Marketing Mobile Games and Apps in India

RUNNING HEAD: MOBILE GAMES AND APPLICATIONS IN INDIA

Marketing Mobile Games and Applications in India

Benjamin S. Cheeks

International School of Management, Paris

Author Note

This paper was submitted to fulfill the requirements of Marketing in India, MKTG

7018. I would like to thank all of the faculty and staff at Amity University, Noida, for their

support and dedication to make the first ISM – Amity Seminar a success.

Correspondence concerning this paper should be addressed to Benjamin S. Cheeks.

Email: [email protected]

MOBILE GAMES AND APPLICATIONS IN INDIA 2

Abstract

Daga, Manual, & Narasimhan (2010) believe that India is poised to become a truly

mobile-Internet society as new users leapfrog personal computers altogether and move

straight to mobile devices. This is especially true in rural India where mobile Internet use has

increased 720% to 3.6 million over the past two years alone. Mobile handsets (smartphones)

are becoming more affordable and feature rich. This explosive growth in mobile-Internet

penetration has the potential to improve the effectiveness of reaching India’s rural

community.

In order to realize this opportunity, there is a need for simpler and more

intuitive mobile applications designed specifically with the rural Indian user in mind. This

need offers a potential opportunity for entrepreneurs. This paper explores how a company

can design and market mobile games and applications to the rural consumer. It also provides

a blue print as to how such a company should build its brand.

Keywords: mobile games, mobile applications, rural India


Marketing with Mobile Games and Applications in India

Internet Use in India

The Internet and Mobile Association of India (IAMAI) and Indian Market Research

Bureau International (IMRB) (2012) reported that as of the end of December 2012, there

were 122 million active Internet users in India. Active users are defined as those that have

accessed the Internet within the past month. At 122 million users, India trails only the United

States and China in terms of total Internet users. However, with a total population in excess

of 1.25 billion, this penetration rate of less than 10% is far lower than the global average of

43%.

Rural Internet Use in India

The same report shows that the growth rate of Internet users in rural India is

outpacing that of urban India. As the urban market becomes more saturated, this trend is

expected to continue. According to the report, rural Internet users increased from 24 million

in December 2011 to 38 million at the end of December 2012; an increase in rural Internet

users of 58%. During the same time frame, Internet users in urban India increased from 72

million to 84 million, an increase of only 17%.


67 72 80 84

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20

40

60

80

100

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140

Jun 2011 Dec 2011 Jun 2012 Dec 2012

Urban

Figure 1: Active Internet Users in India, June 2011 to December 2012 in millions. The

Internet and Mobile Association of India (IAMAI) and Indian Market Research Bureau

International (IMRB) (2012).

Many of these new Internet users are accessing the Internet through their mobile

devices. The Federation of Indian Chambers of Commerce and Industry (FICCI) and KPMG

International (2012) projected that Internet connections will shift from fixed to mobile over

the next four years. It is projected that mobile Internet connections will exceed 392 million

connections in 2016, dwarfing the 51 million fixed Internet connections in that year.

Rural India is seeing a huge growth in mobile Internet. As per The Internet and

Mobile Association of India (IAMAI) and Indian Market Research Bureau International

(IMRB), (2012), at the end of June 2012, there were 3.6 million rural mobile Internet users.

This is an increase of 720% in the last two years.

This huge increase in Internet use in rural India is credited to cheaper data plans

offered by the wireless carriers as well as the increased prevalence of low cost smartphones.

The rural increase of mobile users combined with continued urban growth, will result in


mobile devices replacing personal computers as the primary means of accessing the Internet.

Smartphone ownership will grow significantly over the coming years. According to The

Federation of Indian Chambers of Commerce and Industry (FICCI) and KPMG International

(2012) the number of Internet-enabled smartphones in India will reach 58 million in 2013,

more than double the level of 2012 with rapid growth projected to continue through 2016.

Other industry experts agree with this assessment. Menezes (2012) quoted Praveen

Rajpal, CEO of Handygo Technologies, a mobile value-added service provider, when he said,

The demand for mobile Internet via smartphones is rapidly catching up in rural areas.

Whereas earlier people in B and C towns would take a year to adapt to a new

technology, today, because of the abundance of low-cost data packs, local language

content and informative apps like Mandi Bhav1, etc, rural people are having their first

Internet experience on the mobile, as handsets are more accessible than cyber cafes

in smaller towns.

1 Mandi Bhav is a mobile application that provides access to current rates for various commodities.


In a report from the global consulting firm McKinsey, Daga, Manual, & Narasimhan

(2010) stated,

We believe that it’s poised to become a truly mobile-Internet society as new users

leapfrog PCs altogether. We project that by 2015, the number of Internet users will

increase almost fivefold, to more than 350 million—28% of the population—with

more than half of those accessing the Web via mobile phones.

