Winning in the Indian market

In my point of view MNC that currently enters into Indian market are facing some
difficulties because of very large diversification of customer base. But this also
provide very large number of opportunities to penetrate in Indian market. Most of
the strategies are built to target top 30% of urban customers but now trend in
changing and marketers are targeting now Mass Market. Some companies argue
that there is no need to design new market strategy and they compare it with
chinas strategy of targeting top class customers. But this wont work in India
because in India top class customer base is much smaller than china. So building a
business that is in line with Indias large population and GDP, one requires to
winning the Mass Market.
Second argument that companies put forward is that they will run small and
profitable business targeted to top class customer base and wait until the mass
market to get reach enough to be a part of this class. This is very impractical
strategy because not addressing the need of these customers cause to loose these
customers forever and someone else will acquire these customers.
According to me There is one interesting way for companies to establish dominant
position in Mass Market. There are Three big factor to penetrate in Indian mass
market
1. Creating Blockbuster relevance: - defining a business arena relevant to the
aspirations and problems of most Indians. Core of new India is about
education, entertainment, healthcare, productivity improvement, and so on.
For example, waiting for electricity to reach in rural area is not the answer.
But, address the needs of light by providing LED, Solar lights and using neon
technology capability to solve these problem would defiantly help business.
2. Creating a perceived value advantage: - Target those customers who have
modest income but are not backward in their aspirations, especially in such
environment where innovative direct and indirect competition exist.
3. Getting the Business economic rights: - it is important to keep in mind that
India has (a) different demand structure (b) customer base that excepts high
return at low cost (c) ecosystem where all element are not equally develop.
I infer from passage that MNCs are most reluctant to adopt mass market because
they believe that all market will emerge at some stage to become like US market.
According to writer there are implicit paradigm in mind of MNCs strategist that
developing and low income market require less complex strategy than rich and
developed market. How ever, India market does not fit into this equation because
fundamental characteristic of indian market is its plurality. Although it is poor but
some group are very different in their thinking, future evolution and customer
sophistication. So there is no one segment of market that is deep enough to provide
a enough value to make business financially vibrant.

One of the biggest business battles fought between MNC head offices in US or
Europe and local manager in India. Beause local managers are keen to target global
competences and resources that exist in developed market but head office believe
that whatever is avalible is on shelves is good enough for developing market.