One may have a surplus while the other one may have deficit. So the one who has

deficit of any particular commodity has to find out the one who has surplus of it and

exchange it with whatever surplus he has. Thus the marketing is exchange of goods

and services for some consideration. In the early beginning there was a system to

6

exchange the goods and services with what is available with each other in surplus.

That is exchange of one type of goods with the other goods. This system is called

barter system. In course of time there developed a commonly acceptable exchange

source. And finally there was introduction of the currency which has the acceptance

from the community. There are advantages with the use of currency as a medium of

exchange. In the present day marketing at the local level national currency is in use

and in the international arena commonly accepted currencies are there. E.g. U.S.

Dollar, Euro etc. This facilitates easy settlement.

As the time passed the organized marketing channels have emerged. Today,

the marketing chain is fully developed. We have retailers who cater to the needs of the

consumers directly. Retailer receives his supplies from the semi wholesaler or

wholesaler / stockiest etc. Now over the past decade a new marketing channel has

come on the market scene and that is Malls.

1.4 NEW AGE RURAL CONSUMER

The traditional rural consumer was poverty gripped, illiterate, was afraid of

change and bit reluctant to spend. However, the new age rural customer is value

driven. He is willing to purchase a product of higher value provided it is enriching his

life style. Because of the spread of education there is a gradual change and is also

following the footprints of the urban consumer. The rural consumer of today is willing

to buy a product if he is sure that the new product or services are beneficial to him.

His mobility has been increased. Because of the developed means of transportation he

is exposed to the urban market where he is exposed to the newer products. His

earnings have also been favourably improved which has given rise to increase in his

purchasing power. If we look at the change we find this change more in the rural

youths as their mobility is more. Their purchases of mobile van, personal care items,

two wheelers, computers etc has led to the faster development of the rural market. In

number of families the youth is the only educated member in the family and therefore,

he has a positive role in making buying decisions.

We find in the rural area compared to the traditional the cultural and social

norms are gradually changing. Today even women are also participating in the

7

decision making process at least for the products that they use. Because of the spread

of Self Help Group movement the rural women are now empowered and they have

gained courage in asserting themselves.

Companies which understand these fast changing conditions are resorting to

creating awareness amongst the rural consumers and are highlighting the benefits that

they derive from their products.

1.5 GROWTH OF THE MIDDLE CLASS

Over the years because of the spread of education, increasing employment

opportunities, the lower income group in the rural area has steadily developing as a

middle class consumer. This is emerging as a driving force for the rural markets. For

quite some time the rural marketing was considered as a non-viable preposition by the

marketing organization. But now there is a sea change in their approach/strategies that

this is a rapidly upcoming market and now it recognized as a viable market.

While considering the future of the rural market we see a very bright future for

the same. The rural income levels are increasing positively. Normally the rural family

has no rent for the accommodation, and wherever it is for a small migrated family

because of the employment, the rent is meager. Vegetables which are locally grown

are cheaper. Majority agriculturists are growing their requirement of food items in

their own field at least for their requirement. This leads to surplus generation and is

being spent for improving their life style.

There is indication that there will be 100 per cent road connectivity in the rural

areas. This could be possible because of the govt. policy of welcoming foreign direct

investment for infrastructural development. These rural markets will be accessible.

The rapid growth of the industrial and services sector that is planned will also have a

positive impact on the development of the rural markets. Increase in the irrigated area

is also given prominence which will improve the farm productivity. Further it has

been observed that most of the companies, domestic as well as foreign companies,

have now very well aware of the potential of this growing rural market and are now

8

developing their strategies specially for the rural sector and targeting higher market

shares than before.

The trading community estimates that by 2020 India will be the 5th

largest

consumer economy in the world.

1.6 CHANGED RURAL SCENARIO

The composition of the rural environment mainly comprises of demographic,

physical, economic, social, cultural, political and technological aspects. Let us

understand the changes that have taken place over the past two three decades.

Demographic factor: We have already seen that there is a population growth.

As per the latest population census of 2011 68.84 per cent of the India is a rural

population.

Age group of the population: Over 69 per cent of the rural population is in

the age group of between 5 to 14 to 25 to 54 years. This is the age group whose

consumption is more and this age group is going further.

Education: As discussed earlier because of the concerted efforts put in by the

government, there is very good penetration of the educational institutions of all levels

as a result of which over 25 per cent of the rural population has studied upto

SSC/HSC.

Occupation: Today‟s rural family is not fully dependent on agricultural

income. Someone in the family has a complementary source of income either in the

form of activity allied to agriculture i.e. dairy, poultry, etc. Some of the agriculturists

have started their tractor hiring units, shops selling agricultural inputs like seeds,

fertilizers, insecticides, pesticides etc. two wheeler repair workshops etc. One of the

educated family members is employed or pursuing self employment endevour.

Change in the family structure: As a result of the change in the occupation,

as well as divisions in the family the traditional family structure of having joint

9

families has been greatly disturbed. Because of the family planning movement the

size of the family has also been drastically reduced. Thereby, pressure on the

agricultural land has also been reduced.

Developments in Rural housing: With the improvement in the earnings we

see a lot of change in the traditional housing pattern. Today, we see houses cement

concrete houses which are more hygienic. Even for those who are living below the

poverty line the government has introduced Indiara Aawas Yojana and also providing

subsidy for construction of the toilets. All these developments have a positive gradual

impact on the rural health.

Social and cultural changes: Because of education, availability of television

media, mobile phones, etc. have exposed the rural population to the urban social and

cultural behavior. Apart from the traditional functions and social movements, today

the rural masses are also observing the urban festivals and culture. This generates

demand for those urban products also.

Change in the cropping pattern: Wherever there is availability of irrigation

facility the agriculturists are taking cash crops like sugarcane, vegetables, oilseeds,

dali, grapes and other fruit crops. In certain parts of the states like Maharashtra,

Karnataka, UP, the sugarcane cultivation has given rise to the establishment of

Cooperative as well as privately run sugar factories. These sugar factories have

become a nucleus of development as they have developed educational campuses,

poultries etc. which has increased the demand for the fast moving consumer goods.

As an ancillary activity these sugar factories have developed marketing outlets (e.g.

Bazzar) in their campuses which are marketing on the lines of Urban Malls. These

marketing outlets are providing consumer durables as well as daily consumption

branded goods. One more peculiarity of this outfit is they are extending credit to their

sugar cane supplying members and recover the money from out of the sale proceeds

of the sugar cane. Thus easy accessibility of the credit is also a factor which has given

rise to the rural marketing.

10

1.7 CONCEPTUAL FRAMEWORK

The rural area has not been defined by any organizations. However, number of

organizations has given the definition of a Village which is a part of rural area. The

researcher has brought out here under the various definitions of the various vital

concepts /terminologies used in this research work:

Village

According to the Indian National Census the village has been defined that it

is a basic unit for rural areas. It is a revenue village which might comprises of several

hamlets demarcated by physical boundaries. It has defined town as rural area but it

should satisfy the following criteria:

Minimum population >=5000

Population density >=400/sq.km.

75 per cent of the male population engaged in agriculture

According to the Reserve bank of India, locations with population upto

10000 will be considered as rural and 10000 to 100000 as semi-urban.

According National Bank for Agriculture and Rural Development

(NABARD) – All locations irrespective of villages or towns, upto a population of

10,000 will be considered as „rural‟.

Planning Commission of India has defined rural area as towns with

population upto 15,000 are considered as rural.

In addition to it, private organizations mainly marketing organizations do

define the rural area as they are required to adopt different marketing strategies for

rural and urban and metropolitan area. E.g. Sahaha defines Rural area having

shops/commercial establishments‟ upto 1,000 as rural area, while LG Electronics:

Barring all cities other than seven metros are considered as rural. It means Sahara has

a very broad definition. It may be because of its products LG Electronics might have

defined it in such manner.

11

The definition given by Reserve Bank of India is taken into account for this

research. This is because it has the mean criterion considering the other definitions.

Another term which is in fact the key word of this research is relating to

marketing. Therefore, let us understand the definition of the word „Marketing”.

Marketing

In simple words marketing means exchange of goods and services for some

consideration. In the primitive period in the absence of any currency goods were

exchanged for goods or services which are referred to as Barter system.

Marketing is a process through which goods and services move from concept

to the customer. It includes the coordination of four elements called the 4 P's of

marketing:1

(1) Product identification and development.

(2) Price determination,

(3) Distribution channel selection to reach the customer's Place, and

(4) Formulation and execution of a Promotional strategy.

Customer needs and satisfaction are the basis of marketing.

According to Theodore C. Levitt, retired Professor from Harvard University

Marketing and selling are two different concepts. "Selling concerns itself with the

tricks and techniques of getting people to exchange their cash for your product

According to Dr. Philip Kotler,2 the Marketing Guru, “Marketing is the

science and art of exploring, creating, and delivering value to satisfy the needs of a

target market at a profit. Marketing identifies unfulfilled needs and desires. It defines

measures and quantifies the size of the identified market and the profit potential. It

pinpoints which segments the company is capable of serving best and it designs and

promotes the appropriate products and services.”

1 http://www.businessdictionary.com/definition/marketing.html

2 http://www.kotlermarketing.com/phil_questions.shtml

12

“Marketing‟s key processes are: (1) opportunity identification, (2) new

product development, (3) customer attraction, (4) customer retention and loyalty

building, and (5) order fulfillment. A company that handles all of these processes

well will normally enjoy success. But when a company fails at any one of these

processes, it will not survive.”

American Marketing Association defines marketing as “the performance of

business activities that direct the flow of goods and services from producer to

consumer or use”.3 Marketing encompasses identifying and translating consumers‟

need and desires that the consumer expects from the product. Creation of demand for

the products and services for the consumers is also a part of marketing effort.

In order to achieve the set goal the management has to formulate a strategy for

the targeted market. It is in this context necessary to understand what is strategy.

Strategy:

According to Business Dictionary,4 Strategy is :

“1. A method or plan chosen to bring about a desired future, such as

achievement of a goal or solution to a problem.

2. The art and science of planning and marshalling resources for their

most efficient and effective use. The term is derived from the Greek

word for generalship or leading an army.”

Johnson and Scholes 5(Exploring Corporate Strategy) define strategy as

follows:

"Strategy is the direction and scope of an organization over the long-term:

which achieves advantage for the organization through its configuration of resources

within a challenging environment, to meet the needs of markets and to fulfil

stakeholder expectations".

The goods are divided into two distinct categories. One is Consumer Durable

Goods which have longer life and used for a long time. E.g. Washing machine,

3 Tapan K. Panda, Marketing Management (2007) published by Excel Books, new

Delhi Page: 6 4 http://www.businessdictionary.com/definition/strategy.html#ixzz4IRVvzc59

5 http://www.tutor2u.net/business/reference/what-is-strategy

13

Ovens, Automobile Cars, Two wheelers etc. The fast moving consumer goods are the

goods which are quickly sold and comparatively low cost. These fast moving

consumer goods include toiletries, drugs, processed foods etc.

“The Fast Moving Consumer Goods industry covers the household items that

you buy when shopping in the supermarket or a pharmacy. „Fast moving‟ implies that

the items are quick to leave the shelves and also tend to be high in volume but low in

cost items. The products are ones that are essential items we use day in and day out”.6

Consumer

An individual consumer is one who buys products or services for personal use

and not for manufacture or resale. A consumer is someone who can make the decision

whether or not to purchase an item at the store, and someone who can be influenced

by marketing and advertisements. Any time someone goes to a store and purchases a

toy, shirt, beverage, or anything else, they are making that decision as a consumer.7

1.8. RURAL CONSUMER BEHAVIOUR

In the normal course it is easy to know what rural consumer buys, from where

they buy and how much they buy. However, it is difficult to understand the motive of

the rural consumer in buying it. Once the motive is known naturally the marketer can

focus its strategy on it. There is no uniformity in the behavior pattern of the rural

consumer. This is mainly because the rural area has peculiar customs, traditions and

culture. Therefore, the marketer should know what are the factors that influence the

rural consumer‟s buying decisions? There are three types of factors namely cultural

factors, social factors, personal and psychological factors.

Cultural factors are the most crucial factors in the rural area. Rural values and

perceptions, preferences and behaviour influence the rural consumer. At the entrance

if a customer is offered a glass of water the customer is pleased and feel obliged to

purchase.

Social customs rank second in the influencing factors. Social acceptance is

highly regarded in the rural part of India. Traditions are practiced as ritual. Human

6 https://jobs.telegraph.co.uk/article/what-is-fmcg/

7 http://www.investorwords.com/1055/consumer.html

14

behavior is influenced by the traditions. The rural people strongly believe in the

traditions and they do not break those traditions. One such tradition is “Athiti Deo

Bhav” i.e. we respect the guests as if they are God. Castes also have influence on the

buying behavior of the rural consumer. In the absence of income tax return filing

estimating their annual income is a problem. The socio-economic classification of the

rural consumer also greatly influence the buying behavior. The socio economic

factors include the educational back ground of the head of the family, type of housing,

having own transport vehicle, and the standard of living. Currently in the rural area

usually collective decisions are taken and are followed by the members. If a Sarpanch

or a Bank Manager recommends anything it is honoured. In the rural area people have

more time to spend in the family and with friends which turn out to be recommending

purchase of any particular product. Thus they get influenced.

In personal factors the age of the customer, his occupation, income and his

lifestyle also influence the buying behavior. Purchasing power of the individual

widely differs and it plays a significant role in the buying behavior. Perception plays a

key role in consumer selection of a particular product.

1.9 RURAL MARKETING MIX – CHALLNGES

In order to developing the marketing strategy usually 4 Ps are considered.

These 4 Ps are price, product, place and promotion. However, while designing rural

marketing strategy instead of this urban approach, all together different approach is

required to be followed. On the lines of 4 Ps, the rural strategy has 4As are required to

be considered. These 4As are: affordability, availability, awareness and acceptability.

These 4As are discussed in the following paragraphs:

Affordability

There is a difference in the average rural income of the urban and rural

masses. In the rural area generally the income is less as compared to urban area.

Therefore, the purchasing power also differs. Therefore, while developing products

for the rural market this affordability aspect will have to be born in mind and that too

without sacrificing the quality of the product. For this understanding the rural

15

environment is also essential. Thus the product developed should be within their

purchasing power.

Availability

We have already seen the magnitude of the rural market which comprises over

600000 villages spread across the country. Hence making available the product at

such a wider market spread is the greatest hurdle. If we advertise and create

awareness about the product and if it is not available then it is but natural that the

prospective purchaser will not be able to purchase it. In this context, it has been

observed that if the product is made available at the town level, it automatically

reaches the villages. This is because the rural retailers but these products from the

nearby town and make the product available on their own. Therefore, the

manufacturer or service provider has to ensure that the product/service is made

available at all the towns which are the catering points for the rural retailers. Even if

the product is to be made available at the towns the marketing strategy should be to

identify those potential towns applying survey method and the supplies may be

arranged accordingly at the identified towns.

Awareness

We have already seen that in the rural area the literacy rate is low compared to

the urban area. Therefore, in order to create awareness the audio visual media is the

main source which should be tapped. Now a day colour television sets have reached

the rural area. The only drawback is non availability of the uninterrupted power

supply. This difficulty is of course gradually getting reduced as the Govt. of India has

given thrust in developing power generation on war footing and in course of time the

situation will improve. There is also alternative route available for creating awareness.

These means are participation in village fairs, showing the product using small

projectors and short films. These means are being tapped by the marketers.

Acceptability

Product acceptance in the rural area is of utmost importance. If the product has

been designed keeping in the requirements of the rural masses, storage facilities

availability, climate, environment, rural traditions, customs, ease of use, low cost and

16

durability etc. acceptance of the product becomes easier. Products which are required

to be kept in refrigeration condition will find difficulty as currently power shortages

are there.

1.10 PROMISING RURAL CONSUMER

Of late, the rural population in the youth age group is sizable. This youth

population is educated one. This was possible because of the govt. efforts to take the

education in the rural area. The rural youth being educated are exposed to various

media and is aware of the various FMCG products that are being marketed in the rural

area. This rural population influences the buying behavior of the rural consumers. The

educated youth who are pursuing agricultural activity are using modern techniques

and this has improved the quality and productivity of the crop, which in turn resulted

in increased surplus. In addition to the principal economic activity of agriculture, now

the youth are pursuing activity allied to agriculture or any other complementary

economic activity whereby their income level moves up. They are taking benefit of

various government schemes of self employment under Mahtma Gandhi national

Rural Employment Guarantee Act (MNREGA), Swarnajayanti Gram Swarozgar

Yaojna (SGSY), The Pradhan mantra Rojgar Yojna, etc. All these government

schemes are aimed at reducing the poverty and increasing the family income for

improving their living conditions. The increased surplus improves the purchasing

power of the family. Today there is a change in the approach of the rural youth which

give weightage to value driven products which enriches the life style. The rural youth

are gradually emerging computer savvy. They do have mobile with them. The rural

youth are now copying their urban counter part and expecting high quality products.

Slowly there is a change in the social and cultural norms in the rural area. In

the nuclear families women are also participating in buying decision making process.

Particularly after the launch of Self Help Group movement the rural women have

realized their latent power and have started asserting in the decision making process.

There is one more dimension for the improved importance of rural women. Today in

the local self government in the rural area (Grampanchayat) as well as at Block level

33 per cent reservation is for the women representatives. This participation has

created boldness among the women and they have gained voice. Therefore, what is

17

needed is that the companies should target their marketing strategy to the women,

youth and children rather than the older generation.

1.11 RURAL MARKET SEGMENTATION

The Indian rural market is heterogeneous in character. Rural diversity is the

principle challenge that needs to be addressed. This is because of the social cultural

differences, population density, infrastructural development, media exposure, literacy

levels, difference in income levels, etc.

In order to plan effective marketing strategy in country like India considering

its length and breadth the rural markets are required to be segmented. This is

principally because of the economic imbalance of various regions. The North Eastern

region as compared to South Zone (Karnataka, Maharashtra, etc.) are relatively

underdeveloped. States where cash crops like sugarcane, cotton, horticultural crops

are grown in large scale there the income level is relatively high and as such the

purchasing power is also greater. Therefore, while tapping the different market

segments different strategies are required to be put in place. So also seasonality has

also to be born in mind and accordingly the products be launched.

Again the segmentation of the rural and urban market will have to be done

using different criterion. So far as rural marketing segmentation is concerned

segmentation be undertaken on the basis of geographic aspects like region, state,

district, village and climate. Demographic segmentation like age, lifestyle,

landownership, income levels, socio-economic development etc.

1.12 OVER VIEW OF INDIAN RURAL MARKET

Accenture Research has recently published its third annual survey in the form

of “Masters of Rural Markets: From Touch points to Trust points – Winning over

India‟s aspiring Rural Consumers”. This survey revealed that there is a shift in the

aspirations of the rural consumers. Now the rural consumers are buying branded and

quality products. This has provided impetus to the growth of the Indian Rural Market

and it is hoped that the space of the growth rate will be more than the growth rate of

urban markets. This shift is mainly due to the awareness about the quality of the

18

branded goods and services through the reach of the electronic media and the

penetration of the telecommunication. Because of the advertisement media through

television the customer can have a look at the product and gets the details of it. There

is an adage which says “seeing is believing”. 8

According to the A C Nielsen, TechSci Research, Dabur reports the Rural

FMCG market has recorded the progress depicted in the following figure and is

poised to reach newer heights.

Fig. 1: 1

Movement of FMCG Rural Market and the potential offered by it

0

10

20

30

40

50

60

70

80

90

100

2009 2010 2011 2012 2013 2015 2018E 2025E

9 10.4 12.3 12.1 14.8 18.92 20

100

FMCG Market in US$ billion

(Source: AC Nielsen, TechSci Research, Dabur Reports.)

Note: E-Estimate

Besides the electronic media and telecommunication penetration there is one

more aspect which influences the rural market and that is the education level of the

rural population. Over the years the government has spent huge amount to see that the

rural masses also get educational facilities in the rural area and this has resulted in the

educational development of the rural masses.

Apart from the above, slowly the purchasing power of the rural masses is

increasing. Wherever, irrigation facilities are there the agriculturists are getting good

8 http://www.ibef.org/industry/indian-rural-market.aspx

19

price for their cash crops like sugarcane, fruit crops etc. Even the government has

taken initiative in increasing employment opportunities through its scheme popularly

known as Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA)

which guarantees minimum period of 100 days employment in the rural area. Besides

this the introduction of Self Help Groups in the rural area there is an addition to the

family income by the efforts put in by the family in marketing their home made

products. This has empowered the rural women and has generated confidence in the

rural woman. Because of the participation in a group her exposure to the various new

areas has increased. All these efforts have resulted in the increase in the purchasing

power of the rural masses and they are now aspiring for upgrading their life style.

Gradually the consumption pattern is changing. Thus the observation of the

above survey is realistic and currently the rural markets have poised for higher

achievement. Accordingly the rural markets are growing fast. The potential of this

rural market is tremendous.

According to the latest population census of 2011, India has over 6 lakh

villages spread over in 640 districts and 5767 tehsils. It has a sizable population.

According to 2011 census the rural population size is 83.30,87,662 which accounts

for 68.84 per cent of India‟s total population. With the introduction of the MNREGA

and introduction of SHGs the rate of growth of migration from rural to urban has been

declined.

During the period 2009-10 to 2015-16 India‟s Compound Annual Growth Rate

(CAGR) of contribution of the rural sector to the GDP is 12.3 per cent. The

Accenture survey has estimated that the share of fast moving consumer goods

(FMCG) in rural and semi urban sector is expected to cross US $ 20 billion mark by

2018 and US$ 100 billion by 2025.

The following salient features of the various government initiatives are adding

favourably to the growth of the rural market.

Ministry of New and Renewable Energy (MNRE) has set up an annual target

of setting up one lakh family size biogas plants to be achieved by 2016-17.

20

IIT – Chennai and Nokia Networks are creating technology solutions which

will enhance broadband connectivity in rural India.

The United Economic Forum (UEF), an organization that works to improve

socio-economic status of the minority community in India, has signed a

Memorandum of Understanding (MoU) with Indian Overseas Bank (IOB) for

financing entrepreneurs from backward communities to set up businesses in

Tamil Nadu. As part of the agreement, entrepreneurs who have been chosen

by the UEF, will get term loan / working capital requirements from the bank.

The UEF will appoint mentors to guide entrepreneurs for successful

implementation of the project, with both IOB & UEF periodically monitoring

the progress of the project

Tata Motors, India's biggest automobile company by revenues, plans to

aggressively expand its network with a focus on rural markets. The company

is aiming to more than triple its network to 1,500 over the next three years

from 460 now, making it the biggest such expansion by a passenger vehicle

maker in the country so far.

Government Initiatives

The Government of India has planned various initiatives to provide and

improve the infrastructure in rural areas which can have a multiplier effect in

increasing movements of goods, services and thereby improve earnings

potential of rural areas subsequently improving consumption.

The Union Budget 2016-17 proposed a slew of measures to improve

agriculture and increase farmers‟ welfare such as 2.85 million hectares to be

brought under irrigation, Rs 287,000 crore (US$ 42.5 billion) grant in aid to be

given to gram panchayats and municipalities and 100 per cent village

electrification targeted by May 01, 2018.

21

Prime Minister Mr. Narendra Modi has launched the National Urban Mission

with the aim of enabling cluster based development and creating smart

villages which will complement the smart cities initiative.

The Union Cabinet has cleared the Pradhan Mantri Krishi Sinchaee Yojana

(PMKSY), with a proposed outlay of Rs 50,000 crore (US$ 7.41billion) spread

over a period of five years starting from 2015-16. The scheme aims to provide

irrigation to every village in India by converging various ongoing irrigation

schemes into a single focused irrigation programme. The Government of India

aims to spend Rs 75,600 crore (US$ 11.21 billion) to supply electricity

through separate feeders for agricultural and domestic consumption in rural

areas. This initiative is aimed at improving the efficiency of electricity

distribution and thereby providing uninterrupted power supply to rural regions

of India.

The Government of India seeks to promote innovation and technology

development in the remote rural and tribal areas. The government plans to

form a committee to study various innovations and submit their reports to the

concerned Department or Ministry.

Development of non farm sector: Under the MNREGA scheme the thrust is to

provide various services required by the rural households. Thus we observe

that now most of the village are having floor mill, medical shop, kirana shops,

two wheeler repairing workshops, etc. Which is solving the employment

problem and at the same time complimentary family income generation is also

there.

In order to have a fair idea about the size of the Indian FMCG market the

following table throws light on it.

22

Table 1.6: India’s FMCG Market size (in US $ Billions)

2003 11.6

2006 14.6

2007 18.0

2015 33.4

Here it will be appropriate to know the top 10 FMCG companies on the basis

of their performance as on 31st March 2014. The following table provides this

information.

Table 1.7: On the basis of the performance the following are the top 10

companies in FMCG sector as of 31st March 2014.

Sr. No. Company

1 Hindustan Unilever Ltd.

2 ITC (Indian Tobacco Company)

3 Nestl‟e India

4 GCMMF (AMUL)

5 Dabur India

6 Asian Paints (India)

7 Cadbury India

8 Britannia Industries

9 Proctor and Gamble Hygiene and Health Care.

10 Marico Industries

(Source: naukrihub.com)

At the instance of the Indian Confederation of Indian Industries Nielsen

Company had conducted a survey on Emerging Consumer Demand- Rise of the Small

Towns in 2014. The report has been focused on the various trends available in

F.M.C.G. marketing. The following data depicts the recent trends:

23

Fig.1.2

All India FMCG – Value Growth in terms of percentage

0

10

20

30

40

50

60

Metros Middle India ROU Rural

49.48

58.6 56.2 58.1

11.512.4

19.114.5

2011 over 2009 2011Q4 over Q1

(Source: Nielsen)

The following data reveals sale per point of distribution (location-wise) Growth

Fig.1.3

Sales per Point of Distribution (Consumer Pull) Growth)

0

5

10

15

20

25

30

35

40

45

50

All India Metro Aindia TownClass 1

All Inida Restof Urban

Aindia Rural

45.746.9

39

35.1

11.210.2

15.9

9.7

2011 over 2009 2011Q4 over Q1

(Source: Nielsen)

24

The Fast Moving Consumer Goods (FMCG) sector in India is the fourth

largest in the economy, with a market size of over Rs 110,000 crore (around $22

billion) and is estimated to grow to over Rs 185,000 crore (around $37 billion) by

2014. This has been revealed in recently conducted by the Rural Marketing

Association of India (RAMIAI) that the rural income levels are on the rise.

Hindustan Unilever (HUL) and ITC, too, have robust rural initiatives such as

Project Shakti and e-choupals, respectively. “HUL has the highest sales mix coming

from rural India. Its key category, soaps and detergents, is facing intense competitive

pressure in rural markets,”

The rural market contributes to 35 percent of total sales of the consumer

packaged goods industry. Rural areas were the engine behind the FMCG sales in

2013-14. Companies had faster growth in the rural areas in calendar year across key

product categories, both in volume and value, except for food.

In the last few decades the food items were dominating in the distribution by

FMCG in the country. However, currently we are witnessing that the personal care

products have scored over the food items - this is mainly because of the fact that the

FMCG companies pushing the entire range of their products as a result of

improvement in the rural consumer spending. The fast moving consumer goods are

now sold through 8.8 million outlets and about 80% of these outlets.

For HUL, next step now is to make its brands accessible using pack sizes and

price points tailored to win across the country. "We have been able to maintain our

leadership position in a growing market by following a market development approach.

One of the most successful attempts on this front has been the Dove 'twin sachet',

which offers a shampoo and conditioner together at Rs 5 price point to induce trials,"

says Srirup Mitra, category head - Hair Care, HUL. In the rural area the sachet

packing is the most popular and widely accepted. Therefore, the marketing

organizations should focus in making the sachet packaging available in the rural

25

markets. These sachet packages play a vital role in providing a push to the growth of

the market.

Nielsen the international market research organization has recently pointed out

through their survey findings that the food product i.e. biscuits finds place amongst

the top five FMCG products. Shampoos have the maximum 79% reach in the market

and biscuit follow it at 78%.

Fig. 1.4

1.13 PRODUCT BRANDING A NEW DIMENSION IN RURAL

AREA

Branding is the use of a name, term, symbol or design to give a product a

unique identity in the marketplace.9 Product branding is undertaken usually for

summoning the message instantly, enriching credibility, instant emotional affirmation,

to motivate the buyer, and building up customer loyalty. Up till now the product

branding was limited to urban marketing but now gradually there is change in the

rural marketing field. Because of the education, increased purchasing power, even the

rural consumer is also opting for the branded goods. This is mainly due to

affordability and awareness about the product. Research has revealed that rural

customers brand loyalty association is with colour, numbers and visuals. Surprisingly

it is not with the name of the branch. E.g. Colours: Lal Dant Manjan, Numbers –

Godrej No.1, Visuals – 3 Roses tea etc.

9 http://smallbusiness.chron.com/definition-product-branding-strategy-15785.html

26

In the rural area the retailer plays a pivotal role. Many a times the consumer

goes by his recommendation of a product. This is because of the strong bondage

between the retailer and the consumer. The retailers have won the consumer‟s trust.

With the use of this trust the retailer can push a particular brand of his choice. This is

because the retailer is a very influential person in the rural market. The first brand that

has made inroad in the rural market is Surf followed by Dalda, Katchua Chhap

Mosquito coil etc. As the product range increases and the number of brands come in

the market the establishing a particular brand becomes difficult.

There are three stages for building a brand in the rural area. These are

developing a brand name, creating a brand identity and building a brand image. Brand

name should be easy for remembrance. E.g. Nirma, Colgate. When it comes to

creating a brand identity in the rural area it should relate to the rural life style. This is

rather a difficult aspect as in the normal course brands are first introduced in the urban

markets. E.g. Britania Tiger Biscuits. The brand should have its own personality.

