“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 Details Page Nos.

No.

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 28
Rural Area
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 Details Page Nos.
No.

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 95 - 112

HINDUSTAN UNILEVER LTD.
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 Details Page Nos.
No.

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 220 - 239

CONCLUSION
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 Details Page
No. 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 22
Sector
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 43
Talukas
4.1 Administrative Sub-Division wise Tahsils of Pune District with 97
Number of Villages
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 Details Page
No. No.

5.9 Sources through which the knowledge of HUL products were 124
available
5.10 Availability of HUL Products at the Rural Area 125
 LIST OF FIGURES
Figure Details Page
No. 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 127
company's products in our village
5.10 Respondents views on - We get quality products since couple of 128
years
5.11 Respondents views on - Before globalization we were getting local 129
made washing powder and such other goods
5.12 Respondents views on - Now we see standard company's delivery 131
vans visit our village
5.13 Respondents views on - Due to advertisements on the television 132
sets we get to know the latest products and their uses
5.14 Respondents views on - Due to development of all weather roads 133
now number of vendors put up their stalls in the weekly market in
the nearby town
5.15 Respondents views on - The colourful advertisements depicting the 134
uses of the new products help us to understand the uses of it
Figure Details Page
No. No.

5.16 Respondents views on - Since the last decade our family budget for 136
toiletries has sizably increased
5.17 Respondents views on - Now we need not go to the nearby town for 137
getting branded goods of daily use
5.18 Respondents views on - I really appreciate the packaging in sachets 138
as we can use it instantly and it is cheaper too
5.19 Respondents views on - My son studying in college insists on 140
specific company's products
5.20 Respondents views on - I am always guided by the quality, utility 141
and price consideration while buying my day to day requirements
5.21 Respondents views on - I go in for new products only on the 142
recommendation of my relative in the nearby city who first uses it
and recommends it to me
5.22 Respondents views on - I prefer small packages because my purse 144
does not permit me to buy in bulk
5.23 Respondents views on - I always prefer to buy products from 145
Hindustan Unilever Ltd. as those are of high quality
5.24 Respondents views on - Hindustan Unilever Ltd. has introduced 146
sachets and small packages of number of products. It helps us in
buying it in small quantity
5.25 Respondents views on - The packaged Red Label Tea from 147
Hindustan Unilever Ltd. has changed our Tea Taste
5.26 Respondents views on - Now our clothes are as white as the city 149
dwellers as we too get Surf in our village
5.27 Respondents views on - In good old days for washing we used to 150
purchase quality products only at the time of Diwali, but now we
regularly use standard products only
5.28 Respondents views on - The representative of HUL has visited my 151
house and enquired about the quality and availability of products
5.29 Respondents views on - As a result of availability of quality goods 153
or daily consumption, we need not go to nearby town
Figure Details Page
No. No.

5.30 Respondents views on - A bank branch has been opened up in our 154
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
5.31 Respondents views on - The number of vendors of goods of daily 155
consumption in the weekly market at our centre has substantially
increased
5.32 Respondents views on - Now we get shampoo / face powders / 156
toilet soaps / packaged tea etc. of branded companies locally
5.33 Respondents views on - Because of my daughter is now studying in 158
college, she needs use of cosmetics of good quality
5.34 Respondents views on - Family members watch the newly 159
introduced products on TV and insist on to buy those
5.35 Respondents views on - My buying decisions are based on the 160
availability of the variety of the products
5.36 Respondents views on - Unless and until I am satisfied about the 162
product expectations I do not buy it
5.37 Respondents views on - I enjoy credit facility from the vendor and 163
therefore I prefer to buy only those products which are available in
that shop only
5.38 Respondents views on - Free gifts / vouchers prompt me to buy that 164
product
5.39 Respondents views on - Due to use of mobile phones our retail 166
shop keeper is in a position to make the goods available at a short
notice
5.40 Respondents views on - Now we have a bank branch in our village 167
which has increased the businesses in our village
5.41 Respondents views on - I was surprised when my son ordered for 168
Tajmahal Tea on his computer and the same was delivered within 3
days by courier
Figure Details Page
No. No.

5.42 Respondents views on - Because of the increase in the irrigated 169

area of our village, our income has also increased
5.43 Respondents views on - Now we are taking cash crops like 170
sugarcane, onion, vegetables in our village
5.44 Respondents views on - Now we have a high school in our village 172
which facilitates our daughters to go to high school
5.45 Respondents views on - A college has been opened in the nearby 173
town which is just adjacent to our village, which facilitates our
boys and girls too to take higher education
5.46 Respondents views on - During the last decade our village has been 174
electrified and now we have colour TV set in almost every house
5.47 Respondents views on - Frequent power failure is faced by us 175
which needs to be resolved
5.48 Respondents views on - During the last decade number of ST buses 176
connecting several cities has increased
5.49 Respondents views on - Since the last two decades there is a 181
demand for branded products in the rural area
5.50 Respondents views on - Because of the irrigation development the 182
rural populations purchasing power has increased
5.51 Respondents views on - Before 20 years we were selling local 183
made washing powder and such other goods in our rural markets
5.52 Respondents views on - There is a regular and uninterrupted supply 184
of Hindustan Unilever's Products
5.53 Respondents views on - Due to advertisements on the television 185
sets we get to know the latest products and their uses
5.54 Respondents views on - Due to development of all weather roads 187
now many vendors put up their stalls in the weekly market in the
nearby town
5.55 Respondents views on - The colorful advertisements depicting the 188
uses of the new products, help the consumers to understand the uses
those products
Figure Details Page
No. No.

5.56 Respondents views on - HUL products advertisement is in local 189

language and it is catchy
5.57 Respondents views on - Since the last two decade rural 190
population’s budget for bathing soaps, washing soaps, washing
powders and shampoos have sizably increased
5.58 Respondents views on - Now the traders need not go to the nearby 191
town for getting branded goods of daily use
5.59 Respondents views on - Rural people prefer to purchase sachet 193
packets as they find it more convenient
5.60 Respondents views on - Sachet packing is preferred by the 194
consumers as it is cheaper
5.61 Respondents views on - Now obtaining loan from the bank in the 195
vicinity is hassle free
5.62 Respondents views on - Hindustan Unilever helps the traders in 196
promoting their products in their market area
5.63 Respondents views on - Hindustan Unilever participates in the 198
village fair by putting up their stall
5.64 Respondents views on - HUL’s bathing soaps, washing soaps, 199
washing powders and shampoo products are fast moving
5.65 Respondents views on - HUL offers attractive festival discounts to 200
the traders
5.66 Respondents views on - Consumers prefer HUL products because 201
HUL is the oldest Multinational company in India and has earned a
good reputation in the market
5.67 Respondents views on - HUL products’ quality is very good and 202
hence consumers prefer them
5.68 Respondents views on - Company’s name satisfies the rural 203
consumers who think that it is an Indian company
 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
 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

1
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 8.91 6.69 5.6* 6.6* 7.2*
(2004-05 prices) (Factor Cost)
Industrial growth GDP (2004- 7.55 7.81 5.00* 5.9* 7.3*
05 prices)
Agriculture & Allied Sector 6.60 5.02 1.5* 4.2* -0.2*
(2004-05 prices)
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.

2
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.

3
 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.

4
 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
5
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

6
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

7
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

8
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.

9
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.

10
 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
11
 “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
12
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
13
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

14
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

15
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

16
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
17
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
100
100
90
80
70
60
50
40
30 20
12.3 12.1 14.8 18.92
20 9 10.4
10
0
2009 2010 2011 2012 2013 2015 2018E 2025E

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
18
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.
19
  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.

20
  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.

21
 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:

22
 Fig.1.2
All India FMCG – Value Growth in terms of percentage

58.6 56.2 58.1

60
49.48

50

40

30
19.1
14.5
20 11.5
12.4

10

0
Metros Middle India ROU Rural

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)

45.7
46.9
50
45 39

40 35.1

35
30
25 15.9
11.2
20 9.7
10.2
15
10
5
0
All India Metro Aindia Town All Inida Rest Aindia Rural
Class 1 of Urban

2011 over 2009 2011Q4 over Q1

(Source: Nielsen)

23
 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

24
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
25
 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

26
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.

27
 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
28
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.

29
 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.

30
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.
31
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.

32
 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
33
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

34
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

35
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.

36
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

37
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.

38
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

39
 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. Name of Names of the Population as Total Literacy
No. Taluka villages per 2011 census
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.

40
 Table 2.2: Village wise Number of Identified respondents
Sr. Name of Names of the No. of Total Age group
No. Taluka villages Respondents
Male Female Between Over
15-40 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:
41
 Table 2.3: Village wise identified businessmen respondents
Sr. Name of Names of Medical Kirana General
No. Taluka the villages shop shop stores
owner Owners
1 Bhor Velu 1 1 1
Kelawade 1 1 1
2 Daund Pargaon 1 1 1
Kedgaon 2 1 1
Station
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 1 1 1
Supe
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.

42
 Table 2.4: Total land holding and dry and irrigated land of the identified
Talukas
Area in Ha.
Sr. Name of Taluka Total gross Irrigated
No. cultivated area 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

43
 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

44
 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)
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
Ai Oi1 Oi2 …… Oij …… Oin (Ai)
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
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.

45
 Where, Oij is observed frequency corresponding to (i, j)th cell.
m n
 N   Oij = Total frequency i = 1, 2, ----- m and
i21 i21

j = 1, 2, ----- n
m
 Ri = (Ai) = O j21
ij = Total observed frequency in the ith row.

m
 Cj = (Bj) = O
i 1
ij = 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,
Ri x C j
 Eij  , for i = 1, 2, ---- m
N
 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.

O  Eij 
2
m n
 
ij
 X 2
cal
i 1 j 1 Eij

m n O 2 
      N
ij

i 1 j 1  Eij 

Step 4:
 Compare the calculated and critical value (table value) of test statistic.


2
Xcriticalvalue  X(m
2
1) x(n1),

If Xcriticalvalue  X(m1) x(n1), then reject Ho at  % otherwise accept

2 2


it.

46
 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.

47
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

48
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.

49
 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

50
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
51
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.
52
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.
53
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.
54
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.
55
 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

25
2012, 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.
56
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”.
57
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

58
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”
59
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.

60
 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.

61
 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.

62
 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.
63
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
64
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

36
1. Prof. Dr. A. Vinayagamoorthy Ph.D., D. Kamatchi (2014) 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
65
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.

37
2. Mohd. Azhar Suharwardi , Iqbal Ahmad Hakim (2014) 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.

38
3. Pooja Rani, Neha Shrivastav (2004) 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)
66
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.
67
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
68
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
69
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.
70
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.
71
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.

53
18. Khatsuriya. K., (2012) : 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
72
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.
73
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.
74
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.
75
 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
76
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.
77
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.

74
39. Sharma P.(2011) , 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.
78
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.
79
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.
80
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.
81
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.
82
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.
83
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.
84
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.
85
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.
86
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.
87
 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

88
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.

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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.

