1. India Market Landscape
2013/03/12 1TI : Independent Trade Forum : Indian Case Study

2. 2013/03/12 2TI : Independent Trade Forum : Indian Case Study
29 states,
22 scheduled languages,
Regional differences:
GDP, Literacy,
Climate
81% Hindu, 13% Muslim
1.21 Bio Population
GDP $ 1.8 Trillion, PC GDP $ 1522
Demographics of India
GDP growth: ~7.5%
Pop, GDP, PC GDP, GDP growth : 2011
Inflation : Aug 2012

3. 2013/03/12 3TI : Independent Trade Forum : Indian Case Study
Demographics of India
Pop, GDP, PC GDP, GDP growth : 2011
Inflation : Aug 2012
Urban Rural
31% of Pop
7935 towns
53 cities 1 mio+
69% of Pop
640,867
villages

4. 2013/03/12 4TI : Independent Trade Forum : Indian Case Study
Income pyramid will move from a triangle to a diamond
Equally distributed across income tiers
1,267 mio
Global
India
Seeking &
Striving
India
Aspiring
India
Deprived India
CONSUMERBASE
>5,500 USD
>1100 USD
>500 USD
+20 mio
+61 mio
+89mio
Largely not
adressable
Additional
consumers
+170 mio
POPULATION DISTRIBUTION
45 m
(<4%)
240 m
(19%)
538 m (42%)
444 m (35%)
2011
1,210 mio
25 m
(2%)
179 m
(15%)
449 m (37%)
557 m (46%)
Basis 2001-02 $Prices
2015
The Multi-tier Income Pyramid offers scope across
Premium, Mainstream, PPP
McKinsey & Co

5. 2013/03/12 TI : Independent Trade Forum : Indian Case Study 5
2011
1,210 mio
Global India
Seeking &
Striving India
Aspiring India
Deprived India
CONSUMERBASE
25 m
(2%)
179 m
(15%)
449 m
(37%)
557 m
(46%)
More Benefits
More Usage
More Users
The product should be worth its price, it is not just the price
Consumer quote, Seeking & Striving India showing the shifting mindset
Grasping Opportunities: Multi-tier Strategy
McKinsey & Co

6. 2013/03/12 6TI : Independent Trade Forum : Indian Case Study
India no. 1 in Consumer Confidence in the World
Nielsen Q3 2012
119
India
(0 change from Q2)

7. Poverty amidst prosperity
2013/03/12 TI : Independent Trade Forum : Indian Case Study 7
The key objectives of the
programme are:
•Protecting children from
classroom hunger.
•Increasing school enrolment
and attendance
•Improved socialisation
among children belonging to
all castes
•Address malnutrition
•Social empowerment
Asia society
The 'Mid Day Meal' scheme at a Government Primary School in
Hyderabad on June 23, 2010.

8. 2013/03/12 8TI : Independent Trade Forum : Indian Case Study
Corruption
Greenpeace activists dressed as
coal miners lie on the ground
during a protest near Parliament
in New Delhi on August 21, 2012
against alleged corruption in the
allotment of coal mining blocks. A
recent survey revealed that most
Indians think corruption is the
biggest problem facing the
country
globalpost

9. 2013/03/12 TI : Independent Trade Forum : Indian Case Study 9
InfrastructureHealth care
SanitationHousing
Unemployment
Other Key Issues...

10. Lets look at the
opportunities
2013/03/12 TI : Independent Trade Forum : Indian Case Study 10
Market- Consumer- Trade

11. 2013/03/12 TI : Independent Trade Forum : Indian Case Study 11
17% in 1950 to 29%
now
2/3rd of FMCGs sold in
urban India
Greater use of credit
Share of food in
expenditure basket
large but declining ;
70% urban people eat fast food
OOH at least once a month
2 mio outlets overall
20 Mio train passengers/day
Food Courts: From 200 to 1200
2015
Urban working women
up (14% in 1991 to
22% now)
350+universities,
18000+ colleges
Growing Urbanization Changing Lifestyles
OOH / Eating Out on the Rise Rising Education & Working Women
The Changing Consumer landscape

12. 2013/03/12 TI : Independent Trade Forum : Indian Case Study 12
•65 mio active Internet users , reach 100 mio
•550+ TV stations
•350+ Radio stations
•900 mio + mobiles
•38 mio Facebook users (Dec 2011)
•12500 FMCG brands (~5000 in 2003)
The Changing Consumer landscape
Greater Exposure & Choice

