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Consumer Durable Companies inRural India

Presented By:- Rakesh Kumar

Deepak

Nidhi Pati

Neeraj kr singh

Amit kumar singh

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Why go Rural?

Proliferation of brands in urban High saturation levels in urban

Greater awareness of brands in rural

Ever-growing aspirations in rural No effects of slow down on rural markets !

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The largest market in the world

with 700 million Rural Folks With growing purchasing power

and increasing aspiration levels

RURAL INDIA -

THE OPPORTUNITY

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RURAL INDIA -THECHALLENGE

Most of Rural India remains a mystery

13 major languages & over 1300 dialects

Diversity in Traditions & Cultures

Lack of Distribution Channels

Poor reach ofMass Media

Poor understanding of Rural Customers

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RURAL INDIA -THE MYTHS

The Rural Market is a homogenous mass.

Individuals decide about purchases. Urban communication style is equally suitable for rural.

Reaching 6.5 lakh villages is a distribution nightmare.

Market research methodology is universal for urban and

rural. TV has wide reach.

Disposable income in rural is low.

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RURAL INDIA -THE SOLUTION

Need for an organization that can help corporates in Understanding rural realities and perceptions

Untangling rural beliefs and value systems

Communicating in an environment of low literacy

Looking beyond conventional media

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THE RURAL NETWORK

The first ever alliance of Indias leading rural marketing

organisations to offer corporates

Customised research programme leading on to astrategy.

Complete strategy presentation including creatives.

Implementation of the strategy across the country.

Evaluation of Rural Marketing Efforts.

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Size of the market ,Largely Untapped,

Too crowded Urban Market,

Income from other than agriculture,

HLL 50%

Colgate 50%

LG 50%

Asian Paints 60%

Dabur 40%

Videocon 40%

Cadburys 25%

Hero Honda 40%

Reasons for Going Rural

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FMCG Rs.65000 crore

Agri-inputs Rs.45000 crore

Durables Rs.5000 crore

Automobiles (2 & 4 Wheelers) Rs.8000 crore

Clothes, footwear etc. Rs.35000 crore

Constructi on material Rs.15000 crore

Total Rs.173000 crore

Size of Rural Markets

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Contrary to popular belief people in Rural

India are fiercely brand loyal

Once converted, difficult to dislodge them First mover advantages

Building Brands in Rural India

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Pitfalls ofBuilding a Brand

in Rural India Merely stripping down all the so-called frills from the

product currently being sold in urban

Just extending the brand name to low cost packs, thus

making it cheaper for rural. Merely modifying the packaging marginally. Eg: add the

brand name in Vernacular languages, use cheaper packingmaterial

Adapt the urban advertising by dubbing the film in thelocal language, translate the print material

Offer meaningless sales promotion giveaways eg. Combs,spoons, tumblers, etc. FREE

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RuralRich

AspiringMiddle Class

Bottom of the

Pyramid

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Understanding the Characteristics of the

Rural Masses

Very intelligent and clever cannot be easilyhoodwinked.

Daily activity is routinised

Plenty of time / No Sundays

Very conscious of value for money

Does not like to pay extra for frills he cannot use.

Eg. Colour TV High involvement in any product purchased

Eg. Durables

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Rural Urban Divide in terms of

communication continues to exist

Hence need for different communicationpackages focused on rural audience

Important

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