Silk Soy Yogurt Paper

Raymundo Delgado, Jhonatan Fuentes, Sage McDonald, Sonia
Lopez, Shivam Shah, Dameon Williams
4/22/2013
SILK SOY
YOGURT
ECONOMIC SECTION II
Raymundo Delgado, Jhonatan Fuentes, Sage McDonald, Sonia
Lopez, Shivam Shah, Dameon Williams

1
Table of Contents
Executive Summary………………………………………………………………………………....2
Introduction……………………………………………………………………………………….....3
Country History………………………………………………………………………………...…...4
Geographical Setting………………………………………………………………………………..6
Social institutions……………………………………………………………………………….…..8
Religion/ Aesthetics………………………………………………………………………………..10
Living Conditions………………………………………………………………………………….12
Languages……………………………………………………………………………………….…16
Introduction (2)…….……………………………………………………………………………....17
Population Analysis………………………………………………………………………………..18
Economic Statistics……………..………………………………………………………………....28
The Market……………….…………………………………………………………………….….42
The Product…………………………………………………………………………………….….44
Pricing…………………………………………………………………………………………..…46
Place…………………………………………………………………………………………….…47
Promotional Mix………………………………………………………………………………..…50
Works Cited…………………………………………………………………………………….…56

2
Executive Summary
In our market research, we have concluded that Indian consumers are inclined to
consume Silk Soy Yogurt on a regular basis. With a potential market of 1.2 billion Indian
people and an ever expanding consumer income, we believe Soy Yogurt would easily be
introduced into the foreign country. Silk Soy Yogurt consumers enjoy a healthy,
nutritious, and active lifestyles. Silk‟s targeted demographic will be initially the Indian
middle class, and Indians from 15 years old to 60 years old. Silk Soy Yogurt will be
priced and positioned as a great value and great price for a western good. India has been
experiencing a large economic boom, with developments in infrastructure, living
conditions, trade, and exports. Silk will help customers to be able to enjoy an exquisite,
great tasting, healthy, yogurt which fits the lives of busy individuals of the growing
Indian middle class.

3
Introduction
Understanding a country‟s culture is the key to successfully operating a business
in a foreign country. An organization must implement cultural imperatives, support
cultural electives and exclude cultural exclusives in order to appeal to the native
population, government and potential partners. Moreover, individuals in the organization
must eliminate their self-reference criterion in order to implement effective native
operational plans.
Sanjay Kumar Singh, student at the Institute of Management Technology in India,
stated that, “competence of organizational culture for companies across industries in
India depends on the practice of beliefs and value systems in which relationships and
loyalty, vision of organization goals, uniformity of rules, importance for compassion and
caring are emphasized” (Singh). Singh‟s‟ statement discloses that in order to obtain
optimal employee output, companies must be loyal and compassionate to their
employees. Further, Indian businesses value the relationship with one another more than
efficiency. Therefore, a new business would have to gain the trust of a company before
they can become partners. Additionally, an organization must research the native
country‟s historical background, geographical setting, social institutions, religion, living
conditions and languages. Fully understanding these elements will allow a company to
smoothly transition and integrate themselves in the foreign country of their choice.
Country History

4
India is the birthplace of the human race, the birthplace of human speech, the
mother of history, the grandmother of legends and the great grandmother of tradition.
Due to the fact that India is known for such great achievements and people, the business
climate a lot, making positive changes and a higher business activity. India earned its
independence from the British on August 15, 1947. The Indians celebrate Republic Day
on January 26, 1950 as the day their constitution was adopted. Other countries like
Pakistan, Bangladesh (formerly East Pakistan), Myanmar (formerly Burma) and distant
places like Aden, were all parts of India (Daniel Aharon). The British era in India was
never one single country, but a collection of kingdoms and authorities with no sense of
unity. Since their independence, nationalists have assassinated three important leaders
such as Mahatma Gandhi in 1948, the second was Indira Gandhi in 1984 and last was her
son, Rajiv Gandhi, in 1991(History of India). The assassination of Gandhi and his
advocacy of civil disobedience was a passive resistance in a campaign that he was trying
to gain autonomy from Great Britain. The fact that this was going on would have made a
large impact on a product launch in India because setting apart from Great Britain would
change the target market and some of the types of products needed in the countries.
The Indian Railway is a service that was built from pressure from London in the
early 1840‟s. The building of the railway brought unintended problems as well as hope
for consequences in economic, political and military front (Rail India). With the new
railway it brought India closer together more than ever into an industrial revolution.
India‟s has the world‟s fourth largest railway network after those of United Sates, Russia,
and China. Indian Railways carry over 30 million passengers and 2.8 million tons of
freight daily, this helps India economically prosper (Rail India).

5
In 1947, India pronounced an undeclared war with Pakistan (InfoPlease).
This war started because the Muslims decided that they were mistreated and the Pakistani
supported them. This war took place in the North West part of India, leaving many
Indians in fear of death and scared. These Indian citizens were not looking into buying
any types of luxury products at this time, due to the terror going on in their part of the
country. Also at this time, people from other countries would not have wanted to
announce any new product into India because they were not in the place to buy and sell
the products (InfoPlease).
Geographical Setting

6
India is located north of the equator 20 00N, 77 00 E and borders the Arabian Sea
and the Bay of Bengal, between Burma and Pakistan (CIA). India is the seventh largest
country in the world with a total area of 3,287,263 sq km., 2,973,193 sq km of which is
land and bodies of water which surrounds the rest of India (CIA).The Indian Ocean,
Laccadive Sea, Arabian Sea borders and the Bay of Bengal surround southern India
(CIA). India is separated from Sri Lanka by the Palk Strait and the Gulf of Mannar to the
southeast and the Maldives Islands are 400 kilometers to the southwest (CIA). An
important aspect of the location of India is the face that it is southern Asia, and there can
be some common confusion about the difference. India has it‟s own businesses and they
are separate from southern Asia. Most of their cliental are the other Indians that are part
of their section of the country. When launching a product, a good aspect to know is what
part of the country that one is launching the product to. They need to know their target
market and they need to know about the barriers to the other parts of the country as well.
Due to the fact that about half of the country of India is under civilization and a little less
than half is forested, it is good to know that there is a lot of civilization and people when
offering a product in India.
The northern frontiers of India include the Himalayan mountain ranges, which
borders China, Bhutan, and Nepal. The northern frontiers only include a small section of
the Himalayan mountains, but it is enough that it lies in the disputed territories of the
north. The Punjab Plain and the Thar Desert are on the west, along with India‟s bordering
country, Pakistan (CIA). The Chin Hills and Cachin Hills are located towards the far
northeast; they are deeply forested mountainous areas that separate India from Burma.
The border with Bangladesh is clearly defined by the Khasi Hills and Mizo Hills (CIA).

7
The Ganges is the longest river that originates in India. The Gamges-Brahmaputra
system occupies most of northern, central, and eastern parts of India. The Deccan Plateau
occupies most of the parts southern India (CIA). Since the topography of the Ganges
river is very fertile and densely populated, it could be a very important aspect for growing
plants and could be used for multiple types of farming. It could be a great impact on
introducing a new product of food that needs fresh produce from local areas, etc. India
hosts six major climatic subtypes, ranging from arid desert in the west alpine tundra and
glaciers in the north and humid tropical regions in the southwest and island territories.
The Himalayas act as a barrier to the cold katabatic winds coming from Central Asia.
The nation has four seasons; winter (January- February), summer (March-May), a
monsoon season (June- September) and a post-monsoon period (October-December)
(CIA). Summers in India last from March to May, and the winters last from January to
February (MapsOfIndia). India also has something called the “monsoon” season which is
the “rainy” season and that lasts from June until September (MapsOfIndia). There is also
something called the “post-monsoon” season and that typically lasts from the months of
October until December (MapsOfIndia). The average temperature in the summer in India
can reach up to 90-104 degrees Fahrenheit, and the winter can strike a low of about 50-59
degrees Fahrenheit (MapsOfIndia).
Social Institutions

8
Social institutions are a complex, integrated set of social norms organized around
the preservation of a basic societal value. India is a very socially institutionalize country,
India follows a system called “Caste System” (Sociology Guide). The Caste system
divides labor and power among society and has divided communities into thousands of
groups called “Jatis”.
The Caste system protects people from negative discrimination but also
implements positive discrimination. The caste prohibits people to marry outside of their
caste class. The higher Caste holds the most power. However, there is no room for
growth. People can also be divided by the language they speak, culture, and economic
status. Different cities in India have different rules for its community based on its
population. Further, when traveling outside to outside cities', the rights that one has in
their home city may be different in another city.
Indians overtime have become more flexible with their Caste customs. In Indian
communities people that live in urban areas are less strict with their customs than people
that live in rural areas. In Indian cities people communicate with people of different caste
systems while in some rural areas there is still various levels of discrimination.
Our group will be taking soy yogurt to India. By researching, we learned that
some communities might not be as acceptant to our product because of their strict cultural
beliefs. The untouchable or people of a higher caste might not want the people of a lower
caste to enjoy this luxury treat. We also know that people living in urban areas will be
more likely to buy our product more than people in rural area because they are more
socially conscious. We will need to be mindful as to who we market to and how we
market our product.

