Fast Moving Consumer Goods in Rural Market free essay sample

Keeping in view the frame of references the present paper is an attempt to study the factors affecting the purchase decision of consumers towards purchase of the Fast Moving Consumer Goods (FMCGs) and to recommend the policies which may be adopted by the advertisers to enhance awareness among the rural buyers. The study used primary data collected from a sample of 1000 rural consumers from the 40 villages of 04 districts of Haryana state with the help of a well-structured questionnaire by following „Foot-in-Door Strategy? (FIDS). And found that rural buyers perceived that TV commercials followed by print advertisements and word of mouth plays a significant role for taking the decision to purchase these FMCGs. We will write a custom essay sample on Fast Moving Consumer Goods in Rural Market or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Further, they consider their own experience, display at shops; incentive schemes for the purchase of these FMCGs, whereas they do not fully agree that advice of beautician influences their decision towards the purchase of these FMCGs. On the other hand, rural buyers perceived that social factors are no so strong that those may influence their decision to purchase these FMCGs. Hence, it may be recommended that the producers or marketers should frame ethical advertising strategies keeping in mind that rural people are fond of electronic and print media advertisements. Key Words: Frame of References, Foot-in-Door Strategy, FMCGs. Introduction As we know, consumers have different frame of references formed out of the information gathered from their experience. They try to fit the goods and services in these frames of references. If they do not fit they reject the  things. Many of these reference points are subconscious because they are deeply imbedded in the subconscious mind. It is important to have knowledge of assumptions and beliefs held by consumers. Some consumers may use price as an index of quality. They may declare a product or service as cheap if it sells at a price substantially below the level at which competitive brands are selling. Consumers make a number of assumptions regarding products, services and producers often without fact, e. g.  the beer in pastel colour bottles is thought to be lighter and beer in the coloured bottles is considered stronger. Similarly, natural fabrics e. g. wool are considered better that synthetic; and the products 1 IJTMR www. ijtmr. com International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744 produced in one country are considered superior than p roduced in other country. Attributes and beliefs are closely related to attitude but harder to change than attitudes. Many times, they are obtained from previous generations and are implanted in an early age of person. People above certain group affiliations and their assumptions and beliefs are drawn from affiliations as in the case of a social class (Sumathi, et al. , 2003). REVIEW OF LITERATURE Sukato and Elsey (2009) examined the phenomena of male consumer behaviour in buying skin care products in Thailand. In order to cope with the research purpose, Fishbein and Ajzen? s theory of reasoned action model is employed as a theoretical framework and modified by adding the self-image construct. The results of the study confirm that beliefs, self-image, normative influences, and attitudes have impacts on purchase intention and purchase behaviour in buying skin care products among Bangkok male consumers and therefore, the modified theory of reasoned action is appropriate to explain male consumer behaviour in the purchase of specific cosmetic product in the Thai setting. Vani, et al. (2010) examined consumer behaviour in Bangalore city regarding toothpaste bands and found that consumer awareness of toothpaste is less in Bangalore city. Oral care market offers huge potential as penetration and per capita consumption of oral care product is very low in India. Further, the study found that brand image, advertising and offer play an important role in purchasing toothpaste, sometimes based on the offer the consumer compare with competitor product and select the best one. Product attribute also analyzed by the consumer for deciding a brand. Switching of one product to other company product is mainly based on advertisement, brand name, packaging availability and price rise. Sridhar and Mishra (2010) analyzed that the rationale and method for studying product adaptation in rural markets and concluded that the findings of the study are contrary to the general understanding that rural is perceived very differently and hence operationalized differently by different organization. However, the results show that contingency theory holds true in case of product adaptation in rural markets also. With the increase in executives? representation of rurality, product adaptation degree also increased. Gautam and Gangal (2011) analyzed the factors responsible of the boom in rural marketing, consumers? preference for FMCG products based on 4 „A? s (i. e. Awareness, Affordability, Adoptability and Availability) by employing convenient sampling method for administering the questionnaires using Liker Scale to total 200 respondents of HUL ITC in rural areas of Agra district from January 2011 to June 2011. The study also found that the factors influencing