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 Shampoo 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 mahanghe 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