Market Research Aplication

8/12/2019 Market Research Aplication

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A Project Report on:

Market Research Applications

Effect of Foreign Brands On Indian Brands

MMS-2

Submitted to :

Prof Poonam Chaudhari


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DECLARATION

We hereby declare that the Initial Report entitled

datas and the facts that used in this project are true andnot fictitious. There is no objection being made

regarding the use of the facts and datas in this project.

There is no false use being made of the facts and datas

in this project. This project is developed to form a base

for classroom exercise and discussion purpose only and

not intended for identifying fault with any organization or

their policies and procedures.

This Project Is Compiled By!

"roup #embers

S$$d %$&i '()*

#oh$mm$d +$,eri '-)*

Alt$m$sh Ahmed '.(*

/$&$l #u0$li '12*

Shu$ib %h$3 '4(*

Nitesh Shetty '-.*


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Introduction

When India opened its economy to foreign competition in the early

!!"s# it was termed a phased liberalization. $overnment decided to

retain full control over certain sectors deemed sensitive by not allowing

any foreign investment. Insurance# retail# domestic airlines and

telecommunications were some of those sensitive industries that were

protected for a long time. Telecommunications and insurance were thefirst of these sectors that were gradually opened to foreign direct

investment %&'I(.

'omestic airlines followed suit in the last two years and the

resulting boom is proof enough of the future potential of that industry.

The retail sector is protected against any &'I. )ut a couple of

developments recently have created a lot of buzz in the Indian business

community.

* +uic, loo, at the Indian retail sector gives reason for such buzz.

The Indian retail mar,et is valued at -/0"" billion and is projected to

increase substantially in size over the "12 years. 3rganized retail 1 or

well established retail chains 1 accounts for only a meager -/4 billion.

The rest of the bul, is accounted for by the more than 0 million

neighborhood outlets and mom and pop shops. $iven the huge current

mar,et and the future potential# it is only natural for the retail biggies

such as Wal15art# 6arrefour and others to loo, for entry modes into theIndian mar,et.

Recently the Indian government allowed joint ventures %78( in the

retail sector where by a foreign company can set up a 78 with an Indian

company# with the Indian company being the majority shareholder in the

venture.

*s such globalization has become a corporate buzz word in

international business. )ut is all such cases# the brands have beencareful to project a unified brand image with its brand identity and brand


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personality intact. *fter all that is the underlying logic of globalization 1

standardize the brand identity and experiences across mar,ets so as to

offer customers the overall brand experience but customize the brand

communications# points of contact and personal interaction to suit the

tastes and preferences of local cultures.

Foreign Direct Investment in Retailingin India

After the waves of globalization, liberalization and privatization

marketing scenario particularly retailing has changed radically. These changes

have resulted in emergence of new environment for buyers behavior and

purchasing habits. The upper and upper middle strata of the society now prefers

to purchase well established branded goods from standard showrooms and it has

transformed the entire picture and perception not only in the metro cities but

almost in all big cities of our country. It is worth mentioning that retailing in

India has been hailed as one of the sun-rise sectors in the economy. India is the

second most attractive retail designation globally, among thirty emergent

markets.! Till now unorganized retailing sector was dominating retail trade in

India by constituting "#$ of all retailing trade but now not only traditional

Indian retailers but giant Indian retailers like %eliance has entered in the area

and is planning to e&pand its activities in this sector in a big wag. 'ven world

renowned retailing organization like (al-)art has decided to enter in India via

*oint venture with +harti and rench retailer arrefour is busy in chalking out

strategy to enter the hyper market and supermarket retail format in India

through ubai based retail ma*or /andmark group.

Why Global Retailers are Interested in India?)ore specifically the global players are interested in India due to

following reasons0

I) trategic !ocation " #eograph$0

India en*oys uni1ue geographical advantage. It is strategically located in

Asia with access to all leading markets of the (orld. (ith total area of 23,


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#4,5"6 71. 8m, oastline of 4666 8m and borders with si& countries India

becomes most promising destination for the foreign direct investment.

II) %ersatile &e'ographics:

emographically with a population of more than 9.9 billion and diverse

culture, India is a land of all seasons. India presents a real cosmopolitan

population with diverse religions and culture. :induism, +uddhism, ;ainism,

7ikhism, hristianity and Islam are the main religions of India. This variety of

religions provides India with a diverse culture. +esides, India has versatile

population of urban and rural nature. This versatility of population makes Indiaa ready made market for foreign retailers.

