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International Center for Business Research

Issue: Volume 2 Apr 2013; Link: icbr.net/0204.35

EMERGING SOCIO-CULTURAL TRENDS AND


MARKETING IMPLICATIONS IN INDIAN
CONTEXT: AN ANALYSIS
Vaishali Agarwal1
1
Vishveshwarya School of Management, Greater Noida, India

Abstract: The advent of globalisation has exposed consumers of emerging markets like India to the western
culture and lifestyle. This paper studies the socio-cultural trends emerged in Indian market, albeit they have
been an integral part of developed nations in west. The emerging trends become important strategic issue for the
marketers that have to be focussed upon. The objective of this paper is to discuss the dimensions of social and
cultural trends and resultant marketing implications in Indian context. The paper examines evolving consumer
trends based on a careful review of the relevant literature, published articles and some practical insights in
consumer behaviour. In this backdrop, an attempt has been made in this paper to discuss emerging trends in
Indian market with the help of a verbal model. The model has further been examined with the help of l
marketing evidences from Indian market with an objective to help marketers to address these socio-cultural
trends at the time of their brand marketing in India. The data is primarily collected through secondary sources
and observation method. The contemporary Indian customers exhibit different needs, buying behaviour and
expectations. Six different consumer trends are identified and analysed: growing women workforce, kids pester
power, teenage workforce, mobile communities, nuclear families and individual households, rebellion and
gadget freak youth. The verbal model about emerging trends in India, and proposed marketing toolkit facilitate
marketers to devise more accurate marketing strategies for India. This toolkit entails the introduction of variety
of new products and non-conventional means of communicating in Indian market. This paper is not based on a
specic empirical study; the findings cannot be generalized. The changes in the socio-cultural behaviour of
Indian customers and evolution of marketing practices have narrowly been focussed to until now in Indian
context.

Keywords- Emerging markets, socio-cultural trends, verbal model and marketing implications

1. 0 Introduction of socio-cultural change and the picture of society


reflected in earlier marketing plans and advertising
An individuals choice is a product of its campaigns. Many marketing specialists who pride
demographics, social and cultural factors. The themselves on their pragmatism and realism have
Indian consumers have gone through radical shift not related their day-to-day marketing activities to
in their socio-cultural behaviour as a result of the facts of these changes (Bartos, 1978).
growing globalisation and cultural borrowing. With
globalization, culture becomes predominantly The technological advancements, media revolution,
important strategic issue in market that has to be quality orientation, service work culture and
faced and properly managed (Banerjee, 2008). unbeaten fierce competition have educated the
Every decade since Indian independence has been customers like never before (Akula, 2008). This
marked by the substantial shifts in the business time period has seen lot many transitions in the
environment of the nation. The era from fifties to market from the days of Nirma to Maruti Suzuki to
late sixties has been marked by shift from Dabar lal dant manjan to Sunsilkgangofgirls.com
agricultural economy to industrial economy. Early (Agarwal, 2008). Present day customers have
seventies to late eighties heralded the age of matured from those seeking for the satisfaction to
growing professionalism and birth of many iconic those who want to be delighted by their marketers.
Indian brands into the marketplace (Prasad, 2008). The products needed, the brands desired, the way
The post liberalization phase in India has gone of approaching and consuming them have
through plenty of changes in market place. This transformed radically. The latest socio-cultural
phase has not only spotted the massive inflow of trends of society, proliferating brands, growing
brands coming from various countries all around economy has created both opportunities and
the globe but has also observed the changing challenges for the marketers. Now marketers
consumers and evolving trends in the consumer constantly have to think of innovative ways to
behaviour. There exists a gap between the realities reach the mind of customers (Jayswal & Salvi,

