Reasons for CCI’s focus on rural markets of India

• Flat sales in urban markets as it reached saturation

• Huge untapped rural market

• Substantial improvements in income and spending power

since 1990’s
Issues in advertising while targeting rural market

• Two out of five Indians are not reached by any media

• Wide gap between rural and urban markets with respect to media
behaviour:
 Literacy

 Availability of durables

 Electricity

 Income

• Necessitates the development of innovative strategies

Issues in advertising while targeting rural market (Cont…)

• They want a clear connection between the problem and

solution offered by a product
 Benefits should be explained directly and clearly
 Subtle messages may work for urban markets
 Symbolism and indirect approach may not work
 Quick, gimmicky and high-tech promotional films may not be
understood well

• Rural consumers go for a product only if they accept that a

particular brand proposition is good for them and not because
of the fact that it is a brand
Issues in advertising while targeting rural market (Cont…)

• Different words and images can have totally different interpretations

in rural market as compared to the urban market

• As rural markets are highly heterogeneous the interpretations may

vary across different regions

• Dubbing of campaigns created for one particular market may not be

the right solution

• Time gap between the point of exposure and time of purchase may
be long:
 Memorability of message may not be strong if impact of communication is not
effective
 Issues that CCI and Pepsi Co have to focus

• Difference in consumption habits when compared to urban

market:

 Preference for traditional cold beverages

• Poor infrastructure :
 Erratic power supply
 Transportation problems

• Negative publicity:
 News about high pesticide content
 Allegation of misuse of ground water resources

• Issues related to advertising