Relevance Of Hyperlocal Marketing For FMCGs

Mayank Shah Dec 22, 2022

Hyperlocal marketing is the process of targeting potential customers in a specific, geographically restricted area, with the aim of tapping into people conducting “near me” searches on mobile devices. In essence, hyperlocal marketing has been in existence for a long time. If we recall marketing tactics used prior to the invention of TV, the radio and even the internet; we will find that flyers and pamphlets were in use from quite the start. They were left on the doorsteps of homes, stuck to car windshields and this seemingly old-fashioned style of direct marketing worked like magic. Even today, if done correctly, it may yield excellent results. Hyperlocal marketing may assist you in personalising your messaging and developing campaigns that engage with clients in your region and you may concentrate on your core consumer base by focusing on folks that live nearby.

Since companies are allocating more budgets for marketing initiatives, there is plenty of opportunity for hyperlocal marketing efforts in today’s time. And when it comes to focused, direct digital marketing, it's difficult not to mention hyperlocal marketing strategies and what they can achieve. Brands are realising that one plan will no longer work with the present world of customers. To have a firmer grasp on multiple markets, companies must become hyperlocal, which means looking at each market independently and understanding its intricacies, speaking to them in their language, creating tailor-made products with decent pricing points, and being ubiquitous. When done correctly, hyperlocal marketing may help businesses in a variety of ways, including increased foot traffic, better measurable outcomes and reduced costs, high rate of return on investment, promotes word-of-mouth, increases brand reputation and awareness and bringing in leads who are ready to buy.

The advent of hyperlocal marketing as a niche tool:

Hyperlocal marketing, unlike other kinds of traditional marketing, is particularly focused. Businesses (specifically retailers) do not need to spend a lot of money on large marketing efforts, that might generate little ROI. Brands expect a stronger return on investment from local content by connecting better with customers of a certain cohort concentrated in a geographical location. Today, a lot of traditional companies have moved their attention to hyperlocal business models. Because of the rising internet usage and evolving customer behaviour, this transformation has been expedited even further.

It is important to highlight that the hyperlocal strategy allows companies to reach out to their target clients directly, eliminating the need for intermediaries and retail outlets that were previously part of the traditional business model.

Using hyperlocal connect to tap into market gaps and needs:

India as a country is known for its diversity. Every region of the country carries a different culture, traditions and rituals that people adhere to. The effect of that percolates into their personal choices too. Hence, tapping a regional market and tailoring a strategy in line with the habitude of the people helps the brand connect more deeply. It adds a personal touch which not only helps penetrate the market better but also differentiates us from our competitors. Besides, rural markets hold a huge potential waiting to be tapped into. Drawing on a regional marketing strategy we can have a closer look at what works for a specific region, while also ensuring a better reach to smaller/remote areas.

Key insights utilised by brand marketers:

Blasting your marketing message to as many people as possible used to be a popular approach, but it was not always the greatest option for lesser budgets, the fundamental point of mass marketing is to cast a wide net in the hopes of catching a few fish. However, this is no longer the case. The more you can tailor your message to a certain group of people, the more effective your marketing will be and the greater the return on your advertising spend.

Utilising demographic advantage for brand targeting during the festive season:

The number of eyes on digital advertising platforms has grown dramatically. Though television is the unquestioned communication channel, channels such as OTT, social media, digital aggregators and so on enable companies to reach a broader audience without regard to geography. It has aided companies in weaving product offerings into people's everyday lives by knowing the culture, customs and mannerisms practiced in a particular place.

Because the diversity of India's regions varies every 5 km, the cues obtained for regional advertising are rich in insights about consumer behaviour from that unique location. Given the popularity, quantities, market consumption, and deep penetration of age-old FMCG items into rural India and Tier 1 and 2 cities, it is preferable to communicate with people in a particular region in their own tongue rather than Hindi or English. Standard communication may be extended across India by dubbing in regional languages, but it still lacks the subtleties and character of that region. It is critical to understand and decode cultural differences within a state or even a socio-cultural area.

Understanding cultural characteristics and intricacies are critical for making communication resonate with customers. When done correctly, hyperlocal marketing will let people in your geographic region know they can rely on you when they require a product or service you provide. As we witness the increased proliferation of the internet in tier 2 and 3 regions, the combination of widespread mobile device adoption along with heightened emphasis on a local search will further make hyperlocal marketing an extremely effective way for brands to attract new customers.