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Chapter Six

Conclusions, Findings, suggestions

and recommendations

6.1 Conclusions and Findings:

The fast moving consumer goods (FMCG) segment is the fourth

largest sector in the Indian economy.1 The FMCG Sector in India

involves a strict competition between the organized and unorganized

sector of consumer durables. India offers an abundance of raw

materials, low-priced labor costs, and also has a presence across the

entire value chain. FMCG industry provides a wide range of

consumables and accordingly the amount of money circulated against

FMCG products is also very high.2

The FMCGs companies have faced tough competition among

themselves over the years which is continuously increasing. This is

due to the increase in per capita income among individuals and also

various developments in rural economy. The FMCG sector has

changed its strategies and has opted for a more well-planned

marketing of the products to penetrate both the rural and urban

markets.

The study concludes that the Fast-moving consumer goods (FMCG)

are products that are sold quickly and at relatively low cost3. Thus

1 01.08.2018_Commerce_Ishankumar.pdf 2 Dynaprassarak Mandal.docx 3 Ibid

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the Fast moving consumer goods (FMCG) manufacturing is very

much high quality products that fly off the production lines as fast as

they fly off supermarket shelves. The example are non-durable goods

such as soft drinks, toiletries, over-the-counter drugs, processed

foods and many other consumables. Typical products include home

cleaning items, personal hygiene goods and foodstuffs, such as crisps

and ready meals. Major players include companies which produce a

wide portfolio of products, while other companies tend to focus on

single product areas.

FMCGs usually have a short shelf life due to high consumer demand

or that the product deteriorates rapidly. Some FMCGs, such as meat,

fruits and vegetables, dairy products, and baked goods, are highly

perishable. Other goods, such as alcohol, toiletries, pre-packaged

foods, soft drinks, chocolate, candies, and cleaning products, have

high turnover rates and therefore the sales are sometimes influenced

by some holidays and season. Thus the consumer daily uses products

are taken for survey. Although noticed that the profit margin made on

such FMCG products is relatively small, they are generally sold in

large quantities which makes the cumulative profit substantial.

Most of the FMCG companies only treat rural sector as adjuncts and

not as target market and focus on brands for rural sector. The winning

strategy instead is to focus on their core competency such as

technological expertise to design specific products for the rural

economy. The most remarkable example in this context is the launch

of sachets which has transformed the rural market considerably as

packaging in smaller units and lesser-priced packs increases the

product‘s affordability. Another case is of Britannia with its Tiger

brand of low priced and conveniently packaged biscuits becoming a

great success story in rural markets. Companies also need to change

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the profile of their brand managers. A step in this direction like hiring

managers from the Institutes of Rural Management could probably go

a long way in improving the situation. Along with the cultural

dynamics, the needs and latent feelings of the rural people have to be

well understood before launching products in rural segments.

Marketers would do well to first understand this and then designing

products accordingly.

The data for the research study was collected from both primary and

secondary sources. Field survey was conducted by intensively

interviewing individuals of different families considering them as the

representative of the household. Primary data regarding socio-

economic characteristics like household size, age, income, gender,

occupation, education, brand preference, purchase behaviour and

consumer loyalty were collected by personally interviewing the

respondents using a structured questionnaire which was pre-tested

and redefined. To identify the mistakes and to check the correctness

of questions included in the questionnaire, a pilot survey had been

conducted by getting the questionnaires filled by hundred persons

from different socio-economic backgrounds. The respondents were

contacted individually and the objectives of the study were clearly

explained to them to ensure their cooperation and accuracy in their

responses. This revealed the shortcomings in it and provided ideas to

include several other important questions which were essentially

required to make the study comparative.

In this research study, Overall India is the sampling frame. India’s

few states ranks top in FMCG marketing and consuming products.

With a population of more than1 billion people, India is a big market

for FMCG companies. Around 70% of the total households in India

reside in the rural areas. The total number of rural households is

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expected to rise more in coming years, which represents the largest

potential market in the world. The e-business or e-marketing has

significantly evolved benefitting rural and urban economy with higher

gains.

The top six towns with highest spending FMCG products are selected

for the study. Indian FMCG industries have higher growth potential

when compared to the world, due to the growth stage of the industries.

The top five towns continue to lead; however, faster growing

categories will soon bring other towns and cities soon to join the race

and provide new avenues for growth.

Districts and union territory covered are Chandigarh

Chandigarh Municipal Corporation, Greater Mumbai, Chennai,

Ahmedabad, and Ludhiana with its most populated villages from

rural side are Raipur Khurd, Ghodegaon, Thiruppukuzhi, Kuha and

Jagirpur

A sample of 100 from rural markets and 100 from urban markets

(total 200 consumers from each district) is taken for the given

research study. One representative city or twon with one

representative highly populated village are selected. Income is also

selected as second base reason because income has a direct positive

effect on buying behavior of consumers. If income rises or falls,

consumer consume more or less accordingly. All districts are

arranged as per high to low per capita income.

