Preloaded applications and features are an important consideration in consumers' choice of an operator and their cell phone, according to a new study by iGR Research. In addition, apps that are popular with consumers could potentially generate 9.4 times the revenue for the operator if they come preloaded vs. being offered in the app store.
In the iGR study, which queried 2,000 users, two-thirds of respondents said that pre-installed apps factored into their device purchase decision. And of those respondents that were smartphone users, about 80 percent said that the types and quality of the applications in the app store were important. The majority of smartphone users also said that they considered pre-installed apps when they bought their smartphone even though they had access to apps in an app store.
Interestingly, the study also found that preloaded applications play an important role in application discovery--48 percent said that they tried preloaded applications on their phone, while 33 percent said they heard about apps from friends and family and 26 percent said they browse the app stores.
The most popular apps that consumers want preloaded are maps/navigation/GPS (64 percent), call control applications such as caller ID and call blocking (49 percent) and music applications (46 percent).
The iGR study also found that just 5 percent of respondents have unlocked their cellular phone so they could get access to apps that aren't available to them.
The iGR study follows a similar conclusion by ABI Research. In April, ABI predicted that popular applications will increasingly be preloaded on mobile devices and that social networking apps in particular will be preloaded.
For more:
- visit the iGR web site
Visit the below link for updated news on mobile technology
http://www.fiercemobilecontent.com/
Ashwin Vachaspathi
Saturday, October 2, 2010
Monday, August 16, 2010
The 4Ps are OUT...The 4Es are IN!!!
If there ever has been a time for change in marketing, this is it.
MANY OF US GREW UP with the Four Ps of Marketing: Product, Place, Price and Promotion. Do you know when the Four Ps of Marketing were invented? In 1960, by Jerome McCarthy. They were made leading-edge by Philip Kotler in his book Principles of Marketing in 1967.
The Four Ps thrived in a different world. It was a wonderful fantasy world. Marketers were king. Product differences lasted. Big, obedient audiences could be reached with big, efficient media.
What is the world of marketing today? The consumer has seized control. Audiences have shattered into fragments and slices. Product differences can last minutes, not years. The new ecosystem is millions and billions of unstructured one-to-one and peer-to-peer conversations.
Marketing is in the hot seat. So many of the tools and assumptions we grew up with are no longer valid. Many marketing leaders around the world got promoted into their jobs because they did two great product launches and three great TV campaigns, and figured out how to work with a few major retailers.
According to a recent study by Spencer Stuart, the average tenure of a CMO is less than 24 months. And only 14 percent of CMOs have been in their positions with the same company for more than three years. A CMO Council 2007 report concludes that only one-third of board members are satisfi ed that their marketing leaders can explain the ROI of marketing.
We need a new framework. And a new tool kit. For starters, we need to throw away the Four Ps and embrace the Four Es:
from Product to Experience
from Place to Everyplace
from Price to Exchange
from Promotion to Evangelism
The Four Ps thrived in a different world. It was a wonderful fantasy world. Marketers were king. Product differences lasted. Big, obedient audiences could be reached with big, efficient media.
What is the world of marketing today? The consumer has seized control. Audiences have shattered into fragments and slices. Product differences can last minutes, not years. The new ecosystem is millions and billions of unstructured one-to-one and peer-to-peer conversations.
Marketing is in the hot seat. So many of the tools and assumptions we grew up with are no longer valid. Many marketing leaders around the world got promoted into their jobs because they did two great product launches and three great TV campaigns, and figured out how to work with a few major retailers.
According to a recent study by Spencer Stuart, the average tenure of a CMO is less than 24 months. And only 14 percent of CMOs have been in their positions with the same company for more than three years. A CMO Council 2007 report concludes that only one-third of board members are satisfi ed that their marketing leaders can explain the ROI of marketing.
We need a new framework. And a new tool kit. For starters, we need to throw away the Four Ps and embrace the Four Es:
from Product to Experience
from Place to Everyplace
from Price to Exchange
from Promotion to Evangelism
Left: The Orange Babies campaign offered a simple exchange – in return for a donation, you receive a smile. Center: The Hershey’s store in Times Square has one of the highest sales figures per square foot of any retail space in America. Right: Johnnie Walker’s Personal Digital Assistant engages loyal drinkers when they are on the go.
From Product to Experience
Classic marketing instructed us to look at “product” features, fi nd a single consumer benefi t, and promote this over and over again to our target audience.
But in a world where most product advantages last less than six months, this strategy is losing relevance. A six-month, product-based advantage is a huge luxury. In financial services, an advantage may last a few weeks. On eBay, you may be special for a few seconds.
My advice is to stop thinking just about your product and start thinking about the full experience. And the fi rst step is to discover the Customer Journey. Do you know how customers shop for your category? Do you know who infl uences their purchases, and where and when their purchases happen? Do you know what happens after they buy?
If you don’t, you cannot understand the end-to-end customer experience. And you cannot know where to focus your precious marketing effort. When you think about the experience, not just the product or the advertising, you can do amazing things.
A few years ago, Hershey’s, an iconic U.S. chocolate company, asked us to put up a billboard ad in New York City’s Times Square. But instead of thinking about products and advertising, we imagined a brand experience and created an entire Hershey’s store for customers who visit Times Square.
The retail space is playful and full of childhood memories, inviting people in for a real-life experience with Hershey’s and its full range of products.
The store is a huge hit. It’s a focal point in Times Square, as well as a retail store with one of the highest sales figures per square foot in America.
But in a world where most product advantages last less than six months, this strategy is losing relevance. A six-month, product-based advantage is a huge luxury. In financial services, an advantage may last a few weeks. On eBay, you may be special for a few seconds.
My advice is to stop thinking just about your product and start thinking about the full experience. And the fi rst step is to discover the Customer Journey. Do you know how customers shop for your category? Do you know who infl uences their purchases, and where and when their purchases happen? Do you know what happens after they buy?
