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Executive Summary

1.Executive Summary
In India the rural market are coming up a big way and growing
twice as fast as urban. There are as many and appose middle income
and above and appose household in rural area. The share of FMCG
products in rural market is 53% durable boats of 59% market share.
The number middle and high income household in rural India is
expected to grow from 80 million to 111 million by 2012.
In urban India, the same is expected to grow from 46 million to
59 million. Thus the absolute size of rural India is expected to be
double that of urban India.

Rural Marketing Feature


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Large and scattered market.

It consist of over 63 crore consumer from 5,70,000 villages


plead through out of country.

Major income from agriculture.

Nearly 60% of rural income agriculture.

The rural consumer values old customer and traditional. They


do not prefer changes.

CavinKare Pvt. Ltd. Products Chik Shampoo get success in


state like Karnataka, Andhra pradesh, and Tamil nadu but not in
Maharashtra. People belongs to rural region are unaware about
branding and little about quality. Targeting that customer (rural)
increases (Chik Shampoo) business in Gondia district.How rural
consumer thinks, feel about product shampoo. Psychology of
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consumer

how

influence

by

culture,

family,

income,

media etc.
Consumer motivation and decision making process.

Keeping all these points in view the researcher formulae a


questionnaire containing 13 questions both close and open ended
and made a product survey by selecting consumer randomly in all
region of Gonida District.
Sampling size of 10 retailers taken for research. This survey
report is done from 27th Aug to 27th Sep 2014.
The main object for research is to find the all promotional
strategy adopted by Chik Shampoo for rural areas. Corresponding to
sachet at 50 paisa, free sachet, promotional strategy, retailing and
marketing strategy.
The mode of purchase Chik Shampoo according to sex,
unawareness, quality, smell etc
The general problem associate with the Chik Shampoo in rural
consumer. The data is collected through both secondary and primary
method (feedback of retailer through personal interview ) and then
data is analyzed and interpreted on various scales and after that
conclusion are drawn.

Introduction

2 Introduction
Introduction To Rural Marketing
According to Prof. Ramakrishna Y, Rural marketing is the
process of developing, pricing, promoting, distributing rural specific
goods and service, leading to exchange between urban and rural
markets, which satisfies consumer demand and also achieves
organizational objectives. The Indian market with its vast size and
demand base offers great opportunities to marketers. Two- thirds of
countries consumer live in rural areas and most half of the national
income is generated here. Agriculture and agriculture related actives
contribute to about 75% of the income in rural areas. The general
impression is that the rural market have potential only for
agricultural inputs like seeds, fertilizers and pesticides, cattle feed
and agricultural machinery. 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. Infact it has been estimated
that the rural markets are growing at five times the rate of urban
markets. About 70% of bicycles, mechanical watches and radios and
about 60% of batteries, sewing machine and table fans are sold in
rural areas. At the same time the sales of colour television, washing
machines, refrigerators, shampoos, face cream, mosquito repellent
and tooth paste are very low and there is tremendous potential for
such products in rural markets while rural markets market within a
short period. This is due to low literacy, low income, seasonal
demand

and

problems

with
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regards

to

transportation,

communication and distribution channel. Further there are need


different groups based religion, cast, education, income and age.
There is need to understand the rural markets in terms of buyer
behavior, attitudes, beliefs and aspirations of people.

Rural Marketing Challenges


Underdeveloped people.
o Vast majorities of the rural people are tradition bound,
and believe in old customs, traditions and habits.
o Lack of communication facilities.
o Physical

communication

of

the

villages

is

highly

expensive. Eventoday most villages in eastern parts of


the country are inaccessible during the monsoon.
o Many languages and Dialects- The number of languages
in dialects varies widely from state to state, region to
region and probably from district to district. The massage
has to be delivered in local language and dialects.
Low capita income.
Different way of thinking.
Low level of literacy.
The kind of choices of brands thats an urban customers
enjoys is different from the choice available to the rural
consumer.
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Shampoo In Market
The word shampoo is derived from the Hindi word Champi.
Remember Johnny Walkers famous song Meri jaan, Meri jaan,
Sunday ke Sunday, Tel malish, Champi Tel malish

TG for Shampoo
Hair shampoo and conditioner are targeted at
Upper middle class
Now, also middle class and house wives.
Upper class rural consumer.
Teenier They are the major segment

