2Executive SummaryIn our market research, we have concluded that Indian consumers are inclined toconsume Silk Soy Yogurt on a regular basis. With a potential market of 1.2 billion Indianpeople and an ever expanding consumer income, we believe Soy Yogurt would easily beintroduced into the foreign country. Silk Soy Yogurt consumers enjoy a healthy,nutritious, and active lifestyles. Silk‟s targeted demographic will be initially the Indianmiddle class, and Indians from 15 years old to 60 years old. Silk Soy Yogurt will bepriced and positioned as a great value and great price for a western good. India has beenexperiencing a large economic boom, with developments in infrastructure, livingconditions, trade, and exports. Silk will help customers to be able to enjoy an exquisite,great tasting, healthy, yogurt which fits the lives of busy individuals of the growingIndian middle class.
3IntroductionUnderstanding a country‟s culture is the key to successfully operating a businessin a foreign country. An organization must implement cultural imperatives, supportcultural electives and exclude cultural exclusives in order to appeal to the nativepopulation, government and potential partners. Moreover, individuals in the organizationmust eliminate their self-reference criterion in order to implement effective nativeoperational plans.Sanjay Kumar Singh, student at the Institute of Management Technology in India,stated that, “competence of organizational culture for companies across industries inIndia depends on the practice of beliefs and value systems in which relationships andloyalty, vision of organization goals, uniformity of rules, importance for compassion andcaring are emphasized” (Singh). Singh‟s‟ statement discloses that in order to obtainoptimal employee output, companies must be loyal and compassionate to theiremployees. Further, Indian businesses value the relationship with one another more thanefficiency. Therefore, a new business would have to gain the trust of a company beforethey can become partners. Additionally, an organization must research the nativecountry‟s historical background, geographical setting, social institutions, religion, livingconditions and languages. Fully understanding these elements will allow a company tosmoothly transition and integrate themselves in the foreign country of their choice.Country History
4India is the birthplace of the human race, the birthplace of human speech, themother of history, the grandmother of legends and the great grandmother of tradition.Due to the fact that India is known for such great achievements and people, the businessclimate a lot, making positive changes and a higher business activity. India earned itsindependence from the British on August 15, 1947. The Indians celebrate Republic Dayon January 26, 1950 as the day their constitution was adopted. Other countries likePakistan, Bangladesh (formerly East Pakistan), Myanmar (formerly Burma) and distantplaces like Aden, were all parts of India (Daniel Aharon). The British era in India wasnever one single country, but a collection of kingdoms and authorities with no sense ofunity. Since their independence, nationalists have assassinated three important leaderssuch as Mahatma Gandhi in 1948, the second was Indira Gandhi in 1984 and last was herson, Rajiv Gandhi, in 1991(History of India). The assassination of Gandhi and hisadvocacy of civil disobedience was a passive resistance in a campaign that he was tryingto gain autonomy from Great Britain. The fact that this was going on would have made alarge impact on a product launch in India because setting apart from Great Britain wouldchange the target market and some of the types of products needed in the countries.The Indian Railway is a service that was built from pressure from London in theearly 1840‟s. The building of the railway brought unintended problems as well as hopefor consequences in economic, political and military front (Rail India). With the newrailway it brought India closer together more than ever into an industrial revolution.India‟s has the world‟s fourth largest railway network after those of United Sates, Russia,and China. Indian Railways carry over 30 million passengers and 2.8 million tons offreight daily, this helps India economically prosper (Rail India).
5In 1947, India pronounced an undeclared war with Pakistan (InfoPlease).This war started because the Muslims decided that they were mistreated and the Pakistanisupported them. This war took place in the North West part of India, leaving manyIndians in fear of death and scared. These Indian citizens were not looking into buyingany types of luxury products at this time, due to the terror going on in their part of thecountry. Also at this time, people from other countries would not have wanted toannounce any new product into India because they were not in the place to buy and sellthe products (InfoPlease).Geographical Setting
6India is located north of the equator 20 00N, 77 00 E and borders the Arabian Seaand the Bay of Bengal, between Burma and Pakistan (CIA). India is the seventh largestcountry in the world with a total area of 3,287,263 sq km., 2,973,193 sq km of which island and bodies of water which surrounds the rest of India (CIA).The Indian Ocean,Laccadive Sea, Arabian Sea borders and the Bay of Bengal surround southern India(CIA). India is separated from Sri Lanka by the Palk Strait and the Gulf of Mannar to thesoutheast and the Maldives Islands are 400 kilometers to the southwest (CIA). Animportant aspect of the location of India is the face that it is southern Asia, and there canbe some common confusion about the difference. India has it‟s own businesses and theyare separate from southern Asia. Most of their cliental are the other Indians that are partof their section of the country. When launching a product, a good aspect to know is whatpart of the country that one is launching the product to. They need to know their targetmarket and they need to know about the barriers to the other parts of the country as well.Due to the fact that about half of the country of India is under civilization and a little lessthan half is forested, it is good to know that there is a lot of civilization and people whenoffering a product in India.The northern frontiers of India include the Himalayan mountain ranges, whichborders China, Bhutan, and Nepal. The northern frontiers only include a small section ofthe Himalayan mountains, but it is enough that it lies in the disputed territories of thenorth. The Punjab Plain and the Thar Desert are on the west, along with India‟s borderingcountry, Pakistan (CIA). The Chin Hills and Cachin Hills are located towards the farnortheast; they are deeply forested mountainous areas that separate India from Burma.The border with Bangladesh is clearly defined by the Khasi Hills and Mizo Hills (CIA).
7The Ganges is the longest river that originates in India. The Gamges-Brahmaputrasystem occupies most of northern, central, and eastern parts of India. The Deccan Plateauoccupies most of the parts southern India (CIA). Since the topography of the Gangesriver is very fertile and densely populated, it could be a very important aspect for growingplants and could be used for multiple types of farming. It could be a great impact onintroducing a new product of food that needs fresh produce from local areas, etc. Indiahosts six major climatic subtypes, ranging from arid desert in the west alpine tundra andglaciers in the north and humid tropical regions in the southwest and island territories.The Himalayas act as a barrier to the cold katabatic winds coming from Central Asia.The nation has four seasons; winter (January- February), summer (March-May), amonsoon season (June- September) and a post-monsoon period (October-December)(CIA). Summers in India last from March to May, and the winters last from January toFebruary (MapsOfIndia). India also has something called the “monsoon” season which isthe “rainy” season and that lasts from June until September (MapsOfIndia). There is alsosomething called the “post-monsoon” season and that typically lasts from the months ofOctober until December (MapsOfIndia). The average temperature in the summer in Indiacan reach up to 90-104 degrees Fahrenheit, and the winter can strike a low of about 50-59degrees Fahrenheit (MapsOfIndia).Social Institutions
8Social institutions are a complex, integrated set of social norms organized aroundthe preservation of a basic societal value. India is a very socially institutionalize country,India follows a system called “Caste System” (Sociology Guide). The Caste systemdivides labor and power among society and has divided communities into thousands ofgroups called “Jatis”.The Caste system protects people from negative discrimination but alsoimplements positive discrimination. The caste prohibits people to marry outside of theircaste class. The higher Caste holds the most power. However, there is no room forgrowth. People can also be divided by the language they speak, culture, and economicstatus. Different cities in India have different rules for its community based on itspopulation. Further, when traveling outside to outside cities, the rights that one has intheir home city may be different in another city.Indians overtime have become more flexible with their Caste customs. In Indiancommunities people that live in urban areas are less strict with their customs than peoplethat live in rural areas. In Indian cities people communicate with people of different castesystems while in some rural areas there is still various levels of discrimination.Our group will be taking soy yogurt to India. By researching, we learned thatsome communities might not be as acceptant to our product because of their strict culturalbeliefs. The untouchable or people of a higher caste might not want the people of a lowercaste to enjoy this luxury treat. We also know that people living in urban areas will bemore likely to buy our product more than people in rural area because they are moresocially conscious. We will need to be mindful as to who we market to and how wemarket our product.
