Rural Marketing Strategies

Now at the present time, rural market is one of the best opportunity and focusing sector for the major FMC companies in India.

Each and every company is set to Invest a huge capital for competition In rural market. Different strategies of FMC companies In deferent product categories are discussed In detail. Key words: Strategies for marketing FMC Introduction There was a time when the FMC companies ignores rural market, they took no any interest to produced or sell products in rural market in India. It was the initial stage of FMC companies in India.As per as the time had passed, the strategy and marketing style of FMC companies had been changed. Background of the study: - In 1970, Naira was the first FMC Company to initiate and produced goods according to aural consumers.

In the early 1 sass, when Naira washing powder was Introduced In the low-income market, Hindustan Lever Limited reacted In a way typical of many multinational companies. However, Animal's entry changed the whole Indian FMC scene -It became a great success story and laid the roadman for others to follow.Mac's like HALL, which were sitting pretty till then, woke up to new market realities and noticed the latent rural potential of India. 1983, C K Reanimating started selling shampoos in a sachet with an investment of RSI 15,000 and dared to take on the multinationals, Lever and P&G, the unquestioned leaders In that segment.. He regarded rural and small-town consumers who used soaps to wash their hair.

He introduced the sachet at 90 paisa and then reduced it to 50-paisa. And that's when the multinationals sat up and noticed him.Sales zoomed from 35,000 sachets to 12 lakes. Initially they took any sachet, but after three months they restricted to Chic sachets.

Now at the present time, rural market Is one of the best opportunity and focusing sector for the major FMC companies In India. Each and every company Is set to Invest a huge capital for competition In rural market. According to the Federation of Indian Chambers of Commerce and Industry, the number of rural 007, a clear indication that rural consumers are shifting from commodities to branded products.Urban consumers, on other hand, could go slow on FMC expenses, thanks for inflation spiral, rise in fuel cost and costlier credit. Evidence suggests that for the first time, the rural market has grown faster than the urban market in key product categories in April-May 2012, the latest months for which such information is available, according to market research firm AC Nielsen.

Need for the Study:- 1. To determine the rising demand of FMC products in rural area. 2. Know about the different choices of rural consumers.

Definition of the Problem:- The study of opportunity for FMC products in the rural market is a sum total of different analytical survey of different FMC products in the rural area. In one sense, we can say that it is determination of how much market captured by different FMC companies. Scope of study: - With a population of 1 ban people, India is a big market for FMC companies. Around 70% of the total households in India reside in the rural areas. The total number of rural households is expected to rise from 135 m in 2002 to 153 m minion, which represents the largest potential market in the world.Rural and urban potential Urban Rural Population 2001-02 (m household) popularization 2009-10 (m household) 69153% Distribution (2001-02) marketed (Towns,Villages) 3,768 627,source: Statistical Outline of India (2001-02), NCAR An average Indian spends around 40% of his income on groceries and 8% on personal care products.

A larger part of the total spending pie along with a large base (in terms of population) makes India one of the largest FMC markets. Changing lifestyles: Rising per capita income, increased literacy and rapid arbitration have caused rapid growth and change in demand patterns.The rising aspiration levels, increase in spending power has led to a change in the consumption pattern. Low penetration and low per capita consumption: Due to the large size of the market, penetration level in most product categories like jams, toothpaste, skin care, hair wash etc. In India is low.

This is more visible when comparison is done between the rural and the urban areas. The average consumption by rural households is much lower than their urban counterparts. Existence of unsaturated markets provides an excellent opportunity for the industry players in the form of a vastly untapped market as the income rises.TOT determine about the rural consumers preference towards FMC products. TOT know about the recent demand of FMC products in rural area. Limitations:- our investment was limited and time was also less to go in depth Literature review:-Rural market is one of the best opportunities for the FMC sector.

