Rural Marketing


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Rural Marketing

  1. 1. RURAL MARKETING PROJECT-2 A RESEARCH REPORT ON “STUDY OF SMALL TOWN, GURDASPUR” SUBMITTED TO: SUBMITTED BY: Prof. S.SURESH Harshal Dhotra(11609147) Parth Bhasin (11609035) Rishabh Dogra (11609171) Nishant kaushik(11609034) Shubhi Kumari (11609054) Soumya (11609056) Rahul Chandna(11609105) Tarun Thakur (11609059) Rohit Sharma (11609173)
  2. 2. Part -A SMALL TOWN-“GURDASPUR”Gurdaspur is a city in the state of Punjab, situated in the northwest part of the Republic ofIndia. It is located in the center of and is the administrative head of Gurdaspur District. TheGurdaspur city, situated on the Amritsar – Jammu National Highway Road, 36 km fromPathankot and 32 km from Batala is the district headquarter. All head offices of variousdepartments are situated in this city. The India-Pakistan border is at a distance of 10 km fromGurdaspur. The river Beas flows on one side and the river Raavi flows on the other side ofGurdaspur.AreaTotal area of the district is 2610 Sq.Km. It Consist of 3 Tehsils, 8 Sub-tehsils &11 blocks
  3. 3. Tehsil Sr.No. Subdivision Inhabited Uninhabited Area Population Density /Tehsil Villages Villages (Sq Per Sq Km .Kms) 1. Gurdaspur 679 37 1369 744092 544 3. Batala 347 5 936 618105 660 3. Dera Baba 131 6 305 115660 379 Nanak Total 1157 48 2610 2299026 566Sub Tehsils (Total: 8) Sr. No. Sub Tehsil Name 1. Kahnuwan 2. Kalanaur 3. Sri Hargobindpur 4. Qadian 5 Dinanagar 6. Fatehgarh Churian 7. Dhariwal 8. Naushera Majha Singh
  4. 4. C.D.Blocks (Total: 11) Sr. No. Block Name 1. Gurdaspur 2. Kalanaur 3. Dhariwal 4. Kahnuwan 5. Dinanagar 6. Batala 7. Fatehgarh Churian 8. Dera Baba Nanak 9. Sri Hargobindpur 10. Qadian 11. DoranglaLocationThe Gurdaspur district is the northern most district of Punjab state. It falls in the Jalandhardivision and is sandwiched between river Ravi and Beas. The district lies between north-latitude 310-36 and 320-34 and east longitude 740-56 and 750-24 and shares commonboundaries with Pathankot district in the north, Beas River in the north-east, Hoshiarpurdistrict in the south-east, Kapurthala district in the south, Amritsar district in the south westand Pakistan in the north west.DemographicsPopulation Statistics Sex Total Population Urban Rural Literacy No of Literate persons Male 1212995 502508 1796517 1041962 (85.90%) Female 1086031 228066 857964 822125 (75.70%) Total 2299026 320316 1157541 1864510 (81.10%)
  5. 5. Female Per Thousand Males: 904S.C Population: 335078 (22.67 % of Distt.) a. Rural 141523 b. Urban 203161Panchayats: 1260According to the 2011 India census, Gurdaspur had population of 2,299,026 of which malesand females were 1,212,995 and 1,086,031 respectively. There was an increase of 9.30percent in the population compared to the population in 2001. In the previous census of India2001, Gurdaspur District recorded increase of 19.74 percent as compared to its population in1991.The average literacy rate of Gurdaspur in 2011 was 81.10 per cent, as compared to 73.80 percent in 2001. The male and female literacy rates were 85.90 and 75.70 respectively. For 2001census, same figures stood at 79.80 and 67.10 in Gurdaspur District. The total literatepopulation in Gurdaspur District was 1,668,339 of which males and females were 928,264 and740,075 respectively.TransportRailGurdaspurs railway station in connected with nearest station pathankot and Amritsar.Fromgurdaspur there are many trains from pathankot to amritsar and two mail trains jammutawi(jammu to tata nagar)and pathankot-Delhi express. There is a daily train from Dera BabaNanak to AmritsarRoadGurdaspur is well connected with road network: National Highway 15 (NH 15) is a majorNational Highway in Western and Northwestern India. NH 15 connects Kandla in Gujarat withGurdaspur in Punjab. This 1,526 km (948 mi)-long highway passes through Gurdaspur,Amritsar, Tarn Taran Sahib, Zira, Kotkapura, Bhatinda, Ganganagar, Bikaner, Jaisalmer andBarmer. At Bikaner the National Highway 11 terminates on this Highway. Of its total length of1,526 km (948 mi), the National Highway 15 traverses 350 km (220 mi) in Punjab, 906 km (563mi) in Rajasthan, and 270 km (170 mi) in Gujarat. Also connected Gurdaspur to Jammuthrough bmial, kathua, and also connected with NH 1A through Gurdaspur, Mukerian andGurdaspur Shri Hargobind State Highways.
