A RESEARCH PROPOSAL ON “STUDY ON RURAL MARKETING -“WITH SPECIAL EMPHASIS ON CUSTOMER PREFERENCE FOR “HUL” IN RURAL INDIA”

SUBMITTED LATE.SMT.SHARDABEN GHANSHYAMBHAI MANAGEMENT STUDIES. DHARMAJ. PATEL INSTITUTE TO: OF

AFFILIATED TO GUJARAT TECHNOLOGICAL UNIVERSITY. (BATCH: 2011-2013)

GUIDED BY: Miss. Shweta Patel Enroll No:-117330592008

PREPARED BY: Bhavsar Nirmal M.

ACKNOWLEDGEMENTS
It is a pleasure indeed to have this opportunity to release the feeling of gratitude imprisoned in my heart to a number of helping hands who not only helped me in shaping up this project work but making it a successful one. I am thankful to the Shweta Patel and Priyanka Madam whom I always looked upon for inspiration in difficult times during the project work and who provided me with a congenial and free working environment to shape this project work.

I thank my friends, my Family members and my relatives for bearing me and supporting me throughout the research. They were the source of inspiration whenever I needed. It was just because of their divine love and support that made me work properly and complete my objectives in a splendid manner.

Last but not the least my thanks to all my colleagues and the staff of rural relation Khambhat & Anand for their inspiration and support.

Yours faithfully Nirmal Bhavsar

A. customer relationship management. Ahmadabad and which is adopted by Late Smt..B. I feel great pleasure to submit my report on Student Comprehensive Project conducted by Gujarat Technological University. selection. . The practical training at the level of 4th semester of MBA is helpful to develop the student ability and to get familiarize with the corporate environment. Dharmaj Practical training will also be helpful to us in future to get jobs in reputed company to make our bright future programme. advertising of our product in the market. Human Recourse Management provide knowledge about how to recruitment. direct marketing etc. working capital structure. Marketing Management provide knowledge about how to launch. Shardaben Ghanshyambhai Patel Institute of management Studies.PREFACE M. training and development. Theoretical studies give enough back ground for career development but practical training has equal contribution in the development of career. Practical training related to the different areas like Financial Management provide efficient knowledge about ratio analysis. motivate people etc. leverage analysis. means Master of Business Administration is an intensive two year full time master degree programme. At this stage we are realizing that “EXPERIANCE IS THE BEST TEACHER” is a true wording. cost of capital etc. personnel selling.

information about the presence of the rival of HUL and all the other . to maintain their market.EXECUTIVE SUMMARY The main objective of the project is to get the full knowledge of the products of the HUL and what are they doing to get the customer loyalty. This is also to find the preferences of customer and there market knowledge and product information.

so they also taking into consideration the needs and wants of the people there. In country like India. The rural market has a grip of strong country shops.options they have in the market. Brand Management is the order of the day. where the 70% of the people live in rural area. The experience of agricultural input industry can act as a guideline for the marketing efforts of consumer durable and non-durable companies. Infect the opinion leaders are the most influencing part of promotion strategy of rural promotion efforts. To attain a safe platform in Brand activation. the aspect of brand activation at ATL (above the level) and BTL (below the level) makes a vital contribution for the marketing journey. The low rate finance availability has also increased the affordability of purchasing the costly products by the rural people. In order to launch products and develop advertising for rural market there is a need to understand both the rural context and also the consumer very well. Due to the social and backward condition the personal selling efforts have a challenging role to play in this regard. The companies are trying to trigger growth in rural areas. There is a wide spread difference in the standard of living between urban and rural India. Promotion of brands in rural markets requires the special measures. They are identifying the fact that rural people are now in the better position with disposable income. which affect the sale of various products in rural market. so they are studying the buying patterns of t h e m also. The word of mouth is an important message carrier in rural areas. the rural market holds a lot of marketing potential. In the process of branding. Marketer should understand the price sensitivity of a consumer in a rural area. The strong Indian brands have strong brand equity. Branding correlates with Image Building in an organization vis-à-vis its products produced/services rendered. They are also studying the consumption habits of the rural people. What are t h e techniques they adopt to know about the preferences and changing needs of the customer? HUL are also looking to tap the market in rural sector. Like most of them are daily wage earners or s m a l l peasants. Relevance of Mass Media is also a very important factor. This research paper will be therefore an attempt to study the brand promotion in the rural market and the overall potential of the rural market. the Marketing Managers pay attention and focus in a diligent manner on the value based credentials of the users in the . consumer demand-pull and efficient and dedicated dealer network which have been created over a period of time. In the vicinity of today's Marketing scenario along with advancement in technology.

