26763364 itc project report by akhilesh kumar 120815102444 phpapp01

7/28/2019 26763364 Itc Project Report by Akhilesh Kumar 120815102444 Phpapp01

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A

Project REPORT

ON

Study on soaps buying behavior of rural consumers

PROJECT BY: AKHILESH KUMAR

UNDER THE GUIDANCE OF

PROF. G. M. JAYSHEELAN

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A

Project REPORT

ON

Study on soaps buying behavior of rural consumers

Project BY: AKHILESH KUMAR

UNDER THE GUIDANCE OF

PROF. G. M. JAYSHEELAN

KOHINOOR BUSINESS SCHOOL CENTER FOR

MANAGEMENT RESEARCH (KBSCMR)

KHANDALA (MAHARASHTRA)

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DECLERATION

The Live Rural Marketing Project is meant to bridge the gap between the real-lifebusiness and academic Knowledge. It is a simulation of the business environment andenables to experience the rigors of Rural Marketing Concept.

It provides opportunities to apply the concepts learnt in the class-room to real-lifesituations.

Being a Management Student, It is necessary to apply all concepts learnt in theclassroom to Practical situations to analyze things in perfect manner. The Live RuralMarketing Project gave me opportunity to undergo on field practical training to know theawareness among the people for ITC LTD and other SOAPS BRANDS inKHANDKALEY(Pune) in depth.

I completed this practical training at Kohinoor Business School Center forManagement Research, Khandala.This project report of the work consists of the studyof Rural Marketing and various aspects related to Rural Marketing.

Full care has been taken to make this report error free yet the responses collected

through respondent cannot be 100% error free and I hope I shall be excused for that.

Last but not the least I hope this research work will prove to be of some help and

it would applicable to ITC LTD. in formulating an effective and efficient marketing &

financial strategy.

DATE:SIGNATURE

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Abstract

The project study of soaps buying behavior of rural consumer is prepared under

the guidelines of PROF. G M JAYSHEELAN (rural marketing faculty, KBS). This

project report provides a bunch of knowledge about the demand of different soaps

available in rural market as well as it also provides detail knowledge about

consumer preference towards different soaps.

The report also provides details about the history of soaps and Shampoos sector in

rural India. there is plenty of data analysis and conclusions are given in researchpaper.

On the basis of feedback through questionnaire and observation method, I find out

that rural consumer has changed their strategy towards the products and start to

purchase them basis on their quality. As the result, there is close competition among

the companies. As each of companies are increasing their products, qualities, looks

and providing best services each days. Our analysis is based on sample results. It

was challenging as well as learning experience to gather the information from

respondents by meeting them personally in order to get questionnaire filled .therewas a lot of time pressure and unwillingness of respondent to respond.

AKHILESH KUMAR PROF. GM JAYSHEELAM

(SUPERVISOR)

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INDEX

S.n

o

Topic Page

no.

1 INTRODUCTION 7

2 SCOPE OF STUDY 8

3 OBJECTIVE AND LIMITATION OF

STUDY

12

4 LITERATURE REVIEW 13

5 SWOT ANALYSIS 14

6 RESEARCH METHODOLY 15

7 VILLAGE INFORMATION 15

8 QUESTIONNAIRE 16

9 DATA ANALYSIS 27

10 CONCLUSION 28

11 RECOMMENDATIONS 28

12 ANNEXTURE 30

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INTRODUCTION

There was time when FMCG companies ignored rural market, they took no interestto produce or sell products in rural market in India. It was initial stage of FMCG

companies in India. As per the time had passed, the strategy and marketing style of

FMCG companies had changed.

BACKGROUND OF STUDY:

In 1970, Nirma was the first FMCG company to initiate and produced goods

according to the rural consumer. In early 1970s, when Nirma washing powder was

introduced in low income market, HLL reacted in a way typical of many

multinational companies . however, Nirmas entry changed all Indian FMCG as

well as soap market scene . it became a great success story and laid the roadmap for

others to follow. MNCs like HLL, which were sitting pretty till then, woke up to

new market realities and noticed the latent rural potential of India.

