Table of ContentsA Study on Consumers' Attitude towards Branded Packaged Food in Rural Market. .1

1. Abstract:.....................................................................................................................................1

2. Introduction................................................................................................................................1

3. Literature Review......................................................................................................................2

3.1. Packaged Food........................................................................................................................2

3.2. Reasoning of consumer packaged importance.....................................................................2

3.3. Untapped Potential..................................................................................................................3

4. Research Methodology.............................................................................................................3

4.1. Sampling Technique...............................................................................................................3

4.2. Questionnaire Design.............................................................................................................3

4.3. Sample Size.............................................................................................................................4

Table 1: Categorization of Packaged Food Items selected for the Study...........................4

Table 2: List of products sector wise and company wise used for survey.........................4

5. Results........................................................................................................................................5

Table 4: Awareness Level, Consumption Level and Source for Information...................5

Table 5: Frequency of Consumption.........................................................................................6

Table 6: Reasons of Consumption..............................................................................................6

Table 7: Reasons for not preferring Branded Products........................................................7

5.1. Conclusions and Recommendations.....................................................................................8

References........................................................................................................................................9

Bibliography...................................................................................................................................10

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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

1. 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.

2. IntroductionThe 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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3. Literature Review

3.1. 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 Promotion”1.

“Packages contribute to instant recognition of the company or brand”2. 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.

3.2. 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 purchase”3.

According to Rundh (2005)4 “package attracts consumer’s attention to particular brand,

enhances its image, and influences consumer’s 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

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.

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3.3. 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

areas”6.

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 selection”7.

4. Research MethodologyThis 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 Pradesh”8.

4.1. 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

Pradesh”9. In the next step convenience sampling is used for this study to select the rural

household.

4.2. 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

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innovative approach examined the barriers to access to information and tried to explore the

best medium for marketing.

4.3. 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 Sector Products

01 Milk Products Ice-Cream, Ghee, Kova,

02 Rice Mixtures Pulihogare, Vangibath,

03 Instant Mixes Rice Idle, Rava Idli, Gulab Jomun

04 Edible Oils 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

survey01 Ice-Cream, Heritage, Lazza

02 Ghee Heritage, Nandi, Krishna

03 Kova Dodla, Vijaya,

04 Pulihogare MTR, Priya

05 Vangibath MTR, Priya

06 Rice Idle MTR, Priya

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07 Rava Idli MTR, Priya

08 Gulab Jomun Bambino, MTR

09 Sunflower oils Fortune, Nature, Gold win

10 Groundnut

oils

Fortune, Nature

5. ResultsResult 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

AgricultureDaily

wagersPrivate

EmployeesGovt.

Employeesothers

0 - 4000 5.9 7.1 4.7 2.4 2.4

4001 - 8000 3.5 5.9 7.1 7.1 0.0

8001 -12000 0.0 0.0 3.5 15.3 2.4

12001 – 16000 0.0 0.0 1.2 14.1 1.2

>  16000 0.0 0.0 2.4 10.6 3.5

Table 4: Awareness Level, Consumption Level and Source for Information

Products Awareness Level Consumption LevelSource of Information

A B CIce-Cream, 61.2 41.2 52.9 49.4 44.7Ghee 89.4 84.7 87.1 51.8 97.6Kova 68.2 41.2 63.5 41.2 52.9Pulihogare 75.3 70.6 72.9 24.7 68.2Vangibath 34.1 14.1 30.6 5.9 23.5Rice Idle 84.7 81.2 81.2 14.1 82.4Rava Idli 80.0 70.6 75.3 25.9 74.1Gulab Jomun 88.2 49.4 82.4 60.0 27.1Sunflower oils 100.0 65.9 100.0 63.5 96.5Groundnut oils 96.5 52.9 78.8 63.5 43.5

A – Shop, B – Television, C – Friends and Relatives

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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 OccasionallyIce-Cream, 2.4 11.8 17.6 4.7 4.7Ghee 21.2 44.7 4.7 2.4 16.5Kova 0.0 4.7 5.9 4.7 25.9Pulihogare 0.0 21.2 37.6 0.0 11.8Vangibath 0.0 0.0 4.7 0.0 9.4Rice Idle 2.4 30.6 45.9 2.4 0.0Rava Idli 2.4 24.7 43.5 0.0 0.0Gulab Jomun 0.0 0.0 9.4 5.9 34.1Sunflower oils 32.9 31.8 1.2 0.0 0.0Groundnut 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

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

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Products TasteLow Price

Easy Availability

Health Lifestyle Convenience Other

Ice-Cream, 37.6 2.4 4.7 0.0 14.1 0.0 5.9

Ghee 52.9 0.0 9.4 30.6 17.6 2.4 4.7

Kova 41.2 4.7 14.1 14.1 2.4 0.0 1.2

Pulihogare 52.9 41.2 49.4 22.4 21.2 49.4 14.1

Vangibath 2.4 2.4 10.6 0.0 4.7 4.7 3.5

Rice Idle 44.7 29.4 49.4 52.9 22.4 57.6 12.9

Rava Idli 24.7 16.5 34.1 49.4 36.5 16.5 0.0

Gulab Jomun

49.4 14.1 47.1 0.0 32.9 18.8 0.0

Sunflower oils

32.9 48.2 48.2 56.5 24.7 0.0 0.0

Groundnut oils

41.2 11.8 12.9 29.4 15.3 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

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

ProductsUnlikeness

towards Processed food

CostlierUnavailability in

Local Shops

Preference for local/ home

made products

Any other

Reason

Ice-Cream, 14.1 52.9 22.4 0.0 4.7

Ghee 0.0 11.8 2.4 14.1 0.0

Kova 49.4 52.9 57.6 5.9 0.0

Pulihogare 14.1 1.2 14.1 21.2 0.0

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Vangibath 49.4 12.9 69.4 14.1 12.9

Rice Idle 16.5 14.1 14.1 16.5 0.0

Rava Idli 16.5 22.4 21.2 22.4 0.0

Gulab Jomun

27.1 41.2 37.6 14.1 32.9

Sunflower oils

12.9 29.4 22.4 12.9 14.1

Groundnut oils 16.5 37.6 14.1 29.4 14.1

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.

5.1. 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

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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.

References1. 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 3–6

9. ibid, Pp 3-6.

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10. The Hindu Business Line, ‘Selling in Rural India’ Monday, Feb 16, 2004

Bibliography1. 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, 3 rd

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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