What is your market entry strategy for India?

4th quarter
2009
M+V Newsletter on business trends
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Content
Personnel questions:
How will you motivate distributors? Motivating owners and
What is your market entry strategy for India? 1
employees of independent distributors requires great effort.
How to keep Indian Executives ___________2
Price questions:
Cricket Explained – Part 3 _______________3
When calculating your market price for India keep in mind

Summer Internship Experience with
that duties, taxes etc. vary across the regions of India.
Maier + Vidorno | Cologne | Germany ______3
Location questions:
o M+V will sponsor 50 students ____________4 Where are the market leaders and trendsetters in India?
And where to start? Delhi, Bangalore, Mumbai and
Celebrating Diwali ______________________4
Chennai are entry points for many products, but do you
n
start everywhere at once, or in one or two of them?
Sales strategy questions:
r What is your market Planning sales activities (strategy): methods of reaching
clients, competitive differences and resources available;
long-term sales-goals, quantity of sales personnel per
o entry strategy for
India?
identified location? Also articulate day-to-day selling
tactics: prospecting, sales process, and follow-up.

To gain a competitive advantage, look at both sides of the
by Klaus Friedrich Meier | Senior
equation: tactics and strategy.
i
d
Project Manager | M+V Cologne
T o succeed in India, you need a clear market entry
strategy. The key factors of this strategy are good
analysis and planning - with a lot of patience and
commitment!
But what is the right strategy to enter a market like
India? Start with market analysis!




V
First and most vital you need rigorous and up-to-date
market analysis. This determines how attractive the market
r is for your individual product and pinpoints evolving
opportunities and threats. Topics should include: market
size (current and future), market growth rate, market
profitability, industry cost structure, distribution channels,
i
e market trends, key success factors and a thorough review
of local competitors.
Product modification questions:
When you have the market analysis you need to use it to
A market like India will ask for product modifications to sell
a develop a strong business plan – including budget
to the Indian needs1. While doing this always keep an eye
planning at least 5 years.
on your final price. It might be worthwhile developing your
own manufacturing in India, so prices can adapt.
M What’s in a good business plan? The answers to a lot
of questions!
When it comes to market entry in India, the questions
might be largely the same as in other markets, but the
Distribution questions:
answers demand a creative approach and profound
How are you going to distribute your products – India has
knowledge of the market!
28 States & another 7 “territories”, and is almost the size of
the European Union! This means that you probably need
regional wholesalers who distribute to the large number of
1 As with all markets, there are many potential adaptations: size, packaging
small, neighborhood retailers or dealers. Is your product
preferences, quality, appearance, where and how purchased, end-user
utility, cultural habits, translation of slogans, taste, ingredients subject to
i
nsight
made for the difficult logistics that you find in India? Do you
use external help or your own agents? Do you need a
import controls, regulations governing recycling of packaging materials,
prohibited ingredients, colours and shapes.
distributor, who sells to retailers or do you need to sell
directly to retailers? Who sells to end customers? What
kind of support do these distributors or retailers need?
i
ndia

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India Insight 4th quarter 2009 | For more information look at www.mv-group.com
page 2 of 4
How to keep Indian
Environment – Employees – including executives – thrive
best in environments where there is good trust and support
Executives
amongst senior management and with their employers.

