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Abstract
The purpose of this study is to examine the brand awareness
in rural area and to study the interest of consumers in branded
products of Fast Moving Consumer Goods (FMCG). The brand
awareness is showing increasing tendency everywhere and Chittoor
district is not an exception to it. To examine the validity of this
general statement that is being discussed day in and day out by the
researcher, market managers, producers, consumers, advertisers,
etc., a case study of brand awareness in rural area of Fast Moving
Consumer Goods in Chittoor district of Andhra Pradesh is taken up.
Keywords: Brand Awareness, Rural Area, Consumer Goods
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Introduction
The Fast Moving Consumer Goods (FMCG) sector is a
corner stone of the Indian economy. This sector touches every aspect
of human life. The FMCG producers have realized that there is ample
opportunity for them to enter into the rural market.1 Today we notice
this shift towards branded FMCGs in rural areas as a result of Socio
Economic & Political changes in the last 5 years. This has made rural
areas more viable markets even compared to urban areas.
The Socio Economic and Political changes contributed to a
great extent for changes in the life styles of countryside people who
patronized branded FMCG products. In Andhra Pradesh the rapid
growth of Engineering & Degree colleges and rural Polytechnic
colleges are bringing education to the doorsteps of rural people,
greatly contributing to a shift towards branded FMCG products. The
Government policies to promote education in rural areas enhanced
their brand awareness due to the presence of at least one higher
education pursuing student in their family or neighbouring family.
The populist schemes introduced by A.P. state Government
like Loans to Dwakra women at concession interest rate of 25 paise
and 100 days assured work in a year for rural people contributed in
enhancing peoples income followed by a change in their lifestyles
resulted in patronizing the branded products.
The residential pattern in Andhra Pradesh has witnessed a
near metamorphosis in last 5 years due to the construction of
reinforced concrete houses, in place of thatched (huts) or houses
constructed with country material. The moment they started living in
Pacca (permanent) houses with amenities like kitchen and bedrooms,
their lifestyle has changed. And this has paved way for branded
products invading in the rural areas.
The introduction of sachets made rural people who are
traditionally not accustomed for bulk purchase, to buy branded
FMCG products like Rs1/- shampoo, nut powders, oils, beverages,
readily available in the ready availability of instant foods, beverages,
cosmetic products, edible oils, bath soaps, detergents, cleaning
powders & liquids, tooth pastes, etc. in rural shops. This changed the
pattern of buying from traditional products to branded products.
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233
234
235
236
Finding: 2
The survey data reveals that the age effect is high on aware of
FMCG products. Below 30 years age group is showing a significant
difference on aware of these products. Most of them being educators
and having trust on branded products influenced to shift towards
branded products. And it is also influencing the 30 years & above
age group.
Null Hypothesis 3: There would be no significant difference
between below the age of 30 years and 30 years & above to have a
Preference for a Branded Product.
Z- Test 3: Significant test on Preference for branded product
between below the age of 30 years and 30 years & above
38.9
Standard
Deviation
7.5
36
5.95
Mean
T test
3.029
Finding: 3
The survey data reveals that the age effect is high on
preference for a branded product. Below 30 years age group is
showing a significant difference on branded products. Readily
availability of a branded product in expected form and price is
making this segment to shift to branded products.
237
Fig: 1
Histogram showing relationship between income groups
and preference for branded product
Number of
respondents
Low Income
20
15
10
5
0
Mid Income
High Income
19
12 13
7
1 0 0
No Brand
8
2 0
Cheap /
Regional Brand
Augmented
Brand
8
5 6
4
0 0
Finding: 4
Through Histogram (1) we can see that most of the
respondents are moving towards augmented brand (which is above to
expectation of a customer and satisfying a common customer). And it
is proving that all levels of income group people are concentrating on
one above to expected product for the same price. (Vide to Fig: 1)
Fig: 1
Different Income Level Groups and their dependance on to
have a Brand Awareness and Brand Usage
Numerof
Respondents
T.V.
20
Friends
Educated Children
18
15
13
10
5
0
Shopkeeper
9
56
2
0
Low Income
Mid Income
7
32
Above Mid Income
12
45
High Income
Finding: 5
The survey data reveals that the countryside consumers of
FMCG products were influenced by advertisements in Television,
238
239
from illiterate & literate groups prefer branded products with the
belief that quality is assured as the manufacturers are reputed
companies. For Ex: Colgate Tooth Paste, Head & Shoulder
shampoo).
People are not worried about the price of the product. They
are showing willingness to spend higher price when they realize that
they can afford to spend. Since the usage of branded products of
reputed companies will elevate their status as well as stature in that
village.
This change in the attitude to spend more on the highly priced
branded products (Example: Dove Soap, Gorniour Hair Oil) among
high income groups in rural areas clearly suggests that there is a
ample scope for such products to capture the markets in this areas by
increasing the supply of these products.
The marketing agencies are advised to conduct health
awareness programs by educating the people about the need to use
the health care products to arrest tooth decay, hair fall, dry skin, etc.
These products can be made more popular and acceptable among the
rural people.
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References
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