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  • Revival of India’s Toy Industry

    A joint report by industry bodies FICCI and KPMG had estimated that the Indian toy industry was worth USD 1 billion in FY 2019-2020 which would double by FY 2024-2025 to reach USD 2 billion. These figures are low compared to the global worth of the toy industry which stands at a whopping 120 billion.

    This is a massive change from a decade ago when the Indian market was flooded with imported toys with eight out of ten toys being predominantly imported from China. The import worth of toys in the year 2014 was USD 3.28 billion and USD 19.36 billion in 2015 – six times higher than the export. The Indian toy industry was ailing due to a lack of investment and technology as well as competition from cheap imported toys. Also, traditional toys were long forgotten and the local industry was in shambles with 40% of manufacturing units closing permanently and a further 20% on the brink of shutting down.

    Approximately three years ago, the industry turned on its head as it grew to become a net foreign exchange earner. Exports increased by 61.4%  from USD 202 million in FY 2018-2019 to USD 326 million in FY 2021-2022 while imports decreased by 70% from USD 371 million to USD 110 million during the same period.

    What Changed?
    Conclusion

    What Changed?

    The global disaster of the covid-19 pandemic caused a severe disruption in supply in the year 2020. This became a blessing in disguise in a combination with rising governmental support for the dwindling toy industry.

    Introducing New Policies

    The Indian government introduced two key initiatives. February 2020 saw an increase in basic customs duty from 20% to 60%. Then a year later, in January 2021, it issued a Toys Quality Control Order, which made it mandatory for all toy manufacturers, domestic and international, to get a Bureau of Indian Standards (BIS) certification for selling toys in the Indian market. As per the specifications, all toys for children under 14 years of age must conform to 7 Indian quality standards. These supportive measures had the combined effect of curbing cheap as well as high-quality imports and encouraging local manufacturers to flourish. The immediate effect was on the long-standing public health concerns surrounding Chinese toys, 67% of which were found to be highly toxic.

    BIS Certification
    BIS Certification

    The introduction of the BIS rules also heightened India’s stance with its major markets like the United Kingdom, Germany, and the Netherlands in Indian exported toys maintaining international standards. It also encouraged many toy importers to enter the manufacturing space to export Indian toys to markets in West Asia and Africa.

    Drawing the Attention of Multiple Players within the Industry

    A National Toy Action Plan was introduced in the year 2020 to boost domestic manufacturing of toys as per the ‘Make in India’ plan and make the market more competitive. The India Toy Fair was launched in 2021 providing a platform for toy manufacturers to exhibit their creations. This led to a direct connection with end customers who could purchase toys from them.  Also, this provided an excellent way for traders to assess the industry’s potential.

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    Creating Toy Clusters

    A program named SFURTI (Scheme of Fund for Regeneration of Traditional Industries) was launched. Under this program, Toy Clusters will be created aiming to bring together in-campus business support services that will include business accommodation and social infrastructure to support the entire workforce working under the Toy Clusters. These Toy Clusters will enfold different business services involved in toy making like raw material suppliers, shared infrastructure, research and development, design and prototyping, testing, training, quality certification, customs, ancillary industries, and service providers. The Indian government has approved a total of USD 23 billion for constructing 8 toy manufacturing clusters – 3 in Madhya Pradesh, 2 in Rajasthan, and 1 each in Uttar Pradesh, Karnataka, and Tamil Nadu.

    Launching the PLI Scheme

    The Government of India is planning to launch a Performance Linked Incentive
    (PLI) Scheme worth USD 35 billion that is specifically for Indian toy manufacturers making both traditional and mechanical toys. Applicable for five years, this scheme will apply to BIS-compliant toys subsidizing the sale of toys by local manufacturers.

    India hits Chinese Toy Market as Indian Kids Now Play with Made-in-India Toys

    Utilizing E-commerce

    Digital India’s proactive approach is ensuring that toys manufactured in India are slowly and surely gaining more presence on popular e-commerce sites like Amazon and Flipkart. Indian toys are also available on the government website GeM.

    The proactive measures taken so far by the Indian government to revive the toy industry are highly encouraging as toy manufacturers are seeing newer opportunities. These measures are also helping India in building its image as a trustworthy destination for quality manufacturing. The scope for growth of the Indian toy industry is great which will also boost employment in direct and indirect jobs within the industry.

    Ajay Agarwal, President of the Toy Association of India said – “Now several makers are manufacturing toys based on Indian ethos and culture. Icons like Chhota Bheem are very popular and several manufacturers have the license to manufacture them.”

    Conclusion

    The Indian government’s move to prohibit the sale of non-certified toys is being hailed as a game-changer and a major booster for the Indian toy manufacturing industry. Added to that, the various hand-holding schemes launched by the government are also helping to set up more manufacturing units. The industry is on the path of strong growth and expansion with the talent and ability to become a global toy manufacturing hub as more and more international brands are also exploring the possibility of setting up their manufacturing units in the country.

    FAQs

    Is the toy industry growing in India?

    The Indian toys market reached USD 1 billion in FY 2019-2020. Looking forward, the market is projected to reach US$ 2.73 billion by 2027, exhibiting a CAGR of 12.6% during 2022-2027.

    What changed the Indian toy industry?

    Below are the factors that changed the Indian toy industry:

    • Introducing new policies
    • Domestic manufacturing of toys as per Make in India
    • Creating Toy Clusters
    • Launching the PLI scheme
    • Utilizing E-commerce

  • How Does Netflix’s Marketing Keeps Subscribers Hooked?

    Netflix is a popular streaming service that provides users with access to a wide variety of TV shows, movies, and documentaries. It was founded in 1997 by Reed Hastings and Marc Randolph in California, USA. Initially, the company was focused on providing DVD rentals by mail but in 2007, it started its online streaming service, which is now the main focus of the company.

    Netflix offers users the ability to stream content on a variety of devices, including smartphones, tablets, smart TVs, and gaming consoles. It provides users with personalized recommendations based on their viewing history and has a range of features that make it easy to find new content to watch.

    Netflix has a vast library of original content, which includes TV shows, movies, and documentaries. Some of its most popular original content includes Stranger Things, Narcos, The Crown, and House of Cards. It also licenses content from other studios, including popular TV shows like Friends and The Office.

    The company has grown rapidly since its inception and now has over 200 million subscribers in over 190 countries. It has become a major player in the entertainment industry and has disrupted the traditional TV and movie industry with its innovative business model.

    The Story of Netflix

    NetflixTarget Audience
    Netflix Marketing Mix
    Netflix Marketing Campaigns
    Netflix Marketing Strategies

    Netflix Target Audience

    Netflix’s target audience is quite broad and includes individuals of all ages and demographics who are interested in streaming TV shows, movies, and documentaries. However, the company primarily targets younger adults and families with its content offerings.

    Netflix’s content strategy is focused on producing a wide variety of original programming to appeal to a diverse audience. They offer content in a range of genres, including action, comedy, drama, romance, and documentaries, so there is something for everyone.

    Additionally, Netflix’s algorithms provide personalized recommendations based on a user’s viewing history and preferences, which helps to further tailor the user experience to their interests. This approach has helped to attract a loyal user base who are willing to pay a monthly subscription fee to access the company’s vast library of content.

    Overall, while Netflix’s target audience is broad, the company’s content and marketing strategies are primarily focused on younger adults and families who are interested in streaming TV shows and movies.

    Netflix Marketing Mix

    The marketing mix, also known as the 4Ps, is a set of tools that companies use to promote and sell their products or services. The 4Ps include product, price, promotion, and place. Here is how Netflix utilizes the marketing mix:

    • Product: Netflix’s product is its streaming service, which offers a vast library of TV shows, movies, and documentaries. In addition to licensing content from other studios, Netflix has also invested heavily in producing original content, which has become a major draw for its users.
    • Price: Netflix offers a subscription-based pricing model, with three tiers of service: Basic, Standard, and Premium. The prices vary depending on the features offered, such as the number of screens that can be used simultaneously and the quality of the streaming video. The company also offers a free trial period to new users.
    Subscription-Based Pricing Model
    Subscription-Based Pricing Model
    • Promotion: Netflix’s promotion strategy is focused on creating buzz around its original content through social media, advertising, and content marketing. The company uses targeted advertising on social media platforms to reach its target audience and has also partnered with influencers and celebrities to promote its content.
    Netflix – Play Something
    • Place: Netflix is an online-only service, so it doesn’t have a physical location. Users can access the service on a wide range of devices, including smartphones, tablets, smart TVs, and gaming consoles.
    Netflix - Online-only service
    Netflix – Online-only service

    Netflix’s marketing mix focuses on providing a high-quality streaming service at different price points while promoting its original content through targeted advertising and content marketing. Its online-only business model allows users to access its service from anywhere, making it convenient and accessible to a broad audience.

