Download - New Breed - Simplifiers
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Summary
The mass consumption culture of the
90s is fading.
People prefer to lead clutter free
lifestyle.
As the world economy slumps the
segment which leads this lifestyle will
grow faster than ever: The Simplifiers.
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Summary
Post recession economy has made iteasier for consumers to get rid of
unwanted stuff.
This growing segment of Simplifier
presents a challenge to us, marketers.
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How?
Marketers now have to deal with a
segment which does not increase their
consumption in face of increase in
income, but value ephemeral
experiences than tangible possessions.
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Who are Simplifiers?
Affluent but subtle.
Consume fewer material goods but
focus on satisfying experience.
Knows what he wants, dislikes goods
being shoved down.
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How to Target the
Simplifiers
They do NOT place great value on theact of shopping. Addition of visual
clutter or anything that complicates the
message will drive them away.
Products & service must emphasize
convenience and ease of use.
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How to Target the
Simplifiers
Quality is of utmost importance.Ecologically sound offering and
sustainable is important.
Differentiate your offering using
experientialmarketing, techniques that
will create an emotional connect.
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Segment the e-Market
Surfer - wants whats new
Connector - beginner, motive to stay
connected with F&F.
Bargainer - constant quest for deals.
Routiner & Sportster - go online
primarily for content, typically news:
financial, sports & entertainment.
Simplifier - seeks end-to-end
convenience.
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What should marketers
do?
Embrace, not love, todays new buyer
Manage the short term, with an eye
firmly fixed on the future.
http://www.fastcompany.com/1807078/4-ways-marketers-can-drive-revenue-and-prove-it?partner=rss
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Problems with Quelchs
prediction
These predictions are not scenario
specific.
The business world could move in a
number of directions and nobody
knows where it will actually go.
Customer needs can vary significantly
in these different future worlds as
illustrated:
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Scenario: World as one
Customer confidence rebounds leading
the worlds economy into a new period
of growth.
The world feels safer also, people
travel more and materialism spirals.
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Scenario: World is a
Jigsaw
The world is less stable place, economic
recovery is slow.
Personal experiences and protection of
family & home rise to key positions.
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Indian Market scenario
High levels of disposable income,opening up of the economies and a
heightened state of awareness.
There is a general positive sentiment
towards global brands - Patrick
Normand, Cartier (MD)
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Indian Market scenario
The three tiered market segment
The HNIs
The middle class
Bottom of the pyramid
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HNIs
India now has 153,000 millionaires,
ranking 12 worldwide
Indian millionaires have showngrowing interest in luxury collectibles.
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The overall luxury market growthdominated by the big three - BMW,
Mercedes Benz and Audi - should be in
the region of around 50% this year,
says Vidur Talwar MD, T&T Motors
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The Middle Class
On the basis of life stage spending: Young singles
Couples without kids
Youngish parents
High commitment families
Empty nesters and secure senior
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Designer Gabrielle Coco Chanel (1883 -
1971) stated that luxury is a necessity
that begins when necessity ends.
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young singles & couples
without kids
Customers are younger (for luxury
goods) Far more numerous.
Make their money sooner.
Far more flexible and fickle in choosing.
Do not stay put and have money to
burn.
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Youngish parents, high commitment
families, empty nesters & secure
seniors
The middle class can be categorized as householdsearning Rs 3 - 5 lakh per annum. Comprises more
than 10% of urban Indian households andcontribute around 13% of total urban expenditureand savings.
Top components of household consumption:
Travel and conveyance.
Consumer service.
Rent.
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The share of miscellaneous services
come down as other more basic needs
have to be fulfilled.
With food starting to dominate budgets.
Interestingly, the share of paan, tobacco
and intoxicants begins to inch up.
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What factors are bound to
affect the Indian consumer
Informedness
Inexorable increase in information
available to the consumer.
Information immersion.
The intensity or the intimacy.
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How does that affect
business in India?
Hyper differentiation
The ability of firms to produce almostanything that any potential customer might
want is called hyper-differentiation. Leads tolong tail of distribution.
Resonance Marketing
It is about achieving a precise fit not only
with consumers wants but also with their
previously unsatisfied wants and needs,cravings and longings.
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Questions..