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This study is an empirical enquiry into the Market potential of personal Care products in rural areas .The prime objective of the study centers round analyzing the potential of rural areas for marketing personal care products with a view to suggest a policy frame work useful for strategy Formulation at macro and micro levels. Essentially, the study makes an attempt to present the vast potential of rural markets for he marketing of personal care products in the selected rural areas. This chapter is presented in three parts. The first part is devoted to a statement of the overall view , formulation of problem ,products selected, objectives, scopes ,research design, and sample design .Source of data ,limitations of the study and overview of the study .In the second part a review of literature on marketing has been presented .The Third part of the chapter contains a brief profile of the selected rural areas.
1.2 RURAL MARKETS- CHANGING TRENDS
There has been a rapid transaction in the spectrum of marketing .There are certainly significant difference in buyer behavior in rural and urban areas which different kinds of demand development ,pricing policies, distribution, after –sales services etc. Do not create great difference in requirements for marketing strategy rural and urban India. Every product has a definable list of markets which are with in the economic control range of the marketing organization. As the costs of the marketing increases, every marketing company has to define its “cut off point “ beyond which the costs of marketing exceed the value of the value of the increased sale. Bulk of India’s population live in villages. With the increase in purchasing power and the demand for a wide variety of products by the farmers, the rural market offers new and greater opportunities to manufacturers of several consumers and
industrial products in India. But to tap this vast expanding market, companies need to develop effective marketing and advertising strategies based on their study and understanding of rural consumer behavior. The study high lights several dimensions of rural consumer behavior and focuses on the issues challenges before the manufacturers of personal care products in penetrating the markets in the country side .It is strongly believed that rural markets offers opportunities which are vast and yet relatively untapped. It is considered that rural marketing is an investment and not expenditure. The example of Hindustan lever cam be illustrated in this context.
The rural sector encompasses about 80% of the total population spread over six lakh villages and has been completely ignored by the majority of our business house .Hundreds of products are now being sold for the first time in the rural areas .With the increase in purchasing power, greater opportunity to market a variety of products in rural areas. But to succeed in marketing a proper assessment of the market is very necessary , a well conceived rural marketing strategy would involve proper understanding of the consumers and planning the products to suit their needs. Consumers Research has a key role in tapping the rural markets. There have been two schools of thought among Indian marketers on rural marketing..Techniques which worked into metro and urban areas could d be transplanted with little or no modifications to rural India. But the more sophisticated Indian marketers quickly perceived certain very basic difference between town and country ,inaugurated the second school : the belief that rural marketing required radically different skills and techniques from its urban counterpart . As a part result of the swing to extremities , which naturally attends such realization , several new beliefs have become popularity:
The rural market offers a vast for consumer goods. The distribution task involves covering several lakh villages.
(iii)Low- priced products should be more successful in rural markets .Because of the low per
capita income in rural India (iv)Rural consumers from one homogenous group with similar needs values and aspiration
Advertising should be simple and unsophisticated and in terms of media, use local fairs, opinion leaders etc. as apposed to press , film radio and such others “urbanoriented” media. This was deduced from the low media- exposure figures for rural India.
1.3 The important characteristics of rural family are as follows:
(1) Joint family :
The most important feature of the rural family in India is the practice
of joint family are included husband , the authority rests in the oldest male member in the family , the property is deemed to be the common possession of all members of the family. The head of the family a join family runs a common kitchen and every member shares common board and lodging.
(2) High status of women :
In India village women gets a place of pride. She is highly
regarded ,Accordingly to the Law-giver Manu. .Gods resides where the women are worshipped and where women are not worshipped, failure haunts all activity . In rural society women work along with men in fields . Expecting the women of high castes who do not stir out of the four walls of the home , women share with men all work.
(3) Religion and Spirituality :
The third main characteristics of its rural family is its
religious and spiritual basis . The rural family is bound by religious principles and its aim is spiritual instead of being materialistic . on account of the religio-spirtual orientation of rural family in villages more emphases is laid on duties than rights. This is why the relations between family members are very cordial and respectful in rural family everyone performs job dutifully and there is discipline , harmony and peace among family members.
(4) Hospitality : Another important quality of rural family is its attitude towards the guest a
guest is always welcome. In particular Hindus regard guest as a divine visitors . A Hindu family will go without means but would not permit a guest to go un entertained . The
high level ideal of hospitality found in rural India is unique and unparalleled any where in the world.
(5) Homogeneity :
The relationship among the family members is far more cordial and
harmonious in village than in towns’ .We find rural family a homogenous unit.
(6) Economic co-operation : Compares with the urban families we find far grater economic
co-operation in the rural families each member participates in the production of wealth and every member is suitably looked after . The children look after the cattle: women harvest the crops and men folk do hard agricultural labor. They do the job of tilling the fields and protecting them from wild animals.
(7) Discipline and mutual dependence :
In comparison to urban families we find much
more discipline and spirit of mutual give and take in the rural families. All members of the family , generally , obey dutifully the order of the head man. The marriages are as a rule settled by the parents.
(8) Family honor ;
Compared with urban families are very begrudging of their honor . In
them group feeling is more dominant than the personal feeling, a hurt to family is considered personal hurt by each member and the honor of the family is considered to be the personal honor. Therefore , no family member is allowed to do any thing which may be disgraceful and thus comprise the honor of the family.
(9) Influence of tradition ; In the village , tradition are given a place of pride and are
zealously guarded, no one can ordinarily think of breaking a tradition the more ancient tradition greater is its hold on the rural mind . Compared to urban populace, the rural people are affected by technological development and the social change. The relationship within the female is determined by tradition.
Family an Economic :
The rural India family can be treated as a unit in respect
of production , distribution and exchange , that is from economic point of viewpoint . In economic point relationship the family and not only the individual play the central role. The barter system , under which things are exchanged , is still prevalent in villages to certain extent.
Authority of father ; In rural India the family system is particular family. The seat
of authority and honor rests in the patriarch , the father . Accordingly , the families in rural India are dominated by fathers. No matter how old the children are they usually respect the father and dare not defy his command compared to cities , young persons respect pay much more respect to their elders in villages.
Families Social Control : In rural society, control of the society on its members
is exercised through the medium of the family. Family is the social unit in the rural society .It is the family which puts social responsibility on the members and sees to it that it is fully discharged by its members . it is the status of the family , which in turn ‘’ determines the status of the individual. It is the family which gets social laws respected and by the members .
A social unit : The rural family is a religious , economic and political unit of the
rural society. No moral ,social or political rules are workable if these attach to the basis of family structure. All rules and laws workable in the rural society strengthen the roots of family structure. The salient features of rural society outlined . Above are to be found more or less in all parts of rural India though there may be some regional differences which are quite natural in a vast country , like India. The features given above are however , not suitable or static . they are liable to undergo change due to factors like urbanization , industrialization spread education and technological changes particularly the development of fast means of communication. The marketing environment governing the rural markets to has undergoing vast changes in the last two decades, For example , the transistor radio was practically unheard of in the Indian rural market twenty years ago. Today transistor are seen everywhere in rural areas , even in the remotest of hamlets . even tape recorders or “ two-in0ones” Have become a common sight in the rural areas. The speared of bicycles has almost in the nature of a revolution . today , India is the world’s largest second producer of bicycles with an output of six million units per annum and a major part of this is absorbed by rural India. Two wheelers have also become a common sight in the villages . in clothing , there has been a sea
change – preferences have shifted to blended fabrics , knitted apparels and readymade garments. Earthenware pots have yielded place to a Varity of new kitchen ware. Plastic products and stainless steel goods have become consumer items . the change in every area is visible , palpable. The size of rural market for non- food consumption items grew from Rs.5000 crore in 1970-71 to Rs.13500 crore in 1979-89 and Rs. 18000 crore in 1987-88. It continues to grow at an average annual rate of 2.5% after for inflation. Nearly half of the total bank deposits in the range of Rs.1000 to Rs.1500. since saving and consumption are the two main measures of growth, it can be easily seen that rural India is on a good growth curve. The rural areas prospered in a good way due to the beneficial effected of the green revolution. Even though the green revolution has not been a nation wide phenomenon ad much remains to be done in broad basing modern farming among all regions and all crops , it is indisputable that the green revolution has become the pace setter for rural life, the transformation of the vast rural population from tradition bound, poverty stricken life to one of new hopes and aspirations has been the direct consequences of India’s achievement on the farm front . this has tremendous significance for the marketing guy. While potential wise the rural market is a big market, the tapping of the market has been best with a variety of problems. Marketing men find it difficult to penetrate and serve the rural market with the same ease as in the urban expansion that took place with the launching of five year plans, brought in a large spectrum of consumer products. These were sold essentially in the urban market , to urban consumers. To sell these products to the urban consumers was comparatively an easier job. There was demand : there was purchasing power . sensing and arousing the needs of the urban consumers was relatively easy. It was a job for which certain proven marketing techniques and methods were already available. The consumers in the urban sector were generally amenable accessible to the marketing strategies and advertisement appeals of the urban marketers. And in dealing with this marketing situation , the marketers could to a large extent depend on the countries . rural marketing on the other hand , posed many formidable challenges. Evidently , there are two sides to India’s rural market , both equally powerful – the market provides immense opportunities , it is also displays intimidating
challenges . it does not lend itself to an automatic transfer of tools and techniques and tempo and style of marketing which proved a success in the urban marketing context. The rural market happens to be a totally new market , involving a new customer and new marketing situation. The rural market is an integral part of the Indian marketing environment and the rural scenario has been undergoing changes like the urban scenario. Some or the other changes is invariably taking place in the human community everywhere. Changes are the law of nature. Change is demand by life. Death is only another name for complete immobility . thus, change in the human communities , but this should not be taken to mean that the farmers have absolutely no mobility. The village communities too , are even though the rate of change within them is very slow. This fact can be verified by looking at the history of rural community in an area of India.
The major factors in changing the rural sphere may be placed in the
following classes i) NATURAL FACTORS ii) TECHNOLOGICAL FACTORS iii) SOCIAL FACTORS iv) ECONOMIC FACTORS
CULTURAL FACTORS POLITICAL FACTORS
Natural factors : The natural factors of change in the rural community include all
those natural elements which are found in the place in which that specific rural community exists. For example , the villages which have sprung up close to the rivers and the villagers prospering in the mountains show apparently the effects, economic cultural and religious life of the rural community settled in the bamboo forest exhibits
the effects of the bamboos. In places frequented by disturbance the houses are constructed of wood. The vegetation and the animals peculiar to any place are most frequently consumed and employed in their native land. The same way , the cottage industries which develop in any place bear a direct co relation to the minerals found in that area. In this way rivers, seas, flood, storms rain, hale stones, earthquakes. Mountains and animals etc, are the natural factors which influence the rural community whenever any one of these changes, the life of the rural community also changes at the same time. The geographies have written numerous books the subjects of the effects of the geographical environment upon human life. The natural factors shape the geographic environment their effects are universal known. If the Ganges river alters its course miles away from the one which it as previously pursuing then not only economic life but also other aspects of the rural areas situated upon the old banks of the river will be changed.
Technological factors :
Man creates a novel environment with assistance of the
technological factors include all inventions . wherever electrical power has been made available to the villages , it has completely transforms the radio alone has resulted in nearly 150 major changes in social life. Machines have not been used as much in the Indian villages as they are in the villages of west. But even then the work of grinding wheat and refining cotton has lost its for the rural families since the machines for such purpose were installed in their villages. This has influenced the life and conditions of the women . with the invention of steam and electrical power all the aspects of human life undergone some changes or the other.
3. Social factors : The social factors have comprehensive effect upon the social life of the
rural community . for example the existence of sati custom . child marriages have some effect upon the life of rural community , its effect being particularly evident in the condition of female population. The major social factors which influence the life of the Indian rural community are caste system and religious custom and traditions etc. any change in any one of these factors result in change in the rural community.
