1. The document discusses consumer behavior and brand preferences in rural India, specifically regarding fast moving consumer goods (FMCG).
2. Rural incomes are rising and lifestyles changing, creating major opportunities for FMCG companies in rural markets, which now account for around half of India's FMCG consumption.
3. Companies need innovative rural marketing strategies that consider differences between rural and urban consumers and variations within rural regions.
Review of Rural Marketing in India and Innovations in Rural MarketingDr. Amarjeet Singh
The aim of this research is to study the current scenario of Rural Marketing in India, the rural market presents with its various opportunities and challenges, given how diversely populated the rural consumers in India are. The rural market consists of 83.3 crore people and this is what attracts marketers to enter in this market. To market in the territory of rural marketing corporations must understand the rural consumer. There is a shift incoming from urban to the rural marketing as the development and levels of literacy and awareness among the rural consumers is rising and these consumers want value for their money. Marketers when catering to rural consumers need to connect with them and also undertake demonstrations for the better understanding of the rural people. Many innovations in the strategy to market into the rural markets have been undertaken in the past years. This paper aims to understand these innovations and strategies and to understand the rural consumer of India. The future of rural marketing and the development in rural areas is promising in development of rural economies and for the people living in these rural areas a better life.
Rural India is characterized by low per capita income, low productivity, low literacy and low rate of industrialization along with absence of basic amenities. The unprivileged class is set back by a lack of educational opportunities that could empower them to confidently pursue economic progress and overcome the debilitating effects of low literacy and rigid social hierarchies. India’s rural markets are growing at double the rate of urban markets. The retail revolution is going to act as a catalyst. So, the new concept that is hitting the market today is the "Rural Retailing".
Review of Rural Marketing in India and Innovations in Rural MarketingDr. Amarjeet Singh
The aim of this research is to study the current scenario of Rural Marketing in India, the rural market presents with its various opportunities and challenges, given how diversely populated the rural consumers in India are. The rural market consists of 83.3 crore people and this is what attracts marketers to enter in this market. To market in the territory of rural marketing corporations must understand the rural consumer. There is a shift incoming from urban to the rural marketing as the development and levels of literacy and awareness among the rural consumers is rising and these consumers want value for their money. Marketers when catering to rural consumers need to connect with them and also undertake demonstrations for the better understanding of the rural people. Many innovations in the strategy to market into the rural markets have been undertaken in the past years. This paper aims to understand these innovations and strategies and to understand the rural consumer of India. The future of rural marketing and the development in rural areas is promising in development of rural economies and for the people living in these rural areas a better life.
Rural India is characterized by low per capita income, low productivity, low literacy and low rate of industrialization along with absence of basic amenities. The unprivileged class is set back by a lack of educational opportunities that could empower them to confidently pursue economic progress and overcome the debilitating effects of low literacy and rigid social hierarchies. India’s rural markets are growing at double the rate of urban markets. The retail revolution is going to act as a catalyst. So, the new concept that is hitting the market today is the "Rural Retailing".
India is a developing country. Today 65% of India’s population is living in rural areas, and today their purchasing needs are witnessing a change. Today there is a huge opportunity in the retail sector due to FDI clearances in retail and only a good vision is required.
This presentation deals with changing scenario of retail in rural sector .Other part of presentation covers various challenges and optimum strategies for the rural sector. A ray of light have also been thrown on few successful models such as ITC’s Choupal Saagar, DCM’s Hariyali Kisaan Bazaar, Triveni Khushali Bazaar, Future group and Godrej’s joint venture Aadhar etc.
Opportunities and challenges in indian rural marketSAMEER LAKHANI
To study the current scenario of Rural Market in India
To study the scope, need & features of Rural Market in India
To study the reasons why Rural Markets are becoming important destination for Marketing companies
To study the reasons for greater business confidence in Rural India
To study the innovative practices adopted in Rural Market
To study the major Challenges faced by Marketers in Rural Market
To identify major opportunities available in Rural Market
To find the strategies for improving business in Rural India
Rural Retail Options – Traditional Vs EmergingRajesh Aithal
This is from a paper which I had written some time back trying to trace out the various retail options which are available in Rural India. The traditional ones are tried and tested, but the new emerging ones should be of equal interest to a marketer wanting to enter rural India.
“Retailing includes all activities involved in selling goods or services directly to final consumers for personal , non business use.” - Philip Kotler
70% population lives in villages
About 6 lakh villages are in India
Rural retail are growing @7%
A real source of energy
Hub of raw materials
Marketing To The Rural Sector In New Zealand Using Social MediaMoshSocialMedia
Developing relationships within the rural sector via social media.
This course was packed with practical exercises reinforcing the basic principles and concepts of social media, with a focus on how to increase engagement with the rural sector.
You need to understand where to invest your time and resources in order to nurture your social media community. What platforms should you be using? What type of content is going to engage your audience?
● Overview of the major platforms. Which platforms should you be investing in? Facebook, LinkedIn, Instagram, YouTube, Google+, Pinterest, Twitter, Snapchat?
● Setting objectives and creating focus. Having a purpose rather than just ‘being’ on social media
● Social media etiquette/protocols
● Content:
- Balance: creation, curation and reaction
- The social media ‘equity’ philosophy: branding vs being helpful vs selling
● How to create a content development framework
● Using advertising to reach your audience don’t be afraid to ‘Pay to Play’
● Measuring success. How to work out your ROI.
India is a developing country. Today 65% of India’s population is living in rural areas, and today their purchasing needs are witnessing a change. Today there is a huge opportunity in the retail sector due to FDI clearances in retail and only a good vision is required.
This presentation deals with changing scenario of retail in rural sector .Other part of presentation covers various challenges and optimum strategies for the rural sector. A ray of light have also been thrown on few successful models such as ITC’s Choupal Saagar, DCM’s Hariyali Kisaan Bazaar, Triveni Khushali Bazaar, Future group and Godrej’s joint venture Aadhar etc.
