Innovative Model

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INNOVATIVE RURAL DISTRIBUTION

CHAPTER 1

1. INTRODUCTION

1.1. RESEARCH BACKGROUND

Commercial revolution and industrial revolution in the late 18th and early 19th centuries

have resulted in many benefits to the salver of Indian consumers. Increased competition results

in increased availability of goods at comparatively lower prices. Now goods produced all over

the world become available to the consumers. But what is the matter of consideration is that in

the old economic order the quality and kind of goods produced and the prices charged for them

were determined by custom and tradition which had behind them the sanction of the community.

But in the market economy, the consumer ceased to enjoy this protection. The consumers are

enough aware of market conditions and able to assess the quality and properties of product. The

fact which put him at a comparatively disadvantageous position as a buyer, nowadays, is that he

is often misinformed and misguided by the sellers, who had large resources at their disposal.

There exists an increasing tendency among producers and sellers to come together and form

monopolies which restrict supply to raise prices. To protect the Indian consumers the consumer

movement has been started in India in the year 1930 by a follower of Mahatma Gandhi. As the

height of Gandhi's campaign for freedom from colonial rule, India experienced a registered

consumer organization, for the first time, in Chennai. And the enactment of the Consumer

Protection Act in 1986 had provided the momentum for the consumer movement in India to

bloom. The Consumer Protection Act 1986 of India explicitly called for the protection of not

only those who could afford to purchase goods and services in the market place but also

consumers from rural India who earn an insufficient living.

The term micro finance sometimes is used interchangeably with the term micro credit.

However while micro credit refers to purveyance of loans in small quantities, the term

microfinance has a broader meaning covering in its ambit other financial services like saving,

insurance etc.


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The essential features of the approach are to provide financial services through the groups

of individuals, formed either in joint liability or co-obligation mode. Basically groups can be of

two types:

Self Help Groups (SHGs): The group in this case does financial intermediation on behalf of the

formal institution. This is the predominant model followed in India.

Grameen Groups:In this model, financial assistance is provided to the individual in a group by

the formal institution on the strength of groups assurance. In other words, individual loans are

provided on the strength of joint liability/co obligation. This microfinance model was initiated by

Bangladesh Grameen Bank and is being used by some of the Micro Finance Institutions (MFIs)

in our country.

Self-Help Group is a small voluntary association of poor people preferably from the same

socio-economic back drop. The micro-credit given to them makes them enterprising; It can be

allwomen group, all-men group or even a mixed group. However, it has been the experience that

womens groups perform better in all the important activities of SHGs. Self Help Groups or

SHGs represent a unique approach to financial intermediation. The approach combines access to

low-cost financial services with a process of self management and development for the women

who are SHG members. SHGs are formed and supported usually by NGOs or (increasingly) by

Government agencies. Linked not only to banks but also to wider development programmes,

SHGs are seen to confer many benefits, both economic and social. SHGs enable women to grow

their savings and to access the credit which banks are increasingly willing to lend. SHGs can also

be community platforms from which women become active in village affairs, stand for local

election or take action to address social or community issues.


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1.2. IDENTIFIED PROBLEM

The marketers are trying with more innovative distribution methods such as Project

Shakti, Choupal Sagar, GODREJ Aadhaar, Hariyali Kisaan Bazaar. The project shakti

promoted by Hindustan Unilever (HUL) is considered as the most cost effective distribution

model. HUL mainly focus this model only in the selected area of the country. HUL markets the

product in rural through Self Help Group (SHG). Having a huge potential available in this

organized model it has to pass through its own problems like low income, resistance from local

shopkeepers, duplicates, caste feelings etc. Hence it is necessary to find out the viability in

marketing products through self help groups.

1.3. NEED FOR THE STUDY

This project studies Self Help Groups (SHGs) as Potential Channel Partner for Rural

Markets in Cuddalore district. This study would help to the rural areas are consuming a large

quantity of industrial and urban manufactured products. In this context, a special marketing

strategy, namely, rural marketing has emerged. Rural markets, as part of any economy, have

untapped potential. There are several difficulties confronting the effort to fully explore rural

markets. The concept of rural markets in India is still in evolving shape, and the sector posesa variety of challenges. Distribution costs and non-availability of retail outlets are major

problems faced by the marketers. The success of a brand in the Indian rural market is as

unpredictable as rain. Many brands, which should have been successful, have failed

miserably.

1.4. OBJECTIVES AND SCOPE

1.4.1. Objectives

The objectives of the study include:

1. To study the profile of SHG members and their family background.2. To identify the SHGs and its members involved in marketing of traditional products and

non-traditional products.


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3. To assess the shift of SHGs from traditional to Non-traditional trading.4. To find out the problems faced by SHGs in marketing products5. To find out the potential for marketing multiple products and services through SHGs

1.4.2. Scope

This project is tried to extend marketing plans that they use in urban areas to the rural

markets. The unique consumption patterns, tastes, and needs of the rural consumers should

be analyzed at the product planning stage so that they match the needs of the rural people.

1.5. DELIVERABLES

Distribution methods practiced by the marketer Number of SHG members involved traditional products and non-traditional products. Number of SHG members shifted from traditional products to non-traditional products Identifies the nature of problem faced by SHGs Potential for marketing multiple products and services


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distribution system has been the envy of every other marketing organisation in the country.

HULs much-admired distribution machinery was directly servicing less than a fifth of Indias

villages. This was the fallout of uneconomical last-mile logistics. The business generated by

retailers in these half a million villages was less than that incurred by the company to service

them. That meant HULcould not reach out to nearly 87 per cent of Indias villages, which have a

population of 2,000 or less Retailers in these villages relied on the wholesale channel easily

one of the most cost-effective mass distribution systems. So products did get through, but only

fast-moving brands without a direct distribution system in place, Lever knew that only a handful

of its brands would reach rural shop shelves.