The variables used to capture socio economic characteristics of

respondents are age, gender, occupation, size of village, income and

purchase decision. The primary data collected from rural and urban

consumers are quantified and collecting interview schedule, 100 rural

and 100 urban customers in different Districts of overall India.

Multiple-stage sampling has been used for selecting the sample. In

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the research study, probability systematic random sampling has been

used for collecting the data; it is also called an Nth name selection

technique. This method is used because under this procedure each

element in the population has a known and equal probability of

selection. Further, probability random sampling has been used for

giving equal probability to every unit.

The thesis concludes that the F.M.C.G. companies are working on

many different online strategies which will help them to maintain a

better relationship with their existing customers and will help in

brand building and customer loyalty. These strategies are formed in

accordance with these factors so as to increase the customer base as

well as to have a greater market share. The companies should

consistently keep on posting updates and alerts regarding the

brand/products to keep the consumers updated. As consumers

perceive companies using online marketing more reputed than those

using traditional media, companies should bring out more

innovations in their social media campaigns to keep up to their

consumers expectations.

F.M.C.G. companies need to make sure that the information they

provide online is credible to the core because consumers don‘t follow

a brand that showcase false information about itself or its products.

Companies need to consistently track the comments or reviews of

their products on various online platforms so that they can ascertain

any negative word of mouth going on and hence should try to resolve

the issues relating to it.

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6.2 Findings:

The study shows that every consumer in the market has their own

preferences for Branded and Unbranded goods. Consumers will be

looking for certain attributes before purchasing the products. The analysis

and interpretation shows the collected information from sample

respondents, which provide the clear understanding of the respondents‟

attitudes regarding various aspect of consumer behaviour about Fast

Moving Consumer Goods (FMCGs) or non-durable goods - purchase and

their consumption. Analysis of data has done through continuation of the

statistical tools which test the hypotheses. A brief account of the findings

is given below:

1. The study depicted that the households’ purchases a variety of goods

and services to satisfy his and his families wants and he is always

influenced in his purchasing activities by some considerations which

lead him to select a particular commodity or a particular retail store

in preference to others. So, household consumer buying is more

complex. Household purchases are likely to be influenced by

physiological, psychological and sociological, factors.

2. Every family and individual has physiological need such as hunger,

shelter, thirst, etc., which have to be satisfied for survival. In India,

because household consumers are having different characteristics

such as various religious, customers, and speaking different

languages. The study of consumer behavior is really important in the

present scenario because production has become sophisticated with

the advancement of science and new technology. Buying behavior is

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very much influenced by experience of their own and of neighbor

consumers and his family.4

3. The study includes the goods of FMCG of different categories like :

Oral Care, Hair Care, Skin Care, Personal Wash Soaps, Toilet

Cleaners, Dish/Utensil Cleaners, Floor Cleaners, Mosquito

Repellent, Fabric Wash, Food, Health and Beverages Products,

Bakery Products, Dairy Products, Beverages and Chocolates.

4. India's 2018 population is estimated at 1.35 billion based on the most

recent UN data. India, located in South Asia, is bordered by the Bay

of Bengal, the Arabian Sea, the Indian Ocean, Pakistan, Bhutan,

China, Nepal, Burma, and Bangladesh. India is the world's 7th

largest country by area and the 2nd most populous country with more

than 1.3 billion residents. 1 of every 6 people on the planet live in

India, and between the 2001 and 2011 censuses, the country grew by

17.7%, adding 181.5 million people. The country has doubled in size

in just 40 years, and is expected to unseat China as the world's most

populated country in the next couple decades. India's current yearly

growth rate is 1.11%.

5. The country as a whole has a population density of 412 people per

square kilometer, which ranks 31st in the world. In Mumbai, the

population density is 21,000 people per square kilometer

(54,000/square mile).

6. From the selected district of the country, from Chandigarh out of 100

selected urban households only 94 replied and from rural Chandigarh

only 86 out of 100 selected households replied. From Mumbai 90

households from urban out of 100 and 89 households from rural out

of 100 replied to questionnaires. From Chennai urban 92 households

4 Santosh---Ph.D.---GUG----2018---FINAL.doc

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and rural 80 households were selected. From Ahmedabad 93 urban

households and 88 rural households were selected lastly from

Ludhiana 91 out of 100 urban households and 87 out of 100 rural

households were selected.

7. It has been revealed that both, the rural as well as urban are spending

their major source of income on food-items, and then on consumer

items. The distribution of monthly per capita expenditure generally

are the same in the most of selected products, but rural people

concentrate less on education and neither met any expenditure on

rates and rents. It has been observed that the monthly income per

capita expenditure distribution is same to some extent and different to

another extent in rural and urban areas. The rural distribute their

63.70% monthly per capita only on food items. The marketers

therefore attract the consumers towards this by preparing the strategy

like e-marketing or basic rural marketing. The rural areas consumer

are moving towards spending on consumer goods and fuel, clothing

and footwear, and this also attract the multinationals to enter their

brands into the rural market.

