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Table of Contents

Table of Contents.................................................................................................i Abstract:............................................................................................................. 1 Introduction.........................................................................................................1 Literature Review................................................................................................2 Packaged Food...................................................................................................2 Reasoning of consu er !ackaged i !ortance...................................................2 "nta!!ed Potential............................................................................................. # Researc$ %et$odolog&........................................................................................# 'a !ling Tec$ni(ue............................................................................................# )uestionnaire *esign..........................................................................................+ 'a !le 'i,e.........................................................................................................+ Results................................................................................................................ Conclusions and Reco endations..................................................................... References.......................................................................................................... / 0ibliogra!$&...................................................................................................... 11

A Study on Consumers' Attitude towards Branded Packaged Food in Rural Market


By

*G.Vijayudu, Research Scholar for PhD, Dept. of MBA, Sri Venkates ara !ni"ersity, #irupati, $%&$'( Andhra Pradesh Mail) "ijayudu*+*,ail.co, -ontact) './.%$0'.1(

**Dr. B.A,arnath, Associate Professor, Dept. of MBA, Sri Venkates ara !ni"ersity, #irupati, $%&$'( Andhra Pradesh -ontact) './/%/'&02'

Abstract:
#he Packa*ed 3ood Market in 4ndia is a sunrise industry as *ro th in this sector in the recent past has 5een pheno,enal. Many ne entrants are playin* a "ital role to harness e"er increasin* ,arket potential. Most ne food co,panies, as ell as the e6istin* co,panies, are in the process of enterin* into the rural ,arket. 7ith a5out &'8 of total population and increase in disposa5le inco,e, rural ,arkets are 5ein* liked on as the future a"enues for 5usiness *ro th. 9o e"er, food co,panies need to de"ise ne strate*ies to penetrate rural ,arkets. and inno"ati"e ,arketin*

Introduction
#he 4ndian rural ,arket three ti,es the ur5an.
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ith its "ast si:e and de,and 5ase offers a hu*e opportunity that

M;-s cannot afford to i*nore. 7ith %(0 ,illion households, the rural population is nearly

Literature Review
Packaged Food <Most physical products ,ust 5e packa*ed and la5eled. So,e packa*es such as the coke 5ottle are orld fa,ous. Many ,arketers ha"e called packa*in* is a fifth =P> alon* ith Price, Product, Place and Pro,otion?%.

<Packa*es contri5ute to instant reco*nition of the co,pany or 5rand?(. 4t is an easiest techni@ue for rural household to recall and reco*ni:e the product throu*h the colours or font used on the packa*e.

A,on* plenty of 5randed packa*ed food products it has 5eco,e ,ore difficult to identify the, and ,ake purchase decision to rural consu,ers. #he 5i**er attention is attached to consu,er packa*e, hich is inte*ral part of product and its 5rand for the consu,ers. Reasoning of consumer packaged importance 7hile choosin* effecti"e co,,unication colour is the ,ain nonA"er5al ele,ent of the packa*e hich is attractin* the attention of o,en. <Good packa*in* co"ers an idea of the @uality of the product. 4t has a "alue hich is distinct fro, the "alue of the product.

Attracti"e packa*in* is an effecti"e point of purchase?1.

Accordin* to Rundh B(''$C/ <packa*e attracts consu,er>s attention to particular 5rand, enhances its i,a*e, and influences consu,er>s perceptions a5out product?. <4nter,ediaries of the packa*e co,,unication ,essa*e are co,ponent of the packa*e) colour, for,, si:e, i,a*es, *raphics, ,aterial, s,ell, na,e of the product, 5rand, country, infor,ation a5out product, special offers, instructions of usa*e, si,plicity and ecolo*y of the packa*e, er*ono,ics, inno"ati"eness. All these ele,ents of the packa*e play the function of co,,unication. #heir transfera5le ,essa*es in"ol"e the e"aluation of the product in @ualitati"e, @uantitati"e, price "ie , the for,ation of the product co*niti"e and sensorial
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e6pectations, the i,pact to consu,er e,otions, ,ood and attention. #he co,,unication of the packa*e co,ponents is attri5uted to the co,,unication oriented to the ,essa*e BSilayoi, Speece B(''/C?$. Untapped Potential <Rural ,arkets offer a *reat potential for ,arketin* 5randed *oods and ser"ices for t o reasons) %. #he lar*e nu,5er of consu,ers) A pointer to this is the lar*er "olu,e sales of certain products in rural areas as co,pared to sales of the sa,e products in ur5an areas.
2. Dar*ely untapped ,arkets) #he penetration le"els for ,any products are lo

in rural

areas?2. Dairy products, ;oodles, Edi5le oil, Ready to eat food, Rice ,i6tures, 4nstant ,i6tures, -onfectionary, -anned foods are so,e of the packa*ed food. #he e6tensi"e distri5ution of co,panies or ,arketers is ,akin* these products to "ery nearer to the rural consu,ers. <#he food a"aila5ility and culture factors are do,inant in food selection?&.

