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FOR PRIVATE CIRCULATION ONLY | VOL-9 | JANUARY - 2015 Cover Story Cover Story A Window into Rural Shopping “I had never read a textbook on marketing, and yet was able to write one” Profile Profile Mr. Pradeep Kashyap CEO & Founder MART Interview Interview Leader Emerging Market - GroupM Dialogue Factory “Social media is a great friend for experiential marketing”, Dalveer Singh RMAI Events RMAI Events FLAME AWARDS RURAL CONCLAVE
Transcript
Page 1: Interview Interview Cover Story Cover Story - · PDF file“Social media is a ... COVER STORY RURAL MARKETING THE JOURNAL JANUARY 2015 3 ... & Company report titled 'The Great Indian

FOR PRIVATE CIRCULATION ONLY | VOL-9 | JANUARY - 2015

Cover Story Cover Story A Window into

Rural Shopping

“I had never read a textbook

on marketing, and yet

was able to write one”

ProfileProfile

Mr. Pradeep KashyapCEO & Founder MART

Interview Interview

Leader Emerging Market - GroupM Dialogue Factory

“Social media is a great friend for

experiential marketing”, Dalveer Singh

RMAI Events RMAI Events

FLAME AWARDSRURAL CONCLAVE

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Contact Address

Rural Marketing Association of India

C/o. Impact Communications

E-362, First Floor Nirman Vihar, Vikas Marg,

New Delhi - 110092

Tel. 011-40619900

Mob - 9910023628 / 9818960558

Learn more about RMAI at www.rmai.in

EDITORIAL COMMITTEE

Sanjay Kaul, Raj Kr Jha

Khurram Askari, R V Rajan

CONSULTANT EDITOR

www.contentiveinc.com

RMAI EXECUTIVE COMMITTEE 2014 - 2016

President

Sanjay Kaul

CEO, Impact Communications

Vice President

Raj Kr Jha

Consultant, Geometry Global

Secretary

George Angelo

Executive Director (Sales), Dabur India Ltd

Treasurer

Dr. AnupKalra

Executive Director, Ayurvet Ltd

Zonal Head (South)

Mr. KhurramAskari

Director, Insight Outreach Pvt Ltd

Zonal Head (West)

Himanshu Shah

Chief Mentor, SOI Live Marketing & Events

Mr. Ranjit Kumar

DDG (Rural Business) India Post, Govt of India.

Mr. Biswabaran Chakrabarty

General Manager, Crompton Greaves Ltd

Mr. Punit Chadha

General Manager (Rural Marketing),

Maruti Suzuki India Ltd

Mr. Puneet Vidyarthi

General Manager and Head (Rural), JCB India Ltd

Mr. Siddhartha Chaturvedi

CEO, Event Crafter

Mr. Nikhil Sharma

Partner, MART.

From the President's Desk

Dear Friends,

We're proud to bring out the second

edition of the e-journal, at the back of an

encouraging response to the first edition.

I hereby extend my heartfelt thank you for

your feedback and appreciation.

The second edition too promises to be a valuable read with a detailed analysis on

the retail sector in rural India; perspectives on the reach and effectiveness of e-

commerce in the hinterlands; initiatives by the Government and corporate towards

rural development; interview with revered rural marketing professionals; effective

rural marketing initiatives implemented by companies; and trends from across the

world.

It gives me great pleasure to announce the sixth edition of the RMAI Flame Awards

2014 for Excellence in Rural Marketing & Communications, to be held on March

20, 2015, at Taj Vivanta, Gurgaon. The surging number of entries received each

year is a testimony to the popularity of the awards. The entry submission date has

been extended to February 20, to accommodate as many entries as possible. To

further strengthen its credibility, we have brought on board Ernst & Young to

validate the judging process.

The next few months will be action-packed for RMAI, as we organise a new edition

of the Rural Conclave and the Corporate Excellence Awards, to be held on May 8-9,

2015. Our goal is to bring together experienced and bright minds from

Government, Corporate, Marketing and Communication and Technology sectors

to foster knowledge, learning and inspiration on a wide range of subjects. India

Post (Ministry of Communications & IT) is supporting RMAI for this initiative.

I urge all of you members to participate in these initiatives and together chart out a

new growth story for rural India. Your involvement and commitment are of

paramount importance in soaring new heights in rural marketing.

I hope you will find this edition of the e-journal insightful. Your valuable feedback

and thoughts on the same will appreciated.

Thank You

Sanjay Kaul

RURAL MARKETINGThe

ISSN 2321-8312 Journal

FOR PRIVATE CIRCULATION ONLY | VOL-9 | JANUARY - 2015

Copyright RMAI.

All rights reserved.

Reproduction in any manner is prohibited.

Published by

Rural Marketing Association of India

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03

07

11

13

15

17

25

21

24

COVER

-OF-

ON

STORY

into Rural Shopping

POINT VIEWWhat is the future

of e-commerce in rural India?

INTERVIEW“Social media is a great friend for experiential

marketing”, Dalveer Singh

GOVERNMENT Unnat Bharat Abhiyan for a Better Rural India

PROFILE

Founder & CEO, MART

EVENTSRural Conclave

RMAI Flame Awards 2015

CSRProject Sampark:

Promoting mobile telephony among women

INTERNATIONALMobile App to Help African Farmers

GroundA look at how advertisers are connecting and engaging

with consumers on the ground in rural markets

Feature -

A Window

SECTOR

Pradeep Kashyap,

RMAI

INNOVATION –

07

11

15

03

2113

25

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COVER STORY

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3

A Window into Rural Shopping

With rising incomes and aspirations, consumers are increasingly seeking convenience and choice. They wish to upgrade and

embrace the modern way of life. A modernised way of shopping is just one of the sought after changes.

Sapna Nair Purohit, New Delhi

More than 95 per cent of the Indian retail sector falls in the

category of 'unorganised sector'. According to a McKinsey

& Company report titled 'The Great Indian Bazaar', the

growth of organised retail is expected to be between 14 and

18 per cent of the total retail market this year. This article

attempts to explore the potential of rural India, as a market

for modern and corporatised retail, and look at the changes

and developments in the hinterland that retailers can

leverage.

The Indian retail sector accounts for 22 per cent of the gross

domestic product (GDP) and contributes to 8 per cent of

the total employment. The country's vast and dynamic

retail landscape presents a big opportunity to foreign

investors. A report published by AT Kearney hails India as

'the third most attractive retail market for global retailers

among the 30 largest emerging markets'.

According to management consulting firm, Technopak, the

Indian retail market is projected to grow at a compound

annual growth rate (CAGR) of 6 per cent to reach $865

billion by 2023. This will be driven by the sustained growth

of India's GDP at 6 per cent in the next decade. This growth

will, in turn, translate into increased demand for retail

Overview

Feature -

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4

products, and hence, growth of merchandise retail, high

disposable income with the end-consumer and rapid

construction of organised retail infrastructure.

Growth is expected to come from clothing, textiles, fashion

accessories, jewellery, watches, footwear, health, beauty

care, pharmaceuticals, consumer durables, home

appliances, mobiles, furnishings, utensils, furniture, food,

grocery, catering, books, music, gifts, entertainment and

other segments in retail.

As per Technopak, the rural retail market was estimated to be

worth $273 billion in 2014.

Owing to rapid urbanisation, it is expected that an increasing

share of incremental merchandise retail will come from

urban and semi-urban centres. Demand is also expected to

come from the emerging towns and clusters, where the

primary source of livelihood has moved from agriculture to

other professions.

Nearly, $21 billion (56 per cent of total corporatized retail)

comes from the top 24 cities that contribute to 30 per cent of

the total retail basket. This is due to low penetration of

corporatized food and grocery retail, poor infrastructure,

inefficient supply chain and concentrated customer segment

in the overall landscape.

It is believed that, in the future, growth will be driven by the

penetration of corporatized retail beyond these urban

centres.

Technopak's study reveals that even though rural India offers

myriad opportunities for retailers, it is not likely to become

an extension of urban India in the next decade. This is

because, there exist key differences in the types of demand

coming from these two pockets, even though the rural areas

manage to mirror the consumption of the urban in the

various retail categories.

Rural Indian consumers do not seek low-priced products.

Instead, they prefer products that are functionally at par,

while justifying their affordability. Rural income generation

The Rural Story

being largely dependent on agriculture, is seasonal, and so is

the consumption. This is unlike urban India, which follows a

regular, monthly income-expenditure cycle.

