TRENDCASTING – TUNING INTO THE INDIAN CONSUMER IN …...organic and has come from consumers who...
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1INDIA TRENDING 2014 Copyright © 2014 The Nielsen Company
1
F E AT U R E D I N S I G H T S
T R E N D C A S T I N G – T U N I N G I N TO T H E I N D I A N C O N S U M E R I N 2014BY: ADRIAN TERRON, EXECUTIVE DIRECTOR, NIELSEN INDIA
The Indian consumer and her purchasing behaviour is perhaps the
most fundamental building block of the Indian economy. So at a time
when pundits and punters alike are interrogating the true potential of
the Indian economy, it helps to look at some of the trends that have
emerged clearly over the last year and will likely determine the way
business, marketing and advertising moves forward.
Despite the uncertain macro-economic dimension to this understanding,
our view of the Indian consumer remains as clear as ever. Today, driving
growth will depend on deriving growth – looking at the pockets of
growth that point to what the new future will look like and choosing
to leverage those marketing variables that can help organisations get
ahead of their competition.
Let’s take a look at some of the consumption and attitudinal trends
across categories to add evidence to this discussion.
• Overall consumer sentiment has improved in the last quarter of
2013 with India moving to the second spot globally – this uptick
has seen a revival in corporate performance occur simultaneously
• Geographically, rural India recorded the highest growth. Town
Classes with a population of less than one lakh people (Rest of
Urban) have shown clear signs of revival
• Out of eight million FMCG retail outlets in urban India, 2.3 million
drove 80 percent of sales
• For FMCG, Chemists have emerged as a fast growing channel
• The growth of modern trade has been driven by events – events
now contribute 12 percent in key geographies
• The Oats category has already cornered 26 percent of the Rs 720
crore breakfast cereal market in urban India in a span of just two
years
DELIVERING CONSUMER CLARITY
2 INDIA TRENDING 2014
• Breakthrough innovations that focused on building demand and
supporting the product in the store in months six through 18
delivered cumulative sales growth of 41 percent, compared with 11
percent for all other innovations
• The first seven seconds of an ad are the most crucial in capturing
a consumer’s attention and can boost a consumer’s opinion of the
brand by 15 percent to 20 percent
• Smartphone incidence has risen notably amongst the under 18 and
25-30 years age groups
• 3 out of 4 male consumers are visiting apparel stores seeking new
experiences and products
• Financially, life insurance penetration in India is up by three percent
in 2013 to touch 66 percent from 63 percent in 2010. Penetration of
fixed income and equity investments has increased
• Self-medication for common ailments is on the rise with ~55%
urban Indians self-medicating
STILL LOW ON CONFIDENCE?
The fact of the matter is that the overall sentiment over the economy
is still poor and this is reflected in the latest Nielsen Global Consumer
Confidence Index (Q4 2013) where India continues to lag behind
Indonesia in the second spot. However, the mood has marginally
improved compared to the third quarter of 2013, where India was
ranked third – behind Indonesia and Philippines.
122 120 118
108 108 112 115
85 89
96
124
118 121
110 107
110 114
108
96 100
120
112
118
110 111 109 112
107
97 97
124
115 114 111 110 110 109
106 103 101
ID IN PH CN AE BR TH HK DK SA
Q1 2013 Q2 2013 Q3 2013 Q4 2013
CONSUMER CONFIDENCE INDEX
TOP 10%
Base: All respondents n=32596
ID – Indonesia, IN – India, PH – Philippines, CN – China, AE – UAE, BR – Brazil, TH – Thailand, HK – Hong Kong, DK – Denmark, SA – Saudi Arabia
3INDIA TRENDING 2014 Copyright © 2014 The Nielsen Company
THE FMCG STORY
2013 has been a tough year for Indian consumers. On the one hand,
food inflation showed no sign of coming down to manageable levels
and on the other, uncertainties about job prospects and the state of the
economy. Given these factors, we have seen the FMCG growth trends
declining. In fact, the rate of value growth in the overall FMCG market
halved from a double digit high of 18 percent in 2012 to 9 percent at the
end of 2013. In the third quarter of 2013, we witnessed a consumption
decline for the first time over the last three years. However, the segment
bounced back in Q4 2013 with growth in volumes.
