Indian Marketing Environment

Indian Marketing Environwork forcet Indian Marketing Environment For Global marketers India is not just a one country, it is further divided into tow different countries. India and Bharat. India is looked and appreciated by the hale world. It is development at the second fastest rate, Its a outsourcing hub, skilled workforce, nuclear and space power and e actu in ally involvement to become a world power. On the former(a) hand, Bharat invovles p everyplacety, Illetracy at high levels, Corruption, Misman periodment, Violnce between releigions and equal that. So in this charge whosoever desires to enter in the indian market must realize twain the faces of this country.They should realize the serious challenges of doing business here like segmenting the market properly, cause countrys social and cultural issues, enamorting through government beaurocracy and understading economic and semi semipolitical situation. There stick out been bunch of examples of companies who abide t ried to enter in Indian markets without taking automobilee of these issues and gestate failed badly. Now before mind Indian Marketing Environment, it is important to understand what is Marketing Environment. Margonkting Environment lie of factors and forces outside or inside the organzation that affect its business in the market.The selling surroundings is divided into tow different environments. 1) Micro Environment It incorporate of factors lose to the comp either that have a take aim impact on the organization strategy. This includes companys suppliers, distri onlyors, customers and competitors. 2) Macro Environment It consists of larger societal forces. And these atomic number 18 beyond the control of the organization. These shape the characteristics of the opportunities and threats facing a company. For example, Economic, Cultural, Political, Demographic and Technological. Demographics EnvironmentIt is the study of the mucklein scathe of their age, gender, race, ethn icity, and location. Demographic characteristics strongly affect buying behaviour. The current population of India is 1. 18 billion and it is the seond intimately populous country in the world abutting to China. And it is cosmos projected that by 2010, it result overtake china with 1. 53 billion. Obviously thats not a trusty risings but for marketers thither lies lots of opportunities. Fast growth of population accompanied with rising income federal agency expanidng markets. And among this 1. 18 billion population, much than 50% are below 25 years of age. and hat is the reason why why tere is tough ompetition in the area of soft drinks, networking sites, stylish mobile handsets, job portals and all. Estimated in 2008, to a greater extent or less 71% population have it offs in rural areas notwithstanding after(prenominal) so much migration to urban cities and that is the reason why low approach brands have started targeting rural cummunityites. They put Camps, Haat in m elas to promote their products. Literacy rate, as estimated in 2009, for men it was 76. 9% and for women it was 54. 5%, thoug there is still wide gender disparity, but it has been discover that growth in women literacy rate is more than mens.So women is another self-ag augustising target for marketers. Specially for home based products, as we cope women is the foreman person to select them for her home. Now, In India diffrent behaviour of diffrent age group has been observed which is describeed below. Adolescents The new-age teens are marketers delight. They do no earn but they are crank of spending. They spend lavishly on clothes, eating out, latest gadgets and are very(prenominal) keen t hang on up with their friends in terms of possessions and feelingstyles. They do not feel guilty of spending their parents money and put cart on their parents to shell out money for them.They feel they take to have a manners of their own, and it should not be denied to them just because they are not earning. Youth The current youngsters are growing in a more media-influenced, brand conscious world thn their parents. Companies have to take their messages to the spaces where these youngsters frequent, whether on the internet, in a cricket stadium, or television. They do not mind discipline r each(prenominal)ing them but they will reserve their right to set out their choices. They know what they want from their lives and the product or servies they buy.They hate to be persuaded and influenced. therefore companies would do nearly to leave them alone to make thier choices. They create their own website, make movie with their own webcam, post their thoughts, pictures and writing online. Since they are sure or so what they want, they prefer customized products and go. Companies are realizing that they have to provide just aboutthing unique and deeply ain to in thier loyalty. populate between 35 to 45 People in this age group are settled in their professions and have toddlers and growing children in thier home.The exert themselves in their profession because they realize that their career is probably to take off at this stage. They put in long hours at office and they have to juggle endlessly between their responsibilities as spouses and parents and growing responsibilities at work. Parents whitethorn be staying with them or they may be nourishment in different city. Income of the people rises at a good rate and they are good spenders. Some of them may be buying their nfirst car while most(prenominal) of them thinking of upgrading their cars. They are also open to new gadgets for themselves and for households.People in this age group want to live a good life and are constantly on a buying go to improve their lifestyles. They dress well, dine out frequently, and look for opportunities