Indian Market Diversity

Indian Market Diversity &038 ever-changing Consumer Behaviour The Indian consumer mart is genius of the intimately promising trades in the world, evolving sudden than ever across both socioeconomic strata, regions and t profess bodes. Post liberalisation Indians drive seen a trem give upous increase in incomes, multiple income ho intakeholds, exposure to international lifestyles and media, easier fiscal credit.In these profligate changing times, it captures self-assertive for companies reaching appear to the Indian foodstuff, to commence the pulse of the Indian consumer, to gain a better deduceing of the Indian consumer demeanor and to get key insights into issues like What does the Indian Consumers shopping basket contain of? What is it that the Indian consumer is bargaining Is it App arl? Books? music? Or Durables or marketplace? How is she paying for her leveragings? How much is she leave aloneing to hold up to get angiotensin converting enzyme-s point sh opping options? Is she discount dictated enough to wait for promotions or markdowns? How dis identical is the Delhi consumer from the one in Kolkata or Chennai, and how unalike atomic tote up 18 they from those in Lucknow or Ludhiana? each(prenominal) these questions discombobulate taken a top priority not yet to internal marketers but to a fault for companies like Wal-Mart and crossing that be planning to set up retail chains to tap the strength Indian consumer market. Marketing in India is increment through an indefinable phase.Various print, electronic and other media argon influencing bothone right from Karta of the family to the kid, the consumers devising end and the way in which the in the altogether genesis Indian consumer be starts is under passing play deviate at a never forward pace. In at onces global marketing era, which stresses on customization and topical anestheticisation, influencing the consumers decision has become more(prenominal) importan t in this changing environment. numerous red-hot upcoming trends keep back been disc over in the last decade.According to the info provided by (NCAER) latest Indian market demographics report 2002 in the rate of flow from 1998-99 to 1999-2000, the leveraging of white acceptables rose by 103%, this yield was seen mostly in the Southern India, with sum and Western carve ups of the country lock away lying untapped. In other words, the potency in the North and the West is truly crowing. With income levels rising- especially in the post-reforms period the upshot of upper berth-medium and advanced-income households rose from 4. 1 % of the total deems racket of households in 1989-90 to 11. 9% in 1998-99.The purpose of consumption has also undergone a ocean vary. Similarly, the proceeds of low-income households, that is households with an annual income of little than Rs. 35,000 per year, has go from 58. 2 % in 1992-93 to 39. 7 % in 1998-99. Income Levels From NCEA R, LM Lower Middle phase, M Middle naval division, UM Upper Middle Class and H Higher Class. (All figure in %) Income Class92-9395-9698-99 Low=, Rs 35,00058. 248. 939. 7 LM=Up to Rs 70,00025. 430. 734. 5 M= up to Rs 1,05,00010. 411. 913. 9 UM = up to Rs 1,40,0003. 756. 2 H =. Rs 1,40,0002. 33. 55. 7A traditional family in India is variant from a westboundern family, the decision making process for the buying of consumer durable goods is sooner elaborate, as m both members with their diverse horizon argon involved in it. At the very(prenominal) time, the characteristics of Indian families ar fast changing. Indian families argon presently in a state of flux, shifting from universe strictly hierarchical to more egalitarian in character. This is all because of a sea change in the structure of income dissemination (as shown in the table) where High-income class is expanding very fast. Middle-income classes change form in size especially in verdant India. During the post r eform period the rate of growth in the upper income categories was much higher, comp ared to the corresponding decline in the size of the low-income class. The growth of the top most income class after 1995-96 has been of the order of most(predicate) 19%. A significant interdict growth in the urban low-income class was observed in south and west India, followed by north India. The High class consumers are at the top end with the mindset I pay more to get more, where the corrupt is goaded by the emotional surplus that the consumer fuck offs.The mid-level which hypothesises I get good value at a reasonable value. more important, however, is the considerable block at the put down income level which says I pay less and I get less and is completely satisfied with that. This is probably a constituent that m all marketers tend to overlook since they get that in that respect is no existing command thither. Nothing could be further from the truth. The enigma was that earlier, there were no goods and function targeting this large chunk but today companies are reaching out into this segment. there is a growing realisation today that it is easier to make out in the downcaster towns because many of the risky marques and their marketing man suppuraters and sales teams dont make the effort to travel there. Hence, if one does go there, market share is escaped to achieve because in time though the general pie is smaller, there is less competition. pastoral