Tuesday, September 21, 2010

DIFFERENT STROKES FOR DIFFERENT FOLKS

Brands and companies that wish to succeed in the emerging rural market need to employ strategies which allow them to be a part of the consumer’s daily life...

India is fast becoming an emerging market with an estimated 150 million strong middle-class consumers. Stretching across the length and breadth of the subcontinent it has long fascinated domestic as well as multinational corporations around the globe. In fact, now the dream is blazing brighter than ever as the Indian rural market is displaying a marked inclination towards consumerism, outpacing the urban market in its ever increasing demand for an array of products and services.

The basic surge in the demand for consumer products is not anymore confined to the people with high levels of income. Even those who appear to be less privileged buy and use such products. Significantly, most of the purchases are made from the households’ own income. Higher purchases schemes and loan account for only around 10% of the rural buying. As a result, like all other mediums of communication, activation and experiential marketing has also seen a massive surge in opportunities in the emerging Indian rural market, as brands now have to increasingly rely on consumer – brand experience to capture mind share against extremely strong local products.

In a market where life revolves around deep rooted community values, joint families and social customs, a pertinent question pops up: Does one size fits all or does one needs to make specific strategies to target emerging Indian consumer? Our emerging consumer is not the savvy “I know it all” of the metro as yet. Yes, as in almost all other media for activation too – it’s different strokes for different folks!

For marketers in the last decade, making space in this emerging consumer market has been fairly simple. The famous video on wheels road shows, the branded smaller trucks, and the likes have done endless rounds, season after season for almost every product. However, in the last few years India has truly evolved with the TV, movies with their endorsements and even the electronic medium has seeped into the rural fabric. They know their brands and have opinions. So, is the ‘song and dance’ or the ‘show them a movie at night’ is really all it will take now?

The time is ripe for focused and relevant messaging and activations that build relationships. To appreciate and understand the emerging consumer’s decision making process one needs to understand the culture of ‘emerging India.’ The social structure of this TG is built around the immediate family, local business community, regular meetings at mandirs, community participation in festivals, et al. Hence, this impacts the entry points to consumer’s life where his purchase decisions are heavily influenced by someone close/trusted like family members, friends or even local dealers/agents, and of course if the product drives aspiration. Interestingly, rural youth is slowly evolving as the ‘opinion leader’ in influencing brand and product decision in a market that was swayed by village elders for centuries. When building a brand in rural India, word-of-mouth is a huge motivator. Initiatives like participation at community events such as annual melas, haats and street theater, continue to generate awareness and influence buying decisions.

Comparatively evolved involvement with schools, sponsoring sports teams or clubs, adopting associations, and building associations with panchayats create a positive word-of-mouth. A plan which activates word-of-mouth goes a long way in forging a longer lasting relationship. A case in point is Dabur Chyawanprash with the objective to reach out to mothers through kids to make them aware of the importance of Chyawanprash in their children’s everyday life. A unique concept of ‘Androoni Shakti Choonauti’ for the kids was conceptualised promoting the brand across schools. Post an interactive session and a product audio visual, letters were sent to mothers including a slogan contest and discount coupon. In fact, in select markets over a lakh students translating roughly into the same numbers of households were contacted. With a 50% response the brand was not only able to build a significant relationship with the consumers but also add on to the numbers. Certainly activating emerging India is all about having different strokes for different folks!

Ambika Sharma is the National Head of Jagran Solutions, which in 2009 won 23 awards at the 10th PMAA event at Singapore

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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