10Hinduism is one of the oldest religions in the world. Hinduism dates as far back as5000 years. Hinduism is a very unbiased religion when it comes to assessing their beliefs.There is not one particular God Indians worship; there are over 330 million Gods Indiansworship just like any other religion in our diverse world, Hinduism has its peculiartraditions. Some traditions one may come across is Jyotish, Vastu, Tantra, Karma, Puja,and Yajna (Hinduism Facts).Hinduisms‟ concept about the soul is believed that if you were a good individualin your past life, you will be a very fortunate person in the present. People will neverunderstand that Hinduism is actually more like a way of life for Indians; they live arelaxing and nutritious lifestyle (Hindu Beliefs). In Hinduism Indians‟, believe highly inKarma, karma is a cause and effect relationship. In Karma, if an individual did somethinggood in the past, they will be rewarded for their good deeds. If an individual doessomething wrong, then they will be punished (Hinduism Facts). In Hinduism, it is saidthat once you die one reincarnates into another life (being reborn again). In the Hinduismreligion people are supposed to reincarnate into 8,400,000 life-cycles (Hindu Beliefs).After you live all the life cycles you go to a place called Moksha, and you will receiveyour final emancipation.Hindu‟s oldest form of sacred scripture is called Vedas. It is the oldest form ofliterature in human history. According to these texts some of the main Gods they worshipare named Brahma (the creator of the universe), Saravati (the educator of the universe)(Fun Facts about India). The Gods which they worship all have an effect on the world.Like Vishnu and Lakshmi nourishes the world, whereas Shiv helps keeps the world inbalance (Hinduism Facts). Some holy animals according to Vedas are cows, peacocks,
11mice, and elephants. Overall, Hinduism isn‟t very picky with how to live life but to livein peace and tranquility. There is not any dress code for women; Indians‟ just have tomaintain a decent image.Living Conditions
12Since 1.2 billion people are currently living in India, there are many differentways of living and living conditions. Indians‟ that live in India‟s rural parts make upabout 70% of India‟s whole population and slowly their urban population has beenincreasing, as well as their well-educated population (Living in India). India is one of thefastest growing economies in the world, which means that in the matter of years theireconomy is going to prosper. India‟s growth outlook is positive due to a youngerpopulation, healthy savings and investment rates, and largely increasing integrations intothe global trading economy (Living in India). India, yet has many long term challenges toovercome including poverty, physical and social infrastructure, limited employmentopportunities, availability of quality and higher education, and accommodating rural tourban growing communities (Living in India).India‟s diet and nutrition depends on the religious dietary restrictions of its peopleand also the fact that the food tendencies are regional (Discovering Indian Cuisine).Traditionally, Indians families sit in one circle on the floor and eat as an entire family,mostly with their hands. Indian cuisine changes with the geographic setting, NorthernIndian food is very similar to Pakistani cuisine, which includes meat kebabs and othertypes of grilled meats. In northern India, one the most common foods are the flatbreadwhich is called, “chapati” (Discovering Indian Cuisine).Another food that is very popularthat is related to bread is “naan”, Naan is a type of bread that they eat with a curry-likedish. In the south of India though, rice is a lot more common for them than wheat. Withrice, the Indians eat curries, such as, “dal” which is legumes like chickpeas and lentils(Discovering Indian Cuisine). They also eat their rice with “dosas”, which are savorystuffed flatbreads that are cooked like pancakes. Southern Indian food is called
13Hyderabadi cuisine which is mostly rice because of what they have available to them. Inthe western part of India most of their population are vegetarians. Some of the mostpopular ingredients in the west are coconut and seafood. Western India is mostlydominated by “goan food,” which is mostly fish. A very common type of bread that thewestern Indians eat is something called, “roti” which is commonly served on the side of ameal. Lastly, in the eastern parts of India, seafood is very common and they are mostlyknown for their special and delicious treats, which are mostly made with dairy products.In the east, Indian food consists mostly of lentils and fish and they call it Bangladeshicuisine.Housing in India varies by the different parts of the country and how people livein that part of their region. Housing can vary from palaces to modern day apartmentbuildings, to tiny huts in rural Indian farming villages. Mostly in the Indian culture, themost common structures for extended family is to all share the same house. Brothers,sisters, and cousins commonly grow up together and they mostly call each other theirbrothers and sisters. Grandparents, their sons and daughters, daughters-in-laws andgrandchildren all live in the same house and share the same bathrooms and kitchens(Living in India). Traditionally, the eldest woman in the house sets the menu for the mealand basically does all the cooking. Mostly, the women lives with their in-laws aftermarriage and lives with them until they pass away. Most of the types of houses that arefound in India are big concrete buildings, which are socially meant for middle classIndians. Most houses in India are not expensive to build there are some people who builda lot of apartments in tourist areas. Poor people in India make shacks that look like tentsand they are mostly made out of palm tree leaves.