90
 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.
91
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

92
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

93
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.

94
 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

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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.

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 Table 4.1: Administrative Sub-Division wise Tahsils of Pune District with
Number of villages
(Basis 2011 Census)
Sr. Name of the sub Division Tahsil Number of No. of Towns
No. villages
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.

97
 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

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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 %

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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)

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 Table 4.5: Major crops and cash crops are cultivated in Pune district.

Types Names Cropping Period Market (District,

in Months State, Export)

Major Crops Ground nut, Tur, Soya, June-July District and State
(Irrigated) Corn
Wheat, gram

Major Crops (Non - Kharif--Bajra, Tur, Mug, June -July District and State
Irrigated) Udid, Sunflower Sept- Oct
Rabi----Jowar

Major Cash Crops Sugarcane June-July District(sugar

Sept-Oct. factories)
Jan-Feb

Major Plantations Mango, Chickoo, June- July District, State and

Pomegranate, Throughout the Exports
Anjir, citrus fruits year
Rose flowers, shevanti
etc.

(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.

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 Table 4.6: Details of population of each Taluka of the Pune District

Sr. Name of the No. of Population as per 2011 census

No. Taluka villages 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. Name of the Sub Division Sr. Name of the Sub
No. No. 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

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 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.

103
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.

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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
105
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

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 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

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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 2,102.68 2,153.25 2,599.23 3,314.35 3,555.32 3,842.86

tax
Segment wise sales in %
Soaps & 48 46 48 49 49 49
Detergents
Personal 30 32 31 31 29 29
products
Beverages 20 20 19 18 18 18
and
packaged
foods
(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 .

108
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

31240
28106
35000 26233
21980

30000
21976
17605

19480

25000
14825
12460
11980

20000
15000
10000
5000
0
2005 2007 2010 2012 2014

Gross Sales
(Source: HUL Annual Report 2014-15)

109
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.
110
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.

111
 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.

112
 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:
113
 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

176

224

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

114
 2147
a) No. of persons in an average village family =  5*
400
1128
b) No. of males in an average village family =  3*
400
1019
c) No. of fameless in an average village family =  2*
400
*(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

123

277

Earning Members Non Earning Members

115
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 Upto 12th Graduate Post Total
Std. Std. graduate
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

180 162

160
131
140
120
100
72
80
60
40 18 17
20
0
Illiterate Upto 7th Upto 12th Graduate Post
Std. Std. graduate

Respondents

116
 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

118

282

Joint families Nuclear families

117
 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

Less than 7 Over 8 but Over 12 Total

less than 11
360 21 19 400

Graphic presentation
Fig.5.5
Size wise composition of the respondents’ families

400 360

350

300

250

200

150

100
21 19
50

0
Less than 7 Over 8 but less Over 12
than 11

Respondents

118
 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 Self Service Combined Retired Total
allied to employed activities from
agriculture 1 to 4
158 52 38 62 23 67 400

Graphic presentation
Fig. 5.6
Occupation wise classification of the respondent families
158
160

140

120

100

80 67
62
52
60
38
40 23

20

0
Agriculture Self Combined
employed activities
from 1 to 4

Respondents

119
 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 Between Between Between Rs.5 Over Rs.10 Total
Rs. 1.00 Rs.1 to 2.5 Rs.2.5 lakhs to lakhs to R.10 lakhs
lakhs lakhs 5 lakhs lakhs
65 228 68 27 12 400

Graphic presentation:
Fig. 5.7
Family income wise classification of the respondent families

250 228

200

150

100
65 68

50 27
12

0
Less than Rs. Between Between Between Over Rs.10
1.00 lakhs Rs.1 to 2.5 Rs.2.5 lakhs Rs.5 lakhs to lakhs
lakhs to 5 lakhs R.10 lakhs

Respondents

120
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. Factors Not at all Less Neutral Important Most Total

important important important
No.
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 29 68 206 82 15 400
from friends/
relatives
8 Availability of 89 121 88 59 43 400
gifts

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 /

121
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 Nearby Visiting During weekly Total
store town vendors bazzar at the
nearby town
168 62 105 65 400

Graphic presentation
Fig. 5.8
Source of procurement of the requirements

168
180

160

140

120 105

100

80 62 65

60

40

20

0
Local provision Nearby town visiting vendors Weekly bazzar
store

Respondents

122
 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.

123
 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 % to Radio % to News Paper % Wall painting % Total no. of
No. of total No. of Total No. of total No. of total Respondents
Respondents Respondents Respondents Respondents

Lux/
165 41.25 45 11.25 58 14.50 132 33.00 400
Lifeboy
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 + /
178 44.50 79 19.50 68 17.00 75 19.00 400
Sunsilk
Taj Mahal
Tea/Taaza 88 22.00 26 6.50 124 31.00 162 40.5 400

124
 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 Rarely Can’t Mostly Always Total

available available say available available
Lux/Lifeboy 0 18 50 132 200 400
Rin/Wheel 0 15 35 142 208 400
Pepsodent/ 0 20 250 95 35 400
Close up
Clinic + / 65 35 28 240 32 400
Sunsilk
Taj Mahal 83 64 226 15 12 400
Tea/Taaza

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

125
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 Total
disagree
84 142 117 40 17 400

126
 Fig. 5.9
Respondent’s views on: Since last ten years or so we get standard company’s
products in our village”

160 142

140 117
120

100 84

80

60 40
40
17
20

0
Strongly Agree Neutral Disagree Strongly
agree 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.

127
Respondent’s responses were as under

Strongly Agree Neutral Disagree Strongly Total

agree disagree
25 186 88 62 39 400

Fig. 5.10
Respondent’s views on: –“We get quality products since couple of years.”

186
200
180
160
140
120
100 88
80 62
60 39
40 25
20
0
Strongly Agree Neutral Disagree Strongly
agree 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.

128
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”

180
166
160
140
113
120
100
80
49
60 44
40 28
20
0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

129
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

130
 Fig. 5.12
Respondent’s views on: – “Now we see standard company’s delivery vans visit
our village”

152
160 138
140

120 102
100

80

60
42 34
40

20

0
Strongly Agree Neutral Disagree Strongly
agree 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

131
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 Neutral Disagree Strongly Total

agree disagree
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.”

180 168
152
160
140
120
100
80 65
60
40
10 5
20
0
Strongly Agree Neutral Disagree Strongly
agree disagree

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.

132
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 Neutral Disagree Strongly Total
agree disagree
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.”

180
172 164
160
140
120
100
80
60 45
40
10 9
20
0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

133
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 Neutral Disagree Strongly Total
agree disagree
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.”

200 182
180
160 142
140
120
100
80
60 36
40 26 14
20
0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

134
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 Neutral Disagree Strongly Total

agree disagree
155 145 35 52 13 400

135
 Fig. 5.16
Respondent’s views on: – “Since the last decade our family budget for toiletries
has sizably increased”.

155 145
160
140

120
100

80
52
60
35
40
13
20
0
Strongly Agree Neutral Disagree Strongly
agree disagree

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.

136
Respondent’s responses were as under
Strongly Agree Neutral Disagree Strongly Total
agree disagree
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”

180 168
160 142
140
120
100
80 65
60
40 23 12
20
0
Strongly Agree Neutral Disagree Strongly
agree disagree

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.

137
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 Neutral Disagree Strongly Total
agree disagree
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
200
180
160 134
140
120
100
80
55
60
40
8
20 7
0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

138
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 Neutral Disagree Strongly Total

agree disagree
125 105 132 40 22 400

139
 Fig. 5.19
Respondent’s views on: – “My son studying in college insists on specific
company’s products.”

140 125 132

120 105

100

80

60
40
40 22
20

0
Strongly Agree Neutral Disagree Strongly
agree 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

140
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.”

200 185
180
160
140 115
120
100
80
60 45 35
40 20
20
0
Strongly Agree Neutral Disagree Strongly
agree 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.

141
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 Neutral Disagree Strongly Total

agree disagree
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”.

140
125
120 110 105

100

80

60
40
30
40

20

0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

142
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

143
 Fig. 5.22
Respondent’s views on: – “I prefer small packages because my purse does not
permit me to buy in bulk”

180 165
160
140 125
120
100

80 65
60
40 30
15
20

0
Strongly Agree Neutral Disagree Strongly
agree disagree

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.

144
 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.”

155
160
135
140

120

100

80
52
60
40
40 18
20

0
Strongly Agree Neutral Disagree Strongly
agree 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

145
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 Neutral Disagree Strongly Total

agree disagree
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
180
160
140
108
120
100
80 65
60 35
40
20
20
0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

146
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.”

180
176 160
160
140
120
100
80
60
40
25 24
15
20
0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

147
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

148
 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
180
160
140 124
120
100
80 65
60
40 24
11
20
0
Strongly Agree Neutral Disagree Strongly
agree 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.
149
 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.”

180 165
160 145
140
120
100
80
60
60
40
18 12
20
0
Strongly Agree Neutral Disagree Strongly
agree disagree

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.

150
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.”

120 110
105
100 85
80
80

60

40
20
20

0
Strongly Agree Neutral Disagree Strongly
agree 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
151
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

152
 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
160

140

120

100

80
60
60

40
18 12
20

0
Strongly Agree Neutral Disagree Strongly
agree 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.

153
 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.”

180 162
160
140
120
100 88
78
80
60 42
30
40
20
0
Strongly Agree Neutral Disagree Strongly
agree 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.

154
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.”

160 142
140

120 108
100

80 65 60
60

40 25

20

0
Strongly Agree Neutral Disagree Strongly
agree 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

155
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.”

180 162
160
138
140
120
100
80 65
60
40 25
10
20
0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

156
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

157
 Fig. 5.33

Respondent’s views on: – “Because of my daughter is now studying in college,

she needs use of cosmetics of good quality.”

167
180
160
140
120 102
98
100
80
60
40 23
10
20
0
Strongly Agree Neutral Disagree Strongly
agree 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

158
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.”

160 142
140

120
98
100
80
80
56
60

40 24

20

0
Strongly Agree Neutral Disagree Strongly
agree 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.

159
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.”

180
168

160 142
140
120
100
80
60 40
35
40 15
20
0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

160
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

161
 Fig. 5.36
Respondent’s views on: – “Unless and until I am satisfied about the product
expectations I do not buy it.”

160
152

140

120

100
78 80
80
56
60
34
40

20

0
Strongly Agree Neutral Disagree Strongly
agree disagree

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

162
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
180
160
140
120
100
68 80
80 60
60
40 20
20
0
Strongly Agree Neutral Disagree Strongly
agree 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.

163
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”

140
125
120 102
98
100

80 65
60

40
10
20

0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

164
 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

165
 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.”

140
140

120

100
80 85
75
80

60

40 20
20

0
Strongly Agree Neutral Disagree Strongly
agree disagree

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.

166
 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”

180
170

160
140
120
100 80 80
80
60 38 32
40
20
0
Strongly Agree Neutral Disagree Strongly
agree 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.

