1.12.rural branding

8/13/2019 1.12.Rural Branding

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Rural Branding


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Product Branding in Rural India

Recent phenomenon Due to increased awareness & affordability of

brandsColours

Numbers

Visuals

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Importance of Retailer & First moveradvantage in Rural Brand Building

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Building Brands in Rural Markets

Developing a brand nameFor easy brand recall

Colour, visual or numeric association

Bhumiputra , Sarpanch Tractors

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Creating a brand identityRelate brand to rural lifestyle, appropriate statussymbol, or rural environment

Tata Shaktee strength, durabilityBritania Tiger smart, active child

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Building a brand imageEmote, empathize, talk to customer

Brand connect with rural customer

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Brand Loyalty vs Brand Stickiness

Less inclined to change brands Comfortable with tried and

tested brandsEducate

Interactive communication

Live demonstration confidence LIC Jeevan Bima Gram

village adoption

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Early mover advantage Takes time to discover the core benefits of a

product Mahindra village, Escorts village Word-of-mouth satisfied progressive farmer

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Brand stickiness low in low involvementproducts soap & toothpaste

High in chawanprash, skin creams, hair oil,shaving cream

Understand preferences of different segments not a pan India approach

Emotional connect (tea with spices)

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Fake Brands

Major issue Bonds for Ponds

Fair & Lonely

for Fair & Lovely Likeboy for Life buoy Increased awareness Demand for brands not met distribution Gap filled by spurious brands

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The Fakes Market

Look - alikes Colour scheme same, different name Overall appearance same Shagun for Lifebuoy Lalita Amla for Dabur AmlaSpell alikes Package colour & design similar Names cleverly mis-spelt Paracute for Parachute, Fare & Lovely for Fair & LovelyDuplicates Exact replica

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Comparison of categories of FakesFeature Duplicate Spell-alikes Look-alikes

Brand name Original Mis-spelt Different

Pack appearance Replica Identical Similar

Manufacturersaddress

Original Incomplete Own name

Price MRP 40% less 10-15% less

Margins 200 300% 100-150% 60-70%

Quality Very poor Poor Reasonable

Intent To cheat To mislead To freeloadConsumer mindset Unaware Unaware Want cheap

product

Identify None Only literates Majority

Offer None Discounts Schemes 13


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Strategies to counter fakes

Legal action negative publicity Action against manufacturers Upgrade packaging, difficult to replicate

Dabur premium 4-colour shrink sleeve pack,grainy texture, water bubbles

Coco Cola sales force relationship with

retailers Deeper penetration, regular availability,

retailer relationships, educate about harm

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Packaging for Rural Markets

Packaging associated withAffordability

Recognition ( visability, readability)

User convenience

Appeal of product Primary level protecting product Secondary level Aesthetics & sales appeal

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Problems in Rural Marketing to beaddressed by Packaging

Poor transport system poor road condition Difficulties in safe storage danger from

vermin, moisture, heat, rainwater Poor facilities power supply, poor cold

storage facilities for food products Important factors for consideration packing

material, pack size & convenience, packagingaesthetics

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Packaging Material

Tetra PakAseptic food preservation methods allow processedfood to keep for long periods of time

without preservatives, as long as they are not opened.The aseptic packages are typically a mixof paper (70%), polyethylene (LDPE) (24%),and aluminium (6%), with a tight polyethylene insidelayer.

Together the materials form a tight seal againstmicrobiological organisms, contaminants, anddegradation, eliminating the need for refrigeration.

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Plastics in packaging

Parle Frooti 65 ml @ Rs 3.50 Sona Beedi Zip plastic pouches

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Pack Size & Convenience Daily wage earners CavinKare Chik shampoo 1983 Re 1 for 20 ml HUL Lifebuoy Rs 2 for 50 gm pack Coco Cola Sunfill pack Re 1; affordable, cooling issue Godrej Rs 4 to 5 Cintol, Fair Glow, Godrej No.1 Nestle Maggi Masala-ae-Magic, Magic Rasile Chow (Rs 2 &4) Glaxo SmithKline Horlicks Asha 500 gms pouch Rs 85. Tiger biscuits transparent packs

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Convenience

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Packaging Aesthetics

Bright colours Lifebuoy Lal saboon

Tiger biscuits

image of a tiger Distinct lettering, local language Image, symbols convey products benefits

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Texla TV with coloured cabinets

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Product Warranty & After Sales Service High value durable products Polar fans seven year warranty Hassle-free maintenance, low cost repairs Easy availability of spares & accessories Local service centers Tractor service camps in large villages, small towns along with component

companies (tyres, battery, fuel injection) advance invitation free check up.Training.

Mobile service vans Airtel 25,000 service centres, SMS based self service, call centers Exide local ustad Jai Kisan replacement battery

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New Product Development in RuralMarkets

Segmented market Chosen target customer groups

Identified needs Determined market positioning Develop & launch appropriate new product

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Stages in Rural Product DevelopmentProcess

Idea generation immersion in rural markets -understand consumer life-style and behaviour patterns

Concept testing to be done in different regions for fit

Product development

reverse innovation or frugalengineering maximizing value to customer, whileminimizing non-essential cost. Not a stripped downversion, but specially designed.

Market testing in different regions, socio-economic,physical conditions

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Innovative Products for Rural Markets

H

TATASwatch

Waterless ToiletsGodrej ChottuKool

HUL Pureit

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1.12.rural branding

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