FOREIGN COMPANIES DOMINANCE IN INDIAN MARKET

INTRODUCTION

This is a project study which us an overview of how a foreign multinational company first studies our Indian market, defines a strategy to enter in a booming economy country like India, how they categorize themselves & form a joint venture as per their product, how they plan & develop a strategy for their product launches, difficulty they face in the stiff & competitive market, we will also learn how the companies which have made a huge initial investment in India, struggled earlier have then went to break even their cost & turn slowly to a profit making organization.

PAST, PRESENT, FUTURE

In the earlier periods of the 19th century, all the products which were used by the any industry or common man were either manufactured entirely by any Indian company or will be rarely be imported, there was hardly any company which was having any ventures with the Indian counterparts, hence all the consumers were used to the makes & brands which were from India & well established. Currently the market scenario has changed as well as the thinking of all the companies from India, majority of them are now having a technical collaboration for the technical know- how of the product, to increase its cost effectiveness, launching of newer products which are more cost competitive to increasing their profits margins. It s not only the need of the Indian company but also the necessity of the foreign organization which leads to this joint venture, as even they want to increase their market share worldwide & as for a Indian manufacturer it s a platform where he can be partner with a global player & in turn expand his business worldwide.

CONSUMER BEHAVIOR

Changing lifestyles and preferences of Indians: Another contributory factor for the success of these foreign F&B players is due to the change in the lifestyles of the consumers. There is a rapid increase in the spending capacity of the middle class due to increase in disposable income. The Indian consumers spend around 51 per cent of their earnings on food and beverages. Moreover, the preferences of Indian consumers have also changed. Now-a-days people prefer trying out different cuisines rather than the regular Indian dishes. Majority of youth population: Almost three-fourth of the nations population consists of the youth. Youngsters are the main consumers who desire to eat out and try different cuisines. Therefore, the growth in this segment has propelled foreign players to enter with their own unique cuisines.

PRE-LIBRALISATION AND POST-LIBRALISATION After the liberalization in 1991 many international brands comes to India for setting up there business and some of has also there manufacturing units due to low labor cost and talented people. Foreign companies enter basically in Garments(Hugo Boss, Marks & Spencer, Benetton, Lacoste, Mango, Louis Vuitton, Givo,), Telecom Industry (Samsung,Nokia,Vodafone,Sony Ericson), Spots articles (Reebock,Nike,Addidas,Cartire), Soft Drinks (Pepsi, Coca Cola), Motor Industry (Honda, Kawasaki, Suzuki) fast food industry ( MC Donald) and many more.

1ST FORGN ENTERENCE IN INDIA

1970 S LATR 2011

BABA RAMDEV

Why we should boycott foreign brands and products

History:
Earlier Swadeshi and Boycott movements were started in India when the East India Company was leaching our wealth by destroying the domestic industries and selling their own products here. Swadeshi focused on the consumption of self produced goods and Boycott focused on abstaining from using or buying foreign goods with an aim to uproot the British Empire and make India self-sufficient by the revival of indigenous industries.

Todays need:
Today though the East India Company no longer exists in India, there are several foreign companies which are carrying on trade in India. After the liberalization and globalization policies of India, various foreign companies (e.g. Pepsi, Coca Cola, IBM) came to India to make money and in the process destroyed the domestic industries and suppliers to monopolize the market. Now these companies are making crores of rupees and sending the money back to their parent concerns or their home countries in forms of royalties or profits. Some of the biggest Multi National Companies(MNCs) in India are Hindustan Uniliver Ltd.(HUL, A subsidiary of UKs Unilever), Pepsi, Coca-cola, IBM, Indian Tobacco Company(ITC, a subsidiary of American Tobacco Company). These companies buy raw materials from India, make Indians make the product/services and sell the final product to Indians, making a huge amount of profit in between and taking that out of India. Thus due to the absence of domestic players money goes out of India. Also these companies are invited by corrupt government officials/bureaucrats on the basis that they bring capital, employment, technology to India and increase Indian exports which is a white lie. Thus the time has arrived to restart the Swadeshi and Boycott movements to protect India from these companies which are trying to weaken Indias economy. Start purchasing swadeshi products instead of foreign goods to protest against these foreign companies and to make India economically stronger.

FOOD

Fast food sector: These are also known as quick service formats. This segment includes ChicKing, established under Banquet Foods International; a part of Dubai based Al Bayan Group of Companies and has 50 units across 15 cities in India, Pizza Hut, flagship brand of Yum! Brands has 143 franchised outlets in over 38 cities in India, Marry brown, a Malaysian company with MGM Group of Companies as the master franchisor has 31 units presently, Subway presently has 165 units and aiming to have 250 by the years end also occupies a position among the top international brands. Another player occupying a position is The Pizza Company, launched by Minor Food Group, has 250 units and is still expanding. Ice-cream sector: This sector includes an already established brand, Baskin Robbins with its 375 franchised outlets panIndia

McDonalds

1996
y McDonald's opened stores in India. It cost about $250,000 to open a franchise. McDonalds entered
the Indian market on 13th October 1996. Currently they have 56 outlets in 12 cities. The cities which have McDonald's outlets are: Mumbai, Pune, Delhi, Gurgaon, Faridabad, Jaipur, Mathura, Ahmedabad, Vadodara, Ludhiana, Manesar and Noida. McDonald's in India has employed around 2000 employees. McDonald's plan to open many more outlets in other cities as part of their aggressive campaign to spread the McDonalds experience to as many Indians as possible. Used 5p s marketing mix Product, place, price, promotion, people

MOVIES

CARS

ELECTRONICS

COSMETICS

It was considered a marketing coup of sorts when Madame Chirac, accompanying her husband, French president Jacques Chirac, on his India tour, agreed to inaugurate Dior's first store in India, at The Oberoi in New Delhi, in February. For luxury brands trying to make their presence felt in a new market such as India, marketing spells a curious mix of socialite parties, fashion shows or simply choosing an 'appropriate' socially-active brand ambassador.

L Oreal

It entered Indian market in 1991

Racing to expand in a competitive global marketplace, L Oreal is tapping into a powerful demographic force: India's emerging middle class, estimated at 200 million people, according to Tata Consultancy Services in Mumbai. Over the past decade, foreign brands, from Tommy Hilfiger jeans to Absolute vodka, have moved in to capture a slice of the market. L Oreal s strategy stands out as particularly aggressive compared with its competitors. Most Western cosmetics companies stock grocery stores in India with low-priced basic shampoo and cold creams that compete with an array of local brands. For example, market leader Hindustan Unilever Ltd., the Indian subsidiary of the Anglo-Dutch consumer-goods giant, sells 70-cent bottles of body lotion and 90-cent shampoo. Its target audience includes the more than 800 million people in India who live on less than $2 a day. In contrast, one of L Oreal s biggest sellers in India is its Excellence Crme hair color -- priced at $11 a bottle. Teeing off its success at the high end of the market, L Oreal recently accelerated its rollout of mass-market products, too, including a $2.70 hair dye and small packets of shampoo costing less than $1. But many L Oreal products are still relatively pricey by Indian standards

REVLON
Modi-revlon is the formidable alliance between the modi group and the world famous Revlon of USA.

Modi-revlon was the first international cosmetic brand to enter india in 1995.modi-Revlon has entered the Indian market and has redefined the concept of beauty care in india. It brings to the Indian women an exciting range of international cosmetics.modi-revlon draws on the expertise of Revlon s premier research center in Edison, new jersey (USA), to hormonise its international product offerings with the needs and preferences of the Indian women.

FASHION

FMCG GOOD

CO-ORPORATES

Banks n airlines