  6. 6. EducationGeneral Education Type of Institution No. Arts & Science Colleges 16 High/Hr./Sr. Secondary Schools 221 Middle School 250 Primary Schools 1137Professional Colleges Profession College Type No. Engineering College 1 Polytechnic 1 Hotel Management 1 I.T.Is 7 B.Ed. college 7 E.T.T. 1 Brand awareness and preferencesA decade back to come across a branded apparel outlet in Tier II and III cities and towns wasquite a novelty, but now established beauty salons, restaurants etc have also become acommon sightFranchising has brought about a revolution in the Indian market scenario. Till the recent pastorganized brands used to have their presence only in the metros and big cities. However, asresult of changing scenario, mostly all established, retail as well as service brands are nowforaying into smaller cities and towns. This is a calculated step taken by retailers andfranchisors after seeing the tremendous potential in such markets.Small towns attracting big service brandsTill a few years back the thought of opening an outlet in any tier III city would have led to thenightmares to the big organized retailers. Today with the changing lifestyle of people living insmaller cities and towns as a result of television and internet, it is quite common to see peoplewearing branded apparel, footwear and including branded products in their daily routine.Following the success of product franchising brands, service brands have also ventured intosuch locations. As informed by Shahnaz Husain, Founder and Chairperson, Shahnaz HusainGroup: “Thanks to television and commercial advertising, the awareness of global trends,consumer products and brands has extended to smaller towns. In certain categories like
  7. 7. beauty even people in smaller towns are quite brand conscious. Therefore, big brands want toventure into smaller towns.”Factors for this growing trendSome of the factors attributing to this development are: Rising living standards: The increased disposable income, brand consciousness, and love for better living standards has led to large number of people preferring to visit branded beauty salons or restaurants. Recognizing brand value: People living in small towns have now acknowledged the value for brand and can easily distinguish it from local brand. Earlier it was considered wastage of money to visit an expensive salon but now they are ready to experience best services at best price.Increased awarenessYouth from smaller towns these days go to metros for higher education. They visit big eatingplaces and salons but the unavailability of such brands in their home towns creates littledisappointment for them. Recognizing this discomfort, franchisors ventured into small towns.Successful service categoriesAll retail as well as service brands may not achieve equal success. Small towns and cities havepeople who generally prefer buying reasonably priced articles. Therefore outlets of luxurybrands do not generally work. Mostly it is the f&b and beauty industry which has made a markin small areas.Food and beverages: F&B brands have found success in the smaller towns. Increasing numberof middle class patrons in smaller towns also prefer to spend a few extra pennies on hygienicand standard restaurants, rather than going to the local eating places. Mc Donald has statedspreading out to smaller cities with the aim to tap the local potential. There is ample dine-inspace made available to customers to sit and enjoy the meals.Beauty salonsAnother category that is doing well in smaller cities and towns are the beauty salons. Withmen and women, even of Tier II and III cities getting more conscious of their looks, the beautybrands have made inroads in such locations. As informed by Husain: “We have franchisesalons in smaller towns and cities, like Faizabad, Fairdabad, Saharanpur, Durgapur, Dehradun,Jammu, Nasik, Asansol and many many more.”Pre-school chainsHaving successfully, expanded in metros and big cities pre-school chains are exploringprospects in small cities and towns. Recognizing the necessity of good education for allirrespective of earning power of the parents’ lot of education franchisors are looking forfranchisees in small cities and towns.Pathology labsAs it is very difficult for people living in small towns and cities to visit big cities and metros toget their diseases diagnosed accurately franchisors dealing in Pathology services are offeringfranchisees in Pathology lab services. Dr Lal Pathlabs have ventured into smaller towns to dealwith this growing need.
