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RURAL ADVERTISING
INTRODUCTION
“Come with us to the fields, or go with our brothers to the sea and cast
your net. For the ...
RURAL ADVERTISING
 BPL is planning to add 13,000 active dealers this year to its existing
network of 15,000 throughout th...
RURAL ADVERTISING
Literacy level: Low level of education creates problem in brand identification.
Since rural consumers of...
RURAL ADVERTISING
print media, the various publications reach only 18% of the rural population.
Even in areas reached, the...
RURAL ADVERTISING
ADVERTISING
“ Advertising is 85% confusion and 15% commission”
- Allen Fred
The word ‘advertising’ has b...
RURAL ADVERTISING
Analysis shows that advertising is used for numerous purposes. It also shows
that many companies have no...
RURAL ADVERTISING
however, since they could easily be slipped into a pocket and the near-by door
allowed easy escape for w...
RURAL ADVERTISING
psychological or emotional. Thus, when you buy aspirin, you are to insist on a
given brand because it is...
RURAL ADVERTISING
In some circumstances advertising is used for the purpose of persuading the
customers to submit an order...
RURAL ADVERTISING
MAKING INROADS INTO THE HINTERLANDS.
10
L.G. sells ‘Sampoorna’ a television model for rural homes at abo...
RURAL ADVERTISING
Choice Of Advertising Media:
After the company has decided on the purposes of it’s advertising, the medi...
RURAL ADVERTISING
travel by air as much as they might, and the fact that they do use planes
occasionally indicates they ar...
RURAL ADVERTISING
RURAL MARKET ENVIRONMENT
“No great marketing decisions have ever been made on quantitative
data”
- John ...
RURAL ADVERTISING
About 75 % of the Indian people reside in rural areas. In other words, for every
consumer in urban area,...
RURAL ADVERTISING
generation in rural areas entirely depends on how the land is used, what crops
are cultivated, how much ...
RURAL ADVERTISING
Given the distribution of rural and urban population, it can be seen that the
number of literates in rur...
RURAL ADVERTISING
been tapping the potential of the rural market for a long time. But these are
exceptions.
MAKING INROADS...
RURAL ADVERTISING
Distribution of Rural Demand
From the above chart, interesting inference can be drawn. The total expendi...
RURAL ADVERTISING
to greater awareness of the products on the part of rural people. Some market
research studies on media ...
RURAL ADVERTISING
5. Traditional outlook:
An average rural consumer is traditional in outlook. They value old customs
and ...
RURAL ADVERTISING
PROFILE OF RURAL DEMAND
In this connection the following points are to be noted:
 Size of Rural Demand:...
RURAL ADVERTISING
k. Ornaments and jewelry
2. Products that have entered the rural market in recent times:
Toiletries, Cos...
RURAL ADVERTISING
ROLE OF ADVERTISING IN RURAL INDIA
In India, the advertising is mostly in English or Hindi. As rural mar...
RURAL ADVERTISING
planning targets as gospel, without undertaking the responsibility of doing a
measure of their own marke...
RURAL ADVERTISING
social and economic problems. With low income from farms the question that
arises is: can we afford the ...
RURAL ADVERTISING
The bumper crops and the upturn in agricultural production have resulted in a
considerable increase in t...
RURAL ADVERTISING
The value of this direct personal propaganda and selling cannot be
overestimated, especially in the rura...
RURAL ADVERTISING
The villagers are slightly hesitant about going to slightly smart looking shops. The
relatively prospero...
RURAL ADVERTISING
Eighty percent of total population is in villages and about 60% of the national
income comes from rural ...
RURAL ADVERTISING
• Advertising should be simple and unsophisticated and in terms of media,
use local fairs, opinion leade...
RURAL ADVERTISING
b) Regional urban branded products. In some villages regional brands or
brands of unorganized sector are...
RURAL ADVERTISING
b) Because of the lack of sophistication of the rural consumers the
creative treatment must be kept ‘sim...
RURAL ADVERTISING
CONSTRAINTS IN MARKETING COMMUNICATION IN RURAL INDIA
Marketing communication and promotion poses a lot ...
RURAL ADVERTISING
In short the crux of the marketing communication in the rural context is one of
finding a media mix that...
RURAL ADVERTISING
OVERCOMING THE BARRIERS OF COMMUNICATION IN RURAL INDIA
A company that seeks a long term presents in the...
RURAL ADVERTISING
2. Mass Media
 Television
 Word of mouth
 Radio
 Cinema halls
 POP,s
 Press
 Other print media
Co...
RURAL ADVERTISING
SELECTING THE MEDIA MIX:
Evidently, in the rural context the firm has to choose a combination of
formal ...
RURAL ADVERTISING
availability of radio sets has also expanded. Given the reasonable price of a
transistor radio, it can b...
RURAL ADVERTISING
POP’s:
The POP’s point of purchase (or point of sales) promotion tools are also
quiet useful in the rura...
RURAL ADVERTISING
PRINT MEDIA:
The relevance of print media for rural communication needs careful
examination mainly becau...
RURAL ADVERTISING
MEDIA REACH STATISTICS
The medium in the message" acquires critical importance for advertisers and
marke...
RURAL ADVERTISING
state it has a penetration of a mere 4 per cent. Similarly in Assam and Orissa
satellite TV reaches only...
RURAL ADVERTISING
when the advertisement is couched in entertainment it goes down easily with the
villager.
Advantages of ...
RURAL ADVERTISING
Naturally, the A/V vans are quite popular with rural marketing firms. Practically all
the firms in agri-...
RURAL ADVERTISING
 Vidoecon used van demos along with audio visual aids to promote its black
and white colour TV. And its...
RURAL ADVERTISING
PUPPETRY
Puppetry is the indigenous theatre of India. From time immortal it has been the
most popular fo...
RURAL ADVERTISING
organizations, government, semi-government and private, have also used
puppets in support of individual ...
RURAL ADVERTISING
 Balliye Kanak Biye - Wheat Cultivation.
B) Khiran Kepah Narme - Cotton Cultivation.
Both were well rec...
RURAL ADVERTISING
Kurvaanji, Pagal Vasham, Kavadi Chindu
Uttar Pradesh Ram Leela, Ras Leela, Nautanki, Bhagat, Sang-Swang,...
RURAL ADVERTISING
These campaigns are different from door to door selling campaigns. The
promotion squads do not engage in...
RURAL ADVERTISING
carry out free dental check up camps where literature on dental care (in local
language), and oral care ...
RURAL ADVERTISING
WHY MELAS ?
 Over 25000 Melas and 47000 Haats are held annually
 Annual sales at Melas amount to Rs. 3...
RURAL ADVERTISING
 KUMBH MELA – A classic example of effective rural specific marketing.
The Kumbh Mela 2001-which is off...
RURAL ADVERTISING
the biggest mela in India and, with its focus on `cleansing' is a good fit for the
`Lifebuoy for health'...
RURAL ADVERTISING
stall,'' says a Dabur source. Dabur will also air about 12,000 commercials on the
15-video walls placed ...
RURAL ADVERTISING
4) A definite way of arresting is to use bright colors and these do not fade away
easily. A good paint w...
RURAL ADVERTISING
 To attract rural buyers advertisers use simple films showing how a product is
to be used. Rajdoot Pain...
RURAL ADVERTISING
OTHER RURAL SPECIFIC MEDIA
POSTCARDS
The extensive network of post throughout the country can be used as...
RURAL ADVERTISING
reaching markets through alternative cost effective media starts, rural
consumption will go high making ...
RURAL ADVERTISING
MAKING INROADS INTO THE HINTERLANDS.
60
LG expects 40% of it’s colour television sales to come from rura...
RURAL ADVERTISING
COMPANIES WHICH HAVE USED TRADITIONAL MEDIA
EFFECTIVELY
The Strategy: Dabur address the rural marketing ...
RURAL ADVERTISING
RURAL ADVERTISING
CASE STUDIES
COCA – COLA INDIA
The Coca-Cola Company is the global soft-drink industry...
RURAL ADVERTISING
A common trend that is seen in the promotional advertisement campaigns of soft
drinks, is the presence o...
RURAL ADVERTISING
drinks in local paralance – especially in the rural and moffusil areas. This
campaign intends to push th...
RURAL ADVERTISING
CASE STUDY II
TATA SALT
Tata Chemicals’ salt story began in 1983, when it needed fresh water for
the boi...
RURAL ADVERTISING
Tata salt spends about 15-18% of their sales revenue on promotion. The
promotional strategy used by Tata...
RURAL ADVERTISING
They are printed in regional language newspaper and in the magazines in the
regional language. Like, The...
RURAL ADVERTISING
(b) Wall paintings: They also communicate to rural market through the wall
paintings in Haats. Urban con...
RURAL ADVERTISING
The umbrella oraleare brand of the company ‘Colgate’ is a very popular name in
the Indian household and ...
RURAL ADVERTISING
PALMOLIVE used other means of mass media such as hoardings, wall
paintings, posters, banners, gift schem...
RURAL ADVERTISING
CASE STUDY IV
CASPER
Tainwala has carved a niche in human hearts by providing protection and
comfort. Th...
