Rural Branding

8/8/2019 Rural Branding

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R URAL B RANDING

Presented by

Sunilkumar D. Hiremath


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W HAT DO YOU MEAN BY RURAL

According to the census of India, villages withclear surveyed bounda ries not having amunicipality, cor porati on or board, withdensity of popula tion not more than 400sq.kmand at least 75 per cent o f the male wor kingpopulation en gaged in agriculture and alliedactivities w ould qualify as rural. S o, from theabove stated c onditions , there are 638,000villages in the c ountry. Of these, only 0.5 centhas a population above 10,000 and 2 per centhave population betwee n 5,000 and 10,000.

Around 50 per cent has a population less than200 .


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RURAL MARKETING

R ural marketing determines the carrying out of business activities bringing in the flow of goodsfrom urban sectors to the rural regions of the

country as well as the marketing of variousproducts manufactured by the non-agriculturalworkers from rural to urban areas.


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M ARKET S EGMENTATION OF I NDIANR URAL M ARKET

M arket segmentation

Rural RichConsumers

Rural Consumers abovePoverty Line

Rural Consumersbelow Poverty Line


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W HAT IS BRAND ?

A brand is name, term, sign, symbol, or design, or acombination of them, intended to identify the goodsand services of one seller or group of sellers and todifferentiate them from those of competition.

Importance of Brands to ConsumersIdentification of the source of the productAssignment of responsibility to product makerR isk reducerSearch cost reducerPromise, bond, or pact with product makerSymbolic deviceSignal of quality


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W HY B RANDING

Separate your brand from your competitors in aunique wayR elevant and motivating to your customersProspects and channels-it gives you value and makeyou special.Enhance your perceived value, there by supportingpremium pricing, sheltering you from low pricecompetition.Contributing to share holder value. (Companies likeM organ Stanley look to evidence of brand strength insetting buy ratings.)Provide resilience in times of negative press.Enable you to launch new products more quickly andcost effectively.


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R URAL B RANDING

In rural India, the branding rules are distinctlydifferent from urban markets. Not only does thecultural landscape differ, the factors thatinfluence purchasing decisions differ too. Priceand value for money are high on their list.R ural branding calls for a greater component of local media and less of the mass media. Sincethese markets have specialized forums of theirown like temple festivals, melas, cinema halls,these can be leveraged to promote brands. DirectM arketing and events like road shows, filmshows, melas, and street theatre can also be usedto promote brands.


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F EATURES OF I NDIAN R URAL M ARKETS

L arge and Scattered marketM ajor income from agricultureL ow standard of living

Traditional OutlookDiverse socio-economic backwardnessInfrastructure Facilities


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W HY R URAL M ARKET ?

The Indian rural market has a huge demandbase and offers great opportunities to marketers.Two-thirds of Indian consumers live in ruralareas and almost half of the national income isgenerated here. The reasons for heading into therural areas are fairly clear.The rural market is zooming ahead at around 25per cent annually. "The rural market is growingfaster than urban India now," says VenugopalDhoot, chairman of the R s 989 -crore ( R s billion)

Videocon Appliances."The urban market is a replacement and up

gradation market today," adds Samsung'sdirector, marketing, R avinder Zutshi.


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R EGIONAL B RANDS H AVE GOOD I M AGE

Cable channels and their networkUnderstandingLower cost

One to one relationshipEntrepreneurship


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L O W P ENETRATION RATES IN RURALMARKETS FACILITATES OPPORTUNITIES

FMCGs Urban RuralTotal

(%of rural House hold )

Shampoo 66.3 35.2 44.2

Toothpaste 82.2 44.9 55.6

D urables Urban RuralTotal

(%of rural House hold )

Colour TV 30.4 4.8 12.1

Refrigerator 33.5 3.5 12


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F OUR AS : A VAILABILITY

L G Electronics defines all cities and towns otherthan the seven metros cities as rural and semi-urban market. To tap these unexplored countrymarkets, L G has set up 45 area offices and 59rural/remote area offices.To service remote village, stockists use auto-rickshaws, bullock-carts and even boats in thebackwaters of Kerela.HLL started Project Shakti in partnership withSelf H elp groups of rural women.


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A FFORDABILITY

Godrej introduced three brands of Cinthol, FairGlow and Godrej in 50-gm packs, priced at R s 4-5meant specifically for M adhya Pradesh, Biharand U ttar Pradesh the so-called `BimaruStatesH industan L ever, among the first M NCs torealise the potential of Indias rural market, haslaunched a variant of its largest selling soapbrand, L ifebuoy at R s 2 for 50 gmCoca-Cola has addressed the affordability issueby introducing the returnable 200-ml glass bottlepriced at R s 5


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A CCEPTABILITY

L G Electronics developed a customized TV for therural market and named it Sampoorna. It was arunway hit selling 100,000 sets in the very firstyear.Coca-Cola provides low-cost ice-boxes a tin boxfor new outlets and thermocol box for seasonaloutlets.The customers of Godrej Agrovet product(R uchira, Bypro) started purchasing the productof H andrix company as the pallets smells likebutter of goat which makes them familiar to theH andrix company product.


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A W ARENESSFor generating awareness, events like fairs and

festivals, H aats, etc., are used as occasions for brandcommunication. Cinema vans, shop-fronts, walls andwells are other media vehicles that have been utilizedto increase brand and pack visibility.L ux and L ifebuoy and fabric wash items like R in andWheel started putting stickers on the hand pumps,walls of the wells, putting on tin plates on all the tree,surrounding the pond which act as the innovativemedia.HUL used local fairs and festivalsCoca-Cola used Doordarshan TVL G Electronics uses vans and road shows to reachrural customersPhilips India uses wall writing and radio advertisingto drive its growth in rural areas.


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I NTERESTING EXAMPLES OF SUCCESS AND FAILURE IN RURAL MARKET

H enko failed in M aharashtra. Why?It sound like " H ey Nako" which means No, giving the branda negative connotation in M arathi.Dabur's health tooth powder containing Tulsi failed. Why?Tooth powder meant spitting the Tulsi out which wasconsidered sacrilege in the rural areas.Although black is not a lively color and has a lot of negativeconnotation to it, it worked for "Chik" shampoo. H ow?Perception that if the shampoo is black then the hair wouldbe pitch black too.Dabur traditionally paints the walls of the roads leading tothe temples and mosques in the villages. Why?The crowd aggregates during all the major festivals, andthe huge traffic to enter the temple and mosque providesthe marketer the ideal opportunity to tap into his mindspace making use of the wall space available. Dabur did

just that


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C ONCLUSION

Indian rural market is undoubtedly complex butthere are some simple truths that we need toaccept. The rural consumers are very value-conscious. They may or may not have purchasingpower, but they can make a difference to thecompany's growth if concentrated. The growingpower of the rural consumer is an opportunity forthe companies to flock to the rural markets. Thebasic underline for preference for brands in rural

areas is the functional and not psychologicalbenefit. With the technological innovations,infrastructure development and enrichment of human capital in rural areas the companies canearn huge profits.


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T HANK YOU

Rural Branding

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