Rural Marketing Jmit

8/19/2019 Rural Marketing Jmit

1/81

A DISSERTATION REPORT

ON

“A study of consumer perception and buying

behavior of rural customers towards ITC

Products”

Submitted in partial fulfillment of the requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

(SESSION 2013-15)

Submitted to Submitted b!

USM, Kurukshetra University Name: nil Kumar !lass: M" #$ #%$

!lass &oll No' () Session *)+-+(

UNI"ERSIT# S$%OO& OF MANA'EMENT

URUS%ETRA UNI"ERSIT# URUS%ETRA %AR#ANA INDIA-13*11+

(ESTAB&IS%ED B# T%E STATE &E'IS&ATURE A$T ,II OF 1+5*)

(A. 'RADE NAA$ A$$REDITED)%AR#ANA INDIA-13*11+


2/81

A$NO/&ED'EMENT

. am grateful to the Uieit! 4oo6 o7 m889emet uu:et8 for giving me

the opportunity to prepare a resear/h report' .t was a great learning e0perien/e for me'

1he 2ro3e/t 1itle Study on A tud! o7 4oume ;e4e;tio 8d bu!i9 be8io

o7 u86 4utome to


3/81

PREFA$E

1heoreti/al knowledge without the pra/ti/al e0posure is of little value, theoreti/al Studies

in !lassroom are not suffi/ient to understand the fun/tioning and nature of resear/h'

1herefore it be/omes ne/essary to undergo any resear/h pro3e/t work'

2ra/ti/al pro3e/t Supplements the 1heoreti/al studies i'e' it /overs what is left un/overed

in the /lassroom' .t e0poses a student to invaluable pleasure of e0perien/es' . /omplete

my resear/h 2ro3e/t on the topi/ A tud! o7 4oume ;e4e;tio 8d bu!i9

be8io o7 u86 4utome to


4/81

., Ai6 um8 student of MBA (') (A) 2013-2015 here by state that the &eport

entitled A tud! o7 4oume ;e4e;tio 8d bu!i9 be8io o7 u86 4utome

to


5/81

!5216& +: .ntrodu/tion 1o &ural Marketing

!5216& *: bout .1! !ompany

!5216& : 7iterature &eview

!5216& 8: &esear/h Methodology

!5216& (: Ob3e/tive Of 1he Study

!5216& 9: 4ata nalysis .nterpretation

!5216& ;: uestionnaire

INTRODU$TION

"The future lies with those companies who see the poor as their customers."


6/81

$o4e;t

.n re/ent years, rural markets have a/quired signifi/an/e, as the overall growth of the

e/onomy has resulted into substantial in/rease in the pur/hasing power of the rural

/ommunities'

On a//ount of green revolution, the rural areas are /onsuming a large quantity of

industrial and urban manufa/tured produ/ts' .n this /onte0t, a spe/ial marketing strategy,

namely, u86 m8:eti9, has emerged' "ut often, rural marketing is /onfused with

agri/ultural marketing - the latter denotes marketing of produ/e of the rural areas to the

urban /onsumers or industrial /onsumers, whereas rural marketing involves delivering

manufa/tured or pro/essed inputs or servi/es to rural produ/ers or /onsumers'

/8t M8:e Ru86 M8:et Att84tie?

&ural market has following attributes and the following fa/ts substantiate this: -

;8* million people

6stimated annual si?e of the rural market -


7/81

Of the 9') lakh villages, ('** lakh have a Cillage 2ubli/ 1elephone #C21$'

8+ million Kisan !redit !ards have been issued #against ** million /redit-plus-debit

/ards in urban$, with /umulative /redit of &s' D;; billion resulting in tremendous

liquidity'

Of the *) million &ediffmail sign-ups, 9)B are from small towns' ()B of

transa/tions from these towns are on &ediff online shopping site'

8* million rural households #55s$ are availing banking servi/es in /omparison to *;

million urban 55s'

.nvestment in formal savings instruments is 9'9 million 55s in rural and 9'; million55s in urban'

O;;otuitie

.nfrastru/ture is improving rapidly -

.n () years only, 8)B villages have been /onne/ted by road, in ne0t +) years another

)B would be /onne/ted'

More than D)B villages are ele/trified, though only 88B rural homes have ele/tri/

/onne/tions'

&ural telephone density has gone up by ))B in the last +) yearsE every +)))F pop is

/onne/ted by S14'

So/ial indi/ators have improved a lot between +D=+ and *)+* -

Number of Gpu//aG houses doubled from **B to 8+B and Gku//haG houses halved

#8+B to *B$'

2er/entage of "27 families de/lined from 89B to *;B'


8/81

&ural litera/y level improved from 9B to (DB'

7ow penetration rates in rural areas, so there are many marketing opportunities

2roliferation of large format &ural &etail Stores, whi/h have been su//essful also'

Ru86 $oume Ii9t

&ural .ndia buys -

2rodu/ts more often #mostly weekly$'

"uys small pa/ks, low unit pri/e more important than e/onomy'

.n rural .ndia, brands rarely fight with ea/h otherE they 3ust have to be present at the

right pla/e'

Many brands are building strong rural base without mu/h advertising support'

!hik shampoo, se/ond largest shampoo brand'

%hadi detergent, third largest brand'


9/81

Re86it! .tHs a heterogeneous population' Carious 1iers are present depending on the

in/omes like "ig 7andlordsE 1radersE Small


10/81

1herefore, marketers need to understand the so/ial dynami/s and attitude variations

within ea/h village though nationally it follows a /onsistent pattern' 1he main problems

in rural marketing are: -

Understanding the &ural !onsumer

2oor .nfrastru/ture

2hysi/al 4istribution

!hannel Management

2romotion and Marketing !ommuni/ation

4ynami/s of rural markets differ from other market types, and similarly, rural marketing

strategies are also signifi/antly different from the marketing strategies aimed at an urban

or industrial /onsumer'

St8te9ie to be Fo66o


11/81

Ditibutio St8te9!

One of the ways /ould be using /ompany delivery van whi/h /an serve two purposes - it

/an take the produ/ts to the /ustomers in every nook and /orner of the market, and it also

enables the firm to establish dire/t /onta/t with them, and thereby fa/ilitate sales

promotion'

5owever, only the bigwigs /an adopt this /hannel' 1he /ompanies with relatively fewer

resour/es /an go in for syndi/ated distribution where a tie-up between non-/ompetitive

marketers /an be established to fa/ilitate distribution' nnual GmelasG organi?ed are quite

popular and provide a very good platform for distribution be/ause people visit them to

make several pur/hases'

//ording to the .ndian Market &esear/h "ureau, around =))) su/h melas are held in

rural .ndia every year' &ural markets have the pra/ti/e of fi0ing spe/ifi/ days in a week

as Market 4ays #often /alled G5aatsH$ when e0/hange of goods and servi/es are /arried

out' 1his is another potential low /ost distribution /hannel available to the marketers'

lso, every region /onsisting of several villages is generally served by one satellite town

#termed as GMandisG or gri-markets$ where people prefer to go to buy their durable

/ommodities' .f marketing managers use these feeder towns, they will easily be able to/over a large se/tion of the rural population'

Pomotio86 St8te9!


