rural advertising

RURAL ADVERTISING

MAKING INROADS INTO THE HINTERLANDS. 1

A STUDY OF RURAL ADVERTISING & PROMOTIONAL

STRATEGIES USED BY MULTINATIONAL COMPANIES

IN INDIA

SUBMITTED BY:

RAJ ANAND (308A30) SUNIL SHARMA (308A37)

RUPESH KUMAR SHUKLA (308A36) SUNIL KHATRI (308A32)

ASHISH TAHLIANI(308A )

RURAL ADVERTISING


Table of contents

Contents Page no.

Research objective & methodology

3

Research Design

4

Introduction: Role of advertising in Rural India

5

Current Scenario 8 Overcoming barriers of communication

11

Selecting media mix

13

Case Studies

31

Conclusions

42

Bibliography

44

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RESEARCH OBJECTIVE:

1. To study the various kinds of advertising and promotional tools used by

MNC’s in Rural markets of India.

2. To find out what role does advertising play in the rural markets.

3. To analyze the problems faced by companies when advertising in Rural India.

RESEARCH METHODOLOGY:

Title of the study:

To study the advertising and promotional strategies used by multinational

companies in India.

Title justification:

The above title is self explanatory. The study mainly deals with the kind of

advertising that companies employ in rural markets. It is important to understand

the advertising strategies used by these MNC’s as rural India is one of the largest

potential market for these companies. As the urban market is getting saturated

the companies need to find new pastures and what can be more luring than the

untapped rural markets of India. The study helps to find out the main problems

faced by marketers in creating a Brand Image for there brand in rural markets. It

also gives an insight about some successful advertising tools that are used by

marketers in rural India.

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RESEARCH DESIGN:

The research design is basically Exploratory as we have tried to find out the basic knowledge about the types of media available for advertising in rural markets. It’s a very basic study trying to generate an insight about the need of using different kinds of Mass and Traditional media in rural markets. DATA COLLECTION METHODS: As our research is based on secondary data the type of data collection methods used by us are:

� Literature Search

� Online literature � Printed literature � Published statistics

� Analysis of Selected Cases

� Intensive study of related cases or past activities � Can help provide clues as to how other units or companies have

dealt with similar issues

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INTRODUCTION

ROLE OF ADVERTISING IN RURAL INDIA

In India, the advertising is mostly in English or Hindi. As rural markets widen

beyond the English-and-Hindi knowing people, there are problems of translation

into the vernaculars. Good translations are seldom easy; and there is often the

need for thinking out the advertising concepts and the brand image in the local

language itself. This is a problem for local copywriters to conceptualize in the

vernacular, where necessary. Advertising in the local language in the absence of

shortage of professionals, makes success of rural advertising campaigns difficult.

It is a general assumption of advertising theory that advertising helps to create

demand. It may be worth saying to what extent advertising creates demand,

particularly in our rural society, which is in transition from traditional to modernity

and to what extent it helps only to accelerate demand after the social and

environmental changes have taken place. The basic trends for demand of

products are determined primarily by prevailing social and environmental

conditions.

Advertising itself serves not so much to increase the demand for a product as to

speed up the expansion of demand that may come up from favourable conditions

and to retard advances due to unfavourable conditions. Most rural marketers

treat this as an almost insoluble problem, because other factors also stimulate

demand for e.g. price cuts, quality changes and increasing real incomes.

‘We divert some resources from advertising to market research even at the risk

of under advertising in rural areas’

This is essential because the basic marketing problem is the absence of

elementary market research data individual rural areas. Individual fact, we do not

know where we are going. Over planning leads to over-capitalization, from which

it is very had to retreat. The five-year plans have been a classic exercise

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individual bad demand forecasting with sophisticated methods and poor data;

and it has been compounded by business managements accepting national

planning targets as gospel, without undertaking the responsibility of doing a

measure of their own market research, which is an essential for rural markets

individual India.

The rural market information gap is wide enough to justify major collaboration

between governments, universities, independent research organizations and

business. There is very little appreciation of it as a primary investment need, its

very precondition; and very little money is spent by too few on it.

Advertising caters to rural society with divergent life-styles and value systems

presented an unusual challenge between the strategy of homogenization

(overcoming the barriers between segments), and one of heterogenisation

(capitalsing the very existence of many small riches). This sort of advertising

involves constraints individual in the form of cost duplication of facilities and

fragmentation. In such areas, the basic objective of advertising and market

research may be to find and develop products, which may cut across

heterogeneous preferences with common brands and similar or common

advertising.

Our rural marketers should keep an eye on import substitution and upgrade raw

materials on the basis of research and development before they can ensure that

adequate raw materials reach the manufacturing areas for products which would

then reach rural markets individual a steady flow and at relatively stable prices.

Tourist advertising and motivation pose a most fascinating challenge to our

country with its old culture. Foreign tourist can be attracted to rural areas where

historical monuments, game sanctuaries, and mountain and sea resorts exist.

Rural India is a set of regional markets where cultural factors play a very

important role. The raw materials come from the soil; and the relatively low

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productivity of Indian farmers is reflected in the low purchasing power of the rural

buyer. The rural advertising problem in a country like India is related to political,

social and economic problems. With low income from farms the question that

arises is: can we afford the infrastructure of mass media for rural markets?

The Indian rural market is very heterogeneous. Nevertheless, public

advertisement is an important prerequisite for the creation of demand. The

problem of rural consumer in our country is that he is traditional; to some extent,

there is homogeneity and there are high resistance and low resistance products

among the rural buyers. Rural buyers show a great many contradictions; and the

advertising man has to understand them. For example, the poor spend lavishly

on marriages; in certain parts rigid caste systems still exist; the community is

more contended with whatever little it has.

Many preach non-violence and practice violence. For mass media men to

motivate rural buyers to change their lifestyle is not therefore that easy. The

concept of sufficiency is a hurdle to development and the problem of huge

distances and inadequate outlets is quite considerable.

Within a rural market, there are many mini markets based on caste, religion,

language or other differences. All people living in an around these markets have

distinctly different life-styles. The marketing men know that the cost of distribution

increases as the town gets smaller and it is not economical to serve very small

villages. Rural markets are no longer a sellers market now. Many people have

underrated the strength of the market on the assumption that India’s rural poverty

restricts rural purchases only to those items, which are basic necessities. This

has turned out to be a myth now. The social status, needs, expenditure on

weddings and entertainment, have influenced the operations of the rural markets.

