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Theo’s Adventure Capitalists analysis
India 'hich is no' considered a (ast)&ro'in& economy
represents a truly attractive
*usiness opportunity (or entrepreneurs round the
&lo*e+ This time three ,- companies ta%e
the ris% to introduce their products into the Indian mar%et.
under the supervision o( Theo
Paphitis. the host and advisor o( the T/ sho'+
India reaches a population o( 1+ *illion+ Its ross)omestic
Product is 34+5 trillion
and 3+7 per capita+ The unemployment rate is +68 and the
"orei&n irect Investment is
appro9imately 35+5 *illion+ This country has had important
advances in terms o( trade
(reedom. despite o( its particular culture many (orei&n
(irms are investin& on ne' *usinesses
there+ :The #erita&e "oundation. 2016;
Ta%in& a loo% the three ,- companies< =remont.
>e&enatec and Marmite? all o( them
pursue a similar &oal< ma%e a pro(it in this
hi&hly populated mar%et+ The enthusiasm o( each
entrepreneur is easily percepti*le *ut 'hen comes to *usinesses.
more than e9citement is
needed+ These companies are really &ood e9amples o( the
importance to not @ust research the
mar%et *ut really understand and &et closer to it+
=remont is a lu9ury 'atches company 'hich tar&eted
millionaire Indian se&ment+ The
company’s entrepreneurs visited 'atch)specialied shops and (ound
that the products on sale
in there 'ere really di((erent to 'hat they had on mind+ They
also (ound out the tari((s
reached almost 78 and there 'ere additional ta9es they had to
deal 'ith+ Bot enou&h 'ith
all o( this. they 'ere told Indians al'ays e9pected discounts in
'atch purchases+ It 'as more
than evident that this *usiness 'ould never 'or% in this mar%et.
it 'as almost impossi*le to
&et a pro(it o( it+
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Mean'hile the &uys (rom >e&natec (aced a real
challen&e as their product needed
repurposed ve&eta*le oil to 'or%. and this couldn’t *e (ound
any'here in India+ This
company *usiness consisted on reprocess the diesel to turn it
into a &reen com*usti*le *ut
'hat they didn’t consider to start up the *usiness in this
mar%et is the lac% o( ra' materials
around the country+ Another missed consideration 'as the 208 add
the customers 'ould have
to pay @ust to &o &reenD+ The *usiness idea 'as
(antastic indeed (rom the eco(riendly point o(
vie' *ut these entrepreneurs must’ve realied the country
characteristics and idiosyncrasy
'ouldn’t allo' them to succeed in this mar%et. at least no
no'+
Then Marmite 'as the other *rand tryin& to introduce a
particular product 'hose
slo&an is love it or hate itD into Indian mar%et+ The head
o( the Marmite pro@ect (irst started
&ivin& a'ay the product in sand'iches so the people in
the street could &ive their (eed*ac%
a*out it. soon the researchers realied the *est method to
understand customer pre(erences
'as not in the streets *ut in mothers+ Thus they per(ormed a
(ocus &roup 'ith Indian mothers
and the results 'ere encoura&in& as they thou&ht o(
Marmite as a product very healthy (or
their children+
( all three *usinesses. only Marmite could ma%e it into the
Indian mar%et despite o(
people at the *e&innin& 'as reluctant to'ards the
product+ In these cases Theo &ives
important lessons a*out understandin& mar%ets and one o(
them is to research properly the
country’s idiosyncrasy *e(ore start investin& on it+ :==C.
2010;
References
==C :irecciFn;+ :2010;+ Theo's Adventure Capitalists in
India GPel$culaH+
The #erita&e "oundation+ :2016;+ 2016 Index Economic
Freedom+ >ecuperado el 17 de May
de 2016. de http
