THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT                                    PUNE                        A PROJECT R...
Sales Management - Metro’s in the Making 	   2	  	                                              Metros in the Making!!	  	...
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Sales Management - Metro’s in the Making 	   9	  	  Almost everyone associated with retailing, marketing, media and consum...
Sales Management - Metro’s in the Making 	   10	  	  These grids are used to determine the consumption preferences, and pu...
Sales Management - Metro’s in the Making 	   11	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  ...
Sales Management - Metro’s in the Making 	   12	  	                                                                      ...
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Sales Management - Metro’s in the Making 	   14	  	                                                   Shopping           ...
Sales Management - Metro’s in the Making 	   15	  	                                                                      ...
Sales Management - Metro’s in the Making 	   16	       	                                                                  ...
Sales Management - Metro’s in the Making 	   17	       	  Q5. Media Behavior in the 10-40 L town class bracket v/s Metros?...
Sales Management - Metro’s in the Making 	   18	     	                                                                    ...
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Sales Management - Metro’s in the Making 	   23	      	  Q2. What is the SEC split among 10-40 L towns v/s top 6 metros v/...
Sales Management - Metro’s in the Making 	   24	       	  Q3. Have new-age jobs caught on the Mini-Metros?TGI 2010, Compar...
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Metro's in the making

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This report provides an extensive analysis and evaluation of the different attributes of the consumer category in the mini-metros in India andhow we understand their range and thereby knowing the sales pitch for those types of consumers. As we understand the general concept, Sales Management is one of the most important elements for the success of modern organizations. It may be one of the most critical roles that influence the success of an organization. Here, you are closest to two important corporate assets: customers and the sales team. The report also draws attention to the different sales strategies that can be applied in the different industries depending upon the cities, which we have selected.

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Transcript of "Metro's in the making"

  1. 1. THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT PUNE A PROJECT REPORT ON “SALES MANAGEMENT: “Metros in the Making!” A Report submitted in partial fulfillment of the requirement for the award of the degree of Master of Business Administration. Under the Esteemed Guidance of Dr. Pranab Deb Faculty IIPM, PUNE Project Analyzed & Documented By: - • Dixita Porwal, PGP/FW/10-12/ISBE-A • Pratik Gandhi, UGP/FW/09-12/IIPM • Rajwin Patel, UGP/FW/09-12/ISBE • Sagar A. Agrawal, UGP/FW/09-12/IIPM • Sneha Chandan, PGP/FW/10-12/ISBE-A    
  2. 2. Sales Management - Metro’s in the Making   2     Metros in the Making!!                                                                                                                                                                  Page   2    
  3. 3. Sales Management - Metro’s in the Making   3     AcknowledgementWe heartily thank our Project in-charge, Dr. Pranab Deb, Faculty IIPM, Pune .Whose encouragement, guidance and support from the initial to the final levelenabled me to develop an understanding of the subject. We are grateful for Sir’scontribution towards the execution of our project.Lastly, we offer our regards and blessings to all of those who supported us in anyrespect during the completion of the Research.                                                                                                                                                                                      Page   3    
  4. 4. Sales Management - Metro’s in the Making   4     AbstractThe inclusive development is taking place through superior connectivity and betterinfrastructure in these cities. Therefore demand there might not be the same inquality as is in primary and secondary cities but it is growing by the day, andhaving a presence there is becoming critical for the marketers, manufacturers andretailers to cater for changing lifestyles in these cities as well. It would benoteworthy for retailers as well as manufacturers and marketers of consumerproduct companies that are always on the lookout for newer markets or potentialhubs for consumerism, to understand the implications these investments will haveon the economic growth of these hot-spots and even their nearby towns andvillages. These hot-spots are going to bring to the forefront the next wave of newcities that real-estate developers, healthcare and education providers, consumerproduct companies as well as retailers would be interested in looking at in order togain ‘first mover’ advantage and a foothold in the market.                                                                                                                                                                          Page   4    
