Download - 13146007 Contemporary Trends In Marketing

Contemporary Trends in Marketing : The Road Ahead

By: Dr. Subhojit BanerjeeInstitute of Business Management

VBS Purvanchal University, Jaunpur (UP)India-222010

Dr. S.Banerjee, VBSPU.... created March 10,2009

India : An Ocean of Opportunities and Challenges• The Indian economy is the fourth largest

economy of the world on the basis of Purchasing Power Parity (PPP).

• From low growth rate of 2.7 per cent in 2001-02, the industry sector grew at a rate of 7.1 per cent in 2002-03 and further to 9.8 per cent in 2004-05.

• Projected to grow at 8% in 2007-08• Despite the world wide recession, Karnatakas

IT export plan size grew from Rs 12000 crore to Rs 29,000 crore, showing the robustness of the country's economy.


Global Competence• Most oil-exporting

economies have seen rising terms of trade in recent years. But some oil-importing economies have weathered the worsening terms of trade by rapidly expanding manufactured goods exports (China) or services (India).


India’s Foreign Trade

• India's total external trade (exports plus imports including re-exports) in the year 1950-51 stood at Rs. 1214 crores.

• Exponentially growing reached reached Rs. 1384368 crore in 2006-07

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India’s FDI’s

• In 2006-07, the proportion stood at 33.5 per cent of the total Capital invested, while it rose to 43.4 per cent in the first half of 2007-08.

• FDI inflows were broad-based and spread across a range of economic activities like financial services, manufacturing, banking services, information technology services and construction.


India’s Industrial Sector

• The growth achieved, during April-November 2007, by the industrial sectors has been 9.2 per cent.

• With more than 270 million connections, India's telecommunication network is the third largest in the world and the second largest among the emerging economies of Asia.


India’s Infrastructure

• During April-December 2007-08, six core-infrastructure industries registered a growth of 5.7 per cent

• Coal production grew by 4.9 per cent and electricity generation grew by 6.6 per cent during the same period.


India feeds 1/6 of the world• From negative

growth rate of -7.2 percent in 2002-03, the agriculture sector grew at a rate of 10.0 per cent in 2003-04 and at a rate of 6.0 per cent in 2005-06.


Agricultural Sector

• Agricultural production in the country end-March 2006 was serviced through 7,566 regulated agricultural markets.

• There were 21,780 rural primary/periodic agricultural markets, out of which about 15 per cent functioned under the ambit of regulation.


CPI- All India trends

• The index measures the overall changes in the level of average retail prices of fixed goods and services consumed by the target population.


The Great ‘ human resource-Pool’• The well-known ‘demographic

dividend’ will manifest in the proportion of population in the working age group of 15-64years increasing steadily from 62.9 per cent in 2006 to 68.4 per cent in 2026.


India- the Knowledge based Economy• We are the worlds second largest

education network.• India accounts for 54% of IT services

and 37% of IT enabled services globally. • In 2007-08, India’s total export of IT

services and IT enabled services was $40.4 billion, about 5.5% of its GDP.

• The IT directly employs about 2 million people and about 6-8 million people are employed with supporting industry.


Marketing Strategies for

• Rural Sector

• Services Sector

• Retail Sector

• Export Sector


Rural Marketing: Gold at the bottom of the Pyramid• Untapped rural

potential

- 6,27,000 villages across the country

- account for 70% of population

- 60% of National demand for various product categories


Growing Demand

• -According to NCAER study, there are as many 'middle’ income and above' households in the rural areas as there are in the urban areas.

• -There are almost twice as many 'lower middle income' households in rural areas as in the urban areas.


Strategies

• Strive to reach at least 13,113 villages with a population of more than 5,000

• Trade off the distribution cost with incremental market penetration.

• Affordable products

• Use information Technology to increase the ‘reach-factor’.


Case-Studies

• Hindustan Lever, to serve remote village,use autorickshaws, bullock-carts and even boats in the backwaters of Kerala.

