On-ground activation tops Britannia’s rural market strategy

The rural market provides 41% of revenues in the consumer goods segment, challenges notwithstanding; on-ground activities drive Britannia’s sales growth in rural markets

Gunjan Shah, VP- Sales, Britannia, while addressing The Economic Times Rural Strategy Summit 2018 in Delhi on the theme of ‘Rural Market - Evolution, Opportunity and Challenges’ with reference to the FMCG sector, said that the FMCG major views the rural markets’ as the “land of opportunities where 69% of Indian population live, giving 41% of revenues to consumer goods category”. He said the consumption levels in the rural markets are increasing quite significantly although the income levels there are relatively low. He attributed the consumer growth in these markets to rising aspiration levels of the rural consumers, and their greater awareness owing to Internet connectivity.

However, there are challenges too in addressing the rural markets, which he cited as “market blur spots, lower PCC/throughout, weak infrastructure and costlier expansion. The onus is on the FMCG brands to adopt the right distribution model, for instance by investing in chillers to keep afresh perishables and dairy products, and reach out to the deeper unexplored markets.

Gunjan also called for the right Go to Market strategy to create visibility in the rural markets. He said that on-ground activities such as HAT activities, semi permanent & permanent visibilities in markets, van brandings and signages will support this strategy. “These activities are essential to target and engage the consumers to approach the consumers at the right state of mind as they provide wider outreach in economical budgets”, explained Gunjan. While he also presented some new internet dominated market practices to tap the rural Indians, according to him, on-ground activities will remain meaningful to target the not so internet friendly consumers.