167
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”

290
300

250

200

150

100 80

50 20
10
0
0
Strongly Agree Neutral Disagree Strongly
agree disagree

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
168
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”

200 188
180
160
132
140
120
100
80
60 40 32
40
8
20
0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

169
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”

180 165
160
128
140
120
100
80
57
60 45
40
5
20
0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

170
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

171
 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”

155
160
135
140

120

100

80 65
60
35
40
10
20

0
Strongly Agree Neutral Disagree Strongly
agree disagree

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.
172
 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”

120 108
102
100 90

80
65
60
35
40

20

0
Strongly Agree Neutral Disagree Strongly
agree 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”

173
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”

180 165
160
135
140
120
100
80
60 45
40 30 25

20
0
Strongly Agree Neutral Disagree Strongly
agree disagree

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

174
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
180

160 140
140
120
100
80
60 42
40 23
15
20
0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

175
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”

160 142
140

120

100 88
80
80 65
60

40 25

20

0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

176
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.

177
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 Upto 12th Graduate Post Total

Std. Std. graduate
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.

178
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 Company stockiest Any other

the nearby town delivers the stocks
Lux/ Lifeboy * 50
Rin/Wheel 50
Pepsodent/ 50
Close up
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.

179
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 Rarely Can’t Mostly Always
available available say available available
Lux/ Lifeboy 0 
Rin/Wheel 0 
Pepsodent/Close up  0
Clinic +  0
/ Sunsilk 
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.

180
 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”

30
26
25

20

15

10 8 8
6
5 2

0
Strongly Agree Neutral Disagree Strongly
agree disagree

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.

181
 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”

25 22

20

15
12

10
6
5
4 2

0
Strongly Agree Neutral Disagree Strongly
agree 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.

182
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”

28
30

25

20
14
15

10

5 3 3 2

0
Strongly Agree Neutral Disagree Strongly
agree 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
183
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”

40 36
35

30

25

20

15
9
10

5 3 1 1

0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

184
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”

29
30

25

20

15

10 8
6 5
5 2

0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

185
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

186
 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”

30
28

25

20

15 12

10
5 3
5
2
0
Strongly Agree Neutral Disagree Strongly
agree disagree

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.
187
 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”

25 23

20

15 13

10
5 5
5
4

0
Strongly Agree Neutral Disagree Strongly
agree disagree

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
188
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 Total
disagree
16 28 2 4 0 50

Fig. 5.56
Respondent’s views on: – “HUL products advertisement is in local language
and it is catchy”
28
30

25

20
16
15

10
4
5 2 0
0
Strongly Agree Neutral Disagree Strongly
agree disagree

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.

189
 Respondent’s responses were as under
Strongly agree Agree Neutral Disagree Strongly Total
disagree
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”

29
30

25

20
15
15

10

4
5 1
1
0
Strongly Agree Neutral Disagree Strongly
agree 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.

190
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”

25
25

20
16
15

10

5 4 3 2

0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

191
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

192
 Fig. 5.59
Respondent’s views on: – “Rural people prefer to purchase sachet packets as
they find it more convenient”

30
30

25

20
16
15

10

5 3 1
0
0
Strongly Agree Neutral Disagree Strongly
agree disagree

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

193
 Fig. 5.60
Respondent’s views on: – “Sachet packing is preferred by the consumers as it is
cheaper.”

35 32

30

25

20
18

15

10

5 0
0 0
0
Strongly Agree Neutral Disagree Strongly
agree disagree

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.

194
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”

20
20
18
16
14
12 10
10 8
7
8 5
6
4
2
0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

Interpretation

56 per cent of the respondents reported that obtaining the bank loan is now
hassle free. 20 per cent respondents preferred to be neutral. 24 percent respondents
disagreed with the statement. On the whole majority of the respondents are in
agreement.

195
Statement 14 – “Hindustan Unilever helps the traders in promoting their
products in their market area”

Rationale: Usually it is a policy of the marketing organization to provide assistance

to the traders at the grass root level for promoting the company‟s products.
Particularly when the products are newly introduced in the market the marketing
organizations provide such assistance, or whenever there is a campaign for a
particular product, assistance is given to the traders. The researcher wanted to have
feedback on this score and hence the statement is included in the questionnaire.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total
8 26 4 5 7 50

Fig. 5.62
Respondent’s views on: – “Hindustan Unilever helps the traders in promoting
their products in their market area”

30 26
25

20

15

10 8 7
5
4
5

0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

196
Interpretation
68 per cent of the respondent shop keepers responded positively asserted that
the HUL provides assistance for promoting their products. Since the majority of the
respondents had agreed with the statement the statement holds good. 8 per cent
preferred to be neutral while 24 per cent respondents either disagreed or strongly
disagreed.
Statement 15 – “Hindustan Unilever participates in the village fair by putting up
their stall”

Rationale: In the villages there are annual fairs wherein the villagers come together
for worship their god/goddess. Such fairs are usually after the harvesting of the
agricultural produce so that the agriculturists have the liquid purchasing power. Along
with the fair there are number of stalls put by the vendors wherein a variety of
products are put on sale. Villagers from the nearby villages also come to participate in
the village fair. HUL takes up this opportunity to campaign their products for which
they put up their stalls and advertise their products.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total
16 28 4 1 1 50

197
 Fig. 5.63
Respondent’s views on: – “Hindustan Unilever participates in the village fair by
putting up their stall”

30 28

25

20
16
15

10

5
4
1 1

0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

Interpretation

88 per cent of the respondent shop keepers responded positively asserted that
the HUL participates in the village fairs by putting up their stalls and carry out
advertising campaign. Since the overwhelming majority of the respondents were
positive the statement holds good. 8 per cent of the respondents remained neutral and
4 per cent either disagreed or strongly disagreed.

Statement 16 – “HUL’s bathing soaps, washing soaps, washing powders and

shampoo products are fast moving”

Rationale: HUL has a wide range of products. However, of all these products do not
have same movement. Bathing soaps, washing soaps, washing powders and shampoos
are the products which are frequently required by the villagers and therefore, those are
fast moving. In order to have confirmation of the grass root reality this statement was
included in the questionnaire.

198
Respondent’s responses were as under
Strongly agree Agree Neutral Disagree Strongly disagree Total
18 30 1 1 0 50

Fig. 5.64
Respondent’s views on: “HUL’s bathing soaps, washing soaps, washing powders
and shampoo products are fast moving”

30
30

25

20 18

15

10

5
1 1 0
0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

Interpretation

96 per cent of the respondent shop keepers responded positively and asserted
that the HUL products mentioned in the statement were fast moving. This was mainly
those were normally daily required items and hence consumption was more. Since
the overwhelming majority of the respondents were positive the statement holds good.
Only 2 per cent were neutral while 2 per cent were disagreed.

Statement 17 – “HUL offers attractive festival discounts to the traders”

Rationale: Every marketing company adopts certain strategies for boosting their
sales. In case of HUL their products particularly bathing soaps, shampoos etc. have a
great demand during the festive season. Therefore, in order to boost the sales of
certain products and in order to motivate the village shop keepers HUL offers

199
attractive festival discounts to the traders, which helps them achieve their sales
targets.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total
8 30 6 4 2 50

Fig. 5.65
Respondent’s views on: “HUL offers attractive festival discounts to the traders”

30
30

25

20

15

10 8
6
4
5 2

0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

Interpretation

The data revealed that 76 % of the respondents had affirmed the statement. As
they form overwhelming majority the statement holds good. 12 % of the respondents
preferred to be neutral and 12 % of the respondents disagreed or strongly disagreed.

200
Statement 18 – “Consumers prefer HUL products because HUL is the oldest
Multinational Company in India and has earned a good reputation in the
market”

Rationale: Hindustan Unilever Ltd. is an old marketing company operating in India

for a pretty long time. Therefore, its name is quite familiar to the rural masses also.
The company enjoys good reputation in the market. This is why the consumers prefer
to buy HUL products as they trust about the product quality.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total
12 30 2 5 1 50

Fig. 5.66
Respondent’s views on: “Consumers prefer HUL products because HUL is the
oldest Multinational Company in India and has earned a good reputation in the
market”

30
30

25

20

15 12

10
5
5 1
2
0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

Interpretation
84 % of the respondents vouched for the statement affirmatively. As the
majority of the respondents were confirming the position, the statement holds good.
4 % remained neutral and 12 % respondents disagreed or strongly disagreed.

201
Statement 19 – “HUL products’ quality is very good and hence consumers prefer
them”

Rationale: There are certain companies which always follow business ethics e.g.
Godrej, ACC etc. HUL is also a company in the same category. The company‟s pay
highest regard for ensuring the quality of the product and therefore, it has established
its reputation. We have already seen in the analysis of the data that the consumers
prefer to have good quality products and value this aspect while deciding the purchase
of any item. The products of HUL are time tested about their quality. The researcher
wanted to have feedback on this score from the respondents and hence inclusion.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total
14 28 4 3 1 50

Fig. 5.67
Respondent’s views on: “HUL products’ quality is very good and hence
consumers prefer them”

30
28

25

20

14
15

10

5
4 3
1

0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

202
Interpretation
84 per cent of the respondents vouched for the statement affirmatively. As the
majority of the respondents are confirming the position, the statement holds good. 8
per cent of the respondents remained neutral and 8 % either disagreed or strongly
disagreed.

Statement 20 – “Company’s name satisfies the rural consumers who think that it
is an Indian company”

Rationale: The villagers are moderately educated and they carry an impression that it
is an Indian company as the name of the company is “Hindustan Unilever Ltd. People
are misled by the usage of the word Hindustan. Actually it is a multinational
company. Rural masses therefore feel that they are buying the goods from the Indian
company but actually it is no so. The company reaps the fruits of this misconception
by the rural masses. The statement was included just to understand the mindset of the
village shop keepers.

Respondent’s responses were as under

Strongly agree Agree Neutral Disagree Strongly disagree Total
12 27 6 3 2 50
Fig. 5.68
Respondent’s views on: “Company’s name satisfies the rural consumers who
think that it is an Indian company”

30 27

25

20

15 12

10
6
5 3 2

0
Strongly Agree Neutral Disagree Strongly
agree disagree

Respondents

203
Interpretation
The data revealed that 78 % of the village shop keepers agreed with the
statement and therefore being the majority respondents the statement holds good.
12 % of the respondents remained neutral and 10 % either disagreed or strongly
disagreed.

5.4 HYPOTHESES TESTING

The hypotheses have been tested using Chi-square Statistical Test and the
same is presented hereunder: (System generated tables are not numbered)

1) Hypothesis for the villagers

First Hypothesis:

H01: Changes in technology and government‟s policies of liberalization,

privatization and globalization the Indian rural markets have no significant
effect on fast moving consumer goods.

Vs
H11: 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.

