bcg segmentation

1.  Aarya (02)
 Archit (11)
 Gaurav( 20)
 Gowtham (29)
 Raj Karan (38)
 Sambit (47)
 Varsha (56)

2. 4 STRATEGIES
SIZE OF THE PRIZE
UNDERSTANDING THE PRIZE
FINDING THE PRIZE
CAPTURING THE PRIZE

3. 1.THE SIZE OF THE PRIZE
Consumer spending is likely to nearly quadruple by 2020
Items Spending in 2010
($ billions)
Spending in 2020
($ billion)
Food
Housing and
consumer durables
Transportation and
communications
Clothes and foot
wear
Education and
leisure
Health
Other
Total
328
186
168
71
59
49
129
991
895
3,584
570
183
225
296
664
752
3.6x

4. 2. UNDERSTANDING THE PRIZE
HOUSEHOLD INCOME:-
• India has had a wide range of “struggler” households.
• More than one-third of the population is likely to reach “aspirer” class by 2020
compared with 20% in 2010 and 9% in 2000.
• The share of households(strugglers) are earning less than $3,300 which is likely
to fall from 51% in 2010 to 28% by 2020.

5. URBANIZATION
• In 2010, 31% India’s population lived in cities
• By 2020, the % will be raised to 35% . As people move from rural areas to cities
they tend to increase their expenses
• People living in urban areas have better access to goods and are more exposed
to consumerism
• For Eg-, television is owned by 80% of urban households, whereas in rural
households it is only 39%.

6. THE NUCLEAR FAMILY
• The % of nuclear family increased from 61% in 2006 to 66% in 2010.
• A nuclear family spends more on clothing, housing, education and leisure
activities whereas they both spend equally on food and health.
• The per capita expenditure of these families is 20%-50% higher than that of joint
families.

7. GEN-I
• Economic liberalization in 1991 marked a turning point for India.
• They have different believes and have made different choices other than their
parents.
• The Gen–I have far greater choice than prior generations. The number of car
models, for example has jumped from about 5 in 1990 to more than 160 today.

8. 3. FINDING THE PRIZE
•Professional Affluent
•Traditional AffluentAffluent
•Urban Aspirers
•Rural AspirersAspirers
•Large Town Next Billions
•Small Town Next BillionsNext Billions
Strugglers

9. AFFLUENT :
• Annual household income > US $18,500
• This section of the society are well educated, have companies in middle or large
scale sectors or good jobs with sufficient income.
• This segment constitutes 6% of households in India.

10. ASPIRERS
• Annual household income between US $ 7,400 and US $ 18,500.
• This section of the society are educated, have middle sized businesses or stable
jobs with income sufficient to live comfortably..
• This segment constitutes 14% of households in India.

11. NEXT BILLION
• Annual household income between $ 3,300 and $ 7,400.
• They have basic education and have small businesses or hold low paying jobs.
• This constitutes 30% of households in India.

12. STRUGGLERS
• Annual household income < US $ 3,300.
• Typically illiterate with limited education. These consumers have jobs that are
manual labour.
• Strugglers are generally based on daily wages.

13. Graph

16. 4. CAPTURING THE PRIZE.
For companies to invest in a developing country like India, they need to have a
deep understanding to capture the market.
Hence, they need the following two strategies to achieve the same.
1. Follow an Indian Market Approach :-
• Consumption Pattern.
• Lifestyle.
• Attitudes and Behavior.
• Financial Maturity.

17. UNDERSTANDING THE EVOLUTION OF
CONSUMPTION TREND
• Children : Driving consumption growth.
• Internet wave.
• Trading up.
• Brand : Strong recognition, weak loyalty.
• Healthy living.

18. CONCLUSION
The consumers spending in India is rising by leaps and bounds and if a company
comes to India and tries to capture it without adequate preparation they are likely to
fall short. India is a big and growing consumer market but not a easy one .Thus the
Tiger Roars report gives a good insight about the consumer habits and their spending
in different fields . Hence we can say that India which was once a pyramid is rapidly
turning into a diamond.