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INDIA

India's Political System

Map

  • Pranab Mukherjee: India's current President

McDonalds

India's Economy/ current issues and trends

Religion &

Culture

  • Biggest democracy in the world.

  • A multi party political system

Cultural & Religious effects on marketing

  • Brief information on India's demographics and climate
  • Culture and Religion
  • India's economy and current issues
  • Tesco entering the Indian Market
  • Political system of India
  • Conclusion
  • Maharaja Mac Introduced in India to substitute beef products as cow is believed to be sacred.
  • McAloo Tikki burger - includes Indian spices
  • 75% menu changed to accommodate Indian taste.
  • Big Mac is made of lamb not beef.
  • Additional vegetarian options on the menu
  • Religion
  • Culture
  • Cultural & Religious influence on Marketing

-Bollywood/Entertainment Industry

-GDP

-Poverty in India

-Rapid Urbanization

-Sustainable Growth

  • 545 MPs

References

(India Marks, 2013)

Introduction

  • Himalayas to the north
  • Coastal plains
  • Thar desert to the north west
  • Cultural India. (2014). Indian religions. Available: http://www.culturalindia.net/indian-religions/. Last accessed 30th Mar 2014.
  • Public Intelligence. (2009). why is india not a muslim country. Available: http://www.phibetaiota.net/2012/10/search-why-is-india-not-a-muslim-country/. Last accessed 30 Mar 2014.
  • Robbie Kalman (2010). India:The Culture. 3rd ed. UK: Crabtree publishing company. p12-30.
  • Kim Ann Zimmermann. (2013). Indian Culture: Traditions and Customs of India. Available: http://www.livescience.com/28634-indian-culture.html. Last accessed 30th Mar 2014.
  • BBC News. (2012). India's Dalits still fighting untouchability. Available: http://www.bbc.co.uk/news/world-asia-india-18394914. Last accessed 1st Apr 2014.
  • R.K Pruthi. (2004). Caste System in India. In: R.K Pruthi Indian Caste System. Delhi, India: Discovery Publishing House. p160-166.
  • India Marks. (2013). What You Can and Can’t Get at McDonalds India. Available: http://www.indiamarks.com/what-you-can-and-cant-get-at-mcdonalds-india/. Last accessed 1st Apr 2014.
  • One India News. (2009). PETA activists protest against KFC's cruel treatment of chickens. Available: http://news.oneindia.in/2009/06/04/petaactivists-protest-against-kfcs-cruel-treatment.html#infinite-scroll-1. Last accessed 1st Apr 2014.
  • Srinivas Reddy and Christopher Dula. (2013). Gillette’s ‘Shave India Movement’. Available: http://www.ft.com/cms/s/0/8da786b8-37e7-11e3-8668-00144feab7de.html#axzz2xfEhcsyo. Last accessed 1st Apr 2014.

  • Wax,E (2008) With Indian Politics, the Bad Gets Worse. Available: http://www.washingtonpost.com/wp-dyn/content/article/2008/07/23/AR2008072303390.html last accsessed 26 Mar 2014.
  • The India site (2013) Family Politics. Available: http://www.theindiasite.com/family-politics/ last accessed 1st Apr 2014.

Poverty in India

Sustainable Growth

"Indian cities are urbanizing at an unprecedented scale and pace. Over the next few decades, India's urban population is expected to increase significantly, from 377 million in 2011 to 590 million by 2030."

source: (H Dalkmaan, 2013)

- Poverty is a huge issue in India and has a major affect on the economy.

“This week the Planning Commission said 29.8% of India's 1.21 billion people live below the poverty line, a sharp drop from 37.2% in 2004-2005. (This means around 360 million people currently live in poverty.) But one estimate suggests this figure could be as high as 77%.”

source (Swami, 2014)

source: (S Biswas, 2013)

  • The culture of corruption exists at all levels of government.

- Been around since 1913, over 100 years in the industry.

-Created very big named stars such as SRK, Amir Khan, Katrina Kaif and many more.

- The industry supports around 1.9 million jobs.

- "Overall Indian economic growth may have slowed but the entertainment industry is in good health, contributing Rupees 50,000 crore to the economy, equating to 0.5% of GDP in 2013."

- 2.5 million needed to add to bollywoods workforce over the next 8 years.

  • Nearly a fourth of the 545 Parliament members face criminal charges

References

(Wax,E 2008)

  • Corruption has carried over since the days of the British Raj, when politicians and bureaucrats expected under-the-table payments.
  • This creates a cycle of corruption; people of India feel that they also need to use bribery to get somewhere.

Religion

India

  • When looking to do business in India; people should be aware that there is a history of corruption in India's political system.

