Understanding the

Market

Dr. Sapna Nibsaiya

Marketing Environment
• The marketing environment refers to all internal and
external factors, which directly or indirectly influence
the organization’s decisions related to marketing
activities.
• Internal factors are within the control of an organization;
whereas, external factors do not fall within its control.
• The external factors include government, technological,
economical, social, and competitive forces; whereas,
the organization’s strengths, weaknesses, and
competencies form part of internal factors.
Marketing Environment
 Reliance

• "Reliance Industries
Limited," one of India's
largest conglomerates with
diversified interests in
various sectors including
petrochemicals, refining, oil
& gas exploration, retail,
and telecommunications.
Micro Environment
1.Customers:
1. Understanding consumer needs and preferences is vital for marketing decisions.
2. Reliance Retail, for example, uses data analytics to tailor product offerings to local customer
preferences.
2.Suppliers:
1. Reliance's relationships with suppliers, especially in the petrochemical sector, can impact the
cost and availability of raw materials.
3.Intermediaries:
1. Distributors, retailers, and online platforms play a crucial role in the marketing channel.
2. Maintaining healthy relationships with intermediaries ensures efficient product distribution.
4.Competitors:
1. Analyzing the strategies and market positioning of competitors such as Adani Group, Tata
Group, and Bharti Enterprises is essential.
2. Competitor actions can influence pricing and promotional decisions.
5.Internal Stakeholders:
1. Employee morale, skills, and commitment impact the execution of marketing strategies.
2. Internal collaboration is crucial for the successful implementation of marketing initiatives.
Customer Preferences
• Example: Zomato and Changing Eating Habits in
India Zomato analyzed a trend toward home dining
during the COVID-19 pandemic.
• It responded by launching "Zomato Pro"
subscriptions and introducing contactless delivery,
ensuring customer safety and convenience.
• Key Takeaway: Customer-centric innovations based on
behavioural shifts can strengthen market presence.
Competitor Strategies
• Example: PepsiCo vs. Coca-Cola PepsiCo observed Coca-
Cola's increasing focus on health-conscious beverages and
introduced its own sugar-free cola and energy drinks, such as
Pepsi Black and Sting, to compete.
• Key Takeaway: Monitoring competitors helps identify market
gaps and counter-strategies.
Supplier Dynamics
Example:
•
Tesla, a leader in electric vehicles (EVs), faced a critical challenge
with the rising demand for lithium-ion batteries and the global
scarcity of raw materials like lithium and cobalt.
• To ensure a steady supply, Tesla established long-term
partnerships with key suppliers such as Panasonic, CATL, and LG
Chem.
• Additionally, Tesla invested in its Gigafactories to vertically
integrate battery production, reducing dependence on external
suppliers.
Intermediaries and Retail Channels
• Flipkart and Local Kirana Stores
• During the pandemic, Flipkart, one of India’s largest e-
commerce platforms, partnered with over 50,000 local
kirana stores to enhance its last-mile delivery capabilities.
• These partnerships allowed Flipkart to utilize the existing
network of kirana stores for faster and more efficient
deliveries, even in remote areas where traditional delivery
channels were disrupted.
• Flipkart provided these stores with digital tools for order
management, logistics training, and a streamlined payment
system.
Publics (Media and Opinion Leaders)
• Example: Nike and Social Media Trends
• Nike leveraged public figures and opinion leaders on
social media platforms like Instagram to promote its
sustainable product lines, appealing to
environmentally conscious consumers.
• Key Takeaway: Engaging with publics through trending
platforms increases brand resonance.
 Macro- PEST/STEP/PESTLE/SLEPT
• Political and Legal Factors: Government policies related to taxation, foreign
investment, and trade regulations impact Reliance's operations.
• Economic Factors: Reliance Industries operates in an economy that
experiences fluctuations in GDP growth, inflation rates, and consumer spending
patterns.
• Social Factors: Changing demographics, lifestyles, and cultural trends
influence consumer preferences.
• Technological Factors: Rapid technological advancements in
telecommunications (Jio), e-commerce (Reliance Retail), and manufacturing
impact Reliance's strategies.
• Environmental Factors: Sustainability and environmental responsibility are
gaining importance.
• Market Trends: Keeping an eye on industry trends like the shift towards e-
commerce, digital payments, and the adoption of renewable energy sources is
crucial for staying competitive.
Economic Trends
• Case: Airtel vs. Jio Pricing Wars in India
• During Jio’s market entry, its ultra-low pricing disrupted
the telecom industry. Airtel analyzed this
macroeconomic trend of "affordability-driven growth"
and introduced budget-friendly plans while improving
4G services to retain market share.
• Key Takeaway: Economic analysis helps companies
align pricing strategies with consumer purchasing
power.
Technological Trends
• Case: Amazon’s Use of AI and Machine Learning
• Amazon integrated AI for personalized
recommendations and smart supply chain
management, anticipating the rise of e-commerce and
customer expectations for convenience.
• Key Takeaway: Adopting emerging technologies early
keeps businesses competitive in dynamic industries.
Cultural and Social Trends
• Case: Tanishq’s Regional Campaigns in India
• Tanishq launched region-specific jewelry collections to
cater to India’s diverse cultural preferences, promoting
inclusivity and tradition.
• Key Takeaway: Social and cultural trend analysis
enables hyper-localized marketing strategies.
Political and Regulatory Trends
• Case: Uber in India’s Ride-Sharing Market
• Uber adapted to Indian government regulations
requiring ride-sharing companies to display driver
credentials and implement safety measures like in-app
emergency buttons.
• Key Takeaway: Compliance with regulatory trends
enhances credibility and market viability.
Environmental Trends
• Case: IKEA’s Sustainability Initiatives
• IKEA responded to the global shift toward eco-friendly
practices by introducing sustainable furniture made
from renewable materials and launching the "buy-back"
program for used items.
• Key Takeaway: Responding to environmental
awareness trends strengthens brand trust and long-
term relevance.
Demographic Trends
• Case: Paytm and Digital Adoption in Rural India
• Paytm capitalized on India’s rising smartphone
penetration in rural areas to offer simplified digital
payment solutions, capturing a previously untapped
demographic.
• Key Takeaway: Demographic analysis enables market
expansion by addressing unique population needs.
Globalization Trends
• Case: Starbucks in India
• Starbucks partnered with Tata Global Beverages to
adapt its product offerings (e.g., masala chai, paneer
sandwiches) to Indian tastes while maintaining global
standards.
• Key Takeaway: Global companies must localize to
align with cultural and consumer preferences.
Impact on Marketing Decisions
• Pricing Strategies: Economic factors, competitor pricing, and
customer perceptions influence pricing decisions.
• Promotional Activities: Understanding social trends and technological
advancements helps in designing effective promotional campaigns.
• Product Development: Monitoring technological advancements and
customer preferences guides the development of new products and
services.
• Distribution Channels: Evaluating the performance of intermediaries
and adapting to changes in the retail landscape influences distribution
strategies.
• Market Expansion: Analysis of economic and political factors guides
decisions regarding entering new markets or expanding existing ones.
Coke mishap
Case Study
• Case Study- Greeneats
• MM_ Batch 2\Case Study 1- Module 2.docx
Questions??