Adv in Rural Mkt
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Transcript of Adv in Rural Mkt
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7/28/2019 Adv in Rural Mkt
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29Advertising Express
Advertising in Indian Rural Market
Anil Chandhok* and Upasna Chandhok**
Earlier, rural India was ignored by the marketers because of lack of
infrastructure and other problems like illiteracy and poverty. Now,
the scenario has completely changed with noticeable improvement inall the problem areas. It is generally seen that companies foraying
into rural areas, engage in short-term sales-oriented activities. In order
to be successful in the rural markets, organizations should designintegrated campaigns. They should have the real desire to invest
energy and capital in the rural areas on par with the urban market.
They should also understand that the gestation period for positiveresults in the rural market is much more than that in the urban market.
Therefore, they should enter the rural market only when they are
well-equipped with patience to wait for sustained results.
2008 The Icfai University Press. All Rights Reserved.
Advertising in Indian Rural Market
* Professor and Head MBA Department, MM University, Mullana-Ambala. The author can be reached [email protected]
** Research Scholar, MBA Department, MM University, Mullana-Ambala. The author can be reached [email protected]
Advertising
The Indian rural market, having a huge population base, offers an immense opportunity to
explore. The increasing affluence, supported by favorable monsoons and good agricultural
output, is giving a good boost to the Indian rural economy, which is transforming into a large
customer base for the corporates.
Though rural India was ignored earlier, now it is no longer a segment that is largely poor, illiterate
and innocent. As per available figures, 75% of the rural population is engaged in agriculture and they
contribute approximately half of the total rural income, whereas, only 25% of the rural population isengaged in the non-farming sector and they contribute the other half of the total real income. These
figures reflect that the monsoon no longer influences the buying habits of the rural population.
Corporates in the Indian Rural Market
To explore more attractive markets, multinationals are targeting Indias rural market. Some of the
organizations which have already made their presence felt in the rural market are Hindustan Unilever
Ltd. (HUL), Coca-Cola, LG Electronics, Britannia, HDFC Standard Life Insurance, Philips and
telecom companies like Reliance, Tata Indicom and Bharat Sanchar Nigam Limited (BSNL).
The urban market is now considered saturated as the competition has increased multifold. Hence,
the companies are trying their luck in the hinterland. But the major challenge which the companies
are facing is how to reach to the rural masses that are different from their urban counterparts in
economical, social and cultural backgrounds.
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30 March 2008
Advertising
Rural Advertising
An increase in the rate of literacy, significant contribution by the
non-farming sector to the rural income and the penetration of mediaare catalyzing the growth of consumerism in the minds of the rural
people. A conscious effort is required by the organizations through
advertisements to understand the rural audience and come up with
proper communication strategy that will bring out the core message
of the brand and communicate it in a language and style that can be
easily interpreted by the audience.
In India, as the majority of the population lives in rural areas,
advertising here is very critical and important. It is essential for the
advertisers to not only find the relevant vehicle to reach rural people
but also to create communication specifically for them. The
advertisements targeting the rural population should convey the rural
perceptions, values and traditions, and should suit their mindset. They
should be innovative and relevant to the beliefs of the rural people. A
unique media mix is required to put across the message to the rural customers. An advertisement
campaign which attracts urban customers may not be always suitable for the rural customers.
Recent Trends in Advertising
There are several options through which the marketers can attract the rural folk. It is seen that in each
village, there are a few individuals whom the people look up to for inspiration. The advertisement can put
forward their messages powerfully with the aid of these influential people. Normally, theSarpanch or
Mukhiyaof the village is regarded as the influential person who has a hold on his supporters and followers.
The Life Insurance Corporation (LIC) of India is promoting its policy plans through Sarpanchs. It has
appointedtheSarpanchsas insurance agents and they are given certain sales targets. On the basis of the
business,theSarpanchsare awarded financial aid from the LIC for the development of their village.
The brands can also be advertised through different rural shows and events as it is done for
Polio and AIDS awareness. They can also be advertised by sponsoring different events and
shows in villages. Events can be of any type like a celebration of festivals or sports competitions.
For instance, organizations like HUL, Titan and Colgate-Palmolive use festivals like Rath Yatra,
Kumbh Mela and Onam to promote their products. Companies can also take the aid of different
forms of entertainment, like puppetry, Bhangra and other traditional dances to increase their
brand presence. For example, Virat Cement has used the folk media likeragini in Haryana to
promote its product. Palaand daskathia have been used in Orissa to promote safe electricity
consumption and toothpastes like Colgate-Palmolive, etc. Britannia has entered into the rural
market with its Tiger biscuits, a biscuit suiting the needs of rural people, by participating in rural
melasand displaying its products. Themelasand weeklyhaatsin the rural areas can be idealplaces for advertising ones brand, because it is at these gatherings that the villagers come
together in large numbers. At a very low-cost, the company gets access to the minds of hundreds
of rural people.
In the case of tangible products, companies have started installing the products like TV, refrigerator
and coolers in the village schools and hospitals, so that the people of that village can understand the
The advertisements
targeting the rural
population should
convey the rural
perceptions, values
and traditions, and
should suit its
mindset
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31Advertising Express
Advertising in Indian Rural Market
While making the
advertisements for
rural people, the
messages should be
short and lucid that
can be effortlessly
interpreted by them
benefits of the product. Hence, the product itself does the
advertisement and also acts as a silent salesman.
Another vehicle for reaching the customers is advertising throughmobile vans. The popular media vehicles like television and radio are
also effective, but they exist only in some parts of the rural area and a
major portion of the rural area is beyond the reach of these popular
media.
The rural audiences are considered to be naive. While making
the advertisements for rural people, the messages should be short and
lucid that can be effortlessly interpreted by them. For instance, Coca-
Colas advertisement,Thanda Matlab Coca-Cola was a hit among
rural people.
Usually, celebrity influence is more on rural people. They are
highly influenced by the behavior of the celebrities. The
advertisements with the celebrities endorsing the products
increase the aspirational and emotional involvement of the
products among the rural people. For instance, some of the Pepsis
advertisement campaigns were successful in this regard. The Pepsis campaign in which Bollywood
actor Amitabh Bachchan and the crickter Sachin Tendulkar were involved in a kite fight or the
Sachin Tendulkar campaign in which he was shown in the middle of a group of children generated
good results in the rural hinterland.
Challenges
The villages and small towns, which were once overlooked by corporates, have now become the
most important markets for action. Rural marketing is scaling greater heights along with rural
advertising. However, a greater challenge lies in terms of interpreting the vast differences in the
rural areas and devising a strategy for communication of ones message, taking into consideration
the rural psychology.
One area of concern is the importance of retailers in the buying process of the rural consumers. It
is generally seen that the rural customers usually buy goods from a single retailer, because they get the
credit facility from him. Due to this, there is a strong bonding/trust between the two. The retailer thus
pushes the brand which provides him a higher margin. Therefore, it is advisable that the marketer
should not only target the rural consumers, but also concentrate on the rural retailers, who can spread
by word-of-mouth their opinions on a companys products and services.
Conclusion
Of late, rural India is drawing increasing attention of various companies. But since penetrating the rural
market is not easy as compared to the urban market due to several constraints, the companies have to
evolve different marketing strategies. The most important aspect to be understood in the context of rural
marketing is the rural audience. Once this is taken care of, the rest is easy. This has been proved by several
companies like the Hindustan Unilever Ltd., the India Tobacoo Company, Coca-Cola, etc. However,
there is still a vast potential in the rural market for the interested players to exploit.
Reference # 18M-2008-03-05-01
AE