Reaching the Consumer in India
- Growing Sectors
- Telecommunications and Information Technology, transport and hotels, real estate and financial services, education services, electric power generation, distribution and transmission, machinery & equipment, water and clean energy, franchising and retail.
- Consumer Behavior
- Some Indian consumers are aware of quality differences and insist on world-class products, many customers can sacrifice quality concerns for price reductions. The quality of after-sales service by the seller plays an important role when making a purchasing decision.
Indian consumers are buying trademarks they recognize. In this sense, it is necessary to invest in advertising and marketing to promote its product. Indians are now far more brand conscious, and this is generating demand for some products that were previously unfamiliar.
- Consumer Profile and Purchasing Power
- The dynamism in country’s economy has resulted into an increase in purchasing power and an expansion of the middle class having higher disposable income levels. It is necessary to adapt its product to the portion of the population targeted: the middle class (about 350 million people) will be interested by products which can be found in Western countries, while the working classes is seeking above all commodities for very low prices.
- Consumer Recourse to Credit
- The credit financing is becoming slowing popular, especially in urban area. However, most households would prefer to make purchases from their own income.
- Consumers Associations
India Consumer Association
Media in Which to Advertise
- Expensive but the most popular media of advertising in the country. Nearly 70% of the households in India have TV sets.
Sony Entertainment TV
New Delhi TV (NDTV)
- According to the National Readership Survey (NRS) 2000, the print media reaches 70% of urban adults. Further, the number of readers in rural India is now roughly equal to that in urban India.
- In Transportation Venues
- Advertising space is available on rails, buses, taxis and other specialized mobile vehicles.
- The least expensive and most traditional form of mass entertainment in the country. It reaches over 90 % of the population
All India Radio
- New Technologies (E-Marketing, SMS, etc.)
- Internet advertising is growing although its reach is still low. It is projected to grow at 50 % to reach USD166 million by 2010 from the current level of USD22 million.
- Main Advertising Agencies
JWT (Hindustan Thompson Associates)
Ogilvy & Mather
Saatchi & Saatchi Pvt Ltd
Main Principles of Advertising Regulations
- Print and out-door do allow indirect advertising. However, satellite television accepts alcohol advertising directly.
- Not permitted on air media - including satellite.
- Diagnosis, illness, cures and treatments by correspondence, catalogues, clinics, institutes, laboratories; but have very strict rules.
- Other Rules
- Restrictions of direction/attitude are placed on children's commercials.
No baby food advertising is acceptable.
Overseas commercials are accepted.
- Use of Foreign Languages in Advertisement
Generally English, Hindi and all regional languages are used.
- Organizations Regulating Advertising
Advertising Standards Council of India
Advertising Agencies Association of India (AAAI)
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