Presented To:-

Presented By:-

Sudhir Singh RajputProf. (Dr.) Ekta Rastogi

Title of the Project :- Study on Rural

Marketing With Special Emphasis on

Customer Preference For HUL in Rural India

FINAL YEAR PROJECT REPORT PGDM 2011 – 2013

Organization Definition of Rural Limitation

Census

• Several hamlets demarcated by physical boundaries

• Towns are urban areas that satisfy:Minimum population 5,000Population density > 400 per sq. Km.75% of the male population engaged in

non-agricultural activities

The term “rural” is not defined, nor is the upper limit of population for villages

IRDA• Similar to Census except that the

percentage for male population in towns is 25% and not 75%

Widening of definition allows a larger market to be considered as rural

RBIRural: All locations with a population of up to 10,000Semi-urban: All locations with a population between 10,000 and 100,000

Distinction defined only by population

Definition of Rural

Organization Definition of Rural Limitation

Planning Commission

Towns with population up to 15,000 are considered rural

Town characteristics not defined

SaharaLocations with shops/commercial establishments up to 10,000 population.

Town or village characteristics not defined

LG ElectronicsAll population centres other than the 7 metros are considered rural or semi-urban

Population criteria is not considered

Definition of Rural

Type Public

Industry Consumer Goods

Founded 1932

Headquarters Mumbai, Maharashtra, India

Products Food, Beverages, Personal Care Products and Cleaning Agents

Key People Harish Manwani (Chairman)Nitin Paranjpe (CEO & MD)

Employees 16,500 (2011)

Parent Uniliver Plc (52%)

Net Income 26.91 Billion Rupees(2012–13)

Website www.hul.co.in

INTRODUCTION

About the Company :- HUL

HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products.

The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited.

Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6.4 million outlets in the country.

As per Nielsen market research data, two out of three Indians use HUL products.

PRODUCT MIX

6

PRODUCTS

MARKETING STRATEGIES OF HUL

STRATEGIES I HAVE MADE

Rural Marketing Mix The 4 Ps of marketing –Product, Price, Place and

Promotion – replaced by 4 As in rural markets

Affordability

Availability

Awareness

Acceptability

For long term benefits, HUL started Project Streamline in 1997.

MARKETING STRATEGIES OF HUL

FOR RURAL INDIA

Project Shakti, partnership with Self help groups of Rural women & covers 5000 villages in 52 districts in different states.

Appointed 6000 Sub-stockists that directly covers about 50,000 villages & 250 million customers.

Integrate Economic, Environment & Social objectives with Business agenda.

1

EVERYDAY I WILL SELL.EVERYDAY I WILL EARN.MONEY, RESPECT

Started in 2001, Shakti is HUL's rural initiative, which targets small villages with population of less than 2000 people or less.

micro-enterprise opportunities for rural women

Providing health n hygiene education through shaktivani program

Shakti has already been extended to about 15 states ,80,000 villages in with 45,000 women entrepreneurs and generating Rs.700-1000 per month to each women.

OBJECTIVE

To analyze the present promotional strategy of rural brands (HUL) in rural markets.

To measure the success of rural marketing campaign of the brands (HUL) in terms of consumer

appreciation.

To evaluate the effects of adopting the specific brand ambassadors in the rural marketing context.

To analyze the market opportunity and potential for existing and new entrants in the rural market.

Research Methodology

The following sites had been identified and surveyed:

Uttar Pradesh (Unnao District) a) Asha Kheda b) Babakheda c) Nawabganj d) Sohramau e) Banthara

Research Methodology

A sample of 4 respondents per village was interviewed.

Random sampling was done for interview of the respondents in every village.

The research was carried out for a period of 30 days from 17th February to 17th March 2013.

The total sample collected was 20 respondents.

Research Methodology

Data Collection

Primary Data had collected through personal contact.

For this purpose both Questionnaire and one-on-one interview was considered with the consumers.

Secondary data had collected from magazines, newspaper, company literature and Websites.

Research Methodology

Research Approaches Survey Research Observational Research Close-Ended Questions

Analysis Methods Percentage method

Methods of research data presentation Tabular forms Graphs Description

FINDINGS

Mostly four modes of communications were used by the companies in the rural areas.

Rural people wanted the promotion to be more focused on the usage and need of the product.

Brand Ambassadors are the most important part of promotions, in the FMCG promotions by celebrities is

very common.

The rural India has that huge potential market that can drive the whole nation.

FINDINGS

electronics media15%

print media20%

compaigns37%

direct contact28%

Modes of Promotion Companies are Using

FINDINGS

COMPITITOR25%

PRICE19%

UTILITY12%NEED

9%

BRAND AMBASS-

DOR35%

PROMOTION FOCUS UPON

Area of Promotion Should Change

FINDINGS

COMMUNICATION ; 26%

AMMBASDOR; 13%

UTILITY; 25%

SPECIFICITY; 12%

PRICE; 24%

HUL is out performance

FINDINGS

Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 20120

2

4

6

8

10

12

14

16

18

6 6

4

5.5 5.5

7

0.5

7

12

1615.5

18

FMCG growth HUL's FMCG growth

RECOMMENDATIONS

HUL should focus more on the utility of the products while promoting in the rural areas.

The life-style of these people is different from those in the urban areas.

HUL should provide full information in the rural promotions starting for the need,

utility, availability, price and the pack sizes available.

RECOMMENDATIONS

HUL should have separate strategies for rural as well as urban markets and should take care of addressing the needs of the rural

people in their promotions.

Brand ambassadors should be relevant to the product and must look like he/she would be using the product in the daily life style.

LIMITATIONS

The sample size may not adequately represent the national market.

The duration of the project work was short enough to allow the full exposure.

Many Individuals were not interested in answering the questions.

Lack of Research Experience.

Thank You…