SUMMER INTERNSHIP PROJECT REPORT

ON
“CONSUMER PERCEPTION ON INTERNATIONAL AND LOCAL
BRANDS IN INDIAN RETAIL INDUSTRY”

Submitted in partial fulfilment of the requirements for the Post Graduate Diploma
in Management
2019-21
Under the Guidance of

Industry Mentor Submitted By:

Ms. Rohini Sharma Rohan Chandna
Sales Manager Batch 25{IMS Ghaziabad}
The Capital Box
 CERTIFICATE OF ORIGINALITY

I, Rohan Chandna hereby declare that this Summer Internship Project is my own work and that,
to the best of my knowledge and belief, it reproduces no material previously published or written
that has been accepted for the award of any other degree of diploma, except where due
acknowledgement has been made in the text.

Rohan Chandna

Date

______________

1
 CERTIFICATE

This is to certify that Mr. Rohan Chandna PGDM (2018-20 Batch) a student of I.M.S.
Ghaziabad, has undertaken the project on Report on “Consumer perception towards
International and local brands in Indian retail industry”. To the best of my knowledge, the
survey, data collection, & analysis work for preparing the project has been carried out by the
student in partial fulfilment of the requirements for the award of PGDM, under my guidance and
supervision.
I am satisfied with the work of Mr. Rohan Chandna

Date:

Ms. Rohini Sharma

(Signature)

2
 ACKNOWLEDGEMENT

I would like to take this opportunity to express my gratitude towards Prof. Alok Pandey, Director,
IMS Ghaziabad, for giving me this opportunity to undergo my Summer Internship with The Capital
Box.

I would like to thank my Industry mentor Ms. Rohini Sharma, The Capital Box for her
thoughtfulness and generosity that empowered & encouraged me to do my best.

I would also like to express a deep sense of gratitude towards the company and all the mentors, for
their constant support and encouragement during the different phases of the project.

3
 EXECUTIVE SYNOPSIS

Purpose – The purpose of this research is to investigate, in an emerging market,

Consumer attitudes towards local and foreign brand purchases against a background of
factors like Culture, Country of Origin, Product quality and services. A comprehensive
model broadens knowledge on consumer behavior by incorporating the above
mentioned factors.

Design/methodology/approach- India is the emerging market studied. A total of 18

respondents were interviewed face-to-face using a semi structured questionnaire.

Findings- It was found that the quality of global brands was perceived to be generally
higher and superior to local brands. Most consumers also associated greater accessibility
of foreign brands in the Indian market with better quality at lower prices. Indian
consumers were not prejudiced against foreign brand names. In fact, they evaluated them
higher on technology, quality, status and esteem than Indian brands and attributed higher
credibility to those countries of origin.

Research Limitations/implications- This study adds to the body of knowledge about

consumer behavior and their perceptions of global vs. local brands, in a massive and fast
Developing market.

Managerial Implications- As companies become global, managers must possess a

thorough understanding of the attitudinal and behavioral characteristics of emerging
consumer markets, because what is known about consumers in one part of the world is
not applicable to consumers in other parts.

4
 Table of Content

S.NO TOPIC Page No.

1 Executive Synopsis 4

2 Table of Content 5

3 Introduction 6-7

4 Company Profile 8-15

5 Literature Review 16-19

6 Need Scope And Objective Of Study 20-21

7 Research Methodology 20-21

8 Data Analysis And Interpretation 21-22

9 Findings 23-24

10 Conclusion and Recommendation 25

11 Limitation Of study 26

12 Key Learnings 27

13 Reference 28

5
 Chapter One

Introduction

1.1. Introduction
This study aims in understanding consumer perception of global brands vs. local brands in the
Indian retail industry. The Indian retail industry is undertaken for the study for the simple reason
being the strong growth of the retail sector in India. Organized retailing is at its infancy in India
and presents huge growth opportunity. Standing on the threshold of a retail revolution and
witnessing a fast changing retail landscape, India is all set to experience the phenomenon of a
global village. India presents a grand opportunity to the world at large, to use it as a business hub.

India is very often called as the nation of the ‘dukandars’ (shop keepers) - around 12 million
retailers- consisting of more retail shops than those in the rest of the world put together. The retail
trade is highly fragmented in nature and it is often remarked that retail in India is nascent and
mostly unorganized. The local bania or kirana store, the paanwala and the vegetable vendor who
are very much a part of the Indian retail landscape are termed together by many as the unorganized
sector. While it is true that they do not use technology, they are well aware of the needs and wants
of their customers, are aware of their likes and dislikes and they know what and how much to
stock. Many of them also know their customers by name and offer add-on services like free home
delivery and credit facilities. This is the traditional form of retail in India.