    Netflix Marketing Campaigns

    Netflix has launched a number of successful marketing campaigns over the years to promote its content and services. Here are some examples:

    • Stranger Things: To promote the launch of its hit show Stranger Things, Netflix created a marketing campaign that included a retro-style poster, a fake trailer for a non-existent horror film called “The Hawkins National Laboratory,” and a social media scavenger hunt that involved finding hidden clues related to the show.
    Stranger Things – The Hawkins National Laboratory Campaign
    • Black Mirror: In anticipation of the launch of the show’s fourth season, Netflix launched a campaign called “13 Days of Black Mirror,” which included daily releases of trailers, posters, and behind-the-scenes footage on social media, culminating in the release of the entire season on the final day.
    • Bird Box: To promote its post-apocalyptic thriller Bird Box, Netflix launched a social media campaign that included a challenge for users to blindfold themselves and try to do everyday tasks, like walking, with the hashtag #BirdBoxChallenge.
    • The Crown: To promote the third season of its hit show The Crown, Netflix launched a campaign that included a takeover of The New York Times website, featuring articles related to the show’s historical events.
    • Stranger Things x Coca-Cola: In a collaboration with Coca-Cola, Netflix released a limited edition “New Coke” product, which was featured in the third season of Stranger Things. The partnership also included a retro-style commercial for the product, featuring characters from the show.

    Netflix’s marketing campaigns are known for their creativity and ability to generate buzz around its content, leveraging social media and partnerships with other brands to reach its target audience.

    Netflix Marketing Strategies

    Netflix’s major marketing strategies can be summarized as follows:

    • Content Creation and Curation: Netflix’s primary strategy is to create and curate high-quality original content that appeals to its target audience. The company spends billions of dollars annually on producing original series and films to keep users engaged and attract new subscribers.
    The Crown - Netflix's Original Series
    The Crown – Netflix’s Original Series
    • Personalization: Netflix uses algorithms to personalize content recommendations for individual users based on their viewing habits, preferences, and history. By offering a personalized experience, Netflix is able to keep users engaged and satisfied, leading to longer subscription periods and increased revenue.
    • Social Media and Influencer Marketing: Netflix leverages social media platforms to build brand awareness and promote its content. The company also partners with influencers and celebrities to reach new audiences and generate buzz around its shows and movies.
    • Data Analytics: Netflix uses data analytics to gain insights into user behavior and preferences. By analyzing user data, Netflix is able to optimize its content offerings and marketing campaigns to better meet the needs of its users.
    • Customer Engagement: Netflix engages with its customers through various channels such as social media, email, and push notifications. The company uses these channels to communicate with its customers, offer personalized recommendations, and provide updates on new content releases.
    • Pricing Strategy: Netflix offers multiple subscription plans at different price points to appeal to a broad range of users. The company also offers a free trial period to new users to encourage them to sign up.
    • Partnerships and Co-Branding: Netflix has partnered with other brands such as Samsung, Apple, and LG to integrate its app into their devices. The company has also collaborated with other brands such as Coca-Cola and Uber to promote its content and services.

    Overall, Netflix’s marketing strategies focus on creating and curating high-quality content, offering personalized recommendations, engaging with customers, and leveraging partnerships and data analytics to attract and retain subscribers.

    If you work in the service sector, we hope these insights may be useful to you as you develop a marketing plan for your company.

    FAQs

    How much does Netflix cost?

    You can watch Netflix on your favorite device – smartphone, tablet, smart TV, laptop, or streaming device – with a fixed monthly fee starting from $12.98 up to $21.98.

    What type of content does Netflix offer to its subscribers?

    Netflix offers diverse content to subscribers, ranging from TV series, movies, and documentaries to stand-up comedy, kids’ shows, and international productions, including original content such as award-winning series like Stranger Things and The Crown.

    How does Netflix use data analytics to provide personalized recommendations to its viewers?

    Netflix uses data analytics to provide personalized recommendations to its viewers through its recommendation algorithm. The algorithm analyzes a user’s viewing history, ratings, search queries, and other data points to identify patterns and make predictions about the content the user may be interested in.

  • Walmart’s Marketing Strategies: The Largest Retailer in the World

    Walmart is a global retail company with headquarters in the US. Sam Walton launched the business in 1962, and it has since developed into one of the leading retailers worldwide. Almost 2.3 million people are employed by Walmart, which runs over 11,000 locations across 27 countries.

    Walmart offers an extensive range of products at affordable costs, including food, electronics, apparel, home goods, and more. The business operates under several distinct names, including Walmart, Sam’s Club, and Jet.com.

    Walmart is renowned for its effective inventory and supply chain management systems, which enable the business to provide cheap pricing while upholding high standards of customer service. Also, the business provides a wide range of services, such as Walmart Pay, online grocery buying, and free two-day shipping on several products.

    Walmart has recently placed a strong emphasis on sustainability and social responsibility, establishing challenging targets for cutting emissions and waste while also aiming to enhance working conditions for staff members in its supply chain.

    Despite criticism over its labor policies and effects on small companies, Walmart continues to be a significant player in the retail sector, having a significant presence both domestically and abroad.

    Walmart Target Audience
    Walmart Marketing Mix
    Walmart Marketing Campaigns
    Walmart Marketing Strategies

    Walmart Target Audience

    Walmart usually caters to a wide range of people. With a large selection of low-cost items, the business hopes to cater to clients of all ages, genders, and socioeconomic sectors.

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    Walmart nevertheless targets a number of distinct client niches. A few of these include:

    • Consumers searching for value and affordability: Walmart is renowned for having low pricing on a variety of goods, which draws in people on the hunt for both.
    • Families: Walmart provides a range of goods catering to families, such as food, baby supplies, toys, and household necessities.
    • Customers in rural areas: Walmart has a big presence there and may be the only major store in the region.
    • Shoppers who are tech-savvy: They find Walmart more appealing now that the company has made investments in its online store platform.
    Walmart Online Store Platform
    Walmart Online Store Platform
    • Customers who value health and wellness: Walmart has increased its offering of organic and natural items and pharmaceutical services to entice customers who place a high priority on these factors.

    Generally, a diverse group of people makes up Walmart’s target market, but the corporation places a strong emphasis on providing cheap costs, convenience, and a large variety of goods to satisfy those demands.

    Walmart Marketing Mix

    The four Ps make up Walmart’s marketing mix: product, price, location, and promotion. The way Walmart treats each of these components is broken down as follows:

    • Product: Walmart sells a large variety of goods under both its own and other brands, including food, electronics, apparel, household goods, and more. Walmart’s product strategy is centered on offering customers high-quality, reasonably priced goods that satisfy their demands.
    • Price: Walmart leads the discount retail sector by offering its items at the lowest cost feasible. This pricing approach has helped Walmart become a market leader. The business keeps costs down by using its effective inventory and supply chain management systems, and it then passes those savings on to customers.

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    • Place: Walmart has a sizable and expanding network of stores, both domestically and internationally, that are well-placed to cater to customers in a range of markets. Walmart provides online shopping and grocery pickup services in addition to physical locations to give customers more convenience.
    • Promotions: Advertising, sales promotions, and public relations are just a few of the promotional strategies Walmart uses. The business makes significant investments in advertising, reaching consumers through a range of platforms including TV, print, and internet media. Also, Walmart runs sales events with discounts and coupons to entice shoppers to buy things.

    In addition to the four Ps, Walmart has recently placed an emphasis on sustainability and social responsibility, trying to cut emissions and waste while also enhancing working conditions for staff members in its supply chain. These initiatives now play a significant role in the company’s overarching marketing strategy.

    Walmart Marketing Campaigns

    Walmart has launched several marketing campaigns over the years to promote its products and services. Here are a few examples:

    Save Money, Live Better

    This is Walmart’s long-standing tagline, which communicates the company’s commitment to offering low prices and high-quality products to its customers. The tagline has been used in various advertising campaigns over the years, including TV commercials and digital ads.