12/81

Some &ie E@8m;6e

One very fine e0ample /an be quoted of 6s/orts where they fo/used on deeper

penetration' 1hey did not rely on 1C or press advertisements, but rather /on/entrated on

fo/used approa/h depending on geographi/al and market parameters like fares, melas,

et/' 7ooking at the Hku/hhaH roads of village, they positioned their bike as tough vehi/le'

1heir advertisements showed 4harmendra riding 6s/ort with the pun/h line HIandar

Sawari, Shandar SawariH' 1hus, they a/hieved whopping sales of D())) vehi/les annually'

577 started HOperation "haratH to tap the rural markets' Under this operation, it

passed out low-pri/ed sample pa/kets of its toothpaste, fairness /ream, !lini/ plus

shampoo, and 2onds /ream to twenty million households'

.1! is setting up e-!houpals, whi/h offers the farmers all the information, produ/ts

and servi/es they need to enhan/e farm produ/tivity, improve farm-gate pri/e reali?ation

and /ut transa/tion /osts'


13/81

RURA& MARETIN' IN INDIAN E$ONOM#

1he /on/ept of Ru86 M8:eti9 i Idi8 E4oom! has always played an influential

role in the lives of people' .n .ndia, leaving out a few metropolitan /ities, all the distri/ts

and industrial townships are /onne/ted with rural markets'

1he rural market in .ndia is not a separate entity in itself and it is highly influen/ed by the

so/iologi/al and behavioral fa/tors operating in the /ountry' 1he rural population in .ndia

a//ounts for around 9*; million, whi/h is e0a/tly ;8' per/ent of the total population'

1he rural market in .ndia brings in bigger revenues in the /ountry, as the rural regions

/omprise of the ma0imum /onsumers in this /ountry' 1he rural market in .ndian e/onomy

generates almost more than half of the /ountryHs in/ome' &ural marketing in .ndian

e/onomy /an be /lassified under two broad /ategories' 1hese are:

• 1he market for /onsumer goods that /omprise of both durable and non-durable

goods

• 1he market for agri/ultural inputs that in/lude fertili?ers, pesti/ides, seeds, and so

on

1he /on/ept of rural marketing in .ndia is often been found to form ambiguity in the

minds of people who think rural marketing is all about agri/ultural marketing' 5owever,

rural marketing determines the /arrying out of business a/tivities bringing in the flow of

goods from urban se/tors to the rural regions of the /ountry as well as the marketing of

various produ/ts manufa/tured by the non-agri/ultural workers from rural to urban areas'

1o be pre/ise, &ural Marketing in .ndia 6/onomy /overs two broad se/tions, namely:

• Selling of agri/ultural items in the urban areas

•

Selling of manufa/tured produ/ts in the rural regions

Some of the important features or /hara/teristi/s of &ural Marketing in .ndia 6/onomy

are being listed below:

• Aith the initiation of various rural development programmes there have been an

upsurge of employment opportunities for the rural poor' One of the biggest /ause


14/81

behind the steady growth of rural market is that it is not e0ploited and also yet to

be e0plored'

• 1he rural market in .ndia is vast and s/attered and offers a plethora of

opportunities in /omparison to the urban se/tor' .t /overs the ma0imum

population and regions and thereby, the ma0imum number of /onsumers'

• 1he so/ial status of the rural regions is pre/arious as the in/ome level and litera/y

is e0tremely low along with the range of traditional values and superstitious

beliefs that have always been a ma3or impediment in the progression of this

se/tor'

• 1he steps taken by the %overnment of .ndia to initiate proper irrigation,

infrastru/tural developments, prevention of flood, grants for fertili?ers, and

various s/hemes to /ut down the poverty line have improved the /ondition of the

rural masses

RURA& MARETIN' - A $RITI$A& RE"IE/

2rime Minister Manmohan Singh re/ently talked about his vision for rural .ndia: GMy

vision of rural .ndia is of a modern agrarian, industrial and servi/es e/onomy /o-e0isting

side by side, where people /an live in well-equipped villages and /ommute easily to

work, be it on the farm or in the non-farm e/onomy' 1here is mu/h that modern s/ien/e

and te/hnology /an do to realise this vision' &ural in/omes have to be in/reased' &ural

infrastru/ture has to be improved' &ural health and edu/ation needs have to be met'

6mployment opportunities have to be /reated in rural areas'G

H%o ruralH is the slogan of marketing gurus after analy?ing the so/io-e/onomi/ /hanges in

villages' 1he &ural population is nearly three times the urban, so that &ural /onsumers

have be/ome the prime target market for /onsumer durable and non-durable produ/ts,

food, /onstru/tion, ele/tri/al, ele/troni/s, automobiles, banks, insuran/e /ompanies and

other se/tors besides hundred per /ent of agri-input produ/ts su/h as seeds, fertili?ers,

pesti/ides and farm ma/hinery' 1he .ndian rural market today a//ounts for only about &s

= billion of the total ad pie of &s +*) billion, thus /laiming 9'9 per /ent of the total share'

So /learly there seems to be a long way ahead' lthough a lot is spoken about the


15/81

immense potential of the une0plored rural market, advertisers and /ompanies find it

easier to vie for a share of the already divided urban pie'

1he su//ess of a brand in the .ndian rural market is as unpredi/table as rain' .t has always

been diffi/ult to gauge the rural market' Many brands, whi/h should have been

su//essful, have failed miserably' More often than not, people attribute rural market

su//ess to lu/k' 1herefore, marketers need to understand the so/ial dynami/s and attitude

variations within ea/h village though nationally it follows a /onsistent pattern looking at

the /hallenges and the opportunities whi/h rural markets offer to the marketers it /an be

said that the future is very promising for those who /an understand the dynami/s of rural

markets and e0ploit them to their best advantage' radi/al /hange in attitudes of

marketers towards the vibrant and burgeoning rural markets is /alled for, so they /ansu//essfully impress on the *) million rural /onsumers spread over appro0imately si0

hundred thousand villages in rural .ndia'

/8t u86 m8:et bu!?

&ural .ndia buys small pa/ks, as they are per/eived as value for money' 1here is brand

sti/kiness, where a /onsumer buys a brand out of habit and not really by /hoi/e' "rands

rarely fight for market shareE they 3ust have to be visible in the right pla/e' 6vene0pensive brands, su/h as !lose-Up, Marie bis/uits and !lini/ shampoo are doing well

be/ause of deep distribution, many brands are doing well without mu/h advertising

support J %hadi, a big detergent brand in North .ndia, is an e0ample'

/! Ru86 M8:et?

1he .ndian rural market has a huge demand base and offers great opportunities to

marketers' 1wo-thirds of .ndian /onsumers live in rural areas and almost half of the

national in/ome is generated here' 1he reasons for heading into the rural areas are fairly

/lear' 1he urban /onsumer durable market for produ/ts like /olour 1Cs, washing

ma/hines, refrigerators and air /onditioners is growing annually at between ; per /ent

and +) per /ent'


16/81

1he rural market is ?ooming ahead at around *( per /ent annually' G1he rural market is

growing faster than urban .ndia now,G says Cenugopal 4hoot, /hairman of the &s D=D

-/rore#&s billion$ Cideo/on pplian/es' G1he urban market is a repla/ement and up

gradation market today,G adds SamsungHs dire/tor, marketing, &avinder utshi'

Re8o 7o im;oemet o7 buie i u86 8e8

• So/io-e/onomi/ /hanges #lifestyle, habits and tastes, e/onomi/ status$

• 7itera/y level #*(B before independen/e L more than 9(B in *))+$

• .nfrastru/ture fa/ilities #roads, ele/tri/ity, media$

• .n/rease in in/ome

• .n/rease in e0pe/tations

M&1, the spe/ialist rural marketing and rural development /onsultan/y has found that

( per /ent of


17/81

Media rea/h is a strong reason for the penetration of goods like /osmeti/s, mobile

phones, et/', whi/h are only used by the urban people' .n/reasing awareness and

knowledge on different produ/ts and brands a//elerate the demand' 1he rural audien/e

are however /riti/al of glamorous ads on 1C, and depend on the opinion leaders who

introdu/e the produ/t by using it and re/ommending it'

Opinion leaders play a key role in populari?ing produ/ts and influen/e in rural market'

Nowadays edu/ated youth of rural also influen/es the rural /onsumers' &ural /onsumers

are influen/ed by the life style they wat/h on television sets' 1heir less e0posure to

outside world makes them inno/ent and fas/inated to novelties' 1he rea/h of mass

television media, espe/ially television has influen/ed the buying behaviour greatly

$e8ti9 b8d 7o u86 Idi8

&ural markets are deli/ately powerful' !ertain adaptations are required to /ater to the

rural massesE they have unique e0pe/tation and warrant /hanges in all four parameters of

produ/t, pri/e, promotion and distribution'

lot is already emphasi?ed on adapting the produ/t and pri/e in terms of pa/kaging,

flavouring, et/ and in sa/hets, pri/ed to suit the e/onomi/ status of the rural .ndia in si?es

like &s'( pa/ks and &e'+ pa/ks that are per/eived to be of value for money' 1his is a

typi/al penetration strategy, that promises to /onvert the first time /ustomers to repeated