However the business of retail in India has seen significant changes in the last few years. We have
seen the emergence of new formats and the application of global concepts and constructs albeit
with modifications to suit the Indian environment. The emergence of store formats like Pantaloons,
Shoppers Stop, Big Bazaar and Westside have changed the retail scenario in our country thus
making retail from ‘unorganized’ to ‘organized’. Many international retailers have also entered the
Indian market on the strength of rising affluence levels of the young Indian population along with
the heightened awareness of global brands, international shopping experiences and the increased
availability of retail real estate space. Development of India as a sourcing hub will further make
India an attractive retail opportunity for the global retailers. Retailers such as Wal-Mart, GAP,
Tesco, JC Penney, H&M, Karstadt-Quelle, Sears (Kmart), etc are stepping up their sourcing
requirements from India and moving from third-party buying offices to establishing their own
wholly owned / wholly managed sourcing and buying offices and this can only increase that
attractiveness for the global players

Globalization has a lot to do with consumers. Consumers in India are now becoming more
informed, sophisticated and demanding. India is one of the youngest countries in the world, and
the attitudes of the Indian consumers are changing at a rapid pace.

6
Globalization more and more Indians are becoming aware of westernized products and they feel
that possession of global brands in front of their social groups (friends and families) gives them a
sense of status and prestige. It is therefore proposed that products and possessions seem to have
more of symbolic attributes rather than functional attributes. This study therefore focuses on the
reasons as to why consumers in emerging markets particularly India prefer foreign brands over
local brands and it also proves that consumption is carried out for reasons such as symbolic
consumption, materialism and depiction of high status and image. However this study is restricted
to purely to the upper middle classes.

Factors like Culture, Country of Origin, Materialism, Product and Service Quality exert a strong
influence on brand image. These factors have been explored and their influence on consumer
perceptions which finally leads them to the purchase of global brands has been explained. There
seems to exist a gap in the Indian markets for young-relatively low cost retailer brands like H&M,
Primark and Zara. This gap is evident due to the international fashion luxury brands that have been
expanding into India over the past few years as compared to the high street brands. With brands
like Gucci, Versace, Valentino, Chanel as well as the Indian designer wear brands such as Ritu
Kumar, Rocky S, etc on the opposite end there are the unorganized local stores, selling their
products in small family run retail outlets, hence leaving very few fashion brands operating in the
middle end of the market. There are not many options left for young people who want speedy
fashion at reasonable prices. In absence of strong brands in the women’s wear segment, for women
who are looking for stylized garments, be it casual or formal at reasonable prices, the current
scenario is unbalanced with either the price element or the style element. Hence there is a need for
brands for which can balance both the price and the style element

7
 Chapter Two
COMPANY PROFILE
Since July 14 2016, the day the capital box was founded, integrity has been there core value. The
Capital Box design personal solutions to protect their clients’ unique lifestyles and offer lasting
peace of mind. They strive to build long-lasting relationships with clients through attention to
detail and commitment to superior service. They provide unparalleled consulting services,
financial products and risk management strategies to individuals, families and businesses,
specializing in niche markets and portfolios with complex needs.

They firmly believe that it all starts with having a clear vision of your unique goals. With this
clarity, they combine objective advice and experience-led execution to bring the collective vision
to life. They offer every client true peace of mind. They define peace of mind as a deeply rooted
confidence that comes from feeling in control and knowing your financial plan is built on a
foundation of increasing self-knowledge and awareness. It is at this critical juncture – the
intersection of proactive planning and peace of mind – that we believe our clients have the highest
potential to realize their goals.

The vision as a firm focuses on helping others achieve financial goals, as well as understanding of
each client’s unique purpose, mission and values. They strive to empower clients by offering
education, tools and resources aimed at facilitating clear communication and bringing definition
to their ambitions and objectives. Each client has different ideas about what makes life great. They
take the burden out of managing the financial details so clients can enjoy life’s journey and live
out their unique purpose. They strive to be a force of calm, a navigator in the face of anxiety and
uncertainty that all too often accompany financial success.