If you don’t, you cannot understand the end-to-end customer experience. And you cannot know where to focus your precious marketing effort. When you think about the experience, not just the product or the advertising, you can do amazing things.
A few years ago, Hershey’s, an iconic U.S. chocolate company, asked us to put up a billboard ad in New York City’s Times Square. But instead of thinking about products and advertising, we imagined a brand experience and created an entire Hershey’s store for customers who visit Times Square.
The retail space is playful and full of childhood memories, inviting people in for a real-life experience with Hershey’s and its full range of products.
The store is a huge hit. It’s a focal point in Times Square, as well as a retail store with one of the highest sales figures per square foot in America.
From Place to Everyplace
It used to be that retail was a “place,” but now consumers create their own paths. Marketers need to understand the full range of possibilities in reaching people.
Instead of interrupting people, today we want to “intercept” them and make contact when they are most receptive to engaging with us as they go about their day. Here’s what we are doing about it at Ogilvy. We have created a global network of digital innovation labs, in Singapore, New York, London, Beijing and São Paulo.
We are hiring different kinds of people. Mark Seeger, the leader of our Ogilvy Digital Innovation Lab in Singapore, is an engineer, a product designer who worked on the Apple iPod, and a former rocket scientist at NASA. Not your average agency hire.
Mark and his colleagues invent interesting ways for our clients to connect their brands with their consumers. Recently, Mark and his team invented a virtual personal assistant who lives on a mobile phone – and helps the customers of a liquor brand in Asia enjoy life to the fullest. She tells them about upcoming entertainment promotions, and helps them get reservations and VIP access. She even has a webcam feature to show them which bar is hot and which bar is not.
It’s no longer only about interrupting to grab attention when people are watching television, reading a magazine or visiting a retail location. Today we have to intercept consumers on their turf and on their terms, and that could be anyplace or everyplace.
From Price to Exchange
“Price” used to be very simple: I give you a product, you give me money and I put it in the cash register.
For many marketers, the focus was on the cost side of the equation: keep costs down so we can keep prices competitive. Marketing leaders were highly aware of the cost of marketing inputs – commercial production, agency compensation, TV airtime and print production. But as Oscar Wilde said, “The cynic knows the price of everything
and the value of nothing.”
Today’s marketing leader needs to be aware of the value of things. In particular, you need to know what it takes for a consumer to give you precious things like their attention, their engagement and their permission.
Ogilvy Amsterdam brought the concept of exchange to life in a campaign for an organization called Orange Babies, which supports African mothers and children who are HIV positive. To raise money at a big trade show, they offered a simple exchange. People who donated money saw the effect immediately – in exchange for their donation, they got a big smile. And Orange Babies earned thousands and thousands of dollars for a great cause.
So, do you understand exchange? Do you know the value of your customers – what they really bring to you in revenue and profi t over their lifetime? What are you willing to offer your consumers in exchange for their attention, their engagement and their permission? The marketer needs to take the first step.
For many marketers, the focus was on the cost side of the equation: keep costs down so we can keep prices competitive. Marketing leaders were highly aware of the cost of marketing inputs – commercial production, agency compensation, TV airtime and print production. But as Oscar Wilde said, “The cynic knows the price of everything
and the value of nothing.”
Today’s marketing leader needs to be aware of the value of things. In particular, you need to know what it takes for a consumer to give you precious things like their attention, their engagement and their permission.
Ogilvy Amsterdam brought the concept of exchange to life in a campaign for an organization called Orange Babies, which supports African mothers and children who are HIV positive. To raise money at a big trade show, they offered a simple exchange. People who donated money saw the effect immediately – in exchange for their donation, they got a big smile. And Orange Babies earned thousands and thousands of dollars for a great cause.
So, do you understand exchange? Do you know the value of your customers – what they really bring to you in revenue and profi t over their lifetime? What are you willing to offer your consumers in exchange for their attention, their engagement and their permission? The marketer needs to take the first step.
From Promotion to Evangelism
Through much of marketing’s history, “promotion” was sufficient. A single-minded product benefi t, creatively and persistently promoted, would often be a winning approach.
But increasingly, we are seeing a new and more powerful approach – evangelism. By this I mean creating a mission and brand experience that are so inspiring to consumers that they engage with you – and share their enthusiasm with others. What makes evangelism so powerful today is how it marries the oldest form of persuasion – word of mouth – and the newest – social networking and Web 2.0.
Marketing in a fragmented, multichannel world needs a powerful heart. The key ingredients are emotion and passion. As a marketing leader of the future, you must know how to find the energy and passion in what you are selling.
Which brings me to what we at Ogilvy call the The big ideaL™. Simply stated, a Big Ideal is a universal, enduring theme that a brand stands for. It’s the emotional center. And we have found that the best way to locate this emotional center is to start with a deep understanding of what your brand is really great at – your brand’s best self – and then to connect this to an important cultural truth or trend that is going on in society. This is a place where you will fi nd energy and passion.
But increasingly, we are seeing a new and more powerful approach – evangelism. By this I mean creating a mission and brand experience that are so inspiring to consumers that they engage with you – and share their enthusiasm with others. What makes evangelism so powerful today is how it marries the oldest form of persuasion – word of mouth – and the newest – social networking and Web 2.0.
Marketing in a fragmented, multichannel world needs a powerful heart. The key ingredients are emotion and passion. As a marketing leader of the future, you must know how to find the energy and passion in what you are selling.
Which brings me to what we at Ogilvy call the The big ideaL™. Simply stated, a Big Ideal is a universal, enduring theme that a brand stands for. It’s the emotional center. And we have found that the best way to locate this emotional center is to start with a deep understanding of what your brand is really great at – your brand’s best self – and then to connect this to an important cultural truth or trend that is going on in society. This is a place where you will fi nd energy and passion.