1.14 PACKAGING IN RURAL MARKETS

The rural market has a typical requirement of packages as compared to the

urban areas. They require small packages. Sachet packing and refill packs are

preferred in the rural areas. Because of the rough roads, the packaging should

withstand the road condition. The product should be easy to store and should take into

account the various risks associated with e.g. power shortage for goods to be stored in

the refrigeration condition. Package should be such that the pictures on the package

should relate to the rural environment. Therefore the product for the rural market

should possess the following attributes:

Compared to the urban market the product should have a longer shelf life. It

should be able to withstand the climatic conditions prevailing in the rural area. It

should be able sustain the jerks while in transit through rough and dusty roads . It

should have alternate storage arrangements. E.g. for storage of Cadbury a special type

of storage device is provided to the retailer by the companies. As far as possible

refilling package should be in plastic, foil packaging, tetra packaging properly sealed.

Packaging should be easy for handling. With a view to motivating the consumer the

27

packaging should be such that after its use, the container can be used by the family for

domestic storage. Packaging in sachets is very popular in the rural areas as it can be

purchased at a relatively low cost.

Hindustan Unilever Ltd. through its “Operation Bharat” is tapping the rural

markets. It has sent sample packets of its low priced toothpastes, fairness cream,

shampoo, Pond‟s cream products to over 20 million households. In this manner HUL

has reached in such a large number of families in India.

The introduction of the sachets packaging has changed the face of the rural

marketing altogether, as it is small quantity, less priced and that increases the

affordability to the rural consumer.

Establishing a brand in the rural market is a tough task as it is unpredictable

market. If it clicks, nothing like that. Therefore the marketer should thoroughly

understand the social dynamics, attitudes of each village and if this is done the future

for the brand is very bright.

1.15 PRICING STRATEGIES

Price is a key element in motivating a rural consumer for the purchase. Pricing

is a strategic and crucial issue which needs to take care of various aspects. If the price

is high the consumer will buy a small quantity and vice versa. The strategic decision

relates to profit element. Whether to increase the turnover and earn with low margin

of profit or to load higher profit margin with low turnover. Affordability aspect comes

in picture. In the detergent segment we can see how this has been implemented. Now

the branded detergent powders and shampoos are available in sachets which can be

purchased for instant use. Because of various developments like spread of irrigation

facility, agriculturists are resorting to activities allied to agriculture, employment

generation in the rural area the purchasing power of the village consumer has

gradually increasing. Access to the urban centers is increased. This brings awareness

of the newer brands introduced in the urban set up. The rural consumer expects high

quality at affordable cost. High value products have limited market demand in the

rural area. E.g. in the face wash segment L‟Oreal has less demand in the rural area.

28

Understanding the psychology of the village consumer so far as pricing of the

product is concerned. He expects that the product should be a quality product and it

should deliver value for money. The rural consumer compares the price with the

earlier product that was in use.

1.16 DISTRIBUTION CHANEL IN THE RURAL AREA

Managing the distribution of the product in the rural area is a gigantic task.

Usually the distribution channel comprises of wholesalers, stockiest, transporters and

retailers. Currently over half a million villages are covered by the distribution

channels. The traditional channels are at advantageous position as they have

experience, specialization and knowledge of local conditions, contacts and scale.

Because of their peculiar position, they offer even better service than the

manufacturer. FMCG major like Hindustan Uniliver are penetrating their distribution

of product upto small towns for which they use conventional as well as innovational

channels. In order to achieve sustainable growth in the rural market, the marketers

should emphasize their direct reach in the rural retailer. No doubt this is a challenging

task.

1.17 IMPACT OF GLOBALIZATION ON FMCG MARKETING

IN RURAL AREA

In the Indian economy the fast moving consumer goods sector assumes prime

importance. This is mainly because this is the sector which encompasses the human

life. After the adoption of the globalization policy by the Indian government in the

year 1991, because of the demographic position of India the international business

community has realized the importance of the vast potential thrown open by the

Indian rural market. Gradually in the rural area a new class of middle income group is

emerging who is aspiring to change his life style using the increased purchasing

power.

Keeping this vast potential of the rural market the Multi National Corporations

as well as the domestic regional players have focused their attention in developing

strategies for rural marketing. They have now realized that this class of consumer is

29

different from their urban counterpart on various counts such as socio-economic

conditions, differs also in the various influences on the consumer behavior.

When we observe the impact of globalization on the Indian marketing horizon

we observe that the policy has affected both the urban and rural marketing sector. The

marketers have in the rural area made the farmers particularly the youth as their target

because they are educated and have influence over the buying behavior of the family.

The rural youth are quite alert so far as the market is concerned. They are well

equipped with the android cell phones and they keep themselves updated about the

various movements in the market not only of the domestic market but also the export

market. This youth class is using the knowledge gained in improving agricultural

returns and are experimenting the new technology to bear its fruits.

With the globalization and entry of MNCs in FMCG sector and the already

present domestic network of the domestic markets in the same sector the competition

has become severe and this has lead to the need of framing altogether different

strategy to address the rural consumers. It is interesting to observe that the various

internationally known multinational companies like Hindustan Unilever Ltd, Britania,

Colgate, etc. have taken interest in exploring the rural marketing potential.

The special feature of the rural market is that the product in the rural area

should have quality as well as the pricing should be affordable to the rural masses.

The packaging should be also specially designed. Keeping the low profit margin and

achieving greater turnover should be the policy. Therefore, the companies are

concentrating their efforts in cost cutting and ensuring the product is accepted by the

rural market as affordable and with value addition which will improve their style of

living.

Even the domestic marketers in the FMCG sector have made headway in

exploring the rural markets. Being local trader they know the pulse of the rural

consumer and through their already existing network they are tapping the rural market

and have made their presence felt by the MNCs.

30

In the beginning a new Mall outlets for variety of FMCG as well as Consumer

Durable Goods have been started in the metropolitan and urban areas. Gradually a few

domestic big players followed their suit in the relatively big towns. Initially the

retailers were worried about the entry of the Malls in the metros and towns but now

after a considerable time, when we look back it is observed that the malls culture did

not receive expected success. Only in metros where there is concentration of the

highly paid white collar class the malls are functioning. Number of malls are now

being closed because they turned out to be non viable.

There is additional dimension for this new marketing outlet. Now in metros

and cities the online marketing management has made headway. E.g. amazon.com,

flickpart.com, etc. These online marketing has specially vitiated the consumer durable

market to a great extent. These companies offer attractive discount on the branded

products and hence the local dealers of these products find it difficult to push through

their sales.

There is no distinction of the impact of globalization on the rural and urban

markets. The only difference is that in the rural markets the impact is rather slow. The

agriculturists, youth and women are the target groups of the rural market segment.

The rural youth are now using cell phones to keep them abreast of the global markets.

This helps them to formulate their own strategies. So far as rural women are

concerned socio-economic aspects make an impact. Therefore, in order to achieve

success in rural marketing the FMCG marketers should develop their strategies which

will ensure fine tuning with understanding the rural customer.

After adoption of the globalization policy the inflow of foreign direct

investment in various sectors has been welcomed by the Indian govt. And the retail

trade is not an exception to it. Therefore number of market players has come to India.

This development has further strengthened the pace of the growth of the rural

marketing.

31

1.18 FUTURE PROSPECTS

Now the Indian banks are planning to set up Any Time Money (ATMs) in the

rural area which will dispense even small denomination currency. Banks are in the

processing getting the appropriate technology developed and it is hoped that in the

very near future we will have ATMs in the rural area which will sort out the cash

availability problem. The Confederation of Indian Industry (CII) has decided to

establish incubation centre for the new start ups in smaller towns. This move will

enable the new entrants in the market some sort of support and guidance for

stabilization of their activity.

By establishing a massive network of the Towers in the interior parts of India

the telecommunication services are being strengthened for the service providers. Now

there is a significant penetration of the smart telephones with number of apps can be

down loaded on it which will facilitate the marketing information as well as will help

in creating awareness of the new products that will come in the market. Already the

rural youth are using social network sites and their strength will further grow in times

to come. With the educated rural youths and the availability of the smart phones with

various applications, the online marketing is getting momentum even in the rural

areas. The online marketing companies have now started giving an option without any

additional cost to change the product delivered to them if it does not meet the

consumer‟s expectation. Of course this will be more relevant with the Consumer

Durable Goods.

The world famous market research organization Nielsen has estimated that the

Indian rural market segment will reach a fabulous figure of US 100 billion by 2025.

They have also estimated that real income per house hold will record rise to 3.6 per

cent by 2025 from the current about 2.8 per cent during the past two decades. 10

According to the well known demographers the Indian population will be

about 1.450 billion and it will overtake China by 2030. As the FMCG‟s market

10

http://www.nielsen.com/content/dam/corporate/india/reports/2012/Emerging%20Consumer%20Dema

nd%20%E2%80%93%20Rise%20of%20the%20Small%20Town%20Indian.pdf visited on the 29th

August 2016 at 12 noon.

32

potential is directly related to the population growth the rural market offers a huge

potential in times to come.

In the ensuing two decades because of the increased education level, and

availability of disposable income and increased awareness amongst the rural masses,

the rural marketing growth is poised to reach newer heights.

1.19 SUMMARY

This chapter introduces the research topic. It includes right from the

emergence of the marketing, its contribution to the Indian economy, and the various

concepts which are related to the marketing activity. The concepts like FMCG,

consumer, rural market etc. have been discussed in this chapter. The rural market

segment is currently undergoing transformation at a fast speed. Spread of education,

increased purchasing power of the villagers, awareness about the products have forced

the marketing organizations to devise new strategies specifically addressed to the

Rural market. Without sacrificing the quality of the products, they are trying to cut

the costs, using packaging like sachets which increases the affordability of the rural

consumer. This chapter also introduces about the impact of the globalization on the

rural marketing and finally it also discusses the future of the FMCG market in the

rural area.

With the increased developmental expenditure on the infrastructure, education,

and use of multimedia, launches of Digital India etc. the potential of the rural markets

for FMCG has been boosted up the and there is spectacular growth of the rural

markets.

The Indian retail market is very much competitive. Entry is open and both the

domestic and the foreign players. Due to the voluminous size of India it is not

possible for any particular player to cover / dominate the entire nation wide market.

The Indian FMCGs like Godrej Consumer Products Ltd. and Dabur have improved

their market share because of their penetration in the rural India. The MNCs are all

out to cover this fast developing rural marketing segment for which they have

changed their marketing strategies keeping the rural customer in focus.

33

CHAPTER – II

RESEARCH METHODOLOGY

2.1 INTRODUCTION

As of the 2011 Indian population census 68.84 percent of the population

resides in the rural area. Their principle occupation is agriculture and allied activities.

Over the years knowing full well the contribution of the rural economy to the total

Indian economy, the Govt. of India has right from the beginning of the Five Year

Planning has given due importance to the rural development. Today we are seeing the

fruits of these efforts in increase in the literacy level of both the genders; this was

possible because of the availability of the schools and colleges even in the interior

part of India. The digital media which has fast spread through the length and breadth

of India has also contributed to educate the rural masses about the various products

and services that can change their life style. As the maxim goes, “seeing is believing‟

the rural people can see the products and also come to know the feedback given by the

users of these products which make them believe in the utility and superiority of these

products. The government has also been successful in creating awareness about the

health care and has also provided rural healthcare infrastructure in the rural areas

thereby there is a lot of improvement of the rural masses on the health front. This is

also due to the fact that the govt. has also targeted provision of clean drinking water

availability in the rural area and has made a commendable progress. Even in the

agriculture sector the govt. has made conscious efforts to increase the irrigation

potential so as to reduce the dependence of agriculture on the vagaries of monsoon.

This has paid good dividend to the agriculturists. These governmental efforts on the

various developmental fronts are in full swing and one can certainly hope that in times

to come there will be a lot of improvement in the rural area.

Of late the rural marketing scenario has undergone a sea change. The various

govt. measures in improvement of the rural sector has resulted into increased income

of the agriculturists thereby the purchasing power of this class has been stepped up.

The educational standard has improved and this has helped in creating awareness

about the various health care options available. On the communication front there is

good improvement and the village connectivity has increased and all weather roads

34

network has been increased. This has brought the villages and the urban and semi

urban areas very close. This exposure has introduced the rural people about the

various branded products which have better quality and therefore the rural masses

have also gradually switching on the branded products or the quality products and

services.

2.2 STATEMENT OF PROBLEM

Particularly after 1991, when the Govt. of India set out for the economic and

financial reforms and adopted the policy of liberalization, privatization and

globalization, the Indian having vast marketing potential because of its demographic

size and the presence of developing rural market, it has attracted the attention of the

global players and number of multinational companies in healthcare sector have been

establishing their presence in the Indian market.

This has resulted in number of market research as to which products, with

what market strategies can be introduced in the ever growing rural market and ensure

the penetration in this market segment. This large size domestic and the global

marketing players have realized the fact that in order to tap the rural market they will

have to adopt a strategy which will be different from the urban and metropolitan

marketing. Number of factors these companies will have to be taken into account

while formulating the rural marketing strategy. This exercise has been taken by these

companies about two decades back and now the time is ripe to have a research study

about the success or failure of these strategies.

2.3 SIGNIFICANCE OF STUDY

As stated above the rural markets have now grown up. Taking into account the

size of the Indian rural market, it is a difficult task to develop such a huge diverse

market and make headway in it. The diversity is a factor which has to be taken into

account while penetrating in the rural market. People‟s choices differ, the climatic

conditions differ, socio-economic conditions are different, there is regional imbalance

in the development of various regions, all this factors are vital in formulating the rural

marketing strategies. Needless to say that the companies must have taken into account

all these factors. This research aims to study how far these strategies have made

35

inroads in the rural area and what is the current trend and what are its prospects in

times to come. Therefore, the researcher is of the considered view that this research

study has significance.

2.4 OBJECTIVES OF THE STUDY

The researcher being a foreigner in India, he got himself exposed to the rural

Indian environment by paying visits to few villages in and around Pune Metropolitan

city and got the feel of the rural market. This has helped him to formulate the research

objectives which have been outlined hereunder. These objectives form the basis of

this research.

1. To study the current rural marketing scenario.

2. To study the rural marketing strategies of Hindustan Unilever Ltd. in

pushing their fast moving consumer goods.

3. To study the buying behavior of the rural consumer.

4. Based on this research to suggest remedial approaches to the rural

marketing.

Justification of the Objectives

In order to remain in business every business has to ensure that it is taking

note of the various changes that occur in our environment. Marketing is not an

exception to it. Today we live in dynamic conditions. Day in and day out there are

changes because of the technological advancement. To site an example of this is the

recent introduction of malls in urban and semi urban centres. The presentation of the

products in the malls and the packaging and the service thereat totally differs from the

traditional approach to the marketing. The advertizing campaigns these malls are

definitely catchy and attract the Indians for visiting it. The customer who is also a

sufferer of dynamic life, finds very little time to run here and there and instead he

prefers visit to mall where cross section of his/her needs are met. This customer is

having improved purchasing power which facilitates in visiting the malls. Because of

the spread of education including computer education in the interior parts, number of

IT professionals come from the rural area and now settling in a place like Pune

because of the availability of good employment. These IT professionals also visit their

36

natives and spread the information about the newer products available in the market

which are superior to the one which are available in the rural area.

The marketing organizations both domestic and multinational are pursuing

their rural market strategies for over two decades and trying to increase their market

share in the rural area. These efforts have in fact face lifted the rural markets. The

digital media and the smart phones penetration in the rural area has increased

tremendously. The social network has made inroad in the rural area which also help in

creating demand for specific products. Therefore, the researcher felt that there is an

urgent need to study the present status of the rural market.

The Hindustan Unilever Ltd. (HUL) is a multinational company which has its

presence in India for quite some time and its product range is also quite large which

has demand from every nook and corner of the village. This company‟s toiletries,

health care products are known to the Indian population for a long time. The company

is one of the leading company which has a good presence in the rural market. HUL is

the front runner in introducing rural marketing strategy and implementing it over a

period of time. This has prompted this researcher to study the impact of the HUL‟s

rural marketing strategy.

It has been also observed by the researcher that the behavior of the rural

consumer has also changed a lot and is also constantly updating the new changes that

are coming up in the market. The market knowledge, purchasing power, awareness of

the newer products all these aspects have changed over the last two decades.

Therefore, the researcher felt that the study of consumer behavior also needs to be

studied in the new perspective.

Therefore, the researcher felt that the objectives given herein above which

have been set out by this researcher are quite justified.

37

2.5 RESEARCH HYPOTHESES

As has been stated in the earlier writings the researcher visited the rural

markets in the adjacent villages of Pune Metropolitan city and got himself acquainted

with the current scenario threat. He had interaction with a few shop keepers who are

now stocking branded items along with the traditional items of day to day

consumption of the residents of those villages. With the introduction of economic

reforms and the adoption of globalization policy the entire marketing perspective has

undergone a sea change. Now Indian govt. has opened up its economy and has not

only welcomed but consciously invited the Foreign Direct Investment even in the

retail sector. Therefore, number of multinational companies is now establishing their

units/offices etc. in India. It has greatly influenced the marketing scenario over the

past two decades. Gradually change is taking place in the rural markets. A bird‟s eye

view of these changes has resulted in formulation of the following hypotheses:

H1 With the changes in technology and government‟s policies of liberalization,

privatization and globalization the Indian rural markets have been opened up

and present a vast marketing potential for the fast moving consumer goods.

H2 Rural markets are growing fast for the fast moving consumer goods.

H3

The developments in the field of education, digital media, communication,

irrigation and other improvements in agriculture, have great bearing on the

growth of the marketing of FMCG in rural markets.

Justification for the Hypotheses

Once the Indian Govt. signed the World Trade Order (WTO) Pact, India has

opened up its market to the entire world. It is bound by the rules and regulations

framed by the WTO so far as international trade are concerned. Accordingly India has

gradually in a phased manner opened its doors for the foreign players which resulted

in the stiff competition to the domestic players. The foreign players in various field

made their entry in the Indian market claiming advantage of the technologically

advanced products. The products are by and large of good quality and the Indian

masses also welcomed these products. Number of newer products in the Indian fast

moving consumer segment was introduced. The penetration is so much, that in the

semi urban areas also fruits from the overseas markets are available in India. During

38

the past two decades the Indian govt. has heavily invested in the development of

infrastructure in the rural area and the rural socio-economic environment has been

considerably improved. According to the latest 2011 population census 68.84 per cent

of the Indian population resides in the villages (rural area) and this rural market was

by and large untapped for the branded fast moving consumer goods. Because of the

infrastructural development that has taken place during the past two decades the rural

markets are now picking up for branded FMCG. Based on his perception of the

current rural marketing scenario the hypothesis No. H1 is fully justified.

In the past because of the literacy and education level, low purchasing power

as a result of unpredictable agricultural income and the unavailability of the all

weather roads, the rural masses were purchasing fast moving consumer goods which

are produced in the unorganized sector. Hardly they use to buy branded goods like

toilet soaps, tooth pastes, face powders, etc. However, now the situation on all these

fronts has positively changed which has given rise to the entry of branded goods of

good quality in the rural markets and their sales are picking up. On this backdrop the

hypothesis No.H2 is justified.

A review of the infrastructural developments during the past two decades on

all those fronts which have been explained in the earlier paragraph paved the way for

the entry of the branded FMCGs in the rural market. The increased irrigation potential

has resulted in assured water supply for the agriculture. This enabled the agriculturists

to cultivate cash crops as also the yield of the other crops has resulted in substantial

increase. This increased yield and the cash crop led to the increase in the agriculture

income of the agriculturists. This has improved the purchasing power of the

agriculturists. Moreover because of the spread of education in the interior parts of the

district the villagers are aware of the availability of the quality products. The

television facility has been now very well penetrated in the rural sector. The television

media enables the marketing companies to release their advertisement and can

educate the customers about their products and also provide feedback from the users

which impress the prospective buyers. Therefore, these developments have influenced

the growth of the FMCG in the rural area. This information justifies the hypothesis

No. H3.

39

2.6 RESEARCH METHODOLOGY

A) Research Universe

The research universe for this research has been 8 Talukas out of 14

talukas of Pune District. These 8 talukas are selected on the basis that

they are contagious to the Pune metropolitan city which is also a

district headquarter. These talukas also present a cross section of

developed and underdeveloped talukas of Pune district.

B) Nature / type of this Research:

This research is based on combination of both primary and secondary

data.

C) Data Sources: Primary

Primary data has been collected from randomly selected villagers from

the 8 identified talukas. The list of talukas and identified villages is

given at 2.E.

D) Secondary: Published data through Annual Reports

Secondary data has been collected from the books, reports, articles in

journals, previous research papers, and the annual reports of the HUL,

interaction with the marketing executives of the company as well as

few interviews of the shop owners from the identified villages who

market these HUL products.

E) Sample Selection and Sample size

On the basis of the village wise population data available from the

2011 population census of India, the villages from the identified 8

talukas have been randomly selected. However, even in selecting the

villages a care has been taken to identify the villages on the basis of

population. The villages were categorized in two classes 1) having

more than 5000 population and 2) having less than 5000 population.

This criteria was applied so as to ensure that there should be at least 4-

5 provision stores, a medical shop etc. because these shops are the

40

sellers of these FMCGs. A list of the taluka wise and village wise

identified has been given hereunder.

Table 2.1: Identified study area

Sr.

No.

Name of

Taluka

Names of the

villages

Population as

per 2011 census

Total Literacy

Male Female Male Female

1 Bhor Velu 2177 2079 4256 1707 1394

Kelawade 1513 1375 2888 1250 985

2 Daund Pargaon 4265 3968 8253 3268 2584

Kedgaon Station 3219 3135 6354 2586 2368

3 Khed Wada 2778 2745 5523 778 555

Naiphad 1061 1017 2078 2152 1686

4 Mavel Vadeshwar 1129 1102 2231 848 627

Takave Bk. 2188 1955 4143 1615 1157

5 Mulshi Man 4043 3484 7527 2926 2139

Ghotavade 1175 1105 2280 875 693

6 Purandar Garade 2220 2161 4381 1776 1374

Mavadi Supe 1600 1575 3175 1266 1000

7 Shirur Kendur 2440 2424 4864 1882 1501

Karandi 2711 2537 5248 2096 1646

8 Velhe Panshet 838 732 1570 696 533

Rule 794 756 1550 579 397

Total 34151 32150 66321 26300 20639

(Source: 2011 census data of Pune District available at District Statistical Handbook 2011. )

As regards selecting the number of primary respondents, this exercise was

again taken up using random selection from both genders, and literate and illiterate

and also the age group of the rural residents. Keeping in view the fact that the sample

should be representative in nature, the researcher has selected 25 respondents from

each village. That means in all 400 respondents representing the purchasers have been

selected. The following table details of the identified respondents village wise.

41

Table 2.2: Village wise Number of Identified respondents

Sr.

No.

Name of

Taluka

Names of the

villages

No. of

Respondents

Total Age group

Male Female Between

15-40

Over

40

years

1 Bhor Velu 15 10 25 20 5

Kelawade 15 10 25 16 9

2 Daund Pargaon 15 10 25 15 10

Kedgaon Station 15 10 25 18 7

3 Khed Wada 15 10 25 20 5

Naiphad 15 10 25 10 15

4 Mavel Vadeshwar 15 10 25 8 17

Takave Bk. 15 10 25 15 10

5 Mulshi Man 15 10 25 15 10

Ghotavade 15 10 25 8 17

6 Purandar Garade 15 10 25 10 15

Mavadi Supe 15 10 25 6 19

7 Shirur Kendur 15 10 25 15 10

Karandi 15 10 25 8 17

8 Velhe Panshet 15 10 25 12 13

Rule 15 10 25 14 11

Total 240 160 400 210 190

So far as selecting the provision shops and medical shops for interviewing the

shop owners it was decided to cover all the medical shops and minimum of two and

maximum of three provision shops each of the village. Thus the number of shop

owners interviewed came to about 35. A few of the identified village were not having

medical shop in the village and hence the number is marginally reduced. The

identified sample has been presented in the following table:

For this purpose the village wise infrastructure available was also studied and

the same has been presented hereunder:

42

Table 2.3: Village wise identified businessmen respondents

Sr.

No.

Name of

Taluka

Names of

the villages

Medical

shop

owner

Kirana

shop

Owners

General

stores

1 Bhor Velu 1 1 1

Kelawade 1 1 1

2 Daund Pargaon 1 1 1

Kedgaon

Station

2 1 1

3 Khed Wada 1 2 1

Naiphad 1 1 1

4 Mavel Vadeshwar 1 1 1

Takave Bk. 1 1 1

5 Mulshi Man 2 1 1

Ghotavade 1 1 1

6 Purandar Garade 1 1 1

Mavadi

Supe

1 1 1

7 Shirur Kendur 1 1 1

Karandi 1 1 1

8 Velhe Panshet 1 1 1

Rule 0 1 1

Total 17 17 16

So far as the area under irrigation is concerned it has been observed that the

data available is of 2001-02. The irrigated area in a block indicates that the agriculture

is not dependent on the vagaries of monsoon and hence the agricultural income is

more. More the agricultural income, it will have impact on the purchasing power of

the rural masses. Therefore, the following data throws light on the gross land holding

as well as land under irrigation.

43

Table 2.4: Total land holding and dry and irrigated land of the identified

Talukas

Area in Ha.

Sr.

No.

Name of Taluka Total gross

cultivated area

Irrigated

land

1 Bhor 48124 6976

2 Daund 115469 49150

3 Khed 105152 26754

4 Mavel 68920 3746

5 Mulshi 44437 312

6 Purandar 89100 14577

7 Shirur 131248 23733

8 Velhe 23881 1997

Total 626331 127245

(Source: Agriculture Commissioner‟s Office, Pune)

At the time of visits to the identified villages, during the course of interaction

it was transpired that subsequent to the year 2002 there has been increase in the

irrigated land in the entire Talukas. In the absence of the fresh survey this latest figure

of the land under irrigation could not be incorporated.

F) Temporal Scope

The temporal scope of this research covered is : Financial years .

2010-2015

G) Means of Collecting the Primary Data:

In order to collect the primary data from the identified respondents, a

well designed questionnaire had been prepared and the same was

finalized on administering it on 5 different respondents representing a

cross section of the respondents identified. The same has been refined

and then administered on the rest of the respondents. As the

respondents are villagers and may not been able to answer a

questionnaire in English medium, it was translated in the regional

44

language i.e. Marathi. As the researcher is being an Iranian national,

and unaware of the local language he had sought assistance from a

local colleague student pursuing research study on a different topic.

As far as the interview of the shop keepers is concerned the research

scholar had prepared a well designed questionnaire and administered

the same in the study area. In order to understand the HUL‟s policy for

rural marketing the company‟s executive based in Pune have been

interviewed in person with the help of already jotted down points and

the discussion in it is also forming base for drawing observations and

conclusions.

The financial data of the company representing the sales during the

study period has been obtained from the company‟s published annual

financial reports of the respective years available on the Internet site.

H) Data Analysis and Presentation

Data collected from the primary and secondary sources has been

presented by using appropriate tables, and using the relevant aspects to

understand the data in right perspective.

I) Statistical Tools used

The following statistical tools have been used:-

Percentage- This is a special kind of ratio which will be used to

compare variables. Percentages will be used to condense data and

express in relation to 100.

Frequency- This technique is used for giving the meaning and

compare between the variables.

Correlation- This tool will be used to know the relationship between

the variables. That is the effect of change in one variable on another

variable. There are two types of correlation coefficients as Pearson

correlation and spearman‟s rank correlation. Researcher has used both

45

the Pearson correlation coefficient and spearman‟s rank correlation

coefficient.

Diagrams and Graphs- The diagrams and graphs will be used as an

aid in interpretation of data and drawing conclusions.

Averages- This statistical method is often necessary to represent a set

of data in terms of one single number that should neither represent the

lower nor the highest value but a value in between the highest and the

lowest value.

Chi-Square Test- This test is used for the knowing the association

between the variables specifically with the nominal data variables.

Test of independence of attributes:-

(m x n contingents table)

Suppose that the given data are classified in to m levels of Attribute

A denoted by A1, A2 ……Am and n levels of attribute B denoted by

B1, B2……..Bn. Then different class frequencies can be

represented in the following tabular from.

A/B B1 B2 …… Bj …… Bn Total

A1 O11 O12 …… O1j …… O1n (A1)

A2 O21 O22 …… O2j …… O2n (A2)

.

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.

Ai Oi1 Oi2 …… Oij …… Oin (Ai)

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Am Om1 Om2 …… Omj …… Omn (Am)

Total (A1) Oi1 (B2) (Bj) …… (Bn) N

Above table containing m rows and n columns is called m x n

contingency table.

46

Where, Oij is observed frequency corresponding to (i, j)th

cell.

21 21

m n

i i

N Oij = Total frequency i = 1, 2, ----- m and

j = 1, 2, ----- n

Ri = (Ai) = 21

m

ij

j

O = Total observed frequency in the ith

row.

Cj = (Bj) = m

ij

i 1

O

= Total observed frequency in the jth

column.

Under Ho: Two Attributes A and B are independent.

The expected cell frequency for (i, j)th

cell is calculated as,

i j

ij

R xCE ,

N for i = 1, 2, ---- m

j = 1, 2, ---- n

Test Procedure:

Step 1:

Set up the null and alternative Hypothesis :

H0: Two Attributes A and B are independent ( no association)

H1: Two Attributes A and B are dependent (association)

Step 2:

Fix the level of significance .

Step 3:

Compute the calculated value of test statistic.

2m n

ij ij2

cal

i 1 j 1 ij

O EX

E

2m n

ij

i 1 j 1 ij

ON

E

Step 4:

Compare the calculated and critical value (table value) of test statistic.