Rural advertising
Rural advertising
Rural advertising
Rural advertising
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Transcript of "Rural advertising"

  1. 1. RURAL ADVERTISING INTRODUCTION “Come with us to the fields, or go with our brothers to the sea and cast your net. For the land and the sea would be bountiful to you even as to us”- Kahlil Gibran The footfalls in the villages are getting louder and louder as companies scramble to woo the rural consumers. Villages are no longer an abstraction, but fashionable in marketing terms. From talking endlessly about potential growth, companies are now actively cultivating the rural markets. And why not? Consider the market; out of five lakh villages in India only one lakh have been tapped so far. What has made the rural consumers so attractive to companies now? After all, the 122-million village households were not created overnight. The answer is simple. The urban market is getting saturated while villagers are flush with 'disposable income' thanks to bountiful harvests in the last four years. It is this income that the companies are raring to cash in on. The estimate speaks of the potential volume of business that can be generated in rural Indian markets. The estimate is about three times that of the European market.  Hindustan Lever's 'Operation Bharat' will reach 22 million new households in the villages by the end of the year.  Every area that has a police station will soon boast a Godrej dealer & service centre. MAKING INROADS INTO THE HINTERLANDS. 1
  2. 2. RURAL ADVERTISING  BPL is planning to add 13,000 active dealers this year to its existing network of 15,000 throughout the country. A dramatic change is in progress. Villagers who used to crack open peanut candies, eat the nut and throw away the shell are now demanding chocolate candies that will melt in their mouths, not in their hands. Charcoal-cleaned teeth are a rare sight; so is the case with twigs of niim (neem) and babul (babool) tree. Today, the ultra bright shine of Colgate or some other international brand of toothpaste holds more appeal than the traditional methods of cleaning teeth. Even the native expressions of cleaning teeth, such as daatun karnaa and musaag lagaanaa, are endangered to being replaced by new expressions such as paste karnaa, 'to brush teeth with paste'. Even a simple query such as: Where are you from? Is not free from the overtones of marketization and globalization in rural discourse. Consumerism and globalization is invading parts of India where, as some would venture to say, time seems to have ceased for centuries. Yet there has not been substantial progress in this area. The hurdles that pose a challenge to the companies in rural marketing are as follows: Seasonal Market: The rural market is typically a seasonal market. The consumption level goes high post-monsoon and dries up during the non-crop period. Disposable Income: The unit disposable consumption level is very low and the assortment has to be made in a different size compared to the urban market to suit it to the rural customer's pocket. Multiplicity of assortment adds up to the cost level of the product and works against adding experience effect to the production. Furthermore, the distributed settlement and high transportation cost makes it potentially less feasible for many companies to launch products for rural consumption. MAKING INROADS INTO THE HINTERLANDS. 2
  3. 3. RURAL ADVERTISING Literacy level: Low level of education creates problem in brand identification. Since rural consumers often cannot read the brand names and price tags, it makes it easier for the clones to launch brands similar in label and design and spoil the brand image of the so-called successful urban brands. Unscrupulous retailers are taking the benefit and damaging the perception of the brands before they actually enter the rural market. So marketers and advertisers are looking for an alternative medium to promote brands through advertising. The success of a business in India will be decided in future by its success in the heart of India, i.e., the rural market. Rural marketing in India needs some innovative and alternative media to woo the customers. The conventional wisdom of glossy urban advertising and fantasy mix through television is not going to work in the rural markets. Marketing communication challenges: Marketing communication and promotion poses a lot of problems in rural India. There are many constraints emanating from the profile of the audience and the availability of media.  The literacy rate among the rural consumers being low, the printed word has little use in the rural context.  In addition to the low level of literacy, the tradition bound nature of rural people, their cultural barriers and taboos and their overall economic backwardness add to the difficulty of the communication task.  The situation is further compounded by linguistic diversity. Rural communication has to necessarily be in the local language and idiom. The constraints of media further compound the difficulty. It has been estimated that all organized media put together can reach only 30% of the rural population of India. TV is an ideal medium for communicating with the rural masses. But its reach in rural areas is restricted even today. As regards the MAKING INROADS INTO THE HINTERLANDS. 3
  4. 4. RURAL ADVERTISING print media, the various publications reach only 18% of the rural population. Even in areas reached, the circulation is limited. The low literacy level of the rural population still acts as an inhibitor in the use of print media in rural communication. Cinema is relatively more accessible. It has been estimated that 33% of total cinema earnings in the country come from rural India. Rural communication has also become relatively more expensive. For rural communication to be effective, repeat exposures is a must; and if gap between exposures is long, the message losses its edge during this period. These factors make rural communication more expensive. Rural communication has to go through all the time consuming stages of creating awareness, altering attitudes and changing behaviour. In addition it also has to work against deep-rooted behaviour patterns. In short the crux of the marketing communication in the rural context is one of finding a media mix that will deliver the required message in a cost effectively with the rural target audience that is predominantly illiterate. MAKING INROADS INTO THE HINTERLANDS. 4
  5. 5. RURAL ADVERTISING ADVERTISING “ Advertising is 85% confusion and 15% commission” - Allen Fred The word ‘advertising’ has been derived from the latin word ‘advertere’ which means to turn people’s attention to a specific thing. Production of goods without their sales would amount to wastage of national resources. Goods are always produced in anticipation of demands. Success of a company depends upon fast sales and repeat order. Every businessman, therefore, tries to, maximise his sales. In order to obtain higher sales turnover, business now uses various methods of persuading the consumer to buy their products. Advertising is the art of making yourself and your product known to the world in such a way that a desire for buying the product is created in the hearts of the people. Advertising is therefore essential for creating and maintaining demand for your products. It informs the customers of new products. It educates people and spreads knowledge. Today we are bombarded on all sides by many types of advertising. No matter whether we walk on the streets, drive an automobile on the highways, ride a bus, watch television, read a newspaper or magazine or open our mail, we are brought face to face with advertising. This creates a difficult situation for the manager, for he must determine what advertising on his part would justify its cost amid the bewildering array of advertisements by other companies. The major questions of policy with reference to advertising that the manager must answer are (a) the purposes for which it is to be used; and (b) the media employed to accomplish these purposes. MAKING INROADS INTO THE HINTERLANDS. 5
  6. 6. RURAL ADVERTISING Analysis shows that advertising is used for numerous purposes. It also shows that many companies have not given adequate thought to the question of exactly what they are trying to accomplish with their advertising. Bringing customers to the place where goods are sold, Retail stores frequently use advertising for this purpose. In such cases the display of merchandise and the efforts of salesmen are depended upon to close the transaction. We are all familiar with advertisements of special drugstore sales that feature twenty-five of fifty different items. The store usually hopes to sell substantial quantities of the merchandise advertised; but more important, it hopes to get customers into the stores so that they will buy other types of merchandise and will develop habit of coming to that establishment for their subsequent requirements. Department stores use advertising in a similar manner. Those stores that feature price appeal undertake extensive advertising of "economy day", "president's birthday", and pre-season or post-season sales. Stores desiring to use a prestige appeal may have the author of a popular book give a lecture or secure designers of furniture, dinnerware, or clothing to talk about these particular products. A number of stores provide space for local art exhibits or a showing of crown jewels; a pair of unusual and very expensive fur pelts or the elaborate doll houses of a well-known T. V. actress may be featured for the purpose of attracting customers to the store. The point is well illustrated by a story told of two keen partners operating a store located in very low-income neighborhood. Upon observing that large number of customers was patronizing their near- by competitors, they set up a table filled with small articles, such as pickle forks, saltshakers, and cigarette holders. This table was placed near the front door where everyone entering or going out of the store would pass it. The sales of the articles proved to be very unprofitable, MAKING INROADS INTO THE HINTERLANDS. 6
  7. 7. RURAL ADVERTISING however, since they could easily be slipped into a pocket and the near-by door allowed easy escape for would be purchasers. According to the story , however, there was a substantial increase in customer traffic. When asked to explain the situation one of the partners said, "We call that our steal table. We place ten Rupees" worth of merchandise on the table each morning and know that most of it will have disappeared by evening, but when people come in to steal from this table, they have to act like customers and look at other merchandise, and sometimes they buy. “ They like to come to the store because they can go home with an extra ten paise article that probably cost us three paise. All for ten rupees a day it's cheap advertising." Persuading the Customer to Ask for a Specific Product: Retailers use advertising for this purpose to some degree, but it is probably used to the greatest extent by a manufacturer who wishes to create consumer demand, or at least consumer acceptance, for his brand of products. For example, a number of children's television programmes are sponsored by manufacturers of food products. The programme may consist of adventures in space, a detective serial, or anything that arouses the intense interest of a child. Somewhere in the programme the youngsters are instructed to insist that their mothers buy the product of the sponsoring manufacturer. This kind of advertising has proved very effective under certain conditions. In fact, almost the entire advertising programmes of the large cereal companies are directed towards the ultimate consumer for a purpose of getting her to ask for that specific product. Although the goods are usually sold through a jobber, who in turn sells them to a retailer and then to the consumer, it is the policy of these companies to advertise only to the consumer and thereby create such an active consumer demand that the retailer and the jobber will be glad to carry the products and benefit from the quick turnover resulting from the strong demand. Any of a number of advertising techniques are used to induce the customer to purchase specific products. Some have a rational basis while others are largely MAKING INROADS INTO THE HINTERLANDS. 7
  8. 8. RURAL ADVERTISING psychological or emotional. Thus, when you buy aspirin, you are to insist on a given brand because it is pure, it dissolves, and it acts more quickly. At other times reliance is placed primarily upon repetition of the brand name so that the consumer will automatically select that particular product. The Coca Cola Company follows this technique extensively. Whatever the technique, the purpose is to get the consumer to ask for, or at least willingly accept, a particular brand of product. Assisting the Salesman in Making Sales when He Calls on the Customer: The manufacturer uses advertising extensively for this purpose. He seeks to familiarize the customer with his products and create a favourable attitude toward his company before the salesman approaches the customer. For example, concerns producing basic metals frequently advertise in trade papers that are read by their customers. The advertisement itself will not induce the potential customer to take any action, but it is hoped that the salesman will receive a more cordial welcome as a result. A firm manufacturing a line of luggage had for several years advertised extensively in national magazines. This was discontinued when a special study convinced the management that style, design, quality, and price were so much more important to the ultimate consumer than a particular brand name that directing its advertising toward the ultimate consumer was not economical. Nevertheless this company does a limited amount of national advertising because retailers are more inclined to stock a product that can be said to be nationally advertised. Thus the primary purpose of the national advertising campaign of this company is to assist the salesman in his negotiations with the retailer. Other companies provide the retailer with attractive window displays and store decorations that serve the dual purpose of creating consumer interest and providing the salesman with a favourable reception by the retailer. Producing Direct Sales: MAKING INROADS INTO THE HINTERLANDS. 8
  9. 9. RURAL ADVERTISING In some circumstances advertising is used for the purpose of persuading the customers to submit an order as a direct result. The catalogues of mail-order houses. For instance, present merchandise in such a way that the customer can write out or telephone an order without going to a shopping centre and without further promotional effort on the part of the vendor. One company has been successful in selling men's shirts as a result of direct-mail advertising to the consumer. This company stresses a price appeal that, it claims. is justified by its distribution "direct from the factory to you." How-to-do-it and reference books that appeal to a particular type of reader are often sold by direct mail or magazine advertising. Budding Institutional Goodwill: Practically all advertising is expect-ed to build institutional goodwill to some degree, but in some cases this may be the primary objective. The advertising by telephone companies is largely for this purpose. One of the leading small-loan companies has made extensive research on the problems of consumer buying and distributes a large number of pamphlets guiding housewives in the selection of merchandise. Intelligent expenditure of a limited income is, of course, related to the collection of small loans made to individuals for personal use. Nevertheless, the primary purpose of the distribution of these pamphlets is the development of goodwill toward the company. Enough illustrations have been given to indicate that advertising may be undertaken for widely different purposes. Central management normally does not become involved in detailed aspects of advertising, but it can and should exercise a significant influence on company advertising by setting policies regarding the purpose of the expenditure. MAKING INROADS INTO THE HINTERLANDS. 9
  10. 10. RURAL ADVERTISING MAKING INROADS INTO THE HINTERLANDS. 10 L.G. sells ‘Sampoorna’ a television model for rural homes at about Rs.10,000,Samsung and BPL have similar models targeted towards rural markets as well.
