Rural Mela Is One Of The Best Congregations In Rural India For Targeting Rural People Cost Effectively

When we hear the word Mela, we are often plagued with the images of villagers naively concentrating their resources on games and food while a group of dancers magically attain synchronization in the crowd. Our vision on the subject is obstructed due to the portrayal of same in Hindi cinema but the fact is that this stereotyping is blinding rural marketing agencies.
In 2016, Fairs or melas organized in rural areas or small towns have a different aspect to their marketing opportunity. In the last few years, India saw brands such as Colgate, Dabur and Vodafone leading the way into mela marketing through Kumbh Melas and other big names like Sonpur mela, Navchandi mela etc.
They are no longer attributed to Hindu festivals but to an advertising alternative to target audiences in rural markets and small towns. We can safely say that if there is any rural equivalent of “mall activities” which has been chosen by several giants, it is rural Mela.
Similarities between the two can baffle you at once;-

• Availability of ideal crowd looking to have a good time.
• No rush as people visit both only with time to spare on their hands.
• Active participation from the crowd and ease in getting response.
• Buying behavior predictable.

If you equate both with the assistance of a catalyst for rural conversion, you get the same results.


What can this catalyst be?
In the most basic sense, the attitude and perspective of a rural marketing agency can act as the catalyst and assist in devising a successful marketing campaign in a mela .There are certain difference between rural areas and urban areas that need to be considered before exporting of this alternative into villages and rural areas. The feel of familiarity is one of the most challenging one to achieve in this transformation, villagers are attracted towards brands that seem highly functional and have a slight western influence but at the same time, they need the sense of association to trust the marketing agency.
For example, while in metro cities, a well-dressed individual with good spoken English and sarcasm might generate better reaction from the audience but in villages, the same is replaced by rhymes, loudspeakers and colorful settings. It is more about going big and extravagant in rural parlance; low driven efforts are not known to create the impact which is needed.
A rural marketer has to comprehend the preferences of his rural counterpart and serve their needs in a way they would most desire.



What are the benefits of Mela marketing?
Mela organized in rural areas are one of the best congregations for targeting audience from rural areas and small towns, here is why:-

• Brand visibility and exposure
  Thousands of people belonging to diverse groups attend these melas; the advantage does not lie solely in numbers but in variety. Generally, all age groups and social economic status categories visit them. This provides brands visibility and exposure in circles they covet.

• Higher chances of conversion
  People visiting these melas are relaxed and their buying walls are down, that simply means that they can be convinced more easily compared to interactive activities where they are invited on regular working days. Researches show that 73% of the visitors ended up making unplanned purchases in melas.

• Cost Effective
  Given the benefits that brands can derive by the use of melas as a marketing opportunity, it seems to be providing return on investment. Expenses are minimal when this alternative is chosen as the creation of aura and environment is not the rural marketing agency’s responsibility. The brand gets a readymade platform.

ROI of Rural Marketing Campaign to Justify Marketing Budgets

Companies spend a sum ranging from 7% to 11% of their revenue annually on marketing efforts and while this might seem like a decent amount to some while others would call this risky.
Why is this so?
The reasoning behind this argument can be the conventional approach taken whereas this expense is considered as a charge on profit rather than an investment made in order to gain future benefits. Traditionally, the emphasis used to be on the tangibility of the paybacks which were considered near to impossible to prove for the outlay required for rural marketing.
This lead to the issue of rationalization of the investment so made, how to justify the increasing pile of funds an organization allocates in the name of rural marketing, promotion, and advertising.

How to justify rural marketing budgets?

The answer can be summarized in three golden words:-

Return on Investment (ROI)

Return on Investment or ROI as it is commonly known is a profitability ratio which can be calculated using different approaches and formulas. It is a mathematical yardstick to measure the benefits reaped from the investment made in rural marketing. The rationale behind the inclusion of numbers is to provide a clear and precise result to people who are otherwise unable to read between the lines.
For the uninitiated, let us take an example pertaining to our daily life where you are approached by two different salesmen selling their schemes.

• Mr. XYZ comes to you and offers you an opportunity to invest Rs.5, 000/- in his scheme, if you do invest, he promises that you will see a return of 8% within the next six months.
• Mr. ABC comes to you and offers you a unique opportunity to invest Rs.5, 000/- in his new company but he cannot promise you a percentage of return. The return is designed based on the future growth of the company which is difficult for you to assess.

What would you do?

Even when the amount is less, we would prefer to be assured on what returns it is yielding us, without which our desire seems to fade away.
Now, imagine the perplexity of top management or finance officer when they are asked to approve up to 8% of their revenue on rural marketing. This is exactly why there is a pressure on marketers to justify the requirement for these funds but the trouble sets in where the calculation becomes a big puzzle.