The studies suggest that there has been extra-ordinary growth in this sector and the trend is likely to continue over a period of time as the market is in the very initial stages of the life cycle.fledged dedicated team with multi focused thoughts only can do the needful for the successful brand management. A full. Good branding strikes a chord with viewers help them relate with the product and reflect their aspirations. .Marketing arena.

No Topics Page No Abstract .Sr.

The Bottom of the pyramid marketing strategies and the 4 A's model of Availability. The word of mouth is an important message carrier in rural areas. where the 70% of the people live in rural area. Affordability. There is a wide spread difference in the standard of living between urban and rural India. Due to the social and backward condition the personal selling efforts have a challenging role to play in this regard. Promotion of brands in rural markets requires the special measures. Successful cases like the Grameen Phone in Bangladesh and Smart Communications Inc in Philippines also provide us with some guidelines to tackling the issue. The characteristics of the market in terms of low and spread out population and limited purchasing power make it a difficult market to capture. Relevance of Mass Media is also a very important factor. The experience of agricultural input industry can act as a guideline for the marketing efforts of consumer durable and non-durable companies. services in rural areas. Acceptability and Awareness provide us with a means of developing appropriate strategies to tackle the marketing issues for marketing . . the rural market holds a lot of marketing potential.In country like India. In order to launch products and develop advertising for rural market there is a need to understand both the rural context and also the consumer very well. Infect the opinion leaders are the most influencing part of promotion strategy of rural promotion efforts. Rural markets are an important and growing market for most products and services including telecom.

India lives in her seven hundred thousand .Chapter -1 Introduction India s way is not Europe s. India is not Calcutta and Bombay.

targeting and positioning etc... but their integration with the Indian ethos and culture. Consumer behavior process. Customer relationship management. Segmentation.villages.. it will soon outstrip the urban market.....000 and have at least 75 per cent male working population in outside the primary sector and have a population density of at least 400 per square kilometer... At the current of growth .."All the places that fall within the administrative limits of a municipal corporation. let's look at the definition of urban and rural India... Chairman ..Mahatma Gandhi.. cantonment board etc or have a population of at least 5.. 4 Ps of the marketing mix. municipality... The rural market is no longer sleeping but we are .. Rural India. on the other hand. often with minimal success.. The Census defined urban India as .. Rural market India lives in her villages . Concepts like Brand identity. Reason lies not in the fault of such concepts. Godrej Group The rural consumers is discerning and the rural market is vibrant ... Before gamboling into issues like where the Indian rural market stands and the opportunities for corporates to explore there. As described by Adi Godrej. comprises all places that are not urban!" . have often been lifted straight from the marketing intelligentsia abroad and adopted in Indian conditions. 1926 Marketing in developing countries like India have often been borrowed from the western world.

About 70% of bicycles. fertilizers and pesticides. There are states like U. More than 50%of the national income is generated in rural India and there are opportunities to market modern goods and services in rural areas and also market agricultural products in urban areas. The general impression is that the rural markets have potential only for agricultural inputs like seeds. washing machines. . refrigerators.P. Bihar. mechanical watches and radios and about 60%of batteries. cattle feed and agricultural machinery. M. At the same time the sales of color television. face cream.In our country over 70%of the total population live in villages. Rajasthan and Orissa where rural population varies from 8 to 9 percent. Infact it has been estimated that the rural markets are growing at fives times the rate of urban markets. Agriculture and agriculture related activities contribute to about 75%of the income in rural areas. sewing machine and table fans are sold in rural India. mosquito repellent and tooth paste are very low and there is tremendous potential for such products in rural markets.P. shampoos.