  11. 11. RURAL ADVERTISING Choice Of Advertising Media: After the company has decided on the purposes of it’s advertising, the media must be determined. The principle media include:  Magazines  Newspapers  Trade papers  Television and radios  Billboards  Direct mail. This list is not intended to be complete. Other types of sales promotion may also be included under the general heading of advertising are display, dealer’s help and sampling. Rarely does a single company use all of these media. It must select those that will accomplish its objectives most economically. For example, one large hosiery company that used advertising primarily to influence retailers formerly spent approximately Rs800,000 annually advertising in magazines having a national circulation. A survey among retailers showed that dealers liked nationally advertised products, but that they were influenced to a greater degree by dealer helps such as counter displays and leaflets and by co- operative advertising in local newspapers in which the name of the local dealer was mentioned along the company’s products. The expenditure of the company on advertising is less than Rs50,000 per year. An airline company faced a serious problem in the selection of media to build familiarity and goodwill among a large number of people. Advertising that would produce traffic on it’s planes immediately was also wanted. For this later purpose expenditure were confined primarily to direct mail letters, circulars and announcement to business executives and other people believed to be potential passengers in the near future. Considerable effort is directed towards passengers on its planes because these passengers as a general rule do not MAKING INROADS INTO THE HINTERLANDS. 11
  12. 12. RURAL ADVERTISING travel by air as much as they might, and the fact that they do use planes occasionally indicates they are interested in this method of transportation. The institutional program consists largely of magazine advertisements and general newspaper publicity. We see in both these cases the need to catch media and purpose carefully. Too often the virtues of a particular media are advanced without reference to the mission of the advertising. Other Advertising Problems Problems of advertising are by no means limited to a determination of the major purposes and selection of media. In addition, decisions must be made as to the general type of advertising to be used. Some companies feature testimonials others employ cartoons to a large extent. Some use flashy advertisements and large prints; others make their advertising more dignified. The use of premiums and of contests can open up many additional possibilities for the imaginative copywriter. Then there are numerous questions regarding such things as layouts. Primarily these are questions of advertising techniques rather than general sales promotion policies. MAKING INROADS INTO THE HINTERLANDS. 12 Qualis, a Rs.5.67 lakh, multi-utility vehicle manufactured by Toyota is preferred over Mahindra and Mahindra’s ‘Armada’ priced at Rs.4.32 lakh.
  13. 13. RURAL ADVERTISING RURAL MARKET ENVIRONMENT “No great marketing decisions have ever been made on quantitative data” - John Scully In India, rural advertising is increasingly evident throughout the countryside. The majority of advertisements and hoardings are for fertilizers, hybrid seeds, diesel pumps and pesticides, not to mention the message of family planning. Therefore advertising in the Indian rural context must be seen as consisting of techniques for improving economic mobility within the country. The emergence of an active cash economy is bound to create a strong rural demand and promote rural consumption. The traditional growth and dominance of urban industrial centres is undergoing rapid changes. A more equitable distribution in rural areas would also help in slowing down the rapidly increasing influx of people from rural into urban centres. There two sections of rural population: • A large portion have a low income and low consumption levels; • The rest are rural rich The rural population forms a major portion of the Indian population as seen below: MAKING INROADS INTO THE HINTERLANDS. 13 Division of Population in India Urban 26% Rural 74% Rural Urban
  14. 14. RURAL ADVERTISING About 75 % of the Indian people reside in rural areas. In other words, for every consumer in urban area, there are three of them in rural areas. Though the proportion of rural population is showing a slight decrease over the years, but in absolute numbers, the rural population is growing at a higher rate than the urban population. This large population will require a wide range of consumable and durable goods and services. At the same time the need of the rural areas does not automatically guarantee a market, unless it is backed by income and the resultant purchasing power. For a vast majority of the rural population, the main occupation is agriculture and allied activities. The bar graph below gives the distribution of rural population as per their occupation pattern. About half of the rural population own or lease land to cultivate it for their livelihood. Another 27% are dependent on these cultivators for their jobs as agricultural labourers. Thus, a total of 77% of rural population depend on land only for their living and land is the source of their living. There are others, constituting a small proportion, who are engaged in business like petty shopkeepers or merchants and salary earners like teachers, health workers and village level officials. The implication of this is that the income MAKING INROADS INTO THE HINTERLANDS. 14 Occupation Pattern of Rural India 2%2% 9% 10% 27% 50% Agriculture Agricultural labour Business Non-agricultural labour Salary earners Not gainfully employed
  15. 15. RURAL ADVERTISING generation in rural areas entirely depends on how the land is used, what crops are cultivated, how much is marketed, how much is consumed and the marketing arrangements for the production. If rainfall is adequate, weather conditions are favourable and appropriate technology is available, the rural areas prosper as it has happened in states like Punjab, Haryana and Western Uttar Pradesh. So the disposable income in the hands of the rural people is very much conditioned by the status of agriculture and other allied activities. This also indicates that major part of income generated is a source of agriculture. Seventy five percent of income generation in rural areas is from agriculture and agriculture-related activities. One of the deterrents for marketers to exploit the rural market potential has been the vastness of the rural market in terms of areas covered and the location of the rural population. It is much easier to cater to the needs of the urban population because of their concentration, but it is very difficult in the case of rural population because of their widespread nature. The villages are also not uniform in size. Nearly 48% of the villages have a population of less than 500 persons or about 100 households, which is probably of no consequence to marketers. This may be acceptable since the proportion of population covered by these 48% of villages account for only 12% of the total population. Yet it should also be borne in mind that the people of these villages also have land and cultivate and generate some income. Thus the location and size of population of villages throw a challenge to marketers. This phenomenon is not true for the whole country and there are wide variations among the different states. In states with high irrigation facilities and fertile lands, the concentration of population is more when compared to states with low irrigation facilities and lack of arable land. MAKING INROADS INTO THE HINTERLANDS. 15
  16. 16. RURAL ADVERTISING Given the distribution of rural and urban population, it can be seen that the number of literates in rural areas are more than in urban areas. It is interesting got note that there has been a considerable increase in the number of literate persons in rural areas since the last two decades. This has its implication in communicating with the rural population. It appears that communication should not prove to be such a big hurdle. Today, television has proved to be an effective medium for communication with the rural masses. The telecasting network in the country today covers about 93% of the population. Assuming that the entire urban population is covered by the television, which is only 23%, then nearly 67% of the rural population is covered by television. Thus, television reaches a larger segment of rural population than any other form of mass media. Though radio is also very popular, people like to see to believe. The above factors point that the potential for marketing of goods and services depends heavily on agriculture, since it is the main occupation in rural areas. The market for agricultural inputs – fertilizers, pesticides, insecticides, tractors, irrigation equipment and seeds – has been expanding over the years in rural areas as the Indian farming is fast becoming market-oriented. But the rural market has remained a dark area for those manufacturing and marketing consumables and consumer durables. To successfully exploit the potential offered by rural market, there is a need to first understand the rural market in terms of the characteristics mentioned above. Only a few established companies – Hindustan Lever, Lipton, Brooke Bond, TOMCO, Procter & Gamble – have MAKING INROADS INTO THE HINTERLANDS. 16 Literacy Levels in India 45 73 55 27 0 20 40 60 80 100 120 Rural Urban Illiterate Literate
  17. 17. RURAL ADVERTISING been tapping the potential of the rural market for a long time. But these are exceptions. MAKING INROADS INTO THE HINTERLANDS. 17 Titan industries sold three million pieces of its ‘Sonata’ brand watches in B and C cities and towns, at prices less than Rs 1,000. It has become the preferred brand, taking over from long-favourite HMT.
  18. 18. RURAL ADVERTISING Distribution of Rural Demand From the above chart, interesting inference can be drawn. The total expenditure on food items is higher than any other expenditure. Majority of the non-food items include the consumer durables like television, washing machines, etc. but the higher expenditure on food items show that the chances of a food item being successful in the rural market is than the chances of non-food items. Companies like Parle have penetrated the rural markets long time ago followed by Britannia in the food category. They have offered food items like biscuits, namkeens and their like at a cheaper price than in the urban areas and have captured a niche market of sorts in the rural market. Most of the rural people make their own food items at home and do not purchase snacks from shops. But the trend of ready- made food items is catching up and the rural population is increasingly purchasing such products. The Parle-G brand of biscuit has been successful in the rural as well as urban areas. But the biscuits introduced by Britannia in the rural market failed because of their high price. This shows that the rural consumers are price sensitive in the case of food items also. Literacy and media habits Despite the low level of literacy in rural areas, the growth between 1971 and 1981 is significant. More than five crore people have become literate in the course of the last decade, a figure almost equal to the entire population of France. Growth in literacy levels is expected to continue and this, in turn, will lead MAKING INROADS INTO THE HINTERLANDS. 18 Value of Consumption per person per month in rural India in Rupees 122 68 Food items Non-food items
  19. 19. RURAL ADVERTISING to greater awareness of the products on the part of rural people. Some market research studies on media habits of Andhra, Haryana and Punjab are quite revealing. They clearly show that, contrary to popular belief, organized media play a significant role in supplementing the efforts to reach the rural customer. Other 70% of the population listen to the radio, about 65% in Andhra goes to the cinema. The corresponding figure for Punjab and Haryana is 26%. In booth these areas about 30% read newspapers regularly. FEATURES OF RURAL MARKET 1. Large and scattered market: The rural consumer market consist of over 63 crores consumers. The rural consumers are scattered over 576000 villages. The consumer market of non- foods market is over Rs 20000 crores 2. Demand related to agriculture Rural demand is linked to agriculture. Most of the purchases are made after harvest season. If the is a good harvest purchases will be more and vice versa. 3. Low Standard Of Living; Consumes in rural areas do have a low standards of living this is because of low literacy, social backwardness, low per capita income, low savings, low purchasing power and hence low standard of living 4. Great Diversity: India is a land of great diversity. Multi language, multi religious and multi cultural. The consumption habits vary from place to place, religion wise and social customs wise MAKING INROADS INTO THE HINTERLANDS. 19
  20. 20. RURAL ADVERTISING 5. Traditional outlook: An average rural consumer is traditional in outlook. They value old customs and traditions. However, a slow change is beginning to take place in their outlook, maybe because of the growth in literacy rate and the on slaught of TV and other mass media in rural areas. 6. Steady growth rate: The growth rate for consumer goods is study and infact increasing at a rapid pace. This is because of number of factors contributing to the change in outlook and purchasing power of rural consumers. MAKING INROADS INTO THE HINTERLANDS. 20
  21. 21. RURAL ADVERTISING PROFILE OF RURAL DEMAND In this connection the following points are to be noted:  Size of Rural Demand: The size of rural market in the non-food items is in the range of Rs.20000 crore in 1990 as compared to Rs.5000 crore in 1970. This means there is a four-fold increase in the consumption of non food consumer items in the rural areas in the last two decades.  Composition Of Rural Demand: The composition of demand in rural areas is changing significantly. A large number of new consumer items are added to the rural consumer list. This includes shampoos, toothpastes, premium bathing soap, scooters/motor-bike, television sets and so on. The following aspects are to be noted: 1. Product category that are already well established in rural market- a. Means of transportation such as bikes, motorcycles and scooters b. Irrigation and agricultural machinery c. Agricultural inputs like fertilizers, pesticides etc. d. Entertainment goods such as radios. e. Beverages including alcoholic beverages. f. Tobacco and tobacco products g. Furniture and cooking utensils h. Medicines and hygiene products. i. Bathing soaps and washing soaps j. Textiles MAKING INROADS INTO THE HINTERLANDS. 21
