RURAL MARKETING – A STUDY OF CONSUMER BEHAVIOUR

RURAL MARKETING – A STUDY OF CONSUMER BEHAVIOUR *Dr. M.A. Lokhande Everybody of us is a consumer. We need a variety of goods and services right from our birth to death. Because of marketing, we can have what we need. Marketing is a process through which both the buyer and seller give something (e.g. goods, services, money etc.) to each other for maximum possible satisfaction. Nowadays Rural Marketing is gaining importance. All the FMCG companies viz HLL, Pepsi, Coca cola, Britannia, Colgate, Palmolive, Samsung etc. are concentrating their marketing activities in rural markets. Why? Because of socio-economic changes and huge market of more than 80 million households which will increase to 111 million households by 2007 (NCEAR Report). Rural consumer has become enough aware about his needs and up gradation of his standard of living. Information technology, Govt. Policies, Corporate strategies and satellite communication are the factors responsible for development of Rural Marketing. Let us look at the potential of rural markets. Rural consumption share in popular soaps is 48%, tooth pastes-24%, talcum powder-17%, cold medicines-42%, Battries-52% etc. The market for packaged food items of Rs. 20,000 crores, is growing at 2.5% per year.1 It is interesting to understand the various aspects of the rural markets and consumption patterns. THE OBJECTIVES OF THE PRESENT STUDY ARE: 1) 2) 3) 4) To study the consumption pattern of the rural consumers. To study the behaviour of consumers i.e. their attachment to a particular brand. To understand how rural consumers get information regarding various commodities. To understand the preferences of rural consumers. DATA COLLECTION: The study is based on the primary data collected though canvassing of the structured questionnaire. The study is confined to two villages viz. Mandna and Garkheda 80 kms. & 60 kms. Away respectively from the district head quarters, Aurangabad. Both the villages were selected for study purpose as they have all the characteristics of a common village in India. The Villages are well connected to other villages by good roads & telephone facility. For the purpose of the study 150 respondents (100males & 50 females) were selected out of 3000 persons on random sampling basis, which was 5%. (i)Classification of the respondents: The respondents were classified according to their age as shown in table no.1 S. No. 1 2 3 4 5 Table No.1: Age wise classification of Respondents Age Group No. of Respondents Below 15 yrs 6 15-25 yrs 45 25-35 yrs 60 35-45 yrs 30 45 & above 9 Total 150 Percentage 4 30 40 20 6 100 (Source: Field Survey, June 2003) It should be noted that the respondents were chosen deliberately from different age, e.g. youth, adult & old persons to understand their consumption habits and brand loyalty. Out of 150 respondents, 135 (90%) respondents were between 15-45 years and 9(6%) respondents were selected from the age group of 45 years and above 6% respondents were of the age group of below 15 years. A (ii) Income and use of branded Toilet Soaps: Besides education and social status, income is one of the influencing factor on the consumption habits of consumers. In addition caste, religion, occupation and gender are influencing factors in rural areas. It appears from table no.2 that Lux was being used by 30% (45) respondents, Santoor-14 %( 21), Lifebuoy-34% (51), Liril-16% (9) respondents from Mandna and Garkheda Village. Of all the brands, Lifebuoy was the most popular brand followed by lux in these two villages. Reader, Smt. Dankunvar Mahila Mahavidyalaya, Jalna-431203 (Maharashtra) Indian Journal of Marketing Brand Below Rs. 2000 Lux 6 Santoor 9 Lifebuoy 21 Liril -Nirma 3 Total 39 (Source: Field Survey, June 2003) Table No.1: Age wise classification of Respondents Consumer Income Group Rs.2000Rs. 4000 & above Total 4000 15 24 45 6 6 21 18 12 51 9 15 24 6 -9 54 57 150 % 30 14 34 16 06 100 It was observed that Lux & liril soaps being costlier than other soaps, were being used by the respondents whose come was between Rs. 2000-4000 and above. There was no taker for Liril soap in lower income group i.e. income being below Rs. 2000. Lifebuoy was the popular brand in all categories of the respondents. Next to it was lux. This indicates that consumption of branded soaps depends on its price affordability and taste of the consumer to that extent in rural area. A (iii) Consumer income and use of Branded washing soap It is interesting to note that how the consumers from rural areas shifted to brand washing soaps from caustic soda The Reponses in this regard are given in table no.3. The data shows that Sunlight and Nirma are popular brands in Mandna and Garkkheda. Sunlight and Nirma being