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More than 100 million people will

attend the 2013 Kumbha Mela

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Harvard Students to research

about Maha Kumbh Mela 2013

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Maha Kumbh Mela, considered the largest public gathering in the world, will be the subject of acase study at Harvard University, which will study the logistics and economics behind it and thepop-up mega-city that comes to life in Allahabad during the religious event.A team of faculty and students from Harvards Faculty of Arts and Sciences (FAS), School of Design,

Harvard Business School, School of Public Health, Harvard Medical School, Harvard Divinity Schooland Harvard Global Health Institute would travel to Allahabad for the project Mapping IndiasKumbh Mela.They would undertake different researches at the Maha Kumbh, which draws millions of pilgrimsfrom across the world every 12 years. Harvard said a temporary pop-up mega-city is created forthe Kumbh Mela that would house pilgrims and tourists for the over month-long duration of thereligious gathering. This city, laid out on a grid, is constructed and deconstructed within a

matter of weeks, it said.Creating this huge encampment entails multiple aspects of contemporary urbanism, including cityplanning and management, engineering and spatial zoning, an electricity grid, waterlines and sanitation systems, food and water distribution plans, hospitals and vaccinationcentres, police and fire stations, public gathering spaces, and stages for entertainmentsand plays, the university said.This is probably the first time that Harvard is doing something like this, where weve pulledtogether different disciplines in a way that all faculty and students are going to be together to

look at a phenomenon, Associate Director of Harvards South Asia Institute, Meena Hewett, said ina statement.The Harvard team would seek answers to the question of How on earth is an event ofthis size possible, city-based writer Logan Plaster, who would be part of the teamvisiting the Kumbh Mela, said. To fully grapple with this question, the scale of theKumbh needs to be put in perspective.

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Perception

Attitudes

LearningMotivation

Psychological

Influences

Promotion

Place

Product

Price

Marketing Mix

Reference Grps

FamilySocial class

Culture

Sociocultural

Influences

Type of purchase

Social surrounding

Physical

surrounding

Previous Experience

SituationalInfluences

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Language

Rural vs. Urban India

Rich vs. Poor Geographical diversity

Liberal vs. Conservative

Dimensions of Cultural Diversity in

India

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Diversity in Language, Religious

Customs, Beliefs 28 states, 22 languages and

numerous dialects spoken by people

Religious customs, rituals and beliefs vary

Different identities, ideologies, interests

Implication for Marketers

Communication & packaging in local language

Products need to be aligned with culture

There is a right way and wrong way for everything,

but that can change from place to place.

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Rural vs. Urban India 30% of the population live in urban areas.

70% live in rural areas

this means the majority of the market is spread across the

country.

Different income levels in rural and urban India. Rural customers attach more importance to functionality

while urban consumers give importance to aesthetics/

service parameters.

Implication for Marketers Implication for Marketers

Different marketing mix for both the markets

Mode of distribution/channels differs

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India Geographic Diversity

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China -> Opening up

Russia -> Collapse of the Soviet Union

Europe -> Formation of EU

Lib li ti I t O I di C lt

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Liberalizations Impact On Indian CultureFrom Towards

Genteel poverty

Contentment and stability

Learning to earn more

Striving to keep up with

others(Korea, China)

Swadeshi International ( Make world class

goods which can find export

markets)

Self-reliance (no matter what the

price to be paid)

Efficiency ( if its cheaper to buy,

dont make it)

Isolation/Aloofness Exposure to interaction with the

rest of the world

Ideology/Emotion Pragmatism/Rationality

Soft opinions(doing the popular

thing)

Biting the bullet(doing what has to

be done)

Obeying authority(eg governmentdictates) Freedom of choice ( eg a freemarket economy)

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Punishment, Guilt, Control(egCurbing consumption through

massive taxes on luxury goods)

Motivation/Positiveincentivization(eg stimulating

demand by cutting duties and

lowering interest rates)

Aiming for the lowest commondenominator (Garibi Hatao)

Aiming for the highest factor( egTake India to the 21st century- Rajiv

Gandhis signature tune

Protection (of the weak) Enabling people to become more

competitive)Scepticism about technology(may

not be suitable in our conditions)

Seeking and embracing

technology( We can lead the

world)

From Towards

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Culture

Culture is learned rather than being born with

Culture is manifested within boundaries of

acceptable behaviour

Transmitted from generation to generation.