4. Economic factors: These include those which are related to agriculture , business and
industries. As a result of the pressure upon land having increase in the village , many people have migrated to the towns in search of employment. Living in towns the moral
life and values of a rural youth undergo a change which have their influence upon the moral life and values of the other life and values of the other people in the village when he returns to the village. Wherever factories or mines have been established in the villages the relations between men and have been influenced by their working together.
5. Cultural factors : These includes beliefs, assumption , values, etc. changes in them have
repercussion s in the entire social life . in India where ever the Hindu , Muslim , Christian culture have had an opportunity to meet, the cultural life of the rural community evinces clearly the influence of this. As a result of influence of western culture the institution of youth dormitory is vanishing from many tribal villages. In rural girls and boys, who are influence by western culture, the tendencies of individualism materialism and irresponsibility inter route and these exert important influence upon rural institution like family marriage cast system etc.
6. Political factors: The rural communities are also influence by the political factors. For ex,
distinct difference may be seen between the rural communities under Hindu Muslim ,and British govt. after independence much awakening has been in evidence in the villages . India is a democracy in which public elects their representative who run the administrative machinery. This is awakening political consciousness among the rural folk.
FORMULATION OF THE PROBLEM:
Nature of study: The nature of this study is characterized by the following features: 1) It is a social research 2) It is explanatory
3) It has an applied bias
It realized empirical evidence
It is a social research:
The study aims at obtaining the information on market and
removing the confusion about the rural customer of personal care products and allied products. Marketing itself is a social process , since it is having a human aspect and is resulted by the complex, social behavior. The management of marketing is also social oriented an leads the improvement of quality of life and supplies better amenities to the man in keeping with the growing and varied requirement of the society. Being a social research the study trice to identify the complex behavior and set patterns in it. A social research may not be as précised and accurate in researchers in physical sciences in making prediction. However the human intelligence has lead to the logical and systemize technique being reasonably accurate in the studying social phenomenon individually human being may be unpredictable but collectively they tend to reasonably accurately predictable. Advancement in social research method has increased the accuracy of prediction considerably. Thus social research gives us pleasure like a new born child.
2) It is explanatory : The approach of the study is explanatory or formulate. The focus is on
the discovery of ideas . it is generally based on the secondary data that are readily available. It is in nature of preliminary investigation where in the researchers himself is not sufficient knowledgeable and is, therefore, unable to frame detailed research himself is not sufficient knowledgeable and is, therefore unable to frame detailed research question. It uses a different approach to the problem than the conclusive study. The study is mostly directed towards identifying the various characteristics of the market and there by create observation conductive to further study. Thus approach has been followed as the study has been undertaken for a new area of investigation where the problem itself is not very clear and is needed to be diagnosed. The domain of the research is also required to be reasonably wide but properly specified.
"marketing research", state that a research in marketing is required to have a bias for
application. They mention that marketing research serves a single purpose that of providing information to assist marketing managers and the executives to whom they report to make better decisions. in spite of keeping the study wide enough and exploratory in nature an attempt has been made to relate each aspect of the study with managerial decision based on it. This enhances the value of the project beyond the pure academic one. It has also been mentioned specifically in the objectives of the study that it will provide useful guidance to the rest of the business community in respect of the emerging opportunities in the field.
(4) It relies on empirical evidence: It is believe in research that relying on experience and observations is always preferable over relying solely on theory; and especially when the available information is insufficient, the empirical study is only to get it. In the study, the lack of the information in rural markets has been the main reason for preferring an empirical study. An extensive survey of the select villages has been conducted and it is expected that its results may necessitate the changes in the presently held opinions and help in building a new theory altogether. Since the 1960's there has been good growth of potential in the rural areas of select villages in R.R. District. These villages are providing immense opportunities for sale of personal care products. This is quite different urban market where the approach is totally different. In case of the rural markets in approach totally different from the urban markets has to be undertaken. The study has been undertaken to examine some issues pertaining to sale of personal care products in the select villages of Rangareddy district. Such as the village structure, the rural consumer, the current personal care products usage and suggest indicative marketing methods to be employed in rural marketing. The study gains relevance and importance in view of the following: • The rural markets offer a vast potential for personal care products such as soaps, toothpaste, toothpowder, blades, talcum powder, shaving creams, face creams, shampoos, perfumes etc • The distribution task involves several villages. are more successful in the select rural villages
• Low-priced products because of the low per-capital income. • The rural values and aspirations.
consumers from one homogeneous group with similar needs,
• It is likely that the relatively well-to-do rural consumers will graduate to more sophisticated personal care products as they start expecting more than just the basic function of the products. This included substituting present products like "MANJANS" with toothpaste as soon as they feel that mouth-freshness is a desired attribute for teeth-cleaners or that teeth-cleaners must have therapeutic values for teeth and gums. • Product specialization has also emerged. In many areas. a soap cake is used for all washing purposes whether for washing of clothes, washing of the body or hair. But now with the acceptance of toilet soaps a differentiation is being made between washing of clothes and of the body. • Shampoos or shampoo soaps are becoming more popular for the hair. In the select rural villages use of shikakai shampoo-soap is quite prevalent. These areas traditionally used shikakai pods for washing hair and perhaps shikakai soap is a natural graduation to a more convenient usage of the same product. • The higher literacy in these areas is giving goods scope for health giving and body protecting products. This is triggering off the need for various kinds of personal care products. • There is a need to penetrate the rural markets using a fine blend of product mix viz. the associated features, brand name, the package and labeling. Apt decisions pertaining to the product line and an equally good product policy is a must. The positioning of personal care products with an assured product quality has been felt as an important aspect as per reports published by ORG and NCAER groups
1.5 Objectives of research:
To find the contribution given by Indian rural markets in GDP. To understand the rural marketing strategies for marketing. To assess the growth and development of rural marketing in India. To find the factors influencing the companies to turn into rural areas.
1.6. Research Methodology
The need of thesis is to highlight importance of rural marketing in India emerging scenario. There are two types of data collection. They are 1. Primary Data 2. Secondary Data
Primary data: It includes the firsthand information about concerned topic. The data can be collected by using a structured schedule or questionnaire by direct interacting with the customers.
Secondary data: This is the data collected from the journals, websites, magazines, newspapers, articles, company documents etc
Purpose of Thesis:
The purpose of the thesis is to find the rural market potential in India and how rural markets are contributing for the benefit or improving economy. To find the various factors influencing the growth and development of rural markets in India.
LIMITATIONS OF THE STUDY:
The major problem encountered while carrying out the study was the Responses given by the retaliates with respect to their attributes which are highly personal in nature. Moreover, to draw the information about the rural consumers it was necessary to meticulously refer to information given by the main sources in there areas. It may appear that elaborate quantitative analysis has been carried out
However, it may be noted that the study of this kind does not give much scope for such an attempt.
The thesis is divided in to different Chapters. In the First Chapter, the overall view of the study, Emerging Trends in Rural Markets. Formulation of the Problem, products selected in the study, objectives, Hypotheses, Scope, Research Design, Sample Design, Sources of Data, Limitations of the Study and Overview have been presented. A review of Literature, Rural Market profile in India and also profile of select villages in Rangareddy District has been included in this chapter. The second chapter presents a conceptual framework on Market potential. The various aspects like Sales Analysis, Market potential total Market Potential company
demand Market coverage, Market Structure, Market Development and Market Opportunity are discussed in this chapter. The Third chapter deals with personal care products Industry profile. In this the analysis of personal care product's Industry is amply discussed. The concept of Cosmetics, types of cosmetics, evolution of cosmetics through ages and Modern Scenario have also been presented. A personal care product in rural area has also been brought out in this chapter. The Fourth chapter presents information on product management, product Awareness and Brand Awareness in Rural areas. Here an examination of the quality, packaging and branding of product is made. The facts about product Awareness and Brand awareness have been suitably presented in this chapter. The Fifth chapter analyses the emerging trends and changing Scenario in Rural Consumer Behavior. Here a detailed analysis of Rural Consumer Behavior is made. The various theories of consumer behavior have been only discussed here. The sixth and final chapter deals with Summary and Conclusion. The various objectives and discussed here for drawing inferences accordingly. It presents a complete overview of the thesis. That apart, this chapter also presents a possible policy framework for increasing the potential of personal care products in the rural markets.
REVIEW OF LITERATURE
Aditi Chatterji's article in "The Economic In this section, it is proposed to present the state of art of the marketing in general and rural market potential in particular in India. The purpose of this section is to highlight the popular beliefs about rural marketing. Most of the information presented here pertains to the rural market which is offering new and greater opportunities to manufacturers of several consumer and industrial products in India. This apart, an attempt to present the research studies conducted on rural markets has been made. The important ideas brought out by various authors also constitute the significant part of the section. Thus the main purpose of this part of the chapter is to identify the gaps existing on this subject and the suggest and specific areas worth considering for undertaking research.
There "is consumer boom" in the rural markets as per reports published in business world (June, 1990). In the mid eighties a perceptible change has been witnessed in rural markets and lifestyles. The changes that swept the urban consumer in earlier decades have now taken place in the rural scenario consequently there has been a boom in the rural Market for consumer products. But although 78% of India’s population lives in the rural areas, available data on markets are scarce, making it difficult areas to conduct in depth analysis. The operations research group (ORG) has done a review of trends over 5 year period 1984-89 to demonstrate the remarkable growth in the rural markets for consumer products. In its analysis, ORG has included products like washing/ cleaning materials, toiletries, cosmetics, condoms, food and beverages, over the counter (OTC) products and miscellaneous items including torches, batteries etc. The rural market for packaged consumer products has nearly trebled from Rs. 733 cores in 1984 t Rs. 2083 cores in 1989 an impressive growth by any standard. During the same period, the contribution of the rural market to the All India market has risen significantly from 28% to 37% which means that the rural market is growing at a faster pace. The growth which hovered around 7% till 1987, went up to 23.3% in 988 and 41% in 1989, indicating that boom is a continuous one and was more pronounced in the last couple of years.
on consumption pattern of selected consumer goods reveals that the percentage expenditure on food in rural areas has declined between 1977-1978 and 1987-1988, which means that a higher proportion of Income is now being spent on non-essential (27%), west (23.5%) and items. The north zone with a a manifold increase contribution of 28% to the rural market, leads the other regions. It is followed by the south east (21.5%). The and for cosmetics registered in all the regions during 1984-1989. the East Zone accounts fro 30% for the rural demand for cosmetics, followed by the South (25.5%), North (23%) and West (21.5%). The share of cosmetics in the rural) market has gone up from 2% in 2984 to 3.5% in1989. Apparently the steadily rising expenditure on advertising of cosmetics in the press and T.V. has not gone waste. Washing/ cleaning materials continued to the single largest category consumer product
accounting for about 37% of the rural market. Toiletries account for about 30% of the rural market. The South, with nearly 32% of the Toiletries market, occupies the top position, followed by the East (25%), North (23.5%) and west (19.5%). In the category of Toiletries toilet soaps, shampoos, Shaving product Tooth pastes and Toot Powers are included. The toilet soap is the most popular and widely used consumer product in rural areas. It accounted for whopping Rs. 408 cores of the rural market in 1989. the share of premium soaps has gone up from 8% in 1984 to 13.7% in 1989, indicating a shift in the preferences of the rural consumer from the less expensive to the more expensive and from the less appealing to the more appealing.
The share of the rural market in tooth pastes and safety razor blades Registered an impressive growth. The rural market accounted for 13% of the tooth paste and 36% of the safety Razor blades markets. In 1984 it went op to 21% and by1989 it was 50% respectively. Shaving rounds continued to be more populate as compared to having creams, while shampoos are still pre-dominantly urban oriented and are yet to penetrate rural areas. Rural markets accounts for 30% of the All India markets for OTC products. While tube facients account for 30% of the OTC markets in the rural areas. Glucose powders and cold /analgesic tablets account for 23% each. The demand for condoms has caught on in the rural areas in the recent past. In 1989 rural India accounted for about a third of the ALL India off taken of condoms through retail outlet. On the basis of empirical evidence, it can be observed that the boom in the rural market is not merely with respect to consumer product as is evident from certain studies and other studies on consumer. Durables by ORG and NCAER- but also in the larger context of the economy and the market. The growth in the rural population and the continued emphasis of the government on rural development is sustained and further strengthen the boom in the decades ahead.