The Dove brand is over 50 years old. Its heritage was in selling simple and honest beauty products to women. It was successful, but we all believed there was more potential. It was when we linked together the brand’s best self with a cultural truth about women and beauty that the business really took off.
It started with a research insight: after decades of stereotyping by the fashion and beauty industries, global research revealed that only two percent of women believe they are beautiful. The leaders of Dove took a different view – women’s beauty today is much more diverse in age and size and color. Real beauty is what matters.
And so Dove’s Big Ideal was articulated as: “Dove believes the world would be a better place if women were allowed to feel good about themselves.”
Rather than just tell women its theory, Dove decided to engage women around the world in a debate. And so the Campaign for Real Beauty was born. It started with a website and a public relations campaign. Women were invited to join the debate, and millions did. One Dove viral video, Evolution, achieved such astonishing consumer sharing and free media support that it has been seen by an estimated 500 million viewers. And the Campaign for Real Beauty has helped drive Dove sales to record levels.
So it’s time for marketing to move on. Retool. Evolve.
EXPERIENCE Discover and map out the full Customer Journey on your own brand – in your own country.
EVERYPLACE
Develop your knowledge of new media and channels the way a chef masters new ingredients. Try new things – do something that doesn’t start with TV or print.
EXCHANGE Appreciate the value of things, not just the cost. Start by calculating the value of your customers – and what their attention, engagement and permission are worth to you.
EVANGELISM Find the passion and emotion in your brand. Inspire your customers and employees with your passion.
It started with a research insight: after decades of stereotyping by the fashion and beauty industries, global research revealed that only two percent of women believe they are beautiful. The leaders of Dove took a different view – women’s beauty today is much more diverse in age and size and color. Real beauty is what matters.
And so Dove’s Big Ideal was articulated as: “Dove believes the world would be a better place if women were allowed to feel good about themselves.”
Rather than just tell women its theory, Dove decided to engage women around the world in a debate. And so the Campaign for Real Beauty was born. It started with a website and a public relations campaign. Women were invited to join the debate, and millions did. One Dove viral video, Evolution, achieved such astonishing consumer sharing and free media support that it has been seen by an estimated 500 million viewers. And the Campaign for Real Beauty has helped drive Dove sales to record levels.
So it’s time for marketing to move on. Retool. Evolve.
EXPERIENCE Discover and map out the full Customer Journey on your own brand – in your own country.
EVERYPLACE
Develop your knowledge of new media and channels the way a chef masters new ingredients. Try new things – do something that doesn’t start with TV or print.
EXCHANGE Appreciate the value of things, not just the cost. Start by calculating the value of your customers – and what their attention, engagement and permission are worth to you.
EVANGELISM Find the passion and emotion in your brand. Inspire your customers and employees with your passion.
By:
Brian Fetherstonhaugh
Wednesday, August 11, 2010
Class recap-10th Aug
The class started with a discussion about the project work. Sir told us about N-plan or the analysis plan based on:
Ethnographic Research is actually a derived research tool.
Various tools used by Ethnographic Research are:
:Shilpi
- banners
- multivariate analysis
- qualitative research extrapolation analysis or video documentation
- open ended questions analysis - writing respondents ans to open ended qs 1st and then analysing the ans
Ethnographic Research is actually a derived research tool.
Various tools used by Ethnographic Research are:
- Consumer journal or consumer diary
- Social networking is the new upcoming trend and sites like twitter and facebook are good egs. Blogs are also being commonly used.
:Shilpi
Sunday, August 8, 2010
Questionnaire details on monday class
Hi Participants,
I would like to see your questionnaire or other survey tools priliminary investigation of 40 -45 samples in tommorow (monday class ) . please bring the file.
Ankush
I would like to see your questionnaire or other survey tools priliminary investigation of 40 -45 samples in tommorow (monday class ) . please bring the file.
Ankush
Wednesday, August 4, 2010
Deadline for interim submission
Hey friends,
I talked to sir, the deadline for interim submission is by Sunday evening, without any delays, and no ppt is required.
Sir would randomly ask any person from any group to explain about work done and about the project in Monday's class.
Shilpi
I talked to sir, the deadline for interim submission is by Sunday evening, without any delays, and no ppt is required.
Sir would randomly ask any person from any group to explain about work done and about the project in Monday's class.
Shilpi
Ad for an Ad
Posted by : Krishnashis
In today's Brand Equity, have you guys seen the print ad of Mathrubhumi?
Before attending the IMC classes I hardly used to criticize any advertisement, be it a TVC or a print ad. After seeing you people taking so much interest in critical-analysis of any ad, I thought this ad would be a good one for a discussion.
I find this one as a wonderful ad. Firstly, the media chosen for this ad is a brilliant one. I have searched for the same ad on the net, but they have not published this ad anywhere else, till yet.
This ad preaches for the advertisements to be given to their daily. So the target group is obviously the Sales/Marketing managers of the corporates who will ultimately decide where to put their ad up. And for them ET no-doubt is the best media to talk to.
Next comes the content of the ad. Like the 'bizarre' ads from Bingo, this ad also does not directly talk to the need. Rather it compells the reader to interpret it in a different manner.
The first noticeable thing is the very un-common picture which would definitely create a little curiosity to read it through. then comes the well-versed communication message.
I invite your comments on this ad as a successful/unsuccessful marketing communication.
...................................................................................
P.S. - Besides the quality of the advertisement, this ad made me search through the net for an other reason.I read about the Onam and the story behind it.
The story I knew about the Ramayana is something like this - while heading towards Shri Lanka ,in the midway of his journey (may be some where in Kerala) Lord Rama identified a stone in the midst of the forest, touched it with his feet and brought life to Ahalya, the lady who was turned into a stone due to some curse.
But you know, the sagas have always over-glorified their own heroes, so is the Malayalee one. As per the Keralian mythology, it was the great king Maveli, and not Lord Rama who brought life back to Ahalya, the Malayalee Princess.
