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How to communicate with consumers in India
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UNDERSTANDING INDIA:
OPPORTUNITIES IN DIVERSITY
PRANESH MISRA
CHAIRMAN & MANAGING DIRECTOR, BRANDSCAPES INDIA
1
INDIA:WELCOME TO A COUNTRY THAT ADDS POPULATON OF
AN AUSTRALIA EACH YEAR
3
1. UNDERSTAND THE SPIRIT OF THE MARKETSTRATEGIES FOR SUCCESS
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Where bullock carts co-exist with Asia’s largest wind farm in Dhule…
5
In little over a decade, Suzlon Energy has grown
into the world's fifth-largest producer of wind
turbines, with each machine selling at around 2
million dollars. 90% of orders come from
markets outside India, for the most part the US,
South America, and China.
A country with twice the number of English speakers as the UK
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Top 5 English
Speaking Countries
(MM)
USA 263
India 125
Nigeria 79
UK 60
Russia 60
Where English is the second most spoken language…
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Top 5 Languages
Spoken in India
(MM)
Hindi 552
English 125
Bengali 91
Telgu 85
Marathi 84
Two new religions that unite the country…
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CRICKET
And BOLLYWOOD!
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Where the richest live side by side the poorest….
• * Source: Forbes List., March 1, 2010
• ** Source: CIA Handbook
10
Rank Name Citizenship Age
Net Worth
($bil) Residence
1 Carlos Slim Helu
& family
Mexico 70 53.5 Mexico
2 William Gates III United
States
54 53.0 United
States
3 Warren Buffett United
States
79 47.0 United
States
4 Mukesh Ambani India 52 29.0 India
5 Lakshmi Mittal India 59 28.7 United
Kingdom
6 Lawrence Ellison United
States
65 28.0 United
States
7 Bernard Arnault France 61 27.5 France
8 Eike Batista Brazil 53 27.0 Brazil
9 Amancio Ortega Spain 74 25.0 Spain
10 Karl Albrecht Germany 90 23.5 Germany
Number of Indian Billionaires in 2010: 52*
Population Below
Poverty Line:
25%**
2. DEFINE YOUR CORE CONSUMER SEGMENT:STRATEGIES FOR SUCCESS
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One view of the the
pyramid of Capitalist
System….
13
Or,
The Other View?
So, which India are you interested in?
The Rich India?
The Middle India?
The BOP India?
14
There is a gold mine in each of the tiers of the Pyramid
Income
Percentile
Population
(MM)
% of Income GDP per capita
($)
Total GDP
($ Billion)
Class (Top 10%) 109 34.1% $ 1,878 $ 204.6 B
Mass (Next 30 %) 326 36.1% $ 662 $ 216.6 B
BOP (Last 60%) 653 29.7% $ 265 $ 178.2 B
Source: Rama Bijapurkar, We are like that only.
15
CLASS INDIA: A Pen Picture
• Largely located in Metros & Mini-metros
• Slightly older – median age of 35 - 45
• Access to almost all comfort goods
• Save substantial portion of income
• Speak and think in English
• Send children to English medium schools
• Employ at least one driver and a full-time household
help
• Well educated
• Well travelled
• Multiple media access: Print, TV, Internet, Radio, Out-
door
• Exposed to the world – desire the best quality
• Confident & Optimistic
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MASS INDIA: A Pen Picture
• Bias towards the urban centers
• Younger, median age 25 – 35 years
• Strivers: Highly competitive in every area of life
• Full of dreams and ambitions – of bettering their lives
• Invest in education: own and the next generation
• Familiar with English, but probably not the main language
• Increasing global orientation
• Familiar with new fashion, status brands, lifestyle trends
• Mass market media exposed: TV leads, followed by press
and radio
• Optimistic and hungry – for ideas and opportunities
17
BOP India: Pen Picture
• Bias towards rural, but substantial numbers in urban areas
as well
• Migrate from villages and small towns to find jobs in large
centers
• Live in slums and tenements in cities
• Not interested in parents’ profession (typically agriculture)
• Acquire consumer goods – at lower unit price levels
• Find it difficult to make ends meet.
• High level of unemployment or disguised unemployment
• May not have steady source of income
• Main media exposed: TV and out-door
• Eager to upgrade lifestyle, but in small steps.
• Dreams are realistic
• Still, optimistic about the future
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Further complexities of defining your core segment…
CLASS MASS BOP
Age Cohorts Teens/ Young Adults, Youth, Middle Age, Mature
Geographic location Metro, Mini-metro, Other Urban, Affluent Rural, Other Rural
Consumer orientation Image or prestige seekers, benefit maximisers, cost optimizers, cash
minimisers, fixed price seekers, etc.
Cultural orientation Tradition-driven, Open but still value tradition, Embracing new culture
Consumer experience Category familiar, First time users, Non-users
Economic sector Government, Agriculture, Manufacturing, Services, New Economy
19
An example for defining your core consumer segment …
CLASS MASS BOP
Age Cohorts Teens/ Young Adults, Youth, Middle Age, Mature
Geographic location Metro, Mini-metro, Other Urban, Affluent Rural, Other Rural
Consumer orientation Image or prestige seekers, benefit maximisers, cost optimizers, cash
minimisers, fixed price seekers, etc.
