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Rural Marketing
1. A COMPARATIVE STUDY ON
BRAND CONCIOUSNESS BETWEEN
RURAL AND URBAN CUSTOMER IN FMCG SECTOR
PRESENTED BY:
MADHUSUDAN NARAYAN
2. EXECUTIVE SUMMARY
Brand consciousness is awareness of a brand as a distinct product separate from others. It is approximately image and
perception. Brand consciousness is more than simply an awareness or preference for a particular brand. Brand is a
Name, Logo, Symbol, etc. given to differentiate a particular product form the competitor’s product. Brand name affects
price perception. Branded products are generally perceived to be higher priced than unbranded products (higher
acceptable price). That is, branded products appear to command a price premium as compared to unbranded products.
This Project is Exploratory Research, I was not sure what will be the end result. It is done to discover ideas and
provide insights and understanding, Research process is flexible and unstructured, Analysis of primary data is
quantitative. Findings will be Tentative, Outcome may be generally followed by further exploratory or conclusive
research.
Methods used was Pilot survey conducted by me, where I visited 20 Retail Outlet situated in Muzaffarpur – Rural
(Bihar) and 25 retail outlets in Durgapur – Urban (West Bengal). where I had spent around 2 hours in each retail outlet
and I observed and noted what customers are asking, whether Brand or Product, whether Customer are looking for a
particular Brand or Take Brand which is pushed or Provide by the retailer, whether they are looking of Price
consciousness, whether they are looking for discount packs, whether they are looking for small packs of high volume
product, etc.
After that I had made questionnaire on Brand Consciousness and Price Consciousness for Rural and Urban
customers (Based on Pilot Survey and Literature Reviews of different Researchers/ Experts) , the selection of customer
whether they belong to rural are or urban area was based on the address or short address provide by them (I had
mention Address Column in Questionnaire).
Then, I had put the data into MS-Excel 2013, and found out (1) Average Score of Brand Consciousness of
Rural customer and Urban Customer (2) Average score of Price Consciousness of Rural Customer and Urban Customer.
After that I applied Chi – Square Test, and later on I had used Independent T- Test (for Testing of Hypothesis and for
comparing Rural and Urban customer on Brand Consciousness and Price Consciousness) by using SPSS 22.
3. INTRODUCTION TO CONCEPT
• Fast moving consumer goods is similarly recognised as consumer packaged goods. The Fast Moving
Consumer Goods (FMCG) industry in India is one of the largest sectors in the country and it is at present-
day the fourth largest sector with a total market size in excess of USD 14 billion as of 2014. It has been
predicted that the FMCG market will reach to US$ 33.4 billion in 2015. Fast moving consumer goods
(FMCGs) are products that are sold quickly at a relatively low cost. FMCG companies have immense
possibilities for growth and if the companies are able to change the mindset of the consumers, i.e. if they
are to take the consumers to branded products and offer new generations products, they would be able to
generate higher growth in the near future. The most common things in FMCG are toilet soaps, detergents,
shampoos, toothpastes, oils etc.
• Brand Awareness
Brand awareness measures the accessibility of the brand in memory. Brand awareness can be measured
through brand recall or brand recognition. Brand recall reflects the ability of consumers to retrieve the
brand from memory when given the product category, the needs fulfilled by the category, or some other
type of probe as a cue.
• Price consciousness:
• Price is central to consumer behaviour because of its presence in around all purchasing situations. When
price is perceived as a positive signal, it signals quality, prestige or status to the consumer (Monroe and
Krishnan, 1985). In its negative role, price is perceived purely as an economic sacrifice. Price
consciousness refers to ‘‘the degree to which a consumer focuses exclusively on paying low prices’’
(Lichtenstein et al., 1993).
