We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byAlexandrea Pickney
Modified over 2 years ago
Copyright © 2008 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. What does it take to win in India Case studies of successful MNCs
2 Copyright © 2008 Accenture All Rights Reserved. Agenda India – the emerging center of gravity Must-do’s to win in India
3 Copyright © 2008 Accenture All Rights Reserved. The Global Economic Order is changing – India is an emerging center of gravity in a multi polar world. Indian healthcare segment to fetch PE funding worth US$ 500 million in three years IBEF September 15, 2008 Govt puts clinical research approvals on fast lane The Hindu 16 September 2008 India pips China in contract research & manufacturing. Financial Express 14 September 2008 Philips India to up production to meet global demand Business Standard September 10, 2008 Indian auto industry to lead globally by 2020 IBEF September 08, 2008 Daikin India AC factory to be Asia export hub The Economic Times September 06, 2008 MS India centre to focus on emerging markets Hindu Business Line August
4 Copyright © 2008 Accenture All Rights Reserved. India’s rapid growth continues to provide tremendous opportunities. Emergence of new businesses and sectors Opportunities What new offerings should one invest in and when ? A growing domestic market - emerging consumers at the top and bottom of the pyramid A hub for doing business globally India is still a relatively difficult place to do business - ranks 120 in World Bank’s ease of doing business Choosing the right business models Challenges
5 Copyright © 2008 Accenture All Rights Reserved. Agenda India – the emerging center of gravity Must-do’s to win in India Learnings for the Pharma Industry
6 Copyright © 2008 Accenture All Rights Reserved. The paradoxical peculiarities of the Indian market require the consideration of new business models Source: Accenture Analysis, IBEF, various reports 20% 260m 100k 85k Number of people living under USD1 per day in India No. of dollar millionaires in India FDI Inflows to India (USD billion) 71 5 Number of days taken to start a business 500k 425k Talent Pool availability % fresh graduates considered “Employable” 9% 50% The Top and the Bottom of the Pyramid “Open for Business” The Talent Conundrum
7 Copyright © 2008 Accenture All Rights Reserved. McDonald’s expects its Indian operations to be profitable the next fiscal, twelve years after it set shop in India Business Line Coca Cola getting its footing right after years of missteps in India Business Week Many examples show that successful global templates do not necessarily work in India. Daewoo Motors used the same plan for investment as used in China, except for minute modifications made for the Indian market. The disastrous result was the introduction of the wrong kinds of vehicles which led to Daewoo's failure in India Business Week Hollywood’s first big foray into Bollywood has been branded a flop. Sony Pictures’ Saawariya premiered in direct competition with locally produced Om Shanti Om, and grossed little more than a third of its counterpart in its first two weeks Financial Times All trademarks and logos are the property of the respective companies
8 Copyright © 2008 Accenture All Rights Reserved. Some MNCs however have already proven that India can add substantially to their global revenues and profits. MNCs in India India Revenue ($ Billion) Share of Global Revenue Nokia5.57% Suzuki3.913% Vodafone3.45% ITC / BAT3.116% Unilever3.05% Holcim2.811% LG2.46% MNCs in India India Revenue ($ Billion) Share of Global Revenue Sony1.01.1% Toyota0.80.4% Coke0.62% GSK0.41% P&G0.30.5% Sanofi- Aventis % Have achieved size and scale Still to achieve relevant scale Source: Accenture Analysis, IBEF, various reports All figures are either for Dec 2007 or Mar 2008 India GDP as a percentage of World GDP = 1.85% All trademarks and logos are the property of the respective companies
9 Copyright © 2008 Accenture All Rights Reserved. Elements of StrategySample Case Studies Explore new business models Innovate to differentiate Price it right Explore Inorganic growth (but with caution!) We believe that there are four must-do’s to win in the Indian market. Source: Accenture Analysis All trademarks and logos are the property of the respective companies
