1. RURAL MARKETING PROJECT-2
A
RESEARCH REPORT
ON
“STUDY OF SMALL TOWN, GURDASPUR”
SUBMITTED TO: SUBMITTED BY:
Prof. S.SURESH Harshal Dhotra(11609147)
Parth Bhasin (11609035)
Rishabh Dogra (11609171)
Nishant kaushik(11609034)
Shubhi Kumari (11609054)
Soumya (11609056)
Rahul Chandna(11609105)
Tarun Thakur (11609059)
Rohit Sharma (11609173)

2. Part -A
SMALL TOWN-“GURDASPUR”
Gurdaspur is a city in the state of Punjab, situated in the northwest part of the Republic of
India. It is located in the center of and is the administrative head of Gurdaspur District. The
Gurdaspur city, situated on the Amritsar – Jammu National Highway Road, 36 km from
Pathankot and 32 km from Batala is the district headquarter. All head offices of various
departments are situated in this city. The India-Pakistan border is at a distance of 10 km from
Gurdaspur. The river Beas flows on one side and the river Raavi flows on the other side of
Gurdaspur.
Area
Total area of the district is 2610 Sq.Km. It Consist of 3 Tehsils, 8 Sub-tehsils &11 blocks

3. Tehsil
Sr.No. Subdivision Inhabited Uninhabited Area Population Density
/Tehsil Villages Villages (Sq Per Sq Km
.Kms)
1. Gurdaspur 679 37 1369 744092 544
3. Batala 347 5 936 618105 660
3. Dera Baba 131 6 305 115660 379
Nanak
Total 1157 48 2610 2299026 566
Sub Tehsils (Total: 8)
Sr. No. Sub Tehsil Name
1. Kahnuwan
2. Kalanaur
3. Sri Hargobindpur
4. Qadian
5 Dinanagar
6. Fatehgarh Churian
7. Dhariwal
8. Naushera Majha Singh

4. C.D.Blocks (Total: 11)
Sr. No. Block Name
1. Gurdaspur
2. Kalanaur
3. Dhariwal
4. Kahnuwan
5. Dinanagar
6. Batala
7. Fatehgarh Churian
8. Dera Baba Nanak
9. Sri Hargobindpur
10. Qadian
11. Dorangla
Location
The Gurdaspur district is the northern most district of Punjab state. It falls in the Jalandhar
division and is sandwiched between river Ravi and Beas. The district lies between north-
latitude 310-36' and 320-34' and east longitude 740-56' and 750-24' and shares common
boundaries with Pathankot district in the north, Beas River in the north-east, Hoshiarpur
district in the south-east, Kapurthala district in the south, Amritsar district in the south west
and Pakistan in the north west.
Demographics
Population Statistics
Sex Total Population Urban Rural Literacy No of Literate persons
Male 1212995 502508 1796517 1041962 (85.90%)
Female 1086031 228066 857964 822125 (75.70%)
Total 2299026 320316 1157541 1864510 (81.10%)

5. Female Per Thousand Males: 904
S.C Population: 335078 (22.67 % of Distt.)
a. Rural 141523
b. Urban 203161
Panchayats: 1260
According to the 2011 India census, Gurdaspur had population of 2,299,026 of which males
and females were 1,212,995 and 1,086,031 respectively. There was an increase of 9.30
percent in the population compared to the population in 2001. In the previous census of India
2001, Gurdaspur District recorded increase of 19.74 percent as compared to its population in
1991.
The average literacy rate of Gurdaspur in 2011 was 81.10 per cent, as compared to 73.80 per
cent in 2001. The male and female literacy rates were 85.90 and 75.70 respectively. For 2001
census, same figures stood at 79.80 and 67.10 in Gurdaspur District. The total literate
population in Gurdaspur District was 1,668,339 of which males and females were 928,264 and
740,075 respectively.
Transport
Rail
Gurdaspur's railway station in connected with nearest station pathankot and Amritsar.From
gurdaspur there are many trains from pathankot to amritsar and two mail trains jammu
tawi(jammu to tata nagar)and pathankot-Delhi express. There is a daily train from Dera Baba
Nanak to Amritsar
Road
Gurdaspur is well connected with road network: National Highway 15 (NH 15) is a major
National Highway in Western and Northwestern India. NH 15 connects Kandla in Gujarat with
Gurdaspur in Punjab. This 1,526 km (948 mi)-long highway passes through Gurdaspur,
Amritsar, Tarn Taran Sahib, Zira, Kotkapura, Bhatinda, Ganganagar, Bikaner, Jaisalmer and
Barmer. At Bikaner the National Highway 11 terminates on this Highway. Of its total length of
1,526 km (948 mi), the National Highway 15 traverses 350 km (220 mi) in Punjab, 906 km (563
mi) in Rajasthan, and 270 km (170 mi) in Gujarat. Also connected Gurdaspur to Jammu
through bmial, kathua, and also connected with NH 1A through Gurdaspur, Mukerian and
Gurdaspur Shri Hargobind State Highways.

