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PRINCIPLES OF RURAL MARKETING

RURAL HALF - THE BIGGER HALF

RURAL INDIA CONTRIBUTES TO

 70% OF INDIA'S POPULATION

 56% OF INCOME

 64% OF EXPENDITURE

 50% OF INDIA'S GDP

Source: INDIA Brand Equity Foundation


Source: IMRB Study
RURAL – A BIG OPPORTUNITY Accenture Rural Research

BEYOND FARMERS
66 % of income today is from non-farming related activities

GROWING NUMBER OF AFFLUENT PEOPLE


The size of the affluent group in rural India is close to that in urban India

GROWING EXPENDITURE
Rural monthly per capita expenditure (MPCE) is growing at a faster rate than urban
Between 2009 and 2012, spending in rural India reached US$69 billion, significantly
higher than the US$55 billion spent by urban populations

FASTER OVERALL GROWTH


GDP in rural India is growing at a faster rate than urban since early 2000s

GROWING ASPIRATIONS
Rural India is buying more & more motorcycles, cars, smartphones and bigger televisions
BUT BIGGER CHALLENGES

Lack of
Income Realities Distribution Diverse Audience
traditional media
One in three of the small town Scattered in smaller villages, Not one homogenous group Penetration of television
and rural working population is gaining access is a tedious and radio is limited
a daily wage earner task Cultural and linguistic
diversity, still persists. Lack of electricity negates
One in four of the working Local entrepreneurs take whatever media is
population in villages has no advantage by manufacturing available
fixed income. cheaper substitutes
While digital penetration is
growing, still a long way to
go

Source: IMRB Study


HOW DO CHANNEL RELATED CHALLENGES

WE BREAK
MEDIA RELATED CHALLENGES
INCOME RELATED CHALLENGES

THROUGH MINDSET RELATED CHALLENGES

AND CAPITALIZE ON THE BIG RURAL OPPORTUNITY?


PRINCIPALS OF RURAL MARKETING
10 RURAL MARKETING CASES
10 PRINCIPLES OF RURAL MARKETING
#1
RURAL CONSUMERS SOMETIMES HAVE VERY BASIC
BUT UNMET NEEDS

DON’T START BY SELLING YOUR CATEGORY/


PRODUCT, START BY SOLVING A LARGER, REAL LIFE
UNMET NEED OR A PROBLEM
KAN KHAJURA TESAN
BACKGROUND
 The rural areas of Bihar & Jharkhand were opportunity markets HUL hadn’t tapped into

 These areas were also away from the reach of most media because electricity was
limited & sporadic

 Hence most inhabitants lived in a perpetual state of isolation from entertainment

CHALLENGE – MEDIA DARK


How do you communicate with your audience when there is no communication channel?

IDEA – CREATE YOUR OWN MEDIA – ‘KAN KHAJURA TESAN’


 54 million people in these two states had mobile phones!

 Convert the mobile phone into an ‘On Demand Radio Station’

 This radio station would solve for people’s need for the entertainment they
desperately sought but never had access to

 Consumers had to just give a missed call and in return we would provide them with 20
minutes of free entertainment, along with radio spots from Unilever
WORK
#2
RURAL CONSUMERS MAY NOT TRUST YOU TILL YOU
ACTUALLY PROVE YOUR BENEFITS

CREATE AN EXPERIENCE THAT DEMONSTRATES THE


BENEFITS OF YOUR OFFERING
LIFEBUOY SWASTHYA CHETANA
BACKGROUND
 Rural consumers had no habit of washing their hands with soap

 They felt washing with water alone was sufficient, since the hands seemed clean
after washing with water

 They never realized that most of the diarrhea cases were a result of this unhygienic activity

CHALLENGE – ZERO RELEVANCE


How do you get consumers to adopt a product when they felt no need for it?

IDEA – DEMONSTRATE & EDUCATE – ‘SWASTHYA CHETANA’


 A health education initiative

 Health officers from Lifebuoy visited 43,000 Indian villages and schools over five years

 With the help of a special GlowGerm UV demo, they brought alive the fact that
‘Visible Clean is not clean’ and hence washing with water alone is not enough

 They used product demonstrations, interactive visuals, competitions and drama workshops
to spread the health and hygiene message
WORK
#3
RURAL AUDIENCE IS VERY COLLECTIVIST
ACTIVATE A SET OF INFLUENCERS WHO IN
TURN CREATE POSITIVE WORD OF MOUTH
HERO HONDA – ‘HAR GAON, HAR ANGAN’
BACKGROUND
 Hero wanted to grow its volumes in the rural areas

 But a motorcycle was a big investment for a rural audience

 He sought reassurance from his community for all his decisions

CHALLENGE – LACK OF WORD OF MOUTH


How do you create positive word of mouth in areas where neither you nor your products have any
reassuring presence?

