International
Marketing
Marketing BFree in India
Melissa Boland
c00162634
Olwyn Walsh
c00156871
Mariane Mc Grath
c00162294
Aoife Lennon
c00142570
Rita Kelly
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International Marketing
Table of Contents
Plagiarism Declaration ........................................................................................................................ .
Introduction ........................................................................................................................................ 1
Market selection criteria .................................................................................................................... 2
Political environment ......................................................................................................................... 3
Legal environment ............................................................................................................................. 3
Socio- Cultural environnent ............................................................................................................... 7
Economic environnent ....................................................................................................................... 9
Demographic environment............................................................................................................... 11
Technological Environment ............................................................................................................. 12
Physical Environment ...................................................................................................................... 12
Market potential for BFree............................................................................................................... 13
Bibliography .................................................................................................................................... 15
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Plagiarism Declaration
Work submitted for assessment which does not include this
declaration will not be assessed.
DECLARATION
*I declare that all material in this submission e.g. thesis/essay/project/assignment is entirely my/our
own work except where duly acknowledged.
*I have cited the sources of all quotations, paraphrases, summaries of information, tables, diagrams
or other material; including software and other electronic media in which intellectual property rights
may reside.
*I have provided a complete bibliography of all works and sources used in the preparation of this
submission.
*I understand that failure to comply with the Institute’s regulations governing plagiarism constitutes a
serious offence.
Student Name: (Printed)
Student Number(s):
Signature(s):
Melissa Boland, Aofie Lennon, Mariane McGrath, Olwyn Walsh
C00162634, C00142570, C00162294, C00156871
Date:
Tuesday 18th November
Please note:
a)
b)
c)
* Individual declaration is required by each student for joint projects.
Where projects are submitted electronically, students are required to type their name under
signature.
The Institute regulations on plagiarism are set out in Section 10 of Examination and Assessment
Regulations published each year in the Student Handbook.
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Introduction
BFree is a gluten and wheat free based bread manufacturer. BFree removes wheat from breaded
products replacing the wheat with natural ingredients which acts as a substitute to hold the
ingredients together. These breads are high quality; gluten and wheat free so coeliac customers
can enjoy bread without negative side effects.
The product range includes soft white loafs/rolls, brown seeded loafs/rolls, bagels (plain or
multi-seed), multigrain wraps and a fajita kit. Traditionally in Ireland, there was a negative
perception of gluten free products. People considered them to be of low quality and nutritional
value. Ronan McNamee (co-founder of Cuisine de France) saw a gap in the market and worked
hard with a research team in University College Cork to address customers’ needs. They
launched the bread range known as BFree Food in 2011 and within six months they had become
the main market leaders, (Louise McBride, 2014). This encouraged them to add new products
to the range. Their latest product is gluten free multigrain fajita kit which addresses problems
that were researched in the market, the wraps are foldable and are more taste appealing than
existing products, (Louise McBride, 2014). Alex Murphy was made Managing Director of
BFree as she had worked as a brand manager for Cuisine de France and was deemed the best
to promote the brand, (Louise McBride, 2014).
As of 1st of October 2014, BFree has 11K likes on Facebook, (Facebook, 2014) and 2581
Twitter followers updated daily, (Twitter, 2014). BFree Foods already exports products abroad.
Products are distributed either ambient, frozen or MAP (Marketplace International, 2012). In
Britain their wraps sell in almost 400 Asda stores, their burger buns are offered in the Gourmet
Burger Kitchen chain (Louise McBride, 2014). In 2014, BFree began selling its products in the
USA, specifically, Michigan, Detroit and Chicago, with plans to launch in large supermarkets
in New Jersey and Woolworths in Australia (Louise McBride, 2014).
India
Research has shown that there has been a breakout of coeliac disease, called the “Coeliac Belt”,
affecting north India, Pakistan and Bangladesh, (Holmes and Moor, 2012). A study was done
in southern Derbyshire, UK between 1958 and 2008 with all white and Asian patients that had
been diagnosed as coeliac, amongst the 1305 patients, coeliac disease occurred more frequently
in Asian patients, especially women aged between 16 to 60 years, (Holmes and Moor, 2012).
