1. Group Assignment no.02 1 10/22/2009 D-SPARK Group Industry Analysis Group No 08 Vision To achieve 100% excellence in work Mission Putting 600% effort in our work as team and will try to be innovative in our ideas to achieve our vision
3. INTRODUCTION The Indian telecommunications industry is one of the fastest growing in the world and India is projected to become the second largest telecom market globally by 2010. India added 113.26 million new customers in 2008, the largest globally. The country’s cellular base witnessed close to 50 per cent growth in 2008, with an average 9.5 million customers added every month. According to the Telecom Regulatory Authority of India (TRAI), at the end of April 2009, the total number of telephone connections reached 441.47 million. With this growth, the overall tele-density reached 37.94 at the end of April 2009. According to Business Monitor International, India is currently adding 8-10 million mobile subscribers every month. It is estimated that by mid 2012, around half the country's population will own a mobile phone. This would translate into 612 million mobile subscribers, accounting for a tele-density of around 51 per cent by 2012. It is projected that the industry will generate revenues worth US$ 43 billion in 2009-10. 3 10/22/2009
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5. As the advertising outlays of the sectors like auto and telecom swell down due to the low pace in the economic conditions to overcome the manufacturing cost of the products and services.
6. According to a Frost & Sullivan industry analyst, by 2012, fixed line revenues are expected to touch US$ 12.2 billion while mobile revenues will reach US$ 39.8 billion in India.
7. India has become the second country in the world to have more than 100 million CDMA-based (code division multiple access) mobile phone subscribers after the US, which has 157 million CDMA users.
15. Why i should not work in this industry? Why i should work in this industry? Rewards and Recognition Telecom and Technology Lifestyle and Leisure Future and Finances Discounts and Deals Working hours during emergencies. Jobs are mainly for engineersand computers specialist 11 10/22/2009
16. Auto – Four Wheeler 12 10/22/2009
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18. It is one of the largest sources of employment due to its deep backward linkages (in metals — such as steel, aluminum, copper — plastics, paint, glass, electronics, capital equipment, warehousing and logistics) and forward linkages (including dealership retails, credit and financing, logistics, advertising, repair and maintenance, petroleum products, gas stations, insurance, service parts, etc).
19. It provides direct and indirect employment to more than 13 million people. In recent years, the automobile industry has seen an upsurge in its exports to other countries. 13 10/22/2009
27. Why i should work in this industry? Why i should not work in this industry? Local Air Pollution Global Air Pollution Oil Dependency If a specific automobile company opened a new headquarters in a city, the headquarters may bring in business people, tourists, and other people. This would be a positive externality for the city, which benefits from the company's presence. 21 10/22/2009
29. The Indian pharmaceutical industry is driving product development and breaking new grounds in medicine research worldwide. The Indian domestic pharmaceutical market was estimated to be US$ 10.76 billion in 2008 and is expected to grow at a high compound annual growth rate (CAGR) of 9.9 per cent till 2010 and thereafter at a CAGR of 9.5 per cent till 2015. Currently, the Indian pharmaceutical industry is one of the world's largest and most developed, ranking 4th in volume terms and 13th in value terms. The country accounted for 8 per cent of global production and 2 per cent of world markets in pharmaceuticals in 2008. The Indian pharmaceutical offshoring industry is slated to become a US$ 2.5 billion opportunity by 2012, thanks to lower R&D costs and a high-talent pool in India. 23 10/22/2009 INTRODUCTION
30. Total Sales and Projected Growth Drug sales to retail consumers in India grew by 9.8% to $6.98 billion (Rs.34,000 crore) in the calendar year 2008 The growth rate in 2008 was lower than 13.4% registered in 2007, due to a dip in the second half of 2008. After a decline of 1.2% in October 2008, the monthly retail drug sales has improved significantly in the following months with the growth rate of 6.8% in November 2008, 13.3% in December 2008, 14.4% in January 2009 and 13.3% in February 2009, respectively. In the next 4-5 years, this industry is expected to continue to grow at more than 10% to touch the $30 billion mark by 2020. In the long term, the domestic consumption is expected to keep growing at a healthy pace, because currently India’s healthcare spending is only 5.6% of the country’s gross domestic product (GDP), which is among the lowest globally. 24 10/22/2009
