How to communicate with consumers in India

1. UNDERSTANDING INDIA:
OPPORTUNITIES IN DIVERSITY
PRANESH MISRA
CHAIRMAN & MANAGING DIRECTOR, BRANDSCAPES INDIA
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2. INDIA:
WELCOME TO A COUNTRY THAT ADDS POPULATON OF
AN AUSTRALIA EACH YEAR
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3. 1. UNDERSTAND THE SPIRIT OF THE MARKET
STRATEGIES FOR SUCCESS
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4. Where bullock carts co-exist with Asia’s largest wind farm in Dhule…
In little over a decade, Suzlon Energy has grown
into the world's fifth-largest producer of wind
turbines, with each machine selling at around 2
million dollars. 90% of orders come from
markets outside India, for the most part the US,
South America, and China.
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5. A country with twice the number of English speakers as the UK
Top 5 English (MM)
Speaking Countries
USA 263
India 125
Nigeria 79
UK 60
Russia 60
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6. Where English is the second most spoken language…
Top 5 Languages (MM)
Spoken in India
Hindi 552
English 125
Bengali 91
Telgu 85
Marathi 84
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7. Two new religions that unite the country…
CRICKET
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8. And BOLLYWOOD!
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9. Where the richest live side by side the poorest….
Number of Indian Billionaires in 2010: 52*
Net Worth
Rank Name Citizenship Age ($bil) Residence
1 Carlos Slim Helu Mexico 70 53.5 Mexico
& family
2 William Gates III United 54 53.0 United
States States Population Below
3 Warren Buffett United 79 47.0 United Poverty Line:
States States
4 Mukesh Ambani India 52 29.0 India
5 Lakshmi Mittal India 59 28.7 United 25%**
Kingdom
6 Lawrence Ellison United 65 28.0 United
States States
7 Bernard Arnault France 61 27.5 France
8 Eike Batista Brazil 53 27.0 Brazil
9 Amancio Ortega Spain 74 25.0 Spain
10 Karl Albrecht Germany 90 23.5 Germany
• * Source: Forbes List., March 1, 2010
• ** Source: CIA Handbook
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10. 2. DEFINE YOUR CORE CONSUMER SEGMENT:
STRATEGIES FOR SUCCESS
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11. One view of the the
pyramid of Capitalist
System….
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12. Or,
The Other View?
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13. So, which India are you interested in?
The Rich India?
The Middle India?
The BOP India?
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14. There is a gold mine in each of the tiers of the Pyramid
Income Population % of Income GDP per capita Total GDP
Percentile (MM) ($) ($ Billion)
Class (Top 10%) 109 34.1% $ 1,878 $ 204.6 B
Mass (Next 30 %) 326 36.1% $ 662 $ 216.6 B
BOP (Last 60%) 653 29.7% $ 265 $ 178.2 B
Source: Rama Bijapurkar, We are like that only.
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15. CLASS INDIA: A Pen Picture
• Largely located in Metros & Mini-metros
• Slightly older – median age of 35 - 45
• Access to almost all comfort goods
• Save substantial portion of income
• Speak and think in English
• Send children to English medium schools
• Employ at least one driver and a full-time household
help
• Well educated
• Well travelled
• Multiple media access: Print, TV, Internet, Radio, Out-
door
• Exposed to the world – desire the best quality
• Confident & Optimistic
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16. MASS INDIA: A Pen Picture
• Bias towards the urban centers
• Younger, median age 25 – 35 years
• Strivers: Highly competitive in every area of life
• Full of dreams and ambitions – of bettering their lives
• Invest in education: own and the next generation
• Familiar with English, but probably not the main language
• Increasing global orientation
• Familiar with new fashion, status brands, lifestyle trends
• Mass market media exposed: TV leads, followed by press
and radio
• Optimistic and hungry – for ideas and opportunities
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17. BOP India: Pen Picture
• Bias towards rural, but substantial numbers in urban areas
as well
• Migrate from villages and small towns to find jobs in large
centers
• Live in slums and tenements in cities
• Not interested in parents’ profession (typically agriculture)
• Acquire consumer goods – at lower unit price levels
• Find it difficult to make ends meet.
• High level of unemployment or disguised unemployment
• May not have steady source of income
• Main media exposed: TV and out-door
• Eager to upgrade lifestyle, but in small steps.
• Dreams are realistic
• Still, optimistic about the future
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18. Further complexities of defining your core segment…
CLASS MASS BOP
Age Cohorts Teens/ Young Adults, Youth, Middle Age, Mature
Geographic location Metro, Mini-metro, Other Urban, Affluent Rural, Other Rural
Consumer orientation Image or prestige seekers, benefit maximisers, cost optimizers, cash
minimisers, fixed price seekers, etc.
Cultural orientation Tradition-driven, Open but still value tradition, Embracing new culture
Consumer experience Category familiar, First time users, Non-users
Economic sector Government, Agriculture, Manufacturing, Services, New Economy
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19. An example for defining your core consumer segment …
CLASS MASS BOP
Age Cohorts Teens/ Young Adults, Youth, Middle Age, Mature
