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Developing a Market Entry Strategy for India: The Competitive Landscape and Identifying Target Market

Developing a Market Entry Strategy for India: The Competitive Landscape and Identifying Target Market

India is emerging as a global powerhouse. India is a huge market and is witnessing rapid economic growth. It is expected to become a global hub for technology and manufacturing. It is undergoing massive urbanization. India has a strong legal system, democratic structure, broad market economy, and entrepreneurial and aspirational consumer base with varied interests and patterns of consumption. With India’s population surpassing China, no doubt there are great opportunities for development. we discuss Developing a Market Entry Strategy for India: The Competitive Landscape and Identifying Target Market

For entry into India, it is essential to identify the target market and engage with a good partner who is acquainted with the local market. Exploring the various market options in India is important. New-to-market businesses must strategically plan their entry into Indian Market. Market Entry requires careful analysis of consumer preferences, sales channels, distribution and marketing practices, etc. Initially, businesses need to make a series of choices that demand in-depth research into specific sectors, different audiences they want to cater to and various markets they want to address, etc.

Key Reasons for Developing a Strong Market Entry Strategy for India

  1. Optimization of Products and Services

A strong market entry strategy helps optimize the products according to the needs of the consumers. Various lifestyles and trends across different regions lead to the demand for varied products and services. Thus, making it important for the foreign business to optimize its products depending upon the region in which it operates. 

2. Price Sensitivity

Your market Entry Strategy must include the prince sensitivity issue prevailing in India. As the disposal income of Indians is comparatively lower compared to other countries. The market entry strategy must address the price sensitivity issue to streamline the production line for affordability.

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3. FDI in India

Indian Government has made significant changes in the laws and policies making them attractive for FDI in India. Almost all sectors have been allowed to invest under the automatic route. Favourable schemes have been introduced which promote India’s development initiative and increased FDI investment. All these measures are taken to ensure that a foreign entity does not face any issues while formulating a market entry strategy for India.

4. Digitization in India

India is surfacing as a global leader in technology with the largest and most highly qualified workforce in the world. Every sphere in India has been digitized be it banking to compliance. As the government has taken the initiative of Digital India, other sectors are also changing their way of functioning. The government is offering various subsidies to businesses inducing technology in India. Foreign invitations to invest in India will further induce the latest technology. Therefore, while formulating a market entry strategy, it is essential to have harmony between the customer needs and new and latest technology.  

5. Simplified Laws and Regulations

To increase foreign participation and ease doing business in India, the government has simplified its laws and regulatory requirements. The laws encourage foreign companies to establish a subsidiary company or liaison office or branch office to handle the business operations in India. This makes the market entry strategy of a foreign company include opening a registered office in India.

6. Competitive Environment

The success of the market entry strategy depends on how well the competitive environment of the country has been analyzed. Even though competitive analysis is an expensive process but is needed to make good and insightful decisions.

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Analysis of the Competitive Landscape for Market Entry Strategy in India

Analyzing the competitive landscape is important to identify the potential threats, opportunities, and areas where there is scope for development and improvement.

  1. Product Analysis

To have a competitive edge over your competitors in terms of your product, you must conduct a product analysis of your competitor’s products. Product Analysis helps in framing the right market entry strategy. It identifies the unique selling proposition (USP) of the competitor’s product over your product.

2. Brand Analysis

Brand analysis is equally important for market entry strategy[1] as Product Analysis. It identifies whether your competitors are targeting the same audience as yours or not. It helps in comparing the brand value of your product to that of your competitor.

3. Marketing Analysis

Market Analysis of Competitors helps identify the channels used by them to market their products. It is your decision whether you want to go for a similar distribution channel or not.

4. Technological Competitiveness

Analyzing the technological competitiveness of your competitors is important for formulating a market entry strategy. It will help identify the technology used for the manufacture and promotion of products and its scope in business success.

5. End Customer Analysis

This Analysis focuses on identifying the end user of the product of your competitors and help you understand the extent to which the customers engage with your competitor’s products. End customer analysis also helps identify the platform used by the competitors to connect with their end customers. This analysis is crucial to determine the areas where your competitor is in a better position than you.

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Target Markets for Market Entry Strategy for India

We have identified a few categories of target markets that are in demand in India:

  1. Premium Brands

Even though India is promoting the use of ‘made in India’ products, the demand for overseas premium brands still exists. Because there is a rise in the level of disposable income, the demand for premium brands especially those which have good quality and durability is on the rise in India.

 2. Fast-moving consumer goods

Although there has been a surge in the ‘vocal for local’ campaigns in India, there are still some global brands that hold dominant positions in India. This implies that building a strong brand image will help create a firm foothold in the Indian market.

3. Youth Brands

In urban cities, fast reliable internet access and career opportunities have enabled young Indians to develop a global outlook and create a fertile ground for international brands.


The Indian market is burgeoning with the introduction of a new FDI policy and a reduction in the trade barrier. The latest technology, highly qualified workforce, easy access to the other Asian markets, and a large number of ports have made India a preferred option for foreign entities to enter. Foreign entities in India can benefit from a large consumer base having varied tastes in products. In addition to this, the Indian government is also offering subsidies and coming up with new schemes to turn India into a global hub for foreign entities. Therefore, it is important to develop a strong market entry strategy for India by conducting a competitive analysis and identifying ideal target market.

Read our Article:What is the Best Market Entry Strategy for India?

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