Consumer

is the king Products made on consumer preference Consumer demand varies Tastes, preferences and habits change from person to person.

PRICE CHANGING NEEDS INCOME TASTE RURAL MARKET HABIT CONSUMERS EXPECTATIONS TARGET AUDIENCE ADVERTISING

An important determinant. Individuals demand for a commodity depends upon its price. Higher the price, lower the demand and vice versa.

Needs of consumer changes from time to time. For e.g. We buy medicines only when we are sick. We buy raincoats and gum boots only in rainy season or we buy sweaters and shawls only during winters. Nowadays people shop in malls rather than regular shops.

The disposable income of an individual also determines demand. The higher the income, more is the quantity of goods demanded and (vice versa)

The demand for a commodity would also depend upon the consumers taste. Changes in taste influence the demand for perfumes, shampoo, cold drinks, snacks etc.

Around 60% of population in India live in villages. Their needs and demands differ from that of the people in town or cities.

The demand for a commodity would also depend upon the consumers habit. When there are changes in habits, the demand for a commodity would increase or decrease even if the price does not change.

Consumers expectation of future rise or fall in price of a commodity. Due to this demand in current period increases or decreases.

Some consumers are loyal towards purchase of goods of certain brands only. The targeted consumers usually belong to a certain group or certain age.

Modern day advertisements have tremendous influence on the consumers choice in case of shampoos, perfumes, soaps, toothpastes, biscuits etc. Advertising plays an important role in influencing the demand pattern of childrens population.

 Meaning

Sold in large quantity Relatively small Products Cumulative profit is large

 Meaning

Sold in small quantity Small and large Products Profit fluctuates during the onseason and offseason.

 Cola

war Pepsi.Cos Diet Pepsi Coca colas Diet Coke New Coke Classic coke after new coke

 Taste:

Flavor Preference: Health and sweetness Habit: Cultural institution in south

Dairy milk (Flagship brand) Brands Consumer convenience Innovations Backlash

 Taste:

Pure taste, smooth and delicious Preference: Safety, appealing advertisement by Ogilvy and Mather Habits: Convenience and readily accessible

Disposable Shaving Systems 97% of lower end market uses DESB. (Double- Edged Safety Blades) 7 Oclock, SuperMax, Wilkinson are popular and convincing in lower-end market. 50% barbers and 50% self-shavers.

Barbers do not cater for long lasting blades. They constitute 50 % of lower end market. Indians pay premium price only for premium product. Indians are used to using DESB than shaving system.

Baby-on-Board

Accessories
Adults Only

 Taste:

Mother-and-child products Preference: Convenience Habits: Buy clothes from local shops or other shops.

 Off-

season strategy The horror film story for promotion Successful in selling 50% more in offseason of its target market

 Purchase

of Air Conditioners during September, October and Summers. Indian habit of Cost Cutting More purchase during off-season due to discount. Increase in sales volume.

CEAT entering two-wheeler tyres. Strategically formed supply alliances with - Hero Honda, TVS Motors and Kinetic Motors. Sold off its stake in the joint venture with South Asia Tyres to Goodyear. Focus on the OEMs as half of the 20 lakh units of the two-wheeler tyres

 Large

market for Two-wheeler tyres. Used to concentrate on radial tyres. Tough competition for CEAT