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GD-PI
Compendium
2016

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Table of Contents
MARKETING ........................................................................................................................... 3

MARKETING V/S SELLING ................................................................................................... 3

NEED, WANT, DEMAND & DESIRE .......................................................................................... 3

SEGMENTATION, TARGETING & POSITIONING ....................................................................... 4

Porter’s 5 Forces .................................................................................................................... 6

THE FOUR Ps of marketing ..................................................................................................... 6

Pull vs Push Communication .................................................................................................. 7

7Ps EXTENDED MARKETING MIX (mainly for service sectors) ................................................. 7

PRODUCT v/s BRAND ............................................................................................................. 8

PRODUCT LIFE CYCLE ............................................................................................................. 8

What are marketplaces? ........................................................................................................ 9

SWOT ANALYSIS................................................................................................................... 10

BANKING SECTOR ................................................................................................................ 11

Insurance sector............................................................................................................... 12

CONSUMER DURABLES ........................................................................................................ 13

HOME CARE SECTOR ............................................................................................................ 14

PERSONAL CARE SECTOR ..................................................................................................... 15

FOOD & BEVERAGES ............................................................................................................ 16

PAINTS & CHEMICALS .......................................................................................................... 19

TELECOM INDUSTRY ............................................................................................................ 21

E-COMMERCE ...................................................................................................................... 22

IT Sector .............................................................................................................................. 23

INDIAN PHARMA INDUSTRY ................................................................................................. 24

Automobile Sector ............................................................................................................... 26

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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]

In simple terms, it is meeting needs profitably.

E.g. : Godrej, India’s only white goods producer realized


a need for a low cost cooling solutions in the rural India
and came up with Chotukool--- a mini refrigerator. To
make sure they are able to reach out to those remote
homes, Godrej tied up with India Post.

MARKETING V/S SELLING


S. No Selling Marketing
1 Driven by the needs of sales people Driven by the needs and wants of consumers
2 Company Manufactures the product first Company first determines customer’s needs and
wants and then decides out how to
deliver a product to satisfy these wants
3 Management is sales volume oriented Management is profit oriented
4 Planning is short---run---oriented in terms of Planning is long---run---oriented in today’s products
today’s products and markets and terms of new products, tomorrow’s markets
and future growth
5 Emphasis is on the product Emphasis on consumer needs wants

NEED, WANT, DEMAND & DESIRE

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.

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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, TARGETING & POSITIONING

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:

Segmentation Basis : Age, Company : GSKCH

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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:

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Porter’s 5 Forces

THE FOUR Ps of marketing

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?

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Pull vs Push Communication


Promotion mix to communicate the marketing message using relevant media in order to create Pull/Push for the
product/service.

7Ps EXTENDED MARKETING MIX (mainly for service sectors)

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PRODUCT v/s BRAND


A bag that carries the Louis Vuitton (LV) Brand! Is it JUST A BAG? Wrong!

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"

Few differences between the two

• 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.

PRODUCT LIFE CYCLE

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What are marketplaces?


These are platforms that enable a large, fragmented base of buyers and sellers to discover price and transact
with one another in an environment that is efficient, transparent and trusted.

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.

Marketplaces in ecommerce – how different are they really?


The reality is that most of the marketplace models we see in ecommerce are not ‘platforms’, as described
earlier. For example, in ecommerce marketplaces the prices are fixed, not discovered, and the ecommerce
company is responsible (from the customer’s perspective) for several aspects of the post---purchase
experience, such as fulfillment and customer service. The reality is that to the customer, many of these
marketplace companies look identical to inventory---led ecommerce businesses. In other words, these
models are simply one possible response to the constraints and challenges of traditional inventory models.
And the marketplace model is not without its downsides

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.

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SWOT ANALYSIS

SWOT Example: Target Market

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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.

Marketing Mix in Banking

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.

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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.

Growth Drivers of Insurance sector in India


• India is a growing economy with the increasing number of working population in the country; the
disposable income is also increasing.

• 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.

Future of Insurance sector


• India’s insurable population is anticipated to grow to 750 million by 2020, with life expectancy projected
to reach 74 years around the same period. The council believes that this favorable Indian demography
would cause more people seeking out life insurance.

• 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.

Recent News to be checked


Check the policy rate by RBI; Read about ‘Jan Dhan Yojana’ and have some statistics regarding that; Read about
RuPay cards

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CONSUMER DURABLES
The Indian Consumer Durables segment can be segmented into three groups: Consumer

White goods Brown goods Consumer electronics

· Microwave Ovens · TVs


· Air conditioners · Audio and video systems
· Refrigerators · Cooking Range
· Washing Machines · Chimneys · Electronic accessories
· Sewing Machines · Mixers · PCs
· Watches and clocks · Mobile phones
· Grinders
· Cleaning equipment · Digital cameras
· Electronic fans
· Other domestic appliances · DVDs
· Irons · Camcorders

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.