Many farmers travel to weekly markets to buy vegetables that they can

themselves grow; but they go in order to have news, stimulation and for

socialization.

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RURAL ADVERTISING: CURRENT SCENARIO

There have been two schools of thought among Indian advertisers on rural

advertising. The first school believed that products and marketing techniques,

which worked in metro and urban areas, could be transplanted with little or no

modifications to rural India. But the more sophisticated Indian advertisers, quickly

perceiving certain very basic differences between town and country, inaugurated

the second school: the belief that rural marketing required radically different skills

and techniques from its urban counterpart. As a result of the swing of extremities,

which naturally attends such realizations, several new beliefs have become

popular:

• The rural market offers a vast market for consumer goods.

• The distribution task involves covering several lakh villages.

• Low-priced products should be more successful in rural markets because

of the per capita income in rural India.

• Rural consumers form one homogenous group with similar needs, values

and aspirations.

• Advertising should be simple and unsophisticated and in terms of media,

use local fairs, opinion leaders, etc., as opposed to press, film, radio and

such other ‘urban-oriented’ media. This was deducted from the low

media exposure figures for rural India.

Underlying these beliefs has been the model of a rural consumer who is relatively

poor and illiterate, whose only media exposure is the local opinion leader, who

remembers brands by picture symbols as opposed to brand names, and who is

unable to comprehend anything other than the most simple of commercial

messages.

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The myth of the impoverished rural consumer seems to have some basis,

considering the fact that the vast portion of the rural population spend less than

Rs 43 per month. However assuming that as soon as the per capita expenditure

reaches the level of Rs 100 per month, the consumers become of interest to the

marketers of branded products, we see that more than half of such consumers

are in rural areas. There are more rich consumers in rural India than in urban

India

There is no uniform pattern covering all villages. The structure of competition in

rural India can be classified as follows: competition from other urban national

brands, from regional brands, from unbranded urban products, from unbranded

products of that village and finally indirect competition from substitutes.

a) Other urban national branded products. In certain villages the

proliferation of national brands is quiet evident. This more likely in villages

which are on the periphery of larger towns because of the spill over from

urban centres. There are exceptions to this: certain national brands have

reached the remotest of villages perhaps because of the consistent efforts

made by manufacturers through their marketing and advertising efforts;

this is more striking in case of branded tea.

b) Regional urban branded products. In some villages regional brands or

brands of unorganized sector are quite common. This is so for soaps in

north and south, detergent powders in Gujarat, and talc’s in Tamil Nadu

and Kerala.

c) Unbranded urban products. These products are manufactured at an

urban centre and find their way into rural India through wholesale

channels: they are commonly washing products, confectionery items,

ribbons bangles etc.

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d) Unbranded products of village origin. These are products

manufactured in village itself: the hardware of the village smith, the ropes

made in the surrounding fields or the bread and food products made by

local baker or sweetmeat maker.

e) Substitutable products or indirect competition. A further classification

can be made for competitive products, which can be substituted. Such

products are ‘majaans’, neem twigs for the teeth where toothpaste have

not yet entered, or soaps where synthetic detergents are not common. In

villages which are around Banaras, villagers use the mud from the river-

bed to wash their clothes and themselves too!

Central to the current beliefs on rural advertising are as follows:

a) Because of the low literacy level and for other reasons, the rural

consumer has very low exposure to mass media (press, film, radio,

outdoor) normally used in urban India: that communication in rural

India must depend on ‘non-conventional media’ such as drama

troupes, mime groups, personal communication, etc.

b) Because of the lack of sophistication of the rural consumers the

creative treatment must be kept ‘simple’, and depend on visual

treatment more than on copy.

Here again, it is worth examining these beliefs. The first one –that conventional

urban style media are relatively useless for rural India- is so deeply rooted that

many marketing executives are likely to be willing to even discuss it. This belief

squares with our commonsense of the poor illiterate farmer.

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OVERCOMING THE BARRIERS OF COMMUNICATION IN RURAL I NDIA

A company that seeks a long term presents in the rural market has to squarely

encounter these constraints and find a way of communicating effectively with the

rural target audience.

Role of media in rural markets

Media can be divided into two variables:

1. Traditional Media

� Puppetry, dance-dramas, rural specific art forms like Harikatha

and Villupatu preformed at village melas and temple festivals.

� Study classes.

� Mike announcements, processions.

� Caparisoned elephants, decorated bullock carts carrying ad panels.

� Music records.

� Folk theatre.

� Demonstration, house to house campaigns by special promotion

Squads.

� Hoats and Melas.

� Information centres on company’s products.

� Wall paintings

� Posters

� Agricultural Games

� Postcards

� Audio-visual vans or publicity vans

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2. Mass Media

� Television

� Word of mouth

� Radio

� Cinema halls

� POP,s

� Press

� Other print media

Companies using Traditional Media

• Brooke bond India Ltd.

• HLL

• Rajdoot

• Bajaj

• Nirma

• Colgate Palmolive

Companies using Mass Media

• Onida

• Videocon

• HLL

• Eveready Batteries

• Eicher Tractors

• RCF

• Mahindra & Mahindra Tractors

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SELECTING THE MEDIA MIX:

Evidently, in the rural context the firm has to choose a combination of

formal and non-formal media. The possibilities are indicated below:

THE FORMAL/ MASS MEDIA:

Among the formal organized media TV, Radio, Cinema, POPS and Outdoors

have a good scope in the rural context.

TELEVISION:

With the increase in coverage and increase in TV ownership in the rural

areas, TV has become the primary media for communication to the rural masses.

Studies reveal that as much as 77% of villages in India now receive TV

transmission and 27% of all rural people actually watch TV. The main advantage

of this medium is that, it is both spoken and visual. Television has proven

advantageous in communicating with the rural people due to the low literacy

levels. However while using this medium, the viewer ship habits of people needs

to be taken into consideration.

� HLL has been in the forefront in using TV to communicate with the rural

masses. Lifebuoy, Lux, Fair and Lovely and Nihar oil are the products

advertised via television.

Most of the messages of National concern on Family Welfare and Literacy

Campaign by the Government are telecast before the popular programmes with

rural characters.

