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Challenges of Thalayazham Grama Panchayath: A Study On Rural Marketing Opportunities and
Challenges of Thalayazham Grama Panchayath: A Study On Rural Marketing Opportunities and
MASTER OF COMMERCE
Submitted by
HARIKRISHNAN P T
Assistant Professor
August 2015
PIN-686607
DR. RAJUMON. T. MAVUNKAL Office: 04829 275303
CERTIFICATE
PRINCIPAL
POSTGRADUATE DEPARTMENT OF COMMERCE
CERTIFICATE
Lecturer
Date :
Countersigned,
Vaikom HARIKRISHNAN P T
Date :
ACKOWLEDGEMENT
I would like to express our deepest appreciation and gratitude to Ms. Amala
Joseph (Lecturer), who has been a strong source of support and encouragement in all
phases of this project; continually and convincingly conveyed a spirit of adventure
throughout the preparation. Without her guidance and persistent help this project would
not have been possible.
I owe earnest and sincere thanks to all the teachers of the Postgraduate
Department of Commerce, St. Xavier’s College, who have helped and inspired me during
the course of project preparation and entire course of study.
I would also like to thank ‘………..’ for their keen interest shown in printing
works inspire of the hectic business schedules.
Above all, I thank God almighty for giving us the strength and willpower for
making this project a reality.
HARIKRISHNAN P T
LIST OF CONTENTS
List of Figures
I Introduction
II Theoretical Framework
Bibliography
Appendix
LIST OF TABLES
Table Page
Title
No. No.
2.1 Table showing likerts values
3.1 Age wise classification of respondents
Figure Page
Title
No. No.
3.1 Figure Showing Age Wise Classification Of Respondents
3.2 Gender wise classification of respondents
3.3 Figure showing Educational qualification
3.4 Figure showing family size of the respondents
3.5 Income Wise Classification of Respondent
Figure showing rural marketing activities conducted by the
3.6
respondents.
3.7 Usage of Products for Domestic Purpose
3.8 Market Classification of Respondents
3.9 Figure showing opinion on marketing value added products
3.10 Table showing generating more income
3.11 Socio – Economic Status of the Respondents
3.12 Reasons for Purchase from Respondents Preferred Store
3.13 Respondents review about branded unbranded products.
Chapter I
INTRODUCTION
Introduction
RURAL MARKETING
Rural marketing, in simple words, is planning and implementation of
marketing function for the rural areas. It is a two-way marketing process which
encompasses the discharge of business activities that direct the flow of goods from
urban to rural areas (for manufactured goods) and vice-versa(for agriculture
produce),as also within the rural areas (Gopalaswamy).
Rural marketing has also been defined as the process of developing, pricing ,
promoting , distributing rural-specific goods and services leading to exchange
between urban and rural markets, which satisfies consumer demand and also
achieves organizational objectives ( Iyer ).
But, rural marketing amounts to dealing with various input, projects and
services meant for the rural market. In this sense, it is different from agricultural
marketing which means marketing of rural products/ output to the urban consumer
or institutional market.
Hypothesis
I. Source of Data
The study is based on both primary and secondary data.
Primary Data
The primary data was collected from a sample size of fifty respondents, from
Thalayazham Grama Panchayath through questionnaire.
Secondary Data
The secondary data was collected from journals, books and internet, etc.
Sampling
For analysis of the data, various statistical tools are used. For its
presentation, tables, multiple bar diagrams have been used. For hypotheses testing
and statistical analysis, the tools that have been applied are:-
1. Percentage analysis,
2. Composite indices,
3. Likert’s scaling technique,
4. Chi-square test.
About the tools in brief:-
1. Percentage Analysis
2. Composite Indices
Range Opinion
0-5 Disagree
5 – 10 Neutral
10 - 15 Agree
The statistical test in which the test statistics follows the Chi- square
distribution is called Chi- square test (2 test). Therefore Chi- square test is a
statistical test, which tests the significance of difference between observed and the
corresponding theoretical frequencies of a distribution, without any assumption
about the distribution of population.
2 = (O-E) 2/E
Where, ‘O’ stands for Observed frequencies and ‘E’ stands for Expected
frequencies.
