Group 1
NGUYEN PHAM NHUT
THIEN (Tina)
M987Z240
NADIA NILA SARI
M987Z250
VU THI AI VAN
M987Z256
Background
Competitors
 Recommendation & Analysis
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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
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Foreign Investment in India
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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.
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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.
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.
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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.
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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.
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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.
Joint working arrangement
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Supply key purifier components
License fees will be calculated by per unit basis over the
item of the agreement
Joint venture company
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Be partner with an existing Indian company
Share 50% profit
Acquisition
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Purchase an existing Indian company then expand to
include the water purifier
All profit will belong to us
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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.
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Corporate tax rates in
India probably were
somewhat higher than in
the United States
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The average return on
assets for all Indian
corporations in recent
year was almost 18%, for
United States
corporations was about
11%.
Eureka Forbes
• