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Tag: Consumer Research

  • What Does the Persona of an Average Indian Consumer Look Like?

    India accounts for 1/5th of the world’s youth market. It means that a majority of buyers in India are within the age bracket of 18-25 which are easy to influence. Many businesses identify this as an opportunity to seize a large market share. However, Indian consumers are hard to advertise to and sell to as there is diversity in cultures, ethics, income groups, family structures, and many other factors.

    Big companies like Netflix, Chevrolet, and Danone couldn’t appeal to Indian consumers and failed miserably. In the 1990s, the main target group for businesses was middle-class consumers which catered to 200 million people. Three decades later, not only did the consumer change but businesses’ approach to the Indian market has also changed.

    Segmentation of the Indian Consumer Market
    Indian Consumer Market Trends

    Segmentation of the Indian Consumer Market

    A crucial aspect of understanding the Indian consumer market is segmenting. Since there is so much multiplicity, it is sensible to segment and then target the consumers.

    There are three major categories to segregate the consumers: family structure, affluence, and urbanization.

    Family Structure

    Indian family structure shifted from joint to nuclear family over the past 2 decades. The nuclear family rose to 70% in the past two decades and is expected to rise to 74% by 2025.

    Another trend is a transition to single households where a majority of people are living alone in cities for work. How does it impact purchases? A nuclear family is bound to spend 20-30% more than a joint family. Also, people who live alone often make purchases driven by lifestyle choices instead of functional needs.

    Affluence

    Indian people can be categorized into 5 groups based on their annual gross household income level:

    • Elite (>$30.8k)
    • Affluent ($15.4k-$30.8k)
    • Aspirers ($7.7k-$15.4k)
    • Next billion ($2.3k-$7.7k)
    • Strugglers (<$2.3k)

    Amongst these, the top consumer groups comprising 40% are – elite and affluent. Their spending was 27% in 2016 but grew at a significant rate. India is witnessing a shift towards materialism and rising affluence. People are focusing on working more and earning more with an average 50-hour work week.

    They prefer to buy an expensive alternative if it is of greater quality. As a result, the elite and affluent categories spend almost ten times more than strugglers on women’s apparel and food & beverage. However, Other groups with middle and low income are dissatisfied with their income which directly impacts consumer behaviour. Nonetheless, aspirers are influenced by social media and trading up.

    Brands like L’oreal, Lakme, and Samsung have been able to crack the code and segmented their product well to set foot in India. They have a wide range of products targeting different sets of income groups. As a result, they capture a bigger market and sustain in India for a longer period.

    Urbanization

    40% of Indian consumers are urban people which accounts for 60% of consumption. Nevertheless, the emerging cities are growing at a fast pace and increasing their expenditure at a 14% per year rate.

    The restricted growth is the result of a value-for-money mindset, conventional financial perspective, and local cultural association. Even though they have the will to purchase but do not have a market catering to their needs and purchasing power.

    All these categories highlight the heterogeneity in Indian markets. Hence, businesses need to segment their offering and capture the Indian market tactfully. It is crucial to understand the customers and their buying choices.

    Buying choices depend upon 3 factors: product penetration, frequency of occasion, and spending per purchase. As a brand, you need to look into these three factors that directly impact buying choice and segment accordingly.

    The Indian consumer market evolves daily. In fact, a consumer choice might vary depending upon the product category. For instance, a consumer might splurge on the hotel while travelling but have a saving mindset for transportation. Similarly, a consumer might save on food and beverage but spend more on cosmetics.

    Here are 7 trends influencing Indian consumers.

    Time Compression

    India witnessed a rise of 30% in the ready-to-eat meal in the last few years. It is the result of two factors. One is the transition in family structures and the other one is time compression. People are choosing time and convenience over money and are willing to pay extra to receive an end-to-end solution.

    Omnichannel

    Consumers are opting for omnichannel shopping. Consumers, depending upon the product category, opt for a mix of both online and offline touchpoints. Fast-moving consumer goods reported an entire offline or online purchase. Nonetheless, businesses need to focus on providing exceptional online and offline experiences to their customers.

