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2. India Shinning

3. India Shinning
Registered a growth of 6.9% in
2010‐11, GDP grown up from $ 0.5
Billion in 2000 to $ 1.53 trillion in
Billion in 2000 to $ 1 53 trillion in
2010. Growing GDP
Investment growing @ 10.9%
Annually.
Rising Investments
$ 37.76 billion FDI inflow
In year 2010‐11 with growth
Of 8.41% from year 2000. Robust Growth in FDI
$ 1219, up 18% from the
Previous year, will further
Go upto $ 1425 in next
Fiscal. Growing Gross National Income
Source; FICCI KPMG Report‐ 2011
Note-The Indian economy expanded at its slowest pace in more than two years in the July-September quarter, hurt by high local borrowing costs and a
deepening euro-zone crisis.

4. Urbanization
Rise in Income
High Literacy
Retail
Breakthroug
Young h
Indian
Knowledge
Economy
E
Exposure to
Higher Media
Purchasing
Sectorial Power
Growths
Entry of
Foreign
Players
Increasing
Exploding
Brand
Middle Class
Consciousness
C i

5. Sectors to watch…
USD 32 USD 28 USD 15 USD 23 USD 42
Billion Billion Billion Billion Billion
Source; on FICCI KPMG Report 2011

6. Insight: Telecom
The Indian telecommunication sector in India is Revenues are projected to reach
the third largest sector across the globe and the
h hi d l h l b d h US$ 45 billion
US$ 45 billi
second largest among the emerging economies by 2012
of Asia,. Indian mobile handset market is
Growing at over 25 per cent for the last three
g p expected to show steady growth
p yg
years. through 2015 when end‐user sales
will surpass 322 million units.
3G Campaigns
Reach and growing Rural India
driven by the lowest call rates in the world
and dominated by low‐cost devices
and dominated by low cost devices
Source: IBEF, November 2011

7. Insight: Automobile
•India, the world's second‐fastest growing auto market, is in top‐gear growth.
•India's passenger car and commercial vehicle manufacturing industry is the fourth
largest in the world.
•Asia’s third‐largest passenger vehicle market.
•World’s fifth‐largest bus and truck market (by volume).
Maruti Suzuki held a market share of 48.74 per cent, Hyundai was around 18.10 per
cent, Tata Motors' market share stood at 12.92 per cent, General Motors India (GMI)
t Tt M t ' k t h t d t 12 92 t G l M t I di (GMI)
and Honda Siel cars India (HSCI) had a market share of 4.40 per cent and 2.97 per
cent respectively during FY2011.
BMW‐8042 Units, Mercedes‐6698 Units, Audi‐5,517 Units (Nov 2011).
Volkswagen‐78,408 cars (Dec 2011)
V lk 78 408 (D 2011)
Source: IBEF, October 2011

8. Automobile
• India is poised to become the third largest car market by 2020 after the US and
India is poised to become the third largest car market by 2020 after the US and
China.
• Indian luxury car market is growing at an annual rate of 70 per cent and the sales
for the same are expected to touch 150,000 units by 2020.
• BMW Vs. Mercedes Benz Vs. Audi India.
• V lk
Volkswagen hopes to capture 10% market share in 2 years, spend huge amount in
h t t 10% k t h i 2 dh ti
marketing, infrastructure & promotions (also entering in pre owned car segment this
year).
• MB India spend 1000 cr in marketing & infrastructure in 2012.
•PPeugeot reentry in India.
t t i I di
Source: IBEF, October 2011

9. Insight: Retail
Retailers expanding presence,
Retailers expanding presence Current market is
C t k ti
adding new stores. estimated at US$ 550
Foreign retailers firming their billion and is expected to
plans for India entry increase to US$ 464
$
billion by 2013.
Organised retail is estimated
at US$ 28 billion with around
7 per cent penetration. It is
projected to become a US$
j d b US$
260 billion business over the
next decade with around 21
per cent penetration.
2003 2008 2013
Source: IBEF October 2010
Retail Market in India

11. The New Market Dynamics
•Geographically- the Indian urban
growth story that until now was driven
largely by metros, is now moving
beyond, into smaller towns where th
b d i t ll t h the
affluent profile is fast emerging.
•The growing affluence levels, increased
awareness due to media penetration,
p
improved connectivity and significant
changes in consumption patterns with
high aspiration levels of small-town
India are compelling marketers to take
notice of a new affluent class.
•About 22 key urban towns are growing
and getting bigger and more affluent
according to the Indian Consumer
Spectrum of Urban India Report by
Indicus Analytics.
Source- Ernst & Young, The New market Shehers Report