Analysis:-

Question Strongly Agree Neutral Disagree Strongly Total

No Agree Disagree
1 84 142 117 40 17 400
2 25 186 88 62 39 400
3 113 166 28 44 49 400
4 152 138 34 34 42 400
5 168 152 65 10 5 400
6 172 164 45 10 9 400

204
 7 142 182 26 14 36 400
8 155 145 35 52 13 400
9 168 142 55 23 12 400
10 196 134 55 7 8 400
11 125 105 108 40 22 400
12 185 115 45 35 20 400
13 110 105 115 40 30 400
14 165 125 30 65 15 400
15 135 155 40 52 18 400
16 172 108 20 65 35 400
17 15 25 176 24 160 400
18 176 124 65 24 11 400
19 145 165 60 18 12 400
20 105 85 110 80 20 400
Total 2708 2663 1317 739 573 8000

Expected
Observation Observed Freq. Freq. Oij^2/eij
Oij eij
1 84 135.4 52.11225997
2 25 135.4 4.615952733
3 113 135.4 94.30576071
4 152 135.4 170.6351551
5 168 135.4 208.4490399
6 172 135.4 218.493353
7 142 135.4 148.9217134
8 155 135.4 177.437223
9 168 135.4 208.4490399
10 196 135.4 283.7223043
11 125 135.4 115.3988183
12 185 135.4 252.7695716
13 110 135.4 89.3648449
14 165 135.4 201.070901
15 135 135.4 134.6011817

205
16 172 135.4 218.493353
17 15 135.4 1.661742984
18 176 135.4 228.774003
19 145 135.4 155.2806499
20 105 135.4 81.4254062
21 142 133.15 151.4382276
22 186 133.15 259.8272625
23 166 133.15 206.9545625
24 138 133.15 143.0266617
25 152 133.15 173.5185881
26 164 133.15 201.9977469
27 182 133.15 248.7720616
28 145 133.15 157.9046189
29 142 133.15 151.4382276
30 134 133.15 134.8554262
31 105 133.15 82.80135186
32 115 133.15 99.3240706
33 105 133.15 82.80135186
34 125 133.15 117.3488547
35 155 133.15 180.4355989
36 108 133.15 87.60045062
37 25 133.15 4.693954187
38 124 133.15 115.4787833
39 165 133.15 204.4686444
40 85 133.15 54.2621104
41 117 65.85 207.881549
42 88 65.85 117.6006074
43 28 65.85 11.90584662
44 34 65.85 17.55504935
45 65 65.85 64.16097191
46 45 65.85 30.75170843
47 26 65.85 10.2657555
48 35 65.85 18.60288535
49 55 65.85 45.93773728
50 55 65.85 45.93773728

206
51 108 65.85 177.1298405
52 45 65.85 30.75170843
53 115 65.85 200.8352316
54 30 65.85 13.66742597
55 40 65.85 24.29764617
56 20 65.85 6.074411541
57 176 65.85 470.4024298
58 65 65.85 64.16097191
59 60 65.85 54.66970387
60 110 65.85 183.7509491
61 40 36.95 43.30175913
62 62 36.95 104.0324763
63 44 36.95 52.39512855
64 34 36.95 31.28552097
65 10 36.95 2.706359946
66 10 36.95 2.706359946
67 14 36.95 5.304465494
68 52 36.95 73.17997294
69 23 36.95 14.31664411
70 7 36.95 1.326116373
71 40 36.95 43.30175913
72 35 36.95 33.15290934
73 40 36.95 43.30175913
74 65 36.95 114.3437077
75 52 36.95 73.17997294
76 65 36.95 114.3437077
77 24 36.95 15.58863329
78 24 36.95 15.58863329
79 18 36.95 8.768606225
80 80 36.95 173.2070365
81 17 28.65 10.08726003
82 39 28.65 53.08900524
83 49 28.65 83.80453752
84 42 28.65 61.57068063
85 5 28.65 0.872600349

207
 86 9 28.65 2.827225131
87 36 28.65 45.23560209
88 13 28.65 5.89877836
89 12 28.65 5.02617801
90 8 28.65 2.233856894
91 22 28.65 16.89354276
92 20 28.65 13.96160558
93 30 28.65 31.41361257
94 15 28.65 7.853403141
95 18 28.65 11.30890052
96 35 28.65 42.7574171
97 160 28.65 893.5427574
98 11 28.65 4.223385689
99 12 28.65 5.02617801
100 20 28.65 13.96160558
Total 8000 8000 9978.190658

 Value of test Statistic:-

Chi-square calculated:- 1978.19

Chi-square table value:- 97.35

 Comparison:-
Here, Chi-square calculated > Chi-square table value
 Reject H01 at 5% Level of significance.

 Conclusion:-

Changes in technology and government‟s policies of liberalization,

privatization and globalization the Indian rural markets have significant effect
on fast moving consumer goods.

208
Second Hypothesis

H02: Rural markets are not growing fast for the fast moving consumer goods.
Vs
H12: Rural markets are growing fast for the fast moving consumer goods.
Analysis

Question Strongly Agree Neutral Disagree Strongly Total

No Agree Disagree
1 160 150 60 18 12 400
2 88 162 78 42 30 400
3 108 142 65 60 25 400
4 138 162 65 25 10 400
5 98 167 102 23 10 400
6 98 142 56 80 24 400
7 142 168 35 40 15 400
8 78 152 56 80 34 400
9 172 68 80 60 20 400
10 98 102 125 65 10 400
Total 1180 1415 722 493 190 4000

Observed Freq. Expected Freq.

Observation Oij^2/eij
Oij eij
1 160 118 216.9491525
2 88 118 65.62711864
3 108 118 98.84745763
4 138 118 161.3898305
5 98 118 81.38983051
6 98 118 81.38983051
7 142 118 170.8813559
8 78 118 51.55932203
9 172 118 250.7118644
10 98 118 81.38983051
11 150 141.5 159.0106007
12 162 141.5 185.4699647

209
13 142 141.5 142.5017668
14 162 141.5 185.4699647
15 167 141.5 197.0954064
16 142 141.5 142.5017668
17 168 141.5 199.4628975
18 152 141.5 163.2791519
19 68 141.5 32.67844523
20 102 141.5 73.52650177
21 60 72.2 49.86149584
22 78 72.2 84.26592798
23 65 72.2 58.51800554
24 65 72.2 58.51800554
25 102 72.2 144.099723
26 56 72.2 43.43490305
27 35 72.2 16.966759
28 56 72.2 43.43490305
29 80 72.2 88.64265928
30 125 72.2 216.4127424
31 18 49.3 6.572008114
32 42 49.3 35.78093306
33 60 49.3 73.02231237
34 25 49.3 12.67748479
35 23 49.3 10.73022312
36 80 49.3 129.8174442
37 40 49.3 32.45436105
38 80 49.3 129.8174442
39 60 49.3 73.02231237
40 65 49.3 85.69979716
41 12 19 7.578947368
42 30 19 47.36842105
43 25 19 32.89473684
44 10 19 5.263157895
45 10 19 5.263157895
46 24 19 30.31578947
47 15 19 11.84210526

210
 48 34 19 60.84210526
49 20 19 21.05263158
50 10 19 5.263157895
Total 4000 4000 4362.565715

 Value of test Statistic:-

Chi-square calculated:- 362.56

Chi-square table value:- 50.99

 Comparison:
Here, Chi-square calculated > Chi-square table value
 Reject H02 at 5% Level of significance.

 Conclusion Growing tendency of rural markets is associated with the fast

moving consumer goods.

Third Hypothesis

H03: The developments in the field of education, digital media, communication,

irrigation and other improvements in agriculture, have no association with the
growth of the marketing of FMCG in rural markets.

Vs

H13: The developments in the field of education, digital media, communication,

irrigation and other improvements in agriculture, have great association with
the growth of the marketing of FMCG in rural markets.

211
Analysis
Question Strongly Agree Neutral Disagree Strongly Total
No Agree Disagree
1 80 140 85 75 20 400
2 80 170 80 38 32 400
3 0 10 290 80 20 400
4 188 132 40 32 8 400
5 165 128 45 57 5 400
6 155 135 65 35 10 400
7 102 108 90 65 35 400
8 165 135 30 45 25 400
9 180 140 15 42 23 400
10 88 142 80 65 25 400
Total 1203 1240 820 534 203 4000

Observation Observed Freq. Expected Oij^2/eij

Freq.
Oij eij
1 80 120.3 53.2003325
2 80 120.3 53.2003325
3 0 120.3 0
4 188 120.3 293.7988362
5 165 120.3 226.3092269
6 155 120.3 199.7090607
7 102 120.3 86.48379052
8 165 120.3 226.3092269
9 180 120.3 269.3266833
10 88 120.3 64.37240233
11 140 124 158.0645161
12 170 124 233.0645161
13 10 124 0.806451613
14 132 124 140.516129
15 128 124 132.1290323
16 135 124 146.9758065
17 108 124 94.06451613

212
 18 135 124 146.9758065
19 140 124 158.0645161
20 142 124 162.6129032
21 85 82 88.1097561
22 80 82 78.04878049
23 290 82 1025.609756
24 40 82 19.51219512
25 45 82 24.69512195
26 65 82 51.52439024
27 90 82 98.7804878
28 30 82 10.97560976
29 15 82 2.743902439
30 80 82 78.04878049
31 75 53.4 105.3370787
32 38 53.4 27.0411985
33 80 53.4 119.8501873
34 32 53.4 19.17602996
35 57 53.4 60.84269663
36 35 53.4 22.94007491
37 65 53.4 79.11985019
38 45 53.4 37.92134831
39 42 53.4 33.03370787
40 65 53.4 79.11985019
41 20 20.3 19.7044335
42 32 20.3 50.44334975
43 20 20.3 19.7044335
44 8 20.3 3.15270936
45 5 20.3 1.231527094
46 10 20.3 4.926108374
47 35 20.3 60.34482759
48 25 20.3 30.78817734
49 23 20.3 26.0591133
50 25 20.3 30.78817734
Total 4000 4000 5155.557746

213
  Value of test Statistic:-

Chi-square calculated:- 1155.55

Chi-square table value:- 50.99

 Comparison:-

Here, Chi-square calculated > Chi-square table value

 Reject H03 at 5% Level of significance.
 Conclusion

The developments in the field of education, digital media, communication,

irrigation and other improvements in agriculture, have great association with
the growth of the marketing of FMCG in rural markets.
Observed Freq. Expected Freq.
Oij^2/eij
Oij eij

2) Hypothesis for shopkeeper

H01: Changes in technology and government‟s policies of liberalization,

privatization and globalization the Indian rural markets have no significant
effect on fast moving consumer goods.

Vs

H11: 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.

