consumer india_case studies

8/17/2019 Consumer India_case Studies

http://slidepdf.com/reader/full/consumer-indiacase-studies 1/34

Consumer India -

Case Studies



Case 1 – Indian Consumer:

Some Cultural DimensionsReligion and Family form the foundation of

the culture of Indians. Their predilections in

these two matters however, are not static.

Adaptations have been taking place in their

notions regarding them.

In India religion is based on extremes of

reality and fantasy and is rich in suggestiveimagery. Todays generation has

repackaged it.



Case 1 – Indian Consumer: Some

Cultural Dimensions …Contd.

For them, !andiya " #oli are exuberant

occasions to get to know the opposite sex.

$oreover, these are no longer restricted to a

particular community. Rakhi has given rise

to less sacrosanct %Friendship &ands.

Family is the umbilical cord that ties every

Indian to his roots, with each relationshipwithin the family fitting a stereotype.



Case 1 – Indian Consumer: Some

Cultural Dimensions …Contd.

'ven today, the woman is accepted well by

the family only when she produces a male

child. Indian parents give great importance

to the childs higher education and the

information age is playing to this strength.

(olitics, )inema, and )ricket have become

their strong preoccupations over the last *+years.

Source: (ew Research )entre, reported in ET , + $arch, -++.



Case 2 – The Middle-Class Settles

into the Fast-Food Culture

Many Players, Seeral !utlets, and

Im"ressie Foot#alls

Recent years fast/food outlets have

expanded manifold in India, especially in the

metros. )ustomers are trooping into the fast/

food restaurants in large numbers. The big

chains in particular report impressivefootfalls.




into the Fast-Food Culture …Contd.

&y -++0, the patronage had expanded as

shown below1

$c!onalds chain had an average of

**,+++ customers a day in outlets in

2estern India put together.

The 3F) claimed that more than -+++

customers visited everyday sole outlet at

&angalore.





(i44a #ut served around 5,+++ customers a

day in its 67 restaurants across 7 cities.

!ominos was not lagging behind either.

8irulas Indias homegrown fast/food chain,

claimed 0*,+++ footfalls a day across their 6*

outlets in the 8orthern region.

They all have an eager, growing, middle/classcustomer base.

Testimony to the changing food habits of the

middle class.





$dent o# Many %e& 'ntrants Con#irms

the Trend

Papa John’s

(apa 9ohns, the :;/based, worlds third

largest pi44a company with close to 0,+++

outlets in -- countries, is one of the latest

entrant in the Indian pi44a market.





Papa John’s …Contd.

<m (i44a 'ats India, master franchisee for

(apa 9ohns for north India, opened the first

(apa 9ohns outlet in 8oida in 9une -++6. <m(i44a has an agreement with (apa 9ohns for

developing ++ (apa 9ohns stores in north

India alone, over a period of years. (apa9ohns considers India as one of their top six

priority markets outside of :; alongside )hina,

$exico, Russia, 3orea and the :3.





Papa John’s …Contd.

It is getting ready to fight for a share in a

market where (i44a #ut and !ominos have

established their presence. The choice of

8orth to start with, is in view of the pi44a

consumption pattern in India.





Dixy Chicken

:3 fast/food chain !ixy )hicken has also

made its foray in India in -++6. It opened its

first outlet in )hennai. It has planned ++

stores across the country.





Cinnabon

The :; bakery chain )innabon, famous for

its cinnamon rolls and other cinnamon/based

food items, has also come to India through

the franchising route. The first )innabon

store in India was opened in -++6.





Marry Brown

$alaysian fast food chain $arry &rown is

another recent entrant. $ary &rown already

has outlets in south India with seven in

)hennai, two in )oimbatore and one each in

#yderabad and &angalore. $=$ =roup,

master franchisee of $ary &rown in India, isplanning to double the number of outlets in

the southern region in the next - or 0 years.





Marry Brown …Contd.

The company is looking at adding three more

outlets each in )hennai, &angalore and

#yderabad and also two in 3ochi. It alsoplans to reach out to the northern markets.

<ver the next five years, $arry &rown plans

to set up a total of ++ stores all over India. After setting up outlets in high/foot/fall

locations like malls and pla4as, it is now

targeting the neighbourhood space.





Marry Brown …Contd.

This retail spread will help it cater to

consumers, who prefer to stay at home and

dislike commuting to the commercial parts ofthe city during weekends.





The ast!ood Cu"ture Spreads to Tier!

Two Cities Too

Fast/food chains > !ominos, $c!onalds,

(i44a #ut, etc. > are looking at Tier/Twocities for their next growth phase. They

expect si4eable business there thanks to the

improving disposable income and changingfood habits in those places.





The ast!ood Cu"ture Spreads to Tier!

Two Cities Too …Contd.

It is the middle class, the upper middle class

to be more precise, that has contributed tothis growth of the fast foods market.

Source: Adapted from a report in The Economic Times.



Case ( – Today)s *outh &ill Chan+e

Totally the itherto no&n

#ndian Consu$er Pro%i"e

This is Indias first non/socialist, market economy

generation, growing up in the thick of coalition

politics, the information revolution, the connectivityboom, IT enabled everything, and the service

economy. It will be shaping the markets in the

coming years.

