A Study on Consumer Behaviour towards Biscuit & Bakery products
in Rural
Prepared ByDewasish Ghoshal
PGDM (Agriculture)NAARM, Hyderabad
Session Overview
Study IntroductionResearch MethodologyA Brief introduction of ChoutuppalIntroduction of Biscuit IndustryProducts available in RuralConsumer PreferencesSWOTSuggestion/ Recommendation
IntroductionStudy Title•A Study on Consumer behaviour towards Biscuit in Rural
Objective of the Study•To understand consumer preferences in Rural•To understand the distribution pattern & promotion mix
Area of the Study•Choutuppal, Dist- Nalgonda, AP
Methodology•Data source - Primary & Secondary •Research Approach - Survey Method
Research Methodology
•Sampling unit -Retail outlets•Sampling Size -10•Sampling - Random Sampling•Data collection Instrument - Survey Questionnaire
Data Collection Technique &
Sampling
•Data availability from the secondary sources was sometimes not consistent with actual field level data and from other sources.•The information collected from the consumer and shopkeeper based on personal interviews and hence may not be Satisfactory.
Limitations of Study
A Brief Introduction about Choutuppal
Tehsil/Mandal- Choutuppal District- Nalgonda State- Andhra Pradesh Villages- 28 As of 2001 India census, population of
14,710. Males constitute 50% of the population and females 50%.
Literacy rate of 65%, higher than the national average of 59.5%
Male literacy is 73% and, female literacy is 58%.
In Choutuppal, 15% of the population is under 6 years of age.
Source: http://en.wikipedia.org/wiki/Choutuppal
Introduction On Biscuit Industry
Unorganised sec-tor
40%Organised sector60%
Two sectors of Biscuit Industry
Rural-urban penetration of Biscuit :Urban Market : 75% to 85%Rural Market : 50% to 65% Per capita consumption of Biscuits : INDIA 1.8 kg,South East Asian Countries 2.5 kg to 5.5kgUSA 7.5 kg
Products available in Rural (Choutuppal)
Local Brand- Twistee Bakery Products
Consumer Preferences (Findings)
Nearness to House
Reasonable Price
Taste/Quality
Brand 02040
Purchasing Behaviour from Shop (%)
Purchasing Behav-iour from Shop (%)
Television
Radio
Poster/BannerShopkeeper
Friends
0
20
40
Acquintance to Product (%)
Acquintance to Product (%)
Price
Taste (Quality)
Brand Promotion
Availability 0
20
40
Preferences on Buying
Preferances on Buying
Parle-G
Tiger-Britannia
Twistee (Local)
Good Day-Britannia 0
20
40
Overall Preference (%)
Overall Preference (%)
SWOT
WeaknessStrength
Opportunity(1) Annual Growth of 6% in rural and 24%
Urban(2) Changing consumer preferences(3) Increasing demand for sugar free biscuits(4) Increasing purchasing power among rural
folks(5) Low per capita consumption(6) Increasing education and awareness
about brands(7) Improved infrastructure in rural area
Threat(1) Hike in cost of production resulting hike in raw material cost(2) Increasing distribution cost(3) Growing competitive products (local Bakery)(4) Spurious product in rural area(5) Regional products replacing biscuit
Suggestion/ Recommendation
Focus and Comprehensive Brand building Strategies, Short term & Long
term Goal
Differentiate between Target Customer and Rural mass
Flexible Policies (Promotional Strategies)
Capture the events like Melas, Haats etc
Regular Feedback should be collected from Rural mass (yet not done)