MARKETING STRATEGIES OF GLOBAL BRANDS IN INDIAN MARKETS
Dr. Girish Taneja, Associate Professor, Head of Department, School of Business, Faculty of Business & Applied Arts, Lovely Professional University, Phagwara, Punjab, India Neeraj Gupta, Lecturer, School of Business, Faculty of Business & Applied Arts, Lovely Professional University, Phagwara, Punjab, India. Rajan Girdhar, Research Fellow, Faculty of Business & applied Arts, Lovely Professional University, Phagwara, Punjab, India.
ABSTRACT With increasing globalization and international trade, a number of international brands are entering into India which is one of the fastest growing and highly competitive markets in the world. Though, most of the global firms failed to understand the needs of Indian consumers as well as the market characteristics but there are a few of them who have been successful in positioning their brands into the Indian market because they attempt to understand well the needs of target group before introducing a brand into the market. Even some of the most successful brands in today’s time had committed several blunders or mistake while initially entering into Indian market. For instance, Kellogg’s, McDonald’s, LG, Reebok and Coca-Cola are among such global brands who initially introduced standard products by following standardized global strategies but later realized their mistakes and thus modified their product or services according to the needs of Indian consumers and became successful. This research is an attempt to investigate why some international brands, that are successful globally, fail to attract significant market share in India. Keywords: Globalization, Global brands, Indian market, International marketing.
International Refereed Research Journal ■ www.researchersworld.com ■ Vol.– III, Issue –3(3),July 2012 
-Journal of Arts, Science & Commerce ■ E-ISSN 2229-4686 ■ ISSN 2231-4172
INTRODUCTION: When the Indian markets were opened to the world after the complete overhaul of the policies related to the entry of Multi National Corporations (MNCs) in India, most of the global brands started entering into the Indian markets. India is among the largest markets of the world in terms of its sheer size along with China which together account for 37 percent of the overall world population . Having the huge potential, India is one of the most promising and progressively growing economies in the world. Followed by China, it has a large consumer base backed by the huge populations having a considerable amount of spending power. Though, a large number of Global brands have entered Indian markets, but not all were able to crack the success mantra for the mysterious, complex and a diversified market where the tastes and preferences of customers change after a few kilometers to the either side of the market. Indian market is so complex because of the large number of cultures, religions, diverse levels of income of the people. Moreover, a wide rural and urban divide creates another challenge in front of companies while establishing effective distribution network. Given the huge diversity of people and challenges related to distribution, the Global firms need to adapt to the local market conditions in order to attract the customers towards their brands. Despite huge potential, a number of MNCs have not been able to reach the levels of success that they have either enjoyed in their home markets or the markets world over. These global brands upon their entry in the Indian markets used the most successful of their companies’ strategies the world over, but these strategies failed in the Indian market because of which these MNC’s sometimes incur huge losses. According to Choudhary et al. (2012), the MNCs can try and use a three steps approach to succeed in the Indian market – (a) organize its business structure for Indian market; (b) customize their offerings...