    Materialistic Youth

    As mentioned above, a major of the Indian market is young people in the age bracket of 20-35. This group focuses on lifestyle purchases and spends on premium goods. It is also characterized by single adulthood and nuclear family which impacts buying choices.

    Instant gratification

    Impulse buying is rising as people are moved by instant gratification. People are influenced by social media and often purchase to fulfill gratification. Impulse buying accounts for 40% of purchases. PVR India makes up to 54% of its market share by impulse buys solely. No wonder, Swiggy and Zomato were able to set their market share in India.

    Value conscious

    People are becoming value-conscious where they focus on product quality. As a result, brands that cater to affluent or elite markets are able to capture a larger audience. If the perceived value is low the brand might flunk. Another reason is the dominance of youth in the Indian market that aims for the value and longevity of products.

    Emotional appeal

    Brand recognition and emotional appeal are crucial for Indian consumers. This is the reason that Maggi wasn’t wiped out from the market even after the allegation was raised against it. Also, brands like McDonald’s and Dominos monetize on emotional appeal instead of other factors like premium quality ingredients. Indian consumers are driven by emotions and make emotional purchases.

    Digital Footprint

    COVID had a huge impact on consumer purchase trends. People shifted to online markets for the majority of purchases. Even though offline stores still have a fair market share, online channels impacted buying decisions and impulse purchases.

    Social media and other digital channels significantly shape buyers’ purchase choices. Online purchases are predicted to rise from $90 million to $350 million by 2025.

    Also, eCommerce boomed online purchases which lead to rising impulse purchases. People switched from window shopping to strolling on eCommerce websites. E-commerce markets are expected to grow from $50 billion to $500 billion by 2025.

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    Conclusion

    Businesses need to aim at a larger market by segmenting their target market and placing products at various price tiers. If they wish to capture a larger market, they have to create multiple offerings catering to diverse groups.

    The best example would be Samsung which offers both low-mid range phones and expensive phones covering a larger market. This is why it tops the market share in the Indian smartphone market with a 22% market share. Consumption will rise to $25 trillion by 2025. Brands should clearly study their audience and target accordingly.

    FAQs

    What are the types of buying behaviour typical of Indian customers?

    The types of buying behaviour are Extended Decision-Making, Limited Decision-Making, Habitual Buying Behavior, and Variety-Seeking Buying Behavior.

    How has the Indian consumer changed?

    Indian consumers have become more aware and conscious of quality. Many consumers have shifted to online markets for the majority of purchases

  • How to Do Cold Call? | Tips and Tricks of Cold Calling

    There are numerous ways of marketing, businesses use to make their products visible and sell them to the customers. There are different selling processes, that are used to get the potential buyer attracted to the product or services. One of the processes that are actually very popular and are used frequently by almost every business is cold calling. It means calling on a prospective customer for the first time without any prior appointment at a commercial establishment or household.

    Cold calling is the source of telemarketing also known as canvassing or prospecting. This also includes the case of consumer door-to-door selling as door-knocking. Generally, Cold calling is an important stage and technique of the selling process. Cold calling abilities are not only useful in business aspects but also in many other aspects of work communications outside of sales activities and the selling function.

    Imagine receiving a call from an unknown caller. Immediately after receiving the call, the caller starts to question your knowledge about a product. Quickly the conversation turns into an interview. Eventually, the caller tries to sell a product to you. What would be going on in your mind during this entire conversation? Now flip the tables and imagine that you are the one making the cold call. In this article, we talk about some cool tricks and tips that will help you close the deal while making a cold call. So let’s get started.

    What is Cold Calling?
    Tips to Follow Before Making the Call
    Tips to Follow During the Cold Call

    What is Cold Calling?

    To be specific cold calling is an e-commerce terminology used to define a telemarketing strategy for pitching a sale through a phone call to a random potential customer. This can prove to be a rather frustrating business especially after receiving several no’ feedbacks. However, there is a way of turning those no answers into opportunities for closing the deal in the next attempt. It all depends on the caller’s mentality, strategy, preparedness and ability to listen.

