International Marketing - the Cultural Environment India

NothingIntroduction

India is a country of over 1 billion nationals comprising more than one/sixth of the world's total population. India is a growing market that no organisation can ignore. "Almost every Fortune 500 company is setting up (or considering setting up) operations in India that will be integral to its global value chain" (Kumar,2009). India is one of the oldest civilizations (factbook) and boasts one of the most diverse and rich histories in the world.

The Cultural Environment

The culture of a country is often referred to as their identity; culture is formed through transmitting learned information from one generation to the next. The descriptive culture of a country includes the beliefs and expected behaviours, customs and religions of the people.

Currently India is "facing problems such as overpopulation, poverty and widespread corruption" (Central Intelligence Agency, 2010). With a current population of just over 1 billion people it is estimated that 25% of the population are living below the poverty line. Although the percentage of people living in poverty has dropped by 4.3% since the year 2000 (Ministry of Finance, 2009) it will have a major impact on the way in which the market. Another factor to consider when planning the target white goods market is that 64.3% of Indians are aged between 15 and 64 years old.

The key components to discuss in terms of how Indian culture should influence the process of creating a marketing strategy are; the language spoken, religious beliefs, attitudes of the population towards specific products, traditional manners and customs, aesthetics and education levels. (Czinkota & Ronkainen, 2010).

Language is probably the most important factor within any marketing campaign, as language relates directly to the gathering of information. If a product is not advertised and promoted in a language that is understood by the majority of the population, it is doomed for failure. (Czinkota & Ronkainen, 2010). The main language spoken in India is Hindi, although within India there are 14 other official languages spoken which are minorities. (Central Intelligence Agency, 2010) Aesthetics also links in directly with the way a product should be promoted. Aesthetics is colours and shapes that are considered attractive. Aesthetics directly affects the way a product should designed, the colour, shape and texture that would appeal to a particular culture. In India the colour red represents purity, and in Hinduism, the colour blue represents Krishna. A main concern in terms of white goods is that the colour white is affiliated with unhappiness. (Sibagraphics, 2009).