the purchase decision of the respondents, consumers buying are influence the most by the product factor due to design, quality, durability, made from safe environment and product range but few respondents are not satisfied with the packaging, image and size of the product. Both the companies are almost on the same platform regarding the factors of competitive price, shape, design, Haats and mandis and message/languages/ presentation of advertisement. The consumers are showing their dissatisfaction for malls and super markets, greater mobility, shop is conveniently situated, and product display is attractive, value for price paid, cash discount and pricing policy. Lastly, the study concluded that in parameters like, image, shape and size, packaging, durability, small size products, low priced sample packets, price scheme, celebrity endorsement and use of transport like autos, camel carts, HUL has an edge over ITC. Vernekar and Wadhwa (2011) examined the consumer attitudes and perceptions towards eco-friendly products in FMCG sector and their willingness to pay on green products. The study revealed that the green products have substantial awareness among urban Indian customers and they are willing to pay something more on green products. The majority of customers considered that package is most important element of such products. Chandrasekhar (2012) analyzed the consumer buying behaviour and brand loyalty in rural markets regarding fast moving consumer goods and found that brand loyalty is more in Badangpet and Nadergul region and less in Chintulla in soaps category. In hair oil category, branded products usage is more in Badangpet and Nadergul villages and consumer prefer to purchase local brands in Chintulla village. It is also found that Vatika and Navratan hair oils dominate in Badangpet, Parachute hair oil in Nadergul and Gograda local brand and Dabur in Chintulla. In case of Biscuits category, consumers mostly buy in loose, which are available in nearby shops like Salt biscuits, Osmania biscuits etc. Parle-G and Tiger are mostly used brands in Badangpet. Tea is purchased in loose, which is available in local shops. The popular brands Red Label, Three Roses and Gemini are used in Badangpet village. Further, the study found that coffee consumption is very less or no consumption in Nadergul and Chintulla villages. In case of washing powder, Nirma dominate all the three selected sample rural markets regions. In remote area like Chintulla, Nirma sell Rs. 1 sachets. In washing soap category, Rin, 501, Nirma, XXX and Extra 3 IJTMR www. ijtmr. com International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744 Local Brand dominates all the three selected rural markets. It is also concluded that Ponds, Chintol and Santoor face powder dominated the market and Pond? s has dominated the market in consumption in Badangpet. In sum, the study also found that male members of the family are alone going to buy consumer products and women are not interested in shopping and do not come out from their houses frequently. Jain and Sharma (2012) analyzed the brand awareness and customer preferences for FMCG products in rural market of Garhwal region. The study found that average awareness of the respondents in the rural market is approximately 75 per cent, 70 per cent, 72 per cent, 64 per cent and 73 per cent in case of shampoo, washing powder, soap, tea, toothpaste respectively, which infers that people in the rural market have on an average awareness about most of the products. In the shampoo category, the study found that the respondents give 1st rank to Pantene and last rank to Chik; in case of washing powder, 1st rank to Surf Excel and last rank to Nirma; to soap category, 1st rank to Dettol and last rank to Rexona; in case of Tea, 1st rank to Tata tea and last rank to Maharani tea and in category of toothpaste, 1st rank to Colgate and last rank to Cibaca which infers that advertising and marketing activities have major influences in choices of people in rural market. The study further found that among various factors like quality, price, easy availability, family liking, advertisement, variety, credit attributes of brand preference; the quality is the first preference in case of brand choices and rural people give least preference to variety and credit attributes. It is also concluded that there is a positive impact of media on brand preference of FMCG products among consumers. Jayswal and Shah (2012) analyzed the effect of some selected FMCG product? s television advertisements with commonly used negative emotional appeals on cognitive message processing style of Indian house wives. The study revealing different effect of different advertisement with negative emotional appeals derived that advertising creative aspect has considered most important and it has been truly said that â€Å"what you say is equally important to how you say. † Through varied hypothesis developed by the researcher, the findings is negative emotional advertising appeal makes the cognitive response positive, helps to form positive attitude and this increases the customer intention to buy the brand. The different advertising themes have difference in their effect on individual perception. When there are special discount and dentist suggest them to purchase the toothpaste they definitely purchase it. Ranu and Rishu (2012) analyzed the scope of Ingredient