Blair Water Purifiers India

1. Group 1 Blair Water Purifiers India

2. NGUYEN PHAM NHUT THIEN (Tina) M987Z240 NADIA NILA SARI M987Z250 VU THI AI VANM987Z256

3. Contents • Background • Competitors • Recommendation & Analysis

4. Background • Blair Company • Indian Market for Home Water Filtration and Purification • Situations in market of India • Traditional method for Home Water Purification • Mechanical method for Home Water Filtration and Purification • Foreign Investment in India

5. Blair Company • Eugene Blair founded Blair Company in 1975. • Desalinator was the first product, used in Florida to remove salts from brackish well water supplied to residents. • By 2000, new products were added rapidly, the product line included desalinators, particle filters, Ozonators, ion exchange resins and purifiers. • In late 1997, the final design has the brand name “Delight” • For 2000, Sale revenues would be almost $400 million, with an expected profit close to $50 million. • Annual growth in sales revenues averaged 12 % for the past 5 years.

6. Situations in market of India • The market seemed clearly a mature one, with 4 or 5 Indian competitors in the market. • The market was fragmented, with no large competitor having a national presence. • Competing with only one or two companies of India’s 25 states. • Its stage is in early growth stages. • Many Indians felt the need for improved water quality.

7. Target Market in India • Around 40 million of better-educated, wealthier, more health-conscious consumers took steps to safeguard their family’s health and often continued these steps year-around. • Another 4 million households had similar values and lifestyles, but as yet took little effort to improve water quality in their homes. • 50% of target market used water boiling method. • 40% of the rest used Mechanical Methods. Including 20% used candle filters, 20% used Water Purifiers.

8. Traditional method for Home Water Purification • Boiling 2 to 5 liters of water for 10 minutes, allow it to cool, and then transfer it to containers for storage (often in a refrigerator). • This procedure is affected the palatability of water, leaving the purified product somewhat “flat” to the taste. • Boiling also was cumbersome, time consuming, and ineffective in removing physical impurities and unpleasant odors.

9. Mechanical method for Home Water Filtration and Purification • Candle Filters • Low price depend on material (plastic, porcelain or stainless steel) and easy of using. • Candle filters were slow, producing 15 liters (one candle) to 45 liters (3 candles). • It is needed to be removed, cleaned, and boiled for 20 minutes. • Price Rs.350 to Rs.1,100. • Water Purifiers • Better than Candle Filters. • There are three steps, the first removed sediments, the second objectionable odors and colors and the third harmful bacteria and viruses. • Price is Rs.2,000 to Rs.7,000.

10. Three ways of entering Indian Market Joint working arrangement • Supply key purifier components • License fees will be calculated by per unit basis over the item of the agreement Joint venture company • Be partner with an existing Indian company • Share 50% profit Acquisition • Purchase an existing Indian company then expand to include the water purifier • All profit will belong to us

11. Tax and Return on Assets Process of applying for Indian market Corporate tax rates in India probably were somewhat higher than in the United States The average return on assets for all Indian corporations in recent year was almost 18%, for United States corporations was about 11%. • Apply for market entry to the Foreign Investment Promotion Board, Secretariat for Industrial Approvals, Ministry of Industries. • Approval of any royalties and fees, remittances of dividends and interest by Reserve Bank of India, Ministry of Finance. • “Virtually guarantee” by consulting firm.

12. Competitors

13. Products

14. Promotion

15. Place

16. Recommendation & Analysis • Product : Design and Benefits • Price : Skimming or Penetration Strategy • Distribution : Dealer • Promotion : Advertising and door to door • Strategic focus market : Urban or Rural • Market Entry : Licensee or Joint Venture

17. Product Delight purifier Benefits : • Remove four types of contaminants found in potable water – sediments, organic and inorganic chemical, micro bials or cysts, and objectionable tastes and odors. • Technology is effective as long as contaminants present at the “reasonable “ level. • Beyond WHO standard of technology to purify. Product Design : • Model and specific appearance reflect a western, high technology school of design to distinguish the Delight purifier from competitors products. • Two kind of design : wall mouth design and countertop design. Customer prefer the countertop model better then wall mount design.

18. Product • Technical detail DELIGHT PURIFIER: • Filter flow rates • Storage capacity • Unit layout • Overall dimension • Number of special feature • Possibility of small battery to operate the filter for several hours in case of a power failure • “bells or wristles” to tell them that the unit indeed was working properly. • Allow users to add floride, vitamins, and flavoring in their water.

19. Example of design water purifier Countertop Water Purifier Wall Mount Water Purifier

20. Product & Price

21. Pricing strategy • Skimming Pricing & Penetration Pricing

22. Pricing strategy • Our group choose skimming pricing strategy which is the price will sets relatively high  price at first, then lowers the price over time. • With below consideration : • Image of the product : high innovated positioning in the market. • Allow return for the set up cost for first launch in advertisement and promotion. • Positioning in ‘prestige’ conscious than price conscious.

23. Distribution & promotion • DISTRIBUTION : For the distribution, we will open several dealer in urban area especially on West coast, also open small booth / stand in existing shop of patnership company. • PROMOTION : Door to door salesforce being an effective advertising to introduce the benefits of Delight purifiers, besides the product will be advertise in newspaper, magazine and television.

24. Strategic Focus Market • Approximately 80% of diseases in India are caused by water borne micro organisms, awareness of health risks linked to unsafe water is still very low among the rural population. • The urban Indian is definitely more health conscious and understands the necessity of purifying water before it is fit for consumption. It is estimated that roughly 7% of urban Indians use non manual water purifiers. • Besides, the lack of adequate distribution and communication infrastructure in rural of India meant that any market entry would begin with larger Indian cities, most likely on the west coast. So, Delight purifier will be focus on Urban market.

25. Market Entry Consideration • Joint Venture Consideration: Disadvantage : • Financial investment & annual fixed would be much higher • Different cultures and management styles result in poor integration and co operation Advantage : • Have fully control over the production, operation and standardization of product • Provide companies with the opportunity to gain new capacity and expertise • - access to greater resources, including specialized staff and technology • sharing of risks with a venture partner Licensee Consideration : Disadvantage : - Couldn’t have fully control over the licensee’s operations - Create technology may always depend on the supplier Advantage : • Company financial investment would be minimal. • Possible to reach the market faster.

26. Market Entry Consideration • Based on the consideration above, we prefer Delight purifier to entry the market by joint venture. • With below consideration : • the product of Delight purifier need a lot of control on their operation to keep the product on high quality and standard as it is sets the product as high innovated water purifier. • Allow company to know new geographic markets in India ( ex. Rural market ) or do innovated • Sharing risk to the partnership company • The partnership will be with one of Indian company that promising like : Polar Industries, Milton Plastic, Videocon Appliance, BPL Sanyo Utilities and Appliance, OnidaSavak, Hawkins India, Voltas.

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