Question

Title: British Business Opportunities in India 1

Abstract: This video explores the opportunities in India for British firms and discusses the advantages and disadvantages of doing business in India.

British Business Opportunities in India - 5:03

Key Concepts: foreign market entry, exporting, culture, international strategy, globalization, international marketing

Notes: Business is booming for one British frozen food maker. The company, which makes samosas and pork pies among other things, sells its products in the United Kingdom and across Europe, and has just started exporting to India as well. Ironically, the British based company is rapidly filling orders from India for samosas which are a type of little pie commonly eaten in India. According to the managing director of the company, the chance to sell Indian food to India came up quite by chance. The firm was approached by a group seeking to meet demand for food exports from Britain.

It may seem surprising that there is demand for British food products in India, however, as the managing director points out, many Indians today travel abroad either for work or to continue their education, and they have the opportunity to sample new things. Once they get home, they want to continue to consume those products. The managing director believes that the opportunities to do business right in India are huge – and are available to firms across a wide spectrum of industries. He claims that products made in England have a particular advantage in India because British-made products are perceived by Indians as being very high quality. Therefore, products made in England command premium prices.

Entering the India market can be challenging though. The managing director of the food company notes that the bureaucracy can be overwhelming. He believes the best way to get around the red tape is to form a joint venture or other type of partnership with a local company. Because the locals know the market, they also know how to deal with bureaucracy.

Discussion Questions: In addition to the video and abstract provided, find current event topics to address the following questions. Questions may be answered as numbered. Points will be deducted for responses lacking external resources.

Comment on the irony of a British company exporting Indian food to India. How can the company still make a profit?

As the head of a British company exporting food products to India, what cultural issues do you need to be aware of? Is exporting food different from exporting other products like cars?

Products made in England command a premium price in India. Explain why this situation might exist. How are a nation’s historical ties reflected in a country’s culture?

The managing director of the food company in the video notes that the best way to do business in India is to partner with a local company. What does he mean?

Answer 1

Answer:1 India is globally known for its mouth watering cuisines and dishes.The Britishers have ruled India for a very long period and there has been significant cross cultural adoptation including food habits. Post the era of Indian independence many Indians or Indian origin individuals have settled in UK and are fully aware of the demand for Indian recipes.Generally those food stuffs should be in demand /exported to india which are not readily available in Indian markets. Samosa being a very commonplace dish/cuisine in India and being highly available in Indian markets is not likely to be a good candidate for food export to India. However the pereption of UK samosas being of superior quality , taste and composition might have boosted demand in India and have made it an ideal candidate for food item export.In order to make profit the company should deploy the strategy of product differentiation rather than cost leadership in order to compete with the locally made samosas which come in local variants of flavours and composition. They should also partner with local distributors and e -commerce portals to make the samosa reach the retail shelves in India in order to compete effectively with the local players in India.They should position the prodct as healthy ,low calorie food which is also satiating to the taste bud against locally made samosas which are high in calorie intake and are prepared in not so hygeinic conditions and are available to customers without any quality checks.They should focus on their customer as urban population segments mostly in tier 1 cities and the high end restaurants and eateries.

Answer 2: The cultural issues that need to be taken cognizance of includes:

- Resistance of a section of Indians towards acceptance of foreign made goods

-Preference for local brands and makes as they are more close to the heart

-Sentiments of the people associated with special cusines like Samosa

-Mindset of Indians that frozen/preserved food are not as good as the freshly made ones available in local market

-Price sensitivity embedded in local culture

Exporting food is different from exporting car because food is a perishable product and needs to be preserved.This is complicated by the absence of proper intransit cold storages, refrigerated warehouses. Imposition of strict labelling requirements, stringent quality checks, red tapism ,bureucracy and resistance from local mom and pop stores, price barriers and complex tax regimes

Answer 3: Product made in England might demand a premium in India because of the preconceived notion that highest standards of qualities are deployed in foreign food and drinks industry which is apparently missing in India and that the exported food product has passed several layers of quality checks. With the increasing trend of healthy lifesytle Indians are more conscious and prefer consuming low calorie and quality food products.(foreign labelled brands being considered as highly reliable in terms of quality ,hygiene and calorie intake).

Since UK and India has a strong relationship and association by the virtue of british rule in india,both the countries have a close cultural tie. Several food habits have been accepted and adopted by both the sides. Many indians visit UK every year for education,business ,employment etc and many individuals of Indian origin have already settled in UK.The common food habits , apetite for common cuisines strongly reflect the historical ties

Answer 4: It means it is very difficult to operate in India as a forein entity. Operatinig as a standalone foreign entity they have to face multiple challenges ranging from red tapism, bureucratic intervention, local resistance, import and expport tax issues, labelling requirements, quality checks etc. However tieing up with a local partner will enable them to easliy have an acceptance to the Indian markets and can leverage local contacts to penetrate the distribution channels. Local partners would also help them to better understand the local culture and customization required culminating into product differentiation and buy in from local customers. Local partners would also come handy in dealing with bureucracy and government agencies. Local tie ups can also help them in setting up porduction,packing facilities in India itself.