1. Decoding Lucknow INDEX = INformation through Disguised EXperimentation Annual market research fair by students of IIM Lucknow. To understand the patterns in consumer behaviour through powerful disguised game design Involves participants from diverse backgrounds What we missed out in 17 years? Documentation or sharing of Learning & methodology with Academicians & marketers

2. REGISTRATION GAMIFICATION for data collection SECONDARY RESEARCH STUDIES DETAILED INTERVIEWING Value add in 2012 & 2013

4. Understanding changing facet of Lucknow’s Consumer

5. Changing pattern of socio economic profile SEC %200720082009201020112012CAGR Lucknow (HHlds in 000)1296129812881292129913413.2 A18.917.316.016.418.019.60.7 B21.220.920.3 19.119.2-1.9 C18.118.518.7 17.616.0-2.4 D18.719.119.518.718.418.2-0.6 E23.124.425.425.826.927.03.1

6. Changing pattern of Household Premium Index 200720082009201020112012CAGR Avg MHI56155560578777288422945211.0 Avg HPI22421625728135644114.5

7. Changing pattern of Family Structure Family Structure200720082009201020112012CAGR Joint17.616.915.216.614.814.4-4.0 Nuclear without elders60.964.668.069.271.470.32.9 Nuclear with elders17.213.613.210.510.611.7-7.5 Siblings living together1.91.60.80.6 0.5-22.2 Others2.33.32.62.92.62.94.5 Avg HHld Size5.35.1 5.0 4.9

8. Changing pattern of Family Structure Education200720082009201020112012 CAG R Est. Individuals (000s)2048211821902264233924183.4 Illiterate17.518.017.317.217.917.70.3 Literate82.582.082.782.882.182.3-0.1 School upto 9th Standard32.630.632.034.135.934.00.8 SSC / HSC28.229.6 26.324.825.8-1.8 Graduate15.2 15.314.815.215.40.3 Post Graduate6.66.75.87.56.27.21.5

9. Changing pattern of Family Structure Occupation200720082009201020112012 CAG R Skilled /Unskilled workers/Petty Traders23.122.923.322.826.424.20.9 Shop Owner5.45.16.46.14.85.0-1.7 Businessman / Industrialist2.01.61.0 1.21.4-6.9 Self-employed Professional0.7 0.40.7 0.6 Clerk/Salesman4.54.25.65.14.04.70.8 Supervisory level1.71.91.63.72.5 7.7 Officer / Executive3.3 2.02.33.53.1-1.1 Not Working / Housewife34.435.335.032.536.134.80.2 Student21.8 21.922.817.720.3-1.4 Retired3.03.22.53.23.13.31.8

10. Changing pattern of Home appliances ownership Durables200720082009201020112012CAGR Air cooler43.548.647.354.557.056.15.2 Electric Geyser4.84.7 7.38.511.218.2 Vacuum Cleaner2.92.6 4.64.1 7.1 Electric Water Purifier4.04.76.711.311.913.727.9 Microwave Oven3.22.83.74.46.57.619.1 Refrigerator52.552.050.755.357.561.53.2 Washing Machines22.520.519.525.626.328.64.9 Air Conditioner2.73.74.14.46.78.826.4

11. Changing pattern of Twowheeler penetration Transportation Equipments200720082009201020112012CAGR Four Wheelers7.16.58.19.09.112.612.0 Two Wheelers45.243.542.244.446.045.90.3 1-4 Million Towns Four Wheelers5.76.16.77.29.29.911.7 Two Wheelers38.239.539.642.243.944.63.2

12. Changing pattern of ownership of Entertainment & Communication Equipments Lucknow 200 7 200 8 200 9 201 0 201 1 201 2 CAG R TV82.679.980.581.881.385.40.7 Satellite Availability41.648.254.260.665.375.012.5 DTH Availability0.00.61.62.14.56.3 PC / Desktop Computer5.07.9 10.310.915.525.1 Internet access at home1.92.63.05.07.19.437.7 Telephone (Landline)21.219.518.913.08.710.6-12.9

13. Changing pattern of Food and Beverages consumption Food & Beverages200720082009201020112012CAGR Tea99.898.8 99.698.798.6-0.2 Coffee - Instant or Filter21.417.718.524.927.332.78.8 Milk Powder0.8 1.00.91.411.4 Edible Oil98.197.298.096.997.898.60.1 Biscuits93.594.596.696.298.398.41.0 Glucose12.824.426.423.129.339.425.2 Vanaspati42.638.655.466.556.252.54.3 Ghee / Desi Ghee35.933.330.837.741.651.47.4 Ketchup / Sauces20.017.718.123.525.430.99.2 Processed Cheese1.10.61.20.42.24.935.8 Instant Noodles19.116.317.028.546.967.128.5 Jam8.66.310.513.621.728.427.0 Branded Soup2.73.02.83.44.15.916.8 Readymade Tomato Paste5.95.12.63.42.210.111.4