214
Analysis:-

Question Strongly Agree Neutral Disagree Strongly Total

No Agree Disagree
1 8 26 6 8 2 50
2 12 22 8 6 2 50
3 14 28 3 3 2 50
4 9 36 3 1 1 50
5 8 29 6 5 2 50
6 12 28 2 5 3 50
7 13 23 4 5 5 50
8 16 28 2 4 0 50
9 15 29 4 1 1 50
10 16 25 4 3 2 50
11 16 30 0 3 1 50
12 18 32 0 0 0 50
13 8 20 10 7 5 50
14 8 26 4 5 7 50
15 16 28 4 1 1 50
16 18 30 1 1 0 50
17 8 30 6 4 2 50
18 12 30 2 5 1 50
19 14 28 4 3 1 50
20 12 27 6 3 2 50
Total 253 555 79 73 40 1000

Observation Observed Freq. Expected Freq. Oij^2/eij

Oij eij
1 8 12.65 5.059289
2 12 12.65 11.3834
3 14 12.65 15.49407
4 9 12.65 6.403162
5 8 12.65 5.059289
6 12 12.65 11.3834

215
7 13 12.65 13.35968
8 16 12.65 20.23715
9 15 12.65 17.78656
10 16 12.65 20.23715
11 16 12.65 20.23715
12 18 12.65 25.61265
13 8 12.65 5.059289
14 8 12.65 5.059289
15 16 12.65 20.23715
16 18 12.65 25.61265
17 8 12.65 5.059289
18 12 12.65 11.3834
19 14 12.65 15.49407
20 12 12.65 11.3834
21 26 27.75 24.36036
22 22 27.75 17.44144
23 28 27.75 28.25225
24 36 27.75 46.7027
25 29 27.75 30.30631
26 28 27.75 28.25225
27 23 27.75 19.06306
28 28 27.75 28.25225
29 29 27.75 30.30631
30 25 27.75 22.52252
31 30 27.75 32.43243
32 32 27.75 36.9009
33 20 27.75 14.41441
34 26 27.75 24.36036
35 28 27.75 28.25225
36 30 27.75 32.43243
37 30 27.75 32.43243
38 30 27.75 32.43243
39 28 27.75 28.25225
40 27 27.75 26.27027
41 6 3.95 9.113924

216
42 8 3.95 16.20253
43 3 3.95 2.278481
44 3 3.95 2.278481
45 6 3.95 9.113924
46 2 3.95 1.012658
47 4 3.95 4.050633
48 2 3.95 1.012658
49 4 3.95 4.050633
50 4 3.95 4.050633
51 0 3.95 0
52 0 3.95 0
53 10 3.95 25.31646
54 4 3.95 4.050633
55 4 3.95 4.050633
56 1 3.95 0.253165
57 6 3.95 9.113924
58 2 3.95 1.012658
59 4 3.95 4.050633
60 6 3.95 9.113924
61 8 3.65 17.53425
62 6 3.65 9.863014
63 3 3.65 2.465753
64 1 3.65 0.273973
65 5 3.65 6.849315
66 5 3.65 6.849315
67 5 3.65 6.849315
68 4 3.65 4.383562
69 1 3.65 0.273973
70 3 3.65 2.465753
71 3 3.65 2.465753
72 0 3.65 0
73 7 3.65 13.42466
74 5 3.65 6.849315
75 1 3.65 0.273973
76 1 3.65 0.273973

217
 77 4 3.65 4.383562
78 5 3.65 6.849315
79 3 3.65 2.465753
80 3 3.65 2.465753
81 2 2 2
82 2 2 2
83 2 2 2
84 1 2 0.5
85 2 2 2
86 3 2 4.5
87 5 2 12.5
88 0 2 0
89 1 2 0.5
90 2 2 2
91 1 2 0.5
92 0 2 0
93 5 2 12.5
94 7 2 24.5
95 1 2 0.5
96 0 2 0
97 2 2 2
98 1 2 0.5
99 1 2 0.5
100 2 2 2
Total 1000 1000 1113.568

 Value of test Statistic:-

Chi-square calculated:- 113.568
Chi-square table value:- 97.35
 Comparison:-
Here, Chi-square calculated > Chi-square table value
 Reject H01 at 5% Level of significance.

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 Conclusion
Changes in technology and government‟s policies of liberalization, privatization
and globalization the Indian rural markets have significant effect on fast moving
Consumer goods.

219
 CHAPTER – VI
OBSERVATIONS, RECOMMENDATIONS AND
CONCLUSION
6.1 INTRODUCTION
This research work started with the study of the current scenario of the rural
marketing. Over the years the governments, both central and the state, are heavily
investing in the development of infrastructure in the rural areas. It may by
development of all weather roads, educational facilities, health care facilities,
communication network etc. This has a strong bearing on the changes that are being
witnessed in the rural area. The government has developed road network in
connecting villages to the Taluka places as well as internal roads between the villages.
This has helped in improving the public transport‟s penetration in the rural area. The
government has assisted in establishing primary, secondary schools as well as junior
and senior colleges in the rural areas. This has led to the spread of education in
general and more particularly it has facilitated the girls in the villages to pursue their
college studies. Already there is penetration of mobile network in the rural areas. The
only difficulty the rural area is facing is that of frequently interrupted power supply.
The villagers find it difficult to charge their mobile sets because of the failure of the
electricity.

Now after the adoption of new economic policy since 1991 India has opened
up its economy to the world and as a result number of new multinational
manufacturing and service industries has appeared on the Indian marketing horizon.
These companies have realized the demographic potential of Indian rural markets.
There are over 6 lakhs villages wherein a population of 68.4 per cent of the total
population resides. This vast rural population offers a huge potential for the marketing
of the fast moving consumer goods and consumer durable goods as well.

The development of the rural economy has resulted into improvement in the
purchasing power of the rural masses. This is mainly because of cultivation of cash
crops like sugarcane, cotton, grapes, as well as pursuing activities allied to agriculture
like dairy, poultry and cultivation of vegetables which has good demand in the nearby

220
urban centres. This has improved the income of the rural masses. At the same time
because of the spread of the education, girls‟ strength in the rural high schools,
colleges has increased considerably. This has changed their mindset for improving
their standard of life by becoming hygienic consciousness. This has resulted in the
personal healthcare which is depicted in the increased sales of the toiletries, bath
soaps, shampoos, etc.

Because of the improvements in the communication infrastructure even the

rural area has become more accessible and hence the reputed marketing
multinationals are paying good attention in the development of the rural markets.
These companies are formulating special strategies keeping in mind the specific
requirements of the rural markets. E.g. introduction of sachet packaging and small
size packaging, change in the advertisement media, use of regional language in
advertisements and colourful and informative advertisements. This has resulted in
increasing demand of the branded products. These companies are also participating in
the village fairs so as to take the opportunity to introduce their new products to the
masses and at the same time get the feedback from the villagers which goes into
formulating marketing strategies for the rural area. The whole marketing subject is a
dynamic one and one sees rapid changes in the marketing scenario. For achieving the
success in the rural market the companies are required to be on their toes to adopt new
changes to match the expectation of the emerging markets.

The rural consumer behavior is changing fast. Their choices are getting
widened. Their expectations are quite high. Now because of the digital media there is
greater awareness about the new products and the demand for these products
increases. Gradually the gap between the rural urban marketing is getting reduced. If
the monsoon is favourable, demand increases considerably, thereby accelerating the
growth of the rural economy. The rural consumers‟ mindset is changing fast.

The Government of India has now diluted the entry point norms for the retail
sectors and this has received a good response from the multinationals. Now because
of the entry of multinationals with their overseas rich experience in marketing the

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Indian domestic marketers are also following their suits in drawing up the rural
marketing strategies afresh.

Thus this research has revealed the various aspects like rural marketing
scenario, rural consumers‟ buying behavior, specific needs of the rural area, and
expectations of the rural masses which will go a long way in the development of rural
market on scientific footing and will emerge a focal point for rural marketing in India.

In the earlier chapter the researcher has presented the primary data obtained
from the villagers as well as the village shop keepers and has also interrelated the
same. Now, in this chapter the researcher has presented the observations and
recommendations based on the interpretation of the data from the earlier chapter.

6.2 OBSERVATIONS
On the Villagers’ responses
1. It was observed that gender wise classification of the families revealed
that 52.5 % were males while 47.5 % were females.

2. It was revealed that 25.47 per cent were earning members of the total
population of 2147 respondents.

3. On the education front, it was observed that those who had studied
upto 7th standard were 32.5 per cent whereas 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.

4. It was observed that 70.5 per cent were joint families while the rest
29.5 per cent were nuclear families.

5. So far as size of the family is concerned, it was observed that 90 per

cent of the families were having 7 members in the family while there
were only 40 families wherein 8 family members were there.

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6. So far as occupation wise classification is concerned, it was observed
that there were 52.5 per cent of the respondents were having
agriculture as their principle occupation.

7. On the family income score, 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.

8. So far as factors taken into account for buying decision, it was

observed that 56.75 % 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 %
respondents, credit facility had less preference in decision making,
Recommendations from the friends / relatives were also not given
much importance in decision making. At the same it was also observed
that the buyers were not giving any weightage to the gifts associated
with the purchase of any particular good.

9. 42 per cent of the respondents stated that the main source of

procurement of their day to day needs was the provision stores
available in the village and only on some occasions they source it from
visiting vendors.

10. It was observed that the products of Hindustan Unilever Ltd. had good
penetration and there was good response from the rural population. In
respect of Tea, Clinic plus, Sun silk, the awareness needed to be
increased.

11. It was observed that in the rural area television and radio were the
popular media through which Hindustan Unilever Ltd. products were

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 reaching the respondents. Wall painting was at prominent place seen
by one and all when they passed through the main road. Therefore,
wall painting was relatively cheaper and made a permanent mark on
the passersby.

12. It was observed that Hindustan Unilever Ltd. products like Lux,
Lifeboy, Wheel, were usually available in the rural market regularly.
Number of products was available in sachet form. Clinic + shampoo
and Taj Mahal Tea/ Taaza were not in good demand and hence rarely
available.

13. It was observed that after globalization, liberalization and privatization,

the rural markets had been opened up and they offered vast potential
for the fast moving consumer goods.

14. It was observed that over the past few years unlike the past, the rural
markets offered quality goods to its customers. 52.75 per cent of the
respondents were positive in supporting this observation.

15. It was observed that prior to the globalization; the rural markets were
selling the low quality goods which were manufactured in the local /
nearby area. After the globalization, the rural markets flooded with the
quality products marketed by the multinational companies.

16. As regards the regular availability of the standard products, it was

observed that the multinational marketing organizations ensured their
supplies to the rural shop keepers through their own transport
arrangements. This ensured regular availability of their products. This
was possible because of the development of all weather roads.69.75
per cent of the respondents confirmed this position.

17. After the globalization, the number of products traded in the rural
markets increased. It was observed that the television media was

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 tapped by the multinational companies in order to create awareness
about the new products of these companies which were made available
in the rural market. On all TV channels, there were number of
advertisements of Hindustan Unilever Ltd. displaying their new
products and highlighting their uses to the masses.

18. In the rural area, there was a concept of weekly bazzar at a central
place where the various vendors put up their stalls and ensured the new
products were also available. Because of the construction of all
weather roads in the interiors, there was a higher turnout of vendors at
the weekly bazzar thereby the consumers got lots of options. 84 per
cent of the respondents had subscribed to this view.

