Charles Dassance

Kelly NevinsJames RajotteJohn Sardelli

LEAD 502Leadersh ip

Communicat ionsR o g e r W i l l i a m s

U n i v e r s i t y

APPLICATION 8.4

INTEGRATING WESTERN SUPERMARKETS INTO THE CULTURE OF INDIA

FROM LEADERSHIP COMMUNICATIONS

INTRODUCING INDIA AND ITS CULTURAL CONSIDERATIONS

World’s largest democracy of 1.2 billion people

Business and personal culture Collectivists dedicated to community, family, and nation

Sub-cultures based on generations Traditionalists dedicated to nation, family, and community Baby boomers focused on conformity and economics Generation X invested in economic opportunity Generation Y empowered by diversity and

globalization

Forbes Global 2000 rankings 34 companies from India Liberalization and reform policies boost economic growth

SUPERMARKET NEEDS ASSESSMENT

AND MARKET ANALYSISDelhi economy $28.15 billion

95% of retail market is made up of small, family run stores

National Capital Reign has 25 malls Maharashtra, Goa and Gujarat has 40% of organized retail space

India’s consuming class is approximately 160 million people Annual incomes of $6,800 (368,9676.50 Rupee) and above

Affl uent market comprised of 3.4% of all households Annual income of $9214.90 (500,000 Rupee) and above

Generation X and Y is focus of those who will embrace western culture and markets

Low prices every day (no sales or coupons)

Few brand names with focus on Trader Joe’s private label foods

No artifi cial fl avors/colors/preservatives/GMOs or trans fats

Focus on customer service Take customers to food; let them try new foods out

Pay employees at least median household income for area and give part-time employees benefi ts

A trip to Trader Joe’s is a culinary

adventure.

THE TRADER JOE’S MODEL

Go Local Trader Joe’s sources many of its goods locally to keep

costs low

A focus on how healthy foods are, from ‘superfoods’ like blueberries to natural foods without preservatives and foods with good amino acids like fish Trader Joe’s private labeled food use no artificial

colors/flavors or preservatives and no trans fats Seafood is sustainably resourced (healthy to eat and

healthy for the planet)

The rise in popularity of “gluten-free” foods Trader Joe’s labels its foods with simple symbols for

different lifestyles, including Gluten-Free, Vegan and Vegetarian

HOW TRADER JOE’S ADDRESSES INDIAN FOOD TRENDS

Using spices instead of oil Trader Joe’s offers a selection of fresh spices for everyday needs

Growth in alcohol sales Since India today has relatively low consumption of alcohol, this is

definitely a growth area as social mores are changing Trader Joe’s offers quality, low cost wines such as “Two Buck Chuck”

Trader Joe’s off ers a convenient, low cost food provider which: Focuses on healthy selection of foods Helps consumer care for their family Provides a variety of international foods that everyone will love

Each trip to the store is a culinary adventure and is a “fusion” experience between cultures

Offers good paying jobs and a lively atmosphere in which to work Paying at least the median household income where each store is

located

HOW TRADER JOE’S ADDRESSES INDIAN FOOD TRENDS (CONTINUED)

COMPETITION AND RESOURCE CONSIDERATIONS

51% of products off ered through Trader Joe’s in India must be produced in India Strategic model is to source locally

Need to diff erentiate Trader Joe’s from the large, new grocery chains entering the market These include companies such as Walmart and Tesco Strategic model is to limit stock to specialty products at low

prices

Indian culture focuses on family As a result, people often buy only what they can’t make at home Marketing plan should focus on unique aspects of Trader Joe’s foods,

such as probiotics in yogurt or ultra-convenience

Local ‘mom-and-pop stores’ off er personalized service Trader Joe’s employees need to know and respond to customer needs

CROSS-CULTURAL COMMUNICATION STRATEGY

28 States, >14 languages, >300 dialects Most spoken languages are Hindi and English English is primary medium of communication

Observed to be curious by nature Develop a sense of wonder to enhance openings Use “Coming Soon” billboards and signs

Audio/visual: Begin commercials with friendly small talk Stress locally owned stores Attire must be men in suit and tie, women in conservative dress No leather products such as belts or handbags Hindu audience advertise no beef Muslim audience advertise no pork Visuals with limited verbal or written communication

Follow cultural etiquette and protocols

USING SOCIAL MEDIA TO COMMUNICATE CROSS-CULTURAL

MESSAGESEstimated 66 million internet users by June 2013

74% active internet users use social media Facebook (97%), Google+, and LinkedIn are the top three

Smartphones and mobile internet usage on the rise In world’s top three growing marketplaces Demographically young population of users

75% online audience is between the age of 15-34

Strategic Social Media Communication Plan: Trader Joe’s Facebook page, Twitter, and Blog

Advertisement with Facebook Localize content for target audience

SUMMARY OF PROPOSAL AND ASSOCIATED CHALLENGES

Strength in opportunities Generation Y empowered by diversity and globalization 95% of retail market is made up of small, family run stores A trip to Trader Joe’s is a culinary adventure Trader Joe’s sources many of its goods locally to keep costs low Paying at least the median household income where each store

is located Strategic model is to limit stock to specialty products at low

prices Observed to be curious by nature 74% active internet users use social media

Given what we have discussed in class about the variables resulting in diff erences in culture and this presentation, what specifi c challenges, if any, might one expect based on the opportunities listed above?

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?THANK YOU