10
Hinduism is one of the oldest religions in the world. Hinduism dates as far back as
5000 years. Hinduism is a very unbiased religion when it comes to assessing their beliefs.
There is not one particular God Indians worship; there are over 330 million Gods Indians
worship just like any other religion in our diverse world, Hinduism has its peculiar
traditions. Some traditions one may come across is Jyotish, Vastu, Tantra, Karma, Puja,
and Yajna (Hinduism Facts).
Hinduisms‟ concept about the soul is believed that if you were a good individual
in your past life, you will be a very fortunate person in the present. People will never
understand that Hinduism is actually more like a way of life for Indians; they live a
relaxing and nutritious lifestyle (Hindu Beliefs). In Hinduism Indians‟, believe highly in
Karma, karma is a cause and effect relationship. In Karma, if an individual did something
good in the past, they will be rewarded for their good deeds. If an individual does
something wrong, then they will be punished (Hinduism Facts). In Hinduism, it is said
that once you die one reincarnates into another life (being reborn again). In the Hinduism
religion people are supposed to reincarnate into 8,400,000 life-cycles (Hindu Beliefs).
After you live all the life cycles you go to a place called Moksha, and you will receive
your final emancipation.
Hindu‟s oldest form of sacred scripture is called Vedas. It is the oldest form of
literature in human history. According to these texts some of the main Gods they worship
are named Brahma (the creator of the universe), Saravati (the educator of the universe)
(Fun Facts about India). The Gods which they worship all have an effect on the world.
Like Vishnu and Lakshmi nourishes the world, whereas Shiv helps keeps the world in
balance (Hinduism Facts). Some holy animals according to Vedas are cows, peacocks,

11
mice, and elephants. Overall, Hinduism isn‟t very picky with how to live life but to live
in peace and tranquility. There is not any dress code for women; Indians‟ just have to
maintain a decent image.
Living Conditions

12
Since 1.2 billion people are currently living in India, there are many different
ways of living and living conditions. Indians‟ that live in India‟s rural parts make up
about 70% of India‟s whole population and slowly their urban population has been
increasing, as well as their well-educated population (Living in India). India is one of the
fastest growing economies in the world, which means that in the matter of years their
economy is going to prosper. India‟s growth outlook is positive due to a younger
population, healthy savings and investment rates, and largely increasing integrations into
the global trading economy (Living in India). India, yet has many long term challenges to
overcome including poverty, physical and social infrastructure, limited employment
opportunities, availability of quality and higher education, and accommodating rural to
urban growing communities (Living in India).
India‟s diet and nutrition depends on the religious dietary restrictions of its people
and also the fact that the food tendencies are regional (Discovering Indian Cuisine).
Traditionally, Indians families sit in one circle on the floor and eat as an entire family,
mostly with their hands. Indian cuisine changes with the geographic setting, Northern
Indian food is very similar to Pakistani cuisine, which includes meat kebabs and other
types of grilled meats. In northern India, one the most common foods are the flatbread
which is called, “chapati” (Discovering Indian Cuisine).Another food that is very popular
that is related to bread is “naan”, Naan is a type of bread that they eat with a curry-like
dish. In the south of India though, rice is a lot more common for them than wheat. With
rice, the Indians eat curries, such as, “dal” which is legumes like chickpeas and lentils
(Discovering Indian Cuisine). They also eat their rice with “dosas”, which are savory
stuffed flatbreads that are cooked like pancakes. Southern Indian food is called

13
Hyderabadi cuisine which is mostly rice because of what they have available to them. In
the western part of India most of their population are vegetarians. Some of the most
popular ingredients in the west are coconut and seafood. Western India is mostly
dominated by “goan food,” which is mostly fish. A very common type of bread that the
western Indians eat is something called, “roti” which is commonly served on the side of a
meal. Lastly, in the eastern parts of India, seafood is very common and they are mostly
known for their special and delicious treats, which are mostly made with dairy products.
In the east, Indian food consists mostly of lentils and fish and they call it Bangladeshi
cuisine.
Housing in India varies by the different parts of the country and how people live
in that part of their region. Housing can vary from palaces to modern day apartment
buildings, to tiny huts in rural Indian farming villages. Mostly in the Indian culture, the
most common structures for extended family is to all share the same house. Brothers,
sisters, and cousins commonly grow up together and they mostly call each other their
brothers and sisters. Grandparents, their sons and daughters, daughters-in-laws and
grandchildren all live in the same house and share the same bathrooms and kitchens
(Living in India). Traditionally, the eldest woman in the house sets the menu for the meal
and basically does all the cooking. Mostly, the women lives with their in-laws after
marriage and lives with them until they pass away. Most of the types of houses that are
found in India are big concrete buildings, which are socially meant for middle class
Indians. Most houses in India are not expensive to build there are some people who build
a lot of apartments in tourist areas. Poor people in India make shacks that look like tents
and they are mostly made out of palm tree leaves.

14
Clothing in India varies depending on what one is attending. They have a day-to-
day attire that is more casual and socially acceptable for an everyday wear. For weddings
and other “high-end” events, they dress in more of a dress and skirt-like attire with a lot
of color (Living in India). Dhoti is the traditional Indian clothing for men and woman,
which looks like a unisex dress that falls to the ankles. The Dhoti, is tied around the waist
and is about five yards long. The turban in India is a very popular thing to wear for the
men. It is very common, but the turban is not worn in the sake of fashion. Their hair
turban is a headdress that consists of a long piece of unstitched cloth that is wrapped
around the head. The Indian Sari is a very important piece of clothing that the woman
wears. It is a dress that is worn at home or at weddings or any other types of special
occasion. Most of the clothing that the Indians like to wear is very colorful and bright,
which has a lot to do with their tradition.
Recreation in India is very exciting and is very alike to the United States. They
have a lot of the same types of sports like soccer and field hockey (Living in India). In
India they enjoy watching and playing cricket as one of their most common daily
activities. They also play a lot of badminton and are Indian people are very competitive.
In India, it is very popular to run marathons for a cause, and Indians‟ also enjoy tennis
and volleyball. People in India have places to gamble and a lot of theme parks to get their
entertainment. Some traditional sports are Kancha which is played by using marbles. This
game is very popular in cities and in villages by small boys. Kite flying is another activity
that is common in the cities and as well as villages. For the people of India, they have a
lot of beaches and safari-like activities. They also have a lot of markets that they go to
that have a lot of their culture embedded. At Indian markets they have a lot of foods like

15
fruits, vegetables, and meats. They also have a lot of hand-made things such as purses
and jewelry.
India has a very basic social security system that caters to a very small amount of
the countries workforce. In tradition, Indians rely on their extended families for their
support when they are sick or in need of money. Due to a lot of urbanization and moving
around, family bonds have become less tight and family unites are a lot smaller now than
what they used to be in the past. In India there are two different types of social security
plans, which includes the Employees‟ Provident Fund Organization for pensions and the
Employees State Insurance Corporation (Living in India). Heath care in India is a
universal healthcare system that is run by the constituent states and territories of India
(Living in India). The malnutrition of children under three years of age is 42%.
Malnutrition in India is not getting any better, even when their economy is getting better.
It is very common in the lower Caste System to have little to no sanitation, and this
includes more than 122 million households to not have toilets.
Language/s

16
Being bilingual or trilingual is something to be proud of; being able to talk
different languages opens many doors to many great and exciting opportunities,
especially when doing business in different countries. As a business, before entering a
country or region businesses must know what languages they speak and write in order to
make successful business ventures. In India, the national language they speak is Hindi,
Even though the government has made English the national language for 10 years. India
has adopted English as their second official language. There are at least 13 different
dialects spoken in India.
Hindi was chosen as the number one language in India because it has relations to
Indian history. Even though in India Hindi is not the number one language spoken but
since the history is tied with the language it was voted as the official language. Hindi, can
be traced back to far as early as the seventh or eighth century. The history of Hindi can be
divided into four stages: Adikal (The Early Period), Bhaktiakl (The Devotional Period),
Ritikal (The Scholastic Period), and last but not least Adhunikkal (The Modern Period)
(Daniel Aharon).
Gujarati is the second largest language spoken in India, 70% of the population in
Indian speak Guajarati. Because of the population in India there are many languages and
dialects, due to the fact that Britain had colonies in India the language most spoken was
English. After gaining independence from Britain, English and Hindi have been
established as the number one and two languages spoken in India.
Introduction

