Demographic Environment

of Company

Presented byGroup # 1

Seetal Daas(Leader)Kheemchand

Ahmer AliMuhammad Saleem

November 11,2014

Demographic Environment

• “Demographic: is the study of human population in terms of size, density, location, age, gender, race, occupation, and other statistics.”

• it exceeds 6.6 billion people and will grow to 8.1 billion by the year 2030.

• In Pakistan, young 14 years or younger close to 40 % of the population , out of which almost 14% are four years old or younger.

• Procter & Gamble(P&G) launched its world famous disposable diapers brand, Pampers, in Paksitan in August 2000.it succeed in Paksitan.

• 50 to 60 % of the total population of, out of which almost 45 % are 8 years older. So the Pepsi Pakistan target market is almost 45% of the population. Also consumed in Universities, Cafes, Family structure, youth on the cricket time.

Increasing Population

• One of The main characteristics of the Asian population is the rapid growth in its urban population.

• Some 1.1 billion people in Asia will move to cities in the next 20 years.

• By 2030 half of the population of the continent will live in cities. The population in urban areas will rise from 29% today to 37 percent in 2025.

• Pakistan estimated population 192 million in 2014, making sixth-most populous country in the world.

• In 2014, the population growth rate stands at 1.49%.

• Birth rate (31 births/1,000 population (2009 est.)

• Death rate(8 deaths/1,000 population (2009 est.)

A Growing Middle Class(by Kheemchand)

• McKinsey Global Institute(MGI) has divided Indian population into five economic classes on the basis of their annual disposable income:

• 1)Deprived household(income less than Rs.90,000,unskilled/semi-skilled)

• 2)Aspirers(incomes range Rs.90,000 to Rs.200,000)

• 3)Seekers(income range Rs.200,000 to Rs.500,000)

• 4) Strivers(income range Rs.500,000 to Rs.10,000,00)

• 5) Global Indians(income excess of Rs.10,000,00)

Growth in Rural Population(by Ahmer Ali)

• The MGI Indian consumer Demand Model has forecasted that the population in rural India will be 906 million by 2015.The demand in rural India is expected to grow at an annual compound rate of 5.1% during next 15 years. By 2025, rural consumption will nearly triple, creating market over Rs.26 trillion.

• Today, the main constraints for marketers in rural markets in not purchasing power alone, but a variety of other factors like lack of proper infrastructure such as road and telecommunication connectivity and reliable supply of electricity, by this rural markets will come closer to urban market, bridging the gap b/w the two.

• Rural population in Two populous countries Pakistan & Bangladesh, are the challenging potential for marketers. Unilever subsidiaries in both these countries have borrowed from Shakti Project of Hindustan Unilever Limited.

A Changing Family System

• Traditionally, the Indian subcontinent has always favored the joint family system. Division of labor(family member) in this traditionally family was quite simple: the able-bodied men duty was bread earners, the women would be responsible for the kitchen and the elderly would look after the cultural norms(customs) and preach value for kids.

• Today, modern India has abandoned the traditional joint family system, partly out of necessity.

• The growing number of nuclear families has led to the problems of old, retired parents.

• According to Ministry of Social Justice and Empowerment, Govt. of India has come to enforce to what it call “The moral obligation”.

The Changing Role of Women

• Three decades ago, the primary role of women sub-continent were to look after the house, very few women would step out of their homes and works.

• Very few would study beyond high school and complete their graduation.

• Today, more and more women , even in rural India are completing graduation, and even postgraduation.

• Today, you’ll often see women working shoulder to shoulder with men in ever sphere of activity(in education, company, hospital, space research org.)

• The entry of women in coporate world has changed the economy of in many ways.

A Better-Educated, More White-Collar, More Professional Population

• Provision of education has been one the topmost priorities and social objectives for the Government of India. The government spent about Rs.1,174 billion or 4.1 % of GDP on education in 2005.

• As a result, the Indian population is becoming better educated.

• Rising number of educated people will increase the demand for quality products, books, magazines etc.

• The workforce is also becoming more white collar. Job growth is strongest for professional workers.

Increasing Diversity

• Countries vary in their ethnic and racial makeup.

• With increasingly diverse markets, most large companies, from Procter & Gamble, Hindustan Unilever, TATA Motors, Hero Honda, big Bazzar etc.

• Now, target specially designed products, ads, and promotions to one or more of various ethnic group.

• E.g. Energizer recently launched an award winning campaign in the United States to introduce Spanish-speaking consumers to its Energizer Bunny.

• The pink bunny icon was synonymous with long lasting batteries.

Thanks for attention.

“ Be the most rich on the earth that you can buy the most expensive thing which you desire,

Be the most expensive that no richness on the earth can buy you”