8 per cent in the number of households. which use at least one FMCG product. In others. given the fact that nearly 70 per cent of the country„s population lives in villages. categories such as liquid shampoos have grown from 68 per cent in 2004 to 83 per cent in 2007.6 crore in 2004 to 14. The estimated number of households that are using FMCG products in rural India have grown from 13. the penetration levels have remained stagnant over the past three years.Rural market for FMCG on upswing . A study by market research firm IMRB International shows that while the monthly consumption categories comprising detergents and toilet soaps have remained largely stagnant with a 92 per cent penetration.3 crore in 2007. For some FMCG categories. the growth has been faster.369 crore rural market in the country registered a growth rate of 17 per cent in the first ten months this year.on-year growth of 1. . FMCG companies are trying to tap the rural market with more vigor. from toothpowder to toothpaste or from unbranded to branded products. 2007 Fast moving consumer goods (FMCG) companies can rejoice as the Rs 27.By Business Standard Ruchita Saxena / Mumbai December 27. Moving to higher-value products seems to have happened across categories. About 34 per cent of the off take for FMCG products came from rural areas. This growth was achieved on an average year.

“ he said. Punjab and Maharashtra to help them adopt sustainable agricultural practices. fruits and other vegetables both for India and other Unilever markets. Speaking about Pureit. We have been pioneers in developing rural markets through affordable brands and an unparalleled distribution reach. Mr Manwani spoke about how HUL is bringing alive the spirit of the Unilever Sustainable Living Plan to holistically contribute to the social.HUL’s association with rural India Mr Manwani spoke about the importance of rural India for Hindustan Unilever. Mr Manwani spoke about how it created income generating opportunities for 45.000 rural impoverished women and has also helped to increase the rural distribution of the Company. “We have initiated work to encourage the adoption of sustainable farming practices by our suppliers of tea. Mr Manwani referred to the launch of Pureit sachet and how it would help in a big way to make safe drinking water accessible & affordable to millions of consumers in India. He spoke about how the company was working with small holder tomato farmers in Karnataka. . “More than 40% of our products are consumed in the fast growing markets of rural India.” he said.” he said. Referring to Project Shakti. economic and environmental agenda with a significant impact on rural India. “Project Shakti is an excellent example of „doing well by doing good‟.

HUL Product line and its Segmentation in rural market Product line Brands HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps. tea. Taaza. detergents and shampoos amongst others with over 700 million Indian consumers using its products. with six brands featuring in the top 15 list. The company also happens to have the highest number of brands in this list. Red Label) tea Kissan squashes. Its brands include: Food brands:         Annapurna salt and atta Bru coffee Brooke Bond (3 Roses. The company has a distribution channel of 6. Seventeen of HUL‟s brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2011).ketchups. Taj Mahal. juices and jams Lipton tea Knorr soups & meal makers and soupy noodles Kwality Wall's frozen dessert Modern Bread.3 million outlets and owns 35 major Indian brands. ready to eat chapattis and other bakery items Home Care Brands       ActiveWheel detergent Cif Cream Cleaner Comfort fabric softeners Domex disinfectant/toilet cleaner Rin detergents and bleach Sunlight detergent and colour care .

   Surf Excel detergent and gentle wash Vim dishwash Magic – Water Saver Personal Care Brands Aviance Beauty Solutions                      Axe deodorant and aftershaving lotion and soap LEVER Ayush Therapy ayurvedic health care and personal care products Breeze beauty soap Clear anti-dandruff hair products Clinic Plus shampoo and oil Close Up toothpaste Dove bar & skin cleansing.lotions & Creams and antiperspirant deodorants Denim shaving products Fair & Lovely . skin care lotions Water Purifier Brand:  Pureit Water Purifier . hair care range. body wash and deodorant Pears soap Pepsodent toothpaste Pond's talcs and creams Rexona soap Sunsilk shampoo Sure anti-perspirant Vaseline petroleum jelly.fairness products Hamam Lakmé beauty products and salons Lifebuoy soaps and handwash range Liril 2000 soap Lux soap.