In their article In A and M, titled the rural way, V. Mukunda Das and Somnath Sen(July, 1991) refer to the rural environment as small contiguous settlement units of villages, distant from urban areas, low infra-structure level(such as roads, electricity) low density of per square kilometer of space and low mobility. They have id there is differential access to resources, high dependence of livelihood/employment and Incomes on natural products. It is observed that in
the rural areas there is the number of inter-personal interactions. There is more frequent interaction between the same people; the population individual is better known and identified. Social norms strongly influence individuals and are more visible. The influence of caste is direct and strong. The rural areas have an agrarian base. There are mostly small land holdings for house hold (2 hectares or less) more than 70% of people are in small scale agricultural occupations. There is acute seasonality in income receipts and there is high chance element in income receipts due to dependence of agriculture on natural factors. There is low product exposure, low and exposure, low rate of retail outlets for 1000 population and low market reach. There is low brand awareness, low turnover/ off take per retailer. There is a high exposure to locally made unbranded goods and there is low exposure to Times" (24* October 1990) reveals that the rural market for consumer products is fast out stripping the urban one is observed the villages. Over the last few years demand for for example decline. The tempo has picked up in the late eighties. Till 1987 rural demand for consumer products was growing at 17%. By 1989 it had kept to 41% "Go Rural" That then is the writing on the wall loud and clear. And it's no wonder that marketers are taking a serious look at the message. The battle for the rural market has begun. A look at the market place shows that the giant companies like Colgate-Palmolive, Hindustan Lever, Proctor and Gamble, Godrej, Balsara have set their sight on the rural consumer. is growing consumer products in rural India grew at a faster rate than in urban centers where growth have flattered now. The demand for Toilet soaps, at 14.7% in rural markets, while in the urban sector its actually
Jay Dubashi in his article in PROBE INDIA (July 1990) writes that- The rural market will soon surpass the urban market and emerge as the opportunity area of the future, according to some experts. Today it may be soap and detergents. Tomorrow could whole shooting probably around match from refrigerators to air conditioners, be the and motorcycles to motor cars. to
And this is where the real challenge lies. The total number of rural householders is now 120 million, of which may be 40 million or so have sufficient incomes sustain a growing market for consumer goods. This is the same number of households as in the entire urban sector. The average income of urban households is probably more or less the same,
which is why they consume the same volume of consumer goods. But this relatively small rural market is growing rapidly and may double in size in ten years time. It will then require twice a many goods as it does now, that is, twice as many soaps and detergents, twice condoms and blades and twice as many as many refrigerators. In terms of purchasing power, the rural
market is half the size of the urban market. But is may soon omstrip the latter. According to a number of surveys, the disparity in the incomes of urban and rural households is narrowing, though it is still quite large. But population-wise, village India is there to four times the size of urban India and this is what makes the difference. There are also signs that in the case of several products the urban market is reaching saturation point. In 1989, Hindustan Lever, the biggest foreign company operating in India, made almost 50 percent of its sales in rural areas.
Its sister company, Lipton, which specializes in tea marketing has captured a sizeable chunk of Rs.214 crore packaged tea market in rural areas. It is believed that in the Nineties, half of all consumer and durable goods will be taken up by villages, whether it is soaps and toothpastes Scooters and T.V. sets. There is foreign companies like Hindustan Lever or Brooke Bond. A.I. Korba, in his article on Rural Markets in News time, repots that Multinational Companies are going deep in rural India to sell soaps, detergents and toiletries. Hindustan Lever, Proctor and Gamble and even Indian companies like Tata and Godrej are on the band wagon to sell packaged consumer goods to the rural market. Gandhi said that India lives in its villages. The modern marketers are realizing that truth now. The media too has taken note of the booming rural market. Villagers are also getting more sophisticated it seems. They bought over Rs.70 crore of premium soaps costing above Rs. 5 per cake. Ad Agencies are also gearing up for the marketing warfare in this sphere. In 1988 Toothpaste worth Rs.45.5 crore was sold in this market. Safety razor blades costing Rs.42 crore and surprisingly Rs.66.5 crore worth of cosmetics were also sold in the rural market. Soaps, tea, blades, biscuits, textiles, radios, bicycles and many other consumer goods have always been sold in India. Any Fernanders, in the Times of India reports on the burgeoning rural market observers
no organized attempt at studying the rural market except by
that a growing segment of consumers
are buying up anything from coffee to cold cream and soaps to sarees. In 1989 23% consumption of hair oil and hair dyes came from the rural market. Shampoos account for 6.5%.The rural women is now more outgoing. The study of pathfinders shows that there is a trend in more progressive villages among younger women in Maharashtra to shift from 9 yard to 6 yard sarees and from Cotton to Synthetics. 70% of the population (around 560 million villages) is rural and only for this 8million household customers. It is viewed only as the tip of the ice berg.
There are a whole lot of villages in India who don't even know what tablet looks like And if people have been talking about selling in the rural markets, the question to ask is which rural market? The one with a population of 5000 are the one with 500. The amazing fact is what this minority of 8million consumers have bought in the last few years. 35% 14" black and white TV, 61%cassette recorders, 72% portable radios, 54% table fans, 31% Electric stoves, 41% Irons, 71% Mechanical wrist watches, 49% Quartz wrist watches. The pundits forecast, that in the next ten years, the children will be calling the shots in the market place. They'll tell their fathers which toothpaste to buy and which sarce best. Earlier it was up to the shopkeeper to who decided which product was to be given. Exit the age of look-alikes and spurious products. In the nineties, the rural market is expected to touch Rs.5000erores. All the marketing big-wigs have opened rural-marketing division. The surveys have indicated that the rural folks are making a bee line for these fancy soaps. Hindustan Lever is getting 20-25 rural market, percent of its sales from the a proportion which they want to double in the years to come.
In an article on Rural Markets in the Sunday observer (April 28-May 4, 1991) it is reported that the latest aspirant to the burgeoning consumer Boom is India's ruralite. Rising aspiration levels resulting from better education; a desire for social mobility; an exposure to the electronic media; and the filtering of industry into back ward areas have all provided a new marketing impetus aimed at the country's six lakh villages. Right down the line companies and consequently advertising agencies are reading the writing on the wall. If the price is right, the villager is willing to chase symbols of urbanized Utopia. Television sets, Watches, Pens, Motor Cycles, Soaps, Shampoos, blades, Toothpastes, even the ubiquitous sachet revolution are all
attempts to capture the rural markets which liberal tax Rs. 3500 crore for fertilizers and Rs. 2200
are having vast potential. Three good monsoons, crore for food grains, Rs3500 crore for fertilizers
exemptions and government subsidies to the tune of Rs.2200 crore for food grains,
and Rs. 2000 crore for power supply to rural areas- representing a hefty 60 percent of resources allocated to development expenditure- have made the rich farmers, richer and added muscle to the hitherto cautious spending by even the small farmer. Since the villages have a common washing area, purchases like Toilet soap and Toothpaste, which are usually kept private in an urban house hold, are known to all It provides immense status to brush teeth with toothpaste or use a detergent to wash clothes. Not surprisingly 50 percent of the total sale of soaps is in villages.
It has been pointed out in
an article titled "Rural Markets in Action" by Y. Krishna
Mohan Naidu published in the Quarterly Economic Report of Indian Institute of Public Opinion (July-September, 1991) that the rural market in India offers large scope on account of its sheer size. It is fascinating that the rural market with its vast size and demand base, does offer greater opportunities to marketers. On account of its vast potential it occupies an important position in the total market of India. Today one finds a large number of commercial banks and co-operative banks operating in the rural areas and encouraging the habit of savings among the rural folk. Around 70-75% of the rural households are saving a part of their Incomes. Today a sparkling tube of toothpaste occupies a place of pride in a rural household instead of neem twigs which were popular earlier. Sales of Toilet soaps, Talcum powders, Toothpastes, Blades, Shampoos, Face creams, Tooth powder, hair oils etc. are increasing in Geometrical ratios as compared to the Arithmetical progression in the urban areas. It grew tremendously during the years 1985-1995. There is "Demand Explosion" in the rural areas for persona care products. growing at Studies reveal that consumption of the above goods is a faster rate as compared to the urban market. It is also believed that the
rural market will soon surpass the urban market and emerge as the opportunity area of the future. lt is certainly an excellent area for investment and the working results of Hindustan-Lever, Proctor and Gamble Godrej, Colgate-Palmolive, Liptons. Geoffrey Manners are enough evidence to prove a potential underline in it. The change in the
buying and buying and consumption patterns of the rural consumers, imbibing of new ideas, attitudes and way of life have added to new dimensions to the rural market demand. Special programmers like IRDP, NREP, Respect formulated by the government has improved the status of the rural folk. Co-operative banks are playing very constructive roles in extending adequate credit facilities to the Businessmen in rural India, who are able to stock more products and are creating an effective distribution network. It appears to be a new Gold mine for the marketers of persona care products. It is believed that now the name of the game is to "Go Rural". For certain products it is totally a virgin market. There are high regards waiting from this market. Thus it is a market meant for the truly creative marketers. It is out and out developmental marketing. A.K. Ganguly in "Rural Marketing Strategy attempts to explore new areas" argues that the rural sector which encompasses about 80% of the total population spread over six lakh villages has been completely ignored by the majority of our business houses. Hundreds of products are now being sold for the first time in the rural areas. With the increase in purchasing power, greater prosperity and changing life styles of rural consumers there is greater opportunity o market a variety of products in rural areas. But to succeed in marketing a proper assessment of the market is very necessary. A well conceived rural marketing strategy would involve proper understanding of the consumers and planning the product to suit their needs. Consumer research has a key role to play in tapping the rural markets. The author provides many guidelines for small firms regarding how they can successfully exploit the growing market opportunities in rural India. Mandira Dutt Balakrishnan, in the "Rural Marketing: Myth and Reality" an article on excellent potential in Rural Markets argues that out of the six lakh odd villages in the country only a few with greatest sales potential concerns the marketing man. Even among these, he should concentrate on the feeder market villages. Despite, the disparity and the concentration of affluence in rural areas, the number of rural consumers who can afford branded products is nevertheless equal to, if not more than, the number of such urban consumers. The existing rural market is examined here, its development anticipated, and the arrangements and methods of popularizing and products in the country sides examined. A.S.Ganguly in his article
on "The Growing rural are vast and yet
market in India" strongly believesural market offers opportunities which
relatively untapped. He analyses rural target population and highlights their increasing purchasing power. He considers rural marketing illustrates this point with the example developing the rural market. as an investment and not expenditure. He Levers. Further the article highlights of Hindustan
the problems in regard to distribution, promotion and product planning in the context of
intangibles(including puppet shows, folk culture, arts/ paintings etc.,) not meant for immediate sale but helping to develop awareness of rural situations. Neelamegham in his book entitled "Marketing in India" mentions that- Bulk of population live in villages. With the increase in greater opportunities to manufactures of several marketing and advertising strategies based dependence on V. Mukund India's
purchasing power and the consumer and industrial products in
demand for a wide variety of products by the farmers, the rural market offers new and India. But to tap this vast expanding market, companies need to develop effective on their study and understanding of rural consumer behavior. entified that there is abundance of Natural resources and there is high them for a large number of household needs. There is differential access to Das and Sudeep R. Ghosh in their article rural as markets ,as are a periodic in the of Economic Times people marriage for the resources, high dependence on them for a large number of household needs. (Junel3th,1984)view Tangible as well concourse For
purposes of buying and selling, i.e. exchanging goods, services and even ideas. Intangible exchanged. example, selection finalization may take place in a market situation. When we say a periodic concourse of people, of periodic
there are two implications, one of time and space that is a natural corollary market. India has almost 5, 76,000 villages. 80 percent of
concourse and the second a combination of individuals- units of consciousness, to make any which have a population less than 1,000 and about 77 percent of whose population are dependent on land based activities. In this space zone figuratively, the country hast 4,500 regulated markets, 22,000 primary rural markets, about 1.5 million rural sales outlets and about 60,000 fair price shops. Some of the typologies of rural marketing would be based on: Output (agri) including cash crops- Input (agri) like
durable and non-durable intermediate consumption items like oil, pumps, generator sets, tractors etc. Rural cottage and artisans based goods money market. Rural labor market battle (live stock) market etc.