C.K. Rangnathan started selling shampoos in sachet in initial investment of Rs

15,000 and dare to take on multinationals, HLL and P&G, the unquestioned leader

in segment. He targeted rural and small town consumers who used soap to wash

their hairs. He introduced sachet at 90 paisa and then 50 paisa . and thats why

multinationals sat and noticed him.

Sales zoomed from 35,000 sachets to 12 lacks. Initially they took any sachet, but

after 3 months they restricted to chik sachets.

Now a days, rural market is most lucrative , opportunistic and most focusing sector

by major MNCs in India. Each and every company is set to invest huge capital to

competes in rural market. According to the FICCI, the number of rural household

using soaps products has grown from 136 million in 2004 to 143millon in 2007, it

is clear indication that rural consumers have shifted from commodities to branded

products . urban consumer, on other hand could go slow on FMCG expenses ,

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thanks for inflation spiral, rise in fuel cost and costlier credit. The evidence shows

that first time rural market grow faster than urban market in key product category

April- may 2008, the latest month for which information is available , according to

the market research firm AC Nielsen.

NEED FOR STUDY

In those days, rural market is one of the best opportunities in FMCG sector in

Indian market. It is wider and less competitive market for FMCG. As the income

level of rural consumers increasing, the demand of FMCG products is increasing

continuously.

The various needs of study are follows:

To determine the rising demand of Soaps and Shampoos in rural India Know about the different choices of rural consumers

Rural consumers usage habits are deferent to urban

Rural consumers buying behavior

PROBLEM DEFINITION:

The study of opportunity of Soaps and Shampoos in rural market is sum total of

deferent analytical survey of different Soaps and Shampoos in rural market. In onesense, we can say that it is determination of how much market is captured by

different Soap and Shampoo companies.

SCOPE OF STUDY:

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With the population of 1 bn people, India is a big market for FMCG companies.

Around 70% of total household in India reside in rural area . total number of rural

household is expected to rise from 135m in 2002 to 153m in 2010, which

represents largest potential market in the world.

(Rural and Urban potential)

Urban Rural

Population2001-02(m household) 53 135

Population2001-02(m household) 69 153

% distribution (2001-02) 28 72

Market (towns/villages) 3768 627000

Source: Statical outline of India (2001-02), NCAER

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An average Indian spends 40% of his income on groceries and 8% on

personal care products . a larger part of total spending pie along with

large base(population) makes India largest FMCG market.

CHANGING LIFE STYLE:

Rising per capita income, increase literacy and rapid urbanization has caused

rapid growth and change in demand pattern. The rising aspiration levels,

increase in spending power has led to change in consumption pattern.

LOW PANETRATION AND LOW PER CAPITA CONSUMPTION:

Due to large size of market, penetration in most product categories like

jams, skin care, toothpaste , hair wash etc. in India is low. This is more

visible when comparison is done between rural and urban India. The average

consumption by rural household is much lower than their urban counterpart.

Existence of unsaturated market provides excellent opportunity for industry

players in form of vastly untapped as the income rises.

PENETRATION (%)

Category All India urban rural

Deodorant 2.1 5.5 0.6

Toothpaste 48.6 74.9 37.6

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Skin care 22 31.5 17.8

Shampoo 38 52.1 31.7

Utensil cleaner 28 9.9 14.6

Instant coffee 6.6 15.5 2.8

Washing powder 86.1 90.7 84.1

Detergent war 88.6 91.4 87.4

Toilet soap 91.5 97.4 88.9

Source: HLL investor meet 2006

OBJECTIVES:

There are following objectives of the project:-

To determine about the rural consumer preference towards soaps and

shampoos

To know about recent demand of different brands soaps and

shampoos in rural India

HYPOTHESIS:

I am also citizen of rural area. I used my experience and perceptions as hypothesis

towards to make this project.

LIMITATIONS:

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While surveying I encounter with some problems like some people were not ready

to respond and few of them who responded were in hurry hence the active

participation was lacking.

