India is a complex market due to the regional diversity, rural-urban divide, presence of a large unorganized market, and multiple legal and administrative systems. Companies that have understood the nuances of handling India’s complex business environment have been successful. This white paper seeks to help illustrate some of these nuances, and offer some possible solutions to overcoming the inherent MI challenges in India. This presentation shows selected slides from a GIA white paper. To download the entire white paper that you are interested in, please visit http://bit.ly/GIAinsightWP

1. Best Practices in Market
Intelligence for India
Webinar presentation
November 2, 2010
www.globalintelligence.com

2. Presenters
• Ms. Stephanie Tan, Global Intelligence Alliance
! Marketing Manager, Asia-Pacific
! Webinar conferencier
• Mr. Vishwanath Desai , Global Intelligence Alliance
! Senior Consultant, Hong Kong
! Webinar presenter
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3. GIA is a strategic market intelligence
and advisory group
Global Intelligence Alliance (GIA) was formed in
1995 when a team of market intelligence
specialists, management consultants, industry
analysts and technology experts came together to
build a powerful suite of customized solutions
ranging from outsourced market monitoring
services and software, to strategic analysis and
advisory.
Today, we are the preferred partner for
organizations seeking to understand, compete and
grow in international markets. Our industry
expertise and coverage of over 100 countries
enables our customers to make better informed
decisions worldwide.
www.globalintelligence.com - page 3

4. Access local knowledge in over 100
countries
GIA Group has 13 offices on 4
continents. Together with affiliated
GIA Member companies, certified
GIA Research Partners and
consultants, GIA provides access
to local knowledge in over 100
countries.
All GIA Network companies adhere
to GIA’s Research and Analysis
Quality System as well as the SCIP
Code of Ethics.
www.globalintelligence.com - page 4