31. Companies name Lupin Lab Cadila Healthcare Ranbaxy Labs Dr Reddy’s Lab Ltd Cipla 25 10/22/2009
37. Why i should work in this industry? Why i should not work in this industry? The environment in which the industry operates is becoming more competitive and the research and development [R&D] process to bring a drug successfully to market remains challenging. Drug development is a risky and expensive process and involves combining scientific excellence with a through understanding of the business environment. Tough competition form Multinational Corporations who were waiting for implementation of Product Patents in India. Indian companies are facing Generic competition from “Authorized Generics” in the developed markets The industry is experiencing dramatic global growth that is creating opportunities to save and improve people's lives around the world. Professional opportunities in pharma industry are equally diversified and challenging Compulsory License Bolar Provision Parallel importation 31 10/22/2009
40. Total sales and projected growth According to a newly revised forecast from IDC, worldwide IT spending will grow 2.6% year over year in 2009, down from IDC's pre-crisis forecast of 5.9% growth. In the United States, IT spending growth is expected to be 0.9% in 2009, much lower than the 4.2% growth forecast in August. Looking beyond 2009, IDC expects IT spending to make a full recovery by the end of the forecast period with growth rates approaching 6.0% in 2012. Despite these gains, IDC estimates that more than Rs.1,501,091.70 crore($300 billion) in industry revenues will have been lost due to slower spending over the next four years. 34 10/22/2009
41. Companies name Patni Computers System Rolta India Ltd Sasken Technology Crazy Information Technology NIIT Technology 35 10/22/2009
47. Why i should not work in this industry Why i should work in this industry Zone time difference Very hectic and stressful lifestyle in a long term Hiring fresher at relatively lower salaries. International competition increasing Uncertainty about IT sectors The cyclical nature of projects means that extra work may indeed be necessary to meet project deadlines or to provide 24/7 support White collar job Mostly Salary increases after every 2 years Opportunities to work in multinational companies The information technology (IT) industry has become of the most robust industries in the world. IT, more than any other industry or economic facet, has an increased productivity, particularly in the developed world, and therefore is a key driver of global economic growth. Economies of scale for the information technology industry are high. IT policy to encourage women entrepreneurs and employment 41 10/22/2009
49. The oil and gas industry has been instrumental in fuelling the rapid growth of the Indian economy. The petroleum and natural gas sector which includes transportation, refining and marketing of petroleum products and gas constitutes over 15 per cent of the GDP. Petroleum exports have also emerged as the single largest foreign exchange earner, accounting for 17.24 per cent of the total exports in 2007-08. Growth continued in 2008-09 with the export of petroleum products touching US$ 23.63 billion during April-December 2008. In November 2008, the Cabinet Committee on Economic Affairs awarded 44 oil and gas exploration blocks under the seventh round of auction of the New Exploration Licensing Policy (Nelp-VII). The overall number of blocks brought under exploration now exceeds 200. The allocation is likely to bring in investments worth US$ 1.5 billion. The eighth round of auction is going to be later this year. 43 10/22/2009 INTRODUCTION
50. Total sales and growth Petroleum exports have also emerged as the single largest foreign exchange earner, accounting for 17.24 per cent of the total exports in 2007-08. Growth continued in 2008-09 with the export of petroleum products touching US$ 23.63 billion during April-December 2008. Gas demand in India is dominated by the power and fertilizer sectors which account for 66 per cent of the current consumption. In 2006, the total gas demand was around 152 MSCMD. The gas demand is expected to increase to 320 MSCMD, according to a report by Ernst & Young. Significantly, the share of natural gas in the overall fuel mix is expected to increase from 8 per cent in 2006 to 20 per cent by 2025. 44 10/22/2009
51. Companies Castrol India Ltd ONGC GAIL Indraprastha Gas Ltd Essar 45 10/22/2009