The erratic nature of the rural income-expenditure cycle

makes credit more significant. Therefore, the availability— of

credit and welfare support from the government, in particular

cash reimbursement of subsidies—impacts rural spending

and consumption patterns to a great extent. It is vital for

brands and retailers to have a deeper understanding of rural

markets and pin their fortunes on the penetration of these.

However, this is easier said than done. Damodar Mall, Chief

Executive Officer, Value Retail, at Reliance Retail, says, “Even

in the metro cities, corporate or modern retail comprises only

25 per cent of the total retail. A lot of work needs to be done

there. That is why, people are not going bullish yet. The

market is too complex right now and they'd rather focus on the

more feasible markets where work is still to be done.”

India's diversity poses the biggest challenge for retailers. The

food and grocery category has been a tough nut for companies

to crack. The corporatised retail share of food and grocery

grew from a mere 1 per cent to 3 per cent, whereas apparel

grew from 14 per cent to 19 per cent, reveals Technopak. It has

been observed that non-food categories have been more

receptive towards corporatised retail and are poised to grow

with improved distribution processes. They are also set to

reach beyond the major urban centres and develop alternate

retail.

Food and grocery has been unable to migrate to the

corporatised retail platform preventing it from growing to its

potential. Preferences, especially in food, are extremely

localised. Capturing the various demand catchments and

catering to specific taste nuances is a Herculean task. This,

and the fact that the supply chain does not follow a linear

pattern from urban to rural, has resulted in a fairly low

penetration of modern retail in rural India.

Technopak's research states that this scenario is not going to

change much in the near future, as policy uncertainties and

The Challenges

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lack of structural reforms across the value chain will continue

to act as deterrents.

Furthermore, high fragmentation, low density of population

at the consumption centres, poor transportation

infrastructure and complex tax regimes make it a complex

market to operate in.

Organised retail also faces competition from the local mom-

and-pop stores that have been around for long and enjoy

familiarity and trust among rural consumers. This makes it

imperative for new retailers to invest in effective and

engaging marketing campaigns, to create awareness and

induce trials.

Mall points out that a lot of (food) production happens

around the urban areas, making it easier to distribute. “They

also prefer aggregation of demand. While the demand does

exist, its density is not high in rural areas, unlike in the

urban,” he says.

So, even though the demand for retail products in rural areas

continues to outpace that of the urban areas, the dominant

form of retailing in the former continues to be unorganised or

informal. This comprises the traditional kirana stores for

both grocery and non-grocery items, primarily due to their

ease of access, affordability, credit options and convenience.

Corporates have forayed into the rural retail market in the

form of specific rural outlets selling food and grocery

products. However, most of them have either exited the

market or have changed their business models to sell non-

retail items.

DCM Shriram Consolidated Limited's (DSCL) Hariyali

Bazaar retail stores, launched in 2002, in the rural areas, shut

shop in 2012. Instead, it has now opted to sell fuel products.

Triveni Engineering too exited the rural retail business in

2010. It operated 42 Khushali Bazaar outlets in Uttar Pradesh

and Uttarakhand.

On the other hand, chains such as Choupal Saagar and

Aadhar continue to run in the hinterland. Aadhar is a joint

venture between the Future Group and Godrej Agrovet,

Been There Done That

focussing on retail distribution of consumer products for

personal and household use, in rural and semi-urban India.

Positioned as a rural supermarket, it currently has 40 stores

spread over 100,000 sq. ft., across Gujarat and Punjab.

Initially, when Godrej Agrovet launched the chain, the stores

were owned and operated by the company. After Future

Group bought a majority stake in the venture in 2008, it

closed some company-owned outlets and expanded through

franchisees. In early 2012, it entered the cash-and-carry

business to sell to wholesalers and Aadhar outlets.

ITC first developed linkages through its eChoupal initiative to

buy agricultural products from farmers and improve

productivity, helping raise their incomes. It then launched

Choupal Saagar stores to sell a variety of products and

services including farm inputs, consumer goods and

durables, apparel and fuel.

Recently, the Future Group's food and FMCG arm — Future

Consumer Enterprise Limited (FCEL)— has acquired

Nilgiris, the chain of convenience stores run by the Nilgiri

Dairy Farm Pvt Ltd. The chain has 1,405 outlets spread across

Kerala, Karnataka, Andhra Pradesh and Tamil Nadu. With

this acquisition, FCEL hopes to expand geographically, by

increasing its footprint of convenience stores in South India.

Companies such as Hindustan Unilever Limited (HUL) are

implementing special initiatives, such as Project Shakti,

which is a rural distribution initiative in villages. The project

benefits HUL by enhancing its direct rural reach and at the

same time creates l ivelihood opportunities for

underprivileged rural women. Having started with 17 women

in one state, it has a network of 65000 Shakti entrepreneurs

today. Its products are distributed in over 165,000 villages

and reach over four million rural households.

The rural market, despite presenting numerous

impediments in the expansion of retail, also paints an

encouraging picture. Reports state that rural incomes and

consumptions are rising steadily. The average wages, under

the National Rural Employment Guarantee Programme,

Opportunities

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have risen to Rs 128 in 2012–13 from Rs 65 in 2006–07,

average monthly per capita spending in rural areas has

jumped by 36 per cent to Rs 1,430 in 2011–12 from Rs 1,053 in

2009–10.

There has been a gradual shift in the mindset of consumers

too, resulting in an improvement in lifestyle which organised

retail can tap. According to Mall, the new rural woman

consumer prefers to shop for her personal care products from

a modern retail outlet that offers a variety of premium brands

and options, instead of purchasing it from the local

shopkeeper, who is all too familiar with her in-law's

preferences.

“Younger women find it disempowering to deal with the

shopkeeper— buying from a man who is known to the entire

family. As women get more educated and have a point of

view, as incomes increase, and as women's empowerment

gets unlocked by self-service, modern retail will grow,” Mall

says, hopefully. The coming of age of the middle class,

coupled with their growing confidence will be the engine for

the growth of modern retail in rural markets.

The phenomenon of modern retail is already catching on in

rural India as shops are being transformed into self-service or

partial self-service, to attract the discerning new consumers,

especially the women. Being able to hand-pick products of

one's choice and choose from a display is surely a sign of

modernity.

E-tailing E-commerce is being touted as another key trigger for the

expansion of retail in rural India. Leading the non-store retail

segment, the e-tailing market was estimated at $ 1 billion, in

2013, and is projected to grow at a rate of 50 per cent per year,

to reach $ 56 billion by 2023, as per Technopak. This growth

is expected to be driven by mobile transactions, even in rural

India.

Aspirations of consumers in small cities and towns (beyond

the top 15) are increasingly converging with that of their

counterparts in the metros and mini-metros. Exposure and

affordability are driving this parity. However, the limited

penetration of the brick and mortar business network in these

towns has paved the way for an alternate retail channel to

thrive. Nearly half of the current e-tail sale comes from towns

and cities beyond the eight metros. And this is poised to surge.

Recognising this opportunity, online marketplace Snapdeal

has partnered with alternate delivery channel provider FINO

PayTech. Together, they have launched assisted e-commerce

centres in semi-urban, rural and low-income residential areas

across India.

Snapdeal plans to set up e-commerce outlets or kiosks across

70,000 rural areas in 65 cities by the end of 2015. The first set

of assisted e-commerce outlets will come up at Dharavi

(Mumbai), Varanasi, Valsad (Gujarat), and urban villages in

Noida, Gurgaon, Hyderabad and Jaipur. Meanwhile, Flipkart

has joined hands with the Government of India to train people

from semi-urban and rural areas and employ them at the

company or its business partners.

All in all, if companies can find a way to tide over the

infrastructural and logistical challenges that this complex

market poses, in tandem with consumers' preferences, retail

is set to flourish in locations yet to be explored.

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The Indian rural market is beckoning to the e-commerce companies to tap its potential

According to the latest research by leading global research and advisory firm, Forrester, the Indian e-commerce market is all set to

show the fasted growth within the Asia-Pacific region at a compound annual growth rate (CAGR) of over 57 per cent between 2012

and 2016. It is believed that the number of online shoppers has been on the rise, and is expected to grow to 40 million in the next

two years, from the current 25 million.

E-commerce players are well aware that this growth will be fuelled by the non-metros, especially small towns. They are striving to

make in-roads into the rural markets, even as mainstream commerce struggles. Two top e-commerce companies talk about the

peculiarities of the rural markets, their strategies and factors that will accelerate growth.

What is the future

of e-commerce in rural India?

Shivani Dhanda,

Head – Marketing, eBay India

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ChallengesA major challenge faced by the e-commerce industry in India is the lack of a robust

ecosystem, especially in the area of connectivity and product delivery. Owing to the vast

geography of rural India, it is sometimes challenging to reach remote corners.

