INTRODUCTION

India is predominantly rural in spite of the extensive industrial development.

Rural India has been a market of enormous size and potential that was
waiting to be exploited but was hardly ever done so. However things are
changing now. With the proliferation of new brands in newer product
categories, coupled with growing saturation in urban India, marketers,
especially FMCGs are looking to rural India to be a source of volumes and
growth.

The tobacco industry has been facing declining volumes over the last several
years and also there is a gradual decline in volumes in the cigarette industry.
In spite of this the profitability of ITC (Indian Tobacco Corporation) over the
last few years has been increasing due to increase in the prices. The most
feasible way to increase volumes is to encourage large scale switching from
the bidi smoking segment. Earlier there was a huge price differential between
bidis and the lowest priced cigarettes (plains/ RSFTs). Hence bingo category
was introduced to provide a lower cost cigarette option for the bidi smoker.
 What is Bingo ???
Bingos are cigarettes with length below 59mm
and they do not have a filter.
Its purpose was to make the bidi smoker
switch to cigarettes.

Even though it was a big success initially, it’s attraction, over the
years, has declined.
Though price increase was an important reason, even otherwise
people came to see little value in bingos.
Rather it has been found that people switching from bidis to
cigarettes would prefer using RSFTs to bingos in spite of the
huge price gap between the two of these. The problem is since
people don’t see value in bingos; fewer people are switching to
cigarettes, then otherwise.
 BROAD RESEARCH OBJECTIVES

• To gain an understanding of rural India, the consumers and the

markets to decide on the appropriate marketing mix for rural India for
various products

• Secondly to find out what are the obstacles to increasing category

switching from bidis to bingos and the reasons for the poor value
perception of bingo among bidi smokers.

• The focus now narrows down to design a communication strategy

aimed at the rural consumer
Communication strategy aimed at the rural
consumer.
Design of a
Communication
Strategy

Better Brand
Projection

Of Bingos Of Products
vis-à-vis in general
Bidis in rural
COMMUNICATION STRATEGY
MODEL
Purchase
OTHER
Decision
FACTORS

Situational Factors

Information
Brand
Processing
Image Communication
Characteristics
Strategy
Environmental
Influences

Attitude, Motivation,
Involvement
With the product
 The two main issues with a communication strategy are:
What to communicate (i.e. content of the communication)
How to communicate (i.e. the channel/media or vehicle for the communication).

A communication strategy consists of:

Message: The spirit of the communication

Content parameters: Theme, Language, Metaphors
Channel of Delivery: Media, Activities

There are some intervening variables that mediate the way a communication
strategy creates an image of the brand in the consumers mind.

The intervening variables fall into three categories:

•External Environment variables like family, social group and lifestyle, which are
external to the consumers mind and are influences of other minds on the
consumer’s decision.
•Individual Determinant variables like attitude, motivation, information
processing, which are internal to the consumers mind
•Situational variables like mood and routine tht influence brand image.
 COMMUNICATION STRATEGY

Usage issue:
• Cost consideration: Send across the fact that it
can be bought for as low as 2 rupees
• Physical Limitations: Smoking a few bingos a
day gives better satisfaction than smoking 2
bundles of bidi.
• Using up time: Bingo takes more time to smoke,
but every bingo satisfies you more than a bidi
and saves you from the irritation, need to smoke
more
 The Bidi/ Cigarette market
features
• The most prefer Brands of Biri
are Telephone, No27, 502
Pataka.
• Premium Biri cost = Rs. Five a
bundle
• Other known brands cost
around two to three rupees
each bundle
• A bundle is supposed to contain
around 22-24 sticks, but usually
contains 17-20 sticks each.
•
• Communication of Capstan
(low)
• Cavander board is
displayed in approximately
60 % to 70 % of the retail
outlets with comparison to
10% of ITC Bingo.

• Cavander used to smoke

drugs,
• The drug smoker empty
the Cavander cigarette of
all its tobacco and fill it
with the drugs.
 BRAND IMAGE VARIABLES
Taste of Bidi vs. Bingo
Bidis have a different kind of tobacco as compared to
cigarettes. The bidi tobacco along with the ‘tendu’
imparts bitterness to the taste of a bidi, very unique to
it.However the amount of tobacco per bidi stick is very
small. Each cigarette stick contains a lot more
tobacco.Besides the mouth of a bidi is narrow while that
of a cigarette is very broad.

Usage characteristics of Bidis vs. Bingos

A dual smoker would smoke a bundle or two of bidis costing

him two to four rupees each and just one or two cigarettes.
smoker of bidi cannot usually smoke cigarette in large
numbers because he cannot afford to pay.
Focus on the individual pleasure of smoking
and the low cost. This shows value for money.

• Taste issue: It has the

taste of Capstan brand,
stress on good quality
tobacco.
• Health Issue: Show it’s
clean, hygienic
manufacturing facilities
and good, consistent
quality Comparisons with
bidi, if possible By
showing it’s unhygienic
manufacturing facilities
 Influence of Social Groups

• Status Perception vs. Profligacy

Perception
• Shopkeeper Influence
• Channel of Delivery
• Rural Activities
• Retailer/Consumer Schemes
• Displays, hoardings, wall paintings:
Other Media
• Presence at Religious occasions
• Packaging Communication
 REPOSITIONING OF BINGO
FACTORS-
• Smaller Bingos
• Extinguishable and Re-lightable
• Taste
• Filter
 MARKETING STRATEGY IN
RURAL INDIA
• Product Characteristics
• Communication: Message
• Communication: Content
• Communication: Channel
 SUGGESTIONS FOR BINGO
• Product Changes
• Communication Strategy: Message
• Communication Strategy: Content
• Communication Strategy: Channel
THANK YOU
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