/ustomers'

1he promotion strategies and distribution strategies are of paramount importan/e' d

makers have learnt to leverage the benefits of improved infrastru/ture and media rea/h'

1he television airs advertisements to lure rural masses, and they are sure it rea/hes the

target audien/e, be/ause ma3ority of rural .ndia possesses and is glued to 1C sets

4istributing small and medium si?ed pa/kets thro poor roads, over long distan/es, into

deep po/kets of rural .ndia and getting the sto/kiest to trust the mobility is a 5er/ulean

task' %iving the /onfiden/e those advertisements will support' Sales for/e is being trained


18/81

to win the /onfiden/e of opinion leaders' Opinion leaders play an important role in

populari?ing the brand' 1hey sometimes play the role of entry barriers for new produ/ts'

1he method of promotion needs to be tailored to suit the e0pe/tations of the market'

1e/hniques that have proved to be su//essful are Can /ampaigns, edutainment films,

generating word of mouth publi/ity through opinion leaders, /olourful wall paintings'

1he Aide rea/h of television has e0posed the other wise /onservative audien/e to

westerni?ation' 2an/hayat televisions in 1amilnadu /arries message that are well re/eived

and /ontribute to /ommunity development'

4ynami/s of rural markets differ from other market types, and similarly rural marketing

strategies are also signifi/antly different from the marketing strategies aimed at an urban

or industrial /onsumer' 1his, along with several other related issues, have been sub3e/t

matter of intense dis/ussions and debate in /ountries like .ndia and !hina and fo/us of

even international symposia organi?ed in these /ountries'

&ural markets and rural marketing involve a number of strategies, whi/h in/lude:

!lient and lo/ation spe/ifi/ promotion

Ioint or /ooperative promotion

"undling of inputs

2artnership for sustainability

!lient and 7o/ation spe/ifi/ promotion involves a strategy designed to be suitable to the

lo/ation and the /lient' Ioint or /o-operative promotion strategy involves parti/ipation

between the marketing agen/ies and the /lient' H"undling of inputsH denote a marketingstrategy, in whi/h several related items are sold to the target /lient, in/luding

arrangements of /redit, after-sale servi/e, and so on' Media, both traditional as well as the

modern media, is used as a marketing strategy to attra/t rural /ustomers'


19/81

2artnership for sustainability involves laying and building a foundation for /ontinuous

and long lasting relationship'

.nnovative media /an be used to rea/h the rural /ustomers' &adio and television are the

/onventional media that are rea/hing the rural audien/e effe/tively' "ut horse /art,

bullo/k /art and wall writing are the other media, whi/h /an /arry the message effe/tively

to the rural /ustomers'

&ural marketing is an evolving /on/ept, and as a part of any e/onomy has untapped

potentialE marketers have reali?ed the opportunity re/ently' .mprovement in infrastru/ture

and rea/h, promise a bright future for those intending to go rural' &ural /onsumers are

keen on branded goods nowadays, so the market si?e for produ/ts and servi/es seems to

have burgeoned' 1he rural population has shown a trend of wanting to move into a state

of gradual urbani?ation in terms of e0posure, habits, lifestyles and lastly, /onsumption

patterns of goods and servi/es' 1here are dangers on /on/entrating more on the rural

/ustomers' &edu/ing the produ/t features in order to lower pri/es is a dangerous game to

play'

RURA& MARET - A /OR&D OF OPPORTUNIT#

%ON6 &6 the days when a rural /onsumer went to a nearby /ity to buybranded

produ/ts and servi/esG' 1ime was when only a sele/t household /onsumed branded

goods, be it tea or 3eans' 1here were days when big /ompanies flo/ked to rural markets to

establish their brands' 1oday, rural markets are /riti/al for every marketer - be it for a

branded shampoo or an automobile' 1ime was when marketers thought van /ampaigns,

/inema /ommer/ials and a few wall paintings would suffi/e to enti/e rural folks under

their folds' 1hanks to television, today a /ustomer in a rural area is quite literate about

myriad produ/ts that are on offer in the market pla/e' n .ndian farmer going through his

daily /hores wearing 3eans may sound idioti/' Not for rvind Mills, though' Ahen it

laun/hed the &uf 1uf kits, it had /reated quite a sensation among the rural folks as well

within few months of their laun/h'


20/81

1rends indi/ate that the rural markets are /oming up in a big way and growing twi/e as

fast as the urban, witnessing a rise in sales of hitherto typi/al urban kit/hen gadgets su/h

as refrigerators, mi0er-grinders and pressure /ookers' //ording to a National !oun/il for

pplied 6/onomi/ &esear/h #N!6&$ study, there are as many Hmiddle in/ome and

aboveH households in the rural areas as there are in the urban areas' 1here are almost

twi/e as many Hlower middle in/omeH households in rural areas as in the urban areas' t

the highest in/ome level there are *' million urban households as against +'9 million

households in rural areas' //ording to Mr' 4' Shivakumar, "usiness 5ead #5air$,

2ersonal 2rodu/ts 4ivision, 5industan 7ever 7imited, the money available to spend on

UO NON for making inroads into rural markets' 1he pri/e-

sensitivity of a /onsumer in a village is something the marketers should be alive to' &ural

in/ome levels are largely determined by the vagaries of monsoon and, hen/e, the demand

there is not an easy horse to ride on' part from in/reasing the geographi/al width of

their produ/t distribution, the fo/us of /orporates should be on the introdu/tion of brands

and develop strategies spe/ifi/ to rural /onsumers' "ritannia .ndustries laun/hed 1iger


21/81

"is/uits espe/ially for the rural market' .t /learly paid dividend' .ts share of the glu/ose

bis/uit market has in/reased from ; per /ent to +( per /ent'

E77e4tie 4ommui48tio

n important tool to rea/h out to the rural audien/e is through effe/tive

/ommuni/ation' rural /onsumer is brand loyal and understands symbols better' 1his

also makes it easy to sell look - alikeG, says Mr' &'C &a3an, !M4, nugrah Madison

dvertising' 1he rural audien/e has matured enough to understand the /ommuni/ation

developed for the urban markets, espe/ially with referen/e to


22/81

/ent of all those graduating from /olleges are rural youth' 1hey are the de/ision makers

and are not very different in edu/ation, e0posure, attitudes and aspirations from their

/ounterparts at least in smaller /ities and towns'

Diti4t m8:eti9

Sin/e marketing is to target the growing segments, Mr'


23/81

RURA& BRANDIN' IS DISTIN$T DIFFERENT FROM URBAN

MARETIN'

.n rural .ndia, the branding rules are distin/tly different from urban markets' Not

only does the /ultural lands/ape differ, the fa/tors that influen/e pur/hasing

de/isions differ too' 2ri/e and value for money are high on their list'

&ural branding /alls for a greater /omponent of lo/al media and less of the mass

media' Sin/e these markets have spe/iali?ed forums of their own like like temple

festivals, melas, /inema halls, these /an be leveraged to promote brands' 4ire/t

Marketing and events like road shows, film shows, melas, street theatre /an also be

used to promote brands'

Sin/e the litera/y rate is not so high, branding a/tivities move more towards

symbols, visuals and audio and video /ampaigns'


24/81

.n a market where life has revolved around deep rooted /ommunity values, 3oint families,

and so/ial /ustoms and taboos #women, for e0ample, are not allowed to wear trousers$,

marketers reali?e that the traditional routes of market entry and brand building employed

in urban .ndia are often not feasible' s di %odre3, !hairman of the %odre3 %roup, says,