5. Webinar content outline
• India – Country overview
• Growth themes
• Challenges of conducting MI in India
• Recommended solutions
• Case studies
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6. India overview
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7. India fast facts
! Became a trillion dollar economy in 2007.
! World’s second most populous country after China with a population base
of 1.16 billion as of July 2010.
! Supports 16% of the world’s population, on 2.5% of world’s land area.
! World’s largest democracy with 29 states and 6 union territories under one
central parliamentary government.
! Internal consumption adds to more than 50% of India’s GDP.
! GDP growth projected at 9.4% for 2010-11 and 8.4% for 2011-12.
! Remains a preferred destination for foreign capital: FDI inflows have
jumped 4 times since FY05.
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8. Country overview
India is often divided into 4 overall zones
India Fact File
Population growth 1.4% p.a
Land Area 3.29 mn sq km
Population density 324 persons per sq km
Form of government Constitutional Republic and a representative
democracy
Number of states 29 states & 6 union territories
Capital New Delhi
Per capita income Nominal: USD1,124.4 p.a.
Religion 6 main religions
Languages Hindi (national language), English (business
language), 22 (official languages)
Key festivals 8
Currency unit Rupees (INR)
Rural-urban mix 70% people reside in rural areas
Households 240 mn
Literacy rate 65%
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9. Western India
Western India is one of the most developed regions in the country and is highly
industrialized. Proactive government policies and relatively better infrastructure
(social, physical and industrial) have helped in attracting investments (foreign and
domestic) over the years into the region.
Maharashtra Gujarat
Maharashtra is the third-largest state in India in terms of Gujarat is one of the fastest growing states and most
area and the second-largest in terms of population. industrially advanced states of India.
Mumbai, the financial, trade and commerce capital Gandhinagar is the state capital. The state ranks
of India is the state’s capital city. amongst the top five with regards to per capita
income.
• Per capital NSDP of the state is higher than the
country average. • Tertiary sector contributed almost 50% to the
• Tertiary sector contributed more than 60% to the state’s income in 2008.
state’s income in 2008. • The state contributed, 21% to India’s exports and
• There are 58 SEZs in the Maharashtra. 15% to its industrial production in 2009.
• The state boasts of 83 product clusters, 202
industrial estates, 60 SEZs.
Maharashtra Industrial Development Corporation (MIDC)
is primarily responsible for the development of While the entire region boasts of high foreign tourist
industrial infrastructure in the state. The government intake, Goa in particular has a flourishing tourism
of Maharashtra is also promoting the development of industry.
several Special Economic Zones (SEZs) across the
state
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10. Northern India
Northern India is pre-dominantly agrarian but the rapid GDP growth is changing the
economic landscape. The region is progressively moving towards manufacturing and
services sector driven economy. Despite the recent uptake in investments in the region,
economies of Jammu & Kashmir, Himachal Pradesh and Uttarakhand are primarily
agrarian and are driven by tourism.
Uttar Pradesh Rajasthan
Uttar Pradesh is the highest earning state of the region. Rajasthan is the largest state (land area wise) in India.
Despite growing its per capita NSDP at CAGR of Jaipur is the state capital.
10% during 2001-09, the state ranks low in per
capita NSDP on account of high population density.
• Uttar Pradesh ranks among the top states in India in • Tertiary sector contributed nearly 60% to its
terms of agricultural production. income in 2009.
• Tertiary services - IT, electronic services, printing • The state has 5 operational SEZs and has in-
and publishing contribute more than 50% to the principle approval for developing another 6 such
state’s income in FY09. industrial clusters.
• The state has a robust industrial infrastructure,
including 15 industrial areas, 12 specialized parks, Bureau of Investment Promotion (BIP) and Rajasthan
three growth centers and four industrial Industrial Development and Investment Corporation
infrastructure development centers (IIDC). (RIICO) are responsible for promoting investments and
• The state has 18 notified and functional special developing industrial infrastructure in the state.
economic zones (SEZ). The state has proposed 40
IT/ITeS parks (apart from IT SEZs), two biotech
zones and a knowledge park.
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11. Southern India
Southern India is well developed in both manufacturing and services sectors. All the
southern states also rank high as tourism destinations. Southern states are considered
as India’s outsourcing hub. All the IT firms, BPO service providers and captive
offshoring units have operations in all or either of the capital cities of these states. State
governments of these states have been able to attract significant investments into the
knowledge sector through proactive policies and incentives.
Karnataka Tamil Nadu
Karnataka is the fifth most populous state in India Tamil Nadu is amongst the most industrialized states
economy and its economy is primarily driven by in the country and has the highest level of
technology and energy sectors. Bangalore is the urbanization.
capital city and it is regarded as the silicon valley of
India due to the significant presence of IT • The tertiary sector registered a high growth of
companies. 11.9% and contributed 55.3% to the state’s
income.
• The tertiary sector witnessed the highest growth and • The state has a total number of 53 SEZs and has
contributed 55% to the state income in 2009 a high concentration of automobiles and auto
followed by the secondary sector (29%). components, chemicals and rubber
• The State has 15 operational SEZs and 97 PPP manufactures.
(Public Private Partnership) projects.
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12. Southern India – Cont’d
Kerala Andhra Pradesh
Kerala is heavily dependent on tourism and is also a Andhra Pradesh is the fourth largest state in the
leading agricultural state. country in terms of land area. Hyderabad is the
state capital. The state has emerged as a
• The tertiary sector is the largest contributor to the knowledge based state with key industries such
state’s economy, and grew at 12.5% in 2008 as IT / ITeS, engineering, pharmaceuticals,
biotechnology etc.
• The State has 24 SEZs and has the highest
literacy rate in the country.
• The state’s tertiary sector contributed 61% to the
state’s income in 2008 followed by the primary
sector contributing 35%.
• The state is well developed in terms of
infrastructure. It has 37 public private partnership
projects for the roads sector. It is also the first
state in the country to initiate a PPP Metro Rail
project.
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13. Eastern India
The eastern region has the highest number of states and is the least developed
region in the country. Most of the states in the region rank below the per capita
income benchmark. Eastern states are primarily agrarian with key focus on sectors
such as tea, food processing / agro processing, bamboo, handloom and handicrafts,
mines and minerals, and iron and steel. These states are also heavily dependent on
tourism. However, due to inadequate infrastructure development and difficult terrain,
tourism industry has not picked up to its true potential in these areas. This is
especially true for the North-eastern states.
West Bengal
West Bengal provides an entry point in Southeast Asian markets and shares its international borders with countries like
Bangladesh and Nepal. Kolkata (the capital city) is the fourth largest city in India and provides lower cost of
operations for a business as compared to other metropolitan cities in the country.
• The State’s tertiary sector contributed 61.2% to the GSDP followed by the primary sector at 26.8%.
• In terms of infrastructure, West Bengal is well connected to the rest of the country. The state also serves as a
gateway to the seven North-eastern states.
• It is a leading agricultural state with suitable climatic conditions for fisheries, horticulture etc. It also has abundant
natural resources of minerals.
While growth and development have varied across states/regions, the overall themes
underpinning the India growth story are unequivocally domestic consumption, infrastructure
investments and outsourcing. We have profiled these growth themes and the various
sectors that are influenced by these underlying drivers
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14. Growth themes
www.globalintelligence.com - page 14

