Data Tracker: Urban-rural divide

The split between urban and rural India is not a rigid divide today, but rather a continuum. Urban and rural residents hold many of the same values but express them in different ways, according to Hemant Mehta, senior vice-president, Kantar IMRB, in the recently released report 'BrandZ Top 50 Most Valued Indian Brands'. The report lists five action points for brands to gain greater access to rural markets and shows how some brands have bridged the divide

The five rules for brands targeting rural consumers are:

1. Reject old assumptions: Rural consumers don't necessarily want cheaper or simpler versions of products. Often rural consumers want the same products that urban consumers enjoy

 

Make the brand relevant: In contrast to the urban segment, where consumers make more discretionary purchases, rural consumers are more likely to spend money on products and services that improve their lives in fundamental ways

Tell the story efficiently: In the past, marketers assumed that rural consumers could not absorb an advertising message unless it contained a lot of explanation. A detergent might take an educational approach, with step-by-step instructions on how the washing process produced a crisp, clean shirt. Today's rural consumer is more sophisticated

Be patient: Success ultimately may be worth the wait, but it will require patience. Brands must take the time to build the insight required to win over rural audiences

Be committed: Consumers will respect an entrepreneurial brand that gains profit for itself; but they are more likely to love the brand if it also invests in the greater good to help lift the nation.

• Several brands have worked around obstacles to be successfully accepted by non-urban consumers

1. Reuters launched Reuters Market Light, in the agri technology space for rural users
2. Hindustan Unilever's free Kan Kajura Tesan, works via a simple missed-call function that triggers a flow of free entertainment on even the most basic mobile phone