8. Among the urban respondents, the top priority 36% is for money

making and spending while among the rural respondents is 44% for

food and welfare of family members. Notable is the higher priority

accorded for imparting professional education of children among

both semi urban and rural respondents.

9. The study revealed that large majority of urban respondents used

internet and social media as a medium of advertisement; newspaper,

magazine, television and outdoor media stood at second, third, fourth,

and fifth position. It is important to note that the sample respondents

of rural area were indifferent to urban sample respondents. Radio and

television was the important media for rural sample respondents as a

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source of advertisement or media. Analysis of the data also confirmed

that residential status of respondents has effect on the use of different

media of advertisement. The level of education and occupation of

respondents significantly affected the use of media.

10. It is observed that the 60.00% urban household consumers are

agreeing & 28.04% are strongly agreed that E-marketing is

necessary to catch the consumer’s attraction. The survey noticed that

as Colgate and Coca-Cola have shown that the hub-and-spoke model

works well for FMCG products because it addresses the inventory

cost and transportation infrastructure issues that are associated with

distributing products in rural emerging markets while also providing

for good product availability at the small-village level.

11. It is seen that there is a significant difference in the role of persons

influencing the decisions for buying Personal Care5, Cosmetic and

Toiletry Care; Household Care products except Food, Health and

Beverages.

12. It is revealed that there is a significant difference in the role of final

maker/s for buying Personal Care, 6 Cosmetic and Toiletry Care;

except Household Care products; and Food, Health and Beverages.

13. About the finalization of purchase decisions, it was observed that for

buying Personal Care; Cosmetic Care and Toiletry Care; and

Household Care products most of the people make final decision due

to their inner instinct. They were not influenced by anyone. They

themselves are decision makers‟. Role of children or spouse and

father or mother is almost same for taking final decisions for buying

products in rural and urban areas. And very less number of decisions

5 Maria-Joseph.pdf 6 Ibid

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is taken by family members jointly. But for buying Food, Health and

Beverages, rural and urban consumers took maximum decisions by

themselves. Father or mother, children or spouse have contributed

equally in rural and urban areas. But father or mother plays a major

role in rural areas where as children or spouse play/s a major role in

urban areas for buying the above mentioned goods. On the other

hand, family members together play a less role in buying products. It

is concluded that residential status of respondent has effect on the

finalization of purchase decisions by different members of family, as

well as level of education, occupation, and level of income of

respondents significantly affect the finalization of purchase decisions.

14. The study revealed that rural and urban areas, are influenced by

himself or herself, children or spouse and father or mother were also

influenced to respondents in purchase followed by influence of

friends/neighbours and relatives, whereas the shopkeeper was

considered the least significant factor. It is also concluded that

residential status has no bearing on the consideration of the

respondents as an influencing factor but the level of education,

occupation and level of income significantly affected the

consideration of the respondents.

15. From the study rural household consumers 54.18 disagree that e-

marketing encourage them to purchase household products but 25.11

also believe that e-marketing plays important role in stimulation but

to particular products like electronics like television, mobiles.

16. Factors motivating to total sample respondents towards the purchase

of Personal Care; Cosmetic and Toiletry Care; and Household Care

products viz. quality, size, more features, long lasting and company

brand image stood first, second, third, fourth and fifth position among

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the other factors. However, reasonable price and free offers were also

considered important factors in comparison to others.

17. Factors motivating to total sample respondents towards the purchase

of Food, Health and Beverages, viz. flavor, taste, freshness, protein

content/nutrition value/quality, size and company/brand image stood

at first, second, third, fourth and fifth position among the other

factors. However, reasonable price and free offers were also

considered important factors in comparison to others.

18. It is revealed that rural consumers buy same product again and again

due to its reasonable price for buying unbranded product/s as their

mean value is high in comparison to other factors of influencing.

Secondly, they are influenced by popularity of product and hygienic

packaging. Good quality is the least influencing factor for them for

buying unbranded product/s because they are inclined towards

buying products at a reasonable price. On the other hand, popularity

plays an important role for influencing the urban consumers because

mean value is high. The reason can be they have better market

knowledge which might be gained by social media and advertisement

and the advice of family members and relatives. Hygienic packaging,

reasonable price are next influencing factors for urban consumers.

The urban respondents are so much quality conscious. This showed

that they are less inclined towards the quality of unbranded products.

It is concluded that, there is a significant difference between the

preference of rural and urban consumers for buying unbranded

product/s because mean values of factors influencing them are

different.

19. It is observed that rural consumers buy the same product again and

again due to popularity of branded product/s as their mean value is

high in comparison to other factors of influencing. Secondly, they are

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influenced by hygienic packaging and easy availability. Reasonable

price and continuous use in the past are the least influencing factors

for them for buying branded product/s. On the other hand, good

quality and popularity play an important role for influencing urban

consumers to buy branded product/s because means value is high.

Hygienic packaging and easy availability are almost next important

factors for influencing the urban consumers. Continuous use in the

past is least important factor for them. It is concluded that, there is a

significant difference between the preference of rural and urban

consumers for buying branded product/s because mean values of

factors influencing them are different.

