R. V. Rajan, the founder of Anugrah Madison Advertising, is a veteran at rural marketing, having gained experience and specialised in that area since starting his career in advertising in 1964. For over 25 years, he has espoused the cause of specialisation in that arena. He founded the Rural Marketing Association of India in 2005 and headed it for four years. Don’t Flirt With Rural Marketing is his second book, the first being Courage My Companion, his autobiography published in 2009. The following are edited excerpts from various chapters.
Commitment from the top
In most companies, rural marketing efforts are relegated to the regional offices with their limited budgets. Marketers do not give rural marketing the total attention that it deserves to reap meaningful results. Without a comprehensive plan, and the total involvement of the top management, they end up merely ‘flirting’ with rural marketing.
I have seen from personal experience that many companies spend enormous amounts of time, energy and money to build brands in urban India. However, when it comes to rural marketing, they become impatient. They desire quick results. They don't want to spend money on research, or on developing a sound rural business strategy before taking on the rural markets.
The total commitment of the top management to any kind of rural initiative is the first step for any company to take on the long journey to successful marketing. A commitment that should not be altered by middle-level managers, to suit their short-term sales objectives!
It is also important to ensure the consistency of the team involved in any project, until the completion of a specific task. Recently, my agency was involved in dealing with two big clients. In both cases, the teams that briefed us in the initial stages and participated enthusiastically in the campaign were shifted out of the task midway, as per the policy of the company to shift and promote people. The result was that the new replacement teams showed scant interest in the project, and did not feel or take ownership of the campaign, since they were not involved in its conception. Even the top management did not respond, as they were busy firefighting on other fronts.
Choosing the Right Product
That rural consumers prefer only cheap products is a myth. Experience has shown that in making purchasing decisions regarding any product or service, rural consumers actually look for value for money.
While companies such as HUL, ITC and Eveready have been promoting their brands in rural India for many decades with phenomenal results, other companies have started exploring the rural markets for brand promotion only in the last couple of decades.
In the case of the FMCG (fast moving consumer goods) sector, introduction of sachet packs at affordable unit prices has made it easy for companies to make an entry into rural markets. It is important to decide which product in a company's product mix suits the rural market. Since the nature of rural markets limits the scope for stocking multiple SKUs (stock keeping units) of a brand, consumers have little say in the choice of pack sizes. It is important to remember that rural retailers pick those brands and pack sizes that bring them attractive margins. There are sizeable chunks of rural consumers who associate brands with colours, numbers and visuals.
Remember, the majority of rural consumers do not like to pay for fancy features. They are happy to deal with products which offer them basic functions. They do not perceive the value of premium brands. Nokia 1100, a simple handset priced between Rs 690 and Rs 920 with a radio, alarm and a flashlight is a good example. Videocon has a washing machine without a drier priced at Rs 2,500. Bharat Petroleum introduced a 5 kg mini gas cylinder priced at Rs 100 which has helped them penetrate the kitchens of rural folks.
Customising an existing product to suit the rural markets is another route to take. LG with its Sampoorna range of colour TVs, Godrej with the Chotukool refrigerator, Mahindra & Mahindra with Mahindra Max, Tata Swach water purifier from Tata, low-cost ultrasonic ECG machines from GE, Tata Ace mini truck from Tata Motors and the biomass stove from Shell Foundation are some examples of such initiatives.
Understanding the rural Mindset
Don't forget that the rural markets in India are heterogeneous. Conditions vary from State to State, and in some cases, from region to region, with differing traditions and cultures.
Many marketers insist they know enough about their consumers (mostly based on studies in urban India) and that their agencies should straight away produce a plan of action without wasting money and time on understanding the expectations of the rural consumer. For instance, when a leading FMCG company tried to promote its hair dye through barber shops in rural India, it failed. Subsequent research showed that rural men do not want the others to know that they dye their hair!
Lessons from Regional Brands
A few years ago Colgate Palmolive approached Anugrah Madison to come up with a campaign for Cibaca to counter the threat faced by the company from Ajanta toothpaste in semi-urban/rural Karnataka. While studying the market, an Ajanta customer was asked why he preferred a local brand to a quality brand from Colgate which is endorsed by Indian Dental Association (IDA). His prompt response was, ‘Why should I pay more for a Colgate product when I get Ajanta toothpaste at a lesser price which is also approved by IDA? I am happy with the quality of Ajanta.’
This is the secret of many successful regional brands which can also be traced to their small beginnings in semi-urban and rural markets. Nirma is one of the oldest examples of this genre of brands. Today, Nirma can boast of being one of the leading national brands. In recent times CavinKare with its Chik shampoo and other products in its portfolio has been giving MNCs a run for their money.
A survey of regional brands across the country reveals that many have not only survived but also shown phenomenal growth against the muscle power of multinational brands in several product categories. Whethet it is V John shaving cream popular in the North, Sosyo, a soft drink brand popular in Gujarat, Bovonto, grape juice from cold drink maker Kali Mark in Tamil Nadu, Shakthi and Achi Masala in the South or Ghadi detergent powder in the North, the list is almost endless.
The success of most of these brands is because they are rooted to the ground, catering to the specific tastes and needs of the local population, delivered at a price and location which is easily accessible to the local customer.
There have been attempts by MNCs to develop products aimed at regional markets. Like Brooke Bond’s Sehatmand brand of tea to tackle regional tea brands. Most of the others think that by just introducing a lower-priced SKU of a popular brand, they can capture the rural markets. Besides, the often rigid procedures laid down by the MNCs headquarters do not allow them to respond quickly to dynamic developments in the market place.
The Handbook of Rural Marketing
R. V. Rajan
Productivity & Quality Publishing Pvt Ltd
Price: Rs 395