    Although people say that cold calling is dead but there are many businesses relying on it to drive revenue. From companies like Uber, Twitter to Fortune 500 companies or high-growth startups, all have sales representatives enthusiastically dialling numbers day in and day out. If done appropriately it can be a source of both personal as well as business success.

    Tips to Follow Before Making the Call

    Some of the tips that one needs to follow before making a cold call are:

    Make a Call Strategy

    In order to make a successful sales pitch, a strategy is crucial. Before making the call, research thoroughly about the potential client, company or organization. Know their needs very well. Learn what trade the client is involved in, their latest purchases and who sold to them. Understand all the features of the product you want to sell and seek a better way of explaining an improved version of yours.

    Try to understand the best time to call since the client doesn’t know you at all. The best time to call varies from one company/individual to another, depending on the nature of the business. Some people are ready for phone conversations in the morning hours, others during the day, while others late afternoon. Do not call during lunch hour breaks and definitely not at night (bedtime). Also, some early morning hours that is when management meeting is being held, might not be a better time to call.

    Next, comes preparing yourself mentally before making the call. Like choosing the language you’re comfortable in otherwise the conversation will become awkward. You have to develop a warm voice that is strong but not sugar-coated.

    Do The Research Properly

    Be sure to research your potential client or target to know more about them for good and meaningful interaction. You can check out the social media platforms (Facebook pages, LinkedIn, Twitter feeds), and company websites. On these pages, you will be looking for the target’s professional background, nature of the industry that the target is involved in, competitors, commonalities, interests and others. While researching, look for the company email, or messenger handles and drops a brief statement introducing yourself, the company and the product. Then place the call.

    Prepare Your Opening Statement

    As part of the preparation for the cold call, draft an opening statement to reposition yourself for the call. Basically, this is an indication to the caller that you have a subject to talk about and not just a waste of his/her time. Make the statement sound very friendly and not too official.

    Be a Good Listener

    Remember that listening is a skill that is learned over time. If your initial calls got hanged up due to poor listening skills, don’t give up. Continue to learn from the proceeding calls. As a salesperson on the phone, remember people are emotional callers. As you are in a phone conversation with a potential client, listen through their emotions what the client is saying.

    Ensure that the call flow is as natural as possible and not make it sound like an interview. Have a notebook and a pen to take down notes while listening. They might mention a number of things that are important for your sales pitch. Note those things down and ask yourself how you can meet those needs with your product. Again, speak naturally as if with a friend, but convincingly as with a potential client.

    Be Positive

    Potential clients are regular, people going about their day to day business just like everyone else. The mentality should be that of a normal person experiencing life, with needs just like any other person. It all comes down to how the sales caller understands the market. The salesperson ought to understand the market as a business platform with people who need to be talked to about products.

    The attitude of a salesperson on the phone should be that of if they get rejected, it’s not them but the product. With a never-back-down attitude, a phone call rejected leaves you with information about what the market is like to equip you for the next call attempt. Move on to the next call with positivity that you might mention a product that will click with someone’s needs.

    Strategize to make as many calls as possible during the day. Out of 35 calls a day, 20 might be answered. Eventually, you might make about 8 – 10 close ins. If out of 30 calls only 10 get answered, be optimistic that the next day you might do better than that. Too many connections mean more opportunities for making a sale, don’t get disheartened easily.

    Tips to Follow During the Cold Call

    While making the call some of the steps that the caller needs to flow are:

    Perfect Your Calling Style

    It is very important to perfect your calling style before making any calls. This can be done alone or with the help of a friend. If you are self-conscious about phones, you need to make yourself feel safe and uninhibited. The best way of doing this is by standing in front of the mirror and rehearsing your script. Our exterior reflects our inner turmoil, so if you look anxious, your voice will sound strained and distant.

    Attract the Potential Customer

    Once you have the decision-maker on the phone, try to captivate and keep their attention. You have to really make them listen to what you have to say. Some people have natural charisma to capture the attention of the listener. According to sales gurus, it is not about what you say but about what you hear. The key is to read the thoughts of your prospect’s mind.