2 2

criticalvalue (m 1)x(n 1),X X

If

2 2

criticalvalue (m 1)x(n 1),X X then reject Ho at % otherwise accept

it.

47

Step 5:-

Write the appropriate conclusion

2.7 SCOPE OF THE STUDY

As the rural market is in its infant stage of growing it offers a good scope for

the research. The market is in developing stage. The scope of the research is covering

fast moving consumer goods which are required by the respondents to meet their day-

to-day requirements. The number of goods usually required is quite heavy. The

products selected for this study are the branded products which are marketed by

domestic as well as multinational marketing companies. As the Hindustan Unilever

Ltd. is established in India much earlier and has a wide range of branded fast moving

consumer goods in its product kitty the researcher has preferred to study this

company‟s marketing strategies and its impact on its penetration and knowing its

market share to the extent possible.

2.8 LIMITATIONS OF THE STUDY

India is a vast country and predominantly dominated by the rural area. It has

diverse stages of development. There is a regional imbalance in the socio-economic

development of the various districts. The Pune district chosen for this research has

also mixed level of development. Due to the financial and manual and language

constraints the sample chosen cannot be called a representative if we refer it to all

India basis. Therefore, the observations and conclusions drawn in this research cannot

be applied to all the rural markets in toto, but those will have to be suitably modified

keeping the stage of socio-economic development of the district. The respondents are

also bit shy in furnishing the information and instead of giving information to the

point just give robust information which was required to be refined. To this extent the

research offered the limitations.

48

2.9 CHAPTER SCHEME

The thesis has been presented in the following 6 chapters:

CHAPTER I – INTRODUCTION

This chapter has covered the introduction of the research topic. Broadly the

points covered are : Indian economy, emergence of fast moving consumer goods,

India‟s demographic scenario, historical perspective of marketing, New age rural

consumer, Growth of the middle class, Changed rural scenario, Conceptual frame

work, Rural consumer behavior, Rural marketing mix-challenges, Promising Rural

Consumer, Rural marketing segmentation, overall Indian rural market, product

branding – a new dimension in rural area, packaging in rural markets, pricing

strategies, distribution channels, impact of globalization on the FMCG in rural

markets and future prospects.

CHAPTER II – RESEARCH METHODOLOGY

In this chapter the researcher has presented the statement of problem,

significance of the research, objectives of research and its justification, hypotheses

and its justification, research methodology which covered : research universe, nature

of research, data sources, sample selection and sample size, questionnaire, data

collection and analysis, statistical tools used for analysis of the data, scope of

research, limitations of the research and chapter scheme of the thesis.

CHAPTER III – REVIEW OF LITERATURE

In this chapter the researcher has reviewed the various literatures relating to

his topic of research. For this purpose he has reviewed the previous research through

research papers presented by various scholars, books, articles in journals and

periodicals, news paper reports and websites. He has also presented knowledge gained

as well as research gap observed.

CHAPTER IV – PROFILE OF THE STUDY AREA PUNE DIST. PROFILE

AND HINDUSTAN UNILEVER LTD.

In this chapter the researcher has presented broad profile of the study area that

is the Pune district and the eight identified talukas, as well as the profile of the

49

identified company i.e. Hindustan Unilever Ltd. This chapter enables the reader to

understand the observations and suggestion offered in right perspective.

CHAPTER V – DATA PRESENTATION AND ANALYSIS

This chapter presents the primary data collected using various tables and

graphical presentation and has also given the rationale of the data collected. This

chapter also covers the validation of the data.

CHAPTER VI – OBSERVATIONS, SUGGESTIONS, & CONCLUSION

Based on the data analyzed and its interpretation, the researcher has presented

his observations and has also offered a few suggestions that occurred to him. The

researcher has also dealt with the scope for further research and has offered

conclusion.

50

CHAPTER – III

REVIEW OF LITERATURE

3.1 INTRODUCTION

At the time of formulation of the research proposal the researcher had gone

through literature from books, research papers in order to get himself equipped with

the basic knowledge of the research topic proposed. Now once the research proposal

was approved, in order to have thorough knowledge about the topic of research, the

researcher considered appropriate to go through the relevant literature. For this

purpose the researcher referred to the earlier Ph. D. theses available on the websites,

research papers, books, journals and periodicals, news paper articles etc. and got

himself thoroughly acquainted with the research topic. These reviews are presented in

this chapter chronologically.

Thus this researcher has reviewed categories following literature:

Sr. No. Category No. of items reviewed

1 Dissertation 1

2 Research Papers 11

3 Books 14

4 Journals and Periodicals 71

5 News Paper Articles 8

6 Web sites 3

Total 108

3.2 PREVIOUS RESEARCH

DISSERTATIONS

1. Rupani Santosh, (2011), dissertation titled, “A dissertation report to analyze

the marketing of consumer products (both durable and non durable products) in rural

areas.” The researcher has concluded that the rural markets in India offer challenges

and opportunities for those who under the dynamics of rural market and exploit them

to their best. There is need to change in the mind set and attitude of the marketers to

the vibrant and burgeoning rural markets. As compared to the urban markets the size

of the rural market is quite large and needs a different strategy for it. The rural

51

consumer expects quality product which is long lasting, easy to use and also has

cheaper price stag. Because of the low price expectation the sale of the sachet package

is substantially large in the rural segment. It is true that the margin of profit in the

F.M.C.G. segment in the rural market is low but the turnover and the magnitude

makes the whole difference. The companies can cut packaging costs considerably as

their expectations are not as high as that of the urban consumers.

RESEARCH PAPERS

1. Shukla Priteshkumar Y. 201311

research paper titled, “A study on Rural

Marketing Strategy – with Special Emphasis on Selected Customer Preferences for

Hindustan Unilever Limited‟s (HUL) selected products in Valsad District.” The

author has concluded that, there are different factors like Price of the product, variety

in size of the product, main sources of the product knowledge, advertisement, which

plays an important role in rural buying decision. Moreover that it can be said that

majority of the respondents are happy with the selected products of HUL. According

to the author it can be said that advertisement plays an important role against spurious

products available in the market. And they preferred more extra quantity in the same

price as favourable promotional scheme.

2. Venukumar G., (2012)12

: The author concluded that certain FMCG

companies have to make inroads in the rural markets so as to achieve double digits

growth rate. The current rural market offers a voluminous potential as there is

increase in the purchasing power of the rural masses. He observed that the rural

markets are now emerging markets.

3. Priyadarsini J., (2012)13

in her research paper she has stressed the role of the

rural women in rural marketing. She has cited the Hindustan Unilever‟s Shakti model

and has also given quotation of the Sr. Executive of the HUL which focuses on the

11

Shukla Priteshkumar Y. 2013 research paper titled, “A study on Rural Marketing Strategy – with

Special Emphasis on Selected Customer Preferences for Hindustan Unilever Limited‟s (HUL) selected

products in Valsad District.” PARIPEX-Indian Journal of Research, Vol. 2, Issue 2, February 2013, pp

49-52 12

Venukumar G. (2012). Growth of Indian Rural Market: With reference to FMCG Sector, SAJMMR,

Volume 2, Issue 2, February , 1-10. 253 13

Priyadarsini J. (2012). Patting at the Bottom of the Pyramid Beyond Business Goals: An Empirical

Analysis on Project Shakti, HUL. CRR, (pp. 1-37). 254

52

strength of the rural women. She has stated HUL‟s model has achieved a grand

success in the East Godavari District. According to her women are change setters in

the rural marketing set up.

4. Wath M. and Agarwal P. (2011)14

according to the author the urban markets

are having stiff competition for many products. In regard to some products the market

is saturated. Rural markets are offering growth potential. The marketers should

understand the rural consumer before going ahead. The rural markets are fast

expanding. The authors observed that the rural market offers numerous challenges.

5. Mr. Ashish Gupta; Mr. Mayank Yadav, (2011)15

, paper titled, “Paradigm

Shift of the Indian market: Growth of Retail Market in India”. In this paper the

authors have observed that the profile of Indian consumer and their consumption

pattern has undergone a sea change. Retail sector has a growth potential in India and

attracting Foreign Direct Investment. They have further observed that there is a

strategic change in behavior and expectations of Indian consumer. Their aspiration for

a better life have increased. Because of the rise in the income, increase in awareness

about the products and creation of choices the rural consumer has become choosy.

The rural consumer is also now brand conscious. The authors have concluded that the

retail sector has displayed a phenomenal growth in the productivity of consumer

goods and services. The retail industry in India has come forth as one of the most

dynamic and fast paced industries with several players entering the market.

6. Aarti Joshi (2011),16

research paper titled, “Upcoming Trends in Retailing:

Green Retailing/ Eco Friendly Retailing”. In this paper the author has observed that

with the growing realization about the ill-effects of global warming, customers across

the globe are using the companies to come up with eco-friendly alternatives to

manufacturing process. The retailers have also discovered that these “Green

14

Wath M., Agarwal P. (2011). Exploring Indian Rural Market - The Way Ahead.

International Conference on Technology and Business Management, (pp. 750-755). 15

Mr. Ashish Gupta; Mr. Mayank Yadav, (2011), paper titled, “Paradigm Shift of the Indian market:

Growth of Retail Market in India”. Published in Handbook of Management and Behavioural Science”

book edited by Ranbir Singh Gulia, Ombir Singh, Suvijna Awasthi, by Wisdom Publications, Delhi.

Pp. 20-38. 16

Aarti Joshi (2011), research paper titled, “Upcoming Trends in Retailing: Green Retailing/ Eco

Friendly Retailing”. Published in Handbook of Management and Behavioural Science” book edited by

Ranbir Singh Gulia, Ombir Singh, Suvijna Awasthi, by Wisdom Publications, Delhi. Pp. 29-33.

53

initiatives” are in turn leading them to identify cost-effective ways of doing their

business. She has stated that there are many specialist stores that sell green products.

Whole food and natural living stores often sell an extensive range of eco-friendly

products. Eco-friendly clothing can be as stylish and fashionable as conventionally

produced clothes. Environmentally friendly detergents and other household products

are featured alongside conventional products. Brands such as E-cover are widely

known.

7. Gagadeep Singh,Rohit Kumar (2011),17

research paper titled, “Rural

Marketing : Road Ahead for India”. The authors have discussed the forms of rural

marketing, characteristics of rural markets, challenges in rural marketing, steps

needed to be taken to effectively making rural marketing, While concluding the

authors have observed that the rural markets offer to the marketers vast opportunities

who have understood the dynamics of rural markets and exploit them to their best

advantage. Because of the time consuming aspect it is not an easy task. Rural markets

in India has great potential waiting to be tapped. This will take a long way to establish

their products in the rural markets.

8. Dr. Mohd. Afaq Khan, S. Aijaz Ahmad, (2011)18

, paper titled, “Consumer

Decision-Making Styles: A Comparative study of Male and Female Customers in

India”. The authors have observed that the social and economic status of woman has

now improved. Women go for higher education and are found working together with

the men in most of the organizations. The life style of the Indian woman has changed

which has an influence on the consumption pattern and decision making styles. Males

have shown a higher degree of association with perfectionist/High Quality conscious

consumer, promotion conscious consumer, brand conscious consumer, impulsive

careless consumer, habitual brand loyal consumer and Store Loyal consumer styles

where as a higher degree of association has been shown by the females towards

17

Gagadeep Singh, Rohit Kumar (2011), research paper titled, “Rural Marketing : Road Ahead for

India”. Published in Handbook of Management and Behavioural Science” book edited by Ranbir Singh

Gulia, Ombir Singh, Suvijna Awasthi, by Wisdom Publications, Delhi. Pp. 34-40. 18

Dr. Mohd. Afaq Khan, S. Aijaz Ahmad, (2011), paper titled, “Consumer Decision-Making Styles: A

Comparative study of Male and Female Customers in India”. Published in Handbook of Management

and Behavioural Science” book edited by Ranbir Singh Gulia, Ombir Singh, Suvijna Awasthi, by

Wisdom Publications, Delhi. Pp. 75-83.

54

novelty, fashion conscious consumer, health conscious consumer, price conscious

consumer, recreational choice seeking and confused by over choice consumer traits.

9. Srinvasrao G. (2002)19

he observed that the Indian rural market has now

offered a great potential due to its demographic strength. As the rural market was not

exposed to a variety of new products in the past, it is a very lucrative market and lots

of products which can increase the life style of the rural masses can be pumped in.

Now the rural markets are having availability of variety of products which are

available in the urban counterpart.

10. Jonathan R., (1998)20

, observed that the Indian rural areas are fast developing

on the socio-economic front. Non farm sector activities are on increase and relatively

the agriculture has gradually reduced its importance. The shift from agriculture

activity to either industry or services activity has changed positively their income

level as well as approach to the life style. Now they are willing to pay for the quality

products, even for the branded goods. Educational level has also improved and

thereby awareness about the alternative products has also increased. The paper has

discussed the impact of this change on the agriculture and the changes in the rural life

style that are offing.

11. Brannon and Anderson L. (1996)21

the authors studied the relative position

of hometown merchants, as compared to other shopping alternatives, in the minds of

rural consumers. The study revealed that the merchants in the rural area are stocking

new products from the urban retailer as there was no availability from the F.M.C.G.

companies directly. They have further observed that the F.M.C.G. is now considering

to step in the rural market as it is untapped market till then.

19

Srinvasrao G. (2002). Rural Marketing in India- A Case Study. Anmol Publication P. Ltd. 20

Jonathan R. (1998). Rural - Urban Interactions, Agriculture and Wealth a Southeast Asian

Perspective. Progress in Human Geography, Vol. 22, No.4 , 497-522. 21

Brannon, Anderson L ,(1996). Consumer Insight Can Help Rural Retailers Increase

Profits. Alabama Agriculture Experiments Stations.

55

3. 3 BOOKS

1. Pankaj Madan, Amit Mittal, Hemraj Verma, 201522

, book titled

“Marketing Management”. In this book at chapter 21 the topic Rural Marketing has

been discussed. The authors have given a brief account of the rural marketing and

have introduced to the special features of the rural marketing. While discussing

significance of the rural markets the authors have observed the following aspects:

1. Increase in population and hence increase in demand. The rural population

in 1971 was 42 crores which increased to 52.50 crores in 1981 to 61.10

crores in 1991 and 73.6 crores in 2001.

2. A marked increase in the rural income due to agrarian prosperity.

3. Large inflow of investment for rural development programmes from

government and other sources.

4. Increased contact of rural people with their urban counterparts due to

development of transport and communication network.

5. Increase in literacy and educational level and resultant inclination to

sophisticated lives by the rural folks.

6. Inflow of foreign remittances and foreign made goods into rural areas.

7. Change in the land tenure system causing a structural change in the

ownership patterns and consequent changes in the buying behavior.

2. Dr. Rais Ahmad (Editor), 2013, Book titled, “Agriculture and Rural

marketing”.23

The book has apart from all other aspects related to the agriculture and

rural marketing have discussed about the challenges posed by the rural markets in the

following words:

Underdeveloped people and underdeveloped market;

a) Lack of proper physical communication facilities;

b) Media for rural communications;

c) Many language and Dialects;

d) Vastness and uneven spread;

e) Low per capita Income;

22

Pankaj Madan, Amit Mittal, Hemraj Verma, 2015, book titled “Marketing Management”. published

by Global Academic Publishers & Distributors, New Delhi. 23

Dr. Rais Ahmad (Editor), 2013, Book titled, “Agriculture and Rural marketing”. Published by Regal

Publications, New Delhi.

56

f) Logistics, storage handling and transport;

g) Market organization and staff;

h) Product positioning

i) Hierarchy of markets;

j) Low level of literacy and

k) Seasonal demand

The article concludes that it is true few marketers are taking their strategies for

rural market very seriously. Since the rural view of conventional is actually

nontraditional, there is huge spending on van operations, village haats, wall paintings

that are slicker, stenciled renditions now and so on. Today the MNCs are directly

signing contracts with villages for vantage wall space.

3. Pradeep Kashyap, (2012),24

book titled, “Rural Marketing”. This is a very

nicely written book on rural marketing which exclusively deals with all the aspects of

the rural marketing in greater details. The book has discussed several cases which is

quite useful to understand the conclusions drawn by the authors. The author has

highlighted that the marketer should understand the rural market in its right

perspective. The issues such as population size, age groups, gender dynamics, family

structure, education level, occupation, landholdings pattern and income structure of

the rural masses. The author has nicely described the process of rural consumer

behavior, segmenting and targeting rural markets, product strategy, Pricing strategies,

distribution in rural Markets etc.

4. Philip Kotler, Kevin Lane Kellr, Abraham Koshy, Mithileshwar Jha

2012,25

book titled, “Marketing Management - A South Asian Perspective”. In this

book while discussing the marketing insight, the authors have stressed the need for

developing service offers for rural areas.

24

Pradeeklp Kashyap, (2013) “Rural Marketing”, published by Dorling Kindersley (India) Pvt. Ltd. 25

Philip Kotler, Kevin Lane Kellr, Abraham Koshy, Mithileshwar Jha 2012, book titled, “Marketing

Management - A South Asian Perspective”. Published by Pearson – Delhi.

57

5. Arun Kumar N Meenakshi (2008)26

, book titled, “Marketing Management,

Comprehensive Text, Best Practices, and Corporate insights” In this book the authors

have discussed in chapter 23.9 promotion decisions and 23.10 researching rural

markets. The authors have observed, “the Indian villages are moving away from the

self-sufficient Jajmani system to the normal commercial environment. Marketers can

capitalize on the opportunities resulting from this shift, caused by greater urbanization

and different aspirations. The primary source of rural income is agriculture.

Understanding patterns and dispersion of income, including time of availability of

funds, is thus crucial in understanding purchasing power. Evolution rural market

presents groups of consumers with disparate incomes and aspiration levels. All rural

consumers are not like. The average rural consumer is a reluctant spender. They have

a well established lifestyle patterns that cannot be altered by half hearted efforts of

marketers. Long term investments will pay off. Innovations in product and service

offerings keeping with consumption behavior of rural consumers, for instance their

usage patterns, will present better opportunities of success. While formulating pricing

strategies, payment terms should be decided carefully. For instance, time of payment

of installments, mode of payment must be mindful of uneven distribution of income,

mostly coinciding with harvest. Distribution systems should be evolved in

collaboration with other companies in order to ensure more intensive coverage. Word

of mouth is an extremely important component of rural promotion. Communication

messages that connect with the rural life and its nuances would understand better.”

6. Michael Levy, Barton A. Weitz, Ajay Pandit: (2008)27

: Book titled

“Retailing Management”. The authors have divided this book in five sections. The

first section deals with the World of Retailing in which they have discussed the

introduction to the World of retailing, types of Retailers, multi channel retailing,

customer buying behaviour. Section Two has been devoted to Retailing strategy

which comprises of retail market strategy, financial strategy, retail locations, retail site

location, human resource management, information system and supply chain

management, customer relationship management. The third section covers

Merchandize Management with managing merchandise assortments, merchandize

26

Arun Kumar N. Meenakshi (2008), book titled, “Marketing Management, Comprehensive Text, Best

Practices, and Corporate insights” Vikas Publishing House Pvt. Ltd. 27

Michael Levy, Barton A. Weitz, Ajay Pandit: (2008): Book titled “Retailing Management”.

58

planning system, buying merchandize, retailing pricing, retail communication Mix

etc. Section four has been devoted to Store Management in which they have discussed

managing the store, sore layout, design and visual merchandizing, customer service

and the last chapter that is chapter six provides case studies.

Consumer behavior is defined as the behavior that consumers display in

searching for purchasing, using, evaluating and disposing of products and services

that they expect will satisfy their needs. Consumer behavior focuses on how

individuals make decisions to spend their available resources time, money, effort on

consumption-related items. That includes what they buy, why they buy it, when they

buy it, where they buy it, how often they buy it, how often they use it, how they

evaluate it after the purchase, the impact of such evaluations on future purchases and

how they dispose of it. Consumer behaviour has changed dramatically in the past

decade. Today consumers can order online many customized products ranging from

sneakers to computers.

The core area having relevance to this researcher‟s topic is covered in Chapter

first under the caption “Customer Buying Behaviour”. To satisfy customer needs,

retailers must thoroughly understand how customers make store choices and purchase

decisions and the factors they consider when deciding. This chapter describes the six

stages in the buying process (need recognition, information search, evaluation of

alternatives, and choice of alternatives, purchase, and post purchase evaluation) and

how retailers can influence their customers at each stage.

The importance of the stages depends on the nature of the customer‟s decision.

When decisions are important and risky, the buying process is longer because

customers spend more time and effort on information search and evaluating

alternatives. When buying decisions are less important to customers, they spend little

time in the buying process and their buying behaviour may become habitual.

The consumer‟s personal beliefs, attitudes and the values they cherish and

their social environment has a great bearing on the consumer‟s buying process. The

59

consumer‟s family, reference groups and the society‟s culture are the basic influential

factors.

In order to develop cost effective retail programs, the retailers should be

grouped in to various segments. The parameters on which the consumers‟

segmentation can be made are geographical distribution, demographics, lifestyles,

usages, and benefits sought by the consumers. Each approach has pros and cons.

Usually the retailers define their target segment using different characteristics.

The book has been written in a simple language so as to achieve maximum

understanding. The book is full of illustrations but being the foreign authors the

illustrations are from overseas marketing environment.

7. Tapan K. Panda, (2007)28

, in his book titled “Market Management” has

observed that up till now the rural market has not been explored mainly because of the

low purchasing power as well as availability of efficient communication. The rural is

having poor infrastructure. Besides there is another hurdle of regular income as the

rural income is based on the harvesting of the agricultural produce and its realization.

However, of late the Indian rural market is emerging a viable market because

of the improvement in the infrastructure as well as gradual increase in the purchasing

power of the rural families. Hindustan Unilever has put in operation Bharat, through

which it is trying to improve the penetration of its products in the rural areas. The

multinational FMCGs are encouraging the rural masses for increasing their

consumption. There is one more development which the author has pointed out and it

is relating to the use of Self Help Groups through which Hindustan Unilever is trying

to reach socially backward and vulnerable people in the rural area.

8. Leon G. Schiffman and Leslie Lalzar Kanuk: (2007)29

book titled:

“Consumer behavior” This book has been divided into 4 parts. Part 1 provides the

background and the tools for a strong and comprehensive understanding of customer

behaviour. Chapter I introduces the reader to the study of consumer behaviour, its

28

Tapan K. Panda, (2007), II edition, published by Excel Books, Chapter 7, pp. -151-177 29

Leon G. Schiffman and Leslie Lalzar Kanuk: (2007) Titled: “Consumer behavior”

60

diversity, its development and the role of consumer research, it concludes with a

detailed discussion of ethical considerations in marketing and consumer practices and

introduces a simple model of consumer decision making. Chapter 2 provides a

detailed overview of the critical research process and the techniques associated with

consumer behaviour research, including a discussion of positivist and interpretivist

research methods. Chapter 3 presents a comprehensive examination of market

segmentation and demonstrates how consumer behaviour variables provide both the

conceptual framework and the strategic direction for the practical segmentation of

markets.

Consumer behaviour has changed dramatically in the past decade. Today

consumers can order online many customized products ranging from sneakers to

computers.

Customer value is defined as the ratio between the customer‟s perceived

benefits (economic, functional and psychological) and the resources (monetary, time,

effort, psychological) used to obtain those benefits. Perceived value is relative and

subjective. Customer satisfaction is the individual‟s perception of the performance of

the product or service in relation to his or her expectations. A customer whose

experience falls below expectations will be dissatisfied.

There are primarily three specific but interlocking stages through which the

consumer decision making can be viewed. These are:

1) The Input Stage: In this stage is influenced by the consumer‟s need of a

product, its sources of information, the marketing firm‟s marketing efforts, price of

the product, company‟s promotional efforts, and the sociological influences on the

consumer wherein the family, friends, neighbours, social class and cultural

membership play a pivotal role.

2) The Process Stage: In the stage the consumer‟s decision making style is

highlighted. The factors like, motivation, perception, personality, attitudes play a

great role in the decision making process.

61

3) The Output Stage: The consumer will be guided by trial purchases

whenever a new product which is relatively low cost, and non durable, being

purchased. Only on attaining satisfaction the consumer will go in for repeat purchase.

If the product receives repeat purchases then the company can conclude that the new

product has received consumer‟s acceptance.

The field of consumer research developed as an extension of the field of

marketing research to enable marketers to predict how consumers would react in the

marketplace and to understand the reasons they made the purchase decisions they did.

Market segmentation and diversity are complementary concepts. Nine major

classes of consumer characteristics serve as the most common bases for market

segmentation. These include geographic factors, demographic factors, psychological

factors, psychographic characteristics, socio-cultural variables, use-related

characteristics, use-situation factors, benefits sought and hybrid forms of

segmentation. Important criteria for segmenting markets include identification,

sufficiency, stability and accessibility.

Human needs – consumer needs – are the bases of all modern marketing.

Needs are the essence of the marketing concept. The key to a company‟s survival,

profitability and growth in a highly competitive marketplace is its ability to identify

and satisfy unfulfilled consumer needs better and sooner than the competitors.

Motivation is the driving force within individuals that impels them to action.

Personality can be described as the psychological characteristic that both

determine and reflect how a person responds to his or her environment. Although

personality tends to be consistent and enduring, it may change abruptly in response to

major life events, as well as gradually over time. Each individual has a perceived self-

image (s) as a certain kind of person with certain traits, habits, possessions,

relationships, and ways of behaving. Consumers frequently attempt to perceive

enhance, alter or extend their self-image(s) by purchasing products or services and

shopping at stores they perceive as consistent with their relevant self-image(s) and by

avoiding products and services they perceive are not.

62

Individuals act and react on the basis of their perceptions, not on the basis of

objective reality. For each individual, reality is a totally personal phenomenon, based

on that person‟s needs, wants, values and personal experiences. To the marketer,

consumers‟ perceptions are much more important than their knowledge of objective

reality. Perception is defined as the process by which an individual selects, organizes

and interprets stimuli into a meaningful and coherent picture of the world. Just as

individuals have perceived images of themselves, they also have perceived images of

products and brands. The perceived image of a product or service is probably more

important to its ultimate success than are its actual physical characteristics. Products

and services that are perceived distinctly and favorably have a much better chance of

being purchased than products or services with unclear or unfavorable images.

Consumer learning is the process by which individuals acquire the purchase

and consumption knowledge and experience they apply to future related behavior.

Although some learning is intentional much learning is incidental. Brand equity

refers to the inherent value a brand name has in the marketplace. Brand loyalty

consists of both attitudes and actual behaviors towards a brand and both must be

measured. For marketers, the major reasons for understanding how consumers learn

are to teach them that their brand is the best and to develop brand loyalty.

Communication is the transmission of a message from a sender to a receiver

via a medium (or channel) of transmission. Communications are the link between the

individual and society. Communications are undergoing a vast change. Consumer

receives and is influenced by marketing communications. Media selection depends on

the product, the audience and the advertising objectives of the campaign.

The author has in the tenth chapter discussed the basic concepts of group

dynamics and how reference groups both directly and indirectly influence consumer

behaviour. Almost all individuals regularly interact with other people who directly or

indirectly influence their purchase decisions. Thus, the study of groups and their

impact on the individual is of great importance to marketers concerned with

influencing consumer behaviour. The credibility, attractiveness, and power of

reference group affect the degree of influence it has.

63

Social class is also having a bearing on the consumers‟ purchase decisions.

Social class is defined as the division of members of a society into a hierarchy of

distinct status classes, so that members of each class have relatively the same status

and members of all other classes have either more or less status. Research has

revealed social-class differences in clothing habits, home decoration, and leisure

activities as well as saving, spending and credit habits. Thus, astute marketers tailor

specific product and promotional strategies to each social class targeted segment.

The study of culture is the study of all aspects of a society. It is the language,

knowledge, laws and customs that give that society its distinctive character and

personality. In the context of consumer behavior, culture is defined as the sum total of

learned beliefs, values and customs that serve to regulate the consumer behavior of

members of a particular society. Beliefs and values are guides for consumers

behavior, customs are usual and accepted ways of behavior.

Opinion leadership is the process by which the opinion leader informally

influences the actions or attitudes of others, who may be opinion seekers or merely

opinion recipients. Opinion receivers perceive the opinion leader as a highly credible,

objective source of product information who can help to reduce their search time and

perceived risk.

9. Dr. K. Karunakaran, 200730

, book titled, “Marketing Management (Text and

Cases in Indian Context), the author has very lucidly presented the case studies which

cover both urban and rural marketing. While discussing the cases, he has also

discussed the rural marketing scenario in greater details. He too has observed that the

rural market offers a huge potential because of the infrastructural development that

are taking place in communication, media, education, increase in the purchasing

power etc.

30

Dr. K. Karunakaran, 2007, book titled, “Marketing Management (Text and Cases in Indian Context),

Himalaya Publishing House, Mumbai.

64

10. Rajan Saxena, 200731

, book titled, “Marketing Management”. In this book

the author has discussed the topic “Rural Marketing” in Chapter 30. He has

highlighted the importance of the rural marketing and the increasing competition

between the rural and urban markets. The author has also discussed nature and

characteristics of Rural Market in India, socio/cultural environmental factors affecting

rural markets, behavioural change that is taking place in the rural consumers and

farmers. The author has also stressed that the rural marketing is different than the

urban markets in several aspects especially in regard to packaging size, sturdiness,

product pricing, and best form of refilling as well as sachets packing.

11. Prof. Dr. P. K. Chopra, Bhawna Mehra & Kogent Learning Solutions Inc.

32(2007), book titled, “Marketing Management”. In this book in module 8.7 the author

dwelt upon the rural marketing management. The author has highlighted that the

increased purchasing power of the rural customer has attracted the attention of the

urban marketers. Issues concerning client and location specific promotion, joint

promotion, etc. has also been discussed by the author. The author has also discussed

four A‟s of rural marketing (which has already been covered in one of the reviews).

