CA Mckinsey

8/12/2019 CA Mckinsey

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M C K I N S E Y Q U A R T E R L Y S E P T E M B E R 2 0 1 2

Y U V A L A T S M O N ,

J E A N - F R E D E R I C K U E N T Z

A N D J E O N G M I N S E O N G

R E V I E W E D B Y : V I P U L N A I R



What is Emerging Market???

An emerging market is a country that has somecharacteristics of a developed market but is not adeveloped market. This includes countries that may

be developed markets in the future or were in thepast.

It may be a nation with social or business activity inthe process of rapid growth and industrialization.

The economies of China and India are considered to be the largest.



Effects of Emerging Markets…

More spending power.

Products Choice.

Competitive Prices.

Complex and swiftly evolving markets. Institutional transformation and economic opening

up.

Potentials of Digital markets.



Consumer Buying Funnel Model



Developed Market V/S Emerging Markets

Harnessing Word of mouth.

Word of mouth plays a more central role in the decision

journeys of emerging markets consumers.

Initial brand consideration set.

Emerging market consumers tend to consider smaller sets of

brands initially and, compared to consumers elsewhere, are

likely to switch later to a brand that was not in their initial set.

In store phase.

The in store phase of the consumer decision journey tend to be

longer and more important in emerging markets than developedones. Emerging markets consumers have a penchant for visiting

multiple times and for collecting information periodically when

they purchase especially big ticket items,







Conclusion

Above discussed principles sound obvious, but actingon them is not easy.

It requires bold investment decisions, build skills of

local teams and courage to operate in waysfundamentally different from HQ.

Process require a more friendly and family touch anda great in store experience.

All these lead to consumer loyalty



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CA Mckinsey