Since the time rural marketing agency RC&M startedits operations, it has been confident about the opportunities in the rural market. In an interview with Rohit Nautiyal of FE, Priya Monga, business head, RC&M shares the growth story of the agency vis-a-vis changes in the rural marketing landscape.
Give us a glimpse of rural marketing in India 20 years ago when RC&M began its journey.
Twenty years ago, we could foresee that rural marketing opportunities are going to come up in a big way. But to our surprise, there was a big gap between what we estimated and what we experienced in terms of ROI (return on investment). We began with a basic engagement model. As part of this, after spotting the customers, we interacted with them, compiled some reports and sent these to the client. RC&M was more about logistics and operations initially. Before the rural boom (a result of globalisation) in 1997, rural India was an alien territory for marketers. There was more focus on tracking growth in the urban markets. Media played a significant role in creating awareness about the subject. Clients became interested and agriculture (fertiliser and tractor brands) and fast moving consumer companies (FMCG)? Hindustan Unilever, Parle and Colgate-Palmolive ? were the first to tap the potential of rural markets.
This was followed by the entry of two-wheelers and later came consumer durables and telecom. With changing needs of the industry, we shifted our focus towards communication and strategic solutions. Today, we have strategists or account planners who know what’s best for a brand on-ground.
What were the major challenges faced by RC&M over the years.
We started with a team of 25 people and today we have 400 employees. A few years back, we could do 200 campaigns in a year. Today, RC&M can handle 500 campaigns simultaneously across the country in a year. We may have overcome many challenges, but our constant challenge is to communicate with a rural customer each time in an innovative way.
Companies such as Dabur, Marico and Hindustan Unilever have been setting up offices in rural markets. In this scenario, what kind of support system will be needed from agencies?
While some FMCG companies have been successful in establishing micro offices in rural India, how many companies can actually divert their attention in this area? Not many. This is where agencies come into the picture.
Speaking for our agency, we become partners of our clients and provide dedicated teams who work round-the-year with them. Agencies handle everything?right from strategy to implementation?and their role will continue to be vital for a better understanding of rural markets.
Are quick sales one of the main objectives of brands while targeting rural or semi-urban markets?
Clients come to us with two objectives ? long-term and short-term. When numbers are achieved with limited investment, it turns out to be a win-win situation.
Nowadays, it’s more about fulfilling long-term objectives of maintaining a relationship with the customer by planning initiatives throughout the year. According to me, sales to generate trials is the best way to get desired results. For instance, if a new tele- vision set is purchased by a semi-urban household, other members of the community will flock to have a look.
RC&M recently launched a book titled ‘Brand Experience?The Marketing Mind Game’. What made you interested in publishing?
In fact, the information present in the book was gathered for our orientation programme. All of a sudden, we realised that it’s enough to be compiled into a book.
The information is latest and can be useful for both clients and students of rural marketing. Apart from giving an insight into how rural markets have been growing, the book also manages to keep the reader abreast of global trends.
