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The India and Bharat Conundrum : Challenges and Opportunities
1. FMCG SECTOR:
MNCs and the
Rural
Marketing
challenge:
Success
Mantras
Theme: The India and Bharat conundrum:
Challenges and Opportunities
Presented By:
Divij Batra- 17DM083
Gaurvi Agarwal- 17DM089
Prabhnoor Kaur- 17DM163
2. Rural markets
offer a great
scope for a
concentrated
marketing effort
by MNCs
Focused attention
needs to be paid to
market research, key
decision areas,
problems and rural
marketing
environment, to
reduce the uncertainly
in dealing with these
markets
68.8% of the
people living in
India belong to
the rural areas
(640930 villages
in India)
Rural economy
constitutes
46% of
national
income
Macro level
strategies for
these markets
should focus on
availability,
accessibility,
awareness and
affordability
3. Changing Rural Customers-
the monthly per capita
spending among rural
consumers has increased
17% between FY10 and
FY12, higher than the 12%
rise among urban
consumers
The reason for consuming
a brand by the rural
customers are very
different from those of their
urban counterparts
Saturation in Urban Markets
1
3
2
4
Majority of the MNCs are
unable to understand these
complexities and often fail
to find the right strategy to
penetrate these markets.
Thus a need for a further
research to understand the
customers and the rural
markets arises
4. 03
0201
06
04
05
Identification of challenges on
the basis of secondary research
Collection
of
secondary
data
research
papers
and online
databases
Prioritization of the identified
challenges
Selection of the major
challenge
Primary research on the major
challenge identified
Findings and
results
Recommendation
7. After studying the various challenges faced by
customers in the rural market through secondary
research, we have identified âBrand Loyaltyâ to be
the major challenge faced by MNCs in Rural India.
To further understand this hurdle we will conduct a
primary research in rural areas surrounding Greater
Noida.
8. Objective 2
To identify the major
challenge faced by
MNCs in India based on
our secondary research
RO 1
To identify the
problems faced by the
retailers in Indian rural
markets
RO 2
To understand the
dynamics of brand
loyalty in Indian rural
markets
9. DATA
SOURCES
SAMPLING
PLAN
Primary: Interviews and Surveys
Secondary: Research papers, media reports
and government reports
Sample Size: Retailers - 30, Consumers â 90
Areas- Villages in Greater Noida
RESEARCH
DESIGN
DATA
COLLECTION
METHOD
Descriptive Research Design â
Cross Sectional Research
Observations and Personal Interviews
10. âž Kanarsi- Dankaur Tehsil (Gautam Buddha Nagar District)
Kanarsi - Village Overview
Block / Tehsil : Gautam Buddha Nagar
District : Gautam Buddha Nagar
State : Uttar Pradesh
Pincode : N/A
Area : 308.24 hectares
Population : 4,101
Households : 674
Nearest Town : Gautam Buddha Nagar
11. âž Bagpur- Dankaur Tehsil (Gautam Buddha Nagar District)
Bagpur - Village Overview
Block / Tehsil : Gautam Buddha Nagar
District : Gautam Buddha Nagar
State : Uttar Pradesh
Pincode : N/A
Area : 112.17 hectares
Population : 1,416
Households : 193
Nearest Town : Gautam Buddha Nagar
12. `
Services Yes No
Home Delivery
Credit Purchase
Gender
Male Female
Age
5-20 21-35 36-50 51+
1. Name and location of the retail outlet.
2. For how many hours and days in a week is the shop open?
3. Number of workers working in the retail outlet.
4. Do you provide the following service?
5. Maximum number of customers visiting belong to which category.
6. What brands do you have in store for the following categories:
⢠Personal Care (Soaps, Shampoos, Toothpaste, Hair Oil, Powder)
⢠Household Care (Dish wash, fabric wash, cleaner)
⢠Personal Consumption (Beverages, snacks)
7. What are the most preferred brands for the following categories?
⢠Personal Care (Soaps, Shampoos, Toothpaste, Hair Oil, Powder)
⢠Household Care (Dish wash, fabric wash, cleaner)
⢠Personal Consumption (Beverages, snacks)
8. How do you determine what products/ brands to keep in store?
ďą Distributors feedback
ďą Customer demand
ďą Profit margin
9. Do the customers visiting ask for a particular brand or they just ask for
the product category?
10. Is any initiative taken by the companies to promote their brands in
terms of display, hoardings, schemes and communication?
