Customer Perception on Fmcg Products in Rural Market

MODULE-I 1. 1. INTRODUCTION TO FAKE PRODUCTS â€Å"A rural consumer is brand loyal and this also makes it easy to sell look-alike†   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚      – Mr. R. V. Rajan, CMD, Anuragh Fake products are of two types – one: counterfeit products and two: pass-off products. Counterfeit products are fake products that bear identical name of product/ packaging/graphics/colour scheme and even same name and address as the genuine manufacturer.Someone produces these to look exactly like real products other than the legal owner of the real products, trademarks and product packaging. Sometimes it is becoming more and more difficult to tell which is the real  Ã¢â‚¬Å"Pondsâ €  talcum powder and â€Å"Clinic Plus† shampoo from the fake products. Pass-off products use similar sounding or are similar in spelling  (for example â€Å"Luk† for â€Å"Lux†,  Ã¢â‚¬Å"510† for â€Å"501†, â€Å"Saveena† for â€Å"Sabeena†,  Ã¢â‚¬Å"Sun Max† or â€Å"Super Master†. They use similar type of packaging or color or designs. They come out with the motive of misleading and cheating ordinary consumers who are uneducated or in a hurry in purchasing products.A study conducted by AC Nielson, a research agency reveals that FMCG industry loses around 2500 crores annually to counterfeits and pass-off products. According to Ashok Chhabra, Executive Director, P&G the fake products are affecting the sales of leading brands to the extent of 20 to 30 percent. Another recent survey conducted by AC Nielson reveals that top brands in India are estimated to lose up to 30 percent of their business to fake products. Bes ides the loss of revenue, the leading companies also face the loss in the damage to brand image and brand loyalty of consumers.Laws Governing Following are the laws under which legal action can be taken against manufacturers and sellers of fake products: * Indian Penal Code 1860 * Drugs and Cosmetics Act, 1940 * Prevention of Food Adulteration Act, 1954 * Consumer Protection Act, 1986 * Bureau of Indian Standards Act, 1986 * Trademarks Act, 1999 The rural consumers by looking into the ads of leading chocolate companies unknowingly purchase the fake chocolate brands because of their impulses. Hence, the researcher has conducted a survey in the petty shops in rural areas to find out the fake chocolates available.List of Fake Chocolates/Toffees available in rural areas * Dairy Milk:Daily Milk * Kit Kat:Kir Kat * Coffee Bite:Coffee Toffee * Mango Bite:Mango Ripe and mango bite * Aasai:Aasha * Polo:Rolo * Vicks: Vibex It has been found out that fake chocolates and toffees are available i n more number of petty shops for the leading brands. Strategies for Chocolate/Toffee Companies in Rural Marketing (to kill fake brands) * Product:  Without compromising on quality, the leading chocolate companies can reduce their size to match the rural demand. Pricing:  As the rural consumers are bothered about economy pricing the leading chocolate companies can follow the strategy of â€Å"penetration pricing† * Physical Distribution:  Sales professionals of the local region who have familiarity in the local (regional) language can be appointed to look after the sales of rural areas, so that they can easily converse with the retailers and can build goodwill. Fake brands exist in rural as well as urban locations. But the problem is more acute in rural areas especially the deep pockets which are less accessible and people have very little knowledge about the original brands. Most people in rural India can recognize alphabets but not complete words, so during a research, we found a whole lot of samples of fake Clinic Plus shampoo sachets where the visual was similar to the original brand but the name was changed to ‘Clinton’ as Bill Clinton was to arrive soon in the country. During another such raid, we collected about 99 variants of Fair&Lovely cream including Fair&Lonely, Far & Lovely etc. †, said Mr. Pradeep Kashyap, president, Rural Marketing Association of India (RMAI) and CEO, MART while sharing an interesting incident in past.The Indian rural landscape being scattered in smaller villages, gaining access in all of them is a tedious task for brands. Also, most of the FMCG brands have not been able to set up an efficient distribution network in such areas. The local entrepreneurs are well aware of these challenges. Hence, take advantage by manufacturing cheap substitutes of original brands, misleading the rural consumers. These manufacturers have an advantage of being local and thus reach the shops before the original brands do. Such counterfeits piggy back on huge marketing budgets of FMCG companies.The rural consumers are aware of the brand owing to ads broadcasted on radio & television channels. But on time of purchase, the consumers tend to pick their fake counterparts due to unavailability of original product or get fooled by the retailers who on purpose sell cheap products for higher margins. Over the time the share of fake products in the FMCG market has grown to 10- 15% causing a deep hole in the pockets of the FMCG companies. A study conducted by AC Nielson, a research agency reveals that FMCG industry loses around 2500 crores annually to counterfeits and pass-off products.In another recent survey conducted by AC Nielson reveals that top brands in India are estimated to lose up to 30 percent of their business to fake products. Besides the loss of revenue, the leading companies also bear the damage to brand image and brand loyalty of consumers. On a whole, the brands not only suffer in terms of revenue but also have to compromise on the brand image which in no case can be tolerable. Therefore, various brands have come up with unique strategies to overcome their