  22. 22. RURAL ADVERTISING k. Ornaments and jewelry 2. Products that have entered the rural market in recent times: Toiletries, Cosmetics, Ready-made garments, Baby care products, Packaged food stuffs and Modern consumer durables 3. Consumer products where rural consumption is more than urban: PRODUCTS % SHARE OF RURAL MARKETS Bicycles 80 Safety Razors 6 Silk Clothing 59 Books and Stationary 55 Woollen Clothing 53 Consumer durables 53 4.Products where rural consumption growth rate is higher as compared to urban markets. a. Packaged tea b. Analgesic tablets c. Detergent powder d. Soaps cakes/bar e. Detergent cakes/bar Thus from the above information it is clear that rural market is fast expanding and it may soon overtake the urban market in all respects. MAKING INROADS INTO THE HINTERLANDS. 22
  23. 23. RURAL ADVERTISING ROLE OF ADVERTISING IN RURAL INDIA In India, the advertising is mostly in English or Hindi. As rural markets widen beyond the English-and-Hindi knowing people, there are problems of translation into the vernaculars. Good translations are seldom easy; and there is often the need for thinking out the advertising concepts and the brand image in the local language itself. This is a problem for local copywriters to conceptualize in the vernacular, where necessary. Advertising in the local language in the absence of shortage of professionals, makes success of rural advertising campaigns difficult. It is a general assumption of advertising theory that advertising helps to create demand. It may be worth saying to what extent advertising creates demand, particularly in our rural society, which is in transition from traditional to modernity and to what extent it helps only to accelerate demand after the social and environmental changes have taken place. The basic trends for demand of products are determined primarily by prevailing social and environmental conditions. Advertising itself serves not so much to increase the demand for a product as to speed up the expansion of demand that may come up from favourable conditions and to retard advances due to unfavourable conditions. Most rural marketers treat this as an almost insoluble problem, because other factors also stimulate demand for e.g. price cuts, quality changes and increasing real incomes. ‘We divert some resources from advertising to market research even at the risk of under advertising in rural areas’ This is essential because the basic marketing problem is the absence of elementary market research data individual rural areas. Individual fact, we do not know where we are going. Over planning leads to over-capitalization, from which it is very had to retreat. The five-year plans have been a classic exercise individual bad demand forecasting with sophisticated methods and poor data; and it has been compounded by business managements accepting national MAKING INROADS INTO THE HINTERLANDS. 23
  24. 24. RURAL ADVERTISING planning targets as gospel, without undertaking the responsibility of doing a measure of their own market research, which is an essential for rural markets individual India. The rural market information gap is wide enough to justify major collaboration between governments, universities, independent research organizations and business. There is very little appreciation of it as a primary investment need, its very precondition; and very little money is spent by too few on it. Advertising caters to rural society with divergent life-styles and value systems presented an unusual challenge between the strategy of homogenization (overcoming the barriers between segments), and one of heterogenisation (capitalsing the very existence of many small riches). This sort of advertising involves constraints individual in the form of cost duplication of facilities and fragmentation. In such areas, the basic objective of advertising and market research may be to find and develop products, which may cut across heterogeneous preferences with common brands and similar or common advertising. Our rural marketers should keep an eye on import substitution and upgrade raw materials on the basis of research and development before they can ensure that adequate raw materials reach the manufacturing areas for products which would then reach rural markets individual a steady flow and at relatively stable prices. Tourist advertising and motivation pose a most fascinating challenge to our country with its old culture. Foreign tourist can be attracted to rural areas where historical monuments, game sanctuaries, and mountain and sea resorts exist. Rural India is a set of regional markets where cultural factors play a very important role. The raw materials come from the soil; and the relatively low productivity of Indian farmers is reflected in the low purchasing power of the rural buyer. The rural advertising problem in a country like India is related to political, MAKING INROADS INTO THE HINTERLANDS. 24
  25. 25. RURAL ADVERTISING social and economic problems. With low income from farms the question that arises is: can we afford the infrastructure of mass media for rural markets? The Indian rural market is very heterogeneous. Nevertheless, public advertisement is an important prerequisite for the creation of demand. The problem of rural consumer in our country is that he is traditional; to some extent, there is homogeneity and there are high resistance and low resistance products among the rural buyers. Rural buyers show a great many contradictions; and the advertising man has to understand them. For example, the poor spend lavishly on marriages; in certain parts rigid caste systems still exist; the community is more contended with whatever little it has. Many preach non-violence and practice violence. For mass media men to motivate rural buyers to change their lifestyle is not therefore that easy. The concept of sufficiency is a hurdle to development and the problem of huge distances and inadequate outlets is quite considerable. Within a rural market, there are many mini markets based on caste, religion, language or other differences. All people living in an around these markets have distinctly different life-styles. The marketing men know that the cost of distribution increases as the town gets smaller and it is not economical to serve very small villages. Rural markets are no longer a sellers market now. Many people have underrated the strength of the market on the assumption that India’s rural poverty restricts rural purchases only to those items, which are basic necessities. This has turned out to be a myth now. The social status, needs, expenditure on weddings and entertainment, have influenced the operations of the rural markets. Many farmers travel to weekly markets to buy vegetables that they can themselves grow; but they go in order to have news, stimulation and for socialization. MAKING INROADS INTO THE HINTERLANDS. 25
  26. 26. RURAL ADVERTISING The bumper crops and the upturn in agricultural production have resulted in a considerable increase in the incomes of farmers and in their purchasing power. The increase in purchasing power in rural areas has generated vast potential markets for manufactured goods because the people want to raise their standard of living. New approaches must be evolved to awaken the rural population to the range of consumption possibilities open to them. Advertising and consumer research is essential for this purpose; for it must be determined not only what the villager wants but also what would motivate them to buy. Market research and consumer surveys are essential and should cover a fairly wide area of rural life, including the attitudes and aspirations of the rural buyer. In rural India the role that advertisement plays is major. It will enhance demand when favourable environment conditions have been created. Advertising does not create immediate demand. There is always an information gap. The biggest single advertising problem is the shortness of the reach of mass media. As our country is large, the problem is complex, for there is a huge potential rural market. There are not very many dailies in circulation; nor many a radio or transistor or a TV set. The mass media gap in India is as conspicuous as the income gap. Therefore, there is a need for extending basic infrastructure with a view to enlarging the reach of mass media in rural India. Hopefully, the electronic revolution will follow the green revolution in rural India. The different approaches to reach rural buyers which may be profitably utilised include mobile publicity- cum-sales stalls, sales and cinema vans, participation in rural fairs and festivals. MAKING INROADS INTO THE HINTERLANDS. 26
  27. 27. RURAL ADVERTISING The value of this direct personal propaganda and selling cannot be overestimated, especially in the rural markets. These are often a potent means of changing habits by means of real life demonstrations of the goodness of the product and its utility, and by the invaluable personal link established between the seller and the buyer. In rural markets, persuasion by the opinion-makers, by the “voice of authority” counts; product messages may be conveyed in print, by the cinema, or in person by teacher, doctor, shopkeeper or village headman. In rural areas, the effective approach to be employed to reach the buyers is to establish contacts with local educators who can influence them by word-of-mouth. Such local educators are government officials, Block Development and Extension Officers, and Village Pardhans and School Teachers. To the extent that traditional social institutions like the panchayats still influence social habits, particularly at the time of marriages and festivals, they can be useful instruments for mass changes in consumer habits. They are usually strongholds of tradition: but when the strongholds themselves change, the surrounding societies are quick to follow suit. This is particularly so when change comes to the culture center of a community, the center from which new ideas radiate. According to one study, though most people consider the tradition-directed leaders to be an impediment in the communication process to induce changes, this is not necessarily true. The change via such leaders may be slow; but they (the leaders) reduce the risks and uncertainties of its consequences. They also help to generate confidence in the slower and later adapters. Both styles, the progressive and the traditional, may play their roles; and it is for rural marketers to realize their possibilities. The study also indicates that the influence of opinion leaders in such non-mass media societies is largely confined to small social segments and the immediate neighborhood structures. A rapid development, therefore, calls for the earliest possible extension of the mass media, especially the radio and TV. MAKING INROADS INTO THE HINTERLANDS. 27
  28. 28. RURAL ADVERTISING The villagers are slightly hesitant about going to slightly smart looking shops. The relatively prosperous family generally becomes the trendsetter group in the village and they must initially receive the advertisers attention. Advertising research may focus on the sources of awareness in the rural sector-the influencing the villages. It must concentrate on determining the different influences the villages are exposed to, either in the village or his visits to the towns. A villager normally makes his household purchases from a nearby small town or a fair, but visits a district, town or a still larger market to fulfill his requirements of consumer durables. It would be useful to ascertain his motivation in selecting different markets for different purposes. Seasonality figures prominently rural buying habits on account of harvesting seasons, fairs, festivals, marriage, etc. these things should be plotted in advance for sales promotion and advertising information on the styles of rural buyers, his attitude towards processes durability and the incidence of impulse buying- these should be checked. The rural buyer in general is price conscious. Chester and sophisticated models of agricultural machinery, sewing machines etc, should therefore be more acceptable to rural consumer. The goods should be made available to the rural consumer at places that are more convenient to him. Ideally, it is desirable to get down to the village and combine the sales and advertising effort at that level. But practically this would be very difficult as selling cost would be very high if we allow this approach. To expand sales in rural markets, hire purchase facility should be extended. Effective after sales services should also be extended where a distributor/dealer has been appointed. Some incentives should be given to dealers to open bank accounts in nearby banking towns. MAKING INROADS INTO THE HINTERLANDS. 28
  29. 29. RURAL ADVERTISING Eighty percent of total population is in villages and about 60% of the national income comes from rural areas. There is an inequitable distribution of rural income amongst the rural folk. RURAL ADVERTISING: CURRENT SCENARIO There have been two schools of thought among Indian advertisers on rural advertising. The first school believed that products and marketing techniques, which worked in metro and urban areas, could be transplanted with little or no modifications to rural India. But the more sophisticated Indian advertisers, quickly perceiving certain very basic differences between town and country, inaugurated the second school: the belief that rural marketing required radically different skills and techniques from its urban counterpart. As a result of the swing of extremities, which naturally attends such realizations, several new beliefs have become popular: • The rural market offers a vast market for consumer goods. • The distribution task involves covering several lakh villages. • Low-priced products should be more successful in rural markets because of the per capita income in rural India. • Rural consumers form one homogenous group with similar needs, values and aspirations. MAKING INROADS INTO THE HINTERLANDS. 29 Videocon’s washer, a washing machine without a drier has been launched specifically for the rural areas at Rs8000 a piece. It has registered 100% growth over the past three years.