RADIO:

The radio is a well established medium in rural areas. As one of the

oldest and potential media used for communication with farmers and for diffusing

agricultural technology, radio has yielded significant results. A big expansion in

the broadcasting facilities has taken place in the rural country over the years. The

availability of radio sets has also expanded. Given the reasonable price of a

transistor radio, it can be inferred that, most of the rural families own a radio set.

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While radio as a medium cannot match TV in potency and effectiveness, in its

existing context, radio does have a role in rural communication.

There are specific programmes for agriculturists like ‘Farm and Home

Programme’ or ‘Krishi Darshan’ in all regional languages, which are broadcast on

the primary channel. Thus the ownership pattern of radios in the rural areas has

enabled regular listenership and its main advantage is, it is cost effective

medium.

� Colgate, Jyoti Laboratories, Zandu Balm, Juari Industries are some

companies using radio for communication. Some of the agencies into radio

advertising are as follows: Rediffusion (for Colgate), O & M (GE worldwide),

Lintas (Juari Industries).

CINEMA:

The cinema is a useful medium in rural context. Most rural villages have

one or more cinema halls. And 29% of all rural people do watch cinema as a

matter of regular lifestyle and habit. Short feature films with disguised

advertisements messages, direct advertisement films and documentaries that

combine knowledge and advertisements, can be employed for rural

communication. Cinemas are more popular medium in southern states like Tamil

Nadu, Andhra Pradesh.

� Thumps up telecast their commercials (Sunil Shetty and other commercials

with popular celebrities) during cinemas.

OUTDOORS:

The outdoor also lend itself well to rural communication. In fact,

currently many companies are using the outdoor medium imaginatively in their

rural communication mix, through hoardings, wall paintings, illuminations and

other displays in the rural areas.

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POP’s:

The POP’s point of purchase (or point of sales) promotion tools are also

quiet useful in the rural markets. The POP’s meant for rural market should be

specially designed to suit the rural requirements. More than written words,

symbols, pictures and colours should be used in POP’s meant for rural markets.

Colour is of particular importance in the rural context. As a general rule rural

people love bright colours. The effective communicator utilizes such cues.

PRINT MEDIA:

The relevance of print media for rural communication needs careful

examination mainly because the literacy level is low in rural areas. Print media

consist of a wide variety of items – Newspapers (dailies), periodicals (weeklies,

monthlies) and also the literature. Pamphlets, booklet produced my

manufacturers and marketing men. Vernacular periodicals and dailies are very

popular in the southern states. Some of the regional newspapers used for

advertising are as follows:

� Maharashtra (Konkan, Ratnagiri) – Badiraja, Krushival

� Kerala – Malayala Manorama

� Tamil Nadu – Dina Thanthi

.

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THE NON-FORMAL/RURAL SPECIFIC MEDIA

Rural specific media can be used to reach these people in the marketing of new

concept. The rural specific media with its effective reach, powerful input and

personalized communication system will help in realizing the goal. Besides this

when the advertisement is couched in entertainment it goes down easily with the

villager.

Advantages of rural specific media :

- The accessibility is high.

- Involves more then one sense.

- Interest arousal capability is high.

- Less operational liability Minimum cost.

A variety of non-formal media have been developed over the years by rural

marketing firms to meet the specific requirements of rural communication. Some

of them are interpersonal media and others are mass media. The more popular

ones among them are:

AUDIO VISUAL PUBLICITY VANS

The A/V unit or the publicity van is very useful for rural communication.

The van is a comprehensive mobile promotion station at the exclusive command

of the concerned firm. The firm can exhibit its films and other audio visual

presentations such as slide shows, sound and sight presentations, puppet shows

etc. from this instant promotion station. A portable shamiana or platform can be

carried in the van and can be used as a stage. Even mini public meetings can be

organized using the shamiana. Portable exhibition kits can be carried in the van

and exhibitions put up instantly. The van can also be used for sales campaigns in

addition to promotion campaigns. It can also be used for other product

demonstrations. In short the van has all the advantages of carrying and

delivering a tailor-made communication program for the chosen target audience.

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Naturally, the A/V vans are quite popular with rural marketing firms. Practically all

the firms in agri-inputs business have their own A/V vans all over their respective

marketing territories. Firms marketing consumer softs come second in the use of

AV vans. Firms marketing consumer durables come third. In the third category

the efforts of Phillips India deserves a special mention. Phillips India has very

successfully used the AV vans for popularizing their radios in rural markets.

While the AV vans are very effective tools in rural promotion, the cost is high as

the target population is scattered. The cost of reaching an individual customer or

prospect through the van works out to be very high. In the early stages of market

development, in particular, the sales generated may not have any relationship

with the cost involved in extensive use of AV vans. But in view of its

effectiveness, big companies with resources make a conscious decision to use

the vans as a long-term market development tool.

SYNDICATED AUDIO VISUAL VANS

In recent years, rural publicity vans have become a purchasable service. Firms

that cannot afford to operate publicity vans of their own can utilize the syndicated

AV vans service offered by independent agencies.

� The Joint Publicity Committee of the nationalised banks started rural

advertising through vans in the early '90s. They would make an

announcement in the village about a show of some religious and holy films in the

local language and in between the message would be carried to the audience.

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� Vidoecon used van demos along with audio visual aids to promote its

black and white colour TV. And its washing machine “Washer”. In addition their

mechanics take a round of the villages twice a week to assure the villagers of

after-sales service, an important component of consumer durables. The company

employs 1,800 engineers and mechanics for this purpose.

� Even Ondia uses Demonstration on vans to promote its television. When it

goes to rural areas to promote its product, on both the sides of the van a huge

cut out of their mascot “the Devil “ is put. This attracts the children and others

towards the van. Then a 40 – 45 min educative commercial is run to

promotevthevproduct.

MUSIC RECORDS, HARIKATHA, ETC

Music cassettes and records is another effective medium for rural

communication. It is an appealing medium. One complete language group can be

reached on a low budget through specially developed cassettes or records. They

can be played in cinema houses or in other places where rural people assemble.

Popular entertainment programmes like puppet shows, dance dramas, Villupattu

and Harikathas specially developed for product promotion purpose are now being

used in rural markets. These traditional art forms readily render themselves for

communication in rural society. Sales messages can be beautifully blended with

folklore to capture the imaginations of the rural audiences. Village fairs, festivals

and ‘melas’ are ideal venues for projecting these programmes. In certain context

public meetings are also useful for promotion in rural context.

