Indian Marketing Environment

Indian Marketing milieu Indian Marketing milieu For Global commercializeers India is non just a single country, it is further divided into tow divers(prenominal) countries. India and Bharat. India is tinted and appreciated by the whole beingness. It is growing at the second fastest rate, Its a outsourcing hub, handy addforce, Nuclear and space power and e reallything to be sleep with a world power. On the other hand, Bharat invovles p everyplacety, Illetracy at high takes, Corruption, Mismanagement, Violnce between releigions and like that. So in this way whosoever desires to bow in the indian market must(prenominal) ingest both the faces of this country.They should realize the serious challenges of doing business here like segmenting the market properly, Understanding countrys social and cultural issues, getting through governance beaurocracy and understading scotch and policy-making situation. thither produce been bunch of examples of companies who book tried to enter in Indian markets without taking c be of these issues and have failed badly. Now ahead understanding Indian Marketing milieu, it is Copernican to understand what is Marketing surround. M bekting Environment consist of factors and forces outside or inside the organzation that affect its business in the market.The trade surround is divided into tow different environments. 1) Micro Environment It consist of factors lose to the company that have a direct doctor on the organization strategy. This includes companys suppliers, distri simplyors, customers and competitors. 2) Macro Environment It consists of larger societal forces. And these argon beyond the control of the organization. These shape the characteristics of the opportunities and threats facing a company. For example, Economic, Cultural, Political, Demographic and Technological. Demographics EnvironmentIt is the analyse of the raftin monetary value of their age, sex, race, ethnicity, and location. Demographic cha racteristics strongly affect buy behaviour. The current creation of India is 1. 18 billion and it is the seond most populous country in the world next to China. And it is being projected that by 2010, it im spark off overtake china with 1. 53 billion. Obviously thats not a legal radical-fangleds just for marketers there lies lots of opportunities. Fast emergence of population accompanied with locomote income representation expanidng markets. And among this 1. 18 billion population, to a greater extent than 50% argon infra 25 years of age. and hat is the reason wherefore why tere is knotted ompetition in the atomic number 18a of soft drinks, networking sites, stylish fluid handsets, job portals and all. Estimated in 2008, around 71% population lives in rural areas so far after(prenominal) so overmuch migration to urban cities and that is the reason why low exist brands have started stoogeing rural cummunityites. They border Camps, Haat in melas to promote their products. Literacy rate, as estimated in 2009, for men it was 76. 9% and for women it was 54. 5%, thoug there is still wide gender disparity, but it has been observed that growth in women literacy rate is more than mens.So women is another(prenominal) big target for marketers. Specially for understructure based products, as we recognize women is the chief soul to select them for her home. Now, In India diffrent behaviour of diffrent age throng has been observed which is mentioned below. Adolescents The new-age teens are marketers delight. They do no earn but they are fond of cut downing. They spend lavishly on clothes, eating out, latest gadgets and are very keen t keep up with their friends in terms of possessions and lifestyles. They do not feel guilty of spending their parents money and put pres genuine on their parents to shell out money for them.They feel they unavoidableness to have a life of their deliver, and it should not be denied to them just because they are not earning. Youth The current youngsters are growing in a more media- enticed, brand conscious world thn their parents. Companies have to take their messages to the places where these youngsters frequent, whether on the internet, in a cricket stadium, or television. They do not judgement information reaching them but they will reserve their right to base their choices. They k straight what they want from their lives and the product or servies they buy.They hate to be persuaded and influenced. consequently companies would do well to leave them alone to make thier choices. They create their possess website, make movie with their own webcam, post their thoughts, pictures and writing online. Since they are sure about what they want, they prefer customized products and services. Companies are realizing that they have to provide roughthing unique and deep someoneal to in thier loyalty. plurality between 35 to 45 pack in this age group are settled in their professions and have toddle rs and growing children in thier home.The exert themselves in their profession because they realize that their move is likely to take off at this stage. They put in grand hours at office and they have to juggle endlessly between their responsibilities as spouses and parents and growing responsibilities at work. Parents may be staying with them or they may be living in different city. Income of the mess rises at a good rate and they are good spenders. somewhat of them may be acquire their nfirst car succession most of them thinking of upgrading their cars. They are also forthright to new gadgets for themselves and for house chairs.People in this age group want to live a good life and are constantly on a buying spree to improve their lifestyles. They dress well, dine out frequently, and look for opportunities to go on holidays. These days they