Daga, et al (2010) stress that to capture this opportunity, companies will need to roll

out wired and wireless broadband networks aggressively, to make smartphones and network

access more affordable, and to develop new content types. The Government of India is doing

its part. The Twelfth Five Year Plan (2012), set targets for the Telecommunications Sector to

provide mobile access to all villages and increase rural teledensity to 70 per cent by 2017. It

also targets the creation of a National Optical Fibre Network (NOFN) that would connect the

250,000 Gram Panchayats2 (GPs) in the country through Optical Cable (OFC). This initiative

aims to add nearly 100 million broadband connections by 2014.

This explosive growth in mobile Internet penetration has the potential to improve the

effectiveness of reaching India’s rural community. This is especially true for such sectors as

banking, healthcare, education, entertainment, and specific government programs.

In order for businesses that profit from mobile activity to take advantage of the

opportunity in the rural market that mobile Internet provides, a number of challenges other

than network infrastructure will need to be addressed. Merely providing the access and an

inexpensive phone is not a guarantee of a comparable increase in usage. Daga, et al (2010)

highlights an example of rural Hungary. In Hungary, over 90% of the population can afford

2 Gram Panchayat. (2013, June 16).is a local self-government at the village or small-town level in India, and the Sarpanch governs.


broadband Internet. However, only about half actually use it due to the limited availability of

local digital content and low digital literacy. There is also a need for simpler and more

intuitive mobile applications designed specifically with the rural user in mind. These

applications must be designed to work with a basic mobile device as those in the rural

population are unlikely to be able to afford a sophisticated smartphone. They will require

simple graphical interfaces and strong local language support.

Related Work

Several studies have been conducted on designing mobile games and applications

specifically for the market in rural India. Kam, Rudraraju, Tewari, & Canny (2007)

evaluated whether or not games designed with game design patterns or without game design

patterns were more engaging for children living in rural areas. However, there was an

unexpected finding: “the failure to apply patterns in a manner that is contextually and

culturally appropriately is likely to bring about poor gameplay experiences”. In other words,

more importantly than as to how the game is designed is the culture of the user. Games

enjoyed by children in one culture may not necessarily be enjoyed by those in another. Other

interesting findings from the study were the following:

• Games with brighter colors were preferred; perhaps due to colors having a dominate

role in Indian culture and festivals.

• A game containing crocodiles was poorly received. The researchers later understood

that crocodiles are often villains in Indian mythology.

• It is common in games to create time pressure to make games more challenging and

engaging. However, this received negative comments from the rural children. This

led to recommending game designers adopt an “Easy Fun” approach when designing

games for this group.


• The children sought constant feedback from the adults when performing well in the

games. It is therefore vital to take into consideration the existing power structures

when creating the games and to create a “pause” button to allow the players to show

off their proudest moments.

In a second study commissioned by Nokia, Joshi & Avasthi (2007) discuss the fact

that the majority of phones interfaces are directly adopted from the realm of computers.

However, when the mobile phone may be the first and only interaction with the Internet that

the rural user has, there exists a gap between user’s mental model of interaction with the

everyday objects and the interaction model of Internet on mobile phones. Given this

challenge, they propose a new interaction model for mobile-based browsers in order to

provide a good mobile Internet user experience and value-added interactions and services.

A second project from Nokia went even further. In this study Sapre (2008) describes

his experience with Nokia from 2008 to 2009 in Indian working to understand mobile usage

trends and create prototypes of mobile applications that would be useful to people in rural

India.

Some key findings from the study were:

• None of the phones had an interface in the local language.

• A higher rate of mobile usage amongst men as compared to women

• Children had considerable access to their parents’ phone; often performing tasks for

adults such as reading texts and saving contacts.

• Most people learned to use their phone from friends, family, or acquaintances.

• Many users could not read SMS due to the fact the text was either in English or

transliterated in Roman script.


What all of these papers have in common is the finding that the same application and

game design that works in the Western world and even in urban Indian may not always work

best in the Indian rural setting. Therefore, in order to take advantages of the growing mobile-

Internet population in rural Indian, custom applications must be developed keeping the rural

user in mind. This need offers a potential opportunity for innovators; it could significantly

improve usage among new mobile Internet. It is also the opportunity that this paper will

explore.