to go on holidays. These days they are also keen to buy new houses very early in thier lives. They also programme to retire early, and they plan thier f inances accrodingly. People Between 45 to 60 Some people in this age group are at the peak of their careers while nearly others are struggling to keep thier jobs. Children beome major priority for people in this age group.They spend less as they save resources to fund the high education of their children. They are also worried about their own in store(predicate) and make a last-ditch efforts to put a retirement plan in place. People above 60 People in this age group live on a steady income. Some of them live with thier grown-up children and are part of their household. They do not spend much on themselves. Their family looks after their requirements. Most of their money spent on buying gifts for their children and grand children. They have to spend a substantial part of their earnings on health-related issues and domestic help.Political Environment The political-Legal environment of a country is influenced by political structures and organizations, political stability, government s interventions, constitutional provisions, governments attitude, foreign policy. Businesses feel helpless in countries where contracts rear endnot be enforced by the judiciary of the land or it takes excessive timein the discriminatory proceedings. Governments will need to provide an environment in which businesses loafer flourish. In turn, government needs businesses because the marketplace generates taxes. In this itinerary government and businesses need each other. too every aspect of marketing mix is subject to laws and restrictions. As in any part of the world, political influence is highly demand to start a business in India. Especially if you are cooking to start a multi billion business, some riddle of political funding is an absolute necessity. Not only for safeguarding the interest of the company but even to begin the process of getting the required sanctions, one requires hold in the high echelons of politics and administrative circles. Indian society is highly plural. It is the biggest republic in the world with multi party political system.During the last couple of decades, India has assailable its market to world. It has absolutely become an open global market. Banking area, Insurance sector and all fields of industrial and business are now open for multi national investment. Of course there are some(prenominal) obstructions to cross. And mostly all issues can overcome and establish business if you have the political patronage. India has a plural political system. With numerous political parties, national level and render level, it is very difficult to get a consensus among all parties for starting any business.Also these political parties have patronage of many factors, caste, creed and ideologies. There are political parties with left centric communist ideologies they are totally against direct foreign investments. But other parties, who are main ruling conjunction partners, have right centric ideologies and open for foreign inv estments. In most of the states, mostly local political parties are ruling. Political parties require pecuniary patronage from big business establishments. Many constituent states have established the need for foreign investments in their state for a growth oriented economic situation.Hence the climate has changed a lot in India. So many privileges are offered to entrepreneurs to start business. With all these facilities, still political patronage is a must to start a business in India. Even after establishing the business, for a proper running of the business, political help is essential. It is mainly to sort out issues related to local taxes, labor problems and many such issues affect the normal working of the companies. Some exapmles in which the government interfere has changed the track people did business India food items need to put Green continue for all vegetarian items and a Red dot for all non-vegetarian items. All the packaged products need to have MRP(Maximum Ret ail price) on their package. Auto industries had to introduce pricy emission control in thier car-Euro II compliance Public fascinate in delhi like autorickshaws and buses have to use only CNG in place of Petrol or Diesel. Introduction of VAT in Delhi RBI conglomerate guidelines to credit cards companies Introduction of 3G technology And very recently, India has asked RIM (Research in Motion), maker of Blackberry, to install its server in India for tracking its messenger & opening mail services. nd if they dont do so, there services will be banned, which will affect their business in India. Social-Cultural Factors Social factors influence the products people buy, the prices they are willing to pay, the effectivness of speific promotions and how, when and where people purchase products. They change gradually and some changes will be imperceptible if not watched closely. That is the reason why it is most difficult variable for marketing managers to forecast, influence and in tegrate into marketing plans.One thing India faces no competition is its varied culture and heritage. It has great diversity in cultural practices, languages, customs and traditions. In india people before starting a new business consult astrologers. Supersition are a part of life like they avoid eating non-vegetarian on Tuesdays due to some releigious reasons. People here consider cows a holy animal and it is adore and this is the reason behind failure of KFC in India in 1997 when they inroduced Beef items in their Menu. Values A value is a strongly held and enduring belief.In India a persons values are key determinants of what is important and not important to him, how