15. Domestic consumption
Driving India’s overall growth Internal consumption adds to more than
50% of India’s GDP.
Some sectors that will be directly impacted by the
growing consumer base:
• Education
• Healthcare
• Telecommunication
• Banking
• Insurance
• Organized retail
• Tourism and hospitality
• Automobiles & auto components
Other industries/sectors that are directly beneficiary of
the growing domestic demand include financial
services (capital markets, asset management, NBFCs),
media and entertainment, consumer durables and food
processing.
www.globalintelligence.com

16. Infrastructure
Government paving way for private sector involvement
Drivers
• India’s strong economic growth is putting tremendous pressure on its core infrastructure in all major cities and rural
centres in India > urgent need for infrastructure improvement
• Sensing that significant funding is required to sustain economic growth, the Planning Commission had envisaged a
planned outlay of USD 500bn into the infrastructure sector between 2007 and 2012. It has further raised the estimated
investment outlay at USD 1.5tr in the next plan period (2013-2018).
• Government is actively encouraging private sector involvement in infrastructure sectors incl. roads, telecommunications
networks and power generation. Regulatory frameworks that are conducive to foreign direct investment (FDI) have
been developed in an effort to encourage private participation in infrastructure investments
Growth opportunities in key infrastructure sub- Industries / sectors that will be beneficiary of the
sectors: massive infrastructure spending in India include:
• Ports • Logistics and warehousing services
• Roads • Construction and construction equipment
• Railways • Travel and hospitality
• Air • Infrastructure financing
• Power
• Urban Infrastructure
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.

17. Outsourcing
India’s service growth engine
The outsourcing industry can be broadly categorised into Information technology services (IT), business process
outsourcing (BPO) and Knowledge process outsourcing (KPO), which is a sub set of the BPO industry. The major
outsourcing export component is IT services and solutions, one of the first areas to be offshored to India.
The key service areas for IT, BPO and KPO
Segment Key service areas
IT Traditional services include application development and maintenance (ADM), testing services and
infrastructure solutions. Key players have evolved over time to now offer remote infrastructure, consulting
and system integration services. More recently, in line with global demand, providers are increasingly
offering Service Oriented Architecture (SOA) and cloud computing solutions to client organisations.
BPO Human resources, finance and accounting, technical/customer support, sourcing and procurement, etc.
High value/complex services offered by the largest BPOs today include business transformation and
platform based solutions.
KPO Service areas include legal, publishing, research and analytics and certain ITeS services (such as e-
learning), among others.
Source: Valuenotes research
The outsourcing industry now contributes 26% to total Indian exports (merchandise plus services), employing an
estimated 2.3 mn people directly in FY10. - NASSCOM
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18. Challenges of conducting MI in India
& Recommended solutions
www.globalintelligence.com

19. Major challenges encountered while conducting MI
• Presence of large unorganized and grey markets
• Complicated legal environment and multiple jurisdictions
• The rural urban divide
• Regional diversity
• Inadequate data collection
• Lack of secondary information
• Ethical issues
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20. Recommended solutions
• Significance of local partners (with strong industry network)
• Primary research and due diligence
• Innovative estimation techniques and alternate sources of data
• Importance of strategic recommendations
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21. Case Studies
www.globalintelligence.com

22. Business Case (1) - Market sizing, Channel &
communication strategy for power tools in India
Industry: Industrial products - Power tools
Geographic scope: India nationwide
Strategic objective/issue
• A leading manufacturer of portable electric power tools wanted to understand details of market demand,
which customer industries posed highest demand, customer needs and drivers for purchase of products in
various customer industries in India (e.g. construction, fabrication, woodworking, manufacturing, automotive,
government services, etc.). The client was an existing player in the market and wanted to leverage insights to
develop a stronger product portfolio, marketing communication and sales strategy
Approach
• GIA suggested a two-phase approach
Phase 1:
• GIA used local consultants to conduct >75 interviews on-the-ground with suppliers/manufacturers, local and
international manufacturers (competitors), distributors, and other value chain players to size the demand for
portable electric power tools by highest opportunity product and customers segments. Data was cross-
checked and analyzed in-house to form the basis of reporting.
Phase 2
• Through local consultants, GIA conducted 400+ interviews with power tool users, purchase decision makers
and influencers across the nation covering key customer industries.
• Research covered:
• 9 key products in the client’s portfolio
• 15 key customer industries (top 3-5 industries for each products)
• About 10 local and foreign competitors
www.globalintelligence.com – page 22