12. Consumption

13. The New Market Dynamics
• A study of 100 cities in India’ consumption spending by PWC shows that metros
constitute about 30 per cent of the total consumption market, this indicates that the key
urban towns, the rest of urban India and rural India together garner almost 70 per cent.
, g g p
• Affluent households tend to have lifestyles characterized by lesser physical work, greater
expenditure on entertainment, less time spent on day-to-day necessities of household
chores and occupation.
• A per G t
As Gartner b i b h i report. N Y k 14 different types of people(similar
buying behavior t New York, diff tt f l ( i il
buying behavior). In Boston, nine and in Tokyo 11. In India, the diversity was astounding.
In Pune, they found 213 types and in Hyderabad 171 types.
• The traditional way of profiling an affluent consumer by demographics, psychographics
y p g y g p py g p
or through SEC classification is passed. Now brands are mapping it by the number and
kind of durables in a household.
• SEC classification (based on level of education & profession of a family’s CWE (Chief
Wage Earner) is no longer giving an accurate depicter of consumption disposition of
households.

14. Tier 2 & Tier 3 town Opportunity
• Emerging niche Tier 3 cities are richer than most existing Tier 1 and Tier 2 cities
Source: McKinsey Report – The Bird of Gold

15. Few Surprises…
• 49 % of affluent individuals are
educated in English, the other half
has received its education in other
languages.
• Only 14 % speaks English at
home and a large number amongst
these watches TV in
Hindi/regional languages.
• 48 % of theses households have
more than one CWEs.
• Almost nine in ten individuals
live in nuclear families and an
average family size is of 4.
• One in five of these households
have two or multiple TV sets.
Note: Weighted base Upper Middle-92.05 Lacs, Upper Upper Middle-7.63 Lacs & Rich 3.94 Lacs

16. Over the next two decades, India’s working‐age population will increase
by 240 million
More
Consumers

17. The New Market Dynamics
Media spends are moving
towards non-metros, with the
KUTs (key urban towns)
and ROUI rest of urban India
increasing their share of
ad spends and volumes. The
report pegs KUTs and ROUI to
potentially command 40-50 per
cent of India’s urban advertising
spend.
Source- Ernst & Young, The New market Shehers Report

18. Synopsis of household influence
• The Nielsen UMAR report put a
figure of 2.6 million to households
with monthly incomes of over Rs
with monthly incomes of over Rs
40,000.
• Capgemini‐Merrill Lynch World
Wealth Report 2010, there are 1.3
Lacs dollar‐high net‐worth
d dua s d a, ese a e
individuals in India, These are
individuals who have in excess of
$1 million as investible surplus
annually.
annually
Source-Nielsen UMAR survey

19. Synopsis of household influence

20. Synopsis of household influence

21. Future is here;
Future is here;
Rural India
R l I di

22. Sizable Market
• 70 % of population amounts to 815 m, translating into
a total of 151 m households. The sheer base is
equivalent to the population of US, UK, France, Japan,
Italy and Germany put together.
• Rural India contributes to over 54% of India’s GDP
which in itself is higher than the GDP of Switzerland.
• Rural share is 55% of the total national MPCE.
l h i % f h l i l C
• Its non‐food item spends are equivalent to the urban
counterpart.
• At the national level, the rural share is about 34% of
At the national level the rural share is about 34% of
the total FMCG sales.
• The urban consumer durable market is growing @ 10
%p
% pa and the rural at 25%. %
• The rural and semi urban markets contributed about
45% of the sales for the auto industry in 2011.
• There has been a rise of almost 100% in the use of
mobiles by rural subscribers. (More subscribers than
countries like Brazil, Indonesia and Russia.)

23. Collectively Rich
• Rural India is poor, backward, and illiterate and
largely consists of small farmers can not be
denied. But the fact also holds that this
denied But the fact also holds that this
population generates 56% of India’s income,
has 64% of its consumption expenditure and
accounts for 33% of the national savings. This
accounts for 33% of the national savings. This
individually weak segment is collectively a
force that is very rich.
• NCAER estimates that lower income class has
NCAER estimates that lower income class has
shrunk by 2/3rd in the last 10 years and
optimism for the next few years, income levels
are likely to rise even sharper.
• Rural healthcare market in 2015 would be Rs
240 billion accounting for 24% of total market
share.

