JournalNX FMCG Sector

Proceedings of International Conference on Advances in Computer Technology and Management (ICACTM)
In Association with Novateur Publications IJRPET-ISSN No: 2454-7875

ISBN No. 978-81-921768-9- 5
February, 23rd and 24th, 2018
STUDY THE ADVERTISEMENT AND PROMOTIONAL IMPACT ON FMCG
SECTOR IN RURAL PUNE DISTRICT AND THE OVERALL POTENTIAL OF
THE RURAL MARKET.
VISHAL WELDODE
([email protected])7507209656
DARSHAN MEJARI
( [email protected]) 9850752964
SANDEEP SALUNKHE
( [email protected]) 8805896700
Balaji Institute of Modern Management Pune,Survey No. 55/2-7, Off Mumbai-Bangalore Bypass, Tathawade, Pune,
Maharashtra 411033
ABSTRACT reach of media and telecommunication services has

In country like India, where the 70% of the people live in provided information to India’s rural consumers and is
rural area, the rural market holds a lot of marketing influencing their purchase decisions. In line with general
potential. There is a wide spread difference in the trend, rural consumers are evolving towards a broader
standard of living between urban and rural India. In notion of value provided by products and services which
order to launch products and develop advertising for involves aspects of price combined with utility,
rural market there is a need to understand both the rural aesthetics and features, and not just low prices.
context and also the consumer very well. Promotion of The hinterlands in India consist of about 650,000
brands in rural markets requires the special measures. villages.
Due to the social and backward condition the personal These villages are inhabited by about 850 million
selling efforts have a challenging role to play in this consumers making up for about 70 per cent of
regard. The word of mouth is an important message population and contributing around half of the country's
carrier in rural areas. In fact the opinion leaders are the Gross Domestic Product (GDP). Consumption patterns in
most influencing part of promotion strategy of rural these rural areas are gradually changing to increasingly
promotion efforts. resemble the consumption patterns of urban areas. Some
The strong Indian brands have strong brand equity, of India's largest consumer companies serve one-third of
consumer demand-pull and efficient and dedicated their consumers from rural India. Owing to a favorable
dealer network which have been created over a period of changing consumption trend as well as the potential size
time. The rural market has a grip of strong country of the market, rural India provides a large and attractive
shops, which affect the sale of various products in rural investment opportunity for private companies.
market. The companies are trying to trigger growth in The challenges – market development, product design,
rural areas. They are identifying the fact that rural logistics, communication — deter many companies from
people are now in the better position with disposable even considering rural markets in developing countries.
income. The low rate finance availability has also But some companies have what I call rural DNA – the
increased the affordability of purchasing the costly ability to recognize the rural opportunity and to develop
products by the rural people. Marketer should innovations to tap those markets along with their urban
understand the price sensitivity of a consumer in a rural markets.
area. This research paper will be therefore an attempt to
study the Advertisement and Sales Promotion impact on OBJECTIVE OF THE STUDY
FMCG Sector in rural India and the overall potential of To assess the impact of TV advertisement on the buying
the rural market. behavior of FMCG consumers in Pune district.
 To understand the factors influencing purchase
INTRODUCTION decision other than advertising.
According to the third annual edition of Accenture
Research, “Masters of Rural Markets: From Touch points LITERATURE REVIEW
to Trust points - Winning over India's Aspiring Rural Kannan (2001) studied the rural marketing prospects in
Consumers,” rural consumers are particularly aspiring or selected areas of Tamil Nadu with a view to examine the
striving to purchase branded, high quality products. potential of selected products in the areas under
Consequently, businesses in India are optimistic about consideration. 100 respondents were selected in this
growth of the country's rural consumer markets, which survey and multistage random sampling was used. He
is expected to be faster than urban consumer markets. concluded that the rural markets are coming up in a big
The report highlights the better networking among rural way and growing twice as fast as the urban, witnessing a
consumers and their tendency to proactively seek rise in sales of typical urban kitchen gadgets such as
information via multitude sources to be better informed refrigerators, mixergrinders and pressure cookers. For
while making purchase decisions. Importantly, the wider successful marketing in rural areas, an integration of
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ISBN No. 978-81-921768-9- 5
traditional and modern methods of selling is required. thus can be seen in a two dimensional space as a flow of
To communicate effectively with the prospective rural goods, services, and ideas from one area to another,
consumers and to ensure effective distribution and except in the case of urban to urban flow.
prompt delivery, organizations must understand the
specific requirements and needs of the villagers and then SAMPLE AND RESEARCH METHODOLOGY
plan their strategy to convert the prospective consumers METHODOLOGY The present study is descriptive and
into active consumers. analytical in nature. The study has made use of both
Aggarwal (2003) found out that an efficient marketing primary and secondary data. The primary data has been
system leads to the optimization of resource use and collected by carrying out a sample survey among 150
output management. A well designed system of customers of FMCG products residing in Pune district
marketing can effectively distribute the available stocks using random sampling technique. Questionnaire was
of modern inputs and thereby sustain a faster rate of used as technique for data collection.
growth in agricultural production. An efficient marketing Analysis was made by using simple percentage. A survey
system ensures higher level of income to the farmers by among 150 customers has been conducted to assess the
reducing the number of market middleman, regulating impact of TV advertisement on purchasing FMCG
marketing services, providing better prices for the products and to identify the level of satisfaction of
products by having competitive conditions for subscribers. This survey also conducted to obtain