14Clothing in India varies depending on what one is attending. They have a day-to-day attire that is more casual and socially acceptable for an everyday wear. For weddingsand other “high-end” events, they dress in more of a dress and skirt-like attire with a lotof color (Living in India). Dhoti is the traditional Indian clothing for men and woman,which looks like a unisex dress that falls to the ankles. The Dhoti, is tied around the waistand is about five yards long. The turban in India is a very popular thing to wear for themen. It is very common, but the turban is not worn in the sake of fashion. Their hairturban is a headdress that consists of a long piece of unstitched cloth that is wrappedaround the head. The Indian Sari is a very important piece of clothing that the womanwears. It is a dress that is worn at home or at weddings or any other types of specialoccasion. Most of the clothing that the Indians like to wear is very colorful and bright,which has a lot to do with their tradition.Recreation in India is very exciting and is very alike to the United States. Theyhave a lot of the same types of sports like soccer and field hockey (Living in India). InIndia they enjoy watching and playing cricket as one of their most common dailyactivities. They also play a lot of badminton and are Indian people are very competitive.In India, it is very popular to run marathons for a cause, and Indians‟ also enjoy tennisand volleyball. People in India have places to gamble and a lot of theme parks to get theirentertainment. Some traditional sports are Kancha which is played by using marbles. Thisgame is very popular in cities and in villages by small boys. Kite flying is another activitythat is common in the cities and as well as villages. For the people of India, they have alot of beaches and safari-like activities. They also have a lot of markets that they go tothat have a lot of their culture embedded. At Indian markets they have a lot of foods like
15fruits, vegetables, and meats. They also have a lot of hand-made things such as pursesand jewelry.India has a very basic social security system that caters to a very small amount ofthe countries workforce. In tradition, Indians rely on their extended families for theirsupport when they are sick or in need of money. Due to a lot of urbanization and movingaround, family bonds have become less tight and family unites are a lot smaller now thanwhat they used to be in the past. In India there are two different types of social securityplans, which includes the Employees‟ Provident Fund Organization for pensions and theEmployees State Insurance Corporation (Living in India). Heath care in India is auniversal healthcare system that is run by the constituent states and territories of India(Living in India). The malnutrition of children under three years of age is 42%.Malnutrition in India is not getting any better, even when their economy is getting better.It is very common in the lower Caste System to have little to no sanitation, and thisincludes more than 122 million households to not have toilets.Language/s
16Being bilingual or trilingual is something to be proud of; being able to talkdifferent languages opens many doors to many great and exciting opportunities,especially when doing business in different countries. As a business, before entering acountry or region businesses must know what languages they speak and write in order tomake successful business ventures. In India, the national language they speak is Hindi,Even though the government has made English the national language for 10 years. Indiahas adopted English as their second official language. There are at least 13 differentdialects spoken in India.Hindi was chosen as the number one language in India because it has relations toIndian history. Even though in India Hindi is not the number one language spoken butsince the history is tied with the language it was voted as the official language. Hindi, canbe traced back to far as early as the seventh or eighth century. The history of Hindi can bedivided into four stages: Adikal (The Early Period), Bhaktiakl (The Devotional Period),Ritikal (The Scholastic Period), and last but not least Adhunikkal (The Modern Period)(Daniel Aharon).Gujarati is the second largest language spoken in India, 70% of the population inIndian speak Guajarati. Because of the population in India there are many languages anddialects, due to the fact that Britain had colonies in India the language most spoken wasEnglish. After gaining independence from Britain, English and Hindi have beenestablished as the number one and two languages spoken in India.Introduction
17The strength of a country can be determined by its current economic state. Inrecent years, India‟s economy has been everything, but attractive. In the beginning of2013, India increased taxes on domestic and foreign companies. An employee atPricewaterhouseCoopers stated that the “increase to 5% for foreign companies will havea negative impact as it will include foreign banks and also foreign companies runningoffices for infrastructure projects” (Acharya). This will spook away even more investors,which is one of the main reasons why they are in a fiscal deficit.Moreover, India‟s declining gross domestic product (GDP) growth is directlyaffected by an “uncertainty surrounding government policies…a ballooning deficit, sky-high inflation and a currency that has slumped over the last year” (Harjani). In 2012, theirGDP was at 5.5%, down from the 8% nearly two years ago. Even though they areimplementing new trade policies, investors are still spectacle.Population Analysis
18India with 1.22 billion people is the second largest country in the world. India‟stotal population represents 17.31% of the world‟s population. This means one out of sixpeople on the planet lives in India. India is expected to grow by 1.58% annually and by2030 India will have more than 1.53 billion people living in India. According to the 2012India census, for every 1000 men there are 940 women. Sex ratio is the number offemales per 1000 males in a population. Sex ratio is an important useful tool to measuregender equity within a countries‟ society at any given point of time. Sex ratio‟s changemainly due to social, economic, and cultural patterns of the society in different ways. Themajor cause of decrease of the female birth ratio in India is considered to be the violenttreatments of girl children at the time of the birth. Sex ratio overall has gone throughimprovement in the past ten years, there are still small cities in India where the sex ratiois still low. Men and women who are from a low caste or poor suffer, permitted, or evenencouraged to marry up into a higher income bracket or caste, so richer men find it easierto get a bride. The poor of India are forced into a long marriage, a status which is widelyfrowned upon in India, where marriage is deemed essential to becoming a full member ofsociety.According to India Online Pages, over 50% of India‟s current population is under
19the age of 25 and 65% is under the age of 35, about 72.2% of the population lives insome 638,000 villages and rest 27.8% in about 5,480 towns and urban areas. Further,India every adds more people than any other nation in the world, some of its states areequal to the total population of many countries. The population of Uttar Pradesh almostequals to the population of Brazil. Maharashtra, which is the second largest state India, isequal to Mexico‟s population. Third, Bihar is the most populous state in India and itspopulation is more than Germany‟s.According to India Online Pages, the estimated birth rate (child births per 1,000people per year) is 22.22 births/1,000 population 2009, while death rate (deaths per 1000individuals per year) is 6.4 deaths/1,000 population. Further, the fertility rate in India is2.72 children born/woman (NFHS-3, 2008) and infant mortality rate is estimated at 30.15deaths/1,000 live births. India‟s growing population is due to poverty, illiteracy, highfertility rate, and rapid decline in death rates. India started taking measures in 1952 tosteam the growth rate. The family planning program has yielded noticeable results,bringing down the country‟s fertility rate.The population distribution in India shows a very wide variation throughout thedifferent states. India is the sixth most populated country in the world, with Uttar Pradeshbeing the most populated state in India with a population of 166 million people (CIAWorld Factbook). Nineteen states in India hit a population of over 10 million people, butthere are eight states that have a population of one million or less people (CIA WorldFactbook). The population has grown rapidly in these five states in India; Uttar Pradesh,Maharashtra, Bihar, West Bengal, and Andhra Pradesh. These five states all have the
