ISSN 0975 5942

Vol.I (2), June-December 2009, pp.230-240

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Brand Awareness in Rural Area a Case Study of Fast

Moving Consumer Goods in Chittoor District of
Andhra Pradesh
B. Amarnatha and Vijayudub
a

Associate Professor, Department of Management Studies, Sri

Venkateswara University, Tirupati-517502, AP, India
b
Research Scholar, Department of Management Studies,
Sri Venkateswara University, Tirupati-517502, AP, India

Corresponding author: amaredc@gmail.com

Abstract
The purpose of this study is to examine the brand awareness
in rural area and to study the interest of consumers in branded
products of Fast Moving Consumer Goods (FMCG). The brand
awareness is showing increasing tendency everywhere and Chittoor
district is not an exception to it. To examine the validity of this
general statement that is being discussed day in and day out by the
researcher, market managers, producers, consumers, advertisers,
etc., a case study of brand awareness in rural area of Fast Moving
Consumer Goods in Chittoor district of Andhra Pradesh is taken up.
Keywords: Brand Awareness, Rural Area, Consumer Goods

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Introduction
The Fast Moving Consumer Goods (FMCG) sector is a
corner stone of the Indian economy. This sector touches every aspect
of human life. The FMCG producers have realized that there is ample
opportunity for them to enter into the rural market.1 Today we notice
this shift towards branded FMCGs in rural areas as a result of Socio
Economic & Political changes in the last 5 years. This has made rural
areas more viable markets even compared to urban areas.
The Socio Economic and Political changes contributed to a
great extent for changes in the life styles of countryside people who
patronized branded FMCG products. In Andhra Pradesh the rapid
growth of Engineering & Degree colleges and rural Polytechnic
colleges are bringing education to the doorsteps of rural people,
greatly contributing to a shift towards branded FMCG products. The
Government policies to promote education in rural areas enhanced
their brand awareness due to the presence of at least one higher
education pursuing student in their family or neighbouring family.
The populist schemes introduced by A.P. state Government
like Loans to Dwakra women at concession interest rate of 25 paise
and 100 days assured work in a year for rural people contributed in
enhancing peoples income followed by a change in their lifestyles
resulted in patronizing the branded products.
The residential pattern in Andhra Pradesh has witnessed a
near metamorphosis in last 5 years due to the construction of
reinforced concrete houses, in place of thatched (huts) or houses
constructed with country material. The moment they started living in
Pacca (permanent) houses with amenities like kitchen and bedrooms,
their lifestyle has changed. And this has paved way for branded
products invading in the rural areas.
The introduction of sachets made rural people who are
traditionally not accustomed for bulk purchase, to buy branded
FMCG products like Rs1/- shampoo, nut powders, oils, beverages,
readily available in the ready availability of instant foods, beverages,
cosmetic products, edible oils, bath soaps, detergents, cleaning
powders & liquids, tooth pastes, etc. in rural shops. This changed the
pattern of buying from traditional products to branded products.

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According to the National Council of Applied Economic

Research (NCAER), with about 74 per cent of population living in
villages, India has perhaps the largest potential rural market in the
world. It has as many as 47,000 haats (congregation markets),
compared to 35,000 supermarkets in the US. And of the total FMCGs
demand in India, nearly 53 per cent comes from the rural market.2
The Educative, Effective, Informative and Repetitive
advertisements through electronic media can increase the
potential customers for such products
The advertisements are telecasting especially during the daily
serials, competitive programs like Songs Competition among
children, Anthyaksharies, Women programs like Bhagyashree,
Ranulu Maharanulu, Maa Inti Vanta, etc. being watched by
housewives and such advertisements will definitely influence this
section of people who in turn will influence their better halves and
make them to buy a particular brand Product justifying the reason for
going in for such branded product bringing in the salient features in
that particular advertisement quoting the names of brands by reputed
and well known personalities.
At present the same products in different brands are available
and this makes people to know about different brands. This definitely
creates brand awareness among the people and provides different
alternatives for a single product. This is the situation where the
advertisements place a decisive role in shifting the opinion of people
in favour of a particular brand.
Brand Awareness and Rural Consumer
Brand awareness refers to a consumer knowing of a brand's
existence; at aggregate (brand) level it refers to the proportion of
consumers who know of the brand.3
Extent to which a brand is recognized by potential
customers, and is correctly associated with a particular product,
Expressed usually as a percentage of target market, brand awareness
is the primary goal of advertising in the early months or years of a
product's introduction.4
Fast Moving Consumer Goods (FMCG), are products that are sold
quickly at relatively low cost. Though the absolute profit made on

