We Are Like That

Only Understanding The Logic

of Consumer India
Rama Bijapurkar

Project by (e-MBA : Marketing

Zubin Daver (13088)
Dipesh Sanspara (13089)

About the Author

One of Indias most respected thought leaders on
market strategy and consumer behavior.
Acclaimed for her unique 360 degree insight on
consumers and creative thinking on new products and
new business models for emerging markets.
Consultant for an impressive list of companies from
established Fortune 500 corporations to interesting
Indian start-ups.
Independent director on the boards of some of Indias
leading companies and visiting faculty at the Indian
Institute of Management, Ahmedabad.

Changing Indian Scenario

Future growth market in the world
Change after 1991
Number of international brands on a rise
GDP and National Income
Changing preferences

Lessons for New Entrants

Study the market very careful
Existence markets have robust
products
Emerging markets not same as
developing markets

Do you know India?

Marketers question
Truth about India
Schizophrenic India
Existence of several sectors
Strategy in India

Why India then?

Guaranteed growth in future
Young people and new markets
Low country risk
Strong institutions
Welcoming the change
China versus India

Goldman Sachs said

The worlds largest economies may

not be the worlds richest economies.
Being individually poor but
collectively rich differentiates
emerging market economies from
developed ones.

Understanding the Indian

Market
There are 3 broad segments in the Indian market premium, popular and discount.
Unorganized Market versus Organized Market
Initial Assumption
FMCG Market
Paradigm of premium is for rich, popular is for
middle income group, discount is for poor.
NCAER has clustered Consumer India into 5 types
of consumer groups: the rich, the consuming
class, the climbers, the aspirants and the
destitute.

Consumer Groups

Purchasing Power of Indian

Consumers
Forecast from 2005-6 to 2009-10:
Number of rich households
Rural Middle Income Group
Population growth rate

My Target for Schizophrenic

India
Existence of 5 consumer groups: the
rich, the consuming class, the
climbers, the aspirants and the
destitute.
Urban India versus Rural India
So many states and so many
languages
5 economies: agriculture,
The good news is that there is plenty of choice for
manufacturing,creating
government,
services,
IT.
competitive
advantage
by defining my target for India

Demographics, psychographic
determinants of consumption
SEC A1-Tip of India iceberg
SEC A,B- Prospering and spending
SEC C+R1- Middle-income group
SEC D+E1+R2- Mass market
SEC E2+R3- Poor but consuming
The self employed as a distinct consumer class

Demographics, psychographic
determinants of consumption
Consumer India can be divided into:
The Resigned
Strivers
Mainstreamers
Aspirers
The Successful

Predicting Change in Indian Consumers

DNA of Indian society: this as well as

that

Battle between tradition and

modernity was buried

Changing Cultural Foundations

Increased bargaining power of the poor
Strengthening the poor
Modernity is nothing but modified tradition
Range of aspirations are socially legitimate
Child-centricity

Changes in the Cultural Foundations will

impact in the following way:

Indian consumers are far more ok with

the do good products and it will be
some time before the feel good
products find their place in his/her
purchase priorities.

Three Big Consumer Segments

Rise of generation next - Youth
The new emerging Indian woman
Rural India

Bottom of the Pyramid Consumers

Size of the BOP market is 650 million
people
Individually earn less than a dollar a day
Collectively account for 30% of the national
income, a little over 33% of consumption
expenditure and a little over 20% of Indias
savings
The BOP is rising fast in terms of absolute
required amount of income earned
Hunger for Knowledge and information is
extreme

Understanding the bottom of

the pyramid Consumer
Characteristics of the BOP consumer:
Poor but not backward
They value all kinds of productivity
devices that help them earn more
Poor consumers do complicated
value processing
Poor consumers are technology
embracers

So finally what India wants?

India requires the creation of new solutions,
rather than the transplanting of strategies
from other markets. It requires companies
to use their core competence to the best
limit, and apply it to new markets. This
will help to over problems of India by
giving solutions made for India.

Thank you