24. Market Characteristics
• The telecom industry, FMCG MNCs,
Commercial banks, Consumer
,
durables looking at this mass as a big
opportunity.
• Some Rural Initiatives; HUL (Shakti)
Some Rural Initiatives; HUL (Shakti),
ITC (eChoupal), Tata (Tata Kisan
Sansar).
• I h l f
In the last few years, the
h
Government is increasing its fund
allocation for rural development
multifold.
• Many of big MNCs like P&G, Marico,
g g
Nokia allocating budgets for
improvement in rural distribution
channels.

25. Final Note
• Product‐ Innovative products to suit the rural
note.
• Price‐ Almost all subscribe to ‘Value for
Price Almost all subscribe to Value for
Money’.
• Pl
Place‐ C
Conventional distribution network
ti l di t ib ti t k
may not be effective.
and

26. Promotion-
Established h
E t bli h d channels are not th
l t the
mode…
BTL will lead
lead.

27. Ever Wondered What Goes on Behind
Closed Doors?
l d ?
Consumer Behavior
C B h i

28. All of “Me”
All of “Me”
Online in Different
in Different
Spaces
With a
Wi h
y
Variety of
People

29. Trends influencing advantaged consumer
behavior
b h i
Rising individualism is leading to confident
Rising individualism is leading to confident
and empowered consumers opening up to
personalised networks and expressions
Rising affluence, aspirations is driving
ffl d
consumers to seek premium brands that
dial up uniqueness and delivery exclusivity
Consumers in India have a holistic approach
to physical and emotional wellbeing and
they are seeking healthier lifestyles
Rising urbanisation and lack of time is causing
consumers to lead fast and flexible lives but
also on the other hand make time meaningful

30. Across the Globe, Women are
the biggest emerging market in the
history of the planet- Indra Nooyi
hi f h l

31. Biggest emerging market‐WOMEN
‐ Accounts for 2/3rd of total consumers
Accounts for 2/3 of total consumers
spending pie
‐ Makes majority of spending decisions
‐ Dissatisfaction rate is very high (40%)
compare to men(20%)‐ Boston Consulting
Group 2011
p
‐ Control $12 trillion consumer spends
annually
‐ Unlike men the woman's purchase
Unlike men, the woman s purchase
decisions are not impulse oriented

32. We all fondly hum the song “We
don’t
d ’t need no education” b Pi k
d d ti ” by Pink
Floyd…
y
In reality the time has come to
acknowledge the power of
k l d th f
Young…

33. • Peer Groups, better education, easy
accessibility to media and greater exposure
to the things are making children more
t th thi ki hild
aware of the world of brands.
• Classified in 3 age groups: 3‐7 years, 7‐12
years & 12‐18 years
& 12 18
• Avid watchers of ads: bandwidth to watch
TV (2‐3 hours) is higher than adults (30‐60
mints average)
i t )
• Spends nearly Rs.291 crores as pocket
money, 84 percent of parents took their
children along with them for shopping and
hild l ith th f h i d
admitted that they influenced major
purchases such as television sets(71%),
cars (66%), mobile phones (67%) and
cars (66%) mobile phones (67%) and
computers (70%).
• Engagement‐ Kids love fantasy, heroes,
over the top action, glam, romance,
over the top action glam romance
Bollywood, tribe etc.

34. Personalized Technology
that can engage customer with a brand
th t t ith b d
Technology which aims at personalizing the customer’s
engagement with a brand will take the forefront while the one
that delivers generic and invasive communication will be largely
g g y
ineffective and eventually obsolete.
Now technology being able to map consumption pattern it is
gy g p p p
now possible to gauge affluence by mindset mapping, through
credit card usage, financial investments and lifestyle indicators.

35. Social Media
Engagement is MUST
Engagement is MUST
The proliferation of information, inventive methods of reach
and ease of connect would make Social Media impossible to
d f t ld k S i l M di i ibl t
ignore.

