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The story of the consumer born after 1985 who is entering the market now. In essence the story of < 25 years old.
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Automotive
Payal Kaun Hai ? Clip 1
Clip 2
Automotive
Automotive
Who is Payal ? Payal was born in India after 1985
She is younger to Maruti Suzuki and Hero Honda
She is among 8% of car buyers and 31% of two wheeler buyers in India today
Her age group has the potential to buy 1.9 Lakh cars and 35 Lakh two wheelers in a given year
Automotive
For Payal… Car = Maruti
Motorcycle = Hero Honda
TV = Color TV
TV Transmission = Cable & Satellite
Movie Viewing = My own choice (VCR)
Phone = Push Button / Mobile / iPhone
Music = My own choice (Walkman)
Career = IT / Software / BPO
Information = Internet
Money availability = Easy Credit
Sport = Cricket (not Hockey)
Automotive
Payal has been brought up… In Peace, no Strife
In abundance, no Shortages
In affluence – India Shining
With unprecedented choice
The Middle Class Rises!!The Middle Class Rises!!
AutomotivePayal has wide connections but little conversation…
More time spent in front of the screen than in classroomo More time with self o More time in impersonal communicationo More time in one to many communication o More time in one sided communication
Self centered behaviour Plethora of information, but no guidance for decision
Automotive
Even the forbidden is known to Payal
Sex is the most searched topic on the web
Secret Govt documents are available on Wikileaks
IPL auctions are no more a mystery
Confidential conversation between lobbyists and business
tycoons are available in magazines
Sting operations on political leaders, film stars, school
principals, Govt officials, Army Generals are telecast on TV
Automotive
Everything seems plausible to Payal
There are no more heros. Idols are crumbling. Warrants are out for Lalit Modi. There are no takers for Saurav Ganguly and Brian Lara even in second bidding. Everyone is a commoner. Therefore there is nothing which they can do, that Payal
can’t Nothing is too big to aspire for After all Irfan Pathan and Rohit Sharma the boys next door are getting the same
salary as the MD of a big corporate house
AutomotivePayal wants success today – everyday…and is willing to slog for it
I AM CONSTANTLY STRIVING TO IMPROVE MYSELF AND MY ABILITIES IN AS MANY WAYS AS POSSIBLE - % WHO AGREE
SUCCESS IS SOMETHING YOU CAN EXPERIENCE EVERY DAY - % WHO AGREE
Source : Global Monitor 2009
Source : Global Monitor 2009
Th
e P
ow
er
of
No
w
AutomotivePayal wants Instant Gratification – Does not want to wait for anything
I AM HAPPY TO HAVE SHORT-TERM DEBT TO ALLOW ME TO BUY THE THINGS I WANT -% WHO AGREE
You can get a bank loan and even buy a house anywhere so
why should we wait …we want to enjoy our
house today…
‘If people wait for tomorrow then they
will grow old and not be able to enjoy
life…
Source : Global Monitor 2009
Th
e P
ow
er
of
No
w
AutomotivePayal wants to be on trend – Not be left behind
I'M ALWAYS LOOKING OUT FOR THE NEXT BIG THING IN TECHNOLOGY, FASHION, MUSIC OR ART -% WHO AGREE
Recently we bought a diamond ring for me…I am the only one in my
Kitty to have such a ring, but the greater thrill was
that we saw it and bought it, we did not have to wait to think about the money and
all…I have a cell phone with all the latest features…I had the money in hand
and I bought it immediately…It feels
young and energetic to keep up with the
times…
Source : Global Monitor 2009
Th
e P
ow
er
of
No
w
AutomotiveThe ladder of life for Payal…
Payal doesn’t need to start at the bottom of the ladder
She can start from the middle of the ladder. She has the confidence to
start from there, credit enables hers to do that and her optimism tells her
that tomorrow will be even better and she will be up the next step for sure
…starting mid-course…starting mid-course
I have a house, and my dad has a Maruti Alto…how
about a iPod with my first salary…of course the
sedan will follow
I have a house, and my dad has a Maruti Alto…how
about a iPod with my first salary…of course the
sedan will follow
Automotive
750750 11001100 20002000 25,00025,000
30003000 40004000 50005000 10,00010,000
15,00015,000 36,00036,000 150,000150,000 40,00,00040,00,000
10,00010,000 10,00010,000
Salary of a young executive (INR)Salary of a young executive (INR)
FridgeFridge
DDA FlatDDA Flat
Colour TVColour TV
30003000 40004000 10,00010,000 50,00050,000
20,00020,000 22,00022,000 40,00040,000 2,50,0002,50,000
20,00020,000
60,00060,000
Two WheelerTwo Wheeler
Car Car
i Phone i Phone
Apple LaptopApple Laptop
50,00050,000LCD TVLCD TV
19701970 19751975 19841984 20102010
AutomotivePurchase ladder is now spiral
No purchase is life long
Durables are replaced many times over
Even a house gets upgraded over time
The base spiral itself may start with semi premium brands/products
With each change in life stage the spiral may expand and move up
Automotive
So what does Payal and her ilk do to the game?