2.1 ABOUT THE RURAL CONSUMER
The rural consumer is discerning and the rural market vibrant (Adi Godrej, Director Soaps)"The rural market is not sleeping any longer, we are". "Go Rural" seems to be the latest slogan but before does this he must first ask himself the following questions. Is it really necessary to venture into the rural market, or develop it further if he already has which a presence? Does he have a separate strategy to crack the rural market is distinctly different from the urban one? Does he really understand the
challenges of the rural market?
Table I: Income vs. Usage of Packaged Consumer goods
(O/o House holds using) Monthly Household income ____________________________________________________________________________ Up to Rs.350 Washing Cakes/ 68
Rs. 351-750 78
Rs. 751-1500 86
Rs.1501 & above 91
Bars Toilet soaps Toothpaste/powder Talcum powder Tea (Packaged) 57 22 20 22 72 36 25 30 89 65 41 48 96 89 63 64
The rural consumer can be understood better with the following: i. ii. iii. iv. v. vi. vii. Size Location pattern Age-wise distribution Education Income Agricultural land holdings Savings
The Income Pattern of the Rural People: Table-.2: Pattern of Rural Income _____________________________________________________________________________ _ Sources of Income Proportion to total (%) ____________________________________________________________________________ Agriculture 58.8 Agricultural wages 16.1 Business & Crafts 8.8 Non-Agricultural wages 7.2 Salaries 2.5 Current Transfers 1.9 Others 4.7 __________________________________________________________________________ Total 100.0
The income pattern reveals that nearly 60 percent of the rural income is from Agriculture. Evidently, rural prosperity and the discretionary income with the rural consumer are directly tied up with agricultural prosperity. Anything that contributes to the agricultural prosperity will directly result in increased income for the rural people and a consequent increase in their capacity to spend. The predominance of agriculture. - The rural income and therefore, the rural demand, are relatively more seasonal. \ . Agricultural Land Holdings in Rural Areas: Table-3: Distribution of Operational Land Holdings _____________________________________________________________________________ _ Size class in hectares) Number of House Holds ('000) Percentage accounted for by the size class Area Aceounted by the size class ('000 hact) Percentage of the size class in terms of area
_____________________________________________________________________________ _ Below class 2.0 to 4.0 4.0 to 10.0 66682 12476 8078 74.6 14.0 9.0 2.4 42737 34533 48314 37174 26.3 21.2 29.7 22.8
10.0 & above 2157
_____________________________________________________________________________ _ Total 89393 100.0
_________________________________________________________________ The distribution of operational land holdings is essential to know how agricultural income is distributed over the rural households. Agriculture income being largely a function of the size of land holdings, the above skewed and there table will serve as a painter to the pattern of income that the land-holding pattern is highly distribution in the rural areas. The table shows
is a preponderance of small holdings. Nearly 75 percent of the land-
owning households are in the below four hectare bracket. Only 11 percent of the land-owning households category. For are found in the four hectare plus
a marketing man, this is the group that constitutes the relatively high even though in percentage terms, it
consumption group in rural India. The most significant point is that in absolute terms, this group consists of 8 million households, constitutes only 1 I percent of the total.
(vii) Savings Pattern of the Rural Consumer: The rural consumers save in a big way. This is due to the banking habit developed by the commercial banks and co-operatives in the rural areas for quite some years. Today as much as 70 percent of the rural households are saving a part for their income. The habit is particularly wide spread among salary earners and selfemployed non-farmers.
Table-4: Spread of Saving Habit among Rural Households _____________________________________________________________________________ _ Group Spread of Saving Habit (%) _____________________________________________________________________________ _ Farmers - Self Employed 32 Non-Farmers Self employed 64 Salary Earners 91 Wage earners 45 All Rural households 69 ___________________________________________________________________________
2.2. ATTRACTIVE FEATURES OF THE RURAL MARKET/RURAL DEMAND: This will be explained as follows: i. ii. iii. Size of Rural Demand Composition of Rural Demand Products already Established and products that have entered in the recent years in the Rural Areas. i. Size of Rural Demand: The size of the rural market in the non-food been around 2.5 below shows how the demand has progressed from time to
percent. The table given
time. In 2007-2008 it was Rs. 15000 crores. ii. Composition of Rural Demand: This is another striking feature in the scenario of rural demand. It has been changing significantly. Many new products have entered the consumption basket of the rural consumer; the relative shares of the different categories of products in the consumption basket have also been recording a welcome change.
2.3 Product categories that are already well established in the Rural Market
_____________________________________________________________________________ _ Textiles Bathing soaps Washing soaps Medicines Hygiene products Furniture Cooking utensils Ornaments Jewelleries Beverages Educational Supplies Fertilizers Pesticides Tools & Implements Petrol
Oil & Lubricants Tractors Trailers Harvesters Pump sets Pipes& Pipe Fittings Bicycles Motorcycles Scooters ___________________________________________________________________________
In case of many consumer products, rural consumption is now larger than urban. The common perception is that rural India consumes only certain traditional and essential products and that the share of rural India in most other categories is meager, compared to the share of the urban market. This is a wrong impression. Figures speak for themselves.
Table-5: Rural Share of all India Sales of Selected Products/Services Product Rural Share (%)
Bicycles Safety Razor Blades Earnings from Bus Silk clothing Railway Passenger Earnings Books & Stationery Woolen Clothing Consumer Durables Small Savings Earnings from Cinema Shows
80 67 66 59 57 55 53 53 50 67
RURALCONSUMERS OF INDIA:
1. Large and Scattered Market: In terms of number of consumers, the rural market of India is a very large market. It consists of more than 600 million consumers. In terms of business volume, it is a big market. Rs. 18000 crore worth of non food consumer goods are being sold per year in the market at present. In the geographical sense, it is a very vast market. Practically, the entire country mines the metros and towns constitute the rural market. It is a highly scattered market. The consumers are scattered over 5,76,000 villages spread through the length and breadth of the country.
2.Rural Demand is dependent on Agriculture which is Seasonal: Demand in rural areas is heavily dependent on agriculture. And corollary, it is also seasonal in character. It is irregular as well as a natural
as agriculture in many
parts of India still depends on the vagaries of the monsoons. Rural demand is not only harvest linked but also festival linked- The festivals often coinciding with the harvest. 3. The Standard of Living is Low:
Low purchasing power, low standard of living, low per capita income, low literacy level and overall economic and social backwardness are the common traits of the rural consumers.
4. Great Diversity: The rural consumers are also vastly diverse in terms of cultural and linguistic factors. The diversity is manifest in a more intense manner among the rural segment. 5. Steady Growth which is encouraging: Despite certain inhibiting features, the rural market has grown steadily through the years. Many new products have made their entry into the rural consumer basket. The upper segments in particular have started buying and using a variety of modern consumer products which were till recently unknown in the rural market. In fact, the impression that the rural market is confined to certain traditional consumer products and agri-inputs has totally lost its validity in today's context. The factors triggering off the change are:
1. The concerted effort at rural development i.e. large outlays committed in plans by the
government in agriculture, irrigation etc. 2. The green revolution in the agricultural production in the country. Rural India generates 170million tones of food grains per year. Obviously, rural India is acquiring a new power.
3. The expectation revolution among the rural folks i.e. "rising expectations" of the rural
people influenced the marketing environment of rural India. It bought about a powerful change in the environmental dynamics. It enlarged their motivation to work, earn and consume.
hopes; it strengthened their
PERSONAL CARE PRODUCTS-INDUSTRY PROFILE
This chapter makes an attempt to throw light on the personal care products industry. It is assumed that this chapter would give a full fledged coverage of personal care products. A study of the personal care products Industry is important as many products under this category are having tremendous potential in rural areas. It starts with the basic concept of personal care products. Then comes the concept of cosmetics. The various types of cosmetics, evolutions over the ages, the modern scenario, have all been dealt within this chapter. The personal care products in rural areas of India have also been reviewed in this chapter. It provides a deep insight into the concept of personal care products which of late have become the "Magic Wand” of several companies selling personal care products. Some tables are given to show how the rural markets have grown in consumption with regards to personal care products over the last few years. Thus a study of personal care products industry is of paramount importance as it explains what personal care products are and what are the various items included in this specific category.
ABOUT PERSONAL CARE PRODUCTS INDUSTRY: Under the definition of personal care products, taken in this study, different allied products of cosmetics, perfumes, toiletries, hair oils etc., have been taken. In Indian Business and Industry these items are considered to be in different categories, as if they are three separate industries.
1. 2. 3.
Personal Care and Cosmetics Toiletries and Perfumery
The first category includes creams and lotions, tales and face powders, deodorants, shampoos, hair dyes, depilatories, nail polish, lipsticks, and all items of face make-up. The second category includes soaps (toilet and laundry soap both), synthetic detergents, hair
oils, toothpastes and toothpowders. PERSONAL CARE AND COSMETICS: This industry does not enjoy the status or standing it deserves. One indication of this is that it still continues to be a part of soaps and toiletries industry and the manufacturers in the organized sector of the industry are members of the Indian Soap and Toiletries makers association (ISTMA).The personal care products chosen for study consists mainly of items like Talcum powder, toothpastes, toothpowder, face creams, shampoos, lotions, hair dyes. There are about 30 units in the organized sector. The important ones of them are Hindustan Lever Limited, Procter & Gamble Ltd., Lakme Ltd., Tata Oil Mills, Pond's India Ltd. J.K Helene Curtis, Colgate Palmolive, Geoffrey manners, Balsara, etc., The annual production from 1981-82 is around 13000 tones. This accounts for hardly about 30% of the installed capacity. There are a large number of units in the unorganized sector. They account for about 40% share of the total market. The industry has been subjected to progressive tax increases since the early1990's.Its problems, however, began in 2004 when the government doubled the Excise duty on its products to 60%. This had an immediate effect on production and sales of personal care products. In 1979, the Janata government raised the excise duty further to105%. This had almost a crippling effect on the industry. Important products like shampoos, tales and creams suffered badly. This is evident from table given below. Experience in other countries has shown that with a rise in per capita income, there is an increase in the demand for cosmetic products. In India, too with growing urbanization increasing disposable income, improvement in standards of living and the emergence of women in many spheres of activities, there is a growth in demand for these products and the industry is expected to grow sharply. indicates that cosmetic and personal care products are no more the privilege of the very large cities. Its use is new percolating into the small towns and even in the regions where agriculture is prosperous. They are also penetrating the rural segments. The growth of the organized sector is, no doubt, extremely slow because it has got to around 110 per cent excise duty and their products cater only to one sector of the population i.e. the higher income group, but the mushroom growth of small units proves the expansion in market. The worst thing is that spurious products are sold to
the poorer people who use them, may be for the first time. Many of them are illiterate but they have an urge to use a cosmetic and buy it without knowing what they buy. The big units are demanding an excise-cut through their association (ISTMA) to overcome the problem.
Toiletries: In this category soaps and detergents are most important. The major raw material in soap making include 1. Edible and non-edible oil (Vegetable based) 2. Alkalies 3. Salt and 4. Additives such as sodium carbonate, sodium silicate, preservatives, colouring agents, perfumes etc. The major raw material needed for detergent is linear alkyl benzene or detergent alkalyte.
