a study on promotional strategy adopted by chik shampoo for rural areas.doc

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Executive Summary

1.Executive Summary

In India the rural market are coming up a big way and growing twice as fast as urban. There are as many and appose middle income and above and appose household in rural area. The share of FMCG products in rural market is 53% durable boats of 59% market share. The number middle and high income household in rural India is expected to grow from 80 million to 111 million by 2012.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.

Rural Marketing Feature

1Large and scattered market.

2It consist of over 63 crore consumer from 5,70,000 villages plead through out of country.

3Major income from agriculture.

4Nearly 60% of rural income agriculture.

5The rural consumer values old customer and traditional. They do not prefer changes.

CavinKare Pvt. Ltd. Products Chik Shampoo get success in state like Karnataka, Andhra pradesh, and Tamil nadu but not in Maharashtra. People belongs to rural region are unaware about branding and little about quality. Targeting that customer (rural) increases (Chik Shampoo) business in Gondia district.How rural consumer thinks, feel about product shampoo. Psychology of consumer how influence by culture, family, income, media etc. Consumer motivation and decision making process.

Keeping all these points in view the researcher formulae a questionnaire containing 13 questions both close and open ended and made a product survey by selecting consumer randomly in all region of Gonida District. Sampling size of 10 retailers taken for research. This survey report is done from 27th Aug to 27th Sep 2014.The main object for research is to find the all promotional strategy adopted by Chik Shampoo for rural areas. Corresponding to sachet at 50 paisa, free sachet, promotional strategy, retailing and marketing strategy.The mode of purchase Chik Shampoo according to sex, unawareness, quality, smell etcThe general problem associate with the Chik Shampoo in rural consumer. The data is collected through both secondary and primary method (feedback of retailer through personal interview ) and then data is analyzed and interpreted on various scales and after that conclusion are drawn.

Introduction

2 Introduction

Introduction To Rural Marketing

According to Prof. Ramakrishna Y, Rural marketing is the process of developing, pricing, promoting, distributing rural specific goods and service, leading to exchange between urban and rural markets, which satisfies consumer demand and also achieves organizational objectives. The Indian market with its vast size and demand base offers great opportunities to marketers. Two- thirds of countries consumer live in rural areas and most half of the national income is generated here. Agriculture and agriculture related actives contribute to about 75% of the income in rural areas. The general impression is that the rural market have potential only for agricultural inputs like seeds, fertilizers and pesticides, cattle feed and agricultural machinery. More than 50% of the national income is generated in rural India and there are opportunities to market modern goods and services in rural areas and also market agricultural products in urban areas. Infact it has been estimated that the rural markets are growing at five times the rate of urban markets. About 70% of bicycles, mechanical watches and radios and about 60% of batteries, sewing machine and table fans are sold in rural areas. At the same time the sales of colour television, washing machines, refrigerators, shampoos, face cream, mosquito repellent and tooth paste are very low and there is tremendous potential for such products in rural markets while rural markets market within a short period. This is due to low literacy, low income, seasonal demand and problems with regards to transportation, communication and distribution channel. Further there are need different groups based religion, cast, education, income and age. There is need to understand the rural markets in terms of buyer behavior, attitudes, beliefs and aspirations of people.

Rural Marketing Challenges

Underdeveloped people.

Vast majorities of the rural people are tradition bound, and believe in old customs, traditions and habits.Lack of communication facilities.Physical communication of the villages is highly expensive. Eventoday most villages in eastern parts of the country are inaccessible during the monsoon.Many languages and Dialects- The number of languages in dialects varies widely from state to state, region to region and probably from district to district. The massage has to be delivered in local language and dialects.

Low capita income.Different way of thinking.

Low level of literacy.

The kind of choices of brands thats an urban customers enjoys is different from the choice available to the rural consumer.

Shampoo In Market

The word shampoo is derived from the Hindi word Champi. Remember Johnny Walkers famous song Meri jaan, Meri jaan, Sunday ke Sunday, Tel malish, Champi Tel malish

TG for Shampoo

Hair shampoo and conditioner are targeted atUpper middle classNow, also middle class and house wives.Upper class rural consumer.Teenier They are the major segment

Types Of Shampoo

Shampoo market segmented on benefits platform Cosmetic (shine, health,strength) Anti-dandruff Herbal

Shampoo Market Size In India

Size of shampoo market 930 cr.Anti-dandruff shampoo -20% and above Sachet sales- 70% of above

Shampoo Awareness In India

Urban area 90%, accounting for 80% of shampoo sold in the country.Rural area 80%, accounting for 20% of shampoo sold.