20. It is depicted that poor quality of product was considered the main

reason of switching over to another product by rural and urban

consumers because consumers‟ are now become more health

conscious. That’s why, for maintaining good health they do not want

to compromise with the quality of product. Another reason of

switching over to another product is non availability of

branded/unbranded products by urban consumers but here rural

percentage is low as compared to other reasons. It showed that urban

consumers are more inclined towards brand loyalty. Just like above,

availability of free gift / discount with new branded/unbranded

products, losing popularity, just for a change and friends experience

with new branded/ unbranded products are also considered effective

reasons of shifting for urban respondents as compared to rural

respondents. Higher price of branded/unbranded products, lack of

extra quantity and impressed by the advertisements of new branded/

unbranded products are considered effective reasons for rural

consumers as compared to urban consumers. The reason behind this

might be rural consumers are more price conscious. That’s why; they

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want to require some extra quantity at a same price or even at a less

price. Sometimes, they are more impressed after seeing the

advertisement of new branded/unbranded products which can satisfy

their above requirements. Manufacturing defects are the least

important reason of shifting from the particular product for both rural

and urban areas.

21. It is concluded that there is a significant difference between rural and

urban consumers in shifting from the particular branded and

unbranded FMCG products.7

22. The survey undertaken includes personal interview too of the urban

and rural household living in selected district under survey. The

interview of these household consumers gave the understanding that

even in these days most of people follow traditional marketing

methods to know the price, choice, usage of product. The best method

mentioned by consumer was advertising in television. Below graph

gives the attitudes of the consumers towards advertisements, here the

data in taken in general that is urban and rural household interview

information about the advertising affecting their preferences and

choices. One can clearly make out that urban consumers perceive

advertisements as a source of information and awareness, be it

general or towards TV commercials.

23. The survey noticed that almost 90 percent of the people from urban

sector uses social media for various reason but almost 96% of urban

consumers agreed that they use it for finding information about the

products, services and brands available in market. When compared

to rural consumers only 59% of rural consumers use social media for

finding about products and brands. Rural consumers were mostly

7 Maria-Joseph.pdf

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using social media for listening music and watching videos that is

74%. It is noticed that rural consumers usage of social is limited to

watching videos or listening music and for urban it’s mostly used for

finding products available online or brands available. Very few rural

household use social media for getting in touch with others or for

exchanging documents and files but in case of urban household

consumers almost all use social media for some or the other reason.

24. E-marketing or Internet marketing allows global marketing as it is

less expensive, makes marketing easier, can be sold and encash bills

anywhere, increases the choice of products and has vast availability.

Influencers influence the decision making process of a potential

consumer. The information and facilities are found to be limited to

only urban and semi urban areas only. Both sector survey consumers

find that Influencers can be advertisements, friends, relatives, third

party or it can be self-motivated also. In most of rural sector of

selected districts friends and relatives are the major influencers

behind decision making.

25. it can be concluded that E-marketing is the new entrant in the modern

marketing world of rural sector and therefore it is observed that over

all share of E- marketing is only 19 % in which 9 % is through online

marketing and remaining 10 % through Social media blogs, On-line

Forums and Social networking sites and traditional marketing tools

such TV commercials, print media and word of mouth marketing such

as family- friends- relatives accounts to major percentage in rural

areas. Traditional marketing has its deep roots in rural area

compared to urban consumers. The present rural sector customers

are curious about online marketing and wide range of products and

more discounts.

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26. It was revealed from the personal interview that out of selected rural

and urban respondents, 55 % feel that convenient of online

marketing or shopping is the important factor while only 45%

respondents in total consider it least important and agree with

shopping at selected shop. Saving of time, money and energy could be

played an important role behind this factor. This showed that there is

no significant difference between rural and urban consumers for the

consideration of this factor in selecting the shop.

27. It was revealed that urban respondents as compared to rural

respondents feel that reasonable price is not very important factor for

the consideration of the final selection of product. And only few rural

respondents as compared to urban respondents feel that reasonable

price is important and not so important factor. It showed that there is

a significant difference between rural and urban consumers for the

consideration of this factor in selecting the product.

28. It was showed that maximum number of rural respondents and urban

respondents admit that availability of credit facility is very important,

important and somewhat important factor for selecting the products.

But very few rural respondents as compared to urban respondents

admit that it is least important and not so important factor. It

concluded that there is a significant difference between urban and

rural consumers for the consideration of this factor in selecting the

products.