11. What are the challenges faced by you?
13. `
1. Name
2. Gender
3. Income
4. Family Size
5. Which brand comes to your mind when we talk about the following:-
⢠Personal Care (Soaps, Shampoos, Toothpaste, Hair Oil, Powder)
⢠Personal Consumption (Beverages, snacks )
⢠Household Care (Dish wash, fabric wash, cleaner)
2. Do you ask for a particular brand when you go for shopping or go by
what the retailer suggests? State reasons.
3. If your preferred brand is unavailable, what will you do?
4. What is the frequency and purchase size of the following categories: -
⢠Personal Care (Soaps, Shampoos, Toothpaste, Hair Oil, Powder)
⢠Personal Consumption (Beverages, snacks )
⢠Household Care (Dish wash, fabric wash, cleaner)
5. What are the most common sources of brand awareness?
ďą Word of mouth
ďą Retailer Suggestions
ďą Hoardings and boarding's
ďą Television/ newspaper/ radio/ phone
6. What are the factors that influence you to stick to a particular brand:-
ďą Price
ďą Quality
ďą Availability
ďą Schemes/ discounts
ďą Retailer guarantee
ďą Advertisements
ďą Packaging
14.
15. 90%
70%
Main occupation-
Daily wage workers,
Farmers, Clerks,
Drivers, Peons
30%
Main occupation- Kirana store owner
Open on an average 6 hours
Open on an average 11.5 hours
17. All the retail stores were
run by family members
only
No additional workers
were hired
On an average, 1.33 workers were
working in 30 retail stores on
rotational basis
30. âžPersonal Care â Boards and hoardings
âžPersonal Consumption â Quantity purchase
discount scheme
âžHousehold Care â No schemes
31. Rigidity and resistance to change
Limited buying power
Low lliteracy rate giving rise to low
brand knowledge
Low margins for popular brands
as compared to the local and
counterfeit brands
Not many initiatives
by the company in
terms of promotion
32.
33. Personal Care- Vatika (Dabur), Clinic Plus (HUL),
Nirma, Lifebuoy (HUL), Babool, Colgate (Palmolive),
Close Up (HUL)
Household Care- Ghadi (RSPL), Fenna, Rin (HUL), Tide
(P&G), Patanjali
Personal Consumption- Mountain Dew (Pepsico),
Pepsi (Pepsico), Slice (Pepsico), Lays, Coke, Thumbs Up
(Coca Cola), Dairy Milk
There is a congruence in terms of the brands available at the retail stores
and the brands preferred by the customers which goes on to show that
availability of the brands is a major cog in rural markets
39. Credit Purchase Cash in hand
Variety
Experimentation
Retailer plays a major role in influencing a customerâs buying behavior
â Push the products for higher profit margin Counterfeit and local products
â Keep only those products that the customers ask for
â Do not listen to the distributors
1
2
40. a
c
e
d
b
First mover advantage ->
Pepsi, Wheel, Ghadi
Point of difference (POD) ->
Pepsi providing visi-cooler
Language connect
through packaging ->
Ghadi, Fena
Nature oriented products
(Emotional connect is high) ->
Patanjali, Babool, Vatika
Price range fits very well ->
Clinic Plus, Chik, Nirma,
Patanga
f
Extensively available -> Colgate
42. â Consumers are aware about particular brands which they are using
for generation and they are rigid about consuming
â Customers buy the brands that are easily available in nearby retail
stores
â They go for tried and tested products
5
6
Prefer small packaged products (sachets) and the
frequency of purchase is high
43.
44. Accessibility
⢠Dedicated fleet of company
representatives assigned
to each village or group of
village
⢠Increased rural
distribution network
Awareness
⢠Conditional Learning
⢠Free sample and
promotion material
through post man
⢠Association of market
campaigns with
regional customs and
festivals (E.g. Mortein)
Acceptability
⢠Color psychology
⢠Influence customers in age
group 5 to 20 years
⢠Brand names and logos in
regional language
⢠Continuous package
upgradation
Affordability
⢠Smaller packaging â
tailor made products
45. 45
⢠Census- 2011
⢠http://niti.gov.in/writereaddata/files/document_publica
tion/Rural_Economy_DP_final.pdf
⢠âThe changing profile of rural consumersâ -Business
Standard Article, Sanjay Dawar, 2015
⢠Rural Marketing- Environment, Problems and
Startegies- T P Gopalaswamy
⢠Introduction to Rural Marketing- R. Krishnamoorthy
⢠New perspectives in Rural & Agriculture Marketing-
Ramkishen Y.