• Chapter 1: Introduction
• Chapter 2: Rural Marketing an overview
• Chapter 3: Data Analysis & Interpretation
• Chapter 4: Summary of Findings, Recommendations & Conclusion
CHAPTER III
Percentage Of
Age Group No. Of Respondents
Respondents
Below 20 1 2
20 – 30 11 22
30 – 40 10 20
40 – 50 16 32
50 – 60 6 12
Above 60 6 12
Total 50 100
Interpretation
The above table shows that 32% of the respondents are belong to the age
group of 40 – 50. 22% of the respondents are in between 20 – 30. 20% of the
respondents belong to 30 – 40. 12% of the respondents are from the age group of
50 – 60. 12% are senior citizens. The percentage of youth respondents is just 2%.
Figure 3.1
Figure Showing Age Wise Classfication Of
Respondents
18
16
14
12
10 Number of
8 Respondents
6
0
Below 20 20 - 30 30 - 40 40 - 50 50 - 60 Above 60
Table 3.2
Percentage of
Gender No. of respondents
respondents
Male 31 62
Female 19 38
Total 50 100
Source; Primary Data
Interpretation
Table 3.2 shows that 62% of the respondents are male and the rest of them
female respondents.
Figure 3.2
Gender wise classification of responents.
35
30
25
20
Gender
15
10
0
Male Female
Table 3.3
Educational Percentage of
No. of respondents
Qualification respondents
Below VIII 9 18
VIII – X 18 36
XII/ Pre degree 10 20
Degree 8 16
P.G or above 5 10
Total 50 100
Source; Primary Data
Interpretation
The above table shows that the 36% of respondents have an educational
qualification of 8 – 10. 20% of the respondents have +2/pre degree qualification.
18% of the respondents belong to below 8th standard. The percentage of degree
holders in the study is 16% and 10% of the respondents have a P.G or above
qualification.
Figure 3.3
20
18
16
14
12
10
8
6
4 Number of
respondents
2
0
Below VIII - X XII/ Pre Degree
VIII degree
Table 3.4
Percentage of
No. of family members No. of respondents
respondents
Up to 2 0 0
3–5 44 88
6 – 10 6 12
Above 10 0 0
Total 50 100
Interpretation
The given table shows that the average family size of the respondents is in
between 3 – 5. A few numbers of family sizes of respondents have a family size in
between 6 – 10.
Figure 3.4
Figure showing family size of the respondents
50
45
40
35
30
No. of respondents
25
20
15
10
5
0
Up to 2 3 to 5 6 to 10 above 10
Table 3.5
Percentage of
Monthly income No. of respondents
respondents
Up to 5000 1 2
5000 – 10000 26 52
10000 – 20000 11 22
20000 – 50000 11 22
Above 50000 1 2
Total 50 100
Interpretation
The table 3.5 shows that 52% of the respondents belong to an income group
of 5000 – 10000. 22% of respondents gain income of ranges 10000 – 20000 and
20000 – 50000 respectively.
Figure 3.5
Income Wise Classification of Respondents
30
25
20
15
No. of respondents
10
0
Up to 5000 to 10000 20000 Above
5000 10000 to to 50000
20000 50000
Table 3.6
Table showing rural marketing activities conducted by the
respondents.
Interpretation
The above table shows that 14% of the respondents are belong to
agricultural sector, 10% of the respondents are engaged in horticulture, and 10% of
the respondents are engaged in ornamental fishing. Poultry farming, coir making
and fish farming are next important fields, each field carries 10% each
respondents. Handicrafts making, services like taxi auto and dairy farming contains
each 12% of respondents.
Figure3.6
Figure showing rural marketing activities conducted by
the respondents.
Number of respondents
Table 3.7
Usage of Products for Domestic Purpose
Interpretation
The study reveals that 80% of the respondents use their products for
domestic purposes and the rest 20% don’t consume their products for domestic
purpose.