Shampoo Penetration In India

All India shampoo 14%-Urban- 40%-Rural -10%

Growth In Shampoo Market

Average growth over the last few years >20%Expected average growth over the next few years- 20%.

Company Profile

Introduction To CavinKare

In 1983 with a single product, CavinKare started out of small paternarship firm Chik India by C.K. Ranganathan. Chik India, which was reanassmed as Beauty cosmetic in 1990. In 1998 the company was renamed as CavinKare Pvt.Ltd. (CKPL)

Company Profile

Mr. C.K. Ranganathan, CMD-Cavin Kare Pvt.Ltd.The reson behind the name is Cavin means Beauty in Tamil and Care is spelt as Kare. The name also special one as it denotes the initials C and K of Mr. Ranganathan.

The company offers quality personal care ( hair care, skin care, home care ) and food product.

The company, which primarily relied on contract manufacturing for many years has now set up its own world class plant at Haridwar to cater to the demand of both domestic and international market.

The company has employee strength of 576, an all India network of 1300 stockiest catering about 25 lakh outlets nationally.

CavinKare has touched a turnover of 5000 million INR in 2006-7.

Product Range

Personal Care Hare Care Chik Shampoo Nyle Herbal Shampoo Meera Badam Shampoo Indica Hair Colorant

Product Range

Personal Care

Ethnic Care Meera Hair Wash Powder Karthika Hair Wash Powder Meera Harbal Hair Oil

Product Range

Personal Care

Skin Care Fairever Spinz Talc Spinz Deodorants Nyle Cold cream and location

Product Range

Home Care

Tex

Product Range

Food Division Ruchi Pickles Chinni&apos Pickles Chinni&apos Masla Chinni&apos Vermicelli Ruchi Gulab Jamun mix

CavinKare Pvt. Ltd. Won ability awards for 5 consecutive years

Ability Awards - 2007 Ability Awards - 2006 Ability Awards - 2005 Ability Awards - 2004 Ability Awards 2003

Competitive Analysis

Major Competitor HUL P& G Dabur Himalaya health care Colgate Palmolive

The company has six major brand Fairever, Chik, Nyle, Meera,Indica and Spinz.While its shampoo brand (Chik and Nyle) contribute 50 percent to the company & appos turnover.

The Fairever cream contribute 30 per cent

The balance is from Spinz (deodorant,perfume) Indica hair dye and other products.

Market Share

Chik shampoo with a 21.4 per cent share is the second largest selling shampoo in the 1,200- crore ( Rs 12 billion) shampoo market while its other brand nyle has 4.6 per cent share.

It has a 9 per cent share in the Rs. 750- crore (Rs. 7.50 billion) fairness cream market with the Fairever brand.

Other like Meera hair wash Nyle moisturizing lotion have national shares of 23.4 per cent, respectively.

But they are the largest brand in rural Uttar Pradesh, Andha Pradesh,etc.

Chik shampoo market share

(Urban + Rural Volume )

All India

Chart1

4.84

11.33

15.18

22.4

23.09

Sales

Sheet1

Sales

19984.84

199911.33

200015.18

200122.4

200223.09

To resize chart data range, drag lower right corner of range.

Journey of CavinKare

C.K. Ranganathan, chairman and managing director of CavinKare, has shown the word it is possible to beat the multinationls even in the most difficult market of fast moving consumer goods.

Ranganathans journey, which started from a small town of Cuddalore in Tamil Nadu, has been an amazing one. A business which started with only with Rs 15,000 is now Rs 500 crore ( Rs 5 billion ).

He learnt the first entrepreneurial lessons from his father, Chinni Krishnan, who started a small-scale pharmaceutical packaging unit before moving on to manufacture pharmaceutical products and cosmetics.

His father his inspiration,

His father, Chinni Krishnan, an agriculturist, was also into pharmaceutical business. As he was poor in academics, his father wanted to either do agriculture or start a business.

