Researching Consumers at the Bottom of the Pyramid

Troy Hakansson

In developing markets much is made of the huge opportunities that exists in the lesser developed areas or ‘bottom of the pyramid’ as the phrase coined the late C. K. Pralahad describes them. Therefore in markets such as the BRICS and other emerging economies this opportunity is driving a lot of research to understand and explore consumers in the lesser economically developed levels. It feels like penetrating the rural and developing,  ‘lower tiers’ as they’re known here in China has been a priority for many multinationals in recent years.

In some cases, it is wiser for companies developing their brand in these huge new markets not to bite of more than they can chew. For example, it would be advisable for some smaller companies, or those only just establishing themselves in an emerging market to focus on the centres of development, or the more prosperous key cities to get a basic grounding in the market and its unique characteristics.

For the big multinational players, many of whom are already established in the big cities, and have worked hard to put down roots in the market. They too cannot afford rest on their laurels. Because in lower tiers they are effectively re-introducing their brand to swathes of new people who will be judging the brand for the very first time. These brands may have a solid reputation globally, and in the more developed cities, but how can they build big brand credibility in the lowers tiers? This is where consumer research plays a vital role.

Rural consumers are not as sophisticated as those in the more developed cities, and this has crucial implications for actually conducting market research in very lower tiers or rural areas. The key advice is to keep it simple. This is true for both qualitative and quantitative research, and a few basic logistics and design considerations would be:

Respondent Expectations
Remember that in many large emerging markets there is a diversity of regional and local dialects. Ensure that you keep all research and fieldwork materials clear and simple, avoid complex questionnaires and complex stimulus. Fancy or stimulus such as complex creative ideas or concepts can often be totally lost on the audience in the lower tiers.

Rural and lower tier respondents are sometimes reluctant to speak up or can be inarticulate. Some useful methods to counter this are to employ a fieldwork team who are local or at least speak to the local dialect, and in qualitative research employing qualitative triads groups amongst friends or colleagues (i.e. mini-groups of three people) can help to encourage conversation and sharing. This has worked well for me in research among farmers in China.

Geographic Realities
Doing research in rural areas has its own unique geographic challenges, even just getting there can be a challenge!  Villages or small communities are often widely dispersed in the rural areas, with long distances between each populated area. Therefore ‘Snowball’ sampling, a form of non-probability referral sampling can help recruit more respondents through local work or family networks.

My own experience on some recent communications research highlights some of the areas that consumer research can play a vital role to explore and understand how to communicate with rural consumers (I’m pulling from my experience in China, but I’m sure many of the same rules ring true in other developing markets such as India and Brazil).

Balance of Information:
In many cases communicating with lower tier consumers will require less style, and more content. This often means making basic hygiene factors (e.g. safety) more prominent, since getting the right mix of information is key as these consumers are often more pragmatic, and want to know the key benefits upfront in a straight-talking way. Communications should be clear, direct, and not too abstract.

Tone of communications:
Many communications in the developing markets play towards the aspirations of the emerging middle class, these aspiration cues may need to be toned down slightly when talking to the very low tier consumers. The ‘bold aspiration’ seen in the shiny new cities may need to be tempered for the reality in these lower tier rural counties, towns or villages. But aspirations messages geared towards a moderately better life for them and their family (particularly their children) should be emphasised.

Build Trust:
Always reinforce that yours is a big brand, as big brands garner credibility, respect and face value, which in turn leads to trust. Why is trust so vital? Because in many lower tier markets, consumers are on high alert for scams, fakes and cheats, they are often expecting to be cheated, so they have their radar on 24/7. Big brand credibility also comes from presence –so try to ensure that your brand is present to all in the market (i.e. on all the shelves). Demonstrate your brand has clout – make your brand omnipresent.

Celebrities have also been used to good effect in China, to demonstrate that a brand is big and credible – the idea being that if this brand can is endorsed by a huge celebrity star, then it must be good. This tactic has probably now become over-used in the market, to be honest.

It is an all too common mantra that what works in Shanghai might not work in rural Sichuan. On a broad scale this is true, but it’s also true that you won’t necessarily have to travel to the hinterland to understand the ‘bottom of the pyramid’, as the trend for migration of the rural class to seek their fortune in the key cities (Beijing, Shanghai , Guangzhou and other regional centres) has led to rapid urbanisation. These flows of migrants mean that even in the larger cities, there is already a migrant population or ‘rural class’, so that the many different economic  tiers exist in a microcosm in some cities.

Lastly, many research or marketing teams are tasked with trying to paint a picture of the very low tier markets for their global or regional teams. Therefore, it often helps to take pictures (or even videos) in the field to include in the final deliverable, as these will really help to bring the rural markets to life. Better still get them to take a trip to these lesser developed areas themselves, because nothing helps us understand there consumers more than to experience their environment firsthand.

Troy Hakansson is an Account Director with Millward Brown China. The opinions expressed by Troy on RW Connect are his own and do not necessarily reflect the views of his employer.