This document provides an overview of marketing in India, including key details about the country's geography, population, economy, industries, and cultural differences relevant for marketers. It highlights India's large population and fast growth, as well as challenges such as poverty, corruption and lack of infrastructure. The document uses McDonald's entry into the Indian market as an example of successfully adapting to local customs and tastes.

1. Marketing in India
A Market Focus Overview
Prepared by:
Jasjit Singh
Harmandeep Deol
Neha Randhawa

2. Agenda
2
1) Land & Climate 5) Government & Economy
2) Language & Religion 6) Agriculture & other Industries
3) Natural Resources & Hazards 7) Imports & Exports
4) Population 8) Poverty & Corruption
9) Why Invest in India? 12) Cultural & Marketing Value Differences
10) Market Research 13) Ease of Business in India
11) Maslow’s Hierarchy 14) McDonald’s Example
About India
Marketing in India

3. Fun Facts
• Home to Taj Mahal – one of the wonders of the world
• Chess was invented in India
• “Pi” or π was first calculated by Indian mathematician
• Indian’s can eat spicy food!
• World’s largest producer of licit opium for the pharmaceutical trade
• India was one of the richest countries in the world prior to the British
invasion in 17th century
3

4. 4

5. Land & Climate
5
• Area: 3.3 mn km2 (compared to Canada, 10.0 mn km2)
• Bordering countries: China, Nepal, Pakistan, Bangladesh,
Bhutan and Burma
• Terrain: Upland plain in south, flat to rolling plain along
Ganges, desert in west, Himalayas in north
• Climate: Varies from tropical monsoon in south to
temperate in north

6. Language & Religion
6
• 15 official languages, 1 unofficial language (English)
widely spoken
• Official languages: Hindi (41%), Bengali (8.1%), Telugu
(7.2%), Marathi (7%), Tamil (5.9%), Urdu (5%), Guajarati
(4.5%), Kannada (3.7%) and others
• Over 200 dialects spoken across nation
• Religion: Hindu (80.5%), Muslim (13.4%), Christian
(2.3%), Sikh (1.9%), others (1.9%)

7. Natural Resources
7
• Coal (fourth largest reserves in world)
• Iron ore
• Manganese, mica, bauxite, titanium core, chromite
• Natural gas, petroleum
• Diamonds
• Limestone
• Arable land

8. Natural Hazards
8
• Droughts
• Flash floods
• Monsoons
• Earthquakes
• Recently active volcano (Barren Island in
Andaman Sea)

9. 9

10. Population
10
• Population of 1.2 billion as of July 2014; 2nd to
China… Population of 34.8 million in Canada
• 36.4 population per square km… Very dense!
• 3.2 population per square km in Canada
• 31% urban vs 69% rural
• Population growth: 1.25% est.
• Life expectancy:
• Males 66.7 years old (79.1 yrs in Canada)
• Females 69.1 years old (84.4 yrs in Canada)
(Million) Population
New Delhi 22.7
Mumbai 19.7
Kolkata 14.4
Chennai 8.8
Bangalore 8.6
Hyderabad 7.8

11. Population Distribution
11
(Million) Population
< 15 yrs old 28.5%
15-24 yrs old 18.1%
25-54 yrs old 40.6%
55-64 yrs old 7.0%
65+ yrs old 5.7%
Median Age 27 yrs old

12. People
12
• Ethnic groups: Indo-Aryan 72%, Dravidian 25%,
Mongoloid and other 3%
• Adult literacy rate: 62.8% (compared to 99% in Canada)
• Major socio-economic issues such as malnutrition, child
labour, economic disparity, poverty (30% pop’n below
poverty line)
• Children <5yrs underweight: 43.5% (virtually non-
existent in Canada)
• Child labour (5-15 yrs): 27.0 mn

13. 13

14. Government
14
• 29 States, 7 Union Territories
• Gained Independence from the British in 1947
• Legal system: Common law based on English model
• Separate personal law codes apply to Muslims, Christians and
Hindus
• Judicial reviews of legislative acts

15. Government
15
• Chief of State: President & VP
• Government Head: Prime Minister
• Legislature – bicameral
• Council of States (245 seats) and People’s Assembly
(545 seats)
• Parties: Multiple (21+)

16. Prime Minister of India
16
• Narendra Modi is new prime minister of India
• Assumed office May 26th, 2014
• Leader of the Bharatiya Janata Party (BJP)
• 2012 Internal BJP documents…
• “BJP has opposed FDI (foreign direct investment) in multi-brand
retail right from the beginning”
• “Small businessmen will be forced to down their shutters now”
• After taking over office, he’s soften his stance on FDI

17. 17

18. Economy
18
• GDP (real): Y2010 = $1.73tn (USD) – 9th largest
• Compared to Canada Y2010 = $1.58tn (USD)
• GDP/capita (PPP): Y2013 = $5,410 (USD)
• Compared to Canada Y2013 = $43,100 (USD)
• Workforce: 487.3mn (19.1mn in Canada)
• Labour force by occupation:
• Agriculture (49%), industry (20%), services (31%)

19. Agriculture
19
Rice Lentils
Wheat Onions
Oil Seed Potatoes
Cotton Dairy Products
Jute Sheep/Goat
Sugar Cane Poultry
Fish

20. Industries
20
Textiles Mining
Chemicals Petroleum
Food Processing Machinery
Steel Software
Cement Pharmaceuticals
Transportation Equipment Labor (Outsourcing)

21. Services
21
IT Services
Engineering, Business Services
Energy and Power
Hotel and Tourism
Retail
Transport Services
Banking and Finance

