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Marketing and Strategy

Last Updated: February 2012

Introduction

Manufacturers and service providers today are laying intense focus on how they market their offerings to the customers and hence are devoting substantial time, energy and finances to device appropriate strategies in order to attract the buyers.

A new report released by Boston Consulting Group (BCG) and Confederation of Indian Industry (CII) projects that India's robust economic growth and rising household incomes would take consumer spending to a level of US$ 3.6 trillion by 2020. The report further stated that India's share of global consumption would expand more than two times to 5.8 per cent by 2020.

Such forecasts make marketers leave no stone unturned to attract existing as well as potential customers towards their products and services. India is also witnessing a flurry of innovations when it comes to marketing strategies. Be it online canvas, conventional media or advertising industry, marketers are making all the efforts to gain maximum footage in rural as well as urban spaces.

Marketers are focusing on rural India

Rural India is the new battle ground for marketers and manufacturers these days. India's growth in terms of consumption pattern is largely to be accounted by the people residing in hinterlands, as per the BCG report discussed above. The report projects that small town and rural customers would be the single largest market segment constituting 36 per cent of households by 2020 and rural and urban aspirers will account for 23 per cent of all the households.

  • Automobile makers are keen on exploring the Indian consumer market in search of potential car buyers. . Rural India accounts for almost 35 per cent of the automobile industry sales. While Ford is dedicatedly working with its retail banking partners to target the rural customers, General Motors has laid renewed focus on its rural marketing initiatives. Toyota is also planning to strengthen its rural reach and set up additional 25 outlets in semi urban and rural areas in 2012
  • Indian footwear industry, growing at a compound annual growth rate (CAGR) of about 15 per cent, is anticipated to reach approximately Rs 38,700 crore (US$ 7.86 billion) by 2015 from the current level of around Rs 22,000 crore (US$ 4.47 billion), according to a study titled 'Indian Footwear Industry: An Analysis' bya leading industrial body. The projected growth is based on larger penetration into tier II and III cities and growing rural market which is making various premium footwear brands enter India's non-metro market. According to the estimates, rural India accounts for about 55 per cent of the overall footwear industry

Advertising, Media & Entertainment

Advertising is an inseparable part of marketing initiatives these days. As of now, the conventional advertising industry's revenue is pegged at US$ 400 million currently. The online advertising market (which comprises of search, display, videos and classifieds), accounts for 7 per cent of the total advertising pie and is currently estimated at Rs 1, 850 crore (US$ 410 million) in terms of value.


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Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
 
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