Why is calculating ROI important?

• In order to satisfy the doubts that may surface in management’s mind over the improbable returns of marketing campaigns and prove their success.
• The rural marketing agency should incorporate performance parameters such as ROI in order to communicate its worth to the clients.
• Management of the organization is not necessarily trained to identify and calculate such indicators and therefore ROI assists them in taking better decisions.
• Plays a significant role in placing reassurance in the services of the rural marketing agency.

How to calculate ROI?

Even though it is incredibly difficult to establish a direct connection to the expense made and benefits received by the company. Even when indirect links are being built, there remains suspicion of involvement of other external factors. However, parameters can be trusted to give a near accurate replica of the actual results to play to the vanity of financial inclusion.

Few ways to calculate the ROI:-

• Sales Approach
  ROI = (Increase in growth- Marketing Cost) / Marketing Cost
• Gross Profit Approach
  ROI= (Gross Profit- Marketing Cost)/ Marketing Cost
• Profit approach
  ROI= (Gross Profit- Incremental Expenses)/ Marketing Cost
• Customer Approach
  ROI= (Customer Value – Marketing Cost)/ Marketing Cost
• Incoming Leads Approach
  ROI= (Increase in leads- Marketing Cost)/ Marketing Cost

Haats Can Be Used As Effective Touch Points In Rural Areas

What is a Haat Market?

The flea markets people so often enjoy in urban areas these days were adopted from their rural counterpart and famous cousin- Haat. These are markets organized on a regular basis in rural areas and small towns where people from village and nearby places put up temporary shops to sell their produce. Haats have not lost their charm and still attract a lot of crowd in the rural areas, in fact, it has only grown in size and volume. More buyers are making their way to these transient markets and sellers depend on them for their needs.



The Ulterior Use of Haats

When you read the above passage, you picture a lively space with lots of carts and sellers showcasing their products in a humble background. People roaming around with shopping bags in their hands while children enjoy the occasional snack.
Yes, a haat is a lot like a modern day flea market in the mall organized in a city.
But, there is something you should be able to see that goes beyond the obvious colors in the palette. Ask rural marketing agency, you should see potential for a touch point.
Some features of this market that are noteworthy:-

• Large assembly of potential customers
  Since the haat is an age old happening, which ensures a large number of visitors that come to the market. This crowd gives opportunity for marketing of the product and provides necessary coverage to the brand.
  The haat serves various products like vegetables, spices, cleaning products etc. and therefore increasing the prospect of the brand to blend in the market technically while still standing out in presentation.

• Input and output
  The haat has a lot of attractions but the most prominent one are the products, people come with the mindset to buy in these markets. This state of mind makes them more perceptive and open to being participating in interactive activities or promotional events. Many of these customers are eager to have their problems as well as their feedback recorded which can be a way to engage and introduce them to the brand.

• The right frequency
  Haats are not a permanent establishment, rather they are a weekly one. This gives them the perfect amount of coverage, not too much and not too less. This is not a forceful repetition but at the same time it gives enough element of recall to the brand.

• Low cost and higher benefits
  Haats are planned without considering the advertising spaces and marketing opportunities it provides, this means that when approached the same would be available for a lesser amount than other spaces with the same crowd and coverage.

What does this mean?

A simple read of the above reminds you of every feature you look for in a counter to approach and interact with potential customers and hence Haats prove to be an effective one. Even though this is a new way of looking it, it surely is a refreshing way to look at touch points in rural areas.

Conceptual Marketing Campaign Works In For Long Lasting Imprints In Consumer Mind

Any great campaign starts with a raw idea that needs transformation that comes from curation done by experienced and creative hands. In order to create magic to mesmerize and capture the interests of the customers, innovative and distinctive ideas are needed but is that all? Does a single idea has the potential to create a brand and build a lasting impression?
The truth is, a good idea is like a good seed, even though it has the potential of growing into a big tree that provides shade, it needs help getting there. It needs someone to sow it in the field and provide it with water and care. Similarly, a great idea can only provide benefits if it has caretakers, a team to simplify it and create a conceptualized representation.



What is conceptualization?

Technically, it is the process of development and clarification of concepts. In regards to marketing campaigns, it can be understood as a process of creating an idea and working towards incorporation of the same in a campaign. Features forming steps that can help understand the process of conceptualization are as follows:-

• Stating the marketing goals for the product or the brand
• Understanding the target audience, its needs and preferences
• Comprehending geographical and regional differences
• Matching the use and needs to find the link between the two
• Listing out the requirements
• Drafting a strategy to accomplish the said goals
• Taking assistance from past experiences ,examples and market trends
• Consideration of cost and social benefit

The theory of conceptualization is an adamant supporter of development of a concept which is an abstract idea. Instead of going head on into it, it begs the use of a more effective way of designing a campaign. It is distinct and unique to every single campaign. It can be utilized as a special purpose framework intended to result in the fulfillment of the marketing objectives of the company. Benefits of conceptualization reaches deeper than the surface and are seen as essential when it comes to being creative.

