Market Analysis and Digital Transformation

SESSION 3 Evaluating Markets Economic Insights and Opportunity Sizing Key economic Indicators Here's how the TAM, SAM, and SOM for smartphones in India in 2023 can be estimated: 1. Total Addressable Market (TAM) – Total Potential Market 3. Serviceable Obtainable Market (SOM) – Achievabl...

SESSION 3 Evaluating Markets Economic Insights and Opportunity Sizing Key economic Indicators Here's how the TAM, SAM, and SOM for smartphones in India in 2023 can be estimated: 1. Total Addressable Market (TAM) – Total Potential Market 3. Serviceable Obtainable Market (SOM) – Achievable Market TAM represents the total market demand for smartphones in Share India, including all potential users. SOM estimates the actual market share a company can capture Total Smartphone Users in India (2023): ~700 million based on competition and production capacity. Projected Smartphone Users by 2025: ~1 billion (Statista) Total Smartphone Shipments in 2023: ~146 million units (IDC) Total Market Revenue: $38 billion in 2023 (Counterpoint Market Share of Top Players (Samsung, Vivo, Xiaomi, Apple, Research) Realme): ~80% combined TAM (India 2023) ≈ 700 million users or $38 billion revenue Remaining Market Available for New/Other Brands: ~20% (≈ 29 million units) 2. Serviceable Available Market (SAM) – Targetable Market Revenue Opportunity for New/Expanding Brands: ~$5–7 Segment billion SAM considers urban smartphone users with disposable SOM (India 2023) ≈ 29 million users or $5–7 billion revenue income above a threshold, meaning those who can afford mid-to-premium smartphones. Urban Smartphone Users (2023): ~400 million (IAMAI & Nielsen) Metric USERS Revenue Middle-class & High-income Households: ~300 million people (~75% of urban smartphone users) TAM 700Millions 38 Billion Premium & Mid-range Segment Revenue: 60% of total SAM 300M 23B market revenue ($23 billion) SAM (India 2023) ≈ 300 million users or $23 billion revenue SOM 29M 5-7B  SESSION 4 Digital Transformation and E- Commerce – Unlocking Opportunities in International Markets The Role of Technology in Internationalization how digital transformation drives global competitiveness. Enhanced Efficiency & Productivity – Automation, AI, and cloud computing streamline operations, reduce costs, and improve decision-making, allowing businesses to operate faster and smarter. Improved Customer Experience – Digital tools, data analytics, and personalization enhance customer interactions, increasing satisfaction and loyalty in highly competitive markets. Innovation & Market Expansion – Digital transformation enables businesses to create new products, enter global markets, and leverage e-commerce, widening their reach beyond geographical limitations. Agility & Resilience – Companies leveraging digital technologies can quickly adapt to market changes, disruptions, and evolving consumer demands, maintaining a competitive edge. Importance of digital tools in enabling market access. Breaking Geographic Barriers – E-commerce platforms, digital marketing, and online payment systems allow businesses to reach global customers without needing a physical presence. Data-Driven Targeting – Analytics, AI, and CRM tools help businesses understand consumer behavior, optimize marketing strategies, and target the right audience more effectively. Cost-Effective Scaling – Cloud computing, automation, and digital supply chains reduce operational costs, making it easier for businesses of all sizes to expand into new markets efficiently. EXAMPLES?.... What is DIGITAL TRANSFORMATION the process of integrating digital technologies into all aspects of a business, fundamentally changing how it operates, delivers value to customers, and competes in the market. It involves adopting innovations such as cloud computing, artificial intelligence, automation, data analytics, and digital communication tools to improve efficiency, enhance customer experiences, and drive business growth. Beyond technology, digital transformation also requires cultural and organizational change to remain agile and competitive in a rapidly evolving digital landscape. Technologies Enabling Internationalization…. discuss E-commerce Platforms: Expand market reach and enable direct sales Artificial Intelligence (AI): Enhance market insights through predictive analytics. Cloud Computing: Enable remote collaboration and data access. Digital Payments: Facilitate cross-border transactions How digital tools assist in market research and analysis 1.-Data Collection & Consumer Insights – Digital tools like web analytics, social media monitoring, and surveys gather real- time data on customer behavior, preferences, and trends, helping businesses make informed decisions. 2.- Competitor & Market Analysis – AI-powered tools and big data analytics track competitors, industry trends, and market dynamics, allowing businesses to identify opportunities and threats. 3.- Predictive Analytics & Decision-Making – Machine learning and statistical modeling analyze historical data to forecast demand, optimize pricing strategies, and improve product development for better market positioning.  