  5. 5. Sales Management - Metro’s in the Making   5     Executive Summary  This report provides an extensive analysis and evaluation of the different attributesof the consumer category in the mini-metros in India andhow we understand theirrange and thereby knowing the sales pitch for those types of consumers.  As we understand the general concept, Sales Management is one of the mostimportant elements for the success of modern organizations. It may be one of themost critical roles that influence the success of an organization. Here, you areclosest to two important corporate assets: customers and the sales team. The reportalso draws attention to the different sales strategies that can be applied in thedifferent industries depending upon the cities, which we have selected.                                                                                                                                                                  Page   5    
  6. 6. Sales Management - Metro’s in the Making   6     IndexS.r. no. Topic Page no.1 Introduction to the Project 072 Methodology 083 Analysis 094 Top 6 Cities 355 Sales Strategies 436 Cases 447 Conclusion 538 Recommendation 559 Bibliography 56                                                                                                                                                                  Page   6    
  7. 7. Sales Management - Metro’s in the Making   7     Introduction to the ProjectAs metro cities turn lumbering giants, unable to be ready with infrastructure asexpectations rise or lay out comforts for a better life, fleet-footed Tier-2 and -3cities can steal a march on them in attracting industries and businesses.Less-crowded cities give more operational convenience to companies. Peopletaking up jobs in these places find an amiable living environment, with no madrush to corner comforts. For industry and people, the future lies in those places.Several recent studies have signaled the coming shift.The project demystifies the paradigm shift in the sales mix of the emerging mini-metros and thereby the designs sales strategies accordingly.Sales Management is all about Planning, Directing and control of Personal Selling,including recruiting, selecting, equipping, assigning, routing, supervising, payingand motivating. The project takes this term to a next level revealing possibleoutcomes for designing a sales strategy for the Mini Metros.                                                                                                                                                                  Page   7    
  8. 8. Sales Management - Metro’s in the Making   8     MethodologyBackground:  Duration of Research – 1 Month  Target Audience – SEC-ABC, AGE-GROUP 15- 24, 25-34, 35+To get the proper inferences of the research, it was necessary for having a questionbank through which we could asses the market situation of Mini-metros. Everyquestion was researched and analyzed through the soft wares (IRS, TGI, TAM)available to use.The major comparisons were made over the mini-metros benchmarking with themetros, over years.The first step was to find out the cities falling under 10-40 Lakh market grids andeventually finding out the cluster of the cities, which were more upcoming, andfast growing within those market grids.And it was done by the different parameters listed below:  Profiling the 10-40 Lakh market / Mini-Metro Consumer  The Socio-Economic Classification  TAM (Television Audience Measurement)  TGI (Target Group Index)  IRS (Indian Readership survey)  Profiling the 10-40 Lakh market / Mini-Metro Consumer                                                                                                                                                                  Page   8    