Types Of Shampoo
Shampoo market segmented on benefits platform
Cosmetic (shine, health,strength)
Anti-dandruff
Herbal

Shampoo Market Size In India


Size of shampoo market 930 cr.
Anti-dandruff shampoo -20% and above
Sachet sales- 70% of above

Shampoo Awareness In India


Urban area 90%, accounting for 80% of shampoo sold in the country.
Rural area 80%, accounting for 20% of shampoo sold.
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Shampoo Penetration In India


All India shampoo 14%
-Urban- 40%
-Rural -10%

Growth In Shampoo Market


Average growth over the last few years >20%
Expected average growth over the next few years- 20%.

Company Profile

Introduction To CavinKare

In 1983 with a single product, CavinKare started out of small


paternarship firm Chik India by C.K. Ranganathan. Chik India, which
was reanassmed as Beauty cosmetic in 1990. In 1998 the company
was renamed as CavinKare Pvt.Ltd. (CKPL)

Company Profile

Mr. C.K. Ranganathan, CMD-Cavin Kare Pvt.Ltd.


The reson behind the name is Cavin means Beauty in Tamil and Care
is spelt as Kare. The name also special one as it denotes the initials C
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and K of Mr. Ranganathan.


The company offers quality personal care ( hair care, skin care, home
care ) and food product.
The company, which primarily relied on contract manufacturing for
many years has now set up its own world class plant at Haridwar to
cater to the demand of both domestic and international market.
The company has employee strength of 576, an all India network of
1300 stockiest catering about 25 lakh outlets nationally.
CavinKare has touched a turnover of 5000 million INR in 2006-7.

Product Range
Personal Care
Hare Care
Chik Shampoo
Nyle Herbal Shampoo
Meera Badam Shampoo
Indica Hair Colorant

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Product Range
Personal Care
Ethnic Care
Meera Hair Wash Powder
Karthika Hair Wash Powder
Meera Harbal Hair Oil

Product Range
Personal Care
Skin Care
Fairever
Spinz Talc
Spinz Deodorants
Nyle Cold cream and location

Product Range
Home Care
Tex

Product Range
Food Division
Ruchi Pickles
Chinni&apos Pickles
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Chinni&apos Masla
Chinni&apos Vermicelli
Ruchi Gulab Jamun mix

CavinKare Pvt. Ltd. Won ability awards for 5 consecutive years


Ability Awards - 2007
Ability Awards - 2006
Ability Awards - 2005
Ability Awards - 2004
Ability Awards 2003

Competitive Analysis
Major Competitor
HUL
P& G
Dabur
Himalaya health care
Colgate Palmolive
The

company

has

six

major

brand

Fairever,

Chik,

Nyle,

Meera,Indica and Spinz.


While its shampoo brand (Chik and Nyle) contribute 50 percent to
the company & appos turnover.
The Fairever cream contribute 30 per cent
The balance is from Spinz (deodorant,perfume) Indica hair dye and
other products.
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Market Share
Chik shampoo with a 21.4 per cent share is the second largest selling
shampoo in the 1,200- crore ( Rs 12 billion) shampoo market while
its other brand nyle has 4.6 per cent share.
It has a 9 per cent share in the Rs. 750- crore (Rs. 7.50 billion)
fairness cream market with the Fairever brand.
Other like Meera hair wash Nyle moisturizing lotion have national
shares of 23.4 per cent, respectively.
But they are the largest brand in rural Uttar Pradesh, Andha
Pradesh,etc.

Chik shampoo market share


(Urban + Rural Volume )
All India

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Journey of CavinKare

C.K.

Ranganathan,

chairman

and

managing

director

of

CavinKare, has shown the word it is possible to beat the


multinationls even in the most difficult market of fast moving
consumer goods.
Ranganathans journey, which started from a small town of
Cuddalore in Tamil Nadu, has been an amazing one. A business
which started with only with Rs 15,000 is now Rs 500 crore ( Rs
5 billion ).
He learnt the first entrepreneurial lessons from his father,
Chinni Krishnan, who started a small-scale pharmaceutical
packaging

unit

before

moving

on

to

manufacture

pharmaceutical products and cosmetics.


