INTRODUCTION

Branding today is used to create emotional attachment to products

and companies. Branding efforts create a feeling of involvement, sense of
higher quality, and an aura of intangible qualities that surround the brand
name, mark, or symbol. Brand creates a perception in the mind of the
customer that there is no other product or service on the market is market
that is quite like yours. Philip kotler says” The art of marketing is the art of
Brand building. If you are not a brand , you are a commodity. The price is
everything and the low-cost producer is the only winner.”

A brand name in the rural context facilitates easy brand recall and
in drawing any colour , visual or numeric association . The challenges in
creating a brand identity in rural involve the need to relate the brand with
the rural lifestyle, or with appropriate status symbols, or with the rural
environment.
70% of India's population lives in 6,27,000 villages in rural areas. 90%
of the rural population concentrated in villages with a population of less
than 2000, with agriculture being the main business. This simply shows the
great potentiality rural India has to bring the much - needed volume- driven
growth. This brings a boon in disguise for the FMCG Company who has
already reached the plateau of their business urban India. Brand choices in
rural is often limited due to the small market size and the limited capacity
available with the rural retailer. Against six to nine brands in urban shops
 OBJECTIVES OF THE STUDY

The study is undertaken with the following objectives:

To study the Rural Demographic environment , identify the

penetration level of FMCG and consumer durable brands in selected
product categories and also the study attempts to find out the socio
economic classification and it’s relevance in brand penetration.

 PERIOD AND AREA OF STUDY

The data collected is for the period of 2 months i.e. from February
2008 to April 2008. The opinions and expectations revealed pertain to
the same period. The study is based on the data collected from rural
households in the areas of Ramanathapuram , Kannyakumari and
Nagapattinam districts of Tamilnadu state.
 OBJECTIVES OF THE
STUDY

The study is undertaken

with the following objectives:
To study the Rural
Demographic environment ,identify
the penetration level of FMCG and
consumer durable brands in
selected product categories and
also the study attempts to find out
the socio economic classification
and it’s relevance in brand
PERIOD AND AREA OF
penetration.
STUDY

The data collected is for the

period of 2 months i.e. from February
2008 to April 2008. The opinions and
expectations revealed pertain to the
same period. The study is based on the
data collected from rural households in
the areas of Ramanathapuram ,
Kannyakumari and Nagapattinam
districts of Tamilnadu state.
 METHODOLOGY
 Sampling Design
The validity of any research is based on the
 Limitations
systematic method of data collection and analysis The Study conducted limits to
of the data collected. As stated above, the study is selected product categories in both FMCG
based on the data collected from rural households
of Ramanathapuram, Kannyakumari and and consumer durables. The study is
Nagapattinam districts of Tamilnadu state. confined only to Tamilnadu state, the
results may vary if extended to other parts
of the country due to cultural ,language
,media reach differences.

 Collection of data
The main tool for collecting the data was a questionnaire. It was pre-tested to ensure clarity and
prompt response from the respondents. The secondary data was collected from various
Textbooks, Journals, Magazines, Government Reports, NGO’s reports etc. The sample size was
250. Convenience sampling was adopted to select the respondents. PRA technique is adopted to
 Analysis and
Interpretation of Data
collect the data from the rural respondents with the help of local school/college going students

(i.e. data collected from family head with the presence family members in most of the cases )

The data collected was analyzed by

preparing suitable tables. The information
collected with the help of the uestionnaire
has been tabulated and analyzed by using
percentage analysis .
 IMPORTANCE OF THE STUDY
 India has perhaps the largest potential rural market in the
world. It has as many as 47,000 hats (congregation markets),
compared to 35,000 supermarkets in the US. Plus, of the total
FMCGs demand in India, nearly 53 per cent comes from the
rural market. For consumer durables, the figure is 59 per cent.
In 2001-02, the rural market accounted for 55 per cent of Life
Insurance Corporation of India's (LIC) total policy sales. Of
Bharat Sanchar Nigam Ltd's (BSNL) two million mobile
connections, as many as one million subscribers are in small
towns and villages. It is much the same story for wrist watches,
dry cells, cassette recorders and so on. Like any market that
has seen a demand and awareness boom, rural India has
been witnessing considerable rise in purchasing power and
brand 'recognition' (not to be confused with 'awareness'). A
change in consumption patterns and access to communication
media have made the rural market a vital cog in the sales-
growth wheel, especially with demand for many categories are
high in the urban markets. It becomes essential for conducting
the study to identify the brands used by the rural households in
the changed business environment. This attempt may help the
corporate to know brand penetration in the Indian market (i.e.)
in particular about Tamil Nadu market.
 RURAL BRAND PENETRATION

