About INgene blog : First ever Indian Youth trend Insights blog

About INgene : First ever Indian Youth trend Insights blog:
This blog explores the detailed characteristics of Young-India and explains the finer & crucial differences they have with their global peers. The blog also establishes the theory of “adopted differentiation” (Copyright Kaustav SG,2007) and how the Indian & Inglodian youth are using this as a tool to differentiate themselves from the “aam aadmi” (mass population of India) to establish their new found identity.

The term youth refers to persons who are no longer children and not yet adults. Used colloquially, however the term generally refers to a broader, more ambiguous field of reference- from the physically adolescent to those in their late twenties.
Though superficially the youth all over the world exhibits similar [degree of] attitude, [traits of] interests & [deliverance of] opinion but a detailed observation reveals the finer differential characteristics which are crucial and often ignored while targeting this group as a valued consumer base. India is one of the youngest countries in the world with 60% of its population less then 24 years of age and is charted as the most prospective destination for the retail investment in the A. T. Kearney’s Global Retail Opportunity Report, 2007. With the first ever non-socialistic generation’s thriving aspiration & new found money power combined with steadily growing GDP, bubbling IT industry and increasing list of confident young entrepreneurs, the scenario appears very lucrative for the global and local retailers to target the “Youngisthan” (young-India). But, the secret remains in the understanding of the finer AIOs of this generation. The Indian youth segment roughly estimates close to 250million (between the ages of fifteen and twenty-five) and can be broadly divided (socio-psychologically) into three categories: the Bharatiyas, the Indians & the Inglodians (copyright Kaustav SG 2008). The Bharatiyas estimating 67% of the young population lives in the rural (R1, R2 to R4 SEC) areas with least influence of globalization, high traditional values. They are least economically privileged, most family oriented Bollywood influenced generation. The Indians constitute 31.5% (A, B,C, D & E SEC) and have moderate global influence. They are well aware of the global trends but rooted to the Indian family values, customs and ethos. The Inglodians are basically the creamy layers (A1,A SEC) and marginal (1.5% or roughly three million) in number though they are strongly growing (70% growth rate). Inglodians are affluent and consume most of the trendy & luxury items. They are internet savvy & the believers of global-village (a place where there is no difference between east & west, developing & developed countries etc.), highly influenced by the western music, food, fashion & culture yet Indian at heart.








Wednesday, March 30, 2011

Tata Nano story : the downfall saga



As per the available report : "Tata nano the wonder car from Tata motors group has not shown up impressive sales figures as the sale of the India's smallest and cheapest car saw a decline of 509 units in November when compared to last month's sales of 3,065 units.”
(Source: http://www.cardekho.com/india-car-news/tata-nano-sales-drop-in-november-2010-3205.htm). The much talked cheapest car is now facing a downfall in sales.
 



 

As I have understood with my decades experiences in socio-psychology of India, the “car” is not supposed to be the “cheapest” to sell in this country (it is not a staple need till date) neither it is perceived to be as affordable to 80% of India. Unfortunately, Mr. Tata understood it wrongly.
Car, in India, is not a “consumable FMCG product” but an “asset” and like all the assets, a car is supposed to be “valuable” and “long lasting” product which will give maximum return in long run.
Tata nano was targeted to Mass and middle class India (Bharatiyas and Indians, in my socio-psychological segmentation) as a replacement of two wheeler! Actually, for them a car is an “investment” of their “hard earned money”.
As Mr. Dheeraj Sinha, the Chief Strategy Officer, Bates 141 (writer of the book ‘Consumer India: Inside the Indian Mind and Wallet') rightly stated “One reason Tata Nano has not taken off is because it was seen as a cheap car. That's a symbol enough to say that even that mass segment of buyers is seeking a premium, in the sense that they are seeking an upgrade, and not value for money. Value has to fall into place but it is one of the drivers, not the only driver.Brands, in the rural space, need to add a bit of imagery to themselves. Those consumers are reaching out to brands that are giving them that sense of premium. We see that across the spectrum, from shampoos and deodorants to mobile handsets. Rural India is seeking a sense of moving up in life, a sense of pride.” (Source: http://www.thehindubusinessline.com/features/brandline/article1543730.ece)

So, instead of pushing nano as the cheapest car made for “have not’s”, Mr. Tata should try to push nano as a car for in’glo’dians who will use it as consumable car for “daily use” (kind of use and throw).

recent report on nano and how Tata is trying to promote the car through extended services: http://www.autoblog.com/2011/01/03/report-tata-nano-sales-stage-big-rebound-in-december/

1 comment:

Bhupendra kumar said...

Nano was the most anticipated and dream project of Tata but after a great debut its really disappointed by its performance.According to me its a best choice if you are buying CNG and diesel version.On road price of Tata Nano is in the reach of a common Indian.