    Walmart – Save Money Live Better

    Made in America

    Walmart launched a campaign in 2013 to promote American-made products and to support US-based manufacturing. The campaign included advertising, in-store signage, and partnerships with American manufacturers.

    Grocery Pickup

    Walmart has heavily promoted its grocery pickup service in recent years, which allows customers to order groceries online and pick them up at a Walmart store. The company has used a variety of advertising channels to promote the service, including TV commercials and digital ads.

    Walmart Grocery Pickup, how it Works, and Tips

    The Walmart Box

    Walmart launched a subscription box service in 2018, called “The Walmart Box.” The service sends customers a box of curated products every season, including items from Walmart’s private-label brands. Walmart has promoted the service through social media and email marketing.

    The Walmart Box
    The Walmart Box

    Famous Cars

    Walmart partnered with Universal Pictures in 2018 to launch a campaign featuring famous cars from movies and TV shows, such as the Batmobile and the DeLorean from “Back to the Future.” The campaign included in-store events and online promotions and was designed to promote Walmart’s automotive department.

    Overall, Walmart’s marketing campaigns have focused on promoting its low prices, high-quality products, and commitment to sustainability and social responsibility. The company has used a variety of channels, including TV, print, digital media, and in-store signage, to reach its customers.

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    Walmart Marketing Strategies

    Walmart’s success can be attributed to several key marketing strategies that have helped the company to build a strong brand and attract a large customer base. Here are a few strategies that have contributed to Walmart’s success:

    • Low Pricing Strategy: Walmart has been known for its “Everyday Low Prices” strategy, which involves offering products at lower prices than competitors. This pricing strategy has helped Walmart to attract customers who are looking for value and affordability.
    • Wide Product Selection: Walmart offers a wide range of products, including groceries, electronics, clothing, household items, and more. This selection of products has helped to make Walmart a one-stop-shop for customers, increasing convenience and attracting a larger customer base.
    • Efficient Supply Chain Management: Walmart has an efficient supply chain management system that helps to keep costs low and improve product availability. The company’s use of technology, including its advanced inventory management systems, has helped it to streamline its operations and keep prices low.
    • Strong Brand Identity: Walmart has built a strong brand identity around its commitment to offering low prices and high-quality products. The company’s “Save Money, Live Better” tagline, its blue and yellow logo, and its in-store signage all help to reinforce this brand identity and create a sense of familiarity and trust among customers.
    Walmart - Logo, and Tagline
    Walmart – Logo, and Tagline 
    • Customer Service: Walmart places a strong emphasis on customer service, offering a variety of services such as in-store pickup, online ordering, and free shipping. This focus on customer service helps to build loyalty and trust among customers.
    • In-store Promotions: Walmart frequently runs in-store promotions, such as “Rollback” discounts, to incentivize shoppers to make purchases. These promotions are often advertised on signs throughout the store.
    Rollback - Walmart's In-Store Promotions
    Rollback – Walmart’s In-Store Promotions 
    • Customer Loyalty Programs: Walmart provides “Walmart Rewards,” a customer loyalty program that enables consumers to accrue points for purchases. You may exchange these points for savings or other benefits.
    • Private Labels: Walmart offers a variety of private label brands, including Great Value and Equate, which provide goods at a lesser cost than national brands. Walmart is able to retain its reputation for low costs because of its private-label products.
    • Store Layout and Design: Walmart’s store layout and design were thoughtfully created to entice customers to stay longer and make more purchases. The layout of the store, for instance, frequently directs people away from popular items and encourages impulse purchases.
    How Walmart Gets You to Spend More
    • Social Responsibility: Walmart’s marketing plan places a strong emphasis on social responsibility issues including environmental sustainability and community participation. Walmart may attract clients that value corporate social responsibility by highlighting its commitment to these concerns.

    Overall, Walmart’s success can be attributed to a combination of low pricing, wide product selection, efficient supply chain management, strong branding, and excellent customer service. These marketing strategies have helped Walmart to build a strong brand and attract a loyal customer base.

    Hope you take inspiration from marketing strategies employed by Walmart to be a market leader and build strategies that suit your business.

    FAQs

    What is the target audience of Walmart?

    Walmart usually caters to a wide range of people. With a large selection of low-cost items, the business hopes to cater to clients of all ages, genders, and socioeconomic sectors.

    What are a few marketing campaigns launched by Walmart?

    Walmart has launched several marketing campaigns over the years to promote its products and services. Here are a few examples:

    • Save Money, Live Better
    • Made in America
    • Grocery Pick-Up
    • The Walmart Box
    • Famous Cars

  • Why Tesla Hasn’t Entered the Indian Market Yet?

    Hailed as one of the world’s most valuable companies, Tesla Inc., is currently the world’s most valuable automaker as well. An American multinational headquartered in Austin, Texas it functions in the automotive, artificial intelligence, and clean energy space. Tesla’s product repertoire boasts of designing and manufacturing electric vehicles (cars & trucks), battery energy storage (home to grid-scale), solar panels and solar roof tiles, and related products and services. In the year 2021, Tesla Inc. recorded the most worldwide sales capturing 21% of the battery-electric market and 14% of the plug-in market. Tesla Energy, a subsidiary of Tesla Inc., develops and installs photovoltaic systems in the US. The company is also one of the largest global suppliers of battery energy storage systems.

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    Founding
    Tesla’s Products and Expansion
    Tesla’s Global Expansion
    Tesla and India
    Conclusion

    Founding

    The company was incorporated as Tesla Motors, Inc., on July 1, 2003, by Martin Eberhard and Marc Tarpenning, who also served as CEO and CFO respectively. It was Eberhard’s vision to build a car manufacturer that was also a technology company with its core technologies as the battery, computer software, and proprietary motor. Their third employee, Ian Wright, joined the team a few months later. It was in February 2004 when the company raised USD 7.5 million in Series A funding that included USD 6.5 million from the enigmatic Elon Musk. With the highest amount contributed, Musk assumed the position of Chairman of the Board of Directors as he became the largest shareholder of Tesla. A couple of months later, by May 2004, J.B. Straubel joined the company as the Chief Technical Officer.

    It was in September 2009 that a lawsuit agreement by Eberhard and Tesla allowed all five – Martin Eberhard, Marc Tarpenning, Ian Wright, Elon Musk, and J.B. Straubel, to call themselves the co-founders of Tesla Motors Inc.

    Tesla’s Products and Expansion

    The first car that Tesla officially revealed to the public was the Roadster in July 2006 and began its production in 2008. Two years later, the company purchased the Tesla Factory in Fremont from Toyota for USD 42 million. This was to begin the production of their new offering – Model S. In June of the same year, Tesla Inc. also went public through its IPO on NASDAQ. Tesla launched its second car, the Model S luxury sedan in June 2012 which went on to become the first electric car to top the monthly sales ranking within the country.

    By the year 2015, Tesla entered the energy storage market and unveiled Tesla Powerwall and Tesla Powerpack battery packs. By September of the same year, the company also began shipping its third vehicle – Tesla Model X, the luxury SUV.

    Tesla acquired SolarCity and entered the photovoltaics market in November 2016 and changed its name to Tesla Inc., in February 2017 to reflect on its expanding business. In 2017, the company also began selling its fourth vehicle model called the Model 3 sedan, which became the world’s best-selling plug-in electric car for 2018.

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    Tesla’s Global Expansion

    It was in the year 2019 that Tesla opened its first Gigafactory in Shanghai, China marking its first foray into global expansion. By 2020, it also began constructing its new Gigafactory in Berlin, Germany, and one more in Texas, United States. The same year it also began delivering its fifth vehicle model – the Model Y crossover. By July 2020, Tesla Inc. became the world’s most valuable automaker by market capitalization by reaching a valuation of USD 206 billion. The company also became eligible for inclusion in the S&P 500 index after it reported consistent profits for four consecutive quarters between July 2019 and June 2020 and was added in December 2020. By October 2021, Tesla’s market capitalization reached USD 1 trillion and in March 2022 launched its new car factory in Berlin which is the largest for electric vehicles in Europe.