There are 48 units in the organized sector manufacturing soaps. Installed capacity and production Statistics have been presented in the following Tables: Manufacturer of laundry is reserved for the small scale sector and therefore it does not figure in the table. India is one of the largest producers of soaps and detergents in the world. Its total production is about 10 lakhs tones of which 3.5 lakh tones constitutes toilet soaps. Though there are 5200 units in the small scale sector, these contribute very little in the manufacture of toilet soap. However they account for 70% of the production of synthetic detergents in the country. Of the total production of soaps and detergents, nearly two-thirds come from the small scale sector. But in spite of the high volume of production, the per capita consumption of soap is very small. Detergents have made in roads into our homes for cleaning floors, utensils etc. Toilet
soaps are available in two varieties namely premium and popular. The premium variety includes medicated products (like neem and carbolic soap). The difference between the premium and popular varieties is mainly on two fronts: and are of reasonable quality in general parlance. premium
soaps are highly priced and these are considered to be of quality. Popular varieties are cheaper
The washing segment also classified into detergent and oil based laundry soap which is popularly known as washing soap. Detergent is a synthetic product and is based on petrochemicals. The small scale sector dominates the laundry soap scene, meeting about 75% of consumer demand. On the other hand, the organized sector controls 6070% of the synthetic detergent markets. Since a few years production of synthetic detergents has risen in the small scale sector and cottage industries in Gujarat and other states and it is thought as a challenge to the organized sector's growth. The cottage industries are exempted from excise duty since many of them are producing without the aid of power. These products are cheaper irrespective of their varying qualities. Products like "Nirma", which are considered equally good, are growing in demand.
Hindustan Lever Limited is the biggest producer in the country manufacturing soaps, detergents and toilet preparations. In 1976,its sales increased by 2% over the previous year and since then the demand for all the products continued to be buoyant and supplies were made despite storage of several inputs. The new products launched were "wheel" (detergent bar) in 1977, "ship" (low priced soap) in 1985 and "caress" (high quality complexion care toilet soap) in 1986. The production of soaps and detergents has risen sharply. It is given in table below: The washing segment is also classified into detergents and oil based laundry soap which is popularly known as washing soap. Detergent is a synthetic product and is based on petrochemicals. The Small scale sector dominates the laundry soap scene, meeting about 75 percent of consumer demand. On the other hand, the organized sector controls 60-70 percent of the synthetic detergent.
Since a few years production of synthetic detergents has risen in the small scale sector and cottage industries in Gujarat and other states and it is thought as a challenge to the organized sectors growth. The cottage industries are exempted from excise duty since many of them are producing without aid of power. These products are cheaper irrespective of varying qualities. Products like "Nirma", which are considered equally good, are growing in demand. Tata Oil mills Company Limited (TOMCO) Manufacturers hair Oils, Toilet and Washing Soap, Toilet articles. industrial perfumes, detergents etc. Some of the trade names used by Powder. Nahan, Hamam, Jai, Moti for toilet the company are '501 special' for Soap Soaps and saikaso and Magic for
Detergents. In the subsequent year, the company Launched new products, Like Lask (detergent Tablet), Creasil (Carbolic Soap), Ok (cube Soap), BAN (Scaring powder) and Raindrop (Premium Soap).
Hindustan Lever has established two new factories in Uttar Pradesh its capacity for manufacturing soaps and detergents on a large scale. Projects have been set up in West Bengal and Pond cherry in Medak district of Andhra Pradesh another Unit for detergents with 13,000 tones capacity has been setup. A capacity for turning out toilet soaps will be 30,000 tones annually. Hindustan Lever has got a strong R&D Base which is the largest in Private Sector (1989 expenditure Rs. 4.71 crores). Its sales for 1989 are Rs. 1,323 crores. In 1991 it’s Vice-President (Marketing) Siddhartha hunnu' Sen., said that their capacity was looking at 100,000 tones growth every year. In its search for low cost options Lever struck gold in the leasing of sick units. Today a substantial chunk of Lever detergents and soaps are manufactured by different units in different states. For 32 years. Godrej Soaps stood for just one brand: Cinthol. But over the last five years the company introduced around 8-10 new Toilet Soaps including the famous Cinthol Lime. Godrej's strength lies in the technological edge it possesses- in
manufacturing and especially soap finishing. This company is fairly strong in Market Research and it is known for dispensing test marketing in the interest of Speed. Adi Godrej, director of Godrej Soaps Ltd. Says that, "increasingly, we may have to avoid test marketing. For one cost is rising and for another if fore wants the competition". In 1987-88 Godrej has beaten
Hindustan Lever Ltd., in premium soaps, But the contests is still closed. The difference between the two is particularly marked in rural areas formerly perfumes were manly reserved as luxury for the rich but now-a-day. The large scale production and extensive distribution and the advent of synthetic perfumes have thoroughly revolution the perfumery Industry. Today all sorts of perfumes, ottos, essences, aromatic waters, cheaply, and their extended popularity must scented hair oils etc, can be bought be ascribed to their cheapness and
consequent accessibility to the common people who form the greater part of the population. India, Perfumery industry is one of the most ancient and honorable of the Indian crafts and even now India is famous for the special types of perfumes it produces. The field open to the perfumes is vast and varied. The appearance of synthetic substitute as doubtlessly affected the business in natural perfumes but nevertheless a very considerable demand, which instead of decreasing shows sign of increasing, exists for natural perfumes. Large quantities of wild odoriferous bodies are going to waste and at present Rose, and Jasmine, are the only two plants being cultivated for perfumery purposes. An in numerable variety of scents and perfumes are manufactured by large number of industrial units for the Indian market. The varied combinations of the hundreds of essential principals of perfumes give rise to numerous preparations which though not materially differing in kind are each characterized by a distinct odor. Almost every day a new kind of scented preparations launched upon in the market. Some of them charmingly appeal to the taste of the people and have thus a more or less prosperous career assured, while the others fail to catch popular fancy and are consequently given up in time. The principal classes in to which all articles of perfumery can be grouped and the chief purposes they are meant to serve are rather limited in number. They are the following. 1) Otto the concentrated principal of the natural flower. 2) Floral oil the preparation of oil laden with the scents of fresh- blown flowers.
3) Aromatic waters like rose water, Korea water etc. 4) Essential oil like sandalwood oil, lemon gram oil, Palma Rosa oil etc. 5) Essences from natural as well as artificial sources.
The Aromatic substances can be classified under three groups. 1) Material of purely vegetable origin like flowers leaves etc. 2) Materials of purely animal origin like musk, ambergris, caster and 3) Synthetic or artificial perfumes. A chain of chemical processes perfected in the laboratories gives birth imitations of the natural perfumes of certain flowers. Synthetic products range is extremely wide and many of the peculiar aromas characterizing certain natural bodies have been exactly or with a close approximation reproduced in the laboratory. Now a day some of the essential oils and the synthetic derivations representing those oils are freely used as substitutes for one another. civet.
3.2 THE CONCEPT OF COSMETICS: The best definition of cosmetics is that contained in the U.S. Federal Food Drug and Cosmetic Act of 1938 which stipulates that the term "Cosmetic" means: (1) Articles intended to be rubbed, poured, sprinkled or sprayed
on, introduced into or otherwise applied to the human body or any part thereof cleaning, beautifying, promotion attractive or altering the appearance; and (2) Articles intended for use as a component of any such articles;
except that such term shall not include soap. As per the Great Soviet Encyclopedia "Cosmetics are classified as cleansing, therapeutic, preventive and beautifying preparation. First three include deodorants (Tale's, Skin freshness) and products designed for care of teeth (toothpastes, toothpowders) the mouth (mouth washers), the face, the scalp and body (creams, lotions, soaps). Beautifying cosmetics or make-up include powders, lip-sticks, foundations, eyebrow pencils, eyeliners, mascara, rouge, nail-polish, brilliantine's and hair spray, color and conditioners".
The Encyclopedia Britannica also includes in the list of cosmetics all manufactures of beauty of beauty care and related preparations. But products intended to treat abnormal conditions have been classed not as cosmetics but as drug.
This encyclopedia divides the cosmetics into three main categories (1) Creams, lotions and emulsions for the care of skin and hair. (2) Make-up preparations such as powder, lip-stick, rouge and nail lacquer for beautifying. (3) Hygienic or toilet preparations (toiletries). A look into the different kinds of cosmetics, we find that the cosmetic preparations may exert a four-fold action, namely decorative, psychological, social and clinical.
3.3. VARIOUS TYPES OF COSMETICS: Decorative: The aim is to enhance the general appearance by minimizing the facial defects and directing attention towards individual qualities. If this aim is not always achieved it is generally due to the lack of artistic skill Properly applied, the cosmetics can, no doubt achieve in an otherwise uninteresting face. Psychological: The use of deodorants has achieved general scientific approval to have positive effects on many mental retardation problems. Many individuals suffer from distressing skin affections and I such cases the skilful use of cosmetics can often on the part of the user.
an astonishing transformation
or at least minimize the appearance of such
a condition and
after the sufferer's outlook on life.
Social: The availability of cosmetics and make-up facilities has probability done as much as anything else to break down the artificial distinctions of class. The standards of hygiene are steadily rising all over the world and soaps. Clinical: Cosmetics are used not for Camouflage but also for preventing a most welcome feature is the spread of regular use of Shampoos and toothpastes as well as
skin chapping, sunburn etc. Powders possess soothing and cooling properties and are of value in preventing skin maceration and infection in regions of body subject to heavy perspiration. The desirable improvement in hygiene produced by the introduction of dentifrices requires no elaboration. The value of sun screens in the case of persons exposed to excessive sunlight is becoming increasingly realized. The dermatologists and pharmacists have been quick to adopt the pioneer work of cosmetician in developing new emulsified ointment bases and lotions with the result that many of these preparations therapeutically effective. are not only more aesthetic in use but are more
3.4 EVALUTION OF COSMETICS THROUGH THE AGES: As per recorded History cosmetics have been used to create the beauty ideal of each passing age and for centuries a daily routine of beauty care has been an accepted ritual within a social context. The use of cosmetics far from being a
product of civilization, originates from an inherent and primitive human need for self decoration. As far back as 1,00,000 B.C. Neanderthal man is believed to have pointed his body and practiced tattooing, the earliest from of cosmetic mutilation, and at a later period the men of the New stone Age are Thought to have decorated their bodies in a similar fashion .However the original motivation behind pre-historic man's use of paint was quit different from that which inspired civilized cultures to adopt cosmetic artifice as a means of enhancing or creating beauty. The history of cosmetics is generally classified into four ages:
1. Primitive society.
2. The Middle East especially Egypt and Mesopotamia. 3. Greece and Rome. 4. The Modern Era. The primitive man painted the markings of the most powerful animals on his own skin because he believed that by representing their physical characteristics on his body he acquired some of their power. This magical strength could then be used spiritually to dominate creatures of the animal world and to impress his own kind. Body and face painting played an essential part in their ceremonies as it was used as a form of stage make-up by dancers and singers enacting specific magical role within the ritual. Different patterns and colors were used to define these roles and each primitive tribe developed its own design forms which varied accordingly to the ceremonial. The elaborate forms of cosmetic mutilation such as tattooing plucking out facial and body hair, filing teeth and deliberate deformation of physical features were based on the extraordinary idea that one must suffer to be beautiful. It is an interesting fact that all the early cultured people accentuated the eye, giving it prominence over any other feature of the face. It has always been referred to as the mirror of a man's soul and in the ancient world was a symbol of both good and evil. It was thus logical to give it special importance in face painting.
