MNCS In The Indian Arena – VerboLabs

The last two decades have seen an inflow of different foreign brands in every sphere of business. MNCs, see the opening of Indian markets as a tempting proposition. They consider India not only as a business hub for global clients but also as an export base. These are mostly automobile as well as consumer durable. For example, Hyundai Motor Co. has a major place in the car-making industry and eyes India as the export hub for other coming markets too.

However, history has seen that not all MNCs have been successful. This being said, India is still a tempting draw for MNCs even if their initial efforts fail. Several companies like Coca-Cola Co., came, had to go back, and then have re-entered the Indian market and have succeeded.

In this global marketplace, it is branding strategies that MNCs need to concentrate on. They use various kinds of strategies that depend on the products being offered, the structure of the organization, and the local needs. Such as,

Tailoring their offerings

MNCs have realized that they need to meet the requirements of the Indian consumer and change or alter their products accordingly. For example – Hyundai, when it entered the Indian market, it put up a team dedicated to understanding India. They understood that the Indian public was ready for an alternative to the Maruti 800 and hence changed their vehicle to the Santro from the Accent. They brought in local changes like high ground clearance as well as rounded lines as per Indian tastes.

Localizing of brands

MNCs have understood that brands also need to be localized to meet the tastes and requirements of consumers. For example –Microsoft India makes software in several Indian languages. This had to be done to meet local needs and to catch a large market. Localizing is imperative for a brand to enter a new market and find a place with a new audience. It needs to meet cultural perceptions and have volume controls for every value. Only then can the audience’s attention be caught. Adapting products and attaining local brands – these are the major ways MNCs are capturing and succeeding in Indian Markets.

Localization of ads

The way MNCs are creating brand awareness and visibility is worth studying. They localize and traditional ads to match their brands. The traditional ways were print advertisements, television, Indian celebrity endorsements which were all great tools. They enhanced the brand visibility. But now, with the advent of technology and the digital world becoming so much a part of Indian society, newer forms have come up. Facebook and Twitter have found a major place in contributing to brand awareness.

MNCs have also managed to keep hold of their autonomy and being able to respond faster to a changing marketplace by having local workforces. HUL is one broad example.


All in all, it is the local adaptation that gets MNCs into any market. GSK which specifically uses a global distribution model instead used a rural-based and customized model in India. It made its sales personnel reach out to medical practitioners in rural areas and thus managed to spread products and health awareness. To reach out to us for any inquiry contact at

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