Rationale, Objectives and Hypotheses of the Study

Chapter -IV

Rationale, Objectives and Hypotheses of the Study

4.1 Rationale of the Study.

4.2 Objectives of the Study.

4.3 Hypotheses of the Study.

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 Rationale, Objectives and Hypotheses of the Study

Chapter -IV

___________ Rationale, Objectives and Hypotheses of the Study _______

4.1Rationale of the Study:

India is one of the fastest growing countries in this world and the awareness
level of consumers of India is also increasing day by day and the urban
markets are becoming more or less saturated as the companies are facing huge
pressures to find new growth engines and new markets and this has led to a
change in the way the FMCG companies are developing, redefining,
remolding their marketing strategies to capture the market in rural India.
Marketing strategies of FMCG companies in rural markets are very different
from each other as the way, they perceive the size of rural market, potential in
rural market, importance of rural market in their portfolio of markets, stage in
which the company in its present state. So it becomes very important to unfold
the real picture of FMCG companies operating in rural India.

The literature review conducted for the current research makes it clear that
very less research is done on rural marketing strategies and their consumer
behavior with respect to factors influencing the purchase and consumption of
FMCG, by the Indian rural consumers, either in general or with reference to
Indore District. Hence, it is decided to conduct a survey with reference to
marketing strategies of ITC and HUL (especially FMCG products) and
purchase behavior of rural consumers in rural area of Indore District.

A study of this type may be useful for both the companies and the other
companies operating in rural area for developing future marketing strategies
and also know about the best and effective marketing strategies in present

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 Rationale, Objectives and Hypotheses of the Study

scenario. A comparative analysis of their marketing strategies will help

industry players to incorporate necessary modifications in their present
marketing strategies. Thus, the present study is an attempt to find the answers
of research questions and provide necessary suggestions on the basis of
findings and their subsequent discussions. Therefore, this study has a great
relevance not only to existing FMCG companies operating in rural market in
which population low and also to new companies who wants to enter this large
untapped market and also to the students of management. The study examines
the relationship of marketing strategies and sales growth, overall profitability,
performance, customer response and proceeds to propose an effective model
for rural marketing for both the companies and also for the companies related
to FMCG. This study is an attempt to comprehend and distinguish the
significance of marketing strategies in the context of the rural people.

The FMCG companies are successfully employing the new forms of

marketing to target various types of customers, the current business and
customer trends are continuously creating new challenges as well as
opportunities for increasing profitability. The success of these strategies is yet
to be tested in country like India. These strategies may have different
implications for both ITC and HUL in India. Thus, looking into the Indian
scenario in rural area and recent trends in FMCG companies, we have come
up with following primary research questions:
1. What are the major marketing strategies implemented by ITC and HUL
in the rural area of Indore District^
2. What are the factors that affect the formulation and implementation of
marketing strategies?
3. What challenges are faced by domestic companies because of global
changes in policy formulation and competition? How strategic
decisions are affected by these challenges?

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 Rationale, Objectives and Hypotheses of the Study

4. What opportunities exist for domestic players and MNCs in India?

5. What is the perception of rural people regarding marketing mix of ITC
and HUL and their satisfaction level?
6. What are the factor affecting the satisfaction level of rural customers?

Keeping these questions in mind, we performed literature review and observed

that several studies have done on promotion, branding, and customers
perception towards FMCG companies in India but very few study have done
on the 4p’s of marketing mix both ITC and HUL in India and all over the
world. However, limited numbers of studies have been conducted in the past
with regard to marketing strategies of FMCG companies both in India and
Madhya Pradesh. We found case studies, thesis and working papers about
marketing strategies, sales promotion, and brand extension and consumer
behavior towards FMCG companies in India. However, we have not come
across any single study being done on comparative study on marketing
strategies of ITC and HUL in Indore district. Therefore, in this study, we have
attempted to analyze the impact of marketing strategies on rural customers in
Indore district.

4.2 Objectives of the Study:

1. To compare the marketing strategies of ITC and HUL in the rural area
of Indore district.
2. To study the factor affecting the satisfaction level on various marketing
mix adopted by ITC and HUL in the study district.
3. To work out the growing challenges and opportunities for ITC and HUL
in the study district.
4. To study and suggest the best effective strategies for the rural market.

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 Rationale, Objectives and Hypotheses of the Study

4.3 Hypotheses of the Study:

4.3.1Null Hypotheses:
Hoi: There is no significant difference in the Product Mix Element of ITC
with the Product Mix Element of HUL in rural area.
H02: There is no significant difference in the Promotion Mix Element of ITC
with the Promotion Mix Element of HUL in rural area.
H03: There is no significant difference in the Price Mix Element of ITC with
the Price Mix Element of HUL in rural area.
H04: There is no significant difference in the Place Mix Element of ITC with
the Place Mix Element of HUL in rural area.
Hos: There is no significant association between Satisfaction with price mix and
purchasing decision of consumer.
H06: There is no significant association between Satisfaction with the place
attributes and purchasing decision of consumer in rural area.
H07: There is no significant association between Products Attributes and
Purchasing Decision of Consumer in rural area.
Hos: There is no significant association between Advertisement of the product
and Purchasing Decision of Consumer in rural area.
H09: There is no significant association between Discount on the product and
Purchasing Decision of Consumer in rural area.
H010: There is no significant association between Packaging and buying
decision in rural areas.
H011: There is no significant association between Availability of the product
and buying decision in rural areas.
H012: There is no significant association between Reasonable Price and buying
decision in rural areas.
Hon: There is no significant association between Brand name and buying
decision in rural areas.

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 Rationale, Objectives and Hypotheses of the Study

Hom: There is no significant association between Quality and buying decision

in rural areas.

4.3.2 Alternative Hypotheses:

Hi: There is significant difference in the Product Mix Element of ITC with the
Product Mix Element of HUL in rural area.
H2: There is significant difference in the Promotion Mix Element of ITC with
the Promotion Mix Element of HUL in rural area.
H3: There is significant difference in the Price Mix Element of ITC with the
Price Mix Element of HUL in rural area.
Hi: There is significant difference in the Place Mix Element of ITC with the
Place Mix Element of HUL in rural area.
Hs: There is significant association between Satisfaction with price mix and
purchasing decision of consumer.
H6: There is significant association between Satisfaction with the place
attributes and purchasing decision of consumer in rural area.
H7: There is significant association between Products Attributes and
Purchasing Decision of Consumer in rural area.
Hs: There is significant association between Advertisement of the product and
Purchasing Decision of Consumer in rural area.
Hi: There is significant association between Discount on the product and
Purchasing Decision of Consumer in rural area.
H 10: There is significant association between Packaging and buying decision
in rural areas.
Hu: There is significant association between Availability of the product and
buying decision in rural areas.
H12: There is significant association between Reasonable Price and buying
decision in rural areas.

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Hu: There is significant association between Brand name and buying decision
in rural areas.
Hi4: There is significant association between Quality and buying decision in
rural areas.

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