Rural Branding

Product Branding in Rural India

Recent phenomenon Due to increased awareness & affordability of brands Colours Numbers Visuals
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Importance of Retailer & First mover advantage in Rural Brand Building

Building Brands in Rural Markets

Developing a brand name
For easy brand recall Colour, visual or numeric association

Bhumiputra , Sarpanch Tractors

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 Creating a brand identity

Relate brand to rural lifestyle, appropriate status symbol, or rural environment Tata Shaktee strength, durability Britania Tiger smart, active child

 Building a brand image

Emote, empathize, talk to customer Brand connect with rural customer

Brand Loyalty vs Brand Stickiness

Less inclined to change brands Comfortable with tried and tested brands
Educate 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

 Brand stickiness low in low involvement products 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)

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 Amla Spell alikes Package colour & design similar Names cleverly mis-spelt Paracute for Parachute, Fare & Lovely for Fair & Lovely Duplicates Exact replica
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Comparison of categories of Fakes

Feature Duplicate Spell-alikes Look-alikes

Brand name
Pack appearance Manufacturers address Price

Original
Replica Original MRP

Mis-spelt
Identical Incomplete 40% less

Different
Similar Own name 10-15% less

Margins
Quality Intent

200 300%
Very poor To cheat

100-150%
Poor To mislead Unaware Only literates Discounts

60-70%
Reasonable To freeload Want cheap product Majority Schemes
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Consumer mindset Unaware Identify Offer None None

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 with
Affordability 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 be addressed 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, packaging aesthetics
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Packaging Material
Tetra Pak
Aseptic food preservation methods allow processed food to keep for long periods of time without preservatives, as long as they are not opened. The aseptic packages are typically a mix of paper (70%), polyethylene (LDPE) (24%), and aluminium (6%), with a tight polyethylene inside layer. Together the materials form a tight seal against microbiological organisms, contaminants, and degradation, 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 Rural Markets

Segmented market Chosen target customer groups Identified needs Determined market positioning Develop & launch appropriate new product

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Stages in Rural Product Development Process

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 frugal engineering maximizing value to customer, while minimizing non-essential cost. Not a stripped down version, but specially designed. Market testing in different regions, socio-economic, physical conditions

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Innovative Products for Rural Markets

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HUL Pureit TATASwatch

Godrej ChottuKool
Waterless Toilets
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