Abstract
The case presents an invigorating snapshot of rural market in India, taking into consideration toothpaste as the context and Pepsodent as the protagonist. Rural markets of India are often considered as the last of the uncharted territory, the unclaimed land of riches and the virgin markets awaiting the arrival of prince charming. At the same time, the rural markets are not for the faint hearted. Marketers who have made the mistake of dabbling in the rural markets without enough homework have learnt of the consequences to their own peril. Nevertheless, to every marketer, the rural markets remain the last frontier of the application of marketing tenets. Hindustan Unilever Limited’s (HUL’s) unveiling of Pepsodent to the rural market presents a great testimony to this epic battle to win over the rural consumer.
The case chronicles the efforts of HUL’s Pepsodent to enhance its market share by capturing the rural markets. The necessity to look towards rural markets also stems from the fact that the market leader and prime competitor, Colgate, is leaving no stone unturned to entice rural consumers. The attractiveness of the rural market to fast-moving consumer goods (FMCG) players of all hues has been aptly communicated by the author using data from surveys done by Euromonitor, MART, etc. With support from top management, Pepsodent adopts the 4A’s model—Affordability, Awareness, Availability and Acceptability—to capture a share of rural consumers’ wallet. The entire campaign piggybacks on ‘free dental check-ups and health camps’ to create a win–win situation for the target market. Clever manipulations in the marketing mix components to suit the requirements of rural consumers enables Pepsodent to present itself as a viable alternative to not just traditional oral care practices but also to its old rivals, Colgate and Dabur.
The case sets the backdrop very effectively by outlining the key data pointing towards a mouthful of opportunities, literally, for Pepsodent to explore. Negligible per capita consumption and abysmal headcount of rural toothpaste users set the stage for diffusion of Pepsodent in the rural market. Rising income levels, access to education, greater awareness of personal hygiene and increasing media reach are bridging the aspirational divide between urban and rural consumers. At the same time, rural consumer still prefers products at lower price points, from a trustworthy source, available within reach and the one that is acceptable to the society.
The author has effectively used Pepsodent as the protagonist in the **wild-wild west of Indian market, namely, rural India to convey lessons in effective rural marketing against gargantuan adversity. The case brings to the fore adversity in terms of three aspects—culture, consumer and competition.
The greatest adversity Pepsodent faces in its endeavour to ensnare the rural consumers is the culture itself. Pepsodent fights against culture-induced consumption. Culture can be envisaged in terms of four dimensions: values, rituals, heroes and symbols. Oral care in rural India is an elaborate process. Moreover, unlike in urban India, it is more of a collectivist rather than individualistic practice. Rural consumers, through consumer socialization practices, inherited from reference groups, followed certain rituals for oral hygiene (e.g., using neem). However, Pepsodent’s use of the core values (oral care) to its advantage helped in effectively positioning it as a protector of culture, as opposed to destroyer of culture. Rural consumer is also influenced by a strong sense of social acceptability of a consumption pattern. For a product to gain individual acceptance in rural markets, it has to break the social barrier first. The author has rightly brought out ‘free dental check-ups and health clinics’ as a masterstroke in breaching the socio-cultural barrier through creation of good vibes.
Another challenge faced by Pepsodent was the emphasis on perceived value. Consumers in India are believed to be value maximizers. The rural consumer is even more sensitive to the ratio of perceived benefits and costs. Even as there is a gradual shift in outlook in favour of national/international brands, at heart, the rural consumer still retains the proclivity towards utilitarian, rather than hedonic, consumption. The case does a good job of bringing out diverse data points to be used in augmenting and communicating the perceived value to the target market.
The third adversity faced by Pepsodent is from the competitors—Colgate and Dabur. The case gives an individual assessment of each of these competitors with emphasis on the fact that Colgate already has gained the first-mover advantage while Dabur has an effective localized marketing strategy. An assimilation of information on these three brands to chart a future course of action gives the case its strategic marketing perspective.
The case takes the reader through the various measures adopted by Pepsodent to achieve its objective in the face of these obstacles. Pepsodent used cause marketing to advance its own cause—greater product penetration in rural India. A successful association of Pepsodent with dental treatment and dentist would only help the brand in top-of-mind recall. An experience of having been treated in an oral care centre sponsored by Pepsodent would help in creating a strong, unique and favourable association for the brand Pepsodent. Tweaking the product and price aspects to suit rural consumers has been conveyed. However, a lot is left to reader’s imagination in terms of product and pricing strategies. The promotion and distribution strategies have been delved in detail. The ‘khushiyon ko doli’ and ‘operation harvest’ campaigns enhanced brand salience of Pepsodent by breaking the clutter. The biggest challenge in reaching out to the rural consumers is a cost-effective distribution strategy. The case has appropriately highlighted on the multi-channel marketing with clear delineation of multiple levels in each channel. ‘Project Bharat’ and ‘project streamline’ highlight the distribution strategy aimed at putting Pepsodent within arms’ reach of each rural consumer.
The case also offers a very good study on strategic use of the process of opinion leadership to ensure diffusion of an innovation into a social system. HUL engages in partnership with the Indian Dental Association (IDA) to organize free dental and health check-ups. Such a cobranding endeavour with IDA enhanced the ability of Pepsodent to register greater and faster acceptability in a social system as conservative as rural India. Pepsodent successfully built a secondary association so that it could be leveraged to its advantage.
The ultimate measure of success of the campaign would depend upon sustainability of the strategies. The brand has been able to create a buzz—generate Awareness and Acceptability. However, how far it leads to a long-term relationship between the consumer and the brand would depend upon, as mentioned in the case, the other two As—Affordability and Availability. With little to differentiate from its key competitors, it is the long-term affordability and availability of the brand that would make a difference between transaction and loyalty.
Overall, the case can be used to discuss the concepts of rural marketing, consumer behaviour, below-the-line communication strategy, brand salience, packaging, innovative distribution strategy, diffusion of innovation and opinion leadership. The list is indicative. The case could have given a geographical mapping of the distribution network supplemented by numbers at each level to emphasize the fact that logistics remains the most important parameter of sustainable success in rural marketing.
Having said that, the case is a perfect amalgamation of data and information. The vivid description of the challenges faced by Pepsodent and the measures adopted is insightful. The reader is taken through this journey in a lucid manner. The subtle description of strategies makes it a surreal experience for the reader. A management student would benefit immensely from this case written on the road less travelled until now—the rural markets. Companies operating in other areas of FMCG sector and facing stagnation can also draw cues from this case for creating a rural marketing strategy. Bon voyage Pepsodent—on a journey from brand salience to brand resonance.