Researc

!et odolog"
the consu,ption pattern of selected 5randed

#his paper ai,s at to kno the rural consu,ers> attitude to ards the 5randed packa*ed food. #he pri,ary o5jecti"e of this paper is to kno packa*ed food of rural consu,ers. And the secondary o5jecti"es of this paper are concentrated on reasons for consu,ption of 5randed packa*ed food and reasons for not consu,in* 5randed packa*ed food.

#he rural area is selected on the 5asis of <9and 5ook of statistics (''&A'0 of -hittoor District of Andhra Pradesh?0. #ampling Tec ni$ue # o sta*e sa,plin* is used for this sur"ey. Si,ple Rando, sa,plin* is used to select of "illa*es 5ased on the <9and 5ook of statistics (''&A'0 of -hittoor District of Andhra Pradesh?.. 4n the ne6t step con"enience sa,plin* is used for this study to select the rural household.

%uestionnaire &esign A @uestionnaire as desi*ned to test the a areness and consu,ption le"els of the selected hich the consu,er is *ettin* infor,ation a5out the food ite,s and as sho n color i,a*es of all %' Products and ith sur"ey as as that, it ite,s, ,ediu, throu*h

dri"ers of consu,ption. Each indi"idual

inter"ie ed on nu,5ers of @uestions. #he inno"ati"eness associated

used colour printed i,a*es of the product Bthe for, in hich the products are ,arketedC. #his inno"ati"e approach e6a,ined the 5arriers to access to infor,ation and tried to e6plore the 5est ,ediu, for ,arketin*. #ample #i'e A total 0$ households Pradesh in 4ndia. ere sur"eyed across %' "illa*es in -hittoor District of Andhra

Fn the 5asis of ,arket and research e6perience and discussions rural ,arketin*, %' Packa*ed 3ood ite,s cate*ories) na,ely

ith e6perts in the field of ere di"ided into four

ere selected. #hese ite,s

Table 1: Categori ation o! Packaged Food "tems selected !or t#e Study Sl$%o '% '( '1 '/ Sector Milk Products Rice Mi6tures 4nstant Mi6es Edi5le Fils Products 4ceA-rea,, Ghee, Go"a, Puliho*are, Van*i5ath, Rice 4dle, Ra"a 4dli, Gula5 Ho,un Sunflo er oils, Groundnut oils,

Projecti"e techni@ues are used for the %' products. 3or each product around ( I 1 co,panies ere used hich are popular in ur5an parts and also ha"in* ,ass ,edia co,,unicationsJ 7ord Ff Mouth B7FMC. A areness le"el, consu,ption le"el, reasons for consu,ption, ,ediu, for a areness and the effect of "arious socioAecono,ic factors on consu,ption of each product as analy:ed 5y crossAta5ulation.

Table &: 'ist o! (roducts sector wise and com(any wise used !or sur)ey Sl$ %o Product Brands and t#eir com(anies or manu!acturers used !or sur)ey
+

'% '( '1 '/ '$ '2 '& '0 '. %'

4ceA-rea,, Ghee Go"a Puliho*are Van*i5ath Rice 4dle Ra"a 4dli Gula5 Ho,un Sunflo er oils Groundnut oils

9erita*e, Da::a 9erita*e, ;andi, Grishna Dodla, Vijaya, M#R, Priya M#R, Priya M#R, Priya M#R, Priya Ba,5ino, M#R 3ortune, ;ature, Gold in 3ortune, ;ature

Results
Result of the study thro li*ht on a areness le"el, consu,ption le"el, and ,edia for assi,ilatin* infor,ation a5out selected food ite,s. 3indin*s indicate so,e interestin* trends hich can 5e used for fra,in* ,arketin* strate*ies 5y food co,panies.