6. Education
General Education
Type of Institution No.
Arts & Science Colleges 16
High/Hr./Sr. Secondary Schools 221
Middle School 250
Primary Schools 1137
Professional Colleges
Profession College Type No.
Engineering College 1
Polytechnic 1
Hotel Management 1
I.T.Is 7
B.Ed. college 7
E.T.T. 1
Brand awareness and preferences
A decade back to come across a branded apparel outlet in Tier II and III cities and towns was
quite a novelty, but now established beauty salons, restaurants etc have also become a
common sight
Franchising has brought about a revolution in the Indian market scenario. Till the recent past
organized brands used to have their presence only in the metros and big cities. However, as
result of changing scenario, mostly all established, retail as well as service brands are now
foraying into smaller cities and towns. This is a calculated step taken by retailers and
franchisors after seeing the tremendous potential in such markets.
Small towns attracting big service brands
Till a few years back the thought of opening an outlet in any tier III city would have led to the
nightmares to the big organized retailers. Today with the changing lifestyle of people living in
smaller cities and towns as a result of television and internet, it is quite common to see people
wearing branded apparel, footwear and including branded products in their daily routine.
Following the success of product franchising brands, service brands have also ventured into
such locations. As informed by Shahnaz Husain, Founder and Chairperson, Shahnaz Husain
Group: “Thanks to television and commercial advertising, the awareness of global trends,
consumer products and brands has extended to smaller towns. In certain categories like

7. beauty even people in smaller towns are quite brand conscious. Therefore, big brands want to
venture into smaller towns.”
Factors for this growing trend
Some of the factors attributing to this development are:
Rising living standards: The increased disposable income, brand consciousness, and love for
better living standards has led to large number of people preferring to visit branded beauty
salons or restaurants.
Recognizing brand value: People living in small towns have now acknowledged the value for
brand and can easily distinguish it from local brand. Earlier it was considered wastage of
money to visit an expensive salon but now they are ready to experience best services at
best price.
Increased awareness
Youth from smaller towns these days go to metros for higher education. They visit big eating
places and salons but the unavailability of such brands in their home towns creates little
disappointment for them. Recognizing this discomfort, franchisors ventured into small towns.
Successful service categories
All retail as well as service brands may not achieve equal success. Small towns and cities have
people who generally prefer buying reasonably priced articles. Therefore outlets of luxury
brands do not generally work. Mostly it is the f&b and beauty industry which has made a mark
in small areas.
Food and beverages: F&B brands have found success in the smaller towns. Increasing number
of middle class patrons in smaller towns also prefer to spend a few extra pennies on hygienic
and standard restaurants, rather than going to the local eating places. Mc Donald has stated
spreading out to smaller cities with the aim to tap the local potential. There is ample dine-in
space made available to customers to sit and enjoy the meals.
Beauty salons
Another category that is doing well in smaller cities and towns are the beauty salons. With
men and women, even of Tier II and III cities getting more conscious of their looks, the beauty
brands have made inroads in such locations. As informed by Husain: “We have franchise
salons in smaller towns and cities, like Faizabad, Fairdabad, Saharanpur, Durgapur, Dehradun,
Jammu, Nasik, Asansol and many many more.”
Pre-school chains
Having successfully, expanded in metros and big cities pre-school chains are exploring
prospects in small cities and towns. Recognizing the necessity of good education for all
irrespective of earning power of the parents’ lot of education franchisors are looking for
franchisees in small cities and towns.
Pathology labs
As it is very difficult for people living in small towns and cities to visit big cities and metros to
get their diseases diagnosed accurately franchisors dealing in Pathology services are offering
franchisees in Pathology lab services. Dr Lal Pathlabs have ventured into smaller towns to deal
with this growing need.

