LUNALIFE April 4th, 2017 | Page 10

Environmental Analysis Continued

LUNALIFE

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India’s population pyramid shows the distribution of age and sex, and the data shows that the largest group in India is those aged 25 to 54 as they make up 40.91% of the population. India has a relatively young population with almost 30% being under the age of 25, and a median age of 27.6 years old (CIA, 2016). This can be demonstrated in the chart below.

It is important to note that nearly 80% of the Indian population is considered to be part of the BoP market, those living under $4,000 USD annually (Unitis Seed Fund, 2005). As Lunpads is targeting BoP consumers, they have a huge opportunity as their target market is composed of 1,338.30 million people, nearly half of them being women. As sanitary products are necessities, it is clear that the demand for such products is very high. The demand for sanitary napkins in India reached presents a huge opportunity for Lunapads. 70% of women in India say they can’t afford to buy them, this suggests over 400 million women in India are in need of affordable sanitary products (Times of India, 2011). Therefore if Lunapads is successful in reaching this market, they will be able to reach economies of scale fairly quickly despite their low cost structure strategy, solely based on the demand for such products

Economic

India is classified as an emerging economy, among the major developing economies, India’s GDP is expected to expand at the fastest pace at 7.6% by 2017 (International Monetary Fund, 2016). In the chart below, India’s GDP for the past three years can be seen, which is evidently increasing and this trend is expected to continue. This growth suggests that productivity in India has been improving throughout the population, which is driving economic growth as well as consumer spending.