The Changing Face of Indian Market

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The Changing Face of Indian Market
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India

• 3.28 mln sq. km. area
• 30 States, 5 Union Territories
• Towns
• gt 4 mln. Population.7 metros
• gt 1-4 mln.Population. 28 mini-metros
• Villages 0.6 mln.

DELHI
CALCUTTA
BOMBAY
BANGALORE
MADRAS
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A Sea of ...

• Individuals 1.027 bln.
• Rural 742 mln.
• Literacy 65.4
• Youth(lt25 yrs.) 540 mln.
• Consuming class gt500 mln.
• Source Statistical Outline of India 2003-04

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Economic Landmarks
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Pre Liberalization 1947-84

• Dominated by Hindu Rate of Growth_at_3.8
• Controlled economy(license raj)
• Supply driven market
• Restricted consumer choice
• Scant media availability
• Fewer players with limited competition
• Existence of few brands by default

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The Take - off 1984-90

• Unleashing the youth power led by a young PM
• First exposure to Telecom and IT industry
• Slow but sure change towards open economy and
  dismantling of license-raj
• Progressive outlook to private enterprise
  fiscal policy

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Present Scenario
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Post Liberalization 1991 to 2003

• Decontrolled, open economy
• Consumer driven market
• Wide range of media availability
• Increased competition
• Increasing buying power
• Cluttered market

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A Few Facts to Reckon With!!
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Changing Paradigm of Opportunities

• A market that grows by 25 mln. consumers every
  year
• Only 30 Indian families own a television
• Two wheeler penetration 22.5 mln. households.
  Market size valued at 900 mln.
• Consumer finance market of 13 bln.

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Changing Paradigm of Opportunities

• Choice of 40, 000 odd magazines and newspapers
• Tele-density (cellular fixed) 4.89.Growing at
  an annual rate of 22.5 against the world
  average of 5.8
• 3.5 mln. cellular subscribers and growing ...

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Focus Shifts

• From saturated urban to semi-urban, country side
• Emergence of affluent kids and earning young.
• Burst in women purchasing power and greater role
  in purchasing decision.
• Functional to convenience goods, unbranded to
  branded.
• Need-based buying to lifestyle consumption

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What Will the Market Be Like?

• Tech savvy consumer
• Survival of strong brands.
• Increased MA
• Emergence of niche specialized players
• Global players in all sectors. Consumer enjoys
  the best.
• Reducing influence of traditional
• media emerging non-traditional
• media.

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Marketing Insights

• Diverse and heterogeneous
• Inherent duality
• Appreciate VFM.
• Open to newer ideas yet rooted in traditional
  values.
• Burgeoning SECA B

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Inherent Duality
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Surge of Female Power
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We Are Flocking in Forbes's List Too!!
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How Marketers Responded

• Revisiting the marketing programme
• Seeking Money for Value
• Offering increased choices
• Innovating to serve better in cost effective way
• Extensive use of new marketing tools. CRM,
  Permission Marketing, Direct Marketing,
  Interactive, Kiosk, Multi Level Marketing
• The Sachet revolution
• Looking beyond. Tapping international market.

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Yes !! No!!
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Yes!!Cartoon Network

• Launched in October , 1995 by Turner
  International.Only English cartoons
• Gained popularity. Failed to cut across the
  larger section.Language was an impediment.

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The Indianised Approach

• Positioned as India-centric.
• Launch of a two hour Hindi dubbed cartoon slot.
• Launch of an interactive website for kids
• Toon Cricket99 organized in Mumbai.
• Introduction of Regional Language Dubbed Cartoons
  in 1999
• 75 increase in viewership over 2 years. 80
  increase in ad revenues over the same period.

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No! Kellogg's corn flakes couldnt change
snacking habit.
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There Lies the Market..
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Burgeoning Middle Class
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The Youth Kids MarkencreasingInfluence of
children in the process of decision making at
home is
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The Youth Kids Market

• Increasing influence of children in purchasing
  decision
• Smart, educated, informed and opinionated
• 40 less brand loyal than adults
• Born in the age of Harry Potter, Mickeymouse,
  MTV Cartoon network
• Cpmputer sauvey

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Retail Roadmap

• Worlds highest(12 mln) retail outlets .Mostly
  Unorganized. Organized Retail growth at 18 20
  p.a.
• Food and Apparel sectors are showing faster
  growth.
• Entry of MNCs Pizza Hut, Macdonald, TGIF.
• Emergence of Indian Brands

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Media

• Cable Television industry
• 500 million currently in revenue terms
• Growing at approximately 10-12 p.a.
• Radio
• - Expected to grow to the international average
  of 8
• Live entertainment and event management industry
• Growing at a rate of 50 p.a.