shortcomings in the rural markets and curb the growth of fake brands in rural areas.Companies like Coca-Cola have set up an elaborate system to curb the menace of  duplicate manufacturers, offering incentives to informers. It has 48 consumer response coordinators across the countries who work  with their teams and redress consumer complaints directly, including overcharging and spurious bottling. Besides, it has a large network of  route salesmen who have a one-to-one relationship with the retailers on their beat and keep their ears to the ground. When they spot suspicious activity, they inform company officials.So though it is impossible to stop counterfeiters totally, it is possible to minimize the damage they cause. Upgrading the product packaging periodically or launch product variants so that the manufact urers of counterfeits find it difficult to copy their products. Hindustan Lever has initiated special tamper-proof packs for its deodorant spray ‘AXE’, whose nozzle can’t be detached from the body while Procter and Gamble uses special labels for its Vicks Vapo Rub which does not peel off even if soaked overnight in water. This makes it difficult for spurious goods makers to imitate.Stopping the counterfeits market is a long process but it’s more important for companies to create awareness among the consumers about the ill effects about such fake products and the hazards they pose. Geographic locations: Rural consumer behavior is also influenced by the geographic location of the consumers. For example, nearness to feeder towns and industrial projects influence the buying behavior of consumers in the respective clusters of villages. We are discussing this aspect in detail in the section on market segmentation in rural markets.To cite one more example of how geographic location affects buying behavior, we can point out the fact that the lack of electricity in many rural households acts as a barrier to the purchase of certain consumer durables. Exposure to urban lifestyles: Extent of exposure of rural consumers to urban lifestyles also influences their buying behavior. An increased exposure and interaction with urban communities has been the trend in recent years. The way the consumer uses the products: The situation in which the consumers utilize the product also influences their buying.The example of lack of electricity affecting buying behavior illustrates this point as well. Lack of electricity automatically increases the purchase of batteries by rural consumers. Similarly, since rural consumers cannot use washing powders/detergent powders that much, as they wash their clothes in streams or ponds, they go in more for washing bars and detergent cakes. Places of purchase: Buying behavior of rural consumer also varies depending on the p lace of purchase. Different segments of rural buyers buy their requirements from different places/outlets.Some buy from the village shopkeepers; some from village markets/fairs; others buy from the town that serves as the feeder to the rural area. It is also seen that the same buyer buys different requirements from different laces. For understanding the buying behavior of the rural consumer correctly, the marketer must ask the question: Where from do they buy the products and why? Involvement of others in the purchase: Involvement of others in the purchase in the purchase decision is yet another relevant factor in this regard. There has been a change here in recent years.In the past, the head of the family used to make the purchase decision all by himself. In contrast, the involvement of the other members of the family in the purchase decision has been growing in recent years. An increase in literacy coupled with greater access to information has resulted in this development. The ma rketer has to reckon the role of the influencers while sizing up the buying behavior of rural consumers. Almost 15 per cent of consumer goods sales in India is estimated to be of fake products. In value terms, around Rs 15,000 crore.At an 18 per cent tax rate, the loss to the exchequer is Rs 2,700 crore. Despite efforts to curb counterfeiting of FMCGs, it remains rampant, especially in rural areas, where consumer awareness is low and the ability to track shipments is poor. This has prompted FMCG players to devise ways to act on units that manufacture these products. Emami, for instance, has a separate cell headed by an ex-assistant commissioner of police, whose job is to investigate leads provided by the in-house sales force on places where counterfeit products of its popular brands are made.Once these are identified, the team and local authorities raid these factories. â€Å"On an average, we do at least two to three raids per month,† says Aditya Agarwal, director. Most comp anies are adopting this model of conducting raids with the help of the local authorities. â€Å"It works faster that way,† says C K Ranganathan, chairman & managing director, CavinKare. Godrej Consumer Products Ltd managing director, Dalip Sehgal, rues: â€Å"Counterfeiting has not only led to a lower offtake in products in particular towns but also has an effect on our top line and bottom line†.GCPL has been facing pass-offs of many of its various products, such as Powder Hair dye, deo spray and their toilet soap brand, Godrej No. 1. â€Å"The menace is spread across the country,† notes Sehgal. Dabur India recently conducted raids across units in West Bengal, Rajasthan and Ghaziabad involved in the production of Dabur lookalike products. The company had complained to local authorities and seized personal and healthcare products and medicines worth about Rs 2 crore. The company has mapped locations where these activities take place and is going after the spuriou s manufacturers systematically. Leads have been obtained