17
The strength of a country can be determined by its current economic state. In
recent years, India‟s economy has been everything, but attractive. In the beginning of
2013, India increased taxes on domestic and foreign companies. An employee at
PricewaterhouseCoopers stated that the “increase to 5% for foreign companies will have
a negative impact as it will include foreign banks and also foreign companies running
offices for infrastructure projects” (Acharya). This will spook away even more investors,
which is one of the main reasons why they are in a fiscal deficit.
Moreover, India‟s declining gross domestic product (GDP) growth is directly
affected by an “uncertainty surrounding government policies…a ballooning deficit, sky-
high inflation and a currency that has slumped over the last year” (Harjani). In 2012, their
GDP was at 5.5%, down from the 8% nearly two years ago. Even though they are
implementing new trade policies, investors are still spectacle.
Population Analysis

18
India with 1.22 billion people is the second largest country in the world. India‟s
total population represents 17.31% of the world‟s population. This means one out of six
people on the planet lives in India. India is expected to grow by 1.58% annually and by
2030 India will have more than 1.53 billion people living in India. According to the 2012
India census, for every 1000 men there are 940 women. Sex ratio is the number of
females per 1000 males in a population. Sex ratio is an important useful tool to measure
gender equity within a countries‟ society at any given point of time. Sex ratio‟s change
mainly due to social, economic, and cultural patterns of the society in different ways. The
major cause of decrease of the female birth ratio in India is considered to be the violent
treatments of girl children at the time of the birth. Sex ratio overall has gone through
improvement in the past ten years, there are still small cities in India where the sex ratio
is still low. Men and women who are from a low caste or poor suffer, permitted, or even
encouraged to marry up into a higher income bracket or caste, so richer men find it easier
to get a bride. The poor of India are forced into a long marriage, a status which is widely
frowned upon in India, where marriage is deemed essential to becoming a full member of
society.
According to India Online Pages, over 50% of India‟s current population is under

19
the age of 25 and 65% is under the age of 35, about 72.2% of the population lives in
some 638,000 villages and rest 27.8% in about 5,480 towns and urban areas. Further,
India every adds more people than any other nation in the world, some of its states are
equal to the total population of many countries. The population of Uttar Pradesh almost
equals to the population of Brazil. Maharashtra, which is the second largest state India, is
equal to Mexico‟s population. Third, Bihar is the most populous state in India and its
population is more than Germany‟s.
According to India Online Pages, the estimated birth rate (child births per 1,000
people per year) is 22.22 births/1,000 population 2009, while death rate (deaths per 1000
individuals per year) is 6.4 deaths/1,000 population. Further, the fertility rate in India is
2.72 children born/woman (NFHS-3, 2008) and infant mortality rate is estimated at 30.15
deaths/1,000 live births. India‟s growing population is due to poverty, illiteracy, high
fertility rate, and rapid decline in death rates. India started taking measures in 1952 to
steam the growth rate. The family planning program has yielded noticeable results,
bringing down the country‟s fertility rate.
The population distribution in India shows a very wide variation throughout the
different states. India is the sixth most populated country in the world, with Uttar Pradesh
being the most populated state in India with a population of 166 million people (CIA
World Factbook). Nineteen states in India hit a population of over 10 million people, but
there are eight states that have a population of one million or less people (CIA World
Factbook). The population has grown rapidly in these five states in India; Uttar Pradesh,
Maharashtra, Bihar, West Bengal, and Andhra Pradesh. These five states all have the

20
highest rates of population out of the whole country of India and make up of that big
percentage of people (People of India.)
According to 2012 Index Mundi, Indian‟s between the ages 0-14 years old
accounted for about 29.7% of India‟s population. The age structure for people between
15-64 accounts for about 64.9% of India‟s population and including people whom are 64
years of age or older add up to about 5.5% of the country‟s population. Between the ages
0-14, 187,450,630 are male and 165,415,758 are female. Within the age group of 15-64
years of age, 398,757,331 are male and 372,719,379 are female. Lastly, within the age
group of 65 years and older, 30,831,190 are male and 33,998,613 are female. The median
age that most people fall under happens to be 25.9 years old for males and 27.2 years old
for females in India.
According to the CIA, India is the second most populous country in the world
with an estimated 1.2 billion people, which makes up more than one sixth of the total
world population. India is projected to be the world‟s most populous country by the year
2025 and surpass China by 2050. Higher population densities and larger human features
in comparison to surrounding areas characterize urban areas. Urban areas may be towns
and cities that are created and further developed by the process of urbanization. The
urban population takes up a total of 30% of India‟s population with an annual 2.4% rate
of change. (Indexmund) India has 3 megacities within the top 20 most populous cities in
the world, which includes Delhi, Mumbai, and Kolkata. Each city contains 15- 23 million
people within its boundaries.
A suburb is defined as an area with residences and has a larger population than a
rural area. The suburban areas are typically outlying a larger city. Thane, which is found

21
outside of the Mumbai Metropolitan Region is one of the top ten most populated in the
world with approximately 1.8 million residents. Mumbai has 3 other surroundings cities
that makes it to the top 30 largest suburbs. These cities include Kalyan-Dombivali, Vasai-
Virar, and Navi Mumbai. The second largest suburb in India alone is Pimpri, which out
lays Pune with about 1.7 million occupants. Delhi has three surrounding suburbs that
make it to the top 15 highest populated in the world, which includes Ghaziabad, Gurgaon,
Faridabad. Each town includes more than 1.4 million residents each (CIA).
Rural areas are also known as „countryside‟ or a „village‟ in India. It has a very
low density of population with 400 individuals per square kilometers (People of India).
Rural areas house up to 70% of India‟s population with three fourths of them being males
working in agriculture and allied activities. The state of Uttar Pradesh makes up 16.5% of
India‟s population with 131.6 million rural residents and 34.5 million occupants make up
the urban population. Although Uttar Pradesh does have the highest population, their
density is significantly lower than that of Delhi. Delhi‟s density is 9,340 people per
square kilometer. According to the density map provided, a large percentage of the
population is in the northeastern border and the southern tip (People of India.)
India is a very interesting country where people of different religions and
communities live together as one unit. According to CIA, India has a very wide variety of
races that make up the country and there are an amazing amount of different cultures in
India as well. It is very fascinating that India has 6 main ethnic groups and they are as
follows; Negroids, Proto- Australoids or Austrics, Mongoloids, Mediterranean or
Dravidian, Western Brachycephais, and Nordic Aryans. The Negroids are one of the
earliest people to come and settle in India, Negroidshad settled in their habitat in

22
Andaman and the Nicbor Islands. A lot of these Negroids have other names and tribe
names such as Irulas, Paniyans, and Kurumbas. These similar tribes are often still found
in the Southern part of mainland India with the same culture and way of doing things.
Proto- Australiods or Austrics were the fascinating second group to come over to
India after the Negroids and settle on the land (People of India.) They still exist today in
India and they are the people who are described to have wavy hair lavishly all over their
bodies and they are described as longheaded with low foreheads and prominent eye
ridges. The Austrics of India on the other hand, represent a race of medium height, a very
dark complexion, with long heads and flat noses but with mostly regular features.
Austrics were the ones who laid the foundation of the Indian civilization and they came
up with the ideas of cultivating rice and vegetables and also getting sugar from
sugarcane. This ethnic group can be found in most parts of India and can also be found in
the islands of South East Asia. The languages that the Australoids and Austrics speak still
remain and have survived in Central and Eastern parts of India (People of India.)
According to Population Distribution of India, the Mongoloids are still found in
many parts of the most populated areas of India today. They can mostly be found in the
Northeastern part of India in the states of Nagaland, Assam, Mizoram, Meghalaya,
Arunachal, Pradesh, Manipur, and Tripura. Another part of India where this ethnic group
can be widely found is in the Northern parts of West Bengal, Sikkim, and Ladakh. The
Mongoloids are mostly described as the people with a yellowish complexion, high
cheekbones, oblique eyes, sparse hair, and medium height. Their straight black hair,
slanting eyes, and a short nose also distinguish these people and it is some of what makes