4. • Source : www.ttp://www.itcportal.com/sustainability/action.aspx> • Source: www.ijiset.com (International Journal of Innovative Science, Engineering &
Technology, Vol. 1 Issue 10, December 2014.) ISSN 2348 – 7968 Page number-294
5. PILOT STUDY
The purpose of this study is to find out Brand Consciousness between Rural and Urban Customer in FMCG sector. For this Study I had selected Rural Market of
Muzaffarpur District (Bihar), and for urban Market, Durgapur (West Bengal). The number of Retail Outlets visited are 45 (20 outlets in Muzaffarpur – Rural, and 25 outlets
in Durgapur – Urban)
• Findings in Rural Market ( Muzaffarpur – Rural )
In most of retail outlets I heard the term “Give me Rs 10 Biscuit/ Soap/ Tooth Paste/ Aggarbatti/ Tea, etc., this shows that people is “Price
Consciousness”. Some of the other things I found was for Small Packet of Surf, Surf Excel is asked (give me Rs 2 Surf Excel) whereas Rs 2 Aireal was not asked. In
case of Cigarettes Gold Flake, Charms, and Navvy Cut was asked in around all outlet which I visited, in this regard all customer prefer Brand they move to other
outlets if the asked brand was not given.
Maggi was most frequently asked in all outlets, Yippee (ITC- Noodles) was consumed upto when, upto when Rs 10 Paytm coupon code for Mobile Recharge was
available (People asked : give me Rs 10 coupon Maggi, actually they ask about Yippee). For Soap products HUL products was Preferred or given by Retailer, Like Lux
Soap variants. In toothpaste market of Rs 10 Product CloseUp was given by Retailer if customer doesnot specifies about Rs 10 Colgate or Pepsodent.
Kurkure and Lays chips was consumed in around all stores, Kurkure was asked with name whereas, Lays was given/ asked on name of Chips, same things was
here give me Rs 10, Rs 20 Kurkure / Chips. Similarily, Vasiline, Boroplus and Vicks was asked at all retail outlets by Brand name only, for Vasiline and Boroplus same
Rs 5 Pack was Preferred, for Vicks Smaller Pack of Vicks was aked ( Give me Small Vicks). Jhandu baam was given only if customer specifically ask about it.
Salt and Tea , Tata Product was consumed, either it was given by Retailer or Directly asked by Customer, (Give me Rs 10 Tea --- Retailer – Tata Tea). For face
cream Ponds and Lakme was preferred and asked by name, then people choose variant of particular Brand.
Very Amazing fact about Mosquito Coil Market, People ask about Good Night, Maxo, or Mortein in the Name of Mortein Only !! ( Give me Mortein, ( Mosquito Coil )
For Spice, same Rs 5 Market is very bigger, Catch and Evererst and mainly consumed, rather than of MDH or Sunrise. For 100gm or 250 gm of Red Chilli Powder,
Garam Masala, and Corundum Powder, Turmeric Powder ITC – Aasirwaad is given by retailer. Everest and MDH was asked for Chicken Masala, or Sabzi Masala. For
Mustard oil, SALONI and Engine brand was asked/ Given and Dharra in some cases. For Small Shampoo packets of Re 1, Rs 2, and Rs 3, Clinik Plus and Sunsilk
Consumed more, Head & Shoulder was next consumed, rather than Dove, Vatika, etc.
For Rs 10 Detergent Market, Wheel has set itself on Tongue of customer. But surf excel has also entered into Rs 10 Detergent market it will create trouble for
Wheel (I heard from 1 – 2 customers when Retailer told themselves about it, Ok why to take others if Surf is available in Rs 10). For Detergent Market mainly about ½
KG or 1 KG Tide was very very much Preferred and consumed than other detergents like Surf Excel, RIN, etc. For Hair oil Dabur Amla, and Nihar was consumed
more, for Hair oil consumer give time about selecting product and very conscious about brand. For Handwash Liquid Dettol and Lifebouy liquid was only consumed, for
Dettol liquid customer see the variants of its hand wash.
In my observational study I found Maggi, Mortein, Vicks, has positioned itself as “Brand on Tongue as well as Brand which represents Product” (i.e, they ask for
Maggi rather then ITC - Yippee or Noodles, Mortetin rather than Good Night, or Maxo.)
Last I want to conclude that. In Muzaffarpur – Rural, what I found that in most of cases people mainly ask about Product and mainly focus on the price, rather
than quality of brand. But people don’t compromise in case of Cigarettes, Face Cream, Hair Oil, Soap they simply go to other retailer if the asked Brand was not
available to a particular retail Store.