Big data analytics for understanding Online tools for competitor benchmarking and pricing consumer behavior and market trends. strategies. Google Analytics – Tracks website traffic, user Price2Spy – A powerful price monitoring tool that tracks behavior, demographics, and conversion rates to competitor prices in real time, detects pricing changes, and help businesses understand their audience and provides automated repricing recommendations. optimize digital marketing strategies. Similarweb – Analyzes competitor website traffic, audience SEMrush – Provides keyword research, competitor demographics, and engagement metrics to benchmark analysis, and SEO insights to help businesses identify performance and refine marketing strategies. trends, improve search rankings, and refine content marketing strategies. SpyFu – Helps businesses research competitor keywords, ad SurveyMonkey – Enables businesses to create and campaigns, and strategies to optimize their own digital distribute surveys for collecting customer feedback, marketing and pricing approaches. measuring market sentiment, and gaining insights into consumer preferences.  Social media analytics for real-time customer feedback Enabling Localization and Consumer Engagement Automated Translation & Cultural Adaptation – AI-powered tools like Google Translate and DeepL provide real-time translation, while natural language processing (NLP) ensures culturally relevant and context-aware localization of content. Personalized User Experiences – AI analyzes user behavior, preferences, and regional trends to tailor content, product recommendations, and marketing strategies to different markets, improving engagement and conversion rates. Dynamic Pricing & Market Customization – AI-driven analytics adjust pricing, promotions, and services based on local demand, competition, and economic conditions, ensuring businesses remain competitive in diverse markets. Mobile apps tailored to regional preferences………….. How, why? Operational Efficiency and Scalability Cloud-based systems for supply chain management Real-Time Visibility & Tracking – Cloud-based platforms provide instant access to inventory levels, shipments, and supplier data, improving decision-making and reducing delays. Enhanced Collaboration & Connectivity – Suppliers, manufacturers, and logistics providers can access and share data in real-time, improving coordination and reducing bottlenecks. Scalability & Flexibility – Cloud systems adapt to business growth, allowing companies to scale operations efficiently without major infrastructure investments. Cost Savings & Efficiency – Reduces IT costs, minimizes manual processes, and optimizes resource allocation, leading to lower operational expenses. EXAMPLES?... ML? The Future of Technology in Global Trade Potential of blockchain for secure transactions and transparency…. an advanced database mechanism that allows transparent information sharing within a business network Metaverse and virtual trade shows….future implications Implications of 5G technology on global communication. Faster Data Transfer & Reduced Latency Enhanced IoT(internet of things) Connectivity Improved Global Accessibility & Mobile Innovation  SESSION 5 Culture and consumption: Social factors driving global business Key demographic and cultural trends play a crucial role in shaping product acceptance in international markets. Here are some major factors to consider: Demographic Trends Aging Population: In developed nations like Japan and many European countries, an aging population increases demand for healthcare, wellness, and accessibility-focused products. Urbanization: As more people move to cities, there’s greater demand for convenience products, fast- moving consumer goods, and smart technologies. Rising Middle Class: Emerging economies (e.g., India, China, Brazil) see a growing middle class with increased purchasing power, leading to higher demand for premium goods and branded products. Youth Consumer Influence: Younger generations, especially Millennials and Gen Z, prioritize digital engagement, brand authenticity, and sustainability when making purchasing decisions. Migration and Diversity: Increasing multicultural populations in various countries create demand for culturally diverse products, such as ethnic foods, fashion, and media. Cultural Trends Local Preferences & Traditions: Cultural norms affect product design, branding, and marketing. For example, colors have different meanings across cultures (e.g., red symbolizes good fortune in China but warning or danger in Western cultures). Health & Wellness Focus: Consumers worldwide are shifting toward healthier lifestyles, increasing demand for organic food, fitness products, and mental wellness services. Sustainability & Ethical Consumption: Eco-friendly products, fair trade sourcing, and sustainable packaging are becoming key differentiators for global brands. Technology & Digital Transformation: Mobile-first economies, e-commerce growth, and the influence of social media (especially TikTok, Instagram, and WeChat in different regions) shape how products gain acceptance. Religious & Ethical Considerations: Religious beliefs influence product development (e.g., halal food in Muslim-majority countries, kosher certification in Jewish communities). Implications for Businesses Localization Strategy: Brands must adapt products and marketing to align with local preferences and cultural sensitivities. Personalization & Digital Engagement: AI-driven recommendations, influencer marketing, and user-generated content play key roles in product acceptance. Sustainability & Ethical Branding: Transparency and environmental responsibility can significantly impact consumer trust and loyalty. Adaptation to Changing Lifestyles: Companies should monitor shifts in work-life balance, remote work trends, and evolving family structures to meet consumer needs. Responsible Consumption 1 Sustainability & Eco-Friendly Products – Consumers increasingly prefer products with sustainable sourcing, biodegradable packaging, and carbon-neutral production. Brands like Patagonia and Unilever emphasize eco- conscious practices to attract responsible buyers. 