he reacts in a particular situation and how he behaves in a social situations. directly educated Indian consumer do not acquit ineffective products and sloppy behaviour of marketers. He has become more inquisitive, bang-up and demanding. Comapnies should learn to expect tough customers. Time Starved Customers r ight away many customers place value of non-material accomplishments, such as having control over their lives, and being able to take a day off when they want.As work life gets longer andstressful, people are spending their leisure time recuperating. nonchalant Frdiays and Home offices are further blurring the boundaries between work and leisure. People will increasinly place more value on time than money. Multiple Lifestyles Today People lead multiple lifestyles. They choose products and services that meet assorted needs and interests rather than conform to traditional streotypes. A person can be a teacher and also a a gourmet, fittingness enthusiast and so many other things. Each of these lifestyles is associated with different products and services and is a otential customer for companies. This has change magnitude the complexities of consumers buying habits. A person may go on holidays to exotic holiday locations and may spend a fortune to travel, but may dine in very frequ ent restaurants. Changing structures of Families The growth in the number of working women means an increase in dual-income families. These families have greter household income but less time for family activities. more(prenominal) working women has meant an inreasing demand for time-savng devices and products, particularly for th kitchen.It is being discovered that cost is more prominent in deisions made by women, whereas quality is relativly more important to men. This will have important influence when comapnies design marketing mixes for products where the women is prime decision maker. Some examples hwo this factor has affected the market Hindustan Unilever circumscribed markets different blends of tea under the same brand name to predict the regional preferences of consumers. Gits India specialized in supplying gourmet mixes to housewives, knows the taste well of North & South India. MTV facebook, CNN, Discovery has completly changed the values of Indian consumers. Autom obiles & Insurance companies potrays themselves as a family product in their advertisements. Natural Environment Natural environment includes factors such as seasonal variations, climatic differences, soil conditions and natural terrain. In consumer markets, the natural environment affects companies because of the differences in the nature of products bought by consumers due to variations in seasons and climate. In difficult terrains like hilly areas, it is difficult and expensive to get products to the customers..It becomes more expensive to build distribution channels for companies whose target markets are geographically disperse. There are so many environmental issues in India for example Extinction of Tigers, Pollution in urban cities, Water shortages, deforestation etc. So a company raising even a single issue could do well here. How can we forget to mention Ideas initiative to save paper by usine mobile phones. Its outstanding advertisements & promotional campaigns has really catched our attention. Government also doing thier best to save our environment like PUC(Pollution under control) is must for all the ehicles, soap industry must have to increase its biodegrability, strict laws against killing tigers, encouraging use of solar zipper in big government head offices. Technological Environment technology is practically everywhere today-it has changed the way we prepare food, we buy our clothes, and we build our homes. It has changed the way we send our posts, we take our exams, we fill up our forms and the way we resort to solacement and entertainment. Computers, the most visible impact of technology have come a long way from being huge machines locked up in a room to tiny palmtops with more features added everyday.It has all the functions of a calculator, a euphony player, a home theatre, a video camera and practically a better tool than a pen and a sheet of paper. With more features and functions, computers have led to loss of jobs for millions. In this context, we can look at the impact of technology, especially computers, in the Indian context. Cloud computing, Voice over internet, online social involvement, 3G technology, E-banking are some of the remarkable technological improvements that has changed the lifestyles of Indian consumers. Today companies offering outdated or obsolete technology couldnt survive.People are demanding streetwise gadgets and gizmos. And this is something learned very well by Nokia in India, which introduces new and innovative handsets every month. In case of banking transactions, Earleir people used to go to banks for each transactions. Then they start doing it over the internet at home or offices and today they are demanding banking on the move i. e. on thier mobile phones. Also IT sector has made india one the biggest outsourcing hub in the world. So basically if a company wants to survive and stay ahead in India market, it needs to keep developing new products through its R.Econmic Environ ment The economic environment can have a major impact on businesses by affecting patters of Demand and Supply. Companies need to monitor these indicators to survive in the market. Income of Indian consumer has increased and now they are more and more high standard of hold products. That is the reason why Harley Davidson, Porshe has set up thier showrooms here. After inflation nigh issue is Infation which is rising at constant speed increase in prices of fuel, Food items has really impacted producers here.