However, most courier companies have invested in technology and processes to

overcome this challenge. At eBay India, we launched the PowerShip initiative wherein

we have tied up with leading courier companies to significantly increase the efficiency of

managing multiple item shipments for eBay merchants and delivery of items to buyers.

PowerShip sellers can avail special courier rates and ship to over 1200 cities and towns in

India.

As the e-commerce ecosystem matures in India, many such innovations will boost online

shopping in rural markets.

Tapping the ruralThe tier II and III cities as well as the rural areas are going to be the next big thing for e-

commerce. They have shown extreme potential recently and are growing at a burgeoning

pace. According to the eBay India Census 2014, an analysis of all online buying and

POINT-OF-VIEW

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selling transactions by Indians on eBay India, over a period of 18 months showed that out of the 4,556 e-commerce hubs in the

country, there are 1,233 rural hubs along with 3,313 Bharat hubs (tier II and III cities). There has been a significant upsurge in the

number of rural hubs as compared to the previous Census.

With the quantum of customers logging on to e-commerce sites, to shop online, increasing at a rapid pace, all players are looking

forward to tapping the rural market and connecting with the emerging online shopper in these areas.

Growth Triggers2015 is going to be the year of customers shopping online from non-metro cities. There has been a significant uptake of products by

customers from rural markets as revealed by the eBay India Census 2014.

The increasing penetration of the Internet into the rural markets coupled with the surge in the number of users accessing the

Internet through mobile phones and devices, is expected to expand the reach of e-commerce across the challenging geographies of

the country.

According to the eBay India Census 2014, Guntur (Andhra Pradesh), Tada (Andhra Pradesh), Karthikappally (Kerala), Ghattia

(Madhya Pradesh), Chorayasi (Gujarat), Jalgaon (Maharashtra), Budgam (Jammu & Kashmir), Cachar (Assam), Adur (Kerala)

and Villupuram (Tamil Nadu) are the top ten rural hubs in the country.

Popular Categories According to the Census, the top five products traded in the rural markets are — mobile accessories, tools and hardware, stationery

and office supplies, coins and notes, chocolates, cakes and food items. The top five products exported from the rural markets are

—jewellery, watches, decorative pieces, cell phones and accessories, home and garden products, clothing, shoes and accessories.

We expect these products to be traded extensively, with other products in the lifestyle and electronics category catching up fast.

ChallengesWith its increasing disposable income and exposure to urban trends, thanks to the

media, the rural market is becoming increasingly attractive for various industries,

especially e-commerce. Internet bridges the supply chain gap between brands and the

rural market. However, there continue to be some key challenges, which are largely in

the area of infrastructure. You can say that between the demand and supply sides, there

are more supply-side challenges. Internet penetration is still low compared to the urban

areas, and mobile Internet will play a big role in bridging this gap. Then, there is the

challenge of logistics-related infrastructure and low reach of logistics partners. The only

third-party logistics provider (3PL) with a wide reach is India Post, which is now

investing in e-commerce deliveries, but has a long way to go.

Devesh Rai G,

Founding Member and Corporate Vice President -

Business Development, ShopClues

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Tapping the ruralE-commerce players are well aware of the opportunity that lies in the rural markets. On the one hand, there are strong demand-

side factors, such as high disposable income, willingness to spend, exposure to urban trends, and desire and ambition to own the

best. On the other hand, there is the opportunity arising out of the limited reach of the traditional offline supply chain. Right now,

these factors are playing a big role in the growth in sales from tier II and tier III towns—a major focus and growth driver for

ShopClues in particular. The same will follow in rural areas as well.

Growth Triggers In my opinion, the growth of e-commerce is faster and will continue to be faster than what most of us can fathom. ShopClues

already sees a lot of orders from the hinterland with village post office addresses. So, clearly, e-commerce has already taken off in

the rural areas. It will definitely see a major upward trend in the next two years, following improvements in the Internet and

logistics infrastructure.

Popular CategoriesElectronics and fashion will be major drivers. Within electronics, demand will mainly come from low to mid-range mobiles,

laptops and appliances, which do not have reach in the rural markets. Fashion will remain centred around affordable daily wear,

with low- to mid-range brands taking the lion's share.

Challenges

The retail landscape has changed globally, and is changing in India too. E-commerce has

transformed the way people shop and do business. Simplicity and accessibility have been

the hallmark of the e-commerce industry growth in India, led by companies like

Snapdeal. Internet connectivity, which is low at less than 10 per cent, is a significant

challenge in reaching out to the rural consumers. Low penetration of Internet banking

and credit/ debit cards is also a barrier in the way of online shopping. This is now being

overcome with the 'cash on delivery' option. However, the biggest challenge has been the

lack of trust in online shopping, which is being addressed through active communication

via various mass media channels.

Tapping the ruralSnapdeal.com is betting big on the tier II, tier III and rural markets as rising aspirations

and corresponding increase in digital penetration will lead to growth, driven by these

Sandeep Komaravelly,

Senior VP – Marketing, Snapdeal

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centres. Currently, over 60 per cent of its users are from these markets. To tap the markets beyond the top ten cities and in smaller

cities, towns and rural markets, the logistics and delivery network has been strengthened to reach over 15000 pin codes in the

country. The recent tie-up with India Post will further strengthen the efforts in this direction.

Furthermore, India currently has 40 million mobile Internet users and this is expected to grow exponentially in the near future.

This is why Snapdeal.com has consciously built its presence on mobile platforms and is leading the m-commerce revolution in

India, with over 65 per cent of orders coming from mobile phones. Just a year ago, this figure was a little over 5 per cent. Hybrid e-

commerce models, like assisted e-commerce and easy payment options like 'cash on delivery' also play an important role in

building e-commerce.

Growth TriggersThe penetration of smartphones clubbed with rising aspirations, have enabled the growth of e-commerce in rural areas.

Furthermore, increased assortment of products, easy return policy, free trials and cash on delivery will play a huge role in further

scaling up e-commerce in rural India.

Sellers play a pivotal role in the growth of any market, therefore, a strong seller ecosystem is critical for the development of e-

commerce. Snapdeal currently has close to a 100,000 sellers on its platform, and a large percentage of these sellers come from the

small, remote towns and cities of the country. For the rural sellers, Snapdeal acts as an enabler giving them access to an online

platform that extends their reach nationally, whilst supplying locally. The synthesis of this latent desire of small businesses to

expand nationally has been key to the success of e-commerce and will lead to growth in the rural market.

Popular Categories In the past, people in the rural areas had to go to distant places or nearby cities to purchase luxury and speciality products. With e-

commerce, they are now able to access them from within the comfort of their homes, at par with urban dwellers. The credit goes to

the accessibility offered by e-commerce platforms like Snapdeal. There is a huge demand for footwear, clothing, mobile phones

and electronics in the rural markets, similar to the trend seen in urban markets.

New innovative categories like agri products are also gaining popularity. The recently launched agri store, which is making

available over 300 products, has received a very positive response. Similarly, increased demand for affordable mobile and

computing devices and other categories like medical devices, hardware and fixtures, is anticipated among others that are difficult

to access offline, locally.

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“Social media is a great friend for

experiential marketing” Dalveer Singh

Excerpts

1. When do brands tend to experiment

with 'Experiential Marketing'? Is there a

favourable time?

It all depends on the media mix for the brand or

the category, and where exactly experiential

marketing fits into the marketing and

communications programme.

However, when budgets are more, brand

managers tend to experiment more whereas

during tough times, they prefer to stick to tried

and tested methods. This is because, in case of

mass media, an advertiser can substantiate his

spends in terms of the outcome.

But I think, this is a lazy way of marketing. Smart

marketers would often go the experiential way.

Experiential marketing has always seen a

growing trajectory. At the same time, I also

believe that anything new takes a while to catch

up, though this form of marketing has been

around for a long time now.

2. Which are the sectors best suited for

experiential marketing?

It fits in very well in the fast-moving consumer

goods (FMCG) and automobile sectors but not in

the banking, financial services and insurance

(BFSI) sectors, where there is nothing to

experience.

Whenever a marketer needs to showcase a

product or its features, be it taste, appearance,

feel or touch, you need experiential marketing. It

is not meant for selling concepts. There are some

advantages as well as certain limitations of this

form of advertising, just as in other mediums.

3. How has social media changed the

rules of experiential marketing and

activation?

