Table of Contents

Table of Contents.................................................................................................i Abstract:............................................................................................................. 1 Introduction.........................................................................................................1 Literature Review................................................................................................2 Packaged Food...................................................................................................2 Reasoning of consumer packaged importance...................................................2 Untapped Potential............................................................................................. 3 Research Methodology........................................................................................3 Sampling Technique............................................................................................3 Questionnaire Design..........................................................................................4 Sample Size.........................................................................................................4 Results................................................................................................................ 5 Conclusions and Recommendations....................................................................8 References.......................................................................................................... 9 Bibliography...................................................................................................... 10

A Study on Consumers' Attitude towards Branded Packaged Food in Rural Market

By

*G.Vijayudu, Research Scholar for PhD, Dept. of MBA, Sri Venkateswara University, Tirupati, 517502 Andhra Pradesh Mail: vijayudug@gmail.com Contact: 09491580932

**Dr. B.Amarnath, Associate Professor, Dept. of MBA, Sri Venkateswara University, Tirupati, 517502 Andhra Pradesh Contact: 09441407860

Abstract:
The Packaged Food Market in India is a sunrise industry as growth in this sector in the recent past has been phenomenal. Many new entrants are playing a vital role to harness ever increasing market potential. Most new food companies, as well as the existing companies, are in the process of entering into the rural market. With about 70% of total population and increase in disposable income, rural markets are being liked on as the future avenues for business growth. However, food companies need to devise new and innovative marketing strategies to penetrate rural markets.

Introduction
The Indian rural market with its vast size and demand base offers a huge opportunity that MNCs cannot afford to ignore. With 128 million households, the rural population is nearly three times the urban.
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Literature Review
Packaged Food Most physical products must be packaged and labeled. Some packages such as the coke bottle are world famous. Many marketers have called packaging is a fifth P along with Price, Product, Place and Promotion1.

Packages contribute to instant recognition of the company or brand2. It is an easiest technique for rural household to recall and recognize the product through the colours or font used on the package.

Among plenty of branded packaged food products it has become more difficult to identify them and make purchase decision to rural consumers. The bigger attention is attached to consumer package, which is integral part of product and its brand for the consumers. Reasoning of consumer packaged importance While choosing effective communication colour is the main non-verbal element of the package which is attracting the attention of women. Good packaging covers an idea of the quality of the product. It has a value which is distinct from the value of the product. Attractive packaging is an effective point of purchase3.

According to Rundh (2005)4 package attracts consumers attention to particular brand, enhances its image, and influences consumers perceptions about product. Intermediaries of the package communication message are component of the package: colour, form, size, images, graphics, material, smell, name of the product, brand, country, information about product, special offers, instructions of usage, simplicity and ecology of the package, ergonomics, innovativeness. All these elements of the package play the function of communication. Their transferable messages involve the evaluation of the product in qualitative, quantitative, price view, the formation of the product cognitive and sensorial
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expectations, the impact to consumer emotions, mood and attention. The communication of the package components is attributed to the communication oriented to the message (Silayoi, Speece (2004)5. Untapped Potential Rural markets offer a great potential for marketing branded goods and services for two reasons: 1. The large number of consumers: A pointer to this is the larger volume sales of certain products in rural areas as compared to sales of the same products in urban areas.
2. Largely untapped markets: The penetration levels for many products are low in rural

areas6. Dairy products, Noodles, Edible oil, Ready to eat food, Rice mixtures, Instant mixtures, Confectionary, Canned foods are some of the packaged food. The extensive distribution of companies or marketers is making these products to very nearer to the rural consumers. The food availability and culture factors are dominant in food selection7.

Research Methodology
This paper aims at to know the rural consumers attitude towards the branded packaged food. The primary objective of this paper is to know the consumption pattern of selected branded packaged food of rural consumers. And the secondary objectives of this paper are concentrated on reasons for consumption of branded packaged food and reasons for not consuming branded packaged food.

