KUMAUN UNIVERSITY, NAINITAL

OON

DISSERTATION REPORT SUBMITTED TOWARDS THE

PARTIAL FULFILLMENT OF GRADUATE DEGREE IN
MANAGEMENT

THE ROLE OF SPURIOUS PRODUCTS IN

RULAR RETAILING
SUBMITTED BY:
KANIKA NAINWAL
BBA (2015-2018)
Roll No .1512250022

Faculty Guide:-
Mrs. Vashali Bisht
Assistant Professor, IPSDR

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 ACKNOWLEDGEMENT

It is a great pleasure for me for doing research on The Role of Spurious Products in Rural
Retailing.

Firstly I would like to express my immense gratitude towards our institute “IPSDR- Institute of
Professional Studies & Development Research” Kumaun University, Nainital which created
a great platform to attain profound technical skills in the field of BBA, thereby fulfilling our
most cherished goal.

I am very thankful to everyone who all supported me in completing my project effectively and
more over on time. I am very thankful to my Project guide Mrs. Vaishali Bisht (Assistant
Professor, IPSDR ‘The Hermitage’, Kumaun University, Nainital). She gave me moral support
and guided me in different matters regarding the topic. She has been very kind and patient while
suggesting me the outlines of this project and correcting my doubts. I thank her for her overall
support.

Also I would like to thank all those who have helped me directly or indirectly in completing the
present project successfully.

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 DECLARATION

I hereby declare that this project work entitled THE ROLE OF SPURIOUS
PRODUCTS IN RULAR RETAILINGsubmitted to INSTITUTE OF PROFESSIONAL
STUDIES AND DEVELOPMENT RESEARCH, NAINITAL is a record of original work
done by me and this project has not formed the basis for the award of any Degree
or any similar title to any candidate of any university.

Counter Signed By:

(Mrs. Vaishali Bisht)

Assistant Professor
IPSDR ‘THE HERMITAGE’, Kumaun University, Nainital

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 EXECUTIVE SUMMARY

Research report is an important part of course curriculum of BBA. It provides a wide horizon to
the students to learn by using of different methods of research and enhances their skills in
drawing conclusions on the basis of information or data collected.

I was fortunate enough to do my research project onThe Role of Spurious Products in Rural
Retailing..

This study was carried out with the help of both primary and secondary data. Primary data was
collected with the help of a well drafted questionnaire and secondary data was collected from the
magazines, newspaper, websites and other approaches. The collected data was analyzed using
certain statistical tools; further interpretation was made and presented using pie-charts.

The project work was a great challenge for me. It gave me an opportunity to collect data and
analyze the entire situation.

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 TABLE OF CONTENTS

S.No. Topic Page No.

1. INTRODUCTION 6-8
1.1 – Introduction 7

1.2 – Objective of the Study 8

1.3 – Limitations of the study 8

2. RESEARCH METHODOLOGY 9-11

3.1– Sampling 10

3.2 – Research Design 10

3.3 – Data Collection 10

3.4 – Tools of Analysis 11

3. DATA ANALYSIS & INTERPRETATION 12-22

4. FINDINGS, SUGGESTIONS &RECOMMENDATION 23-25

6.2 – Findings 24

6.2 – Suggestions & Recommendation 25

5. CONCLUSION 26

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* BIBLIOGRAPHY 27

* ANNEXURE 28-30

CHAPTER – I
INTRODUCTION

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 Introduction
When taking the subject of rural marketing in India, everyone related it to the enormous size and
demand base as it brings huge opportunities to marketers. Huge revenue is generated in this field
owing to the majority of population residing in rural areas. This brings about the threat of
counterfeits and pass-offs, the knowledge of which is of utmost importance to the consumers in
this part who tend to go about the purchasing based on the look, design and many more features
of a brand. Recently, researchers have paid increasing attention to rural marketing, but the rural
marketing domain has unique characteristics that require industry specific knowledge
development. Marketers in this area face unique challenges in every aspect of rural marketing.
Rural marketing, from the point of view of spurious products is an under researched area within
the rural marketing discipline. The authors attempt to identify various issues relating to spurious
products by examining previously published research in conjunction with the data collected in
villages of Nainital district, relying on survey data collected from 50 retailers across villages of
Nainital, i found that multi-brand wholesalers, suppliers are the key players behind the whole
issue and examine the various methods to reform situations by offering various suggestions
based on this research. Rural marketers can use this detailed discussion to fight effectively
against counterfeits and pass-offs.