Opportunities and challenges in indian rural marketSAMEER LAKHANI
To study the current scenario of Rural Market in India
To study the scope, need & features of Rural Market in India
To study the reasons why Rural Markets are becoming important destination for Marketing companies
To study the reasons for greater business confidence in Rural India
To study the innovative practices adopted in Rural Market
To study the major Challenges faced by Marketers in Rural Market
To identify major opportunities available in Rural Market
To find the strategies for improving business in Rural India
Rural Retail Options – Traditional Vs EmergingRajesh Aithal
This is from a paper which I had written some time back trying to trace out the various retail options which are available in Rural India. The traditional ones are tried and tested, but the new emerging ones should be of equal interest to a marketer wanting to enter rural India.
“Retailing includes all activities involved in selling goods or services directly to final consumers for personal , non business use.” - Philip Kotler
70% population lives in villages
About 6 lakh villages are in India
Rural retail are growing @7%
A real source of energy
Hub of raw materials
Marketing To The Rural Sector In New Zealand Using Social MediaMoshSocialMedia
Developing relationships within the rural sector via social media.
This course was packed with practical exercises reinforcing the basic principles and concepts of social media, with a focus on how to increase engagement with the rural sector.
You need to understand where to invest your time and resources in order to nurture your social media community. What platforms should you be using? What type of content is going to engage your audience?
● Overview of the major platforms. Which platforms should you be investing in? Facebook, LinkedIn, Instagram, YouTube, Google+, Pinterest, Twitter, Snapchat?
● Setting objectives and creating focus. Having a purpose rather than just ‘being’ on social media
● Social media etiquette/protocols
● Content:
- Balance: creation, curation and reaction
- The social media ‘equity’ philosophy: branding vs being helpful vs selling
● How to create a content development framework
● Using advertising to reach your audience don’t be afraid to ‘Pay to Play’
● Measuring success. How to work out your ROI.
Dear Students
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Presentation by Dr. Jane Ives, Director, Global Grameen & NGO Student Internship Program, Thunderbird School of Global Management, 29Oct2009, Lokey Graduate School of Business, Mills College
View the video: http://vimeo.com/7925115
Presentación de Hans Embacher, Gerente de Farm & Holidays (Austria), sobre Branding en Turismo Rural / Green Tourism, que tuvo lugar el 21 de febrero de 2013 durante la celebración del IV Congreso Internacional de Turismo Rural Reyno de Navarra en Pamplona.
742 million Indians constituting 138 million households reside in 6, 38,365 villages (Census, 2001). the size of rural market itself speaks of its potential.The current marketing environment and economic scenario have brought the corporate under contemporary roofs of modern India, which is challenging the current standards of segmenting, targeting and reaching the customers. Realistically, India as a nation has come a long way from the place where only urban population which constitutes 20 per cent of customer base for companies are responsible for 80 per cent of their profits. Also rural markets have acquired significance, as the overall growth of economy has resulted into substantial increase in the purchasing power of the rural communities. A survey by India's premier economic research entity, National Council for Applied Economic Research (NCAER) indicates that rise in rural incomes is keeping pace with the rise in urban incomes.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Indian rural market- Gold under the beneath of IndiaMohammed Mohsin
This article is written by me with the help of some reference about Indian rural market scenario which is untapped for the years after venturing big FMCG companies in rural areas they got to know the potential of Rural market in India as half of population is residing in Rural area only. I had talked about my Grandfather how he came from Mumbai to Open a Organised Store in Village of U.P and Tapped the potential.
Educaterer India is an unique combination of passion driven into a hobby which makes an awesome profession. We carve the lives of enthusiastic candidates to a perfect professional who can impress upon the mindsets of the industry, while following the established traditions, can dare to set new standards to follow. We don't want you to be the part of the crowd, rather we like to make you the reason of the crowd.
Today's Effort For A Better Tomorrow
It's another new era of digital and marketers are faced with making big bets on their digital strategy. If you are looking at modernizing your tech stack to support your digital evolution, there are a few can't miss (often overlooked) areas that should be part of every conversation. We'll cover setting your vision, avoiding siloes, adding a democratized approach to data strategy, localization, creating critical governance requirements and more. Attendees will walk away with actions they can take into initiatives they are running today and consider for the future.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Valters Lauzums
E-commerce in 2024 is characterized by a dynamic blend of opportunities and significant challenges. Supply chain disruptions and inventory shortages are critical issues, leading to increased shipping delays and rising costs, which impact timely delivery and squeeze profit margins. Efficient logistics management is essential, yet it is often hampered by these external factors. Payment processing, while needing to ensure security and user convenience, grapples with preventing fraud and integrating diverse payment methods, adding another layer of complexity. Furthermore, fulfillment operations require a streamlined approach to handle volume spikes and maintain accuracy in order picking, packing, and shipping, all while meeting customers' heightened expectations for faster delivery times.
Amid these operational challenges, customer data has emerged as an important strategy. By focusing on personalization and enhancing customer experience from historical behavior, businesses can deliver improved website and brand experienced, better product recommendations, optimal promotions, and content to meet individual preferences. Better data analytics can also help in effectively creating marketing campaigns, improving customer retention, and driving product development and inventory management.
Innovative formats such as social commerce and live shopping are beginning to impact the digital commerce landscape, offering new ways to engage with customers and drive sales, and may provide opportunity for brands that have been priced out or seen a downturn with post-pandemic shopping behavior. Social commerce integrates shopping experiences directly into social media platforms, tapping into the massive user bases of these networks to increase reach and engagement. Live shopping, on the other hand, combines entertainment and real-time interaction, providing a dynamic platform for showcasing products and encouraging immediate purchases. These innovations not only enhance customer engagement but also provide valuable data for businesses to refine their strategies and deliver superior shopping experiences.