Now it is up to you which one of these two stories you will tell to your grandchildren. :)
Tuesday, August 3, 2010
Recap of the session of 3rd August
Today Sir have well explained in class about the Qualitative Research. Also the differences between Qualitative and Quantitative reasearch are explained in the class.
Qualittative Research:
1) Expression of the views, opinions are very important in the current market( Indian Context)
2)Change in the Consumer behaviour pattern.
Three sets are included in the Qualitative Research:
1) Evaluation Set
2) Consideration Set
3) Evoked Set
As far as the Consideration Set is concerened the Relative Market Share is very important.Relative Market share is equals to the Trial Rate multiplied by the Repeat Purchase Rate.The bridge between the Consideration set and the Evoked Set is filled by the Marketing Mix viz product, place, promotion, people.
In the Qualitative Research Black Box Concept is crucial.This is because Black Box helps in analyzing the last minute interaction of the product with the consumer with respect to the following points.
a) Attitude
b) Behaviour
c) Motivation
d) Learning
e) Perception
Qualitative Researh is of the prime importance for the success of the Qualitative Research.So the rules while conducting the Qualitative Research must be followed strictly.
In the Qualitative Research Moderators role is important. The moderator's essentials are as follows:
1) The FGD in which the moderator is involved should be 8-12 and not more than that.
2) Ambience, Quality of mike matters a lot.
3) Time Duration: 15-20 mins.
4) Sign Confusions: Everything about the Research should be clearly stated to the respondents.Moderator should get a confirmation from the respondents whether he agrees or disagrees. Non verbal expressions should be decoded properly by gettin the confirmation from the respondents.
Approach to conduct FGD is different for the different people.Example Autoricksha drivers, housewives etc. If heated argument arises during the FGD or after the FGD ot should be handled carefully by the moderator.
Ethnographic Research: Its the research which is carried out through observation.For the example , refer the DEW DROPS CASE STUDY.Consumer Dairy is the Dairy which is given to a selected set of the sample respondents and asked to enter the daily purchases that they have made over a period of time.After the stipulated time the dairy is collected back from the respondents by the researcher and is further utilised for the analysis of the consumer behaviour.
Intricacies of the Ethnographic Research will be discussed in the next class.
SUJIT SONAWANE 119
Qualittative Research:
1) Expression of the views, opinions are very important in the current market( Indian Context)
2)Change in the Consumer behaviour pattern.
Three sets are included in the Qualitative Research:
1) Evaluation Set
2) Consideration Set
3) Evoked Set
As far as the Consideration Set is concerened the Relative Market Share is very important.Relative Market share is equals to the Trial Rate multiplied by the Repeat Purchase Rate.The bridge between the Consideration set and the Evoked Set is filled by the Marketing Mix viz product, place, promotion, people.
In the Qualitative Research Black Box Concept is crucial.This is because Black Box helps in analyzing the last minute interaction of the product with the consumer with respect to the following points.
a) Attitude
b) Behaviour
c) Motivation
d) Learning
e) Perception
Qualitative Researh is of the prime importance for the success of the Qualitative Research.So the rules while conducting the Qualitative Research must be followed strictly.
In the Qualitative Research Moderators role is important. The moderator's essentials are as follows:
1) The FGD in which the moderator is involved should be 8-12 and not more than that.
2) Ambience, Quality of mike matters a lot.
3) Time Duration: 15-20 mins.
4) Sign Confusions: Everything about the Research should be clearly stated to the respondents.Moderator should get a confirmation from the respondents whether he agrees or disagrees. Non verbal expressions should be decoded properly by gettin the confirmation from the respondents.
Approach to conduct FGD is different for the different people.Example Autoricksha drivers, housewives etc. If heated argument arises during the FGD or after the FGD ot should be handled carefully by the moderator.
Ethnographic Research: Its the research which is carried out through observation.For the example , refer the DEW DROPS CASE STUDY.Consumer Dairy is the Dairy which is given to a selected set of the sample respondents and asked to enter the daily purchases that they have made over a period of time.After the stipulated time the dairy is collected back from the respondents by the researcher and is further utilised for the analysis of the consumer behaviour.
Intricacies of the Ethnographic Research will be discussed in the next class.
SUJIT SONAWANE 119
Monday, August 2, 2010
Class recap-2nd Aug
Today's session started with the results of the Dewdrops case which in turn led us to some very important criterion while judging the efficacy of a brand. Some of them are as follows:
1. Relative market share which is defined as Trial rate X Repeat purchase rate
2. Importance of brief
3. Importance of pricing
4. Importance of facts
5. Importance of correct selection of a proposal
Following were the key points for evaluation of a research proposal:
1. Understanding of the brief
2. Non biased opinion about the proposal
3. Understanding the research design
4. Understanding the consumer behavior
5. Judgment of prevailing current rates of similar sort of study and budgeted rates of study
6. Tools and techniques to be used are also important if you know which toll will help you in Data Interpretation and analysis
The following steps were discussed in how to conduct and monitor fieldwork:
1. FBN - Field Brief Note
It contains dos and donts of fieldwork.
It is given by client to agency which gives it to fieldwork staff.
2. Concall
It is done by agency.
It can be a personal meeting, email or a concall.
It should keep in loop the fieldwork staff, the client and the agency people.
3. Briefing
It is for 2 groups : Recruiters and Surveyors
It mainly relates to data collection instrument like questionnaires.
Clarity about objectives and questions to be asked is necessary.
Sir also discussed about Black box in context with marketing research. A black box records the following consumer attributes:
1. Attitude
2. Learning
3. Perception
4. Motivation
5. Personality
Since we would be starting Qualitative research so we have been asked to get our laptops with SPSS installed from the next class i.e. from 3rd Aug.
