Developing Product Strategies for Indian Market

Ultimate Guide to Product Strategies for the Indian Market

When expanding business operations to international locations, it is important to analyze the domestic market and consumer behavior of the new location. This gives businesses insight into consumer needs and purchase power that can help them introduce customized products and ensure successful entry into the market.

This procedure is especially applicable when foreign companies plan to expand to a country like India. This is because Indian consumers belong to varying demographic backgrounds and thus have different needs. Homogenous product offerings might not work in such a vast country that has such a dynamic consumer attitude based on regions and culture.

So, it is important to assess their consumption patterns in order to develop products that will meet their requirements. Businesses can also consider opting for Product Strategies for the Indian Market for effective solutions in this regard.

When expanding business operations to international locations, it is important to analyze the domestic market and consumer behavior of the new location. This gives businesses insight into consumer needs and purchase power that can help them introduce customized products and ensure successful entry into the market.

This procedure is especially applicable when foreign companies plan to expand to a country like India. This is because Indian consumers belong to varying demographic backgrounds and thus have different needs. Homogenous product offerings might not work in such a vast country that has such a dynamic consumer attitude based on regions and culture.

So, it is important to assess their consumption patterns in order to develop products that will meet their requirements. Businesses can also consider opting for product strategy and development in India for effective solutions in this regard.

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Importance of Product Development Strategy for Businesses

Having a product development strategy benefits businesses in the following ways:

• Provide Value to Consumers

A product development strategy involves intense research of the local market. This helps businesses find customers’ grievances and address them by offering solutions through their products. This ensures that consumers get access to new options in the market that address their needs and add value to their purchases.

• Create a Loyal Customer Base

When consumers find a company that understands and addresses their needs, they will prefer to purchase products of that particular brand. This helps in building a loyal customer base and creates a space for the company’s products in that market.

• Offer Better Alternatives to Existing Products

A significant benefit of devising product development strategies is that companies get to offer something better than what is already available. This helps them provide more value via their existing product range than what is being offered by their competitors.

For example, in a market that majorly consists of vegetarian consumers, FMCG companies can develop products that are vegetable or vegan-based. This will help them offer better alternatives to already existing products and thus gain a significant consumer base.

• Make a Place for the Brand in the Market

After gaining a big enough customer base, foreign companies get the opportunity to position their brand in that market. They get one step closer to their objective of expanding their operations in a foreign location. They also get the scope to develop new products to enhance their business offerings.

Product Development Strategies and Methods for the Indian Market

Here are some product development strategies that businesses must keep in mind when planning to enter the Indian market:

• Conduct Domestic Market Research

To make a product development strategy for the Indian market, it is important to understand the consumers. The best way to proceed in this regard is to conduct thorough research on the needs of the domestic market. This will help foreign businesses understand the consumer behavior, needs, and expectations prevalent in that region and develop a product that is capable of meeting them.

• Offer Something Better than Other Companies

Given the huge size of India’s population, it is common for many businesses to compete for market share. In this regard, effective product strategy and development in India are critical for gaining an edge.

Moreover, it will also give them an idea of what is already there in the market and the way they can offer something better. For example, a foreign business planning to launch its shoes in India must research the types of shoes Indian people generally wear. The goal should be to develop a product that is better than what’s already available in the market.

• Localising Products to Meet Market Needs

The Indian population belongs to varying demographic backgrounds. Moreover, their consumer preferences tend to change across regions and may starkly differ from one another. Thus, to successfully enter the Indian market, foreign companies must understand the region-wise consumer needs of the Indian population.

A very popular example in this regard can be given of McDonald’s. The international fast-food chain had to remove the beef burger from their menu in their Indian branches. This is because a majority of the Indian population considers the cow a sacred animal and would not like to consume its meat.

In this regard, partnering with an Indian company can be of much help. They already have the required knowledge when it comes to market requirements and have access to established distribution channels. Thus, foreign businesses can set up their business without getting into many hassles.

• Setting the Right Price

Indian consumers can be divided into several economic classes. Each has its own income range and based on that, a specific spending capacity. Foreign firms must also consider that the average Indian person earns a significantly lesser income than an individual in a foreign country.

Thus, to establish a market for their products, foreign companies must understand the price sensitivity of the Indian consumer and set the value of their offerings accordingly. Moreover, setting the right but competitive price will help gain an edge over existing market players.

• Develop Prototypes and Test in Batches

Every consumer is unique and has different needs. This fact is very much prevalent in India where customer preferences tend to vary regionally. Thus, it is advisable that foreign companies develop a prototype of their product and test it on a selected group of people. Then, based on their feedback, they can make the necessary changes and plan a nationwide roll-out accordingly.

Proceeding in this manner will help businesses bridge the gap between their market understanding and consumer requirements.

• Take Help from a Business Consulting Firm

Creating and implementing a product development strategy in a foreign market can be a bit challenging for companies. They may need to spend additional resources and time in this regard, which will unnecessarily delay their entry and expansion process. So, partnering with a business consulting firm is the best way to go.

Business consulting firms like Tecnova have in-depth knowledge of consumer requirements for each Indian market sector. Their expertise in assessing trends and implementing solutions can help exponentially when it comes to developing an India-based product.

Reference

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