Marketing Strategies of Nestle and Unilever
CHAPTER - ONE
Conceptual framework and basic issues
1.1 INTRODUCTION India is one of the largest economies in the world in terms of purchasing power and is among the fastest-growing, with a population of around 1.12 billion people, with huge natural resources, and with costs that are at the very low end of the global average. All major consumer companies of India have sophisticated marketing and product development plans. Moreover, the multinationals that are operating in India have business models that are tailor-made to local markets and customs.
After the economic liberalization of 1991, many MNCs have entered India. Today, global companies having subsidiaries in India include Unilever, Nestle, BATA, Colgate Palmolive, Procter & Gamble, General Electric, General Motors, Ford, Pepsi and Coca-Cola.
Historically, the main reason for the entry of MNCs into India was to jump the tariff wall. High import duties ruled out the option of exporting finished goods from the home country to India. On the other hand, once they entered the country and set up operations, the country’s high tariffs guaranteed adequate protection. In some cases, the need to customize products necessitated a strong local presence. The multinational companies in India represent a diversified portfolio of companies from different countries. There are a number of reasons why the multinational companies are coming down to India. India has got a huge market. It has also got one of the fastest growing economies in the world. Besides, the policy of the government towards FDI has also played a major role in attracting the multinational companies in India.
While several MNC’s have entered India, However, even within a given industry, some MNCs seem to be doing better than the others. Consider the automobile industry. Here, Suzuki and Hyundai are way ahead of formidable rivals such as General Motors, Honda and Ford. Similarly in the FMCG sector, even after allowing for its
Conceptual framework and basic issues
1.1 INTRODUCTION India is one of the largest economies in the world in terms of purchasing power and is among the fastest-growing, with a population of around 1.12 billion people, with huge natural resources, and with costs that are at the very low end of the global average. All major consumer companies of India have sophisticated marketing and product development plans. Moreover, the multinationals that are operating in India have business models that are tailor-made to local markets and customs.
After the economic liberalization of 1991, many MNCs have entered India. Today, global companies having subsidiaries in India include Unilever, Nestle, BATA, Colgate Palmolive, Procter & Gamble, General Electric, General Motors, Ford, Pepsi and Coca-Cola.
Historically, the main reason for the entry of MNCs into India was to jump the tariff wall. High import duties ruled out the option of exporting finished goods from the home country to India. On the other hand, once they entered the country and set up operations, the country’s high tariffs guaranteed adequate protection. In some cases, the need to customize products necessitated a strong local presence. The multinational companies in India represent a diversified portfolio of companies from different countries. There are a number of reasons why the multinational companies are coming down to India. India has got a huge market. It has also got one of the fastest growing economies in the world. Besides, the policy of the government towards FDI has also played a major role in attracting the multinational companies in India.
While several MNC’s have entered India, However, even within a given industry, some MNCs seem to be doing better than the others. Consider the automobile industry. Here, Suzuki and Hyundai are way ahead of formidable rivals such as General Motors, Honda and Ford. Similarly in the FMCG sector, even after allowing for its