Trendcasting – Tuning Into The Indian Consumer In 2014
The Indian consumer and her purchasing behaviour is perhaps the most fundamental building block of the Indian economy. So at a time when pundits and punters alike are interrogating the true potential of the Indian economy, it helps to look at some of the trends that have emerged clearly over the last year and will likely determine the way business, marketing and advertising moves forward.
Despite the uncertain macro-economic dimension to this understanding, our view of the Indian consumer remains as clear as ever. Today, driving growth will depend on deriving growth – looking at the pockets of growth that point to what the new future will look like and choosing to leverage those marketing variables that can help organisations get ahead of their competition.
Let’s take a look at some of the consumption and attitudinal trends across categories to add evidence to this discussion.
- Overall consumer sentiment has improved in the last quarter of 2013 with India moving to the second spot globally – this uptick has seen a revival in corporate performance occur simultaneously.
- Geographically, rural India recorded the highest growth. Town Classes with a population of less than one lakh people (Rest of Urban) have shown clear signs of revival.
- Out of eight million FMCG retail outlets in urban India, 2.3 million drove 80 percent of sales.
- For FMCG, Chemists have emerged as a fast growing channel.
- The growth of modern trade has been driven by events – events now contribute 12 percent in key geographies.
- The Oats category has already cornered 26 percent of the Rs 720 crore breakfast cereal market in urban India in a span of just two years.
- Breakthrough innovations that focused on building demand and supporting the product in the store in months six through 18 delivered cumulative sales growth of 41 percent, compared with 11 percent for all other innovations.
- The first seven seconds of an ad are the most crucial in capturing a consumer’s attention and can boost a consumer’s opinion of the brand by 15 percent to 20 percent.
- Smartphone incidence has risen notably amongst the under 18 and 25-30 years age groups.
- 3 out of 4 male consumers are visiting apparel stores seeking new experiences and products.
- Financially, life insurance penetration in India is up by three percent in 2013 to touch 66 percent from 63 percent in 2010. Penetration of fixed income and equity investments has increased.
- Self-medication for common ailments is on the rise with ~55% urban Indians self-medicating.
‘RRREVVING’ Up Your Marketing Mix: Implementing the Reach, Resonance, and Reaction Framework
Like the country itself, India’s media and retail markets are dynamic and rapidly evolving—marked by increasing media fragmentation, the spread of advanced mobile devices, higher connectivity, and huge growth in product options at retail outlets. And these changes present a challenge for marketers to reach and resonate with consumers for the all-important reaction—a sale.
To get the right messages to the right audiences and drive all-important sales, the “Three R” framework of Reach, Resonance and Reaction is an effective way to evaluate advertising campaigns.
- Reach measures whether the campaign was relevant, and whether it reached the intended audience.
- Resonance determines if the campaign message influenced the audience, and if it improved the consumer’s opinion of the brand.
- Reaction looks at what the consumer did after seeing the ad, and if the campaign influenced a purchase decision.