A Global Media Perspectives

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A Global Media Perspectives Increasingly India
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India Today

• What are top-tier media perceptions of India
  today?
• India is at a crossroads in its development as
  the worlds largest democracy
• For the most part, India has thrown off its
  isolationist, self-sufficiency mindset and is
  embracing globalization
• No longer wary of Western influences

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2004 RPMCEdelman India Media Audit

• Conducted by RPMCEdelman in September and
  October 2004
• 20-minute, in-depth telephone interviews with 65
  journalists with top-tier media

• Ten markets
• Europe France, Germany, UK
• US New York, Washington
• Asia Hong Kong, Singapore, China
• India Mumbai, Delhi

• Top-Tier Media, including

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• Section 1 Emerging Markets Compared

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India and China are the 1 and 2 emerging markets

• Brazil, Russia, Poland and Mexico are not in the
  same class
• Brazil is beginning economic reforms
• Russias economy still weakgovernment is
  autocratic
• Poland and Mexico are far in the distance, even
  in Europe and US
• India enjoys a very strong reputation among media
• But in the U.S., China has 4-1 share of voice
  advantage over India
• India is perceived as having stronger five-year
  plus prospects

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U.S. Indias Share of Voice is Dwarfed by China
Country Share of Voice in Major U.S. Media
India
Mexico
Brazil
Russia
Poland
China
Sources The New York Times, Wall Street
Journal, Washington Post, Los Angeles Times,
Chicago Tribune, Forbes, Fortune, BusinessWeek,
Time, Newsweek and U.S. News World Report Time
Frame Jan. 1 2004 to Oct. 13, 2004
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U.S. India is Largely Defined by Outsourcing
1 in 4 U.S. news stories about India are centered
on outsourcing Pro Encourages more U.S.
businesses to outsource to India Neg Perceived
as threat to U.S. jobs
Total Number of Articles for Each Country
Sources The New York Times, Wall Street
Journal, Washington Post, Los Angeles Times,
Chicago Tribune, Forbes, Fortune, BusinessWeek,
Time, Newsweek and U.S. News World Report Time
Frame Jan. 1 2004 to Oct. 13, 2004
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Mindshare Favorability Towards Countrys
Business Environments
2 very favorable view of business
environment Lowest unfavorable rating
Ch
Ch
In
Pl
In
Mx
Pl
Mx
Br
Br
Ru
Ru
Now, Id like you to rate how favorable you think
the industrial and business environment is in
each country.
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India Most Favorable Five-Year Business
Environment
Br
Ru
Ch
In
Pl
Mx
Br
Pl
Ru
In
Mx
Ch
Now, Id like you to rate how favorable you think
the industrial and business environment will be
five years from now?
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Media are MORE Optimistic About India Than Any
Other Country
Are you generally optimistic or pessimistic about
these countries current industrial vitality
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What Comes to Mind.
When you think of these countries as an emerging
market, what comes to mind?
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Key Industrial Sectors
When you think of these countries what are the
key industry sectors?
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Worth noting

• Additional emerging markets are closing in on
  the BPO market and enjoy other advantages
• Philippines lower cost structure
• Mexico and Canada proximity to the U.S
• Ireland and South Africa proximity to Europe
  and time zone advantages

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• Section 2 Perspectives on India

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Business in India Right Direction or Off Track?
Overall, thinking about the way most corporations
do business in India, would you say things are
pretty much going in the right direction or have
they somehow gotten off track?
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Why Are Things Going Well or Badly?
What makes you think that things are pretty much
going in the right direction/have gotten off
track?
On Track
Off Track
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Indias Key Advantages Over Other Emerging
Markets

• Educated, English-speaking populace of young
  workers
• Democratic and business-friendly government
  (despite administration transition)
• Low cost structure
• Eager and savvy consumer market with growing
  buying potential

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Indias Advantages
What would you say are the main advantages that
India offers as an emerging industrial and
business center
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Disadvantages (Key challenges)
What would you say are the main disadvantages
that India offers as an emerging industrial and
business center
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Industrial Sectors
What industrial sectors do you think India is
excelling and lagging in?
Excels
Lags
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Greatest Opportunities
What industrial sectors provide the greatest
opportunities for India over the next 5 to 10
years?
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How Successful is India by Sector?
Disconnect The worlds media believes India is
much more successful in pharmaceuticals, and a
lot less successful in the Auto industry than
Indian media
AS
IN
US
EU
US
IN
AS
US
EU
AS
IN
US
EU
AS
EU
AS
IN
US
EU
IN
How successful is India in each of the following
sectors?
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Factors Driving Confidence in India

• US Media are concerned about Financial
  Transparency and Corporate Governance
• Asian Media have great confidence in conduct of
  Indian Companies operating in India
• More skepticism about the corporate governance of
  MNCs doing business in India

EU
AS
IN
US
IN
US
IN
AS
EU
US
AS
EU
Agrees with statements
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Factors Driving Confidence in India

• Asian media are skeptical of Indian property
  rights and their emergence as an economic power
• In comparison, U.S. Media are very bullish

IN
IN
US
US
EU
AS
EU
AS
Agrees with statements
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How important are each of these items on
influencing your perceptions of corporations
operating in India
Drivers of Corporate Image for Firms in India
The profile of Executive Leaders, Financial
Results, and Transparency are the most important
characteristics for companies operating in India
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Characteristics Driving Corporate Reputation in
India
How important is the list of characteristics
below that some people have used to describe how
good and responsible corporations conduct
themselves in India?
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What India Media Think About India?

• Economically China is currently 1 and India 2,
  but India will catch up in the coming years
• Reforms will continue to take place irrespective
  of differing ideologies of political forms in
  power.
• India is laying benchmarks to comply with
  international standards
• Strong corporate governance and accountability
• Strong market-driven competition
• Key Advantages to India
• Skilled labor force English speaking, educated
• Cost competitive
• Eager and ready consumer base

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• Section 3 Summary

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Key challenges

• Policy bumps
• Bureaucracy
• Poor infrastructure
• Nationalist sentiment

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• Summing It Up

Need more liberalization of joint venture rules
to stimulate competition in domestic market and
support manufacturing
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India Needs to Increase its Share of Voice By
Communicating

• Beyond outsourcing, call centers and IT
• Strong management expertise executive
  leadership with a vision for the future
• Strong transparency and governance
• Leadership role in corporate social responsibility

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India Needs to Increase its Share of Voice By
Communicating

• India beyond economic development by highlighting
  culture, fashion, architecture etc. -- not just a
  source of cheaper, albeit it educated, labor.
• Humanize India the people, the culture, the
  cities, development projects
• Frame India as the future

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A Global Media Perspectives Increasingly India