Growth of Fmcg Products in Rural Market

Topics: Fast moving consumer goods, Marketing, City Pages: 18 (6385 words) Published: April 12, 2010
This is to certify that Ms. Vrushali Awachar of IBS Nagpur has submitted her report titled, “Growth of FMCG products in rural market” for the year 2009-2010 in partial fulfillment of the requirement for the completion of practical study at the first semester of MBA programme. Place:

Date: _
As part of course in MBA for the first semester, we have to make a report based on sector analysis; which I am presenting is on Growth of FMCG products in rural market. This opportunity allows the students to study the real business environment and a consequent report further helps in improving on the communication and presentation aspects which are highly essential to be inculcated amongst Management students. This practical training at MBA programme develops a feeling about the difficulties and challenges in the business world. Only theory knowledge does not impart complete education. To fulfill these objectives these reports play an essential part in MBA programme. In this direction, I have tried my level best to analyze the various information obtained and have presented in a logical and understandable format. Acknowledgement

I forward gratitude to respected Dean Sir of our Institute. I am heartily thankful to the management for providing me the opportunity to make a study of practical training in their organization. I express my sincere thanks to the staff of the unit who have given us all the information and who guided us. I am also thankful to Prof. Upal Sinha and Dr. Sarita Modak with whose help; the study was conducted and made possible they provided full guidance, cooperation and valuable suggestion about the Report. I am thankful to my college friends and all those who have helped me directly or indirectly in the preparation of this report. With thanks…

Place: Nagpur
Date: 28th/08/2009
Yours Sincerely,
Vrushali Awachar
Contents of the Report
Table of Contents
Growth of FMCG products in Rural Market
2. Introduction
Sales zoomed from 35,000 sachets to 12 lakhs. Initially they took any sachet but now they are restricted to Chik sachets. Now at present, rural market is one of the best opportunity and focusing sector for the major FMCG companies in India. Each and every company is set to invest a huge capital for competition in rural market. According to the Federation of Indian Chambers of Commerce and Industry, the number of rural households using FMCG products has grown from 136 million in 2004 to 143 million in 2007,a clear indication that rural consumers are shifting from commodities to branded products. Urban consumers on the other hand could go slowly on FMCG expenses, thanks for inflation spiral, rise in fuel cost and costlier credit. Evidence suggest that for the first time, that the rural market has grown faster than the urban market in key product categories in April-May 2008, the latest months for which such information is available, according to market research firm NC Nielson. Market and Indian companies, in India.

* To study the challenges faced by rural marketers in India. * To study the reasons of popularity of rural markets in India. 5. Need of the study
To determine the demand of FMCG products in rural India. Know about the different choice of rural consumers.
Rural and Urban potential
_(table 1. Rural and urban population)_
_(Source: Statistical Outline of India (2001-2002) NCAER_
According to a study by Chennai-based Francis Kanoi Marketing Planning 7.Growth Prospects

With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their...

Bibliography: (Source: Statistical Outline of India (2001-2002) NCAER
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