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MDI Marketing Compendium 2016
MDI Marketing Compendium 2016
GD-PI
Compendium
2016
Table of Contents
MARKETING ........................................................................................................................... 3
SWOT ANALYSIS................................................................................................................... 10
Insurance sector............................................................................................................... 12
E-COMMERCE ...................................................................................................................... 22
IT Sector .............................................................................................................................. 23
MARKETING
It is an art and science of choosing target markets and getting, keeping and growing customers
through creating, offering and freely exchanging products and services of value with others.
[Courtesy Kotler]
NEED
• It is state of felt deprivation for basic items such as food and clothing and complex
needs such as for belonging. i.e. I am hungry
• Example– Agriculture sector, Real Estate, FMCG, etc.
WANT
• Wants are a step ahead of needs and wants are not mandatory part of life .For example, you
need to take a bath but you want take bath with the best soaps.
• Example– Hospitality industry, Consumer Durables etc.
DEMAND
• When an individual wants something and has the ability to buy it, then these
wants are converted to demands.
• Example of demands – Cruises, BMW’s, 5 star hotels etc. provided you can buy
them.
Market -> Identify needs, wants and demands -> Offer products to satisfy
either needs, wants or demands.
SEGMENTATION
It is the process of identification of prospective buyer groups (segments) that have common
needs/tastes/wants and that might respond similarly to a marketing action.
Why Segment
Simply because you cannot cater to all of them using same product!
EXAMPLES OF SEGMENTATION:
TARGETING
• Targeting is the actual selection of the segment you want to serve the target market is the
group of people or organizations whose needs a product is specifically designed to satisfy.
• It involves directing your marketing efforts towards Target Customer Segment to maximize
to appeal and marketing efforts.
POSITIONING
Positioning is the use of marketing to enable people to form a mental image of your product in
their minds (relative to other products)
EXAMPLES:
Porter’s 5 Forces
Product Price
What are you selling? How much does it cost?
Who needs it? Who sells for more?
Who knows they need it? Who sells for less?
Who wants it? Who pays for delivery and packaging?
4P's
Place
Promotion
Where is it?
Who knows about your product?
How much do they know? Where can the customer get it
from?
Do they know it in the best light? Where
and for how much will you advertise? How can it be seen?
An IPod is a product and Apple is a brand. ‘Soap’ is a product and ‘Dove’ is a brand.
Brand may be defined as "A name, term, design, symbol, or any other feature that identifies one seller's
product distinct from those of other sellers"
• A product can be copied by the customer but a brand is unique (e.g. Micromax can make
smartphones but can never make an ‘IPhone’)
• A product is something that is made in the factory while a brand is something that is bought by
the customer.
• A brand sets a company’s products apart from competition. It’s the perception of the product in
the minds of the consumers e.g. Artists signing their work.
• Products can become obsolete, but brands are timeless (the brand equity may change over the
years) e.g. the cassette has become obsolete but the Elvis Presley brand is timeless and people still
listen to the music in digital form.
• Brand is the company’s definition of what they have to offer. The Brand has a personality and refers
to the promise that the company makes to their customers.
Marketplaces are difficult to execute against because they require adequate and simultaneous liquidity on the
buyer and seller side. Once adequate liquidity has been established and the ‘flywheel is spinning’, these
businesses exhibit strong network effects (because a market that has the most buyers will attract more
sellers, and the increasing base of sellers will in turn attract more buyers).
So once a marketplace becomes dominant, it scales organically and often exhibits ‘winner take all’
characteristics.
Additionally, because marketplaces are essentially technology platforms that provide tools for buyers and
sellers to participate and a trusted environment that facilitates price discovery and transactions (vs.
actually being responsible for fulfilling transactions), they can scale very rapidly.
For example shipping costs are higher because multi---product orders are fragmented across vendors and
shipped separately. And this in turn may lead to customer dissonance because a customer won’t receive their
entire order at one time.
Flipkart’s business model --- the announcement means a change in the way Flipkart does business. With a
marketplace model, Flipkart will no longer have an inventory of its own, rather buyers can deal with sellers
directly and the delivery will be done by Flipkart. The model will be similar to eBay India.