29. It can be concluded from the survey interview that rural consumers

whose family monthly income is below Rs. 5,000 have increased their

consumption for Personal Care products has increased their

consumption in last three years. The reason behind may be that

consumers are now influenced by the marketing strategies which is

adopted by marketers for improving their sales volume. Due to

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various programmes have been introduced by the government of India

for improving the standard of living and reducing the illiteracy rates,

this type of change has been observed. Those consumers who are

earning between Rs. 20,000 to Rs. 50,000, they are buying these

products since long. The reason behind this may be they have the

capacity to spend the money. Consumers‟ whose monthly income is

above Rs. 50,000 are less in numbers but they have been using

products from last 3 to 7 years. Out of 890 consumers few household

consumers have given their responses. This might be due they are low

family monthly income earners or they are having less awareness

regarding such type of products. In urban areas, almost all

respondents have given their responses i.e. 248. Consumers‟ whose

family monthly income is less than Rs. 5,000 are very less in number

for consuming these products and consumers whose family monthly

income is above Rs. 5,000 have increased their consumption since 8

to 10 years. This showed that urban consumers are more aware about

Personal Care products as compared to rural consumers. It meant

that there is a significant difference between rural and urban

consumers towards the longevity in using the Personal Care products.

30. It was revealed that respondents of rural areas have increased their

consumption since less than 3 years for Cosmetic and Toiletry Care

products. It is seen that respondents who have different family

monthly income are lying maximum in the range of less than 3 years,

which again focused that this could be due to more stressed imposed

by marketers towards marketing function.

31. It was revealed that 44.0% of rural respondents have no comment

upon the statement i.e. Brand recognition is the only Guarantee of

Quality as compared to 31.2% of urban respondents. 20.4% and

16.0% of rural respondents disagree and strongly disagree

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respectively this statement as compared to 29.6% and 21.6% of urban

respondents respectively. It shows that urban respondents are more

in numbers who are not agreed upon this statement. The reason might

be they think that there are various other factors existed that can

evaluate the quality of the product. It showed that there is a significant

difference between rural and urban respondents on believing the

above statement.

32. The personal interviews of the selected 890 household consumers

from rural and urban areas exhibited that almost 660 percent of the

total respondents prefer eco-friendly packaging because it is a well-

known fact that pollution has increased many times and to check upon

it or to control it, this is the best way to overcome such kind of serious

problem of our environment. Also very few persons in rural areas,

prefer to have only convenient packaging, might be the reason is all

other categories are much more important; like protective packaging

is provided by seller then there is a less chances of spoilage, damage,

evaporation etc. or even packing is more eco-friendly which is good

for everyone rather than to be more convenient packaging.

33. Thus, social networks have a role in influencing the behavior of

consumers in the virtual environment, particularly when the degree

of exposure of messages and the relation created between the variety

of information given and the consumer who is about to make a

purchase. It is strongly consider that the above generated factors are

very much responsible for influencing the consumers for trusting

online or social media platforms before considering buying an

F.M.C.G. product. These factors also have a substantial impact on

the perception of the customers towards F.M.C.G. brands as it has

come out that customers consider companies using online marketing

strategies as more innovative and reputed than others.

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6.3 Summarization:

The research thesis noticed that the technological revolution that has

occurred in recent years has impacted our daily life within a household in

a variety of different ways. New media technologies or E-marketing has

now become embedded in society and has resulted in major societal

changes. One of the very important social sectors that have been affected

most is the household. The goal of this study was to investigate if and how

new e-marketing of FMCGs have impacted on social and economic life of

a household. My main focus was centered on the household and if e-

marketing have the ability to bring the positive change in the behavior of

the household members. Firstly, my investigation process confirmed that

e-marketing of FMCGs are now an intrinsic part of family and household

life. This was evident as each household was immersed with a variety of

different digital technologies, everything from mobile phones to home

computers in searching new FMCGs products and its discounted prices

and even new brands. It was clear that they play a fundamental role in

daily life. My research shows that new media technologies and e-

marketing are having a negative impact on social interaction within the

household in terms of “time allocation patterns, in the choice of social

functions, in the transmittal of cultural values, and in overall human

behaviour”.

Although my study provides important and very interesting findings

regarding the impact of e-marketing of FMCGs on social and economic

life of rural and urban household, there are a number of limitations in this

study. My data was obtained by focusing my attention on five selected

highest expenses on FMCG products districts from India. Rural and urban

talukas were selected randomly and questionnaires were distributed and

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interviews were conducted in each household. While a greater

understanding and in-depth knowledge was attained, expanding the

sample would yield a greater range of findings. If there were no time or

cost restraints in conducting the investigations, a greater range of

households could be investigated. A number of direct observations could

be conducted in each household over a longer period of time. This would

allow me to observe a larger number of individuals within each household,

beyond the family unit. Initially, this is what I set out to investigate,

however, in each household there were no other individuals present apart

from the family. More direct observations would allow me to obtain a

clearer picture and to see how e-marketing and social media technologies

impact on friends and other social actors outside of the family unit.

Additionally, this would permit me to build up a better relationship with

each participant and I could gain more from them over a longer period of

time. I could also interview each participant, instead of being confined to

just few selected rural and urban sectors from each district.

6.4 Suggestions:

In the light of the above findings, the following suggestions are offered:

1. Usually rural consumer markets are mainly influenced by the

traditional marketing practices when compared to urban markets. It is

observed that rural consumer behavior depends on age old beliefs and

easy accessibility with the local retailers and wholesalers markets. The

rural consumers think local markets are hassle free and dependable

than E-marketing. The E-marketing companies needs to focus more on

educating rural consumers about the benefits of online marketing and

door step deliveries with fast response for grievances. In the county

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like India the rural FMCG markets are more prices sensitive. The rural

marketing methods require different branding strategies which include

low cost manufacturing and cost effective promotional campaigns

along with efficient distribution channels.