Vaishali Agarwal (Correspondence)


ag.vaishali @gmail.com
9310107892
2007). As the marketing guru, Philip Kotler quoted, 2001) refers to culture as the collective
Companies should think about the millennium as a programming of the mind which distinguishes the
golden opportunity to gain mind share and heart members of one group or category of people from
share. There is no rule of thumb to gain the heart another. Culture refers to set of basic values,
and mind share; the marketers need to think out of perceptions, wants, and behaviors; it is learned by a
box for developing innovative products, member of society from family and other important
discovering new channel of distributing them and institutions. (Banerjee, 2008) opines that culture is
exploring the complete 360 degrees of fundamental base of a society. It has a long-lasting
communication routes. The future of marketing is influence on behavior of its people and their buying
about mesmerization of customers; colours that preferences.
hypnotize, fragrance that seduce, lights/sounds that
ignite passion, create emotional attachments Social and cultural factors moderate many aspects
(Shukla, 2007). As socio-cultural environment of of consumer behaviour. The exposure to
consumers in developing nations keep on evolving globalization has given birth to no-border world.
from time to time, a close insight about the recent Cultural borrowing is taking place as consumers
trends is almost essential for a smooth sailing in are rapidly adapting to the culture of different
any emerging market. An understanding of social countries. Maheshwaran & Sharon (2000)
and cultural dimensions plays a vital role to expressed in their paper that there is a growing
formulate marketing strategies. In this backdrop, an interest in cultural differences of countries and
attempt has been made in this paper to discuss understanding the cultural context of consumer
emerging trends in Indian culture with the help of a behavior in a globalized marketplace. Jenner and et
verbal model. The model has further been al. (2008) conducted a study focused on changing
examined with the help of empirical marketing cultures in NAFTA Countries, the U.S. and its
evidences from Indian market with an objective to neighbor Canada and Mexico. The researchers
help marketers to address these trends. collected data from MBA survey responses
regarding three cultural dimensions given by
2.0 Literature review: Role of social and cultural (Hofstede, 1980). The results of this study suggest
factors in consumer marketing that marketing strategies need to be adjusted to
changing cultures. Culture affects marketing
The buying behaviour of consumers is guided by decisions regarding product, price, promotion and
variety of factors or influences. The consumer place (the 4 Ps).
behaviour includes cultural, social, personal,
economical and psychological influences. The The paradigm shift in social dimensions over the
personal factor and psychological influences are years has brought significant changes in the Indian
product of consumers cultural and social society's attitudes toward the roles of various
environment. There exists different school of members of the society. These changes are much
thoughts behind evolution of culture. Since more prominent in older generations of India. He
centuries anthropologists have defined culture in has proposed a strategic roadmap through S-H-A-
differently. (Tylor, 1871) defines culture as that R-E-ing approach to address the changing attitudes
complex whole which includes knowledge, belief, of older generations in this study (Banerjee, 2006).
art, morals, law, custom and any other capabilities The1960's initiated an era of profound social values
and habits acquired by man (sic) as a member of changes, more notable than the economic and
society. Boas popularized culture as a result of demographic changes. It is not surprising, therefore,
groups responses to environmental conditions and that marketers began to focus more and more on
their specific historical development (George, the shifting social climate in their efforts to
1974). The old and new school of thoughts have understand the consumer (Florence R., 1984).
further described culture diversely. (Wright, 1998)
discussed that old school of thought describes EU Ginzberg classified the rapid increase in the
culture as bounded small scale entity; defined number of working women in the United States as
characteristics; unchanging; shared meanings, one of the single most outstanding phenomenon of
identical. So, old school of thought describes a that century. There are four distinct segments in the
culture with a people with some specific women's market. These groups shop differently,
characteristics, which may be defined within a favor different brands, and use the media
specific boundary. New school of thoughts differently. They have different motivations and are
describes features of culture as an active process committed to different life-styles (Bartos, 1978)
and continuously evolving. (Deresky, 2003) conveyed through her article that. They are having
examines culture as shared values, assumptions, a profound impact on the U.S. marketing picture.
understandings and goals that are learned from one Indeed, changes in women's lives. Roberts (2001)
generation, imposed by the current generation, and in her study states that we should expect to find few
passed on to succeeding generations. (Hofstede, major differences in the purchase of consumer

Issue: Volume 2 Apr 2013; Link: icbr.net/0204.35 12


International Center for Business Research
durable goods between families with working and 3. 0 KEY SOCIO-CULTURAL TRENDS- AN
non-working wives. ANALYSIS

