Project Report on Communication Strategies in Rural Market

Project Report On

“COMMUNICATION STRATEGIES IN RURAL MARKET”

Submitted To:

Submitted By:Group no

Executive Summary A de deba bate te co cont ntin inue ued d fo forr a lo long ng ti time me am amon ongs gstt th thee In Indi dian an ma mark rket eter ers, s, bo both th pr prac acti titi tione oners rs & academicians, on the justification for the existence of the distinct discipline of rural marketing. Cons Co nseq eque uent ntlly, two sc scho hool olss of tho houg ught ht em emer erge ged. d. Th Thee fi firrst sc scho hool ol be beli live ved d th that at th thee  produc  pr oducts/ ts/ser servic vices, es, mar market keting ing too tools ls & str strate ategie giess tha thatt are suc succes cessfu sfull in urb urban an are areas, as, cou could ld be transplanted with little or no more modifications in rural areas. However, the second school saw a clear distinction between urban & rural India, & suggested a different approach, skills, tools & strategies to be successful in rural markets.

What differentiates the two markets is not mere income, but a host of other infrastructural & sociosoc io-cul cultur tural al fac factor tors. s. Thu Thus, s, the rur rural al mar market ket can cannot not be tap tapped ped suc succes cessfu sfully lly wit with h an urb urban an marketing mindset & would definitely require its thorough understanding. In other words, the approach toward rural markets needs to be distinct from the one adopted for the urban markets.

Thus, in a large rural economy like India’s, rural marketing has emerged as an important & distinct internal sub-division within the marketing discipline. This sub-division clearly highlights the differences between rural marketing & mainstream marketing.

RURAL MARKETING Rural marketing involves the process of developing, pricing, promoting, distributing rural specific product and a service leading to exchange between rural and urban market which satisfies consumer demand and also achieves organizational objectives.

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It is a two-way marketing process wherein the transactions can be:

1. Urban to Rural : A major part of rural marketing falls into this category. It involves the sellin sel ling g of pro produc ducts ts and ser servic vices es by urb urban an mar market keters ers in rur rural al are areas. as. The These se inc includ lude: e: Pesticides, FMCG Products, Consumer durables, etc. 2. Rural to Urban : Transactions in this category basically fall under agricultural marketing where a rural producer seeks to sell his produce in an urban market. An agent or a middleman middl eman plays a cruci crucial al role in the market marketing ing process. The following are some of the important items sold from the rural to urban areas: seeds, fruits and vegetables, milk and related products, forest produce, spices, etc. 3. Rural to Rural : This includes the activities that take place between two villages in close  proximity to each other. The transactions relate to the areas of expertise the particular  village has. These include selling of agricultural tools, cattle, carts and others to another  village in its proximity.

Rural marketing requires the understanding of the complexities. Indian agricultural industry has  been growing at a tremendous pace in the last few decades. The rural areas are consuming a large number of industrial and urban manufactured products. The rural agricultural production and

consumption process plays a predominant role in developing the Indian economy. This has designed a new way for understanding un derstanding a new process called Rural Marketing.

CLASSIFICATION OF RURAL CONSUMERS The rural consumers are classified into the following groups based on their economic status:

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The Affluent Group: They are cash rich farmers and a very few in number. They have

affordability but not form a demand base large enough for marketing firms to depend on. Wheat farmers in Punjab and rice merchants of Andhra Pradesh fall in this group.

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goods and is fast The Middle Class: This is one of the largest segments for manufacturedgoods expanding. Farmers cultivating sugar cane in UP andKarnataka andKarnataka fall in this category.

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The Poor: This constitutes a huge segment. Purchasing power is less,   The     but strength is

more. mor e. The They y rec receiv eivee the gra grants nts fro from m gove governm rnment ent and rea reap pthe the benefits benefits of man many y suc such h schemes and may move towards the middleclass. The farmers of Bihar and Orissa fall under this category.

ROADBLOCKS OF INDIAN RURAL MARKETS

There are several roadblocks that make it difficult to progress in the rural market. Marketers encounter a number of problems like dealing with physical distribution, logistics, proper and effective deployment of sales force and effective marketing communication when they enter  rural markets. The major problems are listed below.

1. Standard of living : The number of people below the poverty line is more in rural markets. Thus the market is also underdeveloped and marketing strategies have to be different from those used in urban marketing. 2.

Low lite literacy racy leve levels ls: The low literacy levels in rural areas leads to a problem of 

comm co mmun unic icat atio ion. n. Pr Prin intt me medi diaa ha hass le less ss ut util ilit ity y co comp mpar ared ed to th thee ot othe herr me medi diaa of  communication. 3.

Low per capita income : Agriculture Agriculture is the main sour source ce of incom incomee and hence spendi spending ng

capacity depends upon the agriculture produce. Demand may not be stable or regular. 4. Transportation and warehousing : Transportation is one of the biggest challenges in rural markets. As far as road transportation is concerned, about 50% of Indian villages are connected by roads. However, the rest of the rural markets do not even have a proper  road linkage which makes physical distribution a tough task. Many villages are located in hilly terrains that make it difficult to connect them through roads. Most marketers use tractors or bullock carts in rural areas to distribute their products. Warehousing is another  major problem in rural areas, as there is hardly any organized agency to look after the storag sto ragee is issue sue.. The ser servic vices es ren render dered ed by cent central ral war wareho ehousi using ng cor corpor porati ation on and sta state te warehousing corporations are limited only to urban and suburban areas. 5.

Ineffective distribution channels : The distribution chain is not very well organized and

requires a large number of intermediaries, which in turn increases the cost and creates administrative problems. Due to lack of proper infrastructure, manufacturers are reluctant to open outle outlets ts in these areas areas.. They are mainly dependent dependent on deale dealers, rs, who are not easily available for rural areas. This is a challenge to the marketers. 6.

Factors rs like cultural congruence, different different Many languages and diversity in culture : Facto  behaviour and language of the respective areas make it difficult to handle the customers.

Traits among the sales force are required to match the various requirements of these specific areas. 7.

Lack of communication system : Quick communication is the need of the hour for 

smooth conduct of business, but it continues to be a far cry in rural areas due to lack of  communication facilities like telegraph and telecommunication systems etc. The literacy rate in the rural areas is rather low and consumer’s behaviour in these areas is traditional, which may be a problem for effective communication. 8. Spurious brands: Cost is an important factor that determines purchasing decision in rural areas. A lot of spurious brands or look-alikes are available, providing a low cost option to the rural customer. Many a time the rural customer may not be aware of the difference due to illiteracy. 9. Seasonal demand: Demand may be seasonal due to dependency on agricultural income. Harvest season might see an increase in disposable income and hence more purchasing  power. 10. Dispersed markets : Rural population is highly dispersed and requires a lot of marketing efforts in terms of distribution and communication.

EVOLVING A NEW PROMOTIONAL MIX FOR SELLING TO RURAL INDIANS Promotions & Advertising There are a lot of barriers that militate against homogenous media and message delivery. These barriers stem from the fact that rural markets vary immensely in terms of tastes, habits and preferences leading to different expectations of every segment of the population.

However, one fact is certain across all areas. The rural consumer likes to touch and feel a product before making a choice. Demonstrations are undoubtedly the most effective promotional tool that shapes   purchase decisions of the rural population. Demonstrations establish the credentials of any new technology used in developing the product.

In today’s information era, it is very important for companies to wise-up on emerging technologies. It has in fact become a medium to attract larger audiences for a product demonstration. Technology must be used to prepare a database of customers and their requirements. The use of video using mobile vans and even large screen video walls at events should be arranged.

