Page 163 - DMGT509_RURAL MARKETING

Rural Marketing

Notes and non-dentifrice products like ash, charcoal, or salt were the norm for brushing teeth (in fact
in some rural pockets, this tradition still continues). In 2001, Colgate-Palmolive launched
“Operation Jagruti” to educate villagers about oral hygiene and its benefits vis-à-vis traditional
products like “Neem.” Through product trials and free samples, the company was able to generate
awareness in this new market. On a similar note, CK Ranganathan, managing director of Cavin
Kare, notes, “When we entered the rural areas in South India, people used to wash their hair
with soap. When we launched the ‘Chik’ brand of shampoo we educated the people on how to
use it through live ‘touch and feel’ demonstrations and also distributed free sachets at fairs. This
strategy worked wonders in the rural areas of Tamil Nadu and Andhra Pradesh—two important
states in India.”
Colgate and Cavin Kare have shown that communication is key when it comes to building
brands in rural markets. As R. V. Rajan, managing director of the Anugrah Advertising Agency,
adds, “To communicate effectively, it is important to understand the fears, aspirations, and
hopes of the rural consumer.” Not to mention the traditions and stereotypes that have governed
their lives for centuries.

Affordability of the product is also a critical success factor when building brands. A spokesperson
from Tata Group, which retails the Sonata brand of watches to rural India, says, “[rural folks]
think of a purchase in terms of how it serves their needs and how well its suits the family, rather
than the individual.” Products must be affordable and immensely practical. Furthermore, since
the rural consumer often survives on daily wages, he engages in daily purchases. Several
companies like Cavin Kare, Godrej, and Dabur adopted the “single use” sachet strategy, which
has worked in their favor. As Byas Anand, Senior Manager, Corporate Communications, Dabur
India, claims, “We introduced one-rupee sachets (2.5 cents) for Dabur Vatika shampoo which
resulted in doubling of volumes in the rural market.”
Though pricing is important, rural consumers favor quality as well. For rural consumers, a
purchase is a bigger investment than it is for the urban, veteran consumer. Hence, a particular
brand will be rewarded only if it earns the rural consumer’s trust through consistent product
quality. As R.V. Rajan says, “the rural consumer is conscious of value for money, and it might be
difficult to convert him to a new brand. However, once converted he is fiercely loyal to the
brand.” This issue will be a challenging one for corporations when they strategize their brand
entry and decide how to balance pricing with brand quality.
In short, customized and affordable products, effective distribution, and focused marketing
initiatives are essential factors in building credibility for a brand in rural India. Brand awareness
and trust will play a key role in combating the blitz of local copycat brands that are formidable
competition. If marketers tailor make their brand building initiatives according to the dynamics
of the rural market, it may no longer come as a surprise to see the rural Indian consumer sitting
before a Samsung television, enjoying a bag of Frito-Lay potato chips, and drinking a bottle of
Coke.

8.11 Brand Loyalty versus Brand Stickiness

Marketers in the rural scenario often confuse Brand stickiness with Brand loyalty.

Brand loyalty is the consumer’s commitment to repurchase the brand and they often help in a lot
of positive word-of-mouth for the brand.
Brand stickiness on the other hand is the repurchase behavior shown by the customers due to the
absence of viable alternatives or due to the fear of trying a new brand.
This is often the case of a rural consumer who does not easily switch brands due to the fear
associated with it and hence marketers should carefully decode the spurious loyalty from the

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