8. Future prospects
The future holds bright for small areas. Both national and international brands are paving way
towards these potential market places. As said by Husain: “Our future plans do include
expansion in smaller cities. Moreover, we are always open to the extension of our franchise
salons and franchise beauty training academies. Girls from smaller towns and cities come to
study at our beauty academy, with the aim of opening franchise salons.”
To conclude it can be said that service franchising is on the rise not only in metros but also in
small cities. Youth from smaller cities with an entrepreneurial zeal can surely reap long time
benefits by taking a franchise of any established brand.
Consumer behavior in small town
Small town India (towns of 10 lakh and below) contributes to 38 percent of the Indian FMCG
market today; their growth contribution is even larger. The demand pull is strongest in the
smallest of the Indian towns where people want to shop in style like in the metros. Out of 83
FMCG products, the middle India towns (population of 1-10 lakh) saw a 10 percent growth in
same-store sales in 42 products against smaller towns (less than one lakh population) clocking
same growth in 53 products. A quick look at the report and it becomes very evident that the
taste of smaller towns in FMCG products is going through a strategic change, showing
sophistication in their living style. Smaller towns which largely consume unpacked food
products and home-made pickles saw an increase in demand for packaged rice, jams, jelly and
marmalades. Products with which we do not associate smaller towns, like hair conditioners,
after shave lotions, etc. also saw a growth in sales. The reason smaller towns are spending
more on high-end products is due to the increase in durable income of the Indian middle class.
The other factor driving the demand is the increase in shopping malls and one-stop shops in
smaller towns. Malls definitely make the shopping experience better and luxurious, luring
shoppers to purchase more and more products.

9. PART B
Number and characteristics of village closely linked to the town the villages that we had
surveyed which were close to the Gurdaspur town were Babowal, Paniar,Malikpur,Tibri.
Village areas:
Agriculture& private service such as Small kiryana stores are the primary occupation at
respective villages Babowal, Paniar,Malikpur,Tibri and head of the family is the key decision
maker. Brand awareness is quite low in all the areas.
City area
Occupation is mostly own business and government jobs. People are brand conscious.
Individual as well as head of the family both act as decision makers in day to day choices.
Source of entertainment: Consumers in Gurdaspur also look to spend more on leisure
activities as incomes rise. Today not many options are at their disposal. Selective investments
in customized and affordable entertainment options can yield big dividends in the next few
years for companies dealing in entertainment and hospitality. Movie theaters that are a step
above the single-screen theaters currently prevalent in most of these towns can encourage
family movie outings and unlock a huge opportunity for the entertainment segment. For now
there are around 4 recreational parks in town.
Place for agricultural linkages: BABRI village, Babehali village, Galri village, etc.
Agriculture Statistics
Sr.No. Statistics Unit / %
1. Net Area Sown 258000 Hect
2. Area Sown More Than Once 245000 Hect.
3. Total Cropped Area 503000 Hect.
4. %age of Gross Irrigated to Gross Cropped Area. 88.43
5. %age of Net Irrigated Area to Net Area Sown. 84.02
6. %age of Net Irrigated Area to Net Area Sown for Wheat 100%.
7. %age of Net Irrigated Area to Net Area Sown for Rice 100%.
8. %age of Net Irrigated Area to Net Area Sown for Sugarcane 100%.
9. Production Wheat 917000 MT
Rice 648000 MT
Sugarcane 150000 MT
Yield Wheat 4070 Kg/Hect.
Rice 3223 Kg/Hect.
Sugarcane 6260 Kg/Hect.
10. Intensity of cropping 175
11. Consumption of fertilizers 121816 Nutrients Tons

