Recap of 22nd Nov session

Segment Attractiveness-it is about the manner in which a company comes out in its own way to communicate to people.

in the present world,people have become more conscious about legal aspects regarding a company. so there has been an modification of PEST analysis to address the legal aspect and further termed as PESTL analysis.In India ,with the enforcement of the RTI act people have gained a tool to question any wrongdoing.Indian people have become very finicky like the US people and do not want to engage with companies facing legal issues.

Telecom being an attractive segment,many companies ventured in this sector but Uninor is facing legal issues regarding licenses acquired through unfair means.
At times when indian stock market seemed scaling heights,there was the scam of demat accounts where people traded through multiple accounts.
Reality shows on Indian channels have become an attractive segment .Certain shows have crossed a limit and are broadcasting content inappropriate for cetain audience .This has forced the government to become cautious and take steps such as to change timings which can affect show TRPs.

In short,it has become essential for companies to be aware of existing laws so that they do not cross the line where their business get affected in negative direction.

Another concept existing in today's world is that of Parasitical Marketing,where certain stores (or mini-stores) act as parasites in the shopping malls
e.g.Virgin mobile stores-sell new mobile connections to people who mainly visit malls for window shopping.
jawed habib salons in malls also attract customers in a similar manner.


Segment Profitability
Certain segments which are attractive but not profitable
e.g. education sector was profitable during 1990s but in the present time it is not because of cut throat competition and certain legal issues.
unorganised durable stores with upcoming of Organised stores like Next(in electronics) are not profitable (their main drawback is that they cannot come up with their own brands as in case of FMCG goods).

In case of retail sector ,we can say it was not profitable although attractive.So subhiksha ,spencer faced problems in their businesses.subhiksha unlike hypercity opened many chains without consolidating on single outlet which proved non-beneficial .
In retail sector,if questions like"is ticket size (e.g. male grooming) increasing?" get positive response ,then it can be considered as profitable segment.(Note: ticket size can be explained like a customer's expenditure in a salon increasing as he goes for facial and all).
but pantaloons made an intiative to make the segment profitable by placing its brand of john miller along with other brands (without letting the customer know about it)

In telecom sector,if the ARPU is increasing ,then it can be said to be a profitable segment in a particular market.

we can learn that segment attractiveness should not be the basis if the segment is not profitable.In short, consolidation should be the first step/priority.


we can pose a question whether attractiveness of IPL (in seasons 1,2,3) be made profitable (in season 4).