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The New Land of Opportunity

The New Land of Opportunity. By: Om Malik Presented by Mario Kempf. Current Situation In India. Malls that sell international brands Programming companies Call centers Earning $ 9,000 per year – 19 times the averiage Indian income

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The New Land of Opportunity

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  1. The New Land of Opportunity By: Om Malik Presented by Mario Kempf

  2. Current Situation In India • Malls that sell international brands • Programming companies • Call centers • Earning $ 9,000 per year – 19 times the averiage Indian income • 487 million middle-class Indians will spend an additional $420 billion during the next four years. • Spend money on well-known products/brands such as Ipods, eMacs, Tommy Hilfiger, Sony, Armani, Hugo Boss

  3. Opportunities & Risks • Opportunities: • India's economy is projected to grow 7.2 % • WTO will eliminate trade restriction on industries such as textiles and pharmaceuticals • This will boost exports and Indians will have more in their pockets to buy goods • India’s 20-34yrs population will swell to 280 million by 2006 (most important buyers segment) • Risks: • Unstable government (communists vs socialists) • 10 new governments in the last 20 years • Residents speak 17 major languages

  4. How DO You Capitalize? • Plenty of big-name companies have started moving in • U.S. exports to India surged from $4 billion in 2002 to $5 billion in 2003 • Markets (telecommunication, cars, software, micro-chips, IT) • Consider differences in language and culture within the country

  5. Value Sells • Blend of price, utility, quality & image • Example - cell phones: • Higher-priced brands dominate the market (Nokia, Samsung • Promote their color-screen camera phones as lifestyle items ($80-$550) • McDonald‘s, Levi Strauss, LG, Hyundai • Cut unit costs (Coca-Cola, Shampoo, low-priced pre-paid cards)

  6. Work Cites • http://www.cocacola.com • http://www.sony.com • http://www.nokia.com • http://www.apple.com • http://www.hyundai.co.in

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