used by 24% (36 each) respondents from all the three categories of income. Next to it were Rin 22 %(33) respondents, Green wheel by 18% (27) and Sona 125 (18) respondents. There was no user of Rin from the income group below Rs. 2000, While 22% (33) respondents from the income group i.e. Rs.2000-4000 and above. Sona, being the cheapest soap was being used by 12% (18) respondents from lower income group. This indicates that affordability is influencing factor on Consumption pattern of rural consumers. Sona soap was not used in upper strata of rural society because of their Status. Table No. 3 Consumer income and use of Branded Washing soap Consumer Income Group Brand Below Rs. 2000 Rs. 2000-4000 Rs. 4000 & above Total % Green Wheel 6 12 9 27 18 Sunlight 6 24 6 26 24 Rin -6 27 33 22 Nirma 9 12 15 36 24 Sona 18 --18 12 Total 39 54 57 150 100 (Source: Field Survey, June 2003) A (iv) Consumer income and use of Branded Tooth Pastes and Tooth Powder It is noteworthy that rural share in tooth paste and powder consumption is 23% and 20% respectively. 2 This indicates that rural consumers are accepting branded tooth paste and tooth powder for mouthcare. It was observed that the 150 respondents from Mandna and Garkheda villages were using branded tooth pastes and powder, e.g. Colgate, Promise, and Pepsodent etc. The data shows that the highest number of respondents i.e. 24% (36) were using Colgate followed by Bytco tooth powder i.e. 22% (33) respondents from Mandna and Garkheda villages. Babool was being used by 8% (12) respondents, Promise 12%, Pepsodent 18% and Baidynath tooth powder by 16% respondents. Table No. 4 Consumer income and use of Branded Tooth Pastes and Tooth Powder Brand Below Rs. 2000 Colgate -Promise -Babool 6 Pepsodent -*Bytco 21 *Baidynath 12 Total 39 (Source: Field Survey, June 2003) Indian Journal of Marketing Consumer Income Group Rs. 2000-4000 Rs. 4000 & above 12 24 9 9 -6 12 15 12 -9 3 54 57 Total 36 18 12 27 33 24 150 % 34 12 08 18 22 16 100 The respondents from the lower income group (i.e. below Rs.2000) used Babool, Bytco and Badynath. They not used Colgate, Promise and Pepsodent because of high prices. It is noteworthy that the respondents having come between Rs. 2000-4000 and above had been using Colgate 24% (36) , Promise 12% (18), Pepsodent 18% (27) respondents. Bytco tooth powder had no taker in high-income group category.Baidynath Powder was being used by respondents from all the categories because of its Ayurvedic value. The analysis shows that there is a good deal relation between income and consumption pattern of the consumers in rural areas. A (v) Consumer income and use of Branded Tea Powder: Tea is the most preferred drink in rural area and it is consumed at least once in a day in every family. So there is good demand for branded and non branded tea powder. All respondents from Mandna and Garkheda villages were found daily consumers of tea. Table No. 5 Consumer income and use of Branded Tea Powder Brand Below Rs. 2000 Superdust 9 Pariwar 9 Red Label -Taj Mahal -Loose tea 21 Total 39 (Source: Field Survey, June 2003) Consumer Income Group Rs. 2000-4000 Rs. 4000 & above 12 27 18 9 9 12 6 9 6 -54 57 Total 51 36 21 15 27 150 % 34 24 14 10 18 100 It appears from table No. 5 that was the popular brand in all types of income group from Mandna and Garkheda villages. Out of 150 respondents, 34% ((51) were consuming Superdust, followed by Pariwar 24% (36) respondent. Red label and Taj Mahal Brands were popular in 14% (21) and 10% (15) respondents. Loose tea powder was being used by 14 (21) respondents from lower income group (i.e. below Rs. 2000) and 6 from the middle income Group (i.e. below Rs. 2000-4000) respectively. It was observed that price factor was determinant of tea consumption pattern of the respondents from Mandna and Garkheda villages. The respondents having income above Rs. 4000 did not use loose tea, being low grade tea. As per their opinion it was against their status. When asked about their brand affection and usability of tea powder, majority of them said that they had been using particular brand since last two years and on an average consume two cups of tea daily. T was also observed that soft drinks viz. Pepsi and Coca-Cola were popular among young generation consumers in both the villages. B) Availability of daily use goods in Mandna & Garkheda : While surveying it was observed that inspite of being small villages, Mandna & Garkheda had nine retail shops having all types of consumer goods i.e. from safety pins to packed foods. Table No. 6.1 shows the availability of different goods in the said villages. Table No. 6.1: Availability of Daily use consumer goods. Item Available in Mandna /Garkheda From other village Total Toilet Soap 120 (80) 30 (20) 