20highest rates of population out of the whole country of India and make up of that bigpercentage of people (People of India.)According to 2012 Index Mundi, Indian‟s between the ages 0-14 years oldaccounted for about 29.7% of India‟s population. The age structure for people between15-64 accounts for about 64.9% of India‟s population and including people whom are 64years of age or older add up to about 5.5% of the country‟s population. Between the ages0-14, 187,450,630 are male and 165,415,758 are female. Within the age group of 15-64years of age, 398,757,331 are male and 372,719,379 are female. Lastly, within the agegroup of 65 years and older, 30,831,190 are male and 33,998,613 are female. The medianage that most people fall under happens to be 25.9 years old for males and 27.2 years oldfor females in India.According to the CIA, India is the second most populous country in the worldwith an estimated 1.2 billion people, which makes up more than one sixth of the totalworld population. India is projected to be the world‟s most populous country by the year2025 and surpass China by 2050. Higher population densities and larger human featuresin comparison to surrounding areas characterize urban areas. Urban areas may be townsand cities that are created and further developed by the process of urbanization. Theurban population takes up a total of 30% of India‟s population with an annual 2.4% rateof change. (Indexmund) India has 3 megacities within the top 20 most populous cities inthe world, which includes Delhi, Mumbai, and Kolkata. Each city contains 15- 23 millionpeople within its boundaries.A suburb is defined as an area with residences and has a larger population than arural area. The suburban areas are typically outlying a larger city. Thane, which is found
21outside of the Mumbai Metropolitan Region is one of the top ten most populated in theworld with approximately 1.8 million residents. Mumbai has 3 other surroundings citiesthat makes it to the top 30 largest suburbs. These cities include Kalyan-Dombivali, Vasai-Virar, and Navi Mumbai. The second largest suburb in India alone is Pimpri, which outlays Pune with about 1.7 million occupants. Delhi has three surrounding suburbs thatmake it to the top 15 highest populated in the world, which includes Ghaziabad, Gurgaon,Faridabad. Each town includes more than 1.4 million residents each (CIA).Rural areas are also known as „countryside‟ or a „village‟ in India. It has a verylow density of population with 400 individuals per square kilometers (People of India).Rural areas house up to 70% of India‟s population with three fourths of them being malesworking in agriculture and allied activities. The state of Uttar Pradesh makes up 16.5% ofIndia‟s population with 131.6 million rural residents and 34.5 million occupants make upthe urban population. Although Uttar Pradesh does have the highest population, theirdensity is significantly lower than that of Delhi. Delhi‟s density is 9,340 people persquare kilometer. According to the density map provided, a large percentage of thepopulation is in the northeastern border and the southern tip (People of India.)India is a very interesting country where people of different religions andcommunities live together as one unit. According to CIA, India has a very wide variety ofraces that make up the country and there are an amazing amount of different cultures inIndia as well. It is very fascinating that India has 6 main ethnic groups and they are asfollows; Negroids, Proto- Australoids or Austrics, Mongoloids, Mediterranean orDravidian, Western Brachycephais, and Nordic Aryans. The Negroids are one of theearliest people to come and settle in India, Negroidshad settled in their habitat in
22Andaman and the Nicbor Islands. A lot of these Negroids have other names and tribenames such as Irulas, Paniyans, and Kurumbas. These similar tribes are often still foundin the Southern part of mainland India with the same culture and way of doing things.Proto- Australiods or Austrics were the fascinating second group to come over toIndia after the Negroids and settle on the land (People of India.) They still exist today inIndia and they are the people who are described to have wavy hair lavishly all over theirbodies and they are described as longheaded with low foreheads and prominent eyeridges. The Austrics of India on the other hand, represent a race of medium height, a verydark complexion, with long heads and flat noses but with mostly regular features.Austrics were the ones who laid the foundation of the Indian civilization and they cameup with the ideas of cultivating rice and vegetables and also getting sugar fromsugarcane. This ethnic group can be found in most parts of India and can also be found inthe islands of South East Asia. The languages that the Australoids and Austrics speak stillremain and have survived in Central and Eastern parts of India (People of India.)According to Population Distribution of India, the Mongoloids are still found inmany parts of the most populated areas of India today. They can mostly be found in theNortheastern part of India in the states of Nagaland, Assam, Mizoram, Meghalaya,Arunachal, Pradesh, Manipur, and Tripura. Another part of India where this ethnic groupcan be widely found is in the Northern parts of West Bengal, Sikkim, and Ladakh. TheMongoloids are mostly described as the people with a yellowish complexion, highcheekbones, oblique eyes, sparse hair, and medium height. Their straight black hair,slanting eyes, and a short nose also distinguish these people and it is some of what makes
23them their own ethnic group. Mongoloids are very similar to Southeast Asians, whichhave similar languages, cultures, and physical features.Mediterranean or Dravidians are mainly populated in the southern part of Indiaaccording to (People of India). Most Indians say that the Dravidians came to India beforethe Aryans and settled early. Dravidians have a different type of culture that they practiceand they happen to have different types of sub-groups such as Paleo-Mediterranean, thetrue Mediterranean, and the Oriental Mediterranean. Dravidians appear to have somesimilarities with the people of Asia Minor and Crete, as well as pre- Hellenic Aegean‟s ofGreece. The Dravidians are the ones who had started to build up the city population andcivilization of the Indus Valley. Dravidians have been found in many different locationsaround India. Some of the locations happen to be areas like Mohenjo- daro and otherIndus cities (People of India.)Western Bracycephais includes Alpinoids, Dinarics, and Armenoids and they allfall under the category of the specific ethnic group (CIA). Western Bracycepahis aremostly living on the Western side of the country such as Ganga Valley, Kashmir,thedelta, and many other parts of Western India. Their physical features include broadforeheads, brown skin, and sharp features mainly characterized this specific ethnic group.Western Bracycephais mainly occupy the western side of India, and are still a big part ofthe western part of the Indian culture. The Western Bracycephais still hold an importantpart in that part of the country because they came up with a lot of their own ways ofliving such as homes and food. Western Bracycephais can be called the foundation forthe present day people in states such as Gujarat, Maharashtra, Karnataka, and Tamil Nadu(CIA).
24According to India Demographics Profile 2012, the Nordics or also known as theIndo-Aryans were the last and final major ethnic group to settle and migrate into India.The Nordics immigrated into India sometime around 2000 and 1500 B.C. and are nowmainly found in central and northern parts of India. They first started settling the northernpart of India and started to drive away the Dravidian ethnic group from their territory.The Dravidians started moving to the south so that the Nordics finally got their own landand territory that had been wanting. The Dravidians light white skin with typically lightblonde hair and light blue eyes mostly characterizes the Nordics. Nordics arealso knownfor their stout appearance and mostly they are little taller than normal Indians (IndiaDemographics Profile 2012.)Year Population Percent Change1980 682.251981 696 2.02 %1982 711.75 2.26 %1983 727 2.14 %1984 743 2.20 %1985 759 2.15 %1986 775.25 2.14 %
28Economic Statistics"India GDP." India GDP. N.P., n.d.The Gross Domestic Product in India was worth $1847.98 billion US dollars in2011. It is said that from 1960 until 2011, India‟s GDP average was $368.8 Billionreaching an all-time high of $1848.0 USD Billion in December 2011.The gross domesticproduct (GDP) is equal to the total outflows for all final goods and services producedwithin the country in a specific period of time.02004006008001000120014001600180020002004 2005 2006 2007 2008 2009 2010 2011 2012India Total GDP in Billions of U.S Dollars
29"India GDP Growth Rate." India GDP Growth Rate. N.p., n.d.The GDP growth rate in India expanded 1.30% in the fourth quarter of 2012 overthe previous quarter. History shows that since 1996 until 2012, India‟s GDP growth rateaverage was 1.63% reaching an all-time high of 5.80% in December of 2003 and a recordlow of -1.70% in March of 2009. India is the world‟s 10thlargest economy and the 2ndmost populated. The fastest growing section in Indian economy is services. Trade, hotels,transport, communication, financing, insurance, real estate, business services,community, social and personal services account for more than 60% of GDP.Agriculture, forestry and fishing form around 12% of the production, but it employs morethan 50% of the labor force. Manufacturing reports for 15% of GDP, construction foranother 8% and mining, quarrying, electricity, gas and water supply for the remaining5%.-3-2-101234562008201020122012GDP Growth Rate per Quarter