His father his inspiration,
His father, Chinni Krishnan, an agriculturist, was also into
pharmaceutical business. As he was poor in academics, his
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father wanted to either do agriculture or start a business.


His siblings were good in studiestwo of them became doctors
and another a lawyer. He was odd one out. While his siblings
studied in English medium school, he was put in Tamil medium
school. He used to suffer from an inferiority complex because
of his poor academic record.

The origin of the concept of sachets


His father died as he entered college. He had come out with
the sachet concept a couple of years prior to his demise. He
felt liquid can be packed in sachet as well. When talcum
powder was sold only in tin containers, he was the one who
sold it in 100 gm., 50 gm. and 20 gm. packs.
Selling things in sachets was his motto as he said, this is going
to be the product of the future. But his father could not market
the concept well. He moved from one innovation to another
but never through of marketing strategies. He was a great
innovator, but a poor marketer.

Joining the family business


After his fathers death his brothers took charge of the family
business. In1982, when he joined his brothers business after
his studied, his brother launched velvette shampoo. Within
eight to nine months, he left the business because his ideas
clashed with his brothers.
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He was in the manufacturing unit, he did not know anything


about marketing or finance. But, his inferiority complex
notwithstanding, he was somehow confident of doing business
better.
Starting with his business with Rs 15,000
He had left his brothers saying that he did not want any stake
in the property or business. That was a defining movement for
him. He had saved Rs 15,000 from his salary and that was all.
Yet he was confident of achieving success. He did not fill
anything about riding a bicycle after having got used to cars.
For a week, he could not make up his mind as to what business
to do. He knew only two things, making shampoo and rearing
pets. He did not want to venture into the business as it would
initiate a fight with his brothers.
However, he decided to do the same later as it would only
make shampoo.
He rented a house-cum-office for Rs 250 a month against an
advance of Rs 1,000. He took another place for the factory for
a rent of Rs 300 a month and against an advance of Rs 1,200.
He brought a shampoo-packing machine for Rs 3,000.

How Chik Shampoo was born


He named it Chik Shampoo after his father. The product did not
succeed immediately, they learnt many things during the
process. In first months, they could sell 20,000 sachets and
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from the second year, they started making profits.


He moved Chennai in 1989 but their manufacture unit
continued to be Cuddalore. It took his two years to get the first
loan because banks asked for collateral. He did not have any.
But one particular bank gave him a loan of Rs 25,000 which we
rotated and later upgraded to Rs 400,000, Rs 15 lakh (1.5
million), etc.
Strategies that made Chik Shampoo no. 1 in south India
When Chik entered the market, Valvette shampoo sachet was
being marketed aggressively by Godrej. But a scheme became
extremely successful they exchanged five sachet of any
shampoo for a Chik Shampoo sachet, free.
Later, they altered the scheme they started giving a one free
Chik shampoo sachet in lieu of five Chik shampoo, sachets
only. Soon, cunsumers started asking for a Chik sachets only.
The sales went up from Rs 35,000 to Rs 12 lakh (1.2 million) a
month.
When they introduce the jasmine and rose fragrances, their
sales went up 30 lakh (Rs 3 million ) per month and actor
Amala as their model, sales rose to Rs 1 crore ( R10 million ) a
month! Each idea rewards by customers. There has been no
looking back since then.

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Problems

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4 Problems
Following are the problems have been seen in rural markets.

Low literacy rate


It has been estimated that the rural literacy level id36%
compared to 62% in urban areas. Literacy is one of the
important factors in developing awareness and knowledge
about technological changes. As many as 16 major languages
are spoken adding to the complexities in rural communication.

Low standard of living


Low

income,

low

purchasing

power,

overall

social

and

economic backward lead to low standard of living. In general a


rural areas consumer spends less on non-food items.

Occupation pattern
Agriculture and related actives continue to be the main
occupation for majority of the rural population. Land is the
major source of income for about 77% of the population.
Others are engaged in business (10%), non-agriculture labor
(9%), salary earners (2%) and not gainfully employed (2%). It
is evident that rural prosperity depends upon growth and
development of agriculture.

Media reach
The media reach in rural household is low. Statistics indicates
that the reach of print media is 10% followed by TV 31%, Radio
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32% and cinema 36%. Therefore the marketer has to consider


rural specific promotion media and methods to reach the
villagers.