Going forward, users will be able to compare sellers and get the best prices at varied service levels for most
products. Flipkart will also introduce this model to categories like clothes, shoes among others.
SWOT ANALYSIS
BANKING SECTOR
Functions of a Bank
The banks match up savers who want to lend out their idle funds for a short period of times with borrowers who
require funds for a long term. This gives the bank a position where they can borrow short and lend for long. Banks
are able to do so because of the sheer number of depositors, that is, a bank seeks a large number of depositors
such that any single depositor is not in a position to cause liquidity issues for the bank. Also with a large number
of depositors, the odds are that the daily deposits would exceed the daily withdrawals. Secondly the banks are
capable of pooling relatively miniscule deposits to fund a bigger investment. Third function that a bank carries out
is that it helps in reducing risks of a small depositor. If the depositor were to invest directly or lend directly, he
would face problems in all of the above three aspects, and hence the need for banks.
Product (Services)
Banking provides intangible services like every other servicing firm. Banks need to move with time and provide
their customers with products that make the banking experience easier for them. These were in the form of ATM
cards and net banking previously. Now banks have started moving into m-commerce by introducing m-wallets to
keep banking at the fingertips of the customer. Even in the financial products like loans, insurance and mutual
funds, banks needs to be offering diverse products to capture various segments of the market.
Price
The price is the most important aspect of the marketing mix even for a bank. The prices charged would be the
interest rates levied on the lending. For other prices such as commissions, the bank must decide on them
prudently so as to maintain its rapport with the customers.
Place
The distribution of the services is done through the branches of the banks. For example, SBI has over 17,000
branches through which it services its customers and therefore enjoys a very high penetration, particularly in
rural areas, relative to competition. Extended distribution is through ATMs, phone banking & online services
including net banking.
Promotion
Promotion is as important in banking sector as in any other sector. Primary medium of promotion are TV and
print ads. Certain products like m-wallets have been made available to users who are not a customer of a bank to
also act as a promotion tool for the bank. Digital marketing also plays a lot of importance in the era of rapid
internet penetration in the country.
Insurance sector
India's life insurance sector is the biggest in the world with about 360 million policies which are expected to
increase at a compound annual growth rate (CAGR) of 12-15 per cent over the next five years. The insurance
industry plans to hike penetration levels to five per cent by 2020. The country’s insurance market is expected to
quadruple in size over the next 10 years from its current size of US$ 60 billion. During this period, the life
insurance market is slated to cross US$ 160 billion. The general insurance business in India is currently at Rs
78,000 crore (US$ 11.7 billion) premium per annum industry and is growing at a healthy rate of 17 per cent.
• As the income increases the spending on consumer goods, automobiles, travel which are various
insurance lines.
• The awareness about insurance among people has been increasing along with the number of providers
and the range of products available at competitive prices.
• More than two-thirds of India’s population lives in rural areas which are untapped when it comes to
insurance products. Micro insurance can be focused upon to ensure coverage in these areas.
• GIC Re and 11 other non-life insurers have jointly formed the India Nuclear Insurance Pool with a capacity
of Rs 1,500 crore (US$ 226 million) and will provide the risk transfer mechanism to the operators and
suppliers under the CLND Act.
• Also, the council predicts life insurance penetration – percentage of insurance premium to GDP – to reach
5 per cent by 2020 from its current 3.2 per cent.
• Confederation of Indian Industry (CII) predicts the growth rate for India’s insurance industry in FY 2013–
14 to be around 5 per cent.
• It also forestalls 60 per cent of non-life insurance companies to record an average growth of more than 10
per cent.
CONSUMER DURABLES
The Indian Consumer Durables segment can be segmented into three groups: Consumer
India is expected to become the fifth largest consumer durables market in the world by 2025. The consumer
electronics market is expected to increase to USD 400 billion by 2020. The production is expected to reach USD
104 billion by 2016.The sector is expected to double at 14.7 per cent compound annual growth rate (CAGR) to
USD 12.5 billion in FY15 from USD 6.3 billion in FY10.