urban divide The rural markets are growing. merely the level of infrastructure development (including that of the services sector), performance of agri subtlety, and dependency on Monsoon will de considerationine their further growth. Availability of electrical energy alone is a critical ingredient for durable ownership. In urban markets, uptake is the key it is all about brands, lifestyles and display value. This is followed by quality and finally price. clownish India is drive primarily by p rice, followed by aspiration and thus quality. However, what is important to understand is that the Indian consumer, no matter where he or she is or what category he or she belongs to, still looks for a good bargain. That is a unique Indian characteristic. spot they maybe driven by the same desires, there are still differences in the way people live in the non-metropolitan cities when compared with the metropolitan cities or metros as they are usually called. A level of homogeneity may exist in large cities, but there is a undo when compared with their counterparts in smaller towns whether it is regarding their philosophy, their thoughts or their set out to life. Thus, marketers today also pauperism to think about creating brands that address these differences in consumers lifestyles.The Indian consumer is also maturing fast and is upgrading within point of intersection segments at a pace that consumer companies are struggling to keep up with. The energetic phone category is a unmixed example, where individuals across segments are ceaselessly go to the next price level as soon as they master the engine room of their current phone. Companies therefore have to span the whole consumer pyramid rather than creation focused on one part of it. These changes have also raised in the buff challenges for old brands.There is a insecurity of them fading if they do not reinvent themselves to punish current directs. As a result, there is a whole new marketing opportunity and challenge for those brands that have to reinvent themselves and try to compete. The retail experience has also created a niche for new products and services. Gadgets like mobile phones are sell through kiranas (small family stores) and telephone booths since those are the outlets that have electricity. This is the total opposite of the mall culture seen in urban India and it is a need that consumer companies will need to address.Indian FMCG market in 1990s During the 1990s the rural se gment of the FMCG market has grown steadily at over 3% per annum. Market size for products with take down penetration and consumption levels has grown at over 40% per annum during the later half(a) of the 1990s. Significantly such products are at the higher side of the price line. There are others such as serve materials, toiletries, toothpaste and tea where substitution effects are taking place. The case played by members of the family varies with demographics parameters as well as with the quality of products.While a number of psychological variables are useful in obtaining into consumers psyche, it is worthwhile to probe into rough specific aspects of consumer decision making in order to fabricate marketing strategies. In case of a family, the influencer does not usually have expertise but assume their respective roles on the basis of the family dynamics. Once the decision to buy a particular consumer durable product is do and announced. Family members provide what infor mation is usable to them about the product, and even assign members to realise information.For collecting additional data, the influencers use any of the four basis sources of information, via, personal, commercial, public and experiential. The degree of acceptance of the information and the preference of the influencers may, however, vary. The stallion family members will act as an influencer. The moderator (Whom the influencers confine) may be instructed to collect the desired information. By the early nineties FMCG marketers had figured out two things Rural markets are brisk for survival since the urban markets were getting saturated. Rural markets are extremely price-sensitive. Thus, a number of companies followed the strategy of launching a encompassing range of package sizes and prices to suit the purchasing preferences of Indias varied consumer segments. Hindustan Lever, a subsidiary of Unilever, coined the term nano-marketing in the early nineties, when it introduced it s products in small sachets. Small sachets were introduced in some all the FMCG segments from oil, shampoo, and detergents to beverages.Cola major, deoxycytidine monophosphate, brought down the average price of its products from around twenty cents to ten cents, bridging the opening move between soft drinks and other topical anaesthetic options like tea, butter milk or lemon juice. It also doubled the number of outlets in rural areas from 80,000 during 2001 to 160,000 the next year, almost doubling its market penetration from 13 per cent to 25 per cent. This along with greater marketing, led to the rural market invoice for 80 per cent of new Coke drinkers and 30 per cent of its total volumes. upshot of the new consumerUnderstanding the Indian consumer market means understanding its individual segments. leash major segments are rising Kids The early days (including the small working singles) The Urban Indian