Marketing Analysis of the Indian Business Environment

This assignment delves into a PEST analysis of the Indian business environment, examining the key political, economic, social, and technological factors shaping marketing strategies within the country. It aims to identify both the opportunities and challenges presented by these factors, providing insights into the suitability of the Indian market for businesses.

INTERNATIONAL
MARKETING MANAGEMENT

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TABLE OF CONTENTS
INTRODUCTION.................................................................................................................................... 3
INTRODUCTION TO COMPANY AND ITS CORE VALUES.............................3
Geert-Hofsteds Cultural dimentions.....................................................................................4
Brand position........................................................................................................................... 11
Brand strategy........................................................................................................................... 12
CONCLUSION....................................................................................................................................... 12
REFERENCES....................................................................................................................................... 14
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INTRODUCTION
In recent times fashion industry has grown all over the world, bringing up new
innovative technologies and increasing product range (Jobber & Chadwick; 2013).
Day by day new brands are coming and the competition in garments sector is very
high. It is not only growing only in western world but also in other parts of the world
especially in south Asia. Pakistan is one the emerging market in garments/fashion
industry in south Asia and the competition in garments sector is very high. Junaid
Jamshed (j.), HSY and Depak parwani are the big names in Pakistan’s fashion
industry.
INTRODUCTION TO COMPANY AND ITS CORE VALUES
Junaid jamshed (J.) (J dot) was established in the year 2002 with having a
single store in Karachi, Pakistan. Currently, the cited firm is having around more than
50 outlets in Pakistan and also, 2 in United Kingdom i.e. in London and Birmingham.
Moreover, some of the other stores exist in United Arab Emirates (UAE) as well.
Junaid Jamshed has now started to build their credibility, market share and goodwill
with developing the best designs in clothing segment for both men and women. They
are strongly involving in other categories as well i.e. for children and for bridal. Cited
firm focuses on building high image within society and focuses on fostering growth
and development of nation as well.
Core values of the cited firm are their products, customers and organisation of
its own. Venture keeps its cultural values and traditional ethos both internally as well
as externally. Their mission statement also states that the main idea of launching J.
was to reintroduce traditional apparels in Pakistan with a small blend of modernity.
Considering this purpose, managers started working on Eastern dresses more
specifically on Qameez Shalwar (Junaid Jamshed., 2016). The experiment which is
done by the enterprise has resulted into increased interest of people toward modified
Eastern ensembles. With this, firm has also extended their market share and brand
image whole around the globe.
Brand personality
J. can be defined as a fashion retail brand in Pakistan which is rich, elegant
and stylish as per traditional point of view. Further, for the unique and flamboyant

