market research proposal - capturing the rural market for personal and household fmcg goods

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A proposal for understanding the market demographics & consumer behavior of the rural population in India for V-Care products, and to measure the ways & provide solutions for introduction of these products in a cost effective manner. Report by:

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Page 1: Market Research Proposal - Capturing the Rural Market for Personal and Household FMCG Goods

A proposal for understanding the market

demographics & consumer behavior of

the rural population in India for V-Care

products, and to measure the ways &

provide solutions for introduction of these

products in a cost effective manner.

Report by:

Page 2: Market Research Proposal - Capturing the Rural Market for Personal and Household FMCG Goods

Client BriefArea Stores (Mn) Sales Contribution (%) Market Share

FMCG V-Care FMCG V-Care V-Care

Urban 2.6 1.9 62% 79% 19%

Rural 4.6 2.9 38% 21% 10%

Total India 7.2 4.8 100% 100% 15%

• Objective: 3X growth in Rural segment in 2 years• Threats from competitors having direct distribution• Where to Play -> Identify Target Markets• How to Reach -> Decide on Distribution Channel(s)

Page 3: Market Research Proposal - Capturing the Rural Market for Personal and Household FMCG Goods

Phase I- Identifying Priority Target Markets

Page 4: Market Research Proposal - Capturing the Rural Market for Personal and Household FMCG Goods

Identifying Priority Markets80:20 RULE – Which areas are driving the maximum sales.

Villages in 15-20sq km of tier 2-3 cities

• Input: RES pan-india rural data of 15000 sample for V-Care for past 12 months. SEC data. Census data. State Government. In-house research done in past 5 years for the Rural Population in this segment.

•Output: Who are we reaching out to, where are we reaching them.

Target Group SEC D & E

Page 5: Market Research Proposal - Capturing the Rural Market for Personal and Household FMCG Goods

Phase II- Selecting the Right Distribution Channel

Page 6: Market Research Proposal - Capturing the Rural Market for Personal and Household FMCG Goods

WholesalersPros

• Lower Cost

• Wider Cost in Lesser Time

• Flexible Network

Cons

• Lesser Margins

• Harder to Push Product

Page 7: Market Research Proposal - Capturing the Rural Market for Personal and Household FMCG Goods

Direct Distribution/SalesmenPros

• Wider variety

• Greater revenue

• Better Customer Handling

Cons

• High Cost

Page 8: Market Research Proposal - Capturing the Rural Market for Personal and Household FMCG Goods

Direct Distribution/Salesmen + Data

AcquisitionPros

• Wider variety

• Greater revenue

• Better Customer Handling

• Deeper insight into consumer behaviour

• Ease in gathering further data

Cons

• High Cost

• Training Required

Page 9: Market Research Proposal - Capturing the Rural Market for Personal and Household FMCG Goods

TARGETING LARGER VILLAGES

• First step towards distribution strategy.

UNDERSTANDING PEAK SEASONS

• During the festival season, people in rural households are in the shopping mode and there is a need for the products.

MOBILE SHOPS

• No need for investment in land.

• Small sized packages.

Innovative Distribution Channels

Page 10: Market Research Proposal - Capturing the Rural Market for Personal and Household FMCG Goods

Innovation in Advertising Strategy

VIILLAGE PANCHAYATS AND WOMEN

•Collaborate with the influential members of the rural segments as an advertising strategy

MOVIE SCREENINGS

COLLABORATING WITH THE GOVERNMENT

COOPERATIVE SOCIETIES

CLUSTERED PROBLEM-BASED POSITIONING AND ADVERTISING

Page 11: Market Research Proposal - Capturing the Rural Market for Personal and Household FMCG Goods

Innovation Through Technology

A mobile based model which caters to the rural population that owns basic mobile handsets and they

place orders with V-care either by calling or by texting the details of

the products they need.

V-care delivers products door-to-door in delivery vans and delivery bikes and take payment through the mobile platform itself which can be recharged at local shops.

We’re also going to build a platform for families to send money to send

money to each other and this money can be used to make the

payments as well

Page 12: Market Research Proposal - Capturing the Rural Market for Personal and Household FMCG Goods

Research MethodologyIdentify and

collaborate with popular mobile networks for TG

Pilot testing of concept

Innovation and Tweaking of

Concept

Implementation of Strategy

Periodic Evaluation and

Follow up

1.5 yrs

3 months

5 months Semi-Annually

2 years

Page 13: Market Research Proposal - Capturing the Rural Market for Personal and Household FMCG Goods

Thank You

Made by:

Aakriti

Akshita

Ashima

Avantika

Gaurav