No Asian men over 65 years was diagnosed. The study also showed that Asians are less likely
to adhere to a strict gluten-free diet, the researchers suggested that strategies need to be
developed to change this, (Holmes and Moor, 2012).
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More wheat is consumed as part of the diet in North India, the inhabitants possess more
haplotypes necessary for coeliac disease to develop (Holmes and Moor, 2012) whereas rice,
not wheat, is a dietary staple in south India, (Ramakrishna, 2011). The Indian Journal of
Medical Research called this “an impending epidemic”, (Ramakrishna, 2011). They suggested
it may be genetic, although this was not explored, possibly due to racial tensions between the
north and south of the country. Enterprise Ireland has an office in New Delhi (Enterprise
Ireland, 2014)
Market selection criteria
 High concentration of gluten intolerance among the population.
 A lot of people who want to eat healthy.
 Consumers with high buying power (willing to pay for expensive food), Mid to high
income
 Low to no competitors
 Population eats a lot of bread in their culture and seek to purchase bread
 Good infrastructure in relation to electricity, transportation, utilities and clean water
 A country where women are respected in business environments
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Political environment
The Indian political system is considered to be a federation with a parliamentary system. The
government is made up of three branches, the executive, the legislative and the judicial. The
political philosophy of India stems from Arthashastra and The Manusmriti which date back to
hundreds of years ago and are the most influential manuscripts in India. India’s central
philosophy is tolerance and pluralism.
The Executive consists of a president, Mr. Shri Pranab Mukherjee, head of the state
(Presidentofindia.nic.in, 2014), Vice-President Shri M. Hamid Ansari, head of government
(Vicepresidentofindia.nic.in, 2014), and the Council of Ministers who form the Cabinet
Ministry. The Legislative branch consists of the Upper house; Rajya Sabha (Council of States)
which is elected by state legislatures, they each serve six years at a time, and the Lower house;
Lok Sabha (House of the People) which is elected by the people directly and must serve five
years. The Judicial branch, formed from three different levels which are the Supreme Court,
High Courts, and trial courts. (Facts-about-india.com, 2014).
Candidates from different parties come together to elect their representative. Delimitation of
constituencies which is the whole country in terms of Lok Sabha elections and in particular the
case of Legislative Assembly elections is divided into constituencies. Next, after the
demarcation of constituency, is the voters list of each constituency is prepared and published.
The campaign is the next stage conducted by candidates and the parties followed by the last
step which is counting the votes, this is done 48 hours before polling. (Elections.in, 2014).
Election of representatives occurs every five years and the current president has been in power
since 2012. (Hindustan Times, 2012).
India has a multi-party system. The major political parties in India include: Bharatiya Janata
Party (BJP), Indian National Congress, Bahujan Samaj party (BSP), Samajwadi Party,
Communist Party of India (CPI), Communist Party of India-Marxist (CPI-M) Rashtriya Janata
Dal (RJD), National Congress Party (NCP), Janata Dal United (JDU) and Shiv Sena.
(Elections.in, 2014).
Stability
According to Taipei Times, India’s currency has hit its strongest level of this year with an
increase of 2% since the start of the year. The importance of strengthening the countries’
stability through foreign investors having bought US $8.51 billion worth of Indian stocks which
is helping the stability of the Indian market from returning to its slumping economy. (Teipei
times, 2014) (Arab news, 2014)
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Risks associated with India from an international company point of view include companies
having a lack of preparation, to fully understand and respect the Indian business culture,
presuming that India is like China and losing the business’s key unique selling point due to
intense competition. BFree need to understand the main political risks also which include that
India is a democracy country so there is no risk associated with failing, the countries business
laws and policies remain the same no matter what president is in power. Ongoing border
disputes between Pakistan and China were resolved this year which could have possibly been
a risk for BFree. (Amritt, 2014)
Quality of economic management:
India’s long term economic development is being undermined by Institutional shortcomings.
