November  2009
volume I  issue 6
Trends in International Marketing...India takes centre stage
   by Walter Vieira, Senior Management Consultant, Author, Columnist, Visiting Professor and Associated Director, SKP

Associate Director of SKP Group and President of MAS, Walter Vieira has been described by Philip Kotler, the eminent ‘Marketing Guru’, as one of ‘the best speakers on Marketing in Asia’. Walter’s areas of expertise include market research, marketing strategy, entry strategy; customer satisfaction surveys; training and seminars in marketing orientation, making his advice in dealing with cross-cultural issues in international marketing much sought after.
When questioned about the India’s current investment climate, here’s what Walter had to say…

If I were to advise a multinational corporation who were intending to enter India, or even considering the prospect, I would focus on just these 6 points, as an introduction.

  1. No company can claim to be truly global corporation, without being present in India and China. These two countries constitute 2 billion and more out of the world population of 6 billion.
  2. While the economies of the West have been battered – with USA growing at 2%, and Europe at nil; and Japan at a minus, India and China are showing big growths. Even after downsizing, with the global economic meltdown, India will grow at least by 6.5% of GDP in 2009/10.
  3. While the West and Japan, is aging and China is anxious to now amend its ‘one child’ policy – India is a nation of the young – with 60% of the population below 25 years of age. There is a vibrancy of youth; which provide markets for the future.
  4. However, doing business in India is a complex undertaking. This is a ‘heterogenous country’. Many languages, many food habits, many dress codes and varied physiognomy. Even China is far more homogenous. The largest following of any single language in India is 40%. Every world religion is represented in India.
    Therefore, marketing plans for India have to be very carefully laid out. One needs to really master the art of differentiation and of positioning. “One size fits all” cannot be a clarion call for India.
  5. India is a pot pourri of different customs and social mores. Between urban and rural. Between different parts of the country. Therefore one has to understand cross-cultural mores, to prevent ‘gaffes’ being made. You need to spend more time studying India’s social pattern, than in any other country.
  6. India is not the easiest place to do business in. Officialdom and outdated laws, slow down the pace to starting a business. India has been ranked 121 out of 184 countries in the scale for ease of doing business. A new entrant needs lot of patience and perseverance. Even more, if the last project was in Singapore or New Zealand.

Yet India beckons. There are opportunities and there are challenges. It is not low hanging fruit – but when the tree does bear fruit, it will have been worth the effort.

As many multinationals operating in India have shown. And some of them have also proved that ‘the early bird gets the worms!
INSIDE THIS ISSUE
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