    Don’t Be Afraid of Rejection

    Do not be afraid to hear ‘No’. Not everyone will become your customer, that doesn’t mean you will give up. Do not let your fear of failure rule you rather turn it into fearlessness, learn from it and get ready to call the next prospect.

    Avoid Distractions During Call

    Do not multitask during a call this might distract you from saying something which you might regret later. Keep your focus intact while making the calls, this will not only hold their attention but through this people can also hear the confidence in your voice.

    Know Your Product

    Before making a pitch to anyone learn about your product thoroughly. Spend some time to know about the technical side of your product and how it might be of value to your customer. This will come in handy especially if you’re selling technical products or services.

    Be Clear About Your Goal

    Realise what your aim is, even though, you might have to move off-topic to keep the conversation going. Move back again to the same topic to fulfil your goal close the deal.

    Be Prepared to Deal With Aggressive Prospects

    Many times the customer might be aggressive and hostile. They might just be having a bad day or they might be bullies by nature. Anyhow, do not give them the charge, that doesn’t mean, you have to be rude. Just handle the situation tactfully because the reputation of your company is in your hand.

    Conclusion

    The fact about cold calling is that no prior contact has been made with the potential client. Therefore, a rejected call should not be any offence at all. Keep trying, the next one might be answered and a deal can be fixed.

  • How PepsiCo Uses AI in Production, Advertising, and Customer Research?

    Food companies are adjusting their ways of creating and advertising their products to keep up with the trends. Food industries are influenced by technological improvements either directly or indirectly. Artificial Intelligence (AI) is having an impact on food production and processing, making it easier and faster for businesses to create products.

    PepsiCo is a wonderful example. PepsiCo is a clever AI user who understands the value of machine learning and the application of new technology. It is a well-known food and beverage company that is responsible for a number of well-known brands, including Pepsi, Miranda, Tropicana, Lays, Kurkure, and Mountain Dew. PepsiCo’s global net revenue was over 70.37 billion dollars in 2020. PepsiCo has attempted everything from utilising Snack Delivery Robots to recruiting robots.

    PepsiCo – Artificial Intelligence in Production
    PepsiCo – Consumer Research with AI
    PepsiCo – Pep Worx Data Analyst
    PepsiCo – AI for Advertisement
    PepsiCo – Robot Vera To Interview Candidates
    Conclusion
    FAQs

    Pepsico Uses AI in marketing

    PepsiCo – Artificial Intelligence in Production

    Pepsi, as one of the world’s largest food and beverage companies, is constantly at the cutting edge of technology, investing substantially in artificial intelligence technologies to increase practically every aspect of its operations. Fortunately, it has the sufficient capital and expertise to put in place the tech required to make things go effortlessly.

    Shameer Mirza, senior research and development engineer at PepsiCo, understood that artificial intelligence might be used in a variety of ways to improve manufacturing process management. Mirza then created a machine learning technique that could be combined with a visual system to estimate the mass of treated potatoes. The corporation was able to save a significant amount of money because it no longer had to pay $300,000 per line (they had 35 in the United States alone) for measuring equipment. Mirza’s solutions rely solely on a camera and a computer vision model, and are basically nothing more than extra sample points obtained at no cost.

    Machine learning is helping the manufacturing unit of Frito-Lay, a PepsiCo subsidiary. One prototype uses lasers to impact chips, then listens to the sounds they make to detect texturing. To digitize the performance analysis for Frito-chip Lay’s production plants, software evaluates audio and estimates chip texture.

    PepsiCo has initiated a global training program on innovative machine learning and artificial intelligence for its internal marketing associates, in order to expand their team’s ability to use such innovations to start bringing perspectives that will improve their production plants.

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    PepsiCo – Consumer Research with AI

    AI is rapidly being used by businesses for manufacturing processes and data collection. Consumer research is one of the most important avenues here. In the past, such studies relied on data from survey data, which isn’t necessarily credible.