Why conceptualize?

Effectiveness and efficiency are qualities that need no advocacy or explanation but those are not the only reasons marketers are attracted towards it. It is because even though the process is long and road rocky, it gives the competitive edge the brand craves. We all keep talking about how important marketing is but how would you stand out when there are thousands other who agree with the same point?


That is where Conceptualization comes to focus as it helps to create a campaign that is not only based on a powerful idea that appeals to the masses but also executed in the correct way. For example, use of Swachh Bharat Abhiyan to market cleaning products- every other cleaning product will tell you that it removes all stains and gives shine etc. but we have all heard that so we don’t bother but when they start with telling us the importance of cleanliness in our schools, streets and country as a whole, we listen.Why?
Is it that “Daag achhe hote hai?” No, it is because we have never seen the link between a central government project and a cleaning product.
When you base your campaign on an idea instead of basic instincts of revenue maximization, it creates a more lasting impression on the target consumer. Everyone is aiming to fit their needs but is that enough to last the elimination round and thinning of the herd?
No, for that your campaigns needs to break barriers of communication and reach out to the sensibilities of the customers that do more than satisfy their needs. Conceptualization of marketing campaigns is the best way to leave lasting imprints on the customers and the most effective way to do so.

How to justify investments in rural marketing campaigns?

Rural marketing agencies have found surprisingly innovative ways to promote the product and build a brand under the pressure of unpredictable audiences and crowd of similar or competitive products. However, they still face the challenge of finding an indicator that can pen down the impact of their efforts perfectly to lower down the weight on their shoulders. Even though they try to convey the same using cost per lead, new contact rate, open and conversion rates, sales revenue etc., none of the above can satisfy the client’s curiosity. This challenge intensifies in rural areas due to the fact that products belong to lower prize horizon and client’s motive is fast money.

Why is it difficult to justify investment made in devising and implementing a rural marketing campaign?
There is no way to establish a direct link between the campaign and any financial gain accrued from it. A situation where you can see prompt results and profit is rare, so rare that depending on it to surface is not the smartest option. The emphasis on rural marketing has increased over time and organizations are readily accepting to bear expenses with the hopes of better results but at the same time, their interest in higher investment indicates their desire for better results. Unfortunately, no direct method has been devised to calculate the impact of this proportion.
In such a scenario, the rural marketing agencies best bet is to place their trust in justifying the investment through demonstrating operational efficiency while being effective.

Infrastructure
A total of 97,000 crorerupees are scheduled to be spent on construction of roads under PMGSY scheme, majority of which are to connect rural areas.

How can this be achieved?
To provide services at the closest price to the fairly equated one. In the simplest words possible, it means doing what should be rightfully done, for market price or less. For the purposes of clarification, let us state that operating efficiency is not a practical synonym to cost reduction or even cost appraisal for that matter. It merely means attempting to find a way to accommodate the requirements of the campaign in the budget desired by the clients. The scope of the concept is broader than it appears as it invites the age old conflict between effectiveness and efficiency into focus.
Many contradictory views appear demanding the abolition of such reliance on efficiency, one such comes from Isaac Wyatt who believes;
“Effectiveness is the goal. Efficiency by itself isn’t the goal, and in fact, many Marketing Operations groups focus on being efficient, and they are, but at the wrong things. By lacking systemic ways to measure effectiveness, efficiency is used as a proxy indicator.”
The trouble is that while efficiency pushes the right way, effectiveness pushes the right thing which leaves them at loggerheads.
However, a more radical approach shows that there is no way of achieving efficiency without the inclusion of effectiveness. The perfect balance is considered doing the right thing in the right way. Even though finding a suitable way that fits the bill seems impossible, patience and innovation can guide the way. The secret is to pick up the best from both the approaches, this way you can avoid a low productive situation which might be called efficient due to lower investment and promote higher productivity at reasonable costs.
It is all about the mix, leaving one or both approaches behind may cost your business and your brand, carrying them forward will help both grow immensely.