30India‟s government has done a great job cushioning the impact and the nation‟seconomy has seen the rise from 2010 to 2012. Due to the Indian government‟srestructuring, a large increase in the middle class income has been seen and it is estimatedthat there are about 200 million people in the middle class category. The middle class inIndia will have a substantial demand for service in the upcoming years. With standards ofeducation rising, the Indian government has provided free of cost and compulsory untilthe age of 14, as the numbers of students increases, the number of Indian‟s having theirown vehicle, provides a good business proposition for future automobile, banking, androad building which would benefit various sectors of the Indian economy.$0$500$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,5002012 2011 2010 Category 4Personal Income Per Capita
31The Average Family Income index, measures the distribution of family income inIndia. It is calculated with cumulative family income plotted versus the number offamilies arranged from the poorest to the richest. According to India times, averagefamily income grew overall 11%, among rural households spending per year grew at ahigher rate than all India average in Maharashtra and Bihar 12.1%, Gujarat 12.2 % andMadhya Pradesh 11.4%. This indicates India‟s structuring has caused adequate access toinfrastructure, electricity, and major road connectivity which helps increase the averagefamily income and helps Indian economy to prosper.010203040506070802004 1997 Comparison to the worldAverage Family Income
32Iashmi, Priya, and Sandeep Kumar. "Economic Growth and Impact of Services Sectorin India." International Journal of Business Management & Economic Research 3.5(2012): 627-632. Business Source Elite. Web. 26 Mar. 2013.India‟s economy has successfully displayed large growth in selected sectors,encouraging performance for stepping up India‟s growth rate and improving thecompetitive edge in the years to come. An important indicator is India‟s growinginvestment destination, which is shown by the increasing inflow of both FDI and foreigninstitutional investment into India. This growth area have experienced significantrestructuring by the Indian government, and has led to increases in internationalcompetiveness in a number of sectors including auto components, telecommunication,software, pharmaceuticals, biotechnology, research and development. The effects ofIndia‟s increasing international competiveness has helped in improved the rate of growthof export earnings, thus directly benefiting Indian consumers by making better quality,lower priced goods available.India‟s vast transportation system caters to the second fastest growing majoreconomy in the world. India‟s population is currently around 1.2 billion people, and
33changing rapidly in many different ways. India‟s transportation system caters to notonly the citizens of India but the world‟s variety of tastes, preferences, wants, resources,products and services. Transport routes or channels are basic arteries of a nation‟seconomy. India has one of the largest networks of roads, railways, pipelines, waterways,and airways which covers over 44 billion miles of India‟s land. Transportation systemsin India include walking, palanquin, bullock carts, horse carriages, bicycles, hand-pulledrickshaw, cycle rickshaw, and trams. Contemporary modes of transport include buses,taxis, suburban railway, auto rickshaws, rapid transit, two wheelers, automobiles, andutility vehicles.According to Maps of India, India has one of the largest road networks in the world,roads in India have been in existence since the ancient times. Roads in India carry almost90% of the country‟s passenger traffic and 65% of India‟s freight. The road transportationnetwork in India comprises of state, national, district roads, village or rural roads, whichroughly covers 2 million miles.Railways are the main part of the Indian transportation system, India‟s railwaysystem has over 7,500 stations and total track length of 65,000 km which inter-connectwith all aspects of daily Indian society. India like many of its economic competitors, is aland of diverse cultures as well as religion. India railways connect different parts of India,which one can find totally different traditions and cultural variations. Indian railways arethe fourth largest network after those of the United States, Russia, and China (Headlinesof India). Indian railways easily carry over 30 million passengers, and 2.8 million tons offreight daily. According to Dave Donaldson, “railroads in India reduce the cost of
34trading, reduce inter-regional price gaps, and increase trade volumes for the Indianeconomy”.Highways in India comprises of state highways, national highways, district roads,and village or rural roads. Highways and roads are the most dominate modes oftransportation in India currently. Roads of India carry 90% of the India‟s passenger trafficback and forth, and 65% of India‟s freight. The density of India‟s highway network at0.66km is similar to that of the United States (0.65) and much greater than China‟s (0.16)or Brazil‟s (0.20). India‟s economic growth has caused major highways in India tobecome narrow and congested with poor surface quality, and 40% of India‟s highwaysystem are not paved and do not have access to all weather roads and needs formaintenance are not met, this has led to deterioration of roads and high transport cost forusers who are cut off during the monsoon season in India.India currently has 12 major, and 187 intermediate ports along its more than 7500km coastline. Indian ports serve as India‟s growing foreign trade in petroleum products,manufacturing, communication systems, coal, iron ore, and containers. Port traffic hasmore than doubled during the 1990s, 1 billion tons in 2011-12. This ton is expected togrow vastly by the future centuries. Ports in India need to significantly increase theirefficiency to meet needs of demands of the world economy.India‟s communication system is the second largest in the world, and it has alwaysplayed an important role in development of the Indian economy. India‟s mix of excellenttransportation and communication system makes access to India easy and convenient.India‟s communication system includes postal, telegraph, telephone, radio, wireless,television, newspaper systems. India has easily emerged as one of the world‟s best
35performing economies during the last five years. The telecom sector in India has emergedas a total winner for India, the growth of cellular phones and mobile services is leadingthe telecom revolution in India. India is the second largest and one of the fastest growingmarkets with strong demand for GSM, and CDMA networks for wireless local loop aswell as complete mobility in urban and rural areas. Wireless networks have becomecheaper and easier to install thus revenues and competition are soon expected to forcecellular networks into rural networks. Overall, communication technology in one majorpart of the Indian economy, which is evolving rapidly due to more people demandingmobile services with larger bandwidth and new innovative services like connectivityanywhere, anytime for features like TV, multimedia. Economies like China and India,have a combined population of nearly 2.5 billion people, India which has successfullyattracted telecom companies like Microsoft, Intel, Motorola, Ericsson, Nokia, to set upcommunication development and research centers in India.In terms of international trade in 2011, India ranks 19thin merchandise exportsand 12thin imports. According to the World Trade Organization (WTO) statistics, Indiaexports approximately $305,585,000,000 and imports $462,633,000,000 just inmerchandise. India‟s three main commodity exporting and importing groups areagricultural products, fuels, mining products, and manufacturers. Agricultural productsinclude food and raw materials, India holds an 11.3% share of India‟s total merchandiseeconomy exports. As for their agricultural product imports, India only holds a 4.9%share. In fuels and mining products, which include fuels, ores and other minerals, Indiaholds a 23.7% share and a 39.6% importing share. For the manufacturers group, whichincludes iron and steel, chemicals, machinery, textiles, clothing and other consumer
36groups, they hold a 61.7% share of India‟s total merchandise economy exports and a41.4% share in imports. India‟s top exporting destination targets include the EuropeanUnion with an 18.1% share in India‟s total merchandise exports, the United ArabEmirates with a 12.4% share, the United States with a 10.9% share, China with a 5.5%share, and Singapore with a 5.2% share of India‟s total merchandise economy exports.India mainly imports from China with a 12% share in their total merchandise imports, theEuropean Union with an 11.9% share, the United Arab Emirates with a 7.7% share,Switzerland with a 6.8% share and Saudi Arabia with a 6.1% share of India‟s totalmerchandise importing economy (Trade Profiles).In commercial services, India ranks 8thin exports and 7thin imports. In 2011,India‟s exports were valued at $136.5 billion dollars and imports at $123 billion dollars.Their imports and exports can be grouped as transportation, travel and other commercialServices. Transportation holds a 12.8% share in India‟s total commercial serviceseconomy exports and a 46% share in imports. Travel holds a 12.8% share in exports andan 11.2% share in imports. Other commercial services include a 74.4% share in India‟stotal commercial services economy exports and a 42.9% in imports (Trade Profiles).