The e-commerce sector is evolving rapidly, and businesses that effectively manage operational challenges and implement innovative strategies are best positioned for long-term success.
10 Video Ideas Any Business Can Make RIGHT NOW!
You'll never draw a blank again on what kind of video to make for your business. Go beyond the basic categories and truly reimagine a brand new advanced way to brainstorm video content creation. During this masterclass you'll be challenged to think creatively and outside of the box and view your videos through lenses you may have never thought of previously. It's guaranteed that you'll leave with more than 10 video ideas, but I like to under-promise and over-deliver. Don't miss this session.
Key Takeaways:
How to use the Video Matrix
How to use additional "Lenses"
Where to source original video ideas
Top 3 Ways to Align Sales and Marketing Teams for Rapid GrowthDemandbase
In this session, Demandbase’s Stephanie Quinn, Sr. Director of Integrated and Digital Marketing, Devin Rosenberg, Director of Sales, and Kevin Rooney, Senior Director of Sales Development will share how sales and marketing shapes their day-to-day and what key areas are needed for true alignment.
Financial curveballs sent many American families reeling in 2023. Household budgets were squeezed by rising interest rates, surging prices on everyday goods, and a stagnating housing market. Consumers were feeling strapped. That sentiment, however, appears to be waning. The question is, to what extent?
To take the pulse of consumers’ feelings about their financial well-being ahead of a highly anticipated election, ThinkNow conducted a nationally representative quantitative survey. The survey highlights consumers’ hopes and anxieties as we move into 2024. Let's unpack the key findings to gain insights about where we stand.
The session includes a brief history of the evolution of search before diving into the roles technology, content, and links play in developing a powerful SEO strategy in a world of Generative AI and social search. Discover how to optimize for TikTok searches, Google's Gemini, and Search Generative Experience while developing a powerful arsenal of tools and templates to help maximize the effectiveness of your SEO initiatives.
Key Takeaways:
Understand how search engines work
Be able to find out where your users search
Know what is required for each discipline of SEO
Feel confident creating an SEO Plan
Confidently measure SEO performance
How to Run Landing Page Tests On and Off Paid Social PlatformsVWO
Join us for an exclusive webinar featuring Mariate, Alexandra and Nima where we will unveil a comprehensive blueprint for crafting a successful paid media strategy focused on landing page testing.With escalating costs in paid advertising, understanding how to maximize each visitor’s experience is crucial for retention and conversion.
This session will dive into the methodologies for executing and analyzing landing page tests within paid social channels, offering a blend of theoretical knowledge and practical insights.
The Pearmill team will guide you through the nuances of setting up and managing landing page experiments on paid social platforms. You will learn about the critical rules to follow, the structure of effective tests, optimal conversion duration and budget allocation.
The session will also cover data analysis techniques and criteria for graduating landing pages.
In the second part of the webinar, Pearmill will explore the use of A/B testing platforms. Discover common pitfalls to avoid in A/B testing and gain insights into analyzing A/B tests results effectively.
Videos are more engaging, more memorable, and more popular than any other type of content out there. That’s why it’s estimated that 82% of consumer traffic will come from videos by 2025.
And with videos evolving from landscape to portrait and experts promoting shorter clips, one thing remains constant – our brains LOVE videos.
So is there science behind what makes people absolutely irresistible on camera?
The answer: definitely yes.
In this jam-packed session with Stephanie Garcia, you’ll get your hands on a steal-worthy guide that uncovers the art and science to being irresistible on camera. From body language to words that convert, she’ll show you how to captivate on command so that viewers are excited and ready to take action.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
Search Engine Marketing - Competitor and Keyword researchETMARK ACADEMY
Over 2 Trillion searches are made per day in Google search, which means there are more than 2 Trillion visits happening across the websites of the world wide web.
People search various questions, phrases or words. But some words and phrases are searched
more often than others.
For example, the words, ‘running shoes’ are searched more often than ‘best road running
shoes for men’
These words or phrases which people use to search on Google are called Keywords.
Some keywords are searched more often than others. Number of times a keyword is searched
for in a month is called keyword volume.
Some keywords have more relevant results than others. For the phrase “running shoes” we
get more than 80M relevant results, whereas for “best road running shoes for men” we get
only 8.
The former keyword ‘running shoes’ has way more competition from popular websites to
new and small blogs, whereas the latter keyword doesn’t have that much competition. This
search competition for a keyword is called search difficulty of a keyword or keyword
difficulty.
In other words, if the keyword difficulty is ‘low’ or ‘easy’, there won’t be any competition
and if you target such keywords on your site, you can easily rank on the front page of Google.
Some keywords are searched for, just to know or to learn some information about something,
that’s their search intention. For example, “What shoe size should I choose?” or “How to pick
the right shoe size?”
These keywords which are searched just to know about stuff are called informational
keywords. Typically people who are searching this type of keywords are top of a Conversion
funnel.
Conversion funnel is the journey that search visitors go through on their way to an email
subscription or a premium subscription to the services you offer or a purchase of products
you sell or recommend using your referral link.
For some buyers, research is the most important part when they have to buy a product.
Depending on that, their journey either widens or narrows down. These types of buyers are
Researchers and they spend more time with informational keywords.
Conversion is the action you want from your search visitors. Number of conversions that you
get for every 100 search visitors is called Conversion rate.
People who are at different stages of a conversion funnel use different types of keywords.
Digital marketing is the art and science of promoting products or services using digital channels to reach and engage with potential customers. It encompasses a wide range of online tactics and strategies aimed at increasing brand visibility, driving website traffic, generating leads, and ultimately, converting those leads into customers.