The classic conundrums of reach and coverage of the media are shattered. Several creative communication media have been used by various companies to tackle the problem of having to use visual communication and non-verbal communication to reach the rural audience. This is required because a large proportion of the rural population cannot read or write. Alliances with cottage industries, dharmsalas, panchayats, post offices and police stations for advertising have also helped immensely. More importantly, in rural India, experience has proved time and time again that word of mouth is the key influencer.

Intermediaries are the foundation to rural distribution. If the intermediary understands and is constantly reminded about your product, then the end user will not be allowed to forget. The companies must reinforce this highly effective medium and use all their innovation and money tom develop more dramatic  point of sale and point of contact material. This becomes all the more important when in rural India, more often than not, the overlap between the product categories sold in a single outlet in tremendous. For  instance, a store may call itself as a grocery store but will stock everything from groceries to vegetables to fertilizers and may at times even stock medicines. In such cases, the point at which the customer actually comes in contact with a product may not be the point at which the sale is affected.

The re-use capacity and colour of the container in which the product is packed is also a crucial factor. In fact, reusable packaging is considered a major aid in promoting sales for products in the rural market.

Consumer and Trade schemes that Incentivise Spending using discount coupons, off season discounts, free samples, etc. encourage spending. Lucky draws and gift schemes are a major hit in most states.

The use of local idioms and colloquial expressions are an excellent way to strike a rapport with the rural consumer and must be borne in mind when developing media plans and public relations programmes. No high voltage publicity is required. The rural consumer is very down to earth but equally discerning and marketers need to step into the shoes of the rural folk while creating product promotion campaigns.

Another unique feature of rural markets is that the Decision making process is collective. The persons involved in the purchase process - influencer, decider, buyer, one who pays can all be different. So marketers must address brand messages in their campaigns at several levels. Apart from regular  household goods, several agribusiness companies have also started providing gift schemes with offers for  free jewellery that influences the ladies to pressure the farmers to purchase agricultural inputs from select companies. This promotion strategy thus makes women influence purchase decisions that they would ordinarily not be involved in.

Youth power is becoming increasingly evident in villages. Rural youth bring brand knowledge to the households. This has forced several companies to change the focus and positioning of their products and services towards this segment that is growing in absolute number and r elative influence.

There are other attributes in the promotion strategy which are explained as under: 1.

Mass media: In the present world mass media is a powerful medium of communication.

The following are the mass media generally used: Television. Cinema Radio

Print media: Handbills and Booklets, posters, stickers, banners, etc. 2.

Personal selling and opinion leaders: In personal selling it is required that the

  potential users are identified and awareness is created among them about the product, its features, uses and benefits. This can be achieved only by personal selling by highly motivated sales person. In fact the word of mouth information holds lot validity in rural areas even today. This is the reason why opinion leaders and word of mouth are thriving among rural consumers. An opinion leader in rural areas can be defined as a person who is considered to be knowledgeable and is consulted by others and his advice is normally followed. The opinion leaders may be big landlords or politicians or progressive farmers. 3.

Special campaigns: During crop harvest and marketing seasons it is beneficial to take

up special promotion campaigns in rural areas. Tractor owners (tonee) conducted by MRF Limited is one such example. Brooks Bond carries out marches in rural areas with band, music and caparisoned elephants to promote their brand of tea.

MANDI AND MELA MAGIC At last count, India witnessed over 50,000 melas. Of these 25,000 meals are held to signify religious, cultural festivals as well as local fairs and events. On an average, visitors at these melas spend between Rs. 5,000 to Rs. 50,000 a day. For example, 3 lakh people visited the annual mela at Navchadi which lasts for 7 days in Meerut. The largest such mela is the Maha Kumbh Mela which is visited by an average of  12 crore people.

There is however, a caveat when an organization is considering using mela for marketing their products. Is the audience at this mela fit for promotion of the product at hand? What are the psychographics of this audience? What is the motivational and behavioural impetus that brings visitors to each of these melas. On considering these questions, it has been observed that melas are fit to generate product exposure,   package familiarity, brand reminder and word of mouth. However, for products that need concept marketing and those that have high prices, such melas are not suitable promotion media. This is because the time and the mood of the people that visit these melas are not right to digest technical information or  for making large purchases. People come to melas to have a good time and are not reminded of such high technology or high priced products when they return home. In the words of Mr. Neville Gomes, Managing Director of Multimedia Aquarius, promotion at melas is like a “one night stand”. There will be

no reminder later. Thus, a large amount of qualitative judgment is indeed in planning promotions at melas  by media planners.

Significance of Distribution  No matter how well devised a company’s product, pricing or promotion strategy, the most crucial link in ensuring the success of rural marketing efforts is distribution. Distribution must be strengthened and this would raise investment cost barriers for new entrants.

In Rural India, the selection and use of distribution channels is a nightmare. The reason for this is very clear when we consider that on an average, Urban and Rural India both have approximately 3 million retail outlets. However, Urban India has only 4,000 towns where these outlets are located. On the other  hand, Rural India’s 3 million outlets are located in 6.3 lakh villages. Thus, marketers are faced with the  problem of feeding 3 million shops located in vastly diverse areas each of which records an average sale of only Rs.5,000 per outlet. Further compounding this problem is the fact that even this meagre sale is mostly on credit. The diversity in the distribution of shops is the self-limiting factor in terms of servicing the rural distribution network.

The distribution of outlets however shows that a marketer need not be present in all markets at all times. Being present in 6 lakh villages is virtually impossible for an organization of any size. Rural wealth and demand is concentrated typically at satellite towns, district headquarters, assembly markets and such central locations. Rural distribution has a rigid hierarchy of markets that make channel decisions relatively structured.

It is essential for rural marketing companies to understand this hierarchy. Rural folk are habituated to travelling once a week for their weekly purchases to a satellite town. They do not expect such items to be  present in every village. For durables where the outlay involved is typically large, the purchase would be made in an assembly market for reasons of choice and availability of adequate cash flow. This is due to the fact that it is at assembly markets that auction yards are present where the farmers congregate to sell their output. After such sale of produce, they are cash rich and can afford to make such purchases. It is therefore not necessary for a marketer of TV sets to take their distribution channel all the way down to the village shop. A TV will not be sold there as the cash flow does not exist at that point in the hierarchy of  markets. A television distributor must be present at assembly markets which are much smaller in number, more controllable, easier to reach and service. Keeping the hierarchy in mind will help decide the optimum level of penetration required to reach a critical mass of rural consumers.

Haats Haats are the nerve centre of Rural India. They are a readymade distribution network embedded in the fabric of rural society for over 1000 years. They have been held on a regular basis across the length and  breadth of the country for over 1000 years. Right from the time of Chandragupta Maurya, Haats are seen as a place for social, cultural and economic interchange.

One in every five villages with a population of over 2000 has a haat. In villages with less than 2000  people this figure reduces to 1 in 20 villages. Typically, an average haat will have close to 300 stalls. A haat usually serves around 5000 visitors. Considering that the average population of an Indian village is approximately 1000, each haat serves 5 villages. A study estimates that 47,000 haats are conducted in rural India. These rural super markets are much larger than all the world's K-marts and Wal-marts put together.

A lot of re-distribution also occurs through haats. This is because, a large number of retailers and subwholesalers buy from haats for their village stores. What is most attractive to marketers is that 90% + of  sales in haats are on cash basis. Traditionally, in village shops a lot of credit sales occur due to the fact that in a small geographic area of a village, everybody knows everybody. Considering that over 5000 visit a haat from 5 villages, the system gets derelationalised. Apart from the 90% cash sale, 5 to 7% is conducted on barter system and the rest 3 to 5% is on credit. Also attractive to companies wishing to use the system is the low selling overheads. Participation fees at haats are a flat Re.1 to Rs.5 per stall and this rate is common to a giant like Hindustan Lever and the smallest local seller.