37Balance of PaymentsAccording to our class textbook International Marketing, balance of paymentsrefers to the “system of accounts that records a nation‟s international financialtransactions” (Cateora, Mary, & John 589). India‟s current balance of payment is not soattractive; it is at a deficit. When a country has a deficit that means it imports more than itexports and if the balance is surplus then a nation exports more than it imports. Balanceof payments is divided into two main categories: Current Accounts, and CapitalAccounts. Balance of payments shows how much is being spent by consumers and alsofirms on imported goods and services. Balance of payments describes how successful
38firms are in exporting to other countries.According to the Reserve Bank of India, “current-account deficit widened to$22.3 billion, or 5.4% of gross domestic product, in the July-September quarter, from$16.4 billion in the April-June period” (Jain). Current accounts are used to mark theinflow and outflow of goods and services into a country, where earning on investmentsare used both public and privately. During 2011-12, exports crossed $200 billion markfor the first time, increasing rapidly by 37.3% from $182.4 billion in 2009-10 to $250.5billion. This increase was largely due to engineered goods, petroleum products, gems,jewelry, and chemicals related products. The improvements in exports were accompaniedby a shift in labor-intensive manufacture to higher quality and value engineering andpetroleum products.India‟s government has taken huge efforts in attempting to reduce the deficit,which has served the economy well in terms of reducing its vulnerability to future crises.India‟s government has raised the price of diesel to reduce the fuel subsidies spendingand allowed higher foreign investment in retail, aviation and broadcasting, which canreduce the deficit. The deficit has had negative impacts across India, including on their
39currency. The rupee, India‟s currency, saw a 3% decrease in value against the U.S. dollardue to the deficit.
40Labor StatisticsIn 2011, India‟s labor consisted of 487.6 million out of their current population of1.2 billion people. Their unemployment has decreased from 10.8% in 2010, but at 9.8%,it remains high. Since manufacturing is one of India‟s biggest industries, India‟s topmanufacturing jobs are in food, beverage and tobacco, textiles, chemicals, primarymetals, transportation equipment, apparel and machinery (United States Department ofLabor).(India - Labor Force - Historical Data Graphs per Year).460,000,000480,000,000500,000,000520,000,000540,000,0002003 2004 2005 2006 2007 2008 2009 2010 2011Indias Labor ForceIndias Labor ForceEmployment in subsectors within Indias organized manufacturing sector, 2005-06NAICScode(s) Subsector(s) Percent of total manufacturing employment31-33 All manufacturing (excluding publishing) 100.0%311-312 Food, beverage, and tobacco 20.9%313-314 Textiles and textile product mills 15.3%325 Chemicals 9.5%331 Primary metals 7.4%327 Nonmetallic mineral products 6.6%336 Transportation equipment 6.4%315 Apparel 6.2%333 Machinery 5.3%
41(India - Unemployment Rate - Historical Data Graphs per Year).(United States Department of Labor).The Market0246810122003 2004 2005 2006 2007 2008 2009 2010 2011Indias Unemployment RateIndias UnemploymentRate
42Considering the product that was chosen to introduce to India, Silk Soy Yogurtwill be initially targeted to the middle, and upper class in India. There are 300 millionIndian residents that fit in this category but all have different preferences that Silk willneed to target and adjust to. According to the State of the nation survey, 41% of Indiansare considered vegetarians regardless if they consume eggs and milk or are devout Jadins,which comply with stricter rules. “Devout Hindus believe that the cow is a holy animal,and its forbidden to slaughter cows in India,” states Esselborn. It is shown that about30% of Indian meat-eaters eat meat infrequently. Infrequent meat eaters typically do sowhen a home meal is not available and vegetarian options are scarce out in therestaurants.Other than vegetarians, Silk Soy Yogurt would be targeting middle class youth 23years and under. Young adults and teens are modeling their lifestyles to “Westerners”which leaves being vegetarian “out of style.” Silk will emphasize the simplicity ofpicking up a healthy and vegetarian yogurt for those leading a hectic lifestyle. Althoughthere is no direct link, a recent increase in disease is thought to be related to the shift intounhealthy consumption.When considering gender in middle and upper class Indians, married women tendto select healthier foods because they pay more attention to their health and figures.Married women who are educated and who are balancing busy careers with their familieshave less time to spend on daily cooking which has resulted in the increased popularity ofpackaged food. This trends of educated working women is likely to continue as thepercentage of working women is expected to increase over the coming years in India.Men would be more difficult target market to reach because the consumption of meat has
43become synonymous with masculinity. Since the majority of non-vegetarians eat meatinfrequently, Silk can be part of a balanced diet without having to completely cut outmeat. This product will flourish in an urban and suburban lifestyles since rural residentskeep up with their religious devotion and are exposed less to meat consumption. Due togreat investment in the power, and electricity sector in India to most parts of the country,the sales of electrical appliances such as refrigerators is increasing. This upsurge of saleshas led to an increase in sales of frozen, and refrigerated packaged foods.Consumption of yogurt in India is highest in Northern and Western India, wherethe concept of flavored yogurts is common in western cuisine, and with middle-classurban Indian families eating out and expanding their culinary horizons more than everbefore, they are highly likely to be open to the concept of flavored yogurt. Silk soy yogurtcan be positioned as a tasty, healthy, versatile food option. Silk soy yogurt can consumedas a snack between meals, dessert, or even as part of a meal like breakfast. Silk soyyogurt is uniquely positioned as it offers the taste and enjoyment derived from consumingan indulgence food-item like ice-cream, as well as the health and nutritional benefits of ahealth drink.The Product
44Silk soy yogurt is a well-known and recognized brand in the United States for thelactose and intolerant target market. As with any other product it has its advantages anddisadvantages. For example, an advantage that will benefit Silk soy yogurt in India is thatmilk is a great resource for nutrition for the millions of citizens living in India. India is avery large populated country where many of its citizens are without proper nutrition.Pricing Silk soy yogurt in a price that is adequate for the people residing in India willsurely benefit because the yogurt will not only be source of food but nutrition and easy toobtain. India imports more than 33% of lactose products benefiting Silk because it willcount in that high percent of imported lactose products. India is recognized as the numberone exporter of milk to the world. In India, the cow or calf is a sacred animal and it‟s noteaten or slaughtered. Since this animal is holy it brings a problem to the Soy Milk YogurtSilk because the Indian community may be healthy and may drink regular milk withoutany stomach problems. The consumer may be immune and not have any problemsdrinking and eating any regular dairy product.Furthermore, Silk has benefits that can expand its sales in India, and that is due tothe fact that Silk Soy Yogurt has no artificial flavors. Since in India it‟s a custom to eatand add spices to their food, it will benefit Silk because Silk has no artificial flavors andit has no artificial colors. Like in India, Silk makes its product from real grown fruits anduses those ingredients only. It relates to India because Silk products will adapt to theIndian customs to using vibrant colors and own grown ingredients. Another advantagethat Silk Soy Yogurt will benefit taking the product in India is that Silk makes its productwithout GMO or commonly known for “Genetically Modified Organism.” Since meat isnot eaten like in the United States and the calf is a sacred animal in India the product Silk
45has a relation that it will not do any experiments with gene splitting with biotechnology.It will not harm nor will experiment with the calf knowing the importance of this animalto the culture of India. The image that Silk soy yogurt wants to create is the image of“Simple delicious food. Starts with ingredients that are grown responsibly and kept closeto nature as we can with no artificial flavor and colors, no high-fructose corn syrup, dairyfree and non GMO-ingredients.” Further, Silk soy yogurt is flavored spoonable yogurtmade from soy, cultures, flavors, whey protein, concentrate and color. Silk soy yogurt hasa shelf life of more than 15 days, the product would be primarily positioned as a healthysnack that tastes good. Silk soy yogurt will available in four or more different flavorsincluding; Mango, Strawberry, Vanilla, and original (plain). Silk soy yogurt is packagedin a plastic container and vacuum-sealed using aluminum foil bearing the Silk logo andbranding.