  30. 30. RURAL ADVERTISING • Advertising should be simple and unsophisticated and in terms of media, use local fairs, opinion leaders, etc., as opposed to press, film, radio and such other ‘urban-oriented’ media. This was deducted from the low media exposure figures for rural India. Underlying these beliefs has been the model of a rural consumer who is relatively poor and illiterate, whose only media exposure is the local opinion leader, who remembers brands by picture symbols as opposed to brand names, and who is unable to comprehend anything other than the most simple of commercial messages. The myth of the impoverished rural consumer seems to have some basis, considering the fact that the vast portion of the rural population spend less than Rs 43 per month. However assuming that as soon as the per capita expenditure reaches the level of Rs 100 per month, the consumers become of interest to the marketers of branded products, we see that more than half of such consumers are in rural areas. There are more rich consumers in rural India than in urban India There is no uniform pattern covering all villages. The structure of competition in rural India can be classified as follows: competition from other urban national brands, from regional brands, from unbranded urban products, from unbranded products of that village and finally indirect competition from substitutes. a) Other urban national branded products. In certain villages the proliferation of national brands is quiet evident. This more likely in villages which are on the periphery of larger towns because of the spill over from urban centres. There are exceptions to this: certain national brands have reached the remotest of villages perhaps because of the consistent efforts made by manufacturers through their marketing and advertising efforts; this is more striking in case of branded tea. MAKING INROADS INTO THE HINTERLANDS. 30
  31. 31. RURAL ADVERTISING b) Regional urban branded products. In some villages regional brands or brands of unorganized sector are quite common. This is so for soaps in north and south, detergent powders in Gujarat, and talc’s in Tamil Nadu and Kerala. c) Unbranded urban products. These products are manufactured at an urban centre and find their way into rural India through wholesale channels: they are commonly washing products, confectionery items, ribbons bangles etc. d) Unbranded products of village origin. These are products manufactured in village itself: the hardware of the village smith, the ropes made in the surrounding fields or the bread and food products made by local baker or sweetmeat maker. e) Substitutable products or indirect competition. A further classification can be made for competitive products, which can be substituted. Such products are ‘majaans’, neem twigs for the teeth where toothpaste have not yet entered, or soaps where synthetic detergents are not common. In villages which are around Banaras, villagers use the mud from the river- bed to wash their clothes and themselves too! Central to the current beliefs on rural advertising are as follows: a) Because of the low literacy level and for other reasons, the rural consumer has very low exposure to mass media (press, film, radio, outdoor) normally used in urban India: that communication in rural India must depend on ‘non-conventional media’ such as drama troupes, mime groups, personal communication, etc. MAKING INROADS INTO THE HINTERLANDS. 31
  32. 32. RURAL ADVERTISING b) Because of the lack of sophistication of the rural consumers the creative treatment must be kept ‘simple’, and depend on visual treatment more than on copy. Here again, it is worth examining these beliefs. The first one –that conventional urban style media are relatively useless for rural India- is so deeply rooted that many marketing executives are likely to be willing to even discuss it. This belief squares with our commonsense of the poor illiterate farmer. However, in the middle of all this conviction, let us stop for a moment and consider the following fact: though rural population as a whole are poor and illiterate, what about the rural consuming? As we already demonstrated, 20 to 30 of the rural household come in the affordability range of consumer branded products. What is the literacy/media exposure of this group, the main group of concern to marketers of branded consumer products? In any event, there is a strong case for examining more hard data on this issue. Similarly it is fairly obvious that the creative content of advertising would depend on the kind of competition. It is not all that certain that ‘simple’ messages focusing on brand names/ pack/products-use demonstrations are the most effective creative style. What is more likely is that the motivations in using branded products are no different in rural India. MAKING INROADS INTO THE HINTERLANDS. 32
  33. 33. RURAL ADVERTISING CONSTRAINTS IN MARKETING COMMUNICATION IN RURAL INDIA Marketing communication and promotion poses a lot of problems in rural India. There are many constraints emanating from the profile of the audience and the availability of media. The literacy rate among the rural consumers being low, the printed word has little use in the rural context. In addition to the low level of literacy, the tradition bound nature of rural people, their cultural barriers and taboos and their overall economic backwardness add to the difficulty of the communication task. The situation is further compounded by linguistic diversity. Rural communication has to necessarily be in the local language and idiom. The constraints of media further compound the difficulty. It has been estimated that all organized media put together can reach only 30% of the rural population of India. TV is an ideal medium for communicating with the rural masses. But its reach in rural areas is restricted even today. As regards the print media, the various publications reach only 18% of the rural population. Even in areas reached, the circulation is limited. The low literacy level of the rural population still acts as an inhibitor in the use of print media in rural communication. Cinema is relatively more accessible. It has been estimated that 33% of total cinema earnings in the country come from rural India. Rural communication has also become relatively more expensive. For rural communication to be effective, repeat exposures is a must; and if gap between exposures is long, the message losses its edge during this period. These factors make rural communication more expensive. Rural communication has to go through all the time consuming stages of creating awareness, altering attitudes and changing behaviour. In addition it also has to work against deep-rooted behaviour patterns. MAKING INROADS INTO THE HINTERLANDS. 33
  34. 34. RURAL ADVERTISING In short the crux of the marketing communication in the rural context is one of finding a media mix that will deliver the required message in a cost effectively with the rural target audience that is predominantly illiterate. MAKING INROADS INTO THE HINTERLANDS. 34
  35. 35. RURAL ADVERTISING OVERCOMING THE BARRIERS OF COMMUNICATION IN RURAL INDIA A company that seeks a long term presents in the rural market has to squarely encounter these constraints and find a way of communicating effectively with the rural target audience. Role of media in rural markets Media can be divided into two variables: 1. Traditional Media  Puppetry, dance-dramas, rural specific art forms like Harikatha and Villupatu preformed at village melas and temple festivals.  Study classes.  Mike announcements, processions.  Caparisoned elephants, decorated bullock carts carrying ad panels.  Music records.  Folk theatre.  Demonstration, house to house campaigns by special promotion Squads.  Hoats and Melas.  Information centres on company’s products.  Wall paintings  Posters  Agricultural Games  Postcards  Audio-visual vans or publicity vans MAKING INROADS INTO THE HINTERLANDS. 35
  36. 36. RURAL ADVERTISING 2. Mass Media  Television  Word of mouth  Radio  Cinema halls  POP,s  Press  Other print media Companies using Traditional Media • Brooke bond India Ltd. • HLL • Rajdoot • Bajaj • Nirma • Colgate Palmolive Companies using Mass Media • Onida • Videocon • HLL • Eveready Batteries • Eicher Tractors • RCF • Mahindra & Mahindra Tractors MAKING INROADS INTO THE HINTERLANDS. 36
  37. 37. RURAL ADVERTISING SELECTING THE MEDIA MIX: Evidently, in the rural context the firm has to choose a combination of formal and non-formal media. The possibilities are indicated below: THE FORMAL ORGANISED MEDIA Among the formal organized media TV, Radio, Cinema, POPS and Outdoors have a good scope in the rural context. TELEVISION: With the increase in coverage and increase in TV ownership in the rural areas, TV has become the primary media for communication to the rural masses. Studies reveal that has much has 77% of villages in India now receive TV transmission and 27% of all rural people actually watch TV. The main advantage of this medium is that, it is both spoken and visual. The TV viewership percentage varies from state to state. Television has proven advantageous in communicating with the rural people due to the low literacy levels. However while using this medium, the viewer ship habits of people needs to be taken into consideration.  HLL has been in the forefront in using TV to communicate with the rural masses. Lifebuoy, Lux, Fair and Lovely and Nihar oil are the products advertised via television. Most of the messages of National concern on Family Welfare and Literacy Campaign by the Government are telecast before the popular programmes with rural characters. RADIO: The radio is a well established medium in rural areas. As one of the oldest and potential media used for communication with farmers and for diffusing agricultural technology, radio has yielded significant results. A big expansion in the broadcasting facilities has taken place in the rural country over the years. The MAKING INROADS INTO THE HINTERLANDS. 37
  38. 38. RURAL ADVERTISING availability of radio sets has also expanded. Given the reasonable price of a transistor radio, it can be inferred that, most of the rural families own a radio set. While radio as a medium cannot match TV in potency and effectiveness, in its existing context, radio does have a role in rural communication. There are specific programmes for agriculturists like ‘Farm and Home Programme’ or ‘Krishi Darshan’ in all regional languages, which are broadcast on the primary channel. Thus the ownership pattern of radios in the rural areas has enabled regular listenership and its main advantage is, it is cost effective medium.  Colgate, Jyoti Laboratories, Zandu Balm, Juari Industries are some companies using radio for communication. Some of the agencies into radio advertising are as follows: Rediffusion (for Colgate), O & M (GE worldwide), Lintas (Juari Industries). CINEMA: The cinema is a useful medium in rural context. Most rural villages have one or more cinema halls. And 29% of all rural people do watch cinema as a matter of regular lifestyle and habit. Short feature films with disguised advertisements messages, direct advertisement films and documentaries that combine knowledge and advertisements, can be employed for rural communication. Cinemas are more popular medium in southern states like Tamil Nadu, Andhra Pradesh.  Thumps up telecast their commercials (Sunil Shetty and other commercials with popular celebrities) during cinemas. OUTDOORS: The outdoor also lend itself well to rural communication. In fact, currently many companies are using the outdoor medium imaginatively in their rural communication mix, through hoardings, wall paintings, illuminations and other displays in the rural areas. MAKING INROADS INTO THE HINTERLANDS. 38
  39. 39. RURAL ADVERTISING POP’s: The POP’s point of purchase (or point of sales) promotion tools are also quiet useful in the rural markets. The POP’s meant for rural market should be specially designed to suit the rural requirements. More than written words, symbols, pictures and colours should be used in POP’s meant for rural markets. Colour is of particular importance in the rural context. As a general rule rural people love bright colours. The effective communicator utilizes such cues. MAKING INROADS INTO THE HINTERLANDS. 39
  40. 40. RURAL ADVERTISING PRINT MEDIA: The relevance of print media for rural communication needs careful examination mainly because the literacy level is low in rural areas. Print media consist of a wide variety of items – Newspapers (dailies), periodicals (weeklies, monthlies) and also the literature. Pamphlets, booklet produced my manufacturers and marketing men. Vernacular periodicals and dailies are very popular in the southern states. Some of the regional newspapers used for advertising are as follows:  Maharashtra (Konkan, Ratnagiri) – Badiraja, Krushival  Kerala – Malayala Manorama  Tamil Nadu – Dina Thanthi MAKING INROADS INTO THE HINTERLANDS. 40
  41. 41. RURAL ADVERTISING MEDIA REACH STATISTICS The medium in the message" acquires critical importance for advertisers and marketers in India as different media have varying penetration levels. For example terrestrial TV has the highest penetration among all types of media with 78 per cent penetration in urban India and 36 per cent in rural India. It's reach is the highest in the 14 to 19 age group with 62 per cent. It has an astonishing 91 per cent penetration in urban Himachal Pradesh. In contrast satellite TV reaches only 13 per cent of India. The medium's highest penetration of 52 per cent is in urban Maharashtra. But in the rural parts of the MAKING INROADS INTO THE HINTERLANDS. 41
  42. 42. RURAL ADVERTISING state it has a penetration of a mere 4 per cent. Similarly in Assam and Orissa satellite TV reaches only 4 per cent of the population. Given the high literacy levels it is natural that print media has the highest penetration in Kerala. It reaches 76 per cent in urban Kerala and 65 per cent in rural parts of the state. Print media has the lowest reach in Assam with 11 per cent. DISADVANTAGE OF MASS MEDIA The Indian society is a complex social system with different castes, classes, creeds and tribes. The high rate of illiteracy added to the inadequacy of mass media impedes reach almost to 80% of India's population who reside in village. Mass media is too glamorous, interpersonal and unreliable in contrast with the familiar performance of traditional artist whom the villager could not only see and hear, but even touch. Besides this villagers are more conservative buyers then their urban counterparts. Their desire to innovate with new product is restricted. NON-FORMAL/RURAL SPECIFIC MEDIA Rural specific media can be used to reach these people in the marketing of new concept. The rural specific media with its effective reach, powerful input and personalized communication system will help in realizing the goal. Besides this MAKING INROADS INTO THE HINTERLANDS. 42
  43. 43. RURAL ADVERTISING when the advertisement is couched in entertainment it goes down easily with the villager. Advantages of rural specific media : - The accessibility is high. - Involves more then one sense. - Interest arousal capability is high. - Less operational liability Minimum cost. A variety of non-formal media have been developed over the years by rural marketing firms to meet the specific requirements of rural communication. Some of them are interpersonal media and others are mass media. The more popular ones among them are: AUDIO VISUAL PUBLICITY VANS The A/V unit or the publicity van is very useful for rural communication. The van is a comprehensive mobile promotion station at the exclusive command of the concerned firm. The firm can exhibit its films and other audio visual presentations such as slide shows, sound and sight presentations, puppet shows etc. from this instant promotion station. A portable shamiana or platform can be carried in the van and can be used as a stage. Even mini public meetings can be organized using the shamiana. Portable exhibition kits can be carried in the van and exhibitions put up instantly. The van can also be used for sales campaigns in addition to promotion campaigns. It can also be used for other product demonstrations. In short the van has all the advantages of carrying and delivering a tailor-made communication program for the chosen target audience. MAKING INROADS INTO THE HINTERLANDS. 43 Nike is easily available in places like Chiplun, Ratnagiri, Jalgaon and Bariely, even though the price range is Rs5200-5900.