57. Why i should work in this industry Why i should not work in this industry Non renewable natural resources Always need to perform exploration research Worlds largest industry in terms of dollar value Backbone of economy 51 10/22/2009
59. INTRODUCTION The size of Indian paint industry is Rs 13,600 crore (Rs 136 billion) which includes both organised and unorganised sector. Out of this, Rs 8,600 crore (Rs 86 billion) is roughly contributed by the organised sector. Two Major Classifications: Decorative Paints • Caters to the housing sector • Premium decorative paints are acrylic emulsions used mostly in the metros. The medium range consists of enamels, popular in smaller cities and towns. Distempers are economy products demanded in the suburban and rural markets • Distribution Network is the key Nearly 20 per cent of all decorative paints sold in India are distempers Industrial Paints • Include powder coatings, high performance coating and automotive and marine paints • Two-thirds of the industrial paints produced in the country are automotive paints. • Technological superiority and tie-up with automobile manufacturers 53 10/22/2009
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61. Per capita consumption of paint in India is 800-900 grams compared to 15-25 kg in the developed countries
62. Growth rate in the Organized sector expected to be 15 – 17% per annum
63. Unprecedented boom in Housing sector to fill demand for over 30 million new homes.54 10/22/2009
70. Why i should not work in this industry Why i should work in this industry Overseas expansion Boom in Indian Housing Sector Strong Industrial growth Heavy Infrastructure Spending Increase in manufacturing activities Less Seasonality Rise in Income The industry is in a consolidation phase and only those Indian paint companies with a strong technical alliance, better distribution network and an ability to compete in the global markets would emerge victorious in the paint war. The industry is raw-material intensive All the industry majors have a vast dealership network and are required to maintain high inventory levels. The demand for paints is relatively price-elastic but is linked to the industrial and economical growth. 61 10/22/2009
72. INTRODUCTION As per leading market research firm RNCOS (2008) report on “Indian Power Sector Analysis” more than 64% of India’s total installed capacity is contributed by thermal power. Significant jump in unit size and steam parameters will result in higher efficiencies and better economics for the Indian power sector. Western region accounts for largest share (30.09%) of the installed power in India followed by Southern region with 27.76%. Unbalanced growth remains the cause of concern for the Indian power sector. Only about 56% of households have access to electricity, with the rural access being 44% and urban access about 82%. Southern region remains the dominant region in renewable energy source accounting for more than 57% of the total renewable energy installed capacity. Key players currently operating in the Indian power sector are National Thermal Power Corporation Limited, Nuclear Power Corporation of India Limited, North Eastern Electric Power Corporation Limited, Power Grid Corporation of India, Tata Power, etc. 63 10/22/2009
80. Why i should work in this industry Why i should not work in this industry Challenging sector. Innovate ways to adapt fuels for power generation. Pollution during coal and gas generation. Lack of proper metering and theft. 71 10/22/2009
82. INTRODUCTION The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the country and over the years has been growing at a very steady pace. The sector consists of consumer non-durable products which broadly consists, personal care, household care and food & beverages. The Indian FMCG industry is largely classified as organised and unorganised. This sector is also buoyed by intense competition. Besides competition, this industry is also marked by a robust distribution network coupled with increasing influx of MNCs across the entire value chain. This sector continues to remain highly fragmented. 73 10/22/2009
83. Total sales and growth The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. FMCG Sector is expected to grow by over 60% by 2010 It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010 urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. Food & beverages segment leads the revenue pack followed by personal care and home care. Food & beverages segment is growing at 9% and dependent on the season. Personal care segment leads the pack with the growth rate of 10% where home care segment is growing at 9%. 74 10/22/2009