on packaging and label suppliers as well, and Dabur India will spare no efforts to get them all behind bars,† said Dabur India Director P D Narang. The seized goods included 50,000 labels of Dabur Gulabari, over 30,000 labels of Dabur Keora water and both filled and empty bottles of different sizes of Dabur Lal Danth Manjan, Honitus and Active Antacid. Hindustan Unilever (HUL) has had reports of 118 spurious varieties of their products, Fair and Lovely and Clinic Plus, available in the market. HUL says it has a ‘three-pronged approach’ to address this.It includes, as a spokesperson, from the company puts it: â€Å"Creating awareness regarding the problem; engaging with enforcement agencies on implementation and government bodies for changes in laws; and actively taking market action through raids and seizures. † Tthe bigger the company, the larger is its spurious counterpart. To counter this, some com panies have changed the packaging and design of their products at frequent intervals to make it difficult for counterfeiters to duplicate these easily. But, this is expensive, which makes conducting raids the most common pratice of dealing with the menace.Companies also say most manufacturers of spurious products work in collusion with wholesalers and retailers who stock these, eventually pushing them to unsuspecting consumers, lured by the low price. The discount in price between the original and fake product is said to be 20-25 per cent. So, even as companies try getting manufacturers under their net, the distributor-retailer end is unaddressed. By some accounts, almost 10 per cent of the retail universe in the country is dealing in spurious products. DISTRIBUTION OF FAKE PRODUCTS CONSUMER MANUFACTURE WHOLESALER IN BIG CITY WHOLE SALER IN SMALL TOWN MOBILE TRADER VILLAGE RETAILERPETTY SHOP MODULE-II 2. 1. OBJECTIVES OF THE STUDY Primary Objective * To study the consumers perceptio n on fake brands in FMCG products. Secondary Objectives * To study the behavior of consumer towards fake products. * To study the awareness of fake brands. * To study the consumers opinion towards fake brands. * To study the pricing strategy of fake products in FMCG. * To study the distribution channels. 2. 2. NEED OF THE STUDY To study about the buying behavior for fake FMCG products in rural area, what type of fake brands are available in the rural market. To know about the awareness of fake product in rural customers.To know about the reason for not purchasing fake FMCG products. To study customers give importance to the price of the fake brands. To study the reason for preferring a particular brand. To study the alternative purchase plan if preferred brands not available. To know the mode of easy distribution of fake products. To know how the customers identify the fake brands. To know how the customer cheated with fake FMCG products. 2. 3. RESEARCH METHODOLOGY Research Design A research design is purely and simply the framework or plan for a study that guides the collection and analysis of data.The Survey Research was used in this project, because consumer’s feedback was necessary for obtaining the data. Hear descriptive type of research was followed. Descriptive research includes surveys and fact finding enquiries of different kind. The purpose is description of the state of affairs as it exists at the present. Data Sources There two types of data Primary and secondary. * The Primary data are those, which are collected a fresh and for the first time, and thus happen to be original in character. Primary Data was collected with the help of questionnaire. The secondary data, on the hand are those which have already been collected by someone else and which have already been passed through the statistical process. The methods of collecting Primary and secondary data differ since; Primary data are to be originally collected, while in case of secondary d ata the nature of data collection work is merely that of compilation. Secondary Data was obtained from journals, magazines, newspapers, book and the internet. Research Instrument For doing the survey research, Structured Questionnaire with both open-ended and closed-ended questions was used.Mode of Survey The mode of survey was questionnaire methods distributed directly to the people. Sample Size A sample size of 100 respondents is used for the study. Sample Technique Random sampling. Tools Used For Data Analysis The collected information has been processed both manually and with the help of computer. The statistical tool used in this study is simple percentage methods. Simple percentage analysis = Number of respondents/Total number of respondents? 100 Sample Area A sample area is rural areas in Theni district. 2. 4. LIMITATIONS OF THE STUDY The method of collecting Primary data has setup as questionnaire thus, the collection from the respondents made difficulty and response was not bad. * The place of research is rural areas in Theni district so collection of data can be done only randomly with the limited sample size of 100. * Many people are not able to understand the questionnaire because they are not well in English. * Some people were not aware of fake brands. * It takes too time to collect the questionnaire from the respondents. Some people not even know the meaning of â€Å"fake†. MODULE-III 3. 