A Study on Rural Marketing Strategy - with Special Emphasis on Selected Customer Preferences for Hindustan Uniliver Limited’s (H.U.L.) Selected Products in Valsad District

Abstract

Over the past few years rural India has witnessed an increase in the buying power of consumers, accompanied by their desire to upgrade their standard of living. Rural India with its traditional perception has grown over the years, not only in terms of income, but also in terms of thinking. The Indian FMCG (Fast Moving Consumer Goods ) sector is the fourth largest sector in the economy with a total market size in excess of US$ 20.1 billion. The FMCG sector is a corner stone of the Indian economy. This sector touches every aspect of human life. The FMCG producers now realize that there is a lot of opportunity for them to enter into the rural market. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, etc. The purpose of this study is to examine the effectiveness of rural marketing strategy implemented by Hindustan Uniliver Limited (H.U.L.), which is having highest market share in rural market of India, and acceptance of the same by the rural customers of Valsad district of Gujarat State.