The Capital Box helps in addressing different issues such as:

* Investing principles and strategies

* Retirement investing and distribution strategies

* Estate conservation issues

* Risk management analysis

8
ABOUT THE SPONSORS OF THE CAPITAL BOX

 Future Generali India Life Insurance Company Limited

Future Generali India Life Insurance Company Limited is a joint venture
between three leading groups: Future Group – A leading retailer in India,
Generali Group- A global insurance group that features among top 50*
smartest companies in the world and Industrial Investment Trust Limited
(IITL).
At Future Generali India Life Insurance Company Limited, our mission is to actively
protect and enhance peoples’ lives. With operations spread across 117 branches and a
complete range of simplified solutions for the financial security of customers and
enterprises, we aim to become the first choice by delivering relevant and accessible
insurance solutions.

 Max Life Insurance

Max Life Insurance Company Limited is a life insurance company in
India. The company is a subsidiary of the publicly listed Max Financial
Services Limited and is the largest non-bank private-sector life insurer
in India

 Aditya Birla Capital

Aditya Birla Capital Limited (ABCL) is the holding company for the financial
services.
ABCL’s subsidiaries have a strong presence across Protecting, Investing and
Financing solutions, ABCL is a universal financial solutions group catering to
diverse needs of its customers across their life stages. Powered by more than 21,000
employees, the subsidiaries of ABCL have a nationwide reach with 850+ branches and
more than 2, 00,000 agents / channel partners and several bank partners.

9
COMPANY’S VISION, MISSION AND VALUES

 VISION
To be trusted and respected by our families, clients, and professionals as the model financial
advisory firm that helps others as they transition through life’s financial cycles.

 MISSION
To help individuals, families, and small businesses embrace the responsibilities of living their
goals and dreams by designing, implementing, and monitoring financial strategies consistent
with their core values.

 VALUES

Live life on Purpose

People are more important than things
Act with Integrity

10
MARKETING MIX OF THE CAPITAL BOX
The marketing mix is the combination of marketing activities that an organization engages in so
as to best meet the needs of its targeted market. The Insurance business deals in selling services
and weight age in the formulation of marketing mix for the Insurance business is needed. The
Insurance Marketing focuses on the formulation of an idea mix for Insurance business so that the
Insurance organization survives and thrives in the right prospective.

The marketing mix include sub-mix of 4P’s can be used for marketing of Insurance products, in
the following manner:

1) Product

2) Price

3) Place

4) Promotion

Purpose
The purpose of the company is to provide means for people to live a life and lifestyle of their
choice by helping them plan for their future with life insurance. The company has a wide variety
of plans to cater to all the needs of the customers such as:
 Term Plans
 Child Plans
 Unit Linked Investment Plans
 Savings Plans
 Retirement Plans

11
In the tenure of my internship, I gained in depth knowledge about
 Saving Advantage Plan
 Monthly Income Advantage plan

Product 1: Saving Advantage Plan

A plan that helps you grow your systematic savings to build a corpus to address all your life stage
need while providing coverage against risk to take care of your loved ones in case of an exigency
Flexibility
You have the flexibility to choose the Premium Paying Term and Policy Term as per your need,
enabling you to decide the period for which you wish to save and the time for which you need
money to fulfill your particular life stage needs.

Guaranteed Additions
This plan provides you guaranteed 5.5% of Sum Assured on Maturity as Guaranteed Additions at
the end of each policy year, for first 5 policy years. to boost up your benefits.

Death Benefit that increases post 10 policy years

In case of death of Life Insured before or on completion of 10 policy years, a sum of Guaranteed
Death Benefit, Accrued Guaranteed Additions (if any), Accrued Paid Up Additions (if any) and
Terminal Bonus (if any) is payable.

In case of death of Life Insured after 10 policy years, 110% of Guaranteed Death Benefit along
with Accrued Guaranteed Additions , Accrued Paid Up Additions (if any) and Terminal Bonus (if
any) is payable.

Maturity Benefit
Enjoy 110% of Guaranteed Sum Assured along with Accrued Guaranteed Additions , Accrued
Paid Up Additions (if any) and Terminal Bonus (if any).

Settlement and Commutation Benefit

You or your nominee, have the flexibility to convert the Lump Sum Maturity Benefit / Death
Benefit into regular income (Monthly / Yearly) for 10 years.

Tax Benefit
You may be entitled to certain applicable tax benefits under section 80(C) and 10(10-D) of Income
Tax Act 1961 on the premiums paid and benefits received.

