Changes in market in India

Right from the liberalization of the economy in India, Indian market has gone through several changes.

GDP is growing at a rate more than 7 %

Indian economy has been growing well .

These changes can better be described at micro and macro level:

Micro Environment:

These are the actors close to the company that affect its ability to serve its customers.

It includes:

 Company itself
 Product
 Price
 Place
 Promotion
 Customer
 Intermediaries
 Competitors
 Suppliers

Macro Environment:

The company and all of the other actors operate in a larger macro environment of forces that shape
opportunities and pose threats to the company.

It includes:

Demographics  People

Economical  income distribution, decreasing percentage of low income group

Social - culture  value system (failure of KFCs)

Political – legal  govt interference

Technological  development in technology

Natural  raw material and other natural factors (Coca –cola)

 With changing time, people are now like to spend more money on food and looks. People are now
open to the cosmetics very frequently. Care more about environment and having good educational
background. All these factors are leading to the changes in the marketing environment.

People are having more disposable income and easy ways to make purchases. Young group attracted
competitors in the area of soft drink, mobiles, motor-cycles, scooters, ready- made garments.

Women status in the society has changed which resulted into whole range of new products-ready to
cook, ready-mixes, cooking range, chapatti-maker, washing machine, vacuum cleaner, iron, ready-to-
eat cereal.

Indian consumer has acquired new values because of their access to international media and satellite
channel like CNN , BBC , Star- Now spending more time on leisure goods viz meant boom for travel
industry , air-conditioners , motor cars, credit cards – not willing to postpone the gratification of his
needs for tomorrow .

Food companies now need approval to launch brands that duplicate what already exists in market,
such as another cold drink, or a brand of rice. It is mandatory all veg. Items carry green dot and non-
veg carry red dot, all packaged products should have the maximum retail price or MRP on the
package.

Auto Industries had to introduce expensive emission controls in the car – Bharat Stage II, III and IV
norms. RBI is in process of formulating guidelines to credit card companies, keeping in mind the
interest of consumers.

A marketer needs to understand these policies but also the political philosophy and ideology of major
political groups and individuals. Responsible companies in India have responded to these
environmental changes and have formulated policies to address consumer complaints

Marketing Mix
Marketing is an organizational function and a set of processes for creating, communicating and
delivering value to customer and for managing customer relationships in ways that benefit the
organization and its stakeholders.
While talking about marketing some people limit marketing on Marketing mix i.e. Product, Price, Place
and Promotion only, while marketing is a very broad term that covers the entire process of creating the
value to communication to the customer and delivery , but marketing function does not ends here it also
include making relationships with the customer to benefit the company.

Marketing include:

 Market insight
 Market decision and identifying target market
 Communication to customer
 Making link to customer
 Brand enhancement
 Delivering values
 Maintaining relationship

Marketing mix decide only on four factors (4P) while marketing strategies decide on various factors
starting from who the customer should be, what price bracket the product should be in, who are the
customers that are beneficial and who should company do away with etc.

Customers

 Platinum  highly beneficial and should be retained

 Gold  beneficial and should be upgraded
 Iron  generate very less profit and should be either upgraded or left
 Lead  better leave them