2 Ethical & Fair Trade Practices – Shoppers demand transparency in supply chains, supporting brands that ensure fair wages, ethical sourcing, and cruelty-free production (e.g., Fair Trade-certified coffee, ethical fashion brands). 3 Minimalism & Conscious Consumption – The rise of minimalism promotes buying fewer, high-quality, and durable products instead of fast fashion or disposable goods, driving demand for long-lasting and repairable products. 4 Corporate Social Responsibility (CSR) & Brand Accountability – Consumers expect businesses to take a stand on social and environmental issues, leading companies to invest in sustainability programs, carbon offset initiatives, and social impact projects.  SESSION 6 Sustainability as a competitive advantage: The environmental dimension in global business  Global trends : Eco-friendly and ethically produced goods Growth in Consumer Interest and Market Share Consumer Willingness to Pay and Business Impact Increased Online Searches: Global Willingness to Pay More: 55% of online searches for sustainable goods consumers are willing to pay a premium for have risen by approximately 71% over the eco-friendly brands. past five years. Business Dasher Business Dasher Generational Insights: Millennials lead in Purchasing Behavior: 72% of eco-conscious spending, with 73% willing to consumers report buying more eco- pay more for sustainable offerings. friendly products now than they did five Business Dasher years ago. Business Benefits: 77% of businesses Business Dasher report that sustainability initiatives increase Market Share Expansion: Products customer loyalty, and 63% note a boost in marketed as sustainable now hold a 17% brand revenue. share of the overall market, growing 2.7 Business Dasher times faster than conventional products. TheRoundup Regulatory requirements for emissions reduction and waste management, examples of agreements Paris Agreement Commitments: Requires countries to set and meet Nationally Determined Contributions (NDCs) for reducing greenhouse gas emissions, aiming for net-zero emissions by mid-century. EU Green Deal & Circular Economy Action Plan: Enforces strict waste management policies, including extended producer responsibility (EPR) and mandatory recycling targets to reduce landfill waste. U.S. Clean Air Act & EPA Regulations: Establishes emissions standards for industries and vehicles, including limits on carbon, methane, and hazardous air pollutants, with strict compliance and reporting requirements. Impact on Business Strategies: Consumer Preference & Brand Loyalty: 73% of global consumers prefer brands with strong sustainability commitments, leading to increased customer trust and long-term loyalty. Premium Pricing & Revenue Growth: Eco-friendly products command up to 20% higher prices, with sustainable brands growing 2.7x faster than conventional ones. Regulatory Compliance & Risk Reduction: Companies with sustainability strategies are better positioned to meet evolving regulations, avoiding fines and reputational damage. Investor & Stakeholder Appeal: ESG-focused businesses attract more investment, with 88% of investors considering sustainability in decision-making. Operational Efficiency & Cost Savings: Sustainable practices like energy efficiency and waste reduction lower costs and improve supply chain resilience.  Leveraging Sustainability for Market Opportunities Rising Demand: 72% of consumers prefer sustainable brands, and 55% are willing to pay more for eco-friendly products. 🔹 Key Certifications Driving Purchases: 🔹 Case Study – Unilever’s Success: Fair Trade: Ensures ethical labor, fair wages, Sustainable brands (e.g., Ben & Jerry’s, Dove) grow 50% faster and sustainable farming (e.g., coffee, than others. chocolate). 60% of Unilever’s revenue now comes from eco-friendly USDA Organic: Guarantees no synthetic product lines. pesticides or GMOs in food products. Rainforest Alliance: Promotes biodiversity and responsible sourcing in agriculture. Energy Star: Certifies energy-efficient appliances and electronics.  Circular Economy Principles What is a Closed-Loop System? A sustainable model where materials are reused, recycled, or repurposed to minimize waste and resource consumption. IKEA’s Buy-Back Program Customers return used furniture in exchange for store credit. Items are resold, refurbished, or recycled, reducing landfill waste. Industry Applications: Supports IKEA’s goal to become a Fashion: H&M’s garment collection program recycles old fully circular business by 2030. clothes into new textiles. Electronics: Apple’s trade-in and recycling programs recover materials like aluminum and rare earth metals. Automotive: Companies like Renault remanufacture car parts to extend product life and reduce waste.  Emerging Trends Carbon Neutrality Goals Corporate Commitments: Amazon: Net-zero carbon by 2040 (Climate Pledge). Microsoft: Carbon-negative by 2030, removing all past emissions by 2050. Apple: Carbon-neutral supply chain and products by 2030. Key Strategies:Renewable energy adoption (solar, wind). Carbon offset programs (reforestation, carbon Green Financing: Driving Sustainable Growth capture). Green Bonds: $500B+ issued in 2023 for Sustainable supply chain transformation. renewable energy and eco-projects. Sustainability-Linked Loans: Companies get better loan terms for meeting ESG goals. Investor Demand: 88% of institutional investors consider sustainability in financial decisions.