A SYNOPSIS ON

“RURAL MARKETING”

AT

“HERITAGE FOODS IND LTD”

BY

GANTA ABHISHEK

(HALL TICKET NO: 2129-18-672-104)

Synopsis for project to be submitted for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

OSMANIA UNIVERSITY

2018-2020

AURORA’PG COLLEGE, MUSARAMBAGH

Markets:
The concepts of exchange and relationships lead to the concept of a market. A market
is the set of actual and potential buyers of a product. These buyers share a particular need or
want that can be satisfied through exchange relationships.

Marketing means managing markets to bring about profitable customer relationships.

However, creating these relationships takes work. Sellers must search for buyers, identify
must first create a need-satisfying marketing offer (product). It must decide how much it will
charge for the offer (price) and how it will make the offer available target consumers (place).
Finally, it must communicate with the target customers about the offer and persuade them of
its merits (promotion).

Marketing:

Marketing is the business function that identifies customer needs and wants. Creating
customer value and satisfaction are the heart of modern marketing thinking and practice.
Marketing is the delivery of customer satisfaction at a profit.

Many people think of marketing only as selling & advertising. But selling &
advertising are only the tip of marketing. Marketing means managing markets to bring about
exchanges and relationships for the purpose of creating value and satisfying needs & wants.

Today, marketing must be understood not in the old sense of making a sale – ‘’telling
and selling’’ – but in the new sense of satisfying customer needs. If the marketer does a good
job of understanding consumer needs; develops products that provide superior value; and
prices, distributes, and promotes them effectively, these products will sell very easily. Thus,
selling and advertising are only part of a larger ‘’marketing mix’’ – a set of marketing tools
that work together to satisfy customer needs and build customer relationships.

Broadly defined, marketing is a social and managerial process by which individuals

and groups obtain what they need and want through creating and exchanging value with
others. In a narrower business context, marketing involves building profitable, value – laden
exchange relationships with customers. Hence, we define marketing as the process by which
companies create value for customers and build strong relationships in order to capture value
from customers in return.

Marketing Research
According to American Marketing Association, “Marketing Research is the function that
links the consumer, customer and public to the marketer through information-information
used to identify and define marketing opportunities and problems, generate, refine and
evaluate marketing actions; monitor marketing performance; and improve understanding of
marketing as a process.”

Marketing Research is systematic problem analysis, model building and fact finding for the
purpose of important decision making and control in the marketing of goods and services.

Marketing Research is a well-planned, systematic process which implies that it needs

planning at all the stages. It uses scientific method. It is an objective process as it attempts to
provide accurate authentic information. Marketing Research is sometimes defined as the
application of scientific method in the solution of marketing problems.

Marketing Research plays a very significant role in identifying the needs of customers and
meeting them in best possible way. The main task of Marketing Research is systematic
gathering and analysis of information.

"The future lies with those companies who see the poor as their customers."
-C. K.
Prahalad
Concept

In recent years, rural markets have acquired significance, as the overall growth of the
economy has resulted into substantial increase in the purchasing power of the rural
communities.

On account of green revolution, the rural areas are consuming a large quantity of industrial
and urban manufactured products. In this context, a special marketing strategy, namely, rural
marketing, has emerged. But often, rural marketing is confused with agricultural marketing -
the latter denotes marketing of produce of the rural areas to the urban consumers or industrial
consumers, whereas rural marketing involves delivering manufactured or processed inputs or
services to rural producers or consumers.

What Makes Rural Markets Attractive?

Rural market has following attributes and the following facts substantiate this: -

742 million people

Estimated annual size of the rural market -

FMCG Rs. 65,000 Crore

Durables Rs. 5,000 Crore

Agri-Inputs (including tractors) Rs. 45,000 Crore
2 / 4 Wheelers Rs. 8,000 Crore

In 2001-02, LIC sold 55% of its policies in rural India.

Of two million BSNL mobile connections, 50% are in small towns / villages.

Of the 6.0 lakh villages, 5.22 lakh have a Village Public Telephone (VPT).
41 million Kisan Credit Cards have been issued (against 22 million credit-plus-debit cards in
urban), with cumulative credit of Rs. 977 billion resulting in tremendous liquidity.

Of the 20 million Rediffmail sign-ups, 60% are from small towns. 50% of transactions from
these towns are on Rediff online shopping site.

42 million rural households (HHs) are availing banking services in comparison to 27 million
urban HHs.

Investment in formal savings instruments is 6.6 million HHs in rural and 6.7 million HHs in
urban.

Opportunities

1. Infrastructure is improving rapidly -

In 50 years only, 40% villages have been connected by road, in next 10 years another 30%
would be connected.

More than 90% villages are electrified, though only 44% rural homes have electric
connections.

Rural telephone density has gone up by 300% in the last 10 years; every 1000+ pop is
connected by STD.