branding in creating sustainable differentiation advantage for FMCG companies. The results of the study revealed that careful planning must be done before entering into a relationship in order to maximize the benefits of any ingredient branding strategy. Along with the costs involved in forming and maintaining the alliance, and the opportunity cost involved for the partnering firm, the consumer? Perception about the benefits they derive from different types of sales promotion schemes in durable goods and to build a framework showing the valid relationships among all types of multiple consumer benefits of sales promotion in consumer durables. This exploratory study is mainly based on field survey carried out in India. The findings indicate that consumers perceive factors like savings, higher product quality, shopping convenience categorized as utilitarian benefits and value expression, entertainment, exploration categorized as hedonic benefits as primary reasons for taking advantage of various sales promotion schemes. Vaishnani (2012) examined and measured brand equity perception with reference to sales promotion schemes for selected FMCG products and it is concluded that there is no significant difference between of brand equity perception among gender as one of the demographic variables. Apart from it, it is concluded that there is significant difference between brand equity perceptions among various employment status. Adding to it, it is clear that self employed consumers compare to not employed 5 IJTMR www. ijtmr. com International Journal of Techno-Management Research, Vol. This is proven through study of FMCG data and it is shown that price promotions can be optimized to improve return without increased risk. After, reviewing the existing literature it is observed that the above studies have considered different factors a lot. However, these studies not focussed upon the purchase decision behaviour of rural areas. Consequently, the present study entitled â€Å"Customer’ Perception towards the Fast Moving Consumer Goods in Rural Market: An Analysis† may be conducted. Methodology and Objectives The present study is of exploratory, descriptive, pure and empirical in nature.

Germany Analysis Essays - Economy Of Germany, Free Essays

Germany Analysis Essays - Economy Of Germany, Free Essays Germany Analysis INDUSTRY IN GERMANY Country Issues Country issues related to Germany are addressed in four contexts. The areas of consideration are (1) cultural, social, and demographic trends and concerns, (2) political/governmental concerns, (3) exchange rate issues, and (4) macroeconomic issues. Cultural, Social, and Demographic Trends and Concerns Germany is the slightly larger then the combined size of Ohio, Pennsylvania, and New York. (137,691 square miles.) Germany is a nation of 81.5 million people (Hunter, 1997). The rate of population growth in Germany approximates one-percent per year. The head of the government is Chancellor Gerhard Schroder (elected on October 27,1998). The official language is German. The principal religions are Protestant (Evangelical Lutheran) and Roman Catholic-Christianity. German workers are among the best educated, best trained, and most productive to be found anywhere in the world. Germany's modest population growth tends to produce market stability, as opposed to market growth. Thus, automobile manufacturers in Germany tend to look to exports for sales growth. Germany's chief commercial exports include machinery, automobiles (Volkswagen, Mercedes-Benz, Audi), chemicals, iron, and steel. Political/Government Concerns Germany is a parliamentary democracy. A proportional representation system assures that smaller parties are represented in the Bundestag. The governing conservative coalition, the Christian Democratic Union (all states other than Bavaria) and the Christian Social Union (in Bavaria where the Christian Democratic Union does not stand), has held power since 1982 (Hunter, 1997). The reunification of East Germany and West Germany into a single state has produced economic, political, and social problems. While not all of these problems have been completely solved, they do not represent a source of instability in the country. Exchange Rate Issues The currency in Germany is called Deutsche Mark. The economy in Germany is the strongest in Western Europe and is an important member of the European Union. The principals of the social market economy guide its economic activity. Germany has pursued a monetary policy of that emphasized the control of inflation, relatively high interest rates, and a strong mark, often to the complete dismay of the country's European Community partners. Monetary policy emphasizes interest rates and money supply management. Germany is a key player in the drive toward European Monetary Union. The mark remains strong at DM1.84/US$1 and DM3.07/61 (Financial Indicators,1998). Germany will qualify for monetary union and the single European currency as of 1 January 1999 (Maastricht Follies,1998). Taxation in Germany The federal government and its States (lands) try to coordinate their policies through such advisory bodies as the economic council and the finance planning council. But the central government cannot order the States (lands) to follow its policy, largely because it has no monopoly on taxing power. In, all the central government receives around 55 percent of all taxes