19. As compared to the black and white advertisements, because of the TV

media it has now been possible to show the pictures of the new
products in colourful manner which is catchy and the consumers are
attracted towards it. This helped the rural consumers to understand the
usages of the new products which motivated them to buy them.

20. It was observed that during the past few years the overall income level
of the rural area had gone up. Because of the development of the
irrigation facilities, as well as development of dairy activity, the
farmer‟s income level had shown an increasing trend. As a result of
this the approach of the rural masses towards certain products
especially toiletry products had changed. They had become health
conscious and they went for purchase of the quality goods rather than
buying locally made goods. 75 per cent of the respondents had
confirmed that during past few years their budget for toiletry had gone
up considerably.

21. In the past, in the absence of the availability of the branded goods of
good quality, the villagers were required to approach the nearby
market located in the urban centre. However, after the globalization,

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 the situation changed and even the branded goods became available in
the rural markets. 77.5 per cent of the respondents confirmed the
availability of the branded goods in the rural markets.

22. In the rural area normally the major inflow of income was at the time
of harvesting of their agriculture produce. Farmers got fresh money
only from their activity allied to agriculture, such as dairy, poultry or
salary of one of the family member. Thus, as compared to the
harvesting period, the cash position in the normal course was usually
tight. Therefore, these villagers could not buy their requirements in
good quantity. So in the rural area the packaging in sachet form
became very popular as it was cheaper. There was one more aspect and
that was storage of goods. In the rural set up, proper storage of the
goods also posed a problem and therefore the villagers preferred to
have small packages which could be consumed as per the needs and
there was no question of storing it.

23. Due to spread of education and the improvement of the financial

condition, the students going to the school/colleges were insisting on
buying quality goods of reputed companies. 57.5 per cent of the
respondents had confirmed this position.

24. So far as the buying decisions were concerned, it was observed that the
rural consumers accorded preference to quality, utility and price. 75
per cent of the respondents vouched for this statement.

25. It was observed that many times the new products were introduced in
the metropolitan and urban area before those introduced in the rural
area. Therefore, their friends /relatives in the urban area got an early
opportunity to try the new products. These urban based acquaintances
did share their experience about the new product with their rural
acquaintances. Therefore, the rural consumers did solicit opinion /

226
 recommendations about a particular product with their urban based
friends / relatives whenever they bought a new product.

26. On specific questions about the reason of buying the Hindustan

Unilever Ltd. products, it was observed that 72.5 per cent of the
respondents stated that they bought Hindustan Unilever Ltd. products
because of the high quality.

27. It was observed that prior to globalization the villagers were getting
loose tea and because of its improper storage the flavour and taste of
the tea was not maintained. Thereafter the Hindustan Unilever Ltd.
introduced packaged Red Label tea powder. The villagers had now
developed test of these packaged tea.

28. Similar was the experience about the toiletries. In the past, the villagers
were getting locally made washing powders which were not washing
the closes properly, particularly the white clothes, so clean. After the
entry of Hindustan Unilever Ltd. product “Rin” in sachet form of
packaging the villagers had now switched on to this good quality
product. As a result of which their clothes were spotlessly clean.

29. Because of the poor economic condition in the past, the villagers were
not able to afford good quality products for throughout the year and
therefore, they used to buy good quality products only during the
festive season like Diwali, Ganesh festival, Gudhi Padwa etc.
However, it was observed that now the situation had changed totally
and the villagers used the quality products throughout the year. 77.5
per cent of the respondents had vouched this statement.

30. It was observed that in order to promote their products, Hindustan

Unilever Ltd. representatives undertook door to door campaign in the
rural area.

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31. It was observed that the daily consumption needs of quality goods
were locally met and that the villagers were not required to go to
nearby town. 77.5 per cent respondents had affirmed this statement.

32. It was observed that now the bank branch network had reached in the
rural area and as a result the villagers were now getting credit from
these banks. This had certainly improved the economic activity in the
villages.

33. It was observed that as a result of various factors like all weather roads,
availability of the bank finance, the number of vendors in the village
weekly bazaar had increased considerably.

34. It was observed that Hindustan Unilever Ltd.‟s shampoo / toilet soaps
etc. were locally available at the village level.

35. It was observed that because of the spread of education the colleges
were within the reach of the villagers. The girls were taking college
education and it was but natural that they were cautious about
presenting themselves in a presentable manner. This had positively
impacted the Hindustan Unilever Ltd. sales in the rural areas.

36. TV advertisements had made a tremendous impact on the sales of the

Hindustan Unilever Ltd.. The villagers insisted on the new products to
which they were introduced by the TV advertisements.

37. The villagers had become choosy. Their buying decisions were based
on the availability of the variety of products for comparison. It was
also observed that the village consumers accorded priority to the
satisfaction.

228
38. It was also observed that 60 per cent of the villagers did enjoy credit
facility from the shop keeper and therefore, they preferred to purchase
their requirement from the available stock at the said shop.

39. Now a day, in order to boost up their sales, number of companies came
out with various gift schemes to attract the customer or offer fabulous
discounts. The consumers were used to give consideration for such
offers in buying decisions.

40. It was observed that due to improved communication system i.e. use of
mobile phones, internet facility, and the all weather roads, the village
shop keepers could ensure availability of the stock at a very short time.

41. Similarly, because of the penetration of the courier services as well as

access to internet through android phones, and availability of online
marketing facility, the villagers who were computer savvy got their
specific requirement in a short span of time.

42. It was observed that during the past few years the government had
spent heavily on the irrigation works as a result of which there was a
facelift in the villages. The villagers were not cultivating cash crops
like sugarcane, cotton, vegetables, grapes etc. which had increased
their income level. Naturally this had reflected in their purchasing
power. This had led to increased economic activity in the rural area.

43. Growing number of the villages were being electrified and the villagers
were enjoying facility of colour TV sets. This brought them on par
with the urban viewers.

44. It was observed that the 80 per cent of the villagers had complaints
about frequent power failures.

229
Observations on the village shop keepers’ responses

1. It was observed that 68 per cent of the shop keepers were graduate / post
graduate.

2. It was observed that the products of Hindustan Unilever Ltd. were in good
demand. It was also observed that 68 per cent of the shop keepers had stated
that during the last two decades the demand for branded goods had increased
in the rural area.

3. The village shop keepers received Hindustan Unilever Ltd.‟s products at the
door steps of the shop through stockiest.

4. 84 per cent of the village shop keepers also confirmed that before two decades
they used to sell locally made goods like washing powder, soaps etc.

5. It was observed that 90 per cent of the village shop keepers got regular supply
of Hindustan Unilever Ltd. products.

6. 74 per cent of the village shop keepers had also observed that because of the
television advertisements there was a greater awareness amongst the rural
masses about the new products and their uses. This was because of the TV
advertisements.

7. 80 per cent of the village shop keepers had also observed that the number of
vendors in the weekly bazzar had increased considerably, because of the
improvements in the road connectivity.

8. 88 per cent of the village shop keepers had also observed that Hindustan
Unilever Ltd.‟s advertisements in the regional language and catchy. It had a
bearing on the buying behavior.

230
9. 88 per cent of the shop keepers had also confirmed that there was a shift in the
family budget for bathing soaps, washing soaps, washing powders, shampoos
etc.

11. 92 per cent of the shop keepers confirmed that there was a good demand for
sachet packaging in the rural area.

12. 56 per cent of the shop keepers had agreed that obtaining bank loan for
business had become hassle free. 20 per cent remained neutral.

13. 68 per cent of the shop keepers confirmed that they got good support from
Hindustan Unilever Ltd. to promote their products in the market.

14. In order to popularize their products in the rural area, Hindustan Unilever Ltd.
participated in the annual village fairs by putting their stalls and distributing
product literature amongst the masses.

15. It was observed that in order to boost their sales Hindustan Unilever Ltd.
offered good discount to the traders.

16. It was observed that Hindustan Unilever Ltd. products were in good demand
in the rural area as it was a known brand, because of its long standing presence
in India. Besides the word Hindustan in the title of the company created an
impression that it was a domestic company.

6.3 RECOMMENDATIONS
We are living in a dynamic society where day in and day out changes are
taking place. When we say that there is development in the rural area so far as
infrastructure is concerned is true. But this does not mean that there is no more scope
for its further improvement. India is having a total 593615 villages with a rural
population of 742,490,639 according to the last 2011 census. If we have to achieve
total development we have to target the smallest village in India we have to ensure
that the man in the remote village should also have the fruits of the development. We

231
have seen that the development of the infrastructure (roads, communication etc.) in
the rural areas has a bearing on the life style of the rural people. Therefore, the
researcher appreciates the infrastructure development achieved so far. He is of the
considered view that following few recommendations will further augment the rural
development and the improvement in the rural life style.

6.3.1 Recommendations to Hindustan Unilever Ltd

1. Now the village consumers are fairly educated. Their expectations about the
quality, usages, and storage facilities are more. They expect that the marketing
should be transparent and ethical. It is suggested that the Hindustan Unilever
Ltd. may also educate the rural consumers about their products. This will
certainly have positive impact on their market share in the rural area.

2. Hindustan Unilever Ltd. may periodically conduct survey of the rural area as,
at times, the rural environment gets changed because of the government‟s
investment in infrastructure development and get the first hand information
about it as well as ascertain the changed expectations of the rural consumers
about the products, its presentation and packing sizes etc. This will enable
them to frame their rural marketing strategy.

3. So far as rural area advertising is concerned, Hindustan Unilever Ltd. may

continue to be in the regional language and as far as possible it should be near
the school buildings, preferably in the school campus which will have better
impact. It will also help the rural schools to generate some source of income to
improve their facilities for the students.

4. The rural economic conditions are different in different parts of Maharashtra

and those are on majority occasions dependent upon the successful monsoon
season. If there is a draught area naturally the economic conditions may not be
such that the rural consumers will be able to afford their products. Therefore,
by reducing the packet size and quantity the price of the product will be within
the reach of the rural consumer.

232
 By the time this research was in finalization stage there was a radical change
in the mode of taxation in India. From 1st July 2017, the Govt. of India
introduced Goods and Services Tax with the slogan One Nation – One Tax.
With this introduction goods and services will be available at the same rates
throughout India. With a view to maintaining its market share Hindustan
Unilever Ltd. had reduced prices of some of its detergents and soaps,
extending the tax benefits to consumers under the GST regime. Hindustan
Unilever Ltd. had slashed the price of its detergent soap Rin bar of 250 gm to
Rs 15 from Rs 18 and increased weight (grammage) of its Surf Excel bar
costing Rs 10 to 105 gm from 95 gm at the same price. (Ref. Business
Standard 13.July 2017)

5. One of the aspects that influences the rural consumer‟s buying behavior is the
credit that the shop keepers offer. Therefore, the Hindustan Unilever Ltd. may
also strengthen the hands of the village shop keepers by extending a small line
of credit after assessing the individual credit worthiness. This will help the
village shop keepers to avoid loading of interest in the prices to the ultimate
consumer who is availing credit from the shop keeper.