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FMCG products is relatively small, they generally sell in large

quantities, so the cumulative profit on such products can be large.
Examples of FMCG generally include a wide range of frequently
purchased consumer products such as toiletries, soap, cosmetics,
teeth cleaning products, shaving products and detergents.5
Nondurable goods or soft goods are the opposite of durable goods.
They may be defined either as goods that are used up when used
once, or that have a lifespan of less than 3 years. Examples of
nondurable goods include cosmetics, food, cleaning products, fuel,
office supplies, packaging and containers, paper and paper products,
personal products, rubber, plastics, textiles, clothing and footwear.6
Health & Beauty Exporters India contains a large list of categories
like: ayurvedic products, beauty equipments, dental equipments,
health equipments, herbal products, medical equipments, surgical
instruments etc. under the main category Health & Beauty. The
health and beauty market is a segment displaying high growth.
According to the report, sales of goods used as part of health and
beauty regimes (HBRs) substantially outperformed the level of
growth seen in the markets in which they were found - including
skincare, hair care and nutraceuticals.7
Indian FMCG Sector Growth Drivers Category Trends 2008
09 The fourth largest sector in the Indian economy is all set for 16%
growth during 2008-09, from a base of Rs. 85470 crores, as predicted
by FICCI. Going forward, as anticipated by CRISIL, FMCG sector
will touch around Rs. 140000 crores by 2015.8
Rural FMCG Sales: The growth engine Rural India clocked
19.1% growth for hair oils in April-September against 11.4% in
urban markets by volume. Similarly, among toothpaste, the all-India
rural volume growth was a healthy 17% compared with just 6% in
all-India urban markets. The gap in growth rates was even wider
among candies. In the April-September period, rural markets
registered 26.5% growth against a minuscule 3.6% growth in urban
India. It was the same story with value growth.9
Industry watchers say the increased consumption is also the result of
a growing middle class base in these markets. The total number of

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rural household is expected to rise to 153 million in 2009-10 from

135 million in 2001-02, suggesting a huge market.
Objectives of the study
To assess the impact of electronic media in popularizing
branded products in rural areas
To know the reasons for preferring branded products in rural
areas
Scope and Need for the Study
FMCG products are substantially used to enhance and protect
the health and physical appearance and also the dignity of the people
among their counterparts. The spending on FMCG products
especially in the rural areas is showing an increasing tendency in the
last 5 years. This is due to increase in income levels, fascination
towards urban culture, good connectivity to near by towns & cities,
improvement in sanitary conditions, beauty awareness among
teenagers of rural areas emulating their counterparts in the urban
areas led to the increased usage of FMCG products particularly
beauty & health care products in this region. With this backdrop the
brand awareness in rural areas with reference to FMCG products is
thought of.
The study is confined only to Madanapalle Revenue Division
region. It is believed that the findings in this region are fairly
representative of the other parts of the district. Since the lifestyle and
other parameters are not much different from what exist in the area of
survey.
Methodology
Chittoor District is basically a rural oriented district about 72
percentage of population living in villages. The district comprises of
three Revenue Divisions namely 1) Chittoor Revenue Division
(CRD), 2) Tirupati Revenue Division (TRD) and 3) Madanapalli
Revenue Division (MRD). Out of these three revenue divisions,
MRD is selected for the purpose of conducting survey to study the
Brand Awareness among rural people since MRD contains more
backward villages and clusters compared to the other two revenue
divisions. Due to paucity of time and financial constraints 10 villages
are chosen for survey adapting purposive sampling technique. In all
240 respondents are chosen from different age groups classifying

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them on the basis of literacy with the help of structured &

unstructured interviews & discussions with these respondents the
information for this survey is gathered. In all the villages chosen for
survey four categories of FMCGs namely,
Health and Beauty care products, subdivided into
(1) Bath Products (a) Bath soaps
(2) Hair Care Products (a) Hair Shampoos (b) Hair Oils
(3) Oral Care Products (a) Tooth Paste (b) Tooth Brush
(4) Essential Oils (a) Edible Oils
Sampling Technique
Purposive sampling technique is adapted to collect primary data. The
consumers are divided into two categories on the basis of Literacy
and Age, namely Literates and Illiterates, and persons below the age
of 30 years and 30 years & above.
Data Analysis and Findings
Null Hypothesis 1: There would be no significant difference
between Low & Middle Income groups and Above Middle & High
Income Level Groups to have a Brand Awareness.
Z- Test 1: Significant test on brand awareness between Low &
Middle Income groups and Above Middle & High Income groups
Standard
Income Groups\ Tests
Mean
T test
Deviation
Low & Mid
65
1.7
0.46
Above Mid & High income 55
4.58
Finding: 1
The survey data reveals that the income effect is almost nil on
aware of FMCG products. All income groups namely Higher, Above
Mid, Middle and Lower income groups have not shown any
significant difference on aware of these products. If not words they
have symbols to express about a particular product brand. Package is
playing a vital role in choosing and recalling and to find a product by
a customer.

