Eggless Golden Geese

I recently read an article about how marketers love to focus on urban India and ignore the immense opportunities that lie "at the bottom of the pyramid". Rural India is unexplored territory which marketers are yet to understand and reap benefits from. There have been a few winners like Coca Cola and Hindustan Unilever (the latter being the undisputed king of rural marketing in India).

But I think what inhibits most marketers from engaging in "rural marketing" is the name itself. I'm currently reading a book by the same name - "The Rural Marketing Book". Why call it "rural marketing" ? Yes, there are differences between marketing in "urban areas".... "tier 1,2" etc... and "rural" areas. But can't we find aspirations which are common in Warden Road and Wadakancheri? I'd courageously imagine that if you went ahead and did a recall test, you'd most probably find that "Thanda matlab Coca Cola" would find a full blown nasal "aaaahhh" more easily in Wadakancheri rather than in Warden Road.

Wadakancheri is a typical South Indian village-town in Thrissur, that has cable television, internet browsing centers and more number of electricity hours during the day than most of Bombay. Its located in a state where 99% of the population has had high school education. Most of its residents have sons/daughters/husbands who are making big money in the Gulf countries. Many own large agricultural properties and are in the business of cash crops (and I literally mean "Cash" crops) like pepper, cardamom, rubber and exotic spices that this region is known for. Move up north and you have "rural consumers" who own acres of tea and coffee estates. People here have a distinct taste for 'western movies'. The internet browsing centre is buzzing with gamers and orkut-addicts.

There are so many other El Dorados hidden away by the prejudiced fog that marketers have created with the term "rural marketing".

The RK Swamy BBDO Guide to Market Planning 2008 is one of those HUGE books that marketing people and perhaps media planners like to showcase on their shelves and make themselves feel smart. I've never been able to give a single volume more than 45 minutes of reading without turning blue. But the book makes for easier reading as compared to other encyclopedias of statistics, graphs and indices. This book classifies districts as AAA, AA, A, B, C, D on the basis of Market Potential Value, which is proportional to population.

It's interesting to find that the MPV of all B and A districts are 6813 and 6383 respectively. All AAA districts and AA districts have just 2920 and 3905, even though their per capita purchasing power may be higher.

Great place to bring in the old 80:20 rule. The untapped 80 in rural India is waiting for marketers. If you find them early, you can keep them when they go to the cities and are exposed to a plethora of marketing. Consumer goods, durables, entertainment, telecommunications... the list is endless. Marketers who work on volumes should take a serious look at this potential.

Makes you think... arre what man!

It's amazing that we overlook the 'fatted oxen' of rural India while chasing the 'eggless golden geese' of the 'urban markets'.