Rituals practiced

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Culture

Consumer India is a federation of different

cultures that just happen to be sharing the

same geography and, to some extent, the

same history

EU

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Culture -> A set of basic values, perceptionsand behaviours adopted by a member of thesociety from family and other institutions

Cultural values are deep rooted India, because of its diversity has many sub

cultures

Multiplicity of languages and custom, differinggeographical features, different religions andfaith

Culture

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Manifestations of Indian culture ;

Modern lifestyles -> but values and beliefs

remain unchanged

Consumption patterns are heavily influenced

by our traditions and cultural diversity

Indian a land of people with lots of

aspirations, achievements and independent

feeling

Culture

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Traditional values in India :

Respecting elders, honouring heroes,

cherishing love.

Hospitality, tolerance, patience, adaptability

Accommodate differing beliefs, religions,

rituals

Culture

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Patriarchal society -> Patrilineal

Matriarchy -> Matrilineal

Culture

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Culture

Personal soap?

toothpaste?Family

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Popularity of family packs?

Toilet and detergent soaps come in packs of 3

Parle G -> pack of fives Maggie Noodles -> pack of two/four

Coke/Pepsi -> Two liter packs

Mineral water -> Five/Ten liters

Culture

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Popularity offamily packs

Toilet and detergent soaps come in packs of 3

Parle G -> pack of fives Maggie Noodles -> pack of two/four

Coke/Pepsi -> Two liter packs

Mineral water -> Five/Ten liters

Culture

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Contrasting palates

Bengali sweets Rossogullas, Sandesh

Andhra spicyness of food -> extra chilly

powder, green chillies and pickles

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Due to the many subcultures, consumer

behaviour varies in different parts of India

Subcultures

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Impact of culture on product

acceptance

Food market

Mc Donalds

KelloggsMaggi

Starbucks

Gl b l Gl l

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Global vs Glocal McDonalds uses 'Astrix and Oblix' in France, a very

famous historical cartoon.

In China, the Chinese restaurants all have big tables andit's very difficult to go on a date. McDonalds make tables

for two, so the couple has some privacy.

In India, where McDonalds is the typical 'family

restaurant -> it provides large tables. In Taiwan, they made VIP rooms, because the people like

privacy.

The local touch of the brand is also very remarkable:

McDonalds sells the Kiwi Burger inNew Zealand

Prosperity Burger in Malaysia

McKroket in the Netherlands

Croque McDo in France.

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Mc Donalds India

Entered India in 1996

Included many vegetarian items in their menu

Culture also had an impact on carefullychoosing the non-vegetarian menu

Adapted the menu to Indian palate by adding

spices and ingredients

Mc Aloo Tikki burger

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McDonalds also appreciated the consumption

style of the Indian consumers and their

mindset of having a maximum price limit

when they buy certain food items

Mc Donalds India

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Next for McDonald's: Vegetarian-Only

Restaurant AMRITSAR & JAMMU

Mc Donalds India What next?

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Kelloggs India

Kelloggs 1994 Entry into India

Indian consumption pattern for breakfast:

India has a diverse pattern of consumption ofbreakfast

Idli , Dosa , Roti , Puri , Parantha , Bread Butter Traditional delicacies -> More filling than a bowl of

cereals

Cereals are more sweet in taste

Cereals are consumed with cold milk Combining milk with cereals made them soggy and

spoilt the taste

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Maggi 2 minute noodles

Success of Maggi????

Failure of Kelloggs????
http://localhost/var/www/apps/conversion/tmp/scratch_3/OLD%20INDIAN%20ADs.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/OLD%20INDIAN%20ADs.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/OLD%20INDIAN%20ADs.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/OLD%20INDIAN%20ADs.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/OLD%20INDIAN%20ADs.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/OLD%20INDIAN%20ADs.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/OLD%20INDIAN%20ADs.flv