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Null Hypothesis 2: There would be no significant difference

between below the age of 30 years and 30 years & above to have a
Brand Awareness.
Z- Test 2: Significant test on brand awareness between below the
age of 30 years and 30 years & above
Standard
Age Groups\ Tests
Mean
T test
Deviation
below the age of 30
68.9
9.297
4.386
30 years & above
60.5
9.848

Finding: 2
The survey data reveals that the age effect is high on aware of
FMCG products. Below 30 years age group is showing a significant
difference on aware of these products. Most of them being educators
and having trust on branded products influenced to shift towards
branded products. And it is also influencing the 30 years & above
age group.
Null Hypothesis 3: There would be no significant difference
between below the age of 30 years and 30 years & above to have a
Preference for a Branded Product.
Z- Test 3: Significant test on Preference for branded product
between below the age of 30 years and 30 years & above

below the age of 30

38.9

Standard
Deviation
7.5

30 years & above

36

5.95

Age Groups\ Tests

Mean

T test
3.029

Finding: 3
The survey data reveals that the age effect is high on
preference for a branded product. Below 30 years age group is
showing a significant difference on branded products. Readily
availability of a branded product in expected form and price is
making this segment to shift to branded products.

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Fig: 1
Histogram showing relationship between income groups
and preference for branded product

Number of
respondents

Low Income
20
15
10
5
0

Mid Income

Above Mid Income

High Income

19
12 13
7

1 0 0
No Brand

8
2 0

Cheap /
Regional Brand

Augmented
Brand

8
5 6

4
0 0

Specific Brand Premium Brand

Different Income groups with their selective brand

Finding: 4
Through Histogram (1) we can see that most of the
respondents are moving towards augmented brand (which is above to
expectation of a customer and satisfying a common customer). And it
is proving that all levels of income group people are concentrating on
one above to expected product for the same price. (Vide to Fig: 1)
Fig: 1
Different Income Level Groups and their dependance on to
have a Brand Awareness and Brand Usage

Numerof
Respondents

T.V.
20

Friends

Educated Children

18

15

13

10
5
0

Shopkeeper

9
56
2
0
Low Income

Mid Income

7
32
Above Mid Income

12
45
High Income

Different Income Level Groups

Finding: 5
The survey data reveals that the countryside consumers of
FMCG products were influenced by advertisements in Television,

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influenced by friends and relatives particularly their children getting

education in near by Engineering and Degree colleges. As already
stated in this paper the influence of own children getting education in
rural based colleges has changed the consumption pattern of rural
folk. (Vide Fig:2)
However, the influence of local shopkeepers on these FMCG
consumers is also quite noticeable since the local shopkeepers
invariably happen to be friends and relatives of end consumers whom
the shopkeepers can very easily educate and influence to use a
particular brand.
The shift from one brand to the other is evident with a change
in income level. For example; it is noticed that people using popular
brands of soaps which are moderately priced like Hamam & Lux
shifted to premier brand like Dove. Even though there is noticeable
change in its price just to show that they are using such soaps as a
status symbol rather than a necessity.
Illiterate people who are in the age group of 30 & above are
also changing over to branded products on the advice of friends and
relatives or educated children in the house in preference to traditional
products. The time taken for preparation for traditional products, the
availability of branded products with the same ingredients at a
comparatively cheaper prices, influenced people to shift towards
branded products. Further these branded products are tested clinically
and found to be not harmful to health, motivated people to shift their
consumption pattern from the traditional products to branded
products.
The promotional activities undertaken on a massive scale by
the producers of FMCG products like soaps, detergents, shampoos,
oils influenced the people to a great extent in buying these products.
For example: Vivel soaps advertisement showing as 125 grams
instead of 100gms for the same price.
Conclusions & Suggestions
The brand awareness in rural areas particularly in respect of
beauty care and health care products is showing an increasing
tendency. (85% of the people in the age group of below 40 years both

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from illiterate & literate groups prefer branded products with the
belief that quality is assured as the manufacturers are reputed
companies. For Ex: Colgate Tooth Paste, Head & Shoulder
shampoo).
People are not worried about the price of the product. They
are showing willingness to spend higher price when they realize that
they can afford to spend. Since the usage of branded products of
reputed companies will elevate their status as well as stature in that
village.
This change in the attitude to spend more on the highly priced
branded products (Example: Dove Soap, Gorniour Hair Oil) among
high income groups in rural areas clearly suggests that there is a
ample scope for such products to capture the markets in this areas by
increasing the supply of these products.
The marketing agencies are advised to conduct health
awareness programs by educating the people about the need to use
the health care products to arrest tooth decay, hair fall, dry skin, etc.
These products can be made more popular and acceptable among the
rural people.

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Asia-Pacific Journal of Social Sciences, Vol.I(2), June-December 2009, pp.230-240