marketing. A new situation is emerging in India. suggestion from the customers for the better
Governments have been emphasizing economic performance of FMCG products. Secondary data for the
development by ensuring growth rates of seven-eight study was collected from sources of external published
percent annually, enhancing the welfare of farmers and data, computerized database and books of various
workers and unleashing the creativity of entrepreneurs authors.
and marketers {Singh and Bhagat (2004)}. This 111
opportunity must be fully utilized to bridge the rural CONCLUSIONS
urban divide, using knowledge as a tool. As such, there is Advertisement, the foregoing discussion show, is a sharp
a need to focus on Empowering Rural India (Kalam double edged weapon. When the claims of an
2005) and one of the ways that this can happen is advertisement correspond with the features of a product
through a strong and transforming agrimarketing. purchased as a consequence of such advertisement, the
The strengthening of rural communication services is an advertisement is bound to create a positive attitude
important ingredient for the welfare and development of among the Consumers in the long run. On the other hand,
rural India as it gives timely information on business, when the features of the product purchased do not
price, market and demands within a few minutes and corroborate the claims made in advertisement, those
that too at a very low cost {Paatnaik and Rao (2006)}. advertisements are sure to create a negative attitude
The open and transparent franchise policy for rural among the consumers. It is therefore essentials that an
areas must be worked out to enable the franchisee to advertisement aims to create faith and goodwill in the
provide telecom facility on a revenue sharing basis. The minds of consumer about the product featured by
rural literacy and road length, in particular, and other conforming to the core principles of believability,
rural infrastructure in general are considered essential uniqueness, reputation and reasonable claims.
for the growth of rural non-farm sectors and for The problem is not whether to advertise or not. But the
enhancing their employment generation potential, policy problem is how to advertise with a view to maximize
measures should be directed towards strengthening returns on the money invested. Effectiveness of
these support systems which in turn would lead to the advertising is greater when it is adequately planned,
growth of rural India and the Indian economy as a whole executed and constantly evaluated in terms of
{Pradhan (2005)}. Corporate and rural India has entered crystallized objectives. Since the FMCG sector is expected
into collaborative partnerships through vertical to grow several folds in the coming years, advertising in
coordination. A common thread among these is this sector will prove to be fruitful for all company. TV
integration and tightening the supply chain {Hans advertisement of FMCG has influence on the purchase
(2006)}. The agri-initiatives taken by Indian corporates decision making of respondents. TV advertisement has
will play an important part in the dissemination of the brought a paradigm shift in the arena of advertising. TV
right information and knowledge. Corporates can act ads, especially those which are telecasted at theprime
both as buyers of agri-produce as well as providers of time are strategic tools of attracting potential customers.
resources for producing the same. Rural marketing as Opposing to the belief that only well-educated and rich
any marketing activity in which one dominant consumers utilize the top national brands but even low
participant is from a rural area. For the purpose of level income consumers were found to be captivating
defining the domain of rural marketing, “rural” and such brands. Similarly the consumers have been
“urban” can be visualized on a continuum, consisting of establishing well exposed to the different media
three broad groups, namely, rural, rurban and urban. primarily to the newspapers and television. The teenage
The construct called rurban is the overlap between rural rural consumers have been found more variety seeking
and urban, with physical features closer to urban areas in contrast to the old aged counterparts. The Indian rural
and proximity to large urban centers, but with deep rural market with its vast size and demand base offers a huge
sociological moorings. The domain of rural marketing, opportunity that Multinational Companies cannot pay
69 | P a g e
ISBN No. 978-81-921768-9- 5
for to ignore. Mounting the market by tapping the
countryside, many Multinational Companies are inward
bound into India's rural markets.
REFERENCES
1) Marketing Management by Kotler, Keller, Koshy and
Jha – 12E. ‘Advertising Express’ ICFAI Journal Jan
2006 – Branding India. Indian Management – May
2007. “Positioning” – A1 Ries and Jack Trint by
Warner Books.
2) The Power of Branding Praxis – Business line’s
Journal on Management – May 2005. The Marketing
White Book-2006 by business world 2E.
3) “The Future of Competition” by Prof. Venkat
Ramasamy Co-author with C. K. Prahalad. Monish
Bali, “The Rural Market Likes it Strong”, The
Economic Times, [Interview by An Awasthi], August
23, 2000.
4) Neeraj Jha, “Gung-ho on Rural Marketing”,
5) The Financial Express, June 19, 2000. T. P. Gopal
Swamy,” Rural Marketing, Environment-Problems
and strategies, Wheeler Publishing, 1997.
www.hill.com www.indiainfoline.com
6) The Marketing Mastermind Case study HLL- Rural
Marketing Initiatives ICFAI Press, pp. 62, Feb 2003.
B2B Brand Management – Philip Kotler and
Waldemar Pfoertsch. Adesara, Hetal (2004), “Making
In Roads In The Hinterlands” Indiantelevision.com
7) Perspectives,editorials,
http://www.indiantelevision.com/perspectives/y2k
4/rural_marketing.htm Bhatia, Tej K. (2000),
“Advertising In Rural India: Language, Marketing
Communication, and Consumerism”. Tokyo, Japan
Tokyo Press ISBN 4-87297-782-3.
8) Lakshman, Nandini (2003), “India Inc Eyes Rural
Market”. Rediff.com Business, special http://
www.rediff.com/money/2003/oct/25spec2.htm
Mehra, Preeti (2003), “Advertisement Perception
Varies Among Urban Rural Audiences”. Business line
(September) Internet edition,
9) The Hindu group of publication, http://
www.thehindubusinessline.com/2003/09/02/stori
es/2003090201640600.ht Rajan R. V. (2004), “The
Rural – Urban Divide Is It Melting? Bangalore,
Published in MICA Communications Review, Vol. 1
(3).
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Proceedings of International Conference on Advances in Computer Technology and Management (ICACTM)

In Association with Novateur Publications IJRPET-ISSN No: 2454-7875

ABSTRACT reach of media and telecommunication services has

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