India’s culinary landscape is incredibly diverse, with each region boasting its unique flavors, spices, and cooking techniques. From the fiery curries of the South to the rich and creamy dishes of the North, the Indian palate is both sophisticated and varied. Also, there are many other important considerations. India being a rather conservative country, brand names and ad campaigns related to subjects like alcohol, divorce, sex, menstruation and mental illness are considered taboo. Advertising and marketing campaigns which contain patriotism and nostalgia appeal better to Indians. Understanding these nuances has been critical for foreign companies aiming to make a mark in the Indian market. Companies which have been ignorant of these trends have had a hard time surviving in a hyper-competitive market like India.

Adapting to local tastes has been one of the key determining factors of whether a company will succeed or fail in India. India being a very taste-heavy market, the citizens usually prefer sticking to their favorite flavors. For example, when Kellogg’s entered India, cereal was a new concept for India. Light breakfasts typically consisted of a bowl of hot vegetables. The company introduced more products like Wheat Flakes, Honey Crunch, and All Bran without adequate market research. Even when they attempted to Indianize products with Masala variants, they failed to realize that Indian households often use buffalo milk, which when mixed with cereals, gives an unappealing texture and taste. Needless to say, Kelloggs was a dismal failure in India.

In contrast, when McDonald's entered India, it combatted India’s largely vegetarian population and dietary restrictions based on religious beliefs, by rethinking its traditional beef based menu. It introduced a range of vegetarian options such as the McAloo Tikki Burger, a strategic adaptation which helped them grow to over 300 outlets across the country and do business in India for over 25 years. Similarly, Lays introduced India-only flavors like Magic Masala Mint Mischief, Chile Limon, and Tomato Tango, which helped them capture 50% of India's potato chip market. This phenomenon is not just limited to food but can also be seen in beverages. Starbucks developed a menu that included familiar flavors like the Masala Chai and the Cardamom Flavored Coffee, catering to the Indian penchant for spiced beverages. These efforts have paid off, with Starbucks rapidly expanding its presence to over 200 outlets across major cities and going past the 1000 Cr revenue mark in FY ‘23, which was a three fold increase compared to FY ‘22.

Marketing and advertising also play a crucial role in a company’s success in India. For example, when Danone entered India in 2010, they released many commercial ads showing families enjoying yogurts and smoothies together. While this image is very common in the Western countries, it failed to resonate with the Indian audiences. They could not relate to it as they preferred eating cottage cheese daily while on special occasions, they liked to enjoy icecreams. One company which used marketing well to its advantage is CocaCola. They used slogans such as "Thanda Matlab Coca-Cola" (Cold Means Coca-Cola), and "Jo Chaho Ho Jaye'' (Whatever You Want, Happens) to connect with Indian consumers. Coca-Cola also sponsored local events and festivals, which has made them a household name in India. A product need not be marketed through television advertisements, it can also be through packaging. Huy Fong Foods, a mid-size company in the USA has sold over 100,000 bottles of Sriracha sauce in just two years of entering India. The sauce’s unique spicy formulation and iconic red bold packaging are the reasons behind the high volume of sales.

At times, brand names can have a drastic impact on the fate of your company in India. Gerber, a popular USA baby food brand, faced challenges in India due to its name. In Hindi, "gerber" phonetically resembles "gadbad," which means problematic. This unintended association created negative connotations and led to the brand being portrayed as being unclean, which is detrimental especially for a brand catering to children. In contrast, when British-Dutch multinational company Unilever entered India, they named their Indian subsidiary as Hindustan Unilever Limited (HUL). As ‘Hindustan’ is another name for India, this led to a lot of Indians considering it as an Indian company and effectively trusting it more than foreign counterparts. As a result, their product line of brands like Lifebuoy, Surf Excel, Dove, and Glow & Lovely have become extremely popular in India and have helped HUL achieve 62% market cap of its parent company Unilever’s market cap. Even their ice cream brand Wall's entered the Indian market through a joint venture with well-known local brand Kwality and was named Kwality Wall’s. This helped them achieve an impressive market share of 16% in the cut-throat ice cream market in India.

The success of foreign F&B companies in India highlights the importance of understanding and respecting local tastes and preferences. By introducing products that resonate with Indian consumers, creating smart advertising techniques, and having catchy positive brand names, these brands have managed to establish a strong foothold in a competitive market. Their strategies highlight the value of cultural sensitivity and adaptability in achieving global business success. Companies which are harboring hopes of making an India entry can learn from their journeys and ensure they do not commit the same mistakes.

Успех иностранных F&B-компаний в Индии подчеркивает важность понимания и уважения местных вкусов и предпочтений. Благодаря выпуску продуктов, которые находят отклик у индийских потребителей, продуманным рекламным приемам и запоминающимся позитивным названиям, этим брендам удалось прочно закрепиться на конкурентном рынке. Их стратегии подчеркивают ценность культурной восприимчивости и адаптивности в достижении успеха в глобальном бизнесе. Компании, которые питают надежды на выход в Индию, могут извлечь уроки из их пути и не допустить тех же ошибок.