10. Servicing Centre: Mostly located in city area and few of them are:
Hero Service Centre
Maruti Service Centre
Bajaj Service Centre
Nokia Service Centre
Samsung Service Centre
Selling and Redistribution Centre:
Gurdaspur serves as a redistribution center for a set of products through warehouses or other
specialized building, often with refrigeration or air conditioning, where products are stocked
to be redistributed to retailers, to wholesalers, or directly to consumers. A distribution center
is a principal part, the order processing element, of the entire order fulfillment process.
Distribution centers are usually thought of as being demand driven. A distribution center can
also be called a warehouse, a DC, a fulfillment center, a cross-dock facility, a bulk break
center, and a package handling center. The name by which the distribution center is known is
commonly based on the purpose of the operation.
For agriculture products: Traditional Mandi and small kiryana shops in every ward.
For consumer durables: Showrooms and shops
For food and beverages: Kiryana and small departmental store. Easy day is gaining market
share

11. Part –C
Is FDI In Retail A Good Idea?
Foreign direct investment is an investment made to acquire lasting interest in enterprises
operating outside of the economy of the investor. And retail could be defined as ‘selling of
goods to the end consumer for final consumption’. In India, retail sector is expected to grow at
significant rate in coming few years. The total size of Indian retail sector, including organized
and unorganized sector, is $300 billion, where currently the organized sector accounts for 4%
only. It contributes about 14% to the national GDP and employing 8% of the total workforce,
second only to agriculture in the country. An estimated 40 million Indians work in retail
outlets. India is the second most attractive destination for retail among thirty emerging
nations, making it 5th most desired retail destination in World.
The large retail stores create numerous opportunities in retail, supply chain, transportation
and logistics, marketing and advertising and merchandizing. Developing countries with a
relatively younger population needs to create millions of jobs and retail FDI hopes to be an
enabler towards this direction. The quality of jobs will not be of the same breath as R&D and
Technology jobs, but it definitely meets need of the masses for which a job is currently
beyond reach. Big Bazaar, Pantaloons and Westside have opened showrooms creating job
avenues for those who would have never worked in the organized sector. Much has been
talked about big retail stifling entrepreneurship among the masses. However, the reality is
very different. Mom and pop stores pay a pittance to the employees and often exploit
children to keep costs down. Work conditions are also worse than in organized retail. Every
opportunity comes with a cost. In this case, retail stores will be impacted but will be off-set
with job creations and infrastructural development in the supply chain.
Retail sector will continue to expand to a multi-billion dollar sector. It holds promise for
creating large number of jobs. FDI in retail will bring in needed funding to develop the sector
and intensify competitions which will eventually benefit the end consumer. The government
will have to ensure adequate mechanisms are built in to protect the interests of the
employees, farmers from whom retail giants will procure and the environment as it is real
estate, power and transport intensive. Permitting foreign investment in agricultural retailing is
likely to ensure adequate flow of capital into rural economy in a manner likely to promote the
welfare of all sections of society, particularly farmers and consumers. It will bring about
improvements in farmer income and agricultural growth and assist in lowering consumer price
inflation Policy makers can insert the necessary clauses to protect national interests. The need
of the hour is to create jobs for the millions joining the workforce and retail can definitely
contribute towards this goal

12. FINAL ANALYSIS
Analysis: A major proportion of the respondents disagree with the statement, whereas there are large
numbers of respondents who also agree with the above statement.
Analysis: More than half of the respondents agree with the above statement and a very number
disagree that food processing and storage process will improve.

13. Analysis: It is very important to ensure that the supplies reaches the store in good condition and on
time, while conducting the survey a major proportion agreed with the statement and another significant
part remained indifferent, .i.e. neither agreed nor disagreed.
Analysis: Most of the respondents agree with the above statement and a negligible number of
respondents disagree with the statement.

14. Analysis: There is a 7:3 ratio of people agreeing with this statement and people disagreeing with the
above statement.
70% of the respondents in the survey agree with the statement and the rest 30% disagreed with the
above statement.
Analysis: More than 50% of the people neither agree nor disagree with the above statement, and others
are almost equally divided into the ones who agree and who disagree.

15. Analysis: A major part of the sample agrees that the foreign retailers will follow unethical practices.
Analysis: Price rise will be under control, there is an equal proportion of the sample agreeing and
disagreeing with this statement. Also a negligible part of the sample neither agrees nor disagrees with
the statement.