His siblings were good in studiestwo of them became doctors and another a lawyer. He was odd one out. While his siblings studied in English medium school, he was put in Tamil medium school. He used to suffer from an inferiority complex because of his poor academic record.

The origin of the concept of sachets

His father died as he entered college. He had come out with the sachet concept a couple of years prior to his demise. He felt liquid can be packed in sachet as well. When talcum powder was sold only in tin containers, he was the one who sold it in 100 gm., 50 gm. and 20 gm. packs.

Selling things in sachets was his motto as he said, this is going to be the product of the future. But his father could not market the concept well. He moved from one innovation to another but never through of marketing strategies. He was a great innovator, but a poor marketer.

Joining the family business

After his fathers death his brothers took charge of the family business. In1982, when he joined his brothers business after his studied, his brother launched velvette shampoo. Within eight to nine months, he left the business because his ideas clashed with his brothers.

He was in the manufacturing unit, he did not know anything about marketing or finance. But, his inferiority complex notwithstanding, he was somehow confident of doing business better. Starting with his business with Rs 15,000

He had left his brothers saying that he did not want any stake in the property or business. That was a defining movement for him. He had saved Rs 15,000 from his salary and that was all. Yet he was confident of achieving success. He did not fill anything about riding a bicycle after having got used to cars.

For a week, he could not make up his mind as to what business to do. He knew only two things, making shampoo and rearing pets. He did not want to venture into the business as it would initiate a fight with his brothers.However, he decided to do the same later as it would only make shampoo.He rented a house-cum-office for Rs 250 a month against an advance of Rs 1,000. He took another place for the factory for a rent of Rs 300 a month and against an advance of Rs 1,200. He brought a shampoo-packing machine for Rs 3,000.

How Chik Shampoo was born

He named it Chik Shampoo after his father. The product did not succeed immediately, they learnt many things during the process. In first months, they could sell 20,000 sachets and from the second year, they started making profits.He moved Chennai in 1989 but their manufacture unit continued to be Cuddalore. It took his two years to get the first loan because banks asked for collateral. He did not have any. But one particular bank gave him a loan of Rs 25,000 which we rotated and later upgraded to Rs 400,000, Rs 15 lakh (1.5 million), etc.

Strategies that made Chik Shampoo no. 1 in south IndiaWhen Chik entered the market, Valvette shampoo sachet was being marketed aggressively by Godrej. But a scheme became extremely successful they exchanged five sachet of any shampoo for a Chik Shampoo sachet, free.

Later, they altered the scheme they started giving a one free Chik shampoo sachet in lieu of five Chik shampoo, sachets only. Soon, cunsumers started asking for a Chik sachets only. The sales went up from Rs 35,000 to Rs 12 lakh (1.2 million) a month.

When they introduce the jasmine and rose fragrances, their sales went up 30 lakh (Rs 3 million ) per month and actor Amala as their model, sales rose to Rs 1 crore ( R10 million ) a month! Each idea rewards by customers. There has been no looking back since then.

Problems

4 Problems

Following are the problems have been seen in rural markets.Low literacy rate

It has been estimated that the rural literacy level id36% compared to 62% in urban areas. Literacy is one of the important factors in developing awareness and knowledge about technological changes. As many as 16 major languages are spoken adding to the complexities in rural communication.

Low standard of living

Low income, low purchasing power, overall social and economic backward lead to low standard of living. In general a rural areas consumer spends less on non-food items.

Occupation pattern

Agriculture and related actives continue to be the main occupation for majority of the rural population. Land is the major source of income for about 77% of the population. Others are engaged in business (10%), non-agriculture labor (9%), salary earners (2%) and not gainfully employed (2%). It is evident that rural prosperity depends upon growth and development of agriculture.

Media reach

The media reach in rural household is low. Statistics indicates that the reach of print media is 10% followed by TV 31%, Radio 32% and cinema 36%. Therefore the marketer has to consider rural specific promotion media and methods to reach the villagers.

Communication facilities

About 20% of the six lakh villagers are without telephone facility even today. This includes Rajasthan (17600 villages), MP (14200 villages), Maharashtra (12000villagers), Gujarat(7000 villages), and AP, Assam, Orissa about 6000 villages each.