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Starbucks

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Products as gift items

Godrej Storwel

Reliance Mobile

Vicco Turmeric Vanishing Cream

Titan
http://localhost/var/www/apps/conversion/tmp/scratch_3/Godrej%20Storewel%20-%20Marraige%20(1).flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/Old%20Indian%20TV%20Ad-%20%20Vicco%20Turmeric%20Ayurvedic%20Cream%20(1).flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/Titan%20watches-%20Advertisement%20(Tara%20Sharma--Wedding%20gift).flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/Titan%20watches-%20Advertisement%20(Tara%20Sharma--Wedding%20gift).flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/Old%20Indian%20TV%20Ad-%20%20Vicco%20Turmeric%20Ayurvedic%20Cream%20(1).flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/Godrej%20Storewel%20-%20Marraige%20(1).flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/Godrej%20Storewel%20-%20Marraige%20(1).flv

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Ads catching up with new trends

Valentines Day cards

Bacardi -> Spirit of enjoyment

Close Up smile -> positioned towards

teenagers

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Rage among young smokers because the

positioning was in consonance with thechanging values The spirit of freedom.

Charms is the way you are . Symbolizing

Adventure, independence and a non-conformist attitude.

The jeans-like packaging added to this

attitude.

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The emotional bond between the mother andthe son :

Vicks Vaporub

Clinic Plus New Lifebuoy

Trupti Atta

Bharat Gas Kent RO
http://localhost/var/www/apps/conversion/tmp/scratch_3/Vicks%20Vaporub%20Commercial.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/Clinic%20Plus%20Ad%20-%20India.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/Clinic%20Plus%20Ad%20-%20India.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/Vicks%20Vaporub%20Commercial.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_3/Vicks%20Vaporub%20Commercial.flv

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28 states

Every state has its own identity

Every community has a cultural DNA

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Mini India

Pockets of communities

Connaught Place -> Melting Pot

Food

Method of shopping: Emergence of shoppingmalls, redesigning of traditional shops to givethem a modern look.

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Marwaris -> Method of shopping

An uncommon buying behaviour

Women do not indulge in any kind of shopping or

acquisitionEven home furnishings, fabrics which are the

responsibility of women are purchased by men.

Wedding dresses, dowry -> decisions taken by thepaternal heads with minimal participation bywomen

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Hindus 52%

Muslims 24%

Christians 24% 91% literacy

Prosperous lifestyle

Transformed from agrarian to one of theleading consumer states

Larger disposable incomes

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Christians are a prosperous and influential

community as they manage a large number of

educational institutions schools, colleges,

management and engineering institutions,hospitals and publishing houses( Malayala

Manorama is owned by a Christian family)

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Lifestyle -> The trait of spending too much isnot a trait of Malyalees, but with increasingprosperity, the money is spent mainly on

construction activity Average man in Kerala is better off and has

higher purchasing power

Inequality between rich and poor in manyparts of India is not found in Kerala

Marketers target -> both affluent and MIG

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TN Brahmins is a monolith in their

consumption pattern vis--vis cuisines,

dressing and shopping behaviour

Middle class -> professional class

Saving mentality is highly prevalent, hence

luxurious items do not come under their

consumption purview

Choice Characteristics Motivations

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Dress Veg, Rice, Idli, Dosa,

Tamarind, Coconut,

Chutneys, Sambar, Curd

Predominantly rice-growing, hence staple

diet is rice and rice-based food products

Food 9 yard sari(preferably

cotton), silk for occasions

Climate hot, humid hence cotton provides

relief and gives comfort

Footwear Flat-footed

sandals(leather or

rubber)

Sandals go with cotton, while heels would

be a mismatch

Durable Appeal for gold and

diamond jewellery

Iyengar brahmins Risk averse people. Gold

is considered a safe investment with assured

returns

Method of

shopping

Prefer local shops to malls.