Distribution costs must be reduced through optimum utilization of the network. Thus, incorporating haats in the distribution strategy of a rural marketing organization selling consumer goods and FMCG products (typically once a week purchase items) is a tremendous opportunity.

Perhaps the other most important factor to consider while developing rural distribution strategy is that the move from transactional marketing to relationship marketing is most evident in the village market. A strong bond needs to be created with every consumer even in the remotest village and the smallest town. Marketing in Rural India is undoubtedly a long-haul exercise and one that involves great expense. Only those with a strong mind, a tough heart and stiff hands survive.

There is also a need to realise that the dealer is the company's "unpaid" sales force. It is essential to educate and involve him as he is the local company representative and is the only member in

the channel of distribution that is in direct contact with the final c onsumer. The dealers' feedback needs to  be obtained as the direction for future strategy emanates here.

MARKRTING STRATEGIES TO CAPTURE RURAL INDIA

SEGMENTATION OF RURAL MARKET

The first step is to develop & implement any strategy for the rural market should include the appropriate segmentation of the rural market. The important thing is that appropriate segmentation basis need to be applied. Different product categories have different rural markets to cater to & these can be selected by applying different criteria of segmentation. The organization can do the following thing to start with:  Focus on select markets.  Focus on select villages.

BY COMMUNICATING AND CHANGING QUALITY PERCEPTION

Companies are coming up with new technology and they are properly communicating it to the customer. There is a trade of between Quality a customer perceives and a company wants to communicate. Thus, this positioning of technology is very crucial. The perception of the Indian about the desired product is changing. Now they know the difference between the products and the utilities derived out of it. As a rural Indian customer always wanted value for money with the changed perception, one can notice difference in current market scenario.

BY PROPER COMMUNICATION IN INDIAN LANGUAGE

The companies have realized the importance of proper communication in local language for    promoting their products. They have started selling the concept of quality with proper  communication. Their main focus is to change the Indian customer outlook about quality. With their promotion, rural customer started asking for value for money.

BY TARGET CHANGING PERCEPTION

If one go to villages they will see that villagers using Toothpaste, even when they can use Neem or Babool sticks or Gudakhu, villagers are using soaps like Nima rose, Breeze, Cinthol etc. even when they can use locally manufactured very low priced soaps. Villagers are constantly looking forward for new branded products. What can one infer from these incidents, is the paradigm changing and customer no longer price sensitive? Indian customer was never price sensitive, but they want value for money. They are ready to pay premium for the product if the product is offering some extra utility for the premium.

BY UNDERSTANDING CULTURAL AND SOCIAL VALUES

Companies have recognized that social and cultural values have a very strong hold on the people. Cultural values play major role in deciding what to buy. Moreover, rural people are emotional and sensitive. Thus, to promote their brands, they are exploiting social and cultural values.

BY PROVIDING WHAT CUSTOMER WANT

The customers want value for money. They do not see any value in frills associated with the  products. They aim for the basic functionality. However, if the seller provides frills free of cost they are happy with that. They are happy with such a high technology that can fulfil their need. As "Motorola" has launched, seven models of Cellular Phones of high technology but none took  off. On the other hand, "Nokia" has launched a simple product, which has captured the market.

BY PROMOTING PRODUCTS WITH INDIAN MODELS AND ACTORS

Companies are picking up Indian models, actors for advertisements as this helps them to show themselves as an Indian company. Diana Hyden and Shahrukh Khan are chosen as a brand ambassador for MNC quartz clock maker "OMEGA" even though when they have models like Cindy Crawford.

BY ASSOCIATING THEMSELVES WITH INDIA

MNCs are associating themselves with India by talking about India, by explicitly saying that they are Indian. M-TV during Independence Day and Republic daytime make their logo with Indian tri-colour. Nokia has designed a new cellular phone 5110, with the India tri-colour and a ringing tone of "Sare Jahan se achcha".

BY PROMOTING INDIAN SPORTS TEAM

Companies are promoting Indian sports teams so that they can associate themselves with India. With this, they influence Indian mindset. LG has launched a campaign "LG ki Dua, all the best". ITC is promoting Indian cricket team for years; during world cup they have launched a campaign "Jeeta hai jitega apna Hindustan India India India". Similarly, Whirlpool has also launched a campaign during world cup.

BY TALKING ABOUT A NORMAL INDIAN

Companies are now talking about normal India. It is a normal tendency of an Indian to try to associate him/her with the product. If he/she can visualize himself/herself with the product, he /she become loyal to it. That is why companies like Daewoo based their advertisements on a normal Indian family.

BY DEVELOPING RURAL-SPECIFIC PRODUCTS

Many companies are developing rural-specific products. Keeping into consideration the requirements, a firm develops these products. Electrolux is working on a made-for India fridge designed to serve basic purposes: chill drinking water, keep cooked food fresh, and to withstand long power cuts.

BY GIVING INDIAN WORDS FOR BRANDS

Companies use Indian words for brands. Like LG has used India brand name "Sampoorna" for its newly launched TV. The word is a part of the Bengali, Hindi, Marathi and Tamil tongue. In the  past one year, LG has sold one lakh 20-inch Sampoorna TVs, all in towns with a population of  around 10,000.

BY ACQUIRING INDIAN BRANDS

As Indian brands are operating in India for a long time and they enjoy a good reputation in India. MNCs have found that it is much easier for them to operate in India if they acquire an Established Indian Brand. Electrolux has acquired two Indian brands Kelvinator and Allwyn this has gave them the well-established distribution channel. As well as trust of people, as people  believe these brands. Similarly Coke has acquired Thumps up, Gold Spot, Citra and Limca so that they can kill these brands, but later on they realized that to survive in the market and to compete with their competitor they have to rejuvenate these brands.

BY EFFECTIVE MEDIA COMMUNICATION

Media Rural marketing is being used by companies. They can either go for the traditional media or the modern media. The traditional media include melas, puppetry, folk theatre etc. while the modern media includes TV, radio, and e-chaupal. LIC uses puppets to educate rural masses about its insurance policies. Govt of India uses puppetry in its campaigns to press ahead social issues. Brook Bond Lipton India ltd used magicians electively for launch of Kadak Chap Tea in Etawah district. In between such a show, the lights are switched of and a torch is flashed in the dark (EVEREADYs tact).

BY ADOPTING LOCALISED WAY OF DISTRIBUTING

Proper distribution channels are recognized by companies. The distribution channel could be big scale Super markets; they thought that a similar system can be grown in India. However, they were wrong; soon they realized that to succeed in India they have to reach the nook and the corner of the country. They have to reach the "local Paan wala, Local Baniya" only they can succeed. MNC shoe giants, Adidas, Reebok, and Nike started with exclusive stores but soon they realized that they do not enjoy much Brand Equity in India, and to capture the market share in India they have to go the local market shoe sellers. They have to reach to local cities with low  priced products.

BY ASSOCIATING THEMSELVES WITH INDIAN CELEBRITIES

MNCs have realized that in India celebrities enjoyed a great popularity so they now associate themselves with Indian celebrities. Recently Luxor Writing Instruments Ltd. a JV of Gillette and Luxor has launched 500 "Gajgamini" ranges of Parker Sonnet Hussain special edition fountain  pens, priced at Rs. 5000. This pen is signed by Mr. Makbul Fida Hussain a renowned painter  who has created "Gajgamini" range of paintings. Companies are promoting players like Bhaichung Bhutia, who is promoted by Reebok, so that they can associate their name with  players like him and get popularity.

MELAS

Melas are places where villagers gather once in a while for shopping. Companies take advantage of such events to market their products. Dabur uses these events to sell products like JANAM GHUTI (Gripe water). NCAER estimates that around half of items sold in these melas are FMCG products and consumer durables. Escorts also display its products like tractors and motorcycles in such melas.