Gillette

Corruption in Indian Politics

  • CIA World Factbook. (2013). India Demographics Profile 2013. Available: http://www.indexmundi.com/india/demographics_profile.html. Last accessed 03/04/2014
  • Maps of India, (2012). Indias Climate. Available: http://www.mapsofindia.com/india-climate.html. Last accessed 04/04/2014.
  • BBC, Religions, (2009). Mughal Empire (1500s, 1600s). Available: http://www.bbc.co.uk/religion/religions/islam/history/mughalempire_1.shtml. Last accessed 04/04/2014.
  • History Learning Site (2013). India 1900 to 1947. Available: http://www.historylearningsite.co.uk/india_1900_to_1947.htm. Last accessed 04/04/2014.
  • Cultural India, (no date) Indian Religions. Available: http://www.culturalindia.net/indian-religions/. Last accessed 04/04/2014.
  • Cine Swami. (2014). how is Bollywood helping the Indian Economy. Available: http://www.bollywoodlife.com/news-gossip/how-is-the-bollywood-helping-the-indian-economy. Last accessed 02/04/2014
  • Kimberly Amdeo. (2014). what is GDP?. Available: http://useconomy.about.com/od/grossdomesticproduct/p/GDP.htm. Last accessed 02/04/2014.
  • Soutik Biswas. (2013). Who are the poor in India?. Available: http://www.bbc.co.uk/news/world-asia-india-17455646. Last accessed 02/04/2014.
  • Euromonitor. (2013). India's rapid unplanned urbanisation. Available: http://blog.euromonitor.com/2013/05/indias-rapid-unplanned-urbanisation-creates-opportunities-and-challenges.html. Last accessed 02/04/2014
  • H Dalkmaan, A Prabhu. (2013). Sustainable development in Indian Cities. Available: http://www.wri.org/blog/5-keys-sustainable-development-indian-cities. Last accessed 02/04/2014.
  • Nafees Meah. (2013). Sustainable cities and challenges of urbanization in India. Available: http://blogs.rcuk.ac.uk/2013/07/01/sustainable-cities-and-the-challenges-of-urbanisation-in-india/ . Last accessed 02/04/2014.
  • Justin Harper. (2014). Tesco to Invest in India. Available: http://www.telegraph.co.uk/finance/personalfinance/expat-money/10740210/Tesco-to-invest-in-India.html. Last accessed 09/04/2014.
  • BBC. (2014). Tesco Signs Deal to Enter India's Supermarket Sector. Available: http://www.bbc.co.uk/news/business-26686357. Last accessed 09/04/2014.
  • Population - 1.21 Billion (2nd)
  • 17.5% of world population
  • Set to surpass China as most populous by 2025

Poverty in India

Cultural and Religious effects on marketing

Capital City: New Delhi

A number of religious facts about India:

  • Main religion in India is Hinduism
  • Sikhism was founded in India in the 15th century.
  • Christianity arrived in India over 1800 years ago.
  • India has the second largest muslim population in the world.
  • Every religious festival is welcomed in India.
  • Gillette Guard - an affordable razor designed for India.
  • Targeted at customers from a poor background as well as the elite class.
  • Manufactured in India

- Population in India is estimated at 1.237 Billion,

- Roughly 270 million are poverty stricken,

- More people suffer from poverty in India than in the 20 poorest countries in Africa.

There is an urge to improve the quality of life in Indian cities not only for the present, but for future generations too. The following are important to this:

- Food and Water supply

- Education system

- Transport

-Infrastructure

-Healthcare

Most Populous Cities:

  • Mumbai - 12.5 million
  • Delhi - 11 million
  • Bangalore - 8.5 million
  • Hyderabad - 6.8 million
  • Ahmedabad - 5.6 million

India's Landscape

Sustainable Growth

(Srinivas Reddy, 2013)

A short video on

Gillette Guard

Parliament Structure

Bordered by:

  • Pakistan
  • Nepal
  • China
  • Bhutan
  • Burma
  • Bangladesh

(Cultural India, 2014)

(Public Intelligence, 2009)

Rapid Urbanization

From now till 2030, the following are predicted;

- 590 million will live in cities, nearly twice the population of the United States today,

- 270 million people net increase in working-age population,

- 70 % of new net employment will be generated in cities,

- 68 cities will have a population of 1 million+, up from 42 cities today.

Culture

This pie chart represents the backgrounds of all 545 MPs.

(One India News,2009)

(The india state 2013)

source: (Nafees Meah, 2014)

Gross Domestic Profit (GDP)

-"The best way to understand a country's economy is by looking at its Gross Domestic Product (GDP). This economic indicator measures the country's total output. This includes everything produced by all the people and all the companies in the country."

- India's GDP for the year 2012 was 1.842 Trillion USD.