Whereas, in Biscuit I found that people don’t ask about Brand. In every Retail outlet they simply ask give me Salty Biscuit, Rs 5 Biscuit, Rs 10 Biscuit, Cream
6. FINDINGS IN URBAN MARKET (DURGAPUR – URBAN)
In Baby care product people “ONLY” ask for Johnson and Johnson product, like shampoo, baby powder, and mostly Baby Soap. In Toothpaste, Colgate was Major choice,
followed by Close Up and Pepsodent in all outlets. People simply ask Give me Colgate or just ask for its variants and Close up in some case, but Pepsodent was only
purchased if retailer has none of above two.
For Mosquite Protection, People ask for Good Night for Liquid/ electronic use and Mortein for Coil, a patter which I found in all the retail outlets which I visited. Even the
retailer provide them other brand like Maxo they simply leave that retail outlet.
For Shampoo, Dove, and Head & Shoulder is mostly consumed followed by Sunsilk and Clinik Plus, Customers ask about Brand only, if not available people go to other
outlets.
For Cake, I had seen all retailers keep Cake in Transparent Glass Box or in Front of Billing Counter. People who come with children, kids ask mainly for Cake, only
Britannia Cake and its varients were Purchase, in only one retail outlet i had seen Paramount cake, which was Pushed by the retailer, rest in Durgapur Britannia cake and its
Variant is consumed.
People who come with children, kids ask for “ CRUX “ by showing its logo to parents to purchase it. (CRUX is kind of snacks, it has Sale Promotion offer of Small Toy
inside, so Kids are shouting for it.)
For snacks products, Lays with its variant Red and Green was specifically asked by the customer and for Kurkure, the Brand over Product was asked by everyone
(Kurkure Masala Munch) , but Kurkure had launched its varients like “Buttern Munch and Naughty Tomato” but I had not seen any people asking for it, in 1 shop I had seen
one customer purchased because it was pushed by retailer. In snacks I found for chips people are fixed with Lays and in some outlets Uncle Chips but people are fixed with
Kurkure. In context of Bhujia or Moong Dal, the “ Haldiram” was asked with name (Prabhu ji Haldiram) if retailer has not Haldiram customer simply leaves the outlet.
For Dry milk, People ask about AmulSpray and Everyday, in some outlets people also purchase Madhusudan Dry milk powder if pushed by retailer. In Dry milk people
ask for small packs and 100gm or 250 gm of Everyday and Amulspray. For Agarbatti people generally asked for “Give Agarbatti” or “ Rs 10 Agarbatti” in around all outlets
Retailer Provide any Agarbatti and customer accepts that but, in some outlets “Mangaldeep” (ITC – Product ) was asked .
For health Drink, Horlicks in major player in Durgapur market, customer ask about it and retailers also keep it only. Only some retailers have Bournvita and Complan, but
both of them are very very far away from Customer Preference of Horlicks.
in soup market Very interesting thing I found sir, in every store I found people are consume “KNOR” but don’t know its name, simply they pick the packet or aks the
retailer by pointing figure on it. In Durgapur the customer who purchase soup they go for KNOR.
Nestle, which is doing Umbrella Branding (Maggi), its one product Maggi Pazzta is popular among Women customer.
For coffee people ask for small packets of Nescaffe Coffee, by Brand name. In Bread Market Paramout is given by retailers and customer only ask about Bread.
For Musturd oil Engine, Srimati and Ganesh is given by retailer people simply ask for Mustard oil. Here, they have no Brand Conciousness but some people ask for only
“DHAARA” Mustard oil.
For Detergent, Customer ask for Rs 10 Detergent Wheel and Nirma, Sometimes retailer gives Safed Detergent but customer has no issue with this. For 1 Kg or ½ Kg Tide,
RIN and Wheel is mainly asked by customers from retailers. For small packets surf Excel is asked followed by Areal.
For Toilet Cleaner only Harpic is asked with its brand name, but people ask about prices of its quantity and purchase on basis of their budget, but only Harpic.