• Coca-Cola, has evolved a hub and spoke distribution model to reach the villages. To ensure full loads, the company depot supplies, twice a week, large distributors which who act as hubs. These distributors appoint and supply, once a week, smaller distributors in adjoining areas.


Case-Studies.. (Contd)

Godrej introduced three brands of Cinthol, Fair Glow and Godrej in 50-gm packs, priced at Rs 4-5 meant specifically for Madhya Pradesh, Bihar and Uttar Pradesh — the so-called `Bimaru' States.

HDFC tied up with non-governmental organisations and offered reasonably-priced policies in the nature of group insurance covers


Case-Studies.. (Contd)

• Use the e-Choupal to order seed, fertilizer, and other productsAt harvest time,

• ITC offers to buy the crop directly from any farmer at the previous days closing price


Services Marketing: India's ‘Star’

• The services sector has been growing at an annual growth rate of about 28% during the last 5 years.

• The exports of services have grown up from US $ 19.1 billion to US $ 73 billion in 2006.


Services Marketing.. (Contd)

Export of Services shows a quadratic growth exhibiting immense potential in the years to come.


Retailing: Going Global

• India shows US$330 billion retail market that is expected to grow 10% a year, with modern retailing just beginning.

• Strategy suggested: Identifying weak segments, maintaining investment level selectively


PRESENT INDIAN SCENARIO* Unorganized market: Rs. 583,000 crores

* Organized market: Rs.5, 000 crores* 5X growth in organized retailing between 2000-2005 * Over 4,000 new modern Outlets in the last 3 years* Over 5,000,000 sq. ft. of mall space under development* The top 3 modern retailers control over 750,000 sq. ft. of retail space * Over 400,000 shoppers walk through their doors every week


Growth drivers in India for retail sector • Increase in spending Percapita Income. • Advent of dual income families also helps in the growth of retail sector. • Shift in consumer demand to foreign brands like McDonalds, Sony,

Panasonic, etc• Consumer preference for shopping in new environs • The Internet revolution is making the Indian consumer more accessible

to the growing influences of domestic and foreign retail chains. Reach of satellite T.V. channels is helping in creating awareness about global products for local markets.

• About 47% of India's population is under the age of 20; and this will increase to 55% by 2015. This young population, which is technology-savvy, watch more than 50 TV satellite channels, and display the highest propensity to spend, will immensely contribute to the growth of the retail sector in the country.

• Availability of quality real estate and mall management practices• Foreign companies' attraction to India is the billion-plus population.


International Marketing: Reaching Out• Shri Murasoli Maran, Union Minister of

Commerce and Industry, has announced the Medium Term Export Strategy for a 5-year period from 2002-2007.

• The strategy makes an opportunity assessment after examining the import basket of major importing economies of the world and identifying potential items of exports in which India is competitive vis-à-vis some of the major exporting countries of these products at present.


Strategies for export

• Engineering and Manufacturing Sector strategy includes support for SMEs to modernise, accreditation of testing laboratories in India by overseas agencies, R&D, other measures to effectively counter NTBs in the form of TBT conditions, brand promotion, providing warehousing facilities in overseas markets, etc.

• Textile sector strategy includes investment in key areas, infrastructure development, by setting up 'Apparel Parks' and Textiles Centres Infrastructure Development Schemes, Brand Promotion and market assistance schemes, etc


Strategies for export.. (contd)

• Expansion of Market Assistance Programmes

• Developing SSI export industry

• Export credit strategy

• Capitalize the opportunities in the services sector

• Significant expansion of Market Assistance Programmes


Summing Up

• The one thing that is common amongst these estimates is that Indian organized retail market will be very big in 2010.

• IT sector to grow and will be the main source of Forex

• Agriculture sector will remain the biggest sector with percapita incomes increasing significantly.


Summing Up

• Services are the chief source of economic growth, accounting for more than half of India's output with less than one third of its labour force.

• India's chief strength comes from its large numbers of well-educated, skilled people, adept in the English language, helping India to become a major exporter of software services and software workers.


• A Prosperous Dawn awaits us all…….

….THANK YOU

Download - 13146007 Contemporary Trends In Marketing

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