ResearchInstruments-Secondary data was collected throughmagazines, research papers, internet etc.Secondary Data-Primary data was amassed across a self-administratedquestionnaire. This questionnaire aims to gather data connected to assortedCalled Electronic Home Appliances.Primary Data-Data Collection Method- Rural market is one of the best opportunitiesfor the FMCG sector. In some sense we can say that rural market is futureof FMCG. As per research of Purba Basu, (faculty of ICFAI businessschool), the lifestyle of rural consumers is changing.
Rural Indian market andthe marketing strategy have become the latest marketing buzzword for most ofthe FMCG majors. She added the strategies of different FMCG companies forcapturing rural market like Titan’s Sonatawatches, Coco Cola’s 200ml bottle, different strategies of HUL andMarico etc. She takes into consideration the study of National Council forApplied Economic Research (NCAER). According to the NCAER projections, thenumber of middle and high-income households in rural area. India isexpected to grow from 80 million to 111 million by 2007.
In urban India, the sameis expected to grow from 46 million to 59 million. Thus, the absolute size ofrural India is expected to be double that of urban India. According toPradeep Tognatta, (former vice president of LG) The economic growth in India’sagricultural sector in last year was over 7%, compared with 3% in theindustrial sector. This implies a huge market potentiality for the marketer to meetup increasing demand. Factors such as village psyche, strong distributionnetwork and market awareness are few prerequisites for making a dent in therural markets.
The model is of the stolid Anglo-Dutch conglomerate Unilever Group,which has enjoyed a century-long presence in India through its subsidiary HindustanLever Ltd. It was Hindustan Lever that several years ago popularized theidea of selling its products in tiny packages. Its sachets of detergent andshampoo are in great demand in Indian villages. Britannia with its low pricedTiger brand biscuits has become some of the success story in ruralmarketing. Rajesh K Aithal of IIM (L) had done his research on ruraltelecom in India .
He explain that Rural markets are an important and growingmarket for most products and services including telecom. The characteristics ofthe market in terms of low and spread out population and limitedpurchasing power make it a difficult market to capture. The Bottom of thepyramid marketing strategies and the 4 A’smodel of Availability, Affordability, Acceptability and Awareness provide uswith a means of developing appropriate strategies to tackle themarketing issues for marketing telecom services in rural areas.
Successful caseslike the Grameen Phone in Bangladesh and Smart Communications Inc. inPhilippines also provide us with some guidelines to tackling the issue. As perconcern of my research, it is a detail study of different FMCG products used byrural consumers. It will provide detail information about consumers’preferences towards a good number of FMCG products which is too unique and differentfrom those above researches.Literature Review-Whilesurveying I encounter alongside a little problems like a little people were notkeen to answer and insufficient of them who responded were in hurry hence the alertparticipation was lacking. Due to that we confronted difficulties inaccumulating information regarding our questionnaire. One more setback that weface was that people were wavering to give data concerning their income.
Exceptit, the example size we possess seized for survey was tiny and it’s a toughtask to sketch precise conclusion or grasp to an precise consequence on thebasis of manipulated example size. Moreover, our investment wasmanipulated and period was additionally less to go in depth. Threats to us arethat- as people were wavering to give their income features so there is chanceof error considering income.Limitations-I amadditionally a resident of rural area.
I uses my experiences and perceptions ashypothesis towards to made this project.Hypothesis:- · Tounderstand concerning the present demand of FMCG products in rural area.· Toascertain concerning the rural consumers preference towards FMCG products.Here arepursuing goals of the project:-Objectives-As each given in the above chart, rural market displays agood improvement.
In the attendance of a little product categories like, toiletsoap, detergent bar, cleaning dust etc., it is same as in the city level. Ruralmarketplace is additionally enhancing in the other produce category. Category All India % Urban% Rural% Deodorants 2.1 5.5 0.6 Toothpaste 48.
6 74.9 37.6 Skin Cream 22 31.5 17.8 Shampoo 38 52.