12
Product 2: Monthly Income Advantage Plan
Max Life Monthly Income Advantage Plan is one of the most sought-after financial plan as it
provides guaranteed monthly income for 10 years which will help the policyholder meet the
upcoming financial requirements even during unfortunate situations. This comprehensive savings
and protection Life Insurance plan helps you in meeting your recurring expenses after completion
of premium payment term. It also offers lump-sum benefits and non-guaranteed bonuses.
The features and benefits of the are as follows:

Guaranteed regular monthly income:

After completion of the premium payment term, Max Life Monthly Income Advantage Plan
provides you with guaranteed regular monthly income which can be used for your future expenses
or to have a peaceful retirement.

Financial coverage for your loved ones:

Max Life Monthly Income Advantage Plan also offers a lump-sum benefit to the nominees upon
the death of the policyholder.

Maturity benefit:
Upon maturity of the policy, Max Life Monthly Income Advantage Plan pays the total accrued
compound bonuses and terminal bonuses to make sure you are financially stable.

Death benefit:
Upon the death of the insured person, death benefit shall be paid if 11 times of the annualized
premium is paid and 105% of all premiums is paid till the date of death of the insured.

Policy continuance benefit:

In any unfortunate situation, Max Life Monthly Income Advantage Plan waives all the future
premiums payable by the policyholder. Apart from the lump-sum benefit the policy gives a waiver
on all the upcoming premiums which will make the policyholder or the nominees eligible for
maturity and income benefits.

Tax benefit:
Most of the schemes offered by Max Life Insurance Company comes with tax benefits and Max
Life Monthly Income Advantage Plan is no exception. As per the taxation law in India, the
policyholder can avail tax benefits on the policy.

13
PRICE
In a developing country like India where the disposable income in the hands of prospects is low,
the pricing decisions also governs the transformation of potential policy holders into actual policy
holders. The strategies may be high or low pricing keeping in view the level or standard of
customers or the policy holders. The pricing in insurance is in the form of premium rates.
In the insurance business the pricing decisions are concerned with:

 The premium charged against the policies.

 Interest charged for the default payment of premium and credit facility, and Commissions
charged for underwriting and consultancy activities.

PLACE
This component of marketing mix is related to two important factor:-
 Managing the insurance personnel
 Locating a branch.

Selection of an appropriate location in order to set up the branch office plays a very important role
in customer attraction, routine operations of the business and also for the convenience of the
customers. The management of agents and insurance personnel is found significant with the
viewpoint of maintaining the norms for offering the services. This is also to process the services
to the end user in such a way that a gap between the services- promised and services offered is
bridged over. The transformation of potential policyholders to the actual policyholders is a difficult
task that depends upon the professional excellence of the personnel

PROMOTION
The Insurance services depend on effective promotional measures. In a country like India the rate
of illiteracy is very high and the rural economy as dominance national economy. It is essential to
have both Personal and impersonal promotion strategies. Due attention should be given in selecting
the promotional tools for agents and rural Carrier agents, branch manager and frontline staff. They
should be given proper training in order to create impulse buying through the transformation of
rural prospects into actual policyholders by arranging various exhibitions and publicity drives in
rural areas. Advertising and Public relations done by the organization is a form of impersonal
communication to create awareness among people.

Promotional strategies used by the company is as follows:

 Commercial ads
 Print ads
 Conducting events

14
DEPARTMENT PROFILE
I was deployed as an insurance agent under the sales department of The Capital Box, Gurgaon
where I was given the target to make sales by selling the policies of the company.
The key roles & responsibilities given to me are as follows-

a) Identifying the needs of the prospective customers and pitching them about the products of
the company as per their needs.
b) Convincing & persuading the customers to buy a product by telling them about the benefits
& features of the product through sales presentation.
c) Preparing Daily Sales Report (DSR) on MS Excel and calling the customers.
d) Reporting my industry mentor based on the feedback given by the customers

15
 Chapter Three

Literature Review
In light of the primary objective of this research to understand consumer perceptions of global and
local brands this chapter will examine and present a detailed review on the reasons as to why
consumers in emerging in emerging markets prefer foreign brands over local brands. Several
studies show that preference for imported, branded products over domestic ones seems to prevail
among consumers in developing countries consumers in developing economies appear to perceive
that products from developing countries are of lesser quality and will result in higher levels of
dissatisfaction.