Hindustan Unilever Ltd. Vim, Rin, Wheel, Surf Excel, Domex, Comfort Fabric Conditioner
Reckitt Benckiser Dettol, Harpic, Lizol, Colin, Easy off Bang, Mortein, Vanish, Air Wick
Key points -
• India’s personal care products’ market had total revenue of $ 10.1 B in 2014, representing a compound annual
growth rate (CAGR) of 10.5% between 2010 and 2014.
• For the five year period of 2014-2019, the industry is anticipated to grow at CAGR of 12.1%, which would drive
the market to $18.3 B by the end of 2019.
• India is the 6th largest grocery market in the world, estimated to be worth Rs. 21, 60,000 crore.
PepsiCo 7UP-Nimbooz
Masala Soda
Economic liberalization
• Improved retail format
• Multi-cuisine
• Emergence of contract farming
• Infrastructure development
• Favorable demographic trends; emergence of urban middle class
• Rising disposable incomes
Introduction
The Indian Chemicals market has experienced strong overall growth in the recent historical period. The Indian
chemicals market generated total revenues of $107.5bn in 2014, representing a compound annual growth rate
(CAGR) of 9.1% between 2010 and 2014.
The Paint industry in India is expected to grow at 12-13% annually over the next five years from INR 280 billion in
FY13 to around INR 500 billion by FY18. FY13 was a challenging year for the industry as a whole due to subdued
demand across key sectors and rising inflation.
Base chemicals:
Petrochemicals, man-made fibers, industrial gases, fertilizers, chlor-alkali, and other organic and inorganic
chemicals
Specialty chemicals:
Dyes and pigments, leather chemicals, construction chemicals, personal care ingredients and other
specialty chemicals
Pharmaceuticals:
Agrochemicals:
Biotechnology:
Major Players
1. Chemicals Sector
a. RIL – Reliance India Ltd.
b. TCL – Tata Chemicals Ltd.
c. United Phosphorus Limited (UPL)
d. Pidilite Industries Limited
e. Nirma Ltd
2. Paints Sector
a. Asian Paints
b. Berger Paints India Limited
c. Kansai Nerolac Paints Ltd
d. Jenson & Nicholson (I) Ltd
e. Shalimar Paints
f. British Paints
g. Snowcem Paints
h. Dulux Paints ( AkzoNobel )
Telecom Industry
Overview
• The Indian telecommunication services market is generating total revenues of $42.4bn in 2014,
representing a compound annual growth rate (CAGR) of 5.2% between 2010 and 2014.
• Market consumption volume increased with a CAGR of 10.9% between 2010 and 2014, to reach a total of
935.1 million subscribers in 2014 (95% pre-paid). The market's volume expected to rise to 1,034.4 million
subscribers by end of 2019, representing CAGR of 2% for the 2014-2019 period.
• The wireless telecommunication services segment is the market's most lucrative in 2014, with total
revenues of $38.0bn, equivalent to 89.5% of the market's overall value. The fixed line telecommunication
services segment contributed revenues of $4.5bn in 2014, equating to 10.5% of the market's aggregate
value.
• The performance of the market is forecast to accelerate, with an anticipated CAGR of 5.8% for the five-
year period 2014 - 2019, which is expected to drive the market to a value of $56.2bn by the end of 2019.
Comparatively, the South Korean and Chinese markets will grow with CAGRs of 1.6% and 9.5%
respectively.
• With a subscriber base of nearly 1002 million by the end of May 2015, India has the second-largest
telecom network in the world
• With 267.39 million internet subscriptions at the end of December 2014, India stood third highest in
terms of total internet users in 2013. It is expected that India will be the second largest country in terms
of internet subscribers in 2015
• Urban teledensity stood at 148.9 per cent and rural teledensity at 48.6 per cent as on May 2015, up from
2.29 per cent and 9.45 per cent, respectively, in May 2014
E-Commerce
Definition: Use of internet to buy and sell products, idea, technology and services.
E-commerce in India:
The number of internet users in India has reached 354 million by the end of June 2015. The latest figure indicates
that India has more internet users than the population of the US and become the second largest country by the
number of internet users after China. According to the report published by the Internet And Mobile Association of
India (IAMAI), the internet users in India has grown 17% in the initial 6 months of this year, adding 52 million new
users.