Kids pester power was identifies as another major India is a country with heterogeneous culture and it
socio-cultural trend by many researchers. There are is complicated for a marketer to identify common
three sources of power for child consumers: their threads of Indian culture and core values (Banerjee,
own spending power, which has grown 2008). There is general agreement among experts
exponentially since the 1960s in the US and that socio-cultural influence on the personality and
Western Europe; their role as customers of the general behaviour of people in India is very strong
future whose loyalties repay early courtship; and (Shivani et al., 2006). The continuous exposure to
their power over adults purchasing behaviour western world through globalization and cross
points to (McNeal, 1999). It was found from a national media has exposed Indians to variety of
systematic review of international evidence that demographic, social and cultural forces. These
food advertising does cause pestering by children forces have laid down the foundation of new socio-
and results in parents buying less healthy products cultural trends among Indians. Some of these trends
that are associated with obesity. This has policy have gradually made inroads in the Indian
implications for marketers and government households in the metro cities and tier I towns
(McDermott and et al., 2006). while some are still at fad phase. These trends has
marched Indian society a long way from being a
Christensen (2002) in his study reported a survey conservative and underprivileged population to a
by GfK Ad Hoc Worldwide on new trends in youth confident and revolutionized one. The women of
culture and language. This paper outlines attitude todays time is not confined to the home and kids
changes in youth with relation to femininity and alone; the youth are the torch bearers of the novel
masculinity; the world of the media and ideas, the men today not just relate with the macho
interconnection; multiculturalism; the importance look they have emerged as a metro sexual men;
of brands; what makes good advertising (humour, and with shrinking globes the families have also
naturalness, openness, harmony, aesthetics, reduced from large joint families to small nuclear
provocativeness, and vision marketing); and the families. Though these trends are so far limited to
social role of companies. urban population but it is the imperative for the
marketers to understand these while designing their
The trends like working women, nuclear families, marketing strategies. Based on the secondary data
kids pestering power, changing youth has been the and observations collected from the Indian
integral part of developed countries like U.S. for scenario, in this section, a verbal model of socio-
many years. Their origin and acceptance in India is cultural trends is proposed (see figure 1). The
comparatively recent. The purpose of this study is model talks about the trends identified for the
to reveal that changing cultural and social factors research purpose and further address those from
affects marketing strategies in many areas application point of view by citing examples of
including new product development, marketing existing marketing practices:
communication and advertising.
Figure 1: Verbal model of socio-cultural trends
Key Forces Emerging Trends

Rapid Increasing women


industrialization workforce
Social and
Globalization Cultural Nuclear Families and
change individual households
Technology Indian
Infusion Consumer Kids pestering power

