f 0325067

8/20/2019 f 0325067

1/18

IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 3, Issue 2 (July-Aug. 2012), PP 50-67www.iosrjournals.org

www.iosrjournals.org 50 | Page

Consumer Buying Behaviour and Brand Loyalty in Rural

Markets: FMCG

B.V.N.G. ChandraSekharAcademic and Internship Programme Indian Institute of Management Baanagalore Bannerghatta Road,

Bangalore, India

Abstract: Prime Minister Manmohan Singh recently talked about his vision for rural India: "My vision of rural India

is of a modern agrarian, industrial and services economy co-existing side by side, where people can live in well-equipped villages and commute easily to work, be it on the farm or in the non-farm economy. There is much thatmodern science and technology can do to realize this vision. Rural incomes have to be increased. Rural infrastructure

has to be improved. Rural health and education needs have to be met. Employment opportunities have to be created inrural areas." 'Go rural' is the slogan of marketing gurus after analyzing the socio-economic changes in villages. The Rural population is nearly three times the urban, so that Rural consumers have become the prime target market for

consumer durable and non-durable products, food, construction, electrical, electronics, automobiles, banks, insurancecompanies and other sectors besides hundred per cent of agri-input products such as seeds, fertilizers, pesticides and farm machinery. The Indian rural market today accounts for only about Rs. 8 billion of the total ad pie of Rs 120billion, thus claiming 6.6 per cent of the total share. So clearly, there seems to be a long way ahead. Although a lot is

spoken about the immense potential of the unexplored rural market, advertisers and companies find it easier to vie fora share of the already divided urban pie.The success of a brand in the Indian rural market is as unpredictable as rain. It has always been difficult to gauge the rural market. Many brands, which should have been successful, have failedmiserably. More often than not, people attribute rural market success to luck. Therefore, marketers need to understand

the social dynamics and attitude variations within each village. Though, nationally it follows a consistent patternlooking at the challenges and the opportunities which rural markets offer to the marketers it can be said that the futureis very promising for those who can understand the dynamics of rural markets and exploit them to their best

advantage. A radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for, so they can successfully impress on the 230 million rural consumers spread over approximately six hundred thousand

villages in rural India.The Indian established Industries have the advantages, which MNC do not enjoy in this regard.The strong Indian brands have strong brand equity, consumer demand-pull and efficient and dedicated dealer networkwhich have been created over a period of time. The brand has to be made relevant by understanding local needs. Evenoffering the same product in different regions with different brand names could be adopted as a strategy. At times, it is

difficult to pass on an innovation over an existing product to the rural consumer unlike his urban counterpart - likeincreased calcium or herbal content or a germ-control formula in toothpaste.The rural market has a grip of strongcountry shops, which affect the sale of various products in rural market. The companies are trying to trigger growth inrural areas. They are identifying the fact that rural people are now in the better position with disposable income. The

low rate finance availability has also increased the affordability of purchasing the costly products by the rural people. Marketer should understand the price sensitivity of a consumer in a rural area. This paper is therefore an attempt to promote the brand image in the rural market

Keywords : Rural Markets, Consumer Behavior, Brand, Brand Loyalty, Rural Customers, Local Br and

I.

IntroductionIndian Marketers on rural marketing have two understanding (i) The urban metro products and

marketing products can be implemented in rural markets with some or no change. (ii) The rural marketingrequired the separate skills and techniques from its urban counter part. The Marketers have following facilitiesto make them believe in accepting the truth that rural markets are different in so many terms.

(i) The rural market has the opportunity for many brands.(ii) Low priced products can be more successful in rural markets because the low purchasing, purchasing powersin rural markets.

(iii) Rural consumers have mostly homogeneous group with similar needs, economic conditions and problems.(iv) The rural markets can be worked with the different media environment as opposed to press, film, radio andother urban centric media exposure.

How reality does affect the planning of marketers? Do villagers have same attitude like urban consumers? The

question arises for the management of rural marketing effects in a significant manner so than companies canenter in the rural market with the definite goals and targets but not for a short term period but for longer

8/20/2019 f 0325067

2/18

The Importance of Brand in Consumer Buying Behavior of FMCG goods in Rural Markets


duration. The Research paper will discuss the role of regard. The strategy, which will be presented in the paper,can be either specific or universally applicable.

Realities before the Marketers:70% of India's population lives in 627000 villages in rural areas. 90% of the rural population we

concentrated in villages with a population of less than 2000, with agriculture being the main business. This

simply shows the great potentiality rural India has to bring the much - needed volume- driven growth. This

brings a boon in disguise for the FMCG Company who has already reached the plateau of their business urbanIndia. As per the National Council for Applied Economic Research (NCAER) study, there are as many 'middle

income and above' households in the rural areas as there are in the urban areas. There are almost twice as many'lower middle income' households in rural areas as in the urban areas. At the highest income level, there are 2.3million urban households as against 1.6 million households in rural areas. According to the NCAER projections,the number of middle and high-income households in rural India is expected to grow from 80 million to 111

million by 2007. In urban India, the same is expected to grow from 46 million to 59 million. Thus, the absolutesize India is expected to be doubles that of urban India.

