Professional Documents
Culture Documents
1.Executive Summary
In India the rural market are coming up a big way and growing
twice as fast as urban. There are as many and appose middle income
and above and appose household in rural area. The share of FMCG
products in rural market is 53% durable boats of 59% market share.
The number middle and high income household in rural India is
expected to grow from 80 million to 111 million by 2012.
In urban India, the same is expected to grow from 46 million to
59 million. Thus the absolute size of rural India is expected to be
double that of urban India.
consumer
how
influence
by
culture,
family,
income,
media etc.
Consumer motivation and decision making process.
Introduction
2 Introduction
Introduction To Rural Marketing
According to Prof. Ramakrishna Y, Rural marketing is the
process of developing, pricing, promoting, distributing rural specific
goods and service, leading to exchange between urban and rural
markets, which satisfies consumer demand and also achieves
organizational objectives. The Indian market with its vast size and
demand base offers great opportunities to marketers. Two- thirds of
countries consumer live in rural areas and most half of the national
income is generated here. Agriculture and agriculture related actives
contribute to about 75% of the income in rural areas. The general
impression is that the rural market have potential only for
agricultural inputs like seeds, fertilizers and pesticides, cattle feed
and agricultural machinery. More than 50% of the national income is
generated in rural India and there are opportunities to market
modern goods and services in rural areas and also market
agricultural products in urban areas. Infact it has been estimated
that the rural markets are growing at five times the rate of urban
markets. About 70% of bicycles, mechanical watches and radios and
about 60% of batteries, sewing machine and table fans are sold in
rural areas. At the same time the sales of colour television, washing
machines, refrigerators, shampoos, face cream, mosquito repellent
and tooth paste are very low and there is tremendous potential for
such products in rural markets while rural markets market within a
short period. This is due to low literacy, low income, seasonal
demand
and
problems
with
5
regards
to
transportation,
communication
of
the
villages
is
highly
Shampoo In Market
The word shampoo is derived from the Hindi word Champi.
Remember Johnny Walkers famous song Meri jaan, Meri jaan,
Sunday ke Sunday, Tel malish, Champi Tel malish
TG for Shampoo
Hair shampoo and conditioner are targeted at
Upper middle class
Now, also middle class and house wives.
Upper class rural consumer.
Teenier They are the major segment
Types Of Shampoo
Shampoo market segmented on benefits platform
Cosmetic (shine, health,strength)
Anti-dandruff
Herbal
Company Profile
Introduction To CavinKare
Company Profile
Product Range
Personal Care
Hare Care
Chik Shampoo
Nyle Herbal Shampoo
Meera Badam Shampoo
Indica Hair Colorant
11
Product Range
Personal Care
Ethnic Care
Meera Hair Wash Powder
Karthika Hair Wash Powder
Meera Harbal Hair Oil
Product Range
Personal Care
Skin Care
Fairever
Spinz Talc
Spinz Deodorants
Nyle Cold cream and location
Product Range
Home Care
Tex
Product Range
Food Division
Ruchi Pickles
Chinni&apos Pickles
12
Chinni&apos Masla
Chinni&apos Vermicelli
Ruchi Gulab Jamun mix
Competitive Analysis
Major Competitor
HUL
P& G
Dabur
Himalaya health care
Colgate Palmolive
The
company
has
six
major
brand
Fairever,
Chik,
Nyle,
Market Share
Chik shampoo with a 21.4 per cent share is the second largest selling
shampoo in the 1,200- crore ( Rs 12 billion) shampoo market while
its other brand nyle has 4.6 per cent share.
It has a 9 per cent share in the Rs. 750- crore (Rs. 7.50 billion)
fairness cream market with the Fairever brand.
Other like Meera hair wash Nyle moisturizing lotion have national
shares of 23.4 per cent, respectively.
But they are the largest brand in rural Uttar Pradesh, Andha
Pradesh,etc.
14
15
Journey of CavinKare
C.K.
Ranganathan,
chairman
and
managing
director
of
unit
before
moving
on
to
manufacture
19
Problems
20
21
4 Problems
Following are the problems have been seen in rural markets.
income,
low
purchasing
power,
overall
social
and
Occupation pattern
Agriculture and related actives continue to be the main
occupation for majority of the rural population. Land is the
major source of income for about 77% of the population.
Others are engaged in business (10%), non-agriculture labor
(9%), salary earners (2%) and not gainfully employed (2%). It
is evident that rural prosperity depends upon growth and
development of agriculture.
Media reach
The media reach in rural household is low. Statistics indicates
that the reach of print media is 10% followed by TV 31%, Radio
22
Communication facilities
About 20% of the six lakh villagers are without telephone
facility even today. This includes Rajasthan (17600 villages),
MP (14200 villages), Maharashtra (12000villagers),
Gujarat(7000 villages), and AP, Assam, Orissa about 6000
villages each.
Transportation facilities
About 50% of the markets are not connected by road. Most of
the roads are kachha and become unusable during rainy
season. Many farmers use bullock cart for transporting their
produce from village to the market. This means of transport is
time consuming.