Shilpi
1. Relative market share which is defined as Trial rate X Repeat purchase rate
2. Importance of brief
3. Importance of pricing
4. Importance of facts
5. Importance of correct selection of a proposal
Following were the key points for evaluation of a research proposal:
1. Understanding of the brief
2. Non biased opinion about the proposal
3. Understanding the research design
4. Understanding the consumer behavior
5. Judgment of prevailing current rates of similar sort of study and budgeted rates of study
6. Tools and techniques to be used are also important if you know which toll will help you in Data Interpretation and analysis
The following steps were discussed in how to conduct and monitor fieldwork:
1. FBN - Field Brief Note
It contains dos and donts of fieldwork.
It is given by client to agency which gives it to fieldwork staff.
2. Concall
It is done by agency.
It can be a personal meeting, email or a concall.
It should keep in loop the fieldwork staff, the client and the agency people.
3. Briefing
It is for 2 groups : Recruiters and Surveyors
It mainly relates to data collection instrument like questionnaires.
Clarity about objectives and questions to be asked is necessary.
Sir also discussed about Black box in context with marketing research. A black box records the following consumer attributes:
1. Attitude
2. Learning
3. Perception
4. Motivation
5. Personality
Since we would be starting Qualitative research so we have been asked to get our laptops with SPSS installed from the next class i.e. from 3rd Aug.
Shilpi
Sunday, August 1, 2010
Comparing urbanization in China and India
China and India are both urbanizing rapidly, but China has embraced and shaped the process, while India is still waking up to its urban realities and opportunities.
China and India are in the vanguard of a wave of urban expansion that is restoring the global prominence that Asia enjoyed before the European and North American industrial revolution. By 2025, nearly 2.5 billion Asians will live in cities, accounting for almost 54 percent of the world’s urban population. India and China alone will account for more than 62 percent of Asian urban population growth and 40 percent of global urban population growth from 2005 to 2025.
In 1950, India was a more urban nation than China (17 percent of the population lived in cities, compared with China’s 13 percent). But from 1950 to 2005, China urbanized far more rapidly than India, to an urbanization rate of 41 percent, compared with 29 percent in India. New research from the McKinsey Global Institute1 expects this pattern to continue, with China forecast to add 400 million to its urban population, which will account for 64 percent of the total population by 2025, and India to add 215 million to its cities, whose populations will account for 38 percent of the total in 2025.
Never before in history have two of the largest nations (in terms of population) urbanized at the same time, and at such a pace. This process will drive fundamental shifts—in both countries—which will have significant consequences for the world economy and offer exciting new opportunities for investors.
In India, urban per capita GDP is projected to grow at a rate of 6 percent a year from 2005 to 2025, while China will see growth of 7.3 percent. The number of urban households with true discretionary-spending power in India could increase sevenfold, to 89 million households, in 2025. In China, there are 55 million middle-class households today. That number could more than quadruple to nearly 280 million in 2025, to account for more than three-quarters of all China’s urban households. For businesses, the significant increase in per capita urban incomes and middle-income households offers the potential of vibrant new markets to serve.
So what markets are likely to benefit the most from these trends? In India, by 2025, the largest markets will be transportation and communications, food, and health care, followed by housing and utilities, recreation, and education. Even India’s slower-growing spending categories will represent significant opportunities for businesses because these markets will still be growing rapidly in comparison with their counterparts in other areas of the world. In China’s cities, the fastest-growing categories are likely to be transportation and communications, housing and utilities, personal products, health care, and recreation and education.
In addition, in both China and India, urban infrastructure markets will be massive. For example, from 2005 to 2025, India will need to add 700 million to 900 million square meters of floor space a year; in China, the required numbers could be 1,600 million to 1,900 million square meters. During the same period, India will need to add at least 350 to 400 kilometers of metropolitan railways and subways annually, while the corresponding number in China will be closer to 1,000 kilometers.
There is little doubt about the scale of the new markets in China and India unleashed by the pace and scale of their urbanization. But businesses still need to be able to serve these markets in practical terms. The way cities are run—and the productivity that results—is a major factor for companies. Here, China is in much better shape than India. While India has barely paid attention to its urban transformation, China has developed a set of internally consistent practices across every element of the urbanization operating model: funding, governance, planning, sectoral policies, and the shape, or pattern, of urbanization, both across the nation as a whole and within cities themselves.
India has underinvested in its cities; China has invested ahead of demand and given its cities the freedom to raise substantial investment resources by monetizing land assets and retaining a 25 percent share of value-added taxes. While India spends $17 per capita on capital investments in urban infrastructure annually, China spends $116. India has devolved little real power and accountability to its cities, but China’s major cities enjoy the same status as provinces and have powerful political appointees as mayors. While India’s urban-planning system has failed to address competing demands for space, China has a mature urban-planning regime (emphasizing the systematic development of run-down areas) consistent with long-range plans for land use, housing, and transportation.
The starkest contrast between the two countries is that China has embraced and shaped urbanization, while India is still waking up to its urban reality and the opportunities that its cities offer for economic and social transformation.
However, if India fixes its urban operating model, it has the potential to reap a demographic dividend from the increase—of around 250 million expected in the next decade—in the working-age population. This dividend is even larger than that in China, which is aging rapidly. By 2025, nearly 28 percent of its inhabitants will be aged 55 or older, compared with only 16 percent in India, whose demographic profile is much more youthful. If India optimizes the productivity of its cities and maximizes their GDP, the economy could add more than 170 million urban workers to its labor force from 2005 to 2025, compared with 50 million in China over the same period. The stakes are high.
Greeshma Sankaran
China and India are both urbanizing rapidly, but China has embraced and shaped the process, while India is still waking up to its urban realities and opportunities.
China and India are in the vanguard of a wave of urban expansion that is restoring the global prominence that Asia enjoyed before the European and North American industrial revolution. By 2025, nearly 2.5 billion Asians will live in cities, accounting for almost 54 percent of the world’s urban population. India and China alone will account for more than 62 percent of Asian urban population growth and 40 percent of global urban population growth from 2005 to 2025.