With persistently high inflation, urban consumers were impacted more
when compared to other segments; consumption growth has come
down to close to 7.5-8 percent. However, in rural areas, there is still
some story around it wherein the overall FMCG consumption continues
to grow at about 12.5 percent. If you were to take a mix of this, you
would see that there is indeed a marked slowdown which has happened
and it continues as we go into 2014.
With consumption being flat in 2013, growth was mainly price led -
through price hikes, reduction in unit pack sizes, reduced discounts,
premiumization and so on. But there’s always a silver lining. Despite
the uncertain times, certain segments demonstrated growth.
UNIT VALUE CHANGE OVER YA VOLUME CHANGE OVER YA NOMINAL GROWTH OVER YA
10% 8% 12% 11% 10% 9% 10% 10% 8% 6%
8%
1%
6% 6% 10% 8% 2% 1%
-1%
2%
18%
9%
18% 17%
20% 18%
12% 11%
7% 8%
2012 2013
Q1'12 Q2'12
Q3'12 Q4'12
Q1'13 Q2'13
Q3'13 Q4'13
FMCG MARKET DYNAMICS
4 INDIA TRENDING 2014
• Categories: The foods category grew faster than overall FMCG at
12 percent
• Pop-Strata: Rural recorded the highest growth in 2013 at 12 percent
versus year ago as opposed to the low 6 percent witnessed in
metros. Town Classes with a population of less than one lakh
(Rest of Urban) have shown clear signs of revival with a 14 percent
growth in the fourth quarter of 2013 vs. year ago.
• Zones: North has clearly led the growth for Packaged Consumer
Goods at 13 percent, followed by East & West at 11 & 10 percent
respectively. South was far behind in the league at 3 percent.
• Channels: Chemists have emerged as an evolving channel for
FMCG growing at 13 percent over 2012.
EVENT WEEKS: A SHOT IN THE ARM FOR RETAIL
Event weeks centred around major national holidays, are taking the
modern Indian retail market by storm. Thanks to enterprising retailers
and savvy marketing strategies, consumers are being driven towards
modern trade outlets to partake in what’s turning out to be a weeklong
shopping excursion.
Using data and analytics derived from Nielsen Scantrack, we have
been able to get a thorough understanding of shopper behaviour and
shopping preferences at a weekly level and found that major festivals
and events like Diwali and Republic day display remarkable success in
terms of sales.
The study found that at an overall level, events contribute to 12 percent
of sales within these five markets and for these chains as a group. Delhi
NCR and Mumbai contribute 13 percent followed by Pune, Hyderabad
and Bangalore.
4 CELEBRATING EVENTS
5 MARKETS (SCANTRACK) DELHI NCR MUMBAI
HYDERABAD BANGALORE PUNE
DIWALI, REPUBLIC DAY, INDEPENDENCE DAY AND LABOUR DAY WEEKS CONTRIBUTE TO 12% OF TOTAL SALES FOR KEY RETAIL BANNERS AND GEOGRAPHIES*
*Total sales in Delhi NCR, Mumbai, Pune, Hyderabad, Bangalore across seven banners between Oct 2011 & Nov 2012
EVENT WEEKS:Diwali 2011: W/E 23/10/11Republic Day 2012: W/E 29/01/12Labour Day/May Day: W/E 06/05/12Independence Day 2012: W/E 19/08/12
Diwali 2012: W/E 11/11/12
Delhi NCR - 13%Total 5 Markets - 12%
Mumbai - 13%Pune - 12%
Hyderabad - 11%Bangalore - 10%
5INDIA TRENDING 2014 Copyright © 2014 The Nielsen Company
There’re several factors which point towards a significant fillip to this
phenomenon over the course of the next few years:
• Increasing consumerisation through advertising & digital media
• Increased brand awareness and shopper proclivity to experiment
• Rise of ecommerce and reduced shopper stigma to use credit
cards online
• More and more retailers launching their brands or opening new
stores giving shoppers increased access to products and brands
PRIVATE LABELS GAINING TRACTION
It’s a segment that is projected to touch the $500 million mark by
2015. Today, private label commands a healthy share of modern trade
competing closely with branded FMCG products. With a five percent
share compared to peer markets, the room for growth in this space is
immense.
Most industry leaders who we spoke to are excited about this space
stressing that private label in India is only going to become stronger as
the Indian customer is both value-driven as well as receptive to trying
out new products.