  8. 8. Future prospectsThe future holds bright for small areas. Both national and international brands are paving waytowards these potential market places. As said by Husain: “Our future plans do includeexpansion in smaller cities. Moreover, we are always open to the extension of our franchisesalons and franchise beauty training academies. Girls from smaller towns and cities come tostudy at our beauty academy, with the aim of opening franchise salons.”To conclude it can be said that service franchising is on the rise not only in metros but also insmall cities. Youth from smaller cities with an entrepreneurial zeal can surely reap long timebenefits by taking a franchise of any established brand.Consumer behavior in small townSmall town India (towns of 10 lakh and below) contributes to 38 percent of the Indian FMCGmarket today; their growth contribution is even larger. The demand pull is strongest in thesmallest of the Indian towns where people want to shop in style like in the metros. Out of 83FMCG products, the middle India towns (population of 1-10 lakh) saw a 10 percent growth insame-store sales in 42 products against smaller towns (less than one lakh population) clockingsame growth in 53 products. A quick look at the report and it becomes very evident that thetaste of smaller towns in FMCG products is going through a strategic change, showingsophistication in their living style. Smaller towns which largely consume unpacked foodproducts and home-made pickles saw an increase in demand for packaged rice, jams, jelly andmarmalades. Products with which we do not associate smaller towns, like hair conditioners,after shave lotions, etc. also saw a growth in sales. The reason smaller towns are spendingmore on high-end products is due to the increase in durable income of the Indian middle class.The other factor driving the demand is the increase in shopping malls and one-stop shops insmaller towns. Malls definitely make the shopping experience better and luxurious, luringshoppers to purchase more and more products.
  9. 9. PART BNumber and characteristics of village closely linked to the town the villages that we hadsurveyed which were close to the Gurdaspur town were Babowal, Paniar,Malikpur,Tibri.Village areas:Agriculture& private service such as Small kiryana stores are the primary occupation atrespective villages Babowal, Paniar,Malikpur,Tibri and head of the family is the key decisionmaker. Brand awareness is quite low in all the areas.City areaOccupation is mostly own business and government jobs. People are brand conscious.Individual as well as head of the family both act as decision makers in day to day choices.Source of entertainment: Consumers in Gurdaspur also look to spend more on leisureactivities as incomes rise. Today not many options are at their disposal. Selective investmentsin customized and affordable entertainment options can yield big dividends in the next fewyears for companies dealing in entertainment and hospitality. Movie theaters that are a stepabove the single-screen theaters currently prevalent in most of these towns can encouragefamily movie outings and unlock a huge opportunity for the entertainment segment. For nowthere are around 4 recreational parks in town.Place for agricultural linkages: BABRI village, Babehali village, Galri village, etc.Agriculture Statistics Sr.No. Statistics Unit / % 1. Net Area Sown 258000 Hect 2. Area Sown More Than Once 245000 Hect. 3. Total Cropped Area 503000 Hect. 4. %age of Gross Irrigated to Gross Cropped Area. 88.43 5. %age of Net Irrigated Area to Net Area Sown. 84.02 6. %age of Net Irrigated Area to Net Area Sown for Wheat 100%. 7. %age of Net Irrigated Area to Net Area Sown for Rice 100%. 8. %age of Net Irrigated Area to Net Area Sown for Sugarcane 100%. 9. Production Wheat 917000 MT Rice 648000 MT Sugarcane 150000 MT Yield Wheat 4070 Kg/Hect. Rice 3223 Kg/Hect. Sugarcane 6260 Kg/Hect. 10. Intensity of cropping 175 11. Consumption of fertilizers 121816 Nutrients Tons
  10. 10. Servicing Centre: Mostly located in city area and few of them are: Hero Service Centre Maruti Service Centre Bajaj Service Centre Nokia Service Centre Samsung Service CentreSelling and Redistribution Centre:Gurdaspur serves as a redistribution center for a set of products through warehouses or otherspecialized building, often with refrigeration or air conditioning, where products are stockedto be redistributed to retailers, to wholesalers, or directly to consumers. A distribution centeris a principal part, the order processing element, of the entire order fulfillment process.Distribution centers are usually thought of as being demand driven. A distribution center canalso be called a warehouse, a DC, a fulfillment center, a cross-dock facility, a bulk breakcenter, and a package handling center. The name by which the distribution center is known iscommonly based on the purpose of the operation.For agriculture products: Traditional Mandi and small kiryana shops in every ward.For consumer durables: Showrooms and shopsFor food and beverages: Kiryana and small departmental store. Easy day is gaining marketshare