The Market Offering

The business services that will be offered are mobile solutions to connect businesses

with the rural Indian market. The company will provide design and development of mobile

software applications and games using the business operating model of business to businesses

(B2B). Business clients currently or plan in the near future, to market, educate or share

information with the rural Indian market. The unique selling proposition and key

distinguishing factor that sets the company apart from other businesses is that the company

provides expert knowledge and understanding of the rural mindset and culture. The company

as a B2B solution provider addresses the challenge of creating mobile software that is

designed for the rural Indian market, designed with cultural and environmental factors taken

into consideration to ensure the highest adoption rates possible.

Building the Company Brand

Although the industry for designing mobile games and applications is poised for a

high growth rate in the coming years, there is little brand awareness in the industry. There

are thousands of organizations in India that specialize in developing applications and games

for mobile phones and many more companies develop applications in-house. However, there

are none that claim to focus on the rural market or even more specifically to understand the


rural population from a culturally and contextually appropriate mobile perspective. Brand

management is a shared responsibility of the entire organisation and therefore, the brand

should be built considering the six conventions of corporate branding as laid out by Knox and

Bickerton (2003). These are brand context, brand construction, brand confirmation, brand

consistency, brand continuity, and brand conditioning. These six conventions stress the

importance of brand continuity throughout the organization and how the brand aligns with the

values of the customer and the key stakeholders.

Brand context. Brand context defines where the brand stands from the aspect of

vision, culture, image, and competitive landscape.

• Vision - The vision of the company is to develop and deliver innovative mobile

application technology to businesses that enhance the well-being of the rural Indian

community.

• Culture - The culture of the company will be based around the concept of value

creation. Applications must create value for our clients and also for the rural

consumer. Our applications and games must make the rural consumer’s life better

through entertainment, education and information, influencing positive behaviours, or

making their life easier.

• Competitive Landscape -There are several organizations that have developed

specialized applications for the rural market. These include:

- Reverie Language Technologies develops technology to translate English texts

into local languages.

- Plustxt has created a text messaging application that works with many of the local

Indian languages.

- Newshunt has an application that offers local language news.


- m.Panni designs and implements mobile-based loyalty programs that empower

underserved communities. The company focuses in the areas of safe water,

education, healthcare, energy, nutrition and mobility.

- Nano Ganesh is a GSM mobile-based remote control system that allows farmers

to use their mobile phone to control their irrigation pumps.

It is important to note that these companies either market their own application rather

than their services as application developers. This is a distinction that will need to be clear.

To conclude brand context, it is important to note that in order to properly monitor the

context of your brand, surveys of key stakeholders should be held at least yearly.

Brand construction. Brand construction describes how the brand is positioned in

accordance to customer and stakeholder value. Knox and Bickerton (2003) state that brand

construction should be developed from an understanding of the key stakeholders’ value

drivers. Key stakeholders would include customers, users, employees, and potential

employees. Other stakeholders could include the press, the government, and non-government

organizations (NGOs).

Brand confirmation . Brand confirmation is the way the brand is articulated to the

rest of the organization and all of its audiences. It will be important to work with members

throughout the organization to develop agreed statements and language that best describe the

brand position. This broad-based involvement should help to gain the commitment of the

organization to a common message.

Brand consistency. Brand consistency describes delivering clarity to all stakeholders

through its communication channels. Once the common language and message set forth in

the brand confirmation stage is determined, it is important to communicate consistently


through all channels, be they formal or informal. Knox and Bickerton (2003) suggest

creating a measurement tool upon which all corporate communication is measured.

Brand continuity . Brand continuity is the alignment of business processes with the

corporate brand. In order to achieve brand continuity it is important that everything the

business says, does, and communicates has a consistent "look and feel". To do this all

business processes that help deliver the promises to customers must be aligned through all

departments, suppliers, intermediaries, etc., as all of these pay an important role in the service

experience.

Brand conditioning. Brand conditioning is the ability to monitor and manage the

brand on a continual basis. Companies must ensure that their brand retains significance and

uniqueness as it relates to the values of their customers and other stakeholders. Knox and

Bickerton (2003) suggest creating a hierarchy of customer and stakeholder values and overlay

them against those of the corporate brand and ensure the company is delivering these needs.

This is important to perform on a regular basis as companies need to adapt to evolving needs

of customers and ever growing competition. It would be important for a company designing

mobile games and applications for the rural market to condition its brand against both

customers and the end users in the rural community.

Building a Brand in Rural India

Ali, Thumiki & Khan (2012) show that the consumer in rural India is fiercely brand loyal. It

is therefore important to build a strong brand. Seshadri (2005) lists five attributes that he

believes must be built into your brand if you are to be successful in rural India. These are

build customization, build empathy/relevance, build recognition, build word-of-mouth, and

build access.