1. REVIEW OF LITERATUREKhan N. A. , Building Competitiveness in Small-Scale and Rural Industries in India; Icfai University Journal of Rural Management: â€Å"The significance of competitiveness in the rural marketing was neglected for a long time in India, but now it is being recognized†. Dr. N. Rajendhiran,  Rural Marketing – A Critical Review ; Icfai University Journal of Rural Management(2001) : † The success of a brand in the Indian rural market is as unpredictable as rain. It has always been difficult to gauge the rural market. Many brands, which should have been successful, have failed miserably.More often than not, people attribute rural market success to luck† Ramanathan V, Sudhamathi S, Brand Building Exercises Adopted by Life Insurance Companies in Indian Rural Markets; Icfai University Journal of Rural Management: â€Å"The very nature of economic activities of rural market extending the provision of quality access to financial solutions is vital for the development of people residing in rural areas†. Dr. Venkatesh Tamlurkar, Assessing the Marketing for Rural India indianmba. com/facultycolumn/articles(2008) : In many villages, one can see today the alternate use of the products other than for their actual purpose.People in the state of Bihar feed the cattle with Horlicks as a health drink to fatten them! Similarly, people in Punjab use washing machine not for washing clothes but to make frothy lassi in huge quantities! Animals are rubbed with Iodex on their skins to relieve them from m uscular pains after a day's hard work. Paints meant for houses are used on the horns of cattle for easy identification and theft prevention. The Economic Times (2003), â€Å"The rural market likes it strong† the strength of rural markets for Indian companies.Financial express, June 19, 2000 has published the strategy about FMCG majors, HLL, Marico Industries, Colgate Palmolive have formula had for rural markets. The Marketing Mastermind (2003), Hindustan Lever rural marketing Initiatives by â€Å"A Mukund† Marketing Mastermind has given the perspectives in which HLL has approached towards rural markets. MODULE-IV DATA ANAYSIS ANAINTERPRETATION ANALYSIS OF DATA The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exist among data groups.In the process of analysis, relationships or differences supporting or conflicting with original and new hypothesis should be subjected to statistical tests of significanc e to determine with what validity data can be said to indicate any conclusions. Analysis of data in general way involves number of closely related operations which are performed with the purpose of summarizing the collected data and organizing there in such a manner that they should answer the research questions. INTERPRETATION OF THE DATA The task of drawing inferences from the collected facts after an analytical and or experimental study.In fact, it is a search for broader meaning of research findings. The task of interpretation has two major aspects viz. * The effort to establish continuity in research through linking the results of a given study with those of another and * The establishment of some explanatory concept. In one sense interpretation is concerned with relationship with in the collected data, partially overlapping analysis. Interpretation also extends beyond the data study to include the results of other research, theory and hypothesis. TABLE-1 AGE OF THE RESPONDENTS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| 15-20| 17| 17%| 2| 21-25| 28| 28%| 3| 26-30| 20| 20%| 4| Above 30| 35| 35%| | TOTAL| 100| 100%| Source: Primary data The above table explains 35% of the respondents belongs to the category of 30Years and above age, 28% of the respondents are under the category of 21 to 25years of age, 20% are under the age group of 26 years to 30years of age. It is found that majority 35% of the respondents belong to the category of 30Years of age EXHIBIT-I AGE OF THE RESPONDENTS TABLE-2 GENDER OF THE RESPONDENTS S.NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Male| 56| 56%| 2| Female| 44| 44%| | TOTAL| 100| 100%| Source: Primary data The above table explains 56% of the respondents belongs to the category of male, 44% of the respondents are belongs to the category of female. It is found that majority 56% of the respondents belong to the category of male. . EXHIBIT-2 GENDER OF THE RESPONDENTS TABLE-3 EDUCATIONAL QUALIFICATION OF RESPONDENTS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Below 8th | 10| 10%| 2| 9th-12th| 28| 28%| 3| UG| 45| 45%| 4| PG| 17| 17%| | TOTAL| 100| 100%|Source: Primary data The above table explains 45% of the respondents belongs to the category of UG, 28% of the respondents are belongs to the category of 9th-12th, 17% are belongs to the category of PG as qualification. It is found that majority 45% of the respondents belong to the category of UG as qualification. EXHIBIT-3 EDUCATIONAL QUALIFICATION OF RESPONDENTS TABLE-4 OCCUPATION OF THE RESPONDENTS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Business| 25| 25%| 2| Employed| 33| 33%| 3| Professional| 26| 26%| 4| Housewife| 16| 16%| | TOTAL| 100| 100%| Source: Primary dataThe above table explains 33% of the respondents belongs to the category of employed, 26% of the respondents are belongs the category of professional, 25% are belongs to the category of business, 16% are belongs to the category of housewife. It is found that majority 33% of the respondents belong to the category of employed. EXHIBIT-4 OCCUPATION OF THE RESPONDENTS TABLE-5 NUMBERS OF MEMBERS IN FAMILY OF THE RESPONDENTS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| 2 members| 1| 1%| 2| 3 members| 21| 21%| 3| 4 members| 39| 39%| 4| Above 4| 39| 39%| | TOTAL| 100| 100%| Source: Primary dataThe above table explains 39% of the respondents belongs to the category of 4 members and above members in the family, 21% of the respondents are belongs the category of 3 members in the family, 1% are belongs to the category of 2 members in the family. It is found that majority 39% of the respondents belong to the category of 4 members and above members in the family EXHIBIT-5 NUMBERS OF MEMBERS IN FAMILY OF THE RESPONDENTS TABLE-6 MONTHLY INCOME S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Below 