Due to which I faced difficulties in collecting information regarding our

questionnaire. Another problem which I face was that people were hesitating to give

information about their income. Except it, sample size that I have taken was small

(50 respondents) and its difficult task to draw conclusion or reach to exact result on

the basis of limited sample size. Time was very limited go into depth.

Threats to me were that people were hesitant to give income related information so

there is chance to error regarding income.

LITRATURE REVIEW:

Rural market is one of the best opportunity in India for soaps and shampoo sector.

In this sense, I can say that rural market is future of FMCG(soaps and shampoos).As the research of PURBA BASU (FACULTY OF ICFAI, B. SCHOOL), The

lifestyle of rural consumers is changing. Rural market and marketing strategy have

become latest marketing buzzword for most of FMCG majors. She added the

strategies of different FMCG companies for capturing rural market like Titans

sonata watches, coca colas 200ml bottles, different marketing strategies of HLL

and Marico Ltd. She takes into consideration the study of national council for

applied economic research (NCAER). According to the NCEAR projections, the

number of middle and high income household In rural India.

India is expecting to grow from 80 million to 111 million by 2007. In urban India

same is expecting to grow from 46 million to 59million. Thus , absolute size of

rural India is expecting to grow double that of urban. increasing demand. Factors

like village psyche, strong distribution network, and market awareness.

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This implies that rural market has huge potential for marketer to meet up the are

few prerequisites to make dent into rural markets. the model is of the stolid Dutch

Anglo conglomerate UnileverGroup, which has enjoyed century long presence in

India through its subsidiary Hindustan lever Ltd. It was Hindustan lever Ltd whichseveral years ago popularized Idea of selling its products in tiny packages. Its

sachets of detergent and shampoos are in great demand in rural Indian villages.

Britannia with it low priced Tiger biscuits has become success story in rural

market. The characteristics of rural market in terms of low and spared out

population and limited purchasing power make it difficult market to capture. The

bottom of pyramid marketing strategies and 4 Ps model of availabilities,

affordability, acceptability and awareness provide us with a means of developing

strategies to tackle marketing issues to marketing soaps and shampoos in rural

India. some successful stories like Garmin phone in Bangladesh .

As per concern of my research, it is detail study of soaps and shampoos used by

rural consumers. It will provide the detail information about consumer preferences

towards soaps and shampoos which is too unique and different from above

researches.

SWOT ANALYSIS

FOR ITC LTD.

Strength Weakness

Distribution leadership Very deep reach in rural

market

Trusted Brand

Extensive consumer research and

A very rich product pipeline for

the existing category

Late entrant in personal care

segment

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Opportunity Threat

Various categories products andservices for rural markets.

Agriculture business product for

rural markets

Large amount of Brand

promotion

Growth in disposable income

Hrithik Roshan to endorse theshampoo

The total shampoo market is

around Rs2,200 crore

High Competition from globalbrands like

HUL,P&G,DABUR ,CAIVIN

CARE etc.

RESEARCH METHODOLY :

Sample design :

sample unit: working people, school students, unemployed and housewives i.e.

males and females irrespective of their education level .

Sample size: 50

Sample region: Khandkaley village

Sampling procedure: Random Sampling (fill up the questionnaire)

DATA COLLECTION METHOD

PRIMARY DATA:

Primary data collected through self administrated questionnaire. The aim of this

questionnaire to gather the information of various branded soaps and shampoos

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reach among the rural consumers and what are the benefits of products and

accordingly the perceptions of consumers.

SECONDRY DATA:

Secondary data was collected through magazines, research papers and Internet.

QUESTINNAIRE DESIGN:

As questionnaire is self administered one, the survey is kept simple and user

friendly. Words used in questionnaire is easily understandable to all respondent and

technical jargons avoided to make it most worthwhile without any confusion to

respondents.

VILLAGE DETAIL

Village-at post-KHANDKALEY, District -Pune

No. of households- - around 12000

No. of retail outlets/Mandis- - 400

No. of schools/colleges - 7(8TH STD)/3(12TH STD)

Market day - No

Village functions -

Sarpanch: - Sunita Popat

F inding from (50) respondent

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1. Have you heard of a company called I.T.C.? if yes how?