Table *: Res(ondents based on "ncome and +ccu(ation 4nco,e K Fccupation ' A /''' /''% A 0''' 0''% A%(''' %(''% I %2''' L %2''' A*riculture $.. 1.$ '.' '.' '.' Daily a*ers &.% $.. '.' '.' '.' Pri"ate E,ployees /.& &.% 1.$ %.( (./ Go"t. E,ployees (./ &.% %$.1 %/.% %'.2 others (./ '.' (./ %.( 1.$

Table ,: Awareness 'e)el- Consum(tion 'e)el and Source !or "n!ormation Products 4ceA-rea,, Ghee Awareness 'e)el 2%.( 0../ Consum(tion 'e)el /%.( 0/.&
-

Source o! "n!ormation A B C $(.. /../ //.& 0&.% $%.0 .&.2

Go"a 20.( /%.( Puliho*are &$.1 &'.2 Van*i5ath 1/.% %/.% Rice 4dle 0/.& 0%.( Ra"a 4dli 0'.' &'.2 Gula5 Ho,un 00.( /../ Sunflo er oils %''.' 2$.. Groundnut oils .2.$ $(.. A I Shop, B I #ele"ision, - I 3riends and Relati"es

21.$ &(.. 1'.2 0%.( &$.1 0(./ %''.' &0.0

/%.( (/.& $.. %/.% ($.. 2'.' 21.$ 21.$

$(.. 20.( (1.$ 0(./ &/.% (&.% .2.$ /1.$

#a5le / sho s a areness le"el and consu,ption le"el of all selected products 5y the respondents. 4n addition, the ta5le also presents "arious sources throu*h *i"en in #a5le $. hich the respondents *ather infor,ation a5out these products. #he fre@uencies of consu,ption are

Table .: Fre/uency o! Consum(tion Products 0aily 1eekly Fortnig#tly Mont#ly +ccasionally 4ceA-rea,, (./ %%.0 %&.2 /.& /.& Ghee (%.( //.& /.& (./ %2.$ Go"a '.' /.& $.. /.& ($.. Puliho*are '.' (%.( 1&.2 '.' %%.0 Van*i5ath '.' '.' /.& '.' ../ Rice 4dle (./ 1'.2 /$.. (./ '.' Ra"a 4dli (./ (/.& /1.$ '.' '.' Gula5 Ho,un '.' '.' ../ $.. 1/.% Sunflo er oils 1(.. 1%.0 %.( '.' '.' Groundnut oils /.& %&.2 '.' %(.. %&.2

#a5le $ sho s the fre@uency of consu,ption and the consu,er of selected products. Around (%8 of the respondents are consu,in* 5randed rice ,i6ture Puliho*are and &18 of the respondents are a*reed they ha"e co,e to kno eekly and around 108 of respondents at fortni*htly. A areness le"el of this 5randed product is around&$8, a5out 5randed puliho*are rice ,i6ture throu*h shop keepers and around 2(8 a*reed it is throu*h fro, friends and relati"es. Around 108 of the respondents are consu,in* 5randed edi5le oils daily and around /. 8 are eekly. A areness le"el for 5randed edi5le oils is al,ost %''8 throu*h shopkeepers and #ele"ision Ad"ertise,ents. Around /28 of the respondents are consu,in*
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5randed processed food rice idly 1%8 eekly and ra"a idly are consu,ed 5y //8 fortni*htly and ($8 eekly. A areness le"el for Branded Rice 4dly is around 0$8 and for Ra"a 4dly is around 0'8. 4n 5oth the cases shopkeepers are playin* a ,ajor role is around 0%8 and &$8 respecti"ely. 1/8 of the respondents are a*reed they are consu,in* 5randed s eet processed food occasionally. 28 and .8 are ,onthly and fortni*htly respecti"ely. A areness le"el for 5randed s eet processed food BGula5ja,oonC is around 008 throu*h around 0(8 fro, shopkeepers and 2'8 fro, #ele"ision ad"ertise,ents. #a5le 2 sho s the reasons for consu,ption.

Table 2: Reasons o! Consum(tion Products 4ceA-rea,, Ghee Go"a Puliho*are Van*i5ath Rice 4dle Ra"a 4dli Gula5 Ho,un Sunflo er oils Groundnut oils Taste 1&.2 $(.. /%.( $(.. (./ //.& (/.& /../ 1(.. /%.( 'ow Price (./ '.' /.& /%.( (./ (../ %2.$ %/.% /0.( %%.0 3asy A)ailability /.& ../ %/.% /../ %'.2 /../ 1/.% /&.% /0.( %(.. 4ealt# '.' 1'.2 %/.% ((./ '.' $(.. /../ '.' $2.$ (../ 'i!estyle %/.% %&.2 (./ (%.( /.& ((./ 12.$ 1(.. (/.& %$.1 Con)enience '.' (./ '.' /../ /.& $&.2 %2.$ %0.0 '.' '.' +t#er $.. /.& %.( %/.% 1.$ %(.. '.' '.' '.' '.'