Communication facilities
About 20% of the six lakh villagers are without telephone
facility even today. This includes Rajasthan (17600 villages),
MP (14200 villages), Maharashtra (12000villagers),
Gujarat(7000 villages), and AP, Assam, Orissa about 6000
villages each.

Transportation facilities
About 50% of the markets are not connected by road. Most of
the roads are kachha and become unusable during rainy
season. Many farmers use bullock cart for transporting their
produce from village to the market. This means of transport is
time consuming.

Different Languages
Main problem is local language from district to district and
villages to villages are different.

Awareness
Low awareness or unconsciousness about the branding.

Low use of shampoo


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Most consumer use shampoo only ones or twice in a week. In


many cases these product are used on special occasion such
as weeding parties. Some customers use shampoo only to a
specific problem such as dandruff or when they need to
condition their hair.

Scope of study

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5 Scope of study
The study is limited to Gondia region. In this study the
researcher try to promotional strategy adopted by Chik shampoo for
rural region. Purchasing according to income, sex, age.

Period
The survey report is done four month from 27th Feb to 27th
March.

About The Gondia District


Gondia district was carved out by division of Bhandara district.
Gondia district is situated on North-Eastern side of Maharashtra state
having state borders of Madhya Pradesh and Chattisgarh.
The total population of the District is 1200151. The male and
female population is 598447 and 601704 respectively. The SC and
ST population in the district is 355484 and 309822. The literacy rate
of district is 67.67%.
This is underdeveloped district and most of land is covered
with forest. Paddy is main agriculture produce. The other agriculture
produce in the district are Jawar, Linseed, wheat, tur. The main
profession of people is farming.
There is no large scale industry in the entire district due to this
district is economically backward. There are many rice mills in the
district as paddy is the main agriculture produce here. Gondia city is
popularly known as RICE CITY due to large number of rice mills.
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The district is divided into two subdivisions namely Gondia and


Deori. Each subdivision has 4 talukas, 556 Grampanchayat, 954
revenue villages exist in the district.

The district area is divided into

six legislative assembly constituencies namely Gondia, Tiroda,


Goregaon, Amgaon, Lakhandur and Sakoli. Lakhandur

and Sakoli

constituencies has an area of Gondia and Bhadara district.


Basically district is divided into 8 talukas and 8 Panchayat
Samiti. Only two mucipal corporation are existing at Gondia and
Tiroda.
Wainganga river is the largest and most important river. Rivers
like Bagh, Chulbandh, Gadhavi and Bavanthadi are the tributaries of
river Vainganga.

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Objectives of study

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6. Objectives of study
To study the promotional activity adopted by chik shampoo in
rural area.
To study on distribution network of chik shampoo.
To analyses the market share of chik shampoo with its
competitor.
To study the perception of cunsumer towards chik shampoo in
rural area.

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Research Methodology

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7 Research Methodology
Research is common parlance refer to a search for knowledge.
Research can define as a scientific and systematic research on a
specific research on a specific topics. In fact, research is an art of
scientific investigation. The dictionary meaning of research is as a
careful investigation or inquiry especially through search for the new
facts in any branch of knowledge. Some consider research as
movement from known to unknown. Research may be defined as a
systematic and objective analysis and recording of controlled
observations that may lead to the development of generalization of
principles or theories resulting in prediction and possibly ultimate
control of events.
Methodology is often used in a narrow sense to refer to
methods, technology or tools employed for the collection of data as
well as its processing. This is also used sometime to designate data
collected to arrive at the conclusion. It provides answers to some of
the major questions while research like what must be done, how it
will done, what data will be needed, what data gathering devices will
be employed, how sources of data will be analyses to arrive at the
conclusion.

Method of Data Collection


Collection of data is the first step in statistics. The data
collection process follows the formulation of research design
including the sample plan, data, which can be secondary or primary,
can be collected using variety of tools. Ones the research has been
designed, the next step selection of the source of data.
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There are two sources of data

Primary Source Of The Data


Primary source of the data refer to the data collected directly
from the market place, traders. The data collected from the primary
sources is the most reliable and helps to overcome the limitation of
the secondary data. Primary data involves direct collection of data.