In 1950, India was a more urban nation than China (17 percent of the population lived in cities, compared with China’s 13 percent). But from 1950 to 2005, China urbanized far more rapidly than India, to an urbanization rate of 41 percent, compared with 29 percent in India. New research from the McKinsey Global Institute1 expects this pattern to continue, with China forecast to add 400 million to its urban population, which will account for 64 percent of the total population by 2025, and India to add 215 million to its cities, whose populations will account for 38 percent of the total in 2025.
Never before in history have two of the largest nations (in terms of population) urbanized at the same time, and at such a pace. This process will drive fundamental shifts—in both countries—which will have significant consequences for the world economy and offer exciting new opportunities for investors.
In India, urban per capita GDP is projected to grow at a rate of 6 percent a year from 2005 to 2025, while China will see growth of 7.3 percent. The number of urban households with true discretionary-spending power in India could increase sevenfold, to 89 million households, in 2025. In China, there are 55 million middle-class households today. That number could more than quadruple to nearly 280 million in 2025, to account for more than three-quarters of all China’s urban households. For businesses, the significant increase in per capita urban incomes and middle-income households offers the potential of vibrant new markets to serve.
So what markets are likely to benefit the most from these trends? In India, by 2025, the largest markets will be transportation and communications, food, and health care, followed by housing and utilities, recreation, and education. Even India’s slower-growing spending categories will represent significant opportunities for businesses because these markets will still be growing rapidly in comparison with their counterparts in other areas of the world. In China’s cities, the fastest-growing categories are likely to be transportation and communications, housing and utilities, personal products, health care, and recreation and education.
In addition, in both China and India, urban infrastructure markets will be massive. For example, from 2005 to 2025, India will need to add 700 million to 900 million square meters of floor space a year; in China, the required numbers could be 1,600 million to 1,900 million square meters. During the same period, India will need to add at least 350 to 400 kilometers of metropolitan railways and subways annually, while the corresponding number in China will be closer to 1,000 kilometers.
There is little doubt about the scale of the new markets in China and India unleashed by the pace and scale of their urbanization. But businesses still need to be able to serve these markets in practical terms. The way cities are run—and the productivity that results—is a major factor for companies. Here, China is in much better shape than India. While India has barely paid attention to its urban transformation, China has developed a set of internally consistent practices across every element of the urbanization operating model: funding, governance, planning, sectoral policies, and the shape, or pattern, of urbanization, both across the nation as a whole and within cities themselves.
India has underinvested in its cities; China has invested ahead of demand and given its cities the freedom to raise substantial investment resources by monetizing land assets and retaining a 25 percent share of value-added taxes. While India spends $17 per capita on capital investments in urban infrastructure annually, China spends $116. India has devolved little real power and accountability to its cities, but China’s major cities enjoy the same status as provinces and have powerful political appointees as mayors. While India’s urban-planning system has failed to address competing demands for space, China has a mature urban-planning regime (emphasizing the systematic development of run-down areas) consistent with long-range plans for land use, housing, and transportation.
The starkest contrast between the two countries is that China has embraced and shaped urbanization, while India is still waking up to its urban reality and the opportunities that its cities offer for economic and social transformation.
However, if India fixes its urban operating model, it has the potential to reap a demographic dividend from the increase—of around 250 million expected in the next decade—in the working-age population. This dividend is even larger than that in China, which is aging rapidly. By 2025, nearly 28 percent of its inhabitants will be aged 55 or older, compared with only 16 percent in India, whose demographic profile is much more youthful. If India optimizes the productivity of its cities and maximizes their GDP, the economy could add more than 170 million urban workers to its labor force from 2005 to 2025, compared with 50 million in China over the same period. The stakes are high.
Greeshma Sankaran
Saturday, July 31, 2010
Thursday, July 29, 2010
29th July- Dewdrops Case Study
The participants discussed the Dewdrops case study in the session
The case was divided into five sections for the purpose:
1. Background
2. Project brief by the client
3. Research proposal by Agency A
4. Research proposal by Agency B
5. Research proposal by Agency C
The participants noted and illustrated the salient points of ever component mentioned above. The case studfy emphasised the following points:
1. The need for a market research must be justified.'
2. One must consider the project brief as the cornerstone of the proposal as the objective and the requirements must be understood thoroughly.
3. The proposals must contain elaborate research design description and be able to compete with multiple good quality proposals.
4. The research method plays a vital role in selection of the proposal.
The photograph of the discussion shall be uploaded soon.
Abhishek Banerjee
Tuesday, July 27, 2010
Class on 27 July - Data Collection
The class was on the topic Data Collection Techniques. It dealt with 4 important points:
• How to collect data
• Pros and cons of questionnaire
• Dos and Don’ts of questionnaire
• Observational technique
How to collect data :
Questionnaire is the most common method of data collection. While designing a questionnaire, care should be taken in case of the grammar, scale, etc used and the translation done. the length of the questionnaire should be such that it can be administered properly.
Nowadays, questionnaire is not the only tool for collecting data. People have also started using social networking sites. But, while using technology for data collection one should be careful that every point of data collected is saved properly for future analysis.
In this context, the problem with data collection in the dark chocolate case was also discussed.
Another technique for data collection is Focused Group Interview. In this , the member size is between 8-12 .
Pros and Cons of questionnaire:
Pros :
o If monitored properly, the work becomes easy.
o It can become a one-stop solution .
Cons :
If not administered properly, the above 2 points will turn negative.
Dos and Don’ts of questionnaire:
Designing of a questionnaire is both an art as well as science. Care should eb taken that questionnaire doesn’t turn into a boring one for the respondent.
Observational Techniques :
In this technique, generally the behavior of respondents is studied by observation.The example of Zara market research was discussed for this.