The rural area is selected on the basis of Hand book of statistics 2007-08 of Chittoor District of Andhra Pradesh8. Sampling Technique Two stage sampling is used for this survey. Simple Random sampling is used to select of villages based on the Hand book of statistics 2007-08 of Chittoor District of Andhra Pradesh9. In the next step convenience sampling is used for this study to select the rural household.

Questionnaire Design A questionnaire was designed to test the awareness and consumption levels of the selected items, medium through which the consumer is getting information about the food items and drivers of consumption. Each individual was shown color images of all 10 Products and was interviewed on numbers of questions. The innovativeness associated with survey was that, it used colour printed images of the product (the form in which the products are marketed). This innovative approach examined the barriers to access to information and tried to explore the best medium for marketing. Sample Size A total 85 households were surveyed across 10 villages in Chittoor District of Andhra Pradesh in India.

On the basis of market and research experience and discussions with experts in the field of rural marketing, 10 Packaged Food items were selected. These items were divided into four categories: namely

Table 1: Categorization of Packaged Food Items selected for the Study Sl.No 01 02 03 04 Sector Milk Products Rice Mixtures Instant Mixes Edible Oils Products Ice-Cream, Ghee, Kova, Pulihogare, Vangibath, Rice Idle, Rava Idli, Gulab Jomun Sunflower oils, Groundnut oils,

Projective techniques are used for the 10 products. For each product around 2 3 companies were used which are popular in urban parts and also having mass media communications/ Word Of Mouth (WOM). Awareness level, consumption level, reasons for consumption, medium for awareness and the effect of various socio-economic factors on consumption of each product was analyzed by cross-tabulation.

Table 2: List of products sector wise and company wise used for survey Sl. No Product Brands and their companies or manufacturers used for survey
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01 02 03 04 05 06 07 08 09 10

Ice-Cream, Ghee Kova Pulihogare Vangibath Rice Idle Rava Idli Gulab Jomun Sunflower oils Groundnut oils

Heritage, Lazza Heritage, Nandi, Krishna Dodla, Vijaya, MTR, Priya MTR, Priya MTR, Priya MTR, Priya Bambino, MTR Fortune, Nature, Gold win Fortune, Nature

Results
Result of the study throw light on awareness level, consumption level, and media for assimilating information about selected food items. Findings indicate some interesting trends which can be used for framing marketing strategies by food companies.

Table 3: Respondents based on Income and Occupation Income \ Occupation 0 - 4000 4001 - 8000 8001 -12000 12001 16000 > 16000 Agriculture 5.9 3.5 0.0 0.0 0.0 Daily wagers 7.1 5.9 0.0 0.0 0.0 Private Employees 4.7 7.1 3.5 1.2 2.4 Govt. Employees 2.4 7.1 15.3 14.1 10.6 others 2.4 0.0 2.4 1.2 3.5

Table 4: Awareness Level, Consumption Level and Source for Information Products Ice-Cream, Ghee Awareness Level 61.2 89.4 Consumption Level 41.2 84.7
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Source of Information A B C 52.9 49.4 44.7 87.1 51.8 97.6

Kova 68.2 41.2 Pulihogare 75.3 70.6 Vangibath 34.1 14.1 Rice Idle 84.7 81.2 Rava Idli 80.0 70.6 Gulab Jomun 88.2 49.4 Sunflower oils 100.0 65.9 Groundnut oils 96.5 52.9 A Shop, B Television, C Friends and Relatives

63.5 72.9 30.6 81.2 75.3 82.4 100.0 78.8

41.2 24.7 5.9 14.1 25.9 60.0 63.5 63.5

52.9 68.2 23.5 82.4 74.1 27.1 96.5 43.5

Table 4 shows awareness level and consumption level of all selected products by the respondents. In addition, the table also presents various sources through which the respondents gather information about these products. The frequencies of consumption are given in Table 5.