So, what are the factors that are driving private label? Besides the
increased number of shoppers prone to experimenting, greater access
to modern retail, value for money options and the ability to interact
directly with retailers will ensure that this space keeps expanding.
Source: Nielsen
CHINA INDONESIA THAILAND
0.8% 1.7% 3.3%5%
6.8%8.6%
13.6%
24.5%
INDIA HONG KONG SINGAPORE NEW ZEALAND
AUSTRALIA
PRIVATE LABEL SHARE IN MODERN TRADE
• EXPERIMENTALNATUREOFTHESHOPPER• INCREASEDACCESSTOMODERNTRADE• VALUEFORMONEY• ABILITYTOINTERACTWITHTHEMANUFACTURER
6 INDIA TRENDING 2014
A ‘HEALTHY’ FUTURE FOR THE OATS MARKET
It may be a new entrant into India’s largely traditional breakfast space,
but the oats category has already cornered 26 percent of the Rs 720
crore breakfast cereal market. What’s significant is that there’s still
tremendous room for expansion as the bulk of this growth has been
organic and has come from consumers who don’t consume breakfast
cereals.
Oats consumption across India is relatively low at 13 percent, but some
areas boast much higher penetration rates, particularly those in the
South. Several markets in South India were early adopters of oats, such
as Chennai and Cochin, which have penetration rates of 37 percent and
34 percent, respectively. The acceptance in these cities highlights the
opportunity for further penetration in the southern region. The other
regions represent a notable opportunity as well, but research indicates
that a large portion of the consumer base in the North, East and West
remains oblivious of oats as a breakfast option. So in that respect, the
lack of knowledge is the biggest barrier.
Category drivers: Our study shows that health benefits followed by
convenience and taste are some of the most important factors that
drive the oats category.
Source: Nielsen(% consuming oats at least once a week at home)
Oats present Not present13 87
CONTROLSCHOLESTEROL,EASYTODIGEST,FILLINGANDENERGIZING
EASYTOPREPARE,CONVENIENTPACKSIZES
TASTEOPTIONS,DIFFERENTFLAVOURS,AFFORDABILITY
CONTROLSSUGAR&WEIGHT,FIBROUS
HEALTH BENEFITS
CONVENIENCE AND TASTE
Source: Nielsen
MOREIMPORTANTDRIVERS
BULK OF THE GROWTH IN THE OATS MARKET HAS BEEN ORGANIC AND HAS COME FROM CONSUMERS WHO DON’T CONSUME BREAKFAST CEREALS.
7INDIA TRENDING 2014 Copyright © 2014 The Nielsen Company
Given Nielsen’s findings, manufacturers and retailers have understood
the opportunity that this space offers. With new flavours and options
likely to be launched by market players and with new players expected
to enter the category, the road ahead for oats promises to be exciting.
HEALTH IN INDIA AND THE OTC OPPORTUNITY
As a result of easy access and low pricing, self-medication for common
ailments is on the rise with more and more Indians purchasing over-the-
counter drugs. The Nielsen Consumer Health Monitor 2013: Incidence
of Common Ailments and Conditions focuses on 36 common ailments
suffered by urban Indians and tries to understand consumer habits
and practices towards diseases that are commonly self-treated, and the
opportunity that the OTC space presents.
INCIDENCE OF COMMON AILMENTS AND CONDITIONS
Overall, every second individual suffers from headache, fever, body ache,
cough or cold at least once every six months. Consumers are relatively
unlikely to self-medicate for fever, even though the recommended
medications for headache/body ache have the ability to reduce fever.
The apprehension to self-medicate to treat fever could be due to a lack
of consumer awareness about antipyretic drugs—those that reduce
fever.
1
2
3
4
5
6
7
40-50% 20% 20% 15% 10% 10-15% 10%
HEADACHE, FEVER, BODY-ACHE, COUGH AND COLD
MUSCULAR ACHE & PAINS
MENSTRUAL CRAMPS
ACIDITY/GAS/INDIGESTION
CONSTIPATION
ORAL PROBLEMS
SKIN CONDITIONS
Overall incidence summary: Ailments suffered at least once in 6 months. Age group 5-60 years, SEC A, B & CBase: 79,042 from 25,000 households.
Source: Nielsen
8 INDIA TRENDING 2014
As lifestyles become even more sedentary, it’s likely that ailments such
as these become more prevalent. While this is an opportunity for the
healthcare sector, the counterculture of self-medication is making a
significant impact. At this stage, drug manufacturers should approach
the OTC space cautiously and with great focus. To encourage consumers
to take the OTC route, pharma players will need to invest in advertising
that focuses on people suffering from these common ailments and are
looking for fast-acting remedies.