 Introduction

The success of a brand in the Indian rural market is as unpredictable as

rain. It has always been difficult to gauge the rural market. Many brands, which
should have been successful, have failed miserably. More often than not,
people attribute rural market success to luck. Therefore, marketers need to
understand the social dynamics and attitude variations within each village
though nationally it follows a consistent pattern.While the rural market
certainly offers a big attraction to marketers, it would be naive to think that any
company can easily enter the market and walk away with sizable share. Brand
manufacturers offering attractive, well-designed outer cases had a much greater
chance of creating a win-win situation in the market. (Kumar, Nirmalya;2007),.
The reasons for rural branding being determined only by few limited attributes
are manifold. However, the most important fact is lack of technology and so
lack of rural development (Venkatesh,G;2004) . Lack of rural development
means lack of infrastucture , and so lack of distribution facilities.
 Results and discussions

Demographic Environment : 1200

There has been a considerable

increase in absolute numbers of 1000
people living in rural areas, at the
same time , a growing population
does not mean growing markets 800
unless these markets have
sufficient purchasing power. Total
600 population(in
million)
400
year year - year - year - Rural
1981 1991 2001 population(in
200 million)
Total population 683.3 848.3 1026.9
(in million) 0 Rural
year - year - year - proportion to
Rural population 524.0 628.8 741.6 Source: Census 2001total
1981 1991 2001
(in million) The above table shows that there )
Population(%
Rural proportion to total 76.7 74.3 72.2 is a marginal decrease in rural population,
Population(%) this may due urbanization and movement
of rural people to Towns/Cities for
 Education and the level of
Demand

250 Illite rate

200 B e low SSC

150 S SC /H S C
Table 2:Family head education
100 G raduate /PG
al)
Frequency Percentage 50
Education G raduate /PG
Illiterate 24 9.6
ssional)
0 T otal
Below SSC 89 35.6
Fre que ncy Pe rce ntage
SSC/HSC 81 32.4
Graduate/PG (general) 24 9.6
Graduate/PG 32 12.8
(professional)
Total 250 100
 Table 3 : Family Members Highest Educational Qualification

Education Frequenc
y Percentag
e

Ill iterate 0 0 Ill ite rate

250
Below SSC 44 17.6
SSC/HSC 82 35.2 200 B e low SS C

Graduate/PG 79 31.6
150 S S C /H SC
(general)
Graduate/PG 45 18 100 G raduate /P G
(professional) al)
Total 250 100 50 G raduate /P G
Source: Primary data sional)
Data presented in the above two0 tables reveal that there wasT otalan
Fre que ncy Pe rce ntage 0
increase in the education level over a period of time. Table 2 indicates the
illiterates are 9.6%among the family head ( i.e. Old generation ) and in case
of Younger generation where all are literates. This statistics shows that
parents are sending their wards to at least Schools. The earlier studies
indicate that the increase in Education will bring improvement in the socio
economic status of the people. The School/college going students creates
 Table 4: OCCUPATION OF THE FAMILY HEAD

100

80
B u s in e
Occupation Frequency Percentage
60 C o o lie
Business 27 10.8
F a rm e
Coolie 42 16.8
40 G o v t. s
Farmer 93 37.2
P riv a te
Govt. service 59 23.6 20
O th e rs
Private service 3 1.2

Others 26 10.4 0
F re q u e n c y P e rc e n ta g e
The survey result presented in the above table shows that farming
seems to be the occupation of 37.2% of the family head. The coolies and
business community also directly/indirectly depends on agriculture. It is a
well known fact that income from agriculture is seasonal, so the rural
purchase pattern is not constant round the year.
 Table 5: Family size of the rural household.