For Spices, Rs 5/ Small Packet Sunrise Masala is asked by its name, but for purchase of Turmeric powder, Corundum powder, etc ITC- Aaariswaad is asked and also retailer
give it if customer don’t specified about brand. For Chicken Masala Everest is asked everywhere.
For Hair oil Parachute, and Nihar is commonly used. In Tea market Tata Tea with its variant Gold and Premium is asked and purchased. For soap mainly LUX and Dettol is
asked. For handwash mainly Dettol Liquid is asked.
For cigarettes Gold Flake, SilkCut Blue, Special and Malboro is asked by the customers. Customers have very Brand preference for cigarettes.
Last for Noodles Maggi is ultimate, and Some Customers ask for Yippee (ITC). But Yippee is very very far away form consumption of Maagi.
7. RESEARCH METHODOLOGY
STATEMENT OF THE PROBLEM
• Now a days the Market of FMCG products are increasing. Giant
Player like HUL, P & G, PepsiCo, etc. are offering more variants of
their products. The statement of Problem is that why people are
consuming or buying a particular Brand / Product?
• On which ground purchase in made?
• Does location (Rural or Urban) matters for consumptions of a
particular Brand/ Product?
• Does Price (Consciousness) really matter for consumption of a
particular Brand / Product?
• Does purchase is made on Brand preference?
• Does Brand Consciousness is greater than Price Consciousness?
• Does Price Consciousness is greater than Brand Consciousness?
8. OBJECTIVE OF THE STUDY
• To find out association between location (Rural and
Urban) with Consciousness (Brand and Price)
• To find out Brand consciousness in Rural Customer
• To find out Price Consciousness in Rural Customer
• To find out Brand Consciousness in Urban Customer
• To find out Price Consciousness in Rural Customer
9. • DATA COLLECTION
• Several approaches were used for data collections. The Primary sources of data collection are done through
Observations and Questionnaire.
• Secondary Source through Research Journals, Internet Websites, and Literature Reviews
• SAMPLING TECHNIQUE
• Sample Size
Sample size was restricted to 250 respondents (125 for Urban Customers and 125 for Rural Customers).
Since, time of the project was limited and it is not possible to cover the whole universe in the specified time
or available time.
• Sampling Method:
Non – Probability sampling technique was used, because nature of research was Exploratory. Non-
Probability sampling is least expensive, least time-taking and most convenient. By using Non-Probability
Sampling Technique Variability in Population is Homogenous(Low). Operational Consideration is favourable,
like Time and Cost will be favourable.
Since, my Research design is Exploratory so I had used this technique, there are four methods of Sampling
Technique in Non-Probability Sampling Technique
• Conveniences Sampling
• Judgemental Sampling
• Quota Sampling
• Snowball Sampling
I had use Convenience sampling Technique in my Research
10. • PLAN OF ANALYSIS
• The responses obtained by the Respondents from the structured questionnaires were
interpreted and recorded. The Table, Pie Chart, Independent T- Test were constructed
using SPSS 22.
• LIMITATIONS OF THE STUDY
• Firstly, the research work covers only Muzaffarpur – Rural and Durgapur – Urban area.
• Secondly, the respondents don’t want to disclose their personal information.
• Thirdly, the sample size was 250 (125 each) do not ensure representative and
conclusive finding and finally, since it was exploratory research, a more detailed study
is needed to reach a strong conclusion.
• The study in conducted only in Durgapur and Muzaffarpur. Buyer behaviour being
dynamic in nature and with increasing awareness level of rural buyer there is
possibility that these findings may not be true in future or in other parts of rural India.