A) Yes(9)

B) No(41)

Through

1) cigarette wrapper(7) 2)Arshibaad Atta (1) 3) Soaps wrapper (1)

2. Are you aware Vivel/Superia soaps?

a) Yes(35- Vivel and 8superia )

b) No (7)

3. What are all the soaps u can remember?

1).Lifebuoy (46)

2). Lux (41)

3).Dettol (30)

4). Santoor (10)

5).breez (33)

6).godrej (12)

7) .Sinthol (16)

8). Hamam (10)

9).Nirma (36)

10)Vivel (7)

4. What soap do you use?

1). Lifebuoy (19)

2). Lux (20)

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3). Dettol (3)

4). Santoor (1)

5). Breez (0)

6). Godrej (1)

7) . Sinthol (0)

8). Hamam (1)

9). Nirma (5)

10) Vivel (0)

5. since when you are using this soap?

1) 1-6 months 2) 6months-1 year 3)1- 2 years 4) above 2 years

1). (5) 2). (9) 3) (17) 4) (21)

7. What soap did u use prior to this?

1).Lifebuoy (16)

2). Lux (8)

3).Dettol (9)

4). Santoor (3)

5).Breez (3)

6).Godrej (1)

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7) .Sinthol (0)

8). Hamam (1)

9).Nirma (9)

8. How many people in your family use this soap brand?

1) One member (4)

2) two members (10)

3) three members (3)

4) four members (12)

5) Above four members (21)

9. How many times in a day you use the soap?

1). One time (31) 2).Two times (17) 3). Three times (2)

10. What do you consider while buying the soap?

a) Quality (9) b) color and size (8) c) Brand name (11)

d) Discounts/offers/free gifts (15) e) Price(5)

f) Retailers recommendation (3) h). BUZZ (0)

11. During which week of month do you buy the soap?

a).week 1(38)

b) week2(2)

c) week3 (0)

d) week4(10)

12. Where do you buy soap?

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a) Retail (39)

b) Haats (2)

c) Mandis (0)

d) Melas (0)

e) Nearby village/town( 6)

f).others (3)

13. Rank the quality preference while buying the soap?

a) Fairness (10)

b) Freshness(31)

c) Softness(4)

d) Beauty and young skin(5)

e) others specify(0)

14. How much money(in Rs.) you spend to buy the soap?

a) Less than 5 (0)

b) 5> 10 (32)

c) More than 10 (18)

15. What do you like in soap?

a)Smell(17) b)fume(22) c) color(11)

15. Have you seen ad of Vivel/Superia? if yes where/how?

a) TV (23)

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b) NEWSPAPER (17)

c) Magazine (2)

d) POP display & advertisements (9)

e) Wall painting (2)

f) Hand out/newspaper inserts ( 0)

g) Radio (7)

The 50 respondents in a village are studied using the following scale for

question nos. 18-24

18. Local influential persons are the best source for awareness of FMCG product

OPINION Strongly

Agree

Agree No

opinion

Disagree Strongly

Disagree

WEIGHT 2 (11) 1(17) 3(15) -1(5) -2(2)

IV = ((Points in strongly agree X 2) + (Points in agree X 1)) ((Points in strongly

disagree X -2) + (Points in disagree X -1))

IV = ((11*2) +(17*1) - (2-2) + (5-1)

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IV = 35

19. BUZZ: are used as a source of information

OPINIO

N

Strongly

Agree

Agree No

opinion

Disagree Strongly

Disagree

WEIGH

T

2 (14) 1(13) 3(10) -1(8) -2(5)



IV = ((14*2) +(13*1) - (8-2) + (5-1)IV = 31

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20. BUZZ are used to choose a brand

OPINIO

N

Strongly

Agree

Agree No

opinion

Disagree Strongly

Disagree

WEIGH

T

2 (12) 1(10) 3(15) -1(8) -2(5)


disagree X -2) + (Points in disagree X -1))IV = ((12*2) +(10*1) - (5-2) + (8-1)IV = 38