The government’s presence in the economy is extensive as there are many state owned
enterprises and wasteful subsidy programmes that all result in high budget deficits. In 2012,
India lifted barriers to FDI’s in many sectors such as retailing and aviation. However,
administrative bureaucracy imposes non-tariff barriers and burdensome investment rules
hamper private sector development and modernise the economy base. In 2014, India ranked
25th out of 41 countries for being the most free, making the country be the most unfree it ever
has been. (Heritage, 2014)
Home & host country relationships:
India’s neighbouring countries are Pakistan, Afghanistan, Sri Lanka and China. It is a fairly
complex geographically entity and India is said to be living in a dangerous surroundings.
Pakistan will remain as a permanent fixture on the India policy maker fixtures, for the
foreseeable future. In 1947, since the partition of India, the state relations between India and
Pakistan remained normal with one another. India’s view is becoming sharper on Afghanistan
in terms of security and strategic interests as India cannot afford the return of Taliban. A stable
and peaceful Afghanistan is no good if its territories are used for the purposes which are
inimical to the national interests of India. (Mea.gov.in, 2014)
According to the Indian Government
"India has long advocated the creation of an environment in Sri Lanka in which all
communities, particularly the Sri Lankan Tamils, are masters of their own destiny within the
framework of a united Sri Lanka. Our objective continues to remain the achievement of a future
for the Tamil community in Sri Lanka that is marked by equality, dignity, justice and selfrespect. In this context, India has been engaged with the Government of Sri Lanka at the highest
levels on its stated commitment to implement the 13th amendment to the Sri Lankan
Constitution and to go beyond, so as to achieve meaningful devolution of powers.” (Mea.gov.in,
2014)
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China is the only country in the region that qualifies for comparison with India in terms of
geographic and demographic dimensions, civilisation depth, and skilled manpower. India and
China have a long history of civilisation links. Soon after its own independence and the Maoist
in China, India reached out to the communist regime and was quick to do so. (Mea.gov.in,
2014)
Many experts look at China and India as having very similar paths politically and legally.
However both China and India have different paths and insights about FDI’s. India have in fact
made substantial improvements in the structural transformations by allowing FDI’s to compete
in markets that they were originally banned from. For Indian parties, focus groups are very
important for raising finance and also influencing voting’s. For democratic, post-colonial India,
allowing FDI’s to earn profits at the expense of the domestic firms is unimaginable. The
nationalist devotion of Indian leaders have voted into a suspicion of an open economy and they
often look away from FDI’s. (Freepatentsonline.com, 2014), (Nottingham blogs, 2014).
Legal environment
Type of legal system in use:
In 1947, India became an independent democratic republic, and on the 26th of November 1949,
its constitution, supreme law came into force. India’s legal system is common whose
infrastructure bears the influence of British colonial rule. There is a federal union that the
Indian constitution lays out among 28 states, 6 union territories and 1 national capital territory.
The Union and States are separated by executive and legislative branches compared to the
territories who is ruled by government. The Law generated by the Union is very important to
the States.
The Union executive nominal head is elected by President however the most power lies in the
hands of the Prime Minister who is the leader of the majority party and head of Union Council.
India is a bicameral Parliament who has an upper House of People (Rajya Sabha) and a lower
house (Lok Sabha). The head of the State executive is the Governor, some parties have a
unicameral legislative body known as Legislative Assembly and some parties are bicameral
with a Legislative Council also. (Ox libguides, 2014)
Import duties/ restrictions.
When importing goods into India, import duties and taxes are required whether private,
individual or a commercial entity. The valuation method of the import duties is based on CIF
(Cost, Insurance and Freight). Import duty in particular is calculated on the amount of the CIF
value and the landing charges. Some imports are calculated based on quantity measurements.
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Along with duties, taxes can also be added such as landing charges, countervailing duty, CESS
(local tax) and education CESS.