Rural market
Indian rural market with its colossal size and demand base offers tremendous opportunities to
marketers. Almost 65 percent of India’s consumers live in rural areas and almost (or nearly or
about) one third of the national income is generated from rural India. It is only natural that rural
markets form an important part of the total market of India. Everyone sees it as a profusion of
opportunities, whether for marketing of durables, textile and garments, personal care products
and financial services. The rural marketer is facing an entirely different set of conditions and
problems when marketing in rural areas as compared to urban areas. There are many challenges
that FMCG companies face in tackling rural markets, namely their small size, remoteness, poor
connectivity, tremendous heterogeneity, low level of literacy, too many languages and dialects,
low per capita disposable incomes, acute dependence on the monsoon, seasonal demand and
media darkness are some serious limitations.Rural consumers are basically illiterate and identify
a product by its logo, color and packaging. This makes it easy to sell look-alike products to them.

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As per Nachlappan (2003) basically there are two types of spurious products which are
counterfeits and pass offs.

Counterfeits are fakes that use the similar name, design, color, trademark and logos.

Pass-off products are fakes that use similar sounding names, designed with almost similar color
and packing to deceive or mislead the rural consumers.

Spurious products are increasingly attacking the 90,000 crores FMCG, drugs, pesticides sector.
They damage the brand reputation, create public health hazards and this loss to the government is
estimated to be around Rs. 2,700 crores annually in the form of unpaid excise, octroi, sales and
other tax. Today the fake products under popular brand names constitutes to a parallel industry in
India. Most of them give higher margins to the retailer that varies between 25-75%, with lower
end consumer prices.

ObjectivesoftheStudy
The following are the objectives of the study that the researcher wishes to enquire and
understand in the process. To understand the role of spurious products in rural retailing with
respect to the following broad outlines:

(i) Reasons for selling spurious products;

(ii) Sources of supply of spurious products;
(iii) Identifications of spurious products by consumers;
(iv) Repetitive purchase of spurious products;
(v) Awareness regarding hazardousness nature of spurious products
(vi) Receipt of complaint regarding on usage of spurious products;

Limitations of Study

Some important limitations, which were faced, are as follows:

 I have completed the research in limited time. In spite of all the difficulties, the time was
limited so it was quite impossible to collect the sufficient data. Inadequacy of time was a
major limiting factor faced by me.
 The information was collected from 50 people only.
 Some of the respondents were not honest and genuine in their approach.
 The questionnaire contained mostly multiple-choice questions; therefore many

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 respondents may not have given a proper thought before answering the questions.

 Convenient sampling method was used as the mode of conducting the research.

CHAPTER-II
RESEARCH
METHODOLOGY

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 Research Methodology

The process used to collect information and data for the purpose of making decisions. The
Methodology may include publication research, interviews, surveys and other research
techniques, and could include both present and historical information.The manipulation of
things, concepts or symbols for the purpose of generalizing to extend, correct or verify
knowledge, whether that knowledge aids in construction of theory or in the practice of art.

The research methodology followed during the project completion is as follows:

• Direct communication with customers and retailersto get the details regarding The Role of
Spurious Products in Rural Retailing.

• A questionnaire was prepared to know the views of retailers on spurious products.

• Questions designed were of multiple choices and of close ended nature.

2.1 Sampling
Sample Size:-The study was conducted on 50 retailers.
Sampling Technique:-Convenient sampling technique was used in order to get the data.

2.2 Research Design

The study is exploratory in nature as it endeavors to uncover the latent behavioral aspects of rural
retailers with respect to the role of spurious products in Nainital.

2.3 Data Collection

Universe of Study and Population:-The universe of the study is retailers in the villages
of Nainital district.
The scope of the study is limited to role of spurious products in rural areas. The study is
based on the empirical survey of 15 villages situated in the Nainital district

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Both primary and secondary data have been used for the completion of the research report.

a) Primary data: primary data is collected from customers through interviews and personal
observation and from retailers through questioners.

b) Secondary data: Sources of information are attained indirectly. Such data

are attained generally through published and unpublished documents like newspapers,
magazines, articles and internet.

2.4 Tools of Analysis:

Data was analyzed with the help of:
 Pie chart method.

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CHAPTER-III
DATA ANALYSIS
&
INTERPRETATION

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1) Does consumer read packaging while buying a product?

Particular Number Percentage

Yes 40 80%
No 10 20%
Total 50 100%

20

yes
no

80

Interpretation: According to 80% of the retailers’ consumer read packaging while buying a
product.