In some sense we can say that rural market is future of FMC. As per research of Parka Bass, (faculty of CIFS business school), the lifestyle of rural consumers is changing. Rural Indian market and the marketing strategy have become the latest marketing buzzword for most of the FMC majors.She added the strategies of different FMC companies for capturing rural market like Titan's Sonata watches, Coco Cola's mall bottle, different strategies of HULL and Marino etc.

She takes into consideration the study of National Council for Applied Economic Research (NCAR). According to the NCAR projections, the number of middle and high-income households in rural area. India is expected to grow from 80 million to 111 million by 2007. In urban India, the same is expected to grow from 46 million to 59 million.

Thus, the absolute size of rural India is expected to be double that of urban India.According to Paraded Toccata, (former vice president of LAG) The economic growth in Indian's agricultural sector in last year was over 7%, compared with 3% in the industrial sector. This implies a huge market potentiality for the marketer to meet up increasing demand. Factors such as village psyche, strong distribution network and market awareness are few prerequisites for making a dent in the rural markets. The model is of the stolid Anglo-Dutch conglomerate Milliner Group, which has enjoyed a century- long presence in India through its subsidiary Hindustan Lever Ltd. It was HindustanLever that several years ago popularized the idea of selling its products in tiny packages.

Its sachets of detergent and shampoo are in great demand in Indian villages. Britannic with its low priced Tiger brand biscuits has become some of the success story in rural marketing. Rashes K Italy of MIM(L) had done his research on rural telecoms in India . He explain that Rural markets are an important and growing market for most products and services including telecoms.

The characteristics of the market in terms of low and spread out population and limited purchasing power make it a difficult market to capture.The Bottom of the pyramid marketing strategies and the 4 As model of Availability, Affordability, Acceptability and Awareness provide us with a means of developing appropriate strategies to tackle the marketing issues for marketing telecoms services in rural areas. Successful cases like the Grahame Phone in Bangladesh and Smart the issue. As per concern of my research, it is a detail study of different FMC products used by rural consumers. It will provide detail information about consumers' preferences towards a good number of FMC products which is too unique and different from those above researches.

From the last ewe years, the demand of shampoo sashes as well as medium size bottles has increased in rural area. Peoples of every age are interested to use shampoo at regular interval. The consumer's preferences towards shampoo are as follows:- 042% prefers clinic plus. 030% consumers prefers sunlit. 010% consumers go through Calvin Care's shampoo in of consumer's uses Heads & Shoulders.

028% goes through Pentane. 018% prefers sunlit. 012 % prefers clinic plus. 010% includes non shampoo users or users of some other brands, CONCLUSION:-This analysis shows that a vast majority of rural consumers prefersSo what from the few years, the demand of different saving creams of different companies has been increased. A brief analysis of different brands of different companies is given in following data- The preference of consumers towards saving cream is described as of the consumers prefers Palmolive as their best choice.

030% consumers prefers Viejo Toilette which is most damnable brand in urban areas has very low market share in the rural market due to it's little bit high price. After saving gel is generally not popular in the rural market.The data analysis of consumers preference towards tea is discussed as nonusers prefers Tag as their obstetrics. 026% of the rural consumers prefers Data tea. 021% of the rural consumers prefers double diamond. 011% consumers prefers Tag mall tea.

010% Consumers are among those who prefers some other Tea brands.-As per given in the above table Tag and Data tea are the leading tea brands in the rural market. The rural market is very large in compare to the urban market as well as it is more challenging market. The consumer wants those products which are long lasting, good, easy to use and cheaper.

The income level of rural consumers is not as high as he income level of urban consumers that's why they want low price goods. It is one of the reason that the sell of sachet is much larger in the rural area in all segments. It is necessary for all the FMC major companies to provide those products which are easy to available and affordable to the consumers. It is right that the profit margin is very low in the FMC products, but at the same time the market size is much large in the rural area. The companies can reduce their prices by cutting the costs on the packaging because the rural consumers don't need attractive packaging.