HLL chairman MS Banga Says, "This exercise may not pay in the immediate future, but will definitely

give long-term dividends. Incidentally, over 50 percent of the sales of HLL's fabric wash, personal wash and beverages are in rural areas. And we see a future in going rural in a major way".The improved agricultural growth is expected to boost rural demand, through not at too sizzling a rate.Moreover, the price drop in personal products, after the recent excise duty reductions, in also expected to drive

consumption. "Better agricultural yields will give farmers more spending power, making the rural markets bullish," says an analyst.

As a result, HLL has planned a rural marketing program that is expected to result in a marked growth inthe consumption of the company's products in the rural market. HLL will adopt three-pronged marketingstrategy- new price points, sizes and awareness campaigns for its detergents and soaps segment to augment ruralgrowth. The Indian established Industries have the advantages, which MNC do not enjoy in this regard. The

strong Indian brands have strong brand equity, consumer demand-pull and efficient and dedicated dealernetwork which have been created over a period of time. The rural market has a grip of strong country shops,which affect the sale of various products in rural market.

The companies are trying to trigger growth in rural areas. They are identifying the fact that rural peopleare now in the better position with disposable income. The low rate finance availability has also increased theaffordability of purchasing the costly products by the rural people. Marketer should understand the pricesensitivity of a consumer in a rural area. The small sachet packs are the examples of price sensitivity. Colgate

has done this experiment with launching of sachet packs for rural markets.Within the broad framework of marketing, consumer behavior is the most interesting area and one

concerned with understanding why an individual consumer acts in certain consumption related ways. Thecomplexity of behavior, however, varies with the nature of the product and need. While buying a product to

satisfy an individual need do the Brand plays an important role or not, In this regard a study has conducted inrural areas to know the importance of Brand in consumer buying behavior of FMCG goods.

Objectives of the study1.1.1 To study on brand loyalty of various brands in rural markets 1.1.2 To study does the brand play a role in the purchase behavior of rural customers 1.1.3 To study on which categories/products does brand play a role 1.1.4 To identify the presence and the importance of local brands

Scope of the studyA lot of work has been done on various aspects of rural marketing. Hence, it was felt necessary to make

a humble attempt to study the importance of Brand in consumer Buying Behavior of FMCG goods in ruralmarkets.

Description MethodologyTo study the importance of Brand consumer Buying Behavior of FMCG goods in rural areas, the

primary data was collected with the help of a structured questionnaire. First, with an adhoc questionnaire, astudy was conducted on a sample of 60 respondents in the village’s satanapalli, tadipattri and mallapur, while,redrafting the questionnaire some questions were added, modifications were made, and the final questionnairewas prepared. The survey was conducted in the village’s chintulla; Akulamylaram, Badangpeta and nadergul,

selection of these villages were made based on first study. While doing the survey with the adhoc questionnairewe found that there is huge difference in the consumer buying behavior this may of different reasons like non-

availability of brands, brand awareness, influence, etc. Keeping these things in mind the survey was conductedin three different areas.

8/20/2019 f 0325067

3/18



1.3.1 To study the urban influence on consumer buying behavior, the village that is closer to urban.1.3.2 A village where there will be an availability of different brands.

1.3.3 Remote Area where awareness and availability of brands are less

1.4 Research DesignThe research design used was exploratory and descriptive research design, because was made on

convenient random sample.

1.5 QuestionnaireThe questionnaire was prepared keeping in view the objectives of study. Different questions were so

arranged that field information is collected from the consumer awareness on brand of different FMCG products,Brand Loyalty, preferences of brand/brands, local brands, and frequency of usage.

Questionnaire contains two types of questions1.5.1

Open Ended1.5.2

Closed Ended

Open Ended Questions are used for exploratory study.Closed ended questions used for descriptive study.

1.6 Sample Design

Telangana is one of the three regions of Andhra Pradesh consisting of 10 districts, except Hyderabad;capital city of the state, the entire Telangana region is a backward and more rural in character. This region

represents the average Indian rural characteristics in terms of sizes of rural population, agricultural economy,small size village, low density population, low literacy rate, low per capita income and consequent lowerstandard of living of the people. The ten districts of the region, Ranga Reddy district has selected for the studyas the district has much covered with the capital city and it is surround the capital city we thought this is the best

area to do survey to meet the objectives of the project.

1.7 Field Study1.7.1 The Source of Data: The study is based on Primary as well as secondary data. The primary data wascollected with the help of structured questionnaire. The survey was conducted in the rural areas of Telangana-Badangpet, Nadergul, and Chintulla.

1.7.2 Determination of sample: The size of sample was 30 from each of the village that constitute 90respondents in total from all 3 villages.

1.7.3 Collection of Data: The primary data was collected through a questionnaire.

Soap Category Badangpet Nadergul Chintulla

Lux 20 10 5

NO.1 17 0 0

Santoor 30 10 25

Margo 15 0 0

Medimix 22 0 10

Cinthol 25 0 0

Rexona 30 7 3

Margo 10 0 0

Mysore 10 0 0

Palmolive 1 0 0

Life bouy 0 25 30

Liril 0 3 0

Hamam 0 15 0

Life bouy Plus 0 5 0

Breeze 0 0 0

8/20/2019 f 0325067

4/18



II. Research Data:Brand Awareness in Rural AreasTable 1: Brand awareness of soaps in villages and number of Respondents are 30.

