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Assignment

537 words - 3 pages

QUE How an US firm may use Sales Promotion and Distribution infrastructure of an Indian firm to sell the products in India and in return the Indian firm can use the same strategy for the sale of its product in USA. (Hint – Strategic Alliance).

ANS

A Strategic Alliance is a relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations.

Market Opportunities

Best prospect sectors and business opportunities. Ranked on
the basis of estimated Indian imports from the U.S. for 2007, the
best prospects (in alphabetical order) for U.S. exports follow:
• Airport and Ground Handling
• Computers and Peripherals
• Education Services
• Electric Power Generation, Distribution and Transmission
Equipment
• Food Processing & Cold Storage Equipment
• Franchising and ...view middle of the document...

Selling to the Government
Indian government procurement practices and procedures often lack transparency and standardization, which can frustrate foreign suppliers.
Remember the scale of India and consider a Regional approach. Creating a local presence in India is strongly advised, but if your company isn’t ready to establish a branch office or a subsidiary, you can get this on-the-ground presence by appointing an agent, representative, or distributor. It’s important to remember that India is a huge and diverse country, with over 30 local languages.
Regional Approach to combat Indian diversity: Companies prefer
to appoint master licensees on a zonal basis, as India is a large geographical landmass with a diverse mix of population

Challenges:
a)Legal & Business Advise:
b) Resistance on Fees & Cap on Royalty:
c) Lack of Legal Framework:
d)Local Culture and Tastes: Understanding local culture and tastes and innovative strategies like “Indianization” of products is vital to a franchise success.

Direct Selling

Direct selling is one of the fastest growing industries in India.
According to industry reports, the direct selling industry in India is expected to report a total turnover of $807 million for fiscal year 2007 – 08 and touch $ 2.5 billion by 2012.

Trade Promotion and Advertising

Over the years, the Indian economy has moved from being a controlled, sellers’ market to a buyers’ market. In the former, whatever was produced was sold easily, and advertising was hardly necessary. The government began dismantling production controls in the mid 1980's, and opened up the economy in 1991. With these developments came increased competition, and increased advertising. According to a December 6, 2006 report in Business Standard, advertising is a $3.4 billion industry in India today.

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