23
them their own ethnic group. Mongoloids are very similar to Southeast Asians, which
have similar languages, cultures, and physical features.
Mediterranean or Dravidians are mainly populated in the southern part of India
according to (People of India). Most Indians say that the Dravidians came to India before
the Aryans and settled early. Dravidians have a different type of culture that they practice
and they happen to have different types of sub-groups such as Paleo-Mediterranean, the
true Mediterranean, and the Oriental Mediterranean. Dravidians appear to have some
similarities with the people of Asia Minor and Crete, as well as pre- Hellenic Aegean‟s of
Greece. The Dravidians are the ones who had started to build up the city population and
civilization of the Indus Valley. Dravidians have been found in many different locations
around India. Some of the locations happen to be areas like Mohenjo- daro and other
Indus cities (People of India.)
Western Bracycephais includes Alpinoids, Dinarics, and Armenoids and they all
fall under the category of the specific ethnic group (CIA). Western Bracycepahis are
mostly living on the Western side of the country such as Ganga Valley, Kashmir,the
delta, and many other parts of Western India. Their physical features include broad
foreheads, brown skin, and sharp features mainly characterized this specific ethnic group.
Western Bracycephais mainly occupy the western side of India, and are still a big part of
the western part of the Indian culture. The Western Bracycephais still hold an important
part in that part of the country because they came up with a lot of their own ways of
living such as homes and food. Western Bracycephais can be called the foundation for
the present day people in states such as Gujarat, Maharashtra, Karnataka, and Tamil Nadu
(CIA).

24
According to India Demographics Profile 2012, the Nordics or also known as the
Indo-Aryans were the last and final major ethnic group to settle and migrate into India.
The Nordics immigrated into India sometime around 2000 and 1500 B.C. and are now
mainly found in central and northern parts of India. They first started settling the northern
part of India and started to drive away the Dravidian ethnic group from their territory.
The Dravidians started moving to the south so that the Nordics finally got their own land
and territory that had been wanting. The Dravidians light white skin with typically light
blonde hair and light blue eyes mostly characterizes the Nordics. Nordics arealso known
for their stout appearance and mostly they are little taller than normal Indians (India
Demographics Profile 2012.)
Year Population Percent Change
1980 682.25
1981 696 2.02 %
1982 711.75 2.26 %
1983 727 2.14 %
1984 743 2.20 %
1985 759 2.15 %
1986 775.25 2.14 %

25
1987 792.25 2.19 %
1988 809.25 2.15 %
1989 826.25 2.10 %
1990 843.25 2.06 %
1991 860 1.99 %
1992 877 1.98 %
1993 896.5 2.22 %
1994 914.5 2.01 %
1995 932.5 1.97 %
1996 950.5 1.93 %
1997 968.75 1.92 %
1998 987.5 1.94 %
1999 1005.5 1.82 %
2000 1024.25 1.86 %
2001 1044 1.93 %
2002 1060 1.53 %
2003 1076.25 1.53 %
2004 1093.25 1.58 %
2005 1110 1.53 %

26
2006 1126 1.44 %
2007 1142 1.42 %
2008 1158 1.40 %
2009 1174 1.38 %
2010 1190.524 1.41 %

28
Economic Statistics
"India GDP." India GDP. N.P., n.d.
The Gross Domestic Product in India was worth $1847.98 billion US dollars in
2011. It is said that from 1960 until 2011, India‟s GDP average was $368.8 Billion
reaching an all-time high of $1848.0 USD Billion in December 2011.The gross domestic
product (GDP) is equal to the total outflows for all final goods and services produced
within the country in a specific period of time.
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2004 2005 2006 2007 2008 2009 2010 2011 2012
India Total GDP in Billions of U.S Dollars

29
"India GDP Growth Rate." India GDP Growth Rate. N.p., n.d.
The GDP growth rate in India expanded 1.30% in the fourth quarter of 2012 over
the previous quarter. History shows that since 1996 until 2012, India‟s GDP growth rate
average was 1.63% reaching an all-time high of 5.80% in December of 2003 and a record
low of -1.70% in March of 2009. India is the world‟s 10th
largest economy and the 2nd
most populated. The fastest growing section in Indian economy is services. Trade, hotels,
transport, communication, financing, insurance, real estate, business services,
community, social and personal services account for more than 60% of GDP.
Agriculture, forestry and fishing form around 12% of the production, but it employs more
than 50% of the labor force. Manufacturing reports for 15% of GDP, construction for
another 8% and mining, quarrying, electricity, gas and water supply for the remaining
5%.
-3
-2
-1
0
1
2
3
4
5
6
2008
2010
2012
2012
GDP Growth Rate per Quarter

30
India‟s government has done a great job cushioning the impact and the nation‟s
economy has seen the rise from 2010 to 2012. Due to the Indian government‟s
restructuring, a large increase in the middle class income has been seen and it is estimated
that there are about 200 million people in the middle class category. The middle class in
India will have a substantial demand for service in the upcoming years. With standards of
education rising, the Indian government has provided free of cost and compulsory until
the age of 14, as the numbers of students increases, the number of Indian‟s having their
own vehicle, provides a good business proposition for future automobile, banking, and
road building which would benefit various sectors of the Indian economy.
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
2012 2011 2010 Category 4
Personal Income Per Capita

31
The Average Family Income index, measures the distribution of family income in
India. It is calculated with cumulative family income plotted versus the number of
families arranged from the poorest to the richest. According to India times, average
family income grew overall 11%, among rural households spending per year grew at a
higher rate than all India average in Maharashtra and Bihar 12.1%, Gujarat 12.2 % and
Madhya Pradesh 11.4%. This indicates India‟s structuring has caused adequate access to
infrastructure, electricity, and major road connectivity which helps increase the average
family income and helps Indian economy to prosper.
0
10
20
30
40
50
60
70
80
2004 1997 Comparison to the world
Average Family Income

32
Iashmi, Priya, and Sandeep Kumar. "Economic Growth and Impact of Service's Sector
in India." International Journal of Business Management & Economic Research 3.5
(2012): 627-632. Business Source Elite. Web. 26 Mar. 2013.
India‟s economy has successfully displayed large growth in selected sectors,
encouraging performance for stepping up India‟s growth rate and improving the
competitive edge in the years to come. An important indicator is India‟s growing
investment destination, which is shown by the increasing inflow of both FDI and foreign
institutional investment into India. This growth area have experienced significant
restructuring by the Indian government, and has led to increases in international
competiveness in a number of sectors including auto components, telecommunication,
software, pharmaceuticals, biotechnology, research and development. The effects of
India‟s increasing international competiveness has helped in improved the rate of growth
of export earnings, thus directly benefiting Indian consumers by making better quality,
lower priced goods available.
India‟s vast transportation system caters to the second fastest growing major
economy in the world. India‟s population is currently around 1.2 billion people, and

33
changing rapidly in many different ways. India‟s transportation system caters to not
only the citizens of India but the world‟s variety of tastes, preferences, wants, resources,
products and services. Transport routes or channels are basic arteries of a nation‟s
economy. India has one of the largest networks of roads, railways, pipelines, waterways,
and airways which covers over 44 billion miles of India‟s land. Transportation systems
in India include walking, palanquin, bullock carts, horse carriages, bicycles, hand-pulled
rickshaw, cycle rickshaw, and trams. Contemporary modes of transport include buses,
taxis, suburban railway, auto rickshaws, rapid transit, two wheelers, automobiles, and
utility vehicles.
According to Maps of India, India has one of the largest road networks in the world,
roads in India have been in existence since the ancient times. Roads in India carry almost
90% of the country‟s passenger traffic and 65% of India‟s freight. The road transportation
network in India comprises of state, national, district roads, village or rural roads, which
roughly covers 2 million miles.
Railways are the main part of the Indian transportation system, India‟s railway
system has over 7,500 stations and total track length of 65,000 km which inter-connect
with all aspects of daily Indian society. India like many of its economic competitors, is a
land of diverse cultures as well as religion. India railways connect different parts of India,
which one can find totally different traditions and cultural variations. Indian railways are
the fourth largest network after those of the United States, Russia, and China (Headlines
of India). Indian railways easily carry over 30 million passengers, and 2.8 million tons of
freight daily. According to Dave Donaldson, “railroads in India reduce the cost of