11. DATA ANALYSIS AND INTERPRETATION
• On the basis of survey conducted I had made questionnaire on for Comparison
of Rural Consumer and Urban Consumer in Brand Consciousness and price
Consciousness
• On that basis, after getting feedback from respondent it had put the data in MS-
Excel 2013, then I calculate
•
• Rural Customer -- Average Score of Price Consciousness
Average Score of Brand Consciousness
• Urban Customer -- Average Score of Price Consciousness
Average score of Brand Consciousness
• After that with help of MS-Excel 2013, I found the value
12. CHI SQURARE CALCUTION
Chi-square is a statistical test that tests for the existence of a relationship between two variables
• X2 = 2.868
• Since our calculated value is 2.868 and our Tabulated Value is 3.85, So
we will accept our NULL Hypothesis, (i.e., There is no association of
location (Urban and Rural) with Consciousness (Brand and Price)
• Now we will find Price Consciousness Ratio and Brand Consciousness
Ratio between Rural and Urban customer
Price Consciousness > Brand
Consciousness
Price Consciousness <
Brand Consciousness Total
RURAL_MUZAFFARPUR 54 71 125
URBAN_DURGAPUR 41 84 125
Total 95 155 250
13. • Now we will find Price Consciousness Ratio and Brand
Consciousness Ratio between Rural and Urban customer
PRICE CONCIOUNESS BRAND CONCIOUNESS
Total Score on PC Rural / N
= 54 / 95
= 0.568 or 56.8 %
Total Score on BC Rural/ N
= 71 / 155
= 0.458 or 45.8 %
Total Score on PC Urban/ N
= 41 / 95
= 0.431 or 43.1 %
Total Score on BC Urban / N
= 84 / 155
= 0.541 or 54.1 %
14. INDEPENDENT SAMPLE T- TEST
• FOR PRICE CONCIOUSNESS BETWEEN RURAL AND URBAN CUSTOMER
• Independent sample T-Test is done to compare an independent sample
with another independent sample.
• It is done to compare the mean score of two different group.
• To determine if statically significant differences exist in term of their
mean score
• Here I have conducted Independent Sample T-Test to compare Price
Consciousness score between the Urban Location and Rural Location.
15.
16.
17. • There is a significant difference in the Urban Location (M=3.42, SD=1.213) and Rural Location (M=3.71, SD=1.022) conditions;
T (248)= -2.086 , P= 0.38 in terms of I would like to purchase FMCG items based on Rs 10 taglines
• There is a significant difference in the Urban Location (M= 3.70, SD=1.070) and Rural Location (M=4.38, SD=.680) conditions;
T (248) = - 5.925, P = 0.000 in terms of I love to get price discount
• There is a significant difference in the Urban Location (M=3.74, SD=1.177) and Rural Location (M=4.19, SD=.939) conditions;
T (248) = -3.326, P = 0.000 in terms of I love various Offers like Combo packs, Coupons, Premium, buy one get one free, etc.
• There is a significant difference in the Urban Location (M=2.99, SD=1.096) and Rural Location (M=3.54, SD=.1.235)
conditions; T (248) = -3.683, P = 0.000 in terms of I will not stick on the same product, if the price is increased
• There is a significant difference in the Urban Location (M= 3.44, SD=1.187) and Rural Location (M=4.06, SD=.982)
conditions; T (248) = - 4.529, P = 0.000 in terms of I compare the prices of brand to make sure that I would get the best.
• There is a significant difference in the Urban Location (M=2.98, SD= 1.016) and Rural Location (M=3.65, SD=1.252)
conditions; T (248) = - 4.649, P = 0.000 in terms of I search various retail store for value product (Product having less price
• There is a significant difference in the Urban Location (M=2.25, SD=.956) and Rural Location (M=2.73, SD=1.240) conditions;
T (248) = -3.427 , P = 0.001 in terms of I buy low price product even if it is not fulfilling all requirements
• There is no was a significant difference in the Urban Location (M=3.50, SD=.930) and Rural Location (M=3.34, SD= 1.224)
conditions; T (248) = 1.163, P = 0.246, in terms of I search for low volume packs for high price products
• There is no significant difference in the Urban Location (M=3.28, SD=.885 ) and Rural Location (M=3.45, SD=1.174)
conditions; T (248 ) = - 1.277, P = 0.203 in terms of I don't believe high price product is better quality.
20. • There is a significant difference in the Urban Location (M = 4.16, SD = 0.665 ) and Rural Location (M= 3.33 , SD= 1.127 ) conditions; T (248) = 7.108 , P =
0.00, in terms of item (I am Brand conscious).