PAINTINGS

A picture is worth thousand words. The message is simple and clean. Rural people like the sight of bright colors. COKE, PEPSI and TATA traders advertise their products through p aintings.

PROMOTION STRATEGIES

Customized promotional media & messages need to be developed by the organizations to effectively target the rural market. The following strategies can be considered while developing  promotional campaigns for the rural markets:

1. Think Global Act Local Rural population is diverse, but the commonalities of their ethos & simple living habits need to be understood for advertising to succeed. For that, the theme of the advertisement needs to revolve among universal themes, such as family-love. But the context, storyline, language & idioms should be such that the rural audience of different rural market segments can relate to.

2. Think in Local Idiom This is the need of the advertising professionals who can think like the rural people. The only we can have insights like ‘Thanda

matlab Coca Cola’ .

There should be the use of 

language writers who understands the rural & regional pulse better.

3. Simplicity & Clarity All promotional messages targeted at rural audience need to be simple & clear, which can  be easily understood, & they should not include any confusing elements. It is preferable that it has only a few propositions at a time. Bombarding rural consumers with too much, in less time can easily confuse them & leave them bewildered. Promotional message should highlight only the functional values of the product & explains how those values can make the consumer’s life even better & solve any of his problems.

4. Narrative Story Style The promotional message can be delivered in the form of an entertaining story with a message depicting how the brand delivers “larger good” to the family & society. The theme of the story line can be about how the product can solve the problems of the rural consumers.

5. Choice of Brand Ambassador Brand Ambassador for the rural markets need to be picked carefully as urban successes might not get replicated in the rural markets. That is why Govinda in the Mirinda as  boosted the sales of the drink in the rural markets. An organization might spend a lot of  money in hiring a brand ambassador only to find out later that it had little impact on the rural consumer.

DISTRIBUTION STRATEGY Many companies view the rural markets as great opportunity for expanding their sales but find distribution as a major problem. Unfortunately, it is almost impossible to transplant strategies which work successfully in urban markets onto rural markets, namely, extensive retailing and sustained pull generation through mass media advertising.

The road blocks to reach the rural customers are:

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Lack of adequate transport facilities.

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Large distances between villages.

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Lack of pucca roads connecting villages to nearest townships.

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Lack of proper retail outlets

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Lack of mass media infrastructure.

The marketers were of the opinion that the villagers would come to nearby towns and buy the  products that they want.

What has been found is that if we have to serve the rural consumer we will have to take our   products to him through the channels that he is using and some innovative ways of getting to him.

The following distribution strategies formulated for the rural category. 1.

Coverage of villages with 2000 and above population: Ideally, coverage of 

villages with up to 2000 and above population could be the break-even point for a distribution setup. By doing so the percentage of villages covered comes to only 10% of all the villages, but the rural population covered will be substantial, to the extent of about 40 to 45 percent. With a distribution network in about 55,000 villages, which have a population of 2000 persons & above each, one can cover about 25 crores rural consumers. This strategy is good to begin with & then subsequently, villages with lesser populations can be added. 2. Segmentation: The number of villages in India is huge & it is not viable to contact &

serve all villages directly. Therefore, companies or distributors can carefully examine the market   potential of different villages & target the villages that can be served in a financially viable manner through an organized distribution effort. 3.

Use of co-operative societies: There are over 3 lacks co-operative societies operating

in rural areas for different purposes like marketing cooperatives, farmer’s service cooperatives and other multipurpose cooperatives. These cooperatives have an arrangement for centralized   procurement and distribution through their respective state level federation. Such state level federation can be motivated to procure and distribute consumables items and low value durable items to the members to the society for serving to the rural consumers. Many of the societies extend credit to the members for purchases. 4.

Utilization of public distributory system: The PDS in the country is fairly well

organized. The revamped PDS places more emphasis on reaching remote rural areas like the hills and tribal’s. The purpose of PDS is to make available essential commodities like food grains, sugar, kerosene, edible oils and others to the consumers at a reasonable price. The shops that distribute these commodities are called fair price shops. These shops are run by the state civil Supplies Corporation, co-operatives as well as private entrepreneurs. Here again there is an arrangement for centralized procurement and distribution. The manufacturing and marketing men should explore effective utilization of PDS.

5.

Utilization of multipurpose distribution centers by petroleum/oil

companies: In order to cater to the rural areas the petroleum/oil companies have evolved a concept of multipurpose distribution centers in rural areas. In addition to petrol/diesel, lubricants, these outlets also stock consumables agricultural inputs like fertilizers, pesticides and seeds. It is estimated that there are about 450 such outlets in operation in the country. The rural consumer  who has tractors, oil-engine pump sets and mopeds frequent these outlets for their requirement. These outlets can be profitably utilized for selling consumables and durable items also. 6. Distribution up to feeder markets/mandi towns: Keeping in view the hierarchy of 

markets for the rural consumers, the feeder markets and mandi towns offer excellent scope for  distribution. The rural customers visit these towns at regular intervals not only for selling the agricultural produce but also for purchasing cloth, jewelry, hardware, radios, torch cells and other durables and consumer products. From the feeder markets and mandi towns the stockiest or  wholesaler can arrange for distribution to the village shops in the interior places. This distribution can be done by mopeds, cycles, bullock-carts, camelbacks etc. depending upon the township. 7.

Shandies/Haaths/Jathras/Melas: These are places where the rural consumers

congregate as a rule. While shandies/heaths are held a particular day every week, Jathras and melas are held once or twice a year for longer durations. They are normally timed with religious festivals. Such places attract large number of itinerant merchants. Only temporary shops come up selling goods of all kinds. It can be beneficial for companies to organize sales of their product at such places. Promotion can be taken, as there will be ready captive audience. For convincing the manufacturing and marketing man with regard to the importance of these places from rural marketing point of view a visit to such places is necessary. It is estimated that over 5,000 fairs are held in the country and the estimated attendance is about 100 million rural consumers. Biggest fair ‘Pushkar Mela’ is estimated to attract over 10 million people. There are 50 such big rural fairs held in various parts of country, which attract urbanite also like ‘Mankanavillaku’ in Malappara in Kerela, Kumbh Mela at Hardwar in U.P. ‘Periya Kirthigai’ at Tiruparunkunaram in Tamil Nadu.

 Merits:

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Convenience: The entire market can be related to large departmental stores in cities,

where the advantage is a one-stop shopping exercise. These outlets crop up every week,  providing consumers immense choice and prices.

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Attractive: The weekend shopping is not only convenient but also entertaining. The

markets start early and will be over by lunch. Afterwards, there will be entertainment. In respect of transactions, it is an attractive place to those who want to buy second hand durables and to those who prefer barter transactions. Further the freshness of the produce,  buying in bulk for, a week and the bargaining advantage attract the frugal and weeklong hard working rural folk.

•

Availability : It is a market for everyone and for everything. Household goods, clothes,

durables, jewellery, cattle, machinery, farming equipment, raw materials and a host of   products are available.

8. Agricultural Input Dealers: Fertilizers should be made available to the farmers within

the range of 4-5 km from their residence, as per the essential commodities act. This is why there are about 2 lakh fertilizer dealers in the country, both in cooperative & private sector. Example of Varana Nagar in Maharashtra proved an eye opener in this regard where the sugar and milk  co-operatives have totally changed the life style of people. The supermarket in Varana Nagar  caters exclusively to rural consumers. Similarly a co-operative supermarket called ‘Chintamani’ in Coimbatore (T.N) arranges free transit of rural consumers to the supermarket of their   purchases. 9. Joint distribution by Non-competing Companies: As the cost of distributing the

 products in the rural market through distribution vans can be unviable for a single company, different non-competing companies can come together to jointly operate distribution vans for the

rural market. This will enable them to share the cost of operating the van & on account of the sharing of the cost by four or five companies; the entire operation can become financially viable for all the players.