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PUPPETRY

Puppetry is the indigenous theatre of India. From time immortal it has been the

most popular form and well-appreciated form of entertainment available to the

village people. It is an inexpensive activity. The manipulator uses the puppets as

a medium to express and communicate ideas, values and social messages. The

companies can develop a story line relating to the brand and show the characters

using the brands to their advantage. The dresses of the characters could be

those of the brand's packaging.

Types of Puppet theatre in India Contents

String puppets or Kathputlis of

Rajasthan

Heroic deeds of Vikramaditya, Prithviraj

Chouhan, Amar Singh Rathore

String puppets of Orissa Radha-Krishna

Rod puppets from Bengal Mahabharat, Manas , Radha-Krishna

String and Rod puppets of the south

(Tanjavur, Madras and Andhra)

Kathakali

Shadow puppets of Orissa , Kerala,

Andhra, Karnataka

Ramayana.

� Thus in rural India puppetry is a source of livelihood, avenue for

entertainment and creative expression which is ritually sacred and meaningful as

a means of social communication and vehicle of social transformation.

Song and Drama Division of the Government Of India makes wide use of

puppets in its campaigns to promote various government projects. Several other

organizations, government, semi-government and private, have also used

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puppets in support of individual schemes.

� Life Insurance Corporation of India used puppets to educate rural masses

about Life Insurance; enlisting the help of the literacy house in Lucknow.

� These plays were shown to the audience in villages in UP, Bihar, & MP.

The number of inquires at local Life Insurance Companies during the period

immediately following the performance was compared with normal frequency and

found to be considerable higher. The field staff of the corporation also reported a

definite impact on the business.

� Thumps Up is another company that has used puppetry to promote its soft

drink. The shows comprises of puppets of Thumps Up and other rival soft drinks.

The thump up puppet comes and strikes down the other soft drinks thus

reinforcing its slogan “taste the thunder”.

Indian Institute of mass communication, N.Delhi made a study of comparative

impact of puppetry and documentary films, in two villages near Delhi. People in

both the villages responded more favorably to the puppet shows then the films.

FOLK THEATRE

Folk theaters are mainly short and rhythmic in form. The simple tunes help in

informing and educating the people in informal and interesting manner. It has

been used as an effective medium for social protest against injustice, exploitation

and oppression.

� Folk songs have been effectively used during revolts of Telangana and

Naxalbari and now a days it's best exploiters are Political Parties.

- Government has used this media for popularizing improved variety of seeds,

agricultural implements, fertilizer etc.

� Punjab Agricultural University produced Two Audio Cassettes.

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� Balliye Kanak Biye - Wheat Cultivation.

B) Khiran Kepah Narme - Cotton Cultivation.

Both were well received by farmers.

BBLIL used Magician and skits quite effectively for launch of Kadak ChhapTea in

Etawah.

� The folk media such as Ragini in Haryana for communicating qualities of

Virat cement, pala and daskathia in Orissa for promoting safe electricity

consumption and toothpaste of Colgate Palmolive and Baul songs in West

Bengal to advertise insecticides.

STATES Folk Theater / Songs Forms In India

Andhra Pradesh Veethi Natakam, Kuchupudi, Burratatha

Assam Ankiya Nat, Kirtania Natak, Ojapali Bihar : Bidesia, Serikela

Chhau, Jat-Jatni Bidpada, Ramkhelia

Gujarat Bhavai

Haryana Swang, Naqqal

Himachal Pradesh Kariyala, Bhagat, Ras, Jhanki, Harnatra Haran or Harin.

Jammu & Kashmir Bhand Pathar or Bhand Jashna, Vetal Dhamali

Karnataka : Yakshagan, Sanata , Doddata-Bayalata,Tala

Maddle or Prasang,Dasarata,Radhna.

Kerala Kodiyattam,Mudiattam,Therayattam,Chavittu Natakam,

Chakiyar Kooth, Kathakali

Madhya Pradesh Maanch, Nacha

Orissa Pala Jatra, Daskathia, Chhau Mayurbhanj, Mangal Ras,

Sowang

Punjab Nautanki, Naqaal, Swang

Rajasthan Khyal, Rasdhari, Rammat, Turra Kilangi, Gauri, Nautanki,

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Jhamtara

Tamilnadu Therukuttu, Veethi Natakam, Bhagwat Mela Natakam,

Kurvaanji, Pagal Vasham, Kavadi Chindu

Uttar Pradesh Ram Leela, Ras Leela, Nautanki, Bhagat, Sang-Swang,

Naqqual

Maharashtra :

Tamasha, Lalit Bharud, Gondha, Dashavatar

INTERPERSONAL MEDIA

Interpersonal media have a special merit in rural context as they facilitate

two-way communication/interaction. They also bring market feed back to

the firm. In many cases rural people prefer face-to-face communication to mass

communication. Their confidence in the product the firm and their goodwill

towards the firm becomes stronger through interpersonal approach. Interpersonal

media have their unique advantages; they are segment specific, market specific

and score high when it comes to involvement and participation of the audience.

In the effort to reach out and go beyond them mass media, a firm can establish

contact with the audience through fairs and festivals, folk performances and other

special events. These points of contact also provide multimedia opportunities.

For example at any fair various media like audio, audio-visual and interpersonal

communication should be used.

Group meetings, Demonstrations, and House-To-House Campaigns

Group meetings of customers and prospects are important components of

interpersonal media. The sales man or the promotion staff of the firm can

effectively carry the product messages to the target audience at these meetings.

House to house campaign constitutes a handy tool in the rural market. In these

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campaigns, small squads of staff or persons specially hired for specific promotion

make house-to-house visits in the rural areas. Several independent teams may

be at work at the same time in different parts of the village. The teams usually

carry with them product promotion literature/handouts/product samples, etc.

These campaigns are different from door to door selling campaigns. The

promotion squads do not engage in the selling job, they only propagate the

product. As companies may normally find it difficult to spare their own staff of

such elaborate and time consuming work, they may hire the required people on

daily wage basis, train them briefly and use them under the supervision of the

company staff. In demonstrations, help of audio -visual media can add value

The five steps to make any demonstration effective are below:

- Information about people

- Objectives to be accomplished

- Demonstration plan & Execution of the plan

- Evaluation of the demonstration

- Reconsideration after evaluation.

