Rural Marketing of FMCG’s By NISHANTH H

Rural Marketing of FMCG’s

FMCG Fast-moving consumer goods (FMCG) or consumer packaged

goods (CPG) are products that are sold quickly and at relatively low cost

Characteristics:

Customer Perspective

Frequent Purchase

LowInvolveme

ntLow Price

ShortShelf life

Marketer’s Angle:

High VolumeLow

Contribution Margin

Extensive Distribution

NetworkHigh Stock Turnover

INDIAN FMCG COMPANIES

INDIAN FMCG INDUSTRYFourth Largest in the Indian Economy

The market size of FMCG in India is estimated to grow from US$ 30 billion in 2011 to US$ 74 billion in 2018.

Food products is the leading segment, accounting for 43 per cent of the overall market.

The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods.

FACT

According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan UniLever. 

TOP TEN TOWNS SPENDING ON FMCG PRODUCTS

CHARACTERISTICS OF INDIAN FMCG SECTOR

Products with quick turnover and relatively low cost

Absolute profit is relatively small

High Demand

Profit driven sales volume

SUCCESS OF FMCG

High Sales

Good Marketing Strategy

HighProfit

CHALLENGES IN THE FMCG INDUSTRYTransportation Problem: Transportation infrastructure is quite poor in rural India. Nearly 80 percentages of villages in the country are not connected by well constructed roads.Warehousing: In the rural areas, there are no facilities for public as well as private warehousing. Marketers face problem of storage of their goods.

Packaging: It is the first important step of product processing. If the packaging cost is high, it will increase the total cost of products

Media Problems: Media have lots of problems in rural areas. Television is a good medium to communicate message to the rural peopleSeasonal Marketing: The main problem of rural marketing is seasonal demand in rural areas, because 75% of rural income is also seasonal.

Low Per Capita Income: Per capita income is lower in rural areas compared to those in urban areas.

Low Level of Literacy Rate: The literacy rate is low in rural areas compared to urban areas. This again leads to the problem of communication for promotion purpose.

Career in Rural Market: While rural marketing offers a challenging career, a rural sales person should require certain qualifications and specialized talent to deal with rural consumers..

Cultural Factors: Culture is a system of shared values, beliefs and perceptions that influence the behavior of consumers

Change in Rural Market

Villagers who used to crack open the peanut, eat the nut and throw away peanut are now demanding for chocolate candies that will melt in their mouths, and not in their hands

Charcoal cleaned teeth are a rare sight these days

EXAMPLES OF RURAL MARKETING

Philip developed a TV “Vardan” for rural markets. This TV works on the voltage of 90-270 volts.

Philip developed a “Free Power Radio” this radio do not power or battery also and runs on simple winding of level. Priced at attractive price of Rs. 995/-

LG launched Color TV called “Cineplus” and priced at Rs. 5,000.

THANK YOU