Biscuit maker Britannia Industries Ltd is charting out several plans as it eyes the rural market as key focus areas for the future, in a bid to push revenue contribution from those regions to gain 30-35 per cent over the next 2-3 years. Rural India currently accounts for more than 20 per cent of the company’s total revenue. With the motive of expanding their direct reach, Britannia has already set up 13,000 stock points—distribution points from where it supplies to shops in surrounding areas across rural markets.
Britannia’s Vice-President of Sales, Gunjan Shah said “rural is where the headroom is and there are many programmes that the government is driving on that front. I think there is going to be far more momentum that will come from there. Disposable incomes will go up and consumers’ appetite for better products will also go up.”
The biscuit maker has tried innovative packaging options to improve sales in rural areas, especially of premium biscuit brands like Good Day and Marie Gold, It sells smaller packs of these brands that cost Rs5-10 and piloted a few marketing campaigns in the rural markets.
Shah added that “One thing we are looking at doing is ensure that we develop awareness and activation at the local level in those villages. We can activate weekly markets where we can set up stalls and make them aware of our products like cream biscuits and brands like Tiger.” Britannia will run branding campaigns in rural markets for the first time.
Along with increasing sales in rural market in India, the company is also working on to increase penetration and market share in the Hindi belt (Rajasthan and Gujarat, to Uttar Pradesh and Madhya Pradesh).Britannia has to strategically their moves in these regions that are mainly dominated by Parle Products Pvt. Ltd and several region-specific brands.
The rural market should be viewed as two sets of consumers in India—the rural middle and upper class, and the rural mass. Marketing campaigns need to be tailored to both segments in order to be more effective.