10. Personal Selling Network: It is very successful distribution channel being developed

 by companies like HUL. It adds a personal touch to the marketing, as the salesmen are the resident of the village or community itself, making it easier to sell the product & maximise sales for the company.

THE OLD SETUP The historically available people & places for distribution include: - Whole seller, Retailer, Vans, Weekly Haats, and Bazaars & Shadies.

1. Wholesalers

The Indian wholesaler is principally a Galla – Kirana (food-grain) merchant who sustains the  belief that business is speculative rather than distributive in character.

He is a trader / commodity merchant rather than a distributor and therefore tends to support a  brand during boom and withdraw support during slump.

The reason for this speculative character and dormant role of wholesalers are: -

•

Indian market was largely sellers market. There was no need for active sales growth.

•

Companies laid more emphasis or retailers in urban areas, who are very large in number. As a result of retail based distribution was weakened.

•

Rural markets were neglected by many. The occurrence of retail outlets was low. Therefore many companies were dependent on whole salers.

The current need is to activate and develop wholesaler of the adjoining market as a distributor of products to rural retail outlets and build his loyalties to the company.

2. Retailers

There are different kinds of retailers.   Shops within the village



  Shops located on the main road and not exactly within the village



  Kasba market or the tahsil market.



Village retailers have traditionally been among the most mobile of rural residents. Often doubling up as money lenders. Their multi – person interaction in the closed village society.

As a result retailers play a significant role.

I. CREDIBILITY:  He enjoys the confidence of the villagers.  His views are accepted and followed by the rural people whose awareness and

media exposure levels are low.

(-

The urban retailer is not trusted.

-

He is seen as a businessman with profit motto.

-

His view points are evaluated with other sources of information.)

II. INFLUENCE LEADER:  His role as influence leader is indisputable. From tender twig of neem to

washing powder retailer testimony has been vital part of the product adoption  process.  The role of urban retailer is weak.  The urban consumers have numerous sources of information.

 Although retailer’s opinion is sought it may not be 100% believed and

followed.

III. BRAND PROMOTER:  In rural market retailers remains the deciding factor to sell particular brand.  Retailers helps in identification and selection of brands, there is less influence

of shelf displays and point of purchase promotion.  Presence of spurious brands is an ample testimony to this view.

(- The urban retailer has a limited role as a brand promoter. -

He cannot directly, recommend the brands.

-

He is to intelligently drive home his recommendations, as urban consumers do not trust him completely.

-

It is through shelf displays and incentive offers that he has to push the  brands.)

IV. RELATIONSHIP MARKETER   Village retailer practices relationship marketing.  He caters to a set of buyers who have income from immovable land resources

and would be static over a much longer time span.  The relationship could extend beyond three generations, backed by historical

credibility of the retailer as a product referral. (-

on the contrary, the urban retailers have to make an effort to adopt relationship marketing.

-

His customers base comprises largely the mobile service class prone to shift residence at least once, if not more, in less than a decade. This limits the time span and perspective of the retailer – customer  relationship.)

V. HARBINGER OF CHANGE

 In an environment relatively isolated from external developments, he has

 been harbinger of change.  He is one of the main sources of information and opinion as well as

supplier of product and services.

(As against this, we find urban retailer, wielding limited influence in changing the  product choices and quality of life of consumers.)

3. Vans

Mobile vans long since, have an important place in distribution and promotion of the products in villages. JK Dairy launched whitener ‘Dairy Top’ in small 50 gm sachets priced at Rs. 6.50. It decided to make a concerted foray into rural India in 1996. It hired vans to  penetrate the rural interior, each van traveling around 125 km a day, 25 days a month. 4. Weekly Haats, Bazaars, Shandies

The haats are the oldest outlets to purchase household goods and for trade. These markets are very well organized with shopkeepers having pre-assigned spaces for them to sell their  wares. A typical market is in an open field with ample space for displaying all sorts of goods. Its location changes every week. These markets have different names in different regions. But they are strikingly similar in what they sell. It is reported that there are, in all, about 47,000 haats held throughout the country.

Media Vehicles Through the rural markets offer big attractions to the marketers, one of the most important questions frequently asked is “How do we reach the large rural population through different media and methods?

Mass Media Radio Cinema Press TV

Local Media Haats, Melas, Fairs Wall Paintings Hoardings Leaflets

Personalized Media Direct Communication Dealers Sales Persons Researchers

Video Vans Folk Media Animal Parade Transit Media



Formal media

It includes Press and print, TV, Cinema, Radio, and Point of purchase and Outdoor  advertisement. Reach of formal media is low in rural households (Print: 18%, TV: 27%, Cinema: 30%, and Radio: 37%) and therefore the marketer has to consider the following po ints:



Newspapers and magazines:

English newspapers and magazines have negligible circulation in rural areas. However local language newspapers and magazines are becoming popular among educated facilities in rural areas. Examples: Newspapers: Eenadu in A.P., Dina Thanthi in Tamil Nadu, Punjab Kesari in the North, Loksatta in Maharashtra and Tamil magazine Kumudam are very popular in rural areas.



Television:

It has made a great impact and large audience has been exposed to this medium. HLL has  been using TV to communicate with the rural masses. Lifebuoy, Lux, Nihar oil etc are some of the products advertised via television. Regional TV channels have become very popular  especially in Southern states. Examples: SUN TV is very popular even in rural areas in Tamil   Nadu and Asianet is a preferred regional channel in Kerala. Many consumer goods companies and fertilizer companies are using these TV channels to reach the rural customer.



Radio:

Radio reaches large population in rural areas at a relatively low cost. Example: Colgate, Jyoti Labs, Zandu Balm, Zuari industries are some of the companies using radio communication  programme. There are specific programmes for farmers like Farm and Home/Krishi Darshan in regional languages. The farmers have a habit of listening to regional news/agricultural news in the morning and the late evening. The advertisement has to be released during this time to get maximum coverage in rural areas. Another advantage is that the radio commercial can be prepared at short notice to meet the changing needs of the rural folk. Example: Release of a pesticide ad at the time of outbreak of a pest or disease in crops.



Cinema:

About 65% of the earnings from cinema are from rural markets. Film viewing habits is high in certain states like Tamil Nadu, Karnataka and Andhra Pradesh. Village theatres do roaring  business during festivals by having four shows per day. The monthly charge for showing an ad film is within Rs.500. Local distributor or dealer who has good contacts with cinema houses in villages can easily monitor this activity. Examples: Films on products like Vicks,

Lifebuoy and SPIC fertilizers are shown in rural cinema halls. Apart from films, Ad slides can also be screened in village theatres.



Outdoor advertisements:

This form of media, which includes signboards, wall painting, hoarding, tree boards, bus  boards, dealer boards, product display boards etc, is cost effective in rural areas. Symbols,  pictures and colours should be used in POPs meant for rural markets so that they can easily identify the products. Generally rural people prefer bright colours and the marketer should Utilize such cues.



Point of purchase:

Display of hangings, festoons and product packs in the shops will catch the attention of   prospective buyers. However a clutter of such POP materials of competing companies will not have the desired effect and is to be avoided.



Direct mail advertising:

It is a way of passing on information relating to goods or services for sale, directly to  potential customers through the medium of post. It is a medium employed by the advertiser  to bring in a personal touch. In cities lot of junk mail is received by all of us and very often

such mails are thrown into the dustbin whereas a villager get very few letters and he is receptive to such mailers.



Wall paintings:

It is an effective and economical medium for communication in rural areas, since it stays there for a long time depending upon the weather conditions. The cost of painting one square foot area is just Rs.10. Retailers welcome painting of their shops so that the shop will look   better. Walls of farm houses, shops and schools are ideal places for painting and the company need not have to pay any rent for the same. The walls have to be painted at least one or two feet from ground level. It is better to take permission of the owner. Very often the owner  takes responsibility for taking care of the wall painting. Painting to be avoided during election time and rainy season. The matter should be in the form of pictures, slogans for  catching the attention of people. Companies marketing TV, fans, branded coffee/tea, toothpaste, pesticides, fertilizers etc. use wall painting as promotion medium in rural areas.