With over 20 years of experience, the current head of

experiential marketing, APAC, Group M, has been a

seasoned rural marketing practitioner. He talks of

how the rise of the social media has aided experiential

marketing, and how this form of advertising will

continue to grow…

INTERVIEW

Leader Emerging Market - GroupM Dialogue Factory

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I think social media has done a lot of good to experiential

marketing. In fact, it is a friend to this form of advertising.

Till yesterday, we had to use a pamphlet or a poster to

announce a campaign or an activity. Now, this can easily be

done through social media, which can amplify an activity

better and more effectively.

Word of mouth can be used effectively by brands on social

media. Though very few brands have tried it, the ones which

have, managed to achieve great results.

4. Mass media has penetrated deep into rural India.

What does it spell for the activation industry,

especially in the rural markets?

As far as the reach of the mass media is concerned, there are

the media-dark states and media-light states. We say that the

BIMARU (Bihar, Madhya Pradesh, Rajasthan, Uttar

Pradesh) states are media-dark states, so experiential

marketing is needed there.

However, I feel that if I need to sell facewash or conditioner in

a media-light state, such as Tamil Nadu, Andhra Pradesh or

Punjab, I still need to ride on experiential marketing.

Yes, mass media does help create a reach, but does it really

persuade people to try a new category? To buy something

new, you have to again ride on experiential marketing. So, the

theory of these being media-dark markets is an old one.

Experiential marketing helps to enhance experiences and

bring them to life. And it can be applied across categories!

5. Which vehicle do you feel is the cheapest and most

effective to reach out to Rural India? Is experiential

marketing giving way to mass media?

Experiential marketing was never cheap and still is not. You

cannot compare mass media costs to experiential marketing,

because the impact is very different. I cannot say that radio is

the best medium or press is the best medium. There is no one

single medium that one can say is the best to reach out to

rural masses either.

To spread awareness, you will need static media. To explain

things, you will need interactive media. To talk to a large

congregation of people, you will need to use mailer and haats.

So, depending on what your marketing and communication

objective is, you will need a mix as no single media will work.

6. Be it the Lifebuoy Roti Campaign or the Coke Small

World Machine campaign, we have seen some

innovative work in experiential marketing in the last

few years. Has this form of advertising come of age,

to be able to build brands today?

I do not think any single campaign can build a brand.

Lifebuoy was built through the handwash programme, and

the roti campaign during the Kumbh mela was just one of the

components. So, there are many things you do to build a

brand in rural markets.

While mass media does play a role, the haats and mailer are

also equally important.

7. With 20 years in below-the-line marketing, how do

you see your professional life when you look back?

I think I had a great 20 years. The job is excellent, actually. In

my opinion, people who work in the rural and emerging

markets have a great job to do, because they are connected to

the consumers, and are also travelling continuously.

When I took up rural marketing as a career, people

questioned 'what is rural?'

Rural marketing has not only taken me across 40 countries

today, but also to every nook and corner of each one.

Rural marketers understand the pulse of the market because

they are much closer to the consumers; the interaction with

them is on ground and not in air-conditioned offices.

I am very happy that I picked rural which was not very

attractive then, and have contributed to making it attractive.

8. Putting your wide experience to use, how do you

foresee this sector growing?

If you look at the 6.2 billion consumers across the globe, you

will still have half of them in the rural areas till 2030 or 2050.

Those are the next frontiers. There are very few people in the

country who understand rural consumers well. There are not

many who understand the nuances of below-the-line (BTL)

and even fewer who understand experiential marketing. So,

to me, this is the sector, which will keep growing.

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As India progresses, it becomes evident that the pace of modernisation is not the same throughout. While cities and metros are

modernising at an exponential rate, villages tend to progress comparatively slower. Even today, there are villages that do not have

electricity and where people need to do back-breaking labour just to survive. With nearly 70 per cent of India living in rural areas,

and employing nearly 51 per cent of the total workforce, there is an urgent need to modernise this population.

The Government has, over time, introduced innumerable schemes and campaigns to bridge this gap

but the urban–rural divide continues to grow. Currently, a plethora of campaigns are being

run by it to develop the rural areas and bring them up to the level of their urban

counterparts.

On October 31, the Ministry of Human Resource Development (MHRD)

launched the Unnat Bharat Abhiyan (UBA) to look at development from a

perspective of knowledge rather than finance. It has roped in leading

technology institutions like the Indian Institutes of Technology

(IITs) and the National Institutes of Technology (NITs) in this

mission. These institutions will use their intellectual prowess to

design and develop solutions to the problems that rural India

faces, through the use of technology. Unnat Bharat has a two-

fold aim: build the capacity of the institutes of higher

education for research and training relevant to India; and

provide rural India with professional resource support from

these institutes of higher education. While MHRD will be

overseeing UBA, IIT-Delhi has been chosen as the nodal

agency to coordinate with the other IITs and NITs

participating in the campaign.

The Unnat Bharat Abhiyan envisages the IITs and NITs

adopting ten villages within their neighbourhood for

development. Students from these institutes will then visit the

villages to identify the problems that they face. They will then find

financially-viable solutions to these problems. Once a solution has

been identified, the industry will be involved to scale it up. It hopes

to prepare a roadmap for the holistic development of rural India. So

GOVERNMENT SECTORUnnat Bharat Abhiyan for a Better Rural India

In its effort to develop rural India, the Government has launched the Unnat Bharat Abhiyan to use India's

knowledge capital to bring about a social change and encourage rural entrepreneurship. Team Contentive

Inc. looks at what the Unnat Bharat Abhiyan challenge entails

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far, the institutes have identified 132 villages for their work.

While MHRD has formally launched UBA and laid out a

roadmap for the same, the situation on the ground is

different. Professor SK Saha, who oversees the

implementation of UBA at IIT Delhi, explains, 'The concept

is still in its nascent stage. All IIT coordinators of the Unnat

Bharat Abhiyan (UBA) cells are discussing under the

guidance of MHRD.' He points out that the IITs have already

been involved in rural development under rural

development centres or Rural Technology Action Groups

(RuTAG). For example, IIT Delhi has a Centre for Rural

Development and Technology (CRDT) which started in 1978.

Similarly, IIT Bombay has the Centre for Technology

Alternatives for Rural Areas (CTARA) and IIT Kharagpur has

the Rural Development Centre (RDC). These will play a

major role once UBA hits the road. However,currently, the

IITs are developing the roadmap provided by MHRD, which

will later be shared with the NITs and other technical

institutes.

What makes the Unnat Bharat Abhiyan unique is that it uses

India's intellectual rather than monetary wealth to bring

about a societal change. The costs for the campaign are to be

met from the various programmes already under way, with

additional funds being mobilised on a project-to- project

basis. Each technology institute is required to set up an inter-

disciplinary Unnat Bharat Cell, consisting of teachers and

students to undertake the projects. At the same time, the

Unnat Bharat Abhiyan is also an inter-ministry exercise, with

the ministries of Human Resource Development,

Agriculture, Rural Development, Water Resources, Science

and Technology, Renewable Energy, MSME and Textiles (for

artisans), Labour and Employment working in tandem

towards a common goal. Once the institutes conceive a new

project, it will be taken to the appropriate funding agency for

funds. This way, the overall cost of the project can be kept

under control.

According to Professor Saha, the Unnat Bharat Abhiyan

comes with its own challenges for the educational institutes.

He says, the rural community needs to be studied to

understand how technology can be used to uplift it. But for

that, the institutes will have to earn the trust and confidence

of the rural communities. The communities will have to

convinced to use the solutions developed by these

institutions, which can be an uphill task, as the solutions

might not work at the first instance and may need further

tweaking. Finally, he says, even if a technology finds

acceptance with the rural community, finding entrepreneurs

to take it further can prove to be a further challenge. When

asked about rural entrepreneurship, he posed the question

back to RMAI asking how it could help in this mission.

IIT Roorkee, one of the participating IITs, provides a

showcase for the campaign's success so far. It has taken the

charge of five villages in Uttarakhand. It set up the RuTAG for

the same. To achieve rural transformation, IIT Roorkee has

designed a five-point roadmap wherein it identifies the

technology for bringing about rural development, builds up

strategies for capacity building, facilitates rural

entrepreneurs to adopt the technology, conducts research

that impacts the rural society, and brings about a societal

development by polishing local skills through the use of

technology.

IIT Roorkee students studied the Bageshwari Charkha, used

in Uttarakhand for making thread from the locally available

Tibati wool. With the application of simple technology, they

were able to produce a better version of the charkha, that

resulted in increased efficiency and output. Using a

collaborative system, all villagers in the adopted villages were

taught to use the new charkha, thereby making its use

widespread. The students also designed a low-cost solar-

operated pine needle biomass briquetting machine that was

easy to maintain, so that it could be easily deployed by the

villagers. This proved to be beneficial for all, as it was

environment friendly, easy to manufacture, a great

employment opportunity for the people, and also more

convenient to use than the traditional machines.

