Smart Management In Rural Markets: A Comparative Study Of AI-Driven Fmcg Strategies Of Indian And Foreign Companies And Their Impact On Consumer Purchase Decisions In Madhya Pradesh

Abstract

In recent years, the Indian rural market has emerged as a focal point for the growth of the Fast-Moving Consumer Goods (FMCG) sector. With increasing digital penetration, evolving consumer behaviour, and infrastructural improvements, companies are exploring innovative strategies to engage rural consumers effectively. This study investigates the integration of smart management practices—particularly the application of Artificial Intelligence (AI) and business process innovations—into rural marketing strategies of Indian and foreign FMCG companies operating in Madhya Pradesh. The aim is to understand how these strategies influence consumer purchase decisions and determine the comparative effectiveness of Indian versus foreign firms in rural contexts. Using a mixed-method research approach, the study comprises quantitative surveys of 300 rural consumers across various districts of Madhya Pradesh and qualitative interviews with marketing professionals from selected Indian (e.g., Patanjali, Dabur) and foreign (e.g., Hindustan Unilever, Nestlé) FMCG companies. The research focuses on the deployment of AI tools such as predictive analytics, customer segmentation, supply chain optimization, and digital promotions. It also explores consumer responses to these innovations in terms of brand preference, trust, accessibility, and buying behaviour. The findings are expected to reveal key differences in strategic orientation and technological adaptability between Indian and foreign FMCG brands. Moreover, the study aims to demonstrate the role of smart management in enhancing operational efficiency and market responsiveness in rural settings. The outcomes will provide actionable insights for industry leaders, policymakers, and academic researchers on leveraging digital innovation for inclusive growth in India's rural economy.