June 11, 2011Mid-term Exam: Part (1) Seminar Marketing Mid-Term Exam Part ² 1 "Blair Water Purifiers India" Instructor: Dr. Usama Saleh Presented By: y Rasha El-Amir y Mohamed Fawzy Helal y Ahmed osama 1|Page they are trying to produce innovative products to meet future needs in terms of water purification and filtration. As part of the organizational goal. and the foreign investment issue in India. he provided his recommendations on the appropriate entry strategy for the Indian market. After several researches and analysis made on the data obtained. including liberal depreciation allowances and generous deductions.The Indian market seemed clearly to be a mature one. taxation and attitudes of government officials. 2|Page . The Indian market is large and expected to grow over three-fold in the coming five years. 2. had made two fact-finding trips to India to survey the Indian market and competition for home water filters and purifiers. From the analysis made by Chatterjee and the Indian research agencies. 2011 Mid-term Exam: Part (1) Blair Water Purifiers India The company¶s mission is to provide equipment that will meet the needs of its target market in terms of filtration and purification of water for having high quality water. . Based on these findings. All saw the promise of huge market developing over the next few years. The government offered even more favorable tax treatment if foreign investors would locate in one of India's six Free Trade Zones.Trademarks and patents were protected by law in India. we can identify that : Strategic Analysis : Situational analysis : y External (Macro) Environment Analysis : 1-Political/legal factors: . Rahul Chatterjee.Economic factors: .liberalization had meant major changes in approval requirement for new commercial projects . As part of the geographic expansion of the company. one of the company's international market liaisons.June 11. .investment policies.Liberalization had opened the Indian economy to foreign investors . he had to evaluate the feasibility of launching the Company's own "Delight" home purifier in the Indian market. .Investment and trade regulations in 1996 meant that business could be conducted much easier than before. the company is also aiming to enter international market to be able to be known in both local and international level and position itself in the global competition.India governments offered a wide range of tax concessions to foreign investors. and objectionable tastes and odors. 50% of the target market used boiling to make clean water. Candle Filters: low price depend on material (plastic. This technology to purify water to a level beyond WHO standards. and then transfer it to containers for storage. 2011 Mid-term Exam: Part (1) 3.Water purifiers generally used stainless steel containers. profitable and attractive in a socially responsible sense . This procedure is cumbersome. 40% of the target market used a mechanical device to improve their water quality (candle filter and water purifiers). 4. microbial or cysts. porcelain or stainless steel) and easy of using. In addition. There are: 3|Page .Delight Purifier: Used a combination of technologies to remove four types of contaminants found in potable water: sediments.Considering one of the corporate social responsibility. and ineffective in removing physical impurities and unpleasant odors. y External (Macro) Environment Analysis: 1-Product : .June 11. 10% of the target market filtering their boiled water through candle filters. time consuming. 4 million households who had similar values and lifestyles but yet took little effort to improve water quality in their homes.The market for clean water in LDCs was huge. allow it to cool.Technology factors: .Traditional Method for Home Water Purification: Boiling: two to five liters of water for 10 minutes. calcium and other metallic contaminants peculiar to specific Indian regions. ineffective in eliminating bacteria and viruses Water Purifiers: better than Candle Filters. 2. organic and inorganic chemicals. They valued comfort and product choice they saw consumption of material goods as a means to higher quality of life. two modules are available to remove iron. 3.Consumers: 40 million consumers were similar in many respects to consumers in middle and upper middle class households in the united states and the Europe union. Candle filters were slow.Social factors : . There are three steps. Delight purifier has two models that were countertop and wall amount design. the first removed sediments.Competition: There are three major competitors. the second objectionable odors and colors and the third harmful bacteria and viruses . It helped prevent iodine deficiency diseases and permitted purified water to be stored up to eight hours without fear of recontamination Every year needs to replace the halogenated resin at a cost of Rs. 3. Second brand name was ³PureSip´ (used polyiodide resin to kill bacteria and viruses) Rs. Ion Exchange Began operation in 1964.further.000 liters (7. Aquarius The product contained nine stages (removed sediments. bad tastes.000 Used 2. and colors. killed bacteria and viruses. Eureka Forbes Joint venture Company in 1982 between Electrolux (Sweden) and Forbes Campbell (India) .the Company marketed a broad line of modern life style products.000 liters (4. Alfa Water Purifiers Symphony¶s Spectrum The Sam Group : ³Water Doctor´ purifier Batliboi At least 100 Indian companies made and marked candle filters. Others The Delta: a copy of Aquaguard. specializing in treatments of water they use brand name was ZERO-B (Zero-Bacteria) ZERO-B purifiers used a halogenated resin technology.It was clearly the market leader and came close to being India's only national brand. 