Professional Documents
Culture Documents
Blair Company is in its early steps of the market investigation. Its entrance to the water filtration industry was a success by introducing its first product a desalinator used by mobile home. Since then the company crawl in the industry to include other product such as, particle filters, ozonators, ion exchange resins and purifiers. Five year after its inauguration in 1975 the company went global in 1980, invading the Mexican market first then other Central American countries to end up by entering the European market as well. Its international division has generated $140 million in 1996. Blair Company employed 4000 people with sales revenue over $ 400 million and an expected profit of $ 50 million. With a new product line named Delight, a water purifier, Blair Company has detected success signal from the Indian market, where 100.000 people die of water contamination every year and a rural population estimated at 700 million residing in about 1.42 million habitations spread over 15 diverse ecological regions and counting for around 80% of the population
profits is easy to obtain if the investor could show that the profit repatriated is from the export operations. The general atmosphere for foreign investors is steadily favourable Economical Factors Under the new legislation regarding foreign investors; the government of India has regulated the Tax law in a manner so to encourage the exports. Companies were taxed according to the income that comes only from their internal market operations, which leaves them the opportunity to have almost a full profit on the export operations. The purifiers industry has all the ingredient for a promoting future, especially that many Indians felt the need for improved water quality; a need that is reinforced by the government officials, consumers activists and the local newspapers. As the present focus was only on the urban areas, its preliminary sales forecast only for the next ten years were signalling a growing and profitable market estimated at 44 million households. Socio-cultural Factors Under the social context, Blair Company preliminary research has indicated that beside the urgent need of the water purifiers, the awareness of the purifiers necessity to obtain healthy water is poor. Awareness about the dangers related to contaminated water is a part and parcel of the purchasing power. Price is a factor and a concern for the people who choose to boil the water. As it was estimated by Chatterjee, 50 % of the target market believes in the efficacy of the boiling procedure (traditional method) and not aware of it inefficacy in removing physical impurities and unpleasant odours. Inexpensive mechanical methods were also used counting for 40% of the target market. The most mechanical method used is the candle filters they are priced at Rs 350 and Rs 1100, but ineffective in eliminating bacteria and viruses. The reaming of the market uses the modern water purifiers. Their prices were ranging from Rs 7,000 and Rs 2,000. The better educated, wealthier and more health conscious consumers took steps to safeguard
their familys health and use water purifiers to purify the water all over the year, which represent Blairs target segment Technological Factors In order to ensure quality products and service, the government of India put regulation for the industrial entering the national market. The technology used by the company should be new, modern and has proven success in similar markets.
PureSip
Zero B
2-Wall mounted 3-Small amount of carbon 4-Ineffective for strong odors and nitrate and iron compounds removal 5-No storage capacity 6-Need electricity 1-Uses Polyiodide 2-No electricity needed 3- Water storage option 1-Halogenated resin tech 2-Three purification stages 3-Prevent iodine deficiency diseases 4-No electricity needed 5-Water storage option
2-2500 sales force 3-Dynamic Sales commercials, advertising magazines and newspapers
RS 2,000
Rs 2,000
Aquarius
Remove sediments, heavy metals, bacteria, fungi No electricity Life time: 40,000 to 70,000 litres
RS 4000
1-Independent retailers 2-Very limited advertising 3-Small channel distribution 1-Light TV advertisements 2-Few Point of sales brochures 3-Low Marketing expenditure 4-No awareness 5-Three years of existence 6-Future aggressive advertising campaign Heavy advertising Attractive design 300 Dealers Well trained staff
Product Characteristics Price Remove Sedimentation Remove Heavy metal Remove Odor Remove color Kill Bacteria & Viruses Fungi Remove bad taste and strong colours Storage Capability
Yes
2 liters
The best Market entry Method Licensing: It is a contractual agreement whereby Blair Company (the licensor) makes available its intangible assets the knowhow and the companys name to an Indian company in return for royalties or other form of payments. Its financial implications are as follow Annual fixed costs should not exceeds $ 40,000 30,000 in capital for production facilities and equipment + $ 5,000 for office facilities these investments would be offset by the Licensees payment to Blair company for technology transfer and personnel training Decrease of annual fixed costs to $ 15000 once Indian national are trained The licensee will generate around 280 R.S for each unit sold in the domestic market and Rs 450 for exported units, so the average will be around Rs 300.