6.3.2 Recommendations to the Marketing Managers

1. This research has amply brought to the surface that the rural consumers are
more cost conscious and therefore, pricing of the product as well as size of
packaging plays a dominant role in their purchases. Therefore the marketing
managers may bear this point in mind while designing their marketing
strategies.

2. The marketing managers think of slowly and steadily creating brand

awareness about their products by specially designing their advertizing
strategies keeping in view the rural consumers.

233
3. There are miscreants who try to take advantage of the rural uneducated
consumers by naming their products with slight variation to avoid legal action.
They not only name their products sound similar to the branded product but
also create their packaging in a similar way so that the rural uneducated
consumer may get cheated, Therefore, the marketing managers may pay
special attention to these aspects particularly in the rural areas and be vigilant
and appropriate deal with the product marketing.

4. The Hindustan Unilever Ltd. may be very much concerned about the
availability of the company‟s products at all the times. It is necessary to ensure
that the stocks are readily available otherwise the rural consumer may get
diverted to the other company‟s product as he does not maintain stocks at
home. This is because his family budget does not permit him to wait the
arrival of stock. So the availability of the stocks all the times should be given
prime importance.

5. Marketing managers may consider a sturdy packaging with a little more price
only for one time container of which can be used for the subsequent storage of
the material supplied to them in refill packaging. Presently paper packing is
used and if the Hindustan Unilever Ltd. uses plastic container it will have a
better life and the refilled contents can be safely stored in it. The price of the
refill packaging can be brought down as compared to the regular packaging. If
a balance is struck on this front objectives of both the marketer as well as the
consumer can be achieved.

6. In the rural area proper storage arrangement both at the consumers‟ residences
as well as at the village shop keeper is a problem. There are no proper
cupboards which will take care of the product during storage. It is therefore,
suggested that the marketing manager may provide one time proper storage
container.
7. It is recommended that the HUL may organize godowns in the vicinity of the
cluster of villages where their sales are picking up fast.

234
6.3.3 Recommendations to the Government:

1. The government may continue its rural development efforts particularly

connecting the villages with roads, with the same amount of zeal so that the
rural masses will improve their future. The development of roads leads to easy
communication which helps the rural people to connect with urban population.
This will enable the marketing organizations like Hindustan Unilever Ltd. to
push their products in the rural markets.

2. One of the grey areas that were observed that the electricity had reached
almost in all the villages, however, due to deficiency of the electric power
generation the rural area is facing power shortage for a long time. Mobile
phones are there but because of frequent power failure the villagers find it
difficult to charge their phones, watch the TV programmes and other
improvements like using the facility of flour mills, chilling pounding machine,
washing machines, refrigerators etc. Therefore, the government may focus its
attention in power generation and see that the villages are getting
uninterrupted power supply so that the marketing of Hindustan Unilever Ltd.‟s
products would be augmented.

3. There is need to improve the quality of education amongst the rural

educational institutions. Some surveys have brought to surface the plight of
the rural education quality. If the quality of education in the rural area
improves, naturally it will have positive impact on the approach of the rural
people towards development, better standard of living and quality of life.

4. The “Swachha Bharat Abhiyan” campaign has a prime importance in the rural
area. There is a greater need to improve the rural environment and to create
awareness about the cleanliness amongst the rural masses. If the villages
achieve success in this campaign naturally it will have positive impact on the
rural health scenario which ultimately leads the villagers to healthy life. Here
the Government can provide funds for proper drainage system and
construction of public toilets, which it is already doing to some extent.

235
5. The government may find out potential centers for starting weekly bazaars so
that numbers of vendors of day to day items required by the rural people are
available near the village. Since the numbers of vendors have increased
because of the improved communication facilities, naturally the new weekly
bazaar centres will give push to the rural economy.

6.4 ATTAINMENT OF THE OBJECTIVES

This research had begun with the first objective “To study the current rural
marketing scenario”. The researcher during the course of collection of primary data
had an opportunity to visit number of villages and to interact with the villagers as well
as village shop keepers with the help of an interpreter. This enabled the researcher to
get to know the rural marketing scenario.

The second objective of this research study was, “To study the rural marketing
strategies of Hindustan Unilever Ltd. in pushing their fast moving consumer goods.”.
In this context the researcher while designing the questionnaire for the rural
consumers as well as the village shop keepers had incorporated several statements
relating to Hindustan Unilever Ltd.‟s marketing strategies, and the feedback that
received enabled the researcher to study Hindustan Unilever Ltd.‟s rural marketing
strategies in greater details.

The third objective was, “ to study the buying behavior of the rural consumer”.
In this context the researcher had put several statements for the villagers as well as
the village shop keepers which were focused to give free hand to the rural consumers‟
buying behavior. The data analysis presented in the chapter V amply elaborates
Hindustan Unilever Ltd.‟s the HUL consumers‟ buying preferences.

The last objective was, “based on this research to suggest remedial approaches
to the rural marketing”. In this chapter, in the foregoing paragraphs the researcher has
brought out his observations based on the data analyzed in the chapter no. V and has
offered his recommendations for the Hindustan Unilever Ltd. as well as the
governments.

236
 Thus it can be safely concluded that the objectives with which this study had
begun have been fully accomplished.

6.5 SCOPE FOR FURTHER RESEARCH

While conducting this research the researcher was constantly engaged in
identifying the untapped areas in the rural marketing scenario. In his considered
opinion the following are some of the areas wherein there is scope for conducting
future research which will go a long way in developing the rural markets on sound
footing.

1. India has a vast country having 593615 villages as per the latest population
census. There are regional diversities so far as climate, population density,
socio-economic conditions, and more particularly the communication system.
In the present research the area was relatively more developed area. The
observations and conclusions drawn in this research may not be applicable to a
country with such a vast diversity. The present study was pertaining to the
State of Maharashtra State, such research can also be pursued for different
States which will be beneficial to the Hindustan Unilever Ltd. as well as the
other marketing organizations.
2. The rural consumers‟ psychology is distinct from that of the urban consumers.
It is therefore, suggested that future research can be undertaken focusing on
understanding the rural consumers psychology.
3. Today the composition of the rural consumers is getting changed. There are
salary earners, agriculturists, self employed, professionals etc. Therefore, it
will be better if any marketing company feels that rural consumer
segmentation will enable it to address a particular segment of consumers for
any specific product it will help it to boost up its sales. Therefore, further
researcher can also be undertaken on the rural consumers‟ segmentation within
the rural area.
4. Because of the government‟s spending on rural infrastructure, there is a
facelift of the villages which also has its impact on the marketing of various
fast moving consumer products. Therefore, it will be possible to find out the

237
 relationship between infrastructure and marketing by undertaking appropriate
research in this area.
5. This study was with a specific reference to Hindustan Unilever Ltd. There are
different marketing companies operating at the national and international level
which are trying to penetrate in the rural areas as it offers vast potential. The
company marketing policies differ from company to company. Therefore, a
research with a different marketing organization other than Hindustan
Unilever Ltd. can be taken up which might bring out additional dimensions to
the rural marketing scenario.
6. Now as the rural economy gets a boost, it will have its impact on the rural
family income. When we think of changing rural lifestyle we can also think of
marketing of not only consumable goods but we can also think of marketing of
Consumer Durable Goods of standard and reputed manufacturing companies.
This may bring out some new dimensions which are peculiar to the rural area.

6.6 CONCLUSION
Over the past few decades because of the development of Indian economy the
purchasing power of the rural area has considerably increased. Both the Central as
well as State governments, are trying their best to provide infrastructural development
in the rural area. The villages are also responding positively to the governmental
efforts in this regard. India adopted policy of globalization, liberalization and
privatization since 1991. Thereafter, number of multinational companies from
manufacturing as well as services sector has established their units in India. This has
resulted in number of multinational companies entering in the rural market to develop
the potential offered by the rural markets.

In this process of development, the rural markets have assumed greater

importance, as Indian villages have a sizable population which offers a vast potential
for development. The rural markets are showing a steady growth rate. Even the rural
consumers‟ mindset is also undergoing a change from local to branded and quality
goods purchases. The rural marketing is in developing stage. Undoubtedly there are
some initial teething problems like high distribution costs, consumer education etc.
However, as compared to the initial difficulties the growth potential is tremendous.

238
Change in the attitude of the rural consumer needs to be cultivated which is a time
consuming process. However, once this is achieved sky is the limit for the
development of the rural market. In the rural market the consumer preference is for
sturdy goods and quality of goods. The manufacturing companies are required to
address these aspects. In order to develop this rural market on sound footing what is
required is creativity. One who displays creativity will reap the benefits. To conclude
the researcher is of the view that the Indian rural market has a bright future. The
marketing companies like Hindustan Unilever Ltd. also have plenty of scope to
achieve newer heights.

239
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NEWS PAPER ARTICLES

 Business Standard: 8th July 2013, news headline, “Marketing to Rural India”
 First Post, 15th January 2016, Nikita Peer, SME Mentor, article titled, “With
Urban markets drying up, entrepreneurs must go rural”
 Business Standard: 8th July 2013, news headline, “Marketing to Rural India”
 First Post, Dec 20, 2012, Sonali Advani‟s article titled, “Rural marketing: Say no to
price wars, relationships key”.
 Sanjay Dawar, Business Standard 8th July 2013, “Marketing to Rural India”.
 Business Standard 8th July 2013, Sanjay Dawar, “Marketing to Rural India”.
 Indian Brand Equity Foundation: July 2016, Rural Segment Quickly Catching Up.
 Economic Times, TNN Jan 19, 2006, Shuchi Vyas, article titled,” Shampoos
lather up in rural markets”

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WEBSITES
 http://www.pondiuni.edu.in/storage/dde/downloads/markiv_rm.pdf
 http://www.pondiuni.edu.in/storage/dde/downloads/markiv_rm.pdf
 http://www.censusindia.gov.in/2011census/dchb/2725_PART_B_DCHB_%2
0PUNE.pdf surfed on 24.8.2016
 Naukrihub Web Site: http://www.naukrihub.com/india/fmcg/overview
visited on the 29th August 2016
 http://www.nielsen.com/content/dam/corporate/india/reports/2012/Emerging
%20Consumer%20Demand%20%E2%80%93%20Rise%20of%20the%20S
mall%20Town%20Indian.pdf visited on the 29th August 2016 at 12 noon.
 www.vsrdjournals.com KC Beehura and JK Panda (2012) ,”Rural Marketing
of FMCG Companies in India” VSRD-IJBMR, Vol. 2 (2) 2012 65-74
available online
 http://www.indianjournalofmarketing.com/index.php/ijom/article/view/8038
9 visited on 15th Sept.2016.
 http://www.ibef.org/industry/indian-rural-market.aspx

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 ANNEXURES
Annexure - I
Questionnaire for the villagers

1. Name of the villager: ___________________________________

2. Age: (as on Jan.2017) ______ years

3. Composition of the family:

Male Female Total Earning members in the family
Nos.

