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
1. Rural Marketing
Some Insights
By
R V Rajan
Anugrah Madison Advertising P Ltd.
3.3.2010
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 !
4. • ALL RESULTING IN FARMERS
INCOME RISING
• Tremendous opportunities for existing
and new brands to enter rural markets
5. FMCG
Size of Rural Marketscrore
Rs.65000
Agri-inputs Rs.45000 crore
Durables Rs.5000 crore
Automobiles (2 & 4 Wheelers) Rs.8000 crore
Clothes, footwear etc. Rs.35000 crore
Construction material Rs.15000 crore
Total Rs.173000 crore
Source: CII Report (2008)
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. 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. 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. 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. • Build Recognition
o Ruralfolks understands symbols and
colours better.
‘Pahelwan’ Chap – MRF
‘Haathi’ – Beedi
‘Laal Sabun’ – Lifebuoy
Peela Powder - Nirma
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.
13. • 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.
14. • Build word of mouth
o Through effective communication using
specific communication package aimed at
specific rural audience
15. • 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
18. Ideal Media Strategy for
Reaching Rural Audiences
RU Rural
RA Cinema
Mass Media
L Radio
Plus
Opinion M TV
Direct Marketing
Leaders AS Un-
Efforts
SE conventional
S Media
Focused
Events
20. 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
21. 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
22.
23. 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.
24. So how do we communicate with
the Rural Folks?
25. 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.
30. Analogies help in better
comprehension.
• Examples
o MRF Bullock Cart tyre
o Tafe Tyres
31. 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.
33. 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.
34. Important
• Rural Urban Divide in terms of
communication continues to exist
• Hence need for different
communication packages focused on
rural audience
35. Examples of different treatment for
urban and rural
• Philips – Consumer Electronics Division
• Leprosy Eradication Programme
36. Lessons from the Success of
regional 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
37. • If you are small with limited budgets
start by concentrating on smaller areas
o Outdoor / local Cable TV / Radio /
participate in local festivals etc.
38. • Even Nirma started very small
• Today it is a Rs.2000 plus crore
company!
39. Thank you
Email: anugrah@madisonindia.com
Visit us at: www.anugrahmadison.com