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Prof.Atul Tandan/MICA

Rural Marketing,

Communication and

Advertising

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The Rural Rush:

Rural India accounts for over 50 percent of

Indias GDP

8% plus growth in 2005-06 Three-fifths of rural India derives income

from services and industry

Communication done through Wallpaintings, Folk dances, Mythology and

Kumbh Mela

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The Rural-Retail Saga

Reliance is in the process of

Identifying 1600 Rural Business

Hubs (RBH)

Sunil Mittals Bharti has organized

farmers in Punjab to grow high

products that are then graded, sorted

cold stored and shipped

for exports

ITC has been using e-Chaupal

to reduce middlemen,

increase rural procurement,

Create price transparency,

Cut trading margins and

Directly converse with farmers

Mahindra Finance has beenquietly pushing loans

throughout upcountry with

great success

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The money makers

HLL in 2005

Revenue of 5000 crore from rural markets

50% of total sales turnover LG in 2005

55% of total turnover from rural and semi-

urban markets

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The growing figures

Industry analysts have predicted that by

2010-11, the urban households are

projected to grow by 4% while ruralhouseholds are expected to grow by 11%.

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Causes for Growth:

The rise in disposable income of the rural

families

The economic boom Timely rains

Rural population involved in occupations

other than agriculture Women empowerment

Improving infrastructure

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Increase white-collar jobs in nearby towns

Commercialization of agriculture

Saturation of the urban markets

Media penetration in rural areas

(particularly satellite channels)

Globalization

Economic liberalization

Revolution in the Information Technology

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Communication matters

because. Godrej hair dye is used by the rural

consumers for applying on their buffaloesto make them look immaculate black

People in the state of Bihar feed the cattlewith Horlicks as a health drink to fattenthem!

In Punjab use washing machines not forwashing clothes but to make frothy lassi inhuge quantities!

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Animals are rubbed with Iodex on their

skins to relieve them from muscular pains

after a days hard work.

Paints meant for houses are used on the

horns of cattle for easy identification and

theft prevention!

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How do we talk to our consumers..

It is not enough simply to place our brand in front

of consumers and talk about ourselves.

We have to involve them in the communications:

give them an involving and engaging message

when and where they are most receptive to it

We have to make unique emotional

connections

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When and where can we meet ourconsumers

Unique Product

Displays

Unique Product

Displays

ConsumersConsumers

RadioRadio

On-packOn-pack

SponsorshipsSponsorships

PrintPrint

In-StoreSignageIn-StoreSignage

Partnering with

Retail Equities

Partnering with

Retail Equities

Retail Database

Targeting

Retail Database

Targeting

Sampling

Events

Sampling

Events

PRPR

TVTV

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Are We Effectively Reaching

Consumers

Difficulty in reaching our target consumers

through traditional media

Urban

Increased fragmentation of TV channels High clutter in advertising (Advertising

spends for 03 estimated at Rs. 94 bln -

increased by 50 % over the last 5 years)

Rural

Reach through traditional channels limited

(65% of Rural India is still media dark)

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Same Old Marketing or Time for a Behaviour

Change...

In a communications environment

where everyone is shouting to be

heard, we have two choices

3600 Marketing is about marketing differently3600 Marketing is about marketing differently

Shout louder

Money / Impact

Shout louder

Money / Impact

Behave differently

Local / Insight

Behave differently

Local / Insight

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Lifebuoy Swasthya ChetnaL

ifebuoy Swasthya ChetnaL

ifebuoy Swasthya ChetnaL

ifebuoy Swasthya Chetna

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The Audience

Primary

School going children, aged 5 to 13 years

studying in primary and middle schools

Secondary Parents (CWE and his wife) who are

infrequent user of soap

Key Influencers : RMP, Teachers &Retailers

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360*

Communication

PC

PR

Design

Direct

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Design

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Advertising

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Public Relation

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Promotional campaigns

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Direct Marketing

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RASOI GHAR

Behavior Change Marketing

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LPG Marketing Challenge

Rural penetration is only 15%, mainly among

R1&R2 HHs. Entire BoP segment is non-users

MART research showed that non-users are

aware about benefits of LPG, 57% of them believed that it is convenient to cook on

LPG

63% felt that LPG is a clean fuel (no smoke while

cooking),

69% were of the opinion that food cooks faster

50% said that for making of tea for unscheduled

arrival of guests LPG is very handy.