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1. 1
A Study of Consumer Behavior Aspects and Brand Preferences in Rural India with
Reference to FMCG Sector
Prof. (Dr.) S L Gupta & Arun Mittal
Abstract
The Fast Moving Consumer Goods (FMCG) sector is very important for Indian economy. This
sector touches every aspect of human life. The FMCG companies are now encashing that
opportunity. In rural India, this is the fact about the consumers that their income is increasing
and the lifestyles are changing. There are as many middle-income households in the rural areas
as there are in the urban. Thus the rural marketing has been growing steadily over the years and
is now bigger than the urban market for FMCGs. Globally, the FMCG sector has been
successful in selling products to the lower and middle-income groups. Many companies
including MNCs and regional players started developing marketing strategies to capture the
rural market in depth by using innovative and modern marketing techniques. There is no doubt
that consumers in rural markets should be treated differently from urban consumers because
they are different on the basis of many variables. Present study is focused on understanding the
various aspects of consumer behaviour and brand preference in rural market.
Prof. (Dr.) S L Gupta
Professor, Birla Institute of Technology
A-7, Sector-1, NOIDA
(M) 09811230453
E-Mail: slgupta_1965@yahoo.co.in
Arun Mittal
Faculty, Birla Institute of Technology
A-7, Sector-1, NOIDA
M 09818057205
E-mail: mittalarun@sify.com
adbhut_arun@yahoo.co.in
2. 2
A Study of Consumer Behavior Aspects and Brand Preferences in Rural India with
Reference to FMCG Sector
Prof. (Dr.) S L Gupta & Arun Mittal
1. Introduction
The Fast Moving Consumer Goods (FMCG) sector is very important for Indian economy. This
sector touches every aspect of human life. The FMCG companies are now encashing that
opportunity. In rural India, this is the fact about the consumers that there income is increasing
and the lifestyles are changing. There are as many middle-income households in the rural areas
as there are in the urban. Thus the rural marketing has been growing steadily over the years and
is now bigger than the urban market for FMCGs. Rural India has become a target for marketers
because of the huge potential it offers for all kinds of products and services. Statistics show that
there is a huge income shift-taking place in rural India, and the aspiring middle class, with
increasing purchasing power, is the focus of all marketing initiatives by corporates. The rural
Indian population is large and its growth rate is also high. Over 70% India’s one billion plus
population lives in around 627,000 villages in rural areas. This really becomes the first
motivational factor for the FMCG companies to tap in the rural markets.
The census of India defines rural as any habitation where the population density is less than 400
per sq. km, and where at least 75 per cent of the male working population is engaged in
agriculture, and where there is no any municipality or board. Since ancient times, Indian villages
had the concept of village markets popularly known as the village "Haats". The "Haats" are
basically a gathering of the local buyers and sellers. The barter system was quite prevalent,
which is still continuing in a number of places even today.
The village ‘mandis’ and the seasonal ‘melas’ are other important occasions for the marketers to
tap. While the rural market provides tremendous opportunities to the marketers, it is not easy for
any company to enter this market and walk away with a sizeable share of the market. In reality,
the rural market suffers from a variety of problems including that of distribution and marketing
communication. Companies have been trying to tackle these issues in a number of innovative
ways. Be it the "e-choupal" initiative of ITC or "Project Shakti" launched by HLL, the aim is to
come closer to the rural consumer. To capture the alluring rural market, companies need to
3. 3
formulate strategies, which can deal with issues pertaining to consumer psychographics and
appropriate marketing mix.
With the increase in the rural literacy levels and the exposure to media, people in rural areas are
also becoming conscious about their buying decisions like their urban counterparts. This makes it
even more challenging for the companies to understand the buying behavior, the consuming
pattern, the need and wants of the rural consumer. The marketer has to understand that there is
no shortcut to grab a share of the rural market place. He has to formulate different strategies for
different market segments, as there is very little commonality between each of these segments.
Companies must always keep this in mind that the requirements of the rural market are totally
different. The companies need to develop special products and strategies for the rural consumer.
With the increase in the rural literacy levels and the exposure to media, people in rural media are
also becoming conscious about their buying decisions like their urban counterparts. There has
been a significant rise in the brand awareness among the people. As a result they are becoming
choosier and demanding than ever before, so any company has to properly analyze the
psychographics before entering this market. Studies indicate that there has been a visible shift in
the people's preference for brands. People are upgrading from the use of tooth powders to tooth
pastes, and from using traditional mosquito repellants to using mats and coils. Also there is shift
from low priced brands to semi-premium brands. This is one of the most prevalent myths about
the rural market. However, what rural consumers are looking for are not cheap goods but they
want value for money, and if a brand fits into this category, they are ready to pay for it. The
brand loyalty for rural consumers is quite strong in some particular segments and brands, like
Colgate toothpastes and powders. However, if a company becomes complacent and takes the
rural consumers for granted it is ultimately going to lose in the market. The companies have to
constantly innovate and make their products appealing to the consumers to succeed.
Some companies have the misconception that the tastes and preferences of the rural consumers
are same for the whole rural market. But it is not so. Infact, it is more varied that the urban
consumers. In north India, the preferences of a Punjabi farmer will be quite different from his
counterparts in Bihar or Uttar Pradesh. So the companies have to design strategies to tackle this
issue. The rural market is quite innovative in the uses of products. Several products are being
used successfully for doing jobs what they are not meant for, like using washing machines to
make "lassi" in Punjab or using ‘Iodex’ on animals to relive them of muscular pain. The rural
4. 4
market is an enigma for the marketer and he has to see that the marketing communication is done
in the relevant way.
2. Rising Rural Potential with Rising Rural Prosperity
According to Mr. D. Shivakumar, Business Head (Hair), Personal Products Division, Hindustan
Lever Limited, the money available to spend on FMCG (Fast Moving Consumer Goods)
products by urban India is Rs. 49,500 crores as against is Rs. 63,500 crores in rural India. The
purchasing power in rural India is on steady rise and it has resulted in the growth of the rural
market. The market has been growing at 3-4% per annum adding more than one million new
consumers every year and now accounts for close to 50% of volume consumption of FMCG. The
growth rates of lot of FMCG are higher in rural markets than urban markets.