INVESTING IN A BETTER LIFE
It’s not just in FMCG but the slowdown has had an impact on the
finance sector as well – particularly in life insurance, where our studies
show that intention to invest has diminished. However, the good news
is that life insurance penetration in India is up by three percent in 2013
to touch 66 percent from 63 percent in 2010.
While life insurance retains the highest penetration among financial
products, the fixed return investments and equity investments
categories showed more impressive growth in 2013.
2010 2013
CURRENT FINANCIAL PRODUCT OWNERSHIP
BASE(2013)-6742|BASE(2010)-6492 Source: Nielsen
LIFEINSURANCE
FIXED RETURNINVESTMENTS
OTHERINVESTMENTS
EQUITYINVESTMENTS
HEALTHINSURANCE
63
4352
34 31
5
1712 15
66
9INDIA TRENDING 2014 Copyright © 2014 The Nielsen Company
There are two key trends that we’ve seen emerge:
• Higher disposable income in the hands of the youth has directly
influenced their policy purchase decisions. The age group of 22 to
30 showed a higher intent for purchase of life insurance products
(18%) than the 31 to 40 age group (16%).
• There is a far higher awareness of financial products amongst
women today, whether for investment purposes, or for securing
their or their children’s future – and this leads to an active role
in the financial decision making process within the family. The
incidence of women investing in insurance surged by six percent
to touch 59 percent in 2013.
With new entrants and private players in the mix, the life insurance
landscape in India is expected to become more dynamic in the days
ahead. In order to target the women and the youth, the offerings by
these players as well as the older ones will become more diversified
and flexible. But since life insurance already has a strong penetration,
the trick to stand out would be to align marketing strategies to involve
these high potential consumer categories and make them feel involved
in the insurance policy decisions of the household.
HOW TO INFLUENCE $20 BILLION SALES IN INDIA
UNDERSTANDING WHAT MAKES INDIA BUY
Today’s shoppers are empowered by choice, and they refine their
decisions based on marketplace disruptions. Knowing which factors
motivate shoppers to action will ensure that you stand out. In a first,
we studied the evolving Indian shopper across sectors. We looked at
the affluent urban Indian shoppers’ buying habits across sectors and
found that on an average one in two shoppers change their mind from
the time they decide to buy something till they actually purchase it. In
the fast-moving consumer goods space alone, 80 percent of shoppers
will buy a different item than originally planned. This in fact translates
into an opportunity to influence $20 billion of sales in a year.
A GOOD DEAL CAN PROMPT CONSUMERS TO BUY MORE, BUY EARLIER AND BUY DIFFERENT THAN OTHERWISE INTENDED. THEY CAN ALSO TIP THE ECONOMIES OF SCALE AND CASH-FLOW MANAGEMENT IN YOUR FAVOUR.
10 INDIA TRENDING 2014
There are essentially three ways companies can stand out to shoppers
by making key strategy changes to better align with an increasingly
empowered Indian consumer.
1. THE VIRTUAL REALITY
If you’re looking to disrupt brand behaviours and shift demand to the
tune of $14 billion in sales, leverage digital more. More than half of
shoppers, on average, across five industries reviewed (fast-moving
consumer goods, movie, travel, automotive and loans), accessed the
Internet as part of their pre-purchase decision-making process. While
the percent of e-tailing as part of total retail sales is still nascent, its
opportunity to influence opinions is high.
2. LET’S MAKE A DEAL
Promotions have the power to persuade and influence $10 billion in
sales. A good deal can prompt consumers to buy more, buy earlier and
buy different than otherwise intended. They can also tip the economies
of scale and cash-flow management in your favour. For fast-moving
consumer goods, promotions influenced 34 percent of shoppers
to make a bigger purchase than planned, and four in 10 consumers
shopped for groceries earlier than they anticipated. But promotions
should be used tactically and strategically. They shouldn’t be disruptive.
Consider creating the right deal by promoting it when others are not.
Go beyond thinking about promotions as simply a means to drive
additional volumes and start using them to align with consumer
experiences during their path to purchase.
