contemporary trends in marketing

8/14/2019 Contemporary Trends in Marketing

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Contemporary Trends inMarketing : The Road Ahead

By: Dr. Subhojit BanerjeeInstitute of Business ManagementVBS Purvanchal University, Jaunpur (UP)

India-222010


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Dr. S.Banerjee, VBSPU.... created

India : An Ocean ofOpportunities and Challenges The Indian economy is the fourth largest

economy of the world on the basis ofPurchasing 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 percent in 2002-03 and further to 9.8 per cent in2004-05.

Projected to grow at 8% in 2007-08

Despite the world wide recession, KarnatakasIT export plan size grew from Rs 12000 crore toRs 29,000 crore, showing the robustness of thecountry's economy.


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Global Competence

Most oil-exportingeconomies haveseen rising terms oftrade in recent years.But some oil-

importing economieshave weathered theworsening terms oftrade by rapidlyexpanding

manufactured goodsexports (China) orservices (India).


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Indias Foreign Trade

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

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

{Ytot-trd = 55993.375e.2403x (MulR=.98964, adj R2

= .97251, F value is 142.50 with P=.013)}


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Indias FDIs

In 2006-07, the proportion stood at 33.5per 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 economicactivities like financial services,

manufacturing, banking services,information technology services andconstruction.


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Indias Industrial Sector

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

With more than 270 millionconnections, India'stelecommunication network is thethird largest in the world and thesecond largest among theemerging economies of Asia.


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Indias Infrastructure

During April-December 2007-08, sixcore-infrastructure industriesregistered a growth of 5.7 per cent

Coal production grew by 4.9 percent and electricity generation grewby 6.6 per cent during the same

period.


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Agricultural Sector

Agricultural production in thecountry end-March 2006 wasserviced through 7,566 regulated

agricultural markets. There were 21,780 rural

primary/periodic agriculturalmarkets, out of which about 15 percent functioned under the ambit ofregulation.


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CPI- All India trends

The indexmeasures theoverall changes in

the level ofaverage retailprices of fixedgoods and

servicesconsumed by thetarget population.


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The Great human resource-Pool

The well-known demographicdividend will manifest in theproportion of population in the

working age group of 15-64yearsincreasing steadily from 62.9 percent in 2006 to 68.4 per cent in

2026.


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India- the Knowledge basedEconomy 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, Indias total export of ITservices 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 areemployed with supporting industry.


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Marketing Strategies for

Rural Sector

Services Sector

Retail Sector Export Sector


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Rural Marketing: Gold atthe bottom of the Pyramid Untapped rural

potential

- 6,27,000 villages

across the country- account for70% of

population

- 60% of National

demand for variousproduct categories


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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.


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Case-Studies

Hindustan Lever, to serve remote village,useautorickshaws, bullock-carts and even boats inthe backwaters of Kerala.

Coca-Cola, has evolved a hub and spokedistribution model to reach the villages. Toensure 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 adjoiningareas.


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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 insurancecovers


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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


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Services Marketing: India's Star

The services sector has beengrowing at an annual growth rate ofabout 28% during the last 5 years.

The exports of services have grownup from US $ 19.1 billion to US $73 billion in 2006.


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Services Marketing.. (Contd)

Export of Services shows a

quadratic growth exhibiting immensepotential in the years to come.


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Retailing: Going Global

India shows US$330 billion retailmarket that is expected to grow10% a year, with modern retailing

just beginning.

Strategy suggested: Identifyingweak segments, maintaining

investment level selectively


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PRESENT INDIANSCENARIO* Unorganized market: Rs. 583,000 crores

* Organized market: Rs.5, 000 crores* 5X growth in organized retailing between2000-2005

* Over 4,000 new modern Outlets in the last 3years* Over 5,000,000 sq. ft. of mall space underdevelopment* The top 3 modern retailers control over

750,000 sq. ft. of retail space* Over 400,000 shoppers walk through theirdoors every week


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Growth drivers in India forretail 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 ofsatellite T.V. channels is helping in creating awareness about globalproducts for local markets.

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

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


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

Commerce and Industry, has announcedthe Medium Term Export Strategy for a5-year period from 2002-2007.

The strategy makes an opportunityassessment after examining the importbasket of major importing economies ofthe world and identifying potential itemsof exports in which India is competitivevis--vis some of the major exportingcountries of these products at present.


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Strategies for export

Engineering and Manufacturing Sector strategyincludes support for SMEs to modernise,accreditation of testing laboratories in India byoverseas agencies, R&D, other measures to

effectively counter NTBs in the form of TBTconditions, brand promotion, providingwarehousing facilities in overseas markets, etc.

Textile sector strategy includes investment inkey areas, infrastructure development, by

setting up 'Apparel Parks' and Textiles CentresInfrastructure Development Schemes, BrandPromotion and market assistance schemes, etc


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Strategies for export.. (contd)

Expansion of Market AssistanceProgrammes

Developing SSI export industry

Export credit strategy

Capitalize the opportunities in the

services sector Significant expansion of MarketAssistance Programmes


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Summing Up

The one thing that is commonamongst these estimates is thatIndian 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 thebiggest sector with percapitaincomes increasing significantly.


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Summing Up

Services are the chief source ofeconomic growth, accounting for morethan 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, skilledpeople, adept in the English language,

helping India to become a major exporterof software services and softwareworkers.


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A Prosperous Dawnawaits us all.

.THANK YOU

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