He has also discussed the scope of rural market and the need for a separate strategy

for the rural marketing. (To avoid repetition those are not mentioned here.)

12. V. S. Ramaswamy, S. Namakumari 200733

, book titled, “marketing

Management, Planning, Implementation & Control”. In this book the authors have

observed that the rural marketing is developmental marketing and F.M.C.G.

companies should develop their strategies to make best use of the potential offered by

it. They have also observed that this rural market is different than the urban market.

The rural consumers buying behavior is also different. The packaging of the product

should be small, and without sacrificing the quality of the product the price should be

low taking into account its affordability in the rural area.

31

Rajan Saxena, 2007, book titled, “Marketing Management”. published by Tata McGraw-Hill

Publishing Company Ltd. New Delhi. 32

Prof. Dr. P. K. Chopra, Bhawna Mehra & Kogent Learning Solutions Inc. (2007), book titled,

“Marketing Management”, published by dreamtech Press, pp 220-233. 33

V. S. Ramaswamy, S. Namakumari 2007, book titled, “marketing Management, Planning,

Implementation & Control” publisher Macmillan India Ltd. Delhi

65

13. Prof. Ravindranath V. Badi & Prof. Narayansa V. Badi 200734

, book titled

“Rural Marketing”. In this book the authors have discussed various aspects of rural

marketing. The important discussion relates to the impact of the World Trade

Organization (WTO) on the export of the agricultural products from India. In this

regard the authors concluded that the Indian farmers and exporters of agricultural

commodities should not be wary of the WTO regulations, but should rather put in

efforts to make the best out of them. They should look at it as an opportunity. Further

they have observed that India would have to bargain hard and muster adequate

support to its stand on issues related to farm trade under WTO. The only way to

protect Indian farmers is through tariffs against unfair, where domestic support and

export subsidies are high.

14. Rajgopal, (1991)35

observed that the rural economy was responsible for the

development of the economy of the developed countries. Therefore, the Govt. of

India has also initiated several steps to increase the purchasing power of the rural

masses which has paved the way for major players in the Rural Markets. The author

has advocated the participative approach to develop the rural marketing on sound

footing.

3.4. JOURNALS & PERIODICALS

1. Prof. Dr. A. Vinayagamoorthy Ph.D., D. Kamatchi (2014) 36

article titled,

“Problems and Prospects of Rural Retail Marketing in India”. Retail industry is the

largest industry in India, with an employment of around 8 % to 10% of the country's

GDP. The author has observed that there were almost twice as many "lower income

households" in rural areas as in urban areas. The growing power of the rural consumer

was forcing big companies to flock to rural markets. At the same time, they also threw

up major challenges for marketers. In rural markets, customs and beliefs play

important role in success or failure of any product. Therefore every marketer has to

concentrate on rural markets apart from the matured urban markets. The role of

34

Prof. Ravindranath V. Badi & Prof. Narayansa V. Badi 2007, book titled “Rural Marketing”.

Published by Himalaya Publishing House, Mumbai. 35

Rajgopal. (1991). “Understanding Rural Marketing”. Daya Books. 36

Prof. Dr. A. Vinayagamoorthy Ph.D.,**D. Kamatchi (2014) article titled, “Problems and Prospects

of Rural Retail Marketing in India”. Asia Pacific Journal of Research Vol: I Issue XVI August 2014

66

government is very vital in solving the problems of rural markets. Development of

infrastructure and effective implementation of laws, rules and regulations will protect

of interest of rural consumer.

2. Mohd. Azhar Suharwardi , Iqbal Ahmad Hakim (2014) 37

article titled,

“The Indian Rural Market: Emerging Opportunities and Challenges” the authors have

observed that the estimated 68.84% of the total Indian population living in villages

(Census 2011) makes rural India the 'next big thing' for businesses. The sheer size of

rural India gives it a significant share in the total Indian market, which from the

marketer's perspective, translates into a huge consumer base. The authors have

concluded that the rural markets offer a great potential but the marketer should adopt

a right strategy for the same. It should undertake comprehensive survey of the area

and understand the needs of the rural consumer in right perspective.

3. Pooja Rani, Neha Shrivastav (2004) 38

article titled, “Rural Marketing in

India”. The authors have stated that there is a tremendous scope for putting in

marketing efforts as the rural consumer‟s purchasing power has substantially

increased over the years and it is very much likely that their consumption will

increase. The authors have further observed that after the globalization the rural

markets have offered potential for fast moving consumer goods and that the rural

marketing is giving impetus for the overall economy as such. The rural market is until

recently untapped and has great potential for development. The authors further

highlight the need for formulation of strategy wherein it should focus on availability,

accessibility and affordability. There should be on going market research and

accordingly the strategies be adopted from time to time. The authors have pointed out

that there is a distinct difference between the rural and urban markets.

4. Manpreet Kaur (2013),39

article, “Rural Marketing: A Case Study on

Hindustan Unilever Limited,” the author has discussed the importance gained by the

rural markets in the overall growth of economy. While discussing the special features

of the current rural marketing scenario the author has discussed the competition in

37

http://www.indianjournalofmarketing.com/index.php/ijom/article/view/80389 38

https://edupediapublications.org/journals/index.php/IJR/article/view/361. 39

Manpreet Kaur (2013), article, “Rural Marketing: A Case Study on Hindustan Unilever Limited,”

International Journal of Applied Research and Studies, Volume 2, Issue (June 2013)

67

urban markets, changing consumption pattern in rural areas, improved lifestyle , huge

population base, the rate at which the rural market is growing. In fact HUL was one of

the early companies to enter into the rural marketing in India. While discussing rural

marketing the author has also discussed the 4 Ps of rural marketing i.e. Product

strategy, pricing strategy, Place strategy, and the promotion strategy. HUL has a

sustained approach to explore the rural potential. The company has now adopted a

direct door step marketing through its Shaktiamma . The author has pointed that there

are number of changes on the marketing horizon of HUL which include:

1) Technology of digital maps – to study existing rural distribution reach and

to draw up plans for increasing its reach. Maps help for smarter route

planning.

2) Improved road infrastructure across the country leading to improved

access to even remotest of villages.

3) Reach of television to rural area has rural consumers watching all

programmes and ads as in the city. Aspiration to use same products as city

folks is on the irse and buying habits of rural consumers are changing fast.

5. K. Manimozhian & K. Gopalkrishnan (2013),40

article titled, “India –

Innovation in Rural Marketing”, the authors have concluded that the infrastructural

(road and communication, electronic media, TV, Mobiles etc.) development in the last

two decades have increased the reach of the marketing organizations in the rural area.

Due to the development of IT services it can facilitate rapid, transparent, responsible,

efficient and effective interaction between the stakeholders. This saves on costs

involved in time and other transaction costs.

6. Dr. Anukrati Shrma, (2013)41

in her paper titled, “An Analytical Study on

the Opportunities of Rural Marketing in India” has concluded that in the Indian rural

marketing scenario usually the marketing decision of purchasing is taken in the age

group of 31-40 years. The author further observed that while marketing strategies for

rural marketing, the marketers must be aware about the media selection, proper use of

the language which should be understandable by the rural people. Regional language

40

K. Manimozhian & K. Gopalkrishnan (2013), article titled, “India –Innovation in Rural Marketing”,

Indian Journal of Research, Issue 8, Aug. 2013 pp 172 -173 41

Dr. Ankurati Sharma, (2013), “An Analytical Study on the Opportunities of Rural Marketing in

India”, IJM, Vol. 4, 1 January – February 13, pp.183-189.

68

plays an important role. Usually the rural consumers rely on the other people who

have used the said product. Branding, media, usage of language are the important

aspects which should be borne in mind while tapping the rural marketing.

7. Pradeep Kumar (2013)42

article titled, “Challenges and Opportunities of

India Rural market”. The author has observed that the marketer must understand the

growing complexities of the rural market and making strategy for the proper mixing

of marketing mix. It involves high risk and attractive for those who are searching

challenge and having a courage to face those challenges. The key to face the

challenges is to understand the market, the consumer needs and behavior.

8. Anil Kalotra, (2013),43

research paper titled, “Rural Marketing Potential in

India – An Analytical Study”, the author has drawn the following conclusions:

Age wise analysis explains the pattern of purchasing in the rural markets

wherein the age group between 21-50 years is dominating with majority of

males.

Advertisements through electronic media are preferred over other method

of communication.

Marketers can benefit most if they can make the rural people feel that they

value them as their customers.

Regional languages are playing vital role in the rural marketing.

Rural customers are increasingly becoming brand conscious as well as

price and discounts.

The decision making in the rural market are taken by self followed by

spouse.

The rural consumers usually do not experiment with a new product unless

something trigger them.

There is a high potential in the rural India but exists major differences

between the existing and the desirable levels of rural marketing.

42

Pradeep Kumar (2013) article titled, “Challenges and Opportunities of India Rural market”.

International Journal of Marketing Studies Vol. 5 No.3: 2013 Published by Canadian Center of Science

and Education. 43

Anil Kalotra, (2013), research paper titled, “Rural Marketing Potential in India – An Analytical

Study”, published in International Journal of Advanced Research in Computer Science and Software

Engineering, Volume 3,Issue1, January 2013, pp 1-10

69

9. Dr. Ashfaque Ahmed, 201344

, paper titled, “Rural Marketing Strategies for

Selling Products & Services: Issues & Challenges” the author has observed that the

rural marketing in India is developing very fast. This is mainly due to improvement in

infrastructure and reach and untapped character of the rural market. While discussing

the challenges in the rural marketing the author has discussed about the current

literacy level, seasonal character of demand, transportation problems, development of

distribution channels, challenges relating to communication, understanding the

traditional life, consumer buying behavior, cultural factors. All these challenges are

required to be addressed while formulating the rural marketing strategy.

The author has pointed out the rural consumer‟s focus is on value for money

for his every purchase. Therefore, any company intending to enter into the rural

market should first study the consumer‟s buying preferences, and accordingly draw

out its marketing strategy and the products. Customers are price conscious. The

packaging as well as prices is important factors. It has been observed that in rural area

sachet packaging are more popular.

10. Ms. Poonam Bassi, & Ms. Bhavna Sharma (2012),45

research paper titled,

“Rural Marketing “ A Paradigm shift in Marketing” the authors have observed that

the fear of competition in urban markets and huge opportunities in the rural markets

have forced all marketing strategist to enter the rural markets. The paper has discussed

the evolution of rural marketing, factors that have contributed its growth and the

challenges that have to be addressed. The authors state that their study has revealed

that the Indian rural market has grown in recent years in size, range and intricacy.

Economic reforms in India have brought about major changes in the entire market

environment.

44

Dr. Ashfaque Ahmed, 2013, paper titled, “Rural Marketing Strategies for Selling Products &

Services: Issues & Challenges” Journal of Business Management & Social Sciences Research Vol.2,

N.1, Jan. 2013 pp 55-60. 45

Ms. Poonam Bassi, & Ms. Bhavna Sharma (2012), research paper titled, “Rural Marketing “ A

Paradigm shift in Marketing” International Journal of Research in Management, Issue 2, volume 4,

July 2012

70

11. Dr. N. N. Sharma (2012),46

article titled, “Rural Marketing in India – An

Over view: Case Study of BSNL”, in this article the author has observed that the rural

market has a huge potential. No single marketing strategy can be suitable for rural and

urban market due to heterogeneous in nature. The author has further observed that the

Bharat Sanchar Nigam Ltd. (BSNL) should come forward in rural India with different

products of small values and effective connectivity.

12. Sabura F. M., et al (2012)47

, the author studied the distribution system of

Britannia in Soundara Pandiyapuram & Solaseri. The authors have observed that the

distribution is not an effective system. The observation was based on the fact that the

retailers were buying the products from the wholesale agencies rather than Britannia

Company directly. The company can increase its market share with proper

promotional efforts and direct distribution. The authors felt that there is a need to

improve the supply chain and the focus should be on bakeries, pan shops, medical

stores etc.

13. Dr. Singh J., and Saikh (2012)48

, The authors stress the role of the family in

influencing the buying behavior particularly in the consumer durable segment. The

marketers should direct their advertising efforts and messages may be given in such a

way that it appeals the family members. The authors observed that the marketers

should build their credibility in the rural market as the mass media advertising is

resulting in losing their faith. The authors have suggested the use of social interactive

media which will give better results.

14. Rahman M., et al (2012)49

, his study revealed that India has a vast market for

hair care products of FMCG which increased from Rs.6230.8 crores in 2008-09 to

8417.79 in the year 2010-11. Hindustan Unilever‟s shampoo product dominates the

46

Dr. N. N. Sharma (2013), article titled, “Rural Marketing in India – An Over view: Case Study of

BSNL”, International Journal of Management & Information Technology, Vol. 1 No.3, September

20912 47

Sabura F.M., Vijaykumar T., Hameed A. (2012). Retailers Attitude Towards Britannia Biscuits (A

Study With Special Reference to Rural Areas of Tirunelveli), Zenith International Journal of Business

Economics & Management Research, Vol2, Issue5, May, 57-82. 48

Dr. Singh S., Seikh J. (2012). Making a Dent into the Rural Market, Integral Review- A Journal of

Management, Volume 5, No.1, June, 36-41. 49

Rahman M., Kazi R., Sourav S. (2012). Analysis of Hair Care Products with Reference to Shampoo

Market in India, Abhinav National Monthly Refereed Journal of Research in Commerce &

Management, Volume1, Issue11, 177-184.

71

market and has a market share of 46 per cent followed by Proctor & Gamble with 24

per cent. Sun Silk, Clinic Plus, Pantene and Head & Shoulder are the other brands

which are in star category.

15. Dey. S., et al (2012)50

, the authors studied the rural retail market and observed

that there is no fool proof model which fulfills the rural customer‟s expectations. They

attempted to find out the needs of the rural customers and the available option in the

rural market. They observed that the rural consumer buy their personal care, fruits and

grocery from the local market or from the weekly bazzar and for purchasing items like

clothing, footwear, durables they prefer to buy it from the nearby town where number

of options are available. The respondents of their studied expressed that in the absence

of availability of the alternatives they are required to choose from whatever is

available in the local market. The authors further observed that demographic factor

does influence the rural markets. By and large the customers are satisfied with the

price and accessibility to the market. The rural masses expect availability of more

brands for choice.

16. Siras M. (2012):51

The author was of the view that the rural markets should

not focus on the aspect of its unexploited condition. He further observed that the cost

of distribution and promotion is very high in the rural market and the companies

might incur losses only in the beginning but in course of time they will reap the fruits

of it. He stressed that with the spread of education and awareness of the products

through digital media, increased purchasing power the rural markets are emerging

markets and will prove to be beneficial.

17. Dr. Singh. P., et al (2012)52

the authors observed that there is need to identify

the specific requirements of the rural consumers by the manufacturers. They stressed

that the rural market should be scientifically studied before entering in the market.

Rural industries play a pivotal role in the rural market. The authors expressed that

50

Dey S., Dr. Rafat S. Agarwal P. (2012). Organized Retail in the Rural Market in India, IOSR Journal

of Business and Management, Volume 6, Issue1, Nov-Dec , 16-25. 51

Siras M. (2012). Rural Marketing-Potential and Strategies for Durables, A Study in Ghaziabad

District. International Journal of Trade and Commerce, Volume1, No1, January-June, 60-69. 52

Dr. Singh P., Dr. Sharma A., (2012). The Changing Face of Rural Marketing In Indian Economy.

Arth Prabhand: A journal of Economics and Management, Volume1, Issue7,October , 47-60.

72

there is a need to capacity building of Self Help Groups and their products should

have at least national acceptance in the first place and in course of time they may even

try for obtaining international acceptance. The authors felt that there is a need to

ensure the sustainability of their products with acceptable quality.

18. Khatsuriya. K., (2012) 53

: The author has observed that due to saturation of

urban and metro markets the marketers should now move to the rural markets which

is untapped so far and offer very good potential. The author further observed that

whenever the immigrants go back to the original place of residence they do carry the

impression of the urban life style and try to copy it. This helps in creation of product

awareness in the rural area. As the infrastructural development takes place, naturally

there will be a shift from urban to rural market as the majority of the Indian

population is residing in the rural area. The author stated that the increased earning

level in the rural area has generated idea of adoption of the high standard of living in

the rural areas.

19. Arora J., (2012)54

: the author has pointed out that there are certain aspects to

be taken care of while targeting the rural marketing. In the first place the company

should recognize the importance of the rural market and adopt a policy which will suit

the rural consumers‟ expectation. The aspects which the company should consider are

1) language of the area should form the media of publicity, 2) understanding of socio-

cultural aspect of the area, 3) changing the quality perception, 4) the product should

have rural acceptance. The companies should participate in the local fairs, meets, and

focus their products.

20. Dr. Joseph Kesari, Abhishek Kumar Srivastava (2012)55

, paper titled,

“Retailing in Rural India: An Overview of Markets and Opportunities” the authors

have concluded that the rural market is a vital market now which should be focused

53

Khatsuriya K., A. P. (2012). Rural Market: The Next Big Opportunity in India. IJPSS, volume2,

Issue5, May, 205-211. 54

Arora J. (2012). New Rural marketing Strategies of FMCG Companies in India: A Study of Selected

Rural Market of Punjab and Mandya Pradesh. International Journal of Research in Commerce and

Management, Volume3, Issue, 9, September, 85-90. 55

Dr. Joseph Kesari, Abhishek Kumar Srivastava (2012), paper titled, “Retailing in Rural India: An

Overview of Markets and Opportunities” South Asian Academic Research Journals available on

http://www.saarj.com

73

by the Multi National Corporations. The needs of the rural people are different than

the urban or metro consumers. They have a different set of mind about the packaging

as well as product. Packaging should be small and sturdy to withstand the rough roads

in the rural area. The rural marketing has displayed a phenomenal growth during the

past decade.

21. Saradamma C., et al (2012)56

, The authors studied the marketing of bath

soaps in the rural markets wherein they observed that the marketers should now move

from trial to preference and market the branded products to dislodge the local

products. While discussing the impact of various factors they stated that pricing,

promotional deals and availability of the products have great influence on the branded

goods market. The branded goods should be of high quality and the rural buyer should

be able to identify the product.

22. Dr. Mehta M., (2012)57

, The author pointed out that the national Council of

Applied Economic Research has assumed GDP growth at 7 per cent and that the

number of rural poor will go down to 28 million from 61 million and this will

increase the purchasing powers of the rural residents. This will be increasing their

income level and stated that the next revolution will come in the rural areas and that

the corporate are gearing up for the same.

23. Dr. Dixit. K., (2012)58

: Dr. Dixit concluded that the rural marketing has a

great potential as it was untapped up till now. He pointed out that making inroads in

the rural marketing by the MNCs is a long drawn process. He further stated that the

Indian market is very likely to move up to the 5th

position in the consumer economy

of the world by 2020. He also observed that the current rate of growth is also very

fast.

56

Saradamma C., M. R. (2012). Impact of Personality Factor on brand Loyalty of Rural Buyers

Towards Bath Soap ( A Case Study of Chittoor District in Andhara Pradesh). Peripex Indian Journal of

Research, Volume1, Iaaue10, October, 135-137. 57

Dr. Mehta M., (2012), Is Rural Marketing A Boon to Indian Marketers, Journal of Radix

International Educational and Research Consortium, RIJM Volume 1, Issue 5,May 2012 58

Dr. Dixit K., (2012). International Marketing Strategies Experimented by MNCs for

Exploring Vase Indian Rural Potential. International Journal of Management Research and Review,

Volume2, Issue5, Article 2, May, 652-663.

74

24. Gupta T., (2012)59

: He observed that the rural markets – a segment of the

Indian economy, are up till now remained untapped. There are lots of difficulties in

exploring this market. It is in the evolving stage. Rural markets are having immense

growth potential. This rural marketing sector requires altogether different strategies

than the urban or metro markets. Innovative ideas are required to be deployed to

achieve success in the rural marketing set up.

25. Waheed K.A., et al (2012)60

: The study was related to the conceptualization

of rural India‟s customer‟s trust. The author has reviewed the trust theories from

economic sociology and social psychology in developing countries. Marketing

concepts from the Western countries was the basis. The authors observed that the

interpersonal relations in the rural market are very strong, and significant. The buying

decisions of the rural family are quite often influenced by the members of the family,

friends, relatives and neighbours. In the buying decision their experience is also

weighed heavily. Customer‟s are not likely to blame the company for the bad quality

but their trust with that product shakes.

26. Singh V. and Bajaj A. (2012)61

. The authors have highlighted the importance

of the Bazaars (Haats) in the rural India. The rural India is developing fast and the

F.M.C.G. companies are required to redefine their marketing strategies specifically

for the emerging rural markets. The participation in the village fairs helps the

marketing company to create awareness about their brands amongst the villagers.

These fairs provide an opportunity to see the product in the bazaars. These Bazaars

provide all the day to day requirements of the villagers.

27. Jain. A, (2012)62

: The author studied the rural markets with specific reference

to the brand awareness relating to beauty care and health care products. He observed

that these two types of products sales of which are showing increasing trend. The

59

Gupta T, (2012), International Journal of Management Research And Review Rural

Marketing: Looking Ahead, Jan 2012, Volume 2, Issue 1, Article No-18, 186-191 60

Waheed K. A., Gaur B. Penaloza L. (2012). The Determinants of Customer Trust in

buyer-Seller Relationship: An Empirical Investigation In Rural India. Australasian Marketing Journal ,

303-313. 61

Singh V., Bajaj A. (2012). Role of Hatts in the Development of Rural Markets. Journal of Research

in Finance & Marketing, Volume2, Issue2, February, 628-639. 62

Jain A.,(2012). Brand Awareness and Customer Preferences for FMCG Products in Rural Market of

Garhwal Region, VSRD-IJBMR, Volume 2 (8), 434-443.

75

rural consumer goes by the company name and believes that the products must be of

good quality as the companies are of good repute. Now a day, the rural consumers are

not scared of the price of the product but they prefer good quality product. The rural

consumers look at these products from their status point of view.

28. Dr. Singh S., (2012)63

, In his study Dr. Singh has complemented the

Hindustan Unilever Ltd. for making headway in F.M.C.G. in the rural marketing area.

HUL has made its brand more experiential in nature. They have carried out extensive

survey of the rural market and decided its strategies to make greater awareness of

their branded products in the rural area.

29. Kavitha T., (2012)64

, observed that the current phase of rural consumption

offers a vast potential market for the F.M.C.G. sector. According to him the marketers

should evolve a strategy to reach the rural markets and create greater awareness about

their products. The companies should take special efforts to introduce their brands in

the rural area. He observed that the rural consumer of today is smart and look for the

product which satisfies his needs. Those companies who will under the needs of the

rural customer in right perspective will succeed.

30. Dr. Bissa G. and Dr. Sharma A. (2012)65

: In their study the authors have

drawn the following conclusions:

a) The language used and the content of the literature used in the rural market

should have bearing of the rural environment.

b) The figures used should have rural bearing.

c) Brand ambassadors also play a dominant role.

d) Special promotion campaigns are very much useful in establishing brands

and this has been amply proved by the fact that the products like soft

drinks account for 46 % share, 49% of motor cycles and 59 % of the

63

Dr. Singh S., (2012), making a dent in to rural market ( a case study of Hindustan Unilever Limited),

Integral Review-A Journal of Management, ISSN :2278-6120, Volume 5, No. 1, June-2012, pp 36-41 64

Kavitha T. (2012). A Comparative Study of Growth, Challenges and Opportunities in FMCG of

Rural Market. Inter science Management Review, Volume2, Issue3, 23-28. 65

Dr. Bissa G., Dr. Sharma. (2012). An Exploratory Study to Analyze Rural Marketing Strategies of a

Few FMCG Brands. Shodh,Samiksha anur Mulyankan-International Research

Journal,VolII,Issue14,March , 11-13.

76

cigarettes in the rural markets. There are about 42,000 rural hats. LIC sales

about 50 per cent of its policies in rural area.

31. Kotni V. (2012)66

: The author has referred to the findings of the NCEAR

projections about the shift in the income levels of the rural population over the period.

He observed that there is no more need for the rural consumer to go to the nearby

town to meet his F.M.C.G. needs as the products needed are now locally available.

Understanding the potential offered by the rural marketing the F.M.C.G. companies

are flocking at the rural area.

32. Dixit D., (2012)67

, the author observed that the rural markets are in emerging

stage and cannot change the fortune immediately. It takes some time to develop these

rural markets. Creating awareness about the products and promoting culture for

consumption is needed to be accorded top priority.

33. Dr. Sheela Singh, Javed Alam Sheikh, (2012)68

, paper titled “Making Dent

into the Rural market” the authors have observed that undoubtedly the rural market

has vast potential but at the same time obstacles are also there which should be

addressed to. The marketer should also understand the special features of the rural

marketing as well as rural psychology to integrate in the life of rural people with

efficiency and effectively. The authors have discussed how the HUL has overcome

the obstacles in the rural area.

34. Dr. Devaraj Badugu*; Mr. Shanti Swaroop Chauhan (2011)69

paper titled

“Understanding the Indian Rural Market Potential” The author observed that The

rural markets represent the heartland of the true culture, racial, language and

demographic identity of India. The chief challenge for the FMCG marketer is to cut

across the barriers of language to reach out to the 'all India' market. The rural mind is

66

Kotni V. (2012). Prospects and Problems of Indian Rural Markets. Zenith International Journal of

Business Economics & Management Research, Volume2, Issue3, March , 200-213. 67

Dixit D. (2012). Competitive and Innovative Marketing Strategies for Tapping Vast Rural Potential

in India. Zenith International journal of Multidisciplinary Research, Vol1,Issue7,November , 39-46. 68

Dr. Sheela Singh, Javed Alam Sheikh, (2012), paper titled “Making Dent into the Rural market”

Integral Review – A Journal of Management, Vol. 5, No.1, June 2012, pp 36-41 69

Dr. Devaraj Badugu*; Mr. Shanti Swaroop Chauhan (2011) paper titled “Understanding the Indian

Rural Market Potential” ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 6

77

simpler and straightforward. Good products do get deep into the minds of consumers.

During the last decade companies were forced to re look at the rural markets owing to

numbers of reasons. The important ones were the saturation of urban markets and

immense market competition leading to flat or declining sales. The easiest way for

growth was by reaching competition leading to flat or declining sales.

35. Badugu D. and Chauhan S. (2011)70

, studied the challenges and the

opportunities offered by the rural markets. The authors observed that the future for the

rural market is very bright. They stressed that the attitude of the marketers needs to be

changed radically. The rural market is a vibrant market. There are over 6.84 lakhs of

villages which offer a very bright potential for the FMCG.

36. Talwar. P., et al (2011)71

concluded that the F.M.C.G. companies are now

imparting training to their marketing staff for rural orientation. Local language is an

advantageous aspect. The campaigns should be thoroughly planned and well

organized. Particularly weekly bazzars and village fairs should be tapped for

promotion which has greater coverage.

37. Ahmed M., (2011)72

: The author observed that the rural markets are very

important to the corporate world from commercial point of view. The authors have

pointed out that the role played by the rural markets in the overall development of the

Indian economy is quite crucial. This was neglected in the past but now it is a

promising sector. Rural consumer‟s income is showing a rising trend due to the

governmental efforts, their thinking about the life style has undergone a sea change.

The digital media has also played a significant role in creating awareness about the

branded products. The author further observed that there is one more dimension as to

why the corporate are eyeing at the rural markets and that is due to saturation of the

urban markets.

70

Badugu D., Chanhan S.. (2011). Understanding the Indian Rural Market Potential.

International Journal of Multidisciplinary Research, Vol1, Issue6,October , 68-82. 71

Talwar P., Sangwan S. Sharma K. (2011). Retailing Prospects in Rural Market. International Journal

of Computer Science and Communication, VOl2, No2, July-December, 527-529. 72

Ahmed M. (2011). Rural Marketing-Trends in India. Zenith International Journal of

Business Economics & Management Research, Vol1, Issue3, December, 162-172.

78

38. Sisodia R. (2011)73

: the author observed that the FMCG companies should

make inroads in the rural marketing segment in order to have double digit growth rate.

It offers huge potential. However at the same time the companies should carefully

study the rural environment and decide their strategies. The penetration should be not

for tactical gains but it should be thought of as a sustainable market.

39. Sharma P.(2011) 74

, the author has stated that in any economy the rural

markets are untapped markets offering good potential. There are lots of difficulties to

explore these markets. These markets are in the evolving stage. This sector poses

various challenges in understanding its market dynamics and ensuring rural customer

satisfaction.

40. Prialatha P., (2011)75

the author studied the marketing of the personal care

brands in the rural market. It did not account for the impact of advertising and

promotional factors. The study revealed that the quality of the product received

greater importance from the rural consumers. She also stated that the educational

background is also having influence in the matter of choice of the brand. She further

observed that the rural consumers take rational decisions so far their buying activity is

concerned. Marital status and the purchasing power have a greater influence of their

buying decisions. The rural buyers are brand loyal.

41. Dr. Sukhmani D., (2011)76

the author concluded the rural consumer‟s life

style, incomes and value for the product are showing a positive change. The rural

sector‟s consumption pattern is changing very fast. This has induced the entry of

F.M.C.G. organizations. Accordingly the marketers have to change the product mix,

the prices be fixed keeping the affordability of the rural masses, and the F.M.C.G.

marketer should ensure that their products are available all the time in the rural

markets.

73

Sisodia R. (2011). Model of Rural Communication Mix with Special Reference to FMCG

Companies. International Journal of New Practices in Management and Engineering, 1st edition, 1-7. 74

Sharma P. (2011). Emerging Trends in Rural Marketing. International Journal of Information

Technology and Knowledge Management, Volume4, July-December , 705-708. 75

Prialatha P. (2011). A Study on Factors Influencing Rural Consumer Buying Behavior Towards

Personal Care Products in Coimbatore District. International Journal of Research in Commerce &

Management,Volume2, Issue 9,September , 52-57. 76

Dr. Sukhmani D. (2011). Role of Promotion Mix in Influencing Rural Consumers, International

Journal of Business & Information Technology, Volume 1, No1, June , 110-118.

