India is a country that is rapidly undergoing changes as there have been transformations in the national economy as well as the marketplace. A reason for this change in the Indian market scenario is due to technological advancements and the competitiveness of the industry is not only within India but the within the global marketplace The internet has transformed the business scenario ensuring that anybody can make money online therefore a good internet marketing strategy is the key to a successful online business. Marketing through the Internet has enlivened the competitive scenario in the Indian market further as E-commerce has enabled services previously unimaginable, for, B2C and B2B are proving to be powerful tools. One of these innovative stratagies that have recently come into play in the Indian internet marketing scene is PPC (Pay per click) marketing.
PCC is advertising model which has taken the world by storm – it is used on search engines, advertising networks, and content websites, where advertisers only pay when a user actually clicks on an ad to visit the advertiser's website. It has a number of advantages that are required for businesses of all sizes. It only requires a small investment and the companies are not charged for advertising on the search engine until someone clicks on the ad. The sales you desire can help decide the level of investment. PCC creates space for all on the World Wide Web but careful selection must be made in choosing the right keywords. The advertisement itself should be attractive and clear enough. In India as it is such a vast country with a variety of segments it is very important to choose your target market correctly. A sharp, analytical portrait of the target market will help immensely in planning of your marketing strategy. The best part of PCC is that you receive immediate results, there is no other investment, right after your ad is aired it generates sales by itself.
Doing business in India is quite different than doing business in the other countries around the world: It is a large country, with different climatic conditions in different regions, India has a variety of languages spoken in different states, a mix of cultures, and a different pattern of social, family and personal lifestyle. India as a market place is not confined to few metros and cities but spread across urban and rural areas, its Urban & Rural market offers altogether different challenge, with great potential and offers greater opportunity to global marketers. Therefore it is important to define market place (Opportunity, Reliability, Practicality), conduct market observation and scope using market chance & risk and through evaluation of your products and services for customers in India and make proper use of national or local marketing and customer specific information according to your needs. Conducting systematic search for your buyers and channel partners and looking for possible marketing or joint venture partners with those who know the workings of the country will be useful. Winning in the Indian markets focuses primarily on innovative business strategies and decision-making as it relates to India’s consumer markets so knowledge from local businesses will increase chances of success. Many international companies have in recent years successfully competed in the indian marketplace due to partnerships with local/national companies.
Other strategies could also be used such as the porter generic strategies which are strategies based on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage. This includes strategies like cost leadership, market segmentation and market penetration. Growth strategies could also be put to use. Even though there is a lot of vertical integration, India lacks horizontal integration and diversification. Promotional advertising also needs to be given adequate attention.
The Indian system with all its potential still has inherent difficulties and uncertainties regarding its functioning. Entering India’s marketplace requires a well-designed, thought-out and well-researched plan. But despite its political uncertainty, bureaucratic hassles, shortages of power and infrastructural deficiencies it is believed to be a good investment by overseas investors. India is encouraging the entrance of foreign players and has potential for overseas expansion. This country is expected to become one of the top three emerging economies meaning is potential for long term growth and not just short term profits.
Key Economic Indicators
- India has third largest GDP in the entire continent of Asia.
- India is the fifth largest economy in the world
- Population: 1.12 billion with a retail market of $286 million
- • Breakdown: Services equal 54 percent of the GDP; industry and agriculture equal 46 percent
- • Purchasing power: In 2006, approximately 180-200 million people had growing purchasing power, thus creating a growing middle-class consumer population
- • Youth Power: Over 58 percent of the Indian population is under the age of 20.
- • Growth: Estimated 8 percent or higher in 2006-07; 7 percent in 2004-05
- • GDP: $804 billion (2006 est.)
Other Information
GDP (PPP)
$4.726 trillion (PPP) (2007 est.)$1,089.94 billion (nominal) (2007)
GDP growth
9.0% (2005/06)
GDP per capita
$820(nominal); $3,700(PPP)
GDP by sector
agriculture: 19.9%, industry: 19.3%, services: 60.7% (2006 est.)
Inflation (CPI)
5.3% (2006 est.)
Population below poverty line
25% (2002 est.)
Labour force
509.3 million (2006 est.)
Labour forceby occupation
agriculture: 60%, industry: 12%, services: 28% (2003)
Unemployment
7.8% (2006 est.)
Main industries
textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software
Exports:
$125 billion (Financial Year 2006-2007)
Export goods: textile goods, gems and jewelry, engineering goods, chemicals, leather manufactures
Main export partners:
US 18%, China 8.9%, UAE 8.4%, UK 4.7%, Hong Kong 4.2% (2005)
Imports:
$187.9 billion f.o.b. (2006 est.)