Graph 1:

Nadergul

13%

0%

13%

0%0%0%

9%

0%0%0%

34%

4%

20%

7%0%

Lux

NO.1

Santoor

Margo

Medimix

Cinthol

Rexona

Margo

Mysore

Palmolive

Life bouy

Liril

Hamam

Badangpet

11%

9%

16%

8%12%

14%

17%

6%6% 1%0%0%0%0%0%

Lux

NO.1

Santoor

Margo

Medimix

Cinthol

Rexona

Margo

Mysore

Palmolive

Life bouy

Liril

Hamam

Life bouy Plus

Breeze

Chintulla

7%0%

34%

0%14%0%4%

0%0%0%

41%

0%0%0%0%

Lux

NO.1

Santoor

Margo

Medimix

Cinthol

Rexona

Margo

Mysore

Palmolive

Life bouy

Liril

Hamam

Life bouy Plus

Breeze It is very clear, from the above table and Pie Chart that the brand awareness in Badangpet is more whencompared to Nadergul and Chintula.

Table 2: Brand awareness of Hair Oil in villages and number of Respondents are 30.

Hair Oil Category Badangpet Nadergul Chintulla Navratan 17 0 0

Aswini 15 3 3

Clinic Plus 5 0 0

Vatika 10 5 0

Parachute 30 10 2

Coco Care 5 0 0

KeoKarpin 6 0 0

Almon drops 5 0 0

Brylcream 1 0 0

Amul(Local Brand) 0 1 0

Gograda 0 1 1Dabur 0 0 0

Graph 2:

Badangpet

18%

16%

5%

11%

33%

5%

6%5% 1%0%0%0%

Navratan

Aswini

Clinic Plus

Vatika

Parachute

Coco Care

KeoKarpin

Almon drops

Brylcream

Amul(Local Brand)

Gograda

Dabur

Nadergul

0%15%

0%

25%

50%

0%0%0%0%5%5%0%

Navratan

Aswini

Clinic Plus

Vatika

Parachute

Coco Care

KeoKarpin

Almon drops

Brylcream

Amul(Local B rand)

Gograda

Dabur

8/20/2019 f 0325067

5/18



Chintulla

0%

50%

0%0%

33%

0%0%0%0%0%

17%0%

Navratan

Aswini

Clinic Plus

Vatika

Parachute

Coco Care

KeoKarpin

Almon drops

Brylcream Amul(Local Brand)

Gograda

Dabur

It is very clear, from the above table and Pie Chart that the brand awareness in Badangpet is more whencompared to Nadergul and Chintula.

Table 3: Brand awareness of Biscuits in village and number of Respondents are 30.

Biscuits Category Badangpet Nadergul Chintulla

Krack Jack 10 10 0

Parle-g 20 10 5

Tiger 15 10 0

Marie 10 0 0Britannia 2 0 0

Cadbury’s 1 0 0

Good Day 1 0 0

Glucose 0 5 0

50-50 10 5 0

Ampro 0 1 0

Rose Salt 0 1 0

Graph 3:

Badangpet

14%

30%

23%

14%

3%1%1%0%

14%

0%0%

Krack Jack

Parle-g

Tiger

Marie

Britannia

Cadbury’s

Good Day

Glucose

50-50

Ampro

Rose Salt

Nadergul

24%

24%

24%

0%0%0%0%

12%

12%

2%2%

Krack Jack

Parle-g

Tiger

Marie

Britannia

Cadbury’s

Good Day

Glucose

50-50

Ampro

Rose Salt

Chintulla

0%

100%

0%0%0%0%0%0%0%0%0%

Krack Jack

Parle-g

Tiger

Marie

Britannia

Cadbury’s

Good Day

Glucose50-50

Ampro

Rose Salt


Table 4: Brand awareness of Tea in village and number of Respondents are 30.

Tea Category Badengpet Nadergul Chintulla

Three Roses 25 10 10

Red label 22 0 0

Chakra Gold 12 5 0

AVT Assam 2 0 0

Tata 4 0 0Gemini 20 2 2

8/20/2019 f 0325067

6/18



Tajmahal 15 10 0

Lamsa 0 1 0

Royal Tea 0 0 15

Graph 4:

Badengpet

25%

22%

12%2%

4%

20%

15%0%0% Three Roses

Red label

Chakra Gold

AVT Assam

Tata

Gemini

Tajmahal

Lamsa

Royal Tea

Nadergul

35%

0%

18%0%0%7%

36%

4%0% Three Roses

Red label

Chakra Gold

AVT Assam

Tata

Gemini

Tajmahal

Lamsa

Royal Tea

Chintulla

37%

0%0%0%0%7%

0%0%

56%

Three Roses

Red label

Chakra Gold

AVT Assa m

TataGemini

Tajmahal

Lamsa

Royal Tea


Table 5: Brand awareness of Coffee in village and number of Respondents are 30.

Coffee Category Badengpet Nadergul Chintulla

Bru 10 10 0

Green Label 12 0 0

Nescafe 5 0 0

Graph 5:

Badengpet

37%

44%

19%

Bru

Green Label

Nescafe

Nadergul

100%

0%0%

Bru

Green Label

Nescafe

Chintulla

000

Bru

Green Label

Nescafe

It is very clear, from the above table and Pie Chart that the brand awareness in Badangpet is more whencompared to Nadergul and Chintula. Consumption of coffee is very low or no consumption in Chintulla.