3. Internet Revolution in Rural India
3.1 HLL’s Project Shakti:
The Project I Shakti kiosks set up by HLL in partnership with women’s self-help groups in
Andhra Pradesh have received an overwhelming response from the local people. To gain access
to the services offered, users have to first obtain an ID card with the registration number. The
kiosks offer information chiefly in the form of audiovisuals in the areas like health and hygiene,
e-governance, education, agriculture, employment, legal services and veterinary services. HLL
with its deep pockets is ensuring that the project will succeed and is planning to scale up the
initiative to other markets. (Rajan, R. V., 2007)
3.1 ITC e-Choupal:
ITC has set up Interest kiosks in village. These kiosks are managed by the farmers, selected from
within the community and trained, and known as Sanchalaks. At the kiosks, the Sanchalak help
the farmers to readily access the different agricultural crop-specific websites that ITC has created
in the relevant local language. The farmers can learn online the best farm practice for the crop,
the prevailing price trends for the crop in the Indian and world markets, the intricacies of risk
management, and the local weather forecast. The smallest individual farmer thus gets the benefit
knowledge on the cultivation of his corp. The e-choupal project, launched in June 2000, and
today it has become the largest Internet based corporate intervention in rural India. E-Choupal’s
5. 5
network today reaches out to more than three million farmers in over 35000 villages through
5,050 e-choupals kiosk that ITC has set up across six states covering 3.5 million e-farmers.
Realizing the need for leveraging the business potential of the choupals, ITC decided to use the
kiosk for reverse trading i.e. allowing other companies to sell their products and services directly
to the farmers via the Internet. The electronic revolution is not only spread by FMCG companies
but BASF India, Nagarjun Fertilizers and Madhya Pradesh State Corporation started using ITC
Choupal to promote their products. ITC has also started selling life insurance policies through
the e-Choupal network and is now talking to FMCG companies to use its service. This single
initiative of ITC has opened up a new distribution opportunity in rural India.
Microsoft has set up an ambitious target of over 50,000 broadband connected kiosks across
villages covering over 50 percent of the rural population in the next three years under the
saksham scheme. (Rajan, R. V., 2007)
4. Critical Analysis of Strategies for Rural Markets:
Indian consumers are also associated with values of nurturing, care and affection. These values
are far more dominant that values of ambition and achievement. Product which communicate
feelings and emotions gel with the Indian consumers. Apart from psychology and economics, the
role of history and tradition in shaping the Indian consumer behavior is quite unique. Perhaps,
only in India, one sees traditional products along side modern products. For example, hair oils
and tooth powder existing with shampoos and toothpaste. About three quarters of the Indian
population are in the rural areas and with the growing middle class, especially in the Indian
cities; the spill over effect of the growing urban middle class is also felt in the rural areas.
4.1 Branding decisions in Rural Markets:
Rural branding bears quite different stand from urban branding. The first step towards rural
branding is to research and gain insight into the working of rural markets. Based on this
communication campaigns have to be developed with a lot of rural sensitivity. Rural branding is
attained by way of opting to a greater percentage of local media and a smaller percentage of the
mass media. Rural gatherings like temple festivals, ‘melas’, cinema halls and so on can be used
6. 6
as venues to promote brands. Direct Marketing and events like road shows; film shows, melas,
street theatre can also be used to promote brands. A well-planned rural branding campaign
cannot just create brand awareness but help your target relevant to your brand and promote sales.
A long-term campaign will keep your brand at the top-of-the-mind and build brand loyalty. So
the brands are in safe hands. The success of a brand in the Indian rural market is as unpredictable
as rain. It has always been difficult to gauge the rural market. Many brands, which should have
been successful, have failed miserably. More often than not, people attribute rural market success
to luck. The Indian consumers are noted for the high degree of value orientation. Such
orientation to value has labeled Indians as one of the most discerning consumers in the world.
Even, luxury brands have to design a unique pricing strategy in order to get a foothold in the
Indian market. Indian consumers have a high degree of family orientation. This orientation in
fact, extends to the extended family and friends as well. Brands with identities that support
family values tend to be popular and accepted easily in the Indian market.
4.2 Promotional Strategy Decisions:
Over the years, as a result of the increasing literacy in the country, exposure to the west, satellite
television, foreign magazines and newspapers, there is a significant increase of consumer
awareness among the Indians. Today more and more consumers are selective on the quality of
the products/services. This awareness has made the Indian consumers seek more and more
reliable sources for purchases such as organized retail chains that have a corporate background
and where the accountability is more pronounced. The consumer also seeks to purchase from a
place where his/her feedback is more valued. The main sources of information for a rural
consumer are found to be friends, radio, TV, Newspapers, Cinema, retailers etc. While designing
the promotional strategy for the rural markets a marketer must keep all these factors in mind.
5. Review of Existing Literature:
Matrade Chennai (2005), studied a lot of aspects related to consumer behaviour in India and
found that for Indian consumers are deeply concerned with the traditions, values and they
7. 7
consider their family advice in the purchase decisions. About rural Indian consumer the study
revealed that rural consumers in India are changing rapidly related the education, awareness of
the products. Through internet now they connected with the whole world. Janmejaya Sinha and
Arvind Subramanian (2007) studied the next billion consumers. Rural Indian consumers are
now being richer and they are contributing more in the total purchases. S John Mano Raj & Dr.
P Selvaraj, explored about social changes and the growth of Indian Rural Markets with
reference to FMCG products. The paper concluded that FMCG companies would have to really
gain inroads in the rural markets in order to achieve double-digit growth target in future. 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. Sara Humann studied tapping rural market
spending time researching the rural Indian consumer as well as the market before diving in can
help to prevent unnecessary struggles and failures. If the opportunity exists, partnering with an
existing Indian company upon market entry can provide several key advantages to a company.