A conceptual model has been developed which explains the basic factors that lead consumers in
emerging markets to purchase global over local brands. This model will be applied and tested in
our analysis to conclude and explore the main reasons for consumer purchases of global over local
brands and what are the further implications that managers need to keep in mind while moving
into emerging markets.

3.1. (A) Consumer perceptions of global and local brands.

A local brand can be defined as a brand that exists in one country or in a limited geographical area.
A researcher point out that local brands belong to a local, international, or a global firm, they also
provide a link between national economy and individual well-being. Several researchers define
global brands as “a brand that is marketed under the same name in multiple countries with similar
and centrally located coordinated marketing strategies”
A researcher conducted an exploratory study across European countries to see how consumers
perceive local brands. The study revealed that local brands benefit from strong brand equity and
also benefit from higher consumer awareness than international brands do and they enjoy a strong
brand image. They not only benefit from a good quality image but also from a better value and
trust perception than international brands do. Value is linked with the fact that prices of local
brands are usually lower than those of international brands, providing consumers as sense of better
value for money.

Local brands are perceived as more “down to earth” than an international brand, which means that
local brands offer a more basic/no frills brand proposition. Local brands are also linked more to
local traditions and local cultures than international brands are. It was also found that trust is an
important advantage for local brands because it provides a unique relationship with consumers that
take years to develop. Local brands are not more flexible than global brands in terms of their
marketing activities when they compete in a foreign product category due to cultural categories

16
being associated with the product category. Just as global brands need to conform to international
marketing dictums, local brands sometimes need to conform to deeply held preconceptions about
product category in which they operate.

Much of the assumed advantage of global brands centers on the status and prestige associated with
global reach. A study of more than 10,000 consumers conducted by a researcher revealed that even
though domestic brands are likely to be more familiar than global brands, where familiarity is
equal, the global brands will have higher esteem. The researchers asserted that global branding
will arguably face different challenges by product category. Certain categories such as automobiles
and computers are deemed more global in terms of the similarity in consumer preferences. Apart
from discussing the consumer perceptions of local and global brands it is also worthwhile
exploring the reasons of preferences for global over local brands.

3.1. (B) Reasons for preferences for global over local brands
Consumers become perceptive to global brands when consumers believe the brand is marketed in
multiple countries and is recognized as global in these countries This perception occurs in two
forms; consumers realize that the same brand is found in other countries through media exposure,
word of mouth communication, or during travel overseas. Secondly as studied by a researcher that
a brand may assert or imply its ‘globalness’ through marketing communications that use brand
names, endorsers, advertising themes, etc.. Consumers prefer brands that they perceive as
originating from a non-local country, especially from Western countries, more than they do local
brands and that preference is linked not only to perceived quality but also to social status.

Consumers in developing countries generally seek to emulate western consumption practices and
lifestyles and purchase foreign brands. It is asserted that considerable similarities exist in the needs
of consumers around the world and this convergence in consumer needs is largely attributed to
increased cross border population mobility and electronic mobility facilitated by
telecommunications technology.

Consumers may prefer foreign brands because of associations of higher prestige. The influence of
perceived prestige on purchase intention is stronger when product category is more conspicuous
and its ownership or consumption is more publicly visible. The world scale of global brands allows
people to associate themselves with globally recognized events (World Soccer Cup, Formula one,
Olympics, etc) and celebrities (Brad Pitt, Beckham etc). Through a process of meaning transfer,
the prestige attached to these events and celebrities may be transferred to the sponsoring global
brand.

17
Global Brands are viewed as luxury goods for an average Indian. The market for luxury goods has
recently experienced a considerable growth. From the above it can be concluded consumers in
developing countries tend to evaluate global brands in terms of better product and service quality,
they also tend to relate global brands as symbols of social status. The COO of origin has also been
found as a significant factor influencing global brand preferences in terms of status and quality.

The factor influencing global brands are:

 Antecedents of Global Brand Purchases

 The impact of Product Quality in Consumer Satisfaction Responses, Country of Origin and
Brand Image
 Service Quality Impact on Customer Satisfaction, Country of Origin and
 Brand Image
 Impact of Culture and Acculturation on Brand Image
 Social Identity and Materialism
 Consumer Segmentation

18
The figure below depicts a conceptual model for understanding Consumer
Purchase Behavior

19
 Chapter Four

Need, Scope and Objectives of the Study

The primary objective of this study is to understand consumer perceptions of global and
local brands in the Indian retail industry. The secondary objectives are mentioned as
Follows:
 To analyze the factors that effect consumer preference for global brands.
Factors like Product and Service Quality, Country of Origin, Culture,
Materialism affect consumer perceptions of global and local brands.