    Thankfully, artificial intelligence (AI) is assisting academics in carefully sorting through information, identifying trends, and noting relevant insights. We can evaluate consumer insights deeply and quickly using a mixture of qualitative and quantitative analytics, artificial intelligence, and social networks. As a result, patterns and trends emerge, allowing for thorough market research into critical consumer insights.

    Tastewise, an AI tool, is used by PepsiCo to identify and anticipate food trends. Tastewise, which was founded by former Google Chief Marketing Officer Alon Chen, employs artificial intelligence to analyse massive volumes of culinary data available online. Tastewise promises that its platform has analysed more than 95 million menu items, 226 billion recipe interactions, and 22.5 billion social media posts, among so many other things, for companies such as Nestle and General Mills. PepsiCo gains a better sense of what customers are interested in as a result of these insights. PepsiCo adopted seaweed as a flavoring for savoury snacks as a result of the findings given by this algorithm—input that might not have come up in survey data.

    Pepsico uses AI for flavors

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    PepsiCo – Pep Worx Data Analyst

    Pep Worx, PepsiCo’s in-house big data and analytics platform, assists the firm and its partner companies in identifying valuable consumers by area, allowing for better product array and merchandising decisions. Stock choices, product positioning, and advertising techniques can all be aided by the system.

    According to Supermarket News, PepsiCo used Pep Worx to identify 24 million households from a dataset of 110 million US households to plug into unexpressed demand for its Quaker Overnight Oats, single-serve cups of dry oats soaked overnight in milk or yoghurt in the fridge to get a nutritious, cold breakfast cereal by the early hours.

    These victories mark the end of PepsiCo’s long journey to big data, which included decades of analysis and experiments before arriving at Pep Worx. Its first application of big data was to gain a better understanding of its one billion customers and to simplify its supply chain across its 200+ countries of operation. This information was largely in the form of compact documents before being released via Pep Worx.

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    PepsiCo – AI for Advertisement

    Many experts believe that AI is the future of advertising and PepsiCo understands it fully. From ad design to targeting specific to ad buying, AI is revolutionising what is possible in terms of advertising. One of the most difficult tasks for advertisers is to ensure that the correct audience is targeted. AI may scan a variety of data sources to assess the likelihood of a user completing a given action, resulting in more successful and proactive marketing. To reach potential customers and expand the sales process, AI can develop look-alike communities based on previous efforts.

    Machine intelligence in branding aids advertising agencies in making better use of buzzwords to quickly target buyers. The AI marketing approach and solutions enable digital marketers to reach consumers more effectively and increase income.

    PepsiCo – Robot Vera To Interview Candidates

    The organisation conducts phone interviews with job applicants and answers their questions about offered positions using the Robot Vera technique developed by a Russian corporation. The robot interviewer can examine 1,500 job applications in nine hours, compared to nine weeks for human recruiters. PepsiCo has designed Robot Vera to make calls to job seekers using powerful speech recognition technology, diverting its hiring crew to other tasks.

    It uses Vera to assess candidates for occupations like forklift delivery drivers and industry employees, as well as to hire salespeople. The system can examine CVs on job sites continuously and call candidates who meet the criteria, conducting up to 10,000 calls at once.

    Conclusion

    Artificial Intelligence, according to PepsiCo and many other corporations, is the key to surviving in an oversaturated market. PepsiCo employs machine learning for a variety of purposes, including production and the recruiting of new employees. The number of food and beverage companies utilising artificial intelligence for everything from supply chain planning to customer transparency is growing, as is the number of supply chain management applications. And PepsiCo is well aware that Artificial Intelligence is the way of the future.

    FAQs

    What technology does PepsiCo use?

    PepsiCo employs AI and machine learning in a variety of ways across the company.

    Who are PepsiCo competitors?

    Some among the PepsiCo’s top competitors are:

    • Keurig Dr. Pepper
    • Danone
    • Nestle
    • Britvic
    • Red Bull
    • Mondelez International
    • Monster Beverage

    Why is PepsiCo so successful?

    The company’s success stems from its ability to keep on top of new trends and lifestyles, providing customers with the flavours and comforts they demand.