Q1he /hallenge Rfor brands is to understand the Rpsy/he of the rural /onsumer, /reate

better distribution, and Rappre/iate the heterogeneity'T

.n re/ent times, rural .ndia has witnessed a wave of /hange' 4inesh Malhotra, general

manager of 7interland #rural arm of 7intas$, points out, QAith media e0posure andin/reasing litera/y levels, people in rural .ndia are now demanding a better lifestyle'T 1he

edu/ated Qrural yuppieT #males in the +(-8 age group$ is moving out to work in nearby

towns and /ities, and sending money home to his family' 1his has /reated an indire/t

in/rease in disposable in/omes and a surge in demand for /onsumer goods' 1he rural

youth are slowly evolving as Qopinion leadersT in influen/ing brand and produ/t

de/isions in a market that was swayed by village elders for /enturies'

Ahen building a brand in rural .ndia, word-of-mouth is a huge motivator'


25/81

4ire/t media promotions have helped build knowledge of produ/t /ategories and /hange

long-entren/hed living habits' !olgate-2almolive, a leading oral hygiene produ/t

manufa/turer, entered the rural market at a time when QNeemT twigs #the Neem tree has

herbal properties$ and non-dentifri/e produ/ts like ash, /har/oal, or salt were the norm

for brushing teeth #in fa/t in some rural po/kets, this tradition still /ontinues$' .n *))+,

!olgate-2almolive laun/hed QOperation IagrutiT to edu/ate villagers about oral hygiene

and its benefits vis-V-vis traditional produ/ts like QNeem'T 1hrough produ/t trials and

free samples, the /ompany was able to generate awareness in this new market' On a

similar note, !K &anganathan, managing dire/tor of !avin Kare, notes, QAhen we

entered the rural areas in South .ndia, people used to wash their hair with soap' Ahen we

laun/hed the W!hik brand of shampoo we edu/ated the people on how to use it through

live Wtou/h and feel demonstrations and also distributed free sa/hets at fairs' 1his

strategy worked wonders in the rural areas of 1amil Nadu and ndhra 2radeshJtwo

important states in .ndia'T

!olgate and !avin Kare have shown that /ommuni/ation is key when it /omes to

building brands in rural markets' s &' C' &a3an, managing dire/tor of the nugrah

dvertising gen/y, adds, Q1o /ommuni/ate effe/tively, it is important to understand the

fears, aspirations, and hopes of the rural /onsumer'T Not to mention the traditions and

stereotypes that have governed their lives for /enturies'

Ahile /ommuni/ating the brand message, marketers must reali?e that language plays a

prime role' 1hough a large part of urban .ndia is well versed in 6nglish #thanks to the

"ritish and modern television$, in rural .ndia, heritage plays a powerful role and regional

languages are predominant' 1here are +( regional languages, and +9)) diale/ts in .ndia,


26/81

and as one moves into the /ountryside, 6nglish is repla/ed with regional tongues' C' S'

Sitaram, 4abur .ndia e0e/utive dire/tor, e0plains, QOften people treat .ndia as one big

market, but the reality is that .ndia is more like the 6uropean UnionJa mi0 of different

/ultures, habits and languages'T 4abur is also /onsidering the use of South .ndian

/elebrities to propagate the brand message in South .ndia' Marketing /ompanies not only

need to /ustomi?e their /ommuni/ation, but in some /ases they must also /hange their

produ/t names to mat/h regional differen/es' 1ake toothpaste, for e0ample: Q4aburs 7al

4ant Man3anT #red toothpowder in 5indi$ was re/hristened as Q4abur Sivappu 2al 2odiT

#red toothpowder in 1amil, the lo/al language$ for the South .ndian market'

ffordability of the produ/t is also a /riti/al su//ess fa/tor when building brands'

spokesperson from 1ata %roup, whi/h retails the Sonata brand of wat/hes to rural .ndia,says, QRrural folks think of a pur/hase in terms of how it serves their needs and how well

its suits the family, rather than the individual'T 2rodu/ts must be affordable and

immensely pra/ti/al'


27/81

1he /hallenge doesnt end with 3ust building brand awareness' Ahile television and dire/tmarketing a/tivities help rural /onsumers learn about different brands, ensuring produ/t

availability is even more /riti/al' Marketers in rural .ndia /laim that setting up a supply

/hain that rea/hes the remotest rural areas is e0tremely arduous given the infrastru/ture in

the /ountry' //ording to 5arish Manwani, /hairman of 5industan Unilever 7imited

#5U7$, Q1he rural market R/enters are s/attered over large areas and Rtheir /onne/tivity

to the urban /enters is poor'T 1o over/ome the distribution /hallenge and in/rease

penetration in rural hinterlands, 5U7 laun/hed a unique operation /alled Po>e4t S8:ti

in *))+ #QShaktiT is a 5indi word whi/h means QstrengthT$' 1he pro3e/t targeted rural

women from e0isting self-help groups to work as Qdire/t-to-homeT distributors for 5U7

produ/ts, and helped the /ompany break into a market they were unfamiliar with'

Malhotra #7interland$ believes that, QAhile 2ro3e/t Shakti might have worked for 5U7,

it is not an established /hannel'T &easons like relatively high /apital investment, gender

roles, and taboos /ould present an upper limit to those sales numbers' //ording to

Malhotra, a Qhub and spokeT model of distribution is the Qfuture'T s he e0plains, QAesu//essfully adopted the hub and spoke model for 4abur .ndia and it has worked very

well' 5ere, feeder towns, primarily on the highways serve as hubs, where /ompanies /an

rent a warehouse and sto/k their produ/ts' RSpokes are /omprised of W/y/list salesmen

Rwho then distribute produ/ts to small retail outlets in nearby rural po/kets'T

.n short, /ustomi?ed and affordable produ/ts, effe/tive distribution, and fo/used

marketing initiatives are essential fa/tors in building /redibility for a brand in rural .ndia'

"rand awareness and trust will play a key role in /ombating the blit? of lo/al /opy/at

brands that are formidable /ompetition' .f marketers tailor make their brand building

initiatives a//ording to the dynami/s of the rural market, it may no longer /ome as a

surprise to see the rural .ndian /onsumer sitting before a Samsung television, en3oying a

bag of


28/81

INTRODU$TION TO %ISTOR# OF IT$

.1! was in/orporated on ugust *8, +D+) under the name of H.mperial 1oba//o

!ompany of .ndia 7imitedH' .ts beginnings were humble' leased offi/e on &adha "a?ar

7ane, Kolkata, was the /entre of the !ompanyHs e0isten/e' 1he !ompany /elebrated its

+9th birthday on ugust *8, +D*9, by pur/hasing the plot of land situated at ;,

!howringhee, #now renamed I'7' Nehru &oad$ Kolkata, for the sum of &s +),)))' 1his

de/ision of the !ompany was histori/ in more ways than one' .t was to mark the

beginning of a long and eventful 3ourney into .ndiaHs future' 1he !ompanyHs headquarter

building, HCirginia 5ouseH, whi/h /ame up on that plot of land two years later, would go

on to be/ome one of KolkataHs most venerated landmarks' 1he !ompanyHs ownership

progressively .ndianised, and the name of the !ompany was /hanged to .'1'!' 7imited in

+D;8' .n re/ognition of the !ompanyHs multi-business portfolio en/ompassing a wide

range of businesses - !igarettes 1oba//o, 5otels, .nformation 1e/hnology, 2a/kaging,

2aperboards Spe/ialty 2apers, gri-60ports,


29/81

nation' .1! /hose the hotels business for its potential to earn high levels of foreign

e0/hange, /reate tourism infrastru/ture and generate large s/ale dire/t and indire/t

employment' Sin/e then .1!Hs 5otels business has grown to o//upy a position of

leadership, with over 9( owned and managed properties spread a/ross .ndia'

.n +D;D, .1! entered the P8;ebo8d buie by promoting .1! "hadra/halam

2aperboards 7imited, whi/h today has be/ome the market leader in .ndia' "hadra/halam

2aperboards amalgamated with the !ompany effe/tive Mar/h +, *))* and be/ame a

4ivision of the !ompany, "hadra/halam 2aperboards 4ivision' .n November *))*, this

division merged with the !ompanyHs 1ribeni 1issues 4ivision to form the 2aperboards