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Process Followed by MART

Research

Strategy

Scale Up

Pilots

Qualitative and Quantitative in 8 States

Awareness, Availability, Affordability and Acceptance

One district each In 3 Representative States

Strategy & Implementation

1

2

3

4

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Marketing Issues

Research Identified the following

marketing issues among non users

Awareness

Extremely low awareness about actual cost of

connection and refill (20%), most believed it cost

Rs 2,000 or more

Availability

Not available close to home (61%)

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Marketing Issues

Affordability

High connection cost of Rs 1600 (73%)

High recurring cost for refill @ Rs. 270 is a barrier

(51%) Options for cooking at low cost/zero cost e.g.

firewood (93%), dung cake (27%)

Acceptance

Cases of Cylinder burst

Gas leakage fire hazard (52%)

Cooking on gas leads to gas in stomach.

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Awareness: Solution

Suggested Participate in Haats Reminder through wall paintings at Haat

boundary walls, bus stands

Safety clinics during SHG meetings.

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Availability: Solution Created

Open extension counters in larger villages

(5k 10k population villages).

Use HPCLs Petrol Pump outlet network in

semi urban locations, highways/arterialroads for distributing LPG

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Affordability: Solution Created

Introduction of 5 Kg cylinder

Initial connection cost Rs 850 (Rs 1600)

Refill @ Rs 95 (Rs 270)

Finance

Chit-fund scheme introduced with SHG members who

contribute Rs 100 per month

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Objectives of Pilot

How to influence poor women to move

away from traditional cooking methods.

To make women experience the benefitsof LPG

(Clean, Convenient and Safe)

Dispel myths associated with LPG

RASOI GHAR concept was conceived to meet the objective

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Rasoi Ghar: The Model

Rasoi Ghar is a community Kitchen set up in 25k villages where women come to cook. SANJHA CHULHA

Local Panchayat contributes a room (10 x 10 orbigger) for the kitchen

HPCL contributes cooking stoves, LPGcylinders, utensils, cooking counter and water

(Rs 8000)

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How it works

An SHG member appointed as caretaker

Women bring basic materials and pay (Rs2/- per half hour) for using gas and takeaway cooked food home

Caretaker collects money, orders refills,keeps premises clean

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Outcome

Non users experienced the advantages of

clean, convenient, safe and non-polluting

LPG without having to buy a connection

Once they are satisfied, many decide to

buy individual connections subsequently

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Formal Evaluation

NCAER evaluated the Rasoi Ghar

initiative in UP

Acceptance of Rasoi Ghar by the people is

quite high (82 %)

85% users use Rasoi Ghar twice a day

6 % of the drop outs have opted for individual

connections Among the Users, 20% are intending to install

individual LPG connection in near future

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NCAER Evaluation

Marginal increase in expenditure on fuel (Rs

0.52 per day), but time saving on collecting

traditional fuel and cooking is 1 hours per

day. Saved time is utilized in productive activities,

better child care, domestic chores and

increased leisure time

Rasoi Ghar established by SHG members are

generally more successful and sustainable

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Current Status

589 Rasoi Ghars opened in 4 districts of

UP

Varanasi 84

Hamirpur 104

Sultanpur 239

Jaunpur 162

Total 589

Another 720 planned in the next 6 months

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Way Ahead

Encouraged by the success, Ministry of

Petroleum has put together a proposal to

open 80,000 Rasoi Ghars across the

country

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Successful Mantra in Rural

Bu

siness Mind,Social Heart

Thank You

rural iima

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