8/20/2019 f 0325067

7/18



Table 6: Brand awareness of Washing Powder in Badangpet village and number of Respondents are 30.

Washing Powder Badengpet Nadergul Chintulla

Ariel 25 3 0

SurfExcel 30 2 0

Tide 20 10 0

Rin 15 15 0Wheel 30 15 0

Nirma 30 25 20

Rin Shakti 0 10 0

Graph 6:

Badengpet

17%

20%

13%10%

20%

20%0%

Ariel

SurfExcel

Tide

Rin

Wheel

Nirma

Rin Shakti

Nadergul

4%3%

13%

18%

19%

30%

13% Ariel

SurfExcel

Tide

Rin

Wheel

Nirma

Rin Shakti

Chintulla

0%0%0%0%0%

100%

0%

Ariel

SurfExcel

Tide

Rin

Wheel

Nirma

Rin Shakti


Table 7: Brand awareness of Washing Soap in village and number of Respondents are 30.

Washing Soap Badengpet Nadergul Chintulla

Rin 30 30 5

Wheel 20 0 0

Soap 501 25 30 20

Rin Supreme 30 0 0

Extra 0 25 0

Nirma 0 30 30

XXX 0 20 25

ETA 0 20 20

Graph 7:

Badengpet

28%

19%24%

29%

0%0%0%0%Rin

Wheel

Soap 501

Rin Supreme

Extra

Nirma

XXX

ETA

Nadergul

20%

0%

19%

0%16%

19%

13%

13% Rin

Wheel

Soap 501

Rin Supreme

Extra

Nirma

XXX

ETA

8/20/2019 f 0325067

8/18



Chintulla

5%0%

20%

0%0%

30%

25%

20%Rin

Wheel

Soap 501

Rin Supreme

Extra

Nirma

XXX

ETA


Table 8: Brand awareness of Face Powder in village and number of Respondents are 30.

Face Powder Badengpet Nadergul Chintulla

Ponds 20 25 20

Fa 1 0 0

Axe 1 0 0

Park avenue 1 0 0

Sprint 2 0 0

Shower to Shower 1 0 0

Boro plus 5 0 0

Emami 5 0 0

Ashoka 10 10 0

Chintol 20 0 10

Santoor 15 20 15

Spinz 0 1 0

Graph 8:

Badengpet

26%

1%1%1%2%1%

6%

6%12%

25%

19%0%

Ponds

Fa

Axe

Park avenue

Sprint

Shower to Shower

Boro plus

Emami

Ashoka

Chintol

Santoor

Spinz

Nadergul

44%

0%0%0%0%0%0%0%18%

0%

36%

2%

Ponds

Fa

Axe

Park avenue

Sprint

Shower to Shower

Boro plus

Emami

Ashoka

Chintol

Santoor

Spinz

Chintulla

45%

0%0%0%0%0%0%0%0%22%

33%

0%

Ponds

Fa

Axe

Park avenueSprint

Shower to Shower

Boro plus

Emami

Ashoka

Chintol

Santoor

Spinz It is very clear, from the above table and Pie Chart that the brand awareness in Badangpet is more whencompared to Nadergul and Chintula.

Table 9: Brand awareness of Cold Cream in villages and number of Respondents are 30.

Cold Cream Badengpet Nadergul Chintulla

Ponds 25 5 0

Kashmir Snow 2 2 0Vaseline 10 0 0

8/20/2019 f 0325067

9/18



Graph 9:

Badengpet

68%

5%

27%

Ponds

Kashmir Snow

Vaseline

Nadergul

71%

29%

0%

Ponds

Kashmir Snow

Vaseline

Chintulla

000

Ponds

Kashmir Snow

Vaseline

It is very clear, from the above table and Pie Chart that the brand awareness in Badangpet is more whencompared to Nadergul and ChintulaTable 10: Brand awareness of Fairness Cream in village and number of Respondents are 30.

Fairness Cream Badengpet Nadergul Chintulla

Fair & Lovely 25 25 0

Fair ever 10 5 0

Graph 10

Badengpet

71%

29%

Fair & Lovely

Fair ever

Nadergul

83%

17%

Fair & Lovely

Fair ever

Chintulla

00

Fair & Lovely

Fair ever


Brands Purchased in Rural Area

Table 11: Brand Purchased In soap category in villages and number of Respondents are 30.