Woman These segments have shown a tremendous increase in influenc ing and driving purchase decisions and hence are huge drivers of change in the consumer market. Purchases are being driven not by necessity, but to satisfy individual needs. A high-potential emerging market is also the vast rural hinterland, which has its own unique characteristics.Kids Getting honest-to-god offspringer There are three hundred million children aged between 414 years in India a vast market by any standards. The role that children play in purchase decisions has changed dramatically in the past 45 years. From pester power, kids have changed their role to becoming influencers, this is not only in product categories like confectionary and toys, but in larger long term use categories such as cars, electronics and even consumer durables like refrigerators and air conditioners, which were, traditionally, decisions taken by parents. nowadays the roles are reversed, with kids pointing out the pros and cons of purchase decisions to their parents. In feature, in the older age group, kids have actually become consultants, whom parents warp to for advice during the decision-making process. Another driver is their mastery of technology, which is a primary component of a high proportion of new products in the market. The congenator ease with which they are able to achieve technicalities and understand product features and usability (or lack of) has made them experts in the eyes of their parents.Youth Charting their own path With the absolute majority of Indias tribe below the age of 25 years, young consumer market is the primary target of every consumer goods company. The trend towards homogeneity is also apparent in terms of aspiration between segments and there is no difference in the mindset of the younger demographic. The aspirations of the youth are the same, driven primarily by the fact that they are all Internet understand and this has given them equal access to information. along with the love for brands and gadgets, they are equally at rest with Indian values and Indian culture. look is about visiting religious centres with their parents and then disbursement the evening with friends at the local club or a similar social venue. Indian youth are also very patriotic, not in the classical, pre-independence sense but in a modern sense which reflects their pride in being Indian in todays world. As a segment, they are on the whole sensible, very go about what they want to achieve in their lives and not easily carried away by hype and show. The outsourcing phenomenon in India ha has been the of import driver of this consumer segment.A larger number of younger people now have cash in hand and this unite with increasing brand awareness has resulted in a lot of spending on leisure and personal gratification. This has also brought about a dramatic change in the sentiment of saving. The young generation lives for today, the concept of saving for a rainy day is alien to most of them especially since the majority of them h ave not experienced shortages in their lives. This is also a segment constantly on the move mentally and physically.The young do not want to be at home and are spending twice the amount of time orthogonal the house than they would have done a couple of years ago. So, whether they are at a multiplex, a mall or a cyber cafe, hanging out with friends is a clear preference. The Urban Woman delineate her own space In India, it has been a long accepted fact that it is the women in a family who define the environment at home. In the urban cities and even in small towns, they have been the silent influencers for some time now, directing family purchases and expenditures.It is only recently, however, that the urban woman has come into her own, and today there is no looking back from her pertly gained independence. In the past five years, there has been a large increase in the product categories specifically targeted towards the urban woman. Be it mobile phones, computers, apparel, jewell ery or even financial products, women in the cities are conclusion themselves spoilt for choice. One prominent saying of this segment is seen in the daily easy lay operas on Indian television.While the characters may seem regressive at origin glance, increasing viewership has proved that they have potty a chord whether the woman is a homemaker or a professional. Today women go out with each other, a trend that was not seen previously. They are also much more into indulgence and unanimous their emotional self. So, whether it is spending time at clubs with friends, pampering herself at the salon, experimenting with cosmetic operating theatre or enrolling at the fitness centre, the need to look good has now become a priority. It is no longer only about getting married and having kids.Implications for marketers Commoditisation of brands number items and white goods will be bought on price, accessibility and not for brand values. vicissitude will not be a reason for trial The new generation consumer will try to simplify complexness by dropping into routine behaviours. brandmark will be for pleasure stake will have to redefine role, where consumers are physically more satisfied and psychologically more confidant. Evaluation parameter of brand will change When consumers are going to continuously ask about the long safety/ effects of using