    Tesla and India

    In the year 2021, Tesla officially incorporated an Indian company in Bengaluru as Indian government officials stated that due consideration was being given to Tesla’s proposal of a sharp reduction in import duties for electric cars. However, even after all this time, the company is yet to move forward with service centers and supercharger stations.

    Elon musk took to Twitter and posted – “Tesla will not put a manufacturing plant in any location where we are not allowed to first sell and service cars.”

    This tweet came in response to the Indian government’s non-acceptance of Musk’s demand of reducing import duties on Tesla vehicles. Currently, India levies a 100% tax on imported cars costing upwards of USD 40,000 and 60% on cars that are valued at less than USD 40,000. These import taxes are inclusive of insurance and shipping expenses.

    Elon Musk blames ‘government challenges’ for Tesla’s India delay

    Nitin Gadkari, Minister of Road Transport and Highways of India clarified at the ‘Raisina Dialogue 2022’ held in April 2022 that it cannot be a good proposition for India if Musk wants to manufacture Tesla cars in China and sell in India. He went on to say – “Our request to him is to come to India and manufacture here. We have no problems. The vendors are available, and we offer all kinds of technology and because of that, Musk can reduce the cost. India is a huge market and offers good export opportunities too. Musk can export Tesla cars from India.”

    In another interview with a media channel, Gadkari said – “Elon Musk is welcome in India. However, it will not be possible if he only manufactures in China and wants a concession for marketing in India.” He went on to say that Tesla can avail of all concessions and other benefits only if it manufactures its cars in India.

    In response to this Musk tweeted – “Tesla isn’t in India yet due to challenges with the government.” He went on to clarify that he is ready to launch cars in India but the country’s import duties on EVs, according to him, are the highest in the world.

    Conclusion

    Between the years 2015 and 2020, Tesla expanded quickly, successfully acquiring many companies and increasing capabilities in battery technology. The company also increased its global presence within that time frame. However, the Indian government is maintaining a firm position regarding Tesla’s Indian foray. Union Minister Mahendra Nath Pandey, in July 2022, categorically said that Tesla can only come to India if it complies with the Atmanirbhar Bharat policy of the country. Hopefully, both parties can reach a mutually beneficial resolution soon.

    FAQs

    What are the primary reasons for Tesla’s delayed entry into the Indian market?

    The primary reasons for Tesla’s delayed entry into the Indian market are high import duties, lack of charging infrastructure, and regulatory hurdles.

    What steps can Tesla take to overcome the challenges of entering the Indian market?

    Tesla can take several steps to overcome the challenges of entering the Indian market, including:

    1. Localize production
    2. Collaborate with Indian companies
    3. Expand charging infrastructure
    4. Launch more affordable models

  • China’s Shrinking Population: Causes and Consequences

    The long-term population pattern of China went through multiple cycles peaking with each imperial power and then being decimated due to wars and barbarian invasions. The percentage share of the world of China’s population has been at an average of 26% with a standard deviation of 6%. This percentage share has seen a downward slide in the late 20th and early 21st century.

    As per the recent numbers by China’s National Bureau of Statistics, the country’s total population has declined by 850,000 people in the period between 2021 end and 2022 end. China’s population exceeds 1.4 billion people and the reduction number is not very big. However, it does indicate a concerning demographic shift of the elderly population outnumbering the young. An assistant professor of international social and public policy at the London School of Economics, Shuang Chen said – “What is concerning is not so much the decline in sheer size, but rather a rapid aging and the socioeconomic challenges of adapting to the rapid change in population structure.” This decline in China’s population has always been a very real possibility. What remains unclear is the role that the covid-19 pandemic might have played in pulling the timeline closer.

    If this trend is allowed to continue without interference, then by the year 2035, more than one-third of China’s current population might be above the age of 60 years putting a heavy strain on the country’s infrastructure and resources.

    Reasons For Decline
    Effects Of Declining Population
    Action Plan To Improve Population
    Conclusion

    Reasons For Decline

    After World War II, China’s population witnessed a rapid increase. The country’s population which was at 540 million in 1949 grew to 969 million in 1980, notwithstanding the decline it experienced in 1961 when China was in the grip of the four-year famine following the failed ‘Great Leap Forward’ campaign. However, its growth spurt was also putting a strain on the country’s limited supply of resources. Hence, the then Communist Party leader, Deng Xiaoping instituted the one-child policy in 1980. It remained in effect for more than 35 years and it was only in 2016 that the limit was expanded to 2 children. In the year 2021, the limit was further expanded to three children. This social experiment initially achieved its goal as fertility rates steadily decreased. Advances in the field of medicine also increased life expectancy from 57 years in 1970 to 78 years in 2020.

    Another reason for the population decline is the high living and education costs despite the rapidly growing economy of the country over the last few decades. In the year 2021, China’s unemployment rate for the younger generation was as high as 16.7%. One more strong contributing factor has also been the strict anti-Covid measures which have lowered the birth rate.

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    According to the Shanghai Academy of Social Sciences, the population is expected to decrease by 0.49 per thousand in the present year. This is the first decline the country is witnessing since the famine. The academy has also predicted an annual average decline of 1.1% after 2021. It estimates that China’s population in 2100 will drop down to 587 million – less than half of what it is today. This will also lower the annual average of China’s working-age population setting the stage for lower economic growth.

    Total population of China from 1980 to 2022 with forecasts until 2027 (in millions)
    Total population of China from 1980 to 2022 with forecasts until 2027 (in millions)

    Effects Of Declining Population

    As one of the top five global economies, any occurring event in China has worldwide repercussions. Yi Fuxian studying Chinese demographics at the University of Wisconsin-Madison said in an interview – “China’s labor force engaged in manufacturing is starting to shrink, meaning higher manufacturing costs in China will lead to high prices and high inflation in the US and EU.” Secondly, the decline can severely affect its stance as a global superpower.

    Internally, a population lowering in number and simultaneously growing older will also reduce the country’s tax revenue and contributions to pensions affecting the extent to which the government can provide for its citizens. Even the country’s transition to a middle-income economy has become one of its great concerns. China will become old before becoming rich.

    What China’s Shrinking Population Means For The Global Economy?

    Action Plan To Improve Population

    As concerning as the situation of a declining population is today, it is not inevitable, as per some demographers. Stuart Gietel-Basten, a professor of social science at Khalifa University in Abu Dhabi says – “It would only be a crisis if you carried on regardless. There are things the government can do to address the problem and it has already started to try.”

    In his speech at the National Party Congress in October 2022, President Xi Jinping said – “China will improve the population development strategy. We will establish a policy system to boost birth rates, and bring down the costs of pregnancy and childbirth, child-rearing, and schooling.”

    The country’s government has already proactively rolled out programs to ease these burdens on its citizens, including offering cash incentives for a third child.

    Conclusion

    While being a considerable problem for China in the coming years, it does not seem insurmountable. However, the obstacle is considered taking into account the imbalance between the male and female genders. It remains to be seen how the government’s policies help the country to successfully navigate the threat of a declining population.

    FAQs

    What are the main factors contributing to China’s population decline?

    The main factors contributing to China’s population decline are low birth rates, aging population, and high living and education costs.

    What measures has the Chinese government taken to address the population decline issue?

    The Chinese government has implemented several measures to address the population decline issue, including:

    1. Relaxing the one-child policy
    2. Providing financial incentives
    3. Improving healthcare and social security
    4. Encouraging immigration

  • Tinder’s Winning Marketing Strategy: Swipe Right on Success

    Tinder is the most popular dating app with a strong brand image. How did they dominate the online dating scene so quickly and become successful? Their marketing strategy has the solution. Tinder successfully engages consumers every day by combining conceptual design and user experience.

    In September 2012, the dating app Tinder was introduced. This dating app didn’t initially gain much traction. However, it shocked the app industry with 10 million downloads at the beginning of 2013. In less than a year after the product’s inception, Tinder reached over 1 million active monthly users. It attracted 24 million active monthly users in less than 30 months. It rose to become one of the most popular apps.

    According to Statista, in 2022, Tinder generated 64 million downloads, making it the most downloaded dating app.

    Tinder Target Audience
    Tinder Marketing Strategies
    Why Do Tinder Marketing Strategies Work?

    How Tinder Became an Online Dating Sensation? | Tinder Success Story

    Tinder Target Audience

    The majority of Tinder’s user base falls within the age range of 18 to 25 years old. This age group is Tinder’s primary target audience. However, the platform is open to anyone above the age of 18 who is single and interested in dating.