Changing Teenage workforce


demographics
Rebellion and gadget
Media explosion freak youth

Mobile communities

Issue: Volume 2 Apr 2013; Link: icbr.net/0204.35 13


International Center for Business Research
Growth in women workforce: Indian society marketing strategies.
is primarily governed by patriarch families.
Women have long been confined to the home Nuclear families and Individual households:
doing household work and raising children. Hofstede (1980) identified Indian society as
The women Todays woman has, raised out of collectivist. The Indian economy was
the image of a dutiful daughter/in law, agricultural based and all the family members
homemaker, and a devoted wife. She is the like grandparents, parents, uncle-aunt all used
professional and a working person with her to live together. In India, family plays a vital
own identity (K.Rajakumari, December 2006). role all along. Then the era of industrialization
According to the Registrar General of India, started and with the growing needs the family
the proportion of women in the workforce in members were forced to part from their
1981 was 19.7 percent and it rose to 22.7 parents. Today those times have gone when the
percent in 1991, further rising to 25.7 percent granddaughter use to see a movie on DD
in 2001. Currently, in the Indian IT industry, National with her siblings, cousins, parents and
women account for close to 30 percent of the grandparents on a sunday evening. The size of
total workforce and this is expected to increase the family started shrinking with growing
to 45 percent by 2010 (Narayana, 2007). The industrialization, it reduced from the size of 8
working women offer new opportunities and to 4; 4 to 2; and eventually to 1. The smaller
challenges for the marketers. This trend has families have different needs than the larger
resulted in shortage of time for the women and ones.
increased participation in decision making.
Marketing Evidences:
Marketing Evidences: In India, people search security and prestige
Marketers keep themselves abreast with the within the confines of the near and dear. But
change and incorporate those in their the trend of nuclear families opened the door
marketing program. The home appliances of opportunities for various sectors. For
companies like LG, Samsung and Whirlpool example, HDFC Standard Life Insurance
could identify this trend emerging in India and noticed this growing trend. It could see that old
they introduced host of products to assist parents are staying away from their grown up
women in accomplishing their tasks in limited kids. Further, parents have deep rooted value
time. These MNCs came with products like of self respect which resists them from taking
microwave ovens, food processors to reduce any financial help from their kids. HDFC
the workload of working females. Another Standard Life identified a huge potential
implication of this trend for the marketers is to market here and it introduced various pension
tune their advertising message for the new plans for the old age people to cater to this
women of India. For example, LG electronics newly emerged segment. Apart from it the
has recently came up with a television emergence of 1BHK Flats is also a
advertisement where a husband is waiting for consequence of this particular trend.
his wife to return from her business trip and he
has prepared special dinner for her. This piece Increasing kids pester power: Pester power
of communication reveals a different social has been defined by the Director General of the
setup which is now prevailing in urban Advertising Association as a pejorative term
household. There have been companies who for children making requests of their parents
tried to cash upon this trend but cant position (Brown 2004). Double income no kid
their products properly. The case in point over (Dinkies) exists as profound segment in
here is that of Maggi from Nestle which was developed countries. Government of India has
initially positioned for the working women. taken several initiatives in past to check the
Once this trend gain its momentum companies population explosion in India. The result of
like Nestle and Dabur introduced products like these initiatives is the reduced birth rate in
the readymade pastes of ingredients and urban families. The educated parents believe in
kitchen accessories to safe the cooking time. having not more than two kids. The less
Another example which can be quoted here is number of siblings, increasing number of
the communication developed by Femina a nuclear families and both parents working give
popular women magazine in the recent past. power to kids like never before. The present
The ad soundtrack was know nothing can stop day parents have money for their kids but no
me from trying and breaking the chains and time and as a result of this kids present have
flying, dont stop me, I can be anything I want more self-sufficiency and influencing power in
to be, dont stop me. The kind of products to the family purchase decisions than in the
be produced and the focus on the women as an earlier times. The pending have doubled every
active decision maker is must while designing

Issue: Volume 2 Apr 2013; Link: icbr.net/0204.35 14


International Center for Business Research
10 years for the past three decades and they world. Youths have a strong urge to be a non-
influenced $188 bn of their parents purchases. conformist and this tendency is quite evident
Another amazing survey by Hallis Interactive in their purchase decisions too (Chamoli &
proves that kids aged seven are the most Bhattacharjee, 2006). The availability of
vulnerable to all forms of marketing ranging higher disposable income today allows the
from products like candies to cars. rebellious youth to exercise their choice and
look for brands that add glitter to their image.
Marketing Evidences: Apart from being rebellion the present day
For marketers, this growing power of kids youth is connected to his world through his
plays a vital role. They need to focus on this gadgets. He is busy interacting with his friends
segment because of their significant on social networking sites or playing games on
demographics and purchasing power. For his gaming consoles or mobile phones. The
example, before the era of satellite channels it rising affordability of smart phones like
was just few cartoon programs which were Blackberry, Google Android, Nokia Ovi and
made for the kids and now there exists Apple I-phone will make the youth market
complete channels like cartoon network, pogo more powerful. It is predicted that within three
dedicated to them. These channels have years these phones will be mobile computers
programs dubbed in Hindi to reach this that combine real time data, social network
audience. Again, Levis addressed this segment and highly empowering and entertaining
by providing its license to Jini and Johny a applications (Rishad, 2010). Though its too
leading kids apparel brand to produce clothing early to say that whether this is a trend or just a
range for kids by the brand name of Levis fad for Indian youth but it has significant
Junior. The growth of several kids channels, implications for marketers.
kids brands and marketing communication of
a product like car and other consumer durable Marketing Evidences:
targeting at kids is the result of this evident As a result of this evolving behavior the new
shift in the decision making. urban youth finds it rather difficult to enter a
Bata store, one of the most trusted brands in
Emergence of teenage workforce: The LPG India because they relate it with a trusted
revolution since 1991 has opened the doors of choice for their elders. Again, the leading wrist
various job opportunities for the 10+2 watch brand Titan faced the same situation and
students. The influx of BPOs, restaurants, eventually it was creative product designs and
deregulation of the aviation sector and many marketing strategies which helped the
others has created many jobs for the teens. The company in winning the youth market from the
salaries they draw after working part-time at inexpensive international watches. The recent
this tender age is an important factor which makeover of the Titan logo with the punch
entices them to the products which were out of line Be More also targets at the rebellions.
their reach earlier. Brand like Pepsi is trying to touch this
segment by way of its communication. The
Marketing Evidences: Pepsi says Yeh hai youngistan meri jaan (This
This customer segment casts a new is a young place my life). Apart from this
opportunity for the marketers. The new Pepsi has come up with a gaming
product categories like deodorants and fancy advertisement. Further, the brands like P&G,
low priced imitation jewellery is an outcome HUL and many others are making their
of this trend. Apart from these products, presence on social networking sites to get
marketers of products like cigarettes are also connected with Indian youth. Not only have
making inroads to reach this segment. Case in this Indian movie makers also introduced
point over here is Igen a brand of cigarette video games based on their movie themes to
from GPI which organized weekend parties for get connected with the gadget freak youths.
young BPO executives in Gurgaon to launch
this brand. Mobile Communities: One of the major shifts
in the socio-cultural environment of the
Rise of rebellion and gadget freak youths: In customers is that the present day customer is
India family elders play an important role of highly mobile. In the past decades the
transforming the values to next generation but movement was from the rural to the urban
with cultural adaptation Indian youth is on the belts, while today its among the cities, states
way of becoming non-conformist. Rebellion and even across the borders. Moreover the
has always been the buzzword that has extent of motion is so high that the people have
captured the imagination of youth across the their breakfast in one city while dinner in
another. This fast and continuous movement