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designs for men and women, cited venture usually trust their manufacturing team who
are very much skilled and talented. Further, the employees who are part of J. are from
best fashion institutes and are also best in their work (De Mooij, 2010). Mentioned
organisation first focuses on studying the latest trends and then emphasizes on
carrying out specific research on trends which can be adopted by choosing varied
colours, styles and background. Furthermore, for men, they produce both formal and
casual designs which are liked by customers in every season. They start it by studying
the latest trends, carrying out research on the way in which these trends can be
adopted as well as by selecting the colours and styles that can make the collection
extraordinary and then, through finalizing both casual and formal designs for every
season.
Geert-Hofsteds Cultural dimentions
Professor Geert Hofstede has conducted a comprehensive study on the way in
which values in organisation are affected by the culture. Culture from founder’s point
of view has been defined as a collective bargaining programming which distinguishes
the members of one group of category with another. Here, individual perception plays
a crucial role and organisation has to consider the same in an effective manner (Geert-
hofstede., 2016). Further, for finding the national culture, it is necessary to make
comparison with different factors and in order to make this analysis clear, difference
of two countries has been taken into consideration which are India and Bangladesh.
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Source of Picture: https://geert-hofstede.com/india.html
If comparison of both countries on the basis of Geert-hofsteds is made, then it
is found that there exist no big cultural difference between these countries. The only
major difference which is found and witnessed is in the form of individualism as well
as uncertainty avoidance. Moreover, it is also found that people in India take decision
of their own and they do not consider other’s opinion at the time of making decisions.
However, in Bangladesh, people are generally much more collectivists and have a
perception in mind that their decision can make impact on others as well.
Moreover, it is also found that with having large population, there is a major
segment and mass of population who needs change and up gradation time to time.
People want new products in the form of design, contrast, texture and colour.
However, in Bangladesh, people avoid change and they focus on setting down the old
products which give them a lot of comfort. Further, they usually use the product till
the time they do not face any sort of major problems with it.
PEST Analysis
Political factors
Bangladesh:
Political structure of Bangladesh is democratic but there exist political unrest
in nation which majorly influence national and international trade/business. Further,
from research, it is also found that certain disputes occur daily in Bangladesh and due
to this, their trade with other nations get affected (Malik & Hussain, 2009). Each and
every day, new political problems arise which influence their day to day operations.
Considering this, foreign investors does not like to invest in the ventures of
Bangladesh.
India
India is one of the most political stable nations around the world which usually
attract tourists as well as different international bodies to invest in the country in order
to make operations successful. Initiatives taken by Narendra Modi in the form of
“Make in India” and “Digital India” has attracted more investors to invest in the cited
nation. Further, these political factors have a huge influence on the regulation of
future market within country (Nishat & Mustafa; 2002). Since the market is relatively
new, local body looks with full interest regarding the major changes that they can
bring. Further, capital market of the cited nation is much more vulnerable. However,

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from research, it is found that the political market of nation was quite unrested few
decades before but right now, it is on the right flow.
Apart from it, inflow and outflow of currency also depends upon the political
and economic condition which is prevailing in the nation. With so much fluctuation in
the capital market, it has put some negative impact on the perception of investors to
invest in the nation.
Economic factors
Bangladesh
If economy in both countries is seen, then it will be clear that the economic
condition in both the nations is sound and certainly they are making a good progress.
In Bangladesh, GDP is estimated around 6.13 % in the year 2016. With this,
investment has grown in the nation and broke all previous records in order to reach
the economic goals (Matthews, 2008).
India
India is seen as a paradise for the investors because it is one of the world’s
highest growing economies and a part of many business forums like BRICK and
SARC. Moreover, GDP of nation is expected to be around 7.20 % for the year 2016
and with this high investment, country will see many new investors who will
contribute their capital in the growth and development of nation. If both countries will
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Illustration 1: PEST analysis

be compared, it will be assessed that India is considered more favourite for investors
than Bangladesh when they look at the economic conditions of both nations.
Social factors
Bangladesh
Social factors in Bangladesh consists of traditions, ritual practices, religion
and moral standards. Nation is a conservative Muslim country where individuals
mostly believe in social values. However, the trend is changing now and people are
getting more westernised (Hill, 2013). Along with this, their perception and thinking
is also changing
India
Social factors for India has changed a lot and with this, trends of people have
changed many things. India is considered as a country of social diversities which has
different sub-cultures, languages, customs, religions, castes, etc. In India, people of
both mentality can be seen and generally, they are collectivist and also individualist..
Major change in the product or service is done because of increasing needs and
demands of young generation as compared to that of old people (Lane & Ersson,
2007).
Technological factors
Technology is upgrading on constant basis and with this, organisation has to
adopt the latest techniques so that they can compete with the different ventures who
are working in the same industry. Technology generally reduces the cost, improves
quality and lead towards certain innovation.
Bangladesh
It is found that cited nation lacks in technology and they are in need of faster
technological development. As technology is one of the biggest factors, some of the
major equipment are usually imported from the neighbour countries. However, many
ventures deal with the outdated technology and with this, production is not going up
to a certain level.
India
Development in technology is generally improving the product and with this,
firm is able to satisfy the needs and demands of customers in an effective manner. In