10 Copyright © 2008 Accenture All Rights Reserved. Successful MNCs have built unique business models to fully realise the Indian potential. Sample Case Studies Key learnings Wide distribution network covering 6.3 million retail outlets Project Shakti covering 100,000 villages Work backwards from customer segments rather than stick to global models Become part of the fabric of society Importance of rural penetration Using technology to target the bottom of the pyramid 90,000 distribution points in contrast to global operator driven model (40K in China) Nokia Concept Stores ‘Lab to land’: shared best practices with Indian Tobacco Farmers ITC’s eChoupal sources directly from farmers All trademarks and logos are the property of the respective companies
11 Copyright © 2008 Accenture All Rights Reserved. Product and service innovations are key to winning in the Indian marketplace. Sample Case Studies Key learnings Top 6 brands that contribute 53% of sales are Indian Customized global products and services Developing products / services specifically for Indian tastes Attention to cultural aspects Phones launched with Indian ring tones, Indian language menu / SMS Low-price made-for-India Nokia 1100 model - dust resistant with flash light Added bass and large speakers on TVs to cater to Indian preferences Committed response times for after sales service All trademarks and logos are the property of the respective companies
12 Copyright © 2008 Accenture All Rights Reserved. Strategic pricing needs to address all customer segments of the Indian market. Sample Case Studies Key learnings ‘Low unit pack’ strategy in shampoos constitute 70% of the shampoo market Introduced low priced detergent Wheel Customized pricing and pack sizes Price Innovations for target audience in urban, semi urban and rural areas. Pricing as a tool to counter competition – no white spaces Has cars at every price point – from the least cost in the market to expensive SUVs Market leader in most segments Low-priced product under different brand ‘Sampoorna’ for rural markets All trademarks and logos are the property of the respective companies
13 Copyright © 2008 Accenture All Rights Reserved. Inorganic route can be a good way to jumpstart; however a well defined business case needs to be in place. Sample Case Studies Key learnings Acquired Hutch Essar - 4th largest cellular operator in India. Immediately gained access to India’s 40 Mn subscribers - now Vodafone’s largest business by customer numbers Broaden reach with a strong distribution network & customer base Add popular local brands Open up new market segments Lower operating costs Acquired ACC & Gujarat Ambuja - became market leader with 25% market share and 15% of its global capacity Ambuja factory is one of least cost production units worldwide All trademarks and logos are the property of the respective companies
14 Copyright © 2008 Accenture All Rights Reserved. Business models in emerging markets need to define different metrics for success. High Margins Labor Productivity Mass Media Rapid Innovation High Volume Capital Efficiency Multiple Channels Durability ‘Developed’ Market Model‘Emerging’ Market Model
1 Investor Presentation November Strategy 3 Products 5 Profitability Improvements 15 Annex 21 Agenda.
Select China as an Alternative Destination Walter Fang VP of Neusoft Corporation President of Neusoft America Copyright 2009 Neusoft Corporation. All rights.
Trends in the Indian aftermarket & Distribution K R Sridhar TVS & Sons Limited Head - Distribution 1.
Opportunity in ‘poverty’ EMBA - BA 804 Ram Mudambi Temple University.
IFC 2009 Creating Opportunity. 2 Our Vision That people should have the opportunity to escape poverty and improve their lives We foster sustainable economic.
NO RISKLOW RISKHIGH RISK Fixed Deposits Govt. Securities Bonds Mutual funds Invest in any Business through FRANCHISE Route Share Trading, STARTING.
Long term growth, short term differentiation and profits from sustainable products and services A global survey of business executives.
WHY INDIA? September Quantum Advisors 2 Summary Overall, economic policy is geared towards growth India is a party to various global trade and tariff.
The Coca-Cola Company Group 5 Shirkara Jackson Siromik Jackson Monday, September 15, 2008.
Business Strategy and Policy Lecture Recap Forward Integration Forward integration involves gaining ownership or increased control over distributors.
Relevance of Marketing Concepts to Indian Companies.
Motorola China Failure of Success October 10 th 2007 Internation Trade and Competition in High Tech Jing Yuan Wei Xu Kin Wong Joseph Wofford Alex Ingles.
International Business 9e By Charles W.L. Hill McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
LOGO. Global Cold Chain Logistics Market Growth Drivers:- Increasing globalization of food industry Global efforts towards sustainable growth Increasing.