are also keen to buy new houses very early in thier lives. They also computer program to retire early, and they plan thier finances acc rodingly. People Between 45 to 60 Some people in this age group are at the peak of their careers while some others are struggling to keep thier jobs. Children beome major priority for people in this age group.They spend less as they save resources to gunstock the higher education of their children. They are also worried about their own future and make a last-ditch efforts to put a privacy plan in place. People above 60 People in this age group live on a steady income. Some of them live with thier grown-up children and are part of their household. They do not spend much on themselves. Their family looks after their collectments. Most of their money spent on buying gifts for their children and grand children. They have to spend a substantial part of their payment on health-related issues and domestic help.Political Environment The semipolitical-Legal environment of a country is influenced by political structures and organizations, political stability, governments interventions, c onstitutional provisions, governments attitude, foreign policy. Businesses feel helpless in countries where contracts so-and-sonot be enforced by the judiciary of the land or it takes riotous clockin the judicial proceedings. Governments will need to provide an environment in which businesses can flourish. In turn, government inescapably businesses because the marketplace generates taxes. In this way government and businesses need each other.Also every aspect of marketing mix is posit to laws and restrictions. As in any part of the world, political influence is super essential to start a business in India. Especially if you are planning to start a multi billion business, some sort of political substitute is an absolute necessity. Not only for safeguarding the interest of the company but even to begin the process of getting the required sanctions, one requires hold in the high echelons of politics and administrative circles. Indian society is extremely plural. It is the bigge st democracy in the world with multi party political system.During the last equalise of decades, India has opened its market to world. It has absolutely become an open global market. Banking sector, indemnification sector and all fields of industrial and business are now open for multi national investment. Of course there are many obstructions to cross. And broadly all issues can overcome and establish business if you have the political patronage. India has a plural political system. With numerous political parties, national level and state level, it is very difficult to get a consensus among all parties for scratch line any business.Also these political parties have patronage of many factors, caste, creed and ideologies. There are political parties with left centric communist ideologies they are totally against direct foreign investments. But other parties, who are main popular opinion coalition partners, have right centric ideologies and open for foreign investments. In most of the states, mostly local political parties are ruling. Political parties require financial patronage from big business establishments. Many constituent states have realized the need for foreign investments in their state for a growth oriented economic situation.Hence the climate has changed a lot in India. So many privileges are offered to entrepreneurs to start business. With all these facilities, still political patronage is a must to start a business in India. eve after establishing the business, for a proper running of the business, political help is essential. It is in the main to sort out issues related to local taxes, labor problems and many much(prenominal) issues affecting the normal working of the companies. Some exapmles in which the government intermeddle has changed the way people did business India food items need to put unripened dot for all vegetarian items and a Red dot for all non-vegetarian items. each(prenominal) the packaged products need to have MRP( Maximum Retail price) on their package. Auto industries had to put in overpriced emission control in thier car-Euro II compliance popular transport in delhi like autorickshaws and buses have to use only CNG in place of Petrol or Diesel. Introduction of VAT in Delhi run batted in various guidelines to credit cards companies Introduction of 3G technology And very recently, India has asked border (Research in Motion), maker of Blackberry, to install its server in India for tracking its courier &038 enterprise mail services. nd if they dont do so, there services will be banned, which will affect their business in India. Social-Cultural Factors Social factors influence the products people buy, the prices they are willing to pay, the effectivness of speific promotions and how, when and where people purchase products. They change bit by bit and some changes will be imperceptible if not watched closely. That is the reason why it is most difficult variable for marketing managers t o forecast, influence and integrate into marketing plans.One thing India faces no competition is its varied culture and heritage. It has great innovation in cultural practices, languages, customs and traditions. In india people before starting a new business consult astrologers. Supersition are a part of life like they avoid eating non-vegetarian on Tuesdays referable to some releigious reasons. People here consider cows a holy puppet and it is worshipped and this is the reason behind failure of KFC in India in 1997 when they inroduced backbite items in their Menu. Values A value is a strongly held and constant belief.In India a persons values are key determinants of what is important and not important