but makes then 45 percent of all expenses. On the other hand the States, spend more then they receive and the federal government makes up the difference. Macroeconomic Issues Per capita gross national product is US $28,760, gross domestic product is US $2.1 trillion (Hunter, 1997). Germany's GDP growth in 1997 was 2.4 percent Economic Indicators, 1998). Foreign Trade remains the essential pillar of Germany's prosperity. It is one of the world's leading export accounts for over half of it manufacturing jobs. Germany is very sensitive to world economic climates because, its GDP is made 38 percent of exports. Germany's international trade balance is traditionally in the black (Hunter, 1997). Exports typically exceed imports by approximately five-percent. Germany's international trade balance is compared with that of Japan and the United States in Table 1. Table 1 International Trade Balance Comparison: Germany, Japan, and the United States [billions of US$] ________________________________________________________________ Country January-March 1998 April 1997-March 1998 Germany + 4.62 + 70.5 Japan +8.79 + 103.8 United States -18.80 - 199.4 [Source: Financial Indicators, 1998] ________________________________________________________________ Germany's exports 46.4 percent of total exports to members of the European Union, these include top two: France at 11.2 percentage and the United Kingdom 8.7 percentage. The United States receives 9.2 percentage of Germany's exports. Germany's imports the most from France 11.2 percentage of total imports and then followed by the Netherlands at 8.4 percentage. The United States imports 8.1 percentage of the total imports of Germany. German monetary and fiscal policy emphasizes the control of inflationary pressures. Consumer prices in Germany have risen by an average of approximately 1.5 percent over the past

Infrastructure Issues in India Term Paper Example | Topics and Well Written Essays - 1250 words

Infrastructure Issues in India - Term Paper Example This paper attempts to evaluate existing infrastructural issues in India and how they affect the country’s overall economic prospects. India’s poor infrastructure is a huge obstacle towards the country’s overall economic growth prospects. In essence, India is among the fastest growing economies in Asia and the world in general though its huge growth projects have been hindered by the extremely poor infrastructure found in the subcontinent. The paper further examines the relevant frailties in India’s infrastructure evaluating the available options for improvement and better performance. To underscore the infrastructural issues of India and its needs, the paper will conduct a comparative analysis between India and China as regards infrastructure. Conceivably Indian infrastructural planning has been below the standards resulting into substandard infrastructures. Economic growth requires adequate and quality infrastructure, which serves as a huge aid towards d evelopment and economic activity. Poor infrastructure, on the other hand, hinders basic economic activities and dilutes government’s attention on crucial economic matters. For better economic performance, it is essential to have an infrastructure that can support the economy and its business activities. Therefore, it is of great importance that India elevates its infrastructure to an advanced level that can support its economic and growth perspectives. In essence, India needs to consider the investment in power, energy, healthcare, water/waste management and address policies supporting the development of infrastructure. Such an approach will go along way in boosting the country’s infrastructural levels providing it with the necessary impetus to pursue its ambitious economic endeavors. Statistically, more than half of India’s shipment and 80 percent of traveler traffic moves on the freeway network, which largely comprises two-lane roads. The country has 700 kilom eters of thruways, mostly reserved for cars, buses and trucks. Most of the expressways with four lanes run through Ahmedabad and Vadodara as well as between Pune and Mumbai. China, on the other hand, has 74,000 kilometers of superhighways up from 147 kilometers in 1989 (Huang 3). Therefore, is far much behind China in the road network and though India’s has ambitious infrastructural projects it will take a long time for the subcontinent to catch up with China. In August 2009, Indian Prime Minister Manmohan Singh developed a goal of constructing 20 kilometers of new highways a day as a fraction of efforts to advance infrastructure graded below Kazakhstan’s and Guatemala’s, according to the World Economic Forum. The daily standard was 4.5 kilometers in 2011, according to PricewaterhouseCoopers LLP. India endeavors to expend as much as $1 trillion in five years on power plants, roads, and ports (Sundaram 1). India may use $5.3 billion tripling the span of its expre ssway network to reduce traffic jams that are slowing commerce, wasting fuel, in addition to sapping economic growth. The country proposes to add approximately 1,600 kilometers (1,000 miles) of highways with at least six lanes. In an interview, Raghav Chandra -who is the joint secretary at the Ministry of Road Transport and Highways- confirmed that India has great plans to refurbish its road network so as to create an enabling environment for trade and overall economic