  44. 44. RURAL ADVERTISING Naturally, the A/V vans are quite popular with rural marketing firms. Practically all the firms in agri-inputs business have their own A/V vans all over their respective marketing territories. Firms marketing consumer softs come second in the use of AV vans. Firms marketing consumer durables come third. In the third category the efforts of Phillips India deserves a special mention. Phillips India has very successfully used the AV vans for popularizing their radios in rural markets. While the AV vans are very effective tools in rural promotion, the cost is high as the target population is scattered. The cost of reaching an individual customer or prospect through the van works out to be very high. In the early stages of market development, in particular, the sales generated may not have any relationship with the cost involved in extensive use of AV vans. But in view of its effectiveness, big companies with resources make a conscious decision to use the vans as a long-term market development tool. SYNDICATED AUDIO VISUAL VANS In recent years, rural publicity vans have become a purchasable service. Firms that cannot afford to operate publicity vans of their own can utilize the syndicated AV vans service offered by independent agencies.  The Joint Publicity Committee of the nationalised banks started rural advertising through vans in the early '90s. They would make an announcement in the village about a show of some religious and holy films in the local language and in between the message would be carried to the audience. MAKING INROADS INTO THE HINTERLANDS. 44
  45. 45. RURAL ADVERTISING  Vidoecon used van demos along with audio visual aids to promote its black and white colour TV. And its washing machine “Washer”. In addition their mechanics take a round of the villages twice a week to assure the villagers of after-sales service, an important component of consumer durables. The company employs 1,800 engineers and mechanics for this purpose.  Even Ondia uses Demonstration on vans to promote its television. When it goes to rural areas to promote its product, on both the sides of the van a huge cut out of their mascot “the Devil “ is put. This attracts the children and others towards the van. Then a 40 – 45 min educative commercial is run to promotevthevproduct. MUSIC RECORDS, HARIKATHA, ETC Music cassettes and records is another effective medium for rural communication. It is an appealing medium. One complete language group can be reached on a low budget through specially developed cassettes or records. They can be played in cinema houses or in other places where rural people assemble. Popular entertainment programmes like puppet shows, dance dramas, Villupattu and Harikathas specially developed for product promotion purpose are now being used in rural markets. These traditional art forms readily render themselves for communication in rural society. Sales messages can be beautifully blended with folklore to capture the imaginations of the rural audiences. Village fairs, festivals and ‘melas’ are ideal venues for projecting these programmes. In certain context public meetings are also useful for promotion in rural context. MAKING INROADS INTO THE HINTERLANDS. 45 French cheese ‘The Laughing Cow’ is planning a major thrust in mini metros and rural areas within a month of its national launch.
  46. 46. RURAL ADVERTISING PUPPETRY Puppetry is the indigenous theatre of India. From time immortal it has been the most popular form and well-appreciated form of entertainment available to the village people. It is an inexpensive activity. The manipulator uses the puppets as a medium to express and communicate ideas, values and social messages. The companies can develop a story line relating to the brand and show the characters using the brands to their advantage. The dresses of the characters could be those of the brand's packaging. Types of Puppet theatre in India Contents String puppets or Kathputlis of Rajasthan Heroic deeds of Vikramaditya, Prithviraj Chouhan, Amar Singh Rathore String puppets of Orissa Radha-Krishna Rod puppets from Bengal Mahabharat, Manas , Radha-Krishna String and Rod puppets of the south (Tanjavur, Madras and Andhra) Kathakali Shadow puppets of Orissa , Kerala, Andhra, Karnataka Ramayana.  Thus in rural India puppetry is a source of livelihood, avenue for entertainment and creative expression which is ritually sacred and meaningful as a means of social communication and vehicle of social transformation. Song and Drama Division of the Government Of India makes wide use of puppets in its campaigns to promote various government projects. Several other MAKING INROADS INTO THE HINTERLANDS. 46
  47. 47. RURAL ADVERTISING organizations, government, semi-government and private, have also used puppets in support of individual schemes.  Life Insurance Corporation of India used puppets to educate rural masses about Life Insurance; enlisting the help of the literacy house in Lucknow.  These plays were shown to the audience in villages in UP, Bihar, & MP. The number of inquires at local Life Insurance Companies during the period immediately following the performance was compared with normal frequency and found to be considerable higher. The field staff of the corporation also reported a definite impact on the business.  Thumps Up is another company that has used puppetry to promote its soft drink. The shows comprises of puppets of Thumps Up and other rival soft drinks. The thump up puppet comes and strikes down the other soft drinks thus reinforcing its slogan “taste the thunder”. Indian Institute of mass communication, N.Delhi made a study of comparative impact of puppetry and documentary films, in two villages near Delhi. People in both the villages responded more favorably to the puppet shows then the films. FOLK THEATRE Folk theaters are mainly short and rhythmic in form. The simple tunes help in informing and educating the people in informal and interesting manner. It has been used as an effective medium for social protest against injustice, exploitation and oppression.  Folk songs have been effectively used during revolts of Telangana and Naxalbari and now a days it's best exploiters are Political Parties. - Government has used this media for popularizing improved variety of seeds, agricultural implements, fertilizer etc.  Punjab Agricultural University produced Two Audio Cassettes. MAKING INROADS INTO THE HINTERLANDS. 47
  48. 48. RURAL ADVERTISING  Balliye Kanak Biye - Wheat Cultivation. B) Khiran Kepah Narme - Cotton Cultivation. Both were well received by farmers. BBLIL used Magician and skits quite effectively for launch of Kadak ChhapTea in Etawah.  The folk media such as Ragini in Haryana for communicating qualities of Virat cement, pala and daskathia in Orissa for promoting safe electricity consumption and toothpaste of Colgate Palmolive and Baul songs in West Bengal to advertise insecticides. STATES Folk Theater / Songs Forms In India Andhra Pradesh Veethi Natakam, Kuchupudi, Burratatha Assam Ankiya Nat, Kirtania Natak, Ojapali Bihar : Bidesia, Serikela Chhau, Jat-Jatni Bidpada, Ramkhelia Gujarat Bhavai Haryana Swang, Naqqal Himachal Pradesh Kariyala, Bhagat, Ras, Jhanki, Harnatra Haran or Harin. Jammu & Kashmir Bhand Pathar or Bhand Jashna, Vetal Dhamali Karnataka : Yakshagan, Sanata , Doddata-Bayalata,Tala Maddle or Prasang,Dasarata,Radhna. Kerala Kodiyattam,Mudiattam,Therayattam,Chavittu Natakam, Chakiyar Kooth, Kathakali Madhya Pradesh Maanch, Nacha Orissa Pala Jatra, Daskathia, Chhau Mayurbhanj, Mangal Ras, Sowang Punjab Nautanki, Naqaal, Swang Rajasthan Khyal, Rasdhari, Rammat, Turra Kilangi, Gauri, Nautanki, Jhamtara Tamilnadu Therukuttu, Veethi Natakam, Bhagwat Mela Natakam, MAKING INROADS INTO THE HINTERLANDS. 48
  49. 49. RURAL ADVERTISING Kurvaanji, Pagal Vasham, Kavadi Chindu Uttar Pradesh Ram Leela, Ras Leela, Nautanki, Bhagat, Sang-Swang, Naqqual Maharashtra : Tamasha, Lalit Bharud, Gondha, Dashavatar INTERPERSONAL MEDIA Interpersonal media have a special merit in rural context as they facilitate two-way communication/interaction. They also bring market feed back to the firm. In many cases rural people prefer face-to-face communication to mass communication. Their confidence in the product the firm and their goodwill towards the firm becomes stronger through interpersonal approach. Interpersonal media have their unique advantages; they are segment specific, market specific and score high when it comes to involvement and participation of the audience. In the effort to reach out and go beyond them mass media, a firm can establish contact with the audience through fairs and festivals, folk performances and other special events. These points of contact also provide multimedia opportunities. For example at any fair various media like audio, audio-visual and interpersonal communication should be used. Group meetings, Demonstrations, and House-To-House Campaigns Group meetings of customers and prospects are important components of interpersonal media. The sales man or the promotion staff of the firm can effectively carry the product messages to the target audience at these meetings. House to house campaign constitutes a handy tool in the rural market. In these campaigns, small squads of staff or persons specially hired for specific promotion make house-to-house visits in the rural areas. Several independent teams may be at work at the same time in different parts of the village. The teams usually carry with them product promotion literature/handouts/product samples, etc. MAKING INROADS INTO THE HINTERLANDS. 49
  50. 50. RURAL ADVERTISING These campaigns are different from door to door selling campaigns. The promotion squads do not engage in the selling job, they only propagate the product. As companies may normally find it difficult to spare their own staff of such elaborate and time consuming work, they may hire the required people on daily wage basis, train them briefly and use them under the supervision of the company staff. In demonstrations, help of audio -visual media can add value The five steps to make any demonstration effective are below: - Information about people - Objectives to be accomplished - Demonstration plan & Execution of the plan - Evaluation of the demonstration - Reconsideration after evaluation. Opinion Leaders Rural consumers place more emphasis on the experience of others who have used the brands to make their purchase decision. Opinion leader in rural area can be defined as a person who is considered to be knowledgeable and is consulted by others and his advice is normally followed. Opinion leaders could be big landlords, teachers, social workers etc. They become important especially in the marketing of consumer durables.  Asian Paints promoted its Utsav range of paints by painting Mukhiya's house or Post office 6 months prior to the launch of the paint to demonstrate that paint does not peel off.  For propagating ‘Surf’, HLL brought out a rural specific film, where they took particular care to demonstrate step by step method of washing with Surf to get the best whitening effect. They knew that an elaborate demonstration was essential for the rural audience.  Reckitt and Colemen, Colgate and Samsung uses NGO's in rural areas to educate customers about product benefits. Colgate with the help of NGO’s MAKING INROADS INTO THE HINTERLANDS. 50
  51. 51. RURAL ADVERTISING carry out free dental check up camps where literature on dental care (in local language), and oral care products are distributed.  Mahindra Tractors use bankers as opinion leaders or influencers for their prouduct.  HLL’S ‘Operation Bharat’ is largest sampling exercises in recent times. Before Phase- I of Operation Bharat, HLL was present in about 9 million households in rural India. Operation Bharat introduced it to another 16 million households. With 30 per cent of these coming back to Lever, it’s now bought 3.6 million more households into its fold. And the gains are evident in Lever’s topline too. On the back of rural growth, the PPD’s sales grew from Rs 884 crore in 1997 to Rs 1,526 crore in 1998. The division now contributes 17 per cent to HLL’s turnover, up from 11 per cent in 1997. The countries oldest tradition holds the key to solving the rural marketing problems. The mobile supermarkets of rural India – Haats/ Melas/ Shandies. HAATS AND MELAS MAKING INROADS INTO THE HINTERLANDS. 51