160
140
120
100 Two to Four
80 Members
60 Five to Seve
Size Frequency Percentage
40 Members
Two to Four 156 62.4
Members
20
0
Five to Seven 94 37.6
Members Frequency

Source: Primary data

The data presented in the above table reveals that most of the
family consists of two to four members ( 62.4%) this shows that rural
family size has decreased due to the movement of more families from the
joint to the nuclear structure. This trend gives a clear picture about the
increase in demand for durable and non-durables.
 Table 6: Family Monthly Income 250
Income (in Rs) Frequency Percentage

Less than 2000 31 12.4 200

L e ss tha n 2
2000 -5000 85 34
150 2000 -5000
5000- 10,000 98 39.2
5000- 10,00
Above 10,000 36 14.4 100
Ab ove 10,0
Total 250 100
50 To ta l

0
F re que ncy P e rce nta ge

Source: Primary Data

The above table shows that more than 50% of the rural families
are having their monthly income more than Rs. 5000 .The low income
category seems to be 12.4%.This indicates rural families are having
average purchasing power, since the population is more(72.2%), rural
market has more potential than the urban market
Table 7: Rural Housing Pattern-National level
100
House Type 1981(in 1991(in 2001(in
Percentage) Percentage) Percentage)
80
Pucca 22 31 41
60 Pucca
Semi-Pucca 37 36 36
Semi-Pu
Kuccha 41 33 23 40
Kuccha
Total 100 100 100 20 Total
0
1981(in 2001(in
Percentage) Percentage)
Source: Census of India 2001
Table 8: Rural Housing
Pattern 250

House Type Frequency Percentage 200

150 Pucca(Concr
Pucca (Concrete) 118 47.2
Semi-Pucca
Semi-Pucca (Tiles) 62 24.8
100 Kuccha (Hut)
Kuccha (Hut) 70 28
Total
50
Total 250 100
0
Frequency Percentage

Source: Primary Data

Table 6 and Table 7 shows the increase in the number of

Pucca(concrete) type houses over a period of time. Increase in Concrete
type of houses will bring improvement in the socio economic status of the
people.
Table 9: Mass Media Penetration in Rural.

Not available Channels Watched Most 94% of the Household

15 (6%) Sun TV Vijay TV Kalingar TV DD Others

190 26 5 5 8

200

150

100
3-D Colum n 1

50

0
Sun TV Vijay TV Kalingar TV DD Others

Source: Primary Data

The table given above shows only 6% of the respondents are not
having television set in their houses. Out of the remaining 94% of the
households, most preferred channel is Sun TV. More rural households are
having Television because the Tamilnadu state government distributed
free Television sets. Creating Brand awareness becomes easier for the
Corporate due to high media reach .
Table 10: Education(Family member Highest Education) and type
of dwelling
250

200 Ill it e r a t e
Be lo w S S C
150
S S C /HS C
100
G r a d u a t e /P G ( g e
50 G r a d u a t e /P G ( p r
Source: Primary
T o ta l
0 Data
P u c c a ( C o n c r e t eS)e m i- P u c c a ( T ile s )Ku c c h a ( Hu t ) T o t a l Education and type of
Education Pucca Semi- Kuccha Total
(Concrete) Pucca (Hut) dwelling are important
(Tiles) indicators in understanding
the profile of rural consumers.
Ill iterate 0 0 0 0 In Rural, Socio Economic
Below SSC 0 34 10 44 Classification is done based on
Education and type of House.
SSC/HSC 12 14 56 82 Rural consumers lifestyle
Graduate/ PG(general) 70 8 1 79 ,Purchase behavior and brand
awareness varies according to
the Socio Economic
Graduate/ 36 6 3 45 Classification (SEC).In the
PG(professional) above table those who are
residing in pucca houses are
Total 118 62 70 250 highly qualified , this shows
their economic status.
 Table 11: House Type and number of Durable Brands used by the Household

250 Source: Primary

Data
200 House type in rural
is considered as one
150 Pucca(Concrete)
important factor in
Semi-Pucca (Tiles)
determining the Socio
100
Kuccha (Hut)economic status , the
50 Total other one is
education. Number of
0
0-1st 1-7th 8-10th Above Total
brands used by the
Number of Brands10
Used household living in
Pucca houses is more
House Type 0-1st 1-7th 8-10th Above 10 Total than the other two
types. In case of non-
Pucca (Concrete) 0 11 89 18 118
durables the rural
Semi-Pucca (Tiles) 0 42 20 0 62 household is using
minimum two
Kuccha (Hut) 11 29 30 0 70 national level
Total 11 82 139 18 250 Brands .
 Table 12: Education(Family member Highest Education) and number of Durable Brands Owned by the Household.