3000| 16| 16%| 2| 3000-5000| 21| 21%| 3| 5000-10000| 30| 30%| 4| Above 10000| 33| 33%| TOTAL| 100| 100%| Source: Primary data The above table explains 33% of the re spondents belongs to the category of above 10000 as income of the family, 30% of the respondents are belongs to the category of 5000-10000, 21% are belongs to the category of 3000-5000, 16% of the respondents are belongs to the category of below 3000 as income of the family. It is found that majority 45% of the respondents belong to the category of above 10000 as income of the family. EXHIBIT-6 MONTHLY INCOME TABLE-7 TYPE OF THE FAMILY OF THE RESPONDENTS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| | Joint | 58| 58%| 2| Nuclear | 42| 42%| | TOTAL| 100| 100%| Source: Primary data The above table explains 58% of the respondents belongs to the category of joint type of the family, 42% of the respondents are belongs to the category of nuclear type of family. It is found that majority 58% of the respondents belong to the category of joint type of the family EXHIBIT-7 TYPE OF THE FAMILY OF THE RESPONDENTS TABLE-8 FAKE PRODUCTS AVAILABLE IN THE MARKET S. NO| CAYEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Chocolate| 18| 18%| 2| Cosmetics| 40| 40%| 3| Detergents| 22| 22%| 4| Others| 20| 20%| TOTAL| 100| 100%| Source: Primary data The above table explains 40% of the respondents belongs to the category of cosmetics, 22% of the respondents are belongs to the category of detergents, 20% are belongs to the category of others, 18% of the respondents are belongs to the category of chocolate. It is found that majority 40% of the respondents belong to the category of cosmetics. EXHIBIT-8 FAKE PRODUCTS AVAILABLE IN THE MARKET TABLE-9 TOP BRANDED FMCG PRODUCTS IN THE AREA S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Yes | 83| 83%| 2| No | 17| 17%| | TOTAL| 100| 100%| Source: Primary dataThe above table explains 83% of the respondents are telling top branded FMCG products are available in the market, 17% of the respondents are not telling top branded FMCG products are available in the market. It is found that majority 83% of the respondents are telling top branded FMCG produ cts are available in the market. EXHIBIT-9 TOP BRANDED FMCG PRODUCTS IN THE AREA TABLE-10 USAGE OF FAKE BRANDS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Yes | 39| 39%| 2| No | 61| 61%| | TOTAL| 100| 100%| Source: Primary data The above table explains 61% of the respondents are not using fake brands , 39% of the respondents are using fake brands.It is found that majority 61% of the respondents are using fake brands. EXHIBIT-10 USAGE OF FAKE BRANDS TABLE-11 AVAILABILITY OF FAKE PRODUCTS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Retail outlet| 26| 26%| 2| Petty shop| 65| 65%| 3| Departmental store| 9| 9%| 4| Super market| 0| 0| | TOTAL| 100| 100%| Source: Primary data The above table explains 65% of the respondents belongs to the category of petty shop, 26% of the respondents are belongs to the category of retail outlet, 9% are belongs to the category of departmental store, 0% of the respondents are not buy any products in super market.It is found that majority 65% of the respondents belong to the category of petty shop. EXHIBIT-11 AVAILABILITY OF FAKE PRODUCTS TABLE-12 CUSTOMER INFLUENCE TO CHOOSE THE FAKE BRANDS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Quality | 33| 33%| 2| Price| 35| 35%| 3| Packing| 24| 24%| 4| Quantity| 8| 8%| | TOTAL| 100| 100%| Source: Primary data The above table explains 35% of the respondents belongs to the category of price, 33% of the respondents are belongs to the category of quality, 24% are belongs to the category of packing, 8% of the respondents are belongs to the category of quantity.It is found that majority 35% of the respondents belong to the category of price. EXHIBIT-12 CUSTOMER INFLUENCE TO CHOOSE THE FAKE BRANDS TABLE-13 CUSTOMER IDENTIFY FAKE BRANDS WITH OTHER PRODUCTS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Name| 27| 27%| 2| Symbol| 33| 33%| 3| Slogan| 31| 31%| 4| Trademark| 9| 9%| | TOTAL| 100| 100%| Source: Primary data The above table explains 33% of the respondents belongs to t he category of symbol, 31% of the respondents are belongs to the category of slogan, 27% are belongs to the category of name, 9% of the respondents are belongs to the category of trademark.It is found that majority 33% of the respondents belong to the category of symbol. EXHIBIT-13 CUSTOMER IDENTIFY FAKE BRANDS WITH OTHER PRODUCTS TABLE-14(i) CUSTOMERS IMPORTANCE TOWARDS THE PRICE OF THE PRODUCT S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Yes| 69| 69%| 2| No| 31| 31%| | TOTAL| 100| 100%| Source: Primary data The above table explains 69% of the respondents are giving importance to price of the product, 31% of the respondents are not giving importance to price of the product. It is found that majority 69% of the respondents are giving importance to price of the product. EXHIBIT-14(i)CUSTOMERS IMPORTANCE TOWARDS THE PRICE OF THE PRODUCT PRODUCT TABLE-14(ii) CUSTOMER CONCENTRATION TOWARDS THE SUBFACTORS OF PRICE S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Discount| 46| 66. 67%%| 2| Less price| 23| 33. 33%| | TOTAL| 69| 100%| Source: Primary data The above table explains 66. 67% of the respondents are concentrate in price, 33. 33% of the respondents are not concentrate in price. It is found that majority 66. 