22. GDP per Capita based on PPP
22

23. Imports
23
• $467.5bn (est. 2013)
• Ranked 12th in the world
• Commodities include crude oil, precious stones,
machinery, fertilizer, iron and steel, chemicals
• Import from China (10.7%), UAE (7.8%), Saudi Arabia
(6.8%), Switzerland (6.2%), USA (5.1%) (est. 2012)

24. Exports
24
• $313.2bn (est. 2013)
• Ranked 19th in the world
• Commodities include petroleum products, precious
stones, machinery, iron and steel, chemicals,
vehicles, apparel
• Export to UAE (12.3%), USA (12.2%), China (5%),
Singapore (4.9%), Hong Kong (4.1%) (est. 2012)

25. 25

26. Income Equality
26
• “Rich” households ($35K+ income p.a.) 16 million
• “Middle-class” ($8K to $35K+) 160 million
• “Aspiring middle-class” ($3.5K to $8K) 359 million
• “Deprived” (<$3.5K) 684 million
• 170,000 millionaires and billionaires

27. Poverty
27
• Poverty in India is a systemic problem
• 30% of population living below poverty line
• 68.8% of Indian population living on less than $2 per day
(est. 2010)

28. Corruption
28

29. Lack of Infrastructure
• Expensive Real Estate
• Low spending on Infrastructure
• Very low private sector spending
29

30. 30

31. Why Invest in India?
31
• Underserved market
• Enormous market size
• Small but fast growing middle class
• Many potential consumers in upper-middle income
class
• Growing software and electronics industry
• Outsourcing opportunities due to low salaries
• Profits $$$

32. Market Research is Challenging
32
• Lack of secondary data in public domain (gov’t
census from 2001)
• Undocumented, outdated, fragmented data
• Digitization of records beginning to occur
• Consumer insights in English are not good enough
(recall 15 official languages)
• Businesses and people suspicious of giving
interviews or sharing information

33. … But it Can Be Successful
33
• Use multiple data collection sources
• Validate information
• Test and strengthen hypotheses
• Hire locals with experience
• Choose local partners for practical research
approaches

34. Maslow’s Hierarchy
34
Relating consumption patterns and levels to basic human need-fulfilling behaviour
Self
Actualization
Esteem
Social
Safety
Psychological
Status
Admiration
Affiliation
Safety
Psychological
Maslow’s Hierarchy of Needs Maslow’s Hierarchy: The Asian Equivalent

35. Cultural Values Differences
35
Classic Western Traditional Asian
Nuclear, family, self, or immediate family Extended family, blood /kinship/ work groups
Beliefs in competition, challenge, self-expression Beliefs in harmony, cooperation, avoiding confrontation
Personal responsibility, independence Shared responsibility, interdependence
Doing one’s own thing Public self and “face”
Resentment of authority Respect of authority
Primacy given more to youth and change Age and seniority important, value tradition
Control by “guilt” and conscience Control by “shame” and “loss of face”

36. Marketing Values Differences
36
Classic Western Traditional Asian
Brand segmentation; personal choice and self-
expression through brand
Popular famous brands; confidence in brand and
corporate names
Presenters/ testimonials important but more to draw
attention to brands
Imitation, emulation, use of presenters as role models in
ads
Seeding and diffusion from leading edge Rapid adoption of successful brands
Belief in “understatement” of wealth Display of wealth and status
Environmentalism Confidence in technology

37. 37

38. Doing Business Criteria
38

39. Ease of doing Business in India
39

40. Business Registration
40

41. Business Registration - Comparison
41

42. 42

43. McDonald’s Advertisement
43
• http://youtu.be/ErnTTK7zOeU

44. McDonald’s India Menu
44
• http://www.mcdonal
dsindia.com/happy-
price-menu.html

45. McDonald’s in India
45
• Entered Indian market with two local partners – 50/50 Joint-Venture (first store
opened Oct 1996)
• Religious views considered by McDonalds:
• Indian’s don’t eat beef, cows sacred animal for Hindus
• Muslims don’t eat Pork
• Menu modification to suit local tastes…. major vegetarian menu play, spices, etc
• Ensuring diversity in product offerings while maintaining core brand image and
affordable pricing
• Storefronts, kiosks, drive-thru, McDelivery

46. Thank you!
Q&A
46

47. Bibliography
47
• Maps of India
http://www.mapsofindia.com/maps/india/india-political-map.htm#
• CIA World Factbook – India
https://www.cia.gov/library/publications/the-world-factbook/geos/in.html
• CIA World Factbook – Canada
https://www.cia.gov/library/publications/the-world-factbook/geos/ca.html
• Open magazine wealth report
http://www.openthemagazine.com/article/business/the-wealth-report

48. Bibliography
48
• Wikipedia
http://en.wikipedia.org/wiki/Economy_of_India
• World Bank
http://data.worldbank.org/indicator/SI.POV.2DAY
• Transparency International
http://www.transparency.org/country#IND
• Global Marketing Management, 8th ed. Keegan, Warren J. pages 133-136, 171-172,
189
• Bharatiya Janata Party. (2012)
http://www.bjp.org/images/publications/fdi%20booklet.pdf

49. Bibliography
49
• Price Waterhouse Cooper Indian Infrastructure Report
http://www.pwc.com/gx/en/capital-projects-infrastructure/assets/gridlines-india-
article-2013.pdf
• World Bank
http://www.doingbusiness.org/data/exploretopics/starting-a-business
• World Bank
http://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD/countries/CA?display=graph
• McDonald’s in India
http://www.mcdonaldsindia.net/key-milestones.aspx

50. Bibliography
• KPMG
http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/D
ocuments/KPMG-CII-Ease-of-doing-business-in-India.pdf
• Doing Business
http://www.doingbusiness.org/data/exploreeconomies/india/~/media/
giawb/doing%20business/documents/profiles/country/IND.pdf
50