  9. 9. Sales Management - Metro’s in the Making   9    Almost everyone associated with retailing, marketing, media and consumereconomics is required to deal with SEC categories. These categories are importantas they help in effectively segmenting markets and targeting communication tocore consumers.  The SEC Classification (also called the Socio-Economic Classification) is aclassification of households used by surveyors, marketresearchers, media and marketing companies in India to categorize consumerbehavior. Originally developed by IMRB International as a way ofunderstanding market segments, and consumer behaviour it was standardized andadopted by the Market Research Society of India in the mid-1980s as a measure ofsocio-economic class and is now commonly used as a segmentation tool in India.The SEC Classification consists of two grids:-  The Urban SEC Grid, which uses Education levels and Occupational criteria of the Chief Wage Earner (CWE) of a household as measures to determine socio- economic classification, and segments urban India into 7 groups (A1 to E2) and  The Rural SEC Grid, which uses Education and Type of House (pucca, semi- pucca, and katcha) as measures of socio-economic class, and segments rural India into 4 groups (R1,R2,R3,R4)                                                                                                                                                                  Page   9    
  10. 10. Sales Management - Metro’s in the Making   10    These grids are used to determine the consumption preferences, and purchasingpower of households, and are common tools used by social and businessresearchers working in India. The SEC grid does not use family income levels as ameasure as this data is hard to collect and it has been demonstrated that educationlevels and occupation criteria in India are better determinants of consumerpreference. The methodology used in these tools differs from the HouseholdPotential Index, which measures consumption intensity.                                                                                                                                                                  Page   10    
  11. 11. Sales Management - Metro’s in the Making   11                                                                                                                                                                      Page   11    
  12. 12. Sales Management - Metro’s in the Making   12      TAM (Television Audience Measurement)Television, in nearly every country around the world, has become the dominantmedium for information, commercial communication and entertainment. This hasled to the ever-increasing desire by broadcasters, advertisers and advertisingagencies to have accurate, consistent and detailed information about TV audiences.TAM (Television Audience Measurement) is the specialised branch of mediaresearch, dedicated to quantifying (size) and qualifying (characteristics) thisdetailed television audience information.Ratings, the “Common Currency”With the billions of dollars spent annually on TV programs and commercials,reliable TV audience information is required to evaluate and maximise theeffectiveness of this investment. TAM-Media Xpress Software – Input Screen                                                                                                                                                                  Page   12    
  13. 13. Sales Management - Metro’s in the Making   13      TGI (Target Group Index) TGI Net will inform your marketing strategy by enabling a truly in-depth understanding of your target audience’s internet behaviour. TGI (Target Group Index) is the original and pre-eminent single-source marketing and media survey. TGI Net is a fusion of two industry-leading datasets, Internet Monitor and TGI. Internet Monitor gives a detailed and reliable picture of the GB Internet market. TGI provides an unrivalled breadth of data on a sample of c. 25,000 adults in Britain every year, covering product and brand usage, lifestyle and media consumption. TGI includes 4,000 brands in 500 categories across the following sectors:  Appliances and durables  Clothing  Confectionery  Drink  Financial Services  Food  Holidays and Travel  Household Products  Leisure  Motoring  Pharmaceutical and chemists products                                                                                                                                                                  Page   13    
  14. 14. Sales Management - Metro’s in the Making   14      Shopping  Tobacco  Toiletries and cosmetics TGI SOFTWARE – INPUT SCREEN                                                                                                                                                                  Page   14    