36. EVERYONE

37. LinkedIn: Hi, I’m 42 years old, Senior Executive
Director with Fountainhead! I’m interested in
keeping up with industry news and business
k i i hi d db i
competition.
Twitter: Hi, I’m 32 years old, HOD with
Hi, I m 32 years old, HOD with
Fountainhead and I enjoy following to be
followed. Interesting, I’m starting to meet
new people on Twitter. Its like my personal
new people on Twitter Its like my personal
news feed. Also I ordered my new MAC right
from their twitter page, big shout out to my
customer service rep!
customer service rep!
Facebook: Hi, I’m 27 years old, AM with
FH and glad my job allowed me back on
Facebook! Girl, got to go – Sara just
posted photos from the event last night.
What did she wear?
What did she wear?
Social Media Consumer Profiling

38. Soc a ed a
Social media It’s a long term
Is not a One CommitmenT !
Night Stand…
Remember……
Remember

39. Customer Expectations
Be very clear as to the specific superiority
Think about their of your product or service and then
A superior publicise it aggressively
whole experience.
whole experience.
product/service
/
Always keep the
customer happy Treat the
Keep your word. If you
customer
On time promise to produce a
like royalty
within budget product on a particular
date at a particular cost,
Think about a way to then that needs to happen
make people feel that
you are making an Customer
Expectation Find the most quick
effort for them
Get personal Fix it now,
Fix it now, and effective solution
discuss it later then invite the
customer to assist
with the post‐mortem
Generosity of
Generosity of Consistency To have loyal customers means to be a
To have loyal customers means to be a
spirit and reliability person that your customers can rely on
Find a way of keeping for consistency of product, and
people interested and adherence to the promised schedule
engaged with you

40. new positions likely to get created in
organizations
Chief Experience Officer
p
Chief Attrition Check Officer
& many more…..

41. The Digital Landscape in India
Digital Users
100,000,000 people online in India
Digital Consumers
83,700,000 people on social networks with
83 700 000 people on social networks with
42,687,000 building relationships with brands
Digital Advocates
, ,
63,400,000 write about brands whilst
78,800,000 read and are influenced by these
comments
Digital Customers
85,900,000 people use Digital to research
85 900 000 people use Digital to research
products and services they go on to purchase

42. Internet penetration is relatively low in India, however those who are
online are very active in connecting & talking about brands, and
online are very active in connecting & talking about brands and
researching them online
Global India
Internet
30% 8%
Penetration
% of Internet users % of Internet
that: users that:
Go online daily 68% 45%
Are brand fans on SN 33% 43%
Write about brands
47% 63%
online
Research brands 81% 80%
online

43. Among the digitally connected, Internet for leisure is narrowing the gap
between itself and traditional media, likely due to the rise in social
between itself and traditional media likely due to the rise in social
networking
Daily users (%)
46 47
45
33
31
28
Internet for leisure TV Radio Internet for work Newspapers Magazines

44. Mobile phones are fast catching up with PCs at home and Internet café
as a preferred means to access Internet
as a preferred means to access Internet
Used in last month (%)
53
48
30
16
7 5
PC at home PC at work PC at school/university PC at Internet café PC elsewhere Mobile phone

45. Internet access on mobile phones has been adopted in large numbers by
males and younger users
males and younger users
Total Male Female
Share of weekly
time online (hrs)
16-20 21-24 25-34
PC: home
PC: work/school 35-44 45-54 55-65
PC: Internet café
PC: Elsewhere
Mobile
Other device

46. Entertainment and communication take up the majority of Indian users’
time online
time online
Share of time for
Social networking & connecting
online activities Communication
C i ti
in average 1.5 Email
2.9
week (hrs) 1.7 Multi‐media & entertainment
Online gaming
6
1.6
2.7 Personal interest
Entertainment
Shopping
2.0 Pre‐purchase & browsing
2.2 Knowledge & education
Information
1.3
News, sport & weather
1.4 2.1 Personal admin
2.1 Management
Planning and organising

47. Indians are open to learning about brands online, and they also see
Social Networks as a good platform to make purchases
Social Networks as a good platform to make purchases
• Talk to me/sell to me – where should your focus be across markets?
SN ‐ Good place to learn about brands
SN ‐ are/would be a good place to buy products
(%)
62 63 65 63 62 65
60 59 61 58 59 61 58 59 61 60
56 57
Total Male Female 16‐20 21‐24 25‐34 35‐44 45‐54 55‐65 *
*Caution: Low base

48. Travel attracts the maximum online research followed by consumer
durables such as TV & New Car
durables such as TV & New Car
% researching online
% researching at all 84
82
78
76 76
73 73 74
69
51 53 54
42 41 44 44
38 40
Cleaning Food Personal Hygiene Alcohol Presc. Med Credit Cards New Car TV Travel