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2) What details they mainly observed while purchasing a product.

Particular Number Percentage

Date of manufacturing and 10 20%
expiry
MRP 35 70%
Brand name 5 10%
Logo 0 0
ISI mark 0 0
Total 50 100%

0 0
10%
20%
Date of manufacturing and expiry
MRP
Brand name
Logo
ISI mark

70%

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Interpretation: 70% of the retailers think consumers observe MRP while buying a product, 20%
think consumer look for date of manufacturing and expiry, and 10% think consumer look for
brand name.

3) Are they able to recognize the spurious products?

Particular Number Percentage

Yes 24 48%
No 26 52%
Total 50 100%

48%
52%
Yes
No

Interpretation: According to 48% of the retailers customers are able to recognize the spurious
product’s but 52% of the retailers think consumers are still not able to recognize the spurious
brand.

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4) How do they recognize the spurious products?

Particular Number Percentage

Reading 5 10%
Color 25 50%
Logo 0 0
Packaging 20 40%
Total 50 100%

10%

40%

reading
color

50% logo
packaging

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Interpretation: 50% of the retailers think customers recognized spurious products by their
color, 30% think that consumer recognized spurious products by reading the content, and 20%
think that consumer recognize the spurious products by packaging.

5) How often do they purchase the spurious products

Particular Number Percentage

Not at all 0 0
Only in emergency 0 0
Sometimes 10 20%
Frequently 30 60%
Always 10 20%
Total 50 100%

20% 20%

not at all
only in emergency
sometimes
frequently

60% always

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Interpretation: According to 60% of the retailer consumer buy spurious products very
frequently.

6) What is the main reason behind selling spurious products?

Particulars Number Percentage

More margin 25 50%
Availability 7 14%
Credit facility 15 30%
Low price 3 6%
Customers preference 0 0
Total 50 100

6%

more magin
30%
availability
50%
credit facility
low price

14% customers preference

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Interpretation: The main reasons behind selling spurious products are more margin and credit
facility.

7) What are the sources of supply for spurious products?

Particular Number Percentage

Multi brand wholesaler 35 70%
Distributers 10 20%
Manufactures 0 0
Traveling salesmen 5 10%
Total 50 100%

20%10%

multi brand wholesaler

distributers
manufactures
traveling salesmen

8.2

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Interpretation: According to 70% of the retailers the main source of supply for spurious
products are multi brand wholesaler,

8) Are you aware that these products are hazardous for health?

Particular Number Percentage

Not aware 40 80%
Slightly 10 20%
Moderate 0 0
Total 50 100%

0 0

20%

not aware
slightly
moderate
80%

Interpretation: Majority of the retailers in rural areas are not aware that these products are
hazardous for health.

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9) Are you receiving any complaints after selling spurious products

Particular Number Percentage

No 30 60%
Yes 0 0
Sometimes 20 40%
Total 50 100%

40%

no

60% yes
sometimes

Interpretation: Majority of the retailers in rural areas are not aware that these products are
hazardous for health.

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10) What kind of complaints are you receiving from customers?

Particulars Number Percentage

Regarding health 0 0
Regarding quality 20 100%
Usages uncomfortability 0 0
Other 0 0
Total 20 100%

00

regarding health
regarding quality
usages uncomfortability

100% other

Interpretation: data shows that all the retailers receive complaints only regarding quality of
products.

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 CHAPTER- IV
FINDINGS
SUGGESTIONS
&
CONCLUSION
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 FINDINGS

 Most of the retailer believes that consumer read packaging while buying a
product.
 According to most of the retailer consumer read MRP, date of manufacturing and
expiry, & brand name.
 According to 48% of the retailers customers are able to recognize the spurious
product’s but 52% of the retailers think consumers are not able to recognize the
spurious brand.
 Most of the consumers identify spurious products by their color and packaging.
 Detail shows that the rural consumers buy spurious products very frequently.
 The main reasons behind selling spurious products are more margin and credit
facility.
 The main sources of supply for spurious products are multi brand wholesaler,
distributers &travelling salesmen.
 Majority of the retailers in rural areas are not aware that these products are
hazardous for health.
 Majority of the retailers in rural areas are not aware that these products are
hazardous for health.
 Data shows that all the retailers receive complaints only regarding quality of
products.

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 Suggestions

 Evidence from this study shows that majority of rural consumers ask for just about any
product rather than the brand while buying FMCG, this is one of the important factor for
pushing spurious or counterfeit and regional brands by the retailers.

