Posted on February 17, 2016
Small Town and Rural Markets Are Paradise for Most of the Regional Brands
The struggle of star brands from MNC giants in the Indian economy is a proof of the rise of regional brands in the country. Regional brands, in their respective categories, are giving a head-on competition to the giants. The difference comes from the fact that these brands are adopting a different business model and offering a totally different value preposition to the customers.
When it comes to taking on an MNC giant, the regional brands are using flanking strategy to compete with them, specifically a geographical flanking strategy. The strategy, when weak geographical zones for a product are identified and a new product is offered to the consumers with a modified value preposition.
These strategies prove helpful to the regional brands, given their constrained financial resources to take on the giants.
And when it comes to the approach, what better can serve a brand than a small town and rural market approach. It is very difficult to change the mindset of urban consumers when it comes to brand loyalty. But, their rural counterparts are more prepositions conscious rather than being brand conscious. Likewise, when it comes to costing, it plays a very important role in a rural consumers’ buying decision. And, a regional brand can anytime compete a MNC giant on costing front.
A BTL campaign thus designed keeping in mind small towns and rural markets would definitely help the regional brand leaps and bound.
The following strategies can be deployed, keeping in mind the sensibilities of rural India:
- Free sampling, when it comes to product introduction.
- A door to door campaign.
- TG specific touch point based activations.
- A campaign involving opinion leader of a geography.
- Van campaign
If used smartly and to the potential, the geographical flanking strategy can do wonders for a regional brand.