This generation is different from its previous one, inways that go beyond the normal differences you

would expect from any two consecutive

generations.




Totally the itherto no&n …Contd.

#ndian Consu$er Pro%i"e …Contd.

There has been a shift1

From destiny driven to destination driven.

From inward focused to outward focused. From government employed to self/employed.

From %stuck in my station in life thanks to 0 per

cent =!( growth to a %sea change in lifestyle.They have a totally different attitude to living,

consumption, savings, and accessing credit.





The &outh is Set to Chan'e #ndia’s

Consu$er Market

As of today, there are no heads of

households who are liberalisation children, ifwe consider people between the ages of -*

to *+ to be the %heads of households. &ut, by

-+-*, as much as half of the heads ofhouseholds ?-* to *+ years olds@ will be

liberalisation children and half will be pre/

liberalisation children.





The &outh is Set to Chan'e #ndia’s Consu$er

Market …Contd.

It is clear that change is around the corner as

the liberalisation generation ?born, say from5 onwards@ begins to come of age. This

demographic shift will lead to a consumer

behaviour shift, dragging even the remaining*+ per cent of households, headed by pre/

liberalisation generation folks, in the tide of

change.






Market …Contd.

The %(epsi/)oke/$TB view of them will not

make for a true understanding of how thisgeneration will interact with any given

category, and what needs to be offered to

them. They are a work hard generation,coveting material goals and in a hurry to

achieve.






Market …Contd.

The changes will be felt even by &-&

businesses, once this generation startsmoving into decision/making positions in

organisations.

Source: Adapted from an article by Rama &iCapurkar in The Economic Times.



Case – The T&eens Mar/et in India

There are now more than 0+ million tweens inIndia. The si4e of their market > products and

services catering to them > is worth Rs. -+,+++

crore.

In the eight largest Indian cities alone, and in ;') A

" & households alone, there are an estimated 6.

million tweens.

<ne factor that contributes to the big buying by thetweens, of course, is the economic boom. )hildren,

becoming big consumers is natural in any country

that is working its way up the economic curve.



Case – The T&eens Mar/et in India…Contd.

8ot Cust the numbers and exposure. They areuniDue segment as they represent a certain attitude

E personality, which is distinct from the elders and

which is homogeneous among them across urban

India. Also, in todays increasingly branded world,

they are a highly brand/aware lot.

The tweens of today are more media and tech

savvy than their counterparts in the earlier decades.&esides the exposure to television, they are

growing up with the Internet and mobile telephony.




Teleision-led 'olution

In many ways, the evolution of tweens as a

consumer category has been television and

computer led.Today typical tweens in ;') A " & in urban

India are aware of brands, and are empowered

to take purchase decisions ?especially when it

comes to products and services they will be

using@. They are becoming an increasingly

savvy set of customers E influencers.




Teleision-led 'olution …Contd.

'specially in a country like India where

parents may not have been exposed to

modern things as much as their kids, thelatters persuasive power is really high.

2ith cable and satellite television penetrating

the hinterland, tweens in rural areas too arepretty much in the same category, though

they may not have the same spending

power.




The 0rand-a&are Child is the Father o# the0rand-Consious Man

Tweens today are not only directly involved in

the purchase of goods and services forthemselves, but are also big influencers of

what the family buys > consumer durables

like TB sets or home theatre systems,holiday packages and even cars.

)hildren become aware of brands around the

age of eight.




The 0rand-a&are Child is the Father o# the0rand-Consious Man …Contd.

2hile there may be 0+ million tweens in

India, the relevant audience for companies issmaller. The tweens in urban centres are the

primary target for most marketers addressing

the tween market. A substantial chunk of thisnumber comes from double/income homes,

and children from such homes are

empowered early.




The 0rand-a&are Child is the Father o# the0rand-Consious Man …Contd.

And, there seems to be a direct correlation

between tween empowerment and nuclearfamilies E double/incomes. 2here both

parents go to work the premise is that the

child is grown up enough to manage alone,to make some purchase decisions and spend

money



Case 7 – Pester Po&er o# ids !er

Parents to 0uy Produts They 8i/e

'arlier, advertisements targeting children usedto cover items like toys and biscuits. And, the

%pester/power of kids spurred the sales of

impulse foods, biscuits, snacks and chipsG thesecategories have been witnessing double/digit

growth rates. Today, advertisements for a great

variety of products are targeted at children.

These include toothpaste and bath soaps,energy drinks and fast foods, cough drops and

painkillers, water purifiers and automobiles, and

even floor cleanser and vacuum cleaner.




Parents to 0uy Produts They 8i/e …Contd.

A recent visual media survey conducted in$umbai found that the number of kids

influencing the familys purchase decisions is

leaping up and has already reached 7+ percent. A vast number of children watch TB and

prefer it to reading.

TB influences kids greatly and the pesterpower of kids who watch TB is immense.




Parents to 0uy Produts They 8i/e …Contd.

The fact that in villages kids are often the onlyliterate members of a family adds up to the

%pester power in rural homes.

A persons %brand loyalty may begin as early asage two

Adults who love to watch ads dont necessarily

buy the products.

&ut, its not the case with kids. If they find an adeasy to digest, they do pester parents to buy

that product.Source: The -indu ** Dec. *++.

consumer india_case studies

Documents