 To determine the main reasons as to why people consume brands as symbolic

Identities.

 To identify the key discrepancies that exist between managerial and consumer expectations
of delivering brand satisfaction which have led to the gap for foreign low cost retailer
brands.

RESEARCH METHODOLOGY
Secondary data can be collected from internal and external sources. Internal data collection source
is collected from company documents like sales report or customer data base while external
information is collected from outside sources like government reports, books and periodicals etc.

This research involved data collection from secondary external sources. Various academic journals
like ‘Journal of Consumer behavior, Harvard Business Review, Journal of Marketing
Management’ etc were used to gather information on the relevant topics. Various academic
textbooks and industry reports have also been made use of that were useful in reviewing the
existing literature on branding and in understanding consumer purchase behavior.

 Data Collection
1) Sources: Secondary Data
2) Tools: Journal of Consumer behavior, Harvard Business Review, Journal of Marketing
Management’

20
 Chapter Five

Analysis and Discussion

The study of different secondary data collected from various source produced various themes
related to consumer preferences of global brands. These themes can be classified as following:
 Consumer perceptions of Global and Local Brands
 Cues of Product and Service Quality that affect purchases
 Consumer Segmentation
 Impact of Culture on Consumption
 Materialism and Social Identity.

1. Consumer Perceptions of Global and Local Brands

The emergence of a global marketplace has fuelled the growth and awareness of fashion brands
across India. As India opened up its economy to the rest of the world a whole lot of foreign brands
like Benetton, Tommy Hilfiger etc entered India thus influencing the minds of the consumers in
decision making. Due to the immense exposure of these global brands there have been major
changes in perceptions of Indians as far as local brands are concerned. It was observed that
consumers tend to evaluate global brands in terms of better quality and perceived globalness
Consumers exhibited that global brands made them feel a part of the global consumer culture and
gave them recognition. It was also revealed that consumers preferred paying for brands which were
recognized as they gave them a sense of ‘global identity.
Earlier Indians use to correlate to branded goods as luxury items but today due to the
immense exposure and more and more Indians travelling abroad there has been a
tremendous change in the way Indians perceive branded goods.

2.Cues of Product and Service Qualities that Affect Consumer Purchases.

From the data it can be conclude that customer satisfaction is enhanced by product and service
qualities which are found to higher in global brands. Consumers still prefer brands that hail from
countries that are considered to have particular expertise: Switzerland chocolates, Italy in clothing,
France in cosmetics, Germany in cars, Japan in electronics, for example. Service quality is not
influenced to a great extent while purchasing of brands. The service quality influences consumer
decisions of local brand purchases gets rejected.

21
3. Consumer Segmentation
From the data it was observed that Upper middle class popularly called as the ‘socialites’ becoming
more and more brand conscious. They consider possession of global brands as status symbols
which give them self-identity. Secondly they could be called as ‘Achievers’- who valued
achievement and materialism and they are more keen on luxuries that they constituted a special
hub and the upper middle class can also be called as ‘Strivers’- very materialistic and immersed in
an aggressive pursuit of achievement.

4. Impact of Culture on Consumption Patterns

Culture amongst the Indians depicted status, gratitude, approval and disapproval.
India represents a collectivist society where people are seen as not fully separable they are
connected to other people by a multiple of overlaps and links. They come to represent the
interdependent selves wherein identity lies in familial and social relationships and they tend to
move in their social circles. Class and Status also need to be maintained in the social circles in
which one moves.
It was noticed from the data that due to travel and exposure more Indians have started becoming
aware of global brands but they would yet purchase brands that are recognized in their social
groups. Due to travelling and exposure a lot of Indians are exposed to the host culture and have
begun to acculturate and adopt its norms and behavior.
Hence it can be concluded that culture and acculturation leads to westernization of consumption
patterns which affects brand image.

5. Materialism and Social Identity

In India the collectivist culture is at its peak. It was observed from the data that Indians tend to
identify themselves not on the basis of personal identity but social identity. People tended to
purchase belongings that were socially recognized as it gave them a sense of status and recognition.
It could also be seen that increase in westernization due to cultural impact was leading consumers
to develop a more materialist attitude as far as consumption was concerned.