  52. 52. RURAL ADVERTISING WHY MELAS ?  Over 25000 Melas and 47000 Haats are held annually  Annual sales at Melas amount to Rs. 3,500 Crore  More than 10000 melas draw visitors from all over India  Half the outlets at Melas are for manufactured goods  Melas organised after harvest season, so the villager has enough money to spend. Demonstration at Haat is essential to convert customers at haats since their aptitude is far more utilitarian than that of visitors to a fair. Through this arrangement they can break the saddle of scant geographical distribution of customers in rural markets as people of number of villages assemble to participate in the fair. It is a good ground for building brand awareness, trial sales and sampling. It provides a wider audience at a fairly low cost. Companies such as Hindustan Lever, Titan and Colgate Palmolive use occasions such as Rath Yatra, Kumbh Mela and Onam for brand promotion. These companies are following a typical media schedule and are always in a march from one place to the other with the festival calendar and a collapsible arrangement of the exhibition set-up. MAKING INROADS INTO THE HINTERLANDS. 52
  53. 53. RURAL ADVERTISING  KUMBH MELA – A classic example of effective rural specific marketing. The Kumbh Mela 2001-which is offering a 7.5 crore consumer attraction opportunity-is being exploited to the fullest by FMCG majors like Hindustan Lever Ltd (HLL), Colgate-Palmolive (India) Ltd, Coca Cola, Pepsi Co., Marico Industries, Godrej Soaps, Britannia Industries and Dabur to promote mass- appeal brands. While official estimates on the total expenditure are not available, industry analysts estimate the promotional expenditure among the FMCG majors to be in the range of Rs 5-7 crore. Be it hoardings, stalls, film sponsorships or kundali branding, POPs, mass media, and even new product launches, brand promotions are visible all over the place to woo the captive audience over the next 40 days. Soft drinks major Pepsi Co, for one, has tied up with UP Tourism and the various food stalls and restaurants to quench the thirst of all and sundry. But more than just a window for sales, the Kumbh Mela is turning out to be a platform for strategy. In tune with the spirit of the mega event, HLL is using this opportunity to change hand-washing and bathing habits in rural IndiaThe Mahakumbh at Allahabad is MAKING INROADS INTO THE HINTERLANDS. 53
  54. 54. RURAL ADVERTISING the biggest mela in India and, with its focus on `cleansing' is a good fit for the `Lifebuoy for health' message of the brand," Even though Lifebuoy is not using mass media for this promotion, innovative communication tools are being used at the mela to communicate the importance of health and hygiene. "Large-scale activity has been initiated to explain to the assembled masses the importance of hand-washing in basic hygiene. The company has put up 14 stalls at various points in the mela grounds. Some hand-carts have also been deployed for increasing access. The numbers of both may be increased based on response. ``The activity aims to build awareness in the target audience about hygiene and health through product demonstrations," the spokesperson said. Colgate-Palmolive is concentrating on promoting its products, mainly through ground activities. The products include the flagship brand, Colgate Dental Cream, Colgate Cibaca Top, ZigZag toothbrush, Colgate Super Flex, Palmolive Naturals range and Colgate Herbal. Balloon blow-ups is one popular mode which is being used to advertise the brands. Dabur India too sees a major marketing opportunity at the on-going Kumbh Mela. Apart from using outdoor advertising media such as hoardings and hotair balloons, the company is actively promoting its 400-strong product portfolio at its 40ft by 15 ft stall in the commercial area of the venue. To attract consumers, an Ayurvedic physician has been deputed to provide free consultation at the stall. As companies are not allowed to open shop in the main arena, Dabur has also employed about 30 `jumpboys' who mingle along with the crowd and hence are the walking window shops for the company. These boys carry Dabur's smaller SKUs such as Hajmola sachets or Pudinhara sachets in trays and also have a audio player which runs jingles of various Dabur products. ``The idea behind this initiative is to reach out to the audience rather than wait for them to come to the MAKING INROADS INTO THE HINTERLANDS. 54
  55. 55. RURAL ADVERTISING stall,'' says a Dabur source. Dabur will also air about 12,000 commercials on the 15-video walls placed at the mela during the length of the festival. Titan adopting a railway station during the Kumbh Mela helped them to generate a high brand recall. WALL PAINTINGS Wall Paintings are an effective and economical medium for advertising in rural areas. They are silent unlike traditional theatre .A speech or film comes to an end, but wall painting stays as long as the weather allows it to. Retailer normally welcomes paintings of their shops, walls, and name boards. Since it makes the shop look cleaner and better. Their shops look alluring and stand out among other outlets. Besides rural households shopkeepers and panchayats do not except any payment, for their wall to be painted with product messages. To get one's wall painted with the product messages is seemed as a status symbol. The greatest advantage of the medium is the power of the picture completed with its local touch. The images used have a strong emotional association with the surrounding, a feat impossible for even a moving visual medium like television which must use general image to cater to greatest number of viewers. A good wall painting must meet some criteria to generate awareness and remind consumer about the brand. THE WALL SHOULD BE: 1) The most frequented shops can be painted from inside also one feet above the ground level. 2) It is courteous to take the verbal permission of owner .The permission is normally given. However by taking the permission of the rural retailers or house owners, one gets the owner morally committed to taking care of wall painting. 3) The message should be simple, direct and clear. MAKING INROADS INTO THE HINTERLANDS. 55
  56. 56. RURAL ADVERTISING 4) A definite way of arresting is to use bright colors and these do not fade away easily. A good paint will survive the ravages of dust, sand and rainstorms for about three years. 5) Paintings must be taken after rainfall. 6) It should be peaked up during the festival and post harvest season. To derive maximum mileage their usage needs to be planned meticulously. MAKING INROADS INTO THE HINTERLANDS. 56
  57. 57. RURAL ADVERTISING  To attract rural buyers advertisers use simple films showing how a product is to be used. Rajdoot Paints issues such functional advertising very effectively. A company has to keep in mind religion, festivals and local sentiments.  While Nirma makes extensive use of wall paintings, a soil conditioner called Terracare uses images of Sita, Luv and Kush to attract the rural consumer.  Companies like Coke, Pepsi, agricultural implement companies HMT tractors, TAFE also use wall paintings. However the company that has very widely used this medium in Thumps up. POSTERS AND STICKERS Posters are a short-term promotional media because the maximum life of a poster on the walls in one day. This medium is usually used during the launch of a product.  Seed companies like Nath Seeds, Mahyco and FMCg like HLL use this strategy.  There is an example in innovative media which was used by HLL to push products in personal wash like Lux and Lifebuoy and fabric wash items like Rin and Wheel. For both, washing and for taking bath - one requires water. Now for rural markets there are three sources of water - wells, handpumps and ponds. For the first in the history of advertising - these were branded. Special stickers were put on the handpumps, the walls of the wells were lined with advertising tiles and tinplates were put on all the trees surrounding the ponds. The idea was to advertise not only at the point of purchase but also at the time of consumption. So the customer could also see the advertising when he was bathing or washing. Now, the customers who bought these brands got a sense of satisfaction by seeing their choice being advertised in these places while a question was put in the minds of the customers who had bought other brands. MAKING INROADS INTO THE HINTERLANDS. 57
  58. 58. RURAL ADVERTISING OTHER RURAL SPECIFIC MEDIA POSTCARDS The extensive network of post throughout the country can be used as an alternative vehicle for brand promotion in the rural areas. Postbox’s, post office walls and the post cards carry the logo and brand names of companies.  Videocon was the first company to use this strategy. LIC is another company that has adopted this strategy. AGRICULTURAL GAMES The ad agencies design various games and competitions in which the rural masses participate. The winners are then awarded the companies product. Following are some of the agricultural games organized:  Rajdoot organizes wrestling competition for the villagers, in which one of the wrestler brought by them. The other one is a villager. The winner get to test ride their bikes. The wrestling is a symbol of their products USP i.e ruggedness.  Philips conducts jigsaw puzzle games consisting of their logo and punch line “Lets make things better “ usually for the youth to create brand awareness. The winner is given a Philips transistor. Other Rural Media The extensive network of postal and medical workers throughout the country can be used as an alternative vehicle for brand promotion in the rural areas. The days are not far off when the postbox, post office walls and the postman's uniform will carry the logo and brand names of companies and the walls of the rural primary health centres and schools will be covered by suitable brand advertising catering to the taste of the rural target market. Once this innovation of MAKING INROADS INTO THE HINTERLANDS. 58
  59. 59. RURAL ADVERTISING reaching markets through alternative cost effective media starts, rural consumption will go high making it potentially more attractive than the urban market. DISADVANTAGES OF TRADITIONAL MEDIA * Range of mode choice is narrow. * Potential for cognitive gain retention is possible but restricted. * Depends on the skill of the performer, but for optimum effect all elements in the rural communication system will have to be orcheastered into a united whole. * Extensive research of each and every village is needed. MAKING INROADS INTO THE HINTERLANDS. 59
  60. 60. RURAL ADVERTISING MAKING INROADS INTO THE HINTERLANDS. 60 LG expects 40% of it’s colour television sales to come from rural markets. The company has priced it’s colour television’s in the range of Rs10,000-Rs60,000 for sizes ranging from 14” to 29”. Washing machine are priced from Rs 20,000 to Rs37,000 and refrigerators from Rs 27,000 to Rs 60,000.
  61. 61. RURAL ADVERTISING COMPANIES WHICH HAVE USED TRADITIONAL MEDIA EFFECTIVELY The Strategy: Dabur address the rural marketing for its Gripewater to both men and women. The Lesson: Rural women make the decisions .Its the men who buy. The Strategy: Reckitt and Colemen uses NGO's in rural areas to educate customers about product benefits. The Lesson: Establishes one to one communication channels. The Strategy: BBLIL markets its rural brands through magic shows and skits. The Lesson: Use local idioms to convey your message in a meaningful context. The Strategy: Hero Honda has established mobile service centers to take care of rural customers. The Lesson: Reinforce product quality through service indicators. MAKING INROADS INTO THE HINTERLANDS. 61Improved rural distribution system has helped Godrej consumer products achieve a distribution reach of more than a million retail outlets for its brands, Cintol Fresh toilet soaps and Godrej Powder Hair Dye sachet and also increase overall distribution for its key brands by 20-30 percent since September 2000.