46PricingWhen introducing a foreign product into a country, many variables and strategieshave to be considered. First, marketers must realize who their target market really is.Setting a target market allows them to focus their resources on a specific group ofcustomers that will take special interest in their product. Since approximately 50% ofIndians are lactose intolerant and individual disposable income is increasing, we havedecided to target educated individuals searching for a healthier snack alternative ages 21through 40 (Lactose Intolerance World Map). Soy yogurt provides an alternative tohealthy snacks such as protein bars, milk, dahi (yogurt) and fruits.To get a sense of their currency value, one U.S dollar is equivalent to 54.58 IndianRupees (Rs) and the average McDonald‟s meal costs 180Rs. As for our competition, acase of 12 protein bars is priced at 2,600Rs, a liter of milk at 32Rs, 1Kg of apples at120Rs and 1Kg of oranges at 70Rs (Cost of Living in India). Therefore, we decided toimplement a value pricing strategy and as we establish our brand, we will switch tocompetition pricing. We will set our prices congruent with the competition; however, wewill distribute large quantities of coupons throughout gyms, parks, supermarkets and ourpartner channels in order to get people to try our product. Nonetheless, we cannot priceour soy yogurt much higher than regular dahi. Currently, a 200gm Nestle dahi is priced at19.80Rs.Another key factor is income levels. Income levels can determine the price rangefor our product. Currently, the average Indian citizen is earning an average 445,540Rs peryear (Average Salary In India). However, the graph below reveals that the averagedoubles among the education class. Since we haven‟t established a cost leadership or
47differentiation strategy, targeting the educated class will allow us to raise our pricesenough to cover for our high cost of goods sold.Education Average Gross Salary Gross (USD)Less Than High School 289,179 INR $5,193High School 402,742 INR $7,232Some College 606,496 INR $10,891Bachelor‟s Degree 858,758 INR $15,420Master‟s Degree 1,159,269 INR $20,816Doctorate Degree 1,637,439 INR$29,403(Average Salary In India).We have decided to sell 200gm and 400gm containers of soy yogurt. The price forthe 200gm would be 24.99 and 47.99 for the 400gm product. To allow consumers to get ataste of the yogurt, we will distribute coupons discounting 20% our prices. This wouldleave the 200gm container at 19.99Rs and the 400gm container at 38.39Rs. However,once we have established our brand, we plan to raise our prices in order to compete withsnack bars, milk and fruits. Silk will apply market penetration pricing techniques, theproduct is priced competitively to ensure wider consumer reach and to secure highvolume growths.
48PlaceIndia is easily the world‟s largest producer of dairy products by volume and hasthe world‟s largest dairy herd. India accounts for more than 13% of the world‟s total milkproduction and is also the world‟s largest consumer of dairy products, consuming almostall of its own milk production (FSMIP). Milk production in India has increasedsignificantly in the past few decades from a low volume of 17 million tons in 1951 to 110million tons in 2009 (FSMIP). Currently, the Indian dairy market is growing at an annualrate of 7%. A demand for non-dairy products such soy has become imminent in the dairyindustry due to changing consumption habits, dynamic demographic patterns, and rapidurbanization of rural India. The growth in the number of soy food processors in India isgrowing in the region. In 2000, only 50 soy food manufactures existed in India; currentlyabout 400 are present in the country (FSMIP).All of India‟s current soy imports arrive via containers through major coastalports such as Mumbai, Cochin, Calcutta, and Chennai. Soy processors are located acrossIndia, after arriving at a costal port; containers are loaded on either rail or truck fordistribution. The primary mode of distribution of Silk soy yogurtis a multi- level channeldistribution network, to ensure the freshness of the product; it is put in cold storage at 4degrees after packaging and is transported in trucks to the warehouse. Silk will partnerwith Gujarat Cooperative Milk Marketing Federation (GCMMF), Wadia Group, YakultHonsha, and Bharti Enterprises, which will supply retail stores, wholesale stores,shopkeepers, hotels, and other businesses with Silk branded soy yogurt (Walmart).Our plan to bring our product into India requires a lot of culture analysis.Knowing that India thinks of milk and dairy as a very important element that they do not
49eat, taking a brand of soy yogurt into India would make complete sense. The ways thatwould be included in introducing and bringing our product into India was very well-thought out, yet simple. Our plan is to manufacture our product inside of India, instead ofshipping it from the United States. Doing so, the product will be more fresh and reliable.Since yogurt is supposed to stay cold and it doesn‟t have a very long shelf life. With ourfresh and innovative ideas, we are determined to get our product into the hands of ourcustomers in India. Even though we have some reliable competitors, we still feel that wewill be able to make it out on the top.After extensive research, our plan is to not only get our product into the hands ofour customers, but to satisfy our customers as well and keep them coming back. We havesome ideas such as giving out free samples into the bigger cities in India, so that thebusiness district can have a taste. Once they enjoy our product, they will be willing to goto the store and buy the product as well. Since our soy yogurt is very healthy, we thinkthat it will help us succeed as well. We also will hand out multiple coupons to the publicso that they can save money on their first purchase of our product. Consumers like thefact that they are getting any type of discount, and they are determined to keep comingback for more.