The rates of duties depends on many factors and therefore can be calculated accordingly. They
can be measured as a percentage of the value, specifically, and some are subject to no duty
such as laptops and other electronic products. The average duty rate is 11.9% however can
reach 150%.
There is no sales tax for imported goods in India and there is no minimum threshold in India,
for example all import duty is added onto the product regardless of their value. (Duty calculator,
2014)
Labelling/ packaging requirements
Every imported pre-packaged food item requires the packaging and labelling to comply with
the food safety and standards (packaging and labelling) regulations, 2011. The first thing is the
product needs a label containing information about the product. The regulation states that the
label should be in English and/or Hindu. All labels need to be accurate and must not be false
or misleading information. The label of the food needs to be applied correctly so it will remain
on the product and not get separated.
In India, the label should contain; product name and category of the food, ingredients that are
present in descending order of weight, logo of the company and nature of the product for
example BFree stating that it is a gluten free product, providing nutrition facts including
energy, carbohydrates, sugars and fat. The use by date and also the shelf life date should be
present, information on how to store the product, manufacturer’s details and contact details,
country of origin, weight of the product and directions of use. Imported products must meet
with these standards or they will not be allowed into the country. (Fssai.gov, 2011a) Legally,
products do not need to specify if they are gluten free, but do need to specify if they are
vegetarian.
Documentation requirements.
Some of the documents required for import clearance includes; the bill of entrance; this
indicates the total outward remittance of country that is regulated by the Reserve Bank and
Customs department. Commercial invoice; this is a required document for any business
transactions, especially required for import customs clearance for value appraisal by concerned
customs officials. Bill of Lading or also known as Airway bill; and this is for any sea shipment
or airway bill and is submitted with customs for import customs clearance purposes. It provides
details of cargo with terms of deliver. An import license is necessary for specific goods
clearance. Insurance certificate covers against importers declaration on terms of delivery.
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Purchase order/Letter of Credit; this reflects almost all terms and conditions of sale contract
which enables the value assessment to be carried out by the customs officials. These are the
main documents required by importers, there are other ones but they are not specifically
needed, (Howtoexportimport.com, 2014).
Socio- Cultural environnent
India is divided by a Caste System. This has remained hugely influential when it comes to
social affairs (Derengowski, 2014). People born into a specific caste do not ‘move up’ or marry
outside their own castes (Derengowski, 2014) (PBS, 2012). Caste’s were determined on the
basis of occupational expertise, with those at the top being closer to the Gods; Brahmin were
those who work in religious positions; Khsatriyas rule; Vaishyas work in trade and commerce;
Shudras were assigned to do other jobs (PBS, 2012). Below all of these are the Untouchables
who engage in professions that are impure and unwilling to be done by the upper castes, (PBS,
2012). The caste system is not decided on the basis of poverty and government procedures are
put in place to keep jobs for members the Untouchables. Unfortunately many of these young
people do not think that they can go to university and get better jobs, but boys will just get the
aforementioned government jobs when they are 16 for ₹12,000 (the equivalent to €153); the
girls think they will just get married and become housewives (PBS, 2012).
Philosophy
The Indian philosophy is based on looking after humans. The Indian tradition is to follow four
basic ends known as “purusharthas” of human life: Artha, Kama, Dharma and Moksha. The
Artha, covers professional activities of a man such as job, wealth, business property and any
other earthly material that helps to maintain his life. The Kama is where a man seeks pleasure
through activities and material objects. Being happy and pleasure is a basic need for men.The
Indian man accumulates artha for Kama. Artha and Kama should be worked towards dharma.
The Dharma means sustains or maintains life. Dharma supports society. This lays down duties
and obligations that are expected. The duties of all inter-relationships are outlined by dharma.
Indian traditions consider Moksha to be the ultimate goal of life. When the man is completely
free from all attachments, expectations and desires, the liberated soul attains moksha, (Indian
philosophy, 2014).
Language
India has 14 official languages, Hindi is the most spoken language with 41% of the population
speaking it and with a number of smaller languages spoken in different states (CIA, 2014).