Different Languages
Main problem is local language from district to district and
villages to villages are different.
Awareness
Low awareness or unconsciousness about the branding.
Scope of study
24
5 Scope of study
The study is limited to Gondia region. In this study the
researcher try to promotional strategy adopted by Chik shampoo for
rural region. Purchasing according to income, sex, age.
Period
The survey report is done four month from 27th Feb to 27th
March.
and Sakoli
26
Objectives of study
27
28
6. Objectives of study
To study the promotional activity adopted by chik shampoo in
rural area.
To study on distribution network of chik shampoo.
To analyses the market share of chik shampoo with its
competitor.
To study the perception of cunsumer towards chik shampoo in
rural area.
29
Research Methodology
30
7 Research Methodology
Research is common parlance refer to a search for knowledge.
Research can define as a scientific and systematic research on a
specific research on a specific topics. In fact, research is an art of
scientific investigation. The dictionary meaning of research is as a
careful investigation or inquiry especially through search for the new
facts in any branch of knowledge. Some consider research as
movement from known to unknown. Research may be defined as a
systematic and objective analysis and recording of controlled
observations that may lead to the development of generalization of
principles or theories resulting in prediction and possibly ultimate
control of events.
Methodology is often used in a narrow sense to refer to
methods, technology or tools employed for the collection of data as
well as its processing. This is also used sometime to designate data
collected to arrive at the conclusion. It provides answers to some of
the major questions while research like what must be done, how it
will done, what data will be needed, what data gathering devices will
be employed, how sources of data will be analyses to arrive at the
conclusion.
By Direct Interaction
Collection of primary data is by distributing the questionnaire
to the selected samples to obtain their views on research by mail or
through personal interview.
and
trade
journals,
books,
magazines
and
survey
report
is
collected
through
primary
method,
Sampling
33
34
8 Sampling
Sampling is a tool, which helps to know the characteristics of
the universe population by examine only a small part of it. An
integral component of research design is the sampling plan
specifically, it addresses two questions.
Sampling is also called as Random Sampling.SThe selection
of the items is independent of the persons making the study that is
the sampling operation is control objectively so that items will be
chosen strictly at random probability.
The study of the entire universe will be impossible on the
account of limitation of time of money. Hence sampling becomes
investable. A sample is only a portion of the universe of population.
According to YULE, a famous statistician The object of sampling is to
get
maximum
information
about
the
parent
population
with
35
Survey Report
36
9 Survey Report
The research process starts with formulating a questionnaire
containing 13 questions both close and open ended and then a
product survey is made by selecting retailer of Chik shampoo in all
rural region in Gondia. Sample size 17 retailers taken for search.
While
conducting
the
research
process
precautions
were
Name of shampoo in
Rural area
Percentage (out
of 100)
Chik
62
Clinic Plus
18
08
Vatika
12
37
as
38
Interpretation
leads
to
the
establishment
of
advertising,
personal
selling
and
sales
promotion
into
Advertising
Through the rural markets offers big attractions to the
marketers, one of the most important questions frequently asked is
how do we reach the large rural population through different media
and method?
It includes press and print, TV, Cinema, Radio and point of purchase
and outdoor advertisement. Reach of formal media is low in rural
households.
Print
18%
TV
27%
Cinema
30%
Radio
37%
41
Television
It has a great impact and large audience has been exposed to
this medium. Chik shampoo has been using TV to communicate with
the rural masses. Regional TV channels have become very popular in
rural region in Gondia region. Doordarshan and DD Direct Plus are
42
Radio
Radio reaches large populations in rural areas at are relatively
low cost. There are specific programs for farmers like farm and
home/ Krishi Darshan in regional language. The farmers have habits
of listing to regional news/ agriculture news in the morning and the
late evening. The advertisement has to be released during this time
get maximum coverage area in rural region.
Point Of Purchases
Display of hanging, festoons and product packs in the shops
will catch the attention of prospective buyers. However a clutter of
such POP materials of competing companies will not have the desire
effect and is to be avoids.
Wall Painting
It is an effective and economical medium for communication in
rural areas, since it stays there for a long time depending upon the
weather conditions. The cost of painting one square feet area is just
43
Tree Boards
These are painted boards of about two square feet in
dimensions having the picture or name or slogan of the product
painted on it. The cost of such painted boards is about Rs.80. these
boards are fixed to the trees on both sides of the villages road at a
height of about 10 feet from ground level. These boards attracts the
attention of slow moving like cycle, bullock carts and tractors and
people walking on the roads. Considering the poor condition of roads,
even the buses move at slow speed through village road.
44
Personal selling
Group Meeting
Group meeting of rural customers as well as prospects are an
important part of interpersonal media. The company able to pass on
the massage regarding benefits of the product to large number of
customers through such meeting. Group meeting key customer are
conducted by banks, agricultural inputs and machinery companies in
rural areas. The bankers visit an identified village, get the village
people in a common place and explain the various schemes to the
villagers. Such meeting could be organized in prosperous villagers
for promoting benefits of shampoo and disadvantages of soap.
