Traditionally Rural India has not been a happy hunting ground for cos in this segment since the usage frequency of FMCG product categories is low in these parts. To overcome this, HUL has innovated strategies aimed at making their brands more ‘experiential' in nature. It has put this into action by carrying out live demonstrations of its brands. Part of the strategy also is an innovative campaign called ‘Khushiyon Ki Doli‘(KKD), launched in March this year in three states: Uttar Pradesh, Andhra Pradesh and Maharashtra. KKD is a multi-brand rural engagement module which introduces personal care and home care products by HUL – Wheel, Surf Excel, Fair & Lovely, Sunsilk, Vim, Lifebuoy and Close Up. KKD is a street play about hygiene benefits and improved quality of life which is intertwined with the TVC of the HUL products. In addition, there are quizzes and games which enhance consumer engagement. Earlier, HUL had built a strong distribution model through its much popular campaign Project Shakti . Godrej Consumer Products also came up with an initiative called ’Project Dharti’ through which it plans to strengthen its position in Rural India.
Recently, Nestle tried to endear itself to the rural masses by venturing into Infant Milk-based Nutrition with its low-priced packs. Also in the offing are its plans to offer noodles, ketchups, chocolates and beverages at affordable prices to the rural population. For low income consumers, Nestle sells its Maggi Noodles at INR 4 and Maggi seasoning at INR 2. Coca Cola powder-based beverage Vintingo is sold at INR 2.5 per sachet across villages in Orissa. Companies like GlaxoSmithKline and Britannia are not far behind with plans to develop innovative products meeting the needs of rural shoppers in India.
Recent facts IQ stumbled upon are astonishing. Who would have known that Godrej No.1 is the highest selling Grade 1 soap and undisputed leader in the north India? More surprisingly, relatively lesser known biscuit brand PriyaGold, which has not managed to catch the attention of the urban masses, has a strong market in northern and central India and earns around USD 85 million (approx.USD 3.77 billion) annually in sales!
However it is quite a task to win over the rural masses. In fact, catering to rural consumers is comparatively more difficult than urban consumers as the former seek quality brands at affordable prices. Also, owing to the impact of television in the rural parts the aspiration levels of the rural consumers have risen. Today, the average Rural Indian wants to use the same products stars are shown using on television, and this has made the task of the FMCG companies tougher. However, one of the keys to success in the rural market is to ‘Customize and Communicate’. The companies that do well in these two aspects will ultimately stand a good chance to unearth the fortune at the bottom of the pyramid.
NOTE:
- Project Shakti is a rural development programme through which HUL established factories-centred activities focussing on farmer training, animal husbandry, generation of alternative income, health hygiene and infrastructure development.
- The soaps ranking are the highest rating of the Bureau of Indian Standards based on the fat content; toilet soaps have a higher fat content than bathing bars.