Pepsodent Mouthwashes.  The customer of HUL products is every one. Kissan „sweet and spicy‟ ketchup. All product are available for women‟s needs & desires  So. HUL is targeting as a whole for its product. HUL‟s products are now in 2 hands out of 3 hands of India.The latest launches for Hindustan Unilever include: Axe soap bar. youth to old age as well. air and Lovely advanced multi vitamin. Kwality Walls Selection Range and Pureit Advanced with Double Protection. . Lakme Perfect Radiance range. Segmentation Of HUL  HUL is the largest FMCG company.  Women are fond of the product of HUL.Pepsodent Expert protection range. New Vanilla Supreme from Kwality Walls. Vaseline moisture therapy Heel Cream. Starting with child.

Literature Review .

Britannia with its low priced Tiger brand biscuits has become some of the success story in rural marketing. . The model is of the stolid Anglo-Dutch conglomerate Unilever Group.5%in the industrial sector. Coco Cola s 200mlbottle. Factors such as village psyche.compared with 8. Rural Indian market and the marketing strategy have become the latest marketing buzzword for most of the FMCG majors.suggested that the lifestyle of rural consumers is changing. Its sachets of detergent and shampoo are in great demand in Indian villages. 1. She added the strategies of different FMCG companies for capturing rural market like Titan s Sonata watches.Basu Purba (2004). which has enjoyed a century-long presence in India through its subsidiary Hindustan Lever Ltd. This implies a huge market potentiality for the marketer to meet up increasing demand. It was Hindustan Lever that several years ago popularized the idea of selling its products in tiny packages. the same is expected to grow from 65 million to 79 million. Thus. In some sense we can say that rural market is future of FMCG. 2. She takes into consideration the study of National Council for Applied Economic Research (NCAER).suggested that .In urban India.ReviewofLiterature Rural market is one of the best opportunities for the FMCG sector. the absolute size of rural India is expected to be double that of urban India. strong distribution network and market awareness are few prerequisites for making a dent in the rural markets. different strategies of HUL and Marico etc.the economic growth in India's agricultural sector in last year was over 10%.Tognatta Pradeep (2003).According to the NCAER projections. the number of middle and highincome households in rural area is expected to grow from 140 million to 190 million by 2007.

MA.M. Asha (MBA) Prime Minister Dr. food. thus claiming 6. There is much that modern science and technology can do to realise this vision. industrial and services economy co. Saiganesh(MBA. S. Rajendhiran(MBA. insurance companies and other sectors besides hundred per cent of agri-input products such as seeds. where people can live in well-equipped villages and commute easily to work. be it on the farm or in the non-farm economy. Employment opportunities have to be created in rural areas. Manmohan Singh recently talked about his vision for rural India: "My vision of rural India is of a modern agrarian. P.3. Rural incomes have to be increased. automobiles. construction. N.Phil)/ Ms. Dr. PhD)/ Mr.existing side by side. electrical. pesticides and farm machinery. Rural infrastructure has to be improved." 'Go rural' is the slogan of marketing gurus after analyzing the socioeconomic changes in villages. fertilizers. Rural health and education needs have to be met. . Although a lot is spoken about the immense potential of the unexplored rural market. advertisers and companies find it easier to vie for a share the already dividend urban pie. The Rural population is nearly three times the urban.6 per cent of the total share. So clearly there seems to be a long way ahead. The Indian rural market today accounts for only about Rs 8 billion of the total ad pie of Rs 120 billion. electronics. so that Rural consumers have become the prime target market for consumer durable and non-durable products. banks.

RESEARCH PROBLEM AND ITS BACKGROUND .

The research problem is that of study of rural market– with special emphasis on Customer preference for HUL in rural India through Rural relation. Rasana. Who helps them for provide information about product with helps of market research? and helps in companies as end to end users for establish in rural market.RESEARCH PROBLEM HUL is facing the problem rather challenges from ✔ Large number of players in the market ✔ tinuous changes in the taste and preferences of the customers such problems were identified as Research Problems and the objective statement was formed on its basis. and hutch. Research to find out following ✔ Acceptability among the customers ✔ motional analysis Rural relation is an organization which is working in rural market for various companies. . HLL. Rural relation building relationships in rural India with key influencers. And understanding the process of rural marketing and the underlying problems within and measures taken thereof. Rural relation worked on project for leading companies like ICICI prudential.