By Direct Interaction
Collection of primary data is by distributing the questionnaire
to the selected samples to obtain their views on research by mail or
through personal interview.

Secondary Source of Data


It includes the information collected from the secondary data
i.e. secondary data has been obtained through the various sources
are as,
Technical

and

trade

journals,

books,

magazines

and

newspaper, report and publication of various associations connected


with business and industry, banks stock exchange etc. public report
and statistics, historical documents and other sources of published
information. Through the direct search on the internet.Major parts of
this

survey

report

is

collected

through

primary

method,

questionnaire and personal interviews were the main techniques


used in this project.
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Secondary method is also used such as trade journals, books,


magazines and newspaper, report, books and internet were the
major sources.

Sampling

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8 Sampling
Sampling is a tool, which helps to know the characteristics of
the universe population by examine only a small part of it. An
integral component of research design is the sampling plan
specifically, it addresses two questions.
Sampling is also called as Random Sampling.SThe selection
of the items is independent of the persons making the study that is
the sampling operation is control objectively so that items will be
chosen strictly at random probability.
The study of the entire universe will be impossible on the
account of limitation of time of money. Hence sampling becomes
investable. A sample is only a portion of the universe of population.
According to YULE, a famous statistician The object of sampling is to
get

maximum

information

about

the

parent

population

with

minimum effort, Properly done sampling produce representative


data of the entire population.
Random sampling method is adopted for carrying out this
project. Random sampling is categorized under probability method.
Random sampling gives every unit of population known and non-zero
chance of being selected in population.

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Survey Report

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9 Survey Report
The research process starts with formulating a questionnaire
containing 13 questions both close and open ended and then a
product survey is made by selecting retailer of Chik shampoo in all
rural region in Gondia. Sample size 17 retailers taken for search.
While

conducting

the

research

process

precautions

were

diversified as possible and all regions were given equal promotion.

The details of surveyed of shampoo are given as.

Name of shampoo in
Rural area

Percentage (out
of 100)

Chik

62

Clinic Plus

18

Head and Shoulder

08

Vatika

12

37

as

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Finding Data Analysis And Interpretation


After collecting the data, it has be processed and analyzed in
accordance with the outline lad dawn for the propose at the time of
developing the research plan the term analysis refers to the
computation of certain measure along with searching for pattern of
relationship at there exist along the data group. In the process of
data analysis, relationship to statistic test of significance to
determine with what validity data can be said to indicate any
conclusions but there are persons who do not like to make difference
between processing and analysis.
Analysis of data in general way involves number of the closing
related operations which are preferred with the purpose of summery
the collected data and organizing these in such a manner that they
answer the research.
Analysis is an attempt to organize and summaries data in
order to increase result, usefulness in such a manner that enables to
relate critical points with the objectives of study. The data after
collection has to be processed an analyzed in accordance with the
outline laid down for the purpose at the time of developing the
research plan. Technically speaking, analyzing implies editing,
coding, classification and tabulation of collected data so that they
are an enable to analysis. The terms analysis refers to the
computation of certain measures along with searching for pattern of
relationship that exist along data groups.
Interpretation refers to task of drawing from the collected facts
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after an analytical and experimental study. In fact, it is a search for


broader meaning of research finding a tasks of interpretation has to
measure aspects that is 1) the effort to establish continuity in
research through linking the result of a given steady with those of
another, 2) the establishment of some explanatory concepts.
Interpretation is concerned with relationship within the collected
data, partially over lapping analysis. Interpretation also extends
beyond of the data of the study to include the result of other
research, theory, and hypothesis. Thus, interpretation is the device
through which factors that seem to explain what has been observed
by researcher in the course of study can be better understood and it
also provides a theoretical conception, which can serve as a guide
for further researches. Interpretation is essential for the simple
reason that the usefulness and utility of research finding lie in proper
interpretation.

Interpretation

leads

to

the

establishment

of

explanatory concepts that can serve as a guide for further research


studies, it opens new avenues of intellectual adventure and
stimulates the quest for more knowledge.

Promotional Strategies In Rural Area


Promotional strategies are all activities that communicate the
merits of the product and persuade target consumers to buy it.
Promotional strategies are need to combine individual methods such
as

advertising,

personal

selling

and

sales

promotion

into

coordinated campaign. In addition promotional strategies must be


adjusted as product move from earlier stages from a latter stage of
its life.
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During survey the following promotional strategies are applied.

