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Branding in rural marketing

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Ranjit Achary
Ranjit Achary

Rural markets in India are growing in importance due to increasing awareness of brands, steady economic growth, and rising aspirations. Branding strategies must account for factors unique to rural consumers, such as lower literacy, preference for local media and events, price sensitivity, and seasonal demand. Successful rural branding relies on availability, affordability, acceptability, and awareness of products through tailored distribution networks and communications approaches. Companies are leveraging melas, local entrepreneurs, and customized products to build brand recognition and loyalty among value-conscious rural populations in India.

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* By Ranjit Achary
* High saturation levels in urban * Growing awareness of brands in rural * Ever-growing aspirations in rural * Proliferation of brands in urban * No effects of slow down on rural markets ! *
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* Steady Growth * Composition of Rural Demand * New income due to agricutural and rural development * Rural demand is more seasonal *
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A brand is “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” Importance of Brands to Consumers: * Identification of the source of the product * Assignment of responsibility to product maker * Risk reducer * Search cost reducer * Promise, bond, or pact with product maker * Symbolic device * Signal of quality *
* Separate your brand from your competitors in a unique way Relevant and motivating to your customers * Prospects and channels-it gives you value and make you special. * Enhance your perceived value, there by supporting premium pricing, sheltering you from low price competition. * Contributing to share holder value. (Companies like Morgan Stanley look to evidence of brand strength in setting buy ratings.) * Provide resilience in times of negative press. * Enable you to launch new products more quickly and cost effectively. * Nokia phone aimed at rural markets
* In rural India, the branding rules are distinctly different from urban markets. Not only does the cultural landscape differ, the factors that influence purchasing decisions differ too. Price and value for money are high on their list. * Rural branding calls for a greater component of local media and less of the mass media. Since these markets have specialized forums of their own like temple festivals, melas, cinema halls, these can be leveraged to promote brands. Direct Marketing and events like road shows, film shows, melas, and street theatre can also be used to promote brands. *
* Underdeveloped People and Underdeveloped Markets * Lack of Proper Physical Communication Facilities Media for Rural Communication * Many Languages and Dialects * Dispersed Market * Low Per Capita Income * Low Levels of Literacy * Prevalence of spurious brands and seasonal demand * Different way of thinking *
* Regional Brands have good image * Cable channels and their network * Understanding * Lower cost * One to one relationship * Entrepreneurship *
* AVAILABILITY * AFFORDABILITY * ACCEPTABILITY * AWARENESS *
* AVAILABILITY * LG has set up 45 area offices and 59 rural/remote area offices. * To service remote village, stockists use auto-rickshaws, bullock-carts and even boats in the backwaters of Kerela. * HLL started Project Shakti in partnership with Self Help groups of rural women. * AFFORDABILITY * Godrej introduced three brands of Cinthol, Fair Glow and Godrej in 50-gm packs, priced at Rs 4-5 for U.P, M.P, Bihar. * Hindustan Lever, Lifebuoy at Rs 2 for 50 gm * Coca-Cola - the returnable 200-ml glass bottle priced at Rs 5 * ACCEPTABILITY * LG Electronics’s customized TV-Sampoorna,1lakh sets in the 1st year. * Coca-Cola provides low-cost ice-boxes * AWARENESS * fairs and festivals, Haats, etc. Cinema vans, shop-fronts, walls and wells. * Lux and Lifebuoy and fabric wash items like Rin and Wheel 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 innovative media. * HUL used local fairs and festivals ,Coca-Cola used Doordarshan TV * LG Electronics uses vans and road shows to reach rural customers * Philips India uses wall writing and radio advertising to drive its growth in rural areas. *
Contraceptive Social Marketing Programme Titan Sonata Tele AD Building Rural India's First Mobile Phone Supply Chain
* Indian rural market is undoubtedly complex but there are some simple truths that we need to accept. The rural consumers are very value-conscious. * They may or may not have purchasing power, but they can make a difference to the company's growth if concentrated. * The growing power of the rural consumer is an opportunity for the companies to flock to the rural markets. * The basic underline for preference for brands in rural areas is the functional and not psychological benefit. * With the technological innovations, infrastructure development and enrichment of human capital in rural areas the companies can earn huge profits *
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More Related Content

