Stc emerging trends in marketing

Random Thoughts on

Emerging Trends in Marketing

Presentation by

M.Settu

CEO, Syndicate Exports Pvt LtdVice President, Coimbatore Productivity Council &

Former President , Coimbatore Management Association


[email protected] Oct 2009 3

This presentation is based on some

Random Thoughts on Marketing

No specific pattern followed

Marketing Management and Marketing

Strategies are not Static; They are

Dynamic……



Let us see some background data to review

the emerging trends….

32.9

28.9

24.522.6

24.4

16

12.2

7.6

4.2 5 68.9

19.1

27.3

2220

0.3 0.20.1

1.8

0

5

10

15

20

25

30

35

India 32.9 28.9 24.5 22.6 24.4 16 12.2 7.6 4.2 5 6

USA - - 0.3 0.2 0.1 1.8 8.9 19.1 27.3 22 20

0 1000 1500 1600 1700 1820 1870 1913 1950 1998 2006

A GLORIOUS PAST(% share in world

GDP)

USA

INDIA

USA

INDIA



Composition of India’s GDP

Sector 1900

%

1970

%

1990

%

2000

%

2010

%

Agriculture 70 44 31 25 15

Industry 20 24 26 26 25

Service (Including Edn &

IT Sector)

10 32 43 49 60

Total 100 100 100 100 100

MEASURE OF GLOBALISATION

21.234.7

46.8

117.4

0

20

40

60

80

100

120

140

International Trade as a % ofGDP

21.2 34.7

Total External Transactions as% of GDP

46.8 117.4

1997-98 2007-2008









Penetration level Per 1000

Car 7

2-Wheelers 45

Bus 0.7

Common vehicles 4

Economic Times 10-9-07 Page 12



THE SHOWPIECE DECLINE

39.936

29.1 27.5

44.5

51.3

54.9

1974 1978 1984 1988 1994 2000 2005

Source: Planning Commission, 2006

People below poverty line in

India

(As % of total population)





In 2007

Indians Below the Age of 35 years 65%

Indians Below the Age of 25 years 50%

Ref: Business India April 8, 2007



In 2025

Average Age for India 31 Years

Average Age for US & China 39 Years

Average Age for Russia & UK 44 Years

Ref: Business India April 8, 2007

“I think there is a world market for maybe five computers.” - Thomas Watson, chairman of IBM, 1943

“Computers in the future may weigh no more than 1.5 tons. ” - Popular Mechanics, 1949

“There is no reason anyone would want a computer in their home. ”- Ken Olsen, founder of DEC, 1977

“640K ought to be enough for anybody. ” - Bill Gates, 1981

“Prediction is difficult, especially about the future”- Yogi Berra

38.2941.33 40.92 41.42 40.22 40.78

43.3

166.05

229.58

22.81 28.5336.29

44.9754.63

76.53

98.37

142.07

206.83

272.88

21.61 26.6532.71

101.85

56.95

35.61

13.36.683.581.881.20

50

100

150

200

250

300

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Wireline Wireless Total

No. of Connections in millions

Growth of Telephone Connections

Year as on 31st March 2008



A Future Economic Superpower

Rank 2000 2006 2050

1 USA USA China

2 Japan China USA

3 Germany Japan India

4 China India Japan

5 India Germany Germany

Source: Time August 13, 2007( For 2000 & 2050), BRIC’s Report for 2006

India: #1 Emerging Retail Growth Market

A.T. Kearney Global Retail Development Index (GRDI)

GRDI Rank 2003

GRDI Rank 2004

GRDI Rank 2005

Russia Russia India #1

Slovak Republic

India #2 Russia

China China Ukraine

Hungary Slovenia China

India #5 Croatia Slovenia

Turkey Latvia Latvia

Morocco Vietnam Croatia

Egypt Turkey Vietnam

Vietnam Slovakia Turkey

Tunisia Thailand Slovakia

Source: A.T. Kearney Index (GRDI)

Most Unsaturated: Modern Retail Penetration <3%

Large Market:

Retail Market Size:

US$330 billion





Technology Explosion impacts even the gross-root people of the rural

economy…



HIV

Dec 2002 4 million

Now 2005 10 million

By 2010 25 million

By 2025 110 million

Source: Time, June 6 2005



Diabetics Patients in India

Year In million

2002 32.7

2008 40.0

2025 (Projection) 57.2



The Gross Enrolment Ratio (GER) in Higher Education

Canada 100%

USA 81%

Israel 33%

Philippines 28%

Thailand 19%

Indonesia 11%

Malaysia 10%

India 11%

HDI Ranking (Source: UNDP)