Advertising
Through the rural markets offers big attractions to the
marketers, one of the most important questions frequently asked is
how do we reach the large rural population through different media
and method?

It includes press and print, TV, Cinema, Radio and point of purchase
and outdoor advertisement. Reach of formal media is low in rural
households.
Print

18%

TV

27%

Cinema

30%

Radio

37%

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Interpretation From the responses of the respondent TV


advertising, Cinema and Radio advertising is more helpful for
promotion of Chik shampoo.
And therefore the marketer has to consider the following points

Newspaper and Magazines


English newspaper and magazines have negligible circulation
in rural areas. However local language newspapers and magazines
are becoming popular among educated facilities in rural areas.
Examples: Kashish in Gondia.

Television
It has a great impact and large audience has been exposed to
this medium. Chik shampoo has been using TV to communicate with
the rural masses. Regional TV channels have become very popular in
rural region in Gondia region. Doordarshan and DD Direct Plus are
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reaches all parts of Gondia region.

Radio
Radio reaches large populations in rural areas at are relatively
low cost. There are specific programs for farmers like farm and
home/ Krishi Darshan in regional language. The farmers have habits
of listing to regional news/ agriculture news in the morning and the
late evening. The advertisement has to be released during this time
get maximum coverage area in rural region.

Point Of Purchases
Display of hanging, festoons and product packs in the shops
will catch the attention of prospective buyers. However a clutter of
such POP materials of competing companies will not have the desire
effect and is to be avoids.

Direct Mail Advertising


It is a way of passing of information relating to goods or
services for sale, directly to potential customers through the medium
of post. It is a medium employed by the advertiser to bring in
personal touch.

Wall Painting
It is an effective and economical medium for communication in
rural areas, since it stays there for a long time depending upon the
weather conditions. The cost of painting one square feet area is just
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Rs.10. Retailers welcome painting of their shops so that shop will


look better. Walls of farm houses, shops and schools are ideal places
for painting and a company need not have to pay any rent for the
same. Painting to be avoided during election and rainy season. The
matter should be in form of pictures, slogans for catching the
attention of people.

Tree Boards
These are painted boards of about two square feet in
dimensions having the picture or name or slogan of the product
painted on it. The cost of such painted boards is about Rs.80. these
boards are fixed to the trees on both sides of the villages road at a
height of about 10 feet from ground level. These boards attracts the
attention of slow moving like cycle, bullock carts and tractors and
people walking on the roads. Considering the poor condition of roads,
even the buses move at slow speed through village road.

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Personal selling
Group Meeting
Group meeting of rural customers as well as prospects are an
important part of interpersonal media. The company able to pass on
the massage regarding benefits of the product to large number of
customers through such meeting. Group meeting key customer are
conducted by banks, agricultural inputs and machinery companies in
rural areas. The bankers visit an identified village, get the village
people in a common place and explain the various schemes to the
villagers. Such meeting could be organized in prosperous villagers
for promoting benefits of shampoo and disadvantages of soap.

Opinion Leaders
Villagers place more emphasis on the experience of others who
have used a product/brand make purchase decision. Opinion leader
is a person who is considered to be knowledgeable and is consulted
by others and his advice is normally followed. Such opinion leaders
could be big landlords, bank official, panchayath-president, teachers,
extension workers etc.

Melas
Melas are of different types i.e commodity fairs, cattle fairs and
religious fairs and may be held only for a day or may extend over a
week. At that occasion promotional activity should be done.At that
time free sample of shampoo sachet, coupons and importance of
Chik shampoo should be done
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Sales Promotion
Trials
Shampoo getting encouraging trials from rural consumers, but
extremely low penetration levels. Many people had no clue how to
use a shampoo.
To encourage trials, CalvinKare team travelled extensively in rural
packets.
Trials on schoolboys to demonstrate how to lather and wash, comb
hair and show the difference.
We were as thrilled and excited as the volunteers during the
demonstration. This exercise had a significant impact in breaking ice
and made people confortable with the concept.