13. 2013/03/12 TI : Independent Trade Forum : Indian Case Study 13
The Food Opportunity
Source: FICCI & KPMG, Euromonitor
Processed food only 8%
(36 bio usd)
of total food market
Major part - Basic/ Commodity categories
Total Food Market : 380 Bio USD
Total Marketable Food Market : 230 Bio USD
8%
92%

14. 14
Diversity in Food habits – Multiple Cuisines
• Diverse food habits
• Wheat: North + West
• Rice: South + East
Kashmiri
Cuisine
Punjabi
Cuisine
Rajasthani
Cuisine
Gujrati
Cuisine
Maharashtrian
Cuisine Goan
Cuisine
Karnataka
Cuisine
Kerala
Cuisine
Tamilnadu
Cuisine
Andhra
Cuisine
Orissa
Cuisine
Bengali
Cuisine
North East
Cuisine
UP
Cuisine
2013/03/12 TI : Independent Trade Forum : Indian Case Study

15. Trade Landscape
2013/03/12 TI : Independent Trade Forum : Indian Case Study 15

16. 2013/03/12 TI : Independent Trade Forum : Indian Case Study 16
83.6%
69.8%
63.4%
62.3%
59.1%
57.4%
52.3%
50.2%
48.4%
45.9%
44.8%
43.6%
41.1%
40.1%
39.2%
37.3%
34.4%
34.1%
26.6%
18.8%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
HINDUSTAN UNILEVER LIMITED
PROCTER & GAMBLE
PARLE PRODS
DABUR
COLGATE-PALMOLIVE
EMAMI
GODREJ CONSUMER PRODS
I T C
RECKITT BENCKISER
MARICO INDS
CAVINKARE
NESTLE INDIA
BRITANNIA INDS
PERFETTI VAN MELLE
JYOTHY LABORATORIES
NIRMA LIMITED
ROHIT SURFACTANTS PVT.LTD
EVEREADY INDS
CADBURY INDIA
TATA GLOBAL BEVERAGES LTD
NON FOOD: 99.0%
FOOD: 33.8%
Source: Nielsen RMS, Figures in Yellow
Bar indicate change over SPLY
NON FOOD: 61.4%
FOOD: 75.6%
Distribution Challenges !
9 mio retail stores

17. 2013/03/12 TI : Independent Trade Forum : Indian Case Study 17
Route to Market Models- Generic
•FMCG distribution cost :
6 to 10%
•Distributors distribution
cost :3 to 5%
•High Turn frequency
•Cash / Credit
•Low fixed cost
•6/7 days operation
Being Effective at the same time being efficient is the name of the
game

18. Winning solutions
BOP
India
2013/03/12 18TI : Independent Trade Forum : Indian Case Study

19. Success stories in BOP
• Project SHAKTI- Unilever
• e-Choupal
• Aravind Eye Hospital
2013/03/12 TI : Independent Trade Forum : Indian Case Study 19

20. 2013/03/12 TI : Independent Trade Forum : Indian Case Study 20
Project SHAKTI: Rural Distribution

21. 2013/03/12 TI : Independent Trade Forum : Indian Case Study 21
Project SHAKTI: Rural Distribution
KEY FEATURES
•Inclusive business strategy
•Breaking Barriers –
Infrastructure, Cheap brands
•Large scale operations
100,000 Villages
45,000 women
3 million household
reach
Strategic impact in terms of
reach and distribution

22. 2013/03/12 TI : Independent Trade Forum : Indian Case Study 22
e- Choupal: Farm to Factory gate
KEY FEATURES BENEFITS
Direct Marketing Channel
Blend of Click & Mortar
Farmer gets real time market
prices,weather
Get advice best farming practice
No intermediaries
Higher farm productivity
Eliminates multiple handling
Reduction in transaction cost
Higher farm gate prices
Lower procurement cost

23. Aravind Eye Hospital
Aravind Eye Hospital
2013/03/12 TI : Independent Trade Forum : Indian Case Study 23

24. What are the learning’s?
•Route to Market models similar to McDonalds
•Self sustaining
•Model that supports expansion and growth
•Reach the target person where he or she is.
•High productivity of all involved- Doctors, HCP’s
•Efficient- Keeps cost low
•Scale: 200,000 yearly surgery
2013/03/12 TI : Independent Trade Forum : Indian Case Study 24

25. What we can learn and adopt from
these examples ?
Challenges
&
Opportunities
2013/03/12 TI : Independent Trade Forum : Indian Case Study 25
Source: The fortune at the bottom of the pyramid . C.K.Prahalad Wharton school publishing
Its about us. We have to address it.

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27. 2013/03/12 TI : Independent Trade Forum : Indian Case Study 27
Thank you