    According to Tinder’s statistics, in 2021, over 50 percent of its user base in the United States consisted of Gen Z.

    Since around half of its users are Gen Z. This is why they adopt quirky marketing strategies.

    Tinder Marketing Strategies

    Prior to 2012, no one ever considered the possibility of finding love online. However, everyone has an opportunity to discover their ideal partner with Tinder’s introduction in September 2012. However, Tinder’s marketing technique was what persuaded users to utilize the online dating service. Here are the popular marketing strategies used by Tinder:

    • Moment marketing
    • Conversational marketing
    • Meme marketing
    • Guerrilla marketing
    • Buzz marketing
    • Event and Web series
    • Influencer marketing
    • Brand collaborations

    Let’s find out how Tinder is creating stories of love and success!

    Conversational Marketing

    Nobody speaks quite as Tinder does. When it comes to online conversing with other brands, the dating platform does a good job. Tinder engages the audience and other companies in conversation and offers the funniest responses.

    When Tinder requested users to submit their hilarious Tinder dating tales on World Emoji Day, fantastic responses from major businesses were received. Due to its skillful discussion and self-promotion, Tinder’s conversational marketing is at the top of the list.

    When Twitter’s official account once posted “Agreed,” tinder responded with the appropriate tweet, “Me when my crush says anything.” Quite clever, yes.

    It is well known that Tinder is using a sassy approach on Twitter. As outrageous comebacks never stop, Tinder’s Twitter approach is concentrated on starting discussions to encourage genuine involvement.

    Tinder has always used Twitter to engage in casual, conversational, and persuasive social media connections. With millennials as the primary target market, Tinder’s Twitter approach maintains a snarky tone and strives for high interaction through tweet comebacks.

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    Moment Marketing

    Tinder knows that marketing is all about timing. The company comes up with promotional tactics based on current events and festivals. As an online dating platform, Tinder would be foolish to miss out on promoting itself on Valentine’s Day. The company tweeted that there are only 25 days left until Valentine’s Day, urging all singles to get on the app and find their perfect match.

    Similarly, Tinder recently generated several gigs utilizing the show’s well-known dialogues after the highly popular comedy Friends reunion was broadcast on television.

    Therefore, Tinder leverages occasions and circumstances like these to promote its brand.

    Meme Marketing

    Tinder Meme Marketing
    Tinder Meme Marketing

    Up until Tinder entered, every brand is a Memer. Tinder is aware that its target demographic is young people, and that memes are the greatest way to connect with them. Thus, one of Tinder’s marketing techniques is meme marketing.

    This approach is used by Tinder on all of its social media accounts.

    At a time when Binod was the focus of nearly every social media meme, Tinder did not pass up the chance to capitalize on this trending issue. A #Baenod love tale meme was posted by Tinder. To convey the cute love story of Binod and the place where he met Binodini, the brand leveraged the meme to perfection.

    Thus, Tinder develops its meme marketing approach by keeping up with meme-related subjects.

    “Adulting can wait” is one of the most popular meme marketing campaigns that created a buzz among audiences after digital media and outdoor memes took over.

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    Guerrilla Marketing

    Guerrilla marketing employs creative marketing techniques to reach out to consumers. Tinder, for instance, has used this strategy to promote word-of-mouth.

    As part of their guerrilla marketing tactics, Tinder once placed a massive matchbox in an open area where it was visible to most people. While many were initially unaware of what it represented, they eventually discovered Tinder’s logo and realized the clever wordplay: “it’s a match.” Overall, this was a flawlessly executed guerilla strategy.

    Buzz Marketing

    Tinder is known for its buzz marketing techniques that generate conversations around its business and increase brand awareness. Many firms use this method to promote their products or services.

    In 2015, the Atlanta Hawks held the first “Swipe Right Night” event, where a couple who had met on Tinder started dating again. A year later, at the same event, the Hawks’ CEO promised to cover the cost of the couple’s wedding if they decided to tie the knot. In 2018, they got married, and the CEO kept his word. This story, along with Tinder paying for the couple’s honeymoon, helped Tinder gain popularity and inspire more users to sign up and swipe right.

    Another instance of buzz marketing was when Deadpool’s Tinder profile was created and shared around the time of the movie’s release. Fans were excited to create their own Tinder profiles, following the beloved character’s lead. This is a prime example of how buzz marketing works.

    Events and Web Series

    You’ve probably heard numerous romantic tales of couples who met for the first time at a gathering or other occasion. How then can Tinder fail to advertise its dating service at events?

    To advertise its online dating service, Tinder sponsors events and produces its own events. Together with She the People T.V., Tinder organized a female empowerment event in India. Women from many walks of life came together at this gathering to talk about issues like love, female autonomy, technology, and other things.

    With the help of a sponsorship agreement with a nearby music festival called Splendour in the Grass, Tinder introduced a new ‘Festival Mode’ in Australia.

    Influencers and Ambassadors

    People that promote a brand in various ways include influencers and brand ambassadors. By producing content for a business, they advertise it on their social media accounts, and brand ambassadors advertise it by spreading the word and advocating for it.

    The social media platforms of Tinder India have videos made by different influencers where that talk about various Tinder profiles, bios, and other entertaining things. Several well-known actresses and content makers support Tinder, including Ahsaas Channa, Tanmay Bhatt, and Kareema Barry. Ananya Pandey is a well-known Indian celebrity who uses social media to promote Tinder.

    Brand collaborations

    Promoting other brands alongside your own can actually do a lot of good for your brand. Tinder knows this; that’s why they promote other brands through their tie-ups and partnerships.

    By giving out a free Domino’s pizza, Tinder created over 700 matches. Users who swiped right on Tinder got a free pizza and discounts. Both Tinder and Dominos benefitted from this.

    Tinder also collaborated with paIN Gaming to promote games like Free Fire, Counter-Strike, Clash Royale, etc. As a result, they turned loving relationships into games.

    Tinder Age Demographics (US Users)
    Tinder Age Demographics (US Users)

    Why Do Tinder Marketing Strategies Work?

    • Strives for originality: With its “swipe left” and “swipe right” interface, the dating app provides a dating experience that is distinct from conventional dating methods.
    • Focuses on instant gratification: On Tinder, users believe they are earning a reward right away when they connect with someone.
    • Offers an easy user experience: Users love how Tinder has streamlined and simplified the dating process.
    • Uses personalization: By using preference data to filter data, Tinder gives consumers a more personalized experience.
    • Utilizes word of mouth: Tinder’s marketing approach places a lot of emphasis on word-of-mouth promotion. The company employs student ambassadors to spread the word about the app to other members of its target demographic. Customers are more likely to trust other customers than they are to trust a brand, which explains why this has been so effective.

    Conclusion

    Tinder’s innovative marketing strategies have played a crucial role in its success as an online dating platform. By utilizing a variety of channels, including event sponsorships and social media marketing, Tinder has been able to attract and retain a large user base while generating excitement and interest around its brand. As the online dating industry continues to evolve, Tinder’s ability to adapt and stay ahead of the curve will likely ensure its continued success.

    FAQs

    What marketing strategies does Tinder use?

    The popular marketing strategies used by Tinder include moment marketing, conversational marketing, meme marketing, guerrilla marketing, buzz marketing, event, and web series, influencer marketing, and Brand collaborations.

    Why do Tinder marketing strategies work?

    The marketing strategies of Tinder work for several reasons, including their focus on originality, instant gratification, user-friendliness, and personalization.

    What is Tinder’s target audience?

    The majority of Tinder’s user base falls within the age range of 18 to 25 years old. This age group is Tinder’s primary target audience. However, the platform is open to anyone above the age of 18 who is single and interested in dating.

  • Big Four No More: What Does the EY Split Mean?

    The term ‘Big Four’ refers to the world’s largest four professional services networks Deloitte, Ernst & Young (EY), KPMG, and PricewaterhouseCoopers (PwC). Their service repertoire ranges from offering audit, assurance, and taxation to management consulting, actuarial, corporate finance, and legal services.

    The Big Four came into existence only in the late 20th century. Previously the market for professional services was dominated by eight big networks that were nicknamed the ‘Big Eight.’ These were Arthur Andersen, Arthur Young, Coopers & Lybrand, Deloitte Haskins and Sells, Ernst & Whinney, Peat Marwick Mitchell, Price Waterhouse, and Touche Ross.

