Tasks to be handled by Individual Companies — Global Marketing

In this article we are deliberating at the issues that have to be tackled by individual companies of India for successful marketing of their products in the International markets.

Selecting the entry route:

Starting with the fundamentals of international marketing a firm has to decide entry route because business firms can enter global markets through different routes.

Of these, licensing of know how is of relatively low relevance to Indian firms at present because of the low technology base of the country. There are also other routes to enter global markets.

The Export route:

It can be seen that export is the primary route for entering global markets. A majority of the Indian firms engaged in international business stay with this primary route. However, even here, the performance is nowhere near the desired level. It is essential that the pursuit becomes systematic with more thought given to India’s national competitive advantage and the distinctive competence of the individual firms.

Product-market strategy for exports: A carefully conceived product strategy is a must if the export efforts have to succeed. Indian firms have to identify specific product market combinations. Trying to export anything and everything to any part of the globe where a momentary demand exists will not bring durable results. Indian firms have to ensure selectivity in export efforts. In fact, they must adopt selectivity as an in-built part of their product-market strategy for exports. Selectivity in markets and selectivity in products must be the guiding principles.

Selectivity in markets: Where to export is fundamental part of the product-market strategy Indian firms have o apply some selectivity in this respect. The Federation of Indian Chambers of commerce and Industries (FICCI) has examined this aspect in some detail and has pointed out that by a slight increase in her shares in 10 select countries – the US, Russia , Japan, the UK, West Germany , Saudi Arabia, the UAE , Italy, France and Belgium – India could double her exports to these countries. For example, a mere 0.2 percent increase in the present share of Indian exports in the case of the US and 0.5 percent in the case of Russia would enable India to double her exports to them. And a few selected African countries could perhaps complete the list. After chalking out such a selective approach to the markets, Indian companies must make every effort to cultivate those markets and get entrenched in them though a proper marketing strategy.

Selectivity in products: What to export is an equally fundamental part of the product market strategy. It is obvious that Indian firms cannot seek to export all the products they make or all products that are available in India. They have to be selective. The products for exports have to be chosen very carefully. Products with high potential have to be identified.

Thrust products for export: The government has identified a large number of products as high focus export items: farm products like rice, tea, fresh fruits, tomato paste, tropical fruit juices, pulp and concentrates, preserved mushrooms, floriculture, marine products , spices alcohol, sugar, molasses, drugs and pharmaceuticals, dyes and intermediates, textiles and ready-made garments, leather and footwear, gems and jewelry, IT/computer software, bicycles, cement, tires, capital goods like electric Power generation and distribution equipment, Sugar machinery, Industrial castings and Auto components.

In fact, the government intends to introduce a ‘country product focus’ in its export promotion drive, which is likely to cover 15-nations and 15 products and 15 products accounting for 75 percent of Indian exports.

In 2007-08 Indian exports have met with more success in entry to global markets with increase in market share of textiles and even high technology items like intricate automobile forgings in addition to ever increasing IT/software services exports. For the software services even small proprietary firms with a team of 4 to 5 talented personnel are also contributing to the global markets.