50Promotional MixAn important aspect that involves promoting soy yogurt into India is to make surethat Indians will be exposed to our idea and that they will want to try it out. Internet andmedia in India has come a long way since it was first introduced, most Indians are on theInternet a lot during the day (Biztechreport). To promote soy yogurt in India, we wouldmake sure to have many different types of ads that appear on websites such as Google,Yahoo, and Bing and other popular accessed websites. We would make sure to put a listof different locations that our yogurt can be bought and found so that the customers knowwhere to get our new product. Silk would also promote our product on a more “healthy”websites since our product targets a healthier crowd. Soy yogurt is popular in Indiabecause they do not drink or eat dairy much, and this product would be a very goodaspect to India and adapt very well to their culture. Further, soy yogurt is going to be akey product in a normal Indian diet; whether watching one‟s weight or preparing tocelebrate, grabbing a quick bite or sitting down with family to eat at night, Silk soyyogurt creates foods that are wholesome and delicious.To start off, we would practice the act of Promotional Advertising. We would gointo some of the most populous cities in India such as; Mumbai, Delhi, and Bangaloreand would give away our product one by one for no charge. We would provide the optionof all of our flavors and have them try out our product for free. This is a good tool to usebecause people will like the fact that it is free, and they can try it out and see if they like it(Slideshare). People in India have different tastes that they enjoy, and we would makesure to cater to their needs. Giving away these cups of soy yogurt would definitely grabthe public‟s attention and it would help promote our product mouth-to-mouth marketing.
51While giving out samples of our product, we would also be giving out coupons wherethey can get 50% off of their Soy Yogurt purchase and we would be giving out differentpromotions as well. Once they buy our product and enjoy it, we believe that they willbecome loyal customers and keep buying our yogurt. The aim of the advertising will beto create awareness about the silk brand, to highlight the quality, taste, and nutritionalbenefits of the product. The advertisements would be primarily targeted at the segmentedof urban, middle class families. In addition, the market for health and wellness foods inIndia is fast growing. Average yogurt sales in India have increased by 18% to reach anindustry value of 6.5 billion dollars. The yogurt and dairy industry in India is expected tocontinue because of multiple drivers like health-consciousness, increased awareness,quickly changing life-styles, and income levels.Since television, radio, and newspaper seem to be the most popular types ofadvertising in India (Muse). Silk would be initially targeting the urban, middle classfamilies. Television strategies‟ would include increasing brand equity of Silk in India,and focus on building the awareness of Silk soy yogurt. Silk would make sure topromote our product in all three categories. Since there are more than two dozen differenttypes of languages used in ads in India, we would have to make sure that when we arepromoting our product in the northern part of India, that we are using the Hindi language(Muse). Indian advertising speaks to one of the world‟s most diverse populations, butEnglish is the most common language used throughout India. Most of the elite in Indiaspeak English and that is where we would promote our product specifically so that theycan easily tell others about it as well. We would make sure that our soy yogurt wouldgive the people in India what they need such as nutrition. Since Indians do not eat or
52drink dairy much, they will need to get their calcium and vitamin D, and we would makesure that those nutrients are in our soy yogurt. Our way of showing the Indian people thatwe use soy, and not milk will have to really make an impact on our advertising. Whilegiving out our free sample products, we will make sure to tell them that there is not milkin the product, just soy. It is important to build the brand awareness of Silk as consumersin India are highly aspirational and would love to be associated with Silk a U.S. classbrand product. Silk soy yogurt will be built around the product features, taste, healthbenefits, appetite appeal and the snacking occasions.A lot of India‟s newspapers are accessed online, and they include a lot ofadvertising (Advertise India). Print media delivers detailed information about the Silkbrand and the nutritional and taste attributes of the product to the target middle class. Thetop most popular Indian newspapers include; The Times of India, The Hindustan Times,and the Indian Express (Online Newspapers). On the side of the websites, there aremultiple ads that are listed with the name of the product and the description. We wouldmake sure to include the different flavors and where to purchase Silk soy yogurt. Thereare many billboards in India, and most billboards are in the big cities. Most of the citiesin India are full of buildings, but there are many places for an advertisement can go. A lotof our advertising will go on bigger/smaller billboards around the big cities and on thehighways (BlueOceanMedia). In India, a lot of the main advertising is focused on thehighways billboards because this type of advertising surrounds customers with theproducts presence everywhere (BlueOceanMedia).Another popular idea is to broadcast our soy yogurt product in India throughtelevision and the radio as well. Television advertisements would be targeted at the
53urban, middle class families. Some of the most popular watched television channels inIndia include; Doordarshan, ZeeBangla, and Amrita Television (SurfIndia) We wouldwant to market our product on the channel Doordarshan because it is a channel thatbroadcasts movies, news, family programs, and health programs (SurfIndia) Our soyyogurt would be perfect to promote on their channel because they show a lot of healthprograms and this channel seems to cater to a wide range of people. The channelZeeBangla is a channel that broadcasts reality shows and mostly very popular shows thatare a “hit” in India. Our product would be a great add in during the commercials of thistelevision channel because it seems to be one of the more popular watched channels.Amrita is a 24-hour satellite channel that delivers vibrant, youthful, and value-orientedprograms that cater to the entire family (SurfIndia) This channel would be a greatpromotion opportunity because it is broadcasting at all hours of the day so many peoplewould have the chance to see it.Another important way to promote our soy yogurt would be to make acommercial and have it be played during the commercials on some of India‟s mostpopular radio stations. Many of the workers in India listen to the radio, and it provides anon-stop entertainment to all of its listeners (SurfIndia.) Some of India‟s most popularlistened to radio stations include; Chennai Live 104.8 FM, Radio Jalwa, andDhamaal24.com (SurfIndia.) All three of these stations would be great possibilities forour product to be launched. Chennai Live 104.8 would be a great station to have ourproduct be marketed on because they are India‟s most popular station since they providea talk show and great music in English and Tamil (SurfIndia.) They are very popularbecause they offer talks about lifestyle and what is new to eat. Radio Jalwa is another
54popular station that is very popular and they are most listened to for their wide variety ofmusic. Dhamaal24.com is an online radio station and they air on ten stations around thecountry (SurfIndia), which would benefit our advertising.To generate publicity for our product, we will go to the rural areas in India thatare not too far from the big cities, and give out our soy yogurt. We are going to go to theareas, which are less fortunate so that they can eat our yogurt enjoy something healthy.We will link up with one of India‟s most well-known charity called Feed The Children,and help them raise money and all the proceeds will go to them. Silk will make sure thatit is advertised and that the communities know that we are helping out with this charity.Hoping that we will get a lot of positive publicity, and that people will want to try ourproduct even more. On a personal selling standpoint, we will make hire street teams to goaround the city and give out some of our coupons and make sure that they explain thedetails about our product such as the fact that it is a yogurt but there is not dairy involved,that it is a healthier option, the different flavors that we provide, and where to purchaseour product as well. The purpose of promotions such as coupons, contests, premiums, isto gain attention and to lead the consumers to purchase the product. Silk soy yogurt is inthe introduction stage, the main goal is to encourage trials and thereby adoption. Silk soyyogurt is also targeting malnutrition throughout India, figures show that about 30% ofchildren in India suffer from malnutrition. Silk soy yogurt will setup a factory thatproduces nutritional yogurt for poor people, the project will integrate into the ruralcommunity through its link with farmers around and India who serve in the factory. Theproject is not designed to make profits but does have benefits for Silk. It is a good wayfor the Silk company to learn how market soy yogurt in South Asia and can be used to
55sell in markets like India. In addition, with this promotional mix Silk will fightmalnutrition and help spread economic prosperity in rural Indian villages, Silk shows thecommitment to the Indian market. All in all, Silk has entered India with a long termstrategy which can help establish Silk as a respected corporate entity.
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