    It was the gradual mergers between all these firms including the collapse of Arthur Andersen in 2002, that left the market being dominated by the ‘Big Four’ in the 21st century. Such was their market domination that in the year 2011, the United Kingdom reported that 99% of the companies in the FTSE 100 index and 96% of the companies in the FTSE 250 index were being audited by one of the Big Four firms.

    Legal Structure of the Big Four
    Criticism
    The EY Split
    The Effect on the Big Four
    Conclusion

    All four firms are, in reality, professional services network that is owned and managed independently. Each of these independent entities has entered into agreements with the other member firms in the network, which, then, share a common name, brand, intellectual property, and quality standards. In an effort to coordinate the activities of the network, each one has established a global entity.

    Of these four, Deloitte, PricewaterhouseCoopers, and Ernst & Young are registered as a UK Limited Company, whereas KPMG’s registration was under the co-ordinating entity of a Swiss association. Under Swiss law, it changed its legal structure to a cooperative in 2003. It was only in the year 2020, that KPMG became a UK-limited company.

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    Criticism

    Being market dominant for a number of years, the ‘Big Four’ have had their fair share of controversies and criticisms regarding their business practices and ethics, audit quality, tax avoidance, and alleged collusion amongst them. The Public Company Accounting Oversight Board (PCAOB) in the United States did an analysis in 2019 and reported that the ‘Big Four’ had mismanaged approximately 31% of their audits since 2009 with KPMG having the worst audit failure rate of 36.6%.

    May 2018 saw KPMG being accused of complicity and signing off on Carillion’s inflated figures before the company finally collapsed. Two years later in 2020, PwC was facing allegations of a potential interest conflict in its audit of Sonangol as it played a dual role of consultant and auditor. The same year Deloitte was fined 15 million pounds by the FRC for failing to apply professional skepticism in its audit of Autonomy’s financial statements between 2009 to 2011 before it was acquired by Hewlett-Packard. Wirecard’s collapse in 2020 brought to light the poor auditing of Ernst & Young as it failed to discover the missing cash of 1.9 billion Euros.

    The EY Split

    The firm of Ernst and Young, one of the ‘Big Four’ may be heading for a split separating their accounting and consultancy businesses. A top EY official made the observation that this move will help pay the rising technology bills and might be copied by the other ‘Big Four’ firms.

    In the event of a confirmed split, it would be the biggest in the sector since the collapse of Arthur Andersen. The firm of EY is worth approximately USD 50 billion. EY feels confident that the split will make it easier for the firm to raise capital to invest and create two more lucrative firms. The critics, on the other hand, are showing doubt and saying it may adversely affect the auditing side of the business.

    Andy Baldwin, the Global Managing Partner of EY said that if the deal did not go through due to the currently unsettled financial markets, it could be voted on again at a later date. The fundamental drivers of the deal will remain unchanged. He went on to say “It may come to a timing point, so our plan is that we will continue to what we call soft separation next year, and continue to start to run these two businesses separately, albeit they will continue to be part of the single enterprise of EY.”

    EY’s Big BreakUp Plans

    The Effect on the Big Four

    At the time of writing this article the other firms of the ‘Big Four’ have shown no public interest in a separation of powers. However, in the eye of governing bodies trying to sort out the potential conflicts in the global accounting giants and continue to exert pressure, the other firms may not be left with any other choice. Smaller accounting firms may now see a growth opportunity associated with the split.

    If the time comes when the other ‘Big Four’ firms acknowledge the opportunities associated with the split, the fintech market will see unprecedented growth as automated accounting, spend management, and other fintech software will become an inseparable part and tool of the trade.

    Conclusion

    The CMA, in 2018, announced that it would launch a detailed study of the market dominance of the ‘Big Four’ in the audit sector. The UK Financial Reporting Council in July 2020, asked the Big Four firms to submit their plans to separate their audit and consultancy operations by 2024. However, with the EY split looming on the horizon, it seems it might very well be the beginning of a new chapter in the audit and consulting industry.

    FAQs

    Why are the Big Four accounting firms losing their dominance in the industry?

    Big Four’s decline is caused by factors such as regulation, scandals, tech disruption, evolving client demands, and competition from smaller firms with specialized services and lower costs.

    Is EY no more a part of the Big Four?

    EY has announced that it will go ahead with splitting into its audit and consulting divisions into two separate companies.

  • Target’s Business Strategy – A Study

    The seventh largest retailer in the United States and a component of the S&P 500 Index is the Target Corporation headquartered in Minneapolis, Minnesota. By the year 2020, the Fortune 500 listed Target as number 37 of the largest US Corporations by revenue. In 2021, Target Corporation recorded a revenue of USD 93.56 Billion from 1909 stores.

    About
    Growth
    Business Strategy
    Conclusion

    About

    The Target Corporation as it is known today was established in 1902 by George Dayton as Goodfellow Dry Goods. The company changed its name to Dayton’s Dry Goods Company in 1903 and later the Dayton Company in 1910. It again changed its name to Dayton Corporation in 1962 and it was then, that Target was established as the discount division of Dayton’s department store in Minneapolis, using the concept developed by an employee, John F. Geisse.  The name ‘Target’ was the brainchild of Stewart Widdess, Publicity Director of Dayton, to prevent consumers from associating the discount chain with the main department store.

    The discount chain stores proliferated, becoming the second largest privately owned department store in the country by 1964 and recording its first profit of USD 39 million in 1965. In the year 1969, the Dayton Corporation merged with the J.L. Hudson company, based in Detroit, and became the Dayton-Hudson Corporation. The new Dayton-Hudson Corporation consisted of five major department store chains – Target, Dayton’s Diamonds, Hudson’s, John A. Brown, and Lipman’s and was the 14th largest retailer in the US.

    Growth

    By the year 1975 Target had opened 49 stores spread over nine states in the US and was clocking USD 511 million in sales. By the next year in 1976, their total stores had grown to 53 units and sales figures had grown to reach USD 600 million. The next two years saw Target increase its store presence to 80 units in eleven states clocking total sales of USD 1.12 billion. The same year, in 1980, the Dayton-Hudson Corporation acquired 40 stores of the Ayr-Way discount retail chain which were re-opened as Target stores in 1981. In addition, it also opened fourteen new Target units strengthening its presence to a total of 151 stores and reaching sales figures of USD 2.05 billion.

    Over the next two decades, Target kept growing and expanding its presence across the United States through various acquisitions and by opening more units. At the turn of the century, Dayton-Hudson Corporation changed its name to Target Corporation. By the 2000 year end, Target’s store presence had increased to an impressive 977 stores spread over 46 states which were generating sales worth USD 29.7 billion. Target continued its expansion through the internet and e-commerce revolution by separating its e-commerce operations from the retail division. Over the decade, Target continued its growth reaching a total of 1488 stores with annual sales touching USD 59.4 billion. It also built its first food distribution center which began operating in the year 2008. By 2009, Target began its expansion outside the US by opening two stores in Hawaii and two in Alaska simultaneously. It also began adding a fresh produce department in numerous locations.

    Target expanded into Canada in the year 2011 and by 2013 opened its first store which quickly grew to 133 stores. However, the company’s Canadian foray ran into substantial supply chain issues raking up a total loss of USD 2.1 billion in a short span of time, leading to Target announcing the closure and liquidation of all the stores by the end of 2015. The Canadian and US media termed it ‘a spectacular failure’ and ‘an unmitigated disaster’.

    Why Target Failed In Canada

    Despite a few more setbacks over the years, the company has continued to grow to reach a total revenue figure of USD 93.56 billion from 1909 store units. The supermarket store stocks and sells products across various categories including beauty and health products, bedding, clothing and accessories, electronics, food, furniture, games, jewellery, lawn and garden, pet supplies, shoes, small appliances, and toys. It also boasts several in-house brands that its department stores stock and sell.

    Target – Seventh Largest Retailer in the United States
    Target Corporation also known as Target, is an American department store chain. It was set up in 1962 as a division of Dayton’s department store.
    StartupTalkyBhoraniya Huda Hifzur Rehman

    Business Strategy

    For a company that essentially began as a small branch of a larger department store, Target has grown to be present in all 50 states of the US as an independent brand. Over the decades, the brand has focused on growth and market stability. In an era of e-commerce, Target’s continued success combines its marketing strategy, design partnerships, and store layout.