Build customization. Many companies make the mistake of making available to the

rural market the same mobile games and applications that have a high usage rate in the urban

markets. If they do modify the game or application, they often simply strip down some of the

frills and reformat for a smaller screen. Similarly, many companies treat the rural consumer

as a single, homogenous market. There is considerable diversity within the regions that must

also be considered. Customer mobile games and applications must be developed that deliver

experiences tailored to their specific needs, values, and preferences while overcoming the

challenges unique to the rural environment.

In order to do so, the following challenges will need to be addressed:

• Language - A key challenge to overcome is language. The first 100 million users in

India are English-speaking users. In order to go forward companies must create more

vernacular content. Sapre (2008) and the team from Nokia replaced words with

pictures whenever possible.

• Data – Many of the current applications and games use a relatively large amount of

data. While data rates are expected to fall in the future, many of the applications that

make up the smartphone experience will still be too data heavy. It is crucial that

mobile applications for the rural market use as little bandwidth as possible.

• Connectivity- Connectivity also remains an issue in many parts of rural India.

Applications must also be designed to work whether or not they are connected to the

network.

• Pricing – Despite the growing interest in mobile games and applications, consumers

are still inhibited by price. Comviva (2009) found that the average cost per game

download in India is roughly Rs. 50. However, they also found that the majority of

prepaid mobile customers keep a balance of between Rs. 10 and Rs. 30. To be


successful, companies must come up with better pricing models. For example,

session-based use would allow the user a limited number of sessions with the game or

application for a lesser price. Subscription pricing is another option. In this model,

the user pays a small monthly fee to continue using the application. Finally, as we

will discuss in the build access section, bundling mobile applications and games with

the telecom service is also an option.

Build “word-of-mouth”. It is important to build word-of-mouth of your brand. In

rural communities, very strong homogeneous bonds are formed. Rural consumers are

therefore largely influenced by family and friends within the village. It is important to

identify the proper groups to build strong word-of-mouth.

For mobile applications the village youth are vitally important as opinion leaders and

demand generators. Sapre (2008) found that children have significant access to their parent’s

phone and often help with technical tasks. Rural children are also getting more and more

access to technology in the classroom. The Aakash is an inexpensive tablet aimed

specifically at the rural student community. Firstpost (2013) recently reported that 150,000

rural students in Punhab will receive Aakash tablets. Children can and many will bring

awareness to their parents of the available technologies as well as help them to understand

how to use it.

Another excellent way of generating word-of-mouth is through partnering with well-

trusted NGOs and governmental organizations. Lifebuoy did this successfully when it

teamed up with the Government of India and UNICEF in a campaign to promote hand

washing to change hygiene behavior to prevent certain disease. Additionally, a press release

in The Wall Street Journal (2013) reports that Merck and Safe Water Network, an NGO co-


founded in 2006 by actor and philanthropist Paul Newman, are using tablet-based mobile

applications to build awareness of and demand for safe water in rural communities.

Figure3: Safe Water Network's station operator helps consumers in the village of

Thodellagudem experience Tablet messaging. (PR News Foto, 2013).

Other excellent groups to target to generate positive word-of-mouth are religious

groups and women. Rajan (2010) also recommends building strong word-of-mouth for a

brand through executing customized events within the village revolving around the core

message of a brand. A publisher of mobile games might have a puppet show for the children

using the main characters in their game and then have a competition afterwards.

Build empathy/relevance. For the design of mobile games and applications,

building empathy and relevance means developing applications that delivering experiences

tailored to the needs, values, and preferences of the rural consumer. In other words, it needs

to be rooted in their culture. The brand must be seen as delivering value to the community;

whether through entertainment, knowledge and education, or simply making their life easier.

An example of such applications could be mobile games developed based upon India’s Rural

Olympics formerly known as Kila Raipur Sports Festival. Unique mobile games based upon


events such as getting run over by a tractor, seeing how many bricks you can pick up with

your teeth, or the bullock cart race could be more relevant to the rural community than Angry

Birds.

Build recognition. Seshadri (2005) discusses two key issues the must be addressed

when building brand recognition in rural India. The first is rip-off or counterfeit brands and

the other is the needs to physically demonstrate the use of the product. Counterfeit brands are

those that attempt to leverage the brand cognition of another brand by duplicating many of

the same features and designs of that brand. Applications with similar names and similar

logos are easily confused. In order to minimize this risk, it is advised that when building

brands for the rural market that companies include the brand name in the local language or

local symbolism. In addition to this frequent communications to draw the consumer’s

attention to the brand are also advised to minimize these fake encounters.