34
trading, reduce inter-regional price gaps, and increase trade volumes for the Indian
economy”.
Highways in India comprises of state highways, national highways, district roads,
and village or rural roads. Highways and roads are the most dominate modes of
transportation in India currently. Roads of India carry 90% of the India‟s passenger traffic
back and forth, and 65% of India‟s freight. The density of India‟s highway network at
0.66km is similar to that of the United States (0.65) and much greater than China‟s (0.16)
or Brazil‟s (0.20). India‟s economic growth has caused major highways in India to
become narrow and congested with poor surface quality, and 40% of India‟s highway
system are not paved and do not have access to all weather roads and needs for
maintenance are not met, this has led to deterioration of roads and high transport cost for
users who are cut off during the monsoon season in India.
India currently has 12 major, and 187 intermediate ports along its more than 7500
km coastline. Indian ports serve as India‟s growing foreign trade in petroleum products,
manufacturing, communication systems, coal, iron ore, and containers. Port traffic has
more than doubled during the 1990s, 1 billion tons in 2011-12. This ton is expected to
grow vastly by the future centuries. Ports in India need to significantly increase their
efficiency to meet needs of demands of the world economy.
India‟s communication system is the second largest in the world, and it has always
played an important role in development of the Indian economy. India‟s mix of excellent
transportation and communication system makes access to India easy and convenient.
India‟s communication system includes postal, telegraph, telephone, radio, wireless,
television, newspaper systems. India has easily emerged as one of the world‟s best

35
performing economies during the last five years. The telecom sector in India has emerged
as a total winner for India, the growth of cellular phones and mobile services is leading
the telecom revolution in India. India is the second largest and one of the fastest growing
markets with strong demand for GSM, and CDMA networks for wireless local loop as
well as complete mobility in urban and rural areas. Wireless networks have become
cheaper and easier to install thus revenues and competition are soon expected to force
cellular networks into rural networks. Overall, communication technology in one major
part of the Indian economy, which is evolving rapidly due to more people demanding
mobile services with larger bandwidth and new innovative services like connectivity
anywhere, anytime for features like TV, multimedia. Economies like China and India,
have a combined population of nearly 2.5 billion people, India which has successfully
attracted telecom companies like Microsoft, Intel, Motorola, Ericsson, Nokia, to set up
communication development and research centers in India.
In terms of international trade in 2011, India ranks 19th
in merchandise exports
and 12th
in imports. According to the World Trade Organization (WTO) statistics, India
exports approximately $305,585,000,000 and imports $462,633,000,000 just in
merchandise. India‟s three main commodity exporting and importing groups are
agricultural products, fuels, mining products, and manufacturers. Agricultural products
include food and raw materials, India holds an 11.3% share of India‟s total merchandise
economy exports. As for their agricultural product imports, India only holds a 4.9%
share. In fuels and mining products, which include fuels, ores and other minerals, India
holds a 23.7% share and a 39.6% importing share. For the manufacturers group, which
includes iron and steel, chemicals, machinery, textiles, clothing and other consumer

36
groups, they hold a 61.7% share of India‟s total merchandise economy exports and a
41.4% share in imports. India‟s top exporting destination targets include the European
Union with an 18.1% share in India‟s total merchandise exports, the United Arab
Emirates with a 12.4% share, the United States with a 10.9% share, China with a 5.5%
share, and Singapore with a 5.2% share of India‟s total merchandise economy exports.
India mainly imports from China with a 12% share in their total merchandise imports, the
European Union with an 11.9% share, the United Arab Emirates with a 7.7% share,
Switzerland with a 6.8% share and Saudi Arabia with a 6.1% share of India‟s total
merchandise importing economy (Trade Profiles).
In commercial services, India ranks 8th
in exports and 7th
in imports. In 2011,
India‟s exports were valued at $136.5 billion dollars and imports at $123 billion dollars.
Their imports and exports can be grouped as transportation, travel and other commercial
Services. Transportation holds a 12.8% share in India‟s total commercial services
economy exports and a 46% share in imports. Travel holds a 12.8% share in exports and
an 11.2% share in imports. Other commercial services include a 74.4% share in India‟s
total commercial services economy exports and a 42.9% in imports (Trade Profiles).

37
Balance of Payments
According to our class textbook International Marketing, balance of payments
refers to the “system of accounts that records a nation‟s international financial
transactions” (Cateora, Mary, & John 589). India‟s current balance of payment is not so
attractive; it is at a deficit. When a country has a deficit that means it imports more than it
exports and if the balance is surplus then a nation exports more than it imports. Balance
of payments is divided into two main categories: Current Accounts, and Capital
Accounts. Balance of payments shows how much is being spent by consumers and also
firms on imported goods and services. Balance of payments describes how successful

38
firms are in exporting to other countries.
According to the Reserve Bank of India, “current-account deficit widened to
$22.3 billion, or 5.4% of gross domestic product, in the July-September quarter, from
$16.4 billion in the April-June period” (Jain). Current accounts are used to mark the
inflow and outflow of goods and services into a country, where earning on investments
are used both public and privately. During 2011-12, exports crossed $200 billion mark
for the first time, increasing rapidly by 37.3% from $182.4 billion in 2009-10 to $250.5
billion. This increase was largely due to engineered goods, petroleum products, gems,
jewelry, and chemicals related products. The improvements in exports were accompanied
by a shift in labor-intensive manufacture to higher quality and value engineering and
petroleum products.
India‟s government has taken huge efforts in attempting to reduce the deficit,
which has served the economy well in terms of reducing its vulnerability to future crises.
India‟s government has raised the price of diesel to reduce the fuel subsidies spending
and allowed higher foreign investment in retail, aviation and broadcasting, which can
reduce the deficit. The deficit has had negative impacts across India, including on their

39
currency. The rupee, India‟s currency, saw a 3% decrease in value against the U.S. dollar
due to the deficit.

40
Labor Statistics
In 2011, India‟s labor consisted of 487.6 million out of their current population of
1.2 billion people. Their unemployment has decreased from 10.8% in 2010, but at 9.8%,
it remains high. Since manufacturing is one of India‟s biggest industries, India‟s top
manufacturing jobs are in food, beverage and tobacco, textiles, chemicals, primary
metals, transportation equipment, apparel and machinery (United States Department of
Labor).
(India - Labor Force - Historical Data Graphs per Year).
460,000,000
480,000,000
500,000,000
520,000,000
540,000,000
2003 2004 2005 2006 2007 2008 2009 2010 2011
India's Labor Force
India's Labor Force
Employment in subsectors within India's organized manufacturing sector, 2005-06
NAICS
code(s) Subsector(s) Percent of total manufacturing employment
31-33 All manufacturing (excluding publishing) 100.0%
311-312 Food, beverage, and tobacco 20.9%
313-314 Textiles and textile product mills 15.3%
325 Chemicals 9.5%
331 Primary metals 7.4%
327 Nonmetallic mineral products 6.6%
336 Transportation equipment 6.4%
315 Apparel 6.2%
333 Machinery 5.3%

41
(India - Unemployment Rate - Historical Data Graphs per Year).
(United States Department of Labor).
The Market
0
2
4
6
8
10
12
2003 2004 2005 2006 2007 2008 2009 2010 2011
India's Unemployment Rate
India's Unemployment
Rate

42
Considering the product that was chosen to introduce to India, Silk Soy Yogurt
will be initially targeted to the middle, and upper class in India. There are 300 million
Indian residents that fit in this category but all have different preferences that Silk will
need to target and adjust to. According to the State of the nation survey, 41% of Indians
are considered vegetarians regardless if they consume eggs and milk or are devout Jadins,
which comply with stricter rules. “Devout Hindus believe that the cow is a holy animal,
and it's forbidden to slaughter cows in India,” states Esselborn. It is shown that about
30% of Indian meat-eaters eat meat infrequently. Infrequent meat eaters typically do so
when a home meal is not available and vegetarian options are scarce out in the
restaurants.
Other than vegetarians, Silk Soy Yogurt would be targeting middle class youth 23
years and under. Young adults and teens are modeling their lifestyles to “Westerners”
which leaves being vegetarian “out of style.” Silk will emphasize the simplicity of
picking up a healthy and vegetarian yogurt for those leading a hectic lifestyle. Although
there is no direct link, a recent increase in disease is thought to be related to the shift into
unhealthy consumption.
When considering gender in middle and upper class Indians, married women tend
to select healthier foods because they pay more attention to their health and figures.
Married women who are educated and who are balancing busy careers with their families
have less time to spend on daily cooking which has resulted in the increased popularity of
packaged food. This trends of educated working women is likely to continue as the
percentage of working women is expected to increase over the coming years in India.
Men would be more difficult target market to reach because the consumption of meat has