• There is a significant difference in the Urban Location (M = 3.76 , SD= 0.946) and Rural Location (M= 3.18, SD= 1.201 ) conditions; T (248) = 4.214, P =
0.000, in terms of item (I do not look for price rather look at the brand)
• There is a significant difference in the Urban Location (M= 3.70, SD= 0.992) and Rural Location (M= 3.05 , SD= 1.230) conditions; T (248) = 4.640, P =
0.000, in terms of item (I believe high price equal to high quality).
•
• There is a significant difference in the Urban Location (M= 3.63, SD= 0.998 ) and Rural Location (M=2.60 , SD= 1.122) conditions; T (248) = 7.719 , P = 0.000
• in terms of item (I never change my brand).
• There is a significant difference in the Urban Location (M= 3.79, SD= 0.901) and Rural Location (M= 3.26, SD= 1.092 ) conditions; T (248) = 4.234 , P =
0.000, in terms of Brand name tells me intrinsic value of the brand.
•
• There is a significant difference in the Urban Location (M= 3.89, SD= 1.002 ) and Rural Location (M=3.06 , SD= 1.396) conditions; T (248) = 5.363 , P =
0.000, in terms of If my brand in not available at retail outlet i search in new retail outlet for the same brand
•
• There is a significant difference in the Urban Location (M= 3.73 , SD= 0.954) and Rural Location (M= 2.49, SD= 1.154) conditions; T (248) = 9.259 , P = 0.000
in terms of If my brand is not available in market i wait for its supply
•
• There is a significant difference in the Urban Location (M=3.22 , SD= 1.044 ) and Rural Location (M= 2.58 , SD= 1.166 ) conditions; T (248) = 4.572 , P =
0.000, in terms of I believe economy product is poor product
•
• There is a significant difference in the Urban Location (M= 3.42, SD= 0.909) and Rural Location (M= 3.02, SD= 1.107) conditions; T (248) = 3.123 , P = 0.000,
in terms of I love to see good corporate image of the company from where i consume
•
• There is a significant difference in the urban Location ( M = 4.06, SD = 0.868) and Rural Location (M= 3.42, SD = 1.116) Conditions: T (248) = 3.123 , P =
0.002, in terms of I purchase brand because it is less risky
•
• There is a significant difference in the Urban Location (M= 3.65 , SD= 0.961 ) and Rural Location (M= 2.50, SD= 1.067 ) conditions; T (248) = 8.906, P =
0.000, in terms of Brand is more important than its feature to me.
•
• There was a significant difference in the Urban Location (M= 3.63, SD= 0.838 ) and Rural Location (M= 2.38, SD= 1.097 ) conditions; T (248) = 10.170, P =
0.000, in terms of I can ready to pay extra price (Premium) for purchasing my brand
23. SUMMARY OF FINDINGS
• With the help of Chi-square we got that null hypothesis is to be
accepted (accept our NULL Hypothesis, (i.e., There is no
association of location (Urban and Rural) with Consciousness
(Brand and Price). However, Chi-square could not explained in
which item Brand Consciousness > Price Consciousness, Similarly
in which item Price Consciousness > Brand Consciousness. So, we
had applied Independent T-Test to measure it. The findings are :
24. SUMMARY OF FINDINGS…….
PRICE CONSCIOUSNESS BRAND CONSCIOUSNESS
RURAL CUSTOMER I would like to purchase FMCG items based on Rs
10 Taglines
I love to get price discount
I love various offers like combo packs, coupons,
premiums, etc.
I will not stick on the same product, if the price is
increased.
I compare the prices of brand to make sure that I
would get the best.
I search various retail store for value product
(Product having less price)
I buy low price product even if it is not fulfilling all
requirements
I don’t believe high price product is better quality.
URBAN CUSTOMER I search for low volume packs for high priced
products.
I am brand conscious
I do not look for price rather look at the brand
I believe high price equals to high quality.
I never change my brand
Brand name tells me intrinsic value of the brand.
If my brand is not available at retail outlet I search in new
retail outlet for the same.
If my brand is not available in market I wait for its supply.
I believe economy product is poor product.
I love to see good corporate image of the company from where
I concusme.
I purchase brand because it is less risky
Brand is more important that its feature to me.