Opinion Leaders

Rural consumers place more emphasis on the experience of others who

have used the brands to make their purchase decision. Opinion leader in rural

area can be defined as a person who is considered to be knowledgeable and is

consulted by others and his advice is normally followed. Opinion leaders could be

big landlords, teachers, social workers etc. They become important especially in

the marketing of consumer durables.

� Asian Paints promoted its Utsav range of paints by painting Mukhiya's

house or Post office 6 months prior to the launch of the paint to demonstrate that

paint does not peel off.

� For propagating ‘Surf’, HLL brought out a rural specific film, where they

took particular care to demonstrate step by step method of washing with Surf to

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get the best whitening effect. They knew that an elaborate demonstration was

essential for the rural audience.

� Reckitt and Colemen, Colgate and Samsung uses NGO's in rural areas to

educate customers about product benefits. Colgate with the help of NGO’s

carry out free dental check up camps where literature on dental care (in local

language), and oral care products are distributed.

� Mahindra Tractors use bankers as opinion leaders or influencers for their

prouduct.

� HLL’S ‘Operation Bharat’ is largest sampling exercises in recent times.

Before Phase- I of Operation Bharat, HLL was present in about 9 million

households in rural India. Operation Bharat introduced it to another 16 million

households. With 30 per cent of these coming back to Lever, it’s now bought 3.6

million more households into its fold. And the gains are evident in Lever’s topline

too. On the back of rural growth, the PPD’s sales grew from Rs 884 crore in 1997

to Rs 1,526 crore in 1998. The division now contributes 17 per cent to HLL’s

turnover, up from 11 per cent in 1997. The countries oldest tradition holds the

key to solving the rural marketing problems. The mobile supermarkets of rural

India – Haats/ Melas/ Shandies.

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HAATS AND MELAS

WHY MELAS ?

� Over 25000 Melas and 47000 Haats are held annually

� Annual sales at Melas amount to Rs. 3,500 Crore

� More than 10000 melas draw visitors from all over India

� Half the outlets at Melas are for manufactured goods

� Melas organised after harvest season, so the villager has enough money

to spend.

Demonstration at Haat is essential to convert customers at haats since their

aptitude is far more utilitarian than that of visitors to a fair. Through this

arrangement they can break the saddle of scant geographical distribution of

customers in rural markets as people of number of villages assemble to

participate in the fair. It is a good ground for building brand awareness, trial sales

and sampling. It provides a wider audience at a fairly low cost. Companies such

as Hindustan Lever, Titan and Colgate Palmolive use occasions such as Rath

Yatra, Kumbh Mela and Onam for brand promotion. These companies are

following a typical media schedule and are always in a march from one place to

the other with the festival calendar and a collapsible arrangement of the

exhibition set-up.

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� KUMBH MELA – A classic example of effective rural s pecific marketing.

The Kumbh Mela 2001-which is offering a 7.5 crore consumer attraction

opportunity-is being exploited to the fullest by FMCG majors like Hindustan Lever

Ltd (HLL), Colgate-Palmolive (India) Ltd, Coca Cola, Pepsi Co., Marico

Industries, Godrej Soaps, Britannia Industries and Dabur to promote mass-

appeal brands.

While official estimates on the total expenditure are not available, industry

analysts estimate the promotional expenditure among the FMCG majors to be in

the range of Rs 5-7 crore. Be it hoardings, stalls, film sponsorships or kundali

branding, POPs, mass media, and even new product launches, brand

promotions are visible all over the place to woo the captive audience over the

next 40 days.

Soft drinks major Pepsi Co, for one, has tied up with UP Tourism and the various

food stalls and restaurants to quench the thirst of all and sundry. But more than

just a window for sales, the Kumbh Mela is turning out to be a platform for

strategy.

In tune with the spirit of the mega event, HLL is using this opportunity to change

hand-washing and bathing habits in rural IndiaThe Mahakumbh at Allahabad is

the biggest mela in India and, with its focus on `cleansing' is a good fit for the

`Lifebuoy for health' message of the brand,"

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Even though Lifebuoy is not using mass media for this promotion, innovative

communication tools are being used at the mela to communicate the importance

of health and hygiene. "Large-scale activity has been initiated to explain to the

assembled masses the importance of hand-washing in basic hygiene.

The company has put up 14 stalls at various points in the mela grounds. Some

hand-carts have also been deployed for increasing access. The numbers of both

may be increased based on response. ``The activity aims to build awareness in

the target audience about hygiene and health through product demonstrations,"

the spokesperson said.

Colgate-Palmolive is concentrating on promoting its products, mainly through

ground activities. The products include the flagship brand, Colgate Dental

Cream, Colgate Cibaca Top, ZigZag toothbrush, Colgate Super Flex, Palmolive

Naturals range and Colgate Herbal. Balloon blow-ups is one popular mode which

is being used to advertise the brands.

Dabur India too sees a major marketing opportunity at the on-going Kumbh Mela.

Apart from using outdoor advertising media such as hoardings and hotair

balloons, the company is actively promoting its 400-strong product portfolio at its

40ft by 15 ft stall in the commercial area of the venue. To attract consumers, an

Ayurvedic physician has been deputed to provide free consultation at the stall.

As companies are not allowed to open shop in the main arena, Dabur has also

employed about 30 `jumpboys' who mingle along with the crowd and hence are

the walking window shops for the company. These boys carry Dabur's smaller

SKUs such as Hajmola sachets or Pudinhara sachets in trays and also have a

audio player which runs jingles of various Dabur products. ``The idea behind this

initiative is to reach out to the audience rather than wait for them to come to the

stall,'' says a Dabur source. Dabur will also air about 12,000 commercials on the

15-video walls placed at the mela during the length of the festival.

Titan adopting a railway station during the Kumbh Mela helped them to generate

a high brand recall.

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WALL PAINTINGS

Wall Paintings are an effective and economical medium for advertising in rural

areas. They are silent unlike traditional theatre .A speech or film comes to an

end, but wall painting stays as long as the weather allows it to.

Retailer normally welcomes paintings of their shops, walls, and name boards.