Aishwarya (2009) argued that poor households should be perceived as producers and not

just consumers. The BoP consists primarily of small-scale producers: 57 per cent of Indias

labour force is self-employed, 29 per cent of Indias labour force consists of workers who

provide casual labour. The ToP, or the rich, are brand conscious consumers, who can be seen as

a viable niche market for BoP produced goods and services. Therefore, new ways of accessing

ToP markets should be discovered. She argued that the surplus is still at the top of the pyramid.

The real way to make profits is in production and not consumption.

The traditional business models of the formal financial companies are unfeasible and

costly in providing appropriate reach to the unbanked population in remote areas directly for

banking, insurance and other financial services and products, and as a result, a mere 5.2% of

Indian villages have a bank branch (Kochhar, 2009).

According to Frost and Sullivan (2008) The Financial inclusion (FI) quotient of a

country is recognized as a key determinant to gauge that country's overall economic and social

development. Even in developed financial markets there are concerns about those excluded from

the banking system, especially, migrant workers. The barriers to access formal banking system

have been identified as relating to culture, education (financial literacy), gender, proof of

identity, remoteness of residence, income and assets, etc. (Rangarajan, 2008).


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Branchless banking is the use of technology, such as mobile phones and bank cards, for

the conduct of financial transactions electronically and remotely. The use of third party outlets as

agents for the financial services provider allows customers to use financial services without

going to bank branches. The financial services provider is backed by a government-licensed

financial institution. Besides transactional services, branchless banking provides basic cash

deposit and withdrawal (Ivatury and Mas, 2008).

Ultimately debt can produce a gender initiated economic vulnerability for poor rural

households, irrespective of whether the work is wage based or a genuine small

business (Johnson, 2005). Here self-limiting is also a form of channeling. This is because the

narrow experience pool of the SHG and available investment opportunities set out at higher

levels in a micro-finance project can mean the use of debt by the rural poor is focused in

common ways. The very success of SHGs then tends to individually replicate the same activities.

The most prominent SHG micro-finance project within rural India is part of the Indira

Kranti Patham program. Formerly called Velugu, this is a World Bank sponsored movement

focusing specifically on the empowerment of women and initiated in 2000. Velugu, in turn, grew

out of the Indian government program Development for Women and Children in Rural Areas

(DWCRA). DWCRA began in 1982-83 as a gender offshoot of the National Integrated Rural

Development Program of 1979 (Deshmukh- Ranadive 2004).

Ganesamurthy, V.S and Krishnan, M.K (2004) studies the credit utilization pattern of self

help group Gopisetti, Rambabu and Venkateshwarlu, (2008) analysed the product anagement of

self help group in Andhra Pradesh. The study revealed that group production is more preferred in

higher income group as compared to the other income groups. The production business is mainly

linking up with their cost and community back ground. They are repaying their loan at right time.

Loganathan, P (2004) had analysed the state wise performance of linkage of SHG, with banks in

terms of members SHGs linked with banks assessed to the extent of involvement banks in the

programs. It revealed that Tamil Nadu is one of the top three states in respect of linkage of SHGs

with banks.


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Shanthi, G. and Dhanalakshmi, C (2005) in their article, based on the survey method of

multi stage sampling, stated that participation in group activities leads to changed self image,

enhanced access to new information, broad knowledge about resource availability and

negotiation with government officials. Reaching rural markets with products and services is an

enormous task because of the geographical spread of the market and the widely dispersed

population.

The distribution of products and services to this market therefore involves high cost and

effort. The marketers of consumer non-durables use the fixed location retail shop to reach the

rural consumer. The high costs for marketers in servicing the rural retail shops and the non-

availability of fixed location retail shops have necessitated many marketing organizations to

explore alternative channels to reach rural consumers. The alternative channels that marketers

use include the haats (periodic markets), Self-help groups (SHGs), IT-kiosks, mobile traders,

network marketing/ agents etc (Velayudhan, 2007).

Makumbe et al (2005) found that microfinance has a positive impact on decision making

in Tanzania, Hulma and Mosley (1996) found growth of microfinance borrowers in Indonesia,

India, Bangladesh and Sri Lanka. Sridhar Krishna (2004) advocated for giving legal status of

SHGs. Nataraju et al (2005) indicated that more financial support does not help the members and

recommended that they should be provided with institutional support in Karnataka.

Rajendran et al (2010) concluded that there is s definite improvement of psychological,

economical, social; and managerial skills.Among the SHG leaders in Vellore district of

Tamilnadu.

The focus of literature, mainly written in the post liberalization period, is on highlighting

potential of vast rural market and providing description of a few cases of commercial

organization n of rural areas. The literature has uncritically borrowed theories, framework and

concept from the mainstream marketing discipline, which has shifted the growth of the subject as

an independent field of academic investigation. There is an urgent need to build a distinctive

perspective and a sound theoretical base for rural marketing, which would create its own


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concepts, frameworks, theories and body of knowledge. The issue needs immediate attention of

the researcher in rural marketing.

Nagayya (2000) stated that there has been a massive expansion in the formal credit

delivery network in the last three decades and there is an acceptable gap in financing the genuine

poor, especially in remote rural area.

Sabyasachi Das (2003) reported on the functioning of Self-Help Groups and microcredit.

It included social, economic, political and spiritual development of the poorer section of the

society. NGOs gave some training to the SHGs for awareness building, entrepreneurship and

skill training and some help in arranging inputs, and marketing, introduced saving and internal

lending, helped in the maintenance of accounts and linked them with the banks for credit

requirements.

Shetty (2002) reported on the impact of Rural Self Help groups and other forms of

microfinancing.

Solanki (2002) identified technologies for rural development in the directory of rural

development published by National Institute of Rural Development, Hyderabad which is a

unique effort in assembling the detailed information of 100 technologies developed by various R

& D institutions/ agencies. This reference book will help the policy makers and technologists in

analyzing and implementing the practical approaches. A large number of these technologies are

being transferred free of cost, with a few on consultancy basis while some of them need license

to enable their transfer.

Tripathy (2004) explained economic empowerment through income generating activities

through self help groups and also explained its importance in education, mid -day meals scheme,

health, agriculture and allied activities, community action and sustainable development and rural

sanitation.