Cultural orientation Tradition-driven, Open but still value tradition, Embracing new culture
Consumer experience Category familiar, First time users, Non-users
Economic sector Government, Agriculture, Manufacturing, Services, New Economy
20
3. DEVELOP THE RIGHT PRODUCT / SERVICESTRATEGIES FOR SUCCESS
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Don’t build a car when you need a bullock cart..
• Hindustan Motors created a “Rural Transport Vehicle” to replace the bullock cart:
– Rugged and hardy
– Narrow village streets
– Tight turning radius
– Good ground clearance
– Folding seats to transport 20 people or two tons of goods
– Eight gears to go from the rough rural terrains to the highways
• Mahindra realized the need for a “rugged car”:
– Mahindra created a market for a rugged car
– More powerful than a car, but less than an SUV
– Ample space for people or goods
– Great ground clearance
– Affordable price
22
Innovate Product, Services and Communication to overcome local challenges..
• How to sell overhead projectors for a market with unreliable electric supply?
• How to get Indians to adopt cereals and fruit juices into their daily breakfast – which traditionally
consisted of Indian bread and curries?
• How to get children to brush their teeth twice a day?
• How to get BOP consumers who cannot afford shampoos to buy your shampoo?
23
4. COMMUNICATION: DISTIL THE INSIGHTSTRATEGIES FOR SUCCESS
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Four Stages of Brand Communication
Who Am I?
• Brand Name
• Heritage
• Category
What can I do for you?
• Product Benefits
• Reasons to believe
How would I make you feel?
• Emotional Benefits
• Reasons to believe
What role do I play in your life?
• The larger purpose
• How do I improve life?
25
Pepsodent Toothpaste
Who Am I?
• Brand Name
• Heritage
• Category
What can I do for you?
• Product Benefits
• Reasons to believe
How would I make you feel?
• Emotional Benefits
• Reasons to believe
What role do I play in your life?
• The larger purpose
• How do I improve life?
26
Who Am I?
• Pepsodent
• Challenger to Colgate
• Oral health
What can I do for you?
• Fight against oral germs longer
• Clinically proven
How would I make you feel?
• Confident that my family is well protected.
• Even when they indulge
What role do I play in your life?
• Make me a better mom!
• By allowing occasional indulgences
Pepsodent Toothpaste
Who Am I?
• Brand Name
• Heritage
• Category
What can I do for you?
• Product Benefits
• Reasons to believe
How would I make you feel?
• Emotional Benefits
• Reasons to believe
What role do I play in your life?
• The larger purpose
• How do I improve life?
27
Who Am I?
• Pepsodent
• Challenger to Colgate
• Oral health
What can I do for you?
• Fight against oral germs longer
• Clinically proven
How would I make you feel?
• Confident that my family is well protected.
• Even when they indulge
What role do I play in your life?
• Make me a better mom!
• By allowing occasional indulgences
Pepsodent Toothpaste
Who Am I?
• Brand Name
• Heritage
• Category
What can I do for you?
• Product Benefits
• Reasons to believe
How would I make you feel?
• Emotional Benefits
• Reasons to believe
What role do I play in your life?
• The larger purpose
• How do I improve life?
28
Who Am I?
• Pepsodent
• Challenger to Colgate
• Oral health
What can I do for you?
• Fight against oral germs longer
• Clinically proven
How would I make you feel?
• Confident that my family is well protected.
• Even when they indulge
What role do I play in your life?
• Make me a better mom!
• By allowing occasional indulgences
Pepsodent Toothpaste
Who Am I?
• Brand Name
• Heritage
• Category
What can I do for you?
• Product Benefits
• Reasons to believe
How would I make you feel?
• Emotional Benefits
• Reasons to believe
What role do I play in your life?
• The larger purpose
• How do I improve life?
29
Who Am I?
• Pepsodent
• Challenger to Colgate
• Oral health
What can I do for you?
• Fight against oral germs longer
• Clinically proven
How would I make you feel?
• Confident that my family is well protected.
• Even when they indulge
What role do I play in your life?
• Make me a better mom!
• By allowing occasional indulgences
Pepsodent Toothpaste
Who Am I?
• Brand Name
• Heritage
• Category
What can I do for you?
• Product Benefits
• Reasons to believe
How would I make you feel?
• Emotional Benefits
• Reasons to believe
What role do I play in your life?
• The larger purpose
• How do I improve life?
30
Who Am I?
• Pepsodent
• Challenger to Colgate
• Oral health
What can I do for you?
• Fight against oral germs longer
• Clinically proven
How would I make you feel?
• Confident that my family is well protected.
• Even when they indulge
What role do I play in your life?
• Make me a better mom!
• By allowing occasional indulgences