23. Business Case (1) - cont’d
Approach
Recommendations on
 Trigger of purchase
 Product and user group focus
 Channels used for purchase
 Marketing message and channels
 Product information sources
 Purchase decision criteria
Insights per user group and per product  Motivators to switch brand
Analysis and  Influence of advertisement
recommendation  Influencers at point-of-sale
formation Summary and analysis  Purchase decision making
process
 Importance of after-sales
Phase 2 End user purchase behavior analysis services
>400 interviews with
power tool users, in End user product requirement analysis  Product features requirements &
over 15 customer preferences
industries End user market positioning analysis  Product application
 Cases of malfunction/ breakdown
Phase 1 leading to purchase of new tool
Secondary research Determination of key professional
and >75 interviews with user groups by product  Top brands users are aware of in
power tool producers, the market
suppliers, distributors,  Perception of brands by attribute
Market sizing by professional  Most recently purchased brand
and value chain players
user groups and key products for each product
 User satisfaction by brand
Consultative workshop
with client for project
setup www.globalintelligence.com

24. Business Case (1) – cont’d
Solution
• For total product market GIA established current demand (volume and value) by customer segments and analyzed
key market trends and drivers/inhibitors
• Demand for each product was segmented by key customer industries and competitor share
• Demand by each top customer industries was segmented by product types and competitor share
• For top customer groups, GIA conducted in-depth customer intelligence to understand in details key purchase
drivers, communication channel, purchase process and decision makers
Market sizing and segmentation
Recommendations
Customer intelligence
Competitive landscape
www.globalintelligence.com

25. Business Case (1) – cont’d
Key Benefits
• Quantitatively identified key product segments and customer industries with highest growth potential in
next few years, and most effective channels as well as communication messages to reach end customers
and improve brand awareness
• Client also gained an understanding of their market positioning and areas for improvement
• Strengthened local business expansion strategy
Marketing communication strategy
Customer industry prioritization
Marketing & sales strategy at Point-of-Sale
Product prioritization
www.globalintelligence.com

26. Business Case (2) – Market opportunity assessment
for mobile based wealth management solutions for
HNWI in India
Industry: Media and Information technology
Geographic scope: India nationwide
Strategic objective/issue
• A leading global provider of information services wanted to assess opportunities to develop
and commercialize a new mobile based wealth management solutions and information
services for High Net Worth Individual (HNWI) investors in India.
• Client also wanted to understand behavior of potential HNWI customers, their information
needs and the value they would put on a mobile solution
Approach
• GIA conducted in-depth interviews with 15 HNWI to develop understanding of investment
behaviors of HNWI, their wealth management information, transaction and other needs,
unmet needs/pain points, usage/perception around mobile and the value/cost associated
with such a proposition
• Further GIA suggested a deep-dive study to formulate product development strategy including
identification of the core functions, contents and proposition attributes that the HNWI’s need
on the mobile platform as well as developing a business case and proposition
www.globalintelligence.com – page 26

27. Business Case (2) – cont’d
Solution
• GIA developed in-depth understanding of investment objectives, attitude towards risk and information needs of
potential customers through in-depth interviews with HNWI across various cities in local language
• Identified current gaps in information needs, investment channels, willingness to pay, purchase drivers and
inhibitors for mobile based solutions
• Analyzed the information, formed conclusions and verified key conclusions with selected HNWI interviewees
Investment attitude of HNWI Conclusion and recommendations
customers
Investment objectives & research
needs of HNWI customers
Willingness to pay for
investment information
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28. Business Case (2) – cont’d
Key Benefits
• Client gained a comprehensive understanding of needs and preferences of HNWI investors in India as well
as market opportunities for new mobile based solutions
• Clear picture of opportunities and challenges supported by facts and opinions of potential target customers
• Client benefitted from a series of recommendations pertaining to product development roadmap, channel
strategy for the business
Commercial strategy
Challenges and opportunities
Product development
Critical success factors considerations & road-map
and road-map
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29. Thank You for Your
Attention
Contact Us
For additional information
about Global Intelligence
Alliance and our services,
please send an email to
info@globalintelligence.com
or log on to the GIA website
www.globalintelligence.com.
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