new breed - simplifiers

8/3/2019 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..

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