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A brand name in the rural context facilitates easy brand recall and
in drawing any colour , visual or numeric association . The challenges in
creating a brand identity in rural involve the need to relate the brand with
the rural lifestyle, or with appropriate status symbols, or with the rural
environment.
70% of India's population lives in 6,27,000 villages in rural areas. 90%
of the rural population 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 urban India. Brand choices in
rural is often limited due to the small market size and the limited capacity
available with the rural retailer. Against six to nine brands in urban shops
OBJECTIVES OF THE STUDY
The data collected is for the period of 2 months i.e. from February
2008 to April 2008. The opinions and expectations revealed pertain to
the same period. The study is based on the data collected from rural
households in the areas of Ramanathapuram , Kannyakumari and
Nagapattinam districts of Tamilnadu state.
OBJECTIVES OF THE
STUDY
Collection of data
The main tool for collecting the data was a questionnaire. It was pre-tested to ensure clarity and
prompt response from the respondents. The secondary data was collected from various
Textbooks, Journals, Magazines, Government Reports, NGO’s reports etc. The sample size was
250. Convenience sampling was adopted to select the respondents. PRA technique is adopted to
Analysis and
Interpretation of Data
collect the data from the rural respondents with the help of local school/college going students
(i.e. data collected from family head with the presence family members in most of the cases )
Introduction
150 S SC /H S C
Table 2:Family head education
100 G raduate /PG
al)
Frequency Percentage 50
Education G raduate /PG
Illiterate 24 9.6
ssional)
0 T otal
Below SSC 89 35.6
Fre que ncy Pe rce ntage
SSC/HSC 81 32.4
Graduate/PG (general) 24 9.6
Graduate/PG 32 12.8
(professional)
Total 250 100
Table 3 : Family Members Highest Educational Qualification
Education Frequenc
y Percentag
e
Graduate/PG 79 31.6
150 S S C /H SC
(general)
Graduate/PG 45 18 100 G raduate /P G
(professional) al)
Total 250 100 50 G raduate /P G
Source: Primary data sional)
Data presented in the above two0 tables reveal that there wasT otalan
Fre que ncy Pe rce ntage 0
increase in the education level over a period of time. Table 2 indicates the
illiterates are 9.6%among the family head ( i.e. Old generation ) and in case
of Younger generation where all are literates. This statistics shows that
parents are sending their wards to at least Schools. The earlier studies
indicate that the increase in Education will bring improvement in the socio
economic status of the people. The School/college going students creates
Table 4: OCCUPATION OF THE FAMILY HEAD
100
80
B u s in e
Occupation Frequency Percentage
60 C o o lie
Business 27 10.8
F a rm e
Coolie 42 16.8
40 G o v t. s
Farmer 93 37.2
P riv a te
Govt. service 59 23.6 20
O th e rs
Private service 3 1.2
Others 26 10.4 0
F re q u e n c y P e rc e n ta g e
The survey result presented in the above table shows that farming
seems to be the occupation of 37.2% of the family head. The coolies and
business community also directly/indirectly depends on agriculture. It is a
well known fact that income from agriculture is seasonal, so the rural
purchase pattern is not constant round the year.
Table 5: Family size of the rural household.
160
140
120
100 Two to Four
80 Members
60 Five to Seve
Size Frequency Percentage
40 Members
Two to Four 156 62.4
Members
20
0
Five to Seven 94 37.6
Members Frequency
0
F re que ncy P e rce nta ge
The above table shows that more than 50% of the rural families
are having their monthly income more than Rs. 5000 .The low income
category seems to be 12.4%.This indicates rural families are having
average purchasing power, since the population is more(72.2%), rural
market has more potential than the urban market
Table 7: Rural Housing Pattern-National level
100
House Type 1981(in 1991(in 2001(in
Percentage) Percentage) Percentage)
80
Pucca 22 31 41
60 Pucca
Semi-Pucca 37 36 36
Semi-Pu
Kuccha 41 33 23 40
Kuccha
Total 100 100 100 20 Total
0
1981(in 2001(in
Percentage) Percentage)
Source: Census of India 2001
Table 8: Rural Housing
Pattern 250
150 Pucca(Concr
Pucca (Concrete) 118 47.2
Semi-Pucca
Semi-Pucca (Tiles) 62 24.8
100 Kuccha (Hut)
Kuccha (Hut) 70 28
Total
50
Total 250 100
0
Frequency Percentage
190 26 5 5 8
200
150
100
3-D Colum n 1
50
0
Sun TV Vijay TV Kalingar TV DD Others
The table given above shows only 6% of the respondents are not
having television set in their houses. Out of the remaining 94% of the
households, most preferred channel is Sun TV. More rural households are
having Television because the Tamilnadu state government distributed
free Television sets. Creating Brand awareness becomes easier for the
Corporate due to high media reach .
Table 10: Education(Family member Highest Education) and type
of dwelling
250
200 Ill it e r a t e
Be lo w S S C
150
S S C /HS C
100
G r a d u a t e /P G ( g e
50 G r a d u a t e /P G ( p r
Source: Primary
T o ta l
0 Data
P u c c a ( C o n c r e t eS)e m i- P u c c a ( T ile s )Ku c c h a ( Hu t ) T o t a l Education and type of
Education Pucca Semi- Kuccha Total
(Concrete) Pucca (Hut) dwelling are important
(Tiles) indicators in understanding
the profile of rural consumers.
Ill iterate 0 0 0 0 In Rural, Socio Economic
Below SSC 0 34 10 44 Classification is done based on
Education and type of House.