English is the most widely spoken (India has the second largest population of English speakers
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globally), all business, third level education and most media is through English (India Tribune,
2014). A lot of younger people in India speak English, as well as those with a higher education
(India Tribune, 2014). English and/or Hindi are used for packaging products (Santander Trade,
2014).
India has a high context culture, unlike Ireland in India there is a silent language, it is
considered rude to overtly disagree and people could give a response you might like to hear
instead, or give non-verbal cues, (Kwintessential, 2014).
Religion
80.5% of the population are Hindu. 13.4% are Muslim (CIA, 2014). In the Hindu religion there
are yamas and niyamas, these are the ethical guidelines of how to behave. The ninth yama is
“mitahara” or moderate diet, which says that one should not over indulge with food and eat a
simple diet, although food is a huge part of the culture and social interactions (History of
Hinduism, 2010). Mitahara also states that Hindu’s should be vegetarian, although many do eat
meat (Patheos, 2013). In the Hindu religion cows are seen as sacred, they are not harmed and
beef is generally not eaten (Infosys, 2009). As part of the Islamic faith, many people practice
Ramadan, a fast during the daylight hours of the ninth month (About Religon, 2014).
Purchasing Behaviour
Typically the Indian consumer prefers lower prices than quality (gov.uk, 2014). The Indian
retail industry is worth USD$550 billion, although organised retail for accounts for below 10%
of this, (VenuGopalRao and Gopal, 2012). The food and grocery sector accounts for over 50%
of this in total, but 11% of organised retail (VenuGopalRao and Gopal, 2012). Bread is more
commonly bought in the South and home made in the North, (Reportlinker, 2014). Gluten free
food was traditionally bought in health stores but in major cities such as Punjab and Delhi it is
now found in retail stores as well, (All India Bread Manufacturers' Association, 2014).
Values and Attitudes
Individuals are defined by the group they belong to (their caste or family), (Kwintessential,
2014). The family unit is very important in Indian culture, there is great respect for elders and
the father is usual the head of the family (Kwintessential, 2014).
India is a male-dominated society, women generally do not do business, although it is accepted
that in western cultures they do and one should establish their position and title immediately to
gain acceptance (E Diplomat, 2014). There are female only areas on trains and cars (Infosys,
2009). Often marriages are arranged by fathers and brothers (India Tour, 2014). Although
alcohol is not taboo in India anymore, women generally do not drink (Sarkar, 2014).
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Indian food is generally served so guests can help themselves. Food is a huge element in Indian
culture and they eat together and enjoy their food. Meals usually consist of rice, Chapati (an
Indian flatbread), vegetable and lentil dishes, meat, a salad, yogurt, pickles or more and
Indian’s prefer to eat with their fingers on the right hand (Sarkar, 2014). The left hand is
considered unclean, it is not used for eating, picking up things or touching somebody (E
Diplomat, 2014).
Dos and Don’ts of doing business in India
India has a high density of store with 15 million small retail outlets (95% of these are under
500sq.ft in size). This means retailers have little buying power, (VenuGopalRao and Gopal,
2012). Organised food retailing is a new trend in India since the 1990’s and has been ranked
the third most attractive country for retail investment, (VenuGopalRao and Gopal, 2012).
In India there are many different social practices than in western cultures. Indians greet with
the phrase Namaste and bow as opposed to shaking hands. Indian men shake hands with foreign
male visitors or business partners, but not women. Women may offer their hand though, and
Indian women may shake hands with foreign women, but not men (eDiplomat, 2014). EDiplomat reported on the corporate culture business should follow when working in India;
 Business cards are used frequently in India and are seen as part of protocol.
 Decisions are generally made from the top of the business.
 General conversation should be made before business discussions, as it is rude otherwise.
 Business is slower than in western culture. It may take some time to proceed.
 Being offered drinks or food the norm as it is considered very rude to refuse. Also it is
normal to have initial business meetings in restaurants and spouses are often invited.
 Gifts are not given on the first meeting, but when a relationship is formed.