43
become synonymous with masculinity. Since the majority of non-vegetarians eat meat
infrequently, Silk can be part of a balanced diet without having to completely cut out
meat. This product will flourish in an urban and suburban lifestyles since rural residents
keep up with their religious devotion and are exposed less to meat consumption. Due to
great investment in the power, and electricity sector in India to most parts of the country,
the sales of electrical appliances such as refrigerators is increasing. This upsurge of sales
has led to an increase in sales of frozen, and refrigerated packaged foods.
Consumption of yogurt in India is highest in Northern and Western India, where
the concept of flavored yogurts is common in western cuisine, and with middle-class
urban Indian families eating out and expanding their culinary horizons more than ever
before, they are highly likely to be open to the concept of flavored yogurt. Silk soy yogurt
can be positioned as a tasty, healthy, versatile food option. Silk soy yogurt can consumed
as a snack between meals, dessert, or even as part of a meal like breakfast. Silk soy
yogurt is uniquely positioned as it offers the taste and enjoyment derived from consuming
an indulgence food-item like ice-cream, as well as the health and nutritional benefits of a
health drink.
The Product

44
Silk soy yogurt is a well-known and recognized brand in the United States for the
lactose and intolerant target market. As with any other product it has its advantages and
disadvantages. For example, an advantage that will benefit Silk soy yogurt in India is that
milk is a great resource for nutrition for the millions of citizens living in India. India is a
very large populated country where many of its citizens are without proper nutrition.
Pricing Silk soy yogurt in a price that is adequate for the people residing in India will
surely benefit because the yogurt will not only be source of food but nutrition and easy to
obtain. India imports more than 33% of lactose products benefiting Silk because it will
count in that high percent of imported lactose products. India is recognized as the number
one exporter of milk to the world. In India, the cow or calf is a sacred animal and it‟s not
eaten or slaughtered. Since this animal is holy it brings a problem to the Soy Milk Yogurt
Silk because the Indian community may be healthy and may drink regular milk without
any stomach problems. The consumer may be immune and not have any problems
drinking and eating any regular dairy product.
Furthermore, Silk has benefits that can expand its sales in India, and that is due to
the fact that Silk Soy Yogurt has no artificial flavors. Since in India it‟s a custom to eat
and add spices to their food, it will benefit Silk because Silk has no artificial flavors and
it has no artificial colors. Like in India, Silk makes its product from real grown fruits and
uses those ingredients only. It relates to India because Silk products will adapt to the
Indian customs to using vibrant colors and own grown ingredients. Another advantage
that Silk Soy Yogurt will benefit taking the product in India is that Silk makes its product
without GMO or commonly known for “Genetically Modified Organism.” Since meat is
not eaten like in the United States and the calf is a sacred animal in India the product Silk

45
has a relation that it will not do any experiments with gene splitting with biotechnology.
It will not harm nor will experiment with the calf knowing the importance of this animal
to the culture of India. The image that Silk soy yogurt wants to create is the image of
“Simple delicious food. Starts with ingredients that are grown responsibly and kept close
to nature as we can with no artificial flavor and colors, no high-fructose corn syrup, dairy
free and non GMO-ingredients.” Further, Silk soy yogurt is flavored spoonable yogurt
made from soy, cultures, flavors, whey protein, concentrate and color. Silk soy yogurt has
a shelf life of more than 15 days, the product would be primarily positioned as a healthy
snack that tastes good. Silk soy yogurt will available in four or more different flavors
including; Mango, Strawberry, Vanilla, and original (plain). Silk soy yogurt is packaged
in a plastic container and vacuum-sealed using aluminum foil bearing the Silk logo and
branding.

46
Pricing
When introducing a foreign product into a country, many variables and strategies
have to be considered. First, marketers must realize who their target market really is.
Setting a target market allows them to focus their resources on a specific group of
customers that will take special interest in their product. Since approximately 50% of
Indians are lactose intolerant and individual disposable income is increasing, we have
decided to target educated individuals searching for a healthier snack alternative ages 21
through 40 (Lactose Intolerance World Map). Soy yogurt provides an alternative to
healthy snacks such as protein bars, milk, dahi (yogurt) and fruits.
To get a sense of their currency value, one U.S dollar is equivalent to 54.58 Indian
Rupees (Rs) and the average McDonald‟s meal costs 180Rs. As for our competition, a
case of 12 protein bars is priced at 2,600Rs, a liter of milk at 32Rs, 1Kg of apples at
120Rs and 1Kg of oranges at 70Rs (Cost of Living in India). Therefore, we decided to
implement a value pricing strategy and as we establish our brand, we will switch to
competition pricing. We will set our prices congruent with the competition; however, we
will distribute large quantities of coupons throughout gyms, parks, supermarkets and our
partner channels in order to get people to try our product. Nonetheless, we cannot price
our soy yogurt much higher than regular dahi. Currently, a 200gm Nestle dahi is priced at
19.80Rs.
Another key factor is income levels. Income levels can determine the price range
for our product. Currently, the average Indian citizen is earning an average 445,540Rs per
year (Average Salary In India). However, the graph below reveals that the average
doubles among the education class. Since we haven‟t established a cost leadership or

47
differentiation strategy, targeting the educated class will allow us to raise our prices
enough to cover for our high cost of goods sold.
Education Average Gross Salary Gross (USD)
Less Than High School 289,179 INR $5,193
High School 402,742 INR $7,232
Some College 606,496 INR $10,891
Bachelor‟s Degree 858,758 INR $15,420
Master‟s Degree 1,159,269 INR $20,816
Doctorate Degree 1,637,439 INR
$29,403
(Average Salary In India).
We have decided to sell 200gm and 400gm containers of soy yogurt. The price for
the 200gm would be 24.99 and 47.99 for the 400gm product. To allow consumers to get a
taste of the yogurt, we will distribute coupons discounting 20% our prices. This would
leave the 200gm container at 19.99Rs and the 400gm container at 38.39Rs. However,
once we have established our brand, we plan to raise our prices in order to compete with
snack bars, milk and fruits. Silk will apply market penetration pricing techniques, the
product is priced competitively to ensure wider consumer reach and to secure high
volume growths.

48
Place
India is easily the world‟s largest producer of dairy products by volume and has
the world‟s largest dairy herd. India accounts for more than 13% of the world‟s total milk
production and is also the world‟s largest consumer of dairy products, consuming almost
all of its own milk production (FSMIP). Milk production in India has increased
significantly in the past few decades from a low volume of 17 million tons in 1951 to 110
million tons in 2009 (FSMIP). Currently, the Indian dairy market is growing at an annual
rate of 7%. A demand for non-dairy products such soy has become imminent in the dairy
industry due to changing consumption habits, dynamic demographic patterns, and rapid
urbanization of rural India. The growth in the number of soy food processors in India is
growing in the region. In 2000, only 50 soy food manufactures existed in India; currently
about 400 are present in the country (FSMIP).
All of India‟s current soy imports arrive via containers through major coastal
ports such as Mumbai, Cochin, Calcutta, and Chennai. Soy processors are located across
India, after arriving at a costal port; containers are loaded on either rail or truck for
distribution. The primary mode of distribution of Silk soy yogurtis a multi- level channel
distribution network, to ensure the freshness of the product; it is put in cold storage at 4
degrees after packaging and is transported in trucks to the warehouse. Silk will partner
with Gujarat Cooperative Milk Marketing Federation (GCMMF), Wadia Group, Yakult
Honsha, and Bharti Enterprises, which will supply retail stores, wholesale stores,
shopkeepers, hotels, and other businesses with Silk branded soy yogurt (Walmart).
Our plan to bring our product into India requires a lot of culture analysis.
Knowing that India thinks of milk and dairy as a very important element that they do not

49
eat, taking a brand of soy yogurt into India would make complete sense. The ways that
would be included in introducing and bringing our product into India was very well-
thought out, yet simple. Our plan is to manufacture our product inside of India, instead of
shipping it from the United States. Doing so, the product will be more fresh and reliable.
Since yogurt is supposed to stay cold and it doesn‟t have a very long shelf life. With our
fresh and innovative ideas, we are determined to get our product into the hands of our
customers in India. Even though we have some reliable competitors, we still feel that we
will be able to make it out on the top.
After extensive research, our plan is to not only get our product into the hands of
our customers, but to satisfy our customers as well and keep them coming back. We have
some ideas such as giving out free samples into the bigger cities in India, so that the
business district can have a taste. Once they enjoy our product, they will be willing to go
to the store and buy the product as well. Since our soy yogurt is very healthy, we think
that it will help us succeed as well. We also will hand out multiple coupons to the public
so that they can save money on their first purchase of our product. Consumers like the
fact that they are getting any type of discount, and they are determined to keep coming
back for more.