150(1000) Washing Soap 129 (86) 21 (14) 150(1000) Tooth Paste 111 (74) 39 (26) 150(1000) Tooth Powder 126 (84) 24 (16) 150(1000) Tea Powder 150 (100) -150(1000) *Other Goods 120 (80) 30 (20) 150(1000) (Source: Field Survey, June 2003) Note:- Figures in bracket indicate percentage to Total. Other goods include Talcum Powder, Hair Oils, Creams, Biscuits etc. It appears from the responses give in table the majority of the goods were available, except other goods, in Mandna and Garkheda villages itself. Toilet soaps, Toothpaste and powder and Tea Powder were available in retail shops in both the villages according to 74-100% respondents. However, some respondents 10 (4%) respondents availed toilet soaps from other villages. The respondents who availed washing soap, tooth pastes and tooth powder from villages were washing soaps 21(14%) , tooth paste 39(26%), and toothpowder 24 (16%) . While discussing with the respondents, it was learnt that they had purchased goods from district place whenever they visited it. Indian Journal of Marketing C) Sources of information:When asked about how they came to know about different goods, majority of the respondent said the advertisement on TV, Radio, Newspaper and other sources gave them information about various goods. The responses are given in table No.6.2. Table No.6.2. ) Sources of information Sources T.V. Radio Newspaper Friends Relatives Other Total (Source: Field Survey, June 2003) No. of respondents 72 18 33 9 12 6 150 Percentage 48 12 22 6 8 4 100 Out of 150 respondents, 48% (34) had TV as a major source of information regarding different goods. Radio and newspaper were main sources of information for 12% (18) & 22% (33) respondents respectively. Friends, Relatives and other sources were as the major sources of information for 6%, 8% and 4% respondents. It was observed that TV advertising had a deep impact on the mind of the consumers from both the villages. (D) Brand Loyalty The respondents were classified genderwise to understands their respective brand loyalty. The responses are given in table 7. Male respondents had shown brand loyalty as indicated below:Lux 6%, Liril 2% and Lifebuoy 6%. As regard the brand loyalty towards Wheel 6%, Rin 4% in case of male respondents and those of Female respondents it was Nirma 4%, Wheel 2%. It was observed that although the respondent has been using Santoor, Sunlight and Sona brands but they did not show any affinity to these brands. As far as tooth care goods are covered, the response from male respondents are summarized as:- Colgate (10%) Promise (6%), Pepsodent (4%) and Baidynath tooth powder (8%). Female respondents from both the villages had shown no loyalty to promise, Babool, Pepsodent and Baidynath tooth powder . In tea powder category, Superdust(4%), Taj Mahal And Red Label were popular brands among Male respondents as shown below:- Superdust (4%), Taj Mahal (10%) and Red Label (6%). Female Respondents had shown loyalty to Superdust (6%) and Pariwar (2%) Table No.7 Gender wise classification of consumers as per brand loyalty Item Male Lux 6 Santoor --Lifebuoy 6 Liril 3 Nirma --Wheel 9 Sunlight --Rin 6 Sona --Colgate 15 Promise 9 Babool --Pepsodent 6 Bytco --Baidynath 12 Superdust 6 Pariwar --Taj Mahal 15 Red Label 9 Total 105 (Source: Field Survey, June 2003) Indian Journal of Marketing Percentage 6 --4 2 --6 --4 --10 6 --4 --8 4 --10 6 70 Female 3 --9 --6 3 ------6 ------6 --9 3 ----45 Percentage 6 --6 --4 2 ------4 ------4 --6 2 ----30 Total 12 --15 3 6 12 --6 --21 9 --6 6 12 15 3 15 9 150 Percentage 8 --10 2 4 8 --4 --14 6 --4 4 8 10 2 10 6 100 (E)Factors affecting the purchasing Decision: The respondents were asked about which factor influenced on their purchasing decision? Of 150 respondents, 20% (30) stated that available of commodities in the village had influence on their purchasing decision. (Table 8) These respondents were of the view that going outside of their village to purchase goods was wastage of time and labour. Affordable Price was the main factor. Table: 8 Factors Availability of commodities Affordable Price Brand Loyalty Total (Source: Field Survey, June 2003) Responses 30 90 30 150 Percentage to 150 20 60 20 100 In case of 60% (90) respondents while Brand affection or loyalty was the main factor determining the purchasing of branded goods in case of 20% (30) respondents from Mandna and Garkheda villages. In case of 20 %(30) respondents availability of commodities was an influencing factor for purchasing decision. Table 9: Preferences of Consumers Preferences Responses Percentage Attractive Packing 75 50 Storing Convenience 105 70 Low Price 120 80 Durability 135 90 (Source: Field Survey, June 2003) Rural Consumers prefer to buy durable goods. In addition, they like attractive packing