Marketing of FMCG To Rural Consumers in Andhra Pradesh - Literature Review
Marketing of FMCG To Rural Consumers in Andhra Pradesh - Literature Review
net/publication/336125860
CITATIONS READS
0 1,866
2 authors, including:
SEE PROFILE
All content following this page was uploaded by Venkat Ram Raj Thumiki on 09 October 2019.
FMCG emerged as a major product category in rural consumption in India. Companies marketing FMCG to rural
consumers cannot merely extend their general/urban marketing strategies to rural markets. Instead, they need to devise
rural specific strategies. In this process, they need to understand crucial issues relating to rural consumer behavior and
specifically relating to different geographic regions of the country. The current literature review was conducted to
understand the rural consumer behavior in general and with reference to purchase of FMCG in particular. Along with
literature on FMCG purchase and consumption by rural consumers, literature related to other product categories is also
reviewed. The literature review includes, factors influencing rural purchase, issues relating to rural communication,
media influences, differences in behavior of rural and urban consumers and product preferences of rural consumers
related to consumption of FMCG and other categories of goods. Finally, the gap is identified and presented.
Key Words: trust factor, value for money, low cost, premium products, opinion leaders, below-the-line advertising
1
Assistant Professor in Marketing, Dept. of Business & Economics, Modern College of Business & Science, Muscat, Sultanate of Oman.(E-mail: [email protected])
2
Associate Professor & Head, Dept. of Management & Commerce, Maulana Azad National Urdu University, Gachibowli, Hyderabad. (E-mail: [email protected])
Chart 1: Rural Buyer-Seller (Producer) Matrix
Challenges and problems in rural marketing characteristics that pose challenge to rural marketers
While rural markets present a great opportunity to include, low literacy, ignorance of their rights as
companies, they also impose major challenges. Though consumers, low purchasing power and indifference to
Green Revolution and rising incomes created demand for quality or standards. According to Mehra, Preeti (2002)
products in rural markets, companies continued their tackling with the problem of spurious products in rural
focus only on urban markets for the obvious reason, high markets is a greater challenge. Table 2 gives a quick idea
cost of distribution in rural areas (Singh, Jagaman, 2008). on some of the major challenges encountered by rural
According to Sayulu & Ramana Reddy (1996), marketers.
1 Low literacy, ignorance of their rights as consumers, low Sayulu & Ramana Reddy (1996)
purchasing power, indifference to quality or standards
2 High cost of distribution Singh, Jagaman (2008)
3 Problem of spurious products Mehra, Preeti (2002)
5 To offer world class quality at low price Bhale Rao, et. al. (1981)
Prahalad, C.K. (2005)
Branding in Rural Markets Pingah (2000) found out that the rural customers are
aware of various brands and variants available. Rural
Rural consumers prefer national brands (Bishnoi &
people are increasingly preferring branded products as
Bharti, 2008) and also there is no significant difference
the brand consciousness is increasing in rural areas
between brand preferences of different income groups
(Patel, Naresh & Prasad, Reshma, 2005).
(Jain & Sharma, 2012). Mitra, Rashmi, & Venu Gopal,
Type of promotional Replacement offers, festival Installment purchase Anand & Hundal (2008)
scheme preferred offers, free gift schemes, schemes, off-season discounts,
free after-sales service 0% interest schemes
Information process Contents of cold media Contents of hot media Zacharias & Nadkarni
capability (media with low information (media with high information (2005)
content and less taxing for content: Eg: print media)
senses: e.g., television)
Anand, Sundeep and Krishna, (2008), “Rural Brand Dharmarajan, S. (2000), “Rural Marketing–A Tamil
Preference Determinants in India”, Conference on Nadu Model”, Kisan World, Vol. 27(6), pp. 12.
Marketing to Rural Consumers – Understanding and
tapping the rural market potential, IIM-K, 3-5 April, pp. 1-5.
Dhunna, Mukesh (1984), “An Analysis of Consumer
Dommermuth, W.P. (1965), “The Shopping Matrix Kaur, Pavleen and Singh, Ranbeer (2005), “Conflict
Marketing Strategy”, Journal of Marketing Research, Resolution in Urban and Rural Families: A Factor
Vol. 2, pp. 128-132. Analytical Approach, Vision”, The Journal of Business
Perspective, Vol. 9(1), pp. 59-67.
Gopalaswamy, T.P. (1997), “Rural Marketing: Krishnamurthy, Jagadeesh (2009), “The Challenges and
Environment, Problems and Strategies”, Vikas Opportunities of Marketing in Rural India”, Events Faqs
Publishing House, New Delhi, pp. 32-48. Newsletter (EF), December, pp. 14-18.
