India is one of the largest consumer markets in the world, but it is not one market. Language, income, religion, climate and buying habits change from state to state, and often from one district to the next. A foreign company that researches “India” as a single block usually ends up with an average that describes nobody. Here is a practical order of work.

1. Write down the decision first

“Is India attractive?” is not a research question. “Should we launch in Chennai and Bengaluru in 2027, at what price, through which channel?” is. Every later step depends on this sentence.

2. Size the market from public data

Use government statistics, industry association reports and trade data to estimate the total, serviceable and obtainable market. Our guide to TAM, SAM and SOM shows the arithmetic. The official Invest India portal is a good starting point for sector and policy information.

3. Choose two or three pilot cities

Do not try to cover the country. Pick cities that resemble your target customer: income level, language, competitors present and logistics. Many overseas firms start in one southern city and one northern city to compare behaviour. See where we work on our cities we serve page.

4. Map competitors and substitutes

In India your real competitor is often a local brand, an unorganised shop or a cheaper substitute rather than another multinational. Follow the five steps in how to do competitor analysis and include price, pack size and where each product is sold.

5. Run primary research in the local language

Desk research cannot tell you what a customer in Coimbatore will pay. A face-to-face or telephone survey in Tamil, Kannada, Telugu or Hindi, with back-checks, can. Read online vs face-to-face surveys in India to choose the method, and how many people to survey to set the sample.

6. Test price and pack size

Indian buyers are highly price and pack sensitive. A product that works at one price may fail at 15% more. Use the methods in pricing research before you fix your price list.

7. Check distribution and regulation

Find out who sells to the customer: modern trade, general stores, dealers, marketplaces or direct. A dealer survey (see dealer and distributor surveys) tells you the margins they expect. Check licences, product standards and import duties with a local adviser.

8. Decide, pilot, then scale

Turn the findings into a go, no-go or modify decision, with numbers for volume, price and break-even. Launch a small pilot in the chosen city and measure, rather than rolling out nationally. Our market entry research service follows this sequence.

Common mistakes overseas firms make

• Using one national average instead of city-level data
• Surveying in English only and missing most of the market
• Copying the home-market price
• Ignoring the unorganised competitor
• Skipping a small pilot

Related: What is market research? · Market research cost in India · ARS business books