IIT Roorkee's work in the villages of Uttarakhand has also

been responsible for developing entrepreneurship in the

villages. The water mills developed and deployed by it were

later handed over to entrepreneurs, who in turn, provided

livelihood to the people who were appointed to operate them.

The water mills were also a source of clean energy for the

villages.

Just as other government initiatives, the Unnat Bharat

Abhiyan too is unique as it puts educational institutes at the

forefront, while the Government takes a back seat, only

coming in the picture when the projects needs financing.

Even when a project takes off, the Government choses to hand

over its reins to local entrepreneurs so as to promote local

economy. In this hands-off approach, the onus of building the

rural economy rests largely on the institutes and the villagers

themselves. Once the campaign is rolled out by the IITs, the

rural economy is bound to benefit. Its dependence on urban

markets for goods will diminish, as will the annual migration

of labour from the villages to the cities. It looks all set to be a

game changer.

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“I had never read a textbook on marketing, and yet was able to write one”

Kashyap put away 18 years of experience in the corporate sector, to find his true calling. Here, he talks about his early days, learning the skill of management on the job, his big shift from the corporate world and his tryst with rural India…

Pradeep Kashyap, the founder and CEO of MART, is known as the Father of Rural Marketing in India. A BITS Pilani graduate in Engineering, he had never studied management or marketing. Yet, he advises aspiring managers from some of the most coveted B-schools like IIM-A and professionals from the corporate world.

Kashyap's first job was with Exide, after graduating from BITS Pilani in 1969. The company was then hiring engineers to sell technical products like batteries. He spent six years doing 'technical selling', as a Marketing Executive in Kolkata and Delhi. This stint put him in a dilemma – while he understood the technical side of things, the management part remained an unknown territory.

“I realised that I wasn't industry ready because I didn't have a management qualification. It took a while to get my teeth into management concepts, like financial projections, return on investment and break-even analysis,” recalls Kashyap.

He then moved to MICO Bosch. Back then, Bosch had a monopoly in making fuel injection equipment for trucks and diesel vehicles in India. Here, he was tasked with setting up an office in Delhi to handle the company's northern operations. At a young age of 28, a cautious Kashyap travelled to the different company's offices to learn how to set up a new office. Soon, he had a 100 people reporting to him. As Bosch's regional head, he managed their distribution system.

After seven years, he moved to Denso, in 1984, as head of marketing. The World's largest automotive parts manufacturing company had just set up operations in India and Kashyap was its second employee. He was mandated to set up the marketing division. It was a massive task. “Advertising our products in the open market and dealing with ad agencies were all new to me. Besides, other functions like after-sales services and spare parts division had to be set up too,” he remembers.

Pradeep Kashyap, founder & CEO, MART

PROFILE

315

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One of his biggest contributions was that he negotiated hard with all client companies to pay against a letter of credit and bank guarantee. This ensured that the company received the payment on the day the goods were supplied thus ensuring a healthy cash flow. Despite resistance from big companies like Hindustan Motors, he insisted on implementing the system, which is followed even today.

Around 1987, while he was at Denso, Kashyap started feeling restless. “I was not enjoying what I was doing; work was getting repetitive. I began to wonder what the purpose of life was. I asked myself, 'Do I want to continue like this for the next 30 years?' It is said that when the disciple is ready, the guru appears. And that is what happened with me,” he reminisces. He found his spiritual guru, an Englishman who was an erstwhile aeronautical engineer, who ran an ashram beyond Almora. After discussions with him, Kashyap decided to work towards helping the poor.

He bid adieu to his corporate life in 1987 and started travelling to the villages. A city-bred man, he had never seriously visited a village before. “The poverty really moved me. I felt I had to do something. The only thing I knew or had learnt was marketing. So, I decided that I should be working in the marketing space,” he says about his foray into rural development.

He was appointed as marketing advisor to the Government of India, by the Ministry of Rural Development. He travelled the length and breadth of the country, meeting artisans, embroidery workers and craftsmen. “They were living in very difficult conditions. The problem was that while they produced exquisite products in the villages, the consumers were in the city and they had no clue how to access them,” Kashyap says.

He started a system of marketing by which artisans could showcase their work in the cities, by way of sales exhibitions christened Gram Shree Melas or wealth of villages. The travel and other expenses of the artisans were funded by the Government and they were allowed to keep all the profits they made through sales. He executed 300 exhibitions across 75 cities in India, over 10 years, helping hundreds of thousands of women. He remembers the first exhibition held at Udaipur, which was attended by the then Prime Minister, Rajiv Gandhi, who was impressed and suggested that such exhibitions be held in every state.

In his next assignment, he was tasked with reviving the Khadi Commission, which, despite having 8000 showrooms, was not doing well. From answering queries of people from far-off states on a plethora of products like how to market a special type of chilli, to understanding how a mela is organised, every day, Kashyap says, would be exciting. “It was a very rich learning experience understanding the fabric of this country,” he adds. He was also advisor to the UN and World Bank.

In 1993, he was requested by Ela Bhatt Founder, SEWA to bid for a World Bank- funded women's economic empowerment project. He worked on the proposal, which the bank liked and wanted him to execute for which he was required to set up a team. And that was the genesis of MART.

“I had no grand vision, no plans or inclination to set up an organisation because I had left my corporate career to serve the poor,” he confesses. MART continued to work only on livelihoods and enterprise till 2000.

In 2000, Kashyap was presenting MART's work at a conference in Hyderabad where the President of Birla Cement was present who approached him to do a marketing study. This was the beginning of MART's work with the corporate sector. Its work with Unilever's Project Shakti is the most notable where 46000 women micro-entrepreneurs, from micro-finance groups were appointed as company dealers. This caught the world's attention and went on to become a Harvard a case study. This marked MART's rural marketing work going global.

According to Kashyap, it is only in recent years that companies have started showing interest in rural marketing. “Till 2000, there was not much serious interest in rural marketing from the corporate sector, except for companies like ITC and HUL. The usual response used to be 'where is the market?'; 'people are so poor',” he says.

From the year 2010 onwards, companies started showing serious interest. They wanted to know more about the market and go beyond pilots. “The rural market has arrived. It is now growing faster than the urban market. Also there is much more headroom to grow in rural because the penetration and consumption levels for brands is much lesser than urban. Affordability too has improved,” he observes. He firmly believes that the opportunities, for innovation and path-breaking ideas, are much greater in rural than in the urban sector.

His advice to young rural marketing professionals is to have a lot of passion but more compassion. “One must empathise with the poor. One should have affinity and associations with these people. Corporate marketers tend to look at these markets as business opportunities only. My mantra is 'you need a business mind with a social heart',” he says.

Kashyap says that it is 'common sense' that has helped him achieve the success and stature he has today. “I'm not a management graduate; have never worked for an FMCG company. My idea of marketing was very basic and that was a huge disadvantage. I have learnt everything from common sense considering I had never read a textbook on marketing.” he says.

Having worked for 45 years, Kashyap now wishes to slowdown. His idea of unwinding is watching the snow-capped mountains from the window of his cottage in the hills.

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19

RMAI FLAME AWARDS 2014

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1. What are the key parameters on which you will judge the entries

this year?

Whether the product or service has (a) made a positive difference to the rural

consumers, (b) done things on scale, (c) excelled in execution, (d) brought in

a new insight or a novel idea…

2. How well do you think marketers and agencies have been able

to adapt to the changing rural landscape, over time?

Two things have basically changed in the rural landscape, over time. Firstly,

the aspirations of rural consumers have, by and large, converged with those of

their urban counterparts. And, with improving transportation and telecom

infrastructure, they are better connected to the world than before. Marketers have done well to introduce new categories, improve

features in their offerings to fulfil the consumer aspirations. Marketers have also done well to leverage new technologies and

channels to reach out to the rural consumers.

On the other hand, relatively lower incomes, inadequate availability of electricity, unreliable agricultural extension services, poor

quality of education and healthcare are also harsh realities for a large majority of the rural consumers. Regrettably, one hasn't seen

enough innovation in business models to bring access to these basic services to rural Indians.

3. From your observations, which are the categories that see most innovative rural marketing initiatives and

which don't?

Generally speaking, I see innovation in marketing consumer goods (both fast moving and durables) as well as automobiles. Not as

much in categories like financial services and agricultural inputs.

