A Research Study on Rise of Retail sector in Rural India
Karan Kathuria (9030241411)
Nitin Solan (9030241419)
Sumit Aggarwal (9030241433)
Vibhor Gupta (9030241436)
Table of Contents
Purpose of the Study
Research Methodology used
Data Analysis - Preference of Various FMCG goods in rural market
Toothpaste market in rural sector
Different Soap Brands in Rural Market
Preference of different shampoos
Preference of consumer towards detergents
Analysis of all data collected
Data Analysis - Strategies used by different companies to expand their market share
Strategies to penetrate the rural market
Strategies adopted by companies and output they got
Coca Cola’s Parivartan
Findings from the Research
Table of Figures
Figure 1: Demands of Different Toothpaste Brands
Figure 2: Demand of Soap Brands
Figure 3: Demand of Shampoo Brands
Figure 4: Demand of Shampoo in Sache Category
Figure 5: Demand of Detergents
Figure 6: Demand of Detergent in Sache
Figure 7: PUB Model for enhancing consumer awareness
Figure 8: ITC’s share of rural market
Figure 9: Sales Figure of Amul
Table of Tables
Table 1: Strategy Matrix for rural penetration
The revolution in retailing industry has brought many changes and also opened door for many Indian as well as foreign players. In a competitive and volatile market like India there is a constant clash between challenges and opportunities. Plenty of companies are devising strategies to maintain their foothold and increasing their profits in organised retail sector. In order to maintain their supremacy most of the organised retail industries are planning to venture out in rural sector. Rural population in India forms almost 70% of India’s Total Population. Most of the needs of rural population is covered by unorganised retail players. This paper aims at studying the buying patterns of rural consumer with respect to FMCG goods. Different strategies which retail stores or companies selling FMCG goods have adopted in order to reap profits from rural sector and in the mean time expand its footprint in the retail sector. How have these strategies benefitted the companies and what more they can do in order to further expand their share in this sector.
India’s GDP figures of last quarter of financial year 2008-09 reveal that rural sector is one sector which has remained aloof from the effects of global recession. One of the major factors for this can be attributed to the fact that 12.2% of world’s population is present in rural India.
There has been growth in agriculture for four consecutive years (for the first time in the past 40 years). While input prices have been benign due to huge subsidy, the minimum support price (MSP) of copra has increased by 18% and that of wheat and paddy (apart from increase in other crops like cotton, sunflower, pulses, soybean, jute, and groundnut) has increased a sharp 40%; besides, MSPs have never declined in the past. The farm loan waiver of INR 716 billion, National Employment Guarantee Act (payout of INR 300 billion), and shift to higher-value crops such as horticulture have put More money in the hands of rural consumers. Salaried workers (teachers, PSU banks and post office employees, power and other government departments) in rural India are mostly in government service (not impacted by the economic slowdown) and the wealth of rural consumers is safe (savings in post office and bank fixed deposits) unlike many people in urban areas who have lost money in the stock market. This has made rural sector immune to the...
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