Rahul Joshi studied in his as The Discovery of Rural India and revealed the fact that the
prosperity is rising in rural India and the strategies adopted by the companies like HLL and ITC
are effective enough and they are tapping the market successfully. S Gopalkrishnan (2006)
discussed that rural marketing in India has still a long way to go, rural marketers have to
understand the fact that rural marketing in India has a tremendous potential in our country. Rural
marketers should understand this fact and try to tap the huge untapped potential in our country.
B B S Parihar, Sanjay Yadav and Irfan Siddiqui (2007) empirically found that there is a
significant difference between the buying behavior of urban and rural consumers with regard to
their preference for technology, style, brand image, price and after-sales service. Hansa
Research (2006) explored that the preferences in rural India are shifting from loose to packaged
products. Rural India is now buying specialised, branded utensil cleaners, and moving away from
the typical ash/soil usage in the past. The penetration of branded items has also increased
significantly for the products like toothpaste, detergent cakes, hair oils etc. Ritesh Sud and
Pritesh Y. Chothani (2006) studied that there has been a significant rise in the brand awareness
among the people in the rural markets. As a result they are becoming choosier and demanding
than ever before, so any company has to properly analyze the psychographics before entering
this market. Studies indicate that there has been a visible shift in the people's preference for
brands. People are upgrading from the use of tooth powders to tooth pastes, and from using
8. 8
traditional mosquito repellants to using mats and coils. Also there is shift from low priced brands
to semi premium brands. Rajendhiran N. Saiganesh S. Asha P. (2006) explored that brand
ambassadors play an important role in putting an impact on the brand preferences of rural India.
Keeping the Literacy scenario in to consideration the promotion of Brands in rural markets
requires the special measures. The same becomes the base for brand awareness and preference in
the markets. Rao G Srinivas (2002) studied that rural India buys small packs, as they are
perceived as value for money. There is brand stickiness, where a consumer buys a brand out of
habit and not really by choice. Brands rarely fight for market share; they just have to be visible in
the right place. Even expensive brands, such as Close-Up, Marie biscuits and Clinic shampoo are
doing well because of deep distribution, many brands are doing well without much advertising
support — Ghadi, a big detergent brand in North India, is an example. Srinivas (2002) further
studied that rural consumers have a very high preference for credit in their purchase. Only one
tenth of consumers most of them coming from High Income Groups (HIG) and Middle Income
Groups (MIG), do not seem to be preferring credit. A properly designed credit facility would
boost the rural markets and goes a long way in firming them up. Financial express, (2000) has
published the strategy about FMCG majors, HLL, Marico Industries, Colgate Palmolive have
formula had for rural markets. The Language and content must be according to the suitability of
rural environment. On Information search Rao G Srinivas (2002) revealed the fact that the
awareness of the consumers about various products/brands plays a significant role in promoting a
particular brand. Hence, a marketer needs to focus his attention primarily on the major source of
information for the rural consumers. The main sources of information for a rural consumer are
found to be friends, radio, TV, Newspapers, Cinema, retailers etc.
6. Objectives of the Study:
1. To Study various important aspects of Consumer Behavior in Rural India for FMCG
Products.
2. To Study the Brand Preferences of rural customers for FMCG Products.
7. Research Methodology:
7.1 Research Design:
9. 9
The present study is descriptive in nature which is based on empirical evidences based on
primary data. A survey method has been used to collect the primary data with a structured
questionnaire. The questionnaires were filled up by rural respondents which were selected on the
basis of convenience sampling.
7.2 Sampling Framework:
Respondents for the present study are the villagers. The nature of data used in the present study
is primary which has been collected by using a structured questionnaire. The area for research
contains two major states of the country i.e. Haryana and Uttar Pradesh why 5-5 Villages taken
from both the states and 20 respondents from each village. Data has been collected on the basis
on convenience sampling, data is analysed by the help of Percentile, Mean and Standard
Deviation and presented by tables and figures.
8. Data Analysis and Interpretation:
Demographic Characteristics of Respondents:
The study is conducted with taking a sample size of 200 respondents. On the basis of
Demographic factors, maximum 48% are from an age group of 30-40 years and 32% in the age
group of 20-30. The rest are from the other age groups of more than 40 and less than 20 years
(Table-8.1). On the basis of gender the respondents are maximum male (83%) and rest females
(13%), (Table-8.2). In occupation expected in the villages maximum quantity of respondents is
of farmers (37%) which is closely followed by servicemen (30.5%), The quantity of respondents
in the category of other also becomes significant (21%) because of the participation of female
respondents in this category and rest are the students (11.5%) (Table-8.3). The educational level
of the respondents are also moderate and they varies significantly between the qualification 10th
to Graduate. Even after being in the villages very less respondents were found illiterate (Table-
8.4).
Purchase Location in rural areas
For FMCG Products rural customers purchase goods from the nearest location. They prefer to
purchase from the nearest shops and retail stores (46%). That is followed by the purchase from
10. 10
the nearest city (39%) and the rest 15% customers purchase from the other location. (Table:
8.5).
Time Duration for which Customer Purchases FMCG Product.
The quantity purchased by maximum customers purchase for one month (35.5%), which is
followed by purchase of quantity for 15 days (29%). Rest of the respondents for less than 15
days and more than one month are almost equal 17% and 18.5 % (Table: 8.6).
Payment Habits
Payment habits of customers are also important when we study consumer behavior. Rural
consumers sometimes pay in cash for their purchase and sometimes they purchase on credit
(49%). 27% customers prefer to pay in cash and 24% on credit. Brand Loyalty status is also
good in rural areas. (Table: 8.7).
Brand Loyalty Status
38% respondents are always purchase the same brands. 9% customers are highly disloyal they
never purchase the same brand whatever they purchased last. 23% Usually purchase the same
brand and 29.5% purchase the same brand sometimes. 9% customers never purchase the same
brand again. (Table: 8.8).