4. What are your expectations from the entries this year?

As has been the case every year so far, I expect to see more and better entries than last year! An interesting trend last year was the

advent of partnerships, either product + service or product + channel, which helped marketers achieve more from less. In the

previous year, it was technology in focus. I hope to see more consumer-centric innovations this year.

S. Sivakumar,Jury ChairChief Executive ITC Ltd. (ABD)

INTERVIEW

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1. What are the key parameters on which you will judge the entries this

year?

Impact. The entries should have the ability to have influenced consumers to adapt to

a new concept or switch loyalties where an existing product or service exists. Next is

innovation, particularly in context of the challenges of creating or distributing a

product or service in rural India.

2. How well do you think marketers and agencies have been able to adapt to

the changing rural landscape, over time?

Marketers and agencies have adapted well. Going by the entries that we have seen in

recent years, there is evidently a lot of thought and effort going into understand and

then create for the rural market. We have to bear in mind that margins are often low

and returns take time. So it's not a simple bet for companies, large or small. And India is a complex market with sharp differences

between regions and geographies too.

3. From your observations, which are the categories that see most innovative rural marketing initiatives and

which don't ?

Acutally, all categories see innovative entries. It's not fair to compare, let's say, a tractor maker's renewed rural push with a more

customized model versus a telecom company's subscription drive versus a pharmaceutical giant's attempts to disseminate

knowledge on a new veterinary product before seeding the product. Companies and agencies innovate within the briefs they are

working with and the constraints they are fighting against. Obviously the ones that do the best win the awards !

4. What are your expectations from the entries this year?

India's rural landscape is changing dramatically. Telecom penetration and thus habits continue to change. Mass media

consumption is broadening. There are continual shifts in demographics. Did you know that horticulture production at 268.9

million tonne, surpassed foodgrain production, at 257.1 million tonne, in 2012-13, for the first time in India ? This figure may not

mean much to marketers today but reflects changes of a nature we had not anticipated, at least in the agrarian part of rural India.

We would expect campaigns that respond to changes in the landscape, in attitudes and purchasing propensity. Successful,

innovative campaigns by nature will reflect a strong understanding of rural India as we know it, in all its ever-changing vastness.

INTERVIEW

Govindraj EthirajCommittee Chairman,

Founder of Ping Digital Broadcast and

ex-Founder-Editor in Chief of Bloomberg TV India

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As part of its CSR activity, telecom service provider, Uninor, has been promoting the use of mobile telephones among rural

women and also empowering them in the process.

Newspapers routinely carry reports of panchayats prohibiting women from owning mobile phones. Telecom service provider,

Uninor, has taken a stand against this and through its CSR (corporate social responsibility) activity, Project Sampark, it has been

promoting the use of mobile telephones among rural women.

The project was launched in September 2014, with the sole objective of bridging the mobile gender gap in rural India. It was

revealed in a study commissioned by GFK in Aligarh district, in Uttar Pradesh, that while 76 out of 100 males used a mobile phone,

the figure was only 29 for women.

The reason for this was that it was the men who decided

whether or not women should get a mobile phone. Also, mobile

phones were thought to be too complicated for women. To

combat this misconception, Uninor, with a grant from GSMA's

Mobile for Development Foundation via its Connected Women

Programme, launched Project Sampark.

Uninor has committed to a contribution of $113,654 towards

this initiative, while the Mobile for Development Foundation

will be contributing $ 70,000.

The project aims to create awareness regarding mobile phones

as a tool for facilitation of women, and encourage their

ownership by women. The project also aims to enroll 62,000

customers within the first year in its pilot project alone, and

then target 200,000 customers in the second year, of which, 50

percent will be women.

Speaking on the launch of Project Sampark, Morten Karlsen

Sorby, CEO, Uninor, said that mobile technology had the

ability 'to change the way people communicate', and that

'gender disparity is echoed in mobile usage'.

Uninor launched the pilot project for the initiative in 87 villages

of Aligarh district in western Uttar Pradesh. Its uniqueness lies

CSR

21

Project Sampark: Promoting mobile telephony among women

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in the fact that while

promoting the use of

mobile phones, it also

provides employment

o p p o r t u n i t i e s t o

women, who are the

main drivers of the

project. It uses forty

w o m e n a n d f o u r

supervisors including

A n g a n w a d i a n d

A c c r e d i t e d S o c i a l

H e a l t h A c t i v i s t s

(ASHA) to help spread

knowledge about the

benefits of mobile

phones among women.

Also, Project Sampark

attempts to deal with

the barrier against women by working around it rather than demolishing it. It makes men active participants while giving SIM

cards to women. Uninor introduced a unique product that links to the SIM card in a manner that the recharge of either SIM accrues

additional benefits to the other. In addition, a pre-decided number of free minutes is offered between the two cards. The aim is to

offer a bonus to the male member whenever he tops up the SIM used by the woman relative. The Bandhan Pack, as it is called,

provides an incentive to the men on taking a SIM for their wives or sisters, as they get an additional benefit each time the card is

recharged. At just Rs 50, it is affordable too. The Bandhan Pack also allows for future value addition on the SIMs, like mobile health

services on the woman's SIM, to create benefits in addition to connectivity.

To ensure that both SIM cards are used, Uninor also set up a women-only call centre, Dial, in which the women call up the

subscribers and ensure that both mobile connections are used. The women are knowledgeable about Uninor's products, and are

able to assist the callers about the services. The call centres are also used to reach out to the mobile users whenever new schemes

and facilities are offered by Uninor. In this way, Uninor also contributes to improving working opportunities for rural women.

To spread knowledge about the benefits of mobile phones, Uninor conducted nukkad nataks or street plays with the theme 'Mera

Mobile Mera Sathi'. Performed at the local markets, village haats and panchayat meetings, these street plays talked of the benefits

of mobile phones for women. They also talked of how mobile phones can improve a woman's social and economic status as well as

bring in gender equality.

Since the launch of the project, Uninor has sold nearly 7000 Bandhan packs in its pilot scheme. The project also became self-

sufficient within four months of its launch.

Project Sampark showcases how corporates can align their social responsibility with commercial interests. In its attempt to

highlight the importance of mobile phones, Uninor managed to promote its own brand and was able to get customers for its

network. It also paved the way for other networks to make inroads into the rural markets with their own products.

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An innovative soap that promises to be a boon for all those who prefer bathing in rivers and ponds

Villagers in Kerala often face a typical problem. While bathing in the rivers or ponds, they often lose their soap in the water, where it

eventually sinks. CA Vincent of Katoor in the Thrissur district of Kerala decided to solve this problem by manufacturing a soap that floats.

The floating soap was a result of experiments conducted by him in his soap manufacturing unit for about 14 years. The idea was to create a

soap whose density is lighter than that of water, enabling it to float.

Made from Sodium Hydroxide and coconut oil/vegetable oil, the composition of the floating soap is kept the same as regular soaps.

However, the process of making it is modified such that its density is maintained at 0.873 g/cm3. Further, this soap is less acidic than

traditional soaps, helping the skin retain natural oils. In the making of the soap, no animal fat or synthetic chemical is used. The soap also

dries quickly on removing from water as compared to traditional soaps.

23

TREND - INDIAA Soap that Floats

Can you imagine an ad running on the TV without any audio?

Well that will not make any sense and in a similar way any

advertising without the audio is ineffective. If you try to recollect

the famous ads then you will realize that the one thing you

remember about them is their audio or jingles or the slogan. Be it

‘washing powder Nirma, or recently, ‘Har ek friend zaroori hota

hai’, you must have noticed that you can recall the audio easily.

Music and advertising is a combination that helps the audience

to connect with the ad in an emotional way. Studies shows that

audio in an advertisement has more recall value than the video.

Audio mediums have their own set of strengths. For many

businesses, audio mediums are much more affordable,

convincing and effective advertising media. Unlike newspaper

ads, audio ads are more than just ink on paper. Apart from audio

advertising, a major theme is that each medium has its own

biases. Apparently, each medium presents certain types of

information easily and well. Compared with print, television and

computers, audio seems to be relatively stimulating to the

cognitive process of imagination.

SBI-KCC (State Bank of India – Kisan Credit Card) campaign

conducted by Vritti iMedia is a fair and clear example of audio

advertising. The purpose of SBI-KCC is to provide timely and

adequate credit to farmers to meet their production credit needs

impact of audio in Rural Markets

RURAL MARKETINGTHE

JOURNAL

JANUARY 2015

The writer is Mr. Rajesh Radhakrishnan - Director- Marketing Strategies and Public relations at Vritti i-Media

besides meeting contingency expenses, and expenses related to

ancillary activities through simplified procedure facilitating

availment of the loans as and when needed.