  62. 62. RURAL ADVERTISING RURAL ADVERTISING CASE STUDIES COCA – COLA INDIA The Coca-Cola Company is the global soft-drink industry leader, with world headquarters in Atlanta, Georgia. The Company and its subsidiaries employ nearly 30,000 people around the world. Syrups, concentrates and beverage bases for Coca-Cola, the Company's flagship brand, and over 160 other Company soft-drink brands are manufactured and sold by The Coca-Cola Company and its subsidiaries in nearly 200 countries around the world. During the past decade, the Coca-Cola system has invested more than US$ 1 billion in India. Coca-Cola is one of the country's top international investors. In 2003, Coca-Cola India pledged to invest a further US$100 million in its operations. Coca-Cola business system directly employs approximately 6,000 local people in India. In India, it indirectly create employment for more than 125,000 people in related industries through our vast procurement, supply and distribution system. Virtually all the goods and services required to produce and market Coca-Cola locally are made in India. The Coca-Cola system in India comprises 27 wholly-owned company-owned bottling operations and another 17 franchisee-owned bottling operations. A network of 29 contract-packers also manufactures a range of products for the Company. The complexity of the Indian market is reflected in the distribution fleet, which includes 10-tonne trucks, open-bay three-wheelers that can navigate the narrow alleyways of Indian cities, and trademarked tricycles and pushcarts. The Company ranking up "firsts" in the introduction of Canned and PET soft drinks, vending machines and backpack dispensers for crowds of cricket supporters. MAKING INROADS INTO THE HINTERLANDS. 62
  63. 63. RURAL ADVERTISING A common trend that is seen in the promotional advertisement campaigns of soft drinks, is the presence of popular film stars and celebrities – right from Amitabh Bacchan, Sachin Tendulkar, Shahrukh Khan for Pepsi, Hritik Roshan, Aamir Khan, Aishwarya Rai, Sunil Gavaskar for Coca-Cola, Salman Khan, Sushmita Sen for Thumps-Up to sonali Bendre for Limca, the trend continues. This is probably because the Indian consumers are very influenced by film stars and are big cricket fans and marketers still prefer to rely on building top-of-the-mind advertising. Also, most marketing people tend to get evaluated on parameters like brand noticeablity and brand preference. That is why most of them eventually fall back on celebrity driven advertising, which quickly improves noticeablity. As 30% of Coca-Cola’s sales comes from the rural markets where the potential for growth is still high compared with a relatively saturated urban market, the company wanted a separate rural strategy, hence the Aamir Khan-featured commercial “ Thanda Matlab Coca-Cola” ( a campaign that immediately provoked a retaliatory campaign from pepsi staring Rahul Khanna and Fardeen Khan ). The “Thanda….” campaign was conceived during a brainstorming session when someone pointed out that “thanda” (cold) is the soft term for soft MAKING INROADS INTO THE HINTERLANDS. 63
  64. 64. RURAL ADVERTISING drinks in local paralance – especially in the rural and moffusil areas. This campaign intends to push the recently introduced 200ml Coca-Cola pack which is increasingly becoming accepted in rural areas. Coca-Cola has however undertaken a different set of advertising campaigns in the Southern market ( as the south is a big cola market ). The four southern states are in really different countries. For example there is a promotion going in the North which will start soon, it will not be implemented in Tamil Nadu or Kerala where they will have their own promotions. The things that work well in the rest of the country do not work well in Tamil Nadu, Kerala or Andhra. For example when they did tie-ups with movies like Hum Saath Saath Hain and Kaho Na Pyar Hai, starring big names from Bollywood they didn’t do well in Tamil nadu nd all the activities they did around these movies, also didn’t fare well. The people here do not relate to these stars. In Tamil Nadu it is always believed that movies and music have a large following. The trend is similar throughout the country, but accentuated more in Tamil Nadu. If you take the case of Vijay, when Coca-Coal finished the ad, many of his fan clubs came and took his Coca-Cola posters to be displayed at vantage places in and around theatres screening his recent movies. MAKING INROADS INTO THE HINTERLANDS. 64
  65. 65. RURAL ADVERTISING CASE STUDY II TATA SALT Tata Chemicals’ salt story began in 1983, when it needed fresh water for the boilers that produced soda ash at its Mithapur plant. Fresh water was scarce, so the company set up a process to generate it by using seawater, a freely available resource. Salt, of high quality and purity, was a by-product. Both UNICEF and the Indian government were promoting the intake of iodine for health reasons. ‘Salt is the most economical and convenient dietary vehicle for iodine consumption’. Hence, these factors led Tata Chemicals to take up salt production. Ever since its launch in 1983, Tata Salt has been synonymous with iodized salt in India. The positioning statement used earlier was ‘Namak ho Tata ka, Tata namak’." The communication was built around the fact that Tata Salt, India’s first iodized salt, was manufactured by a Tata company. Tata appreciated that in order to sustain a competitive advantage over a long period of time, what is needed is for the consumer to perceive the company to be different from others. The best way to differentiate is to connect with the consumer at an emotional level. The challenge was to take purity, a rational product benefit, and create an emotional link with the consumers. A new agency, Bates India, was chosen to work on the communication. A strong fact that emerged from the research was that consumers were troubled about the gradual erosion of nation’s value system. Another factor was that salt is deeply rooted in grassroots values. MAKING INROADS INTO THE HINTERLANDS. 65
  66. 66. RURAL ADVERTISING Tata salt spends about 15-18% of their sales revenue on promotion. The promotional strategy used by Tata salt is Pull Strategy. It is based on the Brand equity appeal and Tata brand name. “Tata Salt” is India’s fourth most trusted brand. This was highlighted by the study of reputed Market Research Agency A.C. Neilson. Tata Group follows the policy to give returns to the nation. Therefore, along with the ‘Desh Ka Namak’ ad they came out with the ‘Desh Ko Arpan’ programme last year in 2002. The company decided to contribute 10 paise on every packet of Tata Salt which is sold between August 15 and September 15’ 2003 and also January – February ‘2004, towards the education of deprived girl children. The ‘Desh Ko Arpan’ programme encouraged ordinary individuals to make a difference. Over Rs 35 lakh was collected in 2002 and given to Child Relief and You through this initiative. The Promotional tools adopted by the company include advertising and sales promotion. Advertising: The amount spent on advertising accounts for 7 to 8% of the sales revenue. They use mass media communication like Television Ads, Print Ads, etc. Print Ads: MAKING INROADS INTO THE HINTERLANDS. 66
  67. 67. RURAL ADVERTISING They are printed in regional language newspaper and in the magazines in the regional language. Like, The ‘Desh Ko Arpan’ Programme is been promoted through print media advertisements in 5 regional languages (Hindi, Marathi, Bengali, Tamil and Telugu). Media Vehicles Conventional Media- (a) Television: For rural market they don’t have a separate advertisement but they play the same advertise in the regional language. Doordarshan- Tata Salt’s around 40% reach is because of its advertisements on Doordarshan. It also advertises on Star Plus, NDTV, etc. Regional Channels like- Alfa, Sun, Surya, etc. depending upon the State Language. MAKING INROADS INTO THE HINTERLANDS. 67
  68. 68. RURAL ADVERTISING (b) Wall paintings: They also communicate to rural market through the wall paintings in Haats. Urban consumers shop daily and have 365 opportunities a year to switch brands while the rural purchasers who buy their goods in weekly haats have only 54. Considering this Tata Salt makes ultimate use of this opportunity to educate the customers about the product. (c) Video on Wheels: Tata Salt uses van marketing to reach the satellite villages. Non-Conventional Media- Kalnirnaya: Tata Salt advertises on Kalnirnay Calendars which are printed in 8 languages. Out of the 1.2 crores calendars issued, 50 lakh are sold in Maharashtra. This advertising is a reminder to the consumer of the Brand- Tata Salt which is in its Maturity stage. CASE STUDY III COLGATE Colgate Polmolive (India) Ltd.(CPIL), a wholly owned subsidiary of Colgate Polmolive Company, US and a leading FMCG company in India is engaged in oral care and personal care business. CPIL incorporated in 1937 as a wholly-owned subsidiary of its US parent was forced to offload 60% of its equity in compliance with FERA. But with policy change allowing 100% FDI in industry the parent company has again hiked its stake to 51% Oral Care Business CPIL market leader in (he oral care business in India offers wide range scientifically proven oral care products (with multiple benefits) i.e. toothpaste, toothpowders, and toothbrushes at various price points under its flagship brand “Colgate”. The company dominates the Rs.1000 crore Indian toothpaste market by commanding 50% of the market share. MAKING INROADS INTO THE HINTERLANDS. 68
  69. 69. RURAL ADVERTISING The umbrella oraleare brand of the company ‘Colgate’ is a very popular name in the Indian household and has a good brand loyalty. The company has launched more variants apart from the flagship brand Colgate Dental Cream like Colgate Herbal Toothpaste, Colgate Fresh Energy Gel and was well received in the market backed by aggressive promotions like ‘Talk to Me’ campaign for ‘Colgate Fresh Energy Gel’ The company also markets its tooth brushes under the umbrella brand ‘Colgate’. The recent launch in this segment is Colgate Navigator toothbrush. In June 2001, CPIL rolled out in India, Colgate Actibrush, an imported battery-powered toothbrush at a price of Rs. 999, It will be available at select outlets. Will) this launch, the toothbrush market of India is now segmented into manual and battery operated. Personal Care Business CPIL which owns world renowned personal care brand ‘Polmolive’ is also a significant player in the Indian personal care business by its offering of an array of bath soaps, liquid hand washers, Shave preps and Skin care products. The Palmolive Shaving Cream is a Market leader in its segment. PALMOLIVE used mostly television and radio for the purpose of promotion lather than cinema and print media. Because literacy level is low and frequency level of audience in cinema theater is also low. MAKING INROADS INTO THE HINTERLANDS. 69
  70. 70. RURAL ADVERTISING PALMOLIVE used other means of mass media such as hoardings, wall paintings, posters, banners, gift schemes and jathras & melas for the purpose of promotion. PALMOLIVE also runs special campaigns during crop harvest and marketing seasons. It is beneficial lo take up special campaign in rural areas in these periods. Appropriate timing of these campaigns is more important since the promotion should not only result in awareness but also in adoption and purchases. First a decision has to be made with regards to the product and then the brand choice has to be made. In such cases personal selling and opinion leaders play a major role. PALMOLIVE promotes their product through opinion leaders. One of the important Promotion Strategies was to launch campaigns and programmes mainly on the awareness & diseases caused due to bad teeth. Colgate did it with Rs. 8 crore ‘Operation Jagruti’ -an awareness programme & strong distribution network. Network of super stockist & rural stockist helped to the reach over 55000 villages. MAKING INROADS INTO THE HINTERLANDS. 70
  71. 71. RURAL ADVERTISING CASE STUDY IV CASPER Tainwala has carved a niche in human hearts by providing protection and comfort. The buzz of mosquitoes changes ZZZ of sleep as Tainwala switches on a world of protection for you and your loved ones. That’s the power of CASPER – world’s largest range of mosquito repellents which comprises of coil, mat. Liquid Vaporiser and wide models of machines. Tainwala pioneered the concept of wet MAKING INROADS INTO THE HINTERLANDS. 71

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