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21. BUZZ are reliable for product value

OPINIO

N

Strongly

Agree

Agree No

opinion

Disagree Strongly

Disagree

WEIGH

T

2 (10) 1(12) 3(14) -1(14) -2(0)


disagree X -2) + (Points in disagree X -1

IV = ((10*2) +(12*1) ((0-2) + (14-1))

IV = 21

22. BUZZ are helpful to avoid risk

OPINIO

N

Strongly

Agree

Agree No

opinion

Disagree Strongly

Disagree

WEIGH

T

2 (10) 1(13) 3(10) -1(12) -2(5)



IV = ((10*2) +(13*1) ((5-2) + (12-1))IV = 19

23. BUZZ are mentors in case of product dissatisfaction

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OPINIO

N

Strongly

Agree

Agree No

opinion

Disagree Strongly

Disagree

WEIGHT 2(20) 1(13) 3(6) -1(5) -2(6)

IV = ((Points in strongly agree X 2) + (Points in agree X 1)) ((Points in stronglydisagree X -2) + (Points in disagree X -1))

IV = ((20*2) +(13*1)) ((7-2) + (4-1))IV = 44

24. Advertisements are not considered for decision making:

OPINIO

N

Strongly

Agree

Agree No

opinion

Disagree Strongly

Disagree

WEIGH

T

2(7) 1(9) 3(7) -1(11) -2(16)



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IV = ((7*2) +(9*1)) ((16-2) + (11-1))IV = -1

DATA ANALYSIS:

After a good deal of consumer survey and marketing research, I have collected

worthwhile data to make it valuable information in conclusion. The analysis of

those datas is given below :-

DATA ANALYSIS FOR THE PREFERENCE FOR THE SOAPS AND

THEIR BUYING INFLUENCING FACOTRS IN RURAL MARKET:

In survey of preference of my target consumers towards soap, I had found different

preferences and different choices of consumers. On the bases of their choices I had

get following data:-

As per given in above chart, 90% of soap market share is captured by HUL. 50%

consumers prefer HULs LUX and 30% lifebuoy.

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While other companies contribute only 8% in which

ITCs all soaps brands(de wills, vivel and superia) contribut only 2%to 3% that is

very less compare to HUL.

CONCLUSION:

In this analysis I found that a vast majority of rural consumers prefer LUX and

LIFEBUOY most trusted brands. But all these brands are costlier and entrance of

ITCs soaps with vast of soaps varieties i.e. Superia for mass and de wills for high

income group population with competitive prices attracting rural consumers to use

ITCs soaps.

Advertisement(TV ad) most influences buying behavior of rural consumers

Local influential persons are the best source for awareness of FMCG product

BUZZ are used to choose a brand

Low price with good quality products have makeable sales result

Company should do UMBRELLA BRANDIND to set brand name in

consumers mind like HUL,DABUR,NIRMA etc.

RECOMMENDATIONS:

1) Company should held awareness campaign about ITC.

2) There should be oil ingredient in soap to replace external oil usage

DATABASE OF RESPONDENT COLLECTED THROUGH SURVEY

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ANNECTURE

S.

NO

.

NAME GEND

ER

(M/F)

AG

E

(YEAR

S)

CONTAC

T NO.

EDU

.

QUA

L.

OCCUPATION INCOME

Lacks/ye

ar

1. SUNITA POPAT F 35 9272189

396

8th SARPANCH 1.5

2. KISHORE

GHODEKER

M 26 8087806

286

10TH TAILOR 0.80

3 POPATCHAUHAN

M 40 9823551114

12TH DECORATOR 2.75

4 VISHWANATH

RAM CHANRA JI

M 54 9823419

844

12TH RETIRED FAUJI 1.5

5 NAMDEV

KEDARI JI

M 33 9637821

825

8TH FARMER 1.4

6 ABHISHEK

RAMESH JAIN

M 19 8730819

797

12TH JWELLERY SHOP 2.7

7 MADHUBALAPARIMAR

F 42 9970825211

8TH CONSUMERDURABLES

GOODS SHOP

1.5

8 SAMDEEPGAUR

AV

M 24 9272189

399

5TH VEGETABLES

SELLER

0.55

9 MAHENDRA M 21 9325239

004

10TH MOBILE

ENGINEER

1.0

10 ROHIT

SINDHEY

M 18 9823598

280

B.