Import goods:
crude oil, machinery, gems, fertilizer, chemicals
Main import partners
China 7.2%, US 6.4%, Belgium 5.1%, Singapore 4.7%, Australia 4.2%, Germany 4.2%, UK 4.1% (2005)
Public debt
$132.1 billion (2006 est.)
Revenues
$109.4 billion (2006 est.)
Expenses
$143.8 billion; including capital expenditures of $15 billion (2006 est.)
Economic aid
recipient: $2.9 billion (FY98/99)
Age structure:
0-14 years: 31.8% (male 188,208,196/female 171,356,024) 15-64 years: 63.1% (male 366,977,821/female 346,034,565) 65 years and over: 5.1% (male 27,258,259/female 30,031,289) (2007 est.)
Median age:
total: 24.8 years male: 24.5 years female: 25.2 years (2007 est.)
Population growth rate:
1.606% (2007 est.)
Birth rate:
22.69 births/1,000 population (2007 est.)
Death rate:
6.58 deaths/1,000 population (2007 est.)
Net migration rate:
-0.05 migrant(s)/1,000 population (2007 est.)
Sex ratio:
at birth: 1.12 male(s)/female under 15 years: 1.098 male(s)/female 15-64 years: 1.061 male(s)/female 65 years and over: 0.908 male(s)/female total population: 1.064 male(s)/female (2007 est.)
Infant mortality rate:
total: 34.61 deaths/1,000 live births male: 39.42 deaths/1,000 live births female: 29.23 deaths/1,000 live births (2007 est.)
Life expectancy at birth:
total population: 68.59 years male: 66.28 years female: 71.17 years (2007 est.)
Internet hosts:
2.306 million (2007)
Internet users:
60 million (2005)
Did you know that India:
-is the world's second largest small car market
- is one of only three countries that makes its own supercomputers
- is one of six countries that launches its own satellites; one hundred of the Fortune 500 have R & D facilities in India
- has the second largest group of software developers after the U.S.
- lists 5,000 companies on the Bombay Stock Exchange; only the NYSE has more
- is the world's largest producer of milk, and second largest producer of food, including fruits and vegetables
-Has a movie making industry, Bollywood which produces the most number of movies a year, some with extremely high budgets.
(taken from website)
Market Potential
India is one of the few markets in the world which offers high prospects for growth and earning potential in practically all areas of business. Even today though,the climate in India has seen a change actively seeking foreign investment, many companies still see it as a difficult market. "India is rightfully quoted to be an incomparable country and is both frustrating and challenging at the same time. Foreign investors should be prepared to take India as it is with all of its difficulties, contradictions and challenges."
Diverse Market
The country has 17 official languages, 6 major religions, and wise ethnic diversity thus, tastes and preferences differ greatly among sections of consumers. Research firms in India provide information to determine how, when and where to enter the market. Companies which can guide the firm through the entry process from start to finish also exist.
Links to useful business and marketing magazines/sites - India
Top 10 Indian Newspapers
India internet usage as of November 17, 2006
Interesting fact - Broadband in India
"February 16, 2006 - Broadband usage in India is growing 20% per month, according to the Internet Service Providers Association of India (ISPAI). Thanks to the progress in the past two years and especially, the Broadband Policy announced a year ago, the term “broadband” has entered mass lexicon and most Internet users are aware of faster speeds
Due to high growth rate & success of existing online companies, new companies have emerged with backing of good VC funding. This has resulted in growth in demand for manpower in online industry both from small companies to large MNCs. This has particularly increased in past 3 years and tends to grow at this rate for few more years.'
Due to high growth rate & success of existing online companies, new companies have emerged with backing of good VC funding. This has resulted in growth in demand for manpower in online industry both from small companies to large MNCs. This has particularly increased in past 3 years and tends to grow at this rate for few more years.'
News - Indian women and the internet
July 7, 2004 - Women lead rural India's internet rush. The internet is beginning to have a revolutionary effect on the 700 million people who live in villages in India - and the charge is being led by women. A project set up by one of India's leading technology institutes has put women in charge of forging the way across the digital divide as the proprietors of a fast-growing number of internet cafes or kiosks around the sub-continent. In total 80% of these new kiosks are run by women, many of whom have had very little or no acquaintance with technology before
The Major categories of Companies having presence in Online Industry are:
1) Indian Online Businesses
2) Successful Indian Offline Businesses with Online Presence
3) Indian Online Agencies,
4) BPOs, Web Based Services.
5) MNC online businesses with Indian Operations
2) Successful Indian Offline Businesses with Online Presence
3) Indian Online Agencies,
4) BPOs, Web Based Services.
5) MNC online businesses with Indian Operations
In nine years from 1998 to present there has been an increase of 3.6% of the population using the internet in india. From 1,400,000 to 42,000,000 users