In the history of Middle East, the make up of ancient Egyptians deserves special mention. The handsome Egyptians of both sexes used to ring their eyes, with a dark green cosmetic or outlined with black paint thus making their appearance more exotic. This also had a medicinal purpose. A copper substance used in the point guarded against suppuration of the eyes due to the intense glare of the sun and acted as a preventive measure against eye diseases which were prevalent during that period. For this reason children as well as men and women were encouraged to use "Kohl". Apart from the eye decoration, the aristocratic Egyptian woman was very particular to the rest of her toilet. Her cheeks and lips would have been dyed with a mixture of red ochre combined with fact or oil an in the case of rouge reddened with a little gum resin was added as an ingredient. The palms of her hands and her finger nails were a dye made from henna cleansing creams, used to preserve her skin in good condition were made from animal or vegetable oil mixed with lime of chalk and soothing ointments were compounded of fat, wax and powdered lime stone. Thee cosmetic concoctions were always scented with crushed flower petals, aromatic spices and perfumes to render them pleasant to use. Aristocratic men also made use of the same wide range of cosmetic materials especially aromatic oils and ointments. The ancient Egyptians used depilatory devices like creams, razors and pumice stones to rid their bodies and heads of hair. Both sexes shave themselves bold wore elaborated wigs. This was an excellent preventive measure against infection whilst maintaining a degree of comfort in the hot Middle Eastern weather. The Egyptians are reputed to have bathed several times a day and Herodotus states that they set cleanness above seemliness. Each bath was followed by liberal applications of perfumes and unguents. Their heads were also anointed with sweet smelling perfumes. The neighboring Mesopotamian culture shared a basic similarity with its Egyptian counterpart in employing the use of paints and perfumes; but unlike the Egyptians, Mesopotamians of both sexes grew their hair to nearly waist length, after which it was elaborated dressed and artificially curled into extravagant styles. Beards were also likely curled into numerous shell-like whorls and were frequently interwoven with gold thread. Both sexes dressed their looks with aromatic oils, scented them with perfume and if a variation in color was desired used dyes made
from Cedar oil, alum and anthems. Vast quantities of perfumed incense were used in ceremonials The similarity in their aesthetic attitude to hygiene combined with there
sophisticated use of cosmetics and perfume allows one to assess collectively the habits of these Middle Eastern Civilizations in regard to beauty. There is no doubt that these man and women of antiquity created an atmosphere of mystique around the toilet. There highly developed use of face paints and perfumery set the example for a beauty routine which was fallowed throughout the ancient world for centuries to come. The ancient Greek and Romans had a more refined approach to cosmetic arts. The Greek women used few cosmetics perhaps do to the masculine orientation of cosmetics of the Grecian society. In many cases she used no facial make-up but if she wished to enhance her looks with cosmetic, she colored her cheeks and lips with a vegetable dye made from a root named polders. Dyes were frequently employed to change hair color. Bathing formed an essential part of the daily toilet and aromatic oils and perfumes were also employed. The Romans absorbed Greek ideas on cosmetic care but surpassed them in many respects. Roman ladies began their days by a detailed bath with dentifrice and depilatory creams involving a message and rubdown with scented oils. After her bath she was served by her ornatrix, a skilled hand maiden with a range of cosmetics paints and implements to complete the final stage of her mistress's toilet. The dressing table was covered with elegant caskets, boxes beautifully fashioned cosmetic jars, scissors, files, ivory curry combs and polished paper, silver and even glass hand mirrors. Both sexes devoted several hours a day to the care of their bodies and the embellishment of their faces by cosmetic means. Roman ingenuity in design was evident in the manufacture of every form of toilet implement and beautifully fashioned containers. In their attitude to hygiene and their use of perfumery and beauty preparations the Roman set a standard of civilized, elegance which can scarcely be rivaled by any culture. The modern scenario : In late centuries the extra-vagence in dress and cosmetic fashions declined and a new style of appearance evolved which heralded a return to elegance. The painted beauties of the previous age were changed into a make-up of a soft and subtle consistency.
Delicately colored rouges replaced the crude dyes. Finer blends of power from natural material were manufactured for the mass market, but in only three basic shaded - pink, natural and Rachel. Endless research was devoted to the most popular cosmetic, the lip-stick. A large part of the salary of a working lady of Europe was spent on cosmetics especially on face power and manicure preparations, vanishing cream, toilet soap, cleaning lotion, night cream and lipstick. Perfumes were imported in all western countries from France but these were far too expensive for the ordinary peoples, however, later on it was sold in small bottles to reduce its retail price. The healthy competition between cosmetic houses and toiletry manufactures, which were intended on capturing the attention of the mass market, resulted in an enormous increase in advertising. The largest portion of this expenditure was concentrated on toilet soaps, skincreams, dentifrices, and perfumery, face powder and manicure products. Cosmetic houses began to realize that although advertising was a successful method or encouraging sales of their preparations, attractively designed containers and packing were equally important. The new large range of attractively packaged cosmetic products presents the contemporary women with a bewildering variety of choice but magazine and beauty books were quick to provide there readers with hints on which kind of preparation to use for their individual needs or what style of make-up was best suited to their particular type of face. The cinema began to have a positive influence on feminine looks and the style of film stars was carefully copied. The women hand became more conscious about their beauty care. The unprecedented variety of cosmetic preparation on the market resulted in an extra-ordinary diversity of beauty advertisements. Selling their products was an understandable obsession with beauty houses. Advertising agencies, market research experts and public relation consultants were employed to help in the promotion of new cosmetic ideas. Attractive packaging in acrosol containers, plastic tubes and neatly designed cosmetic jars was an essential part of any promotional campaign. Clever advertising copy and exciting visual presentation could make all the difference between the access or failure of a product.
However one of the most important selling features of a toiletry commodity is minds of the buying public. The recent trend has been towards the use of more make-up, with particular used in skin foods. A vast store of human energy is devoted to the attractive
individual product name. this can conjure up an image or create an association of as in the
basis on face. new and
Scientific research is now accepted and expected. For instance, hormones are being increasing invention of name for cosmetic products. An apparently simple problem such as how to make a
golden lip-stick which is non-toxic may take a laboratory full of technician's months to solve. Demand for or interest in a fresh colour or a new form of container must be carefully inserted. Plastic through once confined to face lifting is now the solution for women of means wishing to correct defects ranging from protruding ears to babbly shaped breasts. The newest and most revolutionary trend, however, is the increasing use of cosmetic by men. Lotions for use before and after shaving, special talcum powers, deodorants, hair creams and self tanning preparations are all being increasingly marketed. Ultimately self adornment is the prerogative of women and it is towards the women that the skill of cosmeticians is predominantly directed. The profits in the cosmetic world are large and the demand for these items in the Indian market is ever on increase. If really good preparations can be made and offered in the market in an attractive style there is no reason why the Indian entrepreneurs will not be benefited by commanding a significant part of the cosmetic business.
3.5 Personal Care Products in Rural Areas:
There seems to be a tremendous potential in the Indian rural markets for cosmetics, toiletries, detergents, perfumes and other personal care products. The establishment of business ventures in rural areas will not only raise their standard of living,
but also cause the entrepreneurial renaissance in rural India. It will also arrest the rate of urbanization, which is because of many social problems. Mr.J.R.D. Tata observed that “if only 10 per cent more of the rural
communities were became regular consumers of products, a staggering bunch of new consumers would be added to the present market. The rural market offers a vast market for personal care products. Low priced products will be more successful in rural markets because of the low per capita income in rural India. The rural consumers from one homogeneous group with similar, needs, values and aspiration. In the geographical sense it is a very vast market. Practically, the entire country minus the metros and towns constitutes the rural market. It is a highly scattered market.
EMERGING TRENDS AND CHANGING SCENARIO IN RURAL CONSUMER BEAHVIOUR AND ANALYSIS OF RURAL CONSUMER BEHAVOIUR
The Rural Consumers form one homogeneous group with similar needs valuesand aspirations. With the increasing spread of rural Income, personal care products are expected to make substantial penetration into the lower income strata by the normal "Percolation Effect".
The factors contributing to increasing purchasing capacity of rural consumers are marketable agricultural surplus, Remittances, Government expenditure, and Disposal of industry. Now, the rural market is undergoing a sea change resulting from the multi- pronged activities undertaken for overall development of villages-agricultural revolution, with the urban areas, etc. All these have led to the creation of general a new and products will be on the increase. Significant changes have of life. The National sample survey, 17th round has revealed the increase in demand or non-food consumer products for household consumption. These are: Mill made clothing, bedding furniture, utensils, and upholstery, toilet articles, durable sewing machines, bicycles, ornaments, consumer goods foot-wear like musical been noticed in the changing buying spread of education, increasing banking facilities, introduction of electricity and increasing communication awareness for achieving a better standard of living. This is an indication that the demand for personal care
and consumption patterns of the rural consumers, imbibing new ideas, attitudes and way
instruments etc. It is observed that there are other items also which show increasing demand for consumer durables like radios, watches etc. semi-durables like domestic cutlery, hosiery etc. and non-durables like soaps, hair oils and other toiletries etc. It has been observed that the consumption of consumer durables and other costly items is more in prosperous agricultural districts and the demand is catching up fast with in the urban districts. Prosperity in the rural areas has opened up new opportunities and it is seen that quite a few business houses are on their way for capitalizing this marketing opportunity. Hindustan Lever has been marketing its personal Rural consumer care products in places is different from the having even less than 5000 population. The Rural consumer of today
of yesterday. He is very dynamic. He is an enlightened person with new
expectations. He needs a lot of convincing before buying personal care products. PROBLEMS OF THE STUDY:
It is difficult to understand
consumer behavior owing to the complexity of
behavior. Human behavior itself is so enormously varied, so delicately complex, so obscurely motivated that many people despair of finding constructing a science of human behavior. Marketers have tried to study consumer behavior through several techniques like DI's F.G. is no Interviews free unified, well work association, sentence completion story completion, picture etc., and propounded defined, tested theories of consumer behavior. There and universally established theory of consumer response, psycho-drama behavior. Each consumer is a separate individual with a unique personality. Hence there is complexity and variation. This makes the task of understanding consumer behavior Income, change in life-cycle stage and other factors. The communication, whether expressed or implied, does change the attitude. more difficult. Consumer behavior also changes over a period of time because of the change in valid generalizations to explain and predict the actions, thoughts, and feelings of human being-despair that is of the very possibility of
The greatest difficulty in studying consumer behavior is that the marketers try to probe the subconscious and unconscious levels of the human mind. The limitation with imperfect human being does not know about his subconscious and unconscious plans, as such, he himself does not know as to what he is an inner man. Thus, he does not understand or even know as to how and why he bought a particular product or its brand. Thus, Managers in charge of Marketing should be accustomed to applying buyer behavior information to their decisions. Buyer's action in markets cannot be predicted or diagnosed unless buyer behavior is used. The managers must know the ways in which buyer behavior information can help them. Consumer behavior is a very delicate aspect requiring careful handling and one can succeed only when it is aptly understood and ably tackled. Consumer behavior has to do with the activities of individuals in obtaining and using goods and services; but there is something more to it. It also includes the decision-Making processes that precede and determine purchases.
behavior, we have to consider not only what people buy, but where, how often, and under what conditions they make their purchases.
4.1 THEORIES OF CONSUMER BEHAVIOR:
Buyer behavior is an orderly process whereby the buyer interacts with his or her environment for making a purchase decision on products. It is the cornerstone of marketing strategy. Firms must understand buyer behavior to achieve the objective of customer satisfaction. Buyer's mind is called the Black Box. Inputs are processed in his mind and buyer's responses become the outputs of the psychological processes. The output in the form of buying a product is the objective of marketer. Researches have been carried out by individual firms, professional researches and contributed to multiple aspects of consumer behavior. Some of these ideas have taken their clue from economics, others from psychology, and yet others from several of the social sciences simultaneously. Many experts of human behavior have tried to help the marketer in dissecting the consumers mind. Each has studied it from his own angle. The relevant theories of following five heads: viz. i. The Economic Theory ii. The Physiological Theory iii. The Psychological Theories iv. The sociological Theories v. Other comprehensive Theories The above theories have been summarized as follows: i) THE ECONOMIC THEORY: The Economic theory of consumer behavior was synthesized by Alfred Marshal from the ideas of classical economists and the proponents of the theory of marginal utility. Marshall identified consumption with demand and was primarily
determination f market prices. The Economic theory is based on the assumption that the individual is a rational and he tries to acquire the item having the most utility or providing satisfaction relative to their costs and the consumers purchasing power. Price is regarded to be his strongest motivation. A number of economic Factors such as disposable personal income, consumer's income expectations, size of the family, availability of credit facilities and market nearness influence consumers in the ways they spend their incomes for personal consumption. Consumer behavior is a complex subject, which needs a multi- disciplinary approach. Hence, the economic theory of consumer "allocate their resources to maximize satisfaction, but they behavior is incomplete. It cannot that consumers seek to to measure have never been able be applicable in real world situation. Economists have often said
satisfaction or utility as it is often called. The economic theory deals only with price and income influence on consumer behavior and ignore many other aspects, such as perception, attitudes, motivation, and personality, learning process, social class and culture. The model attempts to explain how a consumer "ought" to behave. It cannot indicate how he "does" behave.