 Still majority of rural consumers recognize brands by packing, and colors, it is suggested
to the marketers to adapt unique colors, or pictures while targeting the rural mass.

 In most of the cases spurious products are pushed by the multi brand wholesalers in the
feeder towns and district headquarters because of huge margin involved in this parallel
channels. They act either as a merchant middle man or manufacturers of spurious
products. This issue is very important from their perspectives because of big margin in
spurious products.

 Product’s name in local language can also make a difference in creating consumer
awareness and making a sustainable customers-base in rural areas. It is strongly
suggested to educate these distributors or wholesalers about hazards of the spurious
products.

 Yet another way to counter this spurious bane is upgrade packaging i.e., more
sophisticated and capital-intensive technology should be employed by the marketers.
Therefore it is suggested to adapt high quality techniques in packaging for the products
while marketing in rural areas in order to make the manufacturers of these counterfeit
difficult to replicate major brands.

 The major complaints about spurious products are quality of the product. As health
hazards is of major concern strong measures like adoption of villages and recruitment of
educated rural youths to address these issues to the rural masses by the marketers.
Therefore, in this regard, it is suggested to employ product’s name in local languages and
dialects to create consumer awareness.

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 Conclusion

This empirical study has filled in the gap that arises out of standardization of marketing
practices at the urban and rural markets. The problem that FMCG brands face in the Indian
market is quite like the problem the film and music industry, faces with piracy, pharmaceuticals
and agriculture inputs with look-alike or totally spurious, and toy industry, lubricants battles with
look-alikes. The channels of distribution that can be successfully deployed to reach these
untapped pockets require ingenuity and creativity. The means by which the products are
identified or recognized in the rural masses are different from that of Study also highlights that,
rural retailers are stocking spurious products because of more margins, its low price and
availability of credit from the suppliers. Spurious products are mostly pushed by the distributors
in the feeder towns. It is evident from the study that the law is stringent but its enforcement is
weak not only in rural areas but even in urban areas. Finally, counterfeiting can only be tackled
effectively if law enforcement agencies and private companies work together and share
important information in this regard. The marketers who understand the rural consumer and fine
tune their branding strategies by incorporating rural element while developing packaging
strategies specifically for rural markets are sure to reap fruitful benefits in the ensuing years.

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 Bibliography

Information Has Been Collected From Various Sources Like:

Journals
Preeti Mehra (2001), “Crusade against counterfeit”, The Hindu Business Line, Monday, March,
02, 2018

. Nirmal D. Menon (2006), “FICCI to battle spurious brands in textile, auto”, The Hindu, Friday,
march 19, 2018.

Websites
informaticsjournals.com

m.deccanherald.com

www.ijss.publicationsupport.com

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 ANNEXURE
QUESTIONNAIRE

Dear Sir\Madam,
I am pleased to introduce myself as BBA student. As a part of co-curriculum I have
undertaken a study on the role of spurious products in rural retailing. The information
provided by you will keep confidential and will be used for academic purpose only.

Personal profile:
A. Name …………………..
B. Age………………………
C. Highest completed education level ……………….

1) Doesconsumer read packaging while buying a product?

(i) Yes
(ii) No

2) What details they mainly observed while purchasing a product.

(i) Date of manufacturing
(ii) MRP
(iii) Brand name
(iv) Logo
(v) ISI mark

3) Are they able to recognize the spurious products

(i) No
(ii) Yes

4) How do they recognized the spurious products

(i) Reading
(ii) Color

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 (iii)Logo
(iv) Packaging

5) How often do they purchase the spurious products

(i) Not at all
(ii) Only in emergency
(iii)Sometimes
(iv) Frequently
(v) Always

6) What is the main reason behind selling spurious products?

(i) More margin
(ii) Availability
(iii)Credit facility provided
(iv) Low price
(v) Customers preference

7) What are the sources of supply for spurious products?

(i) Multi brands wholesaler
(ii) Distributers
(iii)Manufacturers
(iv) Traveling sales men
(v) Others

8) Are you aware that these products are hazardous for health?
(i) Not aware
(ii) Not at all
(iii)Slightly
(iv) Moderately

9) Are you receiving any complaints after selling spurious products?

(i) No
(ii) Yes
(iii) Sometimes

10) What kind of complaints are you receiving from customers?

(i) Regarding health
(ii) Regarding quality
(iii) Usages uncomfortability
(iv) Other

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 SPURIOUS PRODUCTS

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