4. Education:
Illiterate Upto 7th Std. Upto 12th Std. Graduate Post graduate

5. Type of family: Joint Nucleus

6. Number of family members including yourself:

Less than 7 8-11 Over 12 Total

7. Occupation:
Agriculture Activity allied Self Service Combined activities Retired
to agriculture employed from 1 to 4
1 2 3 4 5 6

8. Family land holding (unit Ha)

Total land holding Of which land under Irrigated Land Dry land
cultivation
H R H R H R H R

9. Family income per annum:

Less than Between Rs.1 to Between Rs.2.5 Between Rs.5 Over Rs.10
Rs. 1.00 2.5 lakhs lakhs to 5 lakhs lakhs to R.10 lakhs
lakhs lakhs

10. Rate factors that you value while taking buying decision
Sr. Factors Not at all Less Neutral Important Most
No. important important important
1 Quality
2 Price
3 Appearance
4 Durability
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5 Availability
6 Credit facility
7 Recommendations
from
friends/relatives
8 Availability of gifts

11. Normally from where do you effect your daily requirement products:
Local provision Nearby Visiting During weekly bazzar
store town vendors at the nearby town

12. Product awareness position:

Which is your choice for the following products: Please put a  mark against
item of your choice

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

13. Have you ever used any of the following HUL products
Product Not at all Rarely Some time Many time Always
Lux
Lifeboy
Rin
Wheel
Pepsodent
Close up
Clinic plus
Sunsilk
Taj Mahal
Tea
Taaza Tea

14. Through which source you got knowledge about the HUL Products
Product Television Radio News wall Other
Paper painting
Lux/Lifeboy
Rin/Wheel
Pepsodent/
Close up
Clinic + /Sunsilk
Taj Mahal Tea/Taaza

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15. Rate regular availability of the following HUL products

Product Never Rarely Can’t Mostly Always

available available say available available
Lux/Lifeboy
Rin/Wheel
Pepsodent/
Close up
Clinic + /Sunsilk
Taj Mahal
Tea/Taaza

16, Some statements relating to development of the rural markets in the recent
past are given below. Which of the option provided for, most appropriately suit your
views? (There is no right or wrong answer) Please put  mark in the answer of your
choice.

H1: - With the changes in technology and government‟s policies of Total

liberalization, privatization and globalization the Indian rural markets have
been opened up and present a vast marketing potential for the fast moving
consumer goods.
No. Statement Strongly Agree Neutral Disagree Strongly
agree disagree
1 Since last ten years 84 142 117 40 17 400
or so we get standard
company‟s products
in our village
2 We get quality 25 186 88 62 39 400
products since
couple of years.
3 Before globalization 113 166 28 44 49 400
we were getting
local made washing
powder and such
other goods
4 Now we see standard 152 138 42 34 102 400
company‟s delivery
vans visit our
village.
5 Due to 168 152 65 10 5 400
advertisements on
the television sets we
get to know the latest
products and their
uses.

253
6 Due to development 172 164 45 10 9 400
of all weather roads
now number of
vendors put up their
stalls in the weekly
market in the nearby
town.
7 The colorful 142 182 26 14 36 400
advertisements
depicting the uses of
the new products
help us to understand
the uses of it.
8 Since the last decade 155 145 35 52 13 400
our family budget
for toiletries has
sizably increased.
9 Now we need not go 168 142 65 23 12 400
to the nearby town
for getting branded
goods of daily use.
10 I really appreciate 196 134 55 7 8 400
the packaging in
sachets as we can
use it instantly and it
is cheaper too.
11 My son studying in 125 105 132 40 22 400
college insists on
specific company‟s
products.
12 I am always guided 185 115 45 35 20 400
by the quality, utility
and price
consideration while
buying my day to
day requirements.
13 I go in for new 110 105 125 40 30 400
products only on the
recommendation of
my relative in the
nearby city who first
uses it and
recommends it to
me.

254
14 I prefer small 165 125 30 65 15 400
packages because
my purse does not
permit me to buy in
bulk.
15 I always prefer to 135 155 40 52 18 400
buy products from
Hindustan Unilever
Ltd. as those are of
high quality.
16 Hindustan Unilever 172 108 20 65 35 400
Ltd. has introduced
sachets and small
packages of number
of products. It helps
us in buying it in
small quantity.
17 The packaged Red 15 25 176 24 160 400
label Tea from
Hindustan Unilever
Ltd. has changed our
Tea Taste.
18 Now our clothes are 176 124 65 24 11 400
as white as the city
dwellers as we too
get Surf in our
village.
19 In good old days for 145 165 60 18 12 400
washing we used to
purchase quality
products only at the
time of Diwali, but
now we regularly use
standard products
only.
20 The representative of 105 85 110 80 20 400
Hindustan Unilever
has visited my house
and enquired about
the quality and
availability of
products.

255
17.

H2 Rural markets are growing fast for the fast moving consumer goods. Total
No. Statement Strongly Agree Neutral Disagree Strongly
agree disagree
1 As a result of 160 150 60 18 12 400
availability of quality
goods of daily
consumption, we
need not go to nearby
town.
2 A bank branch has 88 162 78 42 30 400
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.
3 The number of 108 142 65 60 25 400
vendors of goods of
daily consumption in
the weekly market at
our centre has
substantially
increased.
4 Now we get 138 162 65 25 10 400
shampoo/ face
powders/toilet soaps/
packaged tea etc. of
branded companies
locally
5 Because of my 98 167 102 23 10 400
daughter is now
studying in college,
she needs use of
cosmetics of good
quality.
6 Family members 98 142 56 80 24 400
watch the newly
introduced products
on TV and insist on
to buy those.
7 My buying decisions 142 168 35 40 15 400
are based on the
availability of the
variety of the
256
 products.
8 Unless and until I am 78 152 56 80 34 400
satisfied about the
product expectations
I do not buy it.
9 I enjoy credit facility 172 68 80 60 20 400
from the vendor and
therefore I prefer to
buy only those
products which are
available in that shop
only.
10 Free gifts / vouchers 98 102 125 65 10 400
prompt me to buy
that product.

18.

H3 The developments in the field of education, digital media, Total

communication, irrigation and other improvements in agriculture, have
great bearing on the growth of the marketing of FMCG in rural
markets.
No. Statement Strongly Agree Neutral Disagree Strongly
agree disagree
1 Due to use of mobile 80 140 85 75 20 400
phones our retail
shop keeper is in a
position to make the
goods available at a
short notice.
2 Now we have a bank 80 170 80 38 32 400
branch in our village
which has increased
the businesses in our
village.
3 I was surprised 0 10 290 80 20 400
when my son
ordered for
Tajmahal Tea on his
computer and the
same was delivered
within 3 days by
courier.
4 Because of the 188 132 40 32 8 400
increase in the
irrigated area of our
village, our income
has also increased.

257
5 Now we are taking 165 128 45 57 5 400
cash crops like
sugarcane, onion,
vegetables in our
village.
6 Now we have a high 155 135 65 35 10 400
school in our village
which facilitates our
daughters to go to
high school.
7 A college has been 102 108 90 65 35 400
opened in the
nearby town which
is just adjacent to
our village, which
facilitates our boys
and girls too to take
higher education.
8 During the last 165 135 30 45 25 400
decade our village
has been electrified
and now we have
colour TV set in
almost every house.
9 Frequent power 180 140 15 42 23 400
failure is faced by
us which needs to
be resolved.
10 During the last 88 142 80 65 25 400
decade number of
ST busses
connecting several
cities has increased.

258
 Annexure - II
Questionnaire for the shop keepers

1. Name of the shop ___________________________________

2. Name of the owner ___________________________________

3. When the shop is started: ____________

4. Education of the shop keeper:

Illiterate Upto 7th Std. Upto 12th Std. Graduate Post graduate

5. Product awareness position: Which of the following products under different

categories are in demand by the consumers in your shop? Please put a  mark
against item of your choice

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

6. Which of the following HUL products are used frequently in your area.
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

7. Through which source do you get the stock of HUL products?

Product Wholesaler from Company stockiest delivers Any
the nearby town the stocks other
Lux/Lifeboy
Rin/Wheel
Pepsodent/
Close up
Clinic + /Sunsilk
Taj Mahal Tea/Taaza
8. Rate regular availability of the following HUL products

259
Product Never Rarely Can’t Mostly Always
available available say available available
Lux/ Lifeboy
Rin/Wheel
Pepsodent/Close up
Clinic + / Sunsilk
Taj Mahal Tea/Taaza

9. Some statements relating to development of the rural markets in the recent

past are given below. Which of the option provided for, most appropriately suit your
views? (There is no right or wrong answer) Please put  mark in the answer of your
choice.

No. Statement

Strongly agree

Disagree

Strongly
disagree
Neutral
Agree

Total
1 Since the last two decades there is a 8 26 6 8 2 50
demand for branded products in the
rural area
2 Because of the irrigation 12 22 4 6 2 50
development the rural population‟s
purchasing power has increased.
3 Before 20 years we were selling 14 28 3 3 2 50
local made washing powder and
such other goods in our rural
markets.
4 There is a regular and uninterrupted 9 36 3 1 1 50
supply of Hindustan Unilever‟s
products.
5 Due to advertisements on the 8 29 6 5 2 50
television sets we get to know the
latest products and their uses.
6 Due to development of all weather 12 28 2 5 3 50
roads now many vendors put up
their stalls in the weekly market in
the nearby town.
7 The colorful advertisements 13 28 4 10 5 50
depicting the uses of the new
products, help the consumers to
understand the uses those products.
8 HUL products advertisement is in 16 28 2 4 0 50
local language and it is catchy.

260
9 Since the last two decade rural 15 29 4 1 1 50
population‟s budget for bathing
soaps, washing soaps, washing
powders and shampoos have sizably
increased.
10 Now the traders need not go to the 16 25 4 3 2 50
nearby town for getting branded
goods of daily use.
11 Rural people prefer to purchase 16 30 0 3 1 50
sachet packets as they find it more
convenient.
12 Sachet packing is preferred by the 18 32 0 0 0 50
consumers as it is cheaper.
13 Now obtaining loan from the bank 8 20 10 7 5 50
in the vicinity is hassle free.
14 Hindustan Unilever helps the traders 8 26 4 5 7 50
in promoting their products in their
market area
15 Hindustan Unilever participates in 16 28 4 1 1 50
the village fair by putting up their
stall.
16 HUL‟s bathing soaps, washing 18 30 1 1 0 50
soaps, washing powders and
shampoo products are fast moving.
17 HUL offers attractive festival 8 30 6 4 2 50
discounts to the traders.
18 Consumers prefer HUL products 12 30 2 5 1 50
because HUL is the oldest
Multinational company in India and
has earned a good reputation in the
market.
19 HUL products‟ quality is very good 14 28 4 3 1 50
and hence consumers prefer them.
20 Company‟s name satisfies the rural 12 27 6 3 2 50
consumers who think that it is an
Indian company.

261
 Annexure - III
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1 2 3 4 5 6

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264
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16. J¥{hVH$ 1

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266
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267
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268
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270