Spe/ialty 2apers 4ivision' .1!Hs paperboardsH te/hnology, produ/tivity, quality and

manufa/turing pro/esses are /omparable to the best in the world' .t has also made animmense /ontribution to the development of Sarapaka, an e/onomi/ally ba/kward area in

the state of ndhra 2radesh' .t is dire/tly involved in edu/ation, environmental prote/tion

and /ommunity development' .n *))8, .1! a/quired the paperboard manufa/turing

fa/ility of ".71 .ndustrial 2a/kaging !o' 7td #".2!O$, near !oimbatore, 1amil Nadu'

1he Kovai Unit allows .1! to improve /ustomer servi/e with redu/ed lead time and a

wider produ/t range'

.n +D=(, .1! set up Surya 1oba//o !o' in Nepal as an .ndo-Nepal and "ritish

3oint venture' Sin/e in/eption, its shares have been held by .1!, "ritish meri/an

1oba//o and various independent shareholders in Nepal' .n ugust *))*, Surya 1oba//o

be/ame a subsidiary of .1! 7imited and its name was /hanged to Su!8 Ne;86 Pi8te

&imited #Surya Nepal$'

.n +DD), .1! a/quired 1ribeni 1issues 7imited, a Spe/ialty paper manufa/turing

/ompany and a ma3or supplier of tissue paper to the /igarette industry' 1he merged entity

was named the 1ribeni 1issues 4ivision #114$' 1o harness strategi/ and operational

synergies

, 114 was merged with the "hadra/halam 2aperboards 4ivision to form the

P8;ebo8d S;e4i86t! P8;e Diiio in November *))*'


30/81

lso in +DD), leveraging its agri-sour/ing /ompeten/y, .1! set up the

Ite8tio86 Buie Diiio (IBD) for e0port of agri-/ommodities' 1he 4ivision is

today one of .ndiaHs largest e0porters' .1!Hs unique and now widely a/knowledged e-

!houpal initiative began in *))) with soya farmers in Madhya 2radesh' Now it e0tends

to ; states /overing over '( million farmers' .1!Hs first rural mall, /hristened H!houpal

SaagarH was inaugurated in ugust *))8 at Sehore' 1he year *))9 witnessed the ramping

up of the !ompanyHs rural retailing network with +) H!houpal SaagarsH being operational

in three states of Madhya 2radesh, Maharashtra and Uttar 2radesh' Nine more H!houpal

SaagarsH are in an advan/ed stage of /onstru/tion and will be laun/hed shortly'

.n *))), .1!Hs 2a/kaging 2rinting business laun/hed a line of high Cu86it!

9eeti9 48d under the brand name HE@;eioH' .n *))*, the produ/t range wasenlarged with the introdu/tion of 'i7t


31/81

opportunities in this area' .n a short span of ( years, IT$ I7ote4 has already /rossed

over USX 9) million in revenues' .t also has a 3oint venture with !lient7ogi/, a top five

global "usiness 2ro/ess Outsour/ing #"2O$ provider'

.1!Hs foray into the


32/81

$OMPAN# PROFI&E

.1! is one of .ndiaHs foremost private se/tor /ompanies with a market

/apitali?ation of over US X + billion and a turnover of US X '( billion' &ated among the

AorldHs "est "ig !ompanies by


33/81

.1!Hs gri-"usiness is one of .ndiaHs largest e0porters of agri/ultural produ/ts'

.1! is one of the /ountryHs biggest foreign e0/hange earners #US X *'8 billion in the last

de/ade$' 1he !ompanyHs He-!houpalH initiative is enabling .ndian agri/ulture signifi/antly

enhan/e its /ompetitiveness by empowering .ndian farmers through the power of the

.nternet' 1his transformational strategy, whi/h has already be/ome the sub3e/t matter of a

/ase study at 5arvard "usiness S/hool, is e0pe/ted to progressively /reate for .1! a huge

rural distribution infrastru/ture, signifi/antly enhan/ing the !ompanyHs marketing rea/h'

.1!Hs wholly owned .nformation 1e/hnology subsidiary, .1! .nfote/h .ndia

7imited, is aggressively pursuing emerging opportunities in providing end-to-end .1

solutions, in/luding e-enabled servi/es and business pro/ess outsour/ing'

.1!Hs produ/tion fa/ilities and hotels have won numerous national and

international awards for quality, produ/tivity, safety and environment management

systems' .1! was the first /ompany in .ndia to be rated for !orporate %overnan/e by

.!&, an asso/iate of MoodyHs .nvestors Servi/e, whi/h a//orded it the se/ond highest

rating, signifying Ga high level of assuran/e on the quality of /orporate governan/e'G

.1! employs over *),))) people at more than 9) lo/ations a/ross .ndia' &anked

among .ndiaHs most valuable /ompanies by the H"usiness 1odayH maga?ine, .1!/ontinuously endeavors to enhan/e its wealth generating /apabilities in a globalising

environment to /onsistently reward more than 8,9),))) shareholders, fulfill the

aspirations of its e0pressively /aptured in its /orporate positioning statement: G6nduring

Calue'


34/81

T%E IT$ "ISION

Sustain .1!s position as one of .ndias most valuable /orporations

through world /lass performan/e, /reating growing value for the .ndian

e/onomy and /ompanys stakeholders '

T%E IT$ MISION

1o enhan/e the wealth generating /apability of the enterprise in a

globali?ing environment, delivering superior and sustainable stakeholder

value'

T%E IT$ $ORE "A&UES

.1!Hs !ore Calues are aimed at developing a /ustomer-fo/used, high-performan/e

organisation whi/h /reates value for all its stakeholders:

TRUSTEES%IP

s professional managers, we are /ons/ious that .1! has been given to us in

GtrustG by all our stakeholders' Ae will a/tualise stakeholder value and interest on a long

term sustainable basis

$USTOMER FO$US

Ae are always /ustomer fo/used and will deliver what the /ustomer needs in terms of

value, quality and satisfa/tion'


35/81

RESPE$T FOR PEOP&E

Ae are result oriented, setting high performan/e standards for ourselves as individualsand teams'

Ae will simultaneously respe/t and value people and uphold humanness and human

dignity'

Ae a/knowledge that every individual brings different perspe/tives and /apabilities to the

team and that a strong team is founded on a variety of perspe/tives'

Ae want individuals to dream, value differen/es, /reate and e0periment in pursuit of

opportunities and a/hieve leadership through teamwork'

E,$E&&EN$E

Ae do what is right, do it well and win' Ae will strive for e0/ellen/e in whatever we do'

INNO"ATION

Ae will /onstantly pursue newer and better pro/esses, produ/ts, servi/es and

management pra/ti/es'

NATION ORIENTATION

Ae are aware of our responsibility to generate e/onomi/ value for the Nation' .n pursuit

of our goals, we will make no /ompromise in /omplying with appli/able laws and

regulations at all levels'


36/81

PREAMB&E -

Over the years, .1! has evolved from a single produ/t /ompany to a multi-

business /orporation' .ts businesses are spread over a wide spe/trum, ranging from

/igarettes and toba//o to hotels, pa/kaging, paper and paperboards and international

/ommodities trading' 6a/h of these businesses is vastly different from the others in its

type, the state of its evolution and the basi/ nature of its a/tivity, all of whi/h influen/e

the /hoi/e of the form of governan/e' 1he /hallenge of governan/e for .1! therefore lies

in fashioning a model that addresses the uniqueness of ea/h of its businesses and yet

strengthens the unity of purpose of the !ompany as a whole' Sin/e the /ommen/ement of

the liberalisation pro/ess, .ndiaHs e/onomi/ s/enario has begun to alter radi/ally'

%lobalisation will not only signifi/antly heighten business risks, but will also /ompel.ndian /ompanies to adopt international norms of transparen/y and good governan/e'

6qually, in the resultant /ompetitive /onte0t, freedom of e0e/utive management and its

ability to respond to the dynami/s of a fast /hanging business environment will be the

new su//ess fa/tors'

PO&I$# OF %UMAN RI'%TS

.1! believes that all its employees must live with so/ial and e/onomi/ dignity andfreedom, regardless of nationality, gender, ra/e, e/onomi/ status or religion' .n the

management of its businesses and operations therefore, .1! ensures that it upholds the

spirit of human rights as enshrined in e0isting international standards su/h as the

Universal 4e/laration and the


37/81

1he !orporate 5uman &esour/es fun/tion of .1! is responsible for the 5uman &ights

2oli/y design, implementation and updation'

1he poli/y is implemented at all lo/ations of .1! through a set of e;88te poli/ies and

pro/edures /overing ea/h of the main /onstituents of human rights appli/able at the

workpla/es'

Moitoi9 Audit

1he assessment pro/edures for different /onstituents of this poli/y are defined against

ea/h spe/ifi/ poli/y'

IT$-FM$'

$i98ette

.1! is the market leader in /igarettes in .ndia' .ts highly popular portfolio of brands

in/ludes .nsignia, .ndia Kings, !lassi/, %old


38/81

1he


39/81

Aith a distin/tive presen/e a/ross segments at the premium end, .1! has also established

Iohn 2layers as a brand that offers a /omplete fashion wardrobe to the male youth of

today'

Edu48tio St8tio8!