2. The most attractive price plank can atomically promote the FMCG

products in rural areas. But sometimes urban consumers are not

worried about pricing when it comes to brands and superior quality of

the goods. The rural consumers primary concern will be value for

money for the products they intend to purchase, feel good experience

with consumer services and quality of the products. The brand building

exercise and promotions should ensure rural consumers to trust the

new products launched in the market and they should feel the products

they trying to buy are not inferior products at low price. The rural

consumers may be not be very much particular about branded products

when compared to urban consumers, yet end of the day every consumer

be it urban or rural consumer wants to purchase products with good

performance, quality and reliability.

The key for successful rural marketing strategies involve quality of

products with low price. The E-Marketing might have little advantage

in rural markets when it comes to providing the goods with competitive

pricing because they are surpassing all the middle men and retailers in

the marketing chain. This kind of direct and door step E-marketing

needs effective distribution channels and awareness of changing rural

marketing trends.

3. The FMCG companies should provide more durable products to rural

consumers with quality and more quantity with competitive pricing to

sustain in the consumer markets for long haul. The resent trends

showed that rural consumers are also getting more awareness in terms

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of brands, usability, safety and packing because of print media,

Television and Online information through internet. The market

research programs and surveys will help FMCG companies to develop

better products and marketing strategies to cater the rural consumer

needs along with strengthening the distribution system will ensure more

market penetration.

4. More Innovative ways of marketing and promotions could help in the

increase rural market share. Putting up little stalls in market weekly

bazars will help to reach more rural consumers. Distribution of sample

products to consumers in the rural areas to try out of the products will

help the rural consumers to identify with the products more. The

demonstration of product services will help rural consumers have

firsthand experience. The feedback on the sample products will help

FMCG companies to develop more appealing pricing, packaging and

promotional strategies that are targeted to increase rural sales. All

these ground work will help the FMCG E-marketing companies in

longer when a consumer becomes comfortable with product

identification and eventually they will get used to ordering online.

5. India is witnessing the new digital revolution with the help of Indian

government initiatives aiming to strengthen the E- commerce and

encouraging rural population to be the part of Digital India campaign.

There are two segments of rural consumers we can identify in the rural

consumer markets. One segment of people is above thirty five years

who are still comfortable with traditional purchasing practices. Most

of them are having very little literacy rate. This makes the E - commerce

and E –marketing companies to depend on more audio visual methods

to educate the customers and promotion of the products. For this kind

of segment of people print media promotions might not be more

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effective. The other segment of rural consumers are more young

consumers and comfortable with the changing technological trends.

The young rural consumers are slowly adapting to the E-marketing

practices. The low price smart phones and availability of good band

width of internet at affordable prices propelling the digital dream of

Indian e-marketing arena.

6. The rural consumers mostly depend on agrarian income. The spending

capacity of rural customers comparatively less when compared to

urban consumers because the agrarian income of rural consumers are

usually seasonal and fluctuating as it also depends on crop eliding.

During the crop season more cash flow can be observed in the rural

markets. Majority of the rural consumers having low per capita of

income. This emphasis the need for developing and designing low

priced products with more durability, capable for rough handling and

specifically suitable to the rural markets. The brand names of the

products sold in rural markets should be easy to remember and

pronounce. The FMCG companies should focus more on maximizing

the seasonal sales and make the rural consumers to stretch their buying

capacity. The agriculture products are two types one is perishable

products and nonperishable products with little longer duration. When

it comes to rural agriculture E-marketing farmer needs proper

planning and distribution channels to market their products for various

segments of consumers. The formers can advertise their products on

social media or on online product trading web sites. Tenders can be

collected though online and supply and demand can be balanced. The

governments are proving seller and buyer market yards to remove

middle men. This will maximize the profits of the farmers. With the help

of online marketing and smart phone applications the farmers can

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directly do business with FMCG companies. Later those FMCG

companies can cater the needs of end users and consumers by their

direct selling or by E-marketing methods.

7. The corporate FMCG companies need to identify the rural consumer

needs and rural consumer behavior. Most of the times rural consumers

are not loyal to brands unless they find them more durable, useful and

affordable. Rural consumers depends on word of talk and mouth

publicity about the products. The local resellers and fellow consumers

influence the buying trends in rural area. Print media is not much

effective in rural areas because of low literacy rates and this makes

FMCG companies to find other alternative methods to influence the

rural consumer behavior along with educating the consumers to make

them understand that they have other choices of products they can trust

and buy rather than just blindly following tier old buying habits. Again

this can be backed up with brand building exercises and keeping the

quality of the products at par with affordable price along with better

service support. The traditional retailer selling having competitions

with online E-marketing. Online E-marketing companies are expanding

their revenue share in rural areas with direct door to door delivery with

competitive pricing with lot choice for consumers to choose from the

long list of brands. The price has started among the E-marketing

companies and local whole and retailers. The E-marketing able to

provide banded products to low cost because of their modus of

operations by removing middle men in the supply chain. To withstand

this the local retailers should focus on maximizing more consumer

satisfaction and try to retain old customers with little discounts,

attractive schemes, and door deliveries to provide easy and happy

buying experience. The local wholesalers and retailers should

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strengthen their customer service team for more quick service support

and deal the consumer grievances effectively. The local wholesalers

and retailers can also take orders on phone or through any customized

android applications like Whatsapp or other Applications to reach

more local customers with the help of technology. This will help local

retailers to be in the game and cope up with changing consumer needs.