Opinion Leaders
Villagers place more emphasis on the experience of others who
have used a product/brand make purchase decision. Opinion leader
is a person who is considered to be knowledgeable and is consulted
by others and his advice is normally followed. Such opinion leaders
could be big landlords, bank official, panchayath-president, teachers,
extension workers etc.
Melas
Melas are of different types i.e commodity fairs, cattle fairs and
religious fairs and may be held only for a day or may extend over a
week. At that occasion promotional activity should be done.At that
time free sample of shampoo sachet, coupons and importance of
Chik shampoo should be done
45
Sales Promotion
Trials
Shampoo getting encouraging trials from rural consumers, but
extremely low penetration levels. Many people had no clue how to
use a shampoo.
To encourage trials, CalvinKare team travelled extensively in rural
packets.
Trials on schoolboys to demonstrate how to lather and wash, comb
hair and show the difference.
We were as thrilled and excited as the volunteers during the
demonstration. This exercise had a significant impact in breaking ice
and made people confortable with the concept.
Impact
We also encourage trial through a consumer scheme, where
anyone could take any 4 empty shampoo sachets to a retailer and
take home a Chik sachet free. Through more risky, this scheme paid
off and more and more people began asking for Chik at their local
retail outlet
47
Chik Shampoo
50%
Clinic Plus
20%
10%
Vatika
20%
48
Yes
No
70%
30%
that 70% of retailer provided the Chik shampoo to rural areas due to
maximum demand of customers in rural areas.
Retailer recommends
Logo identification
50
% of Respondent
66
28
Wrapper
66%
Retailer Recommends
28%
Price
4%
Logo Identification
2%
51
Advertising
81%
Sales Promotion
14%
Personal Selling
3%
Publicity
2%
52
Yes
70%
No
30%
53
Yes
80%
No
20%
54
55
Que 9 Do you think the company modified its existing policy toreds
rural market ?
Yes
No
25%
75%
56
During festival
90%
10%
57
Strongly agree
15%
Disagree
20%
10%
Agree
40%
Strongly disagree
15%
58
59
60
61
62
63
Conclusion
64
12 Conclusion
After data collection and data analysis by varies tools and techniques
the researchers found following main points.
1) Perception of rural consumer towards the Chik Shampoo is
positive in Gondia district.
2) Educated persons are not use the Chik Shampoo but
uneducated persons are use maximum Chik Shampoo.
3) Price discrimination strategy most effective in rural consumer
such as Coupons, Special sale events, Discounts, Buy 5 get 1
free sachet of Chik Shampoo in Gondia district.
4) Television advertisement and special events in Melas, Group
meeting plays major roles in promotion of Chik shampoo in
rural areas.
5) Low poor class peoples are highest purchasers of Chik
shampoo in rural areas.
6) About 86% of customers prefers of Chik shampoo sachet
rather than bottle.
7) Price, Colour, Fragrance, Size (in ml) and availability in store is
in main factors which influence greatly to the rural behavior in
rural customers.
65
Suggestion
66
13 Suggestion
On the basis of various observations and conclusions drawn, the
researchers recommended the following points, which should be
taken into consideration by the company.
1) Price, colour, fragrance, size (in ml) and availability in shops
and stores is in main factors which influence greatly to the
buying behavior, therefore company should work on these
factors is increasing sales.
2) Educated persons are not use of Chik shampoo therefore the
company facilate the other promotional strategy.
3) Television and special events are not sufficient for sales
promotion, other communication strategy, change educated
rural consumer mindset and other promotional strategy should
be done.
4) Most of rural consumer use the soap for health for hair
therefore company and retailer should be more effective for
promotion of Chik shampoo.
5) Rural consumers more attractive towards entertainment so
through entertainment event more effective fir promotion of
Chik Shampoo.
67
Bibliography
68
69
14 Bibliography
Websites
www.google.com
www.ckpl.com
doccollection.com
Magazines
Marketing Mastermind
July 2014
Marketing Economics
Aug 2014
Annexure
70
71
QUESTIONNAIRE
Dealer /Retailers Name : ____________________________________
Contact Number
: ____________________________________
Address
: ____________________________________
____________________________________
Age
1
: ____________
Do you provide the Shampoo to rural areas ?
c Yes
2
c No
c Clinic Plus
c Vatika
c Yes
c No
rural areas ?
c Sales Promotion
72
c Personal Selling
5
c Publicity
c Sales Promotion
c Publicity
Are you satisfied with the promotional activities adopted by CaviKare for rural
areas ?
c Yes
c No
Do you have any suggestion for the improvement in the promotional and sales
activity ?
____________________________________
____________________________________
____________________________________
Do you face any kind of problem while convincing your customer in rural
areas ?
c Yes
c No
Do you think the company modify its existing policy towards rural market ?
73
c Yes
c No
11 Do you think the company has to modify its existing sales policy ?
c Yes
c No
c Disagree
c Agree
c Strongly disagree
74
75