SSC/HSC 12 14 56 82 Rural consumers lifestyle
Graduate/ PG(general) 70 8 1 79 ,Purchase behavior and brand
awareness varies according to
the Socio Economic
Graduate/ 36 6 3 45 Classification (SEC).In the
PG(professional) above table those who are
residing in pucca houses are
Total 118 62 70 250 highly qualified , this shows
their economic status.
Table 11: House Type and number of Durable Brands used by the Household
250
200
Below SSC
150
SSC/HSC
100 Source: Primary Data
Graduate/PG(general)
Education
Graduate/PG(professional)is
50
considered
Total as one of the
0 important factor in
0-1st 1-7th 8-10th Above 10 Total determining the Socio
Education Number of Brands Used Total
economic status in rural.
0 1-7 8-10 Above 10 The educated youth act
Below SSC 5 36 3 0 44 as a medium in
SSC/HSC 0 29 53 0 82
bringing brand
knowledge to the family.
Graduate/PG(general) 6 17 42 14 79
In case of non-durables
Graduate/PG(professional) 0 0 41 4 45 the rural household is
Total 11 82 139 18 250 using minimum two
national level Brands.
This leads to an increase
in Brand penetration.
Source: Primary Data
The above table shows
Table 13: Brand Penetration for Consumer
that none of theDurables
families are
Sl.No. Product Name Brand Position
using Microwave oven and
I II III
only a very few(2.4%) are
1 Radio/Music System Panasonic Pioneer Philips
having water purifier. The
common durable products
2 Television BPL Onida Samsung used by the rural households
3 Gas Stove Surya Butterfly Govt. Stove are Radio/Music System,
4 Mixer grinder(mixie) Preethi Butterfly Sumeet Television, Gas stove, Mixer
5 Grinder Lakshmi Butterfly --- Grinder, Grinder, Electric Iron
6 Refrigerator Whirlpool BPL Godrej Box , Wrist watch, Electric
Bulb, Tube light. The products
7 Washing Machine Videocon Whirlpool LG such as Refrigerator, Washing
Machine, Two wheeler and Car
8 Microwave oven --- --- ---
are not used by most of the
9 Water purifier Pureit(HUL --- ---
) rural households.
10 Electric Iron Box Philips Usha Anchor
11 Wrist Watch Titan HMT Citizen BPL,Surya,Philips,
12 Bulb Philips Surya --- Lakshmi,TVS,Titan and
13 Tube Light Philips Surya --- Panasonic are the popular
14 Air Conditioner --- --- --- durable brands among the
15 Two Wheeler TVS Bajaj Hero Honda rural households. The study
16 Car Maruthi Tata Indica Ambassador also reveals that only limited
brands are used by the rural
Table 14: Brand Penetration for Non-durables
Sl.No. Product Name Brand Position Source: Primary Data
I II III Above table exhibits
the most popular FMCG
1 Shampoo Clinic Plus Head & Pantene brands among rural
Shoulder
households, they are Clinic
2 Toilet Soap Hamam Lux Mysore sandal
Plus , Hamam, Rin ,Ponds
3 Washing soap Rin Power Ariel ,Close-up(tooth paste) ,
4 Washing Powder Surf Power Ariel Pepsodent (tooth brush), Fair
5 Talcum powder Ponds Gokul Cuticura & Lovely, Britannia , 3
sandol Roses , Miranda . Local
6 Hair oil Vatika VVD Aswini brands play an active role in
7 Toothpaste Close up Colgate Vicco products like Washing
8 Tooth Powder Vicco Gopal Colgate Soap/Powder , Nail polish,
9 Tooth Brush Pepsodent Colgate Oral B packaged biscuits , Edible
Oil.. Edible oil is still a
10 Face cream Fair & Fair Ever ----
Lovely commodity market in Rural,
11 Nail polish Eyetex ---- ----
rural people are using
12 Packaged Biscuits Britannia Sunfeast Parle
traditional methods like
13 Tea 3 Roses Chakra gold AVT
Neem stick, Rice bran etc, for
brushing their Teeth. A few
14 Health Drinks Horlicks Boost Complan number of Households are
15 Soft drinks Miranda Pepsi Limca not clear in answering the
16 Edible Oil Gold Ruchi ___ different brand used by
Winner
them. This shows that they
CONCLUSI
The Indian rural ON with its vast size
market and demand base
offers a huge opportunity that MNCs cannot afford to ignore. With 128
million households, the rural population is nearly three times the urban.
Increased education levels found to be the important factor in higher
level of brand penetration, the other factor house type also acts as a
leading indicator in determining brand penetration in rural market. The
above two findings shows clearly about the socio economic status
impact on brand penetration.
Thus, Socio Economic Classification (SEC) is considered as a
best indicator in measuring Brand penetration. The survey results
indicate the high level of mass media penetration in Rural. Media
penetration increases the awareness towards various brands. Creating
Brand awareness is not only the task of the marketer; the other
challenges are product availability, affordability and acceptability.
References
Panda, K T (2004).Building brands in the Indian Market, Exel Books, New Delhi, India
Prahalad, C.K(2004), The Fortune at the Bottom of the pyramid, Eradicating Poverty
Through Profits, Wharton School Publishing.
Randall, Geoffrey, (2003) Branding-A Practical guide to Planning your strategy, Crest
Publishing House, New Delhi, India
National Council of Applied Economic Research, Delhi (NCAER), (2002) The `India Market
Demographic Report 2002.Retrieved from http://ncaer.org.
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