Economic Environment
Since its independence, India has a very strict control on private sectors, FDI and foreign trade.
In 1991, there was reform in which the country opened its markets and decreased control of
government over foreign trade (Marketline Advantage, 2014). Between 1992 and 2011, India
presented steady growth of 6.8% per year, it is considered one of the fastest growing economies
in the world. In 2012, supply limitations in global economy (due to global crisis, internal high
levels of corruption, poor infrastructure and inflation) decreased its growth to 4.7%. This could
have also been attributed to a decline in FDIs; just below USD $10 billion (Marketline
Advantage, 2014).
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India is part of the BRIC countries (emerging markets - Brazil, Russia, India and China).
According to the International Monetary Fund, India has one of the largest economies in the
world, worth around $1.758 trillion US dollars (€1.40 trillion) (World Population Statistics,
2014). In relation to growth, the economy faced oscillating figures in recent years; In 2013, the
Gross domestic product (GDP) was US$1,876.81billion, with a growth of 4.3% and it is
expected to have an increase in GDP for 2014 (MarketLine Advantage, 2014). The Gross
National Product (GNP) was of INR 99,965.15billion (approximately $1,999.30 USD) the
country’s best figure since 1950. The Indian workforce is also the second largest in the world,
with over 487 million workers (CIA, 2012).
Due to its large population, India is considered one of the world’s poorest countries attributable
to an estimated under $1,097 USD GDP per capita (CIA, 2012), this figure is estimated to
increase a further 10.4% (USD $1,218.51) by the end of 2014 (India Times, 2014). There are
huge inequalities in its society’s wealth distribution; a tenth of the richest households hold 33%
of wealth, while a tenth of the poorest hold 3% (Panagariya, 2014). The country’s average GDP
per capita is the lowest among the BRIC countries, with an annual income of USD $616 per
individual (Russia, the highest, with a monthly income of USD $4,129) (Business Standard,
2014). Among its society, 29% lives below the poverty line, with the majority of them (70%)
residing in rural areas.
The services sector in India promising for its economy’s growth and registered an increase of
14% in 2013, contributing to 57.9% of the country’s GDP, with IT being the most valuable at
US$86 billion (MarketLine Advantage, 2014). The Industry sector composed to 24.9% and
agriculture had a 17.2% to the country’s GDP (CIA, 2012). The main export partners are UAE
(12.3%), US (12.2% and China (5%) totalling US$490 billion in 2013 (MarketLine Advantage,
2014), and its main products are machinery, precious stones, chemicals, iron and steel and
petroleum based products(CIA, 2012). In relation to its imports – valued at US$714 billion,
India’s main partners are China (10.7%), the UAE (United Arab Emirates) (7.8%) and Saudi
Arabia (6.8%) in 2013 (MarketLine Advantage, 2014), and its main imports are Oil, machinery,
fertilizers, chemicals and precious stones (CIA, 2012).
India is a member of several economic blocs and has bureaucratic relations with most countries
in the world. For economy developing matters, India is part of the World Trade Organization
(WTO), United Nations Conference on Trade and Development (UNCTAD), International
Trade Centre (ITC) and the Economic and Social commission for Asia and the Pacific
(ESCAP) (Trade Portal of India, 2014).
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According to the World Bank, the Indian economy is expected to grow 5.6% by the end of
2015. Unemployment rates are 10.7% among the workforce (CIA, 2012). Inflation rates is one
of the highest of the BRICS, according to MarketLine Advantage, the Indian inflation was rated
at a high 9.5% in 2013 and its repurchase rate at an oscillating 8% (2014), indicating issues in
capital structure. The currency rate was quoted at INR 64.367 per $1 USD (XE, 2014).