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India, technology is upgrading rapidly and new techniques are coming day by day
which is helping all businesses and companies to improve their business operations.
SWOT Analysis
India
Strengths
 World 5th largest consumer: With wide population, firm will be able to
promote their product and also, can expand their market share and
productivity.
 Cultural similarities: There are many Muslims living in India and
considering this fact, firm will be able to excel the sale of their products.
 Low cost skilled worker: Labour in India is available at cheap rate which will
help the organisation to increase its production at less cost.
 Fashion knowledge: People in India are conscious regarding new trends
which are prevailing and thus, it is important for firm to give the best product
at reasonable price (Malik & Hussain; 2009).
Weaknesses
 Already set market: There might be chances that India will not choose the
brand which is coming because there exist many well settled brand which will
affect their performance up to a high extent.
 Trust: Trust of individuals will also play a crucial role because quality is a
major concern for the people and they are stuck to a specific brand only which
they are preferring since a long time period.
Opportunities
 Size of market: As India is having a large market size, thus, it is opportunity
available for J to increase their market share.
 Government incentives: Government also supports foreign firms to expand
their product line in order to stabilise growth and revenue within nation.
Threats
 Faces stiff competition from ventures like Competition Ravishop, Anaish,
Khwaa, etc.
 Political tensions between India and Pakistan is a major concern because it is
not promoting that much of individual relations.
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Bangladesh
Strengths
 Market is growing with rapid concern so, there is high chances that cited firm
will be able to improve their brand image and market share.
 As Pakistan and Bangladesh has cultural similarities, this will help the firm to
make a large customer base in initial time period only (De Mooij, 2010).
Weaknesses
 Government policies is a major concern as strict norms and regulations have
been imposed.
 Tax law is also a problem as high rate of taxes have been enforced.
Opportunities
 Big markets with small competition will help J. organisation to increase their
market share and customer base.
 Same cultural festivals will lead to the sale of bridal as well as local outfits for
J. which can be seen as an opportunity.
Treats
 Environmental issues is a major concern because surroundings are highly
affected because of waste so excreted at the time of production.
 Competition is there with ventures like Arong, Xtcy, etc.
After making specific research with both India and Bangladesh, it is found that
India will be the better choice and with their unique products, they will try to
capitalise and make market share with starting time period only. Further, there exist
few differences between culture, tradition and festivals. There are many fiestas which
are common in both the countries. Moreover, India is a big market and the chance of
growth is quite high when compared with Bangladesh. Further, government of India
also supports the venture to invest capital as well as explore new things so that
customers would get the best product.
Moreover, culture of any society deals with basic elements and these include
culture, language, social norms, values, attitude and belief system which are mostly
practised by the individuals of a given society (Lane and Ersson, 2007). Apart from
that, being one big country in the past, India shares some similar cultures with
Pakistan but still for a business to enter India now, there are various formalities and
procedures which need to be taken into consideration. With more than 50 languages

