Rural Marketing

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By Rv Rajan
is an Advertising professional with over 45 Years experience, out of which he have been associated with Rural Marketing and Communication for over 35 years.Hes now the Chairman, Anugrah-Madison Advertising, Chennai

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Rural Marketing

  1. 1. Rural Marketing Some Insights By R V RajanAnugrah Madison Advertising P Ltd. 3.3.2010
  2. 2. Why go Rural?• Proliferation of brands in urban• High saturation levels in urban• Greater awareness of brands in rural• Ever-growing aspirations in rural• No effects of slow down on rural markets !
  3. 3. Government Spending in Rural
  4. 4. • ALL RESULTING IN FARMERS INCOME RISING• Tremendous opportunities for existing and new brands to enter rural markets
  5. 5. FMCG Size of Rural Marketscrore Rs.65000Agri-inputs Rs.45000 croreDurables Rs.5000 croreAutomobiles (2 & 4 Wheelers) Rs.8000 croreClothes, footwear etc. Rs.35000 croreConstruction material Rs.15000 croreTotal Rs.173000 croreSource: CII Report (2008)
  6. 6. Building Brands in Rural India• Contrary to popular belief people in Rural India are fiercely brand loyal o Single Brand Villages• Once converted, difficult to dislodge them• First mover advantages
  7. 7. Pitfalls of Building a Brand in Rural India• Merely stripping down all the ‘so-called’ frills from the product currently being sold in urban• Just extending the brand name to low cost packs, thus making it cheaper for rural.• Merely modifying the packaging marginally. Eg: add the brand name in Vernacular languages, use cheaper packing material…• Adapt the urban advertising by dubbing the film in the local language, translate the print material…• Offer meaningless sales promotion giveaways eg. Combs, spoons, tumblers, etc. FREE
  8. 8. Route to Brand Building in Rural• Build customisation o Chotukool from Godrej Boyce, a nano refrigerator (43 litres cool box loaded from top) o Co-created using suggestions from rural women and sold by rural women
  9. 9. Route to Brand Building in Rural• Build Empathy / Relevance o Nokia ‘Life Tools’ for farming and rural community o Agri information to farmers in association with Reuters o Imparting of knowledge of English language to students by teaching one new word every day
  10. 10. • Build Recognition o Ruralfolks understands symbols and colours better.  ‘Pahelwan’ Chap – MRF  ‘Haathi’ – Beedi  ‘Laal Sabun’ – Lifebuoy  Peela Powder - Nirma
  11. 11. • This also leads to duplicates and spurious products• Largely sold in the Haats (weekly markets) in Rural India o Rs.12000 crore p.a. is the estimated loss to FMCG sector
  12. 12. • Build Access o Distribution in rural India is not a nightmare o For FMCG reach villages (feeder markets) in towns with population 10000 to 15000 o For consumer durables reach towns with population of 50000+ and also o Look at opportunities in haats, melas, post offices, public distribution system etc.
  13. 13. • Build word of mouth o Through effective communication using specific communication package aimed at specific rural audience
  14. 14. • Build word-of-mouth o Importance of opinion leaders o Educated village youth as opinion leaders o Women and children as demand generators o Customised events targeting specific groups with focused communication
  15. 15. Rural RichAspiring Middle ClassBottom of thePyramid
  16. 16. Ideal Media Strategy for Reaching Rural Audiences RU Rural RA Cinema Mass Media L Radio Plus Opinion M TVDirect Marketing Leaders AS Un- Efforts SE conventional S Media Focused Events
  17. 17. Other Points to Remember
  18. 18. Understanding the Characteristics of the Rural Masses • Very intelligent and clever – cannot be easily hoodwinked. • Daily activity is routinised o Plenty of time / No Sundays • Very conscious of value for money
  19. 19. Understanding the Characteristics of the Rural Masses• Does not like to pay extra for frills he cannot use. o Eg. Colour TV• High involvement in any product purchased o Eg. Durables
  20. 20. Characteristics…• Perceptions, traditions, values vary from state to state and in some cases from region to region within a state. (MRF Bullock Cart Tyres)• Divisions based on caste, community and other hierarchical factors continue to exist.
  21. 21. So how do we communicate with the Rural Folks?
  22. 22. Rural Communication• Keep the communication simple… o No scope for gimmicks• Take time in communicating the message o Quickies have no impact.• Think in the local language to capture the local spirit in the communication aimed at specific region.
  23. 23. Rural Communication• Demonstration – a key element for success
  24. 24. Shampoo Demonstration
  25. 25. Dalda VanaspathiDemonstration
  26. 26. Demonstration
  27. 27. Analogies help in better comprehension.• Examples o MRF Bullock Cart tyre o Tafe Tyres
  28. 28. Rural Communication…• Television does not distinguish between urban and rural• You may be able to get away with a common TVC for both urban and rural audience particularly for FMCG products… provided your communication is not gimmicky, suggestive and is easy to comprehend.
  29. 29. Reliance Mobile
  30. 30. Rural Communication…• But when it comes to Durables, where rational decisions are involved, it is advisable to target the opinion leaders first.• While urban oriented TVC may register with opinion leaders and help create awareness, for real impact down the line, a region specific and need specific communication programme has to be devised which provides for demonstration and touch & feel of the products.
  31. 31. Important• Rural Urban Divide in terms of communication continues to exist• Hence need for different communication packages focused on rural audience
  32. 32. Examples of different treatment for urban and rural• Philips – Consumer Electronics Division• Leprosy Eradication Programme
  33. 33. Lessons from the Success ofregional brands in recent times• They understand the regional ‘ethos’ better• They satisfy a perceived local need• Their communication touches a ‘chord’ which helps in brand acceptance• They are flexible o Adapt to changing market situations• Eg. Anchor, Gadi, Ajanta, Cavinkare (Chik), Power, Goldwinner, Arasan
  34. 34. • If you are small with limited budgets start by concentrating on smaller areas o Outdoor / local Cable TV / Radio / participate in local festivals etc.
  35. 35. • Even Nirma started very small• Today it is a Rs.2000 plus crore company!
  36. 36. Thank you Email: anugrah@madisonindia.comVisit us at: www.anugrahmadison.com

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