    Marketing & Advertising

    From the get-go, Target has positioned itself as a high-end discount store and strategized itself as a ‘cheap-chic’. Its strategic choice to position itself as a mass merchandiser of affordable chic goods has fuelled its steady growth and also earned the nickname of ‘Tar-zhay’.

    Design Partnerships

    This is a concept that plays a huge role in the success of the retailer. At any given time, one-third of the store’s inventory is exclusive to them through private labels. The brand also partners with designers for a time-limited design collection. These time-capsuled collections act as a marketing gimmick creating a perception of the store as being high-end.

    Store Layout

    The brand is focused on the aesthetics of its store and the way the products are laid out inside. Product categories like apparel, home goods, and electronics are displayed lavishly with specialized lighting and displays. Yet not too far away, the standard merchandise is displayed under uniform fluorescent light replicating a regular department store. The idea behind this is to further the ‘cheap-chic’ module giving the feel that customers are getting value for their spending. It also encourages the customers to buy impulse goods which generates a higher profit for the retailer.

    Target stores also handle the dual responsibility of fulfilling online orders. The company has not invested huge amounts into building warehouses which eventually adds to operational costs. Instead, it has successfully utilized its existing stores towards e-commerce orders by having a staff known as fulfillment experts. These employees are either working at the backend packing online orders to be delivered or going across the store to gather order items and scanning and pack them which are then picked up by the customers in the store’s parking lot. This tactic has proven to be hugely successful for the retailer, especially during the covid-19 pandemic.

    Conclusion

    Target has undergone many transitions over the years, changing store layouts, designing creative advertising campaigns, and acquiring various businesses under its brand. The company is vigilant of changing consumer preferences and quickly adapts to market needs. Through the years, the brand has maintained its image of ‘Elevated brands at bargain prices’. The customers are given the experience of an elevated discount store, leading to a high brand and store recall over and above its competitors.

    FAQs

    What is the target market for Target Department Store?

    Target Department Store’s target market is middle to upper-income households, including families and young adults seeking value, convenience, and a high-quality shopping experience.

    Target offers a wide range of product categories, including clothing and accessories, home decor, furniture, beauty and personal care, electronics, toys and games, groceries, and healthcare essentials. They also have exclusive brands and partnerships with designers and celebrities.

  • NEOM – Saudi Arabia’s $500 Billion Bet On A Future Without Oil

    The Kingdom of Saudi Arabia is situated in the furthermost part of southwestern Asia. On its eastern borders lies the Arabian Gulf, United Arab Emirates, and Qatar, the Red Sea on its west, Kuwait, Iraq, and Jordan in the north, and Yemen and Oman in the south. Its diverse topography includes coastal plains, mountains, valleys, deserts, sand hills, and lava fields. This uniquely diverse topography means that the Kingdom witnesses a varied climate in different regions. Currently, the kingdom is helmed by Saudi Arabia’s de facto ruler, crown prince, Mohammed bin Salman.

    It is the crown prince’s initiative, a project named ‘NEOM’ that forms a part of the Saudi vision 2030. The project aims to diversify the country’s economy with a view to reducing its dependency on oil. Currently, the proven oil reserves within the country are the second largest in the world, corresponding to over 50 years of production at current rates.

    What Is Project NEOM?
    NEOM’s Planned Regions
    Controversies Surrounding NEOM
    Conclusion

    What Is Project NEOM?

    The name NEOM is a portmanteau, in that its first three letters are an ancient Greek prefix – ‘neo’ means new while the fourth letter ‘M’ represents the first letter of the crown prince’s name and the first letter of the Arabic word ‘Mustaqbal’, which means ‘future’. Literally, the meaning of the word NEOM means new future.

    NEOM is a planned smart city in the Tabuk Province of northwestern Saudi Arabia. A part of the Saudi Vision 2030 initiated by the crown prince, the project site is located north of the Red Sea, east of Egypt across the Gulf of Aqaba, and south of Jordan. The total area of this futuristic city is 26500 square km. NEOM’s plan includes multiple regions that include a floating industrial complex, a global trade hub, tourist resorts, and a linear city that will be powered by renewable energy sources.

    Saudi Arabia’s $500 Billion City

    Project NEOM is designed to inspire an alternate lifestyle responding to some critical global challenges facing humanity. The smart city will highlight humanity’s relationship with nature by preserving 95% of the natural environment that surrounds it. All energy in NEOM will be completely renewable generated from wind, solar, and hydrogen which will ensure a zero-emission and carbon-positive ecosystem. People involved with the project are saying that NEOM will be a regional powerhouse in water production and storage which will be anchored on water desalination. Its water infrastructure, connected through advanced technology, will ensure minimal water loss. This will put NEOM at the forefront of water technology.

    The plans to build such a city were first announced at the Future Investment Initiative conference by Saudi Crown Prince Mohammed bin Salman. The conference was held in Riyadh, Saudi Arabia, on October 24, 2017. He added that the upcoming city would operate independently from the existing governmental framework and enforce its own tax, labor laws, and an autonomous judicial system.

    The estimated cost of the entire project is USD 500 billion, which is largely being bankrolled by the Public Investment Fund which invests on behalf of the government of Saudi Arabia. NEOM is arguably the world’s largest and most controversial architectural project.

    NEOM’s Planned Regions

    As per the developer, NEOM consists of 10 regions. The details of 4 such regions have been announced.

    The Line

    NEOM The Line, Screenshot from the NEOM's Website
    NEOM The Line, Screenshot from the NEOM’s Website

    Suggestive of the name, The Line is a linear city spanning 170 km in length and 200 meters in width. The first plans for the famed city were unveiled in January 2021 and were further modified in July 2022. The original plan included multiple buildings on a linear plan. The modified plan scrapped the original idea and combined the buildings into one continuous structure with a glass mirror exterior, covering it entirely. The city will be free of cars and large enough to house 9 million residents living within walkable communities. All basic services will be available to all within a 5-minute walking distance.

    Oxagon

    NEOM Oxagon, Screenshot from the NEOM's Website
    NEOM Oxagon, Screenshot from the NEOM’s Website

    Saudi Arabia’s Ministry of Industry and Mineral Resources, the Saudi Authority for Industrial Cities and Technology Zones, and NEOM signed a Memorandum of Understanding in December 2022, that facilitates collaboration and legislation in support of NEOM’s Future Factories Program. Initially named the NEOM Industrial City, Oxagon is a floating Industrial complex, so named due to its shape as an octagon. It is roughly spread over 250 sq. km and will focus on modern manufacturing, industrial research, and development centered on expanding the Duba port. The complex will also include a desalination plant, a hydrogen plant, and an oceanographic research center. It is the crown prince’s hope that Oxagon will become a new focal point for global trade flows and it will service shipping routes passing through the Red Sea.

    Trojena

    NEOM Trojena, Screenshot from the NEOM's Website
    NEOM Trojena, Screenshot from the NEOM’s Website

    This will be the first major outdoor skiing destination in the Arabian Peninsula and it was launched on 3rd March 2022, by Saudi Crown Prince Mohammad bin Salman. Located approximately 50 km from the Gulf of Aqaba coast in the Sarwat Mountains, the site’s elevation ranges between 1500 meters to 2600 meters and the climate is considerably cooler than the rest of the NEOM’s territory.

    Sindalah

    NEOM - Sindalah, Screenshot from the NEOM's Website
    NEOM – Sindalah, Screenshot from the NEOM’s Website

    The plans for Sindalah were announced in December 2022, which will be a large luxury resort complex off the city coast. It will encompass an 86-berth marina and three luxury hotels that will be able to accommodate approximately 2400 visitors daily.

    Apart from these, the announcement was also made for NEOM Bay Airport in June 2019 that would begin receiving commercial flights after the completion of the first phase of construction. The airport is registered by the International Air Transport Association (IATA). NEOM also has plans to convert almost 6500 hectares of land into agricultural fields and to rely heavily on genetically engineered crops.