Lines are blurring in Urban and Rural Markets

The start of a new government usually indicates beginning of new policies and paves the way for better agendas and economic reforms. This year the focus has been on reforming rural India and provide it the resources it requires to grow at the same pace as the urban areas. The same was done by selecting critical areas and framing policies to counter the problems faced by them. Such as:-

• Better irrigation facilities for 28.5 lakh hectare land under Pradhan Mantri Krishi Sichai Yojna
• Development of roads through allocation of Rs.1 lakh crore budget for the same
• Allocation of Rs.5500 crore to PM Fasal Bima Yojna in order to ensure fair insurance for the farmers
• Efforts towards 100 percent electrification of the villages
• Introduction on e-marketing platform for agricultural products

More such policies have been dedicated to the development of rural sector in order to help it cope with an inflation decelerating at a rate that is 40 % lower to that of urban areas. All these efforts are showing positive results and rural India is growing, which empowers its citizens.

The Impact of This Change

Rural India might be growing at a slow rate but the rural audience have been changing rapidly in terms of their behavior and purchasing habits. With the connectivity between rural and urban area strengthening, a shift of cultures is noticeable. Certain factors such as:-

• Improvement in purchasing power
• Increase in literacy and standard of living
• Availability of products
• Influence of urban art, music and literature

The best way to understand this is comprehending the entertainment habits of rural and urban people of today. We all are watching the same channels that are mostly airing the same content and advertisements. This means that rural audiences are being sold the same idea of happiness as urban audiences, the notion of comfort does not come with a “city tag” anymore. This effect is compounded with the economic growth and impacts the perception of needs that rural India holds dear to their heart. People want their kids to be educated, have access to internet, eat good food and achieve their dreams. Dreams are built based on what you covet and that comes from what you see and cannot have which is the success they see on television. The concept of freedom, money and fame is widespread and television has a big role to play in it.
Now that the most of the villages and small towns of India are finally growing with respectable per capita income and increased purchasing power of the individuals, people have money to pursue their dreams and fulfil their desires. They are taking the same road as the urban areas once took to reach where the big cities are right now.

The differentiation between urban and rural, myth and reality?

Rural India is growing, yes but at the same time urban India is growing too and therefore it is impractical to believe that their destinies can be conjoined in such a short duration of time. Similarly, even though they are not similar, this growth is bringing them closer to one another.
The virtual lines of disparity between rural and urban areas darkened by years of urbanization, modernization and industrialization are finally starting to blur due to development and growth of rural markets. Surely, there are still differences and they might exist in the future as well but the process of making these differences less significant has started.

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Dhaba on Highway is a Great Medium of Marketing

What is a Dhaba?
Dhaba is a road side food stall, mostly catering to the travelers of highways all across India. The customer base largely consists of truck drivers and therefore Dhabas traditionally also serve as truck stops. An apt comparison can be made with its western cousin called the roadhouse across USA. They serve local cuisines and are known for providing a spicy menu to impress the drivers. However, over the year the traffic at highways have increased and therefore the guest coming in Dhabas have diversified. Like everything else, even Dhabas have come a long way since their arrival and not just their appearance but also their functions have changed.
The Transformation- beginning and the end
The best way to summarize the transformation of Dhabas is through the following pictures. While earlier Dhabas were your typical road side stalls with dainty and temporary construction, they have now become hip and trendy places you want to visit for the experience. In spite of this change, the older categories have not ceased to exist- All three now co- exist.

How can Dhabas be used for Marketing?
With the change in appearance and audience served by the Dhabas, its utility has changed too. As they grow into businesses run by ambitious hoteliers, more doors have opened up.
Example:-
In 2008, Dabur adopted 150 highway Dhabas with plans of changing their brand connectivity, this strategy allowed them to have a direct channel of communication at lower costs. The idea behind the acquisition was to promote the post meal consumption of their product Hajmola. Dabur started with renovating the Dhabas to attract more audience by creating a more welcome ambience and simply offered Hajmola instead of the conventional fennel seeds (saunf). The simple move garnered the brand a lot support and increase in sales through these Dhabas, soon after this move Hajmola managed to grab 65% of the total market share.
Dabur paved the way for the birth of a new medium of marketing – Dhabas, untapped channels that brands were missing out earlier. For long, it was believed that they are best suited for small regional brands but many FMCG giants have busted this myth. Highway Dhabas, if chosen can provide a very effective touch point for rural marketing. Few factors such as the following should be considered while making the selection of Dhaba as a medium:-

• Type of product
• Target audience
• Brand strategy

What are the advantages of using Dhaba as a medium?

• First and foremost, sticking to its conventional roots, Dhabas can be a great way to tap into the trucker’s community. Since they are travelling a lot, what better way to introduce them to a new product then during their refreshment break?
• Most of the highway Dhabas come with a lot of land, space that is otherwise empty can be used for advertising through pasting banners, posters or ads.
• Kiosks can be placed at such Dhabas to introduce new products or conduct product testing.
• The method does not ask for heavy investment and therefore does not create a charge on the profit.
• The arena is still developing and presents less competition from the rival for the space and limelight.