In 2014, the Indian government introduced the “Make it in India Campaign” to facilitate
businesses, mainly multinationals, to create more jobs in the manufacturing sectors. Narendra
Modi, prime minister, wants to increase India’s buying power and move its poorer population
into middle class (Economic India Times, 2014). According to this year’s budget, the economic
growth can jump from below 5% to an estimated 7-8% by 2017. Finance Minister Arun Jaitley
has promised to eliminate the retrospective taxation system to attract FDIs as well as greater
expenditure on infrastructure (electricity network does not work properly, as well as ill built
roads, ports and transports) and to stabilise the country’s fragile economy. The budget also
contains plans to recapitalise state run banks and privatise them by selling shares to the public
- a risky move since the Indian national banks are very fragile due to lending to government
(Economist, 2014). These measures imposed by Modi, through the reforms proposed by this
year’s budget, as well as the global crisis which seems to have weakened, have a positive
impact on India’s economic outlook for the next two years as there is an indication for more
FDIs in the country and more demand for Indian products and services exports.
Demographic environment
The population of India is 1.27 billion (India Online Pages, 2014). Life expectancy in India is
67.8 years, and by 2025 it is projected to increase to 72 years (males) and 76 years (females)
(Bhat, 1974). The ratio by gender in India is 940 females per 1000 males. The reasons for
India’s swiftly rising population include: a high fertility rate and a rapid decline in mortality
rates, poverty, illiteracy and immigration from Nepal and Bangladesh. Presently, more than
50% of India’s population is below the age of 25 and over 65% are below the age of 35. Just
over 72% of people live in villages and just under 28% in towns and so-called urban clusters
(thehindu.com, 2014). In 2025, it is estimated that 40% of the country’s population will live in
urban centres. The world’s population is expected to rise to 9 billion by 2050. By this time
eight out of ten people will live in Asia.
The country has a literacy rate of 74.04%, which is categorised as follows: males 82.14% and
females 65.46%. The breakdown of population by religion is: Hinduism (80%) and Islam
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(13%) are the main religions, although in the state of Punjab Sikhs are the majority with 60%
(India Online Pages, 2014).
In terms of lifestyles, Sikhs are vegetarian as meditation is a large part of their faith; therefore
eating meat, drugs and alcohol impede their meditation practices. Muslims eat meat that is
hahal meat (meat slaughtered in accordance with Islamic laws). Some Hindus eat meat
sparingly and also shun fish, eggs, poultry, mushrooms, onions, garlic, tea, coffee and alcohol
(Faith and food.com, 2014; realsikhism.com, 2014)
Technological Environment
The Indian utilities industry (electricity, gas and water) is anticipated to be worth $137 billion
by the end of 2017. The companies which supply these services are Hyderabad Metropolitan
Water Supply & Sewerage Board, Ion Exchange (India) Ltd, and VA TECH WABAG Ltd
(MarketLine Industry Profile, 2014).
In India there are 63 million television sets and 562 television stations. Over four-and-a-half
million people have access to computers and 5 million people have access to the internet.
Newsprint circulation is dominated by 21 newspapers. There are 398 daily newspapers in
circulation. The body responsible for overseeing the press industry is the Ministry of
Information and Broadcasting. The Indian media are no stranger to censorship as the axis of
unethical cartels and criminal politics continue to loom large (pressreference.com, 2014)
When marketing products in India, one thing to remember is small packaging. According to
eurobrandsindia.com, “the reach of smaller packs is much wider, and considering India’s huge
population a lot of small packs can result in quite high overall sales.”
Physical Environment
India has many natural resources such as coal (fourth largest producer in the world), iron ore,
manganese, natural gas, diamonds and limestone. It has 63,974 kilometres of railways (just
over 18000 kilometres are electrified); 346 airports, 14500 kilometres of waterways and just
over four-and-a-half million kilometres of road (factmonster.com, 2014)
India’s main ports and harbours are Mumbai, Chennai and Kandla, which import and export a
variety
of
things
including
iron,
chemicals,
textiles,
coffee
and
timber
logs
(walkthroughindia.com, 2014)
India is a hot tropical country. Summer starts in April and lasts until the beginning of October,
when the monsoon season begins. The heat spikes in June when temperatures can reach 45
degrees centigrade and above (weatheronline.co.uk, 2014)
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Travel options
India’s rail system is the most heavily used railing system in the world as it is one of the largest.