Impact
We also encourage trial through a consumer scheme, where
anyone could take any 4 empty shampoo sachets to a retailer and
take home a Chik sachet free. Through more risky, this scheme paid
off and more and more people began asking for Chik at their local
retail outlet

Advantages of Sales Promotion


Price Discrimination
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Coupons, special sales events, clearance sales and discount.


(price discrimination are offered in specific villages in the region.)

Effects on Consumer Behavior


Short-term promotions present an opportunity and encourage
dealers to forward buy. This forward buying ensures that retailers
wont to go out of stock. As dealers have more than normal stock.
They think it advisable to advertise in local media, arrange displays
and offers attractive promotion deals to consumers. These action
helps in increasing the store traffic buy 2 dozen shampoo sachet get
2 sachet free.

Distribution Channel Strategies


The channel members consist of wholesalers and retailer who
are middlemen in distribution and they perform all marketing
functions. These middlemen facilitates of exchange of goods, create
time, place and possession utilities. Therefore channels are useful to
producers as well as consumers. Even if a company has a product
that meets the requirements, of rural consumers, it will succeed only
if it is made available at the right place as and when required by the
consumer.

47

Que- 2 Tick the following shampoo provided to rural areas ?

Chik Shampoo

50%

Clinic Plus

20%

Head & Shoulder

10%

Vatika

20%
48

Interpretation From the responses of the respondent it is clear


that 50% of retailer provide the Chik Shampoo to rural areas.

Que- 3 Do you provide the Chik shampoo to rural aras ?

Yes
No

70%
30%

Interpretation From the responses of the respondent it is found


49

that 70% of retailer provided the Chik shampoo to rural areas due to
maximum demand of customers in rural areas.

Key Factors In Rural Purchases

Factors influencing purchase of shampoo in market

Looking at the Wrapper

Retailer recommends

Looking at the price

Logo identification

50

% of Respondent

66
28

Wrapper

66%

Retailer Recommends

28%

Price

4%

Logo Identification

2%

Interpretation From the responses of the respondent Wrapper


factor influencing purchase of shampoo in rural market.

Que 4 What type of promotional strategy are used by company to


provide Chik shampoo for rural areas ?

51

Advertising

81%

Sales Promotion

14%

Personal Selling

3%

Publicity

2%

Interpretation- From the responses of the respondent it is found


that 81% respondent told Advertising is most effective promotional
strategy

52

Que- 6 Are you satisfied with the promotional activities adopted by


CavinKare for rural areas ?

Yes

70%

No

30%

Interpretation After surveying of 10 retailer it is clear that 70%


retailers are satisfied with promotional activity adopted by CavinKare
for rural area.

53

Que- 8 Do you face any kind of problem while convincing your


customer in rural areas ?

Yes

80%

No

20%

Interpretation After survey of all retailer in Gondia rural it is


found that 80% of retailers face problem while convincing customer
in rural areas due to low literacy rate, communication problem etc.

54

55

Que 9 Do you think the company modified its existing policy toreds
rural market ?

Yes
No

25%
75%

Interpretation- From responses of the respondent it is cleared


that only 25% of retailer thinks that company modified its existing
policy towards rural people because of existing policy of company is
more effective and they dont change in that policy.

56

Que- 10 When does company use such promotional strategy ?

All around the year

During festival

90%

10%

Interpretation - After survey it is found that the company use


promotional strategy all around the years because of to remain
competitive in ever changing dynamic world.

57

Que 12 Does Chik has the most aggressive marketing strategies ?

Strongly agree

15%

Disagree

20%

Neither agree nor disagree

10%

Agree

40%

Strongly disagree

15%

58

Interpretation - After deep survey of 10 retailers 40% the


respondent agree has Chik shampoo most aggressive marketing
strategy.

Hypothesis And Testing

59

60

10. Hypothesis And Testing


The hypothesis testing are as
From the data analysis it is proved that the purchase of Chik
Shampoo is influenced by price, advertising, perception, promotional
strategy and quality.
From data analysis it is proved that the distribution strategy is most
helpful to purchasing of shampoo in rural areas.
TV Advertising, Cinema and Radio advertising is more helpful for
sales promotion of Chik shampoo in rural region.

