Elgi Tyres

For multinationals entering the India market, building a portfolio of

products for the local market is a bit like stepping into a landmine with eyes blindfolded. Not that it should be that way. But more and more MNCs seem to tie themselves up in tangles trying to resolve an apparently simple issue: what products should we pick up for the Indian market from our global basket?

The trouble is that in the continuum of choices extending from local product development to blind cherry-picking of existing global products, the equivocal preference seems to be not to reinvent the wheel. In the run-up to market entry, a great MNCs still prefer adopting a international template, a business model (which includes what products to launch) that has been tried and tested in other markets, rather than delve into a costly process of creating products tailored to local market needs.

 

Take the much-talked about case of Pepsi Foods. Its entry into India in the late eighties was heralded by a winner of a product concept: cheese crackers, a big-ticket item in all its North American markets. Even its potato chips brand, Ruffles, came in choice of flavours, that were all international favourites.

It took the company five long years of agony to realise one simple fact: consumer taste buds and eating habits differ around the world. Today, Pepsi Foods is trying to finally understand local nuances and operating conditions. And in the process attempting to juggle around its product portfolio. Its latest avatar, Pepsi-Frito Lay, is beginning to make some headway in the local markets by selling local preferences