DOI: 10.5176/2251-1970_BizStrategy15.14
Authors: Dr. Rinalini Pathak Kakati and Shazeed Ahmed
Abstract: The graduation of rural markets in the Indian sub-continent from unbranded to branded products is quite recent. Rural India constitutes 70{6e6090cdd558c53a8bc18225ef4499fead9160abd3419ad4f137e902b483c465} of the total population. Changes in the consumption pattern in the rural areas have led marketers to believe that significant business development can be done in the rural areas. According to prediction highlighted in the McKinsey Report 2007, in the coming two decades, the size of the Indian rural market will be much bigger than the consumer markets in total for countries such as South Korea or Canada and somewhat four times the size of the urban Indian market as recorded today. The research study tries to find out the unique elements of National and Local Brands that influence the rural consumers behavior with respect to Fast Moving Consumer Goods and Durables. The study was conducted in two prominent districts of North East India. The study found that under Fast Moving Consumer Goods category, consumers’ purchase decisions are affected by preference for both National and Local Brands. While choosing National Brands, consumers lay importance on important elements like Brand Quality and Esteem in purchase decisions. Under Local Brands, consumers lay importance on elements like Brand Faith, Quality and Aesthetics in purchase decisions. Under the Durable Goods category, consumers’ purchase decisions are affected by preference for National Brands only. While choosing National brands, consumers lay importance on important elements like Brand Name and Quality in purchase decisions. These are vital input for marketers in framing marketing policies.
Keywords: FMCG, Regional Brands, Local Brands, ANCOVA,
Esteem and Aesthetics
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