Indians are very vulnerable to influences such as group norms. The interdependent self of the
Indians tends to focus more on the crowd and public appearances. Therefore possessions like car,
jewellery, good designer brands hold a lot of importance for them. Thus it can be concluded that
collectivist societies can also be viewed as materialistic societies. In other words India can be
perceived as a materialistic society.

22
 Chapter Six

Findings
From the above analysis various findings have been concluded.

1. Increase In Westernization
It can be seen from the above analysis that consumption patterns have changed to a great extent.
It has been taken for granted that westernization in India is on a rise. With the entry of foreign
brands in India and more Indians travelling abroad there has been an immense exposure to these
brands and western culture. Indians travelling abroad tend to dress and imitate the western styles
particularly the manner in which they dress thereby leading to western consumption behavior.

It can thus be concluded that increase in westernization which has resulted in the change and needs
of the consumers has led to a transformation of the Indian economy from a socialist to a
consumption-led economy. The current generation is therefore more proud of being an Indian, and
more modern when it comes to their lifestyles, than their predecessors. It is a generation that feels
that everything is within their each and aspires for it. And this is true for everyone, whether they
live in large metros or small towns. I call this paradigm shift- the 3-C theory: Confidence and
Change bringing in an unprecedented era of Consumption. The increase in westernization is
responsible for the materialistic attitude among the Indians which have led them to consume brands
as symbols of status and prestige.

2. Symbolic Consumption of Products

Due to westernization of consumption patterns more Indians particularly who belong to the upper
middle classes are developing a materialistic attitude and consuming more and more brands for
symbolic purposes. Consumption in India is affected by a symbolic identity which basically means
that brands are creating a social identity for the consumers thus affecting their purchase behavior.

India represents a collectivist society wherein a lot of emphasis is given to the outer self, basically
the way in which a person carries him/herself in public. A lot of importance is given to society,
norms and values. From the data it was observed that people had to maintain a particular status
amongst the reference groups that they move in and this prompted them to purchase global brands
in order to maintain a particular status.

23
 3. Growth of the Indian Retail Sector

The gradual trend towards liberalization of the Indian economy during the past decade has served
as a major factor in its progressive shift towards a global economy and the entry of foreign brands
from Europe and US into this market. The materialist attitude among the Indians to possess
products that provide them with a sense of self-identity and status and also due to changes in
consumption patterns has increased the popularity of these brands thereby resulting in higher
purchases of global brands as compared to local brands. Although this attitude is prevalent only in
urban cities of India, times are not far where such an attitude will prevail amongst all the classes
of people.

Global brands have a tendency to focus on the upper middle classes and they often fail to address
the needs and demands of the lower classes in India. Recent times have seen an array of Local
retail outlets like Pantaloons, Big Bazaar, and Shoppers Stop etc. that have rewritten the retail rules
in India.

The Indian retailers agree upon the upcoming trends of foreign brands in India and they being
acceptable by the upper classes, but sustainability of these global brands is a major criterion that
needs to be looked into. Their sustenance was guaranteed since they focused on the market as a
while which made them earn higher profits than international retail stores in India. They focus not
only on the upper classes but also meet the needs and wants of the lower classes

24
 Chapter Seven

CONCLUSION & RECOMMENDATIONS

 Emergent Strategies necessary

The unique characteristics of a specific market/industry like India “emergent strategies” would be
more appropriate for multinational firms. Emergent strategies increase a firm’s flexibility and
adaptability to environmental changes and fluctuations in consumer’s demand

 Flexibility and Adaptability

Each and every store in India needs to be customized after taking into account the diverse culture,
tastes and preferences of every city or locality that multinationals want to set up their stores in.
Indians belonging to any class always prefer to touch, smell and feel the wheat grains before they
buy them and such an Indian psychology helped in the development of Food Bazaar where staples
are sold loose. They have become a standard feature of most of the supermarkets in India. Hence
if multinationals like Tesco or Marks and Spencer’s who want to venture into food hypermarkets
as they offer big retail opportunities in India should adapt themselves to the consumers psychology
and preferences in a country’s product markets, But however companies should retain their core
business propositions even as they adapt their business models. One of the marketing mantras is
‘being local on a global scale’, it is imperative to localize some features of the marketing approach.
Multinationals should adopt a country centered strategy which requires them to be extremely
flexible and build or acquire a mix of national and international brands like Nestle and Uniliver
have traditionally done.