Table 5: Frequency of Consumption Products Daily Weekly Fortnightly Monthly Occasionally Ice-Cream, 2.4 11.8 17.6 4.7 4.7 Ghee 21.2 44.7 4.7 2.4 16.5 Kova 0.0 4.7 5.9 4.7 25.9 Pulihogare 0.0 21.2 37.6 0.0 11.8 Vangibath 0.0 0.0 4.7 0.0 9.4 Rice Idle 2.4 30.6 45.9 2.4 0.0 Rava Idli 2.4 24.7 43.5 0.0 0.0 Gulab Jomun 0.0 0.0 9.4 5.9 34.1 Sunflower oils 32.9 31.8 1.2 0.0 0.0 Groundnut oils 4.7 17.6 0.0 12.9 17.6

Table 5 shows the frequency of consumption and the consumer of selected products. Around 21% of the respondents are consuming branded rice mixture Pulihogare weekly and around 38% of respondents at fortnightly. Awareness level of this branded product is around75%, and 73% of the respondents are agreed they have come to know about branded pulihogare rice mixture through shop keepers and around 62% agreed it is through from friends and relatives. Around 38% of the respondents are consuming branded edible oils daily and around 49 % are weekly. Awareness level for branded edible oils is almost 100% through shopkeepers and Television Advertisements. Around 46% of the respondents are consuming
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branded processed food rice idly 31% weekly and rava idly are consumed by 44% fortnightly and 25% weekly. Awareness level for Branded Rice Idly is around 85% and for Rava Idly is around 80%. In both the cases shopkeepers are playing a major role is around 81% and 75% respectively. 34% of the respondents are agreed they are consuming branded sweet processed food occasionally. 6% and 9% are monthly and fortnightly respectively. Awareness level for branded sweet processed food (Gulabjamoon) is around 88% through around 82% from shopkeepers and 60% from Television advertisements. Table 6 shows the reasons for consumption.

Table 6: Reasons of Consumption Products Ice-Cream, Ghee Kova Pulihogare Vangibath Rice Idle Rava Idli Gulab Jomun Sunflower oils Groundnut oils Taste 37.6 52.9 41.2 52.9 2.4 44.7 24.7 49.4 32.9 41.2 Low Price 2.4 0.0 4.7 41.2 2.4 29.4 16.5 14.1 48.2 11.8 Easy Availability 4.7 9.4 14.1 49.4 10.6 49.4 34.1 47.1 48.2 12.9 Health 0.0 30.6 14.1 22.4 0.0 52.9 49.4 0.0 56.5 29.4 Lifestyle 14.1 17.6 2.4 21.2 4.7 22.4 36.5 32.9 24.7 15.3 Convenience 0.0 2.4 0.0 49.4 4.7 57.6 16.5 18.8 0.0 0.0 Other 5.9 4.7 1.2 14.1 3.5 12.9 0.0 0.0 0.0 0.0

Table 6 shows factors which motive consumers to consume the branded packaged food in rural markets. Factor Taste & Easy availability are influencing all types of customers towards branded packaged food. Convenience is making around 50% of the respondents to rice mixtures and around 58% to branded packaged food rice idly. Around 53%, 49% and 57% of respondents are consuming rice idly, rava idly and sunflower oils respectively because of health reasons, now available in branded packaged food. Easy availability of traditional mode products are most consumables of rural consumers like Pulihogare rice mixture, rice idly, rava idly and Gulabjamoon at festivals. Most of the respondents for these branded products
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are employee groups with income group Rs. > 8,000. Table 7 shows why consumers do not prefer branded packaged food.

Table 7: Reasons for not preferring Branded Products Unlikeness Unavailability in towards Costlier Local Shops Processed food 14.1 0.0 49.4 14.1 49.4 16.5 16.5 27.1 12.9 16.5 52.9 11.8 52.9 1.2 12.9 14.1 22.4 41.2 29.4 37.6 22.4 2.4 57.6 14.1 69.4 14.1 21.2 37.6 22.4 14.1 Preference for local/ home made products 0.0 14.1 5.9 21.2 14.1 16.5 22.4 14.1 12.9 29.4 Any other Reason 4.7 0.0 0.0 0.0 12.9 0.0 0.0 32.9 14.1 14.1

Products Ice-Cream, Ghee Kova Pulihogare Vangibath Rice Idle Rava Idli Gulab Jomun Sunflower oils Groundnut oils

