1. Future of Services Marketing in India
Notes : Venkatesh Ganapathy
1.From an agrarian1 economy, India has moved to a manufacturing
economy and now we are living in an era of Service Economy.
2. Services are contributing to about 57% to GDP in India. Though this % is
far less as compared to the % contribution of services to GDP in developed
countries like US, Australia, Europe, India and China are following the trail
of the developed countries.
3. Automation in manufacturing resulted in many employees in factories
becoming redundant and so this working population was available to work
in service industries.
4. Future of services marketing in India is bright because many
multinational service firms are showing keen interest in India and its growth
story. Example – Bharti-Walmart tie-up in retail, Foreign insurance firms
setting up shop in India, strategic alliances between Indian businesses and
foreign investors. DHL logistics is planning to invest in India in a big way. In
a city like Bangalore, the massive growth of IT industry, ITES, BPOs is
contributing to the growth of services like hotels, restaurants, coffee shops,
pizza outlets etc.
1 agrarian – agriculture based

2. 5. Though India is increasingly coming under the Western influence, the
truth is that these service firms are also generating a great deal of
employment in India. The success of these efforts is due to increasing
urbanization and increase in disposable incomes.
6.Starbucks did research for close to 5 years regarding its decision to
invest in India. In Oct 2012, Starbucks has opened its first outlet at
Horniman circle, Mumbai. CEO Howard Schultz claims that this outlet has
been designed in such a way that it is the first Starbucks outlet in the world
to have such a design (example: Physical Evidence). This is a good sign
for India’s image in the international community.