IDEA – CREATE INFLUENCER GROUPS WITHIN THE COMMUNITY


 Hero roped in opinion leaders in each village – elders, teachers, panchayat members who
the villagers looked up to

 These opinion leaders were used to organize and draw crowds to public service
events Hero conducted like dramas around safe riding, obtaining license, health camps etc.

 These programs and the influencer group was activated just before harvest season and created
positive word of mouth about Hero
#4
RURAL AUDIENCE COULD FEEL ALIENATED AND
INTIMIDATED BY NEW, URBAN MODELS

KEEP YOUR ACTIVITY INCLUSIVE, PERSONAL AND


ROOTED IN THEIR LIFE
SBI – PROMOTE THE CONCEPT OF BANKING
BACKGROUND
 Many people living in rural areas did not have bank accounts

 They felt bank accounts were not for uneducated, lower income groups like them

 They also felt that the banking procedures were an ordeal & brought
embarrassment, even more so because they weren’t literate

CHALLENGE – PERCEPTION OF BANKS - AN ELITE, ALIENATING INSTITUTION


How do you get consumers to adopt a habit they were prejudiced against and had concluded was
alien and unnecessary for them?

IDEA – ‘PAISE KI HAR SAMASYA KA SAMADHAN’ – A HUGE PROMISE


 Not having banks was not a problem, but money was a big problem in their lives

 Provided a bigger carrot to get them to help them rationalize and hence overcome their prejudices
– ‘A solution for each of their money related woes’

 And used this communication platform to tackle every barrier rural consumers had

 This message was communicated through personal, interactive media like street plays, community
games, outdoors at congregation points etc.
WORK
WORK
#5
RURAL CONSUMERS ARE NEW TO MANY CATEGORIES
AND HENCE YOUR MESSAGE NEEDS REINFORCING

BUILD PROPERTIES, NOT CAMPAIGNS THAT KEEP


REINFORCING THE MESSAGE/ HABIT
CLINIC PLUS - CHULBULI
BACKGROUND
 Clinic Plus wanted to increase its consumption in rural areas

 But shampoo usage wasn’t a regular practice in those parts

CHALLENGE – WHY WASH REGULARLY?


Rural consumers felt no reason or need to wash their hair regularly

IDEA – ‘MUH-HAATH DHONA’ TO ‘MUH HAATH AUR BAAL DHONA’


 Clinic Plus built on an existing need and habit, to wash face and hands frequently. And urged
consumers to add hair too, to their daily routine

 Since a habit needed to be created, a one-off piece of communication wouldn’t have been enough.
A radio property was created around a very relatable, rooted character called
‘Chulbuli’

 The radio property spoke about ‘Chulbuli’ and her everyday adventures, and was aired on All
India Radio regularly

 After every adventure of hers, Chulbuli would reinforce and reiterate the need for
shampooing everyday
WORK

VIDEO RADIO PRINT


WORK

SCHOOL CONTACT PROGRAMS COMICS


#6
RURAL CONSUMERS HAVE ASPIRATIONS TOO

SHOW THEM AS PROGRESSIVE AND APPEAL TO


THEIR ASPIRATIONS
MARUTI – ‘MERA SAPNA MERA MARUTI’
BACKGROUND
 Post the recession in 2009, Maruti wanted to increases its share of volumes from rural India to cushion
themselves from the impact of global economic meltdowns

 But most rural audiences didn’t have a car and were happy without them

CHALLENGE – NO COMPULSIVE NEED FOR A CAR


Rural consumers had no utility value for a car

IDEA – SELL ON ASPIRATION, NOT UTILITY


 While the audience didn’t feel the need for car, they definitely felt the need for social markers

 Maruti decided to make owning a car a symbol of status and higher social standing

 The ‘Mera Sapna, Meri Maruti’ TV ad was created for this audience

 This was followed by a ‘Video on Wheels’ initiative in which the villagers got to see the screening of
Maruti Suzuki content while sitting in a plush air-conditioned environment in the back of a truck

 The film tells the story of an average villager who buys a Wagon R and how it changes his life. Once
the film ends, a host conducted a quick quiz to ensure brand recall
WORK

TV VIDEO ON WHEELS
#7
SIMPLIFY AND HUMANIZE TECHNOLOGY
BUILD RELATABILITY BY ROOTING IT IN THEIR
DAY TO DAY LIVES AND NEEDS
MAHINDRA TRACTORS
BACKGROUND
 Mahindra wanted to launch its new Bhumiputra tractor and gain lion’s share of the tractor
market

 The new tractor had a unique airflow technology

CHALLENGE – NEW, UNFAMILIAR TECHNOLOGY


How do you sell a new, unfamiliar technology and hence drive preference to an audience that
had minimal understanding of technology?

