Rural Marketing

 Session 22-23
 Nirma Washing Powder
 Colgate Toothpaste
 Dettol
 Tiger Biscuits
 Bajaj Scooters
 Lifebuoy Red
Reality or Myth
 Can not profitably compete
 Villagers can not afford
 Only developed markets will pay for new technology
 Not important for long-term viability
 Managers are not excited by business challenges
 Rural Consumers buy loose, unbranded inexpensive

products rather than the branded variety

Rural Consumer - Demographics
 Largely working as farmers or agricultural
workers

 Have limited education, may well be illiterate

 Either live in joint families or have only

recently formed nuclear families
Rural Consumer - Shopping behaviour
 Buy small quantities - more frequently. Unit
price is critical

 Look for ‘acceptable performance’/ functional

benefits / paisa vasool paradigm

 More sensitive and alert to ‘value’

 Make high-volume purchases at weekly village

markets
Rural Consumer - Shopping behavior
 Build personal acquaintance with neighborhood
retailer
◦ Often trust the retailer who does influence brand
choice
◦ Frequently get ‘credit’ from the retailer
Rural Consumer - Shopping behavior
 Word-of-mouth, very important and credible

 Mass driven. Buy products that are perceived

to be popular: the ‘bandwagon’ effect

 Try to minimise their risk

 Still influenced by popular idols/role models

such as movie stars, famous sportsmen, etc
Key(often ignored) influencers:
 Youngsters in family(better access to tech)
 Exposure to urban areas.
 Availability of electricity
 Place of purchase
 Beyond Agriculture ( White revolution )
 Heterogenity in literacy rate
 Influence of “ daughter in law” in the family
 Preconceived notions
Transitions In Rural India

•Non –food, cash crops

• Food Grain Crops
•Livestock & fisheries
• On land activities
•Manufacturing &
• Farm Activities services
Product -> Shaping Aspirations
 Specially designed pdts:
 -Tractor trailer
 -Solar powered mobile
 Battery
 -Smokeless chulas
 -Colours
Packaging
Pack is sometimes the only communication medium

Due to low literacy levels recognition of the brand

name is mainly through its distinct logo and visual pack
properties. For this very reason, it is usually inadvisable
to make drastic changes in packaging design and/or
pack colours while re-launching the brand
Associate with affordability
Convenience

Consumer recognition & product protection

Packaging material
Size, Example: Chik Sampoo
Pricing -> Creating Buying Power
 Access to Credit
◦ Microfinance
◦ Jan Dhan Yojna

 Increasing the earning potential

 Small packs with a low unit price

◦Tiger biscuits tikki pack
◦Coke 5 rupiya mein

Product Sharing and Bundling

Low priced variant- Sonata

Crop insurance
Place -> Improving Access
 Large number of small markets
 Dispersed population and trade
 Poor connectivity
 Low availability of suitable dealers
 Inadequate banking/ credit facilities
 Poor product display and visibility
 Poor communication of offers and schemes
 Rural chain stores ( DCM Hariyali Kisan bazar, ITC
Sagar
 Levels of Distribution
Level Partner Location

1 Company Depot/ C & FA National/ State level

2 Distributor/ Van Operator/ Super Stockist/ District level

Rural Distributor

3 Sub Distributor/ retail Stockist/ sub Tehsil HQ, towns and

stockist large villages

4 Wholesaler Feeder towns, large

villages, haats

5 Retailer Villages, haats

Distribution Model of FMCG
Distribution Adaption
 Hub and Spoke Model, Example: Coca Cola
 Use of Affinity groups, Example: Project Shakti
 Haat
 Syndicated distribution, Example: Cavin Care &

Amrutanjan
 Use of marketing co-operatives, Example:

Warna Bazaar in Rural Areas

 Mobile traders, Example: FMCG companies
 Information Access, ITC e-choupal
Promotion- Being Local
Conventional Non- Conventional Personalised

Television Haat and Mela Direct mailer

Radio Folk Media( puppet and POS (demonstration,

magic show) leaflet)

Press Video Van Word of mouth

Cinema Mandi Interpersonal

communication

Outdoor: Wall Painting, Animator

Hoarding
Types of Promotions
 Advertising: Don’t disrupt local customs
 Sales promotions – coupons, contests,
demonstrations and sampling, Example: Tata
Shaktee Haat Hungama
 Direct marketing, Example: Videocon
 Publicity, Example: Project Shakti
 Using a direct selling through a sales force,
Example: Swasthya Chetna for Lifebouy
Targeting rural consumers…
 Highlight multiple uses from the same product
◦Dettol liquid for cuts, washing clothes as a disinfectant etc
◦Jet mosquito coil for mosquito repellent and room freshner

 Why pay more?

◦Nirma Super “Jab vohi manghe damo vali quality kam dam mein mile to
koi vo kyun le”

◦Dhoondte rahe jaoge!

A little goes a long way

◦Rin detergent bar claims that with just a little Rin, you can get a whole lot
of wash
Targeting rural consumers…
 Use opinion leaders
◦If they are credible, they work
◦Sunlight detergent powder employs a doctor to endorse the
brand
◦Colgate dental cream endorsed by a doctor
◦Sarpanch - Anti Leprosy

 Leveragethe rural consumer’s belief in folklore and natural

ingredients
◦Ganga soap …….. water of Ganga, a river revered as holy by the
majority of India’s Hindu population.
◦Dabur Amla hair oil with “Anvla”, Lal Dant Manjan with “lavng”

 Depict characters and families that are aspirational yet real

Targeting rural consumers…
 Exploit the warmth of emotion among family members

 Consider leveraging the appeal of mass sports

◦Lifebuoy soap has consistently used mass sports like
football

 Understand and leverage your local culture, beliefs and

customs
◦Fair and Lovely skin lightening lotion makes use of people’s
belief in palmist
◦ Bajaj scooters uses typical vignettes from Indian life to
establish an emotional bond with the consumer
Targeting rural consumers…
 Useradio effectively: Radio often has a much
higher reach than TV or any other medium
among the rural consumer

 Sampling

◦The importance of sampling cannot be

underestimated as it provides a low-risk opportunity
to try the product
Targeting rural consumers…
 Asthe rural consumer tend to come to the shop frequently, POS
materials act as a constant reminder of brand presence and
advantage
◦Branding must be done through colour, brand name and symbols:
strong visuals are important
◦POS material should be
Durable: tinplates, plastic, sun-resistant inks
Functional and reusable: calendars, mirrors, stands
Space-efficient
Decorative
 Location is key: need to be placed strategically
◦Billboards, wall paintings, banners
 Special events which are entertaining are very popular
◦Folk-song concerts
◦Road shows
◦Travelling cinemas
◦Video parlours
Increase penetration
Van Based Advertising
Melas
High Direct to Home
Reach Exhibitions/Created events

Low
Reach

High Frequency Low Frequency

 Jeep based advertising
Wall Painting
High Bus Stand
Reach Bus Panels
Haats
Hoardings

Low
Reach

High Frequency Low Frequency

High
Reach

Co-operative Notice Board

Shop Front Painting
Tin Plating – House
Dealer Boards
Village Boards

Low
Reach

High Frequency Low Frequency

High
Reach

Tin Plating – Trees/Shops

Leaflets
Posters
Banners
Danglers

Low
Reach

High Frequency Low Frequency

Thank You