50
Promotional Mix
An important aspect that involves promoting soy yogurt into India is to make sure
that Indians will be exposed to our idea and that they will want to try it out. Internet and
media in India has come a long way since it was first introduced, most Indians are on the
Internet a lot during the day (Biztechreport). To promote soy yogurt in India, we would
make sure to have many different types of ads that appear on websites such as Google,
Yahoo, and Bing and other popular accessed websites. We would make sure to put a list
of different locations that our yogurt can be bought and found so that the customers know
where to get our new product. Silk would also promote our product on a more “healthy”
websites since our product targets a healthier crowd. Soy yogurt is popular in India
because they do not drink or eat dairy much, and this product would be a very good
aspect to India and adapt very well to their culture. Further, soy yogurt is going to be a
key product in a normal Indian diet; whether watching one‟s weight or preparing to
celebrate, grabbing a quick bite or sitting down with family to eat at night, Silk soy
yogurt creates foods that are wholesome and delicious.
To start off, we would practice the act of Promotional Advertising. We would go
into some of the most populous cities in India such as; Mumbai, Delhi, and Bangalore
and would give away our product one by one for no charge. We would provide the option
of all of our flavors and have them try out our product for free. This is a good tool to use
because people will like the fact that it is free, and they can try it out and see if they like it
(Slideshare). People in India have different tastes that they enjoy, and we would make
sure to cater to their needs. Giving away these cups of soy yogurt would definitely grab
the public‟s attention and it would help promote our product mouth-to-mouth marketing.

51
While giving out samples of our product, we would also be giving out coupons where
they can get 50% off of their Soy Yogurt purchase and we would be giving out different
promotions as well. Once they buy our product and enjoy it, we believe that they will
become loyal customers and keep buying our yogurt. The aim of the advertising will be
to create awareness about the silk brand, to highlight the quality, taste, and nutritional
benefits of the product. The advertisements would be primarily targeted at the segmented
of urban, middle class families. In addition, the market for health and wellness foods in
India is fast growing. Average yogurt sales in India have increased by 18% to reach an
industry value of 6.5 billion dollars. The yogurt and dairy industry in India is expected to
continue because of multiple drivers like health-consciousness, increased awareness,
quickly changing life-styles, and income levels.
Since television, radio, and newspaper seem to be the most popular types of
advertising in India (Muse). Silk would be initially targeting the urban, middle class
families. Television strategies‟ would include increasing brand equity of Silk in India,
and focus on building the awareness of Silk soy yogurt. Silk would make sure to
promote our product in all three categories. Since there are more than two dozen different
types of languages used in ads in India, we would have to make sure that when we are
promoting our product in the northern part of India, that we are using the Hindi language
(Muse). Indian advertising speaks to one of the world‟s most diverse populations, but
English is the most common language used throughout India. Most of the elite in India
speak English and that is where we would promote our product specifically so that they
can easily tell others about it as well. We would make sure that our soy yogurt would
give the people in India what they need such as nutrition. Since Indians do not eat or

52
drink dairy much, they will need to get their calcium and vitamin D, and we would make
sure that those nutrients are in our soy yogurt. Our way of showing the Indian people that
we use soy, and not milk will have to really make an impact on our advertising. While
giving out our free sample products, we will make sure to tell them that there is not milk
in the product, just soy. It is important to build the brand awareness of Silk as consumers
in India are highly aspirational and would love to be associated with Silk a U.S. class
brand product. Silk soy yogurt will be built around the product features, taste, health
benefits, appetite appeal and the snacking occasions.
A lot of India‟s newspapers are accessed online, and they include a lot of
advertising (Advertise India). Print media delivers detailed information about the Silk
brand and the nutritional and taste attributes of the product to the target middle class. The
top most popular Indian newspapers include; The Times of India, The Hindustan Times,
and the Indian Express (Online Newspapers). On the side of the websites, there are
multiple ads that are listed with the name of the product and the description. We would
make sure to include the different flavors and where to purchase Silk soy yogurt. There
are many billboards in India, and most billboards are in the big cities. Most of the cities
in India are full of buildings, but there are many places for an advertisement can go. A lot
of our advertising will go on bigger/smaller billboards around the big cities and on the
highways (BlueOceanMedia). In India, a lot of the main advertising is focused on the
highways billboards because this type of advertising surrounds customers with the
products presence everywhere (BlueOceanMedia).
Another popular idea is to broadcast our soy yogurt product in India through
television and the radio as well. Television advertisements would be targeted at the

53
urban, middle class families. Some of the most popular watched television channels in
India include; Doordarshan, ZeeBangla, and Amrita Television (SurfIndia) We would
want to market our product on the channel Doordarshan because it is a channel that
broadcasts movies, news, family programs, and health programs (SurfIndia) Our soy
yogurt would be perfect to promote on their channel because they show a lot of health
programs and this channel seems to cater to a wide range of people. The channel
ZeeBangla is a channel that broadcasts reality shows and mostly very popular shows that
are a “hit” in India. Our product would be a great add in during the commercials of this
television channel because it seems to be one of the more popular watched channels.
Amrita is a 24-hour satellite channel that delivers vibrant, youthful, and value-oriented
programs that cater to the entire family (SurfIndia) This channel would be a great
promotion opportunity because it is broadcasting at all hours of the day so many people
would have the chance to see it.
Another important way to promote our soy yogurt would be to make a
commercial and have it be played during the commercials on some of India‟s most
popular radio stations. Many of the workers in India listen to the radio, and it provides a
non-stop entertainment to all of its listeners (SurfIndia.) Some of India‟s most popular
listened to radio stations include; Chennai Live 104.8 FM, Radio Jalwa, and
Dhamaal24.com (SurfIndia.) All three of these stations would be great possibilities for
our product to be launched. Chennai Live 104.8 would be a great station to have our
product be marketed on because they are India‟s most popular station since they provide
a talk show and great music in English and Tamil (SurfIndia.) They are very popular
because they offer talks about lifestyle and what is new to eat. Radio Jalwa is another

54
popular station that is very popular and they are most listened to for their wide variety of
music. Dhamaal24.com is an online radio station and they air on ten stations around the
country (SurfIndia), which would benefit our advertising.
To generate publicity for our product, we will go to the rural areas in India that
are not too far from the big cities, and give out our soy yogurt. We are going to go to the
areas, which are less fortunate so that they can eat our yogurt enjoy something healthy.
We will link up with one of India‟s most well-known charity called Feed The Children,
and help them raise money and all the proceeds will go to them. Silk will make sure that
it is advertised and that the communities know that we are helping out with this charity.
Hoping that we will get a lot of positive publicity, and that people will want to try our
product even more. On a personal selling standpoint, we will make hire street teams to go
around the city and give out some of our coupons and make sure that they explain the
details about our product such as the fact that it is a yogurt but there is not dairy involved,
that it is a healthier option, the different flavors that we provide, and where to purchase
our product as well. The purpose of promotions such as coupons, contests, premiums, is
to gain attention and to lead the consumers to purchase the product. Silk soy yogurt is in
the introduction stage, the main goal is to encourage trials and thereby adoption. Silk soy
yogurt is also targeting malnutrition throughout India, figures show that about 30% of
children in India suffer from malnutrition. Silk soy yogurt will setup a factory that
produces nutritional yogurt for poor people, the project will integrate into the rural
community through its link with farmers around and India who serve in the factory. The
project is not designed to make profits but does have benefits for Silk. It is a good way
for the Silk company to learn how market soy yogurt in South Asia and can be used to

55
sell in markets like India. In addition, with this promotional mix Silk will fight
malnutrition and help spread economic prosperity in rural Indian villages, Silk shows the
commitment to the Indian market. All in all, Silk has entered India with a long term
strategy which can help establish Silk as a respected corporate entity.

56
Works Cited
"10 Interesting Facts about Hinduism." In Fact Collaborative 10 Interesting Facts about
Hinduism Comments. N.p., n.d. Web. 12 Mar. 2013.
"Advertising in India." Advertising in India. N.p., n.d. Web. 02 Apr. 2013.
"Average Salary In India." Average Salary Survey. N.p., 5 Apr. 2013. Web. 7 Apr. 2013.
"Balance of Payments." Balance of Payments. Tutor2net, n.d. Web. 27 Mar. 2013.
"Bharti Walmart Stores - Overview." Bharti Walmart Stores - Overview. Walmart, n.d.
Web. 8 Apr. 2013.
"Central Intelligence Agency." The World Factbook. CIA, n.d. Web. 12 Mar. 2013.
"Cost of Living in India." Prices in India. N.p., n.d. Web. 08 Apr. 2013.
"Discovering Indian Cuisine." About.com Indian Food. N.p., n.d. Web. 11 Mar. 2013.
"Ethnic Origin of People of India." Ethnic Origin of People of India. N.p., n.d. Web. 18
Mar. 2013.
"Evolving Demand in India Could Boost U.S. Soy." Southeast Farm Press. N.p., n.d.
Web. 08 Apr. 2013.
"FM Radio Stations." India, Online FM Music, Indian , in India. N.p., n.d. Web. 02 Apr.
2013.
"Fun Facts about India." : Religion Facts about India. N.p., n.d. Web. 12 Mar. 2013.
"Highway Advertising." Outdoor Advertising Agency Outofhome Advertising Outdoor
Media Advertising Blue Ocean Media RSS. N.p., n.d. Web. 02 Apr. 2013.
"Hindu Beliefs." - ReligionFacts. N.p., n.d. Web. 12 Mar. 2013.
"Hinduism." Some Interesting Facts about . N.p., n.d. Web. 12 Mar. 2013.
"History of India." Brief History Of India. History of India, n.d. Web. 11 Mar. 2013.