IDEA – HUMANIZE THE TECHNOLOGY – THE ‘KAMAI CHAKRA’


 Mahindra demystified and humanized the technology by referring to the air flow as
‘Kamai Chakra’

 The tractor was positioned as the wheel of earnings, that ensured better earnings
because of the new airflow technology

 An experiential air chamber was also created, where farmers could watch a film educating
them about the tractor's features, while also experiencing air flow technology themselves
WORK
#8
RURAL AUDIENCE IS HAPPY WITH THEIR
EXISTING HABITS AND MAY NOT FEEL THE
NEED FOR NEW HABITS

MAKE THE HABIT DESIRABLE


LIFEBUOY – THE JUMP PUMP
BACKGROUND
 One of the most critical occasions a kid needs to wash hands is before having meals

 Most schools in villages have the mid-day meal scheme. And the only source of water
at schools are hand-pumps

 But kids didn’t want to do the extra work of using hand-pumps hence they
ended up not washing their hands before food

CHALLENGE – RESISTANCE TO EXTRA WORK


How do you get kids to do extra work they didn’t like, everyday with nobody to monitor?

IDEA – MAKE WORK, PLAY – ‘THE JUMP PUMP’


 We turned the hand pump into a playground

 We decided to adapt a rocking horse and mount it on the hard-to-use hand pumps thereby
making them easy and fun to operate

 This gave the extra incentive necessary for kids to wash hands regularly and adopt the habit
WORK
#9
SOCIAL STANDING IS EXTREMELY IMPORTANT
TO A RURAL CONSUMER

ENHANCING ‘SOCIAL STATUS’ COULD BE A


RELEVANT MOTIVATION TO BREAK DEEP-
SEATED HABITS
UNICEF – TOTAL SANITATION
BACKGROUND
 Many houses in rural areas don’t have toilets

 The government is on a mission to eradicate defecation in open spaces

 But the men in most rural houses who controlled the finances were comfortable
defecating in the open and in fact believed it was healthier

CHALLENGE – CHANGE A DEEPLY ENTRENCHED HABIT


How do you change an everyday, comfortable routine that has been in practice since times
immemorial?

IDEA – MAKE TOILETS A SYMBOL OF SOCIAL STATUS AND STANDING


 Though the men didn’t want to construct toilets, progressive younger women, wanted
one

 These women were given the idea to assert their need by demanding toilets as a pre-requisite
for marriage, from the house they were getting married into

 Hence the ‘No Toilet, No Bride’ initiative was born and toilets was repositioned as a
significant asset to talk about while discussing marriage proposals.
WORK
#10
RURAL CONSUMERS ARE WARY OF OUTSIDERS
BUT TRUST THEIR OWN COMMUNITY

HENCE, TREAT CHANNEL AS YOUR FIRST


CUSTOMER. CONVERT YOUR CHANNEL INTO
RURAL BRAND ADVOCATES
COCA-COLA – ‘PARIVARTAN’
BACKGROUND
 With flat sales in urban India, Coca-Cola had to shift its focus to rural India to drive volumes

 But rural India didn’t have the kind of infrastructure Coca-Cola needed for its cold drinks

 Plus consumption are very different, they are not used to drinking packaged drinks

CHALLENGE – NOT A PREFERRED CHOICE


How do you sell packaged drinks to an audience that preferred traditional drinks like lassi?

IDEA – MOTIVATE RETAILERS TO PUSH


 Coca-Cola has created a number of initiatives exclusively for retailers that indirectly motivate
them to push their soft drinks

 Coca-Cola gave away solar coolers called Ekocool to retailers facing power crisis. These solar
coolers also come integrated with a mobile charging point and a lantern, thus helping the retailer
keep their shop open for longer hours in the night

 The ‘Parivartan’ program trains retailers extensively, and has a special arm for women retailers
in rural markets. Women are taught to manage shops, stock, customers, financials and merchandising

 The program lasts 10 days, and participants receive a certificate along with an insurance policy
WORK
PRINCIPLES OF RURAL MARKETING

