INDIA CONSUMER

INSIGHTS (ICI)

Peshwa Acharya

INDIA – MEDIA SNIPPETS

• Advancing Through Product category Developments

• Increasing per capita consumption

• Demanding Variety in product category

• Demanding Innovations in Brands

Signs Of Evolving Consumerism

Digital Homes Growing...and its impact!

APR 2006 AUG 2007 Jan 2009

TV Homes 117 Million 134 Million 135 Million

Cable & Satellite Homes 71 Million 83 Million 90 Million

DTH Homes 2.3 Million 6.5 Million 12.6 Million

Cable Set top Box Homes

0.8 Million 1.3 Million 2.5 Million

More number of channels are getting sample don Digital platform than on Analog

Consumption of TV has not changed across years whereas…….

Consolidated Hindi Space – Fragmentation within the pie on an increase

In a Typical ODI viewership accumulates Power Play and Slog Overs: T20 has borrowed best of ODI format

Non - Fiction Content Evolution

Testing IQ/

Luck Based..

Game Shows

Talent on the

Stage..

• Individual

Singing

• Individual

/Group

Dance based

• Stand Up

Comedy

Situational

Reality..

Indoor Real

life situations

Outdoor

Challenges

Celeb Events

Marriage on

TV Courtoom

Drama

Common

Content Addressing Viewers concerns than just covering news fetches better returns on News Channels

All in all the evolving consumer is…

• VERY DEMANDING

• VERY CHOOSY

• SPOILT FOR CHOICE

What does this mean for the Advertisers?

• Increasing fragmentation :

- Consumption basket increased from 30 to 50

channels (2004-09)

• Ad-avoidance :

– 20% drop in ratings during commercial breaks

• Increased Ad - Clutter:

– 58000 to 95000 commercials per day on TV

(2004-09).

Radio attains two similar peaks in the mornings & evenings Peaks of TV and Radio are quite comparable

Radio and Television has been used to reach out to maximum audiences by focusing on the right day parts

The plan helped the Advertiser to reach additional 2.7 Mn audiences at lower cost by including Radio in the media plan

Aggregation of Audiences happening on Reality shows / Events /Cricketing events

Mother Co-viewing with the toddler happens maximum during the morning

Road Blocking fetches faster reach buildup at higher frequencies

98% GRPs of the Brand were attained through Product Placement

Further, qualification on Placement GRPs… Presence of same brand ads in the breaks

Brand Recall

53%

Brand Recall

18%

Only Ads Placements + Ads

• Study in Mumbai revealed Brand Recall jumps 2.9 times

when Brand Ads are supported by Placements

• Hence, its possible in such condition to up-weight Ad GRPs

Programme Exits maximum in Afternoon whereas Break exits maximum in Prime time

Future of Consumer Communication: Interactive TV

• Digital penetration itself at 10% in India

• Usage of Interactive negligible. Evolved Usage of

Interactive TV in developed countries:

– T – Commerce

– Informal surveys / Consumer feedback

– Electronic Community Meetings

– Targeting specific communities / Segments

Future of Consumer Communication: DVR’s

• 30%of TV Homes in US have DVR’s

• 42%of prime-time TV was time-shifted instead of watched live

• 95%of all broadcast prime-time DVR viewing is done within three

days of the live telecast.

• In DVR households, viewership of the typical prime-time show

increases by73%when people who have watched it within three

days on DVR are included.

• Since the viewer consumes the content at his leisure on an Avg. 3

out of 10people don’t skip Ads.

• The viewer total for ads goes up by 32%when DVR watchers within

three days are included

• Win -Win situation : consumers have a choice to skipads &

broadcasters get more viewingfor the same telecasted content

• Online Advertising, Product placement, better commercial content as

counter to DVR’s

Next steps ….

• Cross media Focus is critical.

• Presence on Unifying content is necessary but not enough.

• Niche content offers resolved profiles and better engagement levels.

• Continuous innovation in terms of Content and ways of to reach

audiences is needed.

Mapping the Urban Affluent: across 35 metros

Affluence lives in the 35 metros

• 35 metros account for more than 80% of sales of some of these categorys :

Sizing up the affluent

Affluent HHs

across 35 metros

2.56 mn

Top three cities

Delhi

Bangalore

Mumbai

Decoding consumption among the affluent

• Size alone is not a key indicator of affluence

• Affluent behave differently across metros

Lifestyle Ladder of the Affluent

Profiling Affluent

Women… ( possible TG for RVF)

Preferred language of

watching TV

English 8%

Regional 90%

CWE

Businessman 51%

Salaried 49%

Medium of schooling

English 43%

Regional 57%

Normally read

English daily 69%

Regional daily 90%

Working Status

Full time 13%

Education

At least Graduate 70%

Traditional touch points: Women

Reaching out to Affluent women

• Mass Media planning cannot ignore the importance of regional languages

• Non traditional lifestyle touch points cannot be ignored

– Beauty parlors

• Traditional and nontraditional reach must recognize

– Affluent behavior varies across cities

Affluent segment is sizeable

India : Confederation ……

• Identify the current position of States in India and arrive at meaningful clusters.

• Arrive at the States of Future

Discussion Points

Irrespective of consumption levels and Income disparities – States across India posted high growths

With over half of the country still very low on FMCG consumption – Indicating Opportunities and Challenges for marketers

States ….programmed on these parameters

Key Opportunities, Challenges and Strategies

3. Expansion across States

“ Additionally companies should introduce product variants that

account for distinctive regional tastes as well as a wide range of

package size and prices to account for purchasing preferences of

India’s many consumer segments”

- Sales Head of an MNC operating in OTC and Nutrition segments

Examples:

- Tea and Salted snacks to cater to regional tastes

- Punjab Haryana large pack markets vis a vis UP / Bihar

Key Opportunities, Challenges and Strategies

4. Brand Focus

“ We realise that the most powerful counter to price (Regional

players) and Private labels will be our brands. Hence strong Brands

supported by strong consumer preferences would help us convert

consumers and bargain with Large retailers”

- Marketing Head of a Personal care company

• Nielsen RMS/ NRS data

• Secondary Information – Government of India

– Human Development Index

– Population – Growth and Size

– Infrastructure Development Index

– Income and Affluence – RK Swamy and GoI release

– Rural markets

• Industry Interviews – Across 12 companies

– Representing Medium – Large HPC and Food Companies

– Current Regional Players

– Regional Players which are now large National companies

Identifying the Growth markets

Parameters used to arrive at growth states

2015 2020

States of Growth in next 5 years 2015

Delhi, Punjab, Haryana, Maharashtra, AP, TN Karnataka, Kerala, Gujarat, Assam

WB, Bihar, UP, Rajasthan

Orissa, MP

2009 2015

1

2

3

States of Growth in next 10 years 2020

Delhi , Maharashtra, UP, AP, Karnataka

Punjab, Kerala, WB, TN, Bihar Haryana

Rajasthan, Gujarat, MP, Assam, Orissa

2015 2020

1

2

3

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