Figure 3.7
Usage of Products for Domestic Purpose
Yes
No
Table 3.8
Market Classification of Respondents
Percentage of
Type of market No. of respondents
respondents
Local market 20 40
Home to home 7 14
Urban market 9 18
Co-operative societies 14 28
Online market 0 0
Total 50 100
Source; Primary Data
Interpretation
The table 3.8 shows that 40% of the respondents depend upon local markets
for selling their products. 28% of respondents depends co-operative societies. 18%
of the respondents depends urban markets to sell the products and the rest 14%
belong to home to home deliveries. No respondents opt online markets for their
products.
Figure 3.8
Market Classification of Respondents
25
20
15
10
5
0
Local market Home to Home Urban market Co-operative Online market
societies
Number of respondents
Table 3.9
Rank
I II III IV V VI VII COMPOSITE
RANK
(*7) (*6) (*5) (*4) (*3) (*2) (*1) INDEX
Reason
5 4 1 5 6 4 4
Hereditary 114 VII
(35) (24) (5) (20) (18) (8) (4)
11 6 3 2 5 2 5
Time Pass 160 V
(77) (36) (15) (8) (15) (4) (5)
No other 11 9 4 5 4 1 2
187 IV
occupation (77) (54) (20) (20) (12) (2) (2)
Financial 12 9 5 12 3 2 1
225 I
stability (84) (54) (25) (48) (9) (4) (1)
Passionate to
7 13 7 6 4 6 1
current 211 II
(49) (78) (35) (24) (12) (12) (1)
occupation
Support from 2 4 23 8 8 0 1
210 III
family (14) (24) (115) (32) (24) (0) (1)
0 5 7 9 3 10 0
Govt. Support 130 VI
(0) (30) (35) (36) (9) (20) (0)
The above table highlights the reasons which influenced the respondents to
enter the rural market. Respondents opine that financial stability is the primary
reason. The second reason which influences the respondents is the support from the
family.
The third reason for entering into the rural market is their passion. The
fourth reason that the respondents prefer rural marketing activity is that they have
no other occupation. Rest of the reasons are found to be time pass, government
support and hereditary respectively.
Table 3.10
Percentage of
Opinion No. of respondents
respondents
Yes 18 36
No 32 64
Total 50 100
Interpretation
The given table shows that most of the respondents are not interested to
market value added products. The rest 36% of respondents are interested to market
value added products.
Figure 3.9
Figure showing opinion on marketing value added
products
Yes
No
Table 3.11
Interpretations
The above table shows that for every statement provided, all the
respondents agreed to the statements. This clearly indicates the opportunities of
Thalayazham Grama Panchayath are wide and the public engaged in rural
marketing activities are interested in innovations made in their respective activities.
Table 3.12
Table showing generating more income
Percentage of
Opinion of respondents No. of respondents
respondents
Yes 32 64
No 18 36
Total 50 100
Source; Primary Data
Interpretation
The given table shows that most of the respondents believe that they can
generate more income if they sell their products else were. These groups contain
64% of the respondents. 36% of the respondents believe that now they get
maximum income from their products.
Figure 3.10
Table showing generating more income
Yes
No
Table 3.13
Socio – Economic Status of the Respondents
Interpretation
The table shows that all the respondents have bank account, electricity, gas
connection, mobile phone and sanitation facilities. 94% of the respondents have
owned house and the rest lives in rented houses. Just more than half of the
respondents have two wheeler, 48% does not have a two wheeler. Least of the
respondents own a car, majority 86% does not own a car. The drinking water
facilities like well, pond, water connection etc. are enjoyed by most of the
respondents. They belong to 92%. 96% of the respondents have furniture and life
insurance.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
No
Yes
Table 3.13 (a)
Table showing brand preference of the consumers
Number of Percentage of
Consumer durable Brand
users users
GODREJ 1 50
Air conditioner
LG 1 50
Total 2 2 100
LG 3 37.5
PANASONIC 1 12.5
Washing machine SAMSUNG 1 12.5
VIDEOCON 1 12.5
WHIRLPOOL 2 25
Total 5 8 100
GODREJ 4 14.5
HAIER 2 7
KENSTAR 1 3.5
LG 6 21.5
Refrigerator
PHILIPS 2 7
SAMSUNG 4 14.5
VIDEOCON 2 7
WHIRLPOOL 7 25
Total 9 28 100
APPLE 2 4
HTC 3 6
KARBON 1 2
LAVA 1 2
LENOVO 1 2
Mobile LG 2 4
MICROMAX 4 8
MICROSOFT 1 2
NOKIA 22 44
SAMSUNG 10 20
SONY 3 6
Total 11 50 100
APPLE 2 20
DELL 4 40
Lap top / computer HP 2 20
LENOVO 1 10
TOSHIBA 1 10
Total 5 10 100
Source; Primary Data
Interpretation
Out of the air conditioners users 50% prefer Godrej and the next 50%
prefer LG Air conditioners. In case of washing machine 38%prefer LG 12% prefer
Samsung, Videocon, Panasonic and 25% prefer Whirlpool. Out of the refrigerator
users 25% prefer whirlpool 22% prefer LG. the other brands in refrigerator users
are Philips, Samsung and Videocon. There are 40% of computer/ laptop users use
Dell. 44% of mobile users use Nokia as their preferred one. 20% of Samsung users
are also in this study. Almost 11 mobile brands shown in this study.