To identify the power of audio ads Vritti i Media carried out a

research of SBI-KCC campaign in Karnataka through which they

came to know about the following facts :-

1. Out of every 500 hundred people 477 witnessed the

automated bus announcements.

2. 308 people heard the announcement of SBI-KCC.

3. When asked about their opinions on the ad around 35%

people felt that the ad was very good and informative.

4. Around 237 out of every 500 people wait on the bus stops for

more than 15 mins which confirms that they have heard the

ads.

The positive point's people have mentioned about the SBI-KCC

coming to bus stand audio media are: people are happy to know

about the details of loans at bus stand. They feel that this process

of passing information will reach most of the farmers. Also it was

educating and audio was very clear and loud.

This brings us to a conclusion that audio medium is far more a

better medium when it comes to reach and the recall value.

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RURAL MARKETINGTHE

JOURNAL

JANUARY 2015

A mobile app helps farmers in East Africa diagnose and treat their cattle and livestock for common diseases

There are over 100 million farmers in East Africa, spread across thousands of square miles. For these farmers, livestock and cattle

are prime assets, providing them meat, dairy, manure and a mode of transport. However, owing to the remoteness of the farmers

and the fact that they are spread across a large area, establishment of a centralised healthcare system would prove to be costly and

also inefficient.

Veterinarians and animal health workers who visit these remote locations are rarely aware beforehand of what ails the animals.

Microsoft funded a Scotland-based technology company, Cojengo, to create a mobile app for the farmers in Kenya, Ehtiopia,

Uganda and Tanzania. The app, called VetAfrica, is a tool that farmers can use to provide quick and effective healthcare to their

farm animals.

VetAfrica works in two ways. First, it helps farmers treat their ailing animals by providing them a correct diagnosis based on the

symptoms entered into the app. Second, vets and animal health workers can use the data given by farmers, when they visit the

rural areas, to provide better healthcare, as they are better informed.

The app covers common animal diseases, like Anaplasmosis, Babesiosis, Cowdriosis, Fasciolosis, Parasitic Gastroenteritis,

Schistosomosis, Theileriosis and Trypanosomosis. Keeping in mind the unreliable Internet access in rural Africa, VetAfrica is

designed to work offline, and syncs data when an appropriate network, WiFi or GPS, is available.

VetAfrica is currently available only on Windows phones on a try-before-you-buy basis. Users can use the app for free for 15 times

to evaluate its usefulness before opting for a full subscription. Keeping in mind the cost consciousness of rural African farmers,

VetAfrica offers subscriptions for 30, 90 and 360 days.

INNOVATION – INTERNATIONALMobile App to Help African Farmers

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ON GROUND

“MASTI KI PAATHSHALA” to schools for a major confectionary brand

Brief –

Idea Implemented -

Perfetti Van Melle a leading confectionary manufacturer in the country launched its Juzt Jelly & Creamfills candies in WB & Bihar

Post distribution & fair amount of TV bursts it wanted us to achieve the following business

objectives.

1. Generate fun centric brand awareness and like ability of the product

amongst the TG( Kids)

2. Highlight that Juzt Jelly is made from Strawberry & Creamfills is made

from Cream

Kids loves & hates going to schools at the same time. He loves to hang

around with his friends and hates boring classes. With learning and fun

being poles apart from him, we build upon the concept of learning can be fun.

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JANUARY 2015

PERFETTI On Ground Activation: Anugrah Madison

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26

The program was named “Masti Ki Paathshala”

Implemented across over 500 schools in the state of WB &

Bihar, the program emphasized upon the need of learning

with fun. The activity had 3 modules as follows.

Emphasis on the need to

learn with fun was established. Anchor gave quick tips to kids

around the same and asked them to ask good questions. Both

the brands were subtly placed and kids were encouraged to

ask questions around it. E.g What's the cost?, Does it come in

other flavour etc. Kids asking good questions were

rewarded.

All the kids were handed over

drawing sheets which contained a sketched image of Juzt

Jelly candy. Kids had to fill the colour and the best of them

were rewarded. This was done to help them connect Juzt

Jelly with the focus Strawberry flavor.

An innovative game was

designed to hammer the brand name in the mind of kids.

Based on a simple game of hop-in hop-out a single line was

drawn on the ground. One side of it said Juzt the other Jelly.

Kid had to jump in the name section being called for. More

than 20-30 students playing together this game had a mass

appeal and was played by almost all kids of the school.

Similarly activity was done for Cream fills too.

Post the completion of the above modules

and before wrapping up the activity, each and every kid of the

school were given out both the candy variants.

Results

The intervention reached out to over against a

target of 500 schools across 200 towns. It

directly

via games & drawing completion.

1. Introduction of Theme –

2. Drawing Competition –

3. Engagement Games -

4. Sampling –

550 schools

reached out to

over 1,60,000 kids and engaged 1,10,000 kids

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27

Introduction: LCV segment had experienced a slowdown in the beginning

of 2013. Slowing economy coupled with weak consumer

sentiment had further affected the growth of the segment.

On the other hand, because of good monsoon Pickup segment

wasn't affected by the slowdown as it was dependent on farm

and agribusiness.

Client Brief: Client wanted to develop the farmer segment. Farmer was

currently using Bolero Pik Up for 2 to 3 months to transport

farm produce to mandis after harvesting. Apart from these 2

to 3 months farmers used Bolero Pik Up for different work

and earned additional income.

Activity:Phase 1: Anaj Mandi: This activity was conducted after

Diwali when farmers had harvested their fields. They would

go to Anaj Mandis to sell the produce.

Anaj Mandis are markets in small towns and cities. Farmers

from nearby villages bring their produce after harvest to sell

to a small group of traders.

Agricultural produce is bulky and itcan't be transported

easily. Even if it is carried to the Anaj Mandi, it's not possible

to take it from one trader to another in case the farmer isn't

happy with the offer price.

A plan was formulated and it was decided that the activity will

be conducted in 2 stages: Pre and Main Activity.

Stage 1: Pre, Activity focused on creating the required buzz.

Major touch points were targeted, leaflets were distributed,

and people were invited to the main activity. The major touch

points covered were Anaj Mandis, Transport Addas, IDAs,

Haats etc.

Stage 2: Dhol and Dappu artist invited people to the center

Mahindra Automotive

stage on the D-day at the venue. The demo van acted like a

backdrop and a Bolero Pik Up was placed on a red carpet. The

Emcee invited people to the van.

When the crowd gathered, a skit was performed in which a

prosperous farmer and Bolero PikUpowner explained the

benefits of owning one to a young prospective buyer. He

highlighted the features of a Bolero Pik Up.

After the skit, test drives were offered, features were

explained and leads were collected. After finishing the

activity at Anaj Mandi, the van moved to other touch points.

Camps were pitched at Transport Addas and in IDAs for

maximum visibility. Test drives were also offered at

Transport Addas and IDAs.

Anaj Mandis were covered with Bolero Pik Up branding post

main activity. Branded carry bags and key chains were

distributed as gifts. These efforts ensured effective brand

communication.

Dipstick Study: The results of the Anaj Mandi activity further encouraged the

client to identify various phases of a farmer's life and also to

ON GROUND

RURAL MARKETINGTHE

JOURNAL

JANUARY 2015

On Ground Activation: Insight Outreach,

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28

identify the touch points to create customized

communication plan. A dipstick study was conducted in the 7

districts in AP and Telanaga, and 4 in Karnataka.

Based on the findings, farmers with net income of Rs. 15 lakhs

p.a were targeted for the activity.

A communication plan was designed to position Bolero PIK

UP as an additional source of income. The campaign was

called “Kisaan Unnati Bolero Pik-Up sangati”. To

communicate an insight and story based TVC was shot.

Phase 2: Gram Panchayat and Haat Activity:

Gram Panchayat: The dipstick study also revealed that farmers spend about 2

hours every day at Panchayats and they visit Haats at least

once a week. At Panchayats they spend their time discussing

village welfare and farming. They also read newspapers and

magazines.

The Sarpanch holds a high regard in a farmer's mind. That's

why Panchayat Samiti was chosen to interact with the

farmers.

Location was recced and necessary permissions were sought.

Activity posters were put up. Leaflets were distributed by

visiting door-to-door and villagers were invited.

On the D-day a well-crafted AV was played. The theme of the

campaign and AV was “Kisaan Unnati Bolero Pik Up”. It

provided a comparative analysis on the lives and prosperity of

a Bolero Pik Up owner cum farmer and that of a regular

farmer. The AV explained how an additional income can be

generated through a Bolero Pik Up.

