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Rural Marketing

Notes According to Ashok Rajgopal, partner, media and entertainment practice, Ernst & Young, there
is enormous opportunity in non-metro urban markets; the large consumption base there was
only marginally affected by the recession, and now has enhanced purchasing power.
“Marketers have now realised the potential of focussing on these non-metro urban markets,
which are key drivers for future business growth, with restructuring their budgets and services
for making best use of this new and aggressive opportunity,” he adds.
Marketers are taking cognisance of this new urban consumer and are aggressively targeting the
KUTs and ROUI, which has resulted in a focus shift in media spends from the metros to the non-
metros. This trend, according to the report, is likely to continue with the changing consumption
pattern of consumers, fuelled by greater purchasing power.
For the record, ‘The New Market Shehers: Tapping Potential Beyond the Metros’ is the second
report from E&Y detailing the consumption patterns in small towns and cities for the benefit of
marketers. The earlier report, ‘The Dhoni Effect: Rise of Small Town India’, released in March
2008, provided a comprehensive view on developments and trends in marketing spends across
the Indian market. It looked at how marketing decisions impact media spends, vis-à-vis actual
ground realities, which directly indicate market growth for India.

Notes Consumers in the KUTs show an increasing preference for premium products and
services of established mass brands. For instance, the sale of LCD televisions and wellness
services is on the rise in the KUTs.

16.2 Ideas of Small Town Marketing

When promoting products and services in a community of just a few thousand (or hundred)
people, successful marketing strategies conform to the local resources, culture and population.
Getting out of the office and hitting the streets to talk with local business owners, residents and
public figures is the backbone to small town marketing.

Community Leaders

Make connections with the mayor, bank president and local city council. In small towns these
community leaders can easily persuade residents. If local citizens realize the mayor eats at the
local restaurants, for example, so will they. If the city council members buy their groceries
locally, others in the town will follow suit. Ask people with recognizable faces and names in the
small town to become part of the marketing campaign. Use quotes from community leaders that
reflect happiness with local services in newspaper advertisements and local public access
television advertisements. Include photos of them at the local businesses for extra impact.

Local Benefits

Draw new businesses or people to a small community by enticing them with the local benefits.
When sending out letters, posting advertisements or presenting economic development
initiatives at city council meetings, highlight the small town’s localized and personal educational
system, family friendly community activities, and proximity to major highways or airports.
Discuss the unique cultural heritage of the area and the importance of small town values. Draw
in businesses with special tax break incentives, low rent store fronts on a main street and a
collection of resumes from local potential employees.

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