FINAL YEAR PROJECT REPORT PGDM 2011 – 2013 Title of the Project :- Study on Rural Marketing With Special Emphasis on Customer Preference For HUL in Rural IndiaPresented To:- Prof. (Dr.) Ekta Rastogi Presented By:- Sudhir Singh Rajput
Definition of RuralOrganization Definition of Rural Limitation • Several hamlets demarcated by physical boundaries The term “rural” is • Towns are urban areas that satisfy: not defined, nor is Census Minimum population 5,000 the upper limit of Population density > 400 per sq. Km. population for 75% of the male population engaged in villages non-agricultural activities Widening of • Similar to Census except that the definition allows a IRDA percentage for male population in towns is larger market to be 25% and not 75% considered as rural Rural: All locations with a population of up to 10,000 Distinction defined RBI Semi-urban: All locations with a population only by population between 10,000 and 100,000
Definition of RuralOrganization Definition of Rural Limitation Planning Towns with population up to 15,000 are Town characteristics Commission considered rural not defined Locations with shops/commercial Town or village Sahara establishments up to 10,000 characteristics not population. defined All population centres other than the 7 Population criteria isLG Electronics metros are considered rural or semi- not considered urban
Type Public Industry Consumer Goods Founded 1932Headquarters Mumbai, Maharashtra, India Products Food, Beverages, Personal Care Products and Cleaning Agents Key People Harish Manwani (Chairman) Nitin Paranjpe (CEO & MD) Employees 16,500 (2011) Parent Uniliver Plc (52%)Net Income 26.91 Billion Rupees(2012–13) Website www.hul.co.in
About the Company :- HUL HUL is the market leader in Indian consumer products withpresence in over 20 consumer categories such as soaps, tea,detergents and shampoos amongst others with over 700 millionIndian consumers using its products. The Anglo-Dutch company Unilever owns a majority stake inHindustan Unilever Limited. Hindustan Unilevers distribution covers over 2 million retailoutlets across India directly and its products are available in over6.4 million outlets in the country. As per Nielsen market research data, two out of three Indiansuse HUL products.
Rural Marketing Mix The 4 Ps of marketing –Product, Price, Place and Promotion – replaced by 4 As in rural markets Affordability Availability Awareness Acceptability
MARKETING STRATEGIES OF HUL FOR RURAL INDIA For long term benefits, HUL started Project Streamline in 1997. Appointed 6000 Sub-stockists that directlycovers about 50,000 villages & 250 millioncustomers. Integrate Economic, Environment & Social objectiveswith Business agenda. Project Shakti, partnership with Self help groups of Rural women & covers 5000 villages in 52 districts in different states.
EVERYDAY I WILL SELL. EVERYDAY I WILL EARN. MONEY, RESPECT Started in 2001, Shakti is HULs rural initiative, which targetssmall villages with population of less than 2000 people or less.micro-enterprise opportunities for rural womenProviding health n hygiene education through shaktivani programShakti has already been extended to about 15 states ,80,000villages in with 45,000 women entrepreneurs and generatingRs.700-1000 per month to each women. 1
To analyze the present promotional strategy of rural brands (HUL) in rural markets.To measure the success of rural marketing campaign of the brands (HUL) in terms of consumer appreciation.To analyze the market opportunity and potential for existing and new entrants in the rural market.To evaluate the effects of adopting the specific brand ambassadors in the rural marketing context.
Research Methodology The following sites had been identified and surveyed:Uttar Pradesh (Unnao District) a) Asha Kheda b) Babakheda c) Nawabganj d) Sohramau e) Banthara
Research Methodology Random sampling was done for interview of the respondents in every village.A sample of 4 respondents per village was interviewed. The research was carried out for a period of 30 days from 17th February to 17th March 2013. The total sample collected was 20 respondents.
Research Methodology Data Collection Primary Data had collected through personal contact. For this purpose both Questionnaire and one-on-one interview was considered with the consumers. Secondary data had collected from magazines, newspaper, company literature and Websites.
Research Methodology Research Approaches Survey Research Observational Research Close-Ended Questions Analysis Methods Percentage method Methods of research data presentation Tabular forms Graphs Description
Mostly four modes of communications were used by the companies in the rural areas.Rural people wanted the promotion to be more focused on the usage and need of the product. Brand Ambassadors are the most important part of promotions, in the FMCG promotions by celebrities is very common. The rural India has that huge potential market that can drive the whole nation.
FINDINGS Modes of Promotion Companies are Using electronics media 15% direct contact 28% print media 20% compaigns 37%
FINDINGS PROMOTION FOCUS UPON BRAND COMPITITOR AMBASSDOR 25% 35% PRICE NEED 19% 9% UTILITY 12%
FINDINGS Area of Promotion Should Change PRICE, 24% COMMUNICATI ON , 26% SPECIFICITY, 12% AMMBASDOR, 1 3% UTILITY, 25%
RECOMMENDATIONS HUL should focus more on the utility of the products while promoting in the rural areas. The life-style of these people is different from those in the urban areas. HUL should provide full information in the rural promotions starting for the need, utility, availability, price and the pack sizes available.
RECOMMENDATIONSBrand ambassadors should be relevant to theproduct and must look like he/she would be using the product in the daily life style. HUL should have separate strategies for rural as well as urban markets and should take care of addressing the needs of the rural people in their promotions.
LIMITATIONS The sample size may not adequately represent the national market.The duration of the project work was short enough to allow the full exposure. Many Individuals were not interested in answering the questions. Lack of Research Experience.