Emcee engaged the crowd by asking questions and inviting

suggestions on village development. The Sarpanch was

felicitated and the recorded suggestions were passed on to

him.

Haat Activity: The study also revealed that they combine Haat visits with

other activities like purchasing ration, groceries and also

visits to a doctor. Haats are also a major source of

entertainment for a farmer's family.

A Haat is visited by at least 50% of the population every week

from the villages it covers. Keeping a farmer's family in focus,

activities were designed.

Posters were put up after the Haat was recced and necessary

permissions were sought. The vehicle was placed on a red

carpet near the demo van. “KisaanUnnati Bolero Pik Up

sangati” AV was played. Test drives were offered and after

every 5-7 test drives, Emcee quizzed people on the features of

a Bolero Pik Up.

In another activity, farmers were invited to have their photos

clicked with their families and Bolero Pik Up as a backdrop.

Instant photographs were given to prospective leads.

Results of Gram Panchayat

and Haat Activity:In a span of 46 days, 7 teams covered 263 Haats and 277

Panchayats in 3 states.

• Generated a total of 11,410 enquiries, of which 980 were

hot leads and 934 were warm leads.

• 16% of the total enquiries were considered to be hot and

warm leads were expected to purchase the vehicle sooner

or later.

• Apart from campaigning and promoting the vehicle at the

village and small town level, the teams booked 33

vehicles in these states on the spot.

RURAL MARKETINGTHE

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BRIEF AND OBJECTIVEThe first decade of the millennia saw India setting forth on a

development course that saw the creation of the India success

story. This developmental phase encompassed all spheres of

the economy and improvisation in quality of life across both

urban and rural India.

The numerous welfare and developmental initiatives by the

GOI in Rural India not only improved the quality of life in

JOHNSON & JOHNSON

general, it also empowered them with an ever increasing

purchasing power. The disposable incomes of the people

grew and they were readily lapping up products and services

which hitherto were urban phenomena. Aspiration and

affordability drives the upsurge.

Rural India was the cynosure of all marketers as this was the

sector that was growing exponentially compared to Urban

India. The opportunities were immense, but not without

challenges.

Johnson & Johnson India, whose presence in the Indian

hinterland was very low only added to its void in this

emerging market.

Though the awareness of J&J brands are very high in this

middle India market cluster, the perceived notion is that

there is no need for the brand as what is being traditionally

used is all right coupled with the fact of J&J's products being

expensive.

The objective was to build awareness and usage of Johnson

and Johnson Consumer products in the weaker penetrated

geographies but the challenges were multi-fold-

• Challenge 1 - J&J's baby products are to be used

mostly for first three years of baby growth. Reaching the

same geographies again and again leads to a very cost

ineffective marketing initiative to build the brand

relevance amongst the target audience. How to design a

consumer education program that is self-sustainable?

• Challenge 2 – Is there a common consumer insight

that can help in designing a uniform campaign all across

middle India geographies?

• Challenge 3 – Can there be a supportive and self-

sustaining distribution channel in these markets that

not only help in product penetration but also can help in

building a long term relationship with the consumers?

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JANUARY 2015

ON GROUND

On Ground Activation: Lowe Lintas Linengage

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30

CONCEPT & ACTIVITY

Consumer InsightThe young married women are educated and want to become

a source of income in family. She has high awareness of the

developments in society; usage is based on Voice of Authority

and familiarity, e.g. Bhabhi (Sisters In Law), MIL (Mother In

Law), etc. They believe that professionals' word carries a lot

of weight.

It was observed that the women in these geographies are

constantly seeking information from credible source and are

ready to accept changes that improve their lives. They

understand the benefit of education and believe in being

empowered and are ready to be independent. Family values

are important for them. The challenge was to intersect these

women's lives to impart relevant knowledge without being

intrusive and preachy.

Key insight for this target group is that all of them are

currently struggling to be at par with the dynamics of

changing world around them. To cope up with this situation

they need knowledge about various aspects of life situations.

The ConceptSince the root of the problem was lack of knowledge, the

solution was to instill proper understanding through

education. Across India 'SANSKARS' or VALUES as we

understand them, play a crucial role in molding a personality.

This insight was explored further which led to the idea of

promoting usage of J&J products as Healthy Habits.

Rigorous research in various markets has given us 40 key

areas of knowledge to be communicated to the target

audience. These areas of knowledge were identified on the

basis of linkages to the genes of our brands. The key brand-

benefit messages are weaved into the good habits of life and

are being propagated as modern Sanskars to make life better

and healthier. Thereby, create relevance of the products in

the lives of our target group, in a way, that is non-offensive

but all encompassing.

The ActivityThis idea was executed using different platforms.

An on ground, engagement program called 'Stree Shubh

Sanskar” was one of them.

This program was devised to promote usage of our J&J

products as a Healthy Habit. This proposition was justified by

pitting our products against the substitutes being used. The

differences and the benefits as compared were highlighted in

the process with the help of an Audio-Visual.

Folk music which is a source of daily entertainment was used

as a catalyst to make the entire process memorable. Lyrics

were written and composed using the typical tone, manner

and tempo. These lyrics subtly created a positive perception

of our products.

The platform of Sanskars-or life values gives us the

opportunity to talk to them in their language keeping the

highest level of respect to their cultural values and yet passing

the information about good practices in an easier and

effective way.

AMPLIFICATION & SCALEThe program is planned to be implemented in 2419 most

potential villages of Uttar Pradesh in 3 rounds of middle India

initiatives. In the first round of initiatives, 840 priority

villages were selected and the program was executed.

Ground Activation comprised of:• Pre-publicity - through audio announcements, home-to-

home invitation, banners and posters at vantage points in

the village and help of Key Opinion leaders of the village

• Retailer contact - using POS put up at the retail counter for

brand visibility, product monitoring chart and a special

invitation for theretailer's family to the event.

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• Doctor Contact - Height Chart put up at the PHC and

distribution of Doctor Detailer to the Doctor at the PHC.

• Stree Sabha – Target audience (women, aged 15 years+)

were invited at a pre-designated place. Stree Sabhas

(Women Sessions) were conducted in the priority

markets. The program was designed as a 60 minute

interactive session for women in the age group of 15 to 45

years with the musical AV and a Q&A session based on the

AV. The program was conducted by a team of trained

female moderators (3 days on/off field training).\

• Sampling – sample products were distributed at the end

of the program.

• Radio was used as a medium to augment the impact of the

ground activation. A 13- episodes radio program based on

Stree Shubh Sanskaars were broadcasted on AIR stations.

• Merchandising–To enhance brand visibility, various

merchandise elements were put up at key touch points

including retail shops and Primary Health Center.

• Local Cable Television was identified as low cost alternate

reminder medium for the program.

• Program Sustenance

J&J focus on making life-changing, long-term differences in

human health by targeting the world's major health-related

issues. They work to fulfill this and other philanthropic

efforts, through community-based partnerships. In order to

achieve this mission, a brand ambassador for the company in

each of the priority village is recruited during the activation

program. The brand ambassador christened 'GramyaJyoti'

(Light of the Village) is currently responsible for driving the

consumer promotion in her village.

The legion of GramyaJyoti will be a force to reckon with: 2419

GJs will be enrolled in the Indian State of Uttar Pradesh

alone. This force can be used for information dissemination,

merchandising, gather target group for future program at

short notices, etc.

Gramya Jyoti is essentially a Health Volunteer who provides

information on topics related to women hygiene and child

health care. GJs also drive the consumer promotions drive,

facilitating sales, merchandising at retail outlets, sharing and

distribution of IEC material with village women, interaction

with distributor, profiling health of women and children in

the village with tracking and reporting of improvements in

these areas achieved.

RESULTSProgram implemented in 840 priority villages in Uttar

Pradesh – in the Middle India Cluster - that led to the creation

of 167 GramyaJyoti – the brand ambassador for the Company

in these villages.

Key AchievementsImprovements in Brand Relevance

• JB J&J Baby Soap - Association on the following has

increased since activation: Suitability for younger and

older babies, Reasonable prices, Anti germ, etc.

• JB J&J Baby Powder - Significant improvement in all

imagery parameters since the activation. Association on

the following has increased since activation: Does not

block baby's skin pores, does not cause irritation to

babies, has less powder dust, has mild ingredients,

recommended by doctors, etc.

• JB J&J Baby Oil - Significant improvement in trials and

purchase intention

• Stayfree Secure - Significant improvement in purchase

intention, significant decline in non-users for Stayfree

31

RURAL MARKETINGTHE

JOURNAL

JANUARY 2015

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