79

42. Hagargi A., (2011)77

, observed that it is true that the rural markets are having

tremendous potential, however he also pointed out that there are numerous challenges

the rural marketers have to face. Understanding of the rural consumer is of paramount

importance. He has observed that the dependable distribution channel and effective

marketing communication are the essential ingredients which should be taken care of

by the marketers.

43. Kulkarni and Dr. Hundal B. (2011)78

the authors observed that despite

numbers of adversities the rural market is fascinating. There is enormous potential in

the rural India. There is a saying that the markets are created and not born. The rural

and urban markets have different features. Therefore, there is need to understand the

rural markets in the right perspective. The authors have pointed out that the F.M.C.G.

companies Hindustan Unilever, ITC and LG are successful in establishing their

brands in the rural market.

44. Dr. Srivastava S. et al (2011)79

the author has devoted major part of his

article on the possibilities of establishing strong foothold in the rural market. He has

observed that these are heterogeneous and that the marketer should frame different

strategy for tapping the rural market. He has pointed out the difference between the

rural and urban consumers saying that the urban consumers are more sophisticated.

They differ from the rural consumers from the various aspects such as value,

consumption, attitude etc. The marketers have to work harder in the rural set up to

establish their brands.

45. Chattopadhyay S. and Sarkar A. (2011)80

, observed that the rural markets

are gradually but steadily increasing and the rural youth are witnessing this change.

The rural markets are different than the urban markets in number of ways; therefore

77

Hagargi A. (2011). Rural Market in India: Some Opportunities and Challenges.

International Journal of Exclusive Management Research, Volume1, June. 78

Kulkarni, Dr. Hundal B., (2011), Role of Promotion Mix In Influencing Rural Consumers, Int. Jour.

of Business & Inf. Tech. Vol-1 No. 1 June 2011,pp-110-118 79

Dr. Srivastava R., Singhal A. Pasupula R., Khandelwal M., Balasubramanian S., Shirodkar S. (2005).

Brands Equity of Toothpaste Brands in India. Indian Journal of Marketing, Volume XXXV, No.7, July

, 9-17. 80

Chattopadhyay S., Sarkar A. (2011). Market Driven Innovation for Rural Penetration. The IUP

Journal of Business Strategy, Vol3, No3 , 42-52.

80

the marketing strategies should also be different for each market segment. The

environment provides wide scope for creativity in advertising and in product

development. Besides this the product to be introduced should be of good quality and

at the same time it should be cost effective to decide the rural pricing.

46. Douglas C.S., (2011)81

observed that the rural marketing plays a pivotal role

in fostering economic growth and development. In the past the marketing activity was

not given due attention as compared to the present day conditions. The tapping of the

rural marketing releases the hidden economic energy in the rural environment and

helps to develop the rural enterprises. There is need to have heavy investment in

introducing the products in the rural market and that substantial creativity is needed

both in product development as well as in the formulation of the marketing strategies.

The F.M.C.G. organization should evolve a long term plan for ensuring stabilization

of their brand in the rural market.

47. Bardia G., (2010)82

, stated that the rural markets are currently in initial stage.

He also stated that there is gradual urbanization of the rural area so far as their

exposure, consumption patterns, life styles and habits. The author has cited the

examples of success of 502 Pataka Chai, Ghadi Detergent and Britannia Tiger

Biscuits. They are successful because they could understand the rural customer‟s

needs and address those in their introduction in the rural area. The specific needs of

the rural consumer should be understood and those should be met by the products

introduced. He also pointed out the distinction between the rural and urban approach

towards the marketing.

48. Gupta C. (2010)83

, observed that the Indian companies have fared well

despite the recessionary phase through which the world is passing through. Indian

MNCs have because of their penetration in the rural markets have shown better result

even in the sluggish market due to international recession. As soon as the recession

81

Douglas C. S. (2011). Empowering Rural Consumer In Emerging Markets. IJOEM6,4, February ,

382-393. 82

Bardia G.(2010). Management of Brands in Rural India. Invertis Journal of Management, Vol. 2,

No2 , 177-182. 83

Gupta C. (2010). Rural Market : A Route to Survival for the Business Houses in India During

Recession. JK Journal of Management & Technology, Volume2, No2, 109-118.

81

period is over it is but natural that these companies having rural market command will

boost their progress in times to come.

49. Boscor D. & Baratuku, (2010)84

observed that the Bottom of the Pyramid

(BOP) category of the Indian rural market from high tech businesses like financial

services, cellular phones and low end computers. The author stressed the need for

establishment and development of commercial infrastructure, financial institutions,

and financial inclusion. The best strategy for entering BOP markets for MNCs is not

the export, but the production of goods in BOP markets, involving local firms, local

labour and local governments. The MNCs are advantageous position so far as rural

marketing is concerned. They get an opportunity to transfer technology and

innovations in the rural marketing set up.

50. Iyer V., (2009),85

observed that the rural markets offer untapped potential. In

order to fully exploit the rural market there are lots of hurdles which should be

crossed over. All over the world the rural markets have the same character of

underdevelopment stage. Therefore, the need of the hour is to identify the pulse of the

rural consumers and then decide as to how to tap this market and have sustainable

growth.

51. Biran A., et al (2009)86

his study findings provided some evidence which

suggests that the intervention had a favourable impact on the sales of the hand

washing practices due to knowledge and social norms which laid the foundation of

behavior change in the long run.

52. Ramnathan. V. And Sudhamathi S. (2009)87

, their study relating to the

penetration of the life insurance business revealed from the success and failures of the

corporate that the Indian Rural Market is totally a different composition in respect of

84

Boscor D, Baratuku. (2010). Base of the Pyramid Global Strategy. Bulletin of the Transilvania

University of Brasov, pp. 11-16. 85

Iyer V. (2009), Rural Marketing. SIES Journal of Management, Vol. (2), September, 104-111. 86

Biran A., Schmidt W. Wright. (2009). The effect of a soap promotion and hygiene education

campaign on hand washing behaviour in rural India: A Cluster Randomized Trial. Tropical Medicine

and International Health, Volume14, No10, October , 1303-1314. 87

Ramnathan V., Sudhamathi S. (2009). Brand Building Exercises Adopted by Life Insurance

Companies in Indian Rural Markets. The ICFAI University Journal of Rural

Management, Vol2, No.1,February , 31-40.

82

its structure, consumers‟ demographic profile, expectations, and value expected from

the products and services. The authors have further pointed out that the MNCs have

been able to identify the special features of the rural market and have designed their

marketing strategies which have paid very good dividend to them. The study also

brought forth the fact that the services sector is currently making inroad in the rural

area. The insurance and banking sector are gaining ground in the rural area. Slowly

these services are being stabilized. The growth of the Indian economy is dependent on

the sound growth of the rural marketing as it accounts for a major share. Low income

households and micro enterprises can benefit from credit, savings and insurance

services. In this situation, in order to exploit the available untapped rural market

potential and opportunities, the life insurance companies are in a position to

strengthen their brand personification out of augmenting competitions.

53. Prasad B., (2008)88

, studied the penetration of the Coke and Pepsi products in

the rural market by using various innovative techniques. They have developed sound

marketing strategies. They have developed their distribution network on sound lines

and quite extensive. They have reduced the prices of their products which have

general acceptance in the rural market. Coke and Pepsi have now a reasonable

penetration in the rural market which is yielding good results to them.

54. Sarangapani A. and Mamtha T. (2008)89

observed that the marketing of

F.M.C.G. has a key role in the growth of any developing economy, irrespective of its

size. This is because the marketing products are of day to day consumption and as the

population its demand increases. The current objective of the marketing is to earn

profit ensuring the customer‟s satisfaction. Therefore, the F.M.C.G. companies are

required to know what the customer needs from them and accordingly the product be

presented so that it will have better chances of acceptance and lifting the same. This

article highlights the characteristics of rural respondents in terms of demographic,

political, economic and socio-cultural background. Finally, before concluding, it also

88

Prasad B. (2008). MNC's in Rural Marketing - The Case of Pepsi and Coca Cola. Indian Institute of

Marketing, Volume XXXVIII, Number5, December , 10-21. 89

Sarangapani A. Mamtha T (2008). Rural Consumer Behaviour with Regards to Selected FMCG's

Consumption Patterns and Brand Usage A Study. The ICFAI University Journal of Brand

Management, Vol. V,No.3, September , 161-165.

83

analyzes the consumption patterns, brand usage and brand shifting of different

F.M.C.G.s.

55. Sindhe R., (2007)90

observed that despite the demographic situation of the

rural area and the potential available thereat, the MNCs in F.M.C.G. market neglected

the rural markets and when they observed that there is a stiff competition amongst

various F.M.C.G. companies in the urban centres they are now keen to explore the

rural markets and accordingly drawing their strategies. In fact this move for tapping

the rural markets came as a step for survival in the market. Marketers have developed

several strategies for the rural market segment.

56. Dr. Anandan C. et al (2007)91

observed that the rural markets in India have

been witnessing lot of activities in the past two decades. In order to have fuller

benefits of this rural market the F.M.C.G. companies are required to have deep

penetration in the rural market. This market is very vast and poses a problem of

keeping the ready stock at all the retail outlets. Major F.M.C.G. have now focused on

this rural marketing segment. Keeping in view its size the MNCs in F.M.C.G. are now

aggressively marketing their product in the rural markets. Today, India has a diverse

range of detergents available off the shelf. The annual consumption of detergents in

India ranges to thousands of tones. The formal sector with its increasing ability to

influence consumers via advertisements is expanding its market share aggressively.

Each brand claims to clean whiter, boasting of technologically dubious terms such as

fighting granules, power pearls, etc. On this back drop the trustworthiness of the

marketer assumes greater importance. Therefore the branded products should have

good quality products else their repute comes in jeopardy.

57. Ramanathan V. (2007)92

observed that since last two decades in both the

developed and developing countries the service industries are playing a key role in the

90

Sindhe R. (2007). Recent Facets of Consumer Behaviour A Case of Rural Market. Indian Journal of

Marketing, Volume XXXVII, Number4, April , 12-23. 91

Dr. Anandan C. Prassana M. Mohan R. and Madhu S. (2007). A Study on Brand

Preferences of Washing Soaps in Rural Areas. Indian Journal of Marketing, Volume XXXVII,

Number3, March, 58-79. 92

Ramanathan V.(2007). Retailing Channel Enhancement Strategies Adopted by FMCG Companies in

South Indian Rural Markets. The ICFAI Journal of Management Research, Vol6, No.11, November,

64-70.

84

wealth creation, employment generation and attracting huge investment. Immediately

on the opening of the doors of the Indian economy number of multinational

companies has entered into the Indian retail market in a big way. The educated youth

in the rural area, foreign tours of the youth as well as the villagers, increased use of T.

V. media, increasing literacy, there is a tremendous consciousness about the various

branded products which were not known to them earlier. Their life style has

significantly changed which has its reflection on the speedy growth of the rural

market. These developments have forced the M.N.C.s in the F.M.C.G. segment to

develop new strategies to tap the rural markets in right earnest.

58. Arunkumar S. and Madhvi C., (2006)93

observed that the F.M.C.G.

companies in India have realized the vast potential available in the rural marketing

scenario. They are vehemently trying harness this potential and accordingly

redesigning their strategies to capture the rural markets.

59. Jain A. and Rathod R. (2005)94

the authors observed that the Indian rural

market has huge size and demand base and that it offers tremendous opportunities to

the marketers. Near about three fourth of the consumers are residing in the rural area

and account for 50 per cent of the national income. The success of the rural market

depends on how the marketers adopt strategies specifically drawn for the rural market

as such.

60. Fibich G. et al (2005)95

observed that authors derive an expression for the

price elasticity of demand in the presence of reference price effects that includes a

component resulting from the presence of gains and losses in consumer evaluations.

The effect of reference price is most noticeable immediately after a price change,

before consumers have had time to adjust their reference price. The authors provide a

quantitative definition for the terms immediate term and long term, using the average

inter purchase time and the discrete "memory" parameter. Practical consequences of

93

Arulkumar S., Madhvi C. (2006). Rural Marketing for FMCG. Indian Journal of

Marketing, Volume XXXVI, No.4, April , 69-84. 94

Jain A., Rathod R. (2005). Distribution and Retailing Trends in Rural Markets - A Study in Villages

of Gujarat. Indian Journal of Marketing , Volume XXXV, No.9, September , 1-10. 95

Fibich G., Gavious A., Lowengart O. (2005). The Dynamics of Price Elasticity of Demand in the

Presence of Reference Price Effects. Journal of Academy of Marketing Science, Vol33, No.1 , 66-78.

85

the distinction between immediate- and long-term elasticity for the estimation and use

of elasticity values are discussed.

61. Christian H., et al (2005)96

the authors investigated the effects of price

increases at an individual level. They observed that the consumer‟s reactions are

strongly driven by the two factors namely quantum of increase and fairness of the

motive for the increase. Their findings reveal that as the customer satisfaction

increases, the negative impact of the magnitude of a price increase is damaged.

Furthermore, the results suggest that satisfaction moderates the impact of perceived

motive fairness.

62. Dr. Srivastava R., (2005)97

observed that the proposed entry of the Procter

and Gamble in oral care brand Crest in the Indian market will certainly create stiff

competition for the Colgate being the market leader and has focus only on oral care.

The market will be volatile and will force the present players in the market to rethink

about their strategies to retain the existing market share.

63. Sakkthivel A. & Dr. Mishra B. (2005)98

observed that for education purpose

the rural youth go to the nearby towns/cities and they are exposed to the new life style

in the urban/metropolitan centers. Not only F.M.C. G. players but even the Consumer

durable marketers have also realized the potential offered by the rural market and they

are making inroad in it. It has been now felt that the rural markets were neglected by

the marketers in the past.

64. Vaswani L. et al (2005)99

the authors have brought out the widening

difference between the rural and urban markets and the economies thereat. They have

observed that re-conceptualization of rural marketing special features and strategic

96

Christian H., Hoyer W., and Koschate N. (2005). Customer's Reaction to Price Increases Do

Customer Satisfaction and Perceived Motive Fairness matter? Journal of the Academy of marketing

Science, Vol33,No.1, , 36-49. 97

Dr. Srivastava R., (2005), Brands Equity of Toothpaste Brands in India‖ Indian Journal of Marketing,

Volume XXXV, Number 7, July 2005, pp 9-17. 98

Sakkthivel A.M., Dr Mishra B. (2005). Effectiveness of Sachets in Modifying Rural

Consumers Buying Behaviour and Their Consumption Pattern- A Researcher's View. Indian Journal of

Marketing, Volume XXXV, No.2 February . 99

Vaswani L., Aithal R. Pradhan D and Shridhar G. (2005). Rural Marketing in the Development

Paradigm. International Journal of Rural Management, Vol1, No2, February, 245-262.

86

marketing in the rural marketing sector. This difficult and complex task can be

achieved by helping rural producers to effectively compete in the marketplace based

on competitive/comparative advantage through consolidation of agriculture and rural

enterprises. They emphasized that the agriculture and the rural enterprises are required

to be linked to rural and urban markets.

65. Singh R. & Pavleen K. (2004)100

observed that in the Indian context the

buying decision making is influenced by the family members. The rural area offers a

vast potential market for F.M.C.G. because of the demographic situation. So far as

decisions relating to F.M.C.G. products the family has a greater bearing while for

purchasing consumer durable the purchase decision is dependent upon several factors

such recommendation from the friends & relatives who have used the product, after

sale service, guarantee etc.

66 Nagaraja D., (2004)101

observed that the rural India consumer is currently

transforming due to increase in his purchasing power. He wants to lead a changed life

style on the lines of the urban families. Therefore, the rural Indian consumer‟s buying

behavior is changing very rapidly. They are now using shampoo and cosmetics and

two wheelers and enjoying easy access to the urban market. All this has been possible

because of the increased income levels of the rural masses.

67. Lokhande D.M., (2004)102

observed that every individual needs variety of

products and services right from his birth. Marketing is a process through which both

the buyer and seller give something (consideration in the form of goods, services or

money) to each of other for his satisfaction. He further observed that currently the

rural market has opened up new avenue and the same is flourishing. He stressed the

need for understanding the rural customer‟s needs and consumption pattern.

100

Singh R., Pavleen K. (2004). Do Rural and Urban Families Decide Differently to Buy? The ICFAI

Journal of Marketing Management, August , 17-28. 101

Nagaraja D. (2004). Consumer Behvaviour in Rural Areas A Micro level Study on Buying

Behaviour of Rural Consumer in Kavali Mandal. Indian Journal of Marketing,

Volume XXXIV, No.11, November, 33-45. 102

Lokhande D. M. (2004). Rural Marketing A Study of Consumer Behaviour. Indian Journal of

Marketing, VolumeXXXIV,No.12,December , 62-70.

87

68. Naidu D.K., (2004)103

he discussed about the extent of awareness of the rural

markets in India and stated that it is growing at a very fast rate. This is true for both

F.M.C.G. and Consumer Durables. He analyzed the buying behavior of the ten

villagers in Ranga Reddy Dist. in Andhra Pradesh. The author has observed that there

is moderate awareness amongst the villagers of the identified area.

69. Rajendrakumar and Dr. Kaptan S. (2004)104

they highlighted the

importance of the rural market in India and opportunities available therein. They have

discussed the marketing strategies of Onida and Hindustan Unilever Ltd. being

implemented in the rural areas. They further observed that prior to this no large

company had ever tried to enter in the rural market in such a big way.

70. Trijp et al (1996)105

observed that only the F.M.C.G. companies offer

varieties of items which are not available from the other marketers. When there is a

marginal difference in the local and the branded products the rural consumer are

willing to slightly higher price for the branded goods. There is a gradual change in the

mind set of the rural consumer.

71. Bhatta G. and Jaiswal M. (1986)106

the authors studied the consumer

responses towards the washing powder and role of advertising in Baroda city. They

observed that the female member decide the choice of the washing powder wherein

they apply the parameters such as quality, consumption and price of the product.

3.5 NEWS PAPER ARTICLES

1. The Hindu, Business Line 9th

Sept. 2016. As the summer season fades away,

the hinterland gears up for a variety of festivities. These bring with them a number of

traditional fairs (melas) that villagers flock to in hordes.

103

Naidu D. K. (2004). An Evaluation of Consumer Awareness in Rural Markets. Indian Journal of

Marketing, Volume XXXIV, No.4, April , 56-64. 104

Rajendrakumar, Dr. Kaptan S. (2004). Marketing Battle ground. Facts for you, February, 21-24. 105

Trijp, Van.C , Hoyer W., and Inman J. (1996). Why Switch? Product Category Level Explanations

for True Variety Seeking Behaviour. Journal of Marketing Research, Vol33, August , 281-292. 106

Bhatta G., Jaiswal M. (1986). A Study of an Advertising Impact and Consumer Reaction. Indian

Journal of Marketing, Vol18, October-November , 9-16.

88

Over the years these fairs that have proven to be great opportunities for rural

marketers. And though the current rural uptake is not anything to sing about, it is here

that two-wheeler companies, the FMCG sector, food and beverage firms or the

garment makers can find potential customers who are on an outing with family and

friends and ready to listen.

2. Indian Brand Equity Foundation: July 2016, Rural Segment Quickly

Catching Up.

The Fast Moving Consumer Goods (FMCG) sector in rural and semi-urban

India is estimated to cross US$ 20 billion by 2018 and US$ 100 billion by 2025

The rural FMCG market expanded at a CAGR of 13.2 per cent to US$ 100

billion during 2009-15x

In rural markets, durables like refrigerators as well as consumer electronic

goods are likely to witness growing demand in the coming years as the government

plans to invest significantly in rural electrification.

3. First Post, 15th

January 2016, Nikita Peer, SME Mentor, article titled, “With

Urban markets drying up, entrepreneurs must go rural”. In rural markets, the

opportunities are not sitting there; they need to be created. Moreover, India's villages

are simply not what they used to be, including the quality of life, which has changed

dramatically

4. Rediff.com » Business » 11 July 2013, “India's rural markets are a powerful

economic engine” People in rural India are spending more than those in urban areas,

according to a study by Accenture, a multinational management consulting,

technology services and oil company. Between 2009 and 2012, spending in rural India

reached $69 billion, significantly higher than the $55 billion spent by the urban

population. The rush to rural markets is not a recent phenomenon and companies have

been testing these markets for some time. Successful companies, whom we refer to as

Rural Masters, have used innovative techniques to reach the rural consumers and

89

scale operations profitably. Top of Form Companies must find new ways to promote

their products and establish credibility in rural markets.

5. Business Standard: 8th

July 2013, news headline, “Marketing to Rural India”

The news item states that, “The size of the prize in India‟s hinterlands is on the rise.

Rural India accounts for about 50 per cent of India‟s GDP and nearly 70 per cent of

the country‟s population. Since 2000, per capita GDP has grown faster in rural areas

than in its urban centres: 6.2 per cent CAGR versus 4.7 per cent. Rural incomes are

growing and consumers are buying discretionary goods and lifestyle products,

including mobile phones, television sets and two wheelers: between 2001 and 2009,

spending in rural India was $69 billion, significantly higher than the $55 billion spent

by the urban population.

Companies that recognize this enormous opportunity are experimenting with

various go-to-market models to garner their share of this growth. But the results have

been mixed. To understand why and what to do about it Accenture conducted a major

research study of more than 100 companies to discover how successful companies are

responding to the opportunities and hurdles.

As rural markets evolve and competition in rural markets intensifies,

companies will have to look for new approaches to harness this opportunity in ways

that protect their margins while also growing revenue. Deploying the correct sales and

distribution model can assist companies in driving profitable growth in a relatively

short span of time. Rural masters will have to find ways to scale operations without

hurting their bottom line. For a rural performer, the challenge will be to create

differentiated offerings and brand loyalty to retain customers and sustain their

business models. Rural voyagers will build their own ecosystems and brand

awareness to acquire new customers. New entrants will travel their own paths to

penetrate rural markets. By focusing on the specific needs, behaviours and

preferences of the rural consumers, and by applying a systematic approach to market

expansion, companies can accelerate their rural expansion journey.

90

6. Business Standard 8th

July 2013, Sanjay Dawar, “Marketing to Rural

India”. Success in India‟s rural markets hinges on the performance of companies on

two key measures: rural performance that is the degree to which rural markets are

strategically important to a company‟s growth agenda, defined by the contribution of

rural markets to the enterprises top and bottom lines. Rural innovation, or the level of

rural focused innovations, in a company‟s product, packaging, pricing, channels and

operating models.

Rural performers are profitable entities that have established a strong rural

footprint by using conventional approaches or by emulating Rural masters. They often

lack an innovative streak. They tend to focus on existing product portfolios and try to

mitigate risk through aggressive product marketing to strengthen their position. These

companies have been successful in the past. But in the future, they may struggle in a

changing and more competitive landscape.

7. First Post, Dec 20, 2012, Sonali Advani’s article titled, “Rural marketing:

Say no to price wars, relationships key”. Rural India has been in the spotlight for a

while now, with growing consumption rates. Middle India, home to about 100 million

people, is already contributing to 20 percent of the country's FMCG consumption, as

per recent media and industry reports. The bond between retailers and consumers in

tier III and IV towns tends to be quite strong and often extends into the personal

sphere.

So if you are setting up your own stores, you'll have to work around processes

that adapt to such nuances. Big and fancy stores used to intimidate consumers (as they

tend to give the perception of being more expensive), but this is slowly changing.

Similarly, if you are looking to partner with existing retailers and sell through their

shelf space, then these are the systems that you would be experiencing.

Marketing mantras

You will need to do a bit of marketing to complement the above-mentioned

initiatives. However, your modus operandi will have to be old-fashioned in some

sense and social media is not the way to create awareness.

91

The plus side is cost of advertising will be less in comparison to urban

markets. Hoardings and newspaper inserts work best, say experts. In addition,

advertising through cable television and slides in cinemas are good options too as are

fairs, small events and exhibitions to create some noise.

Customer relations are equally important here. Never ill-treat them as

customers in these towns take things personally. If not treated well once, he/she

would never re-visit stores or buy your product/ service, no matter what value you

offer.

Brand ambassadors sell products and services well too. If you don't have the

big budget that is needed to bring in a Hindi film industry celebrity, you can also opt

for television anchors to come and inaugurate the store or attend the product launch.

Entrepreneurs must be mindful of these few important aspects for setting up

shot in rural India to ensure they market well in these regions.

8. Economic Times, TNN Jan 19, 2006, Shuchi Vyas, article titled,” Shampoos

lather up in rural markets” Consumers in rural markets appear to be driving the

double-digit 20-25per cent growth rate that's currently being recorded by the Rs 1,450

crore shampoo market.

The rural market has recorded a volume growth of 40per cent while the urban

market is trailing along at 16per cent. Industry officials said higher innovation and

improved affordability in the market has helped increase penetration levels in the rural

markets vis-à-vis the more saturated urban markets.

3.6 WEBSITE SURFING

1. Gupta S.L., et al (2012)107

, the authors observed that the rural customers

responses were mixed. The rural customers prefer both branded goods as well as local

brands. The branded products get moderate loyalty. Their study revealed that the

107

Gupta S. L., Mittal A. : A Study of Consumer Behavior Aspects and Brand Preferences in Rural

India with Reference to FMCG Sector, http://arunmittal.com/ research/ Branding% 20in%

20Rural%20Areas.pdf, Retrieved 01 12, 2012, from www.arunmittal.com.

92

members of the family particularly the women members‟ influence the buying

decision. Their buying decisions are also depended on the recommendations of their

friends and relatives and further stressed that the use of social media pays good

dividend. The authors have concluded that the rural consumers are not conscious of

any particular brand as such. Their buying decision is not taken with seriousness.

Sometime the retailers also recommend a particular brand for which he gets discount

from the wholesaler. The authors concluded that if the marketing promotion in the

rural market is done scientifically then there is a very good potential available for

increasing their market share.

2. Pirakatheeswari P. (2011)108

: The author observed that rural marketing is an

evolving concept and is an untapped potential. Only in the recent past the marketers

have realized this potential. The rural infrastructure has undergone a sea change now

and it has improved the reach of the rural customers. The rural area is gradually

turning into urbanization in terms of their habits, likings, lifestyles and therefore their

consumption pattern has also become like the urban one. However, the author has

cautioned that there should be limited rural market share as the companies have to

slash their prices for the rural markets.

3. KC Behura and JK Panda,109

article titled, Rural Marketing of FMCG

Companies in India. The authors have observed that the FMCG companies will have

to rely gain inroads in the rural markets in order to achieve double digit growth targets

in future. There is huge potential and definitely there is log of money in rural India

but the smart thing would be to weigh in the roadblocks as carefully as possible. The

companies entering rural market dust do so for strategic reasons and not for tactical

gains as rural consumer is still a closed book and it is only through unwavering

commitment that the companies can make dent in the market. Ultimately the winner

would be the one with the required resources like time and money and also with the

much needed innovative ideas to tap the rural markets.

108

Pirakatheeswari P. (N.D.). http://www.articlebase.com/marketing-articles/rural-marketinga-critical-

review-11-2352.html. Retrieved 08 02, 2011, from www.articlebase.com. 109

KC Beehura and JK Panda (2012) ,”Rural Marketing of FMCG Companies in India” VSRD-

IJBMR, Vol. 2 (2) 2012 65-74 available online www.vsrdjournals.com

93

3.7 KNOWLEDGE GAP

The objective of going through the various literature relevant to the topic of

research the researcher was able to understand what research work has already been

gone into in the similar area of his research. The reading also threw light on sources

of data and the way to approach those sources. This has also provided an insight in

regard to the niceties of the research subject. This reading was very much useful in

sorting out some of the problems which the researcher had encountered in the process

of this research. This valuable reading of the available literature enabled him to know

as to what were the observations and suggestions of the earlier researcher and is there

any resemblance with this researcher‟s observations and if not then helped him to find

out the causes for the same. This review also helped the researcher to identify the

current research gap to enable him to focus his attention to it.

3.8 KNOWLEDGE GAINED

The review of the related literature presented above has equipped the

researcher to understand the topic under research in its right perspective. It has

enabled him to keep abreast of the ground level reality so far as rural marketing is

concerned. The rural markets in India offer huge potential because of the spread of

education, increased purchasing power and infrastructure development over the past

two decades. The rural consumer psychology has also undergone sea change and they

are now insisting on branded products. The multinational companies are now

developing their marketing strategies keeping the rural markets in focus. The digital

media has also contributed for the development of the rural market. The government

is also spending heavily on the infrastructure development which will further

strengthen the rural markets in time to come.

3.9 CHAPTER SUMMARY

In this chapter the researcher has covered the review of various literature

relating to the topic of his research. The literature covered comprises of previous

research appeared in the form of research papers by eminent scholars, books on the

Rural Marketing, articles published in journals and periodicals, some of the

newspaper items which has got bearing on the rural market scenario in India. This

94

review of literature has been quite useful for the researcher as it provided direction for

the present research. It also helped in identifying research gap.

95

CHAPTER – IV

PROFILE OF THE STUDY PUNE DIST.

AND

HINDUSTAN UNILEVER LTD.

4.1 PROFILE OF PUNE DISTRICT

With a view to have an idea of the location of the various talukas in the

identified Pune district the following map of Pune District is given.

Fig. 4.1

MAP OF PUNE DISTRICT

96

4.2 HISTORICAL BACKGROUND

During the Rashtrakuta rule Poona district was called Poona or Punya from

which the present name has been derived. Pune is located on the confluence of Mula

and Mutha rivers. Pune has a triangular shape having base in the Sahydri Mountains.