200. fungi.5.500. 7% of Indian water purifier market . heavy metals. Might be a suitable partner to manufacture and distribute the Delight purifier. Singer's distribution channels were superior to those of any competitor in the market.2.4years for 25 liters per day). Singer The newest competitor to enter the Indian water purifier market.6 years for 25 liters per day). odors. They described their product as ³state of the art´. First brand name was ³Aquaguard´ (used ultraviolet rays to kill bacteria and viruses) Rs. 4|Page . including those of Eureka Forbrs. 2.Still the candle filters market deserved serious consideration ± perhaps Delight's entry strategy would attempt to" trade ±up " users of candle filters to a better safer product. but slower liters per minute was 70.June 11.500 person sales force (directly on households) to sale Aquaguard and independent dealers to sale PureSip. No single manufacturer of candle filter had more than 5% of any regional market .8 liters per minute was at 40. and nematodes) Life of flow rate at 3. Singer was a well-known and respected brand name in India . 2011 Mid-term Exam: Part (1) 1. 4. small assembly areas. Europe. Nearly 85% of population is not being reached by any competitor. External Threats : 1. y Highly polluted water entering treatment plants. The international division had sales offices. Tokyo. and distribution facilities in Frankfurt. Tax rates in India are somewhat higher than in the United States. with 380 having technical backgrounds and responsibilities. Internal Strengths: 1. Superior durability and reliability. 2.and upper ±middle ±class households in the USA and the European Union they liked foreign products. The Indian market strongly believes in the need for improved water quality that¶s supported by folklore. 2. 4. 4. 2011 Mid-term Exam: Part (1) SWOT analysis for entering India market : External Opportunities : 1. Water quality greatly diminished during the monsoons because of .Japan and Singapore . 5|Page . Around 40 million households were similar in many aspects to consumers in middle. 2. Very low labor costs. Three major competitors. 8. International success and growth since 1980 in Latin and South America. 3. y Numerous leaks and unauthorized withdrawals from water system. Indian customers are favorable toward Western products. Blair Company must apply for market entry to the foreign investment promotion board for industrial approvals. Africa.June 11.Employed over 4000 people. 4 million households are mid to high income and highly educated and do not treat water due to lack of confidence in available products. Government concerned with water quality as they took measurements at thousands of locations throughout the nation and advised consumers when water became unsafe. south Asia and Australia. and also Indian government is actively seeking foreign investors. Industry experts state product line superior in terms of quality and performance: faster flow ±rate than any competitor. marketing to large metropolitan areas. Eureka Forbes is a well established brand in India with established sales force. Blair Company was developing water solution since 1975. consumer activities and government's officials who regularly reinforced this need by describing the poor quality of Indian water. 9. 3. Singer India LTD is well established brand in India with established storefronts. Germany. 3. 7. 4. distribution and dealer networks and sales force. newspapers. 6. 5. joint venture partner. Placing twenty units with appropriate modules for three to six months in Calcutta and two other surrounding area homes will provide accurate performance data.The testing period also would give Blair Company representative time to identify a suitable Indian company as a license.and upper-middle-class households in the United States and the European Union. two modules are available to remove iron. 2. Delight must utilize electricity. Internal Weaknesses : 1. Industry experts state Blair product line prices usually higher than those of many competitors. Quality of Blair¶s product appears superior to Indian competitors.June 11. 40% of our target market used a mechanical device to improve their water quality. Currently. The Delight purifies water to a level beyond WHO standards and removing four types of contaminates found in potable water. or acquisition. Marketing Strategies That Emerge from the SWOT: Penetrating India's market with Delight will require a multi-stage strategy and implementation. Lack of established distribution or sales network in India. In addition. The decision to test really was a decision to enter . 3. y Field Test In Target Market: Delight can remove four contaminants commonly found in potable water. It is expected that Delight's performance will be above consumer expectations resulting in twenty homes accepting your product over the competition. Calcutta and surrounding areas suffer from iron contaminants. 