I can ready to pay extra (Premium) for purchasing my brand.
25. SUGGESTIONS AND RECOMMENDATIONS
• After analysing the Independent sample T- Test, we found that in eight
out of nine questions of price consciousness Mean of Rural Location is
Greater than Urban locations. It tells that people are more Price
conscious in rural location. Companies are often targeting Rural peoples
on items based on Rs 10 Taglines. But, in Urban Locations People search
for low volume packs for high priced products (here Mean of Urban >
Rural location). We can tell that in urban location people look for low
volume packs of high priced products.
• Same, in Brand Consciousness, all items belong to Urban location only
(since Mean of Urban Location of all item > Mean of Rural Location of all
items) so, there is still huge difference in Brand Consciousness of Rural
location with Urban Location. In urban location people look for Brand,
whereas in Rural Location people look for Price.
26. SUGGESTIONS AND RECOMMENDATIONS…..
(Rural Location)
• Companies offering their product in rural market should design their product on basis of
price only. People do not look at quality. Like Tide (P& G) is doing first they were
offering 600 gram, after the price was about to raise, then they maintained same price
and offered 550 gram, similarly now they are offering 450 gram. They are not
increasing their price, but decreasing their weight.
• Surf excel has also done so, previously they were offering 15 gram of Surf in Rs 2, but
instead of increasing price they are offering 13 gram of surf in Rs 2. ( 60 % of
respondent will not stick to same brand if their price is increased)
• 65 % of Respondent buying decision is influence by Price Discount offers, for a
company which is operating in Rural Market has to look after this.
• 57 % of Respondent search for various retail store for value product (Product having
Less Price) it tells that Price Consciousness is more in rural location.
• 55 % of Respondent do not believe that high price product is better product. So, it is
essential for marketer which is operating in rural area to know this and design their
strategy based on “PRICE”.
27. SUGGESTIONS AND RECOMMENDATIONS…..
(URBAN LOCATION)
• Companies which are offering their product in Urban Market, around 61 % of
respondent are ready to pay extra prices for Branded Product and 69 % of Respondent
look for brand not for Price. Nestle Maggi has done same, increased its price form Rs
10 to Rs 12. So, Companies / Brand whose consumption is more in Urban area, and
established themselves in mind of consumer can increase the price. (56 % of
respondents think brand is more important then its features to them)
• 74 % of Respondent purchase brand because it is less risky, so companies should
work more on Branding themselves. Once they do so, their sales will be increased.
• 69 % of Respondent wait for supply of their brand if it is not available in market, and
71 % of Respondent search for other retail outlets if their brand is not available at
particular retail outlet. So we can say that by means of Branding Companies can hold
their customer and make them loyal toward their particular brand. 59 % of
Respondent generally do not change their brand, So, Branding is necessary.
• 63 % of respondent in Urban location believe that high price equals high quality.
Manufacturer of “Dhara Oil” are doing this only. High price is symbol of high quality.
• Companies can do Better Branding through use of Effective Marketing Communications
Tools, and trough Viral Marketing, if Companies are able to create image in mind set of
customer in Urban location it will increase their revenue and also make permanent
customer (to some extent).
28. CONCLUSION
• A study was conducted to see the Consciousness of brands of FMCG goods and their usage in
rural areas and urban areas. There is an increasing trend among the people of rural areas about
the consciousness of various brands (43.1 %in my study) of the daily consumption goods. As
people of rural areas are becoming more conscious about their health and other aspects of
life(Shabir Majeed, 2014 ). They assume branded products as quality products which are good
for their health and for beauty aspect etc. some of them are ready to pay high prices for the
branded products (Sinha, 2008). They use branded daily consumption for their own reasons. The
main reason is they assume the branded products as a status symbol. This change in the attitude
of rural people to spend more on the highly priced daily consumption branded products shows
the tendency of new markets available for suppliers of the various branded products. The need of
the hour is only to make aware the rural customers regarding the brand availability of daily
consumption goods by educating them about the need to the use of branded products.
