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Rise of the tier 2 and tier 3 consumer and new rules of brand engagement

Brands aren’t created overnight, and neither are customer trust and perceptions of the brand. For decades, a company’s persistent toiling, planning, and efforts in operations, marketing and promotion, and, most crucially, customer service have earned it a brand status for its product and service. Building a brand in a Tier 2 or Tier 3 city has been highlighted as a goldmine of prospects for the organization, since they are among of the nation’s fastest-growing areas. These consumer has evolved over the past decade with the enhanced digital penetration with smartphones, and the rise of Social media and OTT leading to enhanced phenomenon of personalized content. This has led more consumer awareness about brands and easier penetration for brands to reach the consumer. However, for the longest time the brand communication had always been focused on the brand’s mass messaging with carefully selected audiences.

With the enhanced reach, and better spending power, the Tier 2 and tier 3 market consumers are armed with two important factors – knowledge and aspiration. This has meant that brands can no longer escape or turn a blind eye to this target audience. It is this that brands are leveraging now and are thus creating relevant messaging and talk points to engage with this new consumer base. Here are the key things that brands need to keep in mind when engaging with this new consumer:

1.     Relevance

Brands looking to enhance presence in tier 2 and tier 3 markets need to have a stronger understanding of the need gap, and thus the market demands of these towns, which is often different from those of the metros. The communication campaigns need thus need to reflect the relevant messaging suited to appeal and connect to this set of consumers. A one size fits all concept can definitely not go well when brands are looking for wider market penetration. 

2.     Value in the day to day living

In addition to relevance, brands today also need to add value to the daily lives and the over all brand experience for the consumers, especially in the tier 2 and tier 3 towns. Just relevant marketing communication may not be a sustainable effort for establishing brand loyalty in the long run. It is the comfort, value and ease of experience that the brand can add to the daily life, which will eventually add to the overall market dominance of the brand in these tier 2 and tier 3 towns.

3.     Aspirational Value

Consumers from tier 2 and tier 3 towns are now seeking a higher aspirational brand value for their purchases, than ever before. From factors like higher spending power and better exposure to national and international brands to the valuation of self-worth and societal reputation, are all driving spending decisions. And brands need to take heed of this in order to cater to the demands of this new consumer.

Overall, the future of branding in tier 2 and 3 cities will be determined by businesses’ commitment to sustainable development, use of cutting-edge technology, and individualized connections with customers. Implementing customer fulfillment tactics will increase brand recognition and drive the objective of branding to new heights.