There are number of Buddhist caves around Pune which reveals the Buddhist

influence. Yadavas ruled Poona during the Hindu period (300-1294 A.D.). Adilshah

ruled Poona during the medieval Muslim period (1295-1720). During 1819-1947

Poona was ruled by the British.

4.3 GEOGRAPHICAL LOCATION

As per the 2011 Census Pune district has been divided in 5 sub-divisions for

administrative convenience. There are 14 sub divisions and the following table details

these sub-divisions with the number of villages in each sub-division as of 2011

census.

Area of Pune district is 15643.00 Sq. Kms. as compared to the State area of

307713 Sq. Kms.

Density of population as persons per sq. km. of Pune District is 603 where as

the same figures for the State is 365.

Sex Ratio as number of females per 1000 males:

For the State For Pune District

Total 929 915

Rural 952 932

Urban 903 904

Literacy percent for the total population is 86.15 of which male literacy is

90.84 per cent and female population is 81.05 per cent.

97

Table 4.1: Administrative Sub-Division wise Tahsils of Pune District with

Number of villages

(Basis 2011 Census)

Sr.

No.

Name of the sub Division Tahsil Number of

villages

No. of Towns

1 Baramati Sub Div. Baramati 116 2

Daund 102 2

Indapur 143 1

2 Bhor Sub.Div. Purandar 108 2

Velhe 108 3

Bhor 195 1

3 Pune Sub. Div. Haveli 123 5

Pune City * 0 3

4 Khed Sub Div. Khed 186 6

Ambegaon 143 1

Junner 183 1

Shirur 115 3

5 Maval Sub. Div. Maval 187 5

Mulshi 145 2

(Source: Pune District Census Hand Book 2011)

The district levels officers like the Dist.Collector is the revenue head of the

district. The Superintendent of Police ensures the law and order in the district. The

Zilha Parishad Chief Executive Officer along with his other colleagues look after the

development of the district in the areas which have been specifically marked for Z.P.

4.4 DEMOGRAPHIC SCENARIO

Highlights of 2011 Census

On the basis of the population Pune District ranks second in the State of

Maharashtra.

On the parameter of urbanization, it has been observed that Pune district is a

leading urbanized district wherein 61.7 per cent of the population resides in

urban areas.

98

On the basis of the population density Fursungi village in Haveli tahsil is the

most populated with the population of 66,062 persons and Pdaalghar village in

Mulshi tahsil with 7 persons is the least populated village.

The world renowned automobile giants like Tata Motors, Ford, Bajaj

Automobile and Tata Engineering and Locomotive Com. (TELCO) are located

in the district.

Pune‟s Ganesh Festival is the most prestigious festival.

Table 4.2: Statistical profile of Pune District

Description 2011 2001

Actual Population 9,429,408 7,232,555

Male 4,924,105 3,769,128

Female 4,505,303 3,463,427

Population Growth 30.37% 30.73%

Area Sq. Km 15,643 15,643

Density/km2 603 462

Proportion to Maharashtra Population 8.39% 7.47%

Sex Ratio (Per 1000) 915 919

Child Sex Ratio (0-6 Age) 883 902

Average Literacy 86.15 80.45

Male Literacy 90.84 88.34

Female Literacy 81.05 71.89

Total Child Population (0-6 Age) 1,104,959 968,851

Male Population (0-6 Age) 586,665 509,367

Female Population (0-6 Age) 518,294 459,484

Literates 7,171,723 5,039,290

Male Literates 3,940,210 2,879,761

99

Female Literates 3,231,513 2,159,529

Child Proportion (0-6 Age) 11.72% 13.40%

Boys Proportion (0-6 Age) 11.91% 13.51%

Girls Proportion (0-6 Age) 11.50% 13.27%

Description Rural Urban

Population (%) 39.01 % 60.99 %

Total Population 3,678,226 5,751,182

Male Population 1,903,440 3,020,665

Female Population 1,774,786 2,730,517

Sex Ratio 932 904

Child Sex Ratio (0-6) 871 892

Child Population (0-6) 440,102 664,857

Male Child(0-6) 235,248 351,417

Female Child(0-6) 204,854 313,440

Child Percentage (0-6) 11.97 % 11.56 %

Male Child Percentage 12.36 % 11.63 %

Female Child Percentage 11.54 % 11.48 %

Literates 2,622,222 4,549,501

Male Literates 1,472,191 2,468,019

Female Literates 1,150,031 2,081,482

Average Literacy 80.98 % 89.45 %

Male Literacy 88.25 % 92.46 %

Female Literacy 73.25 % 86.12 %

100

4.5 AGRICULTURE SECTOR

The present study is related to rural area therefore the data relating to

agriculture sector is of utmost importance. The agriculture is the principle economic

activity and the main source of income in the rural area. Therefore the following table

depicts data relating to various aspects of the agriculture.

Table 4.3: Land Utilization (Thousand Ha)

Total Area Reported 1562

Forest Land 172

Area Not available for cultivation 64

Permanent Pasture and Grazing land 66

Land under Miscellaneous tree Crops 26

Cultivable Wasteland 33

Current Fallow 62

Other fallow 67

Net Sown Area 992

Total or Gross Cropped Area 1173

Area Cultivated more than once 181

Cropping Intensity (GCA/NSA) 118

Area under Irrigation 294

(Source: Annual Credit Plan 2013-14 under Lead Bank Scheme)

Table 4.4: Irrigation Coverage (Ha)

Total Area Available for Irrigation (NIA + allow) 1172952

Irrigation Potential created NA

Net Irrigated Area (Total area irrigated at least once) 269901

Area irrigated by canals / channels 124358

Area irrigated by wells 145543

Area irrigated by tanks NA

Area irrigated by other sources NA

Irrigation potential utilized (Gross Irrigated Area) 319995

(Source: Annual Credit Plan 2013-14 under Lead Bank Scheme)

101

Table 4.5: Major crops and cash crops are cultivated in Pune district.

Types Names Cropping Period

in Months

Market (District,

State, Export)

Major Crops

(Irrigated)

Ground nut, Tur, Soya,

Corn

Wheat, gram

June-July District and State

Major Crops (Non -

Irrigated)

Kharif--Bajra, Tur, Mug,

Udid, Sunflower

Rabi----Jowar

June -July

Sept- Oct

District and State

Major Cash Crops Sugarcane June-July

Sept-Oct.

Jan-Feb

District(sugar

factories)

Major Plantations Mango, Chickoo,

Pomegranate,

Anjir, citrus fruits

Rose flowers, shevanti

etc.

June- July

Throughout the

year

District, State and

Exports

(Source: Annual Credit Plan 2013-14 under Lead Bank Scheme)

4.6 ADMINISTRATIVE SET UP

For the purpose of smooth and efficient administration of the district Pune has

been divided into 14 talukas. The following table shows number of villages wise and

gender wise population of each taluka.

102

Table 4.6: Details of population of each Taluka of the Pune District

Sr.

No.

Name of the

Taluka

No. of

villages

Population as per 2011 census

Male Female Total

1 Ambegaon 143 119226 116746 235972

2 Baramati 117 221094 208506 429600

3 Bhor 195 94158 91958 186116

4 Daund 103 196283 184213 380496

5 Haveli 108 1316346 1119235 2435581

6 Indapur 143 198801 184382 383183

7 Junnar 183 202360 196942 399302

8 Khed 188 237868 212248 450116

9 Mawal 187 198487 179072 377559

10 Mulshi 144 90053 80953 171006

11 Pune City - 1700867 1604021 3304888

12 Purandhar 108 119906 115753 235659

13 Shirur 117 201152 184262 385414

14 Velhe 130 27504 27012 54516

Total 1866 4924105 4505303 4505303

(District Census Hand Book 2011)

Table 4.7 : Classification of the Talukas sub-division wise

Sr.

No.

Name of the Sub Division Sr.

No.

Name of the Sub

Division

1 Baramati Sub Div. 4 Pimpri – Chinchwad *

Baramati 5 Khed Sub Div.

Daund Khed

Indapur Ambegaon

2 Bhor Sub.Div. Junner

Purandar Shirur

Velhe 6 Maval Sub. Div.

Bhor Maval

103

3 Pune Sub. Div. Mulshi

Haveli

Pune City * Pimpri Chinchwad

Corporations

(Total area under cultivation, Principal Crops, Marketing Arrangements, (APMC))

4.7 INFRASTRUCTURAL DEVELOPMENT

Communication

The district headquarter has been very well connected by bus routes. Pune at

present has an international airport which connects important destinations worldwide.

The present airport infrastructure is inadequate and there has been a proposal for

setting up a new international airport in Purandar Taluka for which site has been

surveyed and finalized. It will take some time to construct it. Pune is a railway

junction and has been connected to all the important destinations in India. Pune City

has been identified for its conversion as “SMART CITY” and accordingly it is

expected that the overall infrastructure in the city will be improved in the coming

years. Pune Bangalore national highway (NH4) connects the southern states. Pune is

the city where the total vehicle population exceeds the total population of the city.

Healthcare

Being a metropolitan centre Pune city has a advanced health care facilities

wherein all specialties are available. Even in the interior part of the district medical

facilities are available. Because of the spread of communication network for advanced

treatment patients not only from the Pune District even from Western Maharashtra do

come to Pune.

Educational Canvas

Over the years Pune Metropolitan City has been developed as educational hub.

There are over 7 universities in Pune. Pune is recognized as the Oxford of the East.

The standard of education is also good. Education in all the disciplines is available in

the city. Even number of foreign students studying in India is of sizable number.

Because of the quality of education even in the professional courses, Pune colleges

provide placement facility wherein renowned companies participate.

104

Energy

All the villages in Pune city are now having electric connections. However, in

the interior part of the district due to power shortage disruption in the power supply is

quite frequent.

4.8 INDUSTRIAL SCENARIO

A) Manufacturing sector

Right from the early period Pune and its vicinity is identified for industrial

development. In the early years it had a diversified industrial units but during the past

two decades Pune has been developed as an automobile hub. All the world automobile

manufacturing giants have their presence in and around Pune. To name a few of the

automobile manufacturers we have Tata Motors, Force Motors, Mahindra &

Mahindra, Ford Motors etc. These automobile industries have developed vendors in

the region. This has provided employment to a large number of youths in the area.

B) Services Sector

During the past two decades Pune has been developed as an Information

Technology (IT) hub. World reputed companies like Infoysis, Tata Consultancy

Services, Cognizant Technologies, Persistent Software Technology, KPIT, etc. have

their presence in and around Pune city. This again has provided job opportunities to a

sizable number of youth. This concentration of the IT industries has also helped in

developing number of professional colleges which cater to the requirement of these IT

companies to provide trained man power.

C) Banking Sector

In Pune city there is a well knit network of banking facilities. All the banks in

India have their presence in Pune. Not only that the leading banks have their

controlling offices for speedy decisions and close supervision. All types of banks i.e.

Public sector, private sector banks, foreign banks, and cooperative banks have number

of branches located in and around Pune. There is good penetration of the bank

branches in the entire Pune district.

105

4.9 PROFILE OF HINDUSTAN UNILIVER LTD.

Introduction to the company

Amongst the various fast moving consumer goods (FMCG) marketing

companies, Hindustan Unilever Ltd. is the leading FMCG in India. The company‟s

brands namely Dove, Surf, Kissan, Brue and Pureit are very much popular amongst

the masses and these products help the purchasers to get quality products.

Company’s business coverage

This company has a wide range of products and it has developed over the

decades extensive consumer insight, developed their own branded products,

constantly pursuing research and development of newer products with added benefits

to the consumers. The company is dedicated to marketing sustainable living products

and persistently trying its best to new approaches to marketing which will have

positive impact on the environment.

India Tobacco Co. (ITC), Colgate, Hindustan Lever Ltd. (now Hindustan

Unilever Ltd.) Cadbury – engaged in marketing of Fast Moving Consumer Goods

were the prominently players in India. As the number of companies was limited they

used sale their products at premium. There was no much competition as such. Their

profit margins were relatively high. This position dramatically changed subsequent

1991 when Indian govt. adopted policy of liberalization, privatization and

globalization.

Hindustan Unilever Limited (HUL) is an Indian consumer goods company

based in Mumbai, Maharashtra. It is owned by Anglo-Dutch company Unilever which

owns a 67% controlling share in HUL as of March 2015 and is the holding company

of HUL. HUL's products include foods, beverages, cleaning agents, personal care

products and water purifiers.

HUL was established in 1933 as Lever Brothers and, in 1956, became known

as Hindustan Lever Limited, as a result of a merger between Lever Brothers,

Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in

Mumbai, India and employs over 16,000 workers, whilst also indirectly helping to

106

facilitate the employment of over 65,000 people. The company was renamed in June

2007 as "Hindustan Unilever Limited".

Hindustan Unilever's distribution covers over 2 million retail outlets across

India directly and its products are available in over 6.4 million outlets in the country.

As per Nielsen market research data, two out of three Indians use HUL products.

Hindustan Unilever is the premier fast moving consumer goods marketing

company. Following are the brands which are marketed by this company. The

company‟s brands are popular amongst the villagers. The company‟s products are rich

in quality and accepted by the villagers. These products are:

Food brands:

Annapurna salt and atta

Bru coffee

Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea

Kissan squashes, ketchups, juices and jams

Lipton tea

Knorr soups & meal makers and soupy noodles

Kwality Wall's frozen dessert

Modern Bread, ready to eat chapattis and other bakery items(now sold to

Everstone Capital)

Magnum (ice cream)

Homecare Brands

Active Wheel detergent

Cif Cream Cleaner

Comfort fabric softeners

Domex disinfectant/toilet cleaner

Rin detergents and bleach

Sunlight detergent and colour care

Surf Excel detergent and gentle wash

Vim dish wash

107

Magic – Water Saver

Personal Care Brands:

Aviance Beauty Solutions

Axe deodorant and aftershave lotion and soap

LEVER Ayush Therapy Ayurvedic health care and personal care products

Breeze beauty soap

Clear anti-dandruff hair products

Clinic Plus shampoo and oil

Close Up toothpaste

Dove skin cleansing & hair care range: bar, lotions, creams and anti-perspirant

deodorants

Denim shaving products

Fair & Lovely skin-lightening products

Hamam

Lakmé beauty products and salons

Lifebuoy soaps and hand wash range

Liril 2000 soap

Lux soap, body wash and deodorant

Pears soap

Pepsodent toothpaste

Pond's talcs and creams

Rexona soap

Sunsilk shampoo

Sure anti-perspirant

Vaseline petroleum jelly, skin care lotions

TRESemmé

TIGI

108

4.10 COMPANY’S FINANCIAL ACHIEVEMENTS DURING

THE STUDY PERIOD.

The company‟s performance for the past 6 years is given below which speaks

of the company‟s achievements.

Table 4.8 : Position as on 31st March of each year Rs. Crores

Particulars 2010 2011 2012 2013 2014 2015

Gross Sales 18,220.27

20,285.44 22,800.32 26,679.76 28,947.06 32,086.32

Profit after

tax

2,102.68

2,153.25 2,599.23 3,314.35 3,555.32 3,842.86

Segment wise sales in %

Soaps &

Detergents

48

46 48 49 49 49

Personal

products

30

32 31 31 29 29

Beverages

and

packaged

foods

20 20 19 18 18 18

(Source: Annual Report of HUL for the year 2014-15 available on the internet.)

The above data revels that there is a continuous growth in the gross sales of

the company over the study period of this research. Between 2010 to 2015 the gross

sales have been increased by 76.10%. The sales in terms of percentage, of soaps and

detergents have reached stagnation during the period 2013 to 2015. The sales of

personal products in percentage terms have been stagnated during 2014 and 2015. In

respect of Beverages and Packaged food products the sales have been declined from

20% in 2010 to 18% in 2015. This is mainly because of the increased competition

from the new players mainly Patanjali Products .

109

4.11 OPERATIONAL HIGHLIGHTS 2014-15

In spite of number of challenges, the company is achieving growth and

enhanced margins ensuring innovations keeping in mind the cost reduction and

enhancing operational efficiency.

Domestic consumer business grew 9% with an underlying volume growth of

4%.

Operating margin expanded +40 bps.

Strong track record of cash generation was sustained with cash from

operations at over Rs. 5,000 crores, up Rs. 462 crores over the previous year.

Total dividend of Rs. 13.00 per share was declared for the Financial Year.

Fig. 4.2

Companies gross sales from 2005 to 2014-15

Rs. In Crores

1198

0

1246

0

1482

5

2198

0

1760

5

1948

0

2197

6 2623

3

2810

6

3124

0

0

5000

10000

15000

20000

25000

30000

35000

2005 2007 2010 2012 2014

Gross Sales

(Source: HUL Annual Report 2014-15)

110

4.12 COMPANY’S MARKETIG STRATEGIES

The company is targeting to reach the remotest corners of India to serve its

patron consumers. The company focuses on strengthening the retail reach and

stepping up in store execution. The company had achieved great success in extending

its Perfect Stores Programme to over 1 million stores since 2013. The company has

consciously built its image which has been recognized by its key customers as the

Supplier of choice.

The company has launched a popular networking of Shakti Entrepreneurs (the

programme is named after the popular cartoon Shaktiman). The project Shakti today

has over 1.00 lakh Shakti Entrepreneurs who are distributing the company products in

the villages using bicycles which is the most convenient and cheaper mode of

transport.

This ideal communication mode used to deliver the company‟s products has

immensely helped in putting in place an efficient Supply Chain and has drastically

reduced its overhead costs thereby improving its strength in the today‟s competitive

market. This has in turn increased its operating profits.

4.13 CONSUMERS INSIGHTS FOR INNOVATION

HUL‟s thrust is on understanding of their customers. The company focuses on

the quantitative studies and for better understanding of the customer spends time with

consumers in stores and in their homes. This is with a view to understanding as to

what value the consumers more and what they want from the company in their

product. The company also is in contact with the consumers through digital

communication and uses social network. The company forecasts future trends to enjoy

competitive edge.

4.14 TECHNOLOGY AT WORK:

In order to have sustainable growth HUL heavily banks on Research and

Development. HUL has advantage of its global Research and Development expertise.

Over 6000 professionals are there in R & D. who are building brands using science

and technology.

111

4.15 SALES

HUL prefers to work closely with retailers in order to win in the market place.

The company ensures that their brands are always available and that they are properly

displayed and in the right price bracket. This helps the company to ensure that the

company becomes supplier of choice for the consumers and the retailers.

4.16 CENTRALIZED LOGISTIC EXPERTISE

HUL is continuously evolving its logistics network and investing in

warehousing infrastructure and technology to support business growth, deliver

savings, reduce stocks, reduce carbon emissions and improve customer service in an

ever-changing environment.

4.17 GENERATING CONSUMER LED GROWTH

Through massive advertisements through news papers and digital media the

company ensures that their brands and products get the consumer‟s first choice. In this

cut throat competition era the traditional marketing media channels are also being

used by the company in a big way to tap the rural marketing potential. The thrust of

the marketing strategy is on creating entire new sales and marketing opportunities.

In 2014, many consumers faced tough conditions as economic uncertainty

held back growth around the world. Meanwhile, consumption continues to be linked

to many of the world‟s biggest problems –deforestation, climate change, water

scarcity, malnutrition and unhealthy diets. However, each of our categories continue

to innovate to meet the challenges posed by these trends and changing consumer

preferences, such as products that are sustainably sourced.

Today nine out of ten Indian households are using HUL products which amply

prove that the company has ability to make a difference through their brands and can

bring a social change. Through the Fair & Lovely Foundation, the brand has been

empowering Indian women. Several campaigns were launched to reach our

consumers more effectively. Red Label launched the „Swad Apnepan Ka‟ campaign

to reinstate its core category benefit of taste and of bringing people together.

112

Pond‟s deployed a new look that stood for authentic beauty rooted in

authoritative science. Lipton green tea launched with a new identity. The ice cream

and frozen desserts business delivered a very strong performance.

Surf Excel, Wheel, Rin and Sunlight continued to lead the laundry category in

India. Surf Excel, led the growth with a strong focus on reaching out to new

consumers beyond core geographies and with formats that cater to varying needs.

Company has created a consumer contact programme aimed at accelerating

the growth and adoption of small and emerging categories in rural India. Through

this, Company has reached more than 2.5 million rural consumers and contacted

8,00,000 school children. This programme is now active in over 8,000 villages across

the country.

4.18 SUMMARY

In this chapter the researcher has presented the broad profile of the study area

i.e. Pune District and the identified talukas for this study. So also the brief profile of

the identified company i.e. Hindustan Unilever Ltd. has also been presented in this

chapter. This will help the reader to have a perspective of the study area and the

company to understand the observations and conclusion drawn in this research.

113

CHAPTER – V

DATA ANALYSIS AND INTERPRETATION

5.1 INTRODUCTION

In order to achieve the objectives of this research and to prove the hypotheses

framed at the beginning of this research, the researcher decided to collect primary data

from two sources. 1) The villagers who are the consumers and 2) The village shop

keepers who are running the business in the rural area. Keeping these objectives and

the hypotheses in mind, the researcher framed two questionnaires for each category of

the respondents. Apart from the personal data the questionnaire provided some

questions through which the perception of the individual as well as the shop keepers

was obtained about the changing marketing scenario.

So far as the individual village consumers the sample of 400 respondents

randomly selected from the identified villages from the study area and 50 shop

keepers from these villages were administered the questionnaire. The data so collected

has been presented hereunder and has also been analyzed.

The data so collected has been presented in this chapter by using the following

sequence:

1) Type of data

2) Rationale for its inclusion in the questionnaire

3) Data collected

4) Graphical presentation

5) Interpretation

5.2 PRIMARY DATA PRESENTATION

1. Villagers’ Data

A) Gender wise classification of the respondents

The gender wise classification of the respondents has a bearing on the

consumption pattern of the goods. e.g. If in the family more number females are there

naturally their consumption of cosmetics will be more. Keeping this aspect in mind

the researcher had called for this data which is presented hereunder:

114

Data presentation

Table 5.1: Gender wise classification of respondents

Male Female Total Nos.

224 176 400

Graphic presentation

Fig. 5.1

Gender wise classification of respondents

224

176

Male Female

The above data revealed that in the respondent‟s families there were 54 per

cent male family members while the remaining 46 per cent were female members.

B) Size and Composition of the family

Rationale: The size and composition of the family was vital, as the

requirement of the products of HUL volume wise was dependent upon the size of the

family. So also the data relating the earning members of the family was collected as

the family‟s purchasing power was dependent on it. Keeping this aspect in view this

data was collected.

Total number families = 400

Total number of persons in the families of the respondents = 2147

115

a) No. of persons in an average village family = 2147

5400

*

b) No. of males in an average village family = 1128

3400

*

c) No. of fameless in an average village family =1019

2400

*

*(fractions have been ignored)

It was seen that the average family size was 5 persons wherein 3 persons were

males while 2 persons were females.

Table 5.2 : Earning status wise composition of the respondents

Earning Members Non Earning Members Total

277 123 400

The above data revealed that out of the 400 respondents 69.25 per cent were

earning members and 30.75 per cent were non earning members.

Fig. 5.2

Earning status wise composition of the respondents

277

123

Earning Members Non Earning Members

116

2. Education

Rationale

The education of the respondent‟s family had a bearing on the consumption of

toiletries and cosmetics as well as the other products of HUL. If the family was

educated naturally they will be hygiene oriented.

Data presentation

Table 5.3 : Education wise distribution of the respondents

Illiterate Upto 7th

Std.

Upto 12th

Std.

Graduate Post

graduate

Total

18 131 162 72 17 400

The above data revealed that those who had studied upto 7th

standard were

32.5 per cent 40.5 per cent of the respondents had studied upto 12th

Standard, while

18 per cent were graduates, 4.25 per cent were post graduates.

Graphic presentation

Fig. 5.3

Education wise distribution of the respondents

18

131

162

72

17

0

20

40

60

80

100

120

140

160

180

Illiterate Upto 7th

Std.

Upto 12th

Std.

Graduate Post

graduate

Respondents

117

Interpretation:

The above data shows that 32.75 per cent of the respondents had studied upto

7th

standard while 40.5 per cent had studied upto 12th

standard. 18 per cent were

graduates while only 4.25 per cent were post graduates.

3. Type of family

Rationale: In the villages the percentage of joint families is relatively more. If

it is a joint family the numbers of guests visiting the family are more and then their

domestic requirements are also more. Keeping this aspect in view this data is

collected.

Data presentation:

Table 5.4 : Category wise composition of the respondents’ families

Joint families Nuclear families Total

282 118 400

Graphic presentation

Fig. 5.4

Category wise composition of the respondents’ families

282

118

Joint families Nuclear families

118

Interpretation

The above data revealed that 70.5 per cent families were joint families while

the rest i.e. 29.5 per cent were nuclear families.

4. Number of family members

Rationale: The consumption of the toiletries, cosmetics, tea etc. depends on

the number of the family, hence this data had been included in the questionnaire.

Presentation of the data:

Table 5.5 : Size wise composition of the respondents’ families

Graphic presentation

Fig.5.5

Size wise composition of the respondents’ families

360

21 19

0

50

100

150

200

250

300

350

400

Less than 7 Over 8 but less

than 11

Over 12

Respondents

Less than 7 Over 8 but

less than 11

Over 12 Total

360 21 19 400

119

Interpretation

The above data revealed that 90 percent families who had less than 7 family

members. The number of families having 8 family members was 5.25 per cent while

hardly 4.25 per cent were having more than 12 family members.

5. Occupation

Rationale:

The occupation of the family had a bearing on the standard of living and the

consumption of toiletries and cosmetics, tea etc. If the family was engaged

exclusively in agriculture and its allied activities like dairy, poultry etc., it needed of

toiletries and cosmetics were less. However if one had employed his /her needs of

these items were more.

Presentation of Data

Table 5.6: Occupation wise classification of the respondent families.

Agriculture Activity

allied to

agriculture

Self

employed

Service Combined

activities from

1 to 4

Retired Total

158

52 38 62 23 67 400

Graphic presentation

Fig. 5.6

Occupation wise classification of the respondent families

158

52

38

62

23

67

0

20

40

60

80

100

120

140

160

Agriculture Self

employed

Combined

activities

from 1 to 4

Respondents

120

Interpretation:

The data revealed that 52.5 percent of the respondents were having agriculture

and activity allied to agriculture. 12 per cent were pursuing activity allied to

agriculture, 9.5 per cent were self occupied, 15.5 per cent were in service, 5.75 per

cent were pursuing combined activities and 16.75 per cent were retired.

6. Family income per annum:

Rationale:

Family income of the respondent had definitely a great bearing on the family‟s

spending on the toiletries, cosmetics and other products like shampoos, and tea etc.

marketed by HUL.

Data presentation

Table 5.7 : Family income wise classification of the respondent families

Less than

Rs. 1.00

lakhs

Between

Rs.1 to 2.5

lakhs

Between

Rs.2.5 lakhs to

5 lakhs

Between Rs.5

lakhs to R.10

lakhs

Over Rs.10

lakhs

Total

65 228 68 27 12 400

Graphic presentation:

Fig. 5.7

Family income wise classification of the respondent families

65

228

68

2712

0

50

100

150

200

250

Less than Rs.

1.00 lakhs

Between

Rs.1 to 2.5

lakhs

Between

Rs.2.5 lakhs

to 5 lakhs

Between

Rs.5 lakhs to

R.10 lakhs

Over Rs.10

lakhs

Respondents

121

Interpretation:

It was observed that 57 per cent respondents were having annual income

between Rs.1 to 2.5 lakhs, while 17 per cent respondents were having annual income

between Rs.2.5 to 5 lakhs. 6.75 per cent of the respondents were having annual

income between Rs.5 to 10 lakhs and only 3 per cent of the respondents were having

annual income over Rs.10 lakhs.

7. Factors those are valued by the respondents while taking buying decision:

Rationale: This was a vital aspect that needed to be understood. Consumer‟s

buying decisions were dependent on several factors. It was necessary for the

marketing organization to understand this aspect very clearly so that they can plan

their marketing strategy focusing on those particular aspects.

Data presentation

Sr.

No.

Factors Not at all

important

Less

important

Neutral Important Most

important

Total

1 Quality 12 38 123 179 48 400

2 Price 14 56 90 168 72 400

3 Appearance 135 68 114 67 16 400

4 Durability 68 26 72 186 48 400

5 Availability 7 38 145 132 78 400

6 Credit facility 18 48 182 88 64 400

7 Recommendations

from friends/

relatives

29 68 206 82 15 400

8 Availability of

gifts

89 121 88 59 43 400

Interpretation:

It was revealed that 56.75 per cent of the respondents valued the quality of the

product. Price was also rated by 60 per cent while appearance was not at all given

weightage, durability was also a factor weighed by 58.5 per cent respondents, credit

facility had less preference in decision making, Recommendations from the friends /

122

relatives were also not given much importance in decision making. Same was the case

about the availability of gifts.

8. Source of purchasing products

Rationale: This was an aspect which had a bearing on the marketing source

available in the village. There are various avenues open for the villagers which had

given in the following table. In some villages weekly bazzars were organized which

help the nearby villages to effect their purchases.

Presentation of data:

Table 5.8 : Source of procurement of the requirements

Local provision

store

Nearby

town

Visiting

vendors

During weekly

bazzar at the

nearby town

Total

168 62 105 65 400

Graphic presentation

Fig. 5.8

Source of procurement of the requirements

168

62

105

65

0

20

40

60

80

100

120

140

160

180

Local provision

store

Nearby town visiting vendors Weekly bazzar

Respondents

123

Interpretation:

The above data revealed that 42 per cent of the families procured their

requirement from local provision stores, 15.2 per cent procured it from the nearby

town, 26.25 per cent families procured their requirements from visiting vendors and

16.25 per cent procured it from the weekly bazzar. It means major source of

procurement of their requirements was local provision stores, or visiting vendors.

