CONSUMER BEHAVIOR IN VARIOUS MARKETS

Section C : -Presented by Group 8 Chiranjeeve Bansal (177) Nalin Roy (178) Himanshu Kukreja (179) Shanky Sharma (180) Lipika Arora (181) Ashish Kumar (182)

OBJECTIVE OF THE STUDY

1. To determine the key factors affecting the Indian consumer in terms ofChoice of Market Choice of Brands Psyche of Indian Consumer 2. The response of market to fluctuating needs of Indian consumer and the Retailer Psyche

METHODOLOGY ADAPTED

Random survey was the technique used to study the behavior of consumers with subjective oral questionnaire being the rationale chosen Detailed observation and subjective questionnaire used to understand the psyche of the retailers Locations used to carry out the study were different markets in the city of Delhi namely, Khan Market Janpath Chandni Chowk Malls Sadar Bazar

INDIAN MIDDLE CLASS

The growing Indian Middle class 2005: A small middle class comprising of just 5% of the population or 13 million households 2025: A robust middle class comprising of 41% of the population or 128 million households Urban India By 2025, 62% consumption will come from Urban India accounting for 2/3rds of the future growth Urban would not just be Delhi and Mumbai but a lot of middle and small tire cities would also be upgraded as being Urban and comprise of the Indian middle class By 2025 the urban middle class (Seekers + Strivers) will have unprecedented growth from just 7 million or 12% of urban households to 87 million or 76% of urban households in 2025. Upward mobility would become the key characteristic of a majority of Indian consumers, a key point to be kept in mind for future marketing strategies

INDIAN CUSTOMER

The Indian taste bud is very different from any other country. To survive and be successful here, it is very essential to mold your product offering to appeal to the target Think global and act local is the key to success in India McDonald's Globally known for serving hamburgers, beef and pork, but as most Indians do not consume beef or pork due to religious constraints McDonald's tailored its menu to suit their needs and added Chicken, Fish and Lamb as part of the menu India is the only country where McDonald's offer a 100% Vegetarian option to cater for the majority of the population Pizza Hut Initially, the company struggled in this market, primarily because the [standard Italian] toppings which were completely alien to Indian taste buds. "But with the launch of a Tandoori Pizza," says Alok Lall, General Manager of Saatchi & Saatchi in New Delhi, "the results were amazing - store traffic quadrupled.

INTRODUCTION

Choice of Consumer for markets can be categorized as:

Traditional Retail and Organized Retail.

Factors affecting the consumer spending pattern in India:

Growing income levels Changing attitudes towards consumption Changes in prices Introduction of new products Availability of credit such as loans, mortgages and credit cards Rising aspiration levels Increased literacy Growing brand consciousness Rapid urbanization

Shopping habits of Indians are changing due to their growing disposable income Relative increase in the younger population, and the change in attitudes towards shopping. The emphasis has changed from price consideration to design, quality and trendiness. The desire to look and feel good is also guiding factor for customers while making their purchase decisions

INDIAN MARKETS
Retailing is one of the most dynamic and rapidly changing sectors of Indian industry bearing little comparison with the business that operated 50 years ago. Multiple retail companies now dominate the sector, to the threat and decline of small independent business. Market is currently divided into 3 main segments: 1. Conventional Markets 2. Malls & Hypermarkets 3. High-End Markets

CONSUMER PATTERNS IN DIFFERENT MARKETS

Consumers exhibit particular shopping behaviours depending upon their perception of a particular market. Different earning categories exhibit different patterns. Some of the common attributes observed among consumers are

Value for Money Status Symbol A new and innovative product

VALUE FOR MONEY

The Indian market is no longer a sellers market but is now a buyers market. The winner is the one who provides value for money. This is the sachet country where the consumer as the king would like to try the product first before investing and purchasing a bigger pack

The most important criterion for any product to be acceptable by the Indian middle class is the Price-Quality balance Just low price = cheap, bad quality in the minds of the middle class consumers If the product is just low price it would have to justify itself Product durability Consumers in Indian are willing to even pay a little more provided the product promises durability.

STATUS SYMBOL

In a country where the general attitude of the people is to prove themselves and move up the social ladder, constant status symbols are seeked to showcase their success or their place in the society

Common status symbols Car TV House Branded apparel Mobile phone Laptop Holiday abroad

A NEW AND INNOVATIVE PRODUCT

With a gradual increase in purchasing power the Indian middle class is very open to new innovative products and experiment with change, be in the form of a new service, affordable FMCG product, a new restaurant or technology The only underlying condition being that it should be a value for money proposition

MALLS & HYPERMARKETS

Includes most of Organized retail. Product more important than retailer. Consumers ready to spend a little more, if a better product is offered. Mostly Fixed price shops, so no space for Bargains. Retailers give discounts and offers to lure customers on different occasions and festivals. Frequency of visit by consumers is observed generally less in these markets as compared to conventional markets.

HIGH- END MARKETS

High End markets include exclusive brand retail shops. Products sold in these markets exhibit high quality and are expensive in nature. Major Consumer base is formed by High Income group. Middle Class visits these market for Window Shopping and for Food Outlets. Generally Fixed Price Brand retailers with very little scope for Bargains.

CONVENTIONAL MARKETS

Includes most of Unorganized retail Consumers visit these markets most frequently of all. Consumers try to bargain to their maximum possible extent Consumer Retailer relationship plays the most vital role. Retailer trust and cheap deals are main attributes identified.

FINDINGS & OBSERVATIONS

CUSTOMER BEHAVIOR- FREQUENCY OF VISIT IN A MONTH

90% 80% 70% 60% 50% 40% 60% 55%

80%

30%
20% 10% 0% 18%

22%

20% 5%

16%
4% High End Markets

Conventional Markets 1-3 times

Malls & Hypermarkets 3-5 times

More than 5 times

CONVENTIONAL MARKETS
Consumer Patterns
35%

30%
25% 20% 15%

10%
5% 0% Consumer Patterns

MALLS & HYPERMARKETS

Consumer Patterns
30% 25%

20%
15% 10% 5% 0% Consumer Patterns

CUSTOMER BEHAVIOR- INTERACTION WITH CUSTOMERS

120% 100% 80% 60% 46% 28%

10%
15% 20% 40% 35%

40%
20% 0% 10% 11% 5% Conventional Markets Never Rarely

30%
10% Malls & Hypermarkets Sometimes

30% 10% 5% High End Markets Always

Mostly

CUSTOMER BEHAVIOR- SALES PROMOTION

120% 100% 14% 80% 60% 45% 40% 40% 15% 15%

40%
19% 20% 0% 25% 15% 5% Malls & Hypermarkets Sometimes 30% 10% 5% High End Markets Always

20% 2% Conventional Markets

Never Rarely

Mostly

THANK YOU!!!!