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Who are the countries Citizen? What are the jobs available for the people? Who among the people earn less than the minimum wage? Which area are the poorest and has the inefficient way of delivering basic service to the people? What is the crime rate of certain big City?
CONTD..
The Indian rural market has been growing at 34% per annum, adding more than 1million new consumers every year and now accounts for close to 50% of the volume consumption of fastmoving consumer goods (FMCG) in India. The market size of the fast moving consumer goods sector is projected to be more than double to US$ 23.25 billion by 2010 from the present US$ 11.16 billion. As a result, it is becoming an important market place for fast moving consumer goods as well as consumer durables.
DEMOGRAPHICS OF INDIA
Size Of Population Population of India is around 1.15bn people in which majority of them lived in the Rural areas. Literacy rate Literacy and education: According to the Census 2010, the average literacy rate is 70percent. There is a rise in growth of literacy rate since 1951 and it has increased substantially in the last decade.
Indian consumers are not a homogeneous lot. They are marked by great diversity. It is this diversity that strikes us first when we look at Indian consumers that is diversity in religion, language, culture, tradition, social customs, and dress and food habits.
RELIGIOUS DIVERSITY
The one billion people of India belong to seven different religious groups" Hindus, Muslims, Christians, Sikhs, Buddhists, Jains and Zoroastrians. In addition, there are other persuasions and there are sects, sub-sects, castes and sub-castes. Each religion has its own hierarchic structure, concretized through centuries of practices. Each caste has its own customs established over generations.
LINGUISTIC DIVERSITY
Sixteen languages have been specified in the Constitution of India as national languages. In addition, there are hundreds of dialects. In several places, many amalgams of languages have been formed as a result of shifting populations.
Almost every state, or religious community, has its own traditional styles of dress.
Food Habits also differs from place to place and from Religion to Religion
CLIMBERS (US$500-1000) 66million * Have atleast one major durable (mixer, sewing machine/tv) ASPIRANTS (US$350-500) * Have bicycles, radios and fans DESTITUTES (Less than US$350) * Not buying
78 million
32million 24million
33 million 17million
Indian consumers Destitutes Aspirants Climbers Consuming class Very rich 0 20 40 60 80 million households
Indian consumer buying behavior to a large extent has a western influence. Foreign brands have gained wide consumer acceptance in India. "One household, multiple products: two cars is no longer a luxury but a practical necessity for working couples; two TVs in the house is recognition of the fact that different family members have different interests
With the availability of low-interest finance schemes, price is increasingly becoming a smaller factor in a purchase decision in a whole range of consumer durables also. Consumers jump steps as they enter: today the line between entry-level and upgraded products is disappearing. The newer generation is willing to pay more if he/she is convinced or he/she is getting better value for the higher price. Upgrade is part of life. Today the average life of a mobile is 12 months, that of a TV three years; cars four to five years and soon even homes will be changed more frequently. Clearly durability is no longer the most desirable value.
As Indians have grown richer, they have begun to spend more on vehicles, phones, and restaurants, this is according to recent research on consumption patterns.
SEGMENTS
India has various consuming classes The young and the restless
Call Centre Boomers The Yeppies (Young Entrepreneurial Professionals) The Yippies (Young International Professionals) The raffles (Rural Affluent Farm-Folk):
Some
This group mainly comprises young people who are from relatively affluent families. Eating out, movies and occasional clubbing are an integral part of their lifestyle. Dress is invariably modern, and attire must be changed frequently
Formerly located mainly in the IT-savvy cities, call centers and other IT-Enabled Service centers are spreading to other cities and towns as well. Populated largely by youngsters out of school or college, drawing in their first incomes, and at levels unheard of earlier
entrepreneurs who have made it after the good liberalization work with multi-national companies, who are based in India but travel extensively the farmer with tax-free income spend on a wider choice of products
Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy.
It attempts to understand the buyer decision making process, both individually and in groups.
It studies characteristics of individual consumers such as demographics, psychographics and behavioral variables in an attempt to understand people's wants.
Routine Response/Programmed Behavior Limited Decision Making Extensive Decision Making Impulse buying
Buying low involvement, frequently purchased, low cost items. Examples : Soft drinks, snack foods, milk etc.
IMPULSE BUYING
No conscious planning.
The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next.
For example: Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making.
The worlds economic centre of gravity is shiftingaway from the established, wealthy economies of Europe, Japan, and North America and towards the Asia Pacific
Change in lifestyle
y From Functional to Lifestyle
Eating habits
y From traditional meals to McDonalds Happy Meal
With the availability of low-interest finance schemes, price is increasingly becoming a smaller factor in a purchase decision in a whole range of consumer durables also.
Consumers jump steps as they enter: today the line between entry-level and upgraded products is disappearing. The newer generation is willing to pay more if he is convinced he is getting better value for the higher price.
IMPORTANCE OF DURABILITY
mobile is 12 months, that of a TV three years; cars four to five years and soon even homes will be changed more frequently. Clearly durability is no longer the most desirable value.
BUYING TV
Early nineties
One, availability; two, price; and, three, picture quality
Mid-nineties,
the efficacy of an exchange scheme and the number of channels a company offered
Today
sophistication -one of the fastest growing segments of the market is high-end flat 3D LEDTVs
In the early nineties, air-conditioner manufacturers focused on institutional sales, leaving the dodgy unorganized sector, with its dirtcheap and poor quality offerings, to service households
cooled the room came sleek plastic shapes offering such features as a dust-free environment, split-room cooling, 5 star rating and so on.
Demographics
Increased discretionary incomes across wider spectrum of population, across wider geography
India s GDP (Gross Domestic Product) has touched US$1.25 trillion. The per capita figures do not reflect the realistic picture of purchasing abilities of consumer households and market potential for a foreign business enterprise because of significant differences in purchase power parities of various currencies As a result, India ranks fourth richest nation in the world, on purchase power parity terms, despite being having low per capita national income
From just 3 malls in 2000, India is all set to have more than 2000 malls. According to consultancy firm (Technopak), the industry will see $20bn of fresh investments (excluding investments in real estate) and 2,000 hypermarkets coming up within the next five years
Adulteration Under weighing and under measurement. High prices. Hoarding Selling sub-standard goods to consumers. False and duplicate items sold. Selling goods, which have reached expiry date. False or incomplete information. Skipping away from the offers promised.
CONTD
Rough behaviour from the shopkeepers. Poor or inadequate after sale service. Globalization and neo-colonialism.