A Critical Review of Marketing as a Major Function with Specific Reference to FMCG

Abstract

The Fast Moving Consumer Goods (FMCG) sector is a foundation stone of the growing Indian economy. This sector strikes every facet of human life. The FMCG producers now realize that there is a lot of prospect for them to enter into the rural market.  The rising incomes and growing lifestyle is a significant attraction for this sector. There are more than middle income households in the rural areas as compare to the urban. Thus the rural marketing has been growing progressively over the years and is now bigger than the urban market. Globally, the FMCG sector has been successful in selling products to the lower and middle income groups in India. More than 70% of sales are made to middle class households today and over 50% of the middle class residing in rural India. The FMCG sector is energized about a rapidly increasing rural population whose incomes are intensifying and which is willing to spend on goods designed to improve their lifestyles. Also with a near saturation and cut throat competition in urban India, many manufacturers and marketers of this sector are driven to formulate new strategies for targeting the rural consumers. But the rural penetration rates are low. This presents a tremendous opportunity for manufacturers of branded products who can convert prospective consumers into consumers to buy their products. Companies including Multi National Companies and regional players started developing marketing strategies to attract this untouched market. While formulating the strategies, the marketers need to take care of the rural consumers differently from urban consumers because they are economically, socially and psycho-graphically different from each other.