1. INDIA: MARKET STUDY
International Marketing
Annie Smith-Bova
Katie Meyer

2. HISTORY
3300 BC 17th Century
§ Indus Valley Civilization § Mughal Empire
§ One of the world's oldest § Taj Mahal
1500 BC § East India Company
§ Vedic Period - the foundation of 19th Century
Hinduism § British Raj - Great Britain is the
500 BC dominant political power
§ Development of 16 republics 20th Century
§ Persian & Greek conquests § Gandhi’s non-violent resistance
led to independence in 1947
16th Century
§ 1991 - Economic liberalization
§ European explorers
§ Trading Posts

3. LANGUAGE & RELIGION
Language Religion
§ According to the constitution, § A way of life
India does not have a national § Hindu: 80.5%
language § Hindu is the most important cultural
§ Official: Standard Hindi – 43% influence on business in India
§ Secondary: English § Dharma: Compassion or the moral
§ English is the language of obligation to contribute to the
international commerce greater good of society; linked
closely to Karma
§ Higher education is conducted
entirely in English § Hierarchical structure still remains
even though the traditional caste
Literacy system has been eliminated
§ Males: 82%, Females: 65% § Muslim: 13.5%

4. CUSTOMS & TRADITIONS
Customs Clothing
§ Highly value extended family § Traditional
§ Male lineage based society § Stitched vs. Unstitched
§ Tradition of elaborate weddings § Westernized clothing is worn appropriate for
§ Yellow, Green, & Red – lucky colors business (weather dependent)
Polite Behavior Superstitions
§ Taking photos reduces ones lifetime
§ Cultural sensitivity to “no”
§ Nothing should be started on a Tuesday
§ Whistling – impolite
§ Wednesday is the best day for important
§ Winking – inappropriate ventures (as “good as gold”)
§ Even-tempered § It is a bad sign to place your hands behind your
Food head when relaxing (can signal the death of
parents)
§ Indicates status and aspirations
§ Never touch someone else’s head
§ Infrequent use of utensils
§ It is not good to give money after sunset
§ Guests, men served first (by women)
§ Use right hand to eat Animals
§ Fasting is common § Owls & Black Cats are bad luck
§ Horses have control over evil spirits

5. CORE VALUES, NORMS & ATTITUDES
Evolving Consumer Profile Branded Products
• Materialistic § Brand preference is category
• Consumerist dependent
• Price-sensitive § Shopping mall concept a growth trend
• Relationship Based Society § Designer brand labels – advertise
success
• Hiring/promotions
§ Workplace displays of success are
Foreign product acceptance
important
§ Always valued foreign products
Weddings
§ Recent trend of “Indian-made”
product preference § Dowry – valuable (gold, precious
gems)
Human Development Index
§ Gift Giving
• .547 (rank: 134)
§ Always reciprocated
• Health .717, Education .450,
Income .508 § All stages of life (birth, death,
marriage)

6. SOCIAL INSTITUTIONS
Caste System
§ outlawed in 1950 (Indian
Constitution) but
discrimination still exists Education
§ Traditional Caste System: § Federal & State Government-
§ Brahmins - Priestly
sponsored, Private
§ Elementary Education
§ Kshatriyas – Warriors/Rulers
§ free & compulsory for ages 6-14
§ Vaishfas - Traders
§ 27% of students are privately
§ Sudras - Servants educated
§ Untouchables § Secondary Education 14-17
Family Life § Participation rate about 33%
§ Cultural emphasis on family § 300 Universities & 15,600
life Colleges
§ 2.5 Mil students/year
§ Shopping as a family activity
§ Women make many purchases, § Tradition-bound, uniform
children consult on tech items standards

7. POPULATION
2011 Census
§ 1.2 Billion People
§ 2nd largest population
§ 52% Male, 48% Female
Growth Rate
§ 1.212%
Average Age
§ 26.5
Age Distribution
§ 54% of population is under 25

8. ECONOMY
GDP Income
§ Purchasing Power Parity: § $3,163 / person
$4.5 Trillion (3rd)
§ Nominal: $1.7 Trillion (11th) Freedoms
§ Growth Rate: 7.2% § Economic: 55% (Med)
Inflation § Corruption: 33% (High)
§ 8.9% § Business: 35% (Low)
§ Trade: 64% (Med)
Unemployment
§ 9.8% Ease of doing business
§ 132 of 183
Workforce
§ 28M/397M workers employed
in the organized sector

9. TRADE RESTRICTIONS
Exports Imports
§ 17th Largest Market § Tariffs
§ Lack of Transparency
Permits § Agriculture: 30-40%
§ Construction – 227 Days – one § Non-Ag: <15%
of the worst in the world § 30% - Prepared Chocolates
Trade Agreements § None on Plain Cocoa
§ South Asia Free Trade Area § Other Barriers
§ Asia-Pacific Trade Agreement § Quantitative restrictions
§ Import licensing
Intellectual Property § Mandatory Testing
§ Significant concerns regarding § Certifications
counterfeiting & piracy § Lengthy customs process
Food Import Regulatory § Cocoa - 45% Imports
Standards § Inflation pressures on raw
materials
§ Meeting to understand the
newest import guidelines and
procedures

10. FOREIGN DIRECT INVESTMENT POLICY
§ Only country with a brand-based FDI policy
Started: 2006
§ Allowed max 51% FDI in a retail enterprise
Updated: 2012
§ 100% FDI is allowed, with conditions
§ Single brand retail store
§ Products must be sold internationally under the same brand
name
§ For companies with more than a 51% share, 30% of sourcing
must be from small or medium scale enterprises (SMEs)

11. HOFSTEDE’S CULTURAL DIMENSIONS
India (orange) vs. US (blue)
91
100
77
62
40
48 56 46
50 61
40 29
0
Power
Distance Individualism Masculinity
Uncertainty
Avoidance Long-term
Orientation

12. BUSINESS CUSTOMS
Doing Business § Greet eldest person first
§ English is used for conducting business, § Business cards should be presented
politics, & education immediately upon introduction
§ Relationship-based business practices § It is rude to talk about business immediately
§ some payoffs expected for government § first discuss family, interests, hobbies
approvals § Accept any gift offered, but do not open it in
§ CPI ranking 95, score 3.1 front of the host.
§ Reciprocal gift required
§ Plan on several visits and refusals before
getting anything accomplished/agreed upon § Business is frequently discussed at dinner/
social functions with spouses
Women
§ Give a gift to your host’s children as a thank
§ Women may experience difficulty asserting you
business power in this male-dominated society
§ Reciprocate dinner invitations with a dinner of
§ Western women sometimes able to negotiate comparable value
directly with Indian men
§ (Western) business dress is appropriate
§ Handshake should be initiated by the man § Try to meet with (& negotiate with) the highest
Customs ranking individual - they make the decision
§ Shake hands/Namaste

13. THE END