Table 3.14
Interpretation
The above table shows that price is the major factor influencing the
respondents to buy a particular brand. The second important factor is found to be
advertisement. This is followed by word of mouth dealer and other factors.
Table 3.15
Percentage of
Reasons No. of respondents
respondents
Discount 11 22
Variety 5 10
Service 9 18
Ambience 1 2
Quality 21 42
Proximity 3 6
Total 50 100
Source; Primary Data
Interpretation
The table shows that 42% of the respondents believe in quality, 22% of the
respondents look for discounts, 18% expect good services, 10% search for variety.
6% of the respondents prefer store as based on proximity and just 2% of the
respondents prefer stores based on ambience.
Figure 3.12
Reasons for Purchase from Respondents Preferred
Store
25
20
15
10 No. of respondents
0
Table 3.16
Percentage of
Review of respondents No. of respondents
respondents
Yes 50 100
No 0 0
Total 50 100
Source; Primary Data
Interpretation
The study reveals that all the respondents think that branded products are
better than unbranded products.
Figure 3.13
Respondents review about branded unbranded
products.
Yes
No
TESTING OF HYPOTHESIS
CHI-SQUARE TEST (χ 2 test)
Table 3.17
Table showing relationship between gender of the respondents and
their rural marketing activities.
Fish farming
(Paddy only)
Coir making
Horticulture
Services like
Ornamental
Handicrafts
Agriculture
Total
taxi/ auto
farming
farming
making
Poultry
fishing
Gender
Dairy
Male 7 3 4 2 6 2 3 0 4 31
Female 0 2 1 3 0 4 3 5 1 19
Total 7 5 5 5 6 6 6 5 5 50
Source: Primary Data
H0
Level of Degree of Computed Table
Test Accepted /
significance freedom value value
rejected
χ2 5% 8 20.99604 15.507 H0 rejected
Interpretation
In this χ 2 test calculated value is greater than table value so we reject H0.
There is significant relationship between gender of the respondents and their rural
marketing activities.
Table 3.18
Table showing relationship between monthly income of the
respondents and their market.
Monthly income range
Type of market they
Up to 5000- 10000- 20000- Above Total
engaged
5000 10000 20000 50000 50000
Local market 0 11 4 5 0 20
Home to Home 0 1 3 3 0 7
Urban market 0 4 2 2 1 9
Co-operative society 1 10 2 1 0 14
Total 1 26 11 11 1 50
Source: Primary Data
Table 3.18 (a)
H0
Level of Degree of Computed Table
Test Accepted /
significance freedom value value
rejected
5% H0
χ2 12 14.86766611 21.026
accepted
Interpretation
In this χ 2 test Calculated value is less than the Table value so we can accept
the H0. It shows there is no significant relationship between monthly income of the
respondents and their place of marketing.
.
CHAPTER IV
SUMMARY OF FINDINGS,
SUGGESTIONS AND
CONCLUSION
FINDINGS
The study reveals that majority of the respondents are not interested to
market value added products. But they are agreed the stated innovations for each
rural marketing activities.