Theme Project Final1

8/8/2019 Theme Project Final1

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PRERNA ABANIPRIYANKA MATHUR

PRIYANKA SHARMA

REKHA PARIHAR

REKHA VERMA

THE RISE IN INDIAN CONSUMER

MARKET



INTRODUCTION

As rapid socio-economic changes sweep acrossIndia, the country is witnessing the creation of many new markets and a further expansion ones.

With over 300 million people moving up from thecategory of rural poor to rural lower middle classbetween 2005 and 2025, rural consumptionlevels are expected to rise to current urban levelsby 2017.

In recent scenario Indias economy has grown,so too has the spending power of its citizens.Real average household income in India hasroughly doubled over the past two decades.



Today India is likely to leap frog from beingthe twelfth largest consumer market in theworld to become the fifth largest consumermarket in the world by 2025.

India continues on its current high growthpath, incomes will almost triple over the next

two decades, and the country will climb fromits position as the twelfth-largest consumermarket today to become the world's fifth-largest consumer market by 2025.



NEED FOR THE STUDY

In recent market scenario the Indian consumer marketfrequently rises due to

a. increase in household income

b. changing in purchasing pattern.

This rise in Indian consumer market takes place in differentmarket segments i.e.

a. consumer durables,

b. FMCG

c. luxury productsd. Automobiles

e. health care

Therefore, a need is felt that some explorative study be

taken up to study the rise in Indian consumer market for



HYPOTHESIS

The Indian consumer market rises day by

day.

Increase in income is the major factor, whichis responsible for rising in Indian consumermarket.

Food chain and electronics are the segmentsthat are largely booms in the recent market

scenario.



OBJECTIVES

To identify the market segment which is largelybooms in recent market scenario.

To identify the factors due to which Indian

consumer market rises. To underline the significance of consumer market inthe success of business organization.

To bring out and suggests better ways of maintaining the rise in Indian consumer market.

To understand the fundamental forces of long termeconomic growth such as demographics,urbanization and rising education level, will effectgrowth in Indian income.



THE CONCEPTUAL FRAMEWORK

With the increase in Indian economy, the spendingpower of citizens has also increase as real averagehousehold income in India has roughly doubled over thepast two decades.

The recent data says India has begun to develop into animportant consumer market with over 16.9 trillion Indianrupees ($ 370 billion) in spending in 2008.

Studies have looked forward at most futureconsumption products & services as

a. Automobiles

b. FMCGS,

c. luxury goods,

d. consumer durable goods etc..



A Virtuous Cycle Between

Consumption & Income Level

India has now entered a virtuous long-

term cycle in which rising incomes lead toincreasing consumption, which, in turn,

creates more business opportunities and

employment, further fuelling GDP andincome growth.



Risingincome

Consumption

BusinessOpportuniti

es

Employment

IncomeGrowth



RECESSION AND INDIAN

CONSUMER MARKET Today various recessional impacts have engulfed worlds

economy which can be observed in:

a. falling Stock market

b. jobs in availabilityc. companies following downsizing in the existing

available staff

d. cutting down of the perks and salary corrections

Thus recession have turned down the growth process &also changed the consumer behaviors , attitude in thecurrent retail market .The customer has become moreloyal & they stick to the supermarket which gives themvalue for money



The Impacts of recession

Change in consumer behaviors andpurchasing power.

Stock Market is lingering in thebottom.

Real estate market has started totake a beating .



DIFFERENT MARKET SEGMENT

Segments of consumer market

Rural Consumers:

FMCGs have seen over 20 per cent demand inrural markets ahead of the 17-18 per cent growthin urban India in categories like hair oils,toothpastes, shampoos, skin creams and lotions,and even candies saw more growth in rural

markets than urban. The overall number of rural households is

estimated to grow to 135 million in 2001-02.



Fast Moving Consumer Goods

Indias Fast Moving Consumer Goods (FMCG)reached a size of US$ 25 billion at retail sales in2008 in field of Cosmetics, Plastic, Textile,

Clothing, Packaging & Containers etc.. Reasons for growth:

a. Goods and Services Tax (GST)

b. Foreign Direct Investment (FDI)

The Ministry of Food Processing Industries is alsoplanning to double the market size of the foodprocessing industry to US$ 165.1 billion by 2009-10.