to him, how he reacts in a particular situation and how he behaves in a social situations. now educated Indian consumer do not tolerate ineffective products and sloppy behaviour of marketers. He has become more inquisitive, discriminating and demanding. Comapnies should learn t o expect tough customers. Time Starved Customers Today many customers place value of non-material accomplishments, such as having control over their lives, and being able to take a day off when they want.As work life gets longer andstressful, people are spending their leisure term recuperating. Casual Frdiays and Home offices are further blurring the boundaries between work and leisure. People will increasinly place more value on time than money. sextuple Lifestyles Today People lead multiple lifestyles. They choose products and services that sustain diverse needs and interests rather than conform to traditional streotypes. A person can be a teacher and also a a gourmet, fitness enthusiast and so many other things. Each of these lifestyles is associated with different products and services and is a otential customer for companies. This has summationd the complexities of consumers buying habits. A person may go on holidays to exotic holiday locations and may spend a fortune to tr avel, but may dine in very ordinary restaurants. Changing structures of Families The growth in the number of working women means an increase in dual-income families. These families have greter household income but less time for family activities. More working women has meant an inreasing demand for time-savng devices and products, particularly for th kitchen.It is being spy that cost is more prominent in deisions made by women, whereas feature is relativly more important to men. This will have important influence when comapnies foundation marketing mixes for products where the women is prime decision maker. Some examples hwo this factor has affected the market Hindustan Unilever limited markets different blends of tea under the same brand distinguish to address the regional preferences of consumers. Gits India specialized in supplying gourmet mixes to housewives, knows the render well of North &038 South India. MTV facebook, CNN, Discovery has completly changed the values of Indian consumers. Automobiles &038 redress companies potrays themselves as a family product in their advertisements. native Environment Natural environment includes factors such as seasonal variations, climatic differences, soil conditions and internal terrain. In consumer markets, the natural environment affects companies because of the differences in the nature of products bought by consumers due to variations in seasons and climate. In difficult terrains like hilly areas, it is difficult and expensive to get products to the customers..It becomes more expensive to crap distribution channels for companies whose target markets are geographically disperse. There are so many environmental issues in India for example Extinction of Tigers, Pollution in urban cities, pee shortages, Deforestation etc. So a company raising even a single issue could do well here. How can we leave behind to mention Ideas initiative to save paper by usine mobile phones. Its prominent advertisements &0 38 promotional campaigns has really catched our attention. Government also doing thier best to save our environment like PUC(Pollution under control) is must for all the ehicles, soap industry must have to increase its biodegrability, strict laws against killing tigers, encouraging use of solar energy in big government head offices. Technological Environment Technology is a good deal everywhere today-it has changed the way we prepare food, we buy our clothes, and we build our homes. It has changed the way we send our posts, we take our exams, we fill up our forms and the way we quicken to comfort and entertainment. Computers, the most visible impact of technology have come a long way from being huge machines locked up in a room to tiny palmtops with more features added everyday.It has all the functions of a calculator, a music player, a home theatre, a video camera and practically a better tool than a pen and a public opinion poll of paper. With more features and functions, compu ters have led to loss of jobs for millions. In this context, we can look at the impact of technology, especially computers, in the Indian context. Cloud computing, express over internet, online social involvement, 3G technology, E-banking are some of the remarkable technological improvements that has changed the lifestyles of Indian consumers. Today companies offering outdated or obsolete technology couldnt survive.People are demanding up-to-date gadgets and gizmos. And this is something learned very well by Nokia in India, which introduces new and innovative handsets every month. In case of banking transactions, Earleir people used to go to banks for each transactions. Then they start doing it over the internet at home or offices and today they are demanding banking on the move i. e. on thier mobile phones. Also IT sector has made india one the biggest outsourcing hub in the world. So basically if a company wants to survive and stay ahead in India market, it needs to keep develop ing new products through its R.Econmic Environment The economic environment can have a major impact on businesses by affecting patters of Demand and Supply. Companies need to monitor these indicators to survive in the market. Income of Indian consumer has increased and now they are more and more high example of living products. That is the reason why Harley Davidson, Porshe has set up thier showrooms here. After ostentation next issue is Infation which is rising at constant speed increase in prices of fuel, Food items has really impacted producers here.