Products Badangpet Nadergul Chintulla

Lux 25 10 0

NO.1 10 0 1

Santoor 20 10 10

8/20/2019 f 0325067

10/18



Margo 0 0 0

Medimix 0 2 5

Cinthol 15 5 0

Rexona 0 15 2

Margo 0 0 0Mysore 7 0 0

Palmolive 1 0 0

Life bouy 0 20 25

Liril 0 1 0

Hamam 0 1 0

Life bouy

Plus 0 1 0

Breeze 0 1 0

Graph 11:

Brands Purchased in Rural Markets in Bath

Soaps Category

25

10

20

0 0

15

0 0

7

1 0 0 0 0 0

10

0

10

02

5

15

0 0 0

20

1 1 1 10 1

10

0

5

02

0 0 0

25

0 0 0 00

5

10

15

20

25

30

L u x

N O . 1

S a n t o o r

M a r g o

M e d i m i x

C i n t h o l

R e x o n a

M a r g o

M y s o r e

P a l m o l i v e

L i f e b o u y

L i r i l

H a m a m

L i f e b o u y

B r e e z e

Badangpet

Nadergul

Chintulla

It is very clear, from the above table, graph that the brand purchased in Badangpet is dominated by Lux,Santoor, and Chintol, in Nadergul Lifebouy, Rexona, Santoor and Lux and in Chintula Lifebouy dominates themarket.

Table 12: Brand Purchased in Hair Oil category in villages and number of Respondents are 30.

Hair Oil Badangpet Nadergul Chintulla

Navratan 10 0 5

Aswini 3 5 0

Clinic Plus 1 0 0

Vatika 15 4 0

Parachute 0 15 2

Coco Care 0 0 0

KeoKarpin 1 0 0

Almon drops 0 0 0

Brylcream 1 0 0

Amul(Local) 0 0 0

Gograda 0 0 3

Dabur 0 0 1

Ghar 0 0 0

8/20/2019 f 0325067

11/18



Graph 12:

Brands Purchased in Rural Markets in Hair Oil

Category

10

31

15

0 01

01

0 0 0 00

5

0

4

15

0 0 0 0 0 0 0 0

5

0 0 02

0 0 0 0 0

31

002468

1012

1416

N a v r a

t a n

A s w i

n i

C l i n i

c P l u s

V a t i k

a

P a r a

c h u t e

C o c o

C a r

e

K e o K

a r p i n

A l m o

n d r o p

s

B r y l c

r e a m

A m u l (

L o c a

l )

G o g r

a d a

D a b u

r

G h a r

Badangpet

Nadergul

Chintulla

It is very clear, from the above table and graph that the brand purchased in Badangpet Navrathan hair oildominates the market, Parachute dominates Nadergul markets and Chintula very less consumption of brandedhair oils

Table 13: Brand Purchased In Biscuits category in villages and number of Respondents are 30.

Biscuits Category Badangpet Nadergul Chintulla

Krack Jack 0 5 0

Parle-g 20 10 1

Tiger 10 5 0

Marie 2 0 0

Britannia 0 0 0

Cadbury’s 0 0 0

Good Day 1 0 0

Glucose 0 1 0

50-50 7 2 0Ampro 0 1 0

Rose Salt 0 1 0

Graph 13:

Brands Purchased in Rural Markets in Biscuits

Category

0

20

10

20 0 1 0

7

0 0

5

10

5

0 0 0 0 12 1 10 1 0 0 0 0 0 0 0 0 0

0

5

10

15

20

25

K r a c

k J a c

k

P a r l e

- g T i g

e r

M a r i e

B r i t a

n n i a

C a d b

u r y ’ s

G o o d

D a y

G l u c

o s e

5 0 - 5 0

A m p r o

R o s e

S a l t

Badangpet

Nadergul

Chintulla

It is very clear, from the above table and graph that the brand purchased in Badangpet is dominated by Parle-gand Tiger Biscuits. In Nadergul and Chintula very less or no consumption of biscuits and market is dominated by local salt or Osmania Biscuits than branded.

8/20/2019 f 0325067

12/18



Table 14: Brand Purchased in Tea category in villages and number of Respondents are 30.

Tea Category Badangpet Nadergul Chintulla

Three Roses 5 2 2

Red label 10 10 5

Chakra Gold 3 0 0

AVT Assam 1 0 0Tata 7 0 0

Gemini 15 5 0

Tajmahal 3 5 0

Lamsa 0 1 0

Royal Tea(Local) 0 0 10

Graph 14:

Brands Purchased in Rural Markets in Tea

Category

5

10

31

7

15

3

0 02

10

0 0 0

5 5

1 02

5

0 0 0 0 0 0

10

02468

101214

16

T h r e

e R o s

e s

R e d l

a b e l

C h a k

r a G

o l d

A V T

A s s a

m T a

t a

G e m i

n i

T a j m

a h a l

L a m s

a

R o y a

l T e a

( L o c

a l )

Badangpet

Nadergul

Chintulla

It is very clear, from the above table and graph, the brand purchased in Badangpet is dominated by Gemini andRed label. Red label also dominated the Nadergul market and Chintula market is dominated by local brandRoyal Tea.

Table 15: Brand Purchased in Coffee category in villages and number of Respondents are 30.

Coffee Category Badangpet Nadergul Chintulla

Bru 10 0 0

Green Label 0 0 0

Nescafe 0 0 0

Graph 15:

Brands Purchased in Rural Markets in Coffee

Category

10

0 00 0 00 0 00

2

4

6

8

10

12

Badangpet Nadergul Chintulla

Bru

Green Label

Nescafe

It is very clear, from the above table and graph, the Badangpet market is dominated by Bru Coffee. In Naderguland Chintula coffee consumption is very low or no consumption.

8/20/2019 f 0325067

13/18



Table 16: Brand Purchased in Washing Powder category in villages and number of Respondents are 30.