Country 2009 Rank 2008 Rank

Iceland 1 1

Canada 3 4

Japan 8 8

United States 15 12

United Kingdom 21 16

Germany 23 22

Singapore 28 25

Russian Federation 73 67

China 94 81

Sri Lanka 104 99

Brazil 70 70

India 132 128Pakistan 139 136

Bangladesh 147 140

Ethiopia 169 169



Transparency International: Corruption Index

India has been ranked as one the Most Corrupted Countries in the

world

The Least corrupt Countries 2007 Rank 2008 Rank

Denmark 1 1

Finland 2 5

Singapore 4 4

Sweden 5 1

UK 13 16

USA 20 18

China 73 72

India 74 85Srilanka 96 92

Nepal 135 121

Pakistan 140 134

Russia 145 147

http://www.transparency.org



Now,

come to Marketing…

Production Concept

Production—Oriented

Achieving High Production Efficiency

Low Cost

Mass Distribution

Product Concept

Product - Oriented

Focus on manufacturing Quality Products

Good Performance of the Products

Innovative Features

Aggressive Selling & Promotion effort Sell what they make rather than what market

wants

Focusing the needs of the seller Aggressive selling with unsought goods such as Insurance, Encyclopedia, Political parties selling their candidates

Selling Concept

Focus on the Needs of the buyer

Customer Satisfaction

Target Market

All the Departments of the company work together…..

To satisfy the customer interests

Building social and ethical considerations into the marketing practices

Balance the Company Profits, Customer satisfaction and public interest

Preserving and enhancing the consumers’ and the society’s well being

Marketing Concept

Integrated Marketing

Societal Marketing

Building long-term profitable customer relationship

From Market share to customer share

Customers design their own product features… From Target marketing to individual marketing

Relationship Marketing

Customer Share

Individualization

Ownership Marketing

Make the customer, the owner of

theCompany

Like ESO, companies would offer

‘Customer Stock Options’ (CSO).

Channels as Partners Intermediaries (Agents, Distributors, Wholesalers/Retailers ) as partners in delivery value to final customers.. Importance of Logistics and Supply Chain Management

Employee as a Marketer

Every employee to focus on customer-satisfaction not only Marketing / Sales Team

Marketing in Emerging Economies

About 20 countries contributing 80% of the population

Rural Marketing Great Potential… All MNC’s are focusing this area

More Focus on branded goods

Brand Loyalty/Brand Image/Brand Recall

E-Commerce / E-Marketing / Cyber

Marketing Air, Railways, Travel & Tourism, Book sales &

Fashion Technology etc.,

Focus on Green Business

Environmental and Pollution Control Awareness

More Focus on CSR

Corporate Social Responsibility

More Focus on Corporate Governance

Transparency in Governance in Company Reporting

Knowledge Explosion

More Product & Market AwarenessTechnology Growth

More Choices

More Products

More Competition

More CompaniesMarketing,

Challenges & Dynamics

More Innovation

More R & D

Foreign Collaboration

Economic Reforms

Technology Growth

More Companies

More inflow of Funds thru’ FDI /

FII / NRI

Challenges for Indian Industry in the Logistics &

Supply Chain Management

Inadequate Infrastructure

Govt. Policies on

Inefficient & Corruptive System of Governance

High Cost Financial Resources for Working Capital

Management

Raw Materials

Shortage of Manpower at different levels of the Supply

Chain

Frequent Interruptions

Ports

Rail AirportsRoads

Taxation

Documentation

Strikes in Ports & by Trucks

Power

Cost

Availability

Technological Innovation

Rural & Urban Market

Free-offers Schemes

Discount Mela

Product Suitability

Domestic Vs Foreign Products

Challenges in Brand

Management / Brand Loyalty



Thus, there are tremendous changes that are happening in almost all sectors that include

FMCG, Engineering , IT and Software, Telecom, Agriculture,

Banking and Insurance etc.,,



Marketing Strategies differ from,

Product to Product

Company to Company

Sector to Sector

Country to Country



There is no standardized Marketing System or Marketing Strategies.



You have to use your Experience, Knowledge & Wisdom to devise your own innovative and creative strategies for marketing your products or services

Devices & Hardware

Stc emerging trends in marketing