  11. 11. Part –CIs FDI In Retail A Good Idea?Foreign direct investment is an investment made to acquire lasting interest in enterprisesoperating outside of the economy of the investor. And retail could be defined as ‘selling ofgoods to the end consumer for final consumption’. In India, retail sector is expected to grow atsignificant rate in coming few years. The total size of Indian retail sector, including organizedand unorganized sector, is $300 billion, where currently the organized sector accounts for 4%only. It contributes about 14% to the national GDP and employing 8% of the total workforce,second only to agriculture in the country. An estimated 40 million Indians work in retailoutlets. India is the second most attractive destination for retail among thirty emergingnations, making it 5th most desired retail destination in World.The large retail stores create numerous opportunities in retail, supply chain, transportationand logistics, marketing and advertising and merchandizing. Developing countries with arelatively younger population needs to create millions of jobs and retail FDI hopes to be anenabler towards this direction. The quality of jobs will not be of the same breath as R&D andTechnology jobs, but it definitely meets need of the masses for which a job is currentlybeyond reach. Big Bazaar, Pantaloons and Westside have opened showrooms creating jobavenues for those who would have never worked in the organized sector. Much has beentalked about big retail stifling entrepreneurship among the masses. However, the reality isvery different. Mom and pop stores pay a pittance to the employees and often exploitchildren to keep costs down. Work conditions are also worse than in organized retail. Everyopportunity comes with a cost. In this case, retail stores will be impacted but will be off-setwith job creations and infrastructural development in the supply chain.Retail sector will continue to expand to a multi-billion dollar sector. It holds promise forcreating large number of jobs. FDI in retail will bring in needed funding to develop the sectorand intensify competitions which will eventually benefit the end consumer. The governmentwill have to ensure adequate mechanisms are built in to protect the interests of theemployees, farmers from whom retail giants will procure and the environment as it is realestate, power and transport intensive. Permitting foreign investment in agricultural retailing islikely to ensure adequate flow of capital into rural economy in a manner likely to promote thewelfare of all sections of society, particularly farmers and consumers. It will bring aboutimprovements in farmer income and agricultural growth and assist in lowering consumer priceinflation Policy makers can insert the necessary clauses to protect national interests. The needof the hour is to create jobs for the millions joining the workforce and retail can definitelycontribute towards this goal
  12. 12. FINAL ANALYSISAnalysis: A major proportion of the respondents disagree with the statement, whereas there are large numbers of respondents who also agree with the above statement. Analysis: More than half of the respondents agree with the above statement and a very number disagree that food processing and storage process will improve.
  13. 13. Analysis: It is very important to ensure that the supplies reaches the store in good condition and ontime, while conducting the survey a major proportion agreed with the statement and another significant part remained indifferent, .i.e. neither agreed nor disagreed. Analysis: Most of the respondents agree with the above statement and a negligible number of respondents disagree with the statement.
  14. 14. Analysis: There is a 7:3 ratio of people agreeing with this statement and people disagreeing with the above statement. 70% of the respondents in the survey agree with the statement and the rest 30% disagreed with the above statement.Analysis: More than 50% of the people neither agree nor disagree with the above statement, and others are almost equally divided into the ones who agree and who disagree.
  15. 15. Analysis: A major part of the sample agrees that the foreign retailers will follow unethical practices. Analysis: Price rise will be under control, there is an equal proportion of the sample agreeing anddisagreeing with this statement. Also a negligible part of the sample neither agrees nor disagrees with the statement.