 Build Brand equity and avoid direct competition

Operationalizing brand equity generally falls into two groups: those involving consumer
perceptions such as awareness, brand association or perceived quality and those involving
consumer behavior such as brand loyalty. In terms of the household and food brands, local Indian
Brands like Amul, Parle and Sunfeast have exhibited higher brand preferences and equity not only
in terms of awareness, brand association or perceived quality but also brand loyalty. This is solely
due to the fact that these brands have understood the Indian customers well and they deliver value
for money products. The Foreign multinationals entering India try to compete with local brands
for e.g. Heinz tried competing with Kissan but was not successful, they instead should try and
build a strong brand equity and lay more emphasis on the needs of the Indian consumers

 Strong Presence in all the Segments for Profitability and Sustainability

Knowing the market, and identifying and catering to the need of the consumers are essential.

25
 Chapter Eight

Limitations of the Study

 Gathering adequate information during the collection of secondary data was an issue, due
to limited information on consumer perceptions of global and local brands

 Interview with the people was not conducted due to covid-19

 The study is based on the facts and figures that where done by the different researcher
earlier.

 The interview was not conducted with the retailer due to covid-19 as it would have help us
in knowing the perception of retailer towards the global brand and the local brand.

26
 Chapter Nine

KEY LEARNINGS

1. During the summer internship period I learnt about the working of Insurance sector, the
various norms and regulations imposed by the Insurance Regulatory Authority of India
(IRDAI) on the Insurance companies.

2. I learned about the various plans of the company such as Money back plans, Term plans,
Child plans and Unit linked Plans and gained in depth knowledge about various products
such as Monthly Income Advantage Plan, Saving Advantage Plan.

3. The initial 15 days of the training was based on theoretical knowledge related to the
Insurance sector and the next tenure of internship was based on practical exposure of
sales by giving sales pitch in front of the prospective customers.

4. I learnt the art of communicating with the prospective customers and delivering them
sales pitch keeping in mind their needs. This sales exposure, enhanced my presentation
skills.

5. The challenging part of my internship was the work pressure of making sales by
convincing the customers to buy the products of the company. But working under
pressure taught me perseverance.

27
 Chapter Ten

References
Aaker, D. (1991), “Using Free Association to examine the relationship between the
characteristics of brand associations and brand equity”, Journal of Product and Brand
Management”, Vol. 10, no. 7, p.p.439
A.T. Kearney (2005). The Global 2005 Retail Development Index,
www.atkearney.com/main.taf?p+5,3,1,108,1), visited on 7.7.2007
Alden, D.L., Steenkamp, J.E.M. and Batra, R. (1999), “Brand Positioning through
advertising in Asia, North America and Europe: the role of global consumer culture”,
Journal of Marketing, Vol. 63, pp.75-87.
Andreasen, A.R. (1990), “Cultural interpenetration: a critical consumer research issue for
the 1990s”, in Goldberg, M., and Gorn and Pollay, R. (Eds), Advances in Consumer
Research, Association for Consumer Research, Provo, UT, Vol. 17, pp.847-9
Baalbaki. I and Malhotra. N, (1991), “Marketing Management Bases for International
Market Segmentation: An Alternate Look at the Standardization/Customization Debate”,
Vol. 10, No.1, pp.19-44.
Batra et al, (2000) “Effects of Brand Local and Nonlocal Origin on Consumer Attitudes
in Developing Countries”, Journal of Consumer Psychology, Vol. 9 (2), 83-95.
Barbara, S. (2003), “Managing Brand Equity, A look at the impact of attributes”, Journal
of Product and Brand Management, Vol. 12, p.39
Canli. Z, & Maheswaran. D, (2000), “Determinants of Country of Origin Evaluations”,
Journal of Consumer Research, Vol.27, p.96-108.
Corsby, Philip B. (1979), Quality Is Free: The Art of Making Quality Certain, New York:
New American Library.
Coleman and Briggs (2002), Research in Educational Leadership and Management.
London: Paul Champan.
Crouch, S. and Housden, M. (1996) Marketing Research for Managers, Published on
behalf of The Chartered Institute of Marketing.
Dawar, N. and Parker, P. (1994), “Marketing universals: consumer’s use of brand name,
price, physical appearance, and retailer reputation as signals of product quality”, Journal
of Marketing, Vol. 58, pp.81-95.
Denzin, N.K. and Lincoln, Y.S. (1998) Introduction: Entering the field of Qualitative
Research. In Denzin and Lincoln, Y.S. (eds). Strategies for Qualitative Inquiry. London
Sage.

28