Washing Powder Badengpet Nadergul Chintulla

Ariel 5 1 0

SurfExcel 7 2 0

Tide 3 1 0

Rin 15 3 0Wheel 30 5 0

Nirma 30 20 20

Rin Shakti 0 3 0

Graph 16:

Brands Purchased in Rural Markets in Washing

Powder Category

5 73

15

30 30

012 1

35

20

30 0 0 0 0

20

00

5

10

15

20

25

30

35

A r i e l

S u r f E

x c e l

T i d e

R i n

W h e

e l

N i r m

a

R i n S

h a k t i

Badengpet

Nadergul

Chintulla

It is very clear, from the above table and graph that Nirma dominates all the three sample villages i.e.Badangpet, Nadergul and Chintula.

Table 17: Brand Purchased in Washing Soap category in villages and number of Respondents are 30.

Washing Soap Badengpet Nadergul Chintulla

Rin 30 0 0

Wheel 10 0 0Soap 501 12 10 15

Rin Supreme 5 0 0

Extra 0 5 10

Nirma 0 20 5

XXX 0 10 10

ETA 0 5 5

Graph 17:

Brands Purchased in Rural Markets in Washing

Soap Category

30

10 12

50 0 0 00 0

10

05

20

105

0 0

15

0

105

105

05

101520253035

R i n

W h e

e l

S o a p

5 0 1

R i n S

u p r e m e

E x t r a

N i r m

a X X

X E T

A

Badengpet

Nadergul

Chintulla

It is very clear, from the above table and graphs that Rin, 501 and Nirma dominates the selected sample ruralmarket.

8/20/2019 f 0325067

14/18



Table 18: Brand Purchased in Face Powder category in villages and number of Respondents are 30.

Face Powder Badangpet Nadergul Chintulla

Ponds 25 20 20

Fa 1 0 0

Axe 1 0 0

Park avenue 1 0 0Sprint 2 0 0

Shower to Shower 1 0 0

Boro plus 5 0 0

Emami 5 0 0

Ashoka 3 3 0

Chintol 10 15 10

Santoor 5 10 10

Spinz 0 10 0

Graph 18:

Brands Purchased in Rural Markets in FacePowder Category

25

1 1 1 2 15 5

3

105

0

20

0 0 0 0 0 0 03

1510 10

20

0 0 0 0 0 0 0 0

10 10

005

1015202530

P o n d s F a A x

e

P a r k a v e n

u e

S p r i n t

S h o w

e r t o

S h o w

e r

B o r o

p l u s

E m a m i

A s h o

k a

C h i n t

o l

S a n t o

o r S p i n z

Badangpet

Nadergul

Chintulla

It is very clear, from the above table and graph, that Ponds dominates the Face Powder category in all the threeselected rural markets.

Table 19: Brand Purchased in Cold Cream category in villages and number of Respondents are 30.

Cold Cream Badangpet Nadergul Chintulla

Ponds 25 5 0

Kashmir Snow 2 0 0

Vaseline 10 0 0

Graph 19:

Brands Purchased in Rural Markets in Cold

Cream Category

25

5

02

0 0

10

0 00

5

10

15

20

25

30

Badangpet Nadergul Chintulla

Ponds

Kashmir Snow

Vaseline

It is very clear, from the above table and graph that Ponds dominates Cold Cream Category in Badangpet. Asthe consumption pattern is very low or no consumption Ponds also dominates Nadergul and as per survey no brand has tapped the Chintula market

8/20/2019 f 0325067

15/18



Table 20: Brand Purchased in Fairness Cream category in villages and number of Respondents are 30.

Fairness Cream Badangpet Nadergul Chintulla

Fair & Lovely 25 25 0

Fair ever 10 5 0

Graph 20

Brands Purchased in Rural Markets in Fairness

Cream Category

25

10

25

5

0 00

5

10

15

20

25

30

Fair & Lovely Fair ever

Badangpet

Nadergul

Chintulla

It is very clear, from the above table and graph that the Fair & Lovely brand dominates the Badangpet and Nadergul in Fairness Cream Category and Chintula market left untapped as the consumption pattern is very lowor no consumption.

Reasons for Purchase of Brands in Badangpet Village

Table 21: Attributes which made consumer to buy the brands of different products.

Products Quality Price Availability Fragrance others

Soap 15 2 0 20 3

Hair Oil 2 25 0 10 5

Biscuits 25 5 0 0 0

Tea 15 0 0 0 30

Coffee 0 0 0 0 0

Washing Powder 20 5 0 15 0

Washing Soap 25 10 0 20 0

Face Podwer 0 10 0 30 0

Cold Cream 0 0 0 10 30

Fairness Cream 0 0 0 5 30

Graph 21:

Reasons for Purchase of Brands in Bandangpet

152

2515

0

20 25

0 0 0

2 25

5

0

0

510

100 0

0

0 0

0

0

0

0

0

0 0

2010 0

0

0

15

20

30

10 5

3 5

0 30

0

0

0

0

3030

0

10

20

30

4050

60

S o a p

H a i r O

i l

B i s c u i t s

T e a

C o f f e

e

W a s h i n

g P o w

d e r

W a s h i n

g S o a p

F a c e

P o d

w e r

C o l d

C r e a

m

F a i r n

e s s C

r e a m

othersFragrance

Availability

Price

Quality

It is very clear, from the above table and graph that the consumers prefer the Quality or Price or fragrance basedthe product and its usag