Since it makes the shop look cleaner and better. Their shops look alluring and

stand out among other outlets. Besides rural households shopkeepers and

panchayats do not except any payment, for their wall to be painted with product

messages. To get one's wall painted with the product messages is seemed as a

status symbol. The greatest advantage of the medium is the power of the picture

completed with its local touch. The images used have a strong emotional

association with the surrounding, a feat impossible for even a moving visual

medium like television which must use general image to cater to greatest number

of viewers.

� While Nirma makes extensive use of wall paintings, a soil conditioner called

Terracare uses images of Sita, Luv and Kush to attract the rural consumer.

� Companies like Coke, Pepsi, agricultural implement companies HMT tractors,

TAFE also use wall paintings. However the company that has very widely used

this medium in Thumps up.

POSTERS AND STICKERS

Posters are a short-term promotional media because the maximum life of a

poster on the walls in one day. This medium is usually used during the launch of

a product.

� Seed companies like Nath Seeds, Mahyco and FMCg like HLL use this

strategy.

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� There is an example in innovative media which was used by HLL to push

products in personal wash like Lux and Lifebuoy and fabric wash items like Rin

and Wheel.

For both, washing and for taking bath - one requires water. Now for rural markets

there are three sources of water - wells, handpumps and ponds. For the first in

the history of advertising - these were branded. Special stickers were put on the

handpumps, the walls of the wells were lined with advertising tiles and tinplates

were put on all the trees surrounding the ponds. The idea was to advertise not

only at the point of purchase but also at the time of consumption.

So the customer could also see the advertising when he was bathing or washing.

Now, the customers who bought these brands got a sense of satisfaction by

seeing their choice being advertised in these places while a question was put in

the minds of the customers who had bought other brands.

OTHER RURAL SPECIFIC MEDIA

POSTCARDS

The extensive network of post throughout the country can be used as an

alternative vehicle for brand promotion in the rural areas. Postbox’s, post office

walls and the post cards carry the logo and brand names of companies.

� Videocon was the first company to use this strategy. LIC is another company

that has adopted this strategy.

AGRICULTURAL GAMES

The ad agencies design various games and competitions in which the rural

masses participate. The winners are then awarded the companies product.

Following are some of the agricultural games organized:

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� Rajdoot organizes wrestling competition for the villagers, in which one of the

wrestler brought by them. The other one is a villager. The winner get to test ride

their bikes. The wrestling is a symbol of their products USP i.e ruggedness.

� Philips conducts jigsaw puzzle games consisting of their logo and punch line

“Lets make things better “ usually for the youth to create brand awareness. The

winner is given a Philips transistor.

Other Rural Media

The extensive network of postal and medical workers throughout the country can

be used as an alternative vehicle for brand promotion in the rural areas. The

days are not far off when the postbox, post office walls and the postman's

uniform will carry the logo and brand names of companies and the walls of the

rural primary health centres and schools will be covered by suitable brand

advertising catering to the taste of the rural target market. Once this innovation of

reaching markets through alternative cost effective media starts, rural

consumption will go high making it potentially more attractive than the urban

market.

DISADVANTAGES OF TRADITIONAL MEDIA

* Range of mode choice is narrow.

* Potential for cognitive gain retention is possible but restricted.

* Depends on the skill of the performer, but for optimum effect all elements in the

rural communication system will have to be orcheastered into a united whole.

* Extensive research of each and every village is needed.

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RURAL ADVERTISINGRURAL ADVERTISINGRURAL ADVERTISINGRURAL ADVERTISING

CASE STUDIES

COCA – COLA INDIA

The Coca-Cola Company is the global soft-drink industry leader, with

world headquarters in Atlanta, Georgia. The Company and its subsidiaries

employ nearly 30,000 people around the world. Syrups, concentrates and

beverage bases for Coca-Cola, the Company's flagship brand, and over 160

other Company soft-drink brands are manufactured and sold by The Coca-Cola

Company and its subsidiaries in nearly 200 countries around the world.

During the past decade, the Coca-Cola system has invested more than US$ 1

billion in India. Coca-Cola is one of the country's top international investors.

In 2003, Coca-Cola India pledged to invest a further US$100 million in its

operations. Coca-Cola business system directly employs approximately 6,000

local people in India. In India, it indirectly create employment for more than

125,000 people in related industries through our vast procurement, supply and

distribution system. Virtually all the goods and services required to produce and

market Coca-Cola locally are made in India. The Coca-Cola system in India

comprises 27 wholly-owned company-owned bottling operations and another

17 franchisee-owned bottling operations. A network of 29 contract-packers

also manufactures a range of products for the Company. The complexity of the

Indian market is reflected in the distribution fleet, which includes 10-tonne

trucks, open-bay three-wheelers that can navigate t he narrow alleyways of

Indian cities, and trademarked tricycles and pushca rts. The Company

ranking up "firsts" in the introduction of Canned and PET soft drinks , vending

machines and backpack dispensers for crowds of cric ket supporters.

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A common trend that is seen in the promotional advertisement campaigns of soft

drinks, is the presence of popular film stars and celebrities – right from Amitabh

Bacchan, Sachin Tendulkar, Shahrukh Khan for Pepsi, Hritik Roshan, Aamir

Khan, Aishwarya Rai, Sunil Gavaskar for Coca-Cola, Salman Khan, Sushmita

Sen for Thumps-Up to sonali Bendre for Limca, the trend continues. This is

probably because the Indian consumers are very influenced by film stars and are

big cricket fans and marketers still prefer to rely on building top-of-the-mind

advertising. Also, most marketing people tend to get evaluated on parameters

like brand noticeablity and brand preference. That is why most of them eventually

fall back on celebrity driven advertising, which quickly improves noticeablity.

As 30% of Coca-Cola’s sales comes from the rural markets where the potential

for growth is still high compared with a relatively saturated urban market, the

company wanted a separate rural strategy, hence the Aamir Khan-featured

commercial “ Thanda Matlab Coca-Cola” ( a campaign that immediately

provoked a retaliatory campaign from pepsi staring Rahul Khanna and Fardeen

Khan ). The “Thanda….” campaign was conceived during a brainstorming

session when someone pointed out that “thanda” (cold) is the soft term for soft

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drinks in local paralance – especially in the rural and moffusil areas. This

campaign intends to push the recently introduced 200ml Coca-Cola pack which is

increasingly becoming accepted in rural areas.