67% of the respondents are concentrate in price. EXHIBIT-14(ii) CUSTOMER CONCENTRATION TOWARDS THE SUBFACTORS OF PRICE TABLE-15 BRAND INFLUENCE IN BUYING BEHAVIOUR S.NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Yes| 64| 64%| 2| No| 36| 36%| | TOTAL| 100| 100%| Source: Primary data The above table explains 64% of the respondents are influence to the packing on buying behavior, 36% of the respondents are not influence to the packing on buying behaviour. It is found that majority 64% of the respondents are influence to the packing on buying behaviour. EXHIBIT-15 BRAND INFLUENCE IN BUYING BEHAVIOUR TABLE-16 CUSTOMERS OVERALL VIEW ON FAKE BRANDS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Useful| 19| 19%| 2| Very useful| 21| 21%| 3| Necessary | 34| 34%| | Not useful| 26| 26%| | TOTAL| 100| 100%| Source: Primary data The above table explains 34% of the respondents belongs to the category of necessary, 26% of the respondents are belongs to the category of not useful, 21% are belongs to the category of very useful, 19% of the respondents are belongs to the category of useful. It is found that majority 34% of the respondents belong to the category of necessary. EXHIBIT-16 CUSTOMERS OVERALL VIEW ON FAKE BRANDS TABLE-17 CUSTOMERS STATISFACTION ON FAKE BRANDS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Excellent| 14| 14%| 2| Good| 10| 10%| | Average| 26| 26%| 4| Below average| 50| 50%| | TOTAL| 100| 100%| Source: Primary data The above table explains 50% of the respondents belongs to the category of below average, 26% of the respondents are belongs to the category of average, 14% are belongs to the category of excellent, 10% of the respondents are belongs to the category of good. It is found that majority 50% of the resp ondents belong to the category of below average. EXHIBIT-17 CUSTOMERS STATISFACTION ON FAKE BRANDS TABLE-18 MONEY SAVING S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Yes| 37| 37%| 2| No| 63| 63%| TOTAL| 100| 100%| Source: Primary data The above table explains 63% of the respondents are not saving large sum of money, 37% of the respondents are saving large sum of money. It is found that majority 63% of the respondents are not saving large sum of money. EXHIBIT-18 MONEY SAVING TABLE-19 HEALTHYNESS OF FAKE PRODUCT USAGE S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Yes| 17| 17%| 2| No| 83| 83%| | TOTAL| 100| 100%| Source: Primary data The above table explains 83% of the respondents are telling fake products are not healthy, 17% of the respondents are telling fake products are not healthy.It is found that majority 83% of the respondents are telling fake products are not healthy. EXHIBIT-19 HEALTHYNESS OF FAKE PRODUCT USAGE TABLE-20(i) OFFERS WITH FAKE PRODUCTS S. NO| CATEGORY | NO OF RESPONDENTS| PERCENTAGE| 1| Yes| 23| 23%| 2| No| 77| 77%| | TOTAL| 100| 100%| Source: Primary data The above table explains 77% of the respondents are not getting offers for the fake products, 23% of the respondents are getting offers for the fake products. It is found that majority 77% of the respondents are not getting offers for the fake products. EXHIBIT-20(i)OFFERS WITH FAKE PRODUCTS TABLE-20(ii) OFFERS GIVEN FOR THE FAKE PRODUCTS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Discount| 12| 52. 13%| 2| Gift| 3| 13. 09%| 3| Others| 8| 34. 78%| | TOTAL| 23| 100%| Source: Primary data The above table explains 52. 13% of the respondents belongs to the category of discount, 34. 78% of the respondents are belongs to the category of others, 13. 09% are belongs to the category of gift. It is found that majority 52. 13% of the respondents belong to the category of discount. EXHIBIT-20(ii) OFFERS GIVEN FOR THE FAKE PRODUCTS TABLE-21(i)CUSTOMERS CHEATED WITH FAKE PRODUCTS S. N O| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Yes| 50| 50%| 2| No| 50| 50%| | TOTAL| 100| 100%| Source: Primary data The above table explains 50% of the respondents are both cheated and not cheated with fake products. It is found that majority 50% of the respondents are both cheated and not cheated with fake products. . EXHIBIT-21(i) CUSTOMERS CHEATED WITH FAKE PRODUCTS TABLE-21(ii) HOW CUSTOMERS CHEATED WITH FAKE BRANDS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Name| 19| 38%| 2| Symbol| 12| 24%| 3| Quality| 12| 24%| 4| Price| 7| 14%| TOTAL| 50| 100%| Source: Primary data The above table explains 38% of the respondents belongs to the category of name, 24% of the respondents are belongs to the category of symbol and quality, 14% are belongs to the category of price. It is found that majority 38% of the respondents belong to the category of name. EXHIBIT-21(ii) HOW CUSTOMERS CHEATED WITH FAKE BRANDS TABLE-22 QUALITY CONSCIOUS OF PRODUCT S. NO| CATEGORY| NO OF RESPONDENTS| PE RCENTAGE| 1| Poor| 7| 7%| 2| Fair| 30| 30%| 3| Good| 49| 49%| 4| Excellent| 17| 17%| | TOTAL| 100| 100%| Source: Primary dataThe above table explains 49% of the respondents belongs to the category of good, 30% of the respondents are belongs to the category of fair, 17% are belongs to the category of excellent, 7% of the respondents are belongs to the category of poor. It is found that majority 49% of the respondents belong to the category of good. EXHIBIT-22 QUALITY CONSCIOUS OF PRODUCT TABLE-23 REASONS FOR NOT PURCHASE FAKE FMCG PRODUCTS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Not necessary| 42| 42%| 2| High price| 22| 22%| 3| Low quality| 27| 27%| 4| Not familiar| 9| 9%| | TOTAL| 100| 100%|Source: Primary data The above table explains 42% of the respondents belongs to the category of not necessary, 27% of the respondents are belongs to the category of low quality, 22% are belongs to the category of high price, 9% of the respondents are belongs to the category of not fam iliar. It is found that majority 42% of the respondents belong to the category of not necessary. EXHIBIT-23 REASONS FOR NOT PURCHASE FAKE FMCG PRODUCTS TABLE-24 ALTERNATIVE FOR PREFERED BRAND S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Go to other shop| 30| 30%| 2| Postpone the purchase| 16| 16%| | Will buy other brand| 30| 30%| 4| Place order to get required brand| 11| 11%| 5| Any other| 13| 