lintas rural initiatives

8/8/2019 Lintas Rural Initiatives

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A presentation


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India

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Ru al72%


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De initions

Rural and Urban Areas

The conceptual unit for urban areas is a 'town', whereas for the ruralareas it is a 'village.' The classification of an area as an urban unit inCensus of India 2001 is based on the following definition:

All places declared by the state government under a statute as a municipality,corporation, cantonment board or notified town area committee, etc. All other places which simultaneously satisfy or are expected to satisfy the

following criteria: A minimum population of 5,000; At least 75 per cent of the male working population engaged in non-agricultural

economic pursuits: and A density of population of at least 400 per square kilometer (1,000 per square mile)

Any area, which is not covered by the definition of urban, is rural.


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Th e ro nd rea ities!The Rural Consumer


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Why r ra ?


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Rural consumers constitute about 72% of Indias population

Huge usiness opport unities


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Marketers have, so far, concentrated on the top-end consumer

Therefore, this segment is largely dominated by proxy products andlocal/regional/duplicate/fake brands

N o sin gle nationa l o petitor


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Who is t he r ura l ons um er?


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De mograp h i s

Largely working as farmers or agricultural workers

Have limited education, may well be illiterate

This leads to linear and simple thinking, abstract logic tends to go overtheir heads

Either live in joint (extended) families or have only recently formednuclear families


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Shoppin g e ha io ur

Buy small quantities - more frequently Unit price is critical, particularly as many of them are daily-wage earners

Look for acceptable performance/ functional benefits / paisa vasoolparadigm (good in relation to current product) at a reasonable price

Transcreation of packaging critical

Flash price of pack wherever feasible

In their own way, good at arriving at a cost per dose (or cost permonth) equation: even if not expressed mathematically

More sensitive and alert to value

Make high-volume purchases at weekly village markets Haats


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Build personal acquaintance with neighbourhood retailer

Often trust the retailer who does influence brand choice Frequently get credit from the retailer


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Word-of-mouth, very important and credible

Mass driven Buy products that are perceived to be popular: the bandwagon effect

Try to minimise their risk: tend to be stronger creatures of habit

High awareness of range of consumer brands - but propensity toactually purchase premium performance brands is low

Still influenced by popular idols/role models such as movie stars,famous sportsmen, etc


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Adhere to prevailing social norms: the community they live in is veryimportant and their behaviour is usually consistent with thecommunitys shared beliefs and norms

Enjoy social gatherings: womens associations, celebrations, events, etc

Spend a lot of their free time chatting and gossiping with neighbours:both as a source of entertainment and information

Tend to be suspicious about people outside the community

Follow opinion leaders: school teachers, priests, religious leaders,urbanised relatives, local politicians, the village head

C olle ti is m(As opposed to indi id ualisti


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F amily and t he house i es ro le

Housewives manage the household and decide on its needs Largely determine brand choice for low-cost household products But in rural India, males play that role too

Males are still dominant; largely a patriarchal society Yet, housewife establishes her territory

High power gaps: less powerful members of the family accept andexpect that power is unequally distributed

Family is at the core of their existence - and the self is considered

less important Children are the centre of the housewifes life


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F amily and t he house i es ro le

Housewife is often frustrated in her own ambitions, but wishes to seethese aspirations fulfilled vicariously through her children, daughterincluded

Aims for children to achieve academic excellence

Housewife craves for an identity outside the home

Believe in having many children: future providers


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O t her e lie s

Strong belief in fate and luck, religion and God

Active participation in religious activities

Cleanliness is next to Godliness


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So ia lly a epta le aspirations ort he house i e

When she can stand up to her mother-in-law without beingdisrespectful

When the children excel in their studies/school activities

When the son sends money from the city to the village

When she exercises her own choice in brands, occasionally allowsherself a minor extravagance or indulgence

When a prestigious consumer durable in brought home: the arrival ofa 2-wheeler, a TV-set or a refrigerator is a proud event in itself


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R ura l IndiaMyths & Reality


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Myt h

Rural consumers aren't worth bothering about since they buy loose,unbranded products rather than the branded variety. In branded theybuy only inexpensive brands.


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R ea lit y

The ORG study shows a high preference for branded products. In 18categories, branded consumption accounts for 80% of sales. Theseinclude: toilet soaps, washing powders, analgesics, safety razor blades,toothpastes, shampoos, batteries, rubs and balms, skin creams,toothpowders, toothbrushes, antiseptic creams, antiseptic liquids,digestives, mosquito repellants, shaving preparations, tubelights.


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R ea lit y

Penetration of premium products is being reported, even to the lowestsocio-economic classification. Although the percentages may be verysmall, given the large universe, the actual figures may be quitesignificant.


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Myt h

One family, one brand - there's one brand for the whole household.


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R ea lit y

In many categories, multiple-brand usage is a fact. Rural householdsare not completely homogeneous.


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U n han ged hara teristi s o r ura l ons um ers


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Continued existence of an oppressive and rigid caste system,particularly in rural areas The rural consumer normally hails from the lower castes, and therefore anydepiction of him/her on an equal footing with the higher castes would beseen as aspirational

High illiteracy levels: often incapable of reading or pronouncing a brandname

E.g. Lifebuoy is referred to as the red soap

India


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K e y onsiderations h ile tar getin g rura l ons um ers?