The number of mobile internet users in India also grew from 173 million in December 2014 to 213 million users by
the end of June 2014. Nearly 128 million mobile internet users belonged to the urban population of India, the rest
45 million reside in rural areas of the country. It is expected that the mobile internet users in India will grow up to
314 million by 2017.With 352 million internet users, India is still at the helm of just 27% penetration while China
and the USA have clocked 51% and 87% penetration, respectively.
CRISIL Research believes that rising disposable incomes and rapid urbanisation make India a perfect target market
for global e-Commerce players: the Indian e-retail market (comprising online retail and online marketplaces) is
expected to surge by over 2 times to Rs 527 billion by 2015-16. It is therefore not surprising that global players
smell an opportunity, especially in the e-marketplace segment. Another factor that attracts global players to India
is that online retail penetration is
significantly low, at 1 per cent of the
overall retail market (or about 10 per
cent of the organised retail in 2013-
14) as compared to the US, UK,
Russia, etc. This leaves global players
with a sizeable opportunity to
expand their reach in India.
IT Sector
Market value: The Indian IT services industry grew by 10.2% in 2014 to reach a value of $13 billion. The Indian
software market grew by 10.9% in 2014 to reach a value of $3.7 billion.
Key is to focus on great customer experiences - How customers buy, want to buy or advocate for your product or
service often are directly tied to the experience they have had with you. Understanding the Digital Customer
Experience is critical. And you can’t do this once – the customer experience is a continuous cycle of checking,
knowing and improving
Types of IT Business
• IT Consulting • Software Product • Information
• Hardware Services Based Security
• Software Services
Trends
Global:
1 Many governments worldwide have started focusing on preventive treatment rather than cure by
investing in pre-emptive measures
2 More and more patients have started relying on self medication hence demand for over the counter
drugs and home delivery of drugs will increase along with the search for more comprehensive
information
3 Increasing regulations being imposed by healthcare policy makers and payers on what can be
prescribed by doctors.
4 Direct to consumer advertising has had little to no impact on the sale of most products and can end up
damaging the reputation of the firm.
5 E-prescribing is catching up globally. It was basically done to reduce prescribing errors but will also
allow healthcare payers to influence the decision. This will also give more power and access to
information to the consumer
Indian:
1 Low distinction between local and multinational players, both need to collaborate with stakeholders
within and outside the industry in order to become market leaders
2 Mass therapies in both acute and chronic areas will remain more important even though the share of
specialty therapy will increase drastically.
3 Market share in rural areas will increase to 25% though the growth will still be driven by metro and
Tier-I markets.
4 Consumption of medicines via hospitals will rise by 25-30% and the remaining will be retail
5 Five emerging opportunities that are expected to scale up in near future are: Patented products, public
healthcare, consumer healthcare, vaccines and biologics
Automobile Sector
With plenty of options in various
categories coupled with ever
dynamic market and evolving
consumers, India has become a battleground for automobile manufacturers. In the market,
manufacturers offer similar features & price points. In such a complex scenario, it is the marketing
strategies that make all the difference in the balance sheets.
Distribution Channel
Trends
Branding innovation: The
trend of commercial advertisements on
personal vehicles has recently been introduced
in the Indian market. Facilitators like
emifreecar.com fund your brand new car in
exchange of the surface area of your vehicle
which it rents out to advertisers.
Luxury Car Segment: When the mass market of cars in India tumbled, luxury segment grew at a
steady pace. This paradoxical trend is a huge marketing opportunity for luxury car segment.
TATA T1 Prima Truck Race: Tata Motors announced the launch of the T1
PRIMA TRUCK RACING CHAMPIONSHIP in Delhi to bring truck racing to
India for the first time.
Digital Marketing : Automotive industry is known for being futuristic in its outlook towards societal
trends. Whether it is bringing LED technology to interiors & exteriors of cars or creating fluidic dents
into sleek exteriors of cars of bygone era. This industry rides on the front of the wave to future.
Digital Marketing
For automobile companies, digital marketing presents an opportunity to reach wider, bigger
audiences. Particularly with big ticket retail items like cars, the customer journey starts long before
they reach the showroom. Potential customers are aware of what is available to them – often
before they’re even considering making a purchase.
INTERESTING ADS