14. Changing pattern of use of Baby Care products Baby Care200720082009201020112012CAGR Branded Baby Foods1.51.8 1.32.63.619.6 Branded Baby Oil2.74.7 5.44.87.422.0 Branded Disposable Diapers0.81.61.21.72.24.137.5

15. Changing pattern of Household care products HHld Care200720082009201020112012CAGR Utensil Cleaners58.448.851.950.552.755.0-1.2 Washing Cakes / Bars94.795.197.498.197.897.30.5 Washing Powders / Liquids85.989.693.396.093.395.72.2 Toilet Cleaner47.536.241.040.746.653.42.4 Fabric whiteners / blues47.961.070.072.181.675.59.5 Fabric Bleaches2.74.37.16.34.86.719.5

16. Changing pattern of Personal care products Personal Care200720082009201020112012CAGR Lucknow Toilet Soap98.397.798.9 98.298.70.1 Skin Cream47.943.843.653.655.556.73.4 Deodorant7.24.14.96.17.613.6 Shampoo69.867.467.670.473.577.12.0 Hair Dyes / Hair Colorants8.17.57.37.411.213.911.4

17. Changing pattern of Media reach Media Reach200720082009201020112012 CAG R Lucknow Press62.557.260.859.257.460.0-0.8 TV Last 1 week82.2 82.481.183.080.485.20.7 C&S Last 1 week52.351.857.064.268.177.98.3 Cinema3.14.2 2.04.44.78.4 Internet-Usage7.47.98.010.612.516.417.4

18. Comparison of durable penetration in Lucknow vis-à-vis similar Towns DurablesLucknow1-4 Million Towns 2012CAGR2012CAGR Air cooler56.15.229.14 Electric Geyser11.218.2711.8 Vacuum Cleaner4.17.12.55.6 Electric Water Purifier13.727.9832.3 Microwave Oven7.619.15.526.4 Refrigerator61.53.250.96.5 Washing Machines28.64.923.411.1 Air Conditioner8.826.46.425.6

19. Comparison of Transportation Equipment penetration in Lucknow vis-à-vis similar towns Transportation EquipmentsLucknow1-4 Million Towns 2012CAGR2012CAGR Four Wheelers12.6129.911.7 Two Wheelers45.90.344.63.2

20. Comparison of Entertainment & Communication Equipment penetration in Lucknow vis-à-vis similar Towns Entertainment & Communication EquipmentLucknow1-4 Million Towns 2012CAGR2012CAGR TV85.40.787.92.2 Satellite Availability7512.58010.3 DTH Availability6.380*10.374.9* PC / Desktop Computer15.525.112.623.5 Internet access at home9.437.76.737 Telephone (Landline)10.6-12.911.1-12.8

21. Comparison of Food & Beverages penetration in Lucknow vis-à-vis other similar Towns Food & BeveragesLucknow1-4 Million Towns 2012CAGR2012CAGR Tea98.6-0.296.80.2 Coffee - Instant or Filter32.78.8307.3 Milk Powder1.411.44.610.2 Edible Oil98.60.199.20 Biscuits98.4187.92 Glucose39.425.22512.7 Vanaspati52.54.337.1-3.8 Ghee / Desi Ghee51.47.452.93 Ketchup / Sauces30.99.222.611.3 Processed Cheese4.935.85.717.4 Instant Noodles67.128.539.923.2 Jam28.42717.417.1 Branded Soup5.916.84.531.4 Readymade Tomato Paste10.111.44.324.7

22. Comparison of FMCG penetration in Lucknow vis-à-vis other similar Towns Other FMCGLucknow1-4 Million Towns 2012CAGR2012CAGR Tooth Paste92.14.1922.8 Talcum Powder57.23.366.81.2 Hair Oil (HH)81.1185.60.5 Toothbrush96.4890.51.6 Branded Baby Foods3.619.6315.1 Branded Baby Oil7.4224.512.8 Branded Disposable Diapers4.137.5323.7 Utensil Cleaners55-1.2712.3 Washing Cakes / Bars97.30.595-0.1 Washing Powders / Liquids95.72.294.10.6 Toilet Cleaner53.42.446.36 Fabric whiteners / blues75.59.549.6-0.6 Fabric Bleaches6.719.57.320.6 Toilet Soap98.70.198.90.1 Skin Cream56.73.437.72 Deodorant13.6 9.314.6 Shampoo77.1269.23.8 Hair Dyes / Hair Colorants13.911.48.710

