The Changing Face

of Youth in India
Presented byGROUP ONE
Bishaka Gurung
Divij Anand
Shivani Jaiswal
Sumati Mehrotra

Case Brief
The case explores consumption pattern of
contemporary Indian youth. How the nayee
peedhi has become the decision makers. How
new and uncustomary trends are being
embraced, causing change in the spending
pattern of Indian Gen Y and also the
development of the new middle class.

Define Youth?
Youth is the vigorous, vocal, contagious energy of
the population
Youth are innovators, experimenters. Their
choices reflect their personality. They are wellversed with the society. They are exposed to
information overload, leaving them with ample
amount of choices
Youth today are aware, inquisitive and early
adaptors. Our generation is experiencing the rise
of global consciousness and we are ready to
change for the good

The Contemporary Indian

Youth
Bold, brash and demanding all the more
Decision makers
Smart work is the key, hard work is the passe`
Individualism and selfishness are natural for
healthy survival

Three Stages of Youth

Early Youth (Age: 13-21)

Middle Youth (Age: 22-28)

Key Decisions: Education & Career

Influencers: Parents & Peer Groups
Spending Power: Rs. 1000-5000
Consumption: Clothing, Food &
Entertainment
Brands: Occasional and aspirational
Opportunity: Develop products at
affordable prices

Key Decisions: Career & Relationship

Influencers: Peer groups & Workmates
Spending Power: Rs. 10,000-20,000
Consumption: Clothing, food,
entertainment & consumer durables
Brands: Seeks quality but is also value
conscious
Opportunity: Keep innovating to keep
the brand relevant & trendy

Late Youth (Age: 29- )

Key Decisions: Career advancement & family
development
Spending Power:
Consumption: Personal clothing & Household
Brands: Mix of status & fun brands depending
on personal beliefs.
Opportunity: Fun, spirited and nonconventional

Changes in the spending

of Middle class in India

Since India liberalized 25 years ago, millions

of people have successfully moved from
lower than $5,000 annual income to higher
levels, with the greatest increase coming in
the past 12 years

 Indias population has primarily shifted to the

$5,000-10,000 income level (see chart 2), which
is considered vulnerable.

 Indias middle class possesses less than a quarter

of the countrys wealth; in China and Brazil, the
middle class holds almost one-third of the wealth.
Consumption patterns of Indias middle class
reflect aspirations well beyond income levels.
After liberalization, consumption growth has more
than doubled from 4% (1990-2002) to 11% (200314).
Non-food consumption in India has increased from
53% in 1990 to 69% in 2014, narrowing the gap
with China (74% in 2014)

This indicates increased availability of income

for more discretionary spending in education,
healthcare, recreation, communication and
personal products (see chart 3).

The Changing Trends of

Youth in India

 Whos the constant best friend? Smart Phone

Mind set to make a statement; look better and
stand higher
How do they bring some much-needed in their
daily life?
- Surprise. Entertainment. Amusement
The eternal desire for connection, and the many
(new) ways it can be satisfied

 Increasing knowledge and use of technology

Age of digital shoppers
Spoilt for choices
Reality is prized over an 'ideal
Increase in use of Credit Card
Everything comes with an expiry date
Rigidity is coming under scrutiny

CATAGORIES UNDER WHICH A

CONSUMER SPENDS THROUGH ITS
CREDIT/DEBIT CARD

CREDIT AND DEBIT CARD SALES

INDIAS UNEMPLOYMENT RATE

Brief
Design appropriate market-mix strategies for the
following products Lingerie
Western Movies
Fitness and health equipment

Group One

Group Two

Abhijeet
Devanshu
Aanchal
Subodh
Preeti

Adwitiya
Aakarsh
Tushar
Sana
Aditya

SEGMENTATION Group 1
DEMOGRAP
HIC

SEC- A, B
21-27years
Young adults, graduates
Spending Power 10,000-20,000 INR

GEOGRAPHIC

Delhi- NCR

PSYCHOGRAP
HIC

Experiencers-People who seek variety and excitement in

the products they consume
Innovators- People who have the money and try new
ideas and products
Achievers- High resource consumers, more likely to
purchase a brand
Trend setters

BEHAVIOURA
L

Media consumption is primarily through digital, and

print( Magazine); independent consumption; highly aware;
exposed to international brands and multiplexes

Group One
Product - Lingerie
Place Single brand showrooms, Malls
Price 700 1500 INR
Promotion YouTube promotion, sponsored
Instagram ads, banner ads, TV, bloggers,
merchandising

 Product- Western Movies

Place- Online, multiplex, TV, mobile
Price- 250-400 INR
Promotion- Trailers, on ground, digital, bloggers,
film critics, reviews

 Product- Gym
Place- Residential and commercial areas
Price- 1500-2500 INR
Promotion- OOH, YouTube videos,
Pamphlets, celebrity endorsements

SEGMENTATION Group 2
DEMOGRAPH SEC- A, B
IC
21-27 years
Young adults, graduates
Spending Power 5,000-15,000 INR
GEOGRAPHIC

North, Central and East India

PSYCHOGRAP
HIC

Strivers- People who favour stylish products but are

resource constrained
Believers- People who have low resources and go for
word of mouth

BEHAVIOURAL

Media consumption is primarily through digital, broadcast

and print; restricted buying power; conspicuous
consumption; value for money; thought out buying process

Group Two
Product - Lingerie
Place Local shops
Price 300- 500 INR
Promotion Danglers, Standees,

 Product- Western Movies

Price- 100-200 INR
Place- Cinema Halls, Online, Pirated, DVD
Promotion- Banners, online trailers, word of
mouth

 Product- Gym
Price- 600-1500 INR
Place- Residential areas
Promotion- Word of mouth, pamphlets,
newspaper

Business model of
The T-Factory

Target Group
Age- 15 to 28 years
SEC- A, B
Gender- Male and Female
Spending Power- Above 5,000

 Market Size- North India

Channel of Distribution- One level channel of
distribution
Location- New Delhi
Market- Satya Niketan

Fixed Cost (FC)= 5,00,000 INR

Variable Cost per unit (VC)= 100 INR
Revenue per unit (R)= 399 INR
Contribution Margin (CM) = R-VC per unit
Break Even Quantity (Q)=
Fixed Cost/(Revenue-Variable Cost)
= 5,00,000/(399-100)
= 1673 units

Units sold

Fixed Cost

Rs. 5,00,000

2000

Rs. 5,00,000

Variable
Cost
Rs. 0
Rs. 2,00,000

Total Cost
Rs. 5,00,000
Rs. 7,00,000

Revenue
Rs. 0
Rs. 7,98,000

900000
800000
700000
600000
500000

Variable Cost
Linear (Variable Cost)

400000

Fixed Cost

300000
200000
100000
0
0

1000

2000

3000

4000

5000

6000

7000

8000

9000

800000
700000
600000
500000

No. of units sold

Variable Cost

400000

Fixed Cost
Total cost

300000

Revenue

200000
100000
0
0

200

400

600

800

1000

1200

1400

1600

1800