Market Analysis and Competition for Sweets App in Indian Cities

This document discusses the market analysis and competition for the Sweets App in Indian cities. It covers demographics, segmentation, target market, market need, competition, barriers to entry, and regulations. The App aims to target users in Bangalore, Delhi, and Mumbai and attract users who are using social media apps such as Facebook, Instagram, and Twitter. The market size is expected to be considerable, with a focus on the age group of 16 to 55 years.

CURRENT ISSUES IN MARKETING
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Market Analysis and the Competition
The market analysis includes conducting a qualitative and quantitative assessment for the
App named "Sweets". The App being determined to be launched at first in the India markets.
Especially in big cities of Bangalore, Delhi and Mumbai the App will be targeted (Voas, Michael
& van Genuchten, 2012). Market analysis is conducted with analysis of competitive forces for
these cities by demographics and segmentation, target market analysis, analysis of market need,
competition analysis, barriers to entry and regulatory analysis.
1. Demographics and Segmentation: Segmentation for the App will be conducted as
below;
Geographic Segmentation: Geographic segment of Indian cities of Bangalore, Delhi, and
Mumbai will be targeted. The focus will be on Indian cities at the initiation and not in
rural areas. The three cities attract a large number of population and social media user
during the day time. The target population will not include those people. It will take
account of users residing only in the cities.
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Figure 1: Usage of Social Media across Indian Geographies
Source: Thinking Aloud, 2015
Behavioral Segmentation: Users who are using social media apps such as Facebook,
Instagram, and Twitter will form an attractive segment for the App. The behavioral
segment that is used to using social media Apps will form the segment for the proposed
new App. The App will conduct marketing activities to attract users from the segment
and also from outside of defined segment in order to gain a greater foothold.
Psychographic Segmentation: Users who are willing to try out an alternative social media
website will be the appropriate segment for the App (Bhave, Jain & Roy, 2013). There
are various users who want to share their local experiences and pictures from localities
and find international platforms not very appropriate for it. These indigenous people will
be targeted for the proposed App.
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Demographic Segmentation: While conducting market analysis, demographics of Indian
cities will need to be understood. The App named "Sweets" will be aimed to be for both
the genders, male and female and the age group from 16 years to 55 years. All income
levels that are using smartphones will form the demographics for the App. Mostly
segment will comprise of those from a middle and lower middle class, who are using less
expensive smartphones. As the upper-income class will target international social media
platforms for interacting.
Figure 2: Demographics Across Social Media
Source: Live Mint, 2016
2. Target Market: The above segments of geographic, behavioral, psychographic and
demographic will be targeted for the App. Users from the above segment will be targeted
using online targeting.
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Figure 3: Social Media Activities Across Towns
Source: Live Mint, 2016
3. Market Need: The drivers of demand in the market are extensive usage of engagement in
social media. Users of social media such as Facebook, Instagram, Twitter, and other
social media networking sites are using it for sharing pictures, experiences and moments.
They are using such sites for purchasing products and services that they like. Social
media websites are making use of the platform to promote and customize products and
services according to user choice and preferences.
4. Competition: Analysing competitive forces within the App market industry, it can be said
that Facebook occupies a leading position. Followed by Instagram and Twitter, and then
other social media apps. This App will face tremendous competition from international
social media Apps.
5. Barriers to Entry: The App will face tremendous barriers to entry. The App will require
a significant amount of investments to make in order to get it operational. However, it
will require continuous technical support and upgradation by tech experts. There will
several bug related problems, which the App developers need to review in a frequent
manner. The brand will be relatively new in the market and it will be competing with
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major well-known international social media Apps. Hence, it will be difficult to attract
investors for funding the launch and promotion of this App. Another pertinent barrier is
that professional turnover is high in this industry; this new App will require technical
experts for coordinating and managing the various features and functionalities of this
App. The success of this App will be dependent upon the expertise with which technical
experts are able to develop it and then upgrade it in regular frequency.
6. Regulations: The App will be launched across major metro cities of India; hence it will
need to follow relevant regulations that are pertinent in the Apps market. The developer
has to consider the legal aspects while launching the App (Tak & Panwar, 2017). The
App needs to adhere to the Founder Agreement, Business Registration, Service Rules,
Vendor Agreements, Employee Handbook, Intellectual Property (IP) rights, Copyright,
Designs, Trademark, Trade Secrets, data security, Disclaimer, Privacy Agreements and
Term of Use.
Size of the proposed market and population
The targeted market segment is thickly populated; hence the App is expected to attract a
considerable number of users (Sadafule, 2014). The proposed market for the cities in Bangalore,
Delhi, and Mumbai is expected to be the same as that of Facebook, Instagram and Twitter. The
size of the population has been proposed taking together data from all cities. The following is the
size of the proposed market;
Cities Social Media Apps
Facebook Twitter Instagram Sweets
(Estimated)
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Male 16 years-
25 years
330,000 210,000 105,000 50,000
Female 16 years-
25 years
530,000 440,000 255,000 45,000
Male 26 years-
35 years
490,000 250,000 225,000 60,000
Female 26 years-
35 years
730,000 310,000 175,000 25,000
Male 36 years-
45 years
1000,000 110,000 200,000 90,000
Female 36 years-
45 years
630,000 540,000 152,000 15,000
Male 46 years-
55 years
330,000 210,000 105,000 50,000
Female 46 years-
55 years
530,000 440,000 255,000 45,000
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References
Bhave, K., Jain, V., & Roy, S. (2013). Understanding the orientation of gen Y toward mobile
applications and in-app advertising in India. International Journal of Mobile
Marketing, 8(1). Retrieved from https://www.mmaglobal.com/files/vol8no1/IJMM-
Summer-2013.pdf#page=63
Live Mint. [Mar 23, 2016]. Social media in India. Retrieved from
https://www.livemint.com/Politics/FqcL24fK5aQ68qC6KzohJO/Social-media-in-
India.html
Sadafule, R. D. (2014). Mobile app development for the Indian market. IEEE software, 31(3),
17-20. doi: 10.1109/MS.2014.67. Retrieved from
https://ieeexplore.ieee.org/abstract/document/6802982/
Tak, P., & Panwar, S. (2017). Using UTAUT 2 model to predict mobile app based shopping:
evidences from India. Journal of Indian Business Research, 9(3), 248-264. doi:
10.1108/JIBR-11-2016-0132. Retrieved from
https://www.emeraldinsight.com/doi/abs/10.1108/JIBR-11-2016-0132
Thinking Aloud. [June 18, 2015]. Rural India Tops Urban India in Social Media Usage With
100% Growth 1400. Retrieved from <http://www.thinkingaloud.in/home/rural-india-
tops-urban-india-in-social-media-usage-with-100-growth-1400-0>
Voas, J., Michael, J. B., & van Genuchten, M. (2012). The mobile software app takeover. IEEE
software, 29(4), 25-27. doi: 10.1109/MS.2012.104. Retrieved from
https://ieeexplore.ieee.org/abstract/document/6265078/
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