1 31.9 Utensil Cleaner 28 59.9 14.6 Instant Coffee 6.6 15.
5 2.8 Washing Powder 86.1 90.7 84.1 Detergent Bar 88.
6 91.4 87.4 Toilet soap 91.5 97.4 88.9 Source: HLL investor meet 2016 Due to the colossal size of the market, penetration level inmost product groups like jams, toothpaste, skin care, hair clean etc. in Indiais low. This is extra visible after analogy is completed amid the rural and thecity areas.
The average consumption by rural households is far lower than theircity counterparts. Attendance of unsaturated market provides an brilliantopportunity for the industry contestants in the form of a vastly untappedmarket as the income rises.Low penetration andlow each capita consumption:Rising each capita income, increased literacy and quick urbanizationpossess provoked quick development and change in demand patterns. The risingaspiration levels, rise in paying manipulation possesses managed to a change inthe consumption pattern.Changing lifestyles: An average Indian spends concerning 40% of his income ongroceries and 8% on confidential care products. A larger part of thefinished paying pie alongside alongside a colossal center (in wordsof population) makes India one of the biggest FMCG markets.With a populace of 1 bn people, India is a large marketplacefor FMCG companies.
Concerning 70% of the finished households in India residein the rural areas. The finished number of rural households is anticipated todevelopment from 135 m in 2002 to 153 m in 2010, that represents the biggestpossible market in the world. Scope of Study-The discovery of opportunity for FMCG products in the ruralmarket is a sum finished of disparate analytical survey of different FMCGproducts in the rural area. In one sense, we can say that it is determination ofhow far market is seized by different FMCG companies.
Definition of the Problem · Knowconcerning the different choices of rural consumers· Toascertain the rising demand of FMCG products in rural area.In those dates, the rural market is the one of the bestopportunity for the FMCG sector in the India. It is more wide and lesscompetitive marketplace for the FMCG. As the income level of the ruralcustomers rising, the demand of FMCG is rising continuously.
The assorteddemand of the discover is given as follows:-Need of the Study- In 1970, Nirma was theearly FMCG Company to onset and produced goods according to rural consumers. Inthe main 1970s, after Nirma cleaning dust was gave in the low-incomemarketplace, Hindustan Lever Manipulated reacted in a way typical of countlessmultinational companies. Though, Nirma’s entry changed the finished Indian FMCGscene .It came to be a outstanding success story and allocated the roadmap forothers to follow. MNC’s like HLL, which were sitting pretty till next, arouseup to new marketplace realities and noticed the latent rural possible of India.
1983, C K Ranganathan commenced vending shampoos in a sachet alongside an investmentof Rs 15,000 and endangered to seize on the multinationals, Lever and P&G,the unquestioned heads in that segment. . He targeted ruraland small-town customers who utilized soaps to wash their hair. He gave thesachet at 90 paise and next decreased it to 50-paise. And that’s after themultinationals sat up and noticed him. Sales whizzed from 35,000 sachets to 12lakhs. Initially they seized each sachet, but afterward three months theyrestricted to Chic sachets.
Now at the present period, rural marketplace is oneof the best opportunity and concentrating sector for the main FMCG companies inIndia. Every single and every single firm is set to invest a huge capital forcontest in rural market. According to the Federation of Indian Chambers ofTransactions and Industry, the number of rural households employing FMCGproduce possesses grown from136 million in 2004 to 143 million in 2007, a clearindication that rural customers are advancing from commodities to calledproducts. City customers, on supplementary hand, might go sluggish on FMCGexpenses, cheers for inflation spiral, development in gas price and costliercredit. Evidence suggests that for the early period, the rural market possessesgrown faster than the city marketplace in key product categories in April-May2008, the latest months for that such information is obtainable, according to marketresearch firm AC Nielsen.Background of the study:-There was aperiod after the FMCG companies ignores rural market, they seized no eachattention to produced or sell products in rural marketplace in India. It wasthe early period of FMCG companies in India.
As each as the period hadbypassed, the strategy and marketing style of FMCG firms had been changed.Introduction