.1! made its entry into the stationery business in the year *))* with its premium range of

notebooks' .1!Hs 6du/ation and Stationery 2rodu/ts are marketed under the brands

G!lassmateG and G2aperkraftG'

1he !lassmate range of produ/ts is targeted at satisfying edu/ation stationery needs of

students young adults' 1he produ/t range in/ludes Notebooks, Math .nstruments,

S/holasti/ 2rodu/ts as well as Ariting .nstruments'

1he 2aperkraft range of produ/ts aims at satisfying the stationery needs offi/e

/onsumables need of offi/e e0e/utives working professional' 1he /ontinuously

e0panding produ/t range under 2aperkraft in/ludes 2remium "usiness 2aper, 2aper

Stationery, Markers 5ighlighters'

S87et! M8t4e

.1!s range of Safety mat/hes in/lude popular brands like i Kno, Mangaldeep, im, im

Mega and im Metro' Aith differentiated produ/t features and innovative value

additions, these brands effe/tively address the needs of different /onsumer segments' 1he

im brand is the largest selling brand of Safety Mat/hes in .ndia'

.1! also e0ports regular and premium safety mat/hes brands to markets su/h as Middle6ast, fri/a and the US' .1! aims to enhan/e the /ompetitiveness of the small and

medium s/ale se/tors through its /omplementary &4 based produ/t development and

marketing strengths, espe/ially the breadth and depth of the !ompanyHs trade marketing

and distribution'


40/81

A998b8tti

.1! /ommen/ed marketing garbattis #.n/ense Sti/ks$ sour/ed from small-s/ale and

/ottage units in *))' Mangaldeep garbattis are available in a wide range of fragran/es

like &ose, Iasmine, "ouquet, Sandalwood, Madhur, 4urbar, 1arangini, nushri, nanth

and Mogra'4urbar %old is a new offering from Mangaldeep laun/hed in ndhra 2radesh

and has re/eived wide /onsumer a//eptan/e' 1he premium range from .1!, Mangaldeep

Spriha has two offerings, 2ratiti and Sarvatra and is spe/ially hand rolled by !ottage

.ndustries, Sri urobindo shram, 2ondi/herry'

Peo86 48e

.1! forayed into the 2ersonal !are business in Iuly *))(' .n the short period sin/e its

entry, .1! has already laun/hed an array of brands, ea/h of whi/h offers a unique and

superior value proposition to dis/erning /onsumers' n/hored on e0tensive /onsumer

resear/h and produ/t development, .1!Hs personal /are portfolio brings world-/lass

produ/ts with /learly differentiated benefits to quality-seeking /onsumers'

.1!Hs 2ersonal !are portfolio under the H6ssen?a 4i AillsH, H


41/81

Bingo!

S84: 7ood

"ingo was laun/hed in Mar/h *)); with a wide range of

e0/iting pa/kaged salted sna/ks' 1he range in/ludes multiple flavor variants of 2otato

!hips


42/81

/8t e


43/81

/ombination of innovative flavours

on a traditional khakra base, Mad ngles is a sna/k that is true to taste and perfe/t flavour

delivery as well as shape, making it a sna/k thats truly "har angles se Mmmm…"

/8t e


44/81

Bi9o Tede Mede G A t


45/81

Bi9o IT$ tu 8oud 7ood buie

.1!, the paper to hotels /onglomerate, whi/h saw its non-


46/81

S/OT ANASIS OF IT$

#trengths

IT$ leveraged it traditional businesses to develop new brands for new segments' .1! is a

diversified /ompany trading in a number of business se/tors in/luding /igarettes, hotels,

paper, agri/ulture, pa/kaged foods and /onfe/tionary, branded apparel, personal /are,

greetings /ards, .nformation 1e/hnology, safety mat/hes, in/ense sti/ks and stationery'

$ea%nesses

1o fund its /ash gu??ling


47/81

2er /apita /onsumption of personal /are produ/ts in .ndia is the lowest in the world

offering an opportunity for .1!Hs soaps, shampoos and fragran/es under their Aills brand'

Te8t

1he obvious threat is from /ompetition, both domesti/ and international'

.1!Hs opportunities are likely to be opportunities for other /ompanies as well' 1herefore

the dynami/ of /ompetition will alter in the medium-term' 1hen .1! will need to de/ide

whether being a diversified /onglomerate is the most /ompetitive strategi/ formation for

a se/ure future'


48/81

&ITERATURE RE"IE/

S8m8 D=D= D= M8:eti9 Ree84. Su6t8 $8d o N=De6i 1 2d

editio ;; +0-+1-


49/81

. have taken the information regarding /onsumer "ehaviour and !ognitive

dissonan/e'

Su>8 R= N8i $oume Be8iou i Idi8 Pe;e4tie (Fit Editio

2001) %im868!8 Pub6ii9 %oue Mumb8iK= PP 3-*''

RESEAR$% MET%ODO&O'#

&esear/h in /ommon parlan/e refers to a sear/h for knowledge' One /an also

define resear/h as a s/ientifi/ and systemati/ sear/h for pertinent information in a

spe/ifi/ topi/' 1he advan/ed learners di/tionary of /urrent 6nglish lays down the

meaning of resear/h as a /areful investigation or inquiry spe/ially through sear/h for new

fa/ts in any bran/h of knowledge' &edman and Mory defnes resear/h as a QSystemati?ed

effort to gain new knowledge'T

&esear/h is an a/ademi/ a/tivity and as su/h the term should be used in a

te/hni/al sense' //ording to !lifford woody resear/h /omprises defining and redefining

problems, formulating hypothesis or suggested solutionsE and /olle/ting, organising and

evaluating dataE making dedu/tions and rea/ting /on/lusionsE and at last /arefully testing

the /on/lusions to determine whether they fit the formulating hypothesis'

&esear/h is thus, an original /ontribution to e0isting sto/k of knowledge making

for its advan/ement' .t is persuit of truth with the help of study, observation, /omparison

and e0periment'

OBE$TI"E OF RESEAR$%

1hrough ea/h resear/h study has its own spe/ifi/ purpose, we may think of

resear/h ob3e/tives as falling into a number of following groupings:

1= 1o gain familiarity with a phenomenon or to a/hieve new insights into it'


50/81

2= 1o portray a//urately the /hara/teristi/s of a parti/ular individual, situation or

a group'

3= 1o test a hypothesis of a /ausal relationship between variables'

&esear/h is /ommon parlan/e refers to resear/h for Knowledge one /an also define

resear/h is a s/ientifi/ and systemati/ sear/h for pertinent information and spe/ifi/

topi/ ' 1he advan/e learner di/tionary of /urrent 6nglish lays down the meaning of

resear/h as :

A $8e7u6 Ieti98tio o eCui! ;e4i866! tou9 e84 7o e< 784t i 8!

b84 o7 ouestions through the

ppli/ations of S/ientifi/ pro/edures' 1he main aim of sear/h is to find out the

truth whi/h is hidden and whi/h has not been dis/overed as yet'