Habeeb-Ur-Rahman, K.S. (2008), “Rural Marketing in Kumar, S.A. and Madhavi, C. (2006), “Rural Marketing
India”, Himalaya Publishing House, Mumbai, pp. 2-12, for FMCG”, Indian Journal of Marketing, Vol. 36(4), pp.
21-25, 29, 32, 51-76. 19-38.
Halan, D. (2003), “Rural Marketing is a Different Ball Kumar, Sanjeev and Bishnoi, V.K. (2007), “Influence of
Game”, Indian Management, November, pp. 60-68. Marketers’ Efforts on Rural Consumers and Their
Mindset: A Case Study of Haryana”, The ICFAI Journal
of Brand Management, Vol. 4(4), pp. 28-50.
Iyer, Gopalakrishnan S. (2006), “Media For Rural
Marketing”, i4d, Information For Development, January,
pg. 20-22, www.i4donline.net/jan06/ict_marketing.pdf. Layton, Merrilyn (1986), “Interplay of traditional and
modern components in Household Buying Decisions in
an Industrializing Community”, International
Jain, Abhay and Hundal, S.S. (2006), “Barriers in Mobile Conference on Marketing and Development, 1986. Ball
Banking Adoption in India”, The ICFAI University State University, Indiana.
Journal of Bank Management, Vol. 5(3), pp. 64-73.
Mishra, Prakash Vishnu and Mishra, Manmohan (2011), Sarangapani, A. &and Mamatha, T. (2008), “Rural
“Rural Products & Its Market in India”, International Consumer: Post Purchase Behaviour and Consumer
Journal of Management & Business Studies, Vol. 1(3), Behavior”, The ICFAI Journal of Management Research,
pp. 151-153. Vol. 7(9), pp. 37-67.
Mitra, Reshmi and Venu Gopal, Pingah (2000), Sayulu, K. and Ramana Reddy, V.V. (1996), “Socio-
“Consumer Aspirations in Marginalized Communities: A economic influences on rural consumer behaviour – An
Case Study in Indian Villages, Consumption”, Markets empirical study”, Management Researches, Vol. 3, pp.
and Culture, Vol. 4(2), pp.125-144. 41-51.
Modi, Pratik (2009), “Rural Marketing: Its Definition Schiffman, Leon, G. and Leslie, L.K. (1998), Consumer
and Development Perspective”, International Journal of Behavior, 6th Edition, pg. 18.
Rural Management, Vol. 5(1), pp. 91-104.
Park, C. Whan and Richard J. Lutz (1982), “Decision Shapiro, B.P., Rangan, V.K., Moriarty, R.T. and Ross,
Plans and Consumer Choice Dynamics”, Journal of Elliot (1987), “Manage Customers for Profits (Not Just
Marketing Research, Vol. 19, pp. 108-115. Sales)”, Harvard Business Review, 65(5), pp. 101-108.
Patel, Naresh and Prasad, Reshma (2005), “The Unique Sherlekar, S. A. (1982). Marketing Management,
Rural Identity”, Indian Management, Vol. 44, pp. 72-76. Himalaya Publishing House, pp. 72.
Rajashekhar, D and Sahu, Gagan Bihari (2004), “The Shivakumar, K. and Arun, G. (2002), “Buying Behaviour
Growing Rural Urban Disparity-Some Issues”, Working in the Hinterland”, Indian Management, Oct, pp. 55-57.
Paper 156, Institute of Social and Economic Change
(ISEC), ISEC News, Vol. 11(2), pp. 10.
Sikroria, Rajiv (20120), “Exploring Promotional Mix in
Indian Rural Market (Case Study of FMCG Brands)”,
Rajeev Kaushal, Raghubanshi, C.S. and Sinha, B.K. International Journal of Business and Management
(l976), “Purchasing Behavior Pattern of the Consumers Cases, Vol. 1(2), pp. 1-12.
and their Brand Preferences for Washing Soaps
Syndets”, Indian Journal of Marketing, Vol. 8, pp. 9-14.
Singh, Jagaman (2008), ‘Business Challenges in Rural
Areas”, Marketing Mastermind, IUP, pp. 23-26.
Ramanacharyulu, A.V. (2004), “Value Chain Analysis
and Market Segmentation in Rural Marketing in India”,
IUP, Hyderabad, pp. 63-72. Sivakumar, S. (2002), “Collaboration works”, Business
World, 8th April, 2002.
Venkatesh, Parthasarathy and Piyush Kumar Sinha, Zacharias, Christopher and Nadkarni, Makarand (2005),
(2008), "Processing of product communication–A study “Using Non-Conventional Media Effectively”, in Rural
of rural audience”, Conference on Marketing to Rural Marketing Concepts and Cases, ICFAI University Press,
Consumers–Understanding and tapping the rural market Hyderabad, pp. 51-62.
potential, IIM-K, 3-5 April, pp. 33-40.