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The SHGs have been found to be an effective tool of micro-credit delivery for women

empowerment and rural development (Desai, 2000; Puhazhendhi, 2000). There is several success

stories of how SHGs have benefited the poverty-ridden people in the rural areas in emerging

empowered and how lending to SHGs have made loss-making branches of banks to turn around.

Although SHGs have come to stay there are some germane issues that need to be sorted out.

2.2. RESEARCH GAP

According to the literature reviewed the rural marketing has immense potency in selling

fast moving consumer goods. The role of SHGs in selling consumer products in rural areas has a

huge potency. Some SHG members facing local resistance from the local shopkeepers. In order

to catch the rural market further study is to be needed to formulate the best marketing strategies

in the rural areas. The literature has uncritically borrowed theories, framework and concept from

the mainstream marketing discipline, which has shifted the growth of the subject as an

independent field of academic investigation. There is an urgent need to build a distinctive

perspective and a sound theoretical base for rural marketing,


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CHAPTER 3

3. METHODOLOGIES

3.1. TYPE OF PROJECT

The study will be Exploratory. The study needs to explore the marketing potential of

FMCG of Shakti products through SHG members as business channel partners in Cuddalore

district. It will be supported with primary data collected using questionnaires. The study provides

clear specification of who, what, when, why and how aspects of their search. It involves more

specific hypothesis and testing of them through statistical INTERPRETATION techniques.

3.2. TARGET RESPONDENTS

The primary data would be collected from SHG members having Shakti dealership in

cuddalore district and also from the rural customers.

3.3. ASSUMPTIONS

The SHG members of Shakti dealership are assumed to be aware of selling FMCG of

Shakti products.

3.4. PROPOSED SAMPLING METHODS

3.4.1. Sampling Unit

The responses will be obtained from SHG members who are having the Shakti

dealership.

3.4.2. Sample Size

A total of 100 samples were chosen for the study.

3.4.3. Sampling Technique

The sample size of the study consists of 40 SHG Shakti member and 60 rural customers

who belong to different age and villages of cuddalore district. They will be selected by way of

Convenience sampling method. It is a non probability sampling method, in which samples are

drawn at convenience of the researcher or interviewer.


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3.5. DATA PROCESSING

Depending on the nature of the information to be gathered, different methods are used to

conduct the assessment: forms for gathering data from different kind of respondents such as

Working men and women, House wives, and farmers surveys/interviews to gather information

from youth, community residents, and others; For purposes of the data-collection process, the

following discussion provides information on the types of data-collection tools most commonly

used.

3.5.1. Primary Data Collection

Primary research entails the use of immediate data. It is the data that has been recorded

or observed by researcher for the first time to their knowledge. Primary data is more

accommodating as it shows latest information.

Questionnaireo A questionnaire is simply a formalized set of questions for eliciting information.

In this questionnaire was essentially structured in nature and includes multiple

choice and some open ended questions.

o A sample used for the questionnaire is available in the Appendix 1. Secondary Data Collection

o Secondary data may be described as those data that have been compiled by someagency other than user. It is the information that relates to a past period. Hence,

it lacks aptness and therefore, it has unsatisfactory value. Secondary data is

collected and analyzed by the organization to convene the requirements of

various research objectives.

3.6. Types of Analysis

3.6.1. Percentage Analysis

Percentage analyzing refers to special kind of ratio. Percentage analysis is used in

making comparison between two or more fields of data. Percentage is used to describe

relationship.

This tool will be helpful to rank different selling techniques of insurance products.


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3.6.2. Statistical Analysis

1. KRUSKAL WALLIS TEST

The Kruskal-Wallis test is a nonparametric (distribution free) test, which is used to

compare three or more groups of sample data. Kruskal-Wallis Test is used when assumptions of

ANOVA are not met. ANOVA is a statistical data analysis technique that is used when the

independent variable groups are more than two. In ANOVA, we assume that distribution of each

group should be normally distributed. In Kruskal-Wallis Test, we do not assume any assumption

about the distribution. So Kruskal-Wallis Test is a distribution free test. If normality

assumptions are met, then the Kruskal-Wallis Test is not as powerful as ANOVA. Kruskal-

Wallis Test is also an improvement over the Sign test.

2. CHI-SQUARE TEST

Chi-square is a statistical test commonly used to compare observed data with data we

would expect to obtain according to a specific hypothesis. For example, if, according to Mendel's

laws, you expected 10 of 20 offspring from a cross to be male and the actual observed number

was 8 males, then you might want to know about the "goodness to fit" between the observed and

expected. Were the deviations (differences between observed and expected) the result of chance,

or were they due to other factors. How much deviation can occur before you, the investigator,

must conclude that something other than chance is at work, causing the observed to differ from

the expected. The chi-square test is always testing what scientists call the null hypothesis, which

states that there is no significant difference between the expected and observed result.


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CHAPTER 4

4. DATA ANALYSIS AND INTERPRETATION

4.1. PERCENT ANALYSIS

TABLE 4.1: VILLAGE POPULATION

SOURCE= PRIMARY DATA

INTERPRETATION:

The above table shows population of the respondents area. Around 5% of the respondents were

residing below 200 persons in their village, 67.5% of them resides between 200 to 500 and

27.5% of them above 500.

FIGURE 4.1: VILLAGE POPULATION

0

10

20

30

40

50

60

70

Below 200 200 to 500 Above 500

Percentage

Population

Population No. of Respondents Percentage

Below 200 2 5.0

200 to 500 27 67.5

Above 500 11 27.5

Total 40 100.0


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TABLE 4.2: TOTAL NUMBER OF FAMILIES

Total No. of Families No. of Respondents Percentage

Below 100 28 70.0

Above 100 12 30.0

Total 40 100.0


INTERPRETATION:

The above table shows the total number of families in the respondents village. Around 70% of

the respondents village having below 100 families and 30% of them having above 100 families

in their village.

FIGURE 4.2: TOTAL NUMBER OF FAMILIES

0

1020

30

40

50

60

70

Below 100 Above 100


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TABLE 4.3: AGE OF THE RESPONDENTS

Age No. of Respondents Percentage

Below40 yrs 33 82.5

Above 40 Yrs 7 17.5

Total 40 100.0


INTERPRETATION:

The above table shows the age of the respondent. Around 82.5% of the respondents were below

40 years. And 17.5% were above 40 years.