Porter’s Five Forces Analysis:

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HOME CARE SECTOR


Household Care industry
mainly comprises of the
products, which we use in our
daily life to take care of our
household. These items include
air fresheners, dishwashing
products, chlorine bleach,
insecticides, polishes, laundry
care, toilet care, surface care
and varied other products.
Growing urbanization along
with increasing awareness
about home hygiene among
the inhabitants of India has led to the huge growth of the home care products.
Policy and Regulations:
Some of the policies and regulations affecting this sector are:
1 Goods and Services Tax
2 FDI in Multi Brand Retail
3 Swachh Bharat Abhiyan
Some trends in the sector:
Rise of private labels: International manufacturers continued to dominate the home care market However, private
labels of Future Group, Aditya Birla, and Reliance also give tough competition to mainstream brands in modern
retailing channels with their price competitiveness.
Modern Retailing: Increasing modern retailing outlets in smaller cities helped boost home care sales. The increasing
supermarkets and hypermarkets in tier 1 and tier 2 cities offer the convenience of shopping in a comfortable
environment, attractive discount offers and private labels.
Focus on rural markets: Increasing disposable income in rural India is driving manufacturers to revamp their
distribution into the countryside. Rural markets are also responsible for redefining distribution channels, marketing
and promotion mixes.

Major players in the Home Care Segment


MAJOR COMPANIES MAJOR PRODUCTS IN HOME CARE SEGMENT

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

Proctor and Gamble Ambi Pur, Ariel, Tide

Godrej (GCPL) Good Knight, Hit, Aer, Ezee

Dabur Sanifresh, Odonil, Odomos, Odopic

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PERSONAL CARE SECTOR


The personal care products market consists of skincare, hair care, personal hygiene products, make-up,
fragrances, oral hygiene and other products like baby care, male toiletries and feminine care.

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.

Growth Drivers (for personal care industry in India)-


• Increase in disposable income
• Increase in awareness about brands
• Rise in organised retail
• Growth in rural segment

Challenges (to India’s personal care industry)-


• Rising cost of packaging is increasing the cost of products
• Depreciation of rupee
• Counterfeit products

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FOOD & BEVERAGES

Growth Drivers Company Product

1. Packaging Innovation Hector Beverages Paper Boat


2. Rural India
3. Premium-isation ITC B-Natural

PepsiCo 7UP-Nimbooz
Masala Soda

Dabur Hajmola Yoodley

Britvic Rosbinsons Fruit


Shoot

Amway Nutrilite Kids Drink


Pineapple flavor

Digital Marketing- A new frontier


Digital Marketing is something that is making bigger and bigger strides by the second and is the road ahead when
it comes to firm marketing their product. Be it local branch openings or global promotions, digital marketing can
do anything and everything.

• Nando’s Peri-Peri Discount Offer

• 7 UP Lemon Pattalum Challenge

Company Analysis: Coca - Cola


Segmentation
For a company like Coke,
Geographic Segmentation: Coca-Cola has segmented the world according to geography.
Demographics Segmentation: Age can still be a segmentation parameter for Coke. As much as it says that
it targets everyone in the market, the truth is that the 10-25 age group forms the biggest consumer for
Coke.
Targeting
It can target different age groups with different ads. The younger generation has the standard Coke
targeted towards them since they like the sweet taste and aren’t concerned about the calorie intake.
Positioning
The biggest positioning strategy adopted by Coke is the reason to drink Coke. Coke, earlier in its time,
had tried to market itself as a thirst quencher. Thus, during the Christmas of 1995, Coca-Cola came out
with the campaign of Christmas trucks that changed the complete ball game for them. No longer was
Coke seen as a thirst quencher; it became a hot selling commodity during winters as well-so much so that
Coke started selling more in winters than in summers.

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Food Industry India GROWTH DRIVERS

Economic liberalization
• Improved retail format
• Multi-cuisine
• Emergence of contract farming
• Infrastructure development
• Favorable demographic trends; emergence of urban middle class
• Rising disposable incomes

Category Major Players

Snacks Briannia, Parle, FritoLay, ITC, Haldiram’s

Ready To Eat Nestle, MTR, Haldiram’s

Frozen Food McCain, Venky’s, Mother Dairy

Fruits and Vegetables Sobaro, Al Noorani, Godrej

Meat and Poultry Hind Group, Suguna, Al Kabeer,

QSR Haldiram’s, McDonald’s, Dominos, KFC

Casual Dining Moti Mahal, Sarvana Bhavan, Rajdhani

Fine Dining Taj Hotels, Leela Hotels, Oberoi

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Marketing Strategies of Global Brands in India

KELLOGG’S: FROM TASTELESS TO TASTEFUL


Kellogg’s completely revamped its marketing initiatives as well as brand building programs and made it India-
specific. First of all, to overcome the price sensitivity of Indian consumers, it launched small sized pack at Rs. 10
only for Indian market. Then, they decided to tap the Indian public’s love for Hollywood superstars by launching a
limited edition Kellogg’s Chocos Spider Man 2 “web-designed cereal”.