India

source: (Kim Amadeo, 2014)

  • Farmers protesting against KFC stating they promote junk food and will effect their live stock.
  • Protest by People for the Ethical Treatment of Animals (PETA) regarding cruelty towards chickens.
  • Food price not affordable
  • India has a rich cultural history which dates back to 5000 years.
  • Extensive range of food, ancient arts and various religions make up the indian culture.
  • There are 29 official languages spoken.
  • Taj Mahal - Great architectural work and historic symbol.
  • Indian classical dance culture is known world wide
  • Many religious festivals such as Diwali, Christmas and Eid.
  • Much of the food is eaten with bare hands. Naan bread, chapatis and rice are common accompaniments.
  • Indian traditional clothing: Dhoti & Kurta (men) and Saari (Female).
  • Arranged marriages are common.
  • Caste system concept

KFC

Rapid Urbanization

India

It is evident that the Indian Political system is flawed in many ways. Businesses looking at India as a prospect should realize that although there is a huge market and population to target, they could be at a disadvantage from a corrupt political system.

  • Corruption significantly impacts India's business environment and poses a threat to the continued economic growth.
  • Corruption raises the cost of doing business thus affecting foreign direct investment.
  • India experiences a variety of climates which can range from temperate in the north (Himalayan), desert in the north west and tropical monsoon in the south.

Affect on Businesses

GDP

  • Significant tax revenues have been lost due to corruption.
  • India has been home to a number of different civilizations in its history which dates go back to over 2000 BC.
  • These include well known empires such as the Mughal Empire during the 16th century up to the British rule which lasted from 1858 to 1947.
  • Following this, India then became an independent nation in 1947, effectively ending British rule.
  • India is one of the most religiously varied countries in the world, being the birth place of a number of religions such as Hinduism and Buddhism, both of which are the 3rd and 4th largest religions in the world with over 2 billion followers.

"By 2030, India's urban population is forecast to reach 631 million, an increase of 2.6% per year over the 2013-2030 period compared to the 1.1% annual rise expected in the total population. The urban population will account for 41.8% of the total population by 2030.”

(euromonitor 2011)

  • India's climate has a large impact on its agriculture and is based around the monsoon/rainy season which lasts from July to September.
  • Weak monsoons or droughts can have a large impact on the Indian economy with widespread agricultural loss and can lead to a negative effect on economic growth.

Cultural and Religious effects on marketing

- India's GDP growth rate in 2012 was at 3.2 %,

- the ideal GDP rate of growth is between 2% - 3%

- India is in the top ten for highest GDP in the year 2013

- "The economy today is far more stable and far stronger than it was 20 months ago." (Finance Minister, P Chidambaram 2014)

- Dehli and Mumbai are India's largely populated cities.

(Robbie Kalman, 2010)

(Kim Ann Zimmerman, 2013)

source: (euromonitor,2013)

Caste System

  • Brahmana - Associated with priestly and intellectual class. Considered as the highest and purest caste.
  • Kshatriya - The warrior class known for their bravery and physical strength.
  • Vaishya - The trading/business class.Known for entrepreneurial qualities.
  • Shudra - This class is involved in labor and

agricultural activities.

  • Dalit- The lowest caste. Face emense poverty and carry out jobs such as cleaning.

TESCO In INDIA

(BBC News, 2012)

(R.K Pruth, 2004)

TESCO in INDIA

Woman from the dalit caste

Tesco is one of the largest supermarket chains to enter the Indian market. M&S entered India back in 2001 and hope to have 36 stores by 2016. Unlike Tesco, M&S offer their own branded products.

- Third largest supermarket chain worldwide,

- Tesco looking to open 12 stores across India,

- Over £300 million Tesco products come from Indian suppliers every year,

- Would bring a mixture of culture to the stores, i.e British products as well as Indian.

Summary

“The joint venture makes Tesco the first foreign supermarket to enter India, the world’s second-most populous country. It will invest £85 million in 12 existing Star Bazaar stores selling food and groceries alongside homewares, kitchen products and fashion items.”

J Harper (2014)

B00234762

B00215767

B00240050

B00245767

TESCO in INDIA

By Jordan, Ali, Sulman and Seerat

MARK08006

- Tesco and Trent hypermartket limited have joined forces to open up Tesco chains across the country,

- Its an 85 million venture and the two companies will work together on sustaining Tesco's future in India.

- Tesco joining up with Star Bazaar will improve on the stock quality and quantity, which in turn will be beneficial for customers,

-"The retailer has agreed a joint venture with Trent Hypermarket Limited (THL), a unit of India's Tata Group which runs the country's Star Bazaar chain.

Tesco will invest about £85m in the 50-50 deal, following Indian government approval."

  • Variety of climates with have a large impact on India's agriculture.
  • Various religions are practiced freely
  • Culture dates back to 5000 years
  • Has the biggest democracy in the world
  • Organizations entering India need to make changes in order to accommodate cultural and religious requirements.
  • GDP growth is healthy.
  • TESCO supermarket chain has decided to enter India which shows the faith multinationals have in the Indian market.
  • India is heading towards a successful future if they continue to show hard work and determination.

BBC news (2014)

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