  15. 15. Sales Management - Metro’s in the Making   15      IndianReadership Survey (IRS)IRS (Indian Readership Survey) is the largest continuous study of the world with asample size of more than 250,000 households across India. It has been providinginvaluable information to the media and marketing fraternity since 1997.IRS is the single source survey for media and product ownership/usage. The primeobjective of the study is to collect readership information from a cross-section ofindividuals, in great detail, so as to present a true and unbiased picture of theirreadership habits. On the media front, it also captures information on televisionand cinema viewing habits, radio listening habits and Internet usage. In addition tothis, IRS captures information on various FMCG (Fast Moving Consumer Goods)products, usage and consumption and durable ownership amongst households.Since media and product ownership/ consumption information is captured from thesame household, it enables linkages between the media and product data. IRSequips you with information that is truly reflective of the Indian population formaking informed decisions.IRS covers information on over 100 product categories. IRS information isavailable in user-friendly software and is the essential tool for category, brand andmedia understanding.IRS Software –INPUT Screen                                                                                                                                                                  Page   15    
  16. 16. Sales Management - Metro’s in the Making   16     Research ParametersQ1. What is the SEC split among 10-40 L towns v/s top 6 metros v/s Rest of Urban India? How has this changed over the years? A- Which SECare growing &are stagnant. (Do this at minute level taking SEC A1+, A1/A2, B1/B2 etc. as separate) B- Quantify the middle class in the 10-40 Lakh towns of India?Q2. Have new-age jobs caught on the Mini-Metros?TGI 2010, Compare with Top 6 Metros (Combined) -­‐ Use both TGI and IRS to answer this question -­‐ Break up population into SEC A, SEC BC, SEC DE; only A, and BC in TGI -­‐ Beak up population into 15-24, 25-34, 35+ -­‐ Break up on basis of sex as well -­‐ See the % of people working in new-age occupations -­‐ Which are the occupations that are catching on now?Q3. Profile the markets in the 10-40 L town class segment (Town wise) A- SEC profile town-wise of the 10-40 L bracket, compared to top 6 metros (IRS) -­‐ Is there a distinct pattern that emerges between North, South, East & West B- Ownership of durables and FMCG in 10-40 L bracket by market (Only SEC AB) -­‐ Penetration of up-scale, and mid-range HH durables, FMCG categories -­‐ Benchmark with Top 6 MetrosQ4. Youth in the 10-40 L town class bracket v/s Metros?{Using TGI, TG - SEC AB 15-24} A- Psychographics - Key Differences versus 6 metros -­‐ How has this changed from 5 years back B- Starting earning age - Differences versus 6 metros C- Leisure Touch-points: Key Differences versus 6 metros (Malls, Multiplexes, Coffee Shops, Discos, Multinational Fast Food Restaurants, Gyms, Hobby Classes / Vocational Classes, Theme Parks) D- Day in the Life                                                                                                                                                                  Page   16    
  17. 17. Sales Management - Metro’s in the Making   17    Q5. Media Behavior in the 10-40 L town class bracket v/s Metros?{Using TGI , TG - SEC AB 15-24 } A- Media Penetration 6 Metros v/s 10-40 L Towns -­‐ Where have mediums like mobile and Internetin specific growing the fastest? -­‐ Has TV time spent come down in any of the cities?{Using TAM, TG - SEC AB 15-24} B- Have reality shows grown in a major way on television among the youth? -­‐ Do they generate higher ratings versus soaps & serials?                                                                                                                                                                  Page   17    
  18. 18. Sales Management - Metro’s in the Making   18     Analysis The entire project is based on the comparative study of Mini-metro consumer market with List of 10-40 L towns Metro market. 1 Surat 2 Kanpur 3 Jaipur Following  is  the  list  of   4 Lucknow town/cities  falling  under  10-­‐40   5 Nagpur Lakh  town  market  &  are   6 Patnaconsidered  in  the  entire  project.   7 Indore 8 Vadodara   9 Coimbatore 10 Bhopal 11 Ludhiana 12 Visakhapatnam 13 Nashik 14 Agra 15 Faridabad Top  6  Metro   16 Kochi considered  in  the   17 Rajkot entire  project.     18 Meerut 19 Jamshedpur List of Metro 20 Madurai 1 Mumbai 21 Amritsar 2 Delhi 22 Bhuvaneshwar 3 Chennai 23 Varanasi 4 Bangalore 24 Allahabad 5 Kolkata 25 Dhanbad 6 Hyderabad 26 Chandigarh 27 Aurangabad 28 Vijayawada                                                                                                                                                                  Page   18    
