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BUYING BEHAVIOUR OF RURAL CONSUMERS: FMCG PURCHASES IN RURAL AREASShweta Tiwari, Dr. Chetan Joshi
Abstract - The fast-moving consumer goods (FMCG) sector is an important contributor to India’s GDP. Fastmoving consumer goods (FMCGs) constitute a large part of consumers’
budget in all countries. Thisstudy is aimed at to rural consumer’s behavior and attitude towards the branded in FMCG products.Products which have a quick turnover, and relatively low cost are known as Fast Moving ConsumerGoods (FMCG). The FMCG products are those that get replaced within a year. The FMCG generallyinclude a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics,tooth cleaning products, shaving products and detergents, as well as other non-durables such asglassware, bulbs, batteries, paper products, and plastic goods. FMCG may also includepharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolatebars. A subset of FMCGs is Fast Moving Consumer Electronics which include innovative electronicproducts such as mobile phones, MP3 players, digital cameras, GPS systems and laptops.
In the past years, due to the lack of facilities available in the rural areas, the rural consumer headed towards nearby city to buy branded products and services. But today, the marketers have realized the potential in the rural market, which has become critical for them, be it for a branded shampoo or an automobile. The present study focuses on identifying the role of various advertisements in purchase of the product by rural consumer.
Keywords: Rural Consumer Behaviour, FMCG Products, Rural markets, Advertisement, FMCG in rural markets.
1 INTRODUCTION
India’s FMCG sector is the fourth largest sector in the economy and creates employment formore than three million people in downstream activities. The FMCGs sector is a verydynamic sector in India. A major goal is to satisfy the needs and wants of rural consumer andtheir target markets more effectively and efficiently. Fast Moving Consumer Goods (FMCG)-alternatively known as consumer- packaged goods (CPG) are products that are soldquickly and generally consumed at a regular basis, as opposed to durable goods such askitchen appliances that are replaced over a period of years. The FMCG industry primarily engages in the production, distribution and marketing operations of CPG. FMCG product categories comprise of food and dairy products, pharmaceuticals, consumer electronics, packaged food products, household products, drink and others.
Meanwhile, some commonFMCG include coffee, tea, detergents, tobacco and cigarettes, soaps and others. The bignames in this sector include Sara Lee, Nestle, Reckitt Benckiser, Unilever, Procter &Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi, Mars and others.
In recent years, the fast-moving consumer goods sector (FMCG) is witnessing increased use of salespromotion activities all over the world. This sector is characterized by products having lowunit value and requiring frequent purchases and consumer behaviour reflecting less loyalty, impulse buying, and low involvement on the part of a consumer (Kotler, 2003).
Fast Moving Consumer Goods (FMCGs) have attracted the Indian villagers. When the urban demands of the goods were getting saturated, the manufacturing companies took this development as an opportunity. Large FMCGs companies including multi national companies are planning their own strategies to enter this large and developing rural market. The marketing strategies have to be tailor made to suit rural conditions. Leading companies in India have taken up a developmental approach to nourish this new market. The companies are Hindustan Levers Ltd, Godrej, Procter and Gamble, Nirma, Reckett and Coleman, Karnataka Soaps and Detergents Ltd. HLL has done pioneer work in developing FMCG products for rural market and initiating collaborative
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and innovative strategies. The major ruralsales promotion tools for FMCG products are: free samples, cash rebates or discounts, gifts, contests, prizes, games, product warranties, free trials, sale counter displays, and trade promotion to stimulate wholesalers, retailers, and field workers with gifts and awards. For advertising of FMCGs to be effective in rural India, it is necessary to set the objectives in advance against which achievements can be compared. The methods of analyzing and evaluating progress towards the objectives can be established. One also needs to view the way in which advertising works, and what it can achieve for a given product. The advertising effectiveness of FMCGs is measured in light of sales and communication effects.
The products which are consumer regularly/ frequently by the consumers i.e., day-to-day usable products are known as Fast Moving Consumers.
Products which are sell quickly chief and low cost. The one of the most fastest developing sectors in Indian economy is FMCG industry, it includes most common in the list are packaged food products, toiletries, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high return.
The scopes for the growth of the FMCG industry are high as the per capita consumption of the FMCG products in India is low in comparison to the other developed countries. The manufacturing of the FMCG goods is concentrated in the western and southern belt of the country.
There are other pockets of FMCG manufacturing hubs. Fast Moving Consumer Goods (FMCG) goods are also named as Consumer-Packaged Goods. In urban/ rural areas, this FMCG markets is highly concentrated in these areas, as the high growth in the income of the middle- income group is one of the major factors for the growth of Indian Market.