FIGURE 4.3: AGE OF THE RESPONDENTS

0

20

40

60

80

100

Below 40yrs Above 40yrs


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TABLE 4.4: NUMBER OF YEARS ASSOCIATED WITH THE GROUP


INTERPRETATION:

The above table shows the number of years the SHG members associated with the group.

2.5% of the members were associated with the group for 1 year. 22.5% of the members were

associated with the group for 2 years. 32.5% of the members were associated with the group

for 3 years. 35% of the members were associated with the group for 4 years. 5% of the

members were associated with the group for 5 years. 2.5% of the members were associated

with the group for 6 years.

FIGURE 4.4: NUMBER OF YEARS ASSOCIATED WITH THE GROUP

0

10

20

30

40

1 2 3 4 5 6

%o

fassociationwiththegroup

No. of Years associated with the group

Number of years association of the member with the

group

Number of year associated

with the group

No. of Respondents Percentage

1 1 2.52 9 22.53 13 32.54 14 35.05 2 5.06 1 2.5

Total 40 100.0


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TABLE 4.5: RELIGION OF THE RESPONDENT


INTERPRETATION:

The above table shows the religion of the respondents. Around 92.5% of the respondents

were belonging to Hindu and around 7.5% respondents were Christians.

FIGURE4.5: RELIGION OF THE RESPONDENT

0

20

40

60

80

100

Hindu Christian

Percentage

Religion

Religion No. of Respondents Percentage

Hindu 37 92.5

Christian 3 7.5

Total 40 100.0


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TABLE 4.6: CASTE OF THE RESPONDENT

Caste No. of Respondents Percentage

BC 9 22.5

MBC 19 47.5

SC 12 30.0

Total 40 100.0


INTERPRETATION:

The above table shows the Caste of the respondents. Around 22.5% of the respondents were

belonging to BC, 47.5% respondents were MBC, and 47.5% respondents were SC.

FIGURE 4.6: CASTE OF THE RESPONDENT

0

10

20

30

40

50

BC MBC SC

Percentage

Caste


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TABLE 4.7: MARITAL STATUS OF THE RESPONDENT

Marital status No. of Respondents Percentage

Married 40 100.0


INTERPRETATION:

The above table shows the Marital Status of the respondents. All the respondents were married.

FIGURE 4.7: MARITAL STATUS OF THE RESPONDENT

0

20

40

60

80

100

Married Unmarried

Percentage

Marital status


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TABLE 4.8: OCCUPATION OF THE RESPONDENTS HUSBAND

Occupation of the husband No. of Respondents Percentage

Agriculture 7 17.5

Farm Worker 8 20

Business 10 25

Government

Employee1

2.5

Private 13 32.5

Others 1 2.5

Total 40 100


INTERPRETATION:

The above table shows the Occupation of the Husband of the respondents. Around 17.5% of the

respondents were agriculture, 20% respondents were Farm Workers, 25% were Business, 2.5%

was Government Employee, 32.5% were private employees, and 2.5% were doing Other Jobs.

FIGURE 4.8: OCCUPATION OF THE RESPONDENTS HUSBAND

0

5

10

15

20

25

30

35

Percentage

Occupation


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TABLE 4.9: NUMBER OF MEMBERS IN THE FAMILY

No. of members in the

familyNo. of Respondents Percentage

3 6 15.0

4 10 25.0

5 7 17.5

6 9 22.5

7 7 17.5

10 1 2.5

Total 40 100.0


INTERPRETATION:

The above table shows the Number of Members of the Family of the respondents. Around 15%

of the respondents were having 3 members in the family. 25% having 4 members, 17.5% were

having 5 members, 22.5% having 6 members, 17.5% having 7 members and 2.5% of the

respondents were having 10 members in the family.

FIGURE 4.9: NUMBER OF MEMBERS IN THE FAMILY

0

5

10

15

20

25

3 4 5 6 7 10

Percentage

No. of family members


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TABLE 4.10: NUMBER OF DEPENDENTS


INTERPRETATION:

The above table shows the Number of dependents of the Family of the respondents. Around

22.5% of the respondents were having 2 dependents. 27.5% having 3 dependents, 20% were

having 4 dependents, 25% were having 5 dependents and 5% were having 6 dependents in the

family.

FIGURE 4.10: NUMBER OF DEPENDENTS

0

5

10

15

20

25

30

2 3 4 5 6

Percentage

No. of dependents

Number of dependents No. of Respondents Percentage

2 9 22.53 11 27.5

4 8 20.0

5 10 25.0

6 2 5.0

Total 40 100.0


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TABLE 4.11: EDUCATIONAL STATUS OF THE RESPONDENT


INTERPRETATION:

The above table shows the Educational Status of the respondents. Around 65% of the

respondents were having Formal education and 35% were Non-Formal education,

FIGURE 4.11: EDUCATIONAL STATUS OF THE RESPONDENT

0

10

20

30

40

50

60

70

Formal Non-formal

Percentage

Educational Status

Educational Status No. of Respondents Percentage

Formal Education 26 65.0Non - Formal Education 14 35.0

Total 40 100.0


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TABLE 4.12: OCCUPATIONAL STATUS OF THE RESPONDENT


INTERPRETATION:

The above table shows the Occupational Status of the respondents. Around 32.5% of the

respondents were Unemployed, 10% were Wage earners, 50% were Assisting Husbands work

and 7.5% were doing other occupations.

FIGURE 4.12: OCCUPATIONAL STATUS OF THE RESPONDENT

0

10

20

30

40

50

Unemployed Wage Earners Assisting

Husband's

work

Others

Percentage

Occupational Status

Occupational Status No. of Respondents Percentage

Unemployed 13 32.5

Wage Earners 4 10.0

Assisting Husband's Work 20 50.0

Others 3 7.5

Total 40 100.0


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TABLE 4.13: INTIAL INVESTMENT MADE BY THE RESPONDENT


INTERPRETATION:

The above table shows the initial investment of the respondent. Around 70% of the respondentsinvested below 2000 rupees and 30% of them invested above 2000 rupees.