Greeshma
• How to collect data
• Pros and cons of questionnaire
• Dos and Don’ts of questionnaire
• Observational technique
How to collect data :
Questionnaire is the most common method of data collection. While designing a questionnaire, care should be taken in case of the grammar, scale, etc used and the translation done. the length of the questionnaire should be such that it can be administered properly.
Nowadays, questionnaire is not the only tool for collecting data. People have also started using social networking sites. But, while using technology for data collection one should be careful that every point of data collected is saved properly for future analysis.
In this context, the problem with data collection in the dark chocolate case was also discussed.
Another technique for data collection is Focused Group Interview. In this , the member size is between 8-12 .
Pros and Cons of questionnaire:
Pros :
o If monitored properly, the work becomes easy.
o It can become a one-stop solution .
Cons :
If not administered properly, the above 2 points will turn negative.
Dos and Don’ts of questionnaire:
Designing of a questionnaire is both an art as well as science. Care should eb taken that questionnaire doesn’t turn into a boring one for the respondent.
Observational Techniques :
In this technique, generally the behavior of respondents is studied by observation.The example of Zara market research was discussed for this.
Greeshma
Monday, July 26, 2010
Class recap-26th July'10
In today's session we did a group activity in which we analysed the questionnaire for case study "Customer attitude towards mobile phone providers".
We needed to find out the flaws in the questionnaire and also categorise the questions into various types of scales.
This info is now to be written on a sheet of paper by the respective grp reps and submitted to sir in tomr's class.
Also, sir announced the deadline for interim submission of project work, which is 6th Aug.
Friends, pls take initiative n keep blogging n try to inform sir thru mail before taking a leave.
We needed to find out the flaws in the questionnaire and also categorise the questions into various types of scales.
This info is now to be written on a sheet of paper by the respective grp reps and submitted to sir in tomr's class.
Also, sir announced the deadline for interim submission of project work, which is 6th Aug.
Friends, pls take initiative n keep blogging n try to inform sir thru mail before taking a leave.
Richest Segment in Urban India
This week we take up A4—the richest houseghousehold segment in urban India. A4 is a small segment with large families, households whose chief wage earners are graduates or postgraduates working as professionals, managers or businessmen. More importantly, they live with their children who are themselves married.
Household sizes are therefore large—more than half have more than five members. And with many earning members, just 17% of the households depend on just the chief wage earner’s income. Median household income is close to Rs6.5 lakh a year and more than one-quarter of these households earn more than Rs15 lakh a year—the highest proportion in this income bracket among all in the series.
The 600,000 households in this segment account for a little more than 1% of the urban population, but the high education and income profile makes this an important consumer segment for marketeers.
Two-thirds of the households have senior citizens while three-quarters have children, so the spectrum of goods and services consumed by this segment spans all ages. A4 households spend the highest share among all segments on services, the highest in fact on conveyance. Children are given vehicles as soon as they are eligible to drive, most graduating to four-wheelers at the earliest. Entertainment, especially at hotels, multiplexes and malls, is high on the agenda for weekends, while holidays are spent abroad or at top-end destinations within the country—this is after all an affluent segment. A4 households spend a very small proportion of their budget on rent, as 86% of them own the homes they live in.
Yet, there are some households that earn less than Rs3 lakh per year; they comprise less than one-fifth of the total. After all, not all the A4 chief wage earners have college degrees. Their family backgrounds can be quite diverse and more importantly, the sectors of employment are extremely varied—construction and real estate, manufacturing, education, health and social work all make up for around 20% of the sectoral employment each. There is also a nearly even split in this segment between those who are self-employed and those who have regular salaries.
Further, income also depends upon the opportunities to earn in the cities—a doctor or lawyer in Mumbai for instance would earn much more than one with similar qualifications in a smaller town, say Jabalpur or Jorhat. Even within large metros, there would be variations in income—a doctor in south Mumbai would have a very different practice compared with one in Jogeshwari, for instance. The point being made here is that there is still considerable variation within this segment, even though it is a much more affluent segment than the others in urban India. Consumption patterns would remain largely similar across all the households in this segment, even though the levels would differ.
A4 households are joint families, an anomaly in urban India, especially among the higher income groups. The advantages of living in the same house could be economic (saving on rent, children still to earn enough to live in separate homes) or social (the neighbourhood is a good one, close to schools or clubs, etc.). Or again, family ties just may be stronger than the individualistic need to break away.
Prasad & Ankur Singh
Household sizes are therefore large—more than half have more than five members. And with many earning members, just 17% of the households depend on just the chief wage earner’s income. Median household income is close to Rs6.5 lakh a year and more than one-quarter of these households earn more than Rs15 lakh a year—the highest proportion in this income bracket among all in the series.
The 600,000 households in this segment account for a little more than 1% of the urban population, but the high education and income profile makes this an important consumer segment for marketeers.
Two-thirds of the households have senior citizens while three-quarters have children, so the spectrum of goods and services consumed by this segment spans all ages. A4 households spend the highest share among all segments on services, the highest in fact on conveyance. Children are given vehicles as soon as they are eligible to drive, most graduating to four-wheelers at the earliest. Entertainment, especially at hotels, multiplexes and malls, is high on the agenda for weekends, while holidays are spent abroad or at top-end destinations within the country—this is after all an affluent segment. A4 households spend a very small proportion of their budget on rent, as 86% of them own the homes they live in.
Yet, there are some households that earn less than Rs3 lakh per year; they comprise less than one-fifth of the total. After all, not all the A4 chief wage earners have college degrees. Their family backgrounds can be quite diverse and more importantly, the sectors of employment are extremely varied—construction and real estate, manufacturing, education, health and social work all make up for around 20% of the sectoral employment each. There is also a nearly even split in this segment between those who are self-employed and those who have regular salaries.