UN-PLANNING THE PLANNING
Percent buying different than planned
FMCG MOVIE LOANS AUTO TRAVEL
80%75%
57% 57%
42%
Source: Nielsen
11INDIA TRENDING 2014 Copyright © 2014 The Nielsen Company
UN-PLANNING THE PLANNING3. QUALITY CONNECTIONS GO FROM TRANSACTIONS TO TRUST
Delighting consumers with a good experience can turn a plan into a
purchase. In fact, positive staff interactions in the automotive sector,
for example, prompted three-quarters (73%) of shoppers to change their
initial purchase decision. What’s more, it prompted pleased patrons to
tell others about their experience. This kind of brand advocacy prompts
positive feelings that extend far beyond the initial sale and often
represents the life-blood of strong brands.
‘RRREVVING’ UP YOUR MARKETING MIX
IMPLEMENTING THE REACH, RESONANCE AND REACTION FRAMEWORK
Like the country itself, India’s media and retail markets are dynamic
and rapidly evolving—marked by increasing media fragmentation,
the spread of advanced mobile devices, higher connectivity, and huge
growth in product options at retail outlets. And these changes present
a challenge for marketers to reach and resonate with consumers for the
all-important reaction—a sale.
REACH, RESONANCE AND REACTION
To get the right messages to the right audiences and drive all-important
sales, the “Three R” framework of Reach, Resonance and Reaction is an
effective way to evaluate advertising campaigns.
• Reach measures whether the campaign was relevant, and whether
it reached the intended audience.
• Resonance determines if the campaign message influenced the
audience, and if it improved the consumer’s opinion of the brand.
• Reaction looks at what the consumer did after seeing the ad, and if
the campaign influenced a purchase decision.
REV UP YOUR MIX WITH THE THREE R
REACH RESONANCE REACTIONRight audience Influence opinion Impact behaviour
s
12 INDIA TRENDING 2014
When planning distribution strategies across India, reaching the right
stores is critical. Out of the eight million FMCG retail outlets in urban
India, 2.3 million drove 80 percent of sales. In rural India, 11 percent
of outlets across 600,000 villages drove 60 percent of sales. Similarly,
6000 Middle India towns (towns with a population of 1-10 lakh) are
critical to reach out for maximum impact. In both these markets, if
picked carefully, we can enhance the efficiency gain with our reach.
Across the global media landscape, Nielsen research shows that
the first seven seconds of an ad are the most crucial in capturing a
consumer’s attention and can boost a consumer’s opinion of the brand
by 15 percent to 20 percent. With the power of the remote when in front
of the television, and the ‘skip ad’ facility online, the first few seconds
have to communicate the intended message and enable a connect with
the brand. Ads that are of a shorter duration, are imperative to optimise
media spends.
The Triple R framework essentially boils down to the following 4 x 4
grid. How do you ensure your messages reach the right audience?
Did the message resonate well? Similarly from a sales standpoint, did
we reach the right store effectively, did our in-store activation lead to
desired uplift?
DID MY CAMPAIGN RESONATE?
FOUROPPORTUNITIESTORESONATEWITHYOURAUDIENCE
MINDTHECRUCIAL7
CONNECTBEYONDCONSCIOUS
ONESIZEDOESNOTFITALL
SHORTERCOULDBEBETTER
UPTO25%MOREEFFECTIVE
ONLY15%OFADSBENEFITFROMFREQUENCY
EDITWITHTHESECONDS THAT MATTER
80%OFADSDON’THAVEDESIREDRESONANCE
13INDIA TRENDING 2014 Copyright © 2014 The Nielsen Company
BREAKTHROUGH INNOVATION: WHAT MAKES THE CUT?
India is currently viewed as a hub for innovations, but success does
not come easy. While our FMCG innovation success rate mirrors global
averages, India is still a unique market. Successful innovation is not
formulaic, but there are patterns and behaviours that winners share.
Breakthrough innovations cut through the clutter because they address
an unmet consumer need with a distinctive market-ready offering.
AN EQUATION FOR INNOVATION
BREAKTHROUGH INNOVATION
+ + +IDENTIFY
AN UNMET NEED
CREATE A
DISTINCTIVE CONCEPT
EXECUTE THE RIGHT
ACTIVATION STRATEGY
DEVELOP A MARKET-
READY OFFERING
We carried out one of the largest studies ever on innovation in India.
Over 14,500 launches across more than 80 FMCG categories were
evaluated and only 31 breakthrough innovations emerged victorious.