Social indicators have improved a lot between 1981 and 2001 -

Number of "pucca" houses doubled from 22% to 41% and "kuccha" houses halved (41% to
23%).

Percentage of BPL families declined from 46% to 27%.

Rural literacy level improved from 36% to 59%.

Low penetration rates in rural areas, so there are many marketing opportunities -
 Durables Urban Rural Total (% of Rural HH)
CTV 30.4 4.8 12.1
Refrigerator 33.5 3.5 12.0

FMCGs Urban Rural Total (% of Rural HH)

Shampoo 66.3 35.2 44.2
Toothpaste 82.2 44.9 55.6

Marketers can make effective use of the large available infrastructure -

Post Offices 1,38,000

Haats (periodic markets) 42,000
Melas (exhibitions) 25,000
Mandis (agri markets) 7,000
Public Distribution Shops 3,80,000
Bank Branches 32,000

Proliferation of large format Rural Retail Stores, which have been successful also -

 DSCL Haryali Stores

 M & M Shubh Labh Stores
 TATA / Rallis Kisan Kendras
 Escorts Rural Stores
 Warnabazaar, Maharashtra (Annual Sale Rs. 40 crore)
Need and Importance:

The Topic Selected For Study RURAL MARKETING, As There Is Greater

Importance of Customer Perception in the Organization Due To Impact of Growing Customer
impact on The Business Environment. Change Is Here To Stay, And We Need To Understand
That All The Practices That Are Working Today May Not Necessarily Work Tomorrow.
Customers’ Expectations, Market Changes and Strategic Decisions Will Highly Influence the
Customer’s Perception towards a Particular Brand.

Scope Of The Study

The study has a wider scope covering the RURAL MARKETING, the people who are using
HERITAGE FOODS IND LTD products and it also emphasizes on the parameters like
customer awareness, customer perception branding value and image. It also throws a light on
the customer awareness of the retail industry with attention to HERITAGA. The project
covers the entire branding features on their impact on customer

Objectives Of The Study

 To Conduct a Research on Rural marketing in retail industry.

 To know the customer perception on HERITAGE FOODS IND LTD products.

 To know the customer satisfaction on HERITAGE FOODS IND LTD products.

 To estimate the factors influencing the buying behavior of the customer

 To know the brand image among the customers.

 To know the brand awareness among the customers.

Research Methodology

Research Design:

A research design is considered as the frame work or plan for a study that guides and
helps the collection and analysis of the data.

A sound research is the basis of success of any formal research. It is said to be the
blue print of the study conducted.

Nature of the Data:

The data collected for the study was mainly primary in nature. There is first hand
information which is customer opinion, towards the company products. Besides this
secondary data was also collected from company brochures and company websites.

Sources of Data:

Primary data was collected from the customers who are using HERITAGE FOODS
IND LTD products in Hyderabad Rural.

Secondary data was collected from the company brochures and company websites.

Methods of Data Collection:

The method adopted to elicit information from customers is structured questionnaire

that contains close, open ended questions. The reason for choosing the questionnaire
method is primarily due to the qualitative nature of the study.

Survey:

Wide range of information about customer opinion, perception, and expectation is gathered
through survey from Hyderabad Rural Area.
Sampling Design:

Sample Unit: The sampling unit is customers who are using HERITAGE FOODS
IND LTD products, Hyderabad rural area.

Sample Size: The sample size is 100 customers in Hyderabad rural area.

Sampling Method: Random Sampling

LIMITATIONS:

1. As the most of the customers were business HERITAGE FOODS IND LTD give
correct information.
2. The time period of project is 45 days.
3. Though the customers wanted to give information they could not give as it wastes
their business time.
4. The accuracy of the answers depends upon the mode of interest of respondents.
5. Though the customers wanted to give information they could not, as they felt it takes
away their business time.
6. The accuracy of the answers depends upon the mode of interest of respondents.
7. The opinions of the sample may or may not depict the exact opinions of the total
population.
 CHAPTER PLAN

CHAPTER-1
INTRODUCTION
SCOPE OF THE STUDY
OBJECTIVES OF THE STUDY
METHODOLOGY OF THE STUDY
LIMITATIONS OF THE STUDY
CHAPTER-2
REVIEW OF LITERATURE
CHAPTER-3
INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
CHAPTER-5
SUGGESTION
FINDINGS & CONCLUSION
BIBLIOGRAPHY
 BIBILIOGRAPHY

 Barry Berman, Joel Evans R., ―Retail Management a Strategic Approach‖, tenth
edition Pearson Education Inc., Dorling Kindersley Publishing Inc., 2007.
 Rugman A. and D‘Cruz J., Multinationals as flagship firms: Regional business
networks. Oxford University Press: Oxford, 2003.
 Gilbert David, Retail Marketing Management, 2nd ed., Pearson Education, 2003.

WEB SITES

www.heritagefoods.com
www.retailinginindia.com
wwwbirlagroup.com
www.SHOPPERS’ STOP .com