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Highlight multiple uses from the same product Dettol liquid for cuts, gargle for bad throat, washing clothes as adisinfectant , dandruff etc Jet mosquito coil for mosquito repellent and room freshner

Advertise small packs with a low unit price Tiger biscuits tikki pack

Cavin Kare - Chik shampoo Chota Pepsi 5 rupiya mein

Why pay more? Nirma Super Jab vohi manghe damo vali quality kam dam mein mile to koivo kuye le

A little (of the product) goes a long way Rin detergent bar claims that with just a little Rin, you can get a whole lotof wash

Tar getin g rura l ons um ers


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Using price itself as an indicator of value has some risks attached to it;if used indiscriminately, it can: Down-grade the perceived quality of the product Permanently position the product at that price point making it difficult toeffect price increases in the future

The rural consumer is sensitive about being portrayed as poor Dont do it! Play on their aspirations instead

Fantasy, Song & Dance, Idiom of the cinema Nirma detergent powder employs song and dance, up-market models and avibrant jingle Navrattan hair oil - Govinda in a dance sequence with Chandramukhi

Use catch-phrases accompanied by matching signature visuals Surf Ultra detergent powder used the hugely evocative phrase - Dhoondtereh jaoge along with the characteristic twirl of the finger Rin detergent bar used the phrase Zara sa Rin along with thecharacteristic flick of the finger



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Use opinion leaders If they are credible, they work Sunlight detergent powder employs a doctor to endorse the brand Colgate dental cream endorsed by a doctor Sarpanch - Anti Leprosy

Leverage the rural consumers belief in folklore and natural ingredients Ganga soap claims that it contains milk and is made from the water ofGanga, a river revered as holy by the majority of Indias Hindu population. Dabur Amla hair oil with Anvla, Lal Dant Manjan with lavng

Depict characters and families that are aspirational yet real It is advisable to use characters that are aspirational and yet middle-of-the-road i.e. not beyond the perceived reach of the rural consumer

avoid being too freaky or too Westernised i.e. jeans are OK but torn ones may notbe



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Exploit the warmth of emotion among family members VIP Alpha luggage - man wants to take back the wife when he goes to townto work again

Consider leveraging the appeal of mass sports Lifebuoy soap has consistently used mass sports like football

Understand and leverage your local culture, beliefs and customs Fair and Lovely skin lightening lotion makes use of peoples belief inpalmist Bajaj scooters uses typical vignettes from Indian life to establish anemotional bond with the consumer



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Make promotions relevant and aspirational Upbeat promotions that promise the possibility of winning a dream prizesuch as a house, gold ornaments etc alternatively look at instant redemptions

Use radio effectively Radio often has a much higher reach than TV or any other medium amongthe rural consumer - and must therefore be considered as a mainline medium

Sampling The importance of sampling cannot be underestimated as it provides a low-risk opportunity to try the product



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Pack Pack is sometimes the only communication medium Due to low literacy levels, particularly in India, recognition of the brandname is mainly through its distinct logo and visual pack properties For this very reason, it is usually inadvisable to make drastic changes inpackaging design and/or pack colours while re-launching the brand

Brand recognition signals Distinctive colours: use lively, bright colours Strong and bright colours usually imply a health proposition, whereaspastels and shades have a cosmetic or beauty connotation For toothpaste, avoid using pack colours that have negative connotations -

like yellow which connotes dirty teeth Synergy across media



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As the rural consumer tend to come to the shop frequently, POSmaterials act as a constant reminder of brand presence and advantage Branding must be done through colour, brand name and symbols: strongvisuals are important POS material should be

Durable: tinplates, plastic, sun-resistant inks Functional and reusable: calendars, mirrors, stands Space-efficient Decorative

Location is key: need to be placed strategically Billboards, wall paintings, banners

Special events which are entertaining are very popular

Folk-song concerts Road shows Travelling cinemas Video parlours



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Ho to se le t r ura l media


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R ura l C ommu ni ation lannin gFramework for selection and evaluation of relevant rural advertising options

for a given communication task


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Th e ra me or

Outline media possibilities for various marketing situations Construct an evaluation system for various rural options Modify it for relevant state as per regional variations Outline execution pointers Outline costs


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Idea lly, t h is is t he req uire ment.

Situation Reach Frequency

Increase penetration High Low

Test Market High High

Pressure Test Low High

Promotion High Low

Maintenance Low Low


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But..budgets are limited.


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R ea h or F req uen y?

Depends on launch period in villages

If recently launched,


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R ea h & F req uen y optionsLearnings from projects executed by Linterland


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In rease penetration

an Based Ad ertisin gMe lasDire t to HomeF olklore gro upsE h i itions C reated e ents

HighR ea h

LoR ea h

High F req uen y Lo F req uen y


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Test mar ketin g

J eep ased ad ertisin gWall Paintin gB us S tandB us Pane lsHaats

Hoardin gsPosta l brandin g

HighR ea h

LoR ea h



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Press ure Test

C o operati e N oti e BoardSh op F ront Paintin gTin Platin g HouseDea ler Boards

illage Boards

We ll TilesC alendars Labl es

HighR ea h

LoR ea h



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Pro motions

an Based Ad ertisin gMe lasDire t to HomeF olklore gro upsE h ib itions C reated e ents

HighR ea h

LoR ea h



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Maintenan e

Tin Platin g Trees Sh opsLea letsPostersBannersS trea mers Dan glers

HighR ea h

LoR ea h



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Th an k you!

lintas rural initiatives

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