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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