Branding in Rural Market

Table of Contents

Table of Contents 1

Executive Summary 3

Introduction to Rural Market of Pakistan 4

Rural Market Analysis 5

Demographic Trends 6

1. Population Size 6

2. Number of Households 6

3. Average Household Income 7

4. Health & Education facilities 7

5. Retail Shops 8

6. Utilities (Electricity, Gas, and Water) 8

Wando 10

1. Market Segmentation: 10

1. Consumer Profile 12

2. Evaluation Process used by Consumers 12

a. Price: 12

b. Quality: 12

c. Brand Image: 12

d. Benefits Sought: 12

3. Buying Pattern by Time 13

4. Perceptual Map 13

1. Product Category: Detergents 14

2. Product Category: Beauty Care вЂ" Shampoos 15

3. Product Category: Biscuits 16

4. Product Category: Milk 17

Retail Analysis 18

FMCGs Analysis 19

1. FMCGs according to Product Category 19

2. Most sold Brands in each FMCG category 20

3. Monthly expenditure on each FMCG category 20

4. Brand Recognition 21

Retail Activity Synopsis 22

Branding Challenges for the Rural Market 24

1. The Distribution Challenge 24

2. The Marketing Challenge 25

3. Packaging that sells 26

4. Popular Communication Design Colors 27

5. Rural Market branding; what works 27

Conclusion 29

Executive Summary

The rural market of Pakistan has improved a lot over the past 6 decades after independence. Many rural areas of Pakistan have now basic health and education facilities, literacy rate is improving but at a snail’s speed, and availability of FMCG has been ever on the on the rise. In order to understand the dynamics and structure of the rural market, we have identified 6 components / demographic factors which will help us in generalizing basic trends of the rural market to be hit by FMCG companies.

Wando is a small village located around 40 kilometers South of Gujranwala, through the bypass to the GT Road, in the province of Punjab. The Wando market has been segmented on the basis of age and gender.

Wando has approximately 45 вЂ" 50 shops including fruit shops, a PCO, a Meat Shop as well as a tandoor shop and a tyre repair shop just outside the village. In order to understand how consumers perceive various FMCG brands at time of purchase, some main brands will be tested on four factors Price, Brand Value, Quality and Packaging.

After doing the survey and conducting the retail activity for FMCGs, it is concluded that rural market is still largely untapped as far as FMCGs are concerned. There is no doubt quite a reasonably huge market to be tapped by the major FMCGs brands. The penetration rate of most famous brands at present in Wando is negligible. However, many local FMCG brands are performing quite well. People are more aware of the local brands and do not very much care for the brand name or quality; they instead focus mainly on the price of the product.

Introduction to Rural Market of Pakistan

The rural market of Pakistan has improved a lot over the past 6 decades after independence. Many rural areas of Pakistan have now basic health and education facilities, literacy rate is improving but at a snail’s speed, and availability of FMCG has been ever on the on the rise. With the presence of TV in almost every 6th of a house, people are now getting aware of many products that a long time before were only considered to be made for and used by the city inhabitants of our country. However, now the FMCG companies have for some realized that the rural market was a huge market previously untapped largely because of many factors but in the past two decades, the penetration of these FMCG companies have been constantly on the rise.

In order to understand the dynamics of the FMCG penetration and consumption in the rural market, it is of prime importance that we first analyze the structure and dynamics of the rural market of Pakistan. For this, an in-depth analysis of the entire rural market was not possible for the scope of our research due to the time and other limitations. However, to come up with some reasonably close estimates and somehow gather the general demographic trends of the rural market of Pakistan, we have taken into account around nine small villages from across the province of Punjab. The villages under our research umbrella are:

1. Saidpur

2. Ssmout

3. Chuk вЂ" Bayli

4. Pir - Sohawa

5. Voti Pind

6. Choha Khaalsa

7. Chak 56/5 L

8. Sihala Mirza

9. Wando

Rural Market Analysis

In order to understand the dynamics and structure of the rural market, we have identified 6 components / demographic factors which will help us in generalizing basic trends of the rural market to be hit by FMCG companies. These generalized basic trends will be combined after comparing the information gathered from research on the above mentioned nine villages. Following are the demographic factors under research:

1. Population