Geographic location Metro, Mini-metro, Other Urban, Affluent Rural, Other Rural
Consumer orientation Image or prestige seekers, benefit maximisers, cost optimizers, cash
minimisers, fixed price seekers, etc.
Cultural orientation Tradition-driven, Open but still value tradition, Embracing new culture
Consumer experience Category familiar, First time users, Non-users
Economic sector Government, Agriculture, Manufacturing, Services, New Economy
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20. 3. DEVELOP THE RIGHT PRODUCT / SERVICE
STRATEGIES FOR SUCCESS
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21. Don’t build a car when you need a bullock cart..
• Hindustan Motors created a “Rural Transport Vehicle” to replace the bullock cart:
– Rugged and hardy
– Narrow village streets
– Tight turning radius
– Good ground clearance
– Folding seats to transport 20 people or two tons of goods
– Eight gears to go from the rough rural terrains to the highways
• Mahindra realized the need for a “rugged car”:
– Mahindra created a market for a rugged car
– More powerful than a car, but less than an SUV
– Ample space for people or goods
– Great ground clearance
– Affordable price
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22. Innovate Product, Services and Communication to overcome local challenges..
• How to sell overhead projectors for a market with unreliable electric supply?
• How to get Indians to adopt cereals and fruit juices into their daily breakfast – which traditionally
consisted of Indian bread and curries?
• How to get children to brush their teeth twice a day?
• How to get BOP consumers who cannot afford shampoos to buy your shampoo?
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23. 4. COMMUNICATION: DISTIL THE INSIGHT
STRATEGIES FOR SUCCESS
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24. Four Stages of Brand Communication
What can I do How would I What role do I
Who Am I?
for you? make you feel? play in your life?
• Brand Name • Product • Emotional • The larger
• Heritage Benefits Benefits purpose
• Category • Reasons to • Reasons to • How do I
believe believe improve life?
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25. Pepsodent Toothpaste
What can I do How would I What role do I
Who Am I?
for you? make you feel? play in your life?
• Brand Name • Product • Emotional • The larger
• Heritage Benefits Benefits purpose
• Category • Reasons to • Reasons to • How do I
believe believe improve life?
What can I do How would I What role do I
Who Am I?
for you? make you feel? play in your life?
• Pepsodent • Fight against • Confident that • Make me a
• Challenger to oral germs my family is better mom!
Colgate longer well protected. • By allowing
• Oral health • Clinically • Even when occasional
proven they indulge indulgences
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26. Pepsodent Toothpaste
What can I do How would I What role do I
Who Am I?
for you? make you feel? play in your life?
• Brand Name • Product • Emotional • The larger
• Heritage Benefits Benefits purpose
• Category • Reasons to • Reasons to • How do I
believe believe improve life?
What can I do How would I What role do I
Who Am I?
for you? make you feel? play in your life?
• Pepsodent • Fight against • Confident that • Make me a
• Challenger to oral germs my family is better mom!
Colgate longer well protected. • By allowing
• Oral health • Clinically • Even when occasional
proven they indulge indulgences
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27. Pepsodent Toothpaste
What can I do How would I What role do I
Who Am I?
for you? make you feel? play in your life?
• Brand Name • Product • Emotional • The larger
• Heritage Benefits Benefits purpose
• Category • Reasons to • Reasons to • How do I
believe believe improve life?
What can I do How would I What role do I
Who Am I?
for you? make you feel? play in your life?
• Pepsodent • Fight against • Confident that • Make me a
• Challenger to oral germs my family is better mom!
Colgate longer well protected. • By allowing
• Oral health • Clinically • Even when occasional
proven they indulge indulgences
28

28. Pepsodent Toothpaste
What can I do How would I What role do I
Who Am I?
for you? make you feel? play in your life?
• Brand Name • Product • Emotional • The larger
• Heritage Benefits Benefits purpose
• Category • Reasons to • Reasons to • How do I
believe believe improve life?
What can I do How would I What role do I
Who Am I?
for you? make you feel? play in your life?
• Pepsodent • Fight against • Confident that • Make me a
• Challenger to oral germs my family is better mom!
Colgate longer well protected. • By allowing
• Oral health • Clinically • Even when occasional
proven they indulge indulgences
29

29. Pepsodent Toothpaste
What can I do How would I What role do I
Who Am I?
for you? make you feel? play in your life?
• Brand Name • Product • Emotional • The larger
• Heritage Benefits Benefits purpose
• Category • Reasons to • Reasons to • How do I
believe believe improve life?
What can I do How would I What role do I
Who Am I?
for you? make you feel? play in your life?
• Pepsodent • Fight against • Confident that • Make me a
• Challenger to oral germs my family is better mom!
Colgate longer well protected. • By allowing
• Oral health • Clinically • Even when occasional
proven they indulge indulgences
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30. THANK YOU
PRANESH.MISRA@BRANDSCAPESWORLDWIDE.COM
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