8. Companies would also do well to have a proper sales and distribution

network. In terms of sheer reach the companies can gain significant

competitive advantages as the rural market is highly fragmented and a

brand needs to be on the shop shelf before it can be sold. Companies

should also make sure that the prices of their products are not pushed

up because of a channel of middlemen who are neither required nor

add any value to the product. The rural market remains quite price-

sensitive and thus squeezing costs at every stage is of vital importance.

Some FMCG giants like HLL are in process of enhancing their control

on the rural supply chain through a network of rural sub-stockists, who

are based in the villages only. Apart from this to acquire further edge

in distribution HLL has started Project Shakti in partnership with Self

Help groups of rural women.8

9. Finally an effective rural strategy for FMCG companies must include

the use of traditional media for creating awareness about their

products in the rural markets. The need for unconventional media

arises as the mass media is too glamorous, interpersonal and

unreliable for a rural consumer. The traditional media on the other

hand with its effective reach, powerful input and personalized

communication system will help in realizing the goal. Besides this when

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the advertisement is couched in entertainment it goes down easily with

the villager.

10. In rural areas local retailers and wholesalers at times provide credit

to consumers. The personal repo build between wholesalers and

retailers over the period of time with the local consumers on person to

person basis influence the credit policies and buying habits. The main

issues related with rural markets are malpractices involved in

businesses practices and exploitation of uneducated consumers by few

wholesalers and retailers. But the accurate information of price list,

quality of products, guarantees, quick customer services and mainly

confidence in the good business practices of the retailers and

wholesalers will build more loyal consumer base over the period of

time. The retail marketers should adopt unique promotional methods,

strategies those are specific and suitable to that region to compete with

E-marketing companies. The local consumer sensibilities, buying

habits, changing consumer behaviors and the cash flow in the markets

will help in developing the business plans for rural retailers,

wholesalers as well as online FMCG E-marketing companies. The

consumer surveys, product feedbacks and audio visuals promotion

methods will help the shake holders of the rural markets be it rural

retailers or E-marketing FMCG companies to know the pulse of the

consumers and they can adjust their plans and goals according the

consumer needs. Good ambience, proper lighting systems, better

advertisements, customer friendly staff and good location of the shops

will attract more customers in rural setup. In rural areas the impact of

word of mouth publicity is more. So it is advised to all retailers to adopt

good business practices and that will help in the business growth.

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When it comes to E-marketing FMCG companies they are also proving

EMI schemes to online consumers with credit cards. It also like

advance credit to online consumers provided by the E-marketing

FMCG companies. The FMCG E-marketing companies always focus

on costing on the end user products with by passing various distribution

channels and more proactive and cost effective promotional methods.

The E-marketing companies are trying to provide more transparency,

fair price policy, quality of products with good range of branded

products to choose. It is encouraging rural consumers to move towards

online shopping. The rural India slowly getting comfortable with online

shopping with the ongoing online digital revolution in India. The urban

consumers are already taking the advantage of online shopping and

they experiencing the ease of doing business with FMCG E-marketing

companies. A low unit price is always a desirable factor in selling and

promoting products in the rural markets. The E-marketing FMCG

companies are trying to maintain centralized depots for stocking the

inventory at nearby satellite villages which reduces the retailing costs

and distribution costs.

11. Form the government side they should ensure to develop and execute

efficient regulatory, monitoring mechanisms such as Consumer Forums

to protect consumer interests, establishment of government and

private Forensic Food Laboratories to check adulteration in the

products and policies directed to support manufacturing sector. All

these regulatory systems are responsible to protect the interests of all

the shareholders such a FMCG companies who are responsible for the

production of the products, the traditional wholesalers and retailers

markets, E-marketing companies and consumers. The governments

should concentrate on developing better infrastructure facilities such

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as roads and marketing yards and transportation channels to help the

manufacturing sectors, FMCG companies and E-marketing companies.

The current Indian government simplified the rules to attract more

foreign investors to boot the cash inflow in the manufacturing sector.

The Make in India initiative taken by the Indian government directed

towards strengthening the small scale manufacturing sectors and

startups. Other initiatives like Mudra Scheme to encourage the small

scale woman entrepreneurs, supporting the Anganvadi groups with low

interest rate loans aims to improve the woman empowerment rate in the

country. The Government should encourage rural marketing by giving

tax relief and providing crop insurance to framers. The establishment

of low rental storage and warehousing facilities in rural areas will

improve the rural marketing share and maximizes the profits to rural

producers by capturing other than the local markets. The resulting

ripple effects include the rural consumers having the befit of getting

local products for more affordable prices and more urban markets can

be captured by the rural product producers.

