Research market is one of the best opportunities for


Secondary data was collected through
magazines, research papers, internet etc.

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Secondary Data-

Primary data was amassed across a self-administrated
questionnaire. This questionnaire aims to gather data connected to assorted
Called Electronic Home Appliances.

Primary Data-

Data Collection Method-



Rural market is one of the best opportunities
for the FMCG sector. In some sense we can say that rural market is future
of FMCG. As per research of Purba Basu, (faculty of ICFAI business
school), the lifestyle of rural consumers is changing. Rural Indian market and
the marketing strategy have become the latest marketing buzzword for most of
the FMCG majors. She added the strategies of different FMCG companies for
capturing rural market like Titan’s Sonata
watches, Coco Cola’s 200ml bottle, different strategies of HUL and
Marico etc. She takes into consideration the study of National Council for
Applied Economic Research (NCAER). According to the NCAER projections, the
number of middle and high-income households in rural area. India is
expected to grow from 80 million to 111 million by 2007. In urban India, the same
is expected to grow from 46 million to 59 million. Thus, the absolute size of
rural India is expected to be double that of urban India. According to
Pradeep Tognatta, (former vice president of LG) The economic growth in India’s
agricultural sector in last year was over 7%, compared with 3% in the
industrial sector. This implies a huge market potentiality for the marketer to meet
up increasing demand. Factors such as village psyche, strong distribution
network and market awareness are few prerequisites for making a dent in the
rural markets. The model is of the stolid Anglo-Dutch conglomerate Unilever Group,
which has enjoyed a century-long presence in India through its subsidiary Hindustan
Lever Ltd. It was Hindustan Lever that several years ago popularized the
idea of selling its products in tiny packages. Its sachets of detergent and
shampoo are in great demand in Indian villages. Britannia with its low priced
Tiger brand biscuits has become some of the success story in rural
marketing. Rajesh K Aithal of IIM (L) had done his research on rural
telecom in India .He explain that Rural markets are an important and growing
market for most products and services including telecom. The characteristics of
the market in terms of low and spread out population and limited
purchasing power make it a difficult market to capture. The Bottom of the
pyramid marketing strategies and the 4 A’s
model of Availability, Affordability, Acceptability and Awareness provide us
with a means of developing appropriate strategies to tackle the
marketing issues for marketing telecom services in rural areas. Successful cases
like the Grameen Phone in Bangladesh and Smart Communications Inc. in
Philippines also provide us with some guidelines to tackling the issue. As per
concern of my research, it is a detail study of different FMCG products used by
rural consumers. It will provide detail information about consumers’
preferences towards a good number of FMCG products which is too unique and different
from those above researches.

Literature Review-

surveying I encounter alongside a little problems like a little people were not
keen to answer and insufficient of them who responded were in hurry hence the alert
participation was lacking. Due to that we confronted difficulties in
accumulating information regarding our questionnaire. One more setback that we
face was that people were wavering to give data concerning their income. Except
it, the example size we possess seized for survey was tiny and it’s a tough
task to sketch precise conclusion or grasp to an precise consequence on the
basis of manipulated example size. Moreover, our investment was
manipulated and period was additionally less to go in depth. Threats to us are
that- as people were wavering to give their income features so there is chance
of error considering income.


I am
additionally a resident of rural area. I uses my experiences and perceptions as
hypothesis towards to made this project.




understand concerning the present demand of FMCG products in rural area.

ascertain concerning the rural consumers preference towards FMCG products.

Here are
pursuing goals of the project:-


As each given in the above chart, rural market displays a
good improvement. In the attendance of a little product categories like, toilet
soap, detergent bar, cleaning dust etc., it is same as in the city level. Rural
marketplace is additionally enhancing in the other produce category.



All India %











Skin Cream








Utensil Cleaner




Instant Coffee




Washing Powder




Detergent Bar




Toilet soap




Source: HLL investor meet 2016


Due to the colossal size of the market, penetration level in
most product groups like jams, toothpaste, skin care, hair clean etc. in India
is low. This is extra visible after analogy is completed amid the rural and the
city areas. The average consumption by rural households is far lower than their
city counterparts. Attendance of unsaturated market provides an brilliant
opportunity for the industry contestants in the form of a vastly untapped
market as the income rises.

Low penetration and
low each capita consumption:

Rising each capita income, increased literacy and quick urbanization
possess provoked quick development and change in demand patterns. The rising
aspiration levels, rise in paying manipulation possesses managed to a change in
the consumption pattern.

Changing lifestyles:




An average Indian spends concerning 40% of his income on
groceries and 8% on confidential care products. A larger part of the
finished paying pie alongside alongside a colossal center (in words
of population) makes India one of the biggest FMCG markets.

With a populace of 1 bn people, India is a large marketplace
for FMCG companies. Concerning 70% of the finished households in India reside
in the rural areas. The finished number of rural households is anticipated to
development from 135 m in 2002 to 153 m in 2010, that represents the biggest
possible market in the world.

Scope of Study-

The discovery of opportunity for FMCG products in the rural
market is a sum finished of disparate analytical survey of different FMCG
products in the rural area. In one sense, we can say that it is determination of
how far market is seized by different FMCG companies.

Definition of the Problem


concerning the different choices of rural consumers

ascertain the rising demand of FMCG products in rural area.

In those dates, the rural market is the one of the best
opportunity for the FMCG sector in the India. It is more wide and less
competitive marketplace for the FMCG. As the income level of the rural
customers rising, the demand of FMCG is rising continuously. The assorted
demand of the discover is given as follows:-

Need of the Study-

 In 1970, Nirma was the
early FMCG Company to onset and produced goods according to rural consumers. In
the main 1970s, after Nirma cleaning dust was gave in the low-income
marketplace, Hindustan Lever Manipulated reacted in a way typical of countless
multinational companies. Though, Nirma’s entry changed the finished Indian FMCG
scene .It came to be a outstanding success story and allocated the roadmap for
others to follow. MNC’s like HLL, which were sitting pretty till next, arouse
up to new marketplace realities and noticed the latent rural possible of India.
1983, C K Ranganathan commenced vending shampoos in a sachet alongside an investment
of Rs 15,000 and endangered to seize on the multinationals, Lever and P&G,
the unquestioned heads in that segment. . He targeted   rural
and small-town customers who utilized soaps to wash their hair. He gave the
sachet at 90 paise and next decreased it to 50-paise. And that’s after the
multinationals sat up and noticed him. Sales whizzed from 35,000 sachets to 12
lakhs. Initially they seized each sachet, but afterward three months they
restricted to Chic sachets. Now at the present period, rural marketplace is one
of the best opportunity and concentrating sector for the main FMCG companies in
India. Every single and every single firm is set to invest a huge capital for
contest in rural market. According to the Federation of Indian Chambers of
Transactions and Industry, the number of rural households employing FMCG
produce possesses grown from136 million in 2004 to 143 million in 2007, a clear
indication that rural customers are advancing from commodities to called
products. City customers, on supplementary hand, might go sluggish on FMCG
expenses, cheers for inflation spiral, development in gas price and costlier
credit. Evidence suggests that for the early period, the rural market possesses
grown faster than the city marketplace in key product categories in April-May
2008, the latest months for that such information is obtainable, according to market
research firm AC Nielsen.

Background of the study:-

There was a
period after the FMCG companies ignores rural market, they seized no each
attention to produced or sell products in rural marketplace in India. It was
the early period of FMCG companies in India. As each as the period had
bypassed, the strategy and marketing style of FMCG firms had been changed.