Service Management(Group 2)Sec R 2

8/3/2019 Service Management(Group 2)Sec R 2

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Emerging market trends in

indiaSubmitted By :- Group 2

Section :-R2


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Introduction

India ranks among the well known emerging markets in theglobal economic scenario. emerging market India has really

prospered which has helped to boost the Indian economy to a

great extent.

The main factors behind this booming emerging market are

the economic liberalization and the perfect competition

market, the development of medical facilities and

infrastructure, the increase in foreign investments

There has been a significant growth of the Indian market

which has resulted in the high Gross Domestic Product (GDP).

The average annual growth rate ranges between 6 to 7 %.

The rural markets are estimated to be growing fastly , have

acquired significance in countries like China and India, as the

overall growth of the economy has resulted into substantial

increase in the purchasing power of the rural communities.


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The youth segment is growing. Many market research

companies are spending sums trying to understand this

segment. The has been an Increased use of digital media and a

decrease in television, radio,and print mediawhich has

brought a complete change in advertisement industry.

Also the has been an Increased use of quality,targeted

content (textual and video) that tells a company's story welland engages the prospective customer.

Increased use of e-mail to reach out to prospects and

customers more frequently at a very low cost

There has also been a great change in consumer perception

and lifestyle over years which has brought a paradigm shiftin the indian market.e.g more and more women are nw

working which has brought a great change in their

lifestyle,prefrences and perception.


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Changing consumer behaviourThere has been a huge change in consumer behaviour since last few decades

and is continously changing.In INDIA since liberalization of economy there is a rapid change in life

style,e.g-

Theme wedding :-

There are consumers who like to celebrate occasions in a special way.

Theme weddings are getting more popular these days and they have

completely changed the style of celebrating wedding and the way it use to

celebrate earlier.Event management for weddings and theme weddings are

equally getting popular


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The youth segment is growing. Many market research companies are spending

sums trying to understand this segment. They have done what is known as ,Mind

Mapping to know their full profile and segment them .

The kids segment is also very rapidly changing. With plenty of pocket money to

dispose now kids also can make their own buying decision -it could be a greeting

card for a valentine or strawberry sundae at Mc-Donald's with a girl. They are

familiar with brands and can identify them.

The senior citizens are also changing their life style, they dont save much as they

used to. They shop, watch cricket matches tour and go for wild life observations &

religious cum physical exercise tours. They take care of their health by going to

gym , spa resorts, yoga.


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Emerging Trends in the Indian market

Food and beverages market

Consumers consumption pattern has changed. People these days have busyschedules & do not get time,so consumers demand for processed, health,

packaged & ready to eat food.

The tremendous growth in its population of young people is likely to bring about ashift in the Indian food and drinks industry, as young populations drive the demand for

processed and health foods.

Due to increasing urbanisation and rising disposable income, the buying power of the

new middle class is increasingly being directed towards modern, convenience food

products .Higher incomes will result in a change in consumption patterns

The Indian distribution system is very fragmented because of the large size of the

country, infrastructure constraints (roads, cold storage and electricity) and a large

number of retail stores. Transportation facilities and refrigerated warehousing are

limited and costly, thus requiring huge capital input for quality warehousing and

distribution.


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HEALTHCARE INDUSTRY

Till few years ago healthcare delivery was sole responsibility of Private

practitioners and Doctor owned and run hospitals. Since it was alsoconsidered only as a social sector so almost all the large hospitals were

either Government or charitable hospitals.

But today, The demand for quality healthcare has increased within the

domestic healthcare consumers.

Peoples concern for their health has brought about many changes in the

healthcare sector.

Todays patients have more choices than ever when it comes to choosing

and using health care resources,

In the present scenario, providers need to offer innovative services and

products that are geared toward health care consumerism


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REAL ESTATE

As Indian economy is rapidly changing in response to technological

innovation, real estate has evolved from a depository of wealth for householdsand assets for corporations into a major force in the debt and equity markets

Indian real estate industry is growing with a compounded growth rate (CAGR)

of more than 30%on the back of robust economic performance of the country.

Market is getting more organized with presence of overseas developers

Emergence of small citiestier II & tier III cities

New avenues of investmenthospitality, health care, integrated townships,

infrastructure corridors and others Investments flowing from multiple sourcesFDI/PE/Institutional

Investors/Debt

Real EstateSecond Largest employment driver in India


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STAGES OF EVOLUTION

PAST

Lack of Industrial

Status

Finance being

arrangedmainly from pre-selling

of the units

Limited purview of

the

government

Quality of

construction

average

Lack of transparency

PRESENT

In line for industrial status

Multiple sources of

fundingDebt, PE, VC,

etc

Enjoys strong attention of

the central as well as state

government

Remarkable improvement

in the quality and designs

of construction

Improvement in the

transparency level

Emergence of well-defined

product categories

MOVINGFORWARD

Fully organized

industry

Well placed industry

standards

Industry regulator in

place to control the

sector

FDI allowed in across

real estate avenues

REITS/REMFs

increasing the depth

of the market


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RURAL MARKET

There has been a significant changes in the indian rural market since past fewyears.

Banking sectors finding better opportunities through farmers. As

farmers need loans for seeds, fertilizers etc. farmers also need to invest

their money for future use.

As the prospect of rural population is changing towards health, and

lifestyle. FMCG sector is realizing this opportunity through increasing

their marketing trends for this segment . Hospitals are also finding

better way to establish in rural segment.

Looking at opportunities in haats, melas, post offices, system etc.


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Strategy Marketers are Opting

Information Technology : Places computers with Internet access in rural

farming villages

Each e-Choupal costs between US $3,000 and US $6,000 to set up and

about US $100 per year to maintain

The farmers use the computer to access daily closing prices on local

mandis.

The farmers can also know about weather forecast

local and best practices in the world from e-Choupal Website

Order seeds, fertilizers, and other products at harvest time, ITC offers to

buy the crop directly from any farmer


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New rural marketing trends


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ICICI BANK customized their rural ATMs, so they can operate biometricauthentication. ICICI rural ATMS are battery operated so that power failureis not issue.

Bank of India introduced Bhumiheen credit cards for providing credit cardfacilities to landless farmers.

Nokia develop affordable Mobile phones for rural markets with uniquefeatures such as local language capabilities, present time/ call limits etc.

Philips develop a TV Vardaan for rural markets. This TV work on thevoltage 90-270 volts.


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Conclusion

There has been a great shift in the marketing trends of the economy, may it

be service sector, health care sector , retail sector or any other sector.

The change in consumption pattern of consumers has led to the change in

marketing trends . the income of consumers has changed due to which

marketing trends have changed, because manufacturers have to produce asper the requirements of the consumers.

The major changes are in the form of distribution pattern, advertising,

promotion techniques.

Marketing people are very keen on keeping track of life style changes,

because this gives signals for new products and services.


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Documents

Service Management(Group 2)Sec R 2