Issue: Volume 2 Apr 2013; Link: icbr.net/0204.35 15


International Center for Business Research
has led to the emergence of a new segment of From the above discussion we may conclude
customers who not only being Cosmopolitan in that the shift in the socio-cultural environment
their taste, also always look for convenient resulting in the emergence of various new
products and packaging to meet their segments of customers have made it must for
requirements while they are on a move. the companies to shift their resources from
traditional products, distribution and
Marketing Evidences: communication channels in new direction. It
The marketers are continuously evolving with has been found that even after tremendous
the new products and communications to exposure to globalization, consumers from
captivate this segment. In India, the food different cultures may remain reluctant to
preference change with every hundred purchase foreign products (Suh and Kwon,
kilometers. There exist different cuisines from 2002). The global marketers need to identify
north to south. To address this, MTR, a food above mentioned trends in Indian context and
brand has introduced variety of processed and consider them properly while marketing their
ready to eat Indian meals. Through their brands. Inputs about Indian social and cultural
campaign, MTR addressed the same trend. The trends can be of immense use to brand
tag line of ad created as, Upma jo maa ki yaad managers to develop their marketing toolkit to
dila de (Upma a dish which reminds of minimize chances of failures. A table
mother) to position MTR as a brand which summarizing the aspects that have to be
gives the taste of mother cooked food. considered at the time of marketing brands in
the evolving India may be projected to
facilitate market penetration in Indian market
3.0 Conclusion (see Table I).

Emerging Trends Earlier socio-cultural dimensions Toolkit


Women workforce Man was the bread earner, prominent -New products tailored to
role of woman in the family as a mother, the needs of this segment
daughter, daughter-in-law and wife. -Create communication
message focussing on the
women
-Strike a balance between
core values and changing
behaviour
Nuclear families and Joint family living together -Anticipate the challenges
individual households of nuclear families and
cater them through product
and promotion
Kids pestering power Siblings more than two and each getting -Address kids without
divided attention from parents hurting the sentiments of
parents
Teenage workforce Students completing their education first -Appreciate their age and
and then going for the job role in family and create
products to meet their
needs
Rebellion and gadget Children have to follow their elders in -Innovate and integrate
freak youth apparels, foods and career. Television marketing communication
was the gadget available to them. to get connected via social
networking sites, gaming
consoles
Mobile communities Residing and working in the native place. -Position your products on
Limited work related travels. the basis of convenience
and build your brand on
the basis of home comfort
Table 1: Socio-cultural trends and marketing toolkit for Indian market

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International Center for Business Research
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