In FMCGs market Packing is very important factor.
2 REVIEW OF LITERATURE
Gihan Wijesundera (2010) in this article
“Factorsinfluencing the demand of beauty soap among femaleconsumers in the greater Colombo region “Purpose of thisstudy is to explore how the marketing mix & demographicalfactors influence the brand preference & Purchasingbehaviour of beauty soap among the female consumers in thegreater Colombo region.
The results indicated that therewas statistical relationship between price, product,education, occupation and brand preference and there wasno statistical relationship between place, promotion, age,income level, marital status, skin type, social factors, andsubstitute product with the brand preference. Thus, theresearch concludes that the price, product, education &occupation are only having a statistical relationship with thebrand preference of female consumers in the greaterColombo region.
Suresh Bhagwat (2011) in his e- article “FMCG Marketsto contribute in Indian rural Economy perspective in globalera” The study focuses their efforts on empowering the ruralconsumer with the latest trends and technology and teachesthem ways to improve their standard of living.
B. V. N. G. Chandrasekhar (2012) [1] in his study, “ConsumerBuying Behaviour and Brand Loyalty in Rural Markets:FMCG”, aims to study brand loyalty of various brands inrural markets and identity the presence and the importanceof local brands.
Chitra. R (2014) [2] “an empirical study on customerspurchase intention towards branded apparels, “this paperaims to study factors affecting customers” Purchaseintention towards branded apparel. Purchase intention isexplained in terms of general consumer variables (normativeinfluence, consumer confidence) and brand specificvariables (Perceived quality emotional value).
Banumathi and Kalaivani (2006) in their study on “Consumer satisfaction - An important parameter” have found that marketing is an art of attracting the producer and sellers are able to fully satisfy the customers continuously. The consumers are said to be satisfied when the actual results exceed their expectations; otherwise, they are said to
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be dissatisfied. Therefore, “satisfaction isthe felling of pleasure or disappointment resulting from comparing a product’s perceived performance in relation to his /her expectation”.
Chandhok (2006) in his article titled “Rural marketing in India - Precepts for growth” has indicated that the rural market in India is quite fascinating and challenging. It has a large scope for the marketer. Even though these markets have weakness, they also have tremendous opportunities that should be availed by the marketers as markets are created not born. The market so created should be tapped effectively and squeezed. The markets, therefore have to come up with innovative proposals through the villages are involved in getting business from their respective villages.
Nagarajan (2006) in the case study on “Unilever in India - Rural marketing Initiatives” has revealed that seventy percent of the Indian population lives in rural areas. This segment, commonly referred to as the “bottom of the pyramid”, presents a huge opportunity for companies. Hindustan Unilever Ltd. (HUL) considered as one of the best - managed companies in India, has understood the importance of rural marketing. The trigger point came when a local firm Nirma, through its new product formulation, pricing and distribution challenged HUL’s detergent business.
Nirma’s attack from below made HUL to realise its vulnerability as well as to identify a new opportunity. Since then, HUL has launched various initiatives to reach out the rural consumer. It has changed its product formulations and deliveries. It has begun a number of initiatives in terms of widening distribution each through traditional as well as unconventional channels. HUL has also empowered rural women by assisting them in obtaining financial assistance through its project Shakti.
Rajasekar (2002) conducted a study to find the levels of awareness and brand preferences for fairness creams. He revealed that the purchase decisions are highly influenced by the quality of fairness cream and the price. Singh and Yarso (2002) in their study titled
“Consumer behaviour and consumption
pattern of toilet soap in Imphal, Manipur - A micro level study” have remarked that toilet soap produced in India does not give full satisfaction to all sections of consumer particularly in Imphal, Manipur. They, in one or other way, are not satisfied with the price, quality, colour, smell, and size of the product available in the market.
2.1 Objectives of the Study
To study the attitude of consumer behaviour towardspurchase decision towards FMCG.
To find the awareness about the FMCG products.
To understand the overall satisfaction level ofrespondent using FMCG products.
To study the valuable findings and suggestions, conclusion.
3 METHODOLOGY
This study is Conceptual in nature and tries to highlight concept and Literature of buying behaviour of rural consumers:
FMCG purchases in rural areas.
Secondary data has been collected from extensive research through E-library, different available published articles, journals, books, internet, magazines, and seminar papers and the world-wide web.