12. The market variables like age, gender, income, social factors,

emotional factors and consumer behaviors and global trends and

product promotion factors can influence the marketability of the

products. The sales for the products can be increased by creating

positive shopping environment; attractive discounts can pull the rural

as well as urban to consumers to the shops or to the malls to buy the

products. By having efficient, smart and hardworking sales team can

stimulate buying behavior of the consumers and in turn it helps to

trigger the impulse buying with the walk in consumers. Both traditional

FMCG companies and Online E-marketing FMCG companies are

going for promotional activities such as buy 1 get 1 free offers, seasonal

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discount sales and clearance sales. Local Online FMGC companies

like Flipcart, Snapdeal Bigbasket and Global Online companies like

Amezon, Alibaba are increasing their urban makert share as well as

rural market share with their cost effective distribution channels along

with innovative methods promotion and in India. These Online FMCG

companies are giving stiff competition to traditional sellers. Credit

cards, Debit cards, ATMS and 24/7 customer services can also

influence the consumer behaviors. In recent time’s Indian government

under took the project to create zero balance bank accounts for the

farmers and other rural people in order to bring them into the digital

stream of emerging India. They are also provided with RUPAY credit

cards to encourage them move towards digital transactions. India

witnessed a historic event in 2016 that is demonetization. It also pushed

the rural public towards online shopping. The E-Valets like PAYTM,

SBI BUDDY and MOBIVIK also becoming handy tools for consumers

when it’s comes to secure online shopping. Just recently India

undergone biggest tax reforms and had major policy changing.

Recently a GST (GOODS SERVICES TAX) was introduced in India to

support the cause one India and one tax. It’s aimed to help the

manufactures, sellers and consumers with simplified tax returns

procedure like on stop payment for all taxes. All the economic reforms

make India as one the economically developing country in the world

with a large consumer base. Many local and global companies are

trying to invest in Indian manufacturing sector because of ease of doing

business initiatives. The resent reports showed that ease of doing

business index of India phenomenally improved that making India is

one the lucrative and safe business destination in the world.

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6.5 Recommendations for further Research:

The present research study was limited to selected districts of India

selected on the base of top 5 town and cities with highest expenses on

FMCG products. The study can be extended further by identifying

other districts of country or other states of India.

An in-depth study can be done by taking all categories of FMCG

products as the research is done only taking few FMCGs in mind.

The branded products were also limited in study.

The comparison can also be made for top leading companies of FMCG

products.

According to the field survey it is noted that 73% of urban and 23% of

rural follow FMCG brands on internet and social media. The latest

internet boom in India and smart phones getting cheaper casing ripple

effect in the rural e- marketing. Slowly the rural market consumers are

more interested to explore e-marketing practice. This is good sign for

all FMCG companies and they can expand their market share in the

rural markets. It is advised to all FMCG companies to focus more on

rural markets and adapt with the changing consumer habits of rural

consumer when it comes to new product design or launching or

marketing. The FMCG companies can balance between traditional

marketing as well as E-marketing.

From the field survey the effect of TV commercial medium accounts

to 31% and marketing influenced by friends and relatives counts to 35

%. Whereas marketing though print medium such as papers and

magazines attracts a share of 15 % only in rural areas. We can say that

E-marketing is the new entrant in the modern marketing world of rural

sector and therefore it is observed that over all share of E- marketing is

only 19 % in which 9 % is through online marketing and remaining 10

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% through Social media blogs, On-line Forums and Social networking

sites and traditional marketing tools such TV commercials, print media

and word of mouth marketing such as family- friends- relatives

accounts to major percentage in rural areas. This shows more for more

scope for E-marketing in the rural area for FMCG companies. The

change in the rural consumer habits and availability of cheaper smarts

phones and cheaper internet data plans making the rural consumers to

explore the E-marking facilities provide by the FMCG companies. The

secure online banking systems and online wallets like PAYTM or

PhonePe making the online tractions and online buying made easy and

secure. The Digital India moment gave a push to the Indian E-

marketing practices and digital tractions. The rural consumers are

encouraged to be part of the Digital moment and they are educated

about ease of doing business online

There is still traditional marketing has its deep roots in rural area

compared to urban consumers. The present rural sector customers are

curious about online marketing because of wide range of products and

more discounts available online with Monthly installment schemes

with credit cards and debit cards. The online E-marketing companies

like Amazon and Flipcart and Walmart coming with up more

diversified strategies to reach rural consumers with strengthening their

supply chain mechanisms along with branding strategies. It observed

with the filed study that rural consumers getting ready to take the

advantages of E-marketing and ease of doing business online. We can

recommend to all FMCG companies to explore the new rural markets

with the tools of E-marketing because this is the right time for the

FMGC companies to expand their market share in rural areas.