Malls for high-value items

Relationship building with the shopkeeper is the

main reason for this type of behaviour

Lifestyle God-fearing, orthodox. Old

generation does not prefer

eating outside. Do not spend

lavishly. Prefer bargain-

shopping at local shops

Traditional occupation priests. Hence

rituals and customs have been transferred

culturally from generation to generation

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Gujarati community owns the most motels in US Entrepreneurial spirit

Women are in sync with the stock market even if withlittle formal education

Travel all over the world with their own cooks Ensure they get their own vegetarian food exactly the

way they like it

Food is very important to them

Buy and store in bulk commodities like oil and rice andwhile they will spend in the kitchen, they are not readyto spend on beautification of their house

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Weekend chill out

Spend substantial sum on food

Though many are in staying alone category ->

ready to eat products are not popular

Burger, sandwiches, Lays, Bingo, Juices, CSD

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Gadgets

Ipod

Iphone

Mobile phone with camera

MP3

This segment is always looking trendy, hip andhappening

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Shopping for clothes seen as a leisure time

activity

Clothes -> style statement

Daring styles and premium brands

Allen Solly, Van Heusen, Louis Phillippe, Color

Plus, Arrow, Levis, Lee, Raymond.

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Shopping and acquisition methods Culture of visiting a mall as almost a weekend

ritual

Mall not only a place to shop but a place tohang out and to socialize

High impulse buying due to increased use of CCand the necessity to show a cool attitude in frontof friends

Stalls put up near hang-out places like pizzaoutlets and coffee shops to advertise productslike a Mac laptop

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Internet buying -> Mainly because of

convenience and choices

Party culture -> Promoted and encouraged by

employers -> led to a greater acceptance of

drinking as a lifestyle

Pubs and discotheques -> Popular places to

hang out on weekends and they account for asignificant amount of money spent

Indian Teenagers in contrast to

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Western Teenagers

Western teenagers Grew up in relative economic stability.

Confronted by new realities: drugs, AIDs, pollution, teenage

pregnancy, divorce, etc.

Less sheltered home environment and unstable family life. From young age itself learn to be independent and make their

own choices in life.

More independent and self-sufficient.

Focus early on things they believe would provide for a secureand happy life, like earning money, spending culture or

material possession and acquisition.

A more stressful life as self-esteem is vested in doing well in

multi-faceted roles.


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Indian teenagers Grew up in period of fast economic growth with good

prospects.

Confronted by new realities through the mass media butwith few real-life experiences.

Have more sheltered home environment and stable familylife. Youth live with family of origin until their marriage.

Are less independent and self-sufficient.

Are idealistic in their expectations and tend to deal only

with issues that touch them personally. Lead a less stressful life as achievement in studies is

paramount and other matters appear secondary.


Western Teenagers

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Changing shapes of income

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Changing shapes of income

distribution

Changes in shape herald changes in

consumption pattern

Centre of gravity or the reference point of

average consumer behavior also changes

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Urban income pyramid

Rural income pyramid

Lower < 1.5 lakhs

Lower Middle 1.5 3.4 lakhs

Middle 3.4 to 8 lakhs

Upper Middle 8 17 lakhs

Upper > 17 lakhs

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Urban Income distribution

Triangle Or Pyramid: Traditional poor country

Diamond : Less people at bottom and top

more in the middle

Cylinder standing on a narrow base : Equal

numbers in top four income groups and very

few at the lowest income group

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Change in consumption comfort and

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aspiration levels

Actual visible consumption increase

1995-96 to 2002-03 sales of two-wheelers and

four-wheelers has more than doubled

Cellphones have multiplied by more than five

times

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Actual visible consumption increase

Best combination of functionality and status

enhancement Cellphone + Two wheeler

Nokia and Hero Honda have dropped price

thresholds offer real value propositions


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aspiration levels

Visible consumption breeds moreconsumption

Nothing breeds the desire to consume more

than consumption itself For someone who has not taken to the road of

consumption, there is less desire andaspiration to consume

Urban India has increased its ownership ofdurables quite significantly


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aspiration levels

A large enough consumption base now exists

to create a springboard for more consumption

Urban India has a sufficiently large

consumption base

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Adoption curve

Springboard ----------- Not Saturation


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Step Change in consumer confidence

Belief that tomorrows income will be morethan todays

Rapid change in standard of living in justunder one generation

Visible steady progress in their homes and

homes around them -> Consumer andConsumption confidence

Step change for a billion consumers


aspiration levels

Ch i ti f t d

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Affordability growth greater than income

growth

Increased pressure of competition -> increase

in performance and drop in prices + fallinginterest rates and easier consumer credit

Low-cost business learning improves

Change in consumption comfort andaspiration levels

Ch i ti f t d

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Increased comfort with borrowing Being in debt has always been an area of high

discomfort -> How did this change?