Transportation facilities

About 50% of the markets are not connected by road. Most of the roads are kachha and become unusable during rainy season. Many farmers use bullock cart for transporting their produce from village to the market. This means of transport is time consuming.

Different Languages

Main problem is local language from district to district and villages to villages are different.

Awareness

Low awareness or unconsciousness about the branding.

Low use of shampoo

Most consumer use shampoo only ones or twice in a week. In many cases these product are used on special occasion such as weeding parties. Some customers use shampoo only to a specific problem such as dandruff or when they need to condition their hair. Scope of study

5 Scope of study

The study is limited to Gondia region. In this study the researcher try to promotional strategy adopted by Chik shampoo for rural region. Purchasing according to income, sex, age.

Period

The survey report is done four month from 27th Feb to 27th March. About The Gondia District

Gondia district was carved out by division of Bhandara district. Gondia district is situated on North-Eastern side of Maharashtra state having state borders of Madhya Pradesh and Chattisgarh.The total population of the District is 1200151. The male and female population is 598447 and 601704 respectively. The SC and ST population in the district is 355484 and 309822. The literacy rate of district is 67.67%.This is underdeveloped district and most of land is covered with forest. Paddy is main agriculture produce. The other agriculture produce in the district are Jawar, Linseed, wheat, tur. The main profession of people is farming.There is no large scale industry in the entire district due to this district is economically backward. There are many rice mills in the district as paddy is the main agriculture produce here. Gondia city is popularly known as RICE CITY due to large number of rice mills.The district is divided into two subdivisions namely Gondia and Deori. Each subdivision has 4 talukas, 556 Grampanchayat, 954 revenue villages exist in the district. The district area is divided into six legislative assembly constituencies namely Gondia, Tiroda, Goregaon, Amgaon, Lakhandur and Sakoli. Lakhandur and Sakoli constituencies has an area of Gondia and Bhadara district.Basically district is divided into 8 talukas and 8 Panchayat Samiti. Only two mucipal corporation are existing at Gondia and Tiroda.Wainganga river is the largest and most important river. Rivers like Bagh, Chulbandh, Gadhavi and Bavanthadi are the tributaries of river Vainganga.

Objectives of study

6. Objectives of study

To study the promotional activity adopted by chik shampoo in rural area.To study on distribution network of chik shampoo.To analyses the market share of chik shampoo with its competitor.To study the perception of cunsumer towards chik shampoo in rural area.

Research Methodology

7 Research Methodology

Research is common parlance refer to a search for knowledge. Research can define as a scientific and systematic research on a specific research on a specific topics. In fact, research is an art of scientific investigation. The dictionary meaning of research is as a careful investigation or inquiry especially through search for the new facts in any branch of knowledge. Some consider research as movement from known to unknown. Research may be defined as a systematic and objective analysis and recording of controlled observations that may lead to the development of generalization of principles or theories resulting in prediction and possibly ultimate control of events. Methodology is often used in a narrow sense to refer to methods, technology or tools employed for the collection of data as well as its processing. This is also used sometime to designate data collected to arrive at the conclusion. It provides answers to some of the major questions while research like what must be done, how it will done, what data will be needed, what data gathering devices will be employed, how sources of data will be analyses to arrive at the conclusion.

Method of Data Collection

Collection of data is the first step in statistics. The data collection process follows the formulation of research design including the sample plan, data, which can be secondary or primary, can be collected using variety of tools. Ones the research has been designed, the next step selection of the source of data.

There are two sources of data

Primary Source Of The Data

Primary source of the data refer to the data collected directly from the market place, traders. The data collected from the primary sources is the most reliable and helps to overcome the limitation of the secondary data. Primary data involves direct collection of data.

By Direct Interaction

Collection of primary data is by distributing the questionnaire to the selected samples to obtain their views on research by mail or through personal interview.

Secondary Source of Data

It includes the information collected from the secondary data i.e. secondary data has been obtained through the various sources are as,

Technical and trade journals, books, magazines and newspaper, report and publication of various associations connected with business and industry, banks stock exchange etc. public report and statistics, historical documents and other sources of published information. Through the direct search on the internet.Major parts of this survey report is collected through primary method, questionnaire and personal interviews were the main techniques used in this project.