RURAL CONSUMERS SOMETIMES HAVE VERY BASIC BUT UNMET NEEDS


DON’T START BY SELLING YOUR CATEGORY/ PRODUCT, START BY SOLVING A LARGER, REAL LIFE UNMET
NEED OR A PROBLEM

RURAL CONSUMERS WILL NOT TRUST YOU TILL YOU ACTUALLY PROVE YOUR BENEFITS
CREATE AN EXPERIENCE THAT DEMONSTRATES THE BENEFITS OF YOUR OFFERING

RURAL AUDIENCE IS NOT VERY INDIVIDUALISTIC AND DECISIONS ARE ALWAYS COLLECTIVE
ACTIVATE A SET OF INFLUENCERS WHO IN TURN CREATE POSITIVE WORD OF MOUTH

RURAL AUDIENCE COULD FEEL ALIENATED AND INTIMIDATED BY NEW, URBAN MODELS
KEEP YOUR ACTIVITY INCLUSIVE, PERSONAL AND ROOTED IN THEIR LIFE

RURAL CONSUMERS ARE NEW TO MANY CATEGORIES AND HENCE NEED REINFORCING
BUILD PROPERTIES, NOT CAMPAIGNS THAT KEEP REINFORCING THE MESSAGE/ HABIT
PRINCIPLES OF RURAL MARKETING

RURAL CONSUMERS HAVE ASPIRATIONS TOO


SHOW THEM AS PROGRESSIVE AND APPEAL TO THEIR ASPIRATIONS

RURAL CONSUMERS MAY NOT UNDERSTAND TECHNOLOGY VERY WELL


SIMPLIFY AND HUMANIZE TECHNOLOGY.
BUILD RELATABILITY BY ROOTING IT IN THEIR DAY TO DAY LIVES AND NEEDS

RURAL AUDIENCE IS HAPPY WITH THEIR EXISTING HABITS AND MAY NOT FEEL THE NEED FOR NEW
HABITS
MAKE THE HABIT DESIRABLE

SOCIAL STANDING IS EXTREMELY IMPORTANT TO A RURAL CONSUMER


ENHANCING ‘SOCIAL STATUS’ COULD BE A RELEVANT MOTIVATION TO BREAK DEEP-SEATED HABITS

RURAL CONSUMERS ARE WARY OF OUTSIDERS BUT TRUST THEIR OWN COMMUNITY
HENCE, TREAT CHANNEL AS YOUR FIRST CUSTOMER. CONVERT YOUR CHANNEL INTO RURAL BRAND
ADVOCATES
QUICK EXECUTIONAL GUIDELINES FOR DIFFERENT MEDIA
EXECUTIONAL GUIDELINES FOR VIDEO/ AUDIO
CREATE ROOTED,
RELATABLE CHARACTERS
KEEP IT SIMPLE & REAL BUT
ENTERTAINING
EMPLOY STICKY CATCH-
PHRASES & BUILD TALKABILITY
SHOW THEM AS PROGRESSIVE
YOU CAN PUSH THE
ENVELOPE BUT DON’T BE
A REBEL
KEEP THE CALL TO ACTION
VERY SIMPLE AND DIRECT
USE CELEBRITY TO
GALVANIZE A MOVEMENT
EXECUTIONAL GUIDELINES FOR PRINT & OUTDOOR
BE SIMPLE, VISUAL AND BOLD
BE ENGAGING
BE MORE THAN THE MESSAGE.
INNOVATE THE MEDIUM
OWN THE LOCATION
QUICK GUIDELINES FOR POSM
STAND OUT - USE PRIMARY COLORS
AND ALWAYS BE AT EYE LEVEL
HAVE SOME ‘UTILITY’ VALUE: SHOP
OWNERS SHOULD BE ABLE TO USE IT
AS DECORATION
SHOP EXTERIOR: BE A PARTNER TO
MAKE THE SHOP OWNER POPULAR
EXECUTIONAL GUIDELINES FOR PACKAGING
USE PACKS AS TOUCH-POINTS
CORE BRAND BENEFIT SHOULD BE THROWN,
NOT DISCOVERED
USE PACKS TO DECORATE
THE POINT OF SALE AND
HENCE ATTRACT ATTENTION
EXECUTIONAL GUIDELINES FOR ACTIVATIONS
BUILD HIGHLY INTERACTIVE MODULES
DEMOS. GAMES. EXPERIENCES.
CREATE & UTILIZE CONGREGATION
POINTS
MAKE IT AS PERSONAL AS POSSIBLE
USE KIDS TO DRAW AND SUSTAIN CROWDS
<EOD>

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