The railway consist of approximately 39000 miles worth of railways lines. The rails have a
range of different types; single track lines to broad-gauge standard lines. Most things can be
transported through the India railway to around the world or vice versa. Over the years, India’s
road systems have also improved exceptionally, 950,000 miles worth of roads throughout the
country. Even with this development, there is still some areas in India that there is no roads and
the closest bus stop is a few hours walk away. Finally, there is two major Indian international
flights; Air India and Indian Airlines. Therefore altogether India can export or import from the
three major modes discussed; rail, road and air. The government have control and ownership
over the railway systems, roads and airlines, meaning the government has a lot of control in
terms of exporting and importing of the country, (Facts-about-india.com, 2014).
Market potential for BFree
Estimating the size of the market
India’s estimated population size is to overtake China as the world’s most populous country by
2028. India is estimated to grow from approx. 1.2 billion 2010, 1.35 billion by 2020 and 1.45
billion by 2030. (BBC News, 2013)
The coeliac disease is expected to grow within the next few years as more and more people are
becoming aware of the disease. North India will have a higher percentage of coeliac than South
due to their gluten based diet.
Poverty in India is expected to fall from 51% in 1990 to approx. 22% in 2015. Indians living
on $1.25 a day are considered poor in the country. China and India combined, people living in
poverty between 1990 and 2005 has declined by approx. 455 million with a further 320 million
to fall out of poverty by 2015. The global poverty rate is expected to fall under 15% which is
under the global target of 23%. (Times of India, 2011)
Potential Demand and Potential Target Market
The bread consumption per capita is about 1.5kg/1.75kg in different zones. The consumption
of bought bread is divided by 27% in the North, 32% in the South, 23% in the West and 18%
in the East (All India Bread Manufacturers' Association, 2014), although more bread is eaten
in the North, (Reportlinker, 2014). In Northern India bread is seen as a dietary staple. The bread
industry in India is growing at 6% rate, with a growth of 8% in the organised sector (All India
Bread Manufacturers' Association, 2014).
Page | 13
The usage of gluten free foods are primarily by those who have been diagnosed as coeliac
(Reportlinker, 2014). It is reported that 1 in 310 people in North India has coeliac disease
(Ramakrishna, 2011), which is a huge population, considering 7% of the world’s inhabitants
live here (Indian Express, 2012).
Key competitors
India produces many gluten free grains are sold at reasonable prices – kuttu, jowar, bajra,
makki, ragi, etc. All the ingredients needed for preparing a gluten free meal are mostly grown
locally. Packaged gluten free food products are sold at a premium stores and online (Celiac
India, 2014) - Orgran, Sai Foods, Godrej's Nature Basket, Pristine Organics, Atta’s among
others (Courson, 2009). Most of these brands focus on varied gluten free flours and snacks
such as cookies and biscuits.
In India, brands are harder to include notes on gluten free products on packaging, since the
Indian market does not contain the gluten free label - as it is not mandatory, even though there
are several gluten free brands selling in India. However, due to inaccessibility and high prices
of products, many people turn to buying the ingredients in a store or street market and cooking
and baking their meals themselves (Negi and Poddar, 2011).
Marketing Channels for BFree in India
Octane is India’s top email marketing service provider. According to its latest annual report,
entitled “Igniting Engagement - The State of E-Marketing in India,” 35% of marketers in India
prefer to communicate with consumers using email and social media (Octane, 2014). 72% of
marketers also want increased personalisation in their marketing messages. BFree could take
advantage of this knowledge by teaming up with marketers and distributors to tailor their
marketing ideas to the population.
BFree could also look into product placement on TV shows in India. There are three types of
placement: “passive product shots, where there is no interaction with the brand; active
placement, where there is limited interaction; or a hyperactive placement, where there is an
aggressive usage of the product in the show.” This would cost money as “networks charge a
significant premium.” (campaignindia.in, 2011)
Page | 14
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