50% of our target market used boiling to make clean water. calcium and other metallic contaminants peculiar to specific Indian regions. 6. 2011 Mid-term Exam: Part (1) 5. Favorable results from the field tests can be distributed to potential Indian business partners within the Calcutta region and surrounding areas. Penetration of the market requires first-hand knowledge that Delight and its modules can deliver purification standards above WTO and India consumer expectations. 4 million households who had similar values and lifestyles. no competitive product can successfully purify at Delight's standards. Also consider an unknown brand in India. - y - 6|Page . Blair¶s Target Market: 40 million households of middle. The average return on assets for all Indian corporations in recent year was almost 18%. y Tax Rates and Average Return on Assets: 1. Ministry of Finance. as brand recognition is realized. Polar Industries is the business partner of choice due to location.25. 2.June 11. Utilizing your potential partner's extensive dealership network will permit regional selectivity for Delight. Delight's advantage in the market is its ability to add modules to purify region specific water contaminants. Bangalore Onida Savak. Cost of skilled labor in India was around Rs. Initial operational scope should not exceed four specified regions although potential partners such as Polar Industries have 10. ³Virtually guarantee´ by consulting firm. at least at the start. Secretariat for Industrial Approvals. 2. Several ideal partners have been selected due to location. Apply for market entry to the Foreign Investment Promotion Board. In the future. Polar Industries. Delhi Recognized top competitors such as Eureka Forbes.20 to Rs. Aurangabad BPL Sanyo Utilities & Appliances. 2011 Mid-term Exam: Part (1) y Three Business Plans for Indian: 1. - - 7|Page . remittances of dividends and interest by Reserve Bank of India. Calcutta Videocon Appliances. Calcutta has iron contamination issues that can be solved by Delight. Blair company should not attempt to penetrate the Indian market without additional home product lines and assistance through an established Indian manufacturer. In addition. Ion Exchange and Singer India LTD do not have strong presence in any of these cities. Corporate tax rates in India probably were somewhat higher than in the United States. national dealer sales can be re-examined.000 All major competitors in India have various home product lines that provide additional sales revenues and manufacturer name recognition. y Recommendations: Strategic focus on rural or smaller urban areas would not be wise. and selection of home products. manufacturing experience. 8. dealer networks and business success. for United States corporations was about 11%.000 or more dealers. Ministry of Industries.000. Approval of any royalties and fees. 3. Market Penetration Strategy: Estimated Initial Investment Cost:Rs. Blair Company should find an Indian partner. To ensure market availability. 2. Delight will recoup its field test cost. Joint venture / Acquisition consideration : Entering the market in the form of a joint venture or an acquisition. 8|Page . At the conclusion of the field-testing and selection of prime joint venture partner. Licensee Consideration: Entering the market as a joint working arrangement with a license. Marketing Campaign "Delight your wallet and pallet with our advanced water purification modular system.June 11. field-testing should begin immediately in Calcutta as soon as your business proposal has been accepted. Don't wait. Want the calcium out of your water? How about those peculiar metallic contaminates specific to your region? Delight in knowing your drinking water is free from contaminates. 2011 Mid-term Exam: Part (1) Q2 ± Market Entry policies: In order to reach our goal we have identified three different alternatives: 1. Assuming the joint venture agreement calls for even split of profits. on the other side there would be a limited control over product quality and marketing mix activities and there would be the possibility of never really know the Indian market well. During field testing of your products potential joint venture partners can be thoroughly researched. India's foreign investment regulations require lengthy approval processes. Delight is having an affordable water purification solution. see the dealer nearest you!" Summary and Request for Action India's market is ready for Delight's entry. Also you may lose your image in the international market. financial investment and annual fixed costs would be much higher but on the other side other side there would be a limited control over product quality and marketing mix activities. initial investment cost and first year fixed overhead expenses in the first full year of sales with 100 percent market potential met. The most beneficial method is to enter as a joint venture. Want the iron out of your water? Just add the iron module to your Delight. the company would have minimal financial costs and the revenue would come more easily and quickly. xcom/essays/Blair-purifiers-india www.casestudywithsolution. 2011 Mid-term Exam: Part (1) Reference: www.com/doc/Blair-company-Inc www.docshare.June 11.oppaprs.com 9|Page .