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spoken in India, Hindi is mostly spoken. So, it is considered as an official language of
India. Further, population of India is above 125 crores and 60% of its population is
aged between 15 to 60 years. This states that Indian people give importance to
education and have complete knowledge regarding the modern concept which is being
followed within country. Main festivals which are celebrated in India are Holi, Diwali
and Eid. People wear new clothes on these days which is a golden time for apparel
industry.
Entry method
Organisations that are willing to enter in new markets need to have specific
knowledge regarding the area and should have done environmental audit for the same
in a clear and specific manner. Market analyst needs to be hired so that proper
decision will be taken for fostering the growth (Johanson & Valhne, 1977). Cultural
differences between the two countries play an important role in order to improve the
global business. Further, for entering in new market, cultural differences need to be
taken into consideration and on the basis of same, market entry mode is required to be
selected. According to Doole and Lowee, organisations have different options for new
market entry method/approaches. Apart from that, the best method which cited firm
can select can be market development as in this, company will focus on entering in
new markets with their existing product (Gillespie & Hennessey, 2016).
For company like J. that is having previous experience in international
business, it seems easy to take decisions in a smooth manner. With this, they will be
able to achieve high market share at initial time period only. Further, direct
involvement will be a better approach for J. because of its previous experience in
expansion they had. Target market is the one where firm wishes to do their business
and get attracted towards it to increase their revenue and productivity. With the target
market, firm will choose a particular segmentation and divide and distribute their new
apparels accordingly (Jobber and Chadwick, 2013).
Along with that, India is a bigger country as compared with Pakistan and
sometimes, it is hard for international marketers to select that from where to start the
business along with the city which should be chosen. It is further necessary to choose
various aspects and focus on different components like consumer behaviour, culture,
lifestyle, beliefs, attitudes, lifecycle, social class, etc. For a brand like J. which is
famous for its cultural dresses, it is certainly necessary to look at demography and
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start with areas where they can do good start. For instance, if J. focuses on three major
cities and put focus on the target market, then they will be able to improve their
revenue and productivity (Jobber & Chadwick; 2013). Thus, mentioned firm will
focus on 3 places i.e. Mumbai, Delhi and Hyderabad. Mumbai is the business capital
of India and has big chances for success of any business especially if brand like J. is
taken into consideration.
MARKETING STRATEGY
For J. firm, marketing strategy will be crucial as with that only, they will try to
make product available for customers. Basic marketing strategies will be taken into
consideration and firm will advertise the brand as well as products that they are
offering through television and radio. Moreover, organisation can also consider social
media source to promote as with that, they will be able to attract a large customer
base. Nowadays, promoting a product on Facebook, Instagram and Twitter is
considered as a major platform because large number of people use these applications
and promote the products that will attract customers. Apart from that, Sponsoring of
Bollywood events, cricket, fashion shows, photo-shoots etc. can also be considered by
this firm.
Marketing theory helps business organisation to improve their communication
process. Elements which are the part of it include source, sender, channel, receiver
and destination, message, feedback, etc.
Brand position
In Pakistan, J. is listed at high end of the market. In order to make and keep
this position in India, this will not be easy and firm has to choose good marketing
strategies so that the quality of firm as well as of products will be maintained. Further,
standardisation is the thing on which they need to focus in order to give quality of
products to customers at a reasonable price which will help them in making loyal base
for the cited venture. Further, product which J. venture is serving needs to be
positioned well so that large customer base can be attracted towards it. Further,
positioning theory is the one which shows the way in which people use words in order
to promote a specific product through varied ways.

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Brand strategy
Brands can either standardize themselves or adopt the strategy of the market.
For J. it will be easy to standardize and keep their standard as it is in other markets.
They are known for their quality and unique designs; if they keep the same strategy
they can be successful in Indian market due to cultural similarities and not big
economic differences (De Mooij, M.; 2010). Brand theory comprises of 3 stage theory
and it includes elements like design, value proposition and positioning statement.
Image and identity
J. has built its credibility in the markets as a top quality designer outlet. It is
well known for its quality and unique designs (Gillespie and Hennessy, 2016). It
would like to take that image to India because Indians believe in the same qualities
and if it is successful to give the same image and identity in India, it will be
considered as one of the top designer brands in India.
Pricing
Their prices should be market oriented but the same time competition oriented
as well. Like its other strategies J. should standardize its prices. Prices of J. in home
and other markets are considered affordable and customer are satisfied that they are
getting the worth of their price. They should keep their prices same but transport and
tax added (Hill, M.; 2013). Thus, mentioned firm can also consider pricing theory so
that it can set the best price for products in order to achieve desired goals and
objectives of venture. The price which needs to be set is required to be competent so
that firm can give stiff competition to organization that is dominating the market
share. Apart from that, marketing mix theory can also be taken into consideration in
order to set the best prices for apparels which are given to customers.
CONCLUSION
There is great potential in emerging markets for new business to grow. Before
entering a new international market, market study is essential. When a company like
Junaid Jamshed want to expand its business and want to go an emerging international
market it has to study the market in detail and then decide. After depth study of both
Indian and Bangladeshi market we reach to the conclusion that Indian market is more
suitable for business than Bangladesh. Indian market has great potential for growth
and the business environment in India is suitable for business.
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