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Entertainment

• Potential found by global players
• Projected size 6.3 bln., 2005
• Overseas market 460 mln. exhibiting a strong
  growth.
• Film market
• Expected to grow at 25 p.a. in the next three
  years
• Music industry will be 380 mln. in size by 2005

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International Acceptance
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Telecommunication

• 8th largest network in the world 3rd largest
  among the emerging economies (after China and
  Korea)
• Basic services growing at 22 p.a, cellular more
  than 100.175 mln. connections by 2010
• Internet licenses granted to approximately 450
  companies
• Investment opportunity of 70 bln. by 2010

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E-business Outsourcing

• Client list of more than 200 out of the Fortune
  500 companies in outsource of software. .
  Expected to generate revenue to the tune of 87
  bln. by 2008
• Newsmakers
• Rediff.coms Satyam computers ADR offer
  premium of 83.3 14.9 initial price
  respectively at NASDAQ.
• Acquisition of NASDAQ listed SeraNova Inc Film
  Roman by Indian companies in all stock deal
  valued at 100 mln.

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Its not an isolated island of success!
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Lets Face It!
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India is Shinning!
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India 3rd largest economy by 2050. BRIC GDP
greater than GDP of combined G6 Countries. -
Goldman Sachs Report
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World Ecnomy - 2050(figs in US bln)
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Economy Scaled Newer Heights

• Current growth in Real GDP around 5.Expected to
  grow to 8 by 2007.
• Service sector contribute 52 of GDP
• Rate of Investment matched by Gross Domestic
  Savings _at_ 24 of GDP.
• Upward moving Per Capita Income. Current GNP
  502 bln . Current PPP 2570. World PPP Ranking
  81

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Economy Scaled Newer Heights

• Lowest ever bank rate of 5.25
• Low rate of inflation of 4 offers higher ROI
• Stable exchange rate, appreciating Rupee.
• Soaring stock market. High return to FII.
• Huge FDI flow, new found interest of hot picks.
• Excess of 100 billion Forex reserves

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Worlds Leading Supply CenterPhysical
Intellectual
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Intellectual Capital of the World
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Its the established IT leader in the world.
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• The Fast Emerging Manufacturing Hub
• Made in India tag
• Wal-Mart sources 1 bln. - half its apparel
  business.
• GAP 600 mln.
• Hilfiger 100 mln.

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Lo and Behold..!!!

• Moser-Baer located in Noida is world's third
  largest optical media manufacturer the
  lowest-cost producer of CD-Recorders.
• Hero Honda largest motorcycle manufacturer in the
  world. Manufactures 1.7 mln. motorcycles a year.
• 15 of the world's major automobile makers obtain
  components from Indian companies

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Even Automobile!!

• Rover is marketing 0.1 mln. Indica cars made by
  Tata in Europe under its own name!
• Aston Martin contracted prototyping latest luxury
  sports car to an Indian-based designer.
• Suzuki Hyundai India set to make India global
  small car hub
• Kinetic received the Deming award for two
  consecutive years
• Ford presented Gold World Excellence Award to
  India's Cooper Tyres.

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Success is Infectious!

• World Largest
• Bharat Forge - single-location forging facility
• Hindustan Inks - single stream fully integrated
  ink plant
• Essel Propack - laminated tube manufacturer
• And many more..

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Faces of India!!

• Destination brands Goa, Kerala, Khajuraho,
  Bangalore
• Icons Rajat Gupta, Mother Teresa, Narayanmurthi,
  Kalpana Chawla
• Stand-aparts Infy, Sify, Ranbaxy, i-flex
• Generics Yoga, Ayurveda, Basmati, Software

Today, Indian Brands Dared to Venture Global
Market
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