FIGURE 4.13: INTIAL INVESTMENT MADE BY THE RESPONDENT

0

10

20

30

40

50

60

70

Below Rs.2000 Above Rs.2000

Percentage

Initial Investment

Initial Investment No. of Respondents Percentage

Below Rs.2000 28 70.0

Above Rs 2000 12 30.0

Total 40 100.0


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TABLE 4.14: SOURCE OF CAPITAL


INTERPRETATION:The above table shows the Source of Capital of the respondents. Around 75% of the respondents

were getting source of capital from the Bank and 25% were from their own fund.

FIGURE 4.14: SOURCE OF CAPITAL

0

20

40

60

80

Bank Own Fund

Percentage

Source of Captical

Source of Capital No. of Respondents Percentage

Bank 30 75.0

Own Fund 10 25.0

Total 40 100.0


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TABLE 4.15: RESPONDENTS COMFORT WITH THE BUSINESS


INTERPRETATION:

The above table shows the Business Comfort of the respondents. Around 97.5% responded Yes

and 2.5% were responded No.

FIGURE 4.15: RESPONDENTS COMFORT WITH THE BUSINESS

0

20

40

60

80

100

Yes No

Percentage

Comfort with the business

Business Comfort No. of Respondents Percentage

Yes 39 97.5

No 1 2.5

Total 40 100.0


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TABLE 4.16: ENGAGING FAMILY MEMBERS IN BUSINESS


INTERPRETATION:

The above table shows family members engagement in their business.100% of the respondent

were answered Positive.

FIGURE 4.16: ENGAGING FAMILY MEMBERS IN BUSINESS

0

20

40

60

80

100

Yes No

Percentage

Engaging family members

Engaging family members No. of Respondents Percentage

Yes 40 100.0


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TABLE 4.17: FAMILY MEMBERS SUPPORT

Business support No. of Respondents Percentage

Husband 34 85.0

Daughter 2 5.0

Father 2 5.0

Daughter-in-law 2 5.0

Total 40 100.0


INTERPRETATION:

The above table shows the supporter of the respondents family for their business. 85% of

members getting support from their Husband. 5% were from their Daughter, 5% were from their

Father and 5% were from their Daughter-in-law.

FIGURE 4.17: FAMILY MEMBERS SUPPORT

0102030405060708090

Percentage

Business support


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TABLE 4.18: PLACE OF SELLING PRODUCTS


INTERPRETATION:The above table shows the where the respondents sell their Products. Around 60% of the

respondents were having Separate Shop and 40% of them having selling in the house itself.

FIGURE 4.18: PLACE OF SELLING PRODUCTS

0

10

20

30

40

50

60

Separate Shop In house

Percentage

Place of selling

Where you sell your products No. of Respondents Percentage

Separate shop 24 60.0

In the house 16 40.0

Total 40 100.0


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TABLE 4.19: AVAILABILITY OF DUPLICATE PRODUCTS IN THE MARKET

Duplicate products No. of Respondents Percentage

Yes 6 15.0

No 34 85.0

Total 40 100.0


INTERPRETATION:

The above table shows is there any duplicate for the respondents products. Around 15% of the

respondents answered Yes and 85% of them answered No.

FIGURE 4.19: AVAILABILITY OF DUPLICATE PRODUCTS IN THE MARKET

0

20

40

60

80

100

Yes No

Percentage

Duplicate products


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TABLE 4.20: ALL THE COMMUNITIES IN THE VILLAGE PURCHASE FROM THE

SHOP

All the communities purchase in the shop No. of Respondents Percentage

Yes 25 62.5

No 15 37.5

Total 40 100.0


INTERPRETATION:

The above table shows whether all the communities from their village purchase from their shops.

Around 62.5% of the respondents answered Yes and 37.5% of them answered No.

FIGURE 4.20: ALL THE COMMUNITIES IN THE VILLAGE PURCHASE FROM

THE SHOP

0

10

20

30

40

50

60

70

Yes No

Percentage

All Communities purchase


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34

TABLE 4.21: PRODUCTS YOU SOLD BEFORE TAKING SHAKTI


INTERPRETATION:

The above table shows what type of product they sold for taking Shakti dealership. Around 30%of the respondents answered selling Traditional Products. 70% of them answered No.

FIGURE 4.21: PRODUCTS YOU SOLD BEFORE TAKING SHAKTI

0

10

20

30

40

50

60

70

Traditional Products No

Percentage

Selling

Before selling Shakti Products No. of Respondents Percentage

Traditional Products 12 30.0

No 28 70.0

Total 40 100.0


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TABLE 4.22: PRODUCTS SOLD BY SHAKTI MEMBERS

Are you dealing only shakti product No. of Respondents Percentage

Only Shakti products 14 35.0

Other products also 26 65.0

Total 40 100.0


INTERPRETATION:

The above table shows Are the respondent dealing only Shakti products. Around 35% of the

respondents answered Yes and 65% of them answered No.

FIGURE 4.22: PRODUCTS SOLD BY SHAKTI MEMBERS

0

10

20

30

40

50

60

70

Yes No

Percentage

Product


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36

TABLE 4.23: RESISTANCE FROM THE LOCAL SHOP


INTERPRETATION:The above table shows 82.5% respondents do not face any resistance from local Shops. Around

17.5% of the respondents answered Yes.

FIGURE 4.23: RESISTANCE FROM THE LOCAL SHOP

0

20

40

60

80

100

Yes No

Percentage

Resistance

Resistance No. of Respondents Percentage

Yes 7 17.5

No 33 82.5

Total 40 100.0


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TABLE 4.24: AVERAGE SALES PER DAY FOR YOUR SHAKTI PRODUCTS

Average Sales No. of Respondents Percentage

High 2 5.0

Moderate 36 90.0

Poor 2 5.0

Total 40 100.0


INTERPRETATION:

The above table shows the respondents Average sales of Shakti products per day. Around 5% of

them gets High Sales, 90% getting Moderate Sales and 5% of them gets Poor Sales per day.

