Understanding

Market Characteristics
 Scanning the Market Environment

• Market Size (How big – in ‘volume’ and ‘value’, Potential)

• Stage of development (Life-cycle)

• ‘Consumer need’ evolution (How homogeneous)

• Distinctiveness of market dynamics (culture, lifestyle contexts,
technology, infrastructure, policy and regulations, etc.)

• Market Spread (Geographical, Economic, Diversity)

• Seasonality (Climate, Festivals,…)

An Overview of Indian Market &
its Marketing Challenges
Key Characteristics of Indian Market

• An emerging market

• A distinct market

• A heterogeneous market

• A regional market

• Largely an unorganized market

 1. Emerging Market

• Developing and opening economy

• ‘New economy’ advancements

• Latest technology windows

• Rising consumer incomes

• Lifestyle consumption on the rise

 Yet, a ‘skewed’ market

• Manufacturing sector lagging

• Infrastructure snags

• Widening inequalities

• Urban – rural contrast

• Low penetrations and per-capita consumptions

Markets have to be invested in and built

 2. Distinct Market
• High ‘family’ orientation

• Different ‘material culture’

• Interlocking of tradition and modernity

• High ‘value-for-money’ orientation

• Brand loyalties ‘clustered’, not ‘specific’

• ‘Relationship’ rather than ‘task’ orientation

‘Culture’ and ‘Context in lives’ critical to be relevant

 3. Heterogeneous Market

• Highly ‘multicultural’

• High variations in lifestyles, languages, food and consumption

habits

• Multiplicity of consumer segments

• High category and brand proliferation

• ‘Islands’ of consumers rather than ‘continents’

‘Differentiation’ and ‘focus’ critical to stay ahead

 4. Regional Market

• Regional differences in attitudes and behavior

• Regional lifestyle and consumption patterns

• Regionalized distribution

• Regional languages and media

‘Decentralized’ implementation works better

 5. Unorganized Market

• Parallel markets of ‘local’ brands and ‘grey’ markets

• Intermediates (assemblers, resellers) important part of marketing

• Multiplicity of distribution channels (Shops, Haats, Carts, Kiosks,….)

• Scattered markets lead to “marketing inefficiencies”

• Word of mouth and references significantly important

‘Adaptability’ a key requirement in marketing planning

 Key Learnings

• Requires a long-term perspective (and brand building)

• Innovation and adaptation is critical

• Need to straddle ‘multiple’ consumer segments to grow as
a mass brand (differentiated marketing, unified branding)

• ‘Clarity’ must to keep focus on key segments

• Need to ‘reach out’ to the consumers (both push and pull)

 Key Learnings

• Extensive distribution to ensure ready availability

• Need to look beyond ‘conventional’ channels

• Retailer influence strong, so retailer push very important

• ‘Value’ driven marketing (focus on ‘value’ rather than on ‘price’)

• Base marketing decisions on ‘facts’ not ‘fiction’