So, I’ve been working on a Rural Marketing project at work, where I have been told to get good understanding about rural marketing and device ideas on how to market our client’s (Tobacco Industry) product in the rural areas of Africa. Looking through all the stuff that’s online, I was amazed to see how companies are taking this initiative very seriously. Of course, I was also pleased to see that India, the country where I am from, is a pioneer in rural marketing! They are the biggest example of rural marketing success stories in the world. With over 70% of India’s population in the rural areas, this was inevitable, but still brilliant, especially to see how the mix of creativity and practicality is being implemented by the business in their rural marketing strategies.
As you might know, Indians are reputed and considered to be “cheap”, however, I beg to differ, we just want value for our money. So, after this intensive research, I thought I could compile a little portion of my findings and maybe help someone get a basic understanding of Rural Marketing.
So what is Rural Marketing exactly? Rural Marketing is promotion of a company's products in the rural market by using strategies which differ from that of the urban market. The rural market is more price sensitive, but it has preference for quality.
And why is it an opportunity? The green revolution has highly increased the disposable income of farmers, Due to the vast size of rural markets in Asia and Africa, there are lots of opportunities, Rural customers are more passionate about brands than urban customers, the scarcity of media bandwidth results to an abundance of attention, and lastly, Urban markets are congested with too many competitors and has reached its’ saturation point.
What are the customers like in the rural areas and what they expect from a product?
Product/Price:
o Avoid sophisticated packaging
o Small unit packaging à Low volume = Low price
o Refill/reusable packs
o Low cost, value for money product
o All in one packs à convenient, value for money
o Example: Hindustan Lever has launched a variant of its largest selling soap brand, Lifebuoy at Rs. 2 for 50 grams.
Brand Name awareness:
o High in rural areas
o Brand name/logo is essential as it can be easily remembered
Product involvement:
o Sales promotion activities in village fairs
o Increasing promotions during sporting events
o Taking interest in the lives of the rural population (education drives, charity)
o Competitions - generate excitement
Brand loyalty Vs. Stickiness
o Due to lack of information – rural people are less likely to switch
o Rural customers are comfortable buying tried and tested products, more brand sticky than loyal
Packaging:
o Product appeal: Bold Colors
o Ability to recognize
o Distinct lettering, clear images or symbols
Yes, I know information overload!! But these are just little snippets of my findings. The database is so vast and it is really interesting! I just thought it would be nice to share the information! Make sure to look up the case studies of companies like Coca-Cola and Unilever, they are really interesting.
And I also promise that all my blogs won’t be loaded with so much information as this one and the previous one! I’m planning on some fun stuff too! =)