That’s a success rate of only 0.2 percent. And while these 31 innovations
may have come from 20 different categories, they all stood out because
they not only excelled at being distinct and relevant, but also endured.
So what does it take to win with breakthrough innovation in India?
And what are some of the learnings from the breakthrough innovation
winners? We found that there are five things that set breakthrough
winners apart in India:
DISTINCTIVENESS
RELEVANCE
ENDURANCE
FMCG LAUNCHESIN 2011
SUCCESS RATE FOR INDIA IN THE
FMCG SECTOR
14,50931
0.2%
SUCCESS IS HARD TO COME BY IN INDIA
CHARACTERISTICS OF SUCCESS
BREAKTHROUGHINNOVATION
WINNERS
Source: Nielsen
14 INDIA TRENDING 2014
PRICE HIGHER THAN THE CATEGORY AVERAGE
Premiumisation attracts upgraded shopping baskets
Breakthrough innovations were priced 1.7 times higher than the average
category price. Innovations focused on premium offerings are meeting
the needs of many consumers who are eager to upgrade their shopping
baskets.
LEVERAGE THE POWER OF MODERN TRADE
Use channel as a laboratory for innovation
Breakthrough innovations launched in 2011 sold in modern trade
outlets saw value growth that was seven times more than all other
innovations. While modern trade represents only six percent of the
retail landscape, it tends to attract a more affluent demographic and a
more experimental shopper profile.
MAXIMIZE THE METRO OPPORTUNITY
Big cities yielded faster and bigger returns for the winners
Breakthrough innovations distributed through big cities grew
sales seven times faster and sold three times as much as all other
innovations. Money spent in metropolitan areas account for three out
of every 10 rupees spent on fast-moving consumer goods in India, and
breakthrough innovations maximized reach and velocity in these top
cities.
FOCUS ON THE NORTH TOO
West & South have been traditional focus
While companies tend to prefer launching their innovations in the west
and the south regions of India, they also banked heavily on success in
the north region, and breakthrough innovations there delivered value
growth that was four times higher than all other innovations in this
region.
INVEST WELL INTO THE SECOND YEAR
Built demand by being in the right stores & supporting the product in months 6-18
Breakthrough innovations that focused on building demand and
supporting the product in the store in months six through 18 delivered
cumulative sales growth of 41 percent, compared with 11 percent for all
other innovations. Breakthrough innovations were actively supported
well into the second year.
15INDIA TRENDING 2014 Copyright © 2014 The Nielsen Company
HOW MEN SHOP FOR CLOTHES AND WHAT ENGAGES THEM
DRIVERS AND INSIGHTS ON THE MALE APPAREL INDUSTRY
Nielsen’s studies in the apparel space have shown that Indian men
enjoy variety and don’t typically tie themselves to a single brand. Once
the male apparel shopper is comfortable with a brand’s promise and
believes in its quality, he adds it to his list of “must check out brands”
every time he goes shopping. The male shopper considers five to seven
brands when he goes shopping, ultimately settling on two or three
brands that he’s most comfortable with.
Armed with a list of brands to investigate, the male consumer is
somewhat on auto-pilot as he shops, but is highly open to influences,
both within and outside the store, when choosing between brands.
Studies on the male clothes shopper indicate that a brand can influence
in-store impulse purchases by more than 40 percent. This level of
impulse stems from the fact that apparel shopping is now an activity
of choice for men, as the urban male has stepped away from a previous
“don’t like to shop” mindset and now actively seeks opportunities to
interact with and shop for apparel. And during those trips, they often
don’t have a pre-decided shopping occasion/mission.
But even if men do set out for something specific, we find that only one
in four have decided to seek out a specific brand before they set out to
go shopping. The remaining 75 percent of consumers are much more
open to see what’s out there before they commit to a brand.
PLANNED VS. IMPULSE PURCHASE
ONLY1 IN4
PLANNED IMPULSE
Source: Nielsen
SHOPPERSDECIDEDONTHEBRANDBEFORE
PURCHASING
AMONGSTTHOSEWHOHADPLANNEDTO
PURCHASE
5941
16 INDIA TRENDING 2014
Here’s what we think marketers in the category should do:
JOB NO. 1: ATTRACT AND RETAIN
The most important task for today’s marketer is to stay present in the
consumer’s life.