FIGURE 4.24: AVERAGE SALES PER DAY FOR YOUR SAKTHI PRODUCTS

0

20

40

60

80

100

High Moderate Poor

Percentage

Sales


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38

TABLE 4.25: GETTING PROFIT FROM YOUR BUSINESS

Profit From Business No. of Respondents Percentage

Yes 40 100.0


INTERPRETATION:

The above table shows the respondents profit from their business. 100% of the respondents

answered Yes.

FIGURE 4.25: GETTING PROFIT FROM YOUR BUSINESS

0

20

40

60

80

100

Yes

Percentage

Profit


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39

TABLE 4.26: PLACE OF PRODUCT PROCUREMENT


INTERPRETATION:The above table shows from where the respondent procuring their products. Around 75% of the

respondents procuring directly from the HUL dealer and 30% of them were directly from the

company.

FIGURE 4.26: PLACE OF PRODUCT PROCUREMENT

0

10

20

30

40

50

60

70

Directly from HUL dealer Directly from the

Company

Percentage

Place

Product Procurement No. of Respondents Percentage

Directly from HUL dealer 28 70.0

Directly from the company 12 30.0

Total 40 100.0


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TABLE 4.27: FREQUENCY OF ORDERS PLACED BY SHG MEMBERS

Frequency of orders No. of Respondents Percentage

Weekly 1 2.5

Fortnightly 9 22.5

Monthly 26 65.0

Based on requirement of the product 4 10.0

Total 40 100.0


INTERPRETATION:

The above table shows the respondents frequency of the order from the customer. Around 2.5%

of the respondents getting weekly order, 22.5% of them getting Fortnightly, 65% of them getting

monthly orders and 10% were based on the requirement of the product.

FIGURE 4.27: FREQUENCY OF ORDERS PLACED BY SHG MEMBERS

010203040506070

Weekly Fortnightly Monthly Based on

requirement

of the

product

Percentage

Frequency


41/60


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42

RURAL CUSTOMER

TABLE 4.29: DECISION MAKING OF THE RURAL CUSTOMER IN BUYING FMCG

Decision making No. of Respondents Percentage

Family Head 41 68.3

Wife 17 28.3

Daughter 2 3.3

Total 60 100.0

INTREPRETATION:

The above table shows the respondents decision making of the rural customer in buying FMCG.

Around 68.3% of the respondents stated that buying decisions were made by family head. 28.3%

of the respondents stated wife and 3.3% stated as daughter.

FIGURE 4.29: DECISION MAKING OF THE RURAL CUSTOMER IN BUYING

FMCG

0

10

20

30

40

50

60

70

Family Head Wife Daughter

Percentage

Decision Maker


43/60


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TABLE 4.31: PURCHASE IN VILLAGE SHOP

INTREPRETATION:

The above table shows the purchase of the respondent in the village shop. Around 95% of the

respondents purchase in Village shop and 5% were not purchasing in the village shop.

FIGURE 4.31: PURCHASE IN VILLAGE SHOP

0

20

40

60

80

100

Yes No

Percentage

Purchase

Village shop No. of Respondents Percentage

yes 57 95.0

No 3 5.0

Total 60 100.0


45/60


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TABLE 4.33: PURCHASE IN SHG MEMBERS SHOP

INTREPRETATION:

The above table shows the purchase of the respondent in the SHG members shop. Around 90%

of the respondents purchase in SHG members shop and 10% were not purchasing in the SHGmembers shop.

FIGURE 4.33: PURCHASE IN SHG MEMBERS SHOP

0

20

40

60

80

100

Yes No

Percentage

Purchase

Purchase frequency No. of Respondents Percentage

yes 54 90.0

No 6 10.0

Total 60 100.0


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TABLE 4.34: PURCHASE FREQUENCY IN SHG MEMBERS

INTREPRETATION:

The above table shows the respondents purchase frequency in the SHG members. Around 3.3%

of the respondents stated daily purchase and 3.3%, 53.3% and 31.7% of the respondent stated

weekly, monthly and occasionally respectively. 8.3% of them not purchasing in the SHG

members.

FIGURE 4.34: PURCHASE FREQUENCY IN SHG MEMBERS

0

10

20

30

40

50

60

Percentage

Frequency

Purchase frequency No. of Respondents Percentage

Daily 2 3.3

Weekly 2 3.3

Monthly 32 53.3

Occasionally 19 31.7

Not Applicable 5 8.3

Total 60 100.0


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TABLE 4.35: REASON FOR BUYING FROM VILLAGE SHOP

INTREPRETATION:

The above table shows the respondents reason for buying in the village shop. Around 46.7% of

the respondents preference reason was Availability. 8.3% and 40% respondents stated less

price and convenience respectively as the reason for buying in the village shop.

FIGURE 4.35: REASON FOR BUYING FROM VILLAGE SHOP

0

20

40

60

80

Availability Less Price Convenience Not

Applicable

Percentage

Reason

Reason No. of Respondents Percentage

Availability 28 46.7

Less Price 5 8.3

Convenience 24 40.0


Total 60 100.0


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TABLE 4.36: REASON FOR BUYING FROM SHG MEMBER

Reason No. of Respondents Percentage

Availability 12 20.0

Less Price 40 66.7

Convenience 2 3.3


Total 60 100.0

INTREPRETATION:

The above table shows the respondents reason for buying in the SHG member. Around 20% of

the respondents preference reason was Availability. 66.7% and 3.3% respondents stated less

price and convenience respectively as the reason for buying in the SHG member.

FIGURE 4.36: REASON FOR BUYING FROM SHG MEMBER

0

10

20

30

40

50

60

70

Availability Less Price Convenience Not

Applicable

Percentage

Reason


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4.2.DATA ANALYSIS USING STATISTICAL TOOLS

4.2.1. KRUSKAL WALLIS TEST FOR SHG SHAKTI DEALER CASTE AND

PURCHASE OF ALL COMMUNITIES

Ho: (Null Hypothesis): There exists no significant relationship between caste and

purchase from all communities

H1: (Alternate Hypothesis): There exists significant relationship between caste and


TABLE 4.37: CROSS TABULATION- SHG SHAKTI DEALER CASTE AND


Caste

Whether all the communities from the Village purchase from the shop?