Coca-Cola has however undertaken a different set of advertising campaigns in

the Southern market ( as the south is a big cola market ). The four southern

states are in really different countries. For example there is a promotion going in

the North which will start soon, it will not be implemented in Tamil Nadu or Kerala

where they will have their own promotions. The things that work well in the rest of

the country do not work well in Tamil Nadu, Kerala or Andhra. For example when

they did tie-ups with movies like Hum Saath Saath Hain and Kaho Na Pyar Hai,

starring big names from Bollywood they didn’t do well in Tamil nadu nd all the

activities they did around these movies, also didn’t fare well. The people here do

not relate to these stars. In Tamil Nadu it is always believed that movies and

music have a large following. The trend is similar throughout the country, but

accentuated more in Tamil Nadu. If you take the case of Vijay, when Coca-Coal

finished the ad, many of his fan clubs came and took his Coca-Cola posters to be

displayed at vantage places in and around theatres screening his recent movies.

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CASE STUDY II

TATA SALT

Tata Chemicals’ salt story began in 1983, when it needed fresh water for

the boilers that produced soda ash at its Mithapur plant. Fresh water was scarce,

so the company set up a process to generate it by using seawater, a freely

available resource. Salt, of high quality and purity, was a by-product. Both

UNICEF and the Indian government were promoting the intake of iodine for

health reasons. ‘Salt is the most economical and convenient dietary vehicle for

iodine consumption’. Hence, these factors led Tata Chemicals to take up salt

production. Ever since its launch in 1983, Tata Salt has been synonymous with

iodized salt in India.

The positioning statement used earlier was ‘Namak ho Tata ka, Tata namak’."

The communication was built around the fact that Tata Salt, India’s first iodized

salt, was manufactured by a Tata company.

Tata appreciated that in order to sustain a competitive advantage over a long

period of time, what is needed is for the consumer to perceive the company to be

different from others. The best way to differentiate is to connect with the

consumer at an emotional level.

The challenge was to take purity, a rational product benefit, and create an

emotional link with the consumers. A new agency, Bates India, was chosen to

work on the communication. A strong fact that emerged from the research was

that consumers were troubled about the gradual erosion of nation’s value

system. Another factor was that salt is deeply rooted in grassroots values.

Tata salt spends about 15-18% of their sales revenue on promotion. The

promotional strategy used by Tata salt is Pull Strategy. It is based on the Brand

equity appeal and Tata brand name. “Tata Salt” is India’s fourth most trusted

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brand. This was highlighted by the study of reputed Market Research Agency

A.C. Neilson.

Tata Group follows the policy to give returns to the nation. Therefore,

along with the ‘Desh Ka Namak’ ad they came out with the ‘Desh Ko Arpan’

programme last year in 2002. The company decided to contribute 10 paise on

every packet of Tata Salt which is sold between August 15 and September 15’

2003 and also January – February ‘2004, towards the education of deprived girl

children. The ‘Desh Ko Arpan’ programme encouraged ordinary individuals to

make a difference. Over Rs 35 lakh was collected in 2002 and given to Child

Relief and You through this initiative. The Promotional tools adopted by the

company include advertising and sales promotion.

Advertising:

The amount spent on advertising accounts for 7 to 8% of the sales revenue.

They use mass media communication like Television Ads, Print Ads, etc.

Print Ads:

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They are printed in regional language newspaper and in the magazines in the

regional language. Like, The ‘Desh Ko Arpan’ Programme is been promoted

through print media advertisements in 5 regional languages (Hindi, Marathi,

Bengali, Tamil and Telugu).

Media Vehicles

Conventional Media-

(a) Television : For rural market they don’t have a separate advertisement but

they play the same advertise in the regional language.

Doordarshan- Tata Salt’s around 40% reach is because of its advertisements on

Doordarshan.

It also advertises on Star Plus, NDTV, etc.

Regional Channels like- Alfa, Sun, Surya, etc. depending upon the State

Language.

(b) Wall paintings: They also communicate to rural market through the wall

paintings in Haats. Urban consumers shop daily and have 365 opportunities a

year to switch brands while the rural purchasers who buy their goods in weekly

haats have only 54. Considering this Tata Salt makes ultimate use of this

opportunity to educate the customers about the product.

(c) Video on Wheels : Tata Salt uses van marketing to reach the satellite

villages.

Non-Conventional Media-

Kalnirnaya: Tata Salt advertises on Kalnirnay Calendars which are printed in 8

languages. Out of the 1.2 crores calendars issued, 50 lakh are sold in

Maharashtra. This advertising is a reminder to the consumer of the Brand- Tata

Salt which is in its Maturity stage.

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CASE STUDY III

COLGATE

Colgate Polmolive (India) Ltd.(CPIL), a wholly owned subsidiary of

Colgate Polmolive Company, US and a leading FMCG company in India is

engaged in oral care and personal care business.

CPIL incorporated in 1937 as a wholly-owned subsidiary of its US parent was

forced to offload 60% of its equity in compliance with FERA. But with policy

change allowing 100% FDI in industry the parent company has again hiked its

stake to 51% Oral Care Business CPIL market leader in (he oral care business in

India offers wide range scientifically proven oral care products (with multiple

benefits) i.e. toothpaste, toothpowders, and toothbrushes at various price points

under its flagship brand “Colgate”. The company dominates the Rs.1000 crore

Indian toothpaste market by commanding 50% of the market share.

The umbrella oraleare brand of the company ‘Colgate’ is a very popular name in

the Indian household and has a good brand loyalty. The company has launched

more variants apart from the flagship brand Colgate Dental Cream like Colgate

Herbal Toothpaste, Colgate Fresh Energy Gel and was well received in the

market backed by aggressive promotions like ‘Talk to Me’ campaign for ‘Colgate

Fresh Energy Gel’ The company also markets its tooth brushes under the

umbrella brand ‘Colgate’. The recent launch in this segment is Colgate Navigator

toothbrush. In June 2001, CPIL rolled out in India, Colgate Actibrush, an

imported battery-powered toothbrush at a price of Rs. 999, It will be available at

select outlets. Will) this launch, the toothbrush market of India is now

segmented into manual and battery operated. Personal Care Business CPIL

which owns world renowned personal care brand ‘Polmolive’ is also a significant

player in the Indian personal care business by its offering of an array of bath

soaps, liquid hand washers, Shave preps and Skin care products. The Palmolive

Shaving Cream is a Market leader in its segment.