Automotive
Payal is a harbinger of change, but change is all pervasive
Automotive
The changes witnessed in Car IndustryDigital is in..Digital is in..
One need not enter only through a “entry-level” carOne need not enter only through a “entry-level” car
People are increasingly buying “Small-Cars” at the price of a SedanPeople are increasingly buying “Small-Cars” at the price of a Sedan
Car owning households are buying MUVs, as additional cars Car owning households are buying MUVs, as additional cars
Automotive
Digital is in..Digital is in..
One need not enter only through a “entry-level” car
People are increasingly buying “Small-Cars” at the price of a Sedan
Car owning households are buying MUVs, as additional cars
The changes witnessed in Car Industry
Automotive
% using at least once a day – India (Global)
(32)
(54)
(36)
(61)
(14)
% using Digital at least once a day – India
Digital usage has not yet replaced offline media usage, younger consumers are more frequent digital media users
Coupled with a young population, the potential is huge
Coupled with a young population, the potential is huge
Source: A TNS Syndicated ResearchSource: A TNS Syndicated Research
Automotive
17.6 9.0 9.3 8.1 7.8 9.0 10.4 9.5 6.8
1.2 0.8 1.0 0.1 1.7 1.0 0.7 0.2 0.2
PC/ Laptop
Mobile
IndiaGlobal Male Female 16-20 21-24 25-34 35-44 45-60
The engagement level of Indian consumers are high. However, usage levels are almost half of the global average
Hours spent on internet per week
Source: A TNS Syndicated ResearchSource: A TNS Syndicated Research
AutomotiveCar Buyers are also using the digital media more than before…
3
6
10
65
10
4
8
EntryCompacy
Premiumcompact
UpperPremiumCompact
EntryMidsize
Midsize PremiumMidsize
MUV/SUV PremiumMUV
Source: Syndicated Total Customer Satisfaction StudySource: Syndicated Total Customer Satisfaction Study
Automotive
The Big Changes
Digital is in..
One need not enter only through a “entry-level” carOne need not enter only through a “entry-level” car
People are increasingly buying “Small-Cars” at the price of a Sedan
Car owning households are buying MUVs, as additional cars
AutomotiveMore people are entering the market by purchasing “Non entry” level cars
47
42
3835
37
41
13
54 4 4 3 3 3
2 2 2
9 9 9
EntryCompact
PremiumCompact
UpperPremiumCompact
EntryMidsize
Midsize DieselMidsize
SUV/MPV
2005 2007 2009
Source: Syndicated Total Customer Satisfaction StudySource: Syndicated Total Customer Satisfaction Study
Automotive
The Big Changes
Digital is in..
One need not enter only through a “entry-level” car
People are increasingly buying “Small-Cars” at the price of a SedanPeople are increasingly buying “Small-Cars” at the price of a Sedan
Car owning households are buying MUVs, as additional cars
AutomotiveConsumers increasingly purchasing the “small-big” car at the price of Sedan
Small car that is packaged with big car feature- Space, safety feature, engine to provide joyful and athletic ride. Also at the price equivalent to Entry level sedan
Entry level sedan’s has always has been a symbol of having arrived, or to say status
However the emergence of a new segment has added a twist to the tale with it being increasingly associated with symbol of being arrived
Average Price: Rs.6 Lakhs
Average Price: Rs.6 Lakhs
Average Price:. Rs. 5.8 Lakhs
Average Price:. Rs. 5.8 Lakhs
Total volumes (2010): 2.17 Lacs
Total volumes (2010): 2.18 Lacs
AutomotiveCar owning households are buying MUVs, as additional cars
30
43
2726
51
22
0
10
20
30
40
50
60
First New car Additional Car Replacement car
2007
2009Per
cent
age
Source: TNS Syndicated Total Customer Satisfaction StudySource: TNS Syndicated Total Customer Satisfaction Study
Automotive
Page 26
Who owns a SUV/ MUV as a additional car?
Entry & Premium
Compact-52%
Entry & Premium
Compact-52%
Entry & Regular Midsize-18%
Entry & Regular Midsize-18%
Premium Midsize- 6%
Premium Midsize- 6%
SUV / MUV- 21%SUV / MUV- 21%
Automotive
Purchase Behavior – Across Years
46
44
29
36
25
20
First Additional Replacement
2009
Page 27
2008
2007
A higher incidence of buying the second household carA higher incidence of buying the second household car
Automotive
Thank You
Thank You
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