Table 7 shows costlier factor is the major concern to not to consume branded packaged food. The people who are daily wagers and agriculturists with low income i.e. Rs < 8,000 are particularly not consumers for branded packaged food products. Other major factors are unlikeness towards processed food and unavailability. People with less income or depend upon agriculture are having phobias towards Packaged food, so people are giving preference home made products. Conclusions and Recommendations The results indicate that there is a huge potential for branded packaged food companies to tap the rural market. 4As (Availability, Affordability, Awareness & Accessibility) approach is required to reach rural market. Companies need to explain to rural market through rural marketing distribution channels. Pace in distribution will give the trust to consumers towards

branded packaged food. Most of the customers for branded packaged food is from employee group with an income Rs. >8,000. The first challenge is to ensure availability of the product or service. India's 627,000 villages are spread over 3.2 million sq km; 700 million Indians may live in rural areas, finding them is not easy. However, given the poor state of roads, it is an even greater challenge to regularly reach products to the far-flung villages. Any serious marketer must strive to reach at least 13,113 villages with a population of more than 5,000. Marketers must trade off the distribution cost with incremental market penetration.10 The second challenge is to ensure affordability of the product or service. With low disposable incomes, products need to be affordable to the rural consumer, most of who are on daily wages. Some companies have addressed the affordability problem by introducing small unit packs. And the results are showing that unavailability is one of the major causes to not consume by the rural consumers i.e. gap in between demand and supply. To fill up the gap the companies have to adopt some unconventional marketing techniques. As stated earlier in this article, no generalized model of rural market can be drawn, so marketers have to adopt innovative techniques. It has been variously defined as affordability and accessibility issue in which affordability encompasses price, income and sensible spending, whereas access is wider and includes geographic, social, practical and cultural issues.

References
1. P. Kotler, K L Keller, A Koshy, M Jha, (2009), Marketing Mangement A South

Asian Perspective, Himalaya Publishing House, Pearson Education, 13th Edition, Pp 331
2. S A Chunawalla, (2002), Product Management, Himalaya Publishing House, 3rd

Edition, Pp 278 - 281

3. Vitalija Butkeviien, Jurgita Stravinskien, (2008), Impact of Consumer Package

Communication on Consumer Decision Making Process, Engineering Economics. No. 1 (56), Pp 57 - 65

4. Rundh, B. (2005), The multi-faceted dimension of packaging, British Food Journal, 107 (9), Pp 670-684 5. Silayoi, P., & Speece, M. (2004) Packaging and purchase decisions: An exploratory study on the impact of involvement level and time pressure, British Food Journal, 106 (8), Pp 607-628
6. Sanal Kumar Velayudhan, Rural Marketing - Targeting the Non-urban Consumer,

Response Books Business books from SAGE, Second Edition, Pp 22-26

7. Andrew Steptoe & Tessa M. Pollard, (1995), Development of a measure of the

motives underlying the selection of food: the food choice questionnaire, Appetite (UK Journal) 25, Pp 267 284.
8. Chief Planning Officer,( 2007-08), Handbook of Statistices of Chittoor District, Pp

36
9. ibid, Pp 3-6. 10. The Hindu Business Line, Selling in Rural India Monday, Feb 16, 2004

Bibliography
1. Pradeep Kashyap, Amp, Siddhartha Raut , (July 2005), The Rural Marketing (Text &

Practice), Dreamtech Press, Edition 1. 2. C.S.G. Krishnamacharyulu, Lalitha Ramakrishnan, Rural Marketing: Text & Cases, Pearson, Edition 2
3. S A Chunawalla, (2002), Product Management, Himalaya Publishing House, 3rd

Edition.
4. P.Kotler, K L Keller, A Koshy, M Jha, (2009), Marketing Mangement A South

Asian Perspective, Himalaya Publishing House, Pearson Education, 13th Edition.

5. Sanal Kumar Velayudhan, Rural Marketing - Targeting the Non-urban Consumer,

Response Books Business books from SAGE, Second Edition.

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