Decision Maker
The decision of purchase is taken mainly by the house maker being FMCG products house wives
takes care of the types of products and brands. The decision of purchase is also taken by the user
of product and the house leader. Customers are not so conscious about the sophistication of the
FMCG product so they also leave the decision of purchase on anybody in the house and it can
become a mixed decision. (Table: 8.9).
Brand Preferences
The results present a mixed scene of brand preference in rural area, the area in some FMCG
products are also dominated by the local brands. In the case of Toothpaste, Colgate is number
one with the first preference of 36% respondents, which is followed by Close Up and Pepsodent
with 18% and 16% respectively, almost half of Colgate. 21% prefer to use the other brands
including local brands of toothpastes and tooth powders. Dabur Lal Dant Manajan is preferred by
9 %. In the category of Soaps Lux dominates the rural market with 51%, which is followed by
11. 11
local brands with 27.5%. The rest share is with Lifeboy and Detol. In detergent cakes Rin in at
number one with 28%, which is followed by Wheel with 16%. However in this product the
other or local brands are dominating with 56%. In detergent powders Surf Excel with 20% is on
the second rank closely followed by Rin Supreme with the preferences of 16% respondents.
Nirma, one of the oldest brands of India is ranked first with 24%. In this product segment also,
the local brands also have the maximum preference with more than 29% respondents. In
Shaving creams Denim and Detol are on first and second rank respectively with 16.5% and 13%
respondents. There is the maximum existence of local brands in this segment with more than
20% of the respondents (Table-8.10)
Factors Affecting Decision of Purchase:
For making a decision about purchasing an FMCG Product rural consumer consider
Convenience of retail store as most important, Price and Popularity of Brand or Brand Name
comes at the second place. The Mean score is also significant for the factors like credit facility
by shopkeepers, popularity of brands and Quality but discount and other benefits do not
attract the customers so much for purchasing FMCG products. (Table-8.11)
Perceptions about Brands, Values and Importance of Purchase Decision:
Customers believe that reputed brands are costly. On a scale of five respondents have given a
significant value of 3.61. Which is followed by the importance of brand name with a value of
3.19. However respondents have given significant value to the rest of the statements also. The
respondents consider reputed brands of better quality and the decision of purchasing FMCG
products is considered an important decision but the given value is not so significant and that is
at the last in the ranking. (Table-8.12)
Influencers of Purchase Decision:
In rural India on the basis of responses of customers the Head of the family has maximum
influence, recommended by more than 27% respondents. The influence of Retail Shopkeepers,
Other family members and friends and relatives is almost equal, that is about 16%. However
advertisements and the reputed persons of the village also influence respondents. (Table-8.13)
Level of Satisfaction in Rural Markets.
The Level of Satisfaction is seems high in the rural India 49% customers are satisfied and 22%
are highly satisfied the value of Mean score comes 3.72 on the total value of 5. (Table-8.14)
12. 12
9. Conclusion:
In the end it is certain that FMCG companies will have to really gain inroads in the rural markets
in order to achieve double-digit growth targets in future. There is huge potential and definitely
there is lot 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 must 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 a 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.
The responses of customers are quite mixed in the rural India. Customers prefer some of the
popular brands but they also prefer to use local brands also. The loyalty status for brands is also
moderate in the rural markets. It seems that customers do not bother more about the purchase
decision of FMCG product. The house makers and other members of the family influence the
purchase decision. Rural area people have enough time to talk with their friends and social
groups so their decisions are also influenced the reference groups. In brief we can say that the
consumer in rural markets is not so sophisticated and not conscious about the brands and
purchase decision. This shows an opportunity for the marketers to promote their products by the
promotional strategies, which can make a place in the heart of the customers. Some of the
companies with local brands win the battle by convincing the retailers about the product. Retailer
sometimes work like a salesperson for that company and recommend the product to the customer
because they get a smart margin for this. Further the local companies also give discount for space
in the shelf of shopkeeper.
To conclude the discussion it can be said the mixed type of structure of the rural markets in
consumer behavior is the major characteristics of these markets in India. Sometimes it is felt the
winner will be only who will win the situations in rural markets.
10. Limitations of the Study:
The very first limitation of the present study may be identified as the small sample size and
selection of only two states which may not be the true representative of rural India. Both the
states, Haryana and Uttar Pradesh are nearer to the NCR than other states so, there may be a
favourable impact on use of branded products and brand awareness of FMCG products.
13. 13
References:
Gupta, S. L., & Pal, Sumitra (2002) Consumer behavior: An Indian context. New Delhi: Sultan
Chand & Sons.
Schiffman, Leon, G., & Kanuk, Lazar, Leslie (2007) Consumer behaviour. New Delhi: Dorling
Kindersley (India) Pvt. Ltd., Licensees of Pearson Education in South Asia.
Loudon, David L., & Della Bitta, Albert, J., (2002) Consumer behaviour, New Delhi: Tata
Mcgraw-Hill Publishing Company Limited.
Huhmann, Sara (2004) Tapping India’s Rural Market. Journal of Student Research, 93-100
Miller, Nancy, J., & Kean, Rita, C., (1999) Factors contributing to in shopping behaviour in rural
trade areas: Implications for local retailers. Journal of small Business Management, 35 (2), 80-
94.
Rajan, R. V., (2007) The New face of rural marketing: Marketing white book- 2007-08 (pp-109-
113). New Delhi: Business World.
Raj, S., John, Mano, & Selvaraj, P (2007) Proceedings from IIM K International Marketing
Conference on Marketing & Society.
Sinha, Janmejaya, Subramanian, Arvind. (2007) The next Billion Consumers: A road map for
expanding financial inclusion in India. (pp 5-44) Bostan Consulting Group.