LUXURY PRODUCT

With the rapidly increasing number of

millionaires in India, the market for luxury

brands is growing annually at a compoundaverage growth rate (CAGR) of about 35 per

cent.

In field of products like Apple Laptops,

Furnishing, Diamond Jewellery, VivelCosmetics etc.



CONSUMER DURABLES

A durable good or a hard good is a good does notquickly wear out, it yield services or utility over time

rather than being completely used up when usedonce. Examples: Electronic equipments, Houseware, Cars.

LG Electronics India Ltd (LGEIL) increased a growthrate of 18 per cent in the last five months specially in

the refrigeration and AC segments.



AUTOMOBILES

Presently, India is the second largest two-

wheeler market in the world, the fourth largestcommercial vehicle market, the 11th largest .

Honda has identified India as the launch pad for

its global small car which will debut during the

next two to three years. passenger car market.



THE ANALYSIS & SURVEY

To assess the most emerging market segment asurvey of marketers was conducted. For this astructured questionnaire was prepared to obtain

information about rise in Indian consumer market.

As per the questioner prepared the collectedinformation has been tabulated and analyzed todraw results and conclusions which are as follows:



Marketers Segments

S.NO DESCRIBTION NO. OF

RESPONDANTS

PERCENTAGE

1. Automobiles 8 16%

2. Garments 9 18%

3. Electronics 6 12%

4. Food chain 15 30%

5. Jewellery 12 24%

TOTAL 50 100%



RISE IN INDIAN CONSUMER MARKET

S.NO. RESULT NO. OF

RESPONDANTS

PERCENTAGE

1. YES 47 94%

2. NO 3 6%

TOTAL 50 100%



Reasons for Rise in Indian

Consumer Market:

S.NO. REASONS NO. OF

RESPONDENTS

PERCENTAGE

1. Increase in income 5 10%

2. Change inpurchasing pattern

5 10%

3. New trends 14 28%

4. Innovation 3 6%

5. Standard of Living 14 28%

6. Brand Loyalty 8 16%

7. Reduction incutting jobs

1 2%

TOTAL 50 100%



Rural Market Rises with Urban

Market

S.NO. RESULTS NO. OF

RESPONDANT

S

PERCENTAGE

1. YES 47 94%

2. NO 3 6%

TOTAL 50 100%



Reasons FOR Rise In Rural

Market:

S.NO. REASONS NO. OF

RESPONDENTS

PERCENTAGE

1. Competition 8 16%

2. Standard of living

28 56%

3. Socio-culturalfactors

7 14%

4. Political factors 7 14%

TOTAL 50 100%



Boom in Recent Market Scenario:

S.NO. GOODS &

SERVICES

NO. OF

RESPONDENTS

PERCENTAGE

1. Electronics 6 12%

2. Garments 9 18%

3. Automobiles 8 16%

4. Food chain 17 34%

5. Jewellery 10 20%

TOTAL 50 100%



TESTING OF HYPOTHESIS

The testing of hypothesis is based on the analysis of survey,the evaluated results are as follows:

1. The hypothesis There is rise in Indian consumer marketproved to be correct.

2. The second hypothesis Increase in income is the majorfactor, responsible for rise in Indian consumer marketproved correct with this new trends & standard of living arealso responsible as per marketers.

3. The third hypothesis Food chain and electronics are thesegments that are largely boom in the recent marketscenario proved incorrect. The survey result says that Foodchain and jewellery are the segments that are largelybooms.



SUGGESTIONS & CONCLUSIONS

The study has brought home that the rise in Indian consumermarket reflects the rise in different market segments due tovarious factors i.e. new trends, standard of living, brandloyalty, increase in income etc.. following suggestions can be

forwarded:

Todays consumers are more brands loyal and seek towardsnew trends, so marketers should make their efforts towardsthese factors.

The new marketers should make their investments inrecently growing market segments i.e. food chain and

jewellery.

.



Marketers should make aware the customersabout the new policies formulated by themwhich has adopted by any promotional tools.

It can convert their non-users into users bythe participation in local fairs & exhibitions asit can increase the awareness about themarket & product.

Market services should be better improved bypaying more attention towards consumerneeds.



Consumer market should build its image as

the high value added services so as to have

the maximum share in the market.

Marketers should provide fast and good

services and friendly behavior withcustomers, if they want to exist in the market.





ANY

QUERRY??

?

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Theme Project Final1