ii) PHYSICOLOGICAL THEORY: Consumer, the human being is a component of matter, mind and spirit. Each human being wants protection of and comfort to body and for this he purchases products and services. may While differ making from purchases, to the consideration Because of of this Physiological factors individual individual.
fact,, no authority has tried to propound a theory based on the physiological needs and the physical aspects of the consumer. Durability of the product, style and finishing, availability, quality awareness and familiarity, comfort, colour and designs are also the most important factors, which effect the consumer's purchasing decision. iii) PSYCHOLOGICAL THEORIES:
Psychology is the study of why human beings behave as they do and many of ts theories are useful in explaining the behavior of consumers as well psychological theories stress the study of human being, his motives, his perceptions, his attitudes, his personality and how he learns. All these factors are integral to an understanding of consumer behavior. The important psychological theories relating to consumer behavior are as follows:
The stimulus - Responses Learning Theories: The stimulus- response theory (S.R.Theory) is based on the experiments
made by the Russian psychologist, Ivan Pavlov, in which the feeding of a dog was preceded by the Sound of a bell and found that learning is an associative process. Experimental psychologists have continued this mode of research on animals and people. The process of learning is based on the four fundamental factors - drives, cues, response and reinforcement. Drives (needs or motives) are strong internal stimuli which impel action. Cues are weaker stimuli which determine the when, where and how of the response intended to satisfy the drives. The response is the action or behavior that results from the combination of drives and cues. Finally, reinforcement takes place when the response is rewarding (satisfying).When an individual relates specific cues to specific response learning takes place. If the response to the cue is rewarding the individual tends to repeat that response, when the drive is aroused again. Repeated reinforcement, leads to habit formation and the decision process for individuals becomes a routine affair. Habit is a repeated pattern of behavior. The S.R.Learning theory is useful, to the marketers of advertising strategy. iii) Gestalt Theory: This theory psychologists considers the individual and his environment as an indivisible with individual’s
new products and brands. To build up a
brand habit, free. Samples can be distributed. This theory also provides guidelines in the area of
whole and regards individual behavior as being directed towards various goals. Gestalt are concerned perception and understanding of their
total environment. Some useful refinements
in the Gestalt theory were made by Kurt Lewing
in 1930. Lewing postulates that man lives in a complex psychological field composed of many influences. A person's "filed or "life" space may be defined as the totality of existing facts pertaining to the individual and his or her environment at the time of behavior. For understanding consumer behavior, the marketer must understand all the environmental forces that influence consumer as they strive to satisfy their needs. The Gestalt theory, as applied to marketing, a substantial use focuses upon the way in which consumers perceive objects and ideas that confront them. Perception involves both attention and interpretation. When consumers feel difference between their attitudes and Consumers dislike dissonance and it advertising and other forms of are correct. perception, that results in cognitive dissonance.
adversely affects the marketers. Marketers can
promotion to convince consumers that their purchase decisions
SUMMARY AND CONCLUSION
5.1 SUMMARY AND CONCLUSION The present study is an empirical investigation into the market potential in rural areas in select rural areas. The selected villages are:
1.Seetarampet (Hamlet) 2. Mall (Hamlet) 3. Maheshwaram 4. Kothapet 5. Batasingaram 6. Aakushapur 7. Boduppal 8. Maisammaguda (Hamlet) 9.Singaipally 10. Rallaguda (Hamlet) The study has been carried out on the assumption that the performance of companies selling personal care products can be remarkably improved by managing attempt to suggest a policy framework, in the light of the the product in an general and promotional and distribution strategies in particular. Primarily the study is villages taken up for the study .
various potential In the selected
POTENTIAL AND SALES POTENTIAL:
Economic Potential: Economic potential is more important because of the increasing interdependence finding of national and international economic than ever. currents, organizations are it difficult to accomplish The economists formulate there forecasts.
In forecasting economic trends, organizations evaluate figures provided by government and independent economists for GNP, inflation and other variables potential and probable projections and make for economic activity during a particular time period (month, quarter, year). Fiscal and monetary policy, consumer spending, and stock-market prices are all analyzed and the results are used to forecast turning points in business cycles and to important indicators as corporate - profit levels, producer - and economy, especially consequences. Many since they assess the magnitude of rising or declining business activity. Economic forecasters also consider such consumer - price indexes, and unemployment rates. Finally political events are also monitored for their impact on the are often unpredictable and may have far-reaching economic forecasting systems start with the GNP, which is then broken
down into component parts. Market Potential : After a company arrives at an economic forecast, its next step is to evaluate market demand for its industry. Forecasting market demand begins with an assessment of market potential - that is, with the highest possible level of market demand in level is rarely, if ever, realized. competitors in the market will achieve only probable levels of market demand. Sales Potential: While the market forecast projects demand for an entire industry, the sales potential projects volume for a given product by a company, or one of its divisions, under an existing marketing plan. Market Forecast and Market Potential: a given environment. This maximum Usually, the total marketing resources applied by all of the a part of its potential. Therefore, besides the
highest market potential. market forecasters project a lower figure, which is more in line with
Market forecast will indicate the anticipated level of industry market demand that will probably occur on the basic of expected level of marketing efforts put in by industry as a whole under the given marketing environment. Market potential is the maximum possible level of market or industry demand. It points out the total possible sales available in a given area to all sellers of a product market demand. In estimating the (service) during a stated period of time, and under stated marketing environment. Additional marketing efforts have little influence in stimulating further size of a market for a new product (1) we may the following steps:
Define the Market population: The market is defined by laying down regional limits sex, income, occupation etc. in
and by demographic features of potential buyers. E.g.: age, case of personal care products. (2)
Estimate of Consumption Units: In each market segment we have to count the number
of buyers. It is not difficult to do so. (3) Estimate of Purchasing Power of Buyers: National Income cangive per capita income case of durable consumer goods such as car, refrigerator, air conditioner, electrical appliances
figures, disposable income figures. Ability to spend assumes importance in the and costly etc. (4)
Estimate of willingness to spend as a function (result) Planned Marketing Effort:
Will or inclination to spend is governed by psychological factors of buyers such as buying motives and preferences as well as the influence of marketing efforts made to stimulate the buyer's mind in flavor of purchase decision. (5) Estimate of the Rates of Purchase and Product Usage: users as well as big customers who demand special attention. (6) Total Market Potential: We can multiply the total estimated number of units by the rate Ability to purchase will to or light
purchase and expected marketing effort will give us the idea about heavy and medium
of purchase and product usage and the sum total is the total market potential.
In a competitive market, when a company is considering market potential for its new product, it will have to first estimate its market share which is itself the function (result) of planned marketing effort. From the estimate of market potential, the company can have sales forecast for the chosen marketing programme. For the total market demand for personal care product is forecast at 20 lakh units a year, a personal care product company's demand would be two lakhs units of care products on the basis of its market share at about 10 percent of the total. Market and Market Potential: From the view point of sales forecasting, the "Market" can be defined as "the aggregate demand of the potential buyers of a commodity or service". This represents the marketing man's opportunity to sell Market potential means "a calculation of maximum sales opportunities for all sellers of a good or service during a stated period". Of course the marketing manager of a particular company cannot normally expect to win over the whole potential for his company. He has to be satisfied with a share of this potential. Market Coverage: It generally refers to the geographical area covered by the marketing efforts. The sales and market share of an organization can be increased by more intensive sell more products to the same customer, the effort are described as intensive market coverage. Where increase in sales is sought by covering more customers, the strategy is described as extensive marketing coverage. Of course, both these strategies can be combined. Market Structures: It is the particular arrangement of market groups or segments from which a company's management selects target markets. Companies that sell similar products may see market structure differently. This can happen when companies see only part of a market structure or when they find new ways to describe market structure. How management sees market structure influences its choice of marketing strategies.
Market Requirements: It refers use of products. Market Development: It is the expansion of sales caused by companies in an industry using marketing to the expectations that customers want fulfilled by the purchase and
programs to make buyers aware of a product and to understand the benefits of using it. Figure: 6
The above external determinants of market opportunity combine with company marketing strategy to yield sales.
Market Opportunity: It refers to a situation in which a combination of factors creates the potential for sales of the company's product or service. environment and task environment of It is created by many factors in the macro a company. Yet opportunity remains only potential until The extent to which a
the company plans and implements marketing strategy to generate sales.
particular company can turn potential into real sales depends on its strengths and weaknesses. This explains why several companies going after essentially the same market can have different success in generating sales for strategy decisions: and market share. Four major categories usually prove to be pivotal
Structure of a market
Customer's market requirements
Competition for sales
The conceptual framework on Market potential suggests that there is a need for
underlining the importance of the market potential in rural areas. The concepts and various aspects discussed are applicable to the market potential in rural areas. The companies selling personal care products have to realize and recognize the need to assess the market potential in rural areas and accordingly develop proper strategies to tap the same. It may be noted that the various concepts presented in this chapter companies selling personal care products can act as a set of parameters within which the have to evolve marketing strategies. This exercise
mainly helps the companies to recognize the need for full fledged and effective tapping of market in rural areas.
The fortune at the bottom of the pyramid – c.k.prahalad The rural marketing – pradeep Rural marketing targeting the non- urban consumer – sanal kumar Rural marketing in India strategies and challenges – ruchita ramakrishnan
www.icmrindia.org www.ruralrelations.com www.goruralindia.com
ANNEXURE CONSUMER QUESTIONNAIRE MARKET POTENTIAL OF PERSONAL CARE PRODUCTS
SCHEDULE - A
A1. Name A2.Sex A3.Marital Status A4.Postal Address
: : Male______________ Female________________ :
___________________________________________________________ __________________________________________________________ __________________________________________________________ A5. Age Bracket; 18 years & below 19 years - 25 years 26 years - 35 years 36 years - 45 years 46 years - 53 years _________________________________________ _________________________________________ __________________________________________ __________________________________________ __________________________________________
Middle School High School Graduation Post – Graduation
_____________________________________________________ _____________________________________________________ ______________________________________________________ ______________________________________________________
Professional (Please specify) _____________________________________________________
Any other (Please specify) _____________________________________________________
A8.Employment Status (Please specify) i) If Sa lar led Private Sector _________________ Public Sector ___________________ Government ___________________ Educational __________________ Institution Service ______________________ Institute Any other ________________________ ii) If self Em plo yed
Entrepreneur ________________________ Industrialist________________________ Trading Business__________________ Agency_________________________ Agriculturist_________________________ Educationist___________________________ Any other ____________________________
A9.Monthly Income: (In Rs.)
2000 & Less __________________________ 2001 -3500 ___________________________ 3501 -5000 ___________________________ 5001 – 6500 __________________________ 6501-8000 ____________________________ 8001 & More _________________________
Name of the Family Member Age in years Sex (Male / Female)
_______________________________ _______________________________ _______________________________ _______________________________
Relation to the Head of the family _______________________________ Education Marital Status _______________________________ _______________________________
A11.Source of FUNDS and Use:
SCHEDULED - B
B1.Which personal care products do you often buy?
Personal care product 1. 2.
Name of Company
3. 4. 5. 6. 7. 8. 9. 10.
B2.Are you a regular buyer of Personal Care Products
B3. i) If Yes:
For how long have you been a purchaser of personal care products ?
Less than 3 years 3 years - 5 years 5 years - 10 years Above 10 years
______________________ ______________________ ______________________ ______________________
ii) If No: What is the reason for not buying? ____________________________________________________________
B4. What type pf 'Packs' do you usually buy?
Small Sachets 50 gms. 100 gms. 150 gms. 200 gms Above 200 gms. Any other specify
__________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________
SCHEDULE - C
C1. Do you find the shops selling personal care products:
Near Residence Far from Residence Near workplace Any other(Please specify)
______________________________________ ______________________________________ ______________________________________ ______________________________________
C2.Do you find the present availability of personal care products convenient?