T#PES OF RESEAR$%

De4i;tie "= A86!ti486

4es/riptive &esear/h in/ludes survey and fa/t finding 6nquiries of different kinds' 1he

ma3or purpose of des/riptive resear/h is de/ryption of the state of affairs as it e0ist at

present ' .n so/ial s/ien/e and business resear/h be quit open use the term as fast fa/to

resear/h for des/riptive resear/h studies '


51/81

A;;6ied "= Fud8met86

&esear/h /an either be applied resear/h or fundamental resear/h' pplied &esear/h aims

at finally a solution for an immediate problem fa/ing a so/iety or an industrial@business

organi?ation' Ahere as fundamental resear/h is mainly /on/erned with generali?ation and

with the formulation of a theory'

u8tit8tie " u86it8tie

>uantitative resear/h is based on the measurement of quantity of amount' .t is

appli/able to phenomena that /an be e0pressed in terms of quantity ' >ualitative resear/h

on the other and is /on/erned with qualitative 2henomena'

$o4e;tu86 "= Em;ii486

!on/eptual resear/h is that related to some abstra/t ideas or theory ' .t is generally used

by 2hilosopher and thinkers to develop new /on/epts or to reinterpret e0isting ones'

On the other hand empiri/al resear/h reali?e on e0perien/e or observation alone ,

often without due regards for system and theory '

T#PES OF RESEAR$% USED IN STUD#

.n this study des/riptive resear/h is used' 1he ma3or purpose of des/riptive resear/h is

des/ription of the state of affairs ' s it 60ist at present ' .n this study the information

/olle/ted about the produ/t from rural retailer as well as rural /onsumers by using

interviews and questionnaires '


52/81

RESEAR$% DESI'N

4esign regarding what where when how mu/h by what means /on/erning an enquiry

for resear/h study /onstitutes resear/h design ' &esear/h design is the arrangement of

/onditions for /olle/tion and analysis of data is a manner that aims to /ombine

relevan/e to the resear/h purpose with e/onomy in pro/edure '

>uestionnaire and interview method was designed and administered to the respondents

for the ob3e/tive of the study'

SAMP&IN' DESI'N

.t is a sample random probability sampling and sample is sele/ted on the basis of the

draw of lots' . have also mention likert L type s/ale in questionnaire for rating'

S8m;6e Sie : +)) &espondents of rural areas of yamuna Nagar !ity

DATA $O&&E$TION

.n dealing with any real life problem is often found that data at hand are in

adequate and hen/e it be/omes ne/essary to /olle/t data that are appropriate ' 1here are

several ways of /olle/ting the appropriate data whi/h differ /onsiderable in /onte0t of

money /ost time and other resour/es at the disposable of &esear/her '

1he data sour/es are se/ondary as well as primary:


53/81

Pim8! D8t8

2rimary 4ata /an be /olle/ted either through e0periments or through surveys it' .f

the resear/her /ondu/ts and e0periments, he observes some >uantitative e0periments, or

the data with the help of whi/h he e0amines the truth /ontained in his hypothesis ' "ut

in the /ase a survey data /an be /olle/ted by anyone or more of the followings way:

B! obe8tio

1he method implies the /olle/tion of .nformation by way of investigators own

observation ' Aithout interviewing the respondents the information obtained relates to

that is /urrently happening and is not /ompli/ated by either the past behaviour or future

intentions or attitudes of &espondents'

Tou9 ;eo86 iteieuestionnaire through personal interviews'

Tou9 Te6e;oe Iteieuestionnaire is mailed to the respondents with a request to return after /ompleting

the same' .t is the more e0pensively used method'

Tou9 S4edu6ed

Under this method the enumerators are appointed given training' 1hey are

provided with s/hedules /ontaining relevant questions' 1hese enumerators go to


54/81

respondents with the s/hedules' 4ata are /olle/ted by filling up the s/hedule by

enumerators on the bases of replies given by &espondents '

Se4od8! D8t8

1he Se/ondary 4ata on the other hand are those whi/h have already been /olle/ted

someone else and whi/h have already been passed through the stati/ally pro/ess' Ahen

the resear/her utili?ed se/ondary data then he has to look into various sour/es from he

/an obtained them '


55/81

OBE$TI"E OF T%E STUD#

• 1o study the rural marketing , its opportunities and /hallenges

• .mportant fa/tors that influen/e rural /onsumer buying of .1! produ/ts

• Understanding the visibility and availability of .1! brand in rural areas

• 1o know the /ompetitor of ea/h line of .1! food produ/ts in the rural market'


56/81

&IMITATIONS OF T%E STUD#

+' Sampling error may /reep in i'e' sample sele/ted may not be a true

representative of the population'

*' 1here was no method to /he/k if the respondents are providing the

true and /onsistent information'

' 1he ranking done by respondents may be affe/ted by their per/eption

the other e0ternal fa/ts like food brand et/' rather than their e0perien/e with

the interior produ/ts'

8' lthough the identity of the analy?er was not to reverted for getting

fair responses, but respondents may still request and not thus, provide the true

responses'

(' n element of personal bias of the dealer while re/ommending

promoting and brand is always there due to many reasons, whi/h /annot be

quantified measured'

9' Ahile /ondu/ting this study, unavoidable errors /rept in su/h as non-

response error responsive style error'

;' Sin/e respondents have been interviewed on personal values

behaviors the responses may not have e0a/tly same'


57/81

DATA ANASIS INTERPRETATION

UESTIONNAIRE FOR T%E RURA& $USTOMER

= /%# RURA& $USTOMER SATISFA$TION IS IMPORTANT -

REASONS FOR RURA& $USTOMER

SATISFA$TION

OF RESPONDENTS

No reasons B

Other suppliers ( B

!ompetitors D B

2rodu/ts dis-satisfa/tion +8 B

ttitude of owner 9D B

INTERPRETATION

1he above data table reveals that B respondents said that no reasons for the rural

/ustomer satisfa/tion , ( B said that Other suppliers, DB said that /ompetitive market ,

+8 B said that 2rodu/t dissatisfa/tion and the 9D B said ttitude of owner ' So , it is


58/81

/lear ttitude of owner is more important fa/tor or reason for the rural /ustomer

satisfa/tion '

= /%I$% IS MORE IMPORTANT FORM OF RURA& $USTOMER

SATISFA$TION MEASURES ?

FORM OF MEASUREMENT OF RESPONDENTS

Online >uestionnaires ( B


59/81

SATISFA$TION &E"E& OF RESPONDENTS

Satisfy ;( B

5ighly satisfy ( B

4issatisfy ) B Neutral *) B

INTERPRETATION

Most of the rural &espondents said that they are satisfy with the .1!


60/81

shirwaad 9) B

"ingo +) B

!andiman ( B

Sunfeast *(B

INTERPRETATION

Out of +)) B &espondents 9) B said that shirwaad is more demanded other than *(

B said Sunfeast is more demanded and the rest of +( B said that "ingo and /andyman is

more demanded ' So /on/luded shirwaad is main produ/t of .1! by whi/h they are

stable in rural market '

>' /%I$% TERM IS MORE IMPORTANT FOR T%E RURA& $USTOMER

FO$US TO IN$REASE T%E SA&E OF IT$ PRODU$TS ?

TERM FOR T%E $USTOMER FO$US OF RESPONDENTS

&ural !ustomer needs in terms of value *) B

>uality *) B

Satisfa/tion 9) B


61/81

INTERPRETATION

s the above data every term is ne/essary either it is rural /ustomer needs , >uality or

satisfa/tion but today is /ompetitive rural market so Satisfa/tion is more important term

whi/h is /ondu/ted by the .1! at different levels ' //ording to &espondents in favor of

Satisfa/tion term '

>' /%I$% DRI"ER IS BASI$A& /OR IN T%E $OMPETITI"E

MARET FOR T%E RURA& $USTOMER SATISFA$TION ?