  19. 19. Sales Management - Metro’s in the Making   19     From the list of the 28 cities we would be studying on the 6 cities mentioned below List of 10-40 L towns 1 Surat 2 Kanpur 3 Jaipur 4 Lucknow 5 Nagpur 6 Patna 7 Indore 8 Vadodara List of Cities studied further 9 Coimbatore 10 Bhopal 1 Bhuvaneshwar 11 Ludhiana 2 Coimbatore 12 Visakhapatnam 3 Lucknow 13 Nashik 4 Nagpur 14 Agra 5 Indore Surat 15 Faridabad 6 16 Kochi 17 Rajkot 18 Meerut 19 Jamshedpur 20 Madurai 21 Amritsar 22 Bhuvaneshwar 23 Varanasi 24 Allahabad 25 Dhanbad 26 Chandigarh 27 Aurangabad 28 Vijayawada                                                                                                                                                                  Page   19    
  20. 20. Sales Management - Metro’s in the Making   20     Findings & Analysis based on Research Parameter (Listed above)Q1. What is the SEC split among 10-40 L towns v/s top 6 metros v/s Rest of Urban India? How has this changed over the years? A- Which SECs are growing &are stagnant. ( Do this at minute level taking SEC A1+, A1/A2, B1/B2 etc. as separate) Section A: 10-40 Lakh towns SEC 2010 2008 2005 A1 4.9 4.1 4.2 A2 9.1 8.1 7.7 B1 8.6 7.9 8.5 B2 8.1 7.8 8.1 C 20.8 20.8 22.1 D 22.6 23.2 23.3 E1 10.7 11.2 10.6 E2 15.1 16.8 15.5 25.0   20.0   15.0   2010   2008   10.0   2005   5.0   0.0   A1   A2   B1   B2   C   D   E1   E2   Findings& Analysis 10-40 Lakh towns Growing SEC: A1,A2,B1 Stagnant SEC: B2,C                                                                                                                                                                  Page   20    
  21. 21. Sales Management - Metro’s in the Making   21     Rest of Urban 2010 2008 2005 A1 2.1 2.3 2.2 A2 5.6 6.2 5.9 B1 7.5 7.9 8.0 B2 8.6 8.8 8.6 C 19.7 19.6 19.8 D 23.5 23.5 23.6 E1 12.6 12.5 12.2 E2 20.3 19.2 19.8 25.0   20.0   15.0   2010   2008   10.0   2005   5.0   0.0   A1   A2   B1   B2   C   D   E1   E2   Findings & Analysis Rest of Urban Growing SEC: C, E2 Stagnant SEC: B2, D                                                                                                                                                                  Page   21    
  22. 22. Sales Management - Metro’s in the Making   22     TOP 6 metros 2010 2008 2005 A1 6.4 6.6 6.9 A2 9.4 9.1 9.0 B1 10.7 10.0 10.4 B2 8.7 8.5 8.5 C 23.1 21.7 21.7 D 21.1 21.8 21.8 E1 8.4 9.2 9.3 E2 12.3 13.0 12.5 25.0   20.0   15.0   2010   2008   10.0   2005   5.0   0.0   A1   A2   B1   B2   C   D   E1   E2   Findings & Analysis TOP 6 metros Growing SEC: A2, B1, C Stagnant SEC: A1.B2, E2                                                                                                                                                                  Page   22    
  23. 23. Sales Management - Metro’s in the Making   23    Q2. What is the SEC split among 10-40 L towns v/s top 6 metros v/s Rest of Urban India? How has this changed over the years? A- Quantify the middle class in the 10-40 Lakh towns of India? Clustered the income range into A, B & C 2010 32.62 A 500-4000 34.91 B 4000-8000 32.47 C 8000-100000+ 2008 37.1 A 500-3000 36.7 B 3000-5000 26.3 C 5000-100000+ 2005 25.4 A 500-2000 45.0 B 2000-5000 29.7 C 5000-100000+ Middle class falling under - Cluster B SEC 2010-B 2005-B INDEX A1 0.6 0.6 100 A2 7.1 2.5 284 B1 8.9 5.7 156.1 B2 11 10.3 106.8 C 23.5 29 81.0 D 25.9 30.1 86.0 E1 11.1 9.8 113.3 E2 11.9 12.1 98.3 Findings & Analysis  The growing SEC is A2, B1 & B2  Middle class i.e. 70% of (B) population falls under SEC B2, C& D                                                                                                                                                                  Page   23    
  24. 24. Sales Management - Metro’s in the Making   24    Q3. Have new-age jobs caught on the Mini-Metros?TGI 2010, Compare with Top 6 Metros (Combined)- Which are the occupations that are catching on now? Jobs/occupation was categorized into three categories:  T – Traditional jobs Jobs like: Government, legal, financial, manufacturing, Science, Technology, Engineering, Production, Transport, and Mining etc.  S – Semi traditional jobs Jobs like: Construction, Education, Health, Welfare, Marketing/Advertising/Public Relations, Scientist/Physicist/Mathematician, teachers/professors etc.  N – New Age jobs Jobs like: Author/Writer/Journalist, Artist/Designer, Sportsman, Architecture/Planning/Surveying, IT/Computing/Data Processing, Hotels, Catering, Retail, & Distribution etc. SEC F 25-34 F 35+ T 52.6 T 86.1 S 93.2 S 118.7 A N 69.3 N 27.2 T 7.4 T 135.4 S 35 S 128.9 BC N 73.6 N 88.1 Findings & Analysis- Table 1 In the Mini-metro market, Females 35+ SEC-A - has caught on to Semi traditional jobs as compared to metros & Females 35+ SEC-BC has caught on to both Semi traditional jobs & New Age jobs compared to metros.                                                                                                                                                                  Page   24    

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