Indian food is the most important of cultural commodities connecting overseas Indians to

their roots. As a result, export of Indian food has gone up, benefitting companies of Indian
origin. Companies such as Bajaj Food, Nikasu, Priya Foods, MTR Foods, Gits Foods,
Deepkiran Foods, Foods & Inns, Agro Tech Foods, ADF Foods, Kohinoor Foods and LT
Foods have seen their exports grow at a rate of anywhere between 15% to 60% over the last
three years. With regard to the four categories of segmenting the Diaspora from the article
`Diaspora Marketing',
(a) Which segments should be targeted by the above mentioned Indian firms target and why?
Diasporas are groups living away from their birth countries such as first-generation
immigrants. The idea is to market your brand to a group that is familiar with and has an
affinity for offerings that come from their home country. When that group provides a sales
base, it gradually expands to people connected to the diaspora and finally to a broader
market.
Based on the four segments mentioned in the article the maximum profit can be derived by
targeting Bicultural (Target 1) in the figure.

The reasons are as follows
They are usually Indian-Americans so Indian companies so Indian food companies
mentioned above can target them.
They have sense of belonging to both host and home cultures. They prefer to eat
Indian food at home so at least they will be potential customers.
They are better educated, have higher incomes, socioeconomic status hence more
involved in local social networks, organizations and clubs making them conduits for
word of mouth publicity Indian origin products.
They not only will buy home country products but can help diffuse products into the
host country.
Second Target could be Ethnic Affirmers (Target 2) of those who prefer home country
products. But the mainly socialize with others from their own countries and origins so their
publicity would be of limited use. But still in areas they are found in huge mob, the products
may earn a good profit.
The other two categories of Diasporas are Assimilators and Marginals. One of which buys
only host country product and other looks for cheapest alternatives which would usually be
host country products as the cost of export etc of home country products wouldnt make them
available cheap on foreign land. So these two segments are to be sidestepped.
In deciding whether a diaspora strategy will work, several questions need to be posed:
Is the diaspora large enough? It must have a critical mass to justify investment in supply
chains, distribution, and retailing. In general, diaspora markets are substantial. Since 2000,
the number of first-generation immigrants in the world has risen from 150 million to 215
million and their average income is often above the nations average. Additionally, many
keep in contact with their homeland through travel and communication with relatives and
friends.
Is the diaspora distributed throughout the country? In addition to critical mass, they also
need to be dispersed enough to support a breakout. Biculturals can help diaspora to go
national.
Does the brand have an appeal that goes beyond the diaspora? Does it pave superior
product performance, compelling value, and/or positive country-of-origin effects?

(b) If you were the CEO of one of the above firms, what would be the challenges faced by
your firm in these markets? Discuss the measures to face these challenges effectively.
Despite targeting the right segment, there is a lot more a company originated in a developing
county would go through to get established in a developed land. Being a CEO of one such
food company I could think of below mentioned challenges
Headcount
Diaspora organizations are often smaller and less well resourced.
I might need to find ways in which we can work together on an equal basis. There are good
examples of collaboration between large international NGOs and diaspora organizations.
Marketing and cost
Not all crowds would be attracted towards same sort of marketing strategies and word of
mouth publicity would be too slow to generate margins.
I must find out what appeals to the potential customers in a region I would target, and based
on that I would advertise the product. I would have to evaluate the cost of marketing the
expected gain from a particular region before deciding though.
Competition
The emerging market brands have some natural assets and can become disruptive
competitors.
To compete with local brands, I would work on one or more of these cost, quality,
ingredients etc. that would beat the local products.
Reputation
May be for some reasons or news people would feel Indian products are adulterated and
unhygienic.
For that some audits and publishing the reports in local newspapers and channels would be
required.
Quality
There could be rumors on the food quality being compromised stemmed from one or two
incidents of another Indian food store.
There could be notice boards mentioning of authentication of food items from local well
knows market or store and tested before serving.
Contents
Based on geography and cultures, natives would be more inclined towards their countrys
products.
I would have to tweak my companys products into their demands and likings. E.g.- I can use
their spices and sausages and beverages to attract them. In long run we should start keeping
some of the food products soothing their regular demands.
Freshness
Fresh vegetables and non-veg items are to be brought from local shops or exported on
regular basis.
For seamless services tie ups with local suppliers would help.
Origin
Some cultures may have misconceptions regarding Indian origin food items.
Still, they may be attracted towards herbs and spices well known and that fight with crucial
diseases e.g. turmeric for Alzheimers.
Likability
People tend to socialize with those who are like them
Ambience and store staff could be hired who can gel well with local foreign crowd and guide
them on their purchase options. They can also provide feedback on what they are looking for.

Despite many challenges involved Diaspora avoids the often unfeasible attempt to build a
brand on foreign shores from zero. The diaspora strategy not only provides a solution to a
tough problem for many brands. Firms attempting to engage in brand extensions can learn
from these ideas. Look first to customers who are already using the brand in another context
and let them provide a base business and build from there.