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PALMOLIVE used mostly television and radio for the purpose of promotion lather

than cinema and print media. Because literacy level is low and frequency level of

audience in cinema theater is also low.

PALMOLIVE used other means of mass media such as hoardings, wall paintings,

posters, banners, gift schemes and jathras & melas for the purpose of

promotion.

PALMOLIVE also runs special campaigns during crop harvest and marketing

seasons. It is beneficial lo take up special campaign in rural areas in these

periods. Appropriate timing of these campaigns is more important since the

promotion should not only result in awareness but also in adoption and

purchases.

First a decision has to be made with regards to the product and then the brand

choice has to be made. In such cases personal selling and opinion leaders play a

major role. PALMOLIVE promotes their product through opinion leaders.

One of the important Promotion Strategies was to launch campaigns and

programmes mainly on the awareness & diseases caused due to bad teeth.

Colgate did it with Rs. 8 crore ‘Operation Jagruti’ -an awareness programme &

strong distribution network . Network of super stockist & rural stockist helped to

the reach over 55000 villages.

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CASE STUDY IV

CASPER

Tainwala has carved a niche in human hearts by providing protection and

comfort. The buzz of mosquitoes changes ZZZ of sleep as Tainwala switches on

a world of protection for you and your loved ones. That’s the power of CASPER –

world’s largest range of mosquito repellents which comprises of coil, mat. Liquid

Vaporiser and wide models of machines. Tainwala pioneered the concept of wet

wipes in India, by manufacturing Wet cleansing tissue in the brand name of

Fresh Ones. When its hot and humid, Fresh Ones cares by reviving sagging

feeling and flagging moods.

Tainwala also manufactures pre-injection swabs, wound cleansing tissues, germ

free tissues to wipe spectacles and many more special purpose tissues for

hospitals, pharmaceuticals, hotels, airlines etc. Tainwala has forged an alliance

with Samsonite Corp, USA, a world leader in luggage industry and is also

involved in making life more comfortable for people with jawan tuf top quality,

factories, warehouses etc.

COMMUNICATION STRATEGIES

They have also painted many PANWALA shops of Madhya Pradesh and Uttar

Pradesh with their CASPER mosquito coil brand. This gives them visibility for a

period of 6 months. Numerous number of people come to the shop and they

notice the advertising. This helps them encourage brand recall.

Their main means of promotion is advertising through Doordarshan. Their

television ads normally emphases on a good night sleep with your family. They

basically try and emotionally appeal the mothers, since they show a doting

mother in the ads.

They provide large amount of promotion through word of mouth by giving larger

margins to distributors and retailers, in the rural market the word of these people

makes an impact on the buying decision of the people in rural areas.

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Their aggressive advertising marketing include:

Advertising in local newspaper.

Stressing in trade related activities.

Making mosquito mats machine available at electronic shops, painting shops for

free gifts.

They carry out product distribution through vans and educate the rural markets

about anti-mosquito solutions.

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They also advertise in between various local events in the rural areas.

The use of local newspapers to advertise the product is widely used by many

companies. The various newspapers used by companies are

North:

Punjab Kesari, Amar Ujjala

East:

Anand Bazar Patrika, Dainik Jagran, Dainik Bartaman

South:

Enadu, Malayalam Manorama, Kumudum

West:

Loksatta, Tarun Bharat, Sakal, Sayakaleen, Shetkari(for farmers)

The company also use posters to a great extent in their promotions.

They also do a lot of advertising through stickers, danglers etc.

Also the companies use non-conventional sources of advetising like

Role-plays.

Wall paintings

Local bus back panels etc

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CONCLUSION

Growing at an annual rate of 4% the rural market introduces 1.2 million

consumers every year. Rural consumer is no more looked upon as the distant

cousin of the urban consumer by the Indian corporates and multinationals. The

rural customer has found his own place under the sun. More and more villages

are incorporated in the scheme of things as FMCG companies and MNC’s

scramble to woo the rural consumer.

As a result of the promotions drive launched by the agencies, most consumers

have become extremely brand conscious and loyal. No longer is every washing

powder Surf and every bathing soap Lux.

Promotions in rural areas need to be carried out very carefully as the people are

very brand loyal. It has been seen often enough that in one village only one

brand is prevelant. This is not due to lack of supply of other competing brands

but simply because the brand entered the market first. But the flip side of this is

that if one brand turned out to be faulty in one household, it would be boycotted

by the whole village.

Carrying out promotions in rural India is no mean task. As technology has not

been used extensively to cover this market, it is the knowledge base that is more

critical.

Rural people associate a brand image with what they think of themselves.

Therefore, using pictures of semi-nude women would amount to asking them to

not use the product at all. The rural communication strategy has to be very well

planned and implemented and the rural consumer’s sentiment has to be taken

into consideration while planning and executing the strategy.

Several other features need to be kept in mind for rural marketing. For one, the

rural consumer is extremely price conscious. For him, savings are critical and not

product usage. Consequently a discount would be more effective than an

No.of People

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increase in the size of the product. Which is why sachets achieve maximum

usage in rural areas.

There used to be a time when foreign companies and MNC’s would give this

market a pass thinking their ‘sophisticated’ products would not sell there.

Companies such as Reckitt and Coleman, P&G, domestic FMCG Tata tea, Titan

industries, pharma giants Ranbaxy and Glaxo and innumerable electronic

manufacturers like Videocon, Godrej, BPL, Samsung, LG and automobile majors

such as Ford, Toyota, Daewoo have suddenly discovered the hidden mass of

rural India. Most have launched brands suited to rural India and have gone

aggressive in their marketing and advertising strategies.

In the coming years, it may well be the rural consumer that accounts for most of

an organizations sale. With so much of activity in the rural sector, all one can say

is “the rural customer has arrived”.

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BIBLOGRAPHY

Books

� Advertising Management- B.S.Rathore.

� Marketing In India- S.Neelamegham

� Marketing Management- Ramaswamy & Nambhkumari

� Rural Marketing- Gopalaswamy

� Business World’s Marketing White book 2003-04

Magazines and Newspaper

� Business World

� Business India

Internet Sites

� www.indiatimes.com.

� www.coca-colaindia.com

� www.onlinequotes.com

� www.hll.com

� www.indiainfoline.com.

rural advertising

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