8. Product awareness position:

Rationale: This data was sought from the respondents to get feedback on the

awareness of the respondents of the products of various companies. This data was

called under 4 categories of goods:

Toilet Soap Detergent soap Tooth paste Hair shampoo

Observation:

It is observed that majority of the products which were listed in the

questionnaire were known to the respondents with the honourable exception of the

items under each category:

Products which for which there is low awareness in the identified respondents

Toilet Soap Detergent soap Tooth paste Hair shampoo

Medi mix Surf Excel Anchor White Nyle

Cinthol Babool Head & Shoulder

Vatika

So far as the products of HUL were concerned those were known in the

identified villages.

9. Experience of the HUL products

With a view to understanding about the actual utilization of the HUL‟s

different products by the respondents the feedback was sought which reveals as under:

Product Not at all

Lux This was used by 34 per cent of the respondents mostly during Diwali

Lifeboy This was used by 22 per cent of the respondents.

Rin This was used by 26 per cent of the respondents.

124

Wheel This was used by 18 per cent of the respondents.

Pepsodent About 30 per cent of the respondents had used this product.

Close up Only 20 per cent of the respondents had used this product.

Clinic plus This was not at all used by the respondents.

Sunsilk Only 25 per cent of the respondents had used this product.

Taj Mahal Tea Only 28 per cent of the respondents had used this product.

Taaza Tea 17 per cent of the respondents had used this product.

Interpretation:

From the feedback it is observed that the products of HUL had good

penetration and there was good response from the rural area. In respect of Tea, Clinic

plus, Sun silk the awareness needs to be increased.

10. Source through which the knowledge of HUL products was available

Rationale: This is also a vital aspect so far as sells of HUL products are

concerned. Knowledge of the product is very much essential for the consumer.

Knowledge of which advertisement area is powerful in the rural area can be obtained

through this feedback.

Data presentation:

Table 5.9 : Sources through which the knowledge of HUL products were

available

Product Television

No. of

Respondents

% to

total

Radio

No. of

Respondents

% to

Total

News Paper

No. of

Respondents

%

total

Wall painting

No. of

Respondents

%

total

Total no. of

Respondents

Lux/

Lifeboy 165 41.25 45 11.25 58 14.50 132 33.00 400

Rin/ Wheel 168 42.00 65 16.25 67 16.75 100 25.00 400

Pepsodent /

Close up 182 45.5 86 21.50 78 19.50 54 13.5 400

Clinic + /

Sunsilk 178 44.50 79 19.50 68 17.00 75 19.00 400

Taj Mahal

Tea/Taaza 88 22.00 26 6.50 124 31.00 162 40.5 400

125

Interpretation:

In the rural area television and radio were the popular Media through which

HUL products had reached the respondents. Wall painting at prominent place was

seen by one and all when they pass through the main road. Therefore, wall painting

was a relatively cheaper and makes a permanent mark on the passersby. Here it will

be appropriate to state that in reality it is a cumulative effect of various advertising

modes adopted by the Company. A villager sees the advertisement on the wall

painting, he either views it on the T.V. Set or hears it on radio, also watches it in the

news paper. Therefore, it is a cumulative impact of knowing the products.

11. Availability of the HUL products at the rural area

Rationale:

It will not be much use if the advertisement is properly made and there is no

proper backing of availability of the products in the market. Therefore, in order to

have this vital input, the data has been collected and presented hereunder:

Data presentation:

Table 5.10 : Availability of HUL Products at the rural area

Product Never

available

Rarely

available

Can’t

say

Mostly

available

Always

available

Total

Lux/Lifeboy 0 18 50 132 200 400

Rin/Wheel 0 15 35 142 208 400

Pepsodent/

Close up

0 20 250 95 35 400

Clinic + /

Sunsilk

65 35 28 240 32 400

Taj Mahal

Tea/Taaza

83 64 226 15 12 400

Interpretation

It is observed that Lux, Lifebuoy, Rin, wheel, were usually available in the

rural market. Pepsodent and Close up tooth paste were rarely available, while Sunsilk

126

shampoo was widely available in the sachet packing. Clinic + shampoo and Taj Mahal

Tea/ Taaza were not in good demand and hence rarely available.

12. Villagers’ Choices and Perceptions

Keeping in view the objectives set out and hypotheses formulated at the

beginning of this research the researcher had prepared well designed questionnaires

for the identified respondents, through which individual villager‟s choices and

perception was solicited on the predesigned statements providing 5 different options.

The responses received from the respondents have been tabulated, graphically

presented and followed by its interpretation.

Statement 1 –Since last ten years or so we get standard company’s products in

our village

Rationale: Prior to adoption of the policy of globalization, liberalization, and

privatization, in 1991 onwards, there was no much penetration of the daily utility

products of standard companies in the rural markets. Prior to globalization the village

retailers used to stock locally made products which were bit cheap as well as those

were not attractively packed and were having comparatively low quality. The

villagers were buying those in the absence of knowledge and availability of standard

products. After the globalization, there was inflow of multinational marketing

organization in India and they started penetrating their standard company‟s products

in the rural market.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly

disagree

Total

84 142 117 40 17 400

127

Fig. 5.9

Respondent’s views on: Since last ten years or so we get standard company’s

products in our village”

84

142

117

40

17

0

20

40

60

80

100

120

140

160

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

The above data revealed that 56.5 percent respondents had stated that they

fully subscribe the statement while 29.5 per cent of the respondents remained neutral.

10 per cent respondents disagreed and 4.25 per cent strongly disagreed with the

statement. It means after the globalization the standard company‟s products were

available in the rural markets also. The majority of the respondents agreed with the

statement.

Statement 2 –“We get quality products since couple of years.”

Rationale: As has been stated in the earlier rationale there had been number of

multinational companies that came to India and are trying to explore the maiden rural

market by introducing the good quality products of the standard companies. This was

in contrast to the earlier experience when the rural markets were stocking locally

manufactured goods which were rather cheap and of inferior quality. Through this

statement the researcher sought the response on availability of good quality products

in the rural market.

128

Respondent’s responses were as under

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Total

25 186 88 62 39 400

Fig. 5.10

Respondent’s views on: –“We get quality products since couple of years.”

25

186

88

6239

0

20

40

60

80

100

120

140

160

180

200

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

The above data revealed that 52.75 percent respondents had stated that they

fully subscribe the statement while 22.00 per cent of the respondents remained

neutral. 15.5 per cent respondents disagreed and 9.75 per cent strongly disagreed with

the statement. It means after the globalization the quality products were available in

the rural markets also. The data revealed that majority of the respondents had agreed

with the fact that now quality goods are available in the rural market.

129

Statement 3 –“Before globalization we were getting local made washing powder

and such other goods”

Rationale: Because of the poverty the purchasing power of the rural masses was

low and hence they were unable to pay for the good quality branded goods. Over the

past few years because of the Govt. of India‟s developmental efforts there is

development of irrigation potential as well as several rural employment schemes have

been introduced through which the purchasing power of the rural masses has

undergone change which has a positive change on their life style also. This is

reflected that gradually the low quality goods which were locally manufactured goods

which used to be earlier available in the rural markets have gradually paved the way

for the standard quality / branded goods. The researcher wanted to have perception of

the rural masses on this score and hence this statement was included in the statement.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

113 166 28 44 49 400

Fig. 5.11

Respondent’s views on: – –“Before globalization we were getting local made

washing powder and such other goods”

113

166

28

4449

0

20

40

60

80

100

120

140

160

180

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

130

Interpretation

69.75 per cent of the respondents confirmed that prior to globalization they

were using locally made washing powder and such other goods and that now the

situation is changed, 7 per cent respondents preferred to be neutral, 11 per cent

respondents disagreed and 12.25 per cent respondents strongly disagreed with the

statement.

Statement 4 –“Now we see standard company’s delivery vans visit our village”

Rationale: In good old days (prior to globalization) there used to be availability of

the local made stocks which the vendors used to get it from the nearby town. They

used to buy it from the wholesalers. After the globalization the major change was

witnessed that the domestic as well as multinational companies started penetrating in

the rural markets making the standard quality goods to the rural masses whose

purchasing power was improved. In order to ensure that the quality branded products

are regularly available there has to be a regular supply in the rural market. Because of

the improved road network in the rural area now the company‟s representatives use

their company‟s vehicle and supply the stocks in the rural areas. The company

vehicles display their company‟s products on it so that the consumers can know very

well about the supplies of the specific goods. These vehicles are usually seen

frequently on the roads and visible to the villagers.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

152 138 42 34 102 400

131

Fig. 5.12

Respondent’s views on: – “Now we see standard company’s delivery vans visit

our village”

152138

42 34

102

0

20

40

60

80

100

120

140

160

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

72.5 per cent of the respondents agreed with the statement means majority of

them had confirmed the supply mode of the standard quality goods in the villages.

10.5 per cent respondents preferred to be neutral, 8.5 per cent disagreed and 25.5 per

cent strongly disagreed with the statement.

Statement 5 –“Due to advertisements on the television sets we get to know the

latest products and their uses.”

Rationale: Needless to say that whenever a new product is introduced in the

market it should be properly introduced to the ultimate consumer. There are various

modes of advertising and the television adds is the powerful media. Now because of

the 100% electrification of the villages, the penetration of the colour Television Sets

and the Tata Sky or other cable networks the companies prefer to advertise their new

products on the television. The advertisements though costly are effective as in a short

time the product can be shown, and its utility and specialty can be highlighted using

132

attractive background. Through this statement the researcher wanted to collect the

feedback on how the respondents come to know about the new product.

Respondent’s responses were as under

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Total

168 152 65 10 5 400

Fig. 5.13

Respondent’s views on: “Due to advertisements on the television sets we get to

know the latest products and their uses.”

168152

65

10 5

0

20

40

60

80

100

120

140

160

180

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

80.00 per cent of the respondents agreed with the statement means majority of

them had confirmed that they come to know of the new products through the

television medium. 16.25 per cent respondents remained neutral while the percentage

of disagreed and strongly disagreed worked out 3.75 per cent.

133

Statement 6 –“ Due to development of all weather roads now number of vendors

put up their stalls in the weekly market in the nearby town.”

Rationale: In number of villages usually there is organization of weekly Bazzar

wherein the visiting vendors come and sale the daily consumption goods to the

villagers. This weekly bazzar also benefits the nearby villages. Over the years the

government has spent heavily on developing all weather roads which facilitates

number of weekly bazzar vendors to regularly put up their stalls in the bazzar day.

Because of these all weather roads the number of vendors visiting the weekly bazzar

has considerably increased. When the vendors are more naturally the availability of

options also increases. In order to understand the grass root situation this feedback

was sought through the responses on this statement.

Respondent’s responses were as under

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Total

172 164 45 10 9 400

Fig. 5.14

Respondent’s views on: “Due to development of all weather roads now number

of vendors put up their stalls in the weekly market in the nearby town.”

172 164

45

10 9

0

20

40

60

80

100

120

140

160

180

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

134

Interpretation

The above data revealed that 84 per cent of the respondents had subscribed the

views given in the statement. Thus the development of all weather roads had resulted

in the increase in the number of vendors in the weekly bazzar. 11.25 per cent

respondents were neutral and 4.75 per cent accounted for disagree and strongly

disagreed.

Statement 7 – “The colorful advertisements depicting the uses of the new

products help us to understand the uses of it.”

Rationale: The very purpose of advertizing is to catch the attention of the users

i.e. the consumer. Naturally colourful advertisements are catchier than the black and

white advertisements. These advertisements usually focus the attention on the uses of

the products that is being advertised. The statement has been included to have the

respondents perception about the colourful advertisement and the uses of the products.

Respondent’s responses were as under

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Total

142 182 26 14 36 400

Fig. 5.15

Respondent’s views on: “The colorful advertisements depicting the uses of the

new products help us to understand the uses of it.”

142

182

26 14

36

0

20

40

60

80

100

120

140

160

180

200

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

135

Interpretation

The above data showed that 81 per cent of the respondents had fully

subscribed the views given in the statement. Therefore, the advertisements helped the

consumers to understand the usages of the products clearly. 6.5 per cent respondents

remained neutral and 12.50 per cent of the respondents either disagreed or strongly

disagreed.

Statement 8 – “Since the last decade our family budget for toiletries has sizably

increased”.

Rationale: Over the past decade there is a very good development of the rural area on

all fronts. There is increase in the irrigation coverage. The road construction has also

improved and almost all weather roads have been connected the villages. There is

improvement in the rural employment. Because of the T. V. adds the general masses

have been also aware of the importance of the cleanliness and overall appearances.

The improvement in the purchasing power has also resulted in getting the toiletries

flattened as compared to the earlier outlay. This is a vital data which contributes

supporting to the increased demand for the toiletries.

Respondent’s responses were as under

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Total

155 145 35 52 13 400

136

Fig. 5.16

Respondent’s views on: – “Since the last decade our family budget for toiletries

has sizably increased”.

155 145

35

52

13

0

20

40

60

80

100

120

140

160

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

The data revealed that 75 per cent of the respondents had vouched in favour of

the statement. It means majority of the respondents agreed to the statement content.

8.75 per cent respondents remained neutral and the percentage of those respondents

who either disagreed or strongly disagreed remained at 16.25 per cent.

Statement 9 – “Now we need not go to the nearby town for getting branded

goods of daily use”

Rationale: In good old days particularly before the entry of multinational marketing

companies in India the availability of the branded goods was mainly in the urban and

metropolitan cities/towns. Now after the development of the rural area when the

purchasing power of the rural masses has considerably increased and that construction

of all weather roads connectivity of the villages has increased, the branded goods are

now made available in the rural areas. Earlier the villagers were required to go to the

nearby town for the branded goods which is not the case now as those available in

their very locality.

137

Respondent’s responses were as under

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Total

168 142 65 23 12 400

Fig. 5.17

Respondent’s views on: – “Now we need not go to the nearby town for getting

branded goods of daily use”

168

142

65

23 12

0

20

40

60

80

100

120

140

160

180

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

The above data showed that 77.5 per cent of the respondents had fully

subscribed the views given in the statement. Therefore, the villagers were not required

to go to the nearby town as the branded goods were now available in the villages also.

16.25 per cent respondents remained neutral and 8.75 per cent respondents disagreed

and strongly disagreed.

138

Statement 10 – “I really appreciate the packaging in sachets as we can use it

instantly and it is cheaper too.”

Rationale: The goods marketed in the various markets are packaged in different way

and different quantities. Particularly if the goods are packaged in a sachet form

naturally it is available at relatively low price. In rural area usually liquidity is

available in small quantity. So also there are difficulties in proper storage of the large

packings. Therefore, the villagers go in for sachet packing and use it one time and

throw it away. Particularly hair oil, shampoos, eatables etc., sachet packaging is

preferred. Through this statement the researcher tried to understand the mindset of the

respondents about sachet packing.

Respondent’s responses were as under

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Total

196 134 55 7 8 400

Fig. 5.18

Respondent’s views on: – “I really appreciate the packaging in sachets as we can

use it instantly and it is cheaper too.”

196

134

55

78

0

20

40

60

80

100

120

140

160

180

200

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

139

Interpretation

The above data revealed that 82.5 per cent of the respondents had agreed with

the views given in the statement. Therefore, the villagers‟ expectations of quality

product, at relative cheap rate and without requiring proper storage arrangements were

fulfilled. 113.75 per cent of the respondents remained neutral and only 3.75 per cent

respondents were disagreed and strongly disagreed.

Statement 11 – “My son studying in college insists on specific company’s

products.”

Rationale: With the spread of education in the villages the number of college

students from the rural area has also been increased. With the education naturally

there is greater awareness about the quality of the product is known to the students.

They also read the reports about a particular product or hear it from their friends and

therefore, they insist to purchase a particular product.

Respondent’s responses were as under

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Total

125 105 132 40 22 400

140

Fig. 5.19

Respondent’s views on: – “My son studying in college insists on specific

company’s products.”

125

105

132

40

22

0

20

40

60

80

100

120

140

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

The above data revealed that 57.5 per cent of the respondents had agreed with

the views given in the statement. The number of neutral was also relatively large at 33

per cent. This is mainly because number of families may not have college going

students. 15.5 per cent of the respondents either disagreed or strongly disagreed.

However, on the whole the majority of the respondents had subscribed the statement

affirmatively.

Statement 12 – “I am always guided by the quality, utility and price

consideration while buying my day to day requirements.”

Rationale: In order to push a product in the market the selling organization should in

the first place understand the consumer behavior and what their preferences are. What

factors are weighed when they buy a particular product? And if this factor is taken

into account in focusing it while creating awareness about the said product naturally

141

the product clicks in the market. In order to understand the consumer‟s buying

behavior this statement has been included in the questionnaire.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

185 115 45 35 20 400

Fig. 5.20

Respondent’s views on: – “I am always guided by the quality, utility and price

consideration while buying my day to day requirements.”

185

115

45 3520

0

20

40

60

80

100

120

140

160

180

200

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

The above data showed that 75 per cent of the respondents had agreed with the

views given in the statement. It means that the consumers were rightly guided by the

important aspects like quality, utility and price of the product. The number of neutral

was just 11.25 per cent. While the total number of respondents disagreeing was hardly

13.75 per cent means they were in minority.

142

Statement 13 – “I go in for new products only on the recommendation of my

relative in the nearby city who first uses it and recommends it to me”.

Rationale: It is a human tendency to get information from those who have used a

new product available in the market. If the report is good/satisfactory naturally the

demand for the product increases. In such cases the recommendations from those who

have actually used a particular product carry due weight. Usually new products are

first introduced in the urban and metropolitan areas and gradually those percolate it in

the rural area. Number of villagers follow the practice of inquiring with their urban

based relatives/friends about their report of a newly introduced product and then

decide to purchase it or not.

Respondent’s responses were as under

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Total

110 105 125 40 30 400

Fig. 5.21

Respondent’s views on: – “I go in for new products only on the recommendation

of my relative in the nearby city who first uses it and recommends it to me”.

110 105

125

4030

0

20

40

60

80

100

120

140

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

143

Interpretation

It was seen from the above data 53.75 per cent of the respondents went for

purchases on the basis of the recommendations from their friend/relatives in the urban

area. Though the percentage showed marginal majority it was because of 31.25

respondents preferred to be neutral. It is also true not for all the products such

recommendations are available. The percentage of disagreed and strongly disagreed

respondents stood at 17.5 per cent.

Statement 14 – “I prefer small packages because my purse does not permit me to

buy in bulk”

Rationale: Normally in the rural area where majority of the population is living in

small houses and with meager source of income, there are certain limitations in

effecting their purchases of daily required consumable goods. These people prefer to

buy the daily required goods in small packages and because of the non availability of

the storing space these people do not resort to bulk buying.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

165 125 30 65 15 400

144

Fig. 5.22

Respondent’s views on: – “I prefer small packages because my purse does not

permit me to buy in bulk”

165

125

30

65

15

0

20

40

60

80

100

120

140

160

180

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

Usually in the rural area there is liquidity crunch. They get cash in bulk once

the harvesting is there. In all other time they have very little cash and hence they

prefer to buy goods in smaller packages. It is also because many times proper storage

facility is also not available. The marginal respondents 72,25 percent had subscribed

affirmatively. Neutrals were 7.5 per cent. The percentage of disagreed and strongly

disagreed taken together stood at 20 per cent.

Statement 15 – “I always prefer to buy products from Hindustan Unilever Ltd.

as those are of high quality.”

Rationale: This is a direct question relating to the marketing company Hindustan

Unilever Ltd. which is under study. This company is in the Indian market for a pretty

long time, even before the adoption of the globalization policy by India. The company

has all along maintained the high standard of their products and hence the researcher

invited feedback on this score through this statement.

145

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

135 155 40 52 18 400

Fig. 5.23

Respondent’s views on: – “I always prefer to buy products from Hindustan

Unilever Ltd. as those are of high quality.”

135

155

40

52

18

0

20

40

60

80

100

120

140

160

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

72.5 per cent of the respondents had positively responded the statement. The

number of those who disagreed was hardly 17.5 per cent. while the neutrals were 10

per cent. It means that majority of the respondents preferred to buy HUL products

because of their high quality

146

Statement 16 – “Hindustan Unilever Ltd. has introduced sachets and small

packages of number of products. It helps us in buying it in small quantity.”

Rationale: This point has already come in a different form. The size of the package

does matters as it is convenient for those who have limited liquidity as well as having

limited storage space. This is particularly so in the rural areas. In the rural areas until

the harvesting is done and the proceeds of the crops grown are available there is

limited availability of cash all the time. Therefore, they prefer to buy it in small

quantity. This also helps them to save on space as well as there is no risk of improper

storage.

Respondent’s responses were as under

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Total

172 108 20 65 35 400

Fig. 5.24

Respondent’s views on: – “Hindustan Unilever Ltd. has introduced sachets and

small packages of number of products. It helps us in buying it in small quantity.”

172

108

20

65

35

0

20

40

60

80

100

120

140

160

180

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

147

Interpretation

70 per cent of the respondents had positively affirmed the statement. It means

a large majority members were in favour of small packages like sachets. One need not

worry about the storage and storage hazards.

Statement 17 – “The packaged Red label Tea from Hindustan Unilever Ltd. has

changed our Tea Taste.”

Rationale: The tea powder if put it in open naturally its flavor /smell looses which

also affects its taste. Therefore, if the tea powder is properly packed it maintains its

original flavor and gives a different original taste. Hindustan Unilever Ltd was the

first one to bring this product in attractive packaged form. Therefore the tea

consumers prefer to buy Red Label Tea which is available in packaged form.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

15 25 176 24 160 400

Fig. 5.25

Respondent’s views on: – “The packaged Red label Tea from Hindustan

Unilever Ltd. has changed our Tea Taste.”

1525

176

24

160

0

20

40

60

80

100

120

140

160

180

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

148

Interpretation

The packaged tea was relatively in less demand in the villages which has been

reflected in the response to this statement. The villagers mainly used loose tea and

their taste expectations were different. Usually they consumed strong and extra sweet

tea. Majority of the respondents preferred to be neutral on this issue as they could not

decide on it. Their percentage was 44 percent. Hardly 10 per cent of the respondents

affirmed this statement. The percentage of the disagreed and strongly disagreed

respondents stood at 46 per cent.

Statement 18 – “Now our clothes are as white as the city dwellers as we too get

Surf in our village.”

Rationale: When the Hindustan Unilever Ltd introduced Surf in the sachet form the

sale of the Surf picked up substantially. It is but natural when the villagers opted for

the Surf the quality of the washing powder has its reflection on the whiteness of the

clothes. Earlier the Surf was not available in the sachet form the villagers were

deprived of that whiteness it brings.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

176 124 65 24 11 400

149

Fig. 5.26

Respondent’s views on: – “Now our clothes are as white as the city dwellers as

we too get Surf in our village.”

176

124

65

2411

0

20

40

60

80

100

120

140

160

180

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

75 per cent of the respondents had vouched in favour of the statement. 16.25

percent preferred to be neutral. This means a vast majority of the respondents agreed

with the statement. 8.75 per cent was those of disagreed and strongly disagreed

respondents.

Statement 19 – “In good old days for washing we used to purchase quality

products only at the time of Diwali, but now we regularly use standard products

only.”

Rationale: In India Diwali is a special occasion when the villagers feel that they

should use dazzling white clothes. For this purpose in good old days when their

purchasing power was less and that no good quality washing powders were available

they use to buy from the urban market branded washing powders at the time of

Diwali. Now as the branded products are available in the village itself and when their

purchasing power has improved they prefer to use the branded washing powder all the

time instead of using it on a specific occasion of Diwali.

150

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

145 165 60 18 12 400

Fig. 5.27

Respondent’s views on: – “In good old days for washing we used to purchase

quality products only at the time of Diwali, but now we regularly use standard

products only.”

145

165

60

18 12

0

20

40

60

80

100

120

140

160

180

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

77.5 per cent of the respondents had agreed with the statement, while 15 %

remained neutral. It means the respondents have confirmed that they always purchase

branded washing powder. 7.5 per cent were either disagreed or strongly disagreed.

151

Statement 20 – “The representative of Hindustan Unilever has visited my house

and enquired about the quality and availability of products.”

Rationale: Whenever a new product is launched as a follow up the company

undertakes door to door campaign as a marketing strategy. In the process the company

gets feedback. This statement is included so as to find out the grass root reality of the

visits of the company representative to get the feedback.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

105 85 110 80 20 400

Fig. 5.28

Respondent’s views on: – “The representative of Hindustan Unilever has visited

my house and enquired about the quality and availability of products.”

105

85

110

80

20

0

20

40

60

80

100

120

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

It is observed that 47.5 % respondents had confirmed that the company

representative had visited their residence for feedback. 27.5 % of the respondents

remained neutral while 25 % disagreed with the statement. In a village whenever such

152

an outsider visits the villagers come together and give their responses and hence some

houses were physically not visited. Therefore, the largest percentage of the

respondents was affirmative. 25 per cent of the respondents were either disagreed or

strongly disagreed.

13 Rural Marketing Scenario about Fast Moving Consumer Goods–

perception of the Villagers

Statement 1 – As a result of availability of quality goods of daily consumption,

we need not go to nearby town.

Rationale: In good old days the rural area was deprived of the availability of good

quality goods of daily consumption. After the entry of the multinational marketing

organizations in India there is penetration of the quality goods being marketed by

these multinationals. Earlier the villagers were required to visit the nearby town for

getting the quality goods. The researcher wanted to have a feedback on this score in

the changed circumstances and hence this inclusion.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

160 150 60 18 12 400

153

Fig. 5.29

Respondent’s views on: – “As a result of availability of quality goods or daily

consumption, we need not go to nearby town”

160 150

60

18 12

0

20

40

60

80

100

120

140

160

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

The data revealed that 77.5 % of the respondents had subscribed the views

given in the statement. 15 % remained neutral while 7.5 % of the respondents were

disagreed and strongly disagreed. Thus majority of the respondents confirmed that

they need not go to the nearby town for want of quality goods.

Statement 2 – “A bank branch has been opened up in our village and it has

started financing educated youth from the village for their self employment

activities. This has increased the business turnover in the village.”

Rationale: In order to maintain stock of variety of goods, particularly from the

multinational companies there is need of working capital finance. The multinational

companies do not extend credit facility to their vendors. Therefore, the village

vendors have to approach to the banks for their working capital needs. With the

opening up of a bank branch the villagers are now able to get loan for their working

capital from the newly opened branch. The comfortable stock position turnover gets

increased.

154

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

88 162 78 42 30 400

Fig. 5.30

Respondent’s views on: – “A bank branch has been opened up in our village and

it has started financing educated youth from the village for their self employment

activities. This has increased the business turnover in the village.”

88

162

78

4230

0

20

40

60

80

100

120

140

160

180

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

The Govt. of India and the State govt. have launched various developmental

schemes including the rural employment guarantee scheme for the educated

unemployed youths. For this purpose banks have been given a special role in

financing the self employment ventures of the rural youths. The banks have been

directed to open their branches in the rural areas. This has increased the turnover in

the rural areas. 62.5 per cent respondents stated that the because of the opening of the

branch office the business in their village has increased. 19.5 per cent of the

respondents remained neutral and 18 per cent of the respondents were disagreed or

strongly disagreed.

155

Statement 3 – “The number of vendors of goods of daily consumption in the

weekly market at our centre has substantially increased.”

Rationale: The rationale for this statement has already been covered as the similar

question has been posed in the earlier table.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

108 142 65 60 25 400

Fig. 5.31

Respondent’s views on: – “The number of vendors of goods of daily consumption

in the weekly market at our centre has substantially increased.”

108

142

65 60

25

0

20

40

60

80

100

120

140

160

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

Because of the net work of all weather roads in the rural area and the increased

purchasing power of the rural masses, at the weekly bazzars there is a greater turnover

of vendors to sell their products of daily consumption. This has increased the reach of

156

the variety of goods in the rural area. 62.5 % of the respondents subscribed the

statement while 16.25 % preferred to be neutral. 21.25 % of the respondents were

either disagreed or strongly disagreed.

Statement 4 – “Now we get shampoo/ face powders/toilet soaps/ packaged tea

etc. of branded companies locally.”

Rationale: This statement in different form just to cross check whether their earlier

response matches with this response. Now the branded companies are available in the

rural area also.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

138 162 65 25 10 400

Fig. 5.32

Respondent’s views on: – “Now we get shampoo/ face powders/toilet soaps/

packaged tea etc. of branded companies locally.”

138

162

65

2510

0

20

40

60

80

100

120

140

160

180

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

157

Interpretation

The response to this statement, which is near similar to the earlier statement in

the hypothesis No.1, has confirmed that it does not contradict the responses given

earlier. Now the branded goods like shampoo, tea packets, toilet soaps, hair oils etc.

are available in the rural area. These villagers are not required to go to the nearby

town for procurement of the branded quality goods. 75 % of the respondents agreed to

the statement, while 16.25 % respondents remained neutral. 8.75 % of the respondents

either disagreed or strongly disagreed.

Statement 5 – “Because of my daughter is now studying in college, she needs use

of cosmetics of good quality.”

Rationale: Now the socio-economic scene in the rural set up has undergone a sea

change. Junior and Senior colleges have their presence in the rural areas. Usually

there is a tendency in the rural area not to send their daughters to outstation colleges

which involves outstation stay. Now the colleges are established in the rural area and

therefore, the number of girls are taking college education. A girl at the studying at

the college level is certainly concerned about her presentation of the personality. She

does need good quality cosmetics which are now available in the rural area.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

98 167 102 23 10 400

158

Fig. 5.33

Respondent’s views on: – “Because of my daughter is now studying in college,

she needs use of cosmetics of good quality.”