23. 2012 INDEX EVENT (Quali and Quanti Indformation) SOUTH AFRICA, JUNE 2013

24. QUESTION: WHAT IS YOUR IMPRESSION ABOUT LUCKNOW CITY AND ITS PEOPLE ?

25. Decoding Lucknow Understanding Lucknowites through Consumer Speak

26. Decoding Lucknow Understanding Changing Facets of Lucknow’s Consumer Decoding Lucknow Understanding Changing Facets of Lucknow’s Consumer PRODUCTS, BRANDS AND VALUES IN THEIR LIFE Soap Mobile Phones Bank Money

27. Quantitative Phase

28. AGEGENDER OCCUPATION SEC

29. CONSUMPION PATTERN & DURABLES OWNED CHOICE OF CAR BRANDS OWNERSHIP OF MOBILECHOICE OF SERVICE PROVIDER

30. MEDIA CONSUMPION PATTERN & MEDIA TOUCH POINT TV CHANNELS RADIONEWSPAPER

31. ASSET OWNERSHIP EXPENDITURE PLAN FOR NEXT YEAR SAVINGS ACCOUNTINSURANCE OWNERSHIP

32. BUYING BEHAVIOR SOCIAL ISSUE AUTHENTICITY OF INFORMATION SOURCE

33. Consumption Style of Lucknowites Basic necessities like electricity, ceiling fan, LPG, 2 Wheeler are owned by most Lucknowites While LESA is leading power supplier, Usha leads in fans, HH in bikes, Samsung in TV, and LG in refrigerator. Other markets are fragmented

34. Other critical outtakes about consumption of durables 1.Usha ceiling fans are owned by most of the people irrespective of demographic categories 2.Hero Honda is owned by maximum respondents in two-wheeler category especially salaried and graduates. Very few people specifically worker/shopkeepers own multiple brands 3.In color TV category, LG and Samsung are the closest competitors in Lucknow. In higher income group LG has more owners than Samsung, where as in middle income group it is the opposite 4.LG is the most owned brand of washing machine followed by Samsung, Whirlpool and Godrej across different demographic characteristics consumers. 5.In case of laptops, significant number of professional graduates own Lenovo, some of the general graduates also own Samsung. Samsung is also popular with businessmen and mid-income people.

35. Communication/Financial Assets Owned Savings accounts are the most preferred financial asset with less believing in Bonds/Shares/MF. PC in form of Desktop/Laptop is most owned with less preference for tablets. 1.PC and Digital Camera have found lesser penetration amongst worker/trader/shopkeeper compared to overall population 2.Salaried lot is the demand driver having higher ownership of all categories specially PC, Digital and Video Camera. 3.Salaried people invest the most specially housing and insurance 4.Education of the CWE has a lasting impact on demand of both durables and financial assets 5.As expected, higher income fuels demand for both durables and financial assets with households having MHI above 60K owning higher proportion of all durables and financial assets.

36. Importance of Money, Time, Energy and Information for Lucknowites Information Currency Energy Currency Time Currency Money Currency Youngsters (especially those in 19-35 years) seem to be most comfortable handling information especially those who are heavy internet users Energy deprivation seems to be increasing with higher age groups especially 35 years and above. Females, married and housewives seem to be especially a victim of energy deprivation Those in 19-35, married, housewives, Gard/Post Grad and those who read newspaper (with 2 mobile connections) seem to be the most feeling deprivation of time available Those above 35 years and married are more likely to be satisfied with the material things they have. TV viewers have greater desire to spend their money on experiences than on material things.

37. Buying behavior of Lucknowites Retail Format preferred Products purchased at supermarkets Important factors while purchasing

38. Mobile ownership in Lucknow Mobile owned Number of Handsets Cost of handset Average monthly bill Most people have either one handset or in some case two. Very few have more than 2 handsets. Going with the modern trend, most Lucknowites have a mobile It seems consumers use mostly mobile sets below Rs. 5000 range with limited cases of mobile sets above Rs.20,000 range Lucknowites prefer to splurge on mobile phone usage with most people paying more than Rs 200.

39. What value does the study provide? 1.Assessed consumption pattern of Lucknowites in terms of: Current spending pattern Future investment Media consumption Sources of information they believe the most Currencies in their life: information, time, energy and money (ITEM) 2.Detailed understanding of what Lucknowites think of Lucknow, different product categories and values Demographic factors which may influence consumption pattern. 3.Analyzed the changing facet of Lucknow and its consumers over last five years Changing pattern of penetration of consumer durables, food and beverages consumption, household care products, personal care products and media reach Compares Lucknow vis-à-vis other similar towns Contributions