49. I love Beautiful
Il B if l
women,
Love them more when
they move
y

50. Video will Rule
Video will Rule
2012
● Over 10 Times higher eye ball ratios
Eyeball Ratio Number of times the ad is viewed/Number of times the ad is served
Eyeball Ratio =Number of times the ad is viewed/Number of times the ad is served
For a banner ad this ratio is 0.1‐0.4. For video ad it is as high as 0.90
● Over 15‐20 times higher Eyeball attention time

51. Gen X & Gen Y‐ We know
G G Y k
them better
the bette
Now

52. Gen Z
Born after 2000 and weaned on
smartphones, these kids are the first true
h h kid h fi
digital natives. For many families, this
gadget‐savvy group that’s up on all things
Web is the go‐to source for information,
giving Gen Z major influence over
household purchasing decisions and
household purchasing decisions and
behaviors. This generation is also more
brand aware than any before it (by age 4, a
child can recognize
hild i
almost 100 brands).

53. Mobile is everything for the customer
How personal ? Very ! A mobile phone or its wiser
– Lose wallet ‐ report in 26 hours;
p cousin ‘the smart phone’ is
the phone
lose mobile ‐ report in 68
the customers wallet,
minutes
computer, camera, social
– 60% of married mobile owners
60% of a ed ob e o e s
hangout, a gaming d i
h t i device,
won't share w/spouses (Unisys)
mobile bank and yes a phone
– 68% of teens wont allow
parents to see phone contents
parents to see phone contents
too. Use of location based
(Wired) services, e-money, mobile
– 6 out of 10 people sleep
advertising and e-commerce
w/cellphone in bed (BBDO)
in bed (BBDO) will increase manifold.
– 70% use their phone as alarm
clock (Nokia)

54. India has more mobile phone users than
India has more mobile phone users than
people with access to toilets
54

55. Mobile is everything for the customer
Wake Up
p Commute Work Commute Unwind
7am 8am 9am 6pm 7pm 10pm
TV Radio Radio TV
Internet
Newspaper Newspaper Newspaper Internet
Outdoor Outdoor
MOBILE

56. Mobile is everything for the customer
•With more than 800 mn mobile subscribers, India has more mobile phone users than
people with access to toilets.
•Some 13 billion adverts are already sent to mobile devices in India every month.
•Two‐thirds of all Indian e‐commerce comes from mobile devices

57. Wherever, Whenever, Whatever
Some Experiences And Results that Created Happiness
Scope Exposure ROI Creativity Human
And the Internet
I t t

58. • 12.1 Crore Internet users
• 9.2 crore urban areas
• 2.9 crore rural areas
• Active users 9.7 crore
• Urban 7.3 crore
• Rural 2.4 crore

59. Composition of audience and time spend

60. Reach of key categories
internet advertising, at $300 million, has already overtaken advertising on radio.

61. Not an end of TV
Not an end of TV
Not in India
Not as of now
N t f

62. Over 550 channels killing each other
Source : TAM

63. 236
208
Projected CAGR (2011‐2015)
• Circulation : 2% 183
• Advertising : 13% 162
143
126
108 110
100
85
69 65 67 68 70 71 72 74
60 64
48 54
2005 2006 2007 2008 2009 2010 2011 (P) 2012 2013 2014 2015
(P) (P) (P) (P)
Circulation Advertising
*Source : KPMG

64. Phase III licensing to bring in more players
(more than 600 stations in 250 cities across the country)

65. Gen Z
Consumer Engagement Platform 2012
Consumer Engagement Platform 2012
• Bollywood
Generation Z (also known as Generation M, the Net Generation, or
• Hollywood
the Internet Generation) Born after 2000 and weaned on smart
Internet Generation) Born after 2000 and weaned on smart
• Live Music
phones, these kids are the first true digital natives. For many families,
• Cricket
this gadget‐savvy group that’s up on all things Web is the go‐to
• Soccer
source for information, giving Gen Z major influence over household
purchasing decisions and behaviors. This generation is also more
brand aware than any before it (by age 4, a child can recognize
y ( y g , g
almost 50+ brands).

67. things to watch in music; 2012
Source ‐

69. 100 things to watch in 2012
Source ‐

70. Disclaimer
Some of the contents/creative’s used in this
presentation has been downloaded from different
p
sources.
I would like to thank all the sources from which these
contents/creative have been taken.

71. Innovate, set new trends and stay fresh
and focused