13%| | TOTAL| 100| 100%| Source: Primary data The above table explains 30% of the respondents belongs to the category of both go to other shop and will buy other brand, 16% of the respondents are belongs to the category of postpone the purchase, 13% are belongs to the category of any other, 11% of the respondents are belongs to the category of place order to get required brand. It is found that majority 30% of the respondents belong to the category of both go to other shop and will buy other brand.EXHIBIT-24 ALTERNATIVE FOR PREFERED BRAND TABLE-25 CUSTOMERS STATISFACTION WITH PRESENT DIS TRIBUTION SYSTEM S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Yes| 62| 62%| 2| No| 38| 38%| | TOTAL| 100| 100%| Source: Primary data The above table explains 62% of the respondents are satisfied with present distribution system, 38% of the respondents are not satisfied with present distribution system. It is found that majority 62% of the respondents are satisfied with present distribution system. EXHIBIT-25 CUSTOMERS STATISFACTION WITH PRESENT DISTRIBUTION SYSTEM TABLE-26MODE OF SELLING OF FAKE PRODUCTS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Van| 14| 14%| 2| Cycle| 34| 34%| 3| Door-door step| 23| 23%| 4| Other| 29| 29%| | TOTAL| 100| 100%| Source: Primary data The above table explains 34% of the respondents belongs to the category of cycle, 29% of the respondents are belongs to the category of other, 23% are belongs to the category of door-door step, 14% of the respondents are belongs to the category of van. It is found that majority 34% of the respondents belong to the category of cycle. EXHIBIT-26 MODE OF SELLING OF FAKE PRODUCTSTABLE-27 VOICE OF RETAILERS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Yes| 53| 53%| 2| No| 47| 47%| | TOTAL| 100| 100%| Source: Primary data The above table explains 53% of the respondents are obey the voice of the retailer, 47% of the respondents are not obey the voice of the retailer. It is found that majority 53% of the respondents are obey the voice of the retailer. EXHIBIT-27 VOICE OF RETAILERS TABLE-28 STEPS TO AVOID FAKE PRODUCTS S. NO| CATEGORY| NO OF RESPONDENTS| PERCENTAGE| 1| Yes| 58| 58%| 2| No| 42| 42%| | TOTAL| 100| 100%| Source: Primary dataThe above table explains 58% of the respondents are take steps to avoid using fake products, 42% of the respondents are not take steps to avoid using fake products. It is found that majority 58% of the respondents are take steps to avoid using fake products. EXHIBIT-28 STEPS TO AVOID FAKE PRODUCTS MODULE-V SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION 5 . 1. Findings of the study * The majority of 35% of the respondents are in the age group of above 30. * The majority of 56% of the respondents are male. * The majority of 45% of the respondents are qualified as UG. The majority of 33% of the respondents are employed. * The majority of 39% of the respondents are with family of above 4members. * The majority of 33% of the respondents are earning above Rs10000 per month. * The majority of 58% of the respondents are joint family. * The majority of 40% of the respondents are expecting fake cosmetic products available in market. * The majority of 83% of the respondents are expecting top branded FMCG products available in the area. * The majority of 61% of the respondents are not using fake brands. The majority of 65% of the respondents are purchasing fake products in petty shop. * The majority of 35% of the respondents are influencing price to choose the fake brand. * The majority of 33% of the respondents are identifying symbol with othe r products. * The majority of 67% of the respondents are give importance to price of the product. * The majority of 64% of the respondents are influencing packing of the brand in buying behavior. * The majority of 34% of the respondents are telling necessary to use fake brands. * The majority of 50% of the respondents are good to satisfied on fake brands. The majority of 63% of the respondents are feels fake brands saves large sum of money. * The majority of 83% of the respondents are expecting fake products are not healthy. * The majority of 52. 13% of the respondents are getting discount for the fake brands. * The majority of 50% of the respondents are cheated with fake products. * The majority of 38% of the respondents are cheated by name of the product. * The majority of 42% of the respondents are expected not necessary to purchase fake FMCG products. * The majority of 30% of the respondents gives equal preference to go to other shop and will buy other brand. The majority of 62% of the respondents are satisfied with present distribution system. * The majority of 34% of the respondents are expecting fake products are sold by the manufacture through cycle. * The majority of 53% of the respondents are obeying the voice of the retailer. * The majority of 58% of the respondents are take steps to avoid fake products. 5. 2. Suggestions To The Study . * It is necessary to the consumer forum to create awareness among rural customers among fake brands. * Branded products should advertise their brand image and slogan to avoid the fake products. Some best brands are not available all times in all areas, so we can’t avoid to buy the fake products 5. 