indian consumers

46
FORETHOUGHT CULTURE AND MARKETING THE DYNAMIC INDIAN CONSUMER HOW BIG IS TALL Presented by: Achintya PR Avishek Bhattacharya Divya Marwah Mukul Attri Nayana Unni Prashant Patro Siddharth Modak

Upload: prasant-patro

Post on 17-Jan-2015

474 views

Category:

Business


0 download

DESCRIPTION

 

TRANSCRIPT

Page 1: Indian Consumers

FORETHOUGHT CULTURE AND MARKETING

THE DYNAMIC INDIAN CONSUMERHOW BIG IS TALL

Presented by:Achintya PRAvishek BhattacharyaDivya MarwahMukul AttriNayana UnniPrashant PatroSiddharth Modak

Page 2: Indian Consumers

Consumer• An individual who buys products or services for personal use

and not for manufacture or resale.

• A consumer is someone who can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements.

• Whenever someone goes to a store and purchases a toy, shirt, beverage, or anything else, they are making that decision as a consumer.

Page 3: Indian Consumers

Parameter Traditional Modern

Source of Income Single source Multiple sources

Disposable Income Less More

Choice Less product choices Plenty of choices

Product awareness Relatively low Sound knowledge

Spending pattern Preferred saving Prefer to spend

Shopping pattern Functional Lifestyle & comfort

Technology Low need and availability

Habituated

Changing Consumer Trends

Page 4: Indian Consumers

Why this transition?

• Pro-growth Demographics• Economic Growth• Socio-cultural Impacts• Aspiration for a better life• Brand consciousness• Impact of technology

Page 5: Indian Consumers

Pro-growth Demographics

• Youth population(20-40 yrs) is more than 54%(Increase in healthcare services resulted in declining death rate and rise in life expectancy)

• Increased migration from rural to urban areas( approx 32%)(workforce moving to urban areas in search of better education, healthcare, lifestyle and opportunities)

• Cultural Transitions(Retain the core but flexible to change, Amalgamation of New and Old)

Page 6: Indian Consumers

Economic Growth

• GDP- growing at an average rate of 6% for past five years

• Transition:

• Per capita income: Rs 5,729 per month, increased by 11.7% compared to previous fiscal.

• Increasing disposable income. (estimated to be $ 1700 p.a. by 2014)

• Av. Industrial Growth Rate is 3.7% last year, showing increased consumption.

Lower Income Group (18%)

Middle Income Group(56%)

Higher Income Group(26%)

Page 7: Indian Consumers

Socio-cultural Impacts

• Education• Urbanization• Women employment• Nuclear family• Peer influence

Page 8: Indian Consumers

Aspiration for a better life

Rise in income level

Rise in living standard

Higher purchasing power

Higher aspirations for luxury and lifestyle

Rising demand for goods and services

Page 9: Indian Consumers

Brand consciousness

• Youth deviating from local products to branded products.

• Customers like to be associated with a brand.

• Shift in attitude: from need based to choice based.

• Shift from unorganized retailing to organized retailing.

Page 10: Indian Consumers

Impact of technology

• Rising level of dependency on technology.• Impact of television.• Changing mediums of promotion and

distribution• 24X7 shopping through e-commerce.• Call Centre Boomers:

(being set up even at rural places, provide enough employment opportunities)

Page 11: Indian Consumers

11

Changing trends & Options

Page 12: Indian Consumers

Different products for different consumers

Page 13: Indian Consumers

Technological advancements

Page 14: Indian Consumers

Technological advancements

Page 15: Indian Consumers

Organized Marketing

Page 16: Indian Consumers

16

Social gatherings and party culture

Page 17: Indian Consumers

Changing Habits

Page 18: Indian Consumers

Culture–valueintegration roadmap

forbrand building in

India

Page 19: Indian Consumers

Cultural Dimensions

• Tailor-made communication in tune with regional language

• Integrate within marketing mix to get connected.

• Anticipate and touch through product and promotion

1. Languages

2. Symbols and signs

3. Rituals and customs

4. Traditions

Page 20: Indian Consumers

Value Identification • Address individual from the

backdrop of the family• Bank upon deep rooted societal

values for quick connection• Link individual achievement

with group cohesiveness• Appreciate age and role of

patriarch• Create your message on

positive sides of life• May link with brand building

activity for unique positioning

1. Individual and Family

2. Society through conformity

3. Success and growth

4. Age and youthfulness

5. Happiness and adaptability

6. Religion and spirituality

Page 21: Indian Consumers

Eureka Forbes identified the sentiments of Indian consumers attached with water,

while promoting Aquaguard.

Page 22: Indian Consumers

EXAMPLES• Mc Donald projected itself into Indian market

by valuing consumer’s eating habits and sustained itself by valuing Indian purchasing power.

• Cadbury identified the ritual of gifting sweets to people during festivals and now enjoying a vast customer base.

• General Mills (Pillsbury Atta) targeted Indian mothers by showcasing the new behavioral changes occurring in their children.

Page 23: Indian Consumers

Visa International used the “Indian custom of freeing a bird for wishing luck to dear ones” as its marketing

strategy, while entering to Indian Market

Page 24: Indian Consumers

Targeting Women Customers

Page 25: Indian Consumers

• Femina, magazine for women, communicated the core value of India i.e. “…know nothing can stop me from trying and breaking chains and flying…”

• Nestle got positive feedback from customer by launching “Maggi vegetable Atta noodles” working on the platform of Indian definition of health “Health is wealth”.