Trust is critical to ensuring this environment, and executives
by Sabita Chanda | Head of Recruiting
need the authority and skills to be able to promote positive
Department | Bangalore
work enviroments for themselves and all those who work for
them.
T he Indian employment market is a complex one.
Traditionally the “formal” sector has been tiny
proportionate to the vast and unskilled informal
sector, and this formal sector focussed on stability with
employees staying with one company for most or all of their
professional lives – similar to Europe 40 years ago. The last
5-10 years have seen high economic growth, and opportuni-
ties for well-qualified Indians have increased as rapidly,
changing the Indian employment landscape forever.
The reputation of many Indian higher education institutions,
and the relative salaries paid historically, made many
Indians very attractive as employees, but as demand
continued to rise through the global boom, supply could not
keep up. Not enough graduates were coming through the
system; older and experienced people were difficult to reskill
given the very different cultural environments in the booming
economic sectors, and this combination led to very high
expectations and demands by those who are qualified.
People were changing jobs very quickly and getting signifi-
cant package enhancements with each move. Retention
was very difficult across all market segments – especially
with capable executives who received ever-greater offers
from new Multi National Companies entering India.
The global recession has slowed down this job-hopping and
accompanying pay increases, but India is still a growing
economy and employee retention strategies are essential
for companies to avoid high staff turnover.
Employee retention strategies encourage staff to remain
with the organization for the maximum period of time or until
the completion of the project. Employee retention is benefi-
Growth – this is important at all levels. Executives need to
cial for the organization as well as the employee, and
be able to keep building their skills and enhancing their CVs.
involves five major things: Compensation, Environment,
If there are opportunities within the company for further
Growth, Relationship, Support, but the first component is
growth these need to be highlighted, and the appraisal
hiring the right people in the first place.
system should capture executives’ growth plans and identify
ways to support them while they continue to give their best
Successful recruitment involves not just matching the most
to the company. For Indians, working with a multi-national
qualified person with the position, but ensuring their
company (MNC) will often provide opportunities for Internati-
understanding of the job responsibilities are clear because
onal exposure that will greatly enhance their CV.
unexpected job responsibilities are a key reason for job
dissatisfaction later on. Thorough reference checks ensure
Relationship – Appropriate expectations and clear commu-
that you hire people who are not only qualified on paper, but
nication will help ensure the relationship between the
also have verified experience and no history of inappropriate
company and the executive. Clear expectations need to be
conduct or fraud.
set from the start, and each year appropriate and agreed
With the right person in the right position, there are a
targets need to be set and appraised. This will help to
number of key strategies to keeping them – most of which
overcome any cross-cultural issues that often arise between
are similar in all countries:
Indian executives and their MNC bosses.
Compensation – the total compensation package of an
Support – this comes in many forms – structural support to
executive needs to be competitive. In India as in other
ensure executives can do their jobs effectively, psycholo-
markets, being under compensated is a serious demotivator
gical support during periods of stress.
and reduces loyalty. Regularly assessing market pay levels
helps ensure that you are providing the right package.
Compensation is very important, but is not the only factor!

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India Insight 4th quarter 2009 | For more information look at www.mv-group.com
page 3 of 4
Cricket Explained | Part 3
Team B to stay in bat.

If he does so, Team B
by Shavikesh Goel | Senior Project
must commence its
Manager
second batting innings
I
immediately (ie follow-
n this issue we talk of the oldest and the longest version
ing on from their last
of the game – the five day format popularly known as
batting). Each innings
“Test Cricket”. Test Cricket usually lasts for five days with
lasts until all the bats-
each team batting and bowling twice; at the end of which the
men are dismissed or
game can still end in a “draw” with no team winning!
until the batting team
“declares” the innings
Test cricket is played in “innings” during which one team
over after having
attempts to score while the other team attempts to prevent the
established a big
first from scoring. The competing teams alternate who is “in
“score” of runs.
bat” and who is bowling. The exception to this rule is a
“follow-on”. This happens if, at the end of its first innings,
Team B’s total falls short of Team A’s first innings’ total by at
… to be continued
least 200 runs, the captain of Team A can choose to order
Summer Internship
In India grapevine communication is rampant in the
workplace – unlike in Germany.
Experience with
At an Indian workplace people talk about their personal
Maier + Vidorno |
lives and household matters. However in Germany there
is a clear distinction between private and work life.
Cologne | Germany
Germany selldom share their food. People eat their

individual meals. This was very different as I had always
by Akanksha Rohatgi | Intern from
been sharing my food back home.

Welingkar | Mumbai
Germans can drink beer at any time of the year e.g. during
I
Karneval or Oktoberfest – also the women. Women
m student of Welingkar Institute of Management,
drinking is still considered a taboo in India.
Mumbai, India currently pursuing my MBA studies. At
the end of my first year I had the opportunity to intern
In food what surprised my peers is that I could eat a potato
with Maier + Vidorno GmbH in Germany for three months.
sandwich or have tea with milk! We Indian also eat very
spicy food which Germans find it very hard to digest.
Due to the fact that I was staying at a modern youth hostel
in the center of Cologne, I got to interact with people from so
Adjusting to the European work environment was easy and
many different cultures and countries. At the same time I got
I made a lot of international friends at work and outside.
hands-on experience in the corporate world and applied
Overall my summer internship was a great exposure and
what I had learnt in my lectures.
I am very thankful to Maier + Vidorno for their continuous
guidance and support.
During my three months stay some contrasting points about
Indian & German culture stood out:
Register now: M+V-Webinar
Germans are very particular about time - unlike Indians.
In India close affinity with a person/organization plays an
Next Webinar (Online Seminars) with focused
influencing role in finalising many corporate deals.
Information on the Indian Market
In Germany abiding by the law, sense of duty, time-
25th February 2010 | 14.00 h CET
planning, and structured planning are important – often not
“Infrastucture in India”
the case in India.
followed by a Q+A-session
In India difference in opinions are not voiced in public
Register at: www.mv-group.com/webinars
especially when one is dealing with a superior in India.
Past Webinars are available on our website:
Germans are very candid and straight forward whereas
Indians may not talk very directly. They may give hints or
www.mv-group.com/de/sonstiges/webinar-archiv.html
many a times mean something else than what they say.
Hear experts talk on
When I attended exhibitions a lot of people gave me this
Sales in India
feedback that Indians love to over-promise. Many times in
Industrial Estates in India
business they will sound very promising. However when it
Building up Manufacturing Units in India
comes to making a deal they may just back out.
more topics
Indians find it very difficult to say “no”. Therefore many a
For Face-to-Face Seminars please visit
times if the boss gives them some work, they will always
say a yes and then delay it.
www.mv-group.com