90. Why i should work in this industry Why i should not work in this industry Nationwide opportunities-both urban and rural areas Uptrend in growth Plenty of job option in FMCG Quick experience Job security Competition is high High pressure on profit margin Spending large portion of budget on maintaining distribution network Huge sum of money for promoting brands 81 10/22/2009
92. The Indian retail market, which is the fifth largest retail destination globally, has been ranked the second most attractive emerging market for investment after Vietnam in the retail sector by AT Kearney's seventh annual Global Retail Development Index (GRDI), in 2008. Banks, capital goods, engineering, fast moving consumer goods (FMCG), software services, oil marketing, power, two-wheelers and telecom companies are leading the sales and profit growth of India Inc in the fourth quarter of 2008-09. India continues to be among the most attractive countries for global retailers. India has emerged the third most attractive market destination for apparel retailers, according to a new study by global management consulting firm AT Kearney. It further says that in India, apparel is the second largest retail category, representing 10 per cent of the US$ 37 billion retail market. According to new market research report by RNCOS titled, "Booming Retail Sector in India", organised retail market in India is expected to reach US$ 50 billion by 2011. 83 10/22/2009 INTRODUCTION
93. Total sales and growth The share of retail trade in the country's gross domestic product (GDP) was between 8–10 per cent in 2007. It is currently around 12 per cent, and is likely to reach 22 per cent by 2010. Indian consumer market is likely to grow four times by 2025. Commercial real estate services company, CB Richard Ellis' findings state that India's retail market is currently valued at US$ 511 billion. Further, CB Richard Ellis states that India has moved up to the 39th most preferred retail destination in the world in 2009, up from 44 last year. Future of organized retail in India looks bright. According to recent researches it is projected to grow at a rate of about 37% in 2007 and at a rate of 42% in 2008. It will capture a share of 10% of the total retailing by the end of 2010. 84 10/22/2009
94. Companies Raymond Bata India Ltd Titan Industry Heritage food (India) Trent 85 10/22/2009
100. Why i should work in this industry Why i should not work in this industry Flexibility Perks Variety Growth Career in retailing is exciting and fast paced Shortage of quality real estate and infrastructure Lack of trained workforce Intrinsic complexity of retailing-rapid price changes,threat of product obsolescence and low margin 91 10/22/2009
102. According to a report jointly published by the Federation of Indian Chambers of Commerce and Industry (FICCI) and KPMG, the media and entertainment industry in India is likely to grow 12.5 per cent per annum over the next five years and touch US$ 20.09 billion by 2013. 93 10/22/2009 INTRODUCTION
110. Why i should work in this industry Why i should not work in this industry Faster growing industry. Competetive Intelligence Different segments of industry. Offer carreer opportunities for all High profile career. Short lived career. Innovative ideas 101 10/22/2009
112. Improved performance of the banking industry in India has helped the economy to bounce back to a positive growth level. According to the Reserve Bank of India (RBI), the banking sector in India is sound, adequately capitalised and well-regulated. Indian financial and economic conditions are much better than in many other countries of the world. Credit, market and liquidity risk studies show that Indian banks are generally resilient and have withstood the global downturn well. With market sentiment turning positive due to the formation of a stable newly elected government, the ripple effect is likely to felt across all the financial services in India. The sectors, including banking and insurance, and mutual funds are all beginning to reap the benefits of a good closure for 2008-09. In 2008-09, the Indian economy is estimated to have grown by 6.7 per cent. According to the latest Central Statistical Organisation (CSO) data, financial services and real estate sector rose by 9.5 per cent in the first quarter of 2009-10. 103 10/22/2009 INTRODUCTION
