2011

Priyatharesini R

Thiagarajar School of Management

9/8/2011

REPORT ON CHANDAI VISIT

“Do well by doing good”

ural consumers are different Indian consumers. It’s a heterogeneous block with numerous homogeneous pockets existing within. Our rural consumers are not stuck in the dark ages as the traditional myth goes. They are just different from their urban

counterparts in aspects. Both consume the same product but neither of them shall be targeted the same way as the other, for their demographic and geographic pockets are on the whole varying. My personal opinion is that they serve as a platform for product innovation, they are our latent consumers. More than price, I believe value could smartly be played to gain market share.

R

The report encompasses observations made during the visit to Uppukottai retail outlets and Chinnamanalur chandai visit on 08.09.2011, Thursday. This includes the following,

I. Stall layoutII. Product categories sold

III. Consumer behaviourIV. Communication medium

Stall layout

Retail Outlets are structured the same way as in urban, not far different neither the same, just a replica. Depending upon the outlet types spurious product categories varied. Right from chemist, retail grocery outlets, the outlet type extended up to paint retail shops. The peculiar part is that Uppukottai consists of jewellery shops and garment retails too.

The above picture depicts that rural outlets too have same format as that of urban

The above picture is an outlet from Uppukottai

All these retail outlets were just a part of their house building, with more number of products being displayed on concrete floors that extend outside the shops. Moreover all these retail outlets were almost closely located from each other.

Chinnamanalur chandai is no way different from any other typical chandais I had been before. Layouts were almost similar, either under a tree or under a sack tent or under coconut leaf- made roof shelter. Almost all products were visible, whether the outlet is big or small, when I stood in front of the outlet.

Tent shelter at Chinamannalur Chandai

The above picture shows vehicle carrying products & as well eateries being sold over a wooden bench

Similar to the one above, we happened to come across truck carrying apparels and other fancy products which drove across the streets of Uppukottai and also aluminium utensils being sold by hawker on cycle.

The outlet layout depicts how products are being placed and they emphasis the statement written in my report, that the visibility level is high in case of rural

chandais

Chandai on the whole was highly flooded with hawkers of same category, while few categories being concentrated on one particular side of the chandai. For example, whole sale cereals, vegetable hawkers were mostly concentrated at same location. While speaking with a hawker we came to know that depending upon the layout size, contractor charge them rent.

Product categories

Rural consumers too have same kind of need as their urban counterparts. This was well revealed from the category being sold. Can anyone imagine a fabric conditioner being sold at a retail outlet that to in a rural chandai and the more interesting part is that the category is of a leading brand.

The basic category of FMCG products from face powder to tooth paste, mosquito coil to cool drinks everything is available. Apart from these usual categories there were also wall paints, stainers, cement, DTH recharge coupons and fabric conditioners.

BRANDED PRODUCTSNATIONAL BRANDS LOCAL BRANDSGold winner (sachet) Raani detergent soap – 3 SKUs availableMeera shekakai Oorvasi detergent soap All clear (sachet) Bleso cocnut oil (sachet) – 1 RsLux APL coconut oil (sachet) – 2 RsMedimix Sakti coconut oil (sachet)Aachi masala food products Vijay Marie munch biscuit Comfort Garden moongdal - 5 Rs

Ok (kurkure kind of product) – 2 RsBlesso cough syrup – 3RsStar masalaSunbright detergentActive Power

Spurious Product

BRAND NAMEAPL coconut oil – 2Rs Package printing looked alike VVD Garden moongdal – 5 Rs Package & design looked like HaldigramSakti coconut oil Package, design & brand font similar to

Parachute Marie munch biscuit – 10 Rs Package & printing like that of Britannia Games – 1Rs Package design similar to that of GemsEyefex Exactly appeared like EyetexNatraj Ink Logo design & font similar to NatarajPurelite paint – 110 Rs Logo similar to Asian paint & the name

similar to PidiliteScooter incense stick – 10 Rs Package, printing & font similar to Cycle

brand Chocó Rabdi Logo package & printing exactly like

Cadbury diary milkAachi mosquito coil Font style of Aachi Masala foodsFunny chocolate & Musti chocolate Font style and package printing looked like

Perk chocolate 707 detergent soap Just like 501 soap detergentPurelite stainers Brand name similar to Pidilite stainers

Pictures of few spurious products is shown below

When we observe these spurious products closely we will be able to grab the psychological aspects of consumers that which these local producers are trying to play with. They modify either the package (Active power detergent soap), letters of the brand name (as in case of Eyefex, Games, Natraj) or the very brand name itself (top ramen & Aachi coil), brand logo ( Chow Rabdi) or at least with the package printing (Shakti cocnut oil, funny chocolate, scooter incense sticks etc)

It was observed that cool drink bottles though printed with brand names were in most cases filled by local colour cola manufacturers

Most of the confectionaries, few biscuit packets, Chocó sticks and even puddings being sold were packed and printed stating they are manufactured from Hyderabad. Outlet owners say they sell Hyderabad products and these are being bought by them from Theni town. There exists huge brand awareness among retail outlets.

Consumer behaviour

When it comes rural consumers they always exhibit heterogeneous behaviour right from single serve revolution of shampoo, oil etc. All these are the evidence to prove that these potential consumers have need which has to be targeted with novelty. Chinamannalur chandai is being visited by nearly 3Lakh rural population from 22 villages around the locality.

The following were the observations from Chinamannalur Chandai

Customers keep credit in case of wholesale cereal and rice grain outlets Consumers are extremely value conscious Middle class rural consumers purchase vegetables and similar kind of perishable

products while other things were purchased by them from nearby kiosks Consumers were highly heterogeneous wherein few pockets of consumers reacted

positive for brand consciousness while the other pockets showed affinity for need fulfilment

Mostly women consumers of middle class rural population made purchases while men were the one to purchase in case of lower class rural population (this class isn’t much aware of brands as they claim they are illiterate)

Buying pattern also showed heterogeneous nature as respondents replied that they purchase according to their need

While middle class rural respondents said they visit chandai on weekly basis to purchase vegetables alone

Communication medium

Rural market is in no way different in terms of communication mix atleast as far as Chinamannalur and Uppukottai is concerned

Following were the observations made in Uppukottai and Chinamannalur chandai

Truck van carrying tape recorders with mic Wall paintings, which also do exist in urban market Wall posters in outlets Tree branding, but those few trees inside chandai weren’t used for promotion Bill boards in front of retail outlets

But the retail outlets did not carry as many promotion posters or bill boards as their urban counterparts. If only billboards are available in retail outlets they are made by the owners themselves. Mostly they did not carry and branding with few exceptions in Chinamannalur.

Conclusion Note

You may wonder why I started off with “Do well by doing good”, but this is a quote made by C.K. Prahalad in the ‘Bottom of the Pyramid’. His research when read by marketers shall be perceived this way, when we deliver good product or service at affordable cost that which either meet their needs or the need that was induced by us, shall bring wellness not just to the rural consumers but also to the brand or the product or at least to the category. Leveraging the product value in the mindset through innovative purchase schemes or product usage or by blending with the available infrastructure shall bring acceptability for the product or brand among the rural consumer market.

The real source of market promise is not the wealthy few in developing world or even the emerging middle income consumers. It is the billions of aspiring poor who are joining the market economy for the first time.

- C. K. Prahalad