57
"How Indian Railways Impact the Economy." How Indian Railways Impact the
Economy. Headlines of India, 2011. Web. 27 Mar. 2013.
"India - Labor Force - Historical Data Graphs per Year." India - Labor Force -
Historical Data Graphs per Year. Index Mundi, 1 Jan. 2011. Web. 24 Mar.
2013. <http://www.indexmundi.com/g/g.aspx?v=72>.
"India - Unemployment Rate - Historical Data Graphs per Year." India -
Unemployment Rate - Historical Data Graphs per Year. Index Mundi, 1 Jan.
2011. Web. 24 Mar. 2013. <http://www.indexmundi.com/g/g.aspx?v=74>.
"India Demographics Profile 2012." India Demographics Profile 2012. N.p., n.d. Web. 18
Mar. 2013.
"India Infrastructure." India Infrastructure. Maps of India, 3 Dec. 2012. Web. 27 Mar.
2013.
"India Transport Sector." Transport In India. Worldbank, 2 Mar. 2011. Web. 27 Mar.
2013.
"India Urbanization." - Demographics. N.p., n.d. Web. 20 Mar. 2013.
"Indian Languages." ThinkQuest. Oracle Foundation, n.d. Web. 12 Mar. 2013.
"Indian Railways." - Railways in India, Railway System in India, Rail Transport in India.
TradeChakra, 2008. Web. 27 Mar. 2013.
"India's 28 States." About.com Geography. About, 16 Sept. 2011. Web. 27 Mar. 2013.
"India's Balance of Payments." Balance of Payments. TheHindu, n.d. Web. 24 Mar. 2013.
"India's Population 2013." - Population of India 2013- Current Population of India in
2013. India Online Pages, Jan. 2013. Web. 27 Mar. 2013.
"Internet Advertising in India." Home. N.p., n.d. Web. 02 Apr. 2013.

58
"Lactose Intolerance World Map." ForumBiodiversitycom Anthropology Biodiversity
Forum ABF RSS. N.p., n.d. Web. 07 Apr. 2013.
"Latest News." MUSE News RSS. N.p., n.d. Web. 02 Apr. 2013.
"Living in India." Expatriate Community for Expats Worldwide. N.p., n.d. Web. 11 Mar.
2013.
"Oh Yeah Protein Bars." Proteins India. N.p., n.d. Web. 08 Apr. 2013.
"People of India." Facts about India. N.p., n.d. Web. 18 Mar. 2013.
"Population Distribution in India." - Population Map of India. N.p., n.d. Web. 18 Mar.
2013.
"Social Institutions, Basic Concepts of Sociology Guide." Social Institutions, Basic
Concept"What Is a Caste System?" WiseGEEK. N.p., n.d. Web. 11 Mar. 2013.s of
Sociology Guide. Sociology Guide, n.d. Web. 11 Mar. 2013.
"Television Channels." Indian Directory, TV Channels Online Guide of India, Popular in
India. N.p., n.d. Web. 02 Apr. 2013.
"Top 50 Indian Newspapers." Indian Online Newspapers. N.p., n.d. Web. 02 Apr. 2013.
"Trade Profiles." Trade Profiles. The World Trade Organization, Sept. 2012. Web. 24
Mar. 2013.
<http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Language=
E>.
"Transport System in India." Allprojectreports. Project Reports, 13 Sept. 2011. Web. 27
Mar. 2013.
"Walmart India Retail Units." Walmart Corporate. Walmart, n.d. Web. 8 Apr. 2013.

59
"Yoghurt and Sour Milk Products in India." Yoghurt and Sour Milk Products in India.
N.p., n.d. Web. 08 Apr. 2013.
<http://www.forumbiodiversity.com/showthread.php/2646-Lactose-Intolerance-World-
Map>.
Acharya, Nupur. "India Imposes Extra Tax on Local, Foreign Companies." The Wall
Street Journal. N.p., 28 Feb. 2013. Web. 20 Mar. 2013.
<http://online.wsj.com/article/SB100014241278873246624045783319415638560
94.html>.
Balance of Payments. TheHindu, 11 Nov. 2011. Web.
Boessen, Chris, Dr. Final Report: Exporting Value Added Soy Products to India. Rep.
Federal State Marketing Improvement Program (FSMIP), 2000. Web. 7 Apr. 2013.
Cateora, Philip R., Mary C. Gilly, and John L. Graham. International Marketing.
Fifteenth ed. N.p.: McGraw-Hill Companies, 2011. Print.
Chhibber, Narinder K. "Fast Growth of Mobile Communications in India: Lessons for
Emerging Markets." Fast Growth of Mobile Communications in India: Lessons for
Emerging Markets. Marshall USC, 13 Jan. 2012. Web.
Daniel, Aharon. "History of India." History of India. Tripod, n.d. Web. 11 Mar. 2013.
Daniel, Aharon. "Official Language of India." Official Language of India. N.p., n.d.
Esselborn, Priya. "Vegetarians Developing a Taste for Meat | Globalization | DW.DE |
02.01.2013." DW.DE. N.p., 1 Feb. 2013. Web. 8 Apr. 2013.
Factbook, CIA World. "Age Structure 0-14 Years Statistics - Countries Compared -
People Data on NationMaster." NationMaster.com. NationMaster, n.d. Web. 18 Mar.
2013.

60
Ghai, Rajmeet. "China Market - a Threat to Indian Market." China Market - a Threat to
Indian Market. CareerRide, n.d. Web. 11 Mar. 2013.
Harjani, Ansuya. "Why India Struggles to Deliver Its Growth Potential." CNBC.com.
N.p., 29 Nov. 2012. Web. 20 Mar. 2013. <http://www.cnbc.com/id/50004600>.
Jacob, Sarah. "France's Groupe Danone to Merge Distribution in India with Probiotic
Drinks Joint Venture Yakult Danone." The Economic Times, 11 July 2011. Web. 10 Apr.
2013.
Jain, Sudeep. "India's Current Account Deficit Hits Record." Wall Street Journal, 31
Dec. 2012. Web. 24 Mar. 2013.
<http://online.wsj.com/article/SB10001424127887324274404578213450
883093748.html>.
Lal, Vinay. "Manas: Culture, Cuisine of India, Vegetarianism." Manas: Culture, Cuisine
of India, Vegetarianism. N.p., n.d. Web. 8 Apr. 2013.
Prasad, Eswar S. "Some New Perspectives on India's Approach to Capital Account
Liberalization." NBER. The National Bureau of Economic Research, Jan. 2009. Web. 27
Mar. 2013.
Prasad, Eswar S. "Some New Perspectives on India's Approach to Capital Account
Liberalization." NBER. The National Bureau of Economic Research, Jan. 2012. Web. 26
Mar. 2013.
Riley, Geoff. "Balance of Payments." Balance of Payments. Tutor2u, 23 Sept. 2012.
Web. 26 Mar. 2013.
Rinal, M. "History of Indian Railways." History of Indian Railways. Rail India, n.d. Web.
11 Mar. 2013.

61
Singh, Namrata. "Household Income in Rural India Grew 11% per Annum in 5 Years:
Report." Household of India. Times of India, 21 Nov. 2012. Web. 26 Mar. 2013.
Singh, Sanjay Kumar. "Understanding Cultural Architectures Of Organisations In India:
A Study." Singapore Management Review 31.2 (2009): 71-95. Business Source Elite.
Web. 10 Mar. 2013.
United States Department of Labor. Bureau of Labor Statistics. India's Organized
Manufacturing Sector. 2011. Web. <http://www.bls.gov/fls/india.htm>.

Silk Soy Yogurt Paper

Recomendados

Recomendados

Más contenido relacionado

Destacado

Destacado (20)

Similar a Silk Soy Yogurt Paper

Similar a Silk Soy Yogurt Paper (20)

Último

Último (20)

Silk Soy Yogurt Paper