Reasons for Purchase of Brands in Nadergul Village

8/20/2019 f 0325067

16/18




Products Quality Price Availability Fragrance Others

Soap 0 5 0 20 0

Hair Oil 0 20 10 0 0

Biscuits 0 1 5 0 20

Tea 0 10 10 30 10Coffee 0 0 0 0 0



Face Powder 0 10 0 30 10

Cold Cream 0 0 0 0 0


Graph 22:

Reasons for Purchase of Brands in Nadergul

0 0 0 0 0 0 0 0 0 0520

110

0 5

30

100 5

0

10

5

10

00

5

0

00

20

0

0

30

0

15

10

30

00

00

20

10

0

0

4 10

0

15

0

10

20

30

40

5060

70

S o a p

H a i r O

i l

B i s c u i t s

T e a

C o f f e

e

W a s h i n

g P o w

d e r

W a s h i n

g S o a p

F a c e

P o w

d e r

C o l d

C r e a

m

F a i r n

e s s C

r e a m

Others

Fragrance

Avaliabilty

Price

Quality

It is very clear, from the above table and graph that the nadergul market is price sensitive market and also few

prefer fragrance of the brand.

Reasons for Purchase of Brands in Chintulla Village


Products Quality Price Availability Fragrance Other

Soap 0 10 0 30 0

Hair Oil 0 0 0 0 0

Biscuits 0 0 0 0 0

Tea 0 0 0 10 20

Coffee 0 0 20 0 0



Face Powder 0 0 10 0 20Cold Cream 0 0 0 0 0


Graph 23:

Reasons for Purchase of Brands in Chintulla

0 0 0 0 0 0 0 0 0 010

0 0 0 0

30

0 0 0 0

0

0 0 0

20

0

010

0 0

30

0 010

0

0

100

0 0

0

0 0

20 0

0

1020

0 005

1015202530354045

S o a p

H a i r O

i l

B i s c u i t s

T e a

C o f f e

e

W a s h i n

g P o w

d e r

W a s h

i n g S o a p

F a c e P

o w d e r

C o

l d C r e a

m

F a i r n e s s

C r e a

m

Other

Fragrance

Availability

Price

Quality

8/20/2019 f 0325067

17/18



It is very clear, from the above table and graph that the Chintulla village is a Price sensitive market andavailability of a product in the market also place major role.

Brand Loyalty of consumers in Rural Markets:

Table 24:

Brand Loyalty Badangpet Nadergul Chintula

Always 5 15 0Mostly 20 8 5

Sometimes 5 3 5

Rarely 0 4 20

Graph 24:

Brand Loyalty

17%

66%

17%0%

Always

Mostly

Sometimes

Rarely

Brand Loyalty

50%

27%

10%

13% Always

Mostly

Sometimes

Rarely

Brand Loyalty

0%17%

17%

66%

Always

Mostly

Sometimes

Rarely

It is very clear, from the above table and Pie Chart that in all the three-selected sample rural markets brandloyalty is l

2.1 Data Analysis:Based on the colleted date in three sample villages, product wise brand awareness, purchase and loyalty

are given in the table.Soaps: In Soap category, awareness will match with purchasing behaviour and brand loyalty is more inBadangpet and Nadergul region and less in Chintulla.

Hair Oil: In Hair Oil category, branded products usage is more in Badangpet and Nadergul. Consumers prefer

to buy local brands in Chintulla. Vatika and Navratan dominate in Badangpet, Parachute in Nadergul and

Gograda local brand and Dabur in chintulla.Biscuits: Biscuits consumption is less. In Biscuits category consumers mostly buy in loose those are available in

near by shops like salt biscuits, Osmania biscuits etc. Parle-g and Tiger are mostly used brands in Badangpet.Tea: Tea is purchased in loose, which is available in the local shops. The Popular brands Red Label, ThreeRoses and Gemini are used in Badangpet.

Coffee: Coffee Consumption is very less or no consumption in Nadergul and Chintulla. In Badangpet we could

able to found few consumers and they consume BRU instant Coffee and also café or hotel we could able to findInstant powder and not filter coffee.

Washing Powder: In washing powder category, Nirma dominate all the three selected sample rural markets

regions. In Remote area like Chintulla Nirma sell Rs.1 Sachets.Washing Soap: In washing soap category Rin, 501, Nirma, XXX and Extra Local Brand dominates all the threeselected rural markets.

Face Powder: In Face Powder category Pond’s, Chintol, and Santoor dominates the market and it also need to

see in other angle that consumption level is least.Cold Cream: In Cold Cream Category Pond’s has dominated the market in consumption in Badangpet. Less

consumption in Nadergul and very less or no consumption in chintulla village.

8/20/2019 f 0325067

18/18



Fairness Cream: Fairness Cream consumption is high in Nadergul and Badangpet. Fair and Lovely dominatesthe market and very less or no consumption in chintulla village.

2.2 Problems in Rural Marketing:1.

People in villages are subject to traditions, habits, preferences and socio-cultural pressures.