Tree boards:

These are painted boards of about two square feet in dimension having the picture or name or  slogan of the product painted on it. The cost of such a painted board is about Rs.80. These boards are fixed to the trees on both sides of the village road at a height of about 10 feet from ground level. These boards attract the attention of slow moving vehicles like cycles, bullock carts and

tractors and people walking on the road. Considering the poor condition of roads, even the buses move at slow speed through village road. Fertilizer and pesticide companies in rural areas extensively use tree boards. These are low priced promotion items and can be used by consumer  goods companies too.



Informal/Rural specific media

These media with effective reach and personalized communication will help in realizing the  promotional objectives. Companies to suit the specific requirements of rural communication are using a variety of such media effectively and some of the more important media and methods are given below.



Farm-to-Farm/House-to-House visit:

Rural people prefer face-to-face communication and farm visits facilitate two-way communication. The advantage is that the sales person can understand the needs and wants of  the rural customer by directly discussing with him and answer his queries on products and services. Potential customers in the village are identified and the company’s/distributor’s representative makes farm-to-farm visits and highlight the benefits of the products. The  person carries with him literature in local language and also samples of products. The person does not sell the product but only promotes the use of the product. Very often the local dealer  also joins the representative in making farm-to-farm visits. The dealer clarifies the terms and conditions of sale and also makes independent follow up visits for securing orders. Example: This approach has been found to be very effective for agricultural machinery, animal health  products and agricultural inputs. Many LIC agents and companies dealing with high value consumer durables have tried this method with success in rich rural areas.



Group meeting:

Group meetings of rural customers as well as prospects are an important part of interpersonal media. The company is able to pass on the message regarding benefits of the products to a large number of customers through such meetings. Group meeting of key customers are conducted by  banks, agricultural inputs and machinery companies in rural areas. The bankers visit an identified village, get the village people in a common place and explain the various schemes to the villagers. Such meetings could be organized in prosperous villages for promoting consumer  durables and two wheelers also. Example: MRF Tyres conduct tractor owners meet in villages to discuss repairs and maintenance of tractors.



Opinion leaders:

Villagers place more emphasis on the experience of others who have used a  product/brand to make purchase decision. Opinion leader is a person who is considered to be knowledgeable and is consulted by others and his advice is normally followed. Such opinion leaders could be big landlords, bank official, panchayath-president, teachers, extension workers etc. Examples: a) Mahindra Tractors use bankers as opinion leaders for their product. b) Asian Paints promoted its Utsav brand of paint by painting the village Sarpanch’s house a few months  prior to the launch if the branch to demonstrate that the paint does not peel off.



The Melas:

Melas are of different types i.e. commodity fairs, cattle fairs and religious fairs and may be held only for a day or may extend over a week. Many companies have come out with creative ideas for participating in such melas. Examples: a) Britannia promotes Tiger Brand Biscuits through melas. b) The mahakumbh at Allahabad is the biggest mela in India. HLL has put up 14 stalls in the mela grounds for promoting Lifebuoy. Handcarts have been deployed for increasing access.



The Haats:

Traditionally on certain days of week, both the sellers and buyers meet in the village to buy and sell goods and services. These are the haats that are being held regularly in all rural areas. The sellers arrive in the morning in the haat and remain till late in the evening. Next day they move to another haat. The reason being that in villages the wages are paid on weekly basis and haat is conducted on the day when the villages get their wages. For the marketer, the haat can be an ideal platform for advertising and selling of goods. By participating in haats and melas, the company can not only promote and sell the products but also understand the shared values,  beliefs and perceptions of rural customers that influence his buying behaviour.



Folk dances:

These are well-appreciated form of entertainment available to the village people. The folk  dance “Kuravan Kurathi” is popular in Tamil Nadu. The troupe consists of dancers, drummers and musicians and they move in a well-decorated van from one village to another  village singing and dancing. In a day the troupe covers about 8-10 villages. As soon as the van reaches a village, film songs are played to attract the attention of the villages. This is followed by folk dances. Mike announcement is made about the company’s products and leaflets are distributed. After the dance programme, queries, if any, about the products are answered by the sales person. Folk dance programme costs about Rs.5000 per day and therefore these programmes are conducted during the peak season in selected villages.

Examples: Fertilizer and pesticide companies organize folk dance programmes during peak  season in selected markets. Thumps Up has sponsored Lavnis, the folk dance programme of  Maharashtra and over 30 programmes have been arranged in selected rural markets.



Audio Visual Publicity Vans (AVP Vans):

AV unit is one of the effective tools for rural communication. The van is a mobile promotion station having facilities for screening films slides and mike publicity. The sales person makes a  brief talk about situation in the village, the products and the benefits. The ad film is screened along with some popular film shots and this continues for about 30 minutes. At the end of the film show, he distributes handbills and answers queries of the customers. The whole operation takes about 1-2 hours depending upon the products under promotion, number of participants in the meeting and time taken for question and answers. The vans move to the next village for the second show. The cost of running a fully equipped AVP unit is about Rs.4000 per day and AVP van operation has to be considered as an investment for business development in rural areas. Example: Companies such as HLL, Colgate, and Phillips have made effective use of AVP vans for popularizing their products in rural areas.



Product display contests:

Package is an integral part of the product. Its main purpose is to protect the product during transit, to preserve the quality and to avoid any loss in quality and quantity. The main purpose of  this contest is to remind the customer to buy the product as soon as he enters the shop. Another  objective is to influence the dealer to stock the product and support the company in increasing the sales. The display contest has to be announced well in advance and promotional materials to   be distributed to all the selected dealers in a geographical area. Prizes for best displays are announced to motivate the dealers; the contest lasts for about a month. A well-planned product display contest not only increases the involvement of dealers in the company’s products but also increases the sales during the contest period. This is used for promoting consumer goods such as shampoos, soaps and toothpaste.



Field demonstration:

This is based on the extension principle “seeing is believing” and is one of the most effective methods to show the superiority of the company’s products to the customers. A progressive farmer who is an opinion leader is selected and the demonstration is conducted in his field in the  presence of a group of farmers in the village. The farmers observe the results in the field and the local dealer calls on them in their farms and persuades them to buy the particular brand of   pesticide or fertilizer. Examples: a) Spraying a particular brand of an insecticide against insect  pests and showing the farmer how effectively the insects are controlled. b) Demonstrating the use of tractor/implements for different agricultural operations. c) Hawkins pressure cooker has demonstration representatives who carry out demos in rural households. The representative receives 1% commission for every customer who approaches the dealer via demonstrations. e) Similarly effectiveness of detergents, pressure cookers, vaccum cleaners and mosquito coils could be promoted by demonstrations in selected markets.



Field days:

These are extension of field demonstrations. One of the main objectives of following modern agricultural practices is to increase the yield. The company organizes demonstrations in a piece of land belonging to progressive farmers. All the fertilizers, pesticides, nutrients etc. are applied after making field observations. Just before harvest, all the important farmers are invited to see demonstration plot and see for themselves how the yields are better in the plot compared to other  fields. Field demonstrations/field days consume lot of time and efforts and therefore have to be  planned well.



Information centers:

They provide latest information on cultivation of crops, fertilizer application, weed, management and control of pests and diseases. Experienced agricultural graduates who make frequent visits to the field and advice farmers on modern agricultural practices manage the centers. They also provide information on farm implements, seeds, fertilizers, pesticides, diesel engines, sprayers and tractors etc. Many consumer goods companies have opened show rooms in prosperous rural areas. Example: Hero Honda has opened extension counters with show room facilities in major  rural markets.



