Market Strategies Assignment
Chosen country and market entry strategy
The retail sector of India is going through transformation (Malyadri & Rao, 2011). The retailing sector is the largest private industry in India (Mundra, Mundrab & Singh, 2013).India shines against china as India has the lowest penetration rate of organized retailing. India has 19 percent of organised retail sector but China has more percentage in organised retailing. That means the Brazil, China and Russia organised retail markets are more saturated than India. The huge population of India and the largest retail stores presence in the world makes it a more viable option for retail business. India has the similar highest growth rate of GDP as China but the property prices are higher and lack of transparency in government decisions is prevalent in China. Also the limited scope of development for foreign companies makes the country less attractive than India. The lack of English speaking people is also an issue company has to face that is not a problem in India. Though the GDP of China is much larger than India but the retail sector particularly makes India a more preferred destination. It has huge GDP and highest GDP growth rate, good infrastructure, rising middle class and young age group that are the potential target for retail company, good stable government, affordable real estate prices, English speaking people, economic labour, skilled people, highest opportunities in retail market as it has the lowest organised retail sector among BRIC countries, good double digit growth of retail sector, good care of minority investors and credit facility to investors. The other countries such as Brazil and Russia have not been considered due to high organized crime rate, corruption, lack of infrastructure but the main reasons are their small size of economy and their disappointing GDP growth rate and their saturated organized retail market that is not developing as per the Indian retail industry that is growing over 20 percent per annum.
Market entry strategy
The company should choose joint venture in to entering the Indian retail market. it is identified by the foreign direct investment report in India that companies have opted for joint ventures and mergers to capture the attention of local markets. This local company can work as a agent to spread the brand name of company to the Indian customers. for entering the market company can utilize the rapid penetration strategy for pricing of the products as the Indian people are price sensitive too and brand loyal. The initial prices of products should be kept low to allure the customers to purchase and there should be discounts offered to the customers by sales promotion and advertising methods. Company has to adopt a polycentric approach or geocentric approach that means the company should understand the needs of the customers properly and offer them customized solutions in terms of products, and services.
For marketing of products company has to take in to care of cultural and economic factors. The languages, literacy and other factors must be taken in to account. In India, reference marketing works so the company should market its products through reference and celebrity marketing. For marketing company should focus on the relationship marketing. The relationship marketing must be established by creating rapport and credibility. For this purpose, company has to partake in social events and sports events particularly cricket and sponsor them to gain popularity. Company has to recruit the people who have good interpersonal, managerial and cultural competency.
For managing the Indian staff, company people have to develop the cultural competency. It is combination of knowledge, attitude and skills (Kathryn, 2011). The cultural competency training can help them to understand the cultural norms and behaviour of Indian people. There are different religions, caste systems, and different ideologies prevalent in India. So developing insights about these can help company to better manage the Indian staffs.
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