Secondary method is also used such as trade journals, books, magazines and newspaper, report, books and internet were the major sources.

Sampling

8 Sampling

Sampling is a tool, which helps to know the characteristics of the universe population by examine only a small part of it. An integral component of research design is the sampling plan specifically, it addresses two questions.Sampling is also called as Random Sampling.SThe selection of the items is independent of the persons making the study that is the sampling operation is control objectively so that items will be chosen strictly at random probability.

The study of the entire universe will be impossible on the account of limitation of time of money. Hence sampling becomes investable. A sample is only a portion of the universe of population. According to YULE, a famous statistician The object of sampling is to get maximum information about the parent population with minimum effort, Properly done sampling produce representative data of the entire population.

Random sampling method is adopted for carrying out this project. Random sampling is categorized under probability method. Random sampling gives every unit of population known and non-zero chance of being selected in population.

Survey Report

9 Survey Report

The research process starts with formulating a questionnaire containing 13 questions both close and open ended and then a product survey is made by selecting retailer of Chik shampoo in all rural region in Gondia. Sample size 17 retailers taken for search. While conducting the research process precautions were as diversified as possible and all regions were given equal promotion.

The details of surveyed of shampoo are given as.

Name of shampoo inRural area

Percentage (out of 100)

Chik

62

Clinic Plus

18

Head and Shoulder

08

Vatika

12

Finding Data Analysis And Interpretation

After collecting the data, it has be processed and analyzed in accordance with the outline lad dawn for the propose at the time of developing the research plan the term analysis refers to the computation of certain measure along with searching for pattern of relationship at there exist along the data group. In the process of data analysis, relationship to statistic test of significance to determine with what validity data can be said to indicate any conclusions but there are persons who do not like to make difference between processing and analysis.

Analysis of data in general way involves number of the closing related operations which are preferred with the purpose of summery the collected data and organizing these in such a manner that they answer the research.

Analysis is an attempt to organize and summaries data in order to increase result, usefulness in such a manner that enables to relate critical points with the objectives of study. The data after collection has to be processed an analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan. Technically speaking, analyzing implies editing, coding, classification and tabulation of collected data so that they are an enable to analysis. The terms analysis refers to the computation of certain measures along with searching for pattern of relationship that exist along data groups.

Interpretation refers to task of drawing from the collected facts after an analytical and experimental study. In fact, it is a search for broader meaning of research finding a tasks of interpretation has to measure aspects that is 1) the effort to establish continuity in research through linking the result of a given steady with those of another, 2) the establishment of some explanatory concepts. Interpretation is concerned with relationship within the collected data, partially over lapping analysis. Interpretation also extends beyond of the data of the study to include the result of other research, theory, and hypothesis. Thus, interpretation is the device through which factors that seem to explain what has been observed by researcher in the course of study can be better understood and it also provides a theoretical conception, which can serve as a guide for further researches. Interpretation is essential for the simple reason that the usefulness and utility of research finding lie in proper interpretation. Interpretation leads to the establishment of explanatory concepts that can serve as a guide for further research studies, it opens new avenues of intellectual adventure and stimulates the quest for more knowledge.

Promotional Strategies In Rural Area

Promotional strategies are all activities that communicate the merits of the product and persuade target consumers to buy it. Promotional strategies are need to combine individual methods such as advertising, personal selling and sales promotion into a coordinated campaign. In addition promotional strategies must be adjusted as product move from earlier stages from a latter stage of its life.

During survey the following promotional strategies are applied.

Advertising

Through the rural markets offers big attractions to the marketers, one of the most important questions frequently asked is how do we reach the large rural population through different media and method?

It includes press and print, TV, Cinema, Radio and point of purchase and outdoor advertisement. Reach of formal media is low in rural households.

Print 18%

TV 27%

Cinema 30%

Radio 37%

Chart1

18

27

30

37

Responses

Sheet1

Responses

Print18

TV27

Cinema30

Radio37


Interpretation From the responses of the respondent TV advertising, Cinema and Radio advertising is more helpful for promotion of Chik shampoo.