Awareness or visibility of a brand is the most important driver of brand
equity in the branded men’s apparel the category, and can drive equity
by 60 to 75 percent.
JOB NO. 2: MAXIMIZE THE INFLUENCES AT THE STORE
While advertising works to get a brand onto a consumer’s consideration
list, it’s the actual presence and influence at the store that steers the
consumer toward the purchase decision.
Given the consumer’s increasing fickleness, there’s tremendous
potential for brands to enter this space and grow the category and the
characteristics of the male apparel shopper. This will ensure visibility,
relevance and a clear positioning that is reinforced along the decision-
making journey.
THE NUMBER GAMES: FROM BIG DATA TO SMART DATA
Big Data starts with data you already have. We have data sitting in
various parts of the company. We know what customers spend, their
payment history, who a good customer or a bad customer is, what
services they’ve availed of bought and so on. Add to this information
from Customer Relationship Management (CRM) systems which tell us
why the customer called up and what their experience was.
What we find is that in many companies this data sits in separate
islands. For many companies, the first opportunity is to simply try and
put together a single view of the customer across the company.
The next and more interesting opportunity is the explosion of data
from the Internet. Over 200 million people on the Internet in India are
accessing your shop windows, your Facebook page, your website, your
app and leaving behind little trails of their interest. The opportunity
here is to capitalise on these bits of information that the customer
leaves behind and create something meaningful out of it.
HOW CAN EXTERNAL DATA ENHANCE MY EXISTING DATA TO PROVIDE BETTER SOLUTIONS?
ADDING VALUE TO YOUR EXISTING DATA
17INDIA TRENDING 2014 Copyright © 2014 The Nielsen Company
Another exciting area in big data is the possibility of being able to
propose choices to the customer that is relevant to them in real time.
Most of us have service and product portfolios that extend across
maybe 15 to 100 SKUs or 10 different kinds of services. But how do you
identify what is relevant to a particular customer and what choices can
be offered to him when he encounters a brand, be it online, or in the
real world?
The fundamental questions therefore are - is there a business problem
that I can solve and is there a particular data set that I can go after? The
idea is that if you bring together data derived from encounters with your
own customers and add external sources of data to it, you have a clear
business opportunity, and often, you get a multiplier effect of value to
your business.
UNSTOPPABLE: SMARTPHONE SURGE CONTINUES
While the FMCG sector toils to get back on to the growth track, it’s a
different story altogether in the smartphone space. The latest Nielsen
Informate Mobile Insights study shows that smartphone ownership has
jumped from 27 million in 2012 to 51 million in 2013. At 89 percent year-
on-year, this presents an opportunity like no other.
AN 89% GROWTHOVER LAST YEAR
51 Million17%smartphone users
in UrbanIndia
SHARE OF SMARTPHONEUSERS AMONG MOBILE PHONE
USERS INURBAN INDIA
18 INDIA TRENDING 2014
In the metro areas, more than one in five (23%) people now carry a
smartphone. Studies have also found a phenomenal rise in smartphone
usage among the under 18 and 25-30 years age groups.
WHAT IT MEANS FOR THE MARKETER
Nielsen Informate Mobile Insights expects this figure to go up to over
100 million in 2015.
Such a consumer base is an undeniable goldmine for marketers to tap
into. From apps to advertisements, smartphones present a plethora of
options and insights to marketers, manufacturers and the advertisers.
MALES FEMALES
%, APRIL 2013
OVERALL <18YRS
18-24YRS
25-30YRS
31-35YRS
36-40YRS
40+YRS
23
2020
11
18
11 10
6
26
15
26
13 1113Source: Nielsen Informate Mobile Insights
SMARTPHONE INCIDENCE ACROSS GENDER WITHIN AGE GROUPS
100+MILLION
51MILLION
2013 2015
19INDIA TRENDING 2014 Copyright © 2014 The Nielsen Company
ABOUT NIELSEN Nielsen Holdings N.V. (NYSE: NLSN) is a global information and
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ADRIAN TERRON
EXECUTIVE DIRECTOR
NIELSEN INDIA
ABOUT THE AUTHOR
This article contains excerpts from various thought leadership and
insights published by Nielsen’s experts. To view or download the full
reports, please visit www.nielsen.com/in/en/insights
SMARTPHONE INCIDENCE ACROSS GENDER WITHIN AGE GROUPS
20 INDIA TRENDING 2014