Total

Yes No

BC 7 2 9MBC 14 5 19SC 4 8 12

Total 25 15 40

Chi-Square Test Value df P value

Pearson Chi-Square 6.266(a) 2 .044

RESULT:

P Value < .05 reject Ho. Hence, there exists significant relationship between caste and


INTERPRETATION:

From the result it is clear that there is a significant relationship between Caste and

purchase of all communities.


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DESCRIPTIVE STATISTICSINITIAL INVESTMENT

Mean 1886.25

Minimum 1000

Maximum 10000

RESULT:

From the above table it is clear that the Maximum initial investment is Rs.10000 and the

minimum is of Rs.1000 and the mean value is 1886.25.

4.2.2. KRUSKAL WALLIS TEST FOR SHG SHAKTI DEALER CASTE AND


Ho: (Null Hypothesis): There exists no significant relationship between caste and


H1: (Alternate Hypothesis): There exists significant relationship between caste and


TABLE 4.38: SHG SHAKTI DEALER CASTE AND PLACE OF SELLING THEIR

PRODUCTS

CasteWhere you sell your products

TotalSeparate shop In house

BC 5 4 9

MBC 13 6 19SC 6 6 12

Total 24 16 40


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CHI-SQUARE TESTS

Chi-Square Value df P value

Pearson Chi-Square

1.135(a) 2 .567

RESULT:

P Value >.05 Accept Ho. Hence, there exists no significant relationship between caste

and place of selling their products.

INTERPRETATION:

From the result it is clear that there is no significant relationship between Caste and place

of selling their products.


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CHAPTER 5

5. SUMMARY OF FINDINGS AND CONCLUSION

5.1. SUMMARY OF FINDINGS

SHAKTI DEALER

Majority (67.5%) of the respondents village population was between 200 to 500 Majority (70%) of respondents families in their village was below 100 Majority (82.5%) of the respondents were below 40 yrs of age 90% of the respondents were associated with the group (SHG) for 2-4yrs Majority (92.5%) of the respondents belongs to Hindu religion Majority (47.5%) of the respondents Caste was MBC 13% of the respondents husband were private employees 97.5% of the respondents family size ranges between 3 to 7 members 95% of the respondents number of dependents in their family was between 3 to 5 Majority (65%) of the respondents were having formal education Majority (50%) of the respondents were assisting their husbands work Majority 70%) of the respondents initial investment was below 2000 rupees in Project

shakti

Majority (75%) of the respondents source of capital was from the bank Majority (97.5%) of the respondents were being comfort in their business The entire family members assisting the respondents business. Majority (85%) of the respondents were getting business support from their husband Majority (60%) of the respondents have separate shops for selling their products Majority (85%) of the respondents stated that there is no duplicate for their product in the

market

Majority (62.5%) of the respondents stated that all the communities in the villagepurchase from their shops

Majority (30%) of the respondents were selling traditional products before taking shaktidealership


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Majority (65%) of the respondents were selling other than shakti products Majority (82.5%) of the respondents stated that they did not face any resistance from the

local shops

Majority (90%) of the respondents stated that they are getting moderate sales for theirshakti products

All the respondents stated that they are getting profit from their business Majority (70%) of the respondents procuring their products directly from HUL dealer Majority (65%) of the respondents were placed their order on monthly basis Majority (67.5%) of the respondents stated that they required to wait for 2-4 days for

product delivery

RURAL CUSTOMERS

Majority (68.3%) of the respondents stated that decision in buying FMCG was made byFamily head and also majority (38.3%) of them stated that such a decision are always

made by the family heads

Majority (95%) of the respondents stated that they are buying from village shop Majority (78.3%) of the respondents daily purchase FMCG from the from Village shops Majority (53.3%) of the respondents monthly purchase FMCG from the from SHG

members

Majority (46.7%) of the respondents stated that availability is the reason for buyingFMCG from Village shops

Majority (66.7%) of the respondents stated that less price is the reason for buying FMCGfrom SHG members


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5.2. SUGGESTIONS

Government, NGOs and Corporate can come forward and support for SHG members to sell

their products. By getting support from the government will enhance the SHG members excel

in their business. Effective marketing strategies required to reach the rural markets through

SHGs and by creating awareness programs in rural areas about the Shakti products. Making

the products more freely and easily available to the rural customers. Most of the villagers are

buying the product on daily basis, so huge potential exists for SHG for selling their products

On day today basis. The research findings show that project sakthi dealers are selling

additional products to get additional income. The micro level marketing can be scale up by

adding other non competitor products with the existing HUL products.

5.3. CONCLUSION

Project Shakti is enabling rural families to live with dignity and in better health and hygiene,

education of the children and an overall betterment in living standards. It creates a win-win

partnership between HUL and the rural consumers for mutual benefit and growth. This can

be said as sustainable development in the sphere of business sphere. Project Shakti provides a

powerful example of a business that profits while improving the livelihoods and quality of

life for its customers. Creating more awareness for the use of Shakti products in rural areas

and making the products more easily available to all kind of rural populations will give good

business for Shakti products.


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APPENDIX - 1

Questionnaire for SHGs- Shakti Dealer

1. Geographical Information:Village Name Population

Total number of families Taluk: District

2. General profile:Name of the SHG:

Name of the member: Age (Completed years):

3. Number of years associated with the group:Religion:

4. Caste: OC/BC/MBC/SC/ST5. Marital status Married Unmarried6. If married, occupation of the husband

Agriculture Farm worker Business Government Employee Private

Others (please specify).

7. Number of members in the family: ____________8. Number of dependent members in the family: __________9. Educational status

Formal education Non formal education

10. Occupational status

Before joining SHGs Unemployed Wage earners Assisting Husbands Work

Others (please specify).