And therefore the marketer has to consider the following points

Newspaper and Magazines

English newspaper and magazines have negligible circulation in rural areas. However local language newspapers and magazines are becoming popular among educated facilities in rural areas. Examples: Kashish in Gondia.

Television

It has a great impact and large audience has been exposed to this medium. Chik shampoo has been using TV to communicate with the rural masses. Regional TV channels have become very popular in rural region in Gondia region. Doordarshan and DD Direct Plus are reaches all parts of Gondia region.

Radio

Radio reaches large populations in rural areas at are relatively low cost. There are specific programs for farmers like farm and home/ Krishi Darshan in regional language. The farmers have habits of listing to regional news/ agriculture news in the morning and the late evening. The advertisement has to be released during this time get maximum coverage area in rural region.

Point Of Purchases

Display of hanging, festoons and product packs in the shops will catch the attention of prospective buyers. However a clutter of such POP materials of competing companies will not have the desire effect and is to be avoids.

Direct Mail Advertising

It is a way of passing of information relating to goods or services for sale, directly to potential customers through the medium of post. It is a medium employed by the advertiser to bring in personal touch.

Wall Painting

It is an effective and economical medium for communication in rural areas, since it stays there for a long time depending upon the weather conditions. The cost of painting one square feet area is just Rs.10. Retailers welcome painting of their shops so that shop will look better. Walls of farm houses, shops and schools are ideal places for painting and a company need not have to pay any rent for the same. Painting to be avoided during election and rainy season. The matter should be in form of pictures, slogans for catching the attention of people.

Tree Boards

These are painted boards of about two square feet in dimensions having the picture or name or slogan of the product painted on it. The cost of such painted boards is about Rs.80. these boards are fixed to the trees on both sides of the villages road at a height of about 10 feet from ground level. These boards attracts the attention of slow moving like cycle, bullock carts and tractors and people walking on the roads. Considering the poor condition of roads, even the buses move at slow speed through village road.

Personal selling

Group Meeting

Group meeting of rural customers as well as prospects are an important part of interpersonal media. The company able to pass on the massage regarding benefits of the product to large number of customers through such meeting. Group meeting key customer are conducted by banks, agricultural inputs and machinery companies in rural areas. The bankers visit an identified village, get the village people in a common place and explain the various schemes to the villagers. Such meeting could be organized in prosperous villagers for promoting benefits of shampoo and disadvantages of soap.

Opinion Leaders

Villagers place more emphasis on the experience of others who have used a product/brand make purchase decision. Opinion leader is a person who is considered to be knowledgeable and is consulted by others and his advice is normally followed. Such opinion leaders could be big landlords, bank official, panchayath-president, teachers, extension workers etc.

Melas

Melas are of different types i.e commodity fairs, cattle fairs and religious fairs and may be held only for a day or may extend over a week. At that occasion promotional activity should be done.At that time free sample of shampoo sachet, coupons and importance of Chik shampoo should be done

Sales Promotion

Trials

Shampoo getting encouraging trials from rural consumers, but extremely low penetration levels. Many people had no clue how to use a shampoo.To encourage trials, CalvinKare team travelled extensively in rural packets.Trials on schoolboys to demonstrate how to lather and wash, comb hair and show the difference.

We were as thrilled and excited as the volunteers during the demonstration. This exercise had a significant impact in breaking ice and made people confortable with the concept.

Impact

We also encourage trial through a consumer scheme, where anyone could take any 4 empty shampoo sachets to a retailer and take home a Chik sachet free. Through more risky, this scheme paid off and more and more people began asking for Chik at their local retail outlet

Advantages of Sales PromotionPrice Discrimination

Coupons, special sales events, clearance sales and discount.(price discrimination are offered in specific villages in the region.)

Effects on Consumer Behavior

Short-term promotions present an opportunity and encourage dealers to forward buy. This forward buying ensures that retailers wont to go out of stock. As dealers have more than normal stock. They think it advisable to advertise in local media, arrange displays and offers attractive promotion deals to consumers. These action helps in increasing the store traffic buy 2 dozen shampoo sachet get 2 sachet free.

Distribution Channel Strategies

The channel members consist of wholesalers and retailer who are middlemen in distribution and they perform all marketing functions. These middlemen facilitates of exchange of goods, create time, place and possession utilities. Therefore channels are useful to producers as well as consumers. Even if a company has a product that meets the requirements, of rural consumers, it will succeed only if it is made available at the right place as and when required by the consumer.