    Controversies Surrounding NEOM

    The NEOM Project is surrounded by controversies with three main concerns – sustainability, liveability, and human rights. Although human rights have been a cause of concern in Saudi Arabia for some time, the direct concern affecting NEOM is related to the evictions that are taking place due to the construction. Roughly 20,000 tribe members of the Huwaitat tribe that is historically indigenous to the area will be relocated to accommodate the planned development.

    The Line region, in particular, has been criticized for the estimated production of embodied carbon dioxide in excess of 1.8 billion tonnes. This number has been given by Philip Oldfield, head of the built environment school at the University of New South Wales. According to Oldfield any environmental benefits in the future will be overwhelmed by the carbon dioxide production due to construction. Experts are also concerned about the mirrored façade and the impact it will have on animal and birdlife.

    Saudi Arabia’s Controversial Mega-City Project: The Line

    The Crown Prince, Mohammed bin Salman commented on the liveability of The Line. He said – “It will challenge the traditional, flat, horizontal cities and create a model for nature preservation and enhanced human liveability.”  

    Experts say that the liveability claims would rest on how the city is maintained.

    Conclusion

    As ambitious as the project sounds, there are many firms and individuals who are now involved in making this project a reality. In fact, in March 2021, NEOM signed a four-year global sponsorship agreement with the Asian Football Confederation, and in 2022 NEOM hosted Extreme E’s 2022 Desert X-Prix in Sardinia. In October of the same year, Trojena was announced as the future host of the 2029 Asian Winter Games. The world, as one, is looking forward to witnessing the reality of the project called NEOM.

    FAQs

    What is NEOM?

    NEOM is a planned cross-border city in northwestern Saudi Arabia, which aims to create a new model for sustainable living and economic development as part of Saudi Arabia’s Vision 2030.

    What is the main goal of NEOM project?

    NEOM aims to reduce Saudi Arabia’s reliance on oil and diversify its economy. Its focus is to attract international investment and become a hub for innovation and technology.

    Who is funding the NEOM project?

    The NEOM project is funded by the Saudi Arabian government, through its Public Investment Fund (PIF). The PIF has committed to investing more than $500 billion over the next decade to support the development of NEOM and other projects aimed at diversifying the Saudi economy.

    What is the timeline for NEOM’s completion?

    The initial phase of the project is expected to be completed by 2025, with some areas of the city becoming operational as early as 2023. The full development of Neom is expected to take several decades.

    What are some of the futuristic technologies that NEOM plans to implement?

    NEOM plans to implement several futuristic technologies, including:

    1. Automated transportation systems
    2. Advanced energy technologies
    3. Artificial intelligence and robotics
    4. Smart infrastructure
    5. Vertical agriculture

    These technologies are intended to make Neom a model for sustainable and innovative living, while also attracting investment and talent from around the world.

  • Indian Civil Aviation Industry – Who Leads the Market?

    The aviation industry in India is the fastest-growing sector in the world as per the International Air Transport Association (IATA). The manufacturing hub of Indian aviation is located in Bangalore and the UDAN scheme of the government drives the growing civil aviation and aviation infrastructure in the country.

    Indian civil aviation industry is broadly classified into scheduled air transport which includes domestic and international airlines, non-scheduled air transport which includes charter operators and air taxi operators and air cargo transport which includes air transportation of cargo and mail. As was the case with all commercial activity, the Indian civil aviation industry was severely affected due to the covid-19 pandemic. However, not only has the industry recovered but witnessed a robust growth of 104.24% in one year. This is evident from the figures of the air traffic movement which stood at 613,566 in the first quarter of FY 2022-2023 as opposed to 300,405 in the first quarter of FY 2021-2022.

    Currently ranked at number 7 in the global civil aviation market, Indian civil aviation is expected to become the third largest within the next ten years. It is already the third-largest domestic aviation market in the world and is expected to become the third-largest air passenger market by 2024, overtaking the United Kingdom.

    History
    Growth of Civil Aviation Industry & Its Challenges
    Current Leaders In The Civil Aviation Market
    Conclusion

    History

    The civil aviation industry of India can be traced back to 17th February 1911 when the first commercial flight took to the skies from Allahabad to Naini – a short distance of only 6 miles covered in approximately 15 minutes. This was the world’s first official airmail service as the Humber biplane carried 6500 pieces of mail piloted by Henri Pequet. The first commercial airline was Handley Page Indo-Burmese Transport flown on 15th October 1932 by J.R.D. Tata from Karachi to Juhu Airport. This airline later became Air India.

    By 1953, there were eight domestic airlines that were operating independently within the country. They were Deccan Airways, Airways India, Bharat Airways, Himalayan Aviation, Kalinga Airlines, Indian National Airways, Air India, and Air Services of India. In March of that year, the Indian Parliament passed the Air Corporations Act resulting in the nationalization of the merger of all eight airlines into two government-owned entities – Indian Airlines focusing on domestic routes, and Air India International focusing on international services.

    History of Aviation in India

    In 1972, The International Airports Authority of India (IAAI) was established followed by the National Airports Authority in 1986 and The Bureau of Civil Aviation in 1987. The Indian government de-regularized the civil aviation sector in 1991 leading to the introduction of the first national-level private airline – East-West Airlines, followed by Jet Airways which began operations in April 1992. By 1994 the Air Corporation Act was repealed allowing private airlines to operate scheduled services. This led several players like Air Sahara, Modiluft, Damania Airways, and NEPC Airlines to commence operations within the Indian skies.

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    Growth of Civil Aviation Industry & Its Challenges

    Between 2004 and 2005 many low-cost airline carriers entered the Indian market. Prominent operators among them were Air Deccan, Indigo, Air Sahara, Kingfisher Airlines, SpiceJet, GoAir, and Paramount Airways. However, soon the industry was riddled with problems as it struggled with rising fuel and operations costs and economic slowdown. There was a flurry of mergers, acquisitions, and discontinuation of services within the market players. Paramount Airways closed operations in 2010 while Air Sahara was bought by Jet Airways and Air Deccan was acquired by Kingfisher Airlines in 2007. Kingfisher Airlines closed operations in 2012. A joint venture between Air Asia and Tata Sons led to the launch of AirAsia India in 2014 – another low-cost carrier. Another carrier, Vistara was also launched due to a joint venture between Tata Sons and Singapore Airlines. By 2013 and 2014 only two low-cost carriers, GoAir and Indigo were generating profits through their operations.

    Current Leaders In The Civil Aviation Market

    With the number of airline operators within the Indian civil aviation sector, Indigo and Jet Airways was operating neck to neck in the year 2018. However, the latter was riddled with financial difficulties that led to operations being suspended by April 2019. This left the field open for Indigo with little or no competition from other players. By the year 2022, Indigo was dominating the Indian airline space with a market share of almost 55%.

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    What has resulted in Indigo’s market domination is its no-frills approach and low-cost domestic flying. During the fiscal year 2022, Indigo carried more than 46.6 million passengers according to the Directorate-General of Civil Aviation. The airline has registered the least number of customer complaints and has ranked at number 4 among the country’s most punctual airlines registering almost 84% of on-time arrivals. Indigo rates high on domestic popularity which is indicative of soaring growth in the future.

    Conclusion

    The Indian Civil Aviation Industry has received strong backing from the government and is increasingly emerging as a fast-growing sector. The sector has established itself as a credible alternative to road or rail journeys. The growth trajectory of the industry currently indicates that by the year 2034, it may well become one of the largest aviation markets in the world.

    FAQs

    Who are the major players in the Indian Civil Aviation Industry?

    The major players in the Indian Civil Aviation Industry include:

    1. IndiGo
    2. SpiceJet
    3. Air India
    4. Vistara
    5. GoAir
    6. AirAsia India
    7. Air India Express

    What is the contribution of the Indian Civil Aviation Industry to the country’s GDP?

    According to a report by the Ministry of Civil Aviation, the Indian Civil Aviation Industry contributed about 0.5% to the country’s GDP in the financial year 2019-20. The industry provides direct and indirect employment to millions of people and has a significant impact on the economy.

    What are the key challenges faced by the Indian Civil Aviation Industry?

    The Indian Civil Aviation Industry faces several challenges, some of the key ones are:

    1. High operating costs: The industry is faced with high operating costs, which include fuel prices, airport charges, and taxes.
    2. Infrastructure constraints
    3. Competition: The industry is highly competitive, with several players vying for market share. This has resulted in price wars and cost-cutting measures that impact the quality of services offered.