III) %ast gro(ing Econo'$:

3n economic front# India the largest democracy of the world# have

a stable $ovt. with robust programme of economic reforms. India with a

foreign exchange reserve of more than - /0" billion# &'I of more than

- /!.! billion #average $'9 growth of more than :; per annum# rupee

appreciation 8s -. dollar of more than 0; in last two years and with a

rapidly growing investment in infrastructure has all the ingredients of a

emerging economic super power. India is tipped to be third largest

economy in terms of $'9 by the year 0"2".

INDIA RETAIL ON THE GLOBALSTAGE CAN WE BE SUCCESSFUL

POSITI5ES /OR INDIAN CO#PANIES IN RETAIL IND6STR7:

9. :ave knowledge of the Indian )arket, which could help them a lot as

they are aware of the Indian mindset.
http://www.articlesbase.com/investing-articles/foreign-direct-investment-in-retailing-in-india-its-emergence-prospects-1354932.htmlhttp://www.articlesbase.com/investing-articles/foreign-direct-investment-in-retailing-in-india-its-emergence-prospects-1354932.html


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3. The /aws are clearly on the side of Indian pposition from small traders. They have formed their own unions and

are revolting in a huge way.2.


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2. There is a class of Indian population which has likeness to foreign brands

and will buy them with a misconception that they are of better 1uality.

=. They have the opportunity to bring in lower priced goods as they can

command over their suppliers by buying products in bulk for their global

sales.

DO8NSIDES /OR /OREI"N PLA7ERS:

9. 7tringent I /aws. urrent laws allow only 59$ I and that too for

7ingle +rands. Thus stopping them from setting up retail outlets.

3. They are comparatively new to India and the Indian conditions like vastdifferences in culture, high percentage of rural population.

2. ast geographies making it difficult for new companies to set up a pan

India presence.


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Interpretation

SexMale

Female

1.What do you prefer the most?


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2.Do you think government should allow more foreign brands in our ountry?


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%.Do you think Indian brands have the apability of meeting the standards of foreign brands?

&. Do you think foreign brands are affordable to the rih lass only?


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'. What do you think are the main reasons for the inrease of foreign brands in India?


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(. When you talk about popular foreign brands) whih ategory of the following omes first toyour mind?

*. Do you think ross+ulture exhange serves an important link in improving relations amongnations at the global level?


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,.What would you support?

1-. ording to you in whih setor foreign brands are dominating in India?


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CONCLUSION

This project gave us a wider ,nowledge about the different brands

existing in India with both foreign and Indian brands. We also came to

,now about foreign brands which are dominating Indian brands. The

topics which we had included in our project such as dominating brands#

various franchise existing in India# consumer behavior towards

international brand# retailing sector in India etc. gave us a vastinformation about the mar,et.

*nd also the primary data conducted by us gave an opinion about

the impact of foreign brands on Indian brands# consumer preference#

what should be done to stop foreign brands to dominate Indian mar,et.

*tlast we would li,e to conclude by saying that government should

do something to stop foreign brands to dominate Indian brands. *nd

also Indian brands should match the +uality standard li,e international


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brands so that people purchase Indian brands. There should be more

export then import our brands should also dominate foreign mar,et.

RECOMMENDATIONS

9. Atleast allow controlled I in the form of ;s with local players.

3. To cater to the local needs of each area and have a multiple format stores

as per the re1uirement of the region.

2. Invest in technology and supply chain management, especially in old

7torage facilities as food constitutes about B3$ of retail sales.

=.


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B. 466 million 71. t. of 1uality retail space will be re1uired by year 3696 as

compared to a supply of 366 million 71 feet creating a gap of 566 million

71. ft.

4. :ave high Cuality measures so as to keep the confidence of the retail

customers.

#. +ig retail players should participate with local 8irana stores by giving

them franchises and smaller outlets.

". Invest enough in education D training to sustain the boom and have

proper man power to handle it.

96.@iving the sector an Industry status by the @overnment.

'espite some of the negative areas of the retail boom itseems I='I* 6*= -R>?< -T*I= T@> 6359>TITI3= 3= T@>

$?3)*? T*$>.

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Market Research Aplication