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India Insight 4th quarter 2009 | For more information look at www.mv-group.com
page 4 of 4
Investment in the
Celebrating Diwali
future: M+V will spon-
by Nirali Varma | Delhi
sor 50 young students
by Graziela Trebbels | Project Manager | D iwali is one of the grandest and most important
festivals celebrated in India and brings together
many Hindu deities.

Cologne
It is the celebration of victory of good over evil, and the glory
S
of light (“Deepavali” in Sanskrit means “row of lights”), and
eptember-December is the season for celebration,
celebrates Lord Ram’s homecoming to Ayodhya after
spirituality and gifts in India with Eid, Dusshera,
vanquishing the demon Ravana. On this day Lord Ganesha
Diwali and Christmas taking place one after another.
and Goddess Lakshmi are also worshiped for prosperity and
This year M+V has decided to organize a special seasonal gift
luck. Most people spend Diwali with family and friends,
– one that will contribute to India’s society & future.
having a small prayer ceremony at home in the evening,
M+V will be supporting CAP’s Ek Mouka program1 which
then decorating the homes with diyas (small candles) and
provides vocational training and life skills to young people
then setting off fireworks and crackers - symbolizing the
from vulnerable communities so they can become part of
victory of righteousness and the lifting of spiritual darkness.
modern Indian markets.
There is also a tradition of playing cards and gambling in the
By 2020, 90% of the 210 million unemployed people in India
fortnight leading up to Diwali. The legend being that on this
will be below the age of 30
day, Goddess Parvati played dice with her husband lord
2. Finding ways to bring skills to
these young people is critical and Ek Mouka ties up with
Shiva and she decreed that whosoever gambled on Diwali
companies and corporate houses to train young people who
night would prosper throughout the coming year.
have managed to complete school but are too poor to do
Calendar of important holidays in India:
more. Cap started Ek Mouka in 2005 and now has 106
Republic Day
26 January
Adoption of the constitution | National
training centres operating across 14 states of India and
Id-E-Milad
27 February*
Birth of Prophet Mohammed | Muslim
reaching out to 50,000 young people in any given year. 85%
Holi
16 March*
Festival of colour | Hindu
of the students they train get placed in corporations afterwards
Ram Navami
24 March*
Lord Ram’s birthday | Hindu
helping ensure that they get to quickly apply their learning.
Mahavir Jayanti
28 March*
Birth of Mahavir | Jainism
Good Friday
2 April*
Easter weekend | Christian
M+V will sponsor 50 young people this year to complete
Buddha Purnima
27 May*
Birth of Buddha | Buddhist
their Accountancy and life skills course, and M+V will also
Independence Day
15 August
Independence from UK | National
Janamashtami
2 September*
Krishna’s birthday | Hindu
host 2 graduates of this training as Account Assistants. The
Idu’l Fitr
11 September*
The end of Ramadam | Muslim
young people will come from marginalized and poor families,
Gandhi’s birthday
2 October
National holiday
but have completed secondary education. They will be
Dusshera
17 October*
Rama killed Demon Ravana | Hindu
trained during the 3-month program as Account Assistants.
Diwali
5 November*
Festival of lights | Hindu
Idu’l Zuha (Bakrid)
17 November*
Celebration of obedience to God | Muslim
Guru Nanak’s Birthday 21 November*
Sikh
Christmas Day
25 December
Birthday of Christ | Christian
1 www.capfoundation.in/vocational.asp
2 `India Labour Report 2006’, Team lease
* date for 2010 – varies with lunar calendar
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