1. Confidence, past experience : Tomorrow will be

better than today2. Low interest rates

3. Popular concept of EMI -> Magically legitimizesborrowing

Live within your means -> Live beyond yourmeans

Change in consumption comfort andaspiration levels

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Average age of home loan takers has reduced

by 10 years in last 5 years

Increased comfort of lenders and borrowers

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Rampant rise in Aspiration :

Three factors that drive aspiration ->

Connectivity, Communication and Education

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Arjun Appadurai : Imagination is not about

individual escape. It is a collective social

activity. Informational sources are needed for

people to imagine a possible life, weave astory and a script around themselves and

place products in emerging sequences.

Imagination may not always lead to action,but it is a prelude to action.

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Rural India beyond Agriculture : Dependenceon agriculture, dependence on monsoons

Boom-and-bust cycles -> Fragile sentiments

In rural India Agricultural activity = Non-

agricultural activity

Non-agricultural HH have higher incomes

Dual-sector HH

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Understanding Indias demand

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g

structure

One of Indias leading scientists once said

The advantage of having such a large

population is that even if an infinitesimally

small percentage of Indians are goodscientists, it is still a larger number of

scientists than most smaller countries with

better education systems can boast of

A l i th t h l h

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Analysing the two wheeler reach

HIG 07mn HH 42% 3.8mn UM 18mn HH 25% 4.5mn

LM 63mn HH 10% 6.4mn

Low 66mn HH 2.7% 1.8mn

SUNSILK and Diapers

Indian market structure ->

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Premium-Popular-Discount

Premium-Popular-Discount

Rich-Middle-Low

% of population

by Income

National income

share %

Consumption

Expenditure

share %

Top 10% 34.1 30

Next 30% 36.1 36.6

Last 60% 29.7 33.4

Premium-Popular-Discount are Equal in number

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Initial assumption was that a large part of thepopular market would migrate to the

premium end -> Popular segment

manufacturers would die a slow and naturaldeath

Super

P i

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Discount

High-End

Discount

Popular

High-End

Popular

Mild

Premium

Premium

Premiu

Price

Performance

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Rich

Consuming Class

Climbers

Aspirants

Destitute

Rich vs. Poor:

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Different needs to fulfill

Rich vs. Poor:

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Rich vs. Poor:

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Consumer class : Value for Money

Judiciously balance benefit and price all the

time, -> make value-optimizing decisions

Cost benefit optimizers

High-end popular products

hard to seduce on imagery-oriented brand

benefits

Rich vs. Poor:

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Rich vs. Poor:

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Aspirants : new entrants into the consumptionarena

Low-price shampoo sachets, loose glucose

biscuits

They are occasional consumers, party

packers

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Destitute : not yet into consumption ofanything

Living hand to mouth

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Indian Consumers -> Under-dosers

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Popular theory is that changes in HHconsumption behaviour are happening rapidly

because women are working outside home

More financially independent

More assertive and driving the consumption

revolution

Working women facts

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Working women facts

23% of housewives in urban India have a joboutside home

42% of housewives in urban India have a job

outside home -> working in the fields

As HH get richer, proportion of women in

workforce falls

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The changing housewife

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The changing housewife

All working women are not the same Working Woman -> Just a job OR Career

Stay at home -> Housewives with a working

woman mindset Or Housewives Housewives with a working woman mindset

Driving change in India

CEOS of HH, Primary coaches of children,ensuring their success in the competitiveworld

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Indian Woman - The Forces of change

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Outdoor work :

Nuclear family + Absence of elders -> Brought

the onus of outdoor chores like paying utility

bills, school meetings, bank visits on thehousewife

This has lead to a new found confidence

Indian Woman The Forces of change

Indian Woman - The Forces of change

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Role Models : Reservation of seats for womenin Panchayats -> forefront of public decision

making domain

20000 women gram pradhans in UP alone All sectors offer role models and generations

are growing up with a clear focus on

education and careers

Indian Woman The Forces of change

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Final assessment

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Final assessment

Groups -> Predecided

Articles/Case study -> Predecided

40% -> Weightage presentation

60% -> Weightage Question & Answer

Every person would be asked one question

Presentation sequence -> 1 8

Date -> 15/03/13

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cb session 15

Documents