98

167

102

2310

0

20

40

60

80

100

120

140

160

180

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

It is revealed that 66.25 per cent of the respondents had positively responded

to this statement. 25.5 per cent preferred to be neutral and it is possible they may not

have experienced this change because of not having college going girl in their family.

The percentage of respondents disagreeing stood at 8.25 per cent.

Statement 6 – “Family members watch the newly introduced products on TV

and insist on to buy those”

Rationale: Today because of the nearly 100 per cent electrification of the rural area

and penetration of the colour television sets, any marketing organization that

introduces a new product, certainly chooses the television media for advertizing the

products. This is a very powerful media and the rural masses also watch the TV

programmes and the advertisements. Now with the increased purchasing power and

159

greater awareness about the product quality as well as utility the family members on

seeing a new product on the TV insist for the purchase of the new product.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

98 142 56 80 24 400

Fig. 5.34

Respondent’s views on: – “Family members watch the newly introduced

products on TV and insist on to buy those.”

98

142

56

80

24

0

20

40

60

80

100

120

140

160

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

It has been revealed that 60 per cent of the respondents had confirmed that

their family members on watching a new product on the TV set insisted on purchasing

the same. In fact it is the success of the advertisement which induces the viewers to

buy the new products. 14 per cent of the respondents remained neutral while 26 per

cent of the respondents either disagreed or strongly disagreed with the statement.

160

Statement 7 – “My buying decisions are based on the availability of the variety of

the products.”

Rationale: Each consumer has a peculiarity as to what he/she prefers in buying a

product. This buying decision of an individual is a reflection of the consumer‟s

behavior as to what he/she consider it a vital aspect in taking a decision. This differs

from consumer to consumer. Some consumer prefers to have a variety of products as

they want to compare the products one against the other and purchase the one which

satisfy their expectation most. To understand this buying behaviour this statement has

been included in the questionnaire.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

142 168 35 40 15 400

Fig. 5.35

Respondent’s views on: – “My buying decisions are based on the availability of

the variety of the products.”

142

168

3540

15

0

20

40

60

80

100

120

140

160

180

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

161

Interpretation

The data revealed that 77.5 percent of the respondents took their buying

decision on seeing a variety of products. Thus they compared the one product with the

other and whichever satisfied their requirement they purchased it. It means majority

of the respondents were keen to have a variety of products for comparison. 8.75 per

cent of the respondents remained neutral while 18.25 per cent respondents either

disagreed or strongly disagreed.

Statement 8 – “Unless and until I am satisfied about the product expectations I

do not buy it.”

Rationale: This again a different buying behavior of a consumer. Some consumers

are very particular in effecting their purchases. As long as they are not satisfied about

any product that it fulfills the expectations from the product they do not buy it. The

researcher wanted to have feedback on this score and in this statement was included in

the questionnaire.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

78 152 56 80 34 400

162

Fig. 5.36

Respondent’s views on: – “Unless and until I am satisfied about the product

expectations I do not buy it.”

78

152

56

80

34

0

20

40

60

80

100

120

140

160

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

The data revealed that 57.5 % of the respondents did not resort to buy the

product until they are sure that the product satisfies their expectation. It means they

were very much concerned about the satisfaction of their expectation and do not resort

to casual buying. 14 % of the respondents remained neutral. It means the majority of

the buyers were very much particular in buying a product. 28.5 % of the respondents

were either disagreed or strongly disagreed.

Statement 9 – “I enjoy credit facility from the vendor and therefore I prefer to

buy only those products which are available in that shop only”

Rationale: Sometimes, the consumer requires credit facility for effecting purchases.

In such a case he has sometimes to compromise about the products available in the

shop which offers him/her credit facility. He has very little choice. This is a very

normal phenomenon in the rural area as the payments are made only after the

proceeds of the agriculture produce are received. The researcher wanted to have

163

feedback on this score from the respondents and hence this statement has been

included.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

172 68 80 60 20 400

Fig. 5.37

Respondent’s views on: – “I enjoy credit facility from the vendor and therefore I

prefer to buy only those products which are available in that shop only.”

172

68 80

60

20

0

20

40

60

80

100

120

140

160

180

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

It is revealed that 60 % of the respondents were having such a limitation

which is a regular phenomenon in the rural area. The payments were usually made

once the crop is harvested and sent to the market. 20 % of the respondents remained

neutral while the rest 20 per cent either disagreed or strongly disagreed.

164

Statement 10 – “Free gifts / vouchers prompt me to buy that product”

Rationale: In order to boost up the sales at times the marketing organizations

announce free gifts or gift voucher for effecting a particular product within a specified

period or upto availability of the stock of the gifts. Some of the consumers are very

much particular to wait for such opportunities. Usually nowadays products are sold

with a slogan „buy one get one free‟ or „buy three and get the fourth free‟ etc. Gift is

an attraction to effect purchase.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

98 102 125 65 10 400

Fig. 5.38

Respondent’s views on: – “Free gifts / vouchers prompt me to buy that product”

98102

125

65

10

0

20

40

60

80

100

120

140

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

165

Interpretation

The data on this score revealed that 50 per cent of the respondents

affirmatively accepted this statement means they prefer to depend their buying

decision on the gifts or gift voucher. The neutrals were 31.25 per cent. If we keep

aside the neutrals the respondents who were tempted to base their buying decision on

gifts or voucher were more. 18.75 per cent of the respondents remained either

disagreed or strongly disagreed.

14 Impact of Socio Economic (education, healthcare, media etc.)and

Infrastructure Development (roads, communication,) on the Rural

Marketing

Statement 1 – “Due to use of mobile phones our retail shop keeper is in a position

to make the goods available at a short notice.”

Rationale: In good old days there were no proper communication systems. In the

rural areas even bus routes were very restricted. However, now with the advent of

technology and launch of the mobile phones the rural vendor can place an order with

the wholesaler in the nearby town and through courier the goods can be had within a

reasonable time without waiting for a long time. This has certainly added the

availability of the goods at a short notice. The researcher wanted to have feedback on

this score and hence the statement has been included.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

80 140 85 75 20 400

166

Fig. 5.39

Respondent’s views on: – “Due to use of mobile phones our retail shop keeper is

in a position to make the goods available at a short notice.”

80

140

8575

20

0

20

40

60

80

100

120

140

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

It is revealed that 55 % of the respondents affirmed the statement. 21.25 per

cent remained neutral, while 23.75 per cent of the respondents either disagreed or

strongly disagreed. On the whole majority of the respondents were convinced that the

required goods were available at short notice.

Statement 2 – “Now we have a bank branch in our village which has increased

the businesses in our village”

Rationale: Usually the banks are the pace setters for greater economic activity. They

provide requisite finance for starting new ventures which increases the business

turnover from the centre. Banks are thus developing agents and play their

developmental role to boost up the economic activity. They finance the self

employment endeviours of the rural youths under various government sponsored

programs. Therefore, the researcher had included this statement to have feedback of

the respondents on this score.

167

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

80 170 80 38 32 400

Fig. 5.40

Respondent’s views on: – “Now we have a bank branch in our village which has

increased the businesses in our village”

80

170

80

38 32

0

20

40

60

80

100

120

140

160

180

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

The above data revealed that 62.5 % of the respondents had positively

affirmed the statement which means they agreed with the statement. 20 % of the

respondents remained neutral. 17.5 % respondents either disagreed or strongly

disagreed. Thus, majority of the respondents had confirmed that as a result of opening

up of a bank branches the business activity in the village had increased.

168

Statement 3 – “I was surprised when my son ordered for Tajmahal Tea on his

computer and the same was delivered within 3 days by courier”

Rationale: This was also a repeat question which was included to cross check the

responses. The rationale for the same has already explained.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

0 10 290 80 20 400

Fig. 5.41

Respondent’s views on: – “I was surprised when my son ordered for Tajmahal

Tea on his computer and the same was delivered within 3 days by courier”

010

290

80

20

0

50

100

150

200

250

300

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

This is a new technology through which one can shop on line and even on the

android telephone user can put through shopping transaction from anywhere. This was

just to test about the awareness of the villagers about the concept of online shopping.

The data revealed that only 2.5 per cent of the respondents were aware of the online

169

shopping and has experienced it. The neutrals accounted for 72.5 per cent because this

concept was not yet penetrated in the rural areas. 25 per cent of the respondents

disagreed or strongly disagreed with the statement. This also may be due to unaware

of the new concept.

Statement 4 – “Because of the increase in the irrigated area of our village, our

income has also increased”

Rationale: Whenever the irrigation facility is available for the agriculturists their

dependence on monsoon is drastically reduced. When there is assured water supply

the agriculturists can take cash crop and increase their income from agriculture. In the

identified are there was increase in the irrigated area as a result of which the

respondents‟ income had increased which in turn increased their purchasing power.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

188 132 40 32 8 400

Fig. 5.42

Respondent’s views on: – “Because of the increase in the irrigated area of our

village, our income has also increased”

188

132

40 32

8

0

20

40

60

80

100

120

140

160

180

200

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

170

Interpretation

80 % of the respondents affirmed the statement. In fact this is a universal truth.

Statement 5 – “Now we are taking cash crops like sugarcane, onion, vegetables in

our village”

Rationale: As stated in the earlier statement once the irrigation facility is available

and assured water supply is available the agriculturists prefer to raise cash crops like

the one mentioned in the statement. Therefore, on the availability of the assured water

the cropping pattern adopted also changes.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

165 128 45 57 5 400

Fig. 5.43

Respondent’s views on: – “Now we are taking cash crops like sugarcane, onion,

vegetables in our village”

165

128

4557

5

0

20

40

60

80

100

120

140

160

180

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

171

Interpretation

The data revealed that 73.25 % of the respondents confirmed the statement

that with the availability of the assured water their cropping pattern had been changed

and now they were growing cash crops which adds to the income from agriculture.

The increased income paves the way for enhancing the quality of life as the

purchasing power increases and the quality goods can be purchased. 11.25 per cent

respondents were neutral while 15.5 per cent of the respondents either disagreed or

strongly disagreed.

Statement 6 – “Now we have a high school in our village which facilitates our

daughters to go to high school”

Rationale: Over the past few years the educational scenario in the villages has

undergone a change. Now numbers of high schools have been opened in the potential

villages and this has facilitated the students from the nearby villages to go to high

school newly started in their area. The villagers are bit reluctant to send their

daughters for high school education involving outstation staying. However, because

of the newly opened high schools the village girls are now studying in high schools.

This girls education creates awareness amongst them for maintaining hygienic

conditions and therefore their demand for toiletries increases.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

155 135 65 35 10 400

172

Fig. 5.44

Respondent’s views on: – “Now we have a high school in our village which

facilitates our daughters to go to high school”

155135

65

35

10

0

20

40

60

80

100

120

140

160

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

The data showed that 72.5 % of the respondents had subscribed the statement.

It means majority of the girls in the rural area are now going to the high schools.

16.25 % of the respondents remained neutral. The girl‟s education leads to create

awareness about hygienic conditions. 11.25 % of the respondents either disagreed or

strongly disagreed.

Statement 7 – “A college has been opened in the nearby town which is just

adjacent to our village, which facilitates our boys and girls too to take higher

education”

Rationale: Numbers of new colleges have been opened in the rural areas. Therefore,

those students who had completed their 10th

and 12th

standard education (irrespective

of gender) who were not going to the college because of non availability of the

colleges in the vicinity are now going to the college. These college going boys and

girls do require cosmetics and also prefer to have hygienic living. These college

students strength leads to increase in demand for the HUL products.

173

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

102 108 90 65 35 400

Fig. 5.45

Respondent’s views on: – “A college has been opened in the nearby town which is

just adjacent to our village, which facilitates our boys and girls too to take higher

education”

102108

90

65

35

0

20

40

60

80

100

120

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

The above data showed that almost 52.5 % of the respondents had subscribed

the statement. It means majority of the boys and girls in the rural area were now

going to colleges. 22.5 % of the respondents remained neutral. 25 % of the

respondents disagreed or strongly disagreed with the statement.

Statement 8 – “During the last decade our village has been electrified and now

we have colour TV set in almost every house”

174

Rationale: In order to have electrical gadgets there should be availability of electric

power. Now, over the years the government has accorded priority to the village

electrification which has resulted in village electrification in a large scale. There are

no other entertainment avenues open for the villagers and therefore, now almost every

rural family has purchased colour T.V. set which enables the marketing organizations

to display their advertisements on the Television sets.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

165 135 30 45 25 400

Fig. 5.46

Respondent’s views on: – “During the last decade our village has been electrified

and now we have colour TV set in almost every house”

165

135

30

4525

0

20

40

60

80

100

120

140

160

180

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

The above data showed that almost 75 per cent of the respondents had

confirmed that due to complete electrification of their block in all the houses TV set

175

was available. This confirms that TV media has penetration in the rural area through

which the companies can reach out to the prospective consumers of their products. TV

is one of the best media as it enables the companies to advertize their products more

effectively. 7.5 per cent respondents remained neutral while 17.5 per cent respondents

either disagreed or strongly disagreed.

Statement 9 – “Frequent power failure is faced by us which needs to be

resolved.”

Rationale: The government had undertaken massive campaign for electrification but

because there is no availability of the required power many times the villages face

frequent power failure. Therefore, the villages rightly feel that this problem of

availability of uninterrupted power supply should be made to the villages.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

180 140 15 42 23 400

Fig. 5.47

Respondent’s views on: – “Frequent power failure is faced by us which needs to

be resolved.”

180

140

15

4223

0

20

40

60

80

100

120

140

160

180

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

176

Interpretation

The above data showed that almost 80 % of the respondents had stated that

there is frequent power failure and paucity in the service needs to be rectified by

ensuring uninterrupted power supply to the villages. 3.75 % were neutral and 16.25 %

respondents either disagreed or strongly disagreed.

Statement 10 – “During the last decade number of ST busses connecting several

cities has increased”

Rationale: Over the years the communication in the rural area has been improved a

lot. Now there are Maharashtra Road Transport Corporation‟s Buses available from

every village. This improved connectivity results in regular supplies of goods to the

shop keepers. It also enables the villagers to procure the goods not available locally

from the nearby town.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

88 142 80 65 25 400

Fig. 5.48

Respondent’s views on: – “During the last decade number of ST busses

connecting several cities has increased”

88

142

8065

25

0

20

40

60

80

100

120

140

160

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

177

Interpretation

The above data showed that almost 57.5 per cent of the respondents had

confirmed that there is ST bus facility almost from every village. This improvement in

communication mode has improved the availability of the goods supplies with the

village vendors. 20 per cent of the respondents remained neutral and 22.5 per cent

respondents either disagreed or strongly disagreed.

5.3 DATA FROM THE RURAL SHOP KEEPERS

In the first place the primary data was collected from the consumers who were

the directly benefitted by the improvement in the rural marketing scenario. The

consumers through the questionnaire administered to them gave their individual

perception on the various statements which were incorporated in the questionnaire.

However, apart from the individual consumers the rural shop keepers also form the

part of the marketing system and the shop keepers were in a position to give the

collective perception of the consumers which they get during the course of their

contact with the consumer while effecting their sales.

So also the researcher wanted to find out the grass root reality about the

various issues which pertain to putting through the marketing activity. That is

procurement of the goods, their presentation in the shop, as well as their perception of

the overall marketing scenario etc. Some of the questions in the questionnaire for

them and the consumers were common which were used to confirm the perceptions.

Some special questions were also posed to the shop keepers. Therefore, the

researcher has also collected primary data from 50 village shop keepers (mainly

provision stores, medical stores, etc.) who cater to the villagers for their day to day

requirements of various products including toiletries, cosmetics, tea, etc. This data has

been presented in the same manner in which the data for the villagers have been

presented and interpreted.

178

1. Educational background of the shop keepers:

Education of the shop keepers was also vital aspect and therefore, the

researcher had collected the data relating to this aspect. The same is presented

hereunder:

Illiterate Upto 7th

Std.

Upto 12th

Std.

Graduate Post

graduate

Total

0 0 16 26 8 50

The data has revealed that all the shop keepers are educated. 32 % of the respondents

have studied upto 12th

standard, 52 % have studied upto graduation while 16 % are

post graduates.

2. Product awareness position: The products have been divided in different

categories and the shop keepers were asked to indicate which products mentioned in

each category is in demand. The products which are in demand are indicated by a

mark. The products marked with * are having relatively low demand.

Toilet Soap Detergent soap Tooth paste Hair shampoo

Lux Rin Pepsodent Clinic+ *

Lifeboy Wheel Close up Sun silk

Hamam Ghadi Colgate Himalaya

Medimix * Nirma Dabur red * Nyle *

Cinthol * Tide * Anchor white* Head & Shoulder *

Godrej No.1 * Surf Excel Babool Vatika

3. Demand for HUL Products in the area

Since this study is related to the products of Hindustan Unilever Ltd. the

researcher felt it appropriate to have feedback from the village shopkeepers as to

which products of HUL are in demand. The data revealed the following position.

179

The data appeared to be almost the same from all the village shop keepers.

Product Not at all Rarely Some time Many time Always

Lux

Lifebuoy

Rin

Wheel

Pepsodent

Close up

Clinic plus

Sunsilk

Taj Mahal Tea

Taaza Tea

It is revealed that the products of HUL are in good demand from the villagers.

4. Source of supply:

It is also necessary to understand the sources through which these branded

goods are being supplied. The data collected on this score reveals the following:

Product Wholesaler from

the nearby town

Company stockiest

delivers the stocks

Any other

Lux/ Lifeboy * 50

Rin/Wheel 50

Pepsodent/

Close up

50

Clinic + /Sunsilk 50

Taj Mahal Tea/Taaza 50

* All the shop keepers stated that they get their supplies of HUL through their

stockiest who delivers the stocks through delivery van at the door steps of the shop.

Only 16 shop keepers stated that sometimes they get the supplies from the wholesaler

from the nearby town.

180

Regular availability of the stock of HUL:

It is necessary that the products which are in demand are regularly available

with the shop keepers. It has therefore, been considered to have this feedback from the

shop keepers which reveals the following:

Following was the general consensus amongst all the shop keepers.

Product Never

available

Rarely

available

Can’t

say

Mostly

available

Always

available

Lux/ Lifeboy 0

Rin/Wheel 0

Pepsodent/Close up 0

Clinic +

/ Sunsilk

0

Taj Mahal Tea/Taaza 0

It means that the highly consumed products are always / mostly available in all

the village shops.

The Shop Keepers were also asked to indicate their choice of option on

some 20 statements, wherein 5 options were provided. The data received is

presented hereunder:

Statement 1 – “Since the last two decades there is a demand for branded

products in the rural area”

Rationale: It has been observed that over the past two decades in the rural marketing

scenario the demand for branded goods has been increased. This is mainly because of

the entry of the multinational companies in the rural markets. These MNCs sell

branded goods. In addition to that during the same period because of the development

of irrigation facilities the area under irrigation has increased and because of the

availability of the assured water supply the cropping pattern has undergone a change.

Now in the identified area the area under cash crop has increased. This, in turn

resulted in enhanced purchasing power of the villagers. Therefore; they can afford to

go in for branded goods which are slightly costly. Therefore, in order to have a

feedback on this score this data has been collected.

181

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

8 26 6 8 2 50

Fig. 5.49

Respondent’s views on: – “Since the last two decades there is a demand for

branded products in the rural area”

8

26

68

2

0

5

10

15

20

25

30

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

The above data revealed that 68% of the respondents had confirmed that

during the last two decades the demand for the branded goods in the rural markets has

been increased. 12 per cent remained neutral while 20 per cent respondents either

disagreed or strongly disagreed.

Statement 2 – “Because of the irrigation development, the rural population’s

purchasing power has increased”

Rationale: This point is already covered in the earlier rationale for the earlier

statement No.1.

182

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

12 22 4 6 2 50

Fig. 5.50

Respondent’s views on: – “Because of the irrigation development the rural

population’s purchasing power has increased”

12

22

4

6

2

0

5

10

15

20

25

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

The above data revealed that 68% of the respondents had confirmed that

during the last two decades the area under irrigation have increased substantially and

that it has resulted in the increase in the agriculture income of the respondents. This

additional income has been reflected in the increase in the purchasing power of the

respondents.8 per cent respondents preferred to be neutral while 16 per cent

respondents either disagreed or strongly disagreed.

183

Statement 3 – “Before 20 years we were selling local made washing powder and

such other goods in our rural markets”

Rationale: In good old days the village shop keepers were selling mostly the local

made washing powders or non branded washing powders. This was mainly due to low

purchasing power as well as availability of the branded goods in the village markets.

Now the situation has been changed. Now branded goods are available in the rural

markets and the purchasing power of the villagers has also considerably increased and

therefore they can afford to buy branded goods.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

14 28 3 3 2 50

Fig. 5.51

Respondent’s views on: – “Before 20 years we were selling local made washing

powder and such other goods in our rural markets”

14

28

3 3 2

0

5

10

15

20

25

30

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

The data revealed that 84% of the respondents had confirmed that prior to two

decades in the rural markets only the locally made or unbranded goods are available.

This was mainly because of the low purchasing power of the villagers and that the

184

branded goods were also not available in the rural markets. Now the situation has

drastically changed and the availability in the branded goods in the rural market is

seen. 6 per cent remained neutral while 16 per cent respondents either disagreed or

strongly disagreed.

Statement 4 – “There is a regular and uninterrupted supply of Hindustan

Unilever’s products”

Rationale: In order to understand the grass root reality about the regular and

uninterrupted supply of the HUL‟s products in the rural market this statement has

been included in the questionnaire. If there is a continuous supply of the goods in

demand, the consumers are satisfied. From this point of view the feedback has been

sought.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

9 36 3 1 1 50

Fig. 5.52

Respondent’s views on: – “There is a regular and uninterrupted supply of

Hindustan Unilever’s products”

9

36

3 1 1

0

5

10

15

20

25

30

35

40

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

185

Interpretation

90 per cent of the respondents confirmed that there was a regular and

uninterrupted supply of HUL‟s products in the rural market. 6 per cent remained

neutral while 4 percent either disagreed or strongly disagreed.

Statement 5 – “Due to advertisements on the television sets we get to know the

latest products and their uses”

Rationale: Unless and until the consumer is aware of the new products and their uses

he/she will not be prompted to buy it. Therefore, normally whenever any new product

is being launched, the companies prefer to resort to an advertisement campaign and in

order to reach the rural market consumers TV is the best media. Due to penetration of

the electricity and thereby the TV media in the rural houses, the companies prefer TV

media to make the rural consumer of the latest product launched and its uses.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

8 29 6 5 2 50

Fig. 5.53

Respondent’s views on: – “Due to advertisements on the television sets we get to

know the latest products and their uses”

8

29

6 52

0

5

10

15

20

25

30

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

186

Interpretation

74 per cent of the respondents have confirmed that they came to know the

latest products introduced and its uses through the TV media. 12 per cent preferred to

remain neutral while the rest disagree with the statement. The majority of the

respondents have fully subscribed with the views in the statement. 14 per cent of the

respondents either disagreed or strongly disagreed.

Statement 6 – “Due to development of all weather roads now many vendors put

up their stalls in the weekly market in the nearby town”

Rationale: In order to have easy access to the rural market the dire need is of having

all weather road‟s network in the rural area. This helps the mobile vendors who put up

their stalls in the weekly bazzars organized in the rural area. During the past several

years rural area has seen construction of all weather roads in the rural area as a result

of which the mobile vendors in the rural weekly bazzar have increased. This

facilitates availability of variety of goods in the rural area.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

12 28 2 5 3 50

187

Fig. 5.54

Respondent’s views on: – “Due to development of all weather roads now many

vendors put up their stalls in the weekly market in the nearby town”

12

28

2

5 3

0

5

10

15

20

25

30

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

It is revealed that 80 per cent of the respondents had vouched the statement

and only marginal number of respondents has disagreed. The majority of the

respondents confirmed the content of the statement. This development of

infrastructure has certainly helped the villagers to have approach to the new markets

also. 4 per cent remained neutral while 16 per cent either disagreed or strongly

disagreed.

Statement 7 – “The colorful advertisements depicting the uses of the new

products help the consumers to understand the uses those products”

Rationale: The success of the marketing organization depends on the achievement of

the sales target. In order to boost up the sales of any new product there is a need to

create greater awareness about the utility of the new products. The colourful

advertisements in the news paper as well as digital media effectively communicate the

consumers. Therefore, the companies resort to colourful advertisements. Once the

consumer is aware of the uses of the new product they are induced to buy it.

188

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

13 23 4 5 5 50

Fig. 5.55

Respondent’s views on: – “The colorful advertisements depicting the uses of the

new products help the consumers”

13

23

45 5

0

5

10

15

20

25

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

72 % of the respondents had subscribed the statement views. Therefore, the

statement holds good. 8 % respondents were neutral while 20 % of the respondents

either disagreed or strongly disagreed.

Statement 8 – “HUL products advertisement is in local language and it is catchy”

Rationale: In order to have optimum benefit of the advertisement in sales promotion

the advertisements which are in locally used language should be used. It creates a

greater impact on the buying behavior of the consumers. HUL has very well

understood this idea and therefore its advertisements are normally in the local

language. It catches the message and the desired impact is achieved. The researcher

189

wanted to have feedback on the perception of the village shop keepers and hence this

data was sought for.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly

disagree

Total

16 28 2 4 0 50

Fig. 5.56

Respondent’s views on: – “HUL products advertisement is in local language

and it is catchy”

16

28

2

4

0

0

5

10

15

20

25

30

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

88 % of the respondent agreed with the content of the statement. Hardly 12 per

cent comprised those who did not agree and neutral respondents.

Statement 9 – “Since the last two decade rural population’s budget for bathing

soaps, washing soaps, washing powders and shampoos have sizably increased”

Rationale: This statement was also included in the villager‟s questionnaire where the

rationale has already been given and hence duplication is avoided. It is observed that

the responses of the shop keepers are in agreement with the villagers.

190

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly

disagree

Total

15 29 4 1 1 50

Fig. 5.57

Respondent’s views on: – “Since the last two decade rural population’s budget

for bathing soaps, washing soaps, washing powders and shampoos have sizably

increased”

15

29

41 1

0

5

10

15

20

25

30

Strongly

agree

Agree Neutral Disagree Strongly

disagree

Respondents

Interpretation

Almost 88 per cent of the shop keepers had affirmed the statement which

means the composition of the rural budge for toiletries, washing soaps, washing

powders, shampoos etc had shown increasing trend. This was mainly because of the

increased purchasing power as well as availability of the branded goods in the rural

market. 8 per cent of the respondents remained neutral and 4 per cent accounted for

either disagreed or strongly disagreed.

191

Statement 10 – “Now the traders need not go to the nearby town for getting

branded goods of daily use”

Rationale: In good old days when there was no proper network of communication

and there was absence of all weather roads, naturally the traders were required to go

to the nearby town to buy the branded goods for the consumers in the rural area. Now

the network of all weather roads has been developed, mobile phone facility is

available due to which within no time the distributors can be contacted for supplies of

any particular item. There are couriers who can make delivery faster. All these have

helped the traders to concentrate on their business instead of running around for

procurement of the branded goods.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

16 25 4 3 2 50

Fig. 5.58

Respondent’s views on: – “Now the traders need not go to the nearby town for

getting branded goods of daily use”

16

25

4 3 2

0

5

10

15

20

25

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

192

Interpretation

82 % of the respondents agreed with the statement. 8 per cent respondents

remained neutral and 10 per cent respondents either disagreed or strongly disagreed.

As the majority of the respondents have agreed the statement holds good.

Statement 11 – “Rural people prefer to purchase sachet packets as they find it

more convenient”

Rationale: In the rural area normally the agriculturists receive the proceeds of the

agricultural produce after the crop is harvested. Only a few agriculturists who

cultivate vegetables and fruits etc. they get fresh cash after their production is sold in

the market. Therefore, on the whole there is a liquidity crunch with the agriculturists

and hence they prefer to purchase products which are packed in sachet form. For

some rural residents storage of big packages is also a problem. Therefore, the rural

masses find it more convenient to buy the products in the sachet form.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

16 30 0 3 1 50

193

Fig. 5.59

Respondent’s views on: – “Rural people prefer to purchase sachet packets as

they find it more convenient”

16

30

0

3 1

0

5

10

15

20

25

30

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

92 % of the respondents had agreed that the rural people prefer to purchase

goods in sachet packaging. Rest 8 per cent had recorded their disagreement with the

statement but they are in the minority.

Statement 12 – “Sachet packing is preferred by the consumers as it is cheaper.”

Rationale: Sachet packing is relatively cheaper and convenient as one can buy it and

consume it instantly. Since the quantity is relatively less naturally the price that the

consumer has to pay is less. The rural people primarily find it convenient and they

carry the feeling that it is cheaper.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

18 32 0 0 0 50

194

Fig. 5.60

Respondent’s views on: – “Sachet packing is preferred by the consumers as it is

cheaper.”

18

32

0 0 0

0

5

10

15

20

25

30

35

Stronglyagree

Agree Neutral Disagree Stronglydisagree

Respondents

Interpretation

Cent percent respondents agreed with the statement that sachet packing is

cheaper and convenient for them.

Statement 13 – “Now obtaining loan from the bank in the vicinity is hassle free”

Rationale: Now the banks have opened up branches even in the interior villages.

Today, the Reserve Bank of India has asked the banks to appoint correspondents in

the rural area and cover villages upto 2000 population. Apart from this penetration,

the banks are also given targets to finance the retail traders, professionals, transport

operators etc. which are called subsectors of priority sector. Priority sector means

priority in extending credit on priority on soft term basis. Therefore, the banks have

done away with number of their requirements like personal guarantee, mortgage etc.

which were the greatest hurdles in getting the bank loans. Now obtaining the bank

loan is hassle free.

195

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total

8 20 10 7 5 50

Fig. 5.61

Respondent’s views on: – “Now obtaining loan from the bank in the vicinity is

hassle free”

8

20

10

75

0

2