• Horlicks Mother- prioritizing families health,Moov Mother- ensures happiness of family in turn gets recharged by Moov.

• Big Bazaar- projects people and happiness with catchline like “Khushiyon se bhari jholi”

Page 26: Indian Consumers

How Big Is “Tall”

Page 27: Indian Consumers

Buying Decision Process – Five Stage Model

1.

•Need Recognition And Problem Awareness

2.

•Information Search

3.

•Evaluation Of Alternatives

4.

•Purchase

5.

•Post-Purchase Evaluation

Page 28: Indian Consumers

PERCEPTION

Page 29: Indian Consumers

Selective Attention

• Selective Attention is the phenomenon of being able to focus one's attention on a particular stimulus while filtering out a range of other stimuli.

Page 30: Indian Consumers

Selective Retention

• Selective retention, is the process when people more accurately remember messages that are closer to their interests, values and beliefs, than those that are in contrast with their values and beliefs, selecting what to keep in the memory, narrowing the informational flow.

Page 31: Indian Consumers

Selective Distortion

• Selective distortion is a term that refers to the tendency of people to interpret information in a way that will support what they already believe.

Page 32: Indian Consumers

Examples Of Selective Distortion

• In US, Coors changed its label from “Banquet Beer” to “Original Draft”, consumers claimed the taste had changed even though the formulation had not.

• The case cites the example of Rotarians, who were given same portions under the labels “Medium” and “Large”. Those who received “Medium” meals ate more.

Page 33: Indian Consumers

Framing

• Decision framing is a manner in which choices are presented to and seen by a decision maker

• Consumers can be given a ‘nudge’ via some small features in the environment that attracts attention and alters behaviour

• Mental accounting refers to the way consumers code, categorise and evaluate final outcomes of choices

Page 34: Indian Consumers

Principles of Mental Accounting

• According to Richard Thaler, mental accounting is based on a set of core principles:-

1. Consumers tend to segregate gains

2. Consumers tend to integrate losses

3. Consumers tend to integrate smaller losses with larger gains

4. Consumers tend to segregate small gains from large losses

Page 35: Indian Consumers

Some Examples

Page 36: Indian Consumers

Toyota - Lexus

• Toyota did not have a presence in the luxury car segment, so it introduced a new line of cars under the Lexus brand

Page 37: Indian Consumers

Areas Of Concern

• In case of packaged food products, nutritional facts are given on the packaging are standard for one serving.

• But due to variations in the actual serving size offered, consumers are often left with incorrect information

Page 38: Indian Consumers

SIZE ‘DOES’ MATTER

• Companies give innovative names to their products to create a perception of offering more value for money

• Names such as Super Size, Jumbo, Whopper and Petite etc. create confusion in consumer’s mind, which is then used by the companies to sell the products

Page 39: Indian Consumers
Page 40: Indian Consumers

Areas of confusion

• In case of packaged food products, nutritional facts are given on the packaging are standard for one serving.

• But due to variations in the actual serving size offered, consumers are often left with incorrect information

Page 41: Indian Consumers

• From the case study, we observe that when club members were given the same quantity of food under different serving labels, Medium and Large, the ones who had Medium labelled meals ate more

Page 42: Indian Consumers

Starbucks Example

• Instead of offering a small, medium or large serving, Starbucks has named its drinks as Tall, Grande and Venti

• Can be taken up as an example of good branding• It fits into Starbucks selling itself as a lifestyle

brand• Naming caters to a sense of luxury. For e.g.

having a Grande Latte Half-Caf is more glamorous than a having just a Regular Decaf coffee

Page 43: Indian Consumers

Misleading Product Claims

False health benefit claims by Pom Wonderful that taking in pomegranate

juice reduces the risk of cancer. Product pushers have inflated the medical

benefits of their products to woo the self-conscious . For instance, here are

three recent examples of egregiously misleading health and fitness ads.

Reebok's EasyTone Shoes: Reebok ran a series of ads on its easy tone

and RunTone shoes featuring lithe and toned models professing the benefits

of the footwear's special toning soles. It claimed that the muscles would be

toned upto 11 percent more than when you wear regular sneakers. The LA

Times reported that an FTC investigation found the only thing that EasyTone

shoes actually did was make it uncomfortable to walk. As a result, Reebok

was forced to refund more than $25 million in purchases

Page 44: Indian Consumers

Misleading Product Claims

Airborne Herbal Supplement: The result of a second grade

teacher's research, the herbal supplement became a national

phenomenon after it appeared to finally provide the

cure/prevention for the common cold that science had yet to

figure out.

Dannon Activia Yoghurt: In 2009, a federal judge found that

Dannon's claims that a daily serving of Activia would relieve

irregularity and help expedite the digestion process were totally

unsubstantiated. It turned out the company had been charging

a 30% premium on the "probiotic" yogurts over other brands

when in reality the contents in the cups were all the same.

Page 45: Indian Consumers

The Bottom Line

Looking at the amount of misleading advertisements that pervade

modern media, consumers should be wary any time they hear that

a product is "scientifically proven" to work. Unless the advertiser

specifically states that its claims have been validated by the FDA,

there's no reason to trust any purported medical benefits of any

piece of merchandise, whether it's shoes or cold medicine. Often,

these health and fitness products are just modern interpretations

of the snake oil that bankrupted early settlers in the Wild West.

Page 46: Indian Consumers

Thank you!!!!!