Que- 2 Tick the following shampoo provided to rural areas ?

Chart1

50

20

10

20

Responses

Sheet1

Responses

Chik50

Clinic Plus20

Heald & Shoulder10

Vatika20


Chik Shampoo 50%Clinic Plus 20%Head & Shoulder 10%Vatika 20%

Interpretation From the responses of the respondent it is clear that 50% of retailer provide the Chik Shampoo to rural areas.

Que- 3 Do you provide the Chik shampoo to rural aras ?

Chart1

70

30

Sales

Responses

Sheet1

Sales

Yes70

No30

3rd Qtr1.4

4th Qtr1.2


Yes 70%No 30%

Interpretation From the responses of the respondent it is found that 70% of retailer provided the Chik shampoo to rural areas due to maximum demand of customers in rural areas.

Key Factors In Rural Purchases

Factors influencing purchase of shampoo in market

% of Respondent

Looking at the Wrapper

66 Retailer recommends 28

Looking at the price

4

Logo identification

2Chart1

60

25

4

2

Sales

Responses

Sheet1

Sales

Wrapper60

Retailer recommends25

Price4

Logo identification2

does't brother to chek9


Wrapper 66%Retailer Recommends 28%Price 4%Logo Identification 2%Interpretation From the responses of the respondent Wrapper factor influencing purchase of shampoo in rural market. Que 4 What type of promotional strategy are used by company to provide Chik shampoo for rural areas ?

Chart1

81

14

3

2

Responses

Sheet1

Responses

Advertising81

Sales promotion14

Personal Selling3

Publicity2


Advertising 81%Sales Promotion 14%Personal Selling 3 %Publicity 2%

Interpretation- From the responses of the respondent it is found that 81% respondent told Advertising is most effective promotional strategy

Que- 6 Are you satisfied with the promotional activities adopted by CavinKare for rural areas ?

Chart1

70

30

Sales

Responses

Sheet1

Sales

Yes70

No30

3rd Qtr1.4

4th Qtr1.2


Yes 70%No 30%

Interpretation After surveying of 10 retailer it is clear that 70% retailers are satisfied with promotional activity adopted by CavinKare for rural area.

Que- 8 Do you face any kind of problem while convincing your customer in rural areas ?

Chart1

80

20

Sales

Responses

Sheet1

Sales

Yes80

No20

3rd Qtr1.4

4th Qtr1.2


Yes 80%

No 20%

Interpretation After survey of all retailer in Gondia rural it is found that 80% of retailers face problem while convincing customer in rural areas due to low literacy rate, communication problem etc.

Que 9 Do you think the company modified its existing policy toreds rural market ?

Chart1

25

75

Sales

Responses

Sheet1

Sales

Yes25

No75

3rd Qtr1.4

4th Qtr1.2


Yes 25%No 75%

Interpretation- From responses of the respondent it is cleared that only 25% of retailer thinks that company modified its existing policy towards rural people because of existing policy of company is more effective and they dont change in that policy.

Que- 10 When does company use such promotional strategy ?

Chart1

90

10

0

Responses

Sheet1

Responses

All around the year90

During festival season10

Before the season


All around the year 90%During festival 10%

Interpretation - After survey it is found that the company use promotional strategy all around the years because of to remain competitive in ever changing dynamic world.

Que 12 Does Chik has the most aggressive marketing strategies ?

Chart1

15

20

10

40

15

Sales

Responses

Sheet1

Sales

Strongly Disagree15

Disagree20

Nither agree nor disagree10

Agree40

Strongly agree15

Strongly agree 15%Disagree 20%Neither agree nor disagree 10%Agree 40%Strongly disagree 15%

Interpretation - After deep survey of 10 retailers 40% the respondent agree has Chik shampoo most aggressive marketing strategy.

Hypothesis And Testing

10. Hypothesis And Testing

The hypothesis testing are as

From the data analysis it is proved that the purchase of Chik Shampoo is influenced by price, advertising, perception, promotional strategy and quality.

From data analysis it is proved that the distribution strategy is most helpful to purchasing of shampoo in rural areas.