DRI"ER FOR RURA& $USTOMER

SATISFA$TION

OF RESPONDENTS

6motional fa/tor * B

2ri/e +) B

Servi/e >uality *( B

2rodu/t >uality (( B

//ess to produ/t Servi/e = B


62/81

INTERPRETATION

fter survey . found 2rodu/t >uality 4river is basi/ally work but rather than other fa/tor

also work at different levels' "ut mainly mot of 2refer 2rodu/t >uality similarly Servi/e

>uality also '

= DO #OU %A"E NO/&ED'E ABOUT IT$ PERSONA& $ARE PRODU$TS

o


63/81

INTERPRETATION

s seen above in the graph appro0imately D+'*(B of retailers have knowledge of .1!

Food Podu4t ' 1his indi/ates high level of awareness among retailers regarding .1!

Food Podu4t =


64/81

= DID #OU T%IN A'RESSI"E AD"ERTISIN' /I&& IN$REASE IT$

SA&ES?

A99eie 8detii9


65/81

Yes =)B

No +)B

!ant say +)B

INTERPRETATION


66/81

8) %U& b) IT$ 4) Ote

HUL 70%ITC 20%

thers !0%


67/81

RURAL DEALER SURVEY

DO #OU STO$ IT$ PRODU$T ?

A) #ES

B) NO

1O17 NO O<

&61.76&S

NO O<

&61.76&S

SY.N% QY6ST

NO O<

&61.76&S

SY.N% QNOT

*)) +=+ +D

INTERPRETATION


68/81

/%AT IS #OUR MODE OF PUR$%ASE ?

A) $OMPAN# SA&ESMAN

B) SA&ESMAN /%O&ESA&ER

$) ON /%O&ESA&ER

1O17 NO

O<

&61.76&S

"UY


69/81

A) 100

B) K0

$) *0

D) &ESS T%AN *0

1O17 NO O<

&61.76&S

"UY


70/81

A) ON$E IN A /EE

B) T/I$E IN A /EE

$) ON$E IN T/O /EE

D) ON$E IN A MONT%

S76SMNC.S.1 ON!6 .N A66K

S76SMN C.S.11A.!6 .N A66K

S76SMNC.S.1 ON!6 .N1AO A66K

S76SMNC.S.1 ON!6 .N MON15

;D 9 (; (=

INTERPRETATION

//ording to survey the /ompany sales man do not visits the shop regularly in time'

/%EN DO #OU 'ET DE&I"ER# ?

A) SAME DA#


71/81

B) NE,T DA#

$) MORE T%AN T/O DA#S

1O17 NO O< &61.76&S SM6 4Y N6P1 4Y

MO&6 15N

1AO 4YS

*)) + () +))

INTERPRETATION

//ording to the survey the delivery is not proper in time and takes more than two days

in many /ases'

FINDIN'S


72/81

B respondents said that no reasons for the rural /ustomer satisfa/tion , ( B said

that Other suppliers, DB said that /ompetitive market , +8 B said that 2rodu/t

dissatisfa/tion and the 9D B said ttitude of owner ' So , it is /lear ttitude of

owner is more important fa/tor or reason for the rural /ustomer satisfa/tion '

"y the opinion of the respondents all the forms of measurement are important but

mainly feedba/k form and !&M software is more important whi/h /an easily

measures rural /ustomer satisfa/tion

Most of the rural &espondents said that they are satisfy with the .1!


73/81

;='+*B of retailers feel that aggressive advertising will in/rease sale of .1! Food

Podu4t' 1his indi/ates high need of aggressive advertising for .1! Food

Podu4t'

Ma0imum part of the rural /onsumer de/ision affe/ted by the different

personalities i'e' /elebrities'

;)B rural respondents like 5U7s advertisement , *)B prefer .1! and +)B like

others dvertisement'

ma0imum no of rural retailers sto/k .1! produ/t

ma0imum retailers prefer to buy from /ompany salesman

retailers who buys from the salesman give more prefren/e to buy +)) B from the

/ompany salesman

//ording to the survey the delivery is not proper in time and takes more than

two days in many /ases'


74/81

SU''ESTIONS

Bi9i9 te4o6o9! to Ru86 M8:et

1he entire te/hnology /ommer/iali?ation pro/ess, from idea to market' 1oday as

te/hnology drives innovation and /ompanies seek more effe/tive way to e0ploit the

intelle/tual property they /reate' 1e/hnology is different from any other type of new

produ/t'


75/81

SOME "A&UAB&E SU''ESTIONS

+' 7ow pri/ing

*' 7ess quantity pa/king

' No brands

8' 6du/ating rural people

(' Understanding their needs requirements

9' 6asy a//essibility

;' .dentify the need

=' Study and analyse demographi/s to arrive at the best possible selling pri/e

D' Aork ba/kwards and develop a s/aleable prototype to fit the above *

+)' &ope in opinion leaders for introdu/ing the produ/t among the target segment

++' 6nsure proper feedba/k to make /hanges, if any

+*' &epli/ate and distribute

+' 6nsure a strong servi/ing and replenishment me/hanism

$ON$&USION

1hus, looking at the /hallenges and the opportunities, whi/h rural markets offer to the

marketers, it /an be said that the future is very promising for those who /an understand

the dynami/s of rural markets and e0ploit them to their best advantage' radi/al /hange

in attitudes of marketers towards the vibrant and burgeoning rural markets is /alled for,so they /an su//essfully impress on the *) million rural /onsumers spread over

appro0imately si0 hundred thousand villages in rural .ndia'


76/81

REFEREN$ES

+' &ural Marketing, &avindranath C' "adi and Naranyansa C' "adi, 5imalaya

2ublishing, *))8

*' 1he 5indu - "usiness 7ine

' www'de//anherald'/om

8' www'indiantelevision'/om


77/81

ANNE,URE

UESTIONNAIRE FOR T%E RURA& $USTOMER

= /%# RURA& $USTOMER SATISFA$TION IS IMPORTANT -

REASONS FOR RURA& $USTOMER

SATISFA$TION

No reasons

Other suppliers

!ompetitors

2rodu/ts dis-satisfa/tion

ttitude of owner

= /%I$% IS MORE IMPORTANT FORM OF RURA& $USTOMER

SATISFA$TION MEASURES ?

FORM OF MEASUREMENT

Online >uestionnaires


78/81

5ighly satisfy

4issatisfy

Neutral

&' /%I$% $ATE'OR# OF PRODU$TS IS MORE DEMANDED /%I$%

ARE STAB&E IN T%E RURA& MARET OF IT$ ?

$ATE'OR#

shirwaad

"ingo

!andiman

Sunfeast

>' /%I$% TERM IS MORE IMPORTANT FOR T%E RURA& $USTOMER

FO$US TO IN$REASE T%E SA&E OF IT$ PRODU$TS ?

TERM FOR T%E $USTOMER FO$US

&ural !ustomer needs in terms of value

>uality

Satisfa/tion

&' /%I$% DRI"ER IS BASI$A& /OR IN T%E $OMPETITI"E

MARET FOR T%E RURA& $USTOMER SATISFA$TION ?

DRI"ER FOR RURA& $USTOMER

SATISFA$TION

6motional fa/tor

2ri/e

Servi/e >uality


79/81

2rodu/t >uality

//ess to produ/t Servi/e

= DO #OU %A"E NO/&ED'E ABOUT IT$ PERSONA& $ARE PRODU$TS

o


80/81

RURAL DEALER SURVEY

DO #OU STO$ IT$ PRODU$T ?

$) #ES

D) NO

/%AT IS #OUR MODE OF PUR$%ASE ?

D) $OMPAN# SA&ESMAN

E) SA&ESMAN /%O&ESA&ER

F) ON /%O&ESA&ER

/%AT IS T%E PER$ENTA'E #OU BU# FROM #OUR SA&ESMAN ?

E) 100

F) K0

') *0

&ESS T%AN *0

$OMPAN# SA&ESMAN "ISIT #OUR S%OP ?

E) ON$E IN A /EE

F) T/I$E IN A /EE

') ON$E IN T/O /EE

%) ON$E IN A MONT%

/%EN DO #OU 'ET DE&I"ER# ?

D) SAME DA#


81/81

E) NE,T DA#

Rural Marketing Jmit

Documents

Transcript of Rural Marketing Jmit