Yes____________ No_______________ No Option________________
C3.Should the shops selling personal care products stock more variety than what they are doing presently?
Yes ___________ No ____________
Why __________________________________ Why __________________________________
No Option ______________________________________
C4.Do you most of the times, find the shop selling personal care products fully arranged with stocks? Too much of stocks are found ______________________________________ Sufficient stocks are found ______________________________________ Not sufficient ______________________________________ No proper stocks ______________________________________ C5.Are you getting a personal care products of your choice ?
IfYes: a) Is the choice available sufficient - Yes/No b) 1s the choice of colors sufficient or do you want some more attractive colors - Yes/No c)Are you happy with the size of pack d)Are you happy with the packing Yes/No Yes/No
e)Are you satisfied with labeling
f)Any other (Please specify) ______________________________________
C6.Do you get any help from the shopkeepers regarding product from information as And when required. Yes _____________ No_______________
i) If Yes what help do you often need from Them ______________________________________ ii). If No do you feel that information regarding products must be given in sufficient ways? (State your opinion).
C7.The display of personal care products in the shops is Very good ______________________________________ Good ______________________________________ Average ______________________________________ Satisfactory ______________________________________ Poor ______________________________________
C8.The appeal for personal care products in shops is Good ______________________________________ Adequate ______________________________________ Sparse ______________________________________
Tasteful ______________________________________ Moderate______________________________________ Bad/poor ______________________________________ Other (Please specify) ______________________________________
C9.Kindly Tick your option for the following statements:
Yes a)The personal care products presently are not up to mark b)The number of shops selling personal care products are not sufficient enough to meet the demand c)There is no awareness in your area for personal care products d)Schemes, discounts offers are very poor in your area e)The brand of your choice is not available f)There is no attention paid to the information needs. C10.The arrangement of personal care products in shelf of shops is: Neat ______________________________________ Shabby ______________________________________ Tasteful ______________________________________ Appealing ______________________________________ Attractive ______________________________________
Any other(please specify) ______________________________________
C11.What is your monthly requirement of personal care products. Fill in the Grid below ____________________________________________________________________________
Personal Care Products
Price per Pack
No. of Units
No. of Times Purchased in a Month
C12.Are you aware of the following PC Products? State whether you are currently Using them. ____________________________________________________________________________ Products Aware/Not Aware ____________________________________________________________________________ a) Toilet Soaps b )Detergent Cake c)Washing Powder d)Blades e)Shampoo f)Face Powder
Using? Not using
g)Face Cream h)Hair Oil i)Tooth Paste j)Tooth Powder k)Mouth Wash l)Hair Dye m)Perfume n)Nail Polish o) Kum Kum p)Lipstick q)Shaving Creams ____________________________________________________________________________
C13. Give any three Brand Names for the Products given below and also state the brand, that is being currently used ?
____________________________________________________________________________ Products Aware/Not Aware ____________________________________________________________________________ a) Toilet Soaps b )Detergent Cake c)Washing Powder d)Blades e)Shampoo
Using? Not using
f)Face Powder g)Face Cream h)Hair Oil i)Tooth Paste j)Tooth Powder k)Mouth Wash l)Hair Dye m)Perfume n)Nail Polish o) Kum Kum p)Lipstick q)Shaving Creams
C14.Whatis the source of Information for your purchases ? a) Friends
b) Neighbors c) d) e) Radio Ads TV Ads News Paper
f) Magazines g) h) i) Cinema Ads Hoardings Writing on walls
C15.Do you insist for a specific Brand at every purchase
Yes / No
C16.Place of Purchase of Personal Care Products ?
a) Village shop b) City purchase c) d) Mandi (Weekly Market) Hawkers
C17.Do you Always buy from the same shop?
Yes / No
C18. Frequency of purchase ? ____________________________________________________________________________ Products Aware/Not Aware ____________________________________________________________________________ a) Toilet Soaps b )Detergent Cake c)Washing Powder d)Blades e)Shampoo f)Face Powder g)Face Cream h)Hair Oil i)Tooth Paste
Using? Not using
j)Tooth Powder k)Mouth Wash l)Hair Dye m)Perfume n)Nail Polish o) Kum Kum p)Lipstick q) Shaving Creams ____________________________________________________________________________
C19. Do you Generally accept the advice given by Dealers ? a) Yes b) No
C20.State who are the decision makers in the case of purchase of the following ____________________________________________________________________________ Products Aware/Not Aware ____________________________________________________________________________ a) Toilet Soaps b )Detergent Cake c)Washing Powder d)Blades e)Shampoo f)Face Powder g)Face Cream h)Hair Oil i)Tooth Paste j)Tooth Powder k)Mouth Wash l)Hair Dye
Using? Not using
m)Perfume n)Nail Polish o) Kum Kum P) Lipstick q) Shaving Creams ____________________________________________________________________________ C21. Are you satisfied with the brand you are using ? a) Yes b) No
C22.Who is the active buyer in your family ?
a) b) c) d)
Husband Wife Children Others
C23.Are price discounts motivating you to purchase the products ? a) b) Yes No
C24.In case you are using personal care products of a particular brand what is it that you like most in it ?
Mention Product Item- wise
_____________________________________________________________________________ _ Personal Care Product it _____________________________________________________________________________ _ Reason for Liking
C25.The Consumer buying personal care products __________________________________ _____________________________________________________________________________ _ Yes No Can t say
i) Have full knowledge about them ii) iii) Have little knowledge about them Do not have sufficient knowledge about them
iv) Have absolutely no knowledge _____________________________________________________________________________ _
C26.Please state how important you consider each of the statement when you decide upon a brand of your personal care product. Please state how do you consider the statements as per the factors given below viz.
Very important Important
3. Not important 4. Not at all important
Toilet Soaps Statements
Not at all important
Freshness all Day long More lasting Sogginess Smooth surface Good lather Perfume Content
Detergent Soap/Washing Powder Statement
Not at all Important
Its washing the clothes white and bright Its washing more clothes Getting soggy Lathering well Being safe for clothes Lasting till the last Being safe on hands c) Blades statements Very Important Important Not Important Not at all Important Can't say
Should give a smooth and clean shave Lesser risk of cuts Good name Cheap price giving more no. of shaves Super edge for a neat shave
Not at all
That it gives full satisfaction of having a bath That it washes the hair smoothly That it is safe on hands That it relieves hair problems That it Lathes Well e) Hair oil Statements Very Important Important Not Important Not at all important Can't say
That it makes the hair growing long That it protects the hair That it makes hair black & thick That it keeps the head cool
Talcum Powder Statements
Very Important Important
Not at all important
That it gives A feeling of freshness all day long That it kills body odour That it keeps you active That it protects the skin That it adds beauty
Tooth paste/Tooth Powder
Very Important Important
Not at all important
That it kills germs That it protects the germs That it protects
the teeth from cavities That it removes bad breath
Very Important Important
Not at all important
That it adds beauty That it smoothens skin That it gives fairness That it is a giver of softness to face
Very Important Important
Not at all important
That it brushes the teeth meat and clean That it cleans bacteria accumulating on teeth That it massages germs and keep them free from bleeding C27.Who in your household usually uses the following: _____________________________________________________________________________ _ Product Toilet Soaps Detergent Cake Washing Powder Blades Shampoo Face Powder Face Cream Hair Oil Tooth Paste Tooth Powder Mouth Wash Hair Dye Perfume Nail Polish (For ladies
Users in Household (If No on uses write None)
only) Kum Kum (Bottle ladies only) Lipstick Shaving Creams Shaving Brush Any other personal care products being used (Specify) C28.Where do you see/have seen the advertisement for the personal _____________________________________________________________________________ _ Product Source of Awareness __________________________________________________________ PR C R H V SD PO DLR O
_____________________________________________________________________________ _____________________________________________________________________________ _
PR=Press V=Van O=Others
C=Cinema SD=Shop Display
C29.What is the motivating factor in purchasing the various personal Care Products:
Health/Beauty/Prestige/Any other (Specify)
C30.Do you like the personal care products being sold in your area or not. Please indicate on the scale provided.
I Strongly6 like them I like them somewhat I am indifferent I dislike them somewhat I strongly dislike them
+2 +2 0 -1 -2
C31.Please indicate on the scale provided, the position that indicates your opinion on each of the given statements. _____________________________________________________________________________ _ Statements Strongly Disagree Your Opinion Disagree Agree Strongly Agree No
_____________________________________________________________________________ _ 1. The personal care products Have really added new dimensions To your life. 2. The personal care products have Enriched your way of life
3. The personal care products are Putting the rural areas on the road
4. The personal care products are Really a blessing to the rural areas.
5. The personal care products Have tremendous potential in rural Areas in years to come. _____________________________________________________________________________ _ C32. Given below are a set of attributes.Kindly indicate on the scale provided; i). The important of the attribute (Personal Care Products in Rural Areas) ii).Your rating of the attribute. _____________________________________________________________________________ _ Level of Importance Your Rating
Impor Slightly tant Imp.
Satisfac Poor tory
They should be good in quality They should have a good brand name
They should be low priced They should have attractive features They should be available on a regular basis advertising is essential wide variety is a must regular visit by Company sales Staff promotional offers C33. Kindly Tick your Option: Yes 1. The companies selling personal care products should respond actively to the growing demand in rural areas. 2. 3. 4. 5. 6. 7. 8. The private village shops must be given credit facilities enabling them to stock sufficient personal care products. New outlets must be set up in rural areas. Shop displays are very important in increasing the sales of personal care products. Presently, there is a problem of availability of dealers. Costs of products are to be kept at reasonable level to increase purchases. Initially promotional offers should be very high. Top executives of reputed companies should visit rural areas and launch some new products to create awareness and stimulate interest.
Rural areas should have more access to personal care products through increased distribution network. Rural areas should be tapped effectively by formulating Advertisement strategies aptly matching the rural background.
11. A full fledged entry by companies is a must in place of halfhearted entry which is found presently.
SCHEDULE - D
Name of Retailer with Rubber Stamp
D3. Personal Care Products dealt by you
D4.For how long have you been a dealer of personal care products ?
Less than 1 year 1 - 2 years 2 - 3 years 3 - 4 years 4 - 5 years More than 5 years
_________________________________ _________________________________ _________________________________ _________________________________ _________________________________ _________________________________
D5.How do you keep the stocks of personal career products in your shop: (How many days requirement do you currently have)
Weekly basis Fortnight basis Monthly basis
_________________________________ _________________________________ _________________________________
More than one month _________________________________
D6.Are you going to the city for purchases or are you getting supplies in your area itself ?
Going to city Getting at shop itself Any other (Specify)
_________________________________ _________________________________ _________________________________
D7.Are you happy with the stocks you are getting from Companies in case you are getting supplies from them ? Yes/No
D8.Do you feel that you have good demand in your area for personal care products? Yes ____________ No ____________
D9.Do you think that companies selling personal care products must make more efforts than what they are doing now ? Yes __________ No __________
D10. Do you think that there is ample demand in your area for personal care products? Yes __________ No __________ Can't say __________
D11.Are sales of personal care products regular or only during particular periods ? If so please mention the period when sales are at peak. Regular Irregular __________ __________
Period when sales are at peak __________
D12.Are locally made unbranded goods competing with branded products coming from reputed companies : Yes __________ No __________
Dl3.lf Yes' please mention what may be the reason for their preference by rural consumers ?
SCHEDULE - E
El. Describe in your own words what you think of the following companies selling personal care products :
Hindustan Lever Limited Its service in your area Procter & Gamble Godrej Ltd. Its service in your area Colgate Palmolive Ltd. Its service Indian Shaving Products Its services Shingar cosmetics Limited Its service Geoffrey Manners Ltd. Its services
Any other company (Including Local Unbranded firms) Its services
E2. Give 5 suggestion that will help companies selling personal care products to serve you better.
1. ___________________________________________________________________________ 2. ___________________________________________________________________________ 3. ___________________________________________________________________________ 4. ___________________________________________________________________________ 5. ___________________________________________________________________________
Thank you for your esteemed and research friendly responses.
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