The second challenge of demonstrating the proper use of the product can be addressed

by demonstration and training of local experts. Demonstrations help to bring awareness of

the brand by arousing the villager’s interest and bringing to his attention the value of your

product. Seshadri (2005) uses the story of CavinKare to highlight this challenge.

CavinKare found that though their shampoos were getting encouraging trials from

the rural consumers, the penetration levels were extremely low. Many rural

consumers had no clue how to use a shampoo. CavinKare’s team traveled extensively

in rural pockets, caught hold of school boys to demonstrate how to lather, wash and

comb hair! This exercise had a significant impact and made the rural consumer

comfortable with the concept of using a shampoo.

Sapre (2008) found that most mobile users learned to use their device from friends

and family. It is reasonable to assume that the same would hold true for mobile applications


and games. Here again, due to their more frequent interactions with technology, the youth of

the village are excellent sources of local trainers. Referencing back to building

customization, it is also critical that development standards be developed so that terminology

and interactions is consistent across all applications. This will aid in the transfer of

knowledge from one application to the next.

In a recent study, Accenture (2013) surveyed executives at Indian firms as to the most

common marketing initiatives they were undertaking to promote their brand and their

offerings in rural India. The results are summarized in the table below.

Figure 4: Marketing and communication initiatives for promoting offerings in rural India.

Accenture (2013).

Build access. The best brand building in the world is useless if your target market

cannot access your product or service. Accenture (2013) states that 75% of executives

believe that collaborative channels will become a dominant force in the future. However,

only 4 % say their organizations are doing so. Regardless, a multi-pronged approach to reach

rural consumers is recommended.


An obvious choice for collaboration would be the mobile carriers. Increased

competition among various telecom operators, are driving mobile telecom operators in India

toward providing more value added services such as mobile games and applications.

Downloading an application to a mobile device can be as easy as sending a text message that

returns a link to the application. Many rural-Indian mobile users have already engaged in

some form of commerce on mobile devices such as downloading ringtones, music, or

wallpapers. Therefore, for many rural-Indian mobile users, there is already a trust factor.

However, as the mobile carriers have the billing right with the customers; it is important to

ensure the proper revenue share is determined.

Another distribution opportunity is the direct download of the game or application to

the user’s mobile device. Obviously, this is more labor intensive. Not only does it require

someone to load the application to the device, it must also consider different types of phones

and data connections. If this route is chosen, excellent choices to do this would be through

mobile-phone showrooms and shops. A study by Manglik, Ranjan, Narsalay, & Falk (2010),

shows that 64% of rural customers prefer to buy their mobile device at a shop in the city, and

another 26% prefer to buy them in a shop in a nearby town or village. Rural customers also

prefer to go to exclusive mobile phone showrooms to buy their devices. These showrooms

also offer excellent opportunities to advertise the mobile game and applications.

Other important distribution points for physical delivery of mobile games and

applications that cannot be overlooked are the haats and the melas. Haats are temporary

markets that are held on average once a week in a location central to a large number of

villages. Due to this fact, haats offer an opportunity to meet with a larger number of

consumers. Melas are similar to haats, but are scheduled less regularly and many have


themes. As with haats, they are an excellent opportunity to meet with a larger number of

consumers.

Conclusion

Rural Internet use is on the rise. The Internet and Mobile Association of India

(IAMAI) and Indian Market Research Bureau International (IMRB) (2012) reported that rural

Internet users increased from 24 million in December 2011 to 38 million at the end of

December 2012; an increase in rural Internet user of 58%. Due to the lack of personal

computers, many of the rural users have leapfrogged that technology and are accessing the

Internet through their mobile phones. At the end of June 2012, there were 3.6 million rural

mobile Internet users. This is an increase of 720% in the last two years. Daga, et al (2010)

predict that by 2015, the number of Internet users will increase to more than 350 million with

more than half of those accessing the Web via mobile phones.

As demand for mobile Internet grows, so will demand for mobile games and

applications. However, research has shown that mobile game and application design that

works in the Western world and even in urban Indian may not always work best in the Indian

rural setting. Therefore, in order to take advantage of the growing mobile-Internet population

in rural India, custom applications must be developed keeping the rural user in mind. This

paper has highlighted a number of the key challenges businesses will face when creating

applications for rural consumers. It also walked through the steps necessary to build a brand

around this service and how the games and applications can be marketed to a rural consumer.

In conclusion, market research demonstrates a company focused on creating mobile

applications and games for the rural Indian population would fill a gap in the mobile

development arena. The need for custom applications creates an opportunity for

entrepreneurs and entrepreneurial companies that are ready to embrace the technological


innovations of this century and have a strong desire to understand the rich cultural population

of rural India.


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