Further, income also depends upon the opportunities to earn in the cities—a doctor or lawyer in Mumbai for instance would earn much more than one with similar qualifications in a smaller town, say Jabalpur or Jorhat. Even within large metros, there would be variations in income—a doctor in south Mumbai would have a very different practice compared with one in Jogeshwari, for instance. The point being made here is that there is still considerable variation within this segment, even though it is a much more affluent segment than the others in urban India. Consumption patterns would remain largely similar across all the households in this segment, even though the levels would differ.
A4 households are joint families, an anomaly in urban India, especially among the higher income groups. The advantages of living in the same house could be economic (saving on rent, children still to earn enough to live in separate homes) or social (the neighbourhood is a good one, close to schools or clubs, etc.). Or again, family ties just may be stronger than the individualistic need to break away.
Prasad & Ankur Singh
Sunday, July 25, 2010
Class - 22nd July'10
The class started with the revision of important ingredients of a brief taught in the previous class.
The first two steps in developing a brief were:
The importance of background in a research process was discussed.
We discussed various methodologies for conducting a research like:
The first two steps in developing a brief were:
- background info
- listing study
The importance of background in a research process was discussed.
We discussed various methodologies for conducting a research like:
- Central Location Test
- Sequential Monadic
- Panel formation
Friday, July 23, 2010
The Next Wave of Digital Marketing Trends
Sometimes the most important small business marketing tools and technologies start out as expensive enterprise solutions exclusive to big brands and agencies; only much later do they become affordable and accessible to small businesses.
Innovation No. 1: Online Display Advertising
Banner ads may sound like an antiquated way to get noticed, but actually display advertising is becoming much more interesting due to two important trends.
One such trend is better local ad targeting. Several companies, such as Local.com, LinkedIn and Facebook, have announced that they're getting into the local targeting game by offering geography-based advertising along with the standard demographic or keyword targeting you'd expect. Local targeting is already prevalent in search engine marketing and it's good to know that display ads are heading in the same direction.
The other noticeable trend to get excited about is the movement toward ad pricing based on cost-per-action rather than cost-per-click. Paying for ads based on CPA means that you don't pay the publisher until you get the action you want from the ad. For example, if you want your online display ad to drive someone to an online store to buy the advertised product, you won't have to pay until someone actually clicks the ad and completes the purchase. Several companies--such as Hydra--have announced an emphasis on CPA tracking and billing.
- How to get ready
Get to know your acquisition costs on an intimate level. If cost-per-action advertising sounds attractive, you'll need to have a firm understanding of what you're willing to pay for each new customer or action your advertising obtains in order to know how to bid. If you're interested in the possibilities of targeted display advertising (and you're interested in getting sophisticated with your targeting) start building a profile of your best prospects and customers--including geography, demographic information and typical buying behavior. If you need help figuring out how to analyze your customers to get that information, online advertising company Ad Buyer offers a set of free audience profiling tools.
Innovation No. 2: Online Retail Promotions
Selling physical goods has long been about driving traffic to your e-commerce store so prospective customers can see and buy your products. That trend seems destined for a giant turn in the opposite direction, because it won't be long before smaller retailers have the ability to sell more of their products on other highly targeted consumer websites. One such website is Milo.com, where the CEO announced the company's intention to enable anyone to search real-time availability and local product information on every product, on every shelf, in every local business in America.
Another outstanding innovation for online retail comes from Pixazza. Pixazza is changing the way consumers shop by allowing people to browse and buy products that appear in any photos. For example, let's say you're reading an article in an online entertainment magazine and you see a photo of Jennifer Lopez wearing earrings that are to-die-for. Getting yourself a similar pair is easier than ever; as you hover over the photo Pixazza recommends earrings at suggested prices far below what Jennifer Lopez probably paid for hers.
- How to get ready
It's time to get your inventory database in shape. Selling products on websites owned by other companies will likely require you to conform to their database and information technology standards. There's no need to get overly sophisticated here. If your company has the ability to publish real time inventory and product information to your own website, you probably already have enough technology to quickly enable a feed of that information to other online databases.
Innovation No. 3: Social Media Advertising
Social media is arguably the most innovative internet tool to emerge since, well, the internet. There are definitely good reasons to advertise on social media sites (this includes your own fan pages and networks). The challenge for a small business is the same challenge facing any business: How do you get enough people to pay attention to your ads while they are busy uploading photos or conversing with friends?
There are a number of companies working to make social media advertising more engaging and even fun, and it won't be long before there are a plethora of choices for small budgets. At the show, NTB Media announced an interesting video advertising product with built-in games and quizzes to get people to pay attention and remember the content in the videos, and Fan Appz announced access to an integrated suite of social media applications designed to attract attention and engagement in exchange for a subscription of just $50 per month.
- How to get ready
Test before you invest. Social media advertising is already accessible and affordable to small business, but affordability isn't the only reason to invest in a particular form of advertising. Don't invest in a new social media tool or advertising strategy until you are sure you have the ability and the time to track your results and compare them against other opportunities. As a small business, you can't afford to invest in everything. If you don't track and compare your results, you won't have the information you need to make budget-wise choices.
Innovation No. 4: Mobile Marketing
Advertising and messaging to mobile phones is definitely a hot topic among marketers. In the past, most mobile marketing tools focused on only one aspect of mobile marketing, such as text-messaging, application development or mobile websites. Those tools are now converging as integrated solutions. One such company, 2ergo, recently announced plans to offer a comprehensive suite of marketing solutions that include SMS, MMS, e-mail and mobile websites. Be on the lookout for companies offering comprehensive mobile solutions priced for small businesses in the not-too-distant future.
- How to get ready
Make sure at least a portion of your website is designed to display and function properly on mobile devices--especially the pages that contain contact information for your business. If you have a location-based business, start making your communications more mobile friendly so people can respond to your offers and information while they are on-the-go. Sending text-messages and e-mails with mobile coupons and snack-sized bites of product information are great places to start. Also, social media users are more likely to become mobile savvy than the average internet user, so make sure you have a presence on the most common social sites.
Thursday, July 22, 2010
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