#a5le 2 sho s factors

hich ,oti"e consu,ers to consu,e the 5randed packa*ed food in

rural ,arkets. 3actor #aste M Easy a"aila5ility are influencin* all types of custo,ers to ards 5randed packa*ed food. -on"enience is ,akin* around $'8 of the respondents to rice ,i6tures and around $08 to 5randed packa*ed food rice idly. Around $18, /.8 and $&8 of respondents are consu,in* rice idly, ra"a idly and sunflo er oils respecti"ely 5ecause of health reasons, no a"aila5le in 5randed packa*ed food. Easy a"aila5ility of traditional ,ode products are ,ost consu,a5les of rural consu,ers like Puliho*are rice ,i6ture, rice idly, ra"a idly and Gula5ja,oon at festi"als. Most of the respondents for these 5randed products
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are e,ployee *roups

ith inco,e *roup Rs. L 0,'''. #a5le & sho s

hy consu,ers do not

prefer 5randed packa*ed food.

Table 5: Reasons !or not (re!erring Branded Products 6nlikeness 6na)ailability in towards Costlier 'ocal S#o(s Processed !ood %/.% '.' /../ %/.% /../ %2.$ %2.$ (&.% %(.. %2.$ $(.. %%.0 $(.. %.( %(.. %/.% ((./ /%.( (../ 1&.2 ((./ (./ $&.2 %/.% 2../ %/.% (%.( 1&.2 ((./ %/.% Pre!erence !or local7 #ome made (roducts '.' %/.% $.. (%.( %/.% %2.$ ((./ %/.% %(.. (../ Any ot#er Reason /.& '.' '.' '.' %(.. '.' '.' 1(.. %/.% %/.%

Products 4ceA-rea,, Ghee Go"a Puliho*are Van*i5ath Rice 4dle Ra"a 4dli Gula5 Ho,un Sunflo er oils Groundnut oils

#a5le & sho s costlier factor is the ,ajor concern to not to consu,e 5randed packa*ed food. #he people ho are daily a*ers and a*riculturists ith lo inco,e i.e. Rs N 0,''' are ith less inco,e or depend particularly not consu,ers for 5randed packa*ed food products. Fther ,ajor factors are unlikeness to ards processed food and una"aila5ility. People ho,e ,ade products. Conclusions and Recommendations #he results indicate that there is a hu*e potential for 5randed packa*ed food co,panies to tap the rural ,arket. /As BA"aila5ility, Afforda5ility, A areness M Accessi5ilityC approach is re@uired to reach rural ,arket. -o,panies need to e6plain to rural ,arket throu*h rural ,arketin* distri5ution channels. Pace in distri5ution ill *i"e the trust to consu,ers to ards upon a*riculture are ha"in* pho5ias to ards Packa*ed food, so people are *i"in* preference

5randed packa*ed food. Most of the custo,ers for 5randed packa*ed food is fro, e,ployee *roup ith an inco,e Rs. L0,'''. <#he first challen*e is to ensure a"aila5ility of the product or ser"ice. 4ndiaOs 2(&,''' "illa*es are spread o"er 1.( ,illion s@ k,P &'' ,illion 4ndians ,ay li"e in rural areas, findin* the, is not easy. 9o e"er, *i"en the poor state of roads, it is an e"en *reater challen*e to re*ularly reach products to the farAflun* "illa*es. Any serious ,arketer ,ust stri"e to reach at least %1,%%1 "illa*es ith a population of ,ore than $,'''. Marketers ,ust trade off the distri5ution cost ith incre,ental ,arket penetration.?%' #he second challen*e is to ensure afforda5ility of the product or ser"ice. 7ith lo disposa5le inco,es, products need to 5e afforda5le to the rural consu,er, ,ost of packs. And the results are sho in* that una"aila5ility is one of the ,ajor causes to not consu,e 5y the rural consu,ers i.e. *ap in 5et een de,and and supply. #o fill up the *ap the co,panies ha"e to adopt so,e uncon"entional ,arketin* techni@ues. As stated earlier in this article, no *enerali:ed ,odel of rural ,arket can 5e dra n, so ,arketers ha"e to adopt inno"ati"e techni@ues. 4t has 5een "ariously defined as afforda5ility and accessi5ility issue in afforda5ility enco,passes price, inco,e and sensi5le spendin*, includes *eo*raphic, social, practical and cultural issues. hereas access is hich ider and ho are on daily a*es. So,e co,panies ha"e addressed the afforda5ility pro5le, 5y introducin* s,all unit

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