4 FINDINGS
The findings of the study disclose that the levels of awareness and exposure regarding television advertisements of Toiletries is high among the rural respondents and television advertisements do play a dominant and conspicuous role in their purchase behaviour of toiletries. It can be concluded that effective communication is an important tool to reach out to the rural audience. A rural consumer is brand loyal and understands symbols better. The rural audience has matured enough to understand the communication developed for the urban markets, especially with reference to the toiletries. Television is a valuable and successful communication system for rural masses and, as a result, companies should identify themselves with their advertisements. Advertisements touching the emotions of the rural folks could drive a quantum jump in sales.
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Brand Loyalty provides companiesstrong and competitive weapons to fight with competitors in the market place. The FMCGs sector is a very dynamic sector in India, a major goal is to satisfies their needs and wants of consumer and to target markets more effectively and efficiently. Hence the researcher hopes that the information provided in this study will assist companies in shaping their marketing strategies and better serving their customers.Majority of the respondents are Relatives for their customers know about FMCG products.
Majority of the respondents are Newspaper/Magazine for their FMCG Advertisement.
5 SUGGESTION
Rural consumer’s awareness advertising is very high. Itshould be kept in mind by companies for communication purpose.
Indian domestic companies should enhance theirproduct standard and more effort to increase salesthrough sales promotion methods. These companieshave to create consumer awareness to purchase the domestic products.
Use of televisions and newspapers are more plannersalso should use these media to reach to maximumnumber of viewers (Rural Consumer’s).
Media are liked by customers due to their positivefeatures. These points of high quality of audio, video, clearing of message and cost involved should be takencare of especially in advertising campaign.
Short advertisements on TV and radio, lengthy advertisement should be given in newspapers and magazines.
Brand loyalty is an important factor in FMCGs. It isvery difficult to induce the consumers for brandswitching. Any firm should study these very critically.The quality aspects coupled with competitive price maylead to change of brands.
Quality in FMCG products may be achieved through acquiring training in business development, qualityproduct development, and
marketing externalmonitoring of quality.
6 CONCLUSION
The present study concluded that, successes of manybusinesses depend on their ability to create and retaining therural customers. Companies to sell their products in standardprice with good quality, availability of brands in all storesand is less costly to attracting rural new customers. Brandloyalty provides companies strong and competitive weaponsto fight with competitors in the market place. Theimportance promotional offers, availability of brands isimportant that companies must give it sufficient consideration before them plan and implement their marketing strategies. The FMCGs sector is a very dynamicsector in India. A major goal is to satisfy the needs andwants of rural consumer and their target markets moreeffectively and efficiently. Hence the researcher hopes thatthe information provided in this study will assist companiesin shaping their marketing strategies and better serving theirrural customers.
The researcher concluded this study, successes of many businesses depend on their ability to create their customers and retaining their Consumers. Companies have attained focus to sell their products in standard price with good quality, availability of brands in all stores and are low cost to retain their valuable customers and attracting new customers.
REFERENCES
1. Chandrasekhar (2012) Consumer Buying Behaviour and BrandLoyalty in Rural Markets: FMCG. IOSR Journal ofBusiness and Management (IOSRJBM) ISSN: 2278- 487X 2012; 3(2):127-143.
2. Chitra R.(2014) An empirical study on customers purchaseintention towards branded apparels” Indian Journal ofResearch in Management, Business and Social Sciences(IJRMBSS), ISSN No.2319- 6998, 2014; 2(1):46-49.
3. Suresh Bhagwat. (2011) FMCG Markets to contribute inIndian rural Economy perspective in global era. Halfyearly vision research review research journal. ISSN2250- 169. 2011; I(I).
4. Gihan Wijesundera. (2010) Factors influencing the demand ofbeauty soap among female consumers in the greaterColombo region. ICBI 2010 – University of Kelaniya,Sri Lanka, 2010.
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5. Singh, R., &Yarso, A. S. (2002). Consumer behavior and consumption pattern of toilet soap in Imphal city, Manipur- A micro level study. Indian Journal of Marketing, 32(3-4), 18-23.
6. Bhattacharyya, K. (2007). Rural marketing in India-Problems, prospects and emerging dimensions. Marketing Mastermind the ICFAI University Press, Hyderabad.
7. Chandhok, A. (2006). Rural marketing in India: Prospects for growth. Marketing Mastermind, The ICFAI University Press, Hyderabad.
8. Nagarajan, G. (2006).Unilever in India- Rural marketing initiatives. Marketing Mastermind Magazine. The ICFAI University Press, February, pp. 69-81.