113. Total sales and growth The government has taken a number of steps in recent months to revive the economy, including slashing interest rates, lowering factory levies and more than doubling the limit on foreign investment in corporate bonds. The financial services space is a rapidly growing one in India. The country received US$ 45 billion in foreign currency remittances from non-resident Indians in 2008, the highest in the world. April-May 2009 saw increased inflow in to equity with investors steadily turning positive on equity according to mutual fund analysts. As per the Securities and Exchange Board of India (SEBI), on May 15, net investment of mutual funds in equity was around US$ 83.3 million lowering to US$ 20.5 million on May 21. As against this, net investment of mutual funds in debt has more than tripled from US$ 42.9 million on May 15 to US$ 134.2 million on May 31, 2009. 104 10/22/2009
114. Companies State Bank of India Axis Bank Bank of Baroda Oriental Bank of commerce MotilalOswal Financial Services Ltd 105 10/22/2009
120. Why i should work in this industry Why i should not work in this industry Fixed working hours Job securities(Government Bank) You Don’t have to sweat Oppurtunity to work abroad during career Able to get low rate financial products Not challenging Less growth opportunities Boredom High level of attention to security 111 10/22/2009
122. Non-governmental Organization (NGO) is an agency devoted to managing resources and implementing projects with the goal of addressing social problems. NGOs are of great importance and value for the modern society and hence comes the need of having a marketing strategy for the NGO. This would help the NGO reach the masses and make the common man aware of the work it does. Marketing in an NGO usually means attracting human and capital resources. NGOs today use various marketing principles and techniques to influence a target audience to voluntarily accept, reject, modify or abandon a behavior for the benefit of individuals, groups or society as a whole. However, this is true only in case of some NGOs, while most of them are finding great challenge to collect funds, in building credibility, getting more people involved and in general to carry out its social activities. 113 10/22/2009 Introduction
124. Methodology & Scope The research methodology consisted of collecting primary data by interviewing founders and staff of NGOs. The research covered a specified area of Navi-Mumbai. After covering some NGOs in Navi-Mumbai the research was then extended to some parts of Mumbai and Thane also. The number of NGOs that we as a group visited was 5 in number. These 5 NGOs are in Mumbai The graph below shows the level of functioning of the various NGOs visited. Functioning area of the NGO and its NGOs 115 10/22/2009
128. Unique Methods Of Marketing used By NGO’s The following are some of the unique methods in which NGOs are carrying out their marketing activities. · Exhibitions are usually held by the NGOs to sell products like bags, folders, pouch etc. These products are made of environment friendly material. This helps the NGO to generate revenues for there varied projects and showcase their talent pool. The exhibitions are basically carried out in tandem with schools, colleges and corporate. ·Organizing events like haldikum-kum (for women), SathyaNarayanpuja etc. to form an emotional bondage with the Volunteers. This helps them reach the masses.· Printing calendars with logos and mission of the NGO. This helps the NGO reach the common man and spread awareness about their cause. · Mascots are used by some NGOs to spread messages which impact the common man. (e.g. A mascot for spreading awareness on tree plantation drives.) · Organizing annual functions where volunteers are felicitated and hence encourage them to do more work. · Annual programmes are telecasted on local cable channels. This helps them spread their cause in a more effective way. 119 10/22/2009
130. Conclusion Commercial marketing and non-commercial marketing have a lot in common but at the same time they have some essential distinctions, which depend on type, mission and goals of an organisation. Marketing a nonprofit organization takes the need for being innovative and strategic in identifying ways and avenues to market it. It is also important for NGOs to not only satisfy their target group but also the donor’s needs. - The findings of the research project show that most of the NGOs depend on the traditional methods to market themselves. Like for eg out of 30 NGOs interviewed, 29 depend on donations. NGOs must learn to devise newer and better ways to market themselves, like associating with Academic Institutes and using the potential of students as volunteers. - The analysis done in the report has shown that there are certain strategic areas that NGOs need to concentrate on. The recommendations suggested in this report are some of the ways which NGOs can use for implementation. 121 10/22/2009
131. Bibliography: Official Websites of Companies www.scribd.com www.moneycontrol.com www.linkedin.com www.economicstimes.com www.shine.com www.ibef.org www.wikipedia.org 10/22/2009 122