Life-style marketing:

Each rural market segment has certain special features i.e. they share common life-style traits. They include village sports, religious events, prominent personalities and role models. Examples: Textile mills maintaining community gardens, Mineral water companies supplying clean drinking water during summer festivals in villages and Consumer goods companies sponsoring Kabaddi.

Choosing media vehicles

The choice of different media vehicles for any market is based on an analysis of the standard features like: reach, frequency, cost & availability. Depending on the factor of reach & frequency, the different media can be classified into the following categories. This categorization can help the marketer to make a decision about which type of media would be more suitable to the product & the organization. (a) High reach High frequency •

Jeep based advertising

•

Wall painting

•

Bus stand & bus panels

•

Haats

•

Hoardings

•

Postal branding

(b) Low reach High frequency •

Co-operative notice board

•

Shop front painting

•

Tin plating – house

•

Dealer boards

•

Village boards

•

Well tiles

•

Calendars/labels

(c) High reach Low frequency •

Van based advertising

•

Melas

•

Direct to home

•

Folklore group

•

Exhibitions/created events

(d) Low reach Low frequency •

Tin painting – tree/shops

•

Leaflets

•

Posters & banners

•

Streamers

•

Danglers

COMMUNICATING TO RURAL CONSUMER IS ONE OF THE BIGGEST CHALLEGES FOR ANY MARKETER  REASONS : 1. consumers spread over the entire country. further compounded by the fact that most of the consumers are not tuned to the mass media. 2. heterogeneity of the market. variations occur by geography , demography , language , culture level of involvement .

to grapple with this problem the marketer has to, 1) Identify geographical locations with a high concen tration of rural consumer.

Example : in up 27% of the villages account for 71% of the population. 2) Locate potential consumers with high propensity to spend

Example : villages of western Maharashtra are more prosperous than those who reside in vidharba western up more prosperous than eastern up. 3) Localize decisions on media & message using region specific budget.

Example : advertize should be molded to suit regional requirements. promotion budgets to be distributed among regional offices on the basis of past & expected sales .this amount will be then  be utilized in conformity with local market conditions to create maximum synergy with sale & distribution spread. haats & melas present this opportunity. Information seeking & processing behaviour of the rural consumer influence media & message many a times the rural consumer may not recieve the intended message for any of the following reasons. 1. consumer may not notice the stimuli provided in the advertisement 2. message is wrongly interpreted . 3. consumer retains only part of the message. Comprehension of message a critical problem in Indian rural markets. ex : following study was carried out on comprehension of communication near Udaipur. media used : posters / leaflets / film / radio programs. message related to 1) issues on rat control 2)spraying of urea solution on wheat crop & 3)poultry farming. respondents : 80 farmers observation : message is either not recd or distorted.

drawing of the cynide pump was taken to be a bicycle pump. rat was not understood to be dead a beautifully made film about a fertilizer spray was wrongly understood as a process for pest control before we go to the communication strategies we need to know the rural consumer   phyche. 1)for any consumer the buying process includes a shift from a)state of awareness  b)knowledge c)conviction , which results in purchase. ex : case study on fertilizers efforts were to create awareness of the product generate interest followed by imparting knowledge . agricultural officers educated farmers about fertilizers and explained the benefits. conviction was related by demonstrating the use of fertilizers in selected plots . 2)involvement level : very high in case of consumer durables like refrigerator / tvs. he seeks more info about the product to reduce the risk of purchase. willing to spend time & effort in making purchase decision. low involvement in case of consumer non durables like salt ex: in rural market sewing machine is a high involvement purchase. usha intl started tailoring schools to educate & promote its sewing machines. on the other hand nirma promoted its detergents thru television. communication strategies :

1)launch of a new non durable product :

consumer not aware of the product & its usage. marketer has to create awareness of the product & induce its trial. sampling & demonstrations are the methods to educate a customer. ex : shampoo was promoted by demonstrating the application of shampoo.  people queued up to have their hair shampooed. it was helpful to instruct the rural consumer in the use and benefits of shampoo encourageing them to maintain clean & healthy hair. in certain cases it converted the consumer from using bath soaps and other traditional methods. case study : recollect the case study on the laucnch of cigarettes by imperial tobacco . 2)launch of a non durable brand consumers are aware of the product.loyalty to existing brand among rural consumers is generally very high. harp on the usp of the product.create awareness of the product and induce trial . get the retailers to push your product by offering attractive margins & incentives.

case study : nirma vs wheel of hll.. market : around jamshedpur. nirma was an early entrant. it entered the rural market without any strong distn network. what did the trick was the catchy advertisement . it created a demand pull in the market. wheel was a late entrant. strategy was easy on hands. (usp). very soon it created a dent in the market share of nirma thru better availability (distn network was in place)and creating a  perception about quality. 3)communication for an existing non durable brand. major focus is on reminder advertising , servicing the rural retailer & sales promotion. ex : colgate palmolive uses supply vans to service the retailer and uses van for promotion. it offers free sample & screens video films on oral hygiene during the visits. 4)communication for launch of a new durable

consumer becomes aware during the launch of the durable. interest is further generated when he hears neighbours & friends discuss the new product. on his own tries to learn more abt the product and on the advice of others decides on the  purchase. decision to purchase the product ,model,type is made by the consumer after deliberating with the retailer & other users. demonstrations & identifying opinion leaders for focussed communication are critical in such situations. ex : arvind mills promoted ruf & tuf jeans to rural markets. promotion efforts included teahing tailors in village sto stitch jeans.tailors r opinion leaders for clothing .became vo taries for jeans and for ruf & tuf brands. usha intl ran sewing schools in villages to offer short term cou rses for women. creates excitement around the product and demonstarates utility.educates consumer on its use and builds confidence with potential buyers. 5)launch of a durable brand marketer has 2 invest time & effort to break into such markets.  product needs to have demonstratable advantage over other competitive products. ex : m&m 25 hp tractors. creates brand acceptance thru awareness,interest,knowledge &  persuasion. *** recollect the case study . blue revolution 6)communication for existing durable brand  performance of the existing brand is very impt 4 consumer who is using the product & keen to replace it. loyalty is high if the consumer is satisfied with the existing brand. very impt 4 marketer to maintain image by offering timely service & thereby ensuring customer  satisfaction. harp on advantage of the brand over the competitors. necessary 4 consumers 2 percieve that their c hoice of brand is correct.

ex: eicher : highlights fuel efficiency . supplemented with the emotional route to appeal rural consumer. oranises tug of war contests between its own tractors & those of its rival cos at the pushkar mela in rajasthan. as audience cheers , eicher wins the contest.