TV Advertising, Cinema and Radio advertising is more helpful for sales promotion of Chik shampoo in rural region.

Limitations of the study

11Limitations of the study

Normally it is seen that the respondents are not really very much willing to provide the necessary information or even they just scroll off to save their time.

The survey is based on Gondia District only and sample size were just 17 so the result is not to be considered as universal.

Due to busy schedule of respondent they were unable to give answers of some descriptive questions.

Most of customers do not want to replay because they think that they were not benefits by questionnaires.

Conclusion

12 Conclusion

After data collection and data analysis by varies tools and techniques the researchers found following main points. Perception of rural consumer towards the Chik Shampoo is positive in Gondia district.Educated persons are not use the Chik Shampoo but uneducated persons are use maximum Chik Shampoo. Price discrimination strategy most effective in rural consumer such as Coupons, Special sale events, Discounts, Buy 5 get 1 free sachet of Chik Shampoo in Gondia district.Television advertisement and special events in Melas, Group meeting plays major roles in promotion of Chik shampoo in rural areas.Low poor class peoples are highest purchasers of Chik shampoo in rural areas.About 86% of customers prefers of Chik shampoo sachet rather than bottle.Price, Colour, Fragrance, Size (in ml) and availability in store is in main factors which influence greatly to the rural behavior in rural customers.

Suggestion

13 Suggestion

On the basis of various observations and conclusions drawn, the researchers recommended the following points, which should be taken into consideration by the company.Price, colour, fragrance, size (in ml) and availability in shops and stores is in main factors which influence greatly to the buying behavior, therefore company should work on these factors is increasing sales.Educated persons are not use of Chik shampoo therefore the company facilate the other promotional strategy.Television and special events are not sufficient for sales promotion, other communication strategy, change educated rural consumer mindset and other promotional strategy should be done.Most of rural consumer use the soap for health for hair therefore company and retailer should be more effective for promotion of Chik shampoo.Rural consumers more attractive towards entertainment so through entertainment event more effective fir promotion of Chik Shampoo.

Use of technology, such as mobile phones to communicate the rural consumer and tells about advantages of Chik shampoo via massages, direct call i.e. direct selling.As the percentage of awareness by promotional events is very low therefore company should give more attention on these field by organizing more promotional events.

Bibliography

14 Bibliography

Websiteswww.google.comwww.ckpl.comdoccollection.com Magazines Marketing Mastermind July 2014Marketing Economics Aug 2014

Annexure

QUESTIONNAIREDealer /Retailers Name : ____________________________________Contact Number : ____________________________________Address : ____________________________________ ____________________________________Age : ____________Do you provide the Shampoo to rural areas ?

c Yes c NoTick the following shampoo provided to rural areas :

c Chik c Clinic Plus c Head and Shoulder c Vatika c Anything that its inexpensive

Do you provide the Chik Shampoo to rural areas ?

c Yes c No If Yes, please specify ____________________________________ ____________________________________ ____________________________________What type of promotional activities are used by company to promote Chik Shampoo for rural areas ?

c Advertising c Sales Promotionc Personal Selling c Publicity According to you which promotional strategy is more effectives ?

c Advertising c Sales Promotionc Personal Selling c Publicity

Are you satisfied with the promotional activities adopted by CaviKare for rural areas ?

c Yes c No

Do you have any suggestion for the improvement in the promotional and sales activity ?

____________________________________ ____________________________________ ____________________________________

Do you face any kind of problem while convincing your customer in rural areas ?

c Yes c NoIf Yes, please specify ____________________________________ ____________________________________ ____________________________________ Do you think the company modify its existing policy towards rural market ?

c Yes c NoIf Yes, please specify ____________________________________ ____________________________________ When does the company use such promotional activities ?

c All around the year c During festival seasonc Before the season [ please, mention month & duration ] ____________________________________ ____________________________________ c Other, please specify ________________________

Do you think the company has to modify its existing sales policy ?

c Yes c Noc If Yes, Please specify ________________________ ____________________________________ ____________________________________

Does Chik has the most aggressive marketing strategies ?

c Strongly agree c Disagreec Neither agree nor discharge c Agreec Strongly disagree

a study on promotional strategy adopted by chik shampoo for rural areas.doc

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