50 percent of 2 million BSNL mobile connections. 59 percent of cigarettes. 59 percent of consumer durables are sold in rural India. Reality.Statistical Glance A glance at the following statistics will help to get a fair idea of the consumers in Rural India: 1. People belonging to deferent social classes stay in concentric area. Various tires are present depending on the income like big land lords. 7. Rural markets. 3. There are several difficulties confronting the effort to fully explore rural markets. 46 percent of soft drinks. . have untapped potential. The concept of rural markets in India. like China. 4. So the available product suffice the consumption for everyone. as part of any economy. 53 percent of FMCG products. as also in several other countries. 49 percent of motorcycles. Myth-1: Indian rural market is a homogeneous mass.it‟s a heterogeneous mass. 6. including understanding the dynamics of the rural markets and strategies to supply and satisfy the rural consumers. is still in evolving shape. 2. 5. 18 million TV Sets. and the sector poses a variety of challenges. Traders small farmers: labor artisans.

50. Myth-3: Individual decides about the purchases. Basic awareness about the product brand has to be there in market. Purchase processinfluencer decider and buyer. Reality.95% compared to 10. .decision making process is collective. Marketers must address brand message at all levels. Reality. the disposable income is slightly higher in rural market.74%in urban India between 1970-71 and 1993-94. This can be done by putting small advertising sheets at the mandis and where the regular mass meets regularly. One who can pay all its different. Rural youth bring brand knowledge to Households (HH).number of middle class HH”s people(annual income Rs 50.Rural income CAGR was10.000-2.Myth-2: disposable income is low.000)for rural sector is 27000000 compared to urban sector 29400000.

Research Methodology .

newspaper. distributors & suppliers of the company.Primary data & Secondary data Primary data has been collected through personal contact. For this purpose both Questionnaire and one-on-one interview was considered with the consumers. company literature and Websites. shop Owners. . Secondary data has collected from magazines.

OBJECTIVES .

To study the determinants of specification factors which decide the success of rural promotional strategy? 3)To evaluatethe effectsofadoptingthespecific brand ambassadors in the rural marketing context. 1) To analyze the present promotion strategy of rural brands(HUL) in rural markets. . To find the growth of rural market over a period of 5 yrs. a. b. a. . To find out the role of promotion in rural sales. b. 2) To measure the success of rural marketing campaign of the brands(HUL)interms of consumer appreciation. 4) To analyze the market opportunity and potential for existing and newentrants in the rural market. And make people more brand loyal. To find out the promotional strategies of different players in the market.PRIMARY OBJECTIVE Customer preference and brand relationship for FMCG product (HUL) in rural India. To find the behavioral changes in the rural consumers. To study the modes of communications used and their effectiveness. c. a.

. Not. The basic objective of this project is as mentioned above to find ways so that HUL remain market leader by considering all the needs & wants and fulfilling their demand. It has products for child. HUL has a wide range of product in FMCG sector. male & female. customers have become smart. There is large no. Now. They are frequently used and bought by the customers. So. they have great knowledge of market. only product but it has to look upon the services and feedback from customers also. It should do something to give after sales service and collect feedback from the Customers. So it has to differentiate its products taking into account the needs and demands of all the sectors of the society. young & adult. etc.The main objective of this project is to find. of players in the market. they are looking for the product which is providing something extra. is adapting to be market leader and to differentiate itself from its competitors. What is the steps company is utilizing to find current trend in the market? Most of the product of HUL comes in the category of convenience products. who are supplying similar product to the customers. covering almost every needs and wants of the customers. what are the steps Hindustan Unilever Ltd. product and suppliers.

B) Research Tools:  Questionnaire: From the above theories and preference of consumer towards brand of HUL in rural areas and the perception towards brand of HUL. as per requirement I will develop questionnaire that contain different questions for checking out behavior aspect of consumer in rural areas .  Sampling Size: Here I take the sample size of 100 investors who do the transaction in share market.  Sampling Techiqunies: The sampling techiqunies of this study is Random Sampling. C) Sampling Plan:  Target Sample: The person who is user of HUL product or Like to have an HUL brand product is target sample.A) Research Design: Research design of this study is Descriptive and Analytical . .