message effectiveness :message decision has to take into account the following factors 1)language , culture, religion, festivals & local sentiments of the rural area dabur : ramcharitra manas , hanuman chalisa , calenders with religious themes . rural specific messages : ngos recount stories of advts that confuse & scandalise viewers . halo shampoo : ad features models with beautiful , bouncy hair . women folk in rural udaipur took offence to the ad as it is considered indecent for women to let down their hair in public. strepsils ad says bahut mazaa aaya . in their dialect the word mazaa has a strong sexual connotation and they could not understand how anyone could get corporeal pleasure from a cough lozenge . 2)simple & comprehensible presentation :case study : market survey on pesticides all the material released by pesticide companies identify the pests by their english & academic nomenclature. generic names r used 4 pesticides which r again in english which r very difficult to pronounce . ex : monocrotophos  brand name nuvacron

formulation strength , dosage , product form , varying %ges of technical material content compounds the situation further. entire exercise complicated .mktg people were are still not able to communicate effectively with the farmer . results in improper selection of pesticides , recommended dosages are not being used .farmer   blames the fertilizer manuf. for the ineffective treatment. introduced simple symbols : star / crescent. 4)language , signs, symbols and pictorial presentations : design of the product, packaging , size shape & color helps create a strong image of the brand in the mind of the customer. savvy marketer uses signs and symbols the villager can identify with to successfully market his  product. 5)utilitarian message :rural.consumer prefer utilitarian messages that link benefit to product attribute over value expressive advts. case study : 1st advt shown was of a detergent soap bar which promised xtra whiteness thru extra foam. 2nd advt showed a mother & child in dazzaling white clothes askng the viewer whether he /she used the detergent bar like they did. 63% of the respondents preferred the brand which promised xtra whiteness thru xtra foam . sometimes multiple claims in an advt appear to create favourable attitudes , though viewers do not necessarily comprehend all claims. study:mosquito repellent coils with the single claim of ‘delivering good night’s sleep ‘ and another ad with multiple claims like it drives away flies ,mosquitoes and spread pleasant perfume. noticed that 40% of the respondents recalled claims made in multiple claims advt , 90% preferred  brand which supports multiple claims. 6)narrative mssge :-

use of stories for promotion of products is common approach castrol has a 20 min movie with the brand name of lubricants portrayed as characters in the movie.

7)source of message : likeable source : testimonial advt using film & sports stars hve been quite successful . ex : lux ex : rajdoot motor cycle sales dipped from 85000 bikes to 76000 in 1987.percieved to be a rugged bike , easily manoevrable on rural tracks and hvng abilty to carry heavy loads. used dharmendra who represented son of the soil image.advt resulted in sale scrossing 1 lac  pieces in 1990. trustworthy source : ru markts depend on word of mouth commn.most important interpersonal source was the person who possessed the product. expert source :credibility of the source more impt than the attractiveness of a source. study :60 respondents from 3 villages exposed to 2 advts for motorcycles. one recommende by kapil dev and the other by an engineer. 67% of the respondents preferred a brand endorsed by the engineer. 8)context associations : associations create interests. a)products to be of interest to consumers

recall of advts on products of relevance to the rural audience was higher when compared with the recall for the same products by urban consumers fertilizer and pesticide advts had far higher recall in rural areas.

 b)relevant environment advts with urban settings or those that are far removed from their daily life do not find favour  with ru cons as they are unable to relate to such presentation. *** recollect the example cited on the 2 bicycle ad . reach of the media in rural markets influence of audience profile and behaviour on the effectiveness of media non conventional media and their impact in rural markets. media reach. compared to urban areas the reach of terrestrial television & satellite television is less in rural areas. advantages of advt’ng in tv : lowest cost per thousand and is therefore attractive to fmcg. disadvt : absence of focus on consumer segments . non seperation of urban & rural audiences.

radio has urban & rural audience vividh bharathi & news popular with rural audience.  press has ltd reach in rural areas barring kerala which has a reach of 65%. use of outdoor media is very relevant in rural areas . options available include wall paintings ,  posters , hoardings , use of space in hand pumps.

no benchmark for pricing and quality usually suffers in bargain for rates. factors that influence media effectiveness :1)audience profile : upmarket rural audience exposed to mass media . youngsters r the majority viewers of television.

2)media preferences : rural.cons in high income category are more receptive to mass media. traditional media are more effective with av ru audience which is less cosmopolitan and have a lower income. 3)channels & programmes viewed :rural viewer does not switch channels.brand loyalty to a programme is fairly high.this is influenced by the prescence of large no of b/w tvs and low priced tv sets that hve ltd channels. dd1 is the channel with maxn viewership.(rangoli , hindi films ) it has been observed that a large no of rural audience do not fully comprehend the main theme. a fairly large no of them feel advertisements not related to their world and do not view them favourably. a study on audience response to commercials was conducted in purulia , erode and kheda. findings. < 35 yrs watch more television. 70-80% are males 30-40% illiterate majority were farmers or land labourers. more than 60% watch national programs in south and north chitrahaar & films are very popular. in south news programs are very popular.

60% understand the stimuli provided / main theme. 20% remember only the visuals and do not comprehend meaning 12% understood words .  programs in english understood by minority. 26% do not like advt slots between programs.the visuals show a different world and they are not able to identify with them. whereas 70% like advts slots between programs. in purulia 15% felt the attire depicted vulgar. erode 10% felt so. with respect to toiletry items proximity to urban areas inluenced purchases. 4)audience behaviour :a)tv viewing behaviour :tv in ru mkt means doordarshan. rural routine is not dominated by clock.  prime time tv program – 20-30 mn before switch on the tv. 10 min b4 prime time there is a switch over to national network. advt rates are relatively low and can bring the same amt of mileage as prime time advtsg does.  b)radio listening:vividh bharathi, farm news , samachar and film music very popular. sponsor has to exercise care in the media and its usage as otherwise the message is unlikely to be hear among target audience . tractor jinle at 11.00 pm hardly has any rural audience and is of little advantage to the advertiser. c)access to news papers.:feeder markets or small towns or in shops or roadside hotels.  people sometimes buy from one of these place and take them home where others read .

newspapers also read at common gatherings. audience response to media :a)recall by media  b)influence on attitude more than tv exposure , proximity to urban areas was instrumental in changing rural habits. in many cases the retailers were major influencing factors in o urchase of soaps. kavi sammelans and puppet shows hold sway over rural audience. traditional media like dramas meet all intellectual ,emotional & aesthetic needs of the villagers. non conventional media wall paintings direct mail  banners placed on elephants parading thru main bazaars.  puppetry audio visual vans demonstration and sampling at haats and fairs. contests to promote products. non conventional ideas impt from the following communication objetives. 1)reach 2)ability to generate interest 3)create product or brand knowledge . 4)educate and persuade 1. media for effective reach : ex :wall paintings – low cost option – create only visual impact as

literacy is low.ex-nirma. mailing campaign –useful with opinion leaders , influencing agencies and agents of  change. copy should be brief but well illustrated. 2. media that generates interest in the audience.  puppets / drama / animals. medium of message should help in attracting attention. message on animals : camel race in pushkar rajasthan. each camel displays different colors. some have the blue of rin , green of wheel,white of h.b a strong vet medicine from indian herbs. message on objects : hll used to station a giant lifebouy boat at alwaye during the onam festival’s  boat race in kerala colgate pal used to splash its names on kites during kite festival in gujarat. spic would sponsor bull fights in tamilnadu. 3)media that creates product or brand knowledge : processions and tableaus , contests, audio visual vans , pop channels. hll dressess up the propagandist as ‘superman’ to demonstrate the super washing power of rin.  philips organises shouting matches . the person who can shout philips name the loudest wins.the contest makes a clear asociation between the company’s audio equip & loudness. 4)educating and persuading a ruralconsumer. demonstration ,sampling, interactive comm at points of contacts. demonstation and sampling to build brand preference : asian paints - pola fair maharahtra. apply sampling strategy. did not hand out trial tins of paint to consumers. zeroed in on the bullock cart race. owners paint the horns with bright colours of asian paints. handed only 100-200gms samples as opposed to 1kg tin with the mascot conspicuously printed on the packing.

interactive media. :  points of contact with rural audience – fairs, haats, mandis , folk performances, special events in  banks , p.o , schools . contests involving consumers can b interactive and help create awareness, knowledge and trial. ex: building tower stacks with cigarette packets or locating buried treasure. entry ticket is a pack  of cigarette , so the game provides a good method for inducing trial. stalls at local fairs can also be interactive. brooke bond adopts tea stalls that tempt villages to sample its products by offering free cups of tea. geoffery manners participates in village melas , where its salesmen who r dressed in white aprons resembling doctors extol the virtues of anacin. emerging non conventional media. van is festooned with banner or painted in gay colours. audio visual van – colgate.