2. Rural markets are price sensitive. Rural consumers are price conscious and they purchase simple and low

priced goods.3.

Brand loyalty is very low in rural areas.

4. Communication problems with regard to the marketing information to the rural consumer because of lowliteracy.

5.

Rural consumers are not exposed to organized advertising.6.

It is difficult to manage and organizing an effective distribution channel is another hurdle in rural

marketing.7.

IMC in rural markets is difficult and makes incur high promotional costs.8.

Business concerns hesitate to enter to rural markets based the all the above problems and focus the business

towards Urban and Semi-Urban markets.

III. Suggestions and Conclusion: As per the analysis and information carried out the following suggestions and conclusions are arrived at:-

1)

In the study majority of the respondents are male categories.2)

Male members of the family are alone going to buy consumer products.

3) Women are not interested in shopping and do not come out from their houses frequently.4)

Most of the families come under the agriculture category.5)

Family income is very low.6)

Product planning is very important to marketer to enter into rural market.

7) Non-Availability of brands is another reason which affects purchasing decision.8)

Packaging should be strong enough to stand rough handling because of poor infrastructure facilities and pack should be small.

9) Brand names should be simple, small and easy to remember and pronounce10)

Effective IMC is required to reach remote villages.

References

Journals:[1.] A.M. Sakkthivel, Dr. Bishnupriya Mishra, Effectiveness of Sachets in Modifying Rural Consumers’ Buying Behavior and Their

Consumption Pattern- A Researcher’s View, Indian Journal of Marketing, Volume XXXV • Number 2 • February 2005

[2.] Dr.A.Selvaraj Rural Consumers' Behaviour Regarding Non Durable Goods: A Study In Erode District of Tamil Nadu, Indian

Journal of Marketing, Volume XXXVII • Number 12 • December 2007

[3.] Bamzai, Sandeep, ‘Markets now target Bharat’, Business India, September 6 -17, 1999

[4.] Dr.C.Anandan, M.Prasanna Mohan Raj, A Study on Brand Preferences of Washing Soaps in Rural Areas, Indian Journal of

Marketing, Volume XXXVII • Number 3 • March 2007

[5.] Deepti Srivastava, MARKETING TO RURAL INDIA: A CHANGING PARADIGM, APJRBM Volume 1, Issue 3 (December,

2010)

[6.] Gosh, Aparisim, ‘The New Rules of Rural Marketing’, Business World, April, 1994

[7.] Dr. G. GANESAN, Dr. K. CHANDRA SEKAR RAO, Pondicherry Rural Tourism Marketing – A Strategy for Global-Local

Linkage, Indian Journal of Marketing, Volume XXXV • Number 3 • March 2005

[8.] Kala Vijayraghavan and Anamika Rath, ‘FMCGs find rural treasure hunt tough’, The Economic Times, December 15, 2000

[9.] Keshav Sharma, Deepak R. Gupta, Parikshat Singh Manhas, RURAL MARKETING CHALLENGES IN THE NEW

MILLENNIUM A CASE STUDY, Delhi Business Review, Vol. 4, No. 1, January - June 2003

[10.]

Dr.K.Maruthamuthu,K.Krishnakumar, M.Vasan, Consumer Behaviour and Brand Preference of Britannia Biscuits - An empiricalstudy with reference to Salem, Tamil Nadu, Indian Journal of Marketing, Volume XXXVI • Number 8 • August 2006

[11.] Dr. K. Ramasamy, Dr. G. Kalaivanan, S. Sukumar, Consumer Behaviour Towards Instant Food Products, Indian Journal of

Marketing, Volume XXXV • Number 6 • June 2005

[12.] Nithila Vincent, A Study on Brand Consciousness Among Children and its Effect on Family Buying Behaviour in Bangalore City,

Indian Journal of Marketing, Volume XXXVI • Number 1 • January 2006

[13.] Dr.Pawan Garga, Dr.Kaminder Ghuman, Dr.Balram Dogra Rural Marketing of Select Fast Moving Consumer Goods in Punjab,

Indian Journal of Marketing, Volume XXXIX • Number 5 • May 2009

[14.] Mr.Rajesh Shinde, Recent Facets of Consumer Behaviour: A Case of Rural Market, Indian Journal of Marketing, Volume XXXVII

• Number 4 • April 2007

[15.] Dr. R. K. Srivastava, Ankur Singhal, Pasupula Raghavi, Mudit Khandelwal, Srikrishnan Balasubramanian, Swapnil Shirodkar,

Brands Equity of Toothpaste Brands in India, Indian Journal of Marketing, Volume XXXV • Number 7 • July 2005

[16.] S.Arul Kumar, Dr.C.Madhavi, Rural Marketing for –FMCG, Indian Journal of Marketing, Volume XXXVI • Number 4 •April 2006

Website:[17.] http://www.rediff.com/money/2003/oct/25spec2.htm

[18.] http://www.thehindubusinessline.com/features/brandline/article2224287.ece

[19.]

http://hindu.com/2006/04/02/stories/2006040201911300.htm
http://hindu.com/2006/04/02/stories/2006040201911300.htmhttp://hindu.com/2006/04/02/stories/2006040201911300.htmhttp://hindu.com/2006/04/02/stories/2006040201911300.htm

f 0325067

Documents