3. Conclusion A product is the heart of marketing. A rural marketer has to be sensitive to the needs of rural consumers and must design products that achieve the best fit with rural conditions. To succeed in rural markets, it is important for companies to make products that cater to all facets of rural needs, from pr oduct design to branding, from packaging to after-sales service. Based on the types of products currently seen and the likely aspirations of rural consumers, products may proliferate in many directions.It is likely that relatively well-to-do rural consumers will graduate to more sophisticated products as they start expecting more than just the core benefits of the product. The shift of rural consumers from product generalization (one clearing soap for all purposes) to product specialization (toilet soap for bathing, shampoo for washing hair, detergent for washing clothes) promises better growth for urban-centric products presently used in rural areas. Increased literacy and awareness levels are bound to lead to an influx of new product categories like educational and lifestyle products.The first mover in new product categories in the rural market will benefit and is more likely to succeed by achieving brand stickiness, making it difficult for late entrants. BIBLIOGRAPHY BOOKS * Prad eep kashyap and Siddhartha raut, ‘The rural marketing book’. * Gupta, V. K. , ‘An Approach to Rural Marketing’, Indian journal of marketing. * Dr. Francis Cherunilam, â€Å"Corporate Scene – The Menace of Fake Products† Organisational Management * Lee Hoe, Gillian Hogg, Susan Hart, (2003), Fakin’ It: Counterfeiting and Consumer Contradiction, European Advances in Consumer Research, 6: 60-67. Alain d’Astous, Ezzedine Gargouri, (2001), Consumer evaluations of brand imitation, European Journal of Marketing, 35(1/2): 153 – 167. * Gardner, David M. (1975), Deception in Advertising: A Conceptual Approach, Journal of Marketing Z% Qan. ), 40-46. * Jacoby, Jacob;Olson, Jerry C. ;Haddock, Rafael A. , (1971), Price, brand name, and product composition characteristics as determinants of perceived quality. Journal of Applied Psychology, 55(6): 570-579 * Robert C. Bird, (2007-2008), Counterfeit Drugs: A Global Consumer Perspective, Wake Forest Intell. Prop. L. J. , 387. Arghavan Nia, Judith Lynne Zaichkowsky, (2000) Do counterfeits devalue the ownership of luxury brands? , Journal of Product ; Brand Management, 9(7): 485 – 497 * Miaoulis, George and Nancy D'Amato (1978), â€Å"Consumer Confusion and Trademark Infringement,† journal of Marketing, 48-55. * Irena Vida, (2007), Determinants of Consumer Willingness to Purchase Non-Deceptive Counterfeit Products, Managing Global Transitions 5 (3): 253–270. * Harvey, M. G. , and A. Ronkainen. 1985. International counterfeiters: Marketing success without the cost or the risk. Columbia Journal of World Business 20 (3): 37–46. Shih Jung Wang, Lily Shui-Lien Chen, (2011), Consumers’ attitudes towards different product * category of private labels. African Journal of Business Management, 5(17): 7616-7621. * Kambiz Heidarzadeh Hanzaee, Sara Ghafelehbashi, (2012), The Role of Product Involvement, Knowledge, and Perceptions in Consumer Purchase Behavior of Counterfeits: Perspective Islamic Country. J. Basic. Appl. Sci. Res. , 2(1): 418-425. * Roberta Hupman, Judith Lynne Zaichkowsky, (1995), Brand imitation and the consumer: an ethical perspective, European Advances in Consumer Research, 2: 418-424. Elfriede Penz, Barbara Stottinger, (2005), Forget the â€Å"Real† Thing–Take the Copy! An Explanatory Model for the Volitional Purchase of Counterfeit Products. Advances in Consumer Research, 32: 568-575. WEBSITES: * www. google. com * www. wikipedia. com * www. businessmanthra. com ANNEXURE QUESTIONNAIRE A STUDY ON CUSTOMER PERCEPTION OF FAKE BRANDS IN FMCG WITH SPECIAL REFERENCE TO RURAL AREAS IN THENI DISTRICT 1) Name: _________________________________ 2) Age: a)15-20yrs b)21-25yrs c)26-30yrs d)above 30yrs 3) Gender: a)male b)female 4) Education )below 8th b)9th-12th c)UG d)PG 5) Nature of occupation a)business b)employed c)professional d)housewife 6)Number of members in the family a)2 b)3 c)4 d)above 4 7) Mon thly income a)below ? 3000 b) ? 3000-? 5000 c) ? 5000-? 10000 d)above ? 10000 8) Type of family a)joint b)nuclear 9) what are the fake products available in the market? a)chocolate b)cosmetics c)detergents d)others 10) Did you expect top branded FMCG products are available in this area? )yes b)no 11) Are you a user of fake brands? a)yes b)no 12) In which place do you purchase fake products? a)retail outlet b)petty shop c)departmental store d)super market 13) What influence you to choose the fake brand? a)quality b)price c)packing d)quantity 14) How do you identify fake brand with other? a)name b)symbol c)slogan d)trademark 15)i) Do you give importance to the price of the product? a)yes b)no ii) If yes? You concentrate in )discount b)less price 16) Does the packing of the brands influence in buying behavior? a)yes b)no 17) What is the overall view on fake brands? a)useful b)very useful c)necessary d)not useful 18) Give the degree of satisfaction about fake brands? a)excellent b)good c)average d)below average 19) Do you feel fake brands saves large sum of money? a)yes b)no 20) Would you think fake products are healthy? a)yes b)no 21) Would you get any offer for fake brands? a)yes b)no i) If yes what are they? a)discount b)gift c)others 22) Are you cheated with fake products? a)yes b)no ii) If yes how? a)name b)symbol c)quality d)price 23) How do you rate the quality of the product & your preferred brands? a)poor b)fair c)good d)excellent 24) What are the reasons for not purchase fake FMCG products? a)not necessary b)high price c)low quality d)not familiar 25) What are the alternative purchase plans, if preferred brand is not available? )go to other shop b)postpone the purchase c)will buy other brand d)place order to get required brand e)any other 26) Are you satisfied with present distribution system? a)yes b)no 27) Manufacture sell the fake products through a)van b)cycle c)door – door step d)other 28) Did you obey the voice of the retailer of buying FMCG products? a)yes b)no 29) Do you take any steps to avoid using fake brands? a)yes b)no 30) Your valuable suggestion if any ————————————————- ————————————————-