11.What is your initial investment?12.What is the source of your capital?13.Are you comfortable with the business: Yes No


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14. If no, what type of problem you are facing / faced Inadequate funds Poor sales Problem in getting the ordered goods No support from the Family

15. Are you engaging your family members in your business?

Yes No

16. If yes who is supporting for your business Son Husband Daughter Father Daughter-in-Law

17.From where you sell your products? separate shop In house

18.Is there any duplicate product for your products in the market? Yes No19.Whether all the communities from the village purchase from the shop?

Yes No

20.Are you dealing only shakti products or additional products? Yes No If yes what type of procuct ________________________

21.Do you face any resistance from the local shop? Yes No22.As an average how much sales per day you are able to achieve from your Shakti product

business? High Moderate Poor other _________________

23.Do you getting profit from your business? Yes No24.From where you are procuring your product?

Directly from the HUL dealer Directly from the company others

(specify)___________________

25.What is the frequency of your orders?Weekly Fortnightly Mothly Based on requirement of the product

26.How long you have to wait for the product supply? within a day 2- 4 days one week More than one week

27.What type of other support you are getting from the company? ________________________28.What are the other supports you are expecting from the company?

________________________________________________


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Questionnaire for Rural customers

1. General profile:Name of the family head:

Age:Education:Occupation:Number of members in the family:Number of dependents:Family monthly income:

2. Who makes decision in buying FMCG Family Head wife son daughter

3. Mention whether the above decision maker makes in all occasions

Always Often Sometimes

4. State your place of purchase and frequency of FMCGVillage shop Yes No Daily/weekly/Monthly/occasionallyMobile vendor Yes No Daily/weekly/Monthly/occasionallySHG Member Yes No Daily/weekly/Monthly/occasionallyNearby village Yes No Daily/weekly/Monthly/occasionallyNearby Town Yes No Daily/weekly/Monthly/occasionallyWeekly Market Yes No

5. Give the reason for buying from the following places Village shop Availability/less price/convenience/variety Mobile vendor Availability/less price/convenience/variety SHG Member Availability/less price/convenience/variety Nearby village Availability/less price/convenience/variety Nearby Town Availability/less price/convenience/variety

6. If you are buying from nearby village or town where you buy most of the time.Market place Supermarket Departmental store Wholesale outlet Retail outlet

7. Where you sell your farm produce? Govt. Procurement centre local buyers Corporate buyers

8. Do you think they provide reasonable price for your farm produce. Yes No


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REFERENCES:

1. Bank for Agriculture and Rural Development, Mumbai.2. Census of India (2001), Census of India Report 2001,Reterived from

http://censusindia.gov.in/3. CGAP, Washington http://www.cgap.org/p/site/c/template.rc/1.9.2640/.4. Desai, 2000. A study of SHGs and linkage programme. Indian Journal of Agricultural

Economics, 55(1):75-78.

5. Financial-Inclusion/19908110597/0/.6. Frost and Sullivan (2008) Technology a drawback for Financial Inclusion.7. Ganesamurthy, V.S and radha Krishnan (2004) A study on thrift and credit utilization

pattern of SHG in Lakshmi Vilas Bank , Suriya Mpalayam Branch, Erode, , Indian

journal of Marketing, Vol-XXXIV, No-3, January 2004, P.p- 12-16

8. Gopisetti, Rambabu and H, Venkateshwarlu (2008)Product management Of SHG inAndhra Pradesh- A study, Indian journal of Marketing, Vol-XXXVIII, No-3, march

2008, P.p- 30-41

9. http://www.ciol.com/Enterprise/BFSI/News-Reports/Technology-a-drawback-for-10.Impact of Microfinance- An empirical study on the attitude of SHG leaders in Vellore

District.Global Journal of Finance and management. (2010) Volume 2 p.59.

11.Ivatury, G. and Mas, I. (2008) The Early Experience with Branchless Banking,12.Kashyap,Pradeep & Raut, Siddhartha(2009), The Rural Marketing book, Biztantra,

NewDelhi, India

13.Kochhar, S. (2009) Speeding Financial Inclusion. Skoch Development Foundation,14.Kurukshetra. 51(10): 25-30.15.Lee,Kiefer & Carter,Steve(2009), Global Marketing Management ,Oxford university

press, New Delhi,India

16.Manimekalai N. and G. Rajeswari (2002) Gross Roots Entrepreneurship through selfhelp group SEDMI Journal Vol.29.

17.Mckinsey Global Institute (MGI), The 'bird of gold': The rise of India's consumer marketreport 2007

18.Nagayya, D., 2000. Microcredit for Self Help Groups. Kurukshetra, 48(11): 10-15.


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19.National council of Applied economic Research, Delhi (NCAER),(2002) The Indiamarket Demographic Report 2002.Retrived from http://ncaer.org/New Delhi.of India,

New Delhi. ttp://www.nabard.org/pdf/report_financial/Full%20Report.pdf.

20.Prahala, C.K., (2005). The Fortune at the Bottom of the Pyramid: Eradicating Povertythrough Profits, Pearson Education.

21.Puhazhendhi, V.,2000. Evalution study of self. help groups in Tamilnadu. National22.Rangarajan, C. (2008) Report of the Committee on Financial Inclusion. Government23.Sabyasachi Das, 2003. Self Help Groups and microcredit Synergic intergration,24.Shetty, S.L., 2002. Working and Impact of Rural Self-Help Groups and Other Forms of

Micro Financing. Indian Journal of Agricultural Economics, 57(1):31-32.

25.Shyam Shiradhonkar(2009), Rural retail market report for Aadhar.26.Solanki, S.S., 2002. Technologies for rural development. Kurukshetra, 50(4):31.27.The Economic Times, Chennai edition, February 11, 2007.28.Tripathy K.K., 2004. Self-Help Groups-A catalyst of Rural Development, Kurukshetra .

52(8): 40-43

29.Velayudhan, S.K. (2007). Rural marketing: Targeting the Non-Urban Consumer (2 nded.). New Delhi: Response Books.

30.VOICE Report (2008), A Report on the Success and Failure of SHGs in India Impediments and Paradigm of Success.

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