COM.

STUDENT ----

11 MANOJ

CHANDAN

MAL JAIN

M 22 9823885

259

10TH SHOP KEEPER 1.7

12 MOHAN M 51 9850296 8TH RESTAURANT 4.5

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GANPAT

DABADE

533 OWNER

13 OKAJI GAIKWAD M 32 9766064733 4TH FARMER 0.8

14 PANDURANGGAIKWAD

M 51 9767135412 4TH FARMER 0.72

15 DILIP DEVKAR M 32 9823528166 4TH FARMER 0.90

16 JENENDRA APPA

GAIKWAD

M 23 9764085645 4TH FARMER 0.45

17 MOHAN DEVKAR M 30 9823847923 7TH SHOP 1.0

18 SHANKAR MANE M 27 9673931211 8TH SHOP 0.75

19 HEMCHAND

DESHMUKH

M 19 - 5TH SHOP 0.80

20 MANOHAR M 29 9665623757 7TH FARMER 0.50

21 SHRIKANT

SHILONE

M 28 9049532451 8TH SERVICE 2.0

22 SUNIL NIKAM M 18 9503847062 12TH SRVICE 1.75

23 SACHIN PUJARI M 18 9765982678 10TH SERVICE 2.25

24 TULSIDAS

BHIKARI

M 26 9823885037 10TH FARMER 0.55

25 UMESH PAWAR M 21 9623136832 12TH SHOP 0.90

26 VIJAY GHARE M 24 9823396552 12TH SERVICE 1.5

27 VIJAY GAIKHE M 31 9923608505 12TH SERVICE 1.2

28 DINESH

PADWARKAR

M 17 9049373069 10TH SHOP 0.45

29 DATTARE

PAWAR

M 24 9823851524 10TH SHOP 0.36

30 SUNIL KHADKI M 25 9664911242 7TH SHOP 0.45

31 DHNANJAYSATHE

M 21 9637394305 9TH

SERVICE 2.0

32 SANTOSH

DEVIDAS

M 26 - 10TH SHOP 0.35

33 SUDAM SOPAN M 36 9673767551 8TH FARMER 0.30

34 DEVKAR M 26 9765943213 4TH FARMER 0.55

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35 SWAPNIL

PADWAR

M 24 9823671021 9TH SERVICE 1.6

36 MAHADEV

BOTRE

M 42 - 4TH FARMER 0.7

37 SHRIRANG

PANDURANG

M 27 9637545230 4TH FARMER 0.35

38 VISHAL YAWLE M 25 9960855291 8TH SERVICE 0.90

39 SANTOSH

PADWAR

M 25 - 9TH SERVICE 0.65

40 SHANKAR TAPE M 29 - 5TH SHOP 0.45

41 YASHWANT TAPE M 22 - 4TH SHOP 0.22

42 THANTARAM

GAIKWAD

M 29 - 6TH FARMER 0.25

43 MADHURAM

PADWADE

M 45 9765421663 4TH SHOP 0.35

44 SANTOSH

KASHIRAM

M 25 9923457909 10TH SHOP 0.35

45 ARUN

THAKARKAR

M 35 10TH FARMER 0.65

46 DASHRATH

PADWAR

M 26 4TH FARMER 0.70

47 PRAKASH

DESHMUKH

M 24 4TH SHOP 0.40

48 RAJU

DESHMUKH

M 27 9823481861 4TH SHOP 0.32

49 RAGHUNATH

BOTHRE

M 33 9673128588 2TH SHOP 0.35

50 RAJU

DESHMUKH

M 17 9823481861 4TH SHOP 0.25

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26763364 itc project report by akhilesh kumar 120815102444 phpapp01

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