250

200
Below SSC
150
SSC/HSC
100 Source: Primary Data
Graduate/PG(general)
Education
Graduate/PG(professional)is
50
considered
Total as one of the
0 important factor in
0-1st 1-7th 8-10th Above 10 Total determining the Socio
Education Number of Brands Used Total
economic status in rural.
0 1-7 8-10 Above 10 The educated youth act
Below SSC 5 36 3 0 44 as a medium in
SSC/HSC 0 29 53 0 82
bringing brand
knowledge to the family.
Graduate/PG(general) 6 17 42 14 79
In case of non-durables
Graduate/PG(professional) 0 0 41 4 45 the rural household is
Total 11 82 139 18 250 using minimum two
national level Brands.
This leads to an increase
in Brand penetration.
 Source: Primary Data
The above table shows
Table 13: Brand Penetration for Consumer
that none of theDurables
families are
Sl.No. Product Name Brand Position
using Microwave oven and
I II III
only a very few(2.4%) are
1 Radio/Music System Panasonic Pioneer Philips
having water purifier. The
common durable products
2 Television BPL Onida Samsung used by the rural households
3 Gas Stove Surya Butterfly Govt. Stove are Radio/Music System,
4 Mixer grinder(mixie) Preethi Butterfly Sumeet Television, Gas stove, Mixer
5 Grinder Lakshmi Butterfly --- Grinder, Grinder, Electric Iron
6 Refrigerator Whirlpool BPL Godrej Box , Wrist watch, Electric
Bulb, Tube light. The products
7 Washing Machine Videocon Whirlpool LG such as Refrigerator, Washing
Machine, Two wheeler and Car
8 Microwave oven --- --- ---
are not used by most of the
9 Water purifier Pureit(HUL --- ---
) rural households.
10 Electric Iron Box Philips Usha Anchor
11 Wrist Watch Titan HMT Citizen BPL,Surya,Philips,
12 Bulb Philips Surya --- Lakshmi,TVS,Titan and
13 Tube Light Philips Surya --- Panasonic are the popular
14 Air Conditioner --- --- --- durable brands among the
15 Two Wheeler TVS Bajaj Hero Honda rural households. The study
16 Car Maruthi Tata Indica Ambassador also reveals that only limited
brands are used by the rural
 Table 14: Brand Penetration for Non-durables
Sl.No. Product Name Brand Position Source: Primary Data
I II III Above table exhibits
the most popular FMCG
1 Shampoo Clinic Plus Head & Pantene brands among rural
Shoulder
households, they are Clinic
2 Toilet Soap Hamam Lux Mysore sandal
Plus , Hamam, Rin ,Ponds
3 Washing soap Rin Power Ariel ,Close-up(tooth paste) ,
4 Washing Powder Surf Power Ariel Pepsodent (tooth brush), Fair
5 Talcum powder Ponds Gokul Cuticura & Lovely, Britannia , 3
sandol Roses , Miranda . Local
6 Hair oil Vatika VVD Aswini brands play an active role in
7 Toothpaste Close up Colgate Vicco products like Washing
8 Tooth Powder Vicco Gopal Colgate Soap/Powder , Nail polish,
9 Tooth Brush Pepsodent Colgate Oral B packaged biscuits , Edible
Oil.. Edible oil is still a
10 Face cream Fair & Fair Ever ----
Lovely commodity market in Rural,
11 Nail polish Eyetex ---- ----
rural people are using
12 Packaged Biscuits Britannia Sunfeast Parle
traditional methods like
13 Tea 3 Roses Chakra gold AVT
Neem stick, Rice bran etc, for
brushing their Teeth. A few
14 Health Drinks Horlicks Boost Complan number of Households are
15 Soft drinks Miranda Pepsi Limca not clear in answering the
16 Edible Oil Gold Ruchi ___ different brand used by
Winner
them. This shows that they
 CONCLUSI
The Indian rural ON with its vast size
market and demand base
offers a huge opportunity that MNCs cannot afford to ignore. With 128
million households, the rural population is nearly three times the urban.
Increased education levels found to be the important factor in higher
level of brand penetration, the other factor house type also acts as a
leading indicator in determining brand penetration in rural market. The
above two findings shows clearly about the socio economic status
impact on brand penetration.
Thus, Socio Economic Classification (SEC) is considered as a
best indicator in measuring Brand penetration. The survey results
indicate the high level of mass media penetration in Rural. Media
penetration increases the awareness towards various brands. Creating
Brand awareness is not only the task of the marketer; the other
challenges are product availability, affordability and acceptability.
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THANK
YOU