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PAINTS & CHEMICALS

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.

Major Segments: Chemical Markets

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:

Active Pharmaceutical Ingredients (APIs) and formulations

Agrochemicals:

Insecticides, herbicides, fungicides and other crop protection chemicals

Biotechnology:

Bio-pharma, bio-agri, and bio-industrial products

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Growth and Trends


Domestic and external demand driving growth in the sector:
• Total production in the Indian chemical industry was 8,839 MT in FY14, clocking a CAGR of 1.97 per cent
from FY0714
• Favorable demographics and strong economic growth are driving demand for chemicals
• External demand and specialty chemicals have also contributed strongly to the growth of the industry
• India’s growing per capita consumption and demand for agriculture-related chemicals offers huge
scope of growth for the sector in the future
• With 71 per cent of the total production share, alkali chemicals form the largest segment in the Indian
chemical industry
• During FY15 (April to September 2014), alkali chemicals’ production stood at 3,279 MT
• Total exports of chemicals grew from USD3.5 billion in FY03 to USD29.62 billion in FY14, a CAGR of 9 per
cent
• Exports of the Indian chemical industry stood at USD14.94 billion for FY15* Export of major
chemicals stood at USD3.5 billion in FY03
• The size of India’s construction chemical market stood at USD663.57 million in 2014
• As the construction sector is expected to grow due to strong economic growth, the
fundamentals for construction chemicals are sound
• By 2018, the construction chemicals sector is set to touch USD1,227.54 million, up from
USD495.68 million in 2012
• India’s construction chemical sector consists of a variety of products ranging from admixtures to sealants.
Admixtures form the largest segment with a 42 per cent share, followed by adhesives & sealants (18 per
cent)

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 )

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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

Indian Telecommunication services market value and subscribers


45 949.5 896.3 935.1 1000
38.6
40 42.4
34.7 843.4 41.3 40 800
35
30
618.6 600
25
20
400
15
10 200
5
0 0
2010 2011 2012 2013 2014

Revenue ($ Billion) Subscribers (Mn)

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E-Commerce
Definition: Use of internet to buy and sell products, idea, technology and services.

BUSINESS MODELS FOR E-COMMERCE

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.

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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

Key Digital Marketing Trends


• SEO and Content • Mobile marketing • Location marketing
Importance • Remarketing Ads • Emotional and
• Diversifying Social • Mobile coupons Intellectual Connect
media marketing • Mobile wallet • Smart Email marketing

Key Challenges to Digital Marketing


• Understanding your audience • Use of Influencer Marketing
• Smooth ‘multi-channel’ operation • How to Increase Conversions and
• Promote a Small Business on a Limited Decrease Expenses
Budget • How to Measure Online Success
• How to Increase Social Engagement

Recent News from Tech Companies


• Facebook M • FB Moments App • Flipkart Ping

Marketing in Technology Firm


Challenges to deal with:
• Attracting and Developing New Business competitive marketplace
• Finding and Keeping Good Talent • Dealing with rising client demands and
• Innovation and new ideas expectations
• Dealing with difficult economy and

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INDIAN PHARMA INDUSTRY

Key characteristics of India’s pharmaceutical industry


Low cost of production
Low Research and Development Costs
Self-reliance by the production of 70% of bulk drugs and the entire requirement of formulations
Innovative scientific manpower
Increasing balance of trade in pharma sector

Challenges facing India’s pharmaceutical industry


1. Drug Quality
2. Clinical trial quality
3. Patent issues
4. Public and government pressure to make drug prices more affordable
5. Pricing of Patented Drugs

Typical Supply Chain Structure

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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

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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.

Growth Drivers Key Concerns


• Underdeveloped public transport system • Increasing input cost
• Rising population and growing income • NGT ban
• Demand in export market • BS IV to BS VI planned upgrade
• Decrease in excise duty • Labour unrests
• Lowering fuel prices • Delhi’s Odd Even Experiment
• Regulations on overloading

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.

Compact SUVs: Ease of a hatchback & comfort


of an SUV.

Online reviews: gaadi.com, cartrade.com, zigwheels.com, team bhp, auto.ndtv.com etc

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.

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27 | P a g e

Innovations at entry level: The Kwid

App based Cab Service

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

Ad wars between Audi


and BMW

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28 | P a g e

May The 5 Forces Be With You

Best of Luck For GD PI Processes!

We hope to see you at MDI soon !!

For More on Marketing:


Visit our FB page at: www.facebook.com/MarquityMDI

For Marketing Freaks:


mdispeaks.wordpress.com/students/clubs/marquity

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