• Initially with the help of Chi – square test we found around 56 % of the customer in rural area
are price conscious and 43 % of customer in Urban Location is Price conscious, (my study) and
around 45 % of Rural customer are Brand conscious, and 56 % of the Urban Customer are Brand
Conscious.
• But after using Independent sample T – Test, we found, people in Rural location are Price
Conscious (8 out of 9 items, Mean of Rural > Urban) and People in Urban are Brand Conscious (
12 out of 12 item, Mean of Urban > Rural)
29. LEARNING EXPERIENCE
• The study was very interesting, here when I was supposed to visit retail outlets in Muzaffarpur –
Rural, I had faced many problem like some shopkeepers were not ready to co-operate me but for
the study it was required to get some primary data by visiting Rural Retail outlets and to observe
what customers are asking, whether they are asking for brand, whether they are asking for
product only, whether they are asking with price tag like, give me Rs 10 Soap, Surf, etc., whether
the customer are accepting the brand which is pushed by retailer or whether they are leaving the
outlet and go for other retail outlet. Does price really matters in FMCG product buying, etc.
• Lots of things came in my mind while doing the project, finally when I visited 20 retail outlets in
Muzaffarpur – Rural, I got major thing that many people are price conscious, and asking the
product in name of Rs 10 (Give me Rs 10 Soap, Biscuit, etc.)
• Similarly, I was supposed to visit retail outlets in Durgapur – Urban, same problems arise that
retailers were not allowing me to stand and write, but it was need of the study that I have to
collect some primary data which will guide me for further research. Finally I was able to convince
the retailers so that allowed me to spend time in their outlets and observe what customers are
looking for.
• Finally, after getting information’s from customers I had asked retailers about what majority of
customers are looking for and then I with my observational study made (Pilot Study, It is required
for Exploratory Research Design) a report. With the help of Pilot study’s Report and Literature
review I made the questionnaire and asked the respondents to fill it.
• My research is Exploratory so, it will give some idea to the researchers who will go for further
casual Research or Exploratory Research.
30. BIBLIOGRAPHY
• Books and Articles:
• Marketing Research – An Applied Orientation , Sixth Edition, Natresh K. Malhotra, Satabhushan Dash, Pearson
• Prahalad C K. (2004). Fortune at the Bottom of the Pyramid, New Delhi: Pearson Publication
• Brand Awareness in Rural Area: A Case Study of Fast Moving Consumer Goods in Pulwama District of J&K State by Shabir
Majeed Coordinator - JKEDI, Sempora, Pampore (J&K), India . Published in International Journal of Business and
Management Invention ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X www.ijbmi.org Volume 3 Issue 5ǁ May. 2014
ǁ PP. 50-53
• Rural Marketing, Dr. Sawalia Bihari Verma, Madhusudan Narayan, Dr. P. Thrymbakam (Scientific Publication, Jodhpur, 2015)
• Brand awareness and consumer preference with reference to FMCG sector in rural Bihar. by Mridanish Jha, Published in
International Journal of Advanced Research in Management and Social Sciences ISSN: 2278-6236
• A Comparison Of Rural And Urban Buying Of Consumer Durables, Dr Jagwinder Singh, B.R. Ambedkar National institute of
Technology, Jalandhar, Published in Global Journal of Management and Business Research Volume 11 Issue 5 Version 1.0
April 2011
• Keller, K. L., Heckler, S. E. Heckler & Houston, M.J. (1998)
• Websites:
• www.socialsciences.com
• www.wikipedia.org
• http://www.mckinsey.com/mgi/publications/india_consumer_market/slideshow/main.as
• McKinsey (2007) India Consumer (Full Report),
http://www.scribd.com/doc/47945/McKinseyMGI-india-consumer-full-repor
• MART (2005), How well do we know rural India?
http://www.martrural.com/ruralmkt.htm
Editor's Notes
(Note: Astatistically significantt-test result is one in which a difference between two groups is unlikely to have occurred because the sample happened to be atypical. Statistical significance is determined by the size of the difference between the group averages, the sample size, and the standard deviations of the groups. For practical purposes statistical significance suggests that the two larger populations from which we sample are “actually” different. The Levene's F statistic of .0000 does not reject the null hypothesis of equal variances (p<.995).)