INTEGRATED SUPPLY CHAIN NETWORKS Achieving Global Competitiveness The Logistics Way The KisanBandhu: Creating a Globally Competitive Rural Growth Engine.
Fundamentals of an Investor Pitch The material in this presentation is that of the presenter and does not necessarily represent the opinions of Deloitte.
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. 5 Capacity Planning For Products and Services.
© McGraw Hill Companies, Inc., 2000 The Strategy of International Business Chapter 12.
Internet Usage in Pakistan & E-Marketing Potential Instructor: Hanniya Abid Lecture 2 E-Marketing.
Analyzing International Opportunities 12 Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall.
An Overview and Examination of the Malaysian Services Sector Lisa Alejandro Jennifer Baumert Powell Samantha Brady Pham Isaac Wohl Office of Industries,
Emerging Market Opportunities: Mobile Money in Incipient India Harold Montgomery CEO.
1 Welcome to Econ 414 International Economics Study Guide Week Five.
The Digital Insurer How Insurers Can Unlock the Digitals Potential May 1, 2014.
30-1. Cost-Revenue Analysis for Decision Making Section 1: The Decision Process Chapter 30 Section Objectives 1.Explain the basic steps in the decision-making.
© IBM Corporation Mexico: Computer Services and Competitiveness Sept Jesús E. De la Rosa IBM Mexico.
New perspectives Barcelona, 25th October 2005 European Pasta Complex In A State Of Flux III Pasta World Congress.
Body text 24pt Myriad Pro Footer 10pt Myriad Pro Header 32pt Myriad Pro Bold Company Confidential | © 2011 VNL 1 Standards and IPR issues Industry Perspective.
Survey Internal Communication trends in the Italian banking sector Mario Spatafora Simone DellOrto Milan, September 2002.
Marketing in Emerging Countries. Emerging Markets Emerging Markets refer to countries in Eastern Europe – Russia, Poland, Baltic States, China and India.
CURRENT PHARMACEUTICAL MARKETING STRATEGY M.ABHINANDANA M.PHARM Q.A.
Leveraging Structural Funds for Mobile Services Angelos Manglis President & Managing Director, Atlantis Consulting S.A. MOBIP project Coordinator.
Lecture 12 Strategies in Action. Lecture Outline Long-Term Objectives Types of Strategies Integration Strategies.
Operations Management For Competitive Advantage © The McGraw-Hill Companies, Inc., 2001 C HASE A QUILANO J ACOBS ninth edition 1 Strategic Capacity Management.
Overview of Sony Pictures Television Networks and Indian Regional Channels Opportunity Materials Presented to Sony Corporation’s Board of Directors July.
MARKETING STRATEGY 10 Crafting the Brand Positioning.
Chapter 9- slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Nine New-Product Development and Product Life-Cycle Strategies.
Business in Action 6e Bovée/Thill Product and Pricing Strategies Chapter 14.
Market in China Bologna, 2013 China Bottled Mineral Water Market MARKETING REPORT January, 2014.
Mughal Steel Capitalizing on Past To meet Future Growth.
The Dragon vs. the Elephant Comparative analysis of innovation capability in the telecommunications equipment industry in China and India Professor Sunil.
(see also Chapter 13). Sustainability is being able to endure and survive in an environment into the future.
UWSEM Investment Guidelines and Strategy Frameworks for
Franchisee Offer for those who are wellness savvy & seeking Great Business Opportunity.
The Mobile Internet Present and Future Jon White Digital Publishing Director Macmillan Education, Oxford OReilly TOC Conference February 11 th – 13 th.
Chapter Fifteen The Global Marketplace. Roadmap: Previewing the Concepts Copyright 2007, Prentice Hall, Inc Discuss how the international trade.
CONSUMER DURAB L E S. The Indian Consumer Durables Industry can be segmented into 3 Key Groups Consumer Durables White Goods Refrigerators Washing Machines.
Open Incubator Network. Index Context Concept of OIN Services Responsibility Matrix Commercial Model Benefits SRCOEM.
Merger of and November 24, Disclaimer Statements related to the prospects of the business, estimates for operating and financial results, and those.
© 2017 SlidePlayer.com Inc. All rights reserved.