61

Limitations of the study

62

11Limitations of the study


Normally it is seen that the respondents are not really very much
willing to provide the necessary information or even they just scroll
off to save their time.
1. The survey is based on Gondia District only and sample size were
just 17 so the result is not to be considered as universal.
2. Due to busy schedule of respondent they were unable to give
answers of some descriptive questions.
3. Most of customers do not want to replay because they think that
they were not benefits by questionnaires.

63

Conclusion

64

12 Conclusion
After data collection and data analysis by varies tools and techniques
the researchers found following main points.
1) Perception of rural consumer towards the Chik Shampoo is
positive in Gondia district.
2) Educated persons are not use the Chik Shampoo but
uneducated persons are use maximum Chik Shampoo.
3) Price discrimination strategy most effective in rural consumer
such as Coupons, Special sale events, Discounts, Buy 5 get 1
free sachet of Chik Shampoo in Gondia district.
4) Television advertisement and special events in Melas, Group
meeting plays major roles in promotion of Chik shampoo in
rural areas.
5) Low poor class peoples are highest purchasers of Chik
shampoo in rural areas.
6) About 86% of customers prefers of Chik shampoo sachet
rather than bottle.
7) Price, Colour, Fragrance, Size (in ml) and availability in store is
in main factors which influence greatly to the rural behavior in
rural customers.

65

Suggestion

66

13 Suggestion
On the basis of various observations and conclusions drawn, the
researchers recommended the following points, which should be
taken into consideration by the company.
1) Price, colour, fragrance, size (in ml) and availability in shops
and stores is in main factors which influence greatly to the
buying behavior, therefore company should work on these
factors is increasing sales.
2) Educated persons are not use of Chik shampoo therefore the
company facilate the other promotional strategy.
3) Television and special events are not sufficient for sales
promotion, other communication strategy, change educated
rural consumer mindset and other promotional strategy should
be done.
4) Most of rural consumer use the soap for health for hair
therefore company and retailer should be more effective for
promotion of Chik shampoo.
5) Rural consumers more attractive towards entertainment so
through entertainment event more effective fir promotion of
Chik Shampoo.

67

6) Use of technology, such as mobile phones to communicate the


rural consumer and tells about advantages of Chik shampoo
via massages, direct call i.e. direct selling.
7) As the percentage of awareness by promotional events is very
low therefore company should give more attention on these
field by organizing more promotional events.

Bibliography
68

69

14 Bibliography
Websites
www.google.com
www.ckpl.com
doccollection.com

Magazines
Marketing Mastermind

July 2014

Marketing Economics

Aug 2014

Annexure

70

71

QUESTIONNAIRE
Dealer /Retailers Name : ____________________________________
Contact Number

: ____________________________________

Address

: ____________________________________
____________________________________

Age
1

: ____________
Do you provide the Shampoo to rural areas ?

c Yes
2

c No

Tick the following shampoo provided to rural areas :


c Chik

c Clinic Plus

c Head and Shoulder

c Vatika

c Anything that its inexpensive

Do you provide the Chik Shampoo to rural areas ?

c Yes

c No

If Yes, please specify ____________________________________


____________________________________
____________________________________
4

What type of promotional activities are used by company to promote Chik


Shampoo for
c Advertising

rural areas ?
c Sales Promotion
72

c Personal Selling
5

According to you which promotional strategy is more effectives ?


c Advertising
c Personal Selling

c Publicity

c Sales Promotion
c Publicity

Are you satisfied with the promotional activities adopted by CaviKare for rural
areas ?
c Yes

c No

Do you have any suggestion for the improvement in the promotional and sales
activity ?
____________________________________
____________________________________
____________________________________

Do you face any kind of problem while convincing your customer in rural
areas ?
c Yes

c No

If Yes, please specify ____________________________________


____________________________________
____________________________________
9

Do you think the company modify its existing policy towards rural market ?
73

c Yes

c No

If Yes, please specify ____________________________________


____________________________________
10 When does the company use such promotional activities ?
c All around the year

c During festival season

c Before the season [ please, mention month & duration ]


____________________________________
____________________________________
c Other, please specify ________________________

11 Do you think the company has to modify its existing sales policy ?
c Yes

c No

c If Yes, Please specify ________________________


____________________________________
____________________________________

12 Does Chik has the most aggressive marketing strategies ?


c Strongly agree

c Disagree

c Neither agree nor discharge

c Agree

c Strongly disagree

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