and colour. Having uncertain & lower earnings, majority of rural consumers give more consideration to small packs of goods & low price. The present study reveals that out of 150 respondents, 90% (135) respondents had preferred durability of commodities while 80% (120) respondents had given more consideration to low price of the commodities. It was also observed that small packs were popular in rural markets. Out of 150 respondents, 70% (105) respondents were using small packs of commodities like small bottles of Pepsi and Coca Cola. Attractive packing, colour and pictures were fascinating factors for children and young respondents which constituted 50 % (75) respondents under the study. (F) Observations and Suggestions: On the basis of the above discussion a few observation can be summarized as follows: (i) (ii) (iii) (iv) Rural markets are developing fastly and the marketers (i.e. local, National) are concentrating on this huge market by way of effective advertising, pouring a variety of branded and attractive packaged gods. As a result, the consumption pattern of rural people has changed drastically. They are preferring Pepsi and Coca Cola to tea as these soft drink are easily available in rural small shops, tea stalls and pan stalls at affordable prices. Rural Market is a huge market and to tap it fully it is needed to improve the efficiency of distribution channel so that consumers receive required commodities at right time, at right place and affordable prices. One of the observations of the study is that literacy is a hindrance in the way of marketing. So audio-visual ads are most effective in rural areas to inform the consumers regarding the commodities. While asked about how they differentiable the commodities of the same us, a sizeable number of respondents stated that it is difficult task to make difference between two branded goods e.g. Bytco and Bytco tooth powder, Nirma and Neerma. There are a number of cases of cheating and exploitation of rural consumers. In this regard, it may be suggested that consumer protection movement should be activated in rural areas. Consumer awareness must be suggested that created by way of imparting consumer education. It was observed that a few respondents had brand loyalty. Majority of the respondents (Male and Female) stated that brand does not matter to them. What they want is to fulfil their needs. However, some respondents had been using only specific branded goods and didn’t shift to other brands. In this regard, I would like to suggest that the manufacturers, the marketers should concentrate on value i.e. the quality, utility and reliability of their product. It can be inferred from the study majority of rural women consumers use cheaper. Low quality goods while men consumers use comparatively high quality goods. Indian Journal of Marketing (v) (vi) (vii) (viii) (ix) One of the observation of the study is that rural consumers purchase required goods from retail shops in the villages. Whenever required purchasing is done from weekly bazzars and taluka places. Sometimes rural consumer purchase goods from district places. It was observed that barter system still has notable existence in rural areas. Purchasing is done in exchange of grains, cotton, oilseeds etc. How daily wage earners purchase commodities on net payment basis. Rural consumers gradually are being habitual of eating at dhabas, small hotels and imitating their urban counterparts. They prefer to purchase small packs and low priced commodities eg. Small packs of Parle and Tiger biscuits, small bottles of Coca Cola and Pepsi etc. Consumption Pattern of rural consumers is dependent on their income levels, occupations, education and social status. The study revealed that TV, Movies have deep impact on the minds of rural consumers particularly children and young consumers. CONCLUSION: Rural India, have more than 70% (72.10 crore) population living in 6.27 lakh villages, is a huge market. Obviously, a number of FMCG companies are trying their best to harness the business opportunities in rural India. Electronic media, efficiency transportation system, increasing income levels and strategic marketing policies are the major contributing factors to enhance to the scope of rural Marketing. Rural consumer is changing his consumption habits to suit himself to changing environment. BIBLIOGRAPHY: 1. 2. 3. 4. Saxena Rajan, Marketing Management, Tata Mc Graw- Hill Publishing Co. Ltd., New Delhi, 2000, P. No.371 Http:/w.w.hc.Ca. Hppb/Social marketing sm.html. Dr. Premkumar Shrivastav, Marketing Management Himalayas Publishing House , Mumbai, 1993, P.No.33 Chandrashekar, K.S., Pricing Paradigms in the Indian context, Indian Journal of Marketing, Vol. Xxx1. June 2001. Indian Journal of Marketing