5 Factors that Influence Indian Market Entry Strategy

Given the complexity of the Indian market it is important that one must carry out detailed research. We list the important factors that will influence your Indian market entry strategy.

India today forms one of the biggest markets in the world, one that is growing at an exponential pace. It has the advantage of sheer numbers and a fairly stable economy. Yet it is not an easy market to break into. Regional peculiarities, diversity and a complex market make it a unique challenge.

One needs the right strategy to enter, grow and then expand in the local market. The easiest way

is to hire an Indian market research firm. With their unique knowledge of Indian conditions and environment, they can help a foreign firm immensely.

Analysing need: Before an entry into any new market the most essential requirement is to analyse the need for the product. Is there an actual requirement for the product? If not, can a requirement be created? Market research for a product depends on the analysis of its potential customers and how they behave. What are their spending patterns and how can your product fit into this? This will help you to define your market and plan your strategy accordingly.

Sales and distribution channels: Establishing a successful business depends largely on the right props, namely its sales and distribution channels. This actually involves your entire production and sales strategy. Is it viable to have production facilities within India or does it make more sense to rely on existing production capacity?

Then comes the distribution or sales channels. A research firm will start with shortlisting all possible channels and then evaluating the pros and cons of each possibility. Any Indian market entry strategy will also consider sales strategies. Which cities should you start with? How should you carry out your sales campaign? Should you focus on big brand stores or invest in individual showrooms? Should you focus on the high-end luxury showrooms or stick to chain stores?

Studying the competition: One of the factors that decide your market is the competition. Who are your competitors? What is their market share and how much market share can you expect? A good researcher will also analyse your product vis-a-vis the competition. How is their product different from yours? What gives your product an edge? All these factors are necessary to determine pricing and sales strategies. 

Customisation: The Indian market is unique and local conditions differ significantly from western markets like UK or even Asian markets like Singapore. Local conditions often differ from one state to another. In this situation, it often becomes necessary to customise one’s products.

This could be due to preferences, fashion, culture or specific laws. Sometimes customisation becomes necessary due to Indian laws. For instance, an automobile company must customise its cars to meet prevalent norms of the country.

Expansion and growth: An Indian market entry strategy will also consider future expansion and growth. The usual tactic involves introducing a new product in high volume markets in big metros. How should you expand to the next level? What are the future market forecasts and how is production and sales team equipped to meet it? All these factors must be researched thoroughly beforehand.

Ref: - http://www.articlesbase.com/marketing-tips-articles/5-factors-that-influence-indian-market-entry-strategy-7458658.html