Chatterji, Purvita, (2006, April 13), Shampoos biggest growth segment in rural India. Business
Line. Retrieved Feb, 21, 2008 from
http://www.thehindubusinessline.com/2006/04/13/stories/2006041301450800.htm
Sud, Ritesh, & Chotani, Y., Pritesh (2005). Significance of the bottom of the pyramid for the
corporates. Indianmba.com. retrieved December, 12, 2008 from
http://www.indianmba.com/Occasional_Papers/OP87/op87.html
http://www.123eng.com/forum/viewtopic.php?t=15180
http://www.123eng.com/forum/viewtopic.php?t=36289
14. 14
Annexure-1
List of Tables and Figures
Table- 8.1 Age Wise Distribution of 200 Respondents
Age
(Years) Frequency Percentage
<20 12 6
20-30 65 32.5
30-40 96 48
>40 27 13.5
Total 200 100
Age Distribution of Respondents
0
10
20
30
40
50
60
<20 20-30 30-40 >40
Percentage
15. 15
Table- 8.2 Gender Wise Distribution of 200 Respondents
Table- 8.3 Distribution on the basis of occupation of Respondents.
Sex Frequency Percentage
Male 166 83
Female 34 17
Occupation Frequency Percentage
Students 23 11.5
Farmers 74 37
Servicemen 61 30.5
Others 42 21
Total 200 100
Occupations Distribution of Respondents
11.5
37
30.5
21
0
5
10
15
20
25
30
35
40
Students Farmers Servicemen Others
Percentage
16. 16
Table: 8.4 Distribution on the basis of Education.
Table: 8.5 Purchase Location Preferences in Rural Ares.
Purchasing Location of Respondents
0
5
10
15
20
25
30
35
40
45
50
From the Nearest
Retail Shop
From the Nearest
City
Others
Percentage
Education Frequency Percentage
Post Graduate 23 11.5
Graduate 56 28
10+2 54 27
10th 45 22.5
Below 10th 22 11
Total 200 100
Purchasing Location Frequency Percentage
From the Nearest Retail Shop 92 46
From the Nearest City 78 39
Others 30 15
Total 200 100
17. 17
Table 8.6 Time Duration for which Customer Purchase FMCG Product.
Purchase Time Frequency Percentage
For/Less One Week 34 17
For 15 Days 58 29
For One Month 71 35.5
More than One Month 37 18.5
Total 200 100
Purchasing Time Duration
17
29
35.5
18.5
0
5
10
15
20
25
30
35
40
For/Less One
Week
For 15 Days For One Month More than One
Month
Percentage
18. 18
Table: 8.7 Payment Habits of Customers.
Payment Habits of Respondents
Cash
28%
Credit
24%
Mixed
48%
Cash
Credit
Mixed
Payment Habits Frequency Percentage
Cash 55 27.5
Credit 48 24
Mixed 97 48.5
Total 200 100
19. 19
Table: 8.8 Brand Loyalty Statuses in Rural Markets.
Purchase of Same Brand Frequency Percentage
Always 77 38.5
Useually 46 23
Sometimes 59 29.5
Never 18 9
Total 200 100
Percentage
Always
38%
Useually
23%
Sometimes
30%
Never
9%
Always
Useually
Sometimes
Never
20. 20
Table: 8.9 Decision Makers:
Decision Maker
The Person
Who Uses
22%
House Maker
32%
Home Leader
27%
Any
Body/Mixed
19%
The Person Who Uses
House Maker
Home Leader
Any Body/Mixed
Purchase Decision
Maker Frequencies Percentage
The Person Who Uses 44 22
House Maker 66 32
Home Leader 53 27
Any Body/Mixed 37 19
Total 200 100
21. 21
Table: 8.10 Brand Preferences for FMCG Products in Rural Markets.
Toothpaste Frequency Percentage
Colgate 72 36
Colse Up 36 18
Pepsodent 32 16
Dabur Lal Dunt Manjan 18 9
Others/Local Brands Etc. 42 21
Total 200 100
Bath Soap/Other Soap
Lux 102 51
Lifefboy 33 16.5
Detol 20 10
Others 55 27.5
Total 200 100
Ditergent Cake
Rin 56 28
Wheel 32 16
Others/Local Brands Etc. 112 56
Total 200 100
Ditergent Powder
Surf Excel 40 20
Rin Supreme 32 16
Tide 12 6
Nirma 48 24
Wheel 9 4.5
Others/Local Brands Etc. 59 29.5
Total 200 100
Shaving Cream
Denim 33 16.5
Detol 26 13
Others/Local Brands Etc. 141 70.5
Total 200 100
22. 22
Table: 8.11 Factor Influencing Purchase Decision.
Table 8.12 Perceptions about Brands, Values and Importance of Purchase Decision
Table 8.13 Influencers of Purchase Decision
Factors Influencing Purchase
Decision Mean
Convenience of Retail Shop 3.98
Price 3.595
Brand Name 3.565
Credit Facility by Shopkeeper 3.365
Popularity of a Particular Brand 3.36
Quality 3.33
Discount or Other Benefits 2.92
Statement Mean Score
Reputed Brands are Costly 3.61
Brand Name is Important 3.19
Reputed Brands are of Better Quality 3.06
FMCG Purchase Decision Important 3.03
Influencers Frequency Percentage
Retail Shopkeeper 31 15.5
Head of the Family 55 27.5
Other Family Member/s 35 17.5
Any Reputed Person of the Village 26 13
Friends/Relatives 32 16
Advertisement 21 10.5
23. 23
Table: 8.14 Level of Satisfaction in Rural Markets
Satisfaction Level Frequency Percentage Mean Value
Highly Satisfied 44 22 1.1
Satisfied 98 49 1.96
Some What Satisfied 31 15.5 0.465
Dissatisfied 12 6 0.12
Highly Dissatisfied 15 7.5 0.075
Total 200 100 3.72