Branding in rural marketing

  • 1. * By Ranjit Achary
  • 2. * High saturation levels in urban * Growing awareness of brands in rural * Ever-growing aspirations in rural * Proliferation of brands in urban * No effects of slow down on rural markets ! *
  • 3. *
  • 4. * Steady Growth * Composition of Rural Demand * New income due to agricutural and rural development * Rural demand is more seasonal *
  • 5. *
  • 6. *
  • 7. A brand is “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” Importance of Brands to Consumers: * Identification of the source of the product * Assignment of responsibility to product maker * Risk reducer * Search cost reducer * Promise, bond, or pact with product maker * Symbolic device * Signal of quality *
  • 8. * Separate your brand from your competitors in a unique way Relevant and motivating to your customers * Prospects and channels-it gives you value and make you special. * Enhance your perceived value, there by supporting premium pricing, sheltering you from low price competition. * Contributing to share holder value. (Companies like Morgan Stanley look to evidence of brand strength in setting buy ratings.) * Provide resilience in times of negative press. * Enable you to launch new products more quickly and cost effectively. * Nokia phone aimed at rural markets
  • 9. * In rural India, the branding rules are distinctly different from urban markets. Not only does the cultural landscape differ, the factors that influence purchasing decisions differ too. Price and value for money are high on their list. * Rural branding calls for a greater component of local media and less of the mass media. Since these markets have specialized forums of their own like temple festivals, melas, cinema halls, these can be leveraged to promote brands. Direct Marketing and events like road shows, film shows, melas, and street theatre can also be used to promote brands. *
  • 10. * Underdeveloped People and Underdeveloped Markets * Lack of Proper Physical Communication Facilities Media for Rural Communication * Many Languages and Dialects * Dispersed Market * Low Per Capita Income * Low Levels of Literacy * Prevalence of spurious brands and seasonal demand * Different way of thinking *
  • 11. * Regional Brands have good image * Cable channels and their network * Understanding * Lower cost * One to one relationship * Entrepreneurship *
  • 12. * AVAILABILITY * AFFORDABILITY * ACCEPTABILITY * AWARENESS *
  • 13. * AVAILABILITY * LG has set up 45 area offices and 59 rural/remote area offices. * To service remote village, stockists use auto-rickshaws, bullock-carts and even boats in the backwaters of Kerela. * HLL started Project Shakti in partnership with Self Help groups of rural women. * AFFORDABILITY * Godrej introduced three brands of Cinthol, Fair Glow and Godrej in 50-gm packs, priced at Rs 4-5 for U.P, M.P, Bihar. * Hindustan Lever, Lifebuoy at Rs 2 for 50 gm * Coca-Cola - the returnable 200-ml glass bottle priced at Rs 5 * ACCEPTABILITY * LG Electronics’s customized TV-Sampoorna,1lakh sets in the 1st year. * Coca-Cola provides low-cost ice-boxes * AWARENESS * fairs and festivals, Haats, etc. Cinema vans, shop-fronts, walls and wells. * Lux and Lifebuoy and fabric wash items like Rin and Wheel 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 innovative media. * HUL used local fairs and festivals ,Coca-Cola used Doordarshan TV * LG Electronics uses vans and road shows to reach rural customers * Philips India uses wall writing and radio advertising to drive its growth in rural areas. *
  • 14. Contraceptive Social Marketing Programme Titan Sonata Tele AD Building Rural India's First Mobile Phone Supply Chain
  • 15. * Indian rural market is undoubtedly complex but there are some simple truths that we need to accept. The rural consumers are very value-conscious. * They may or may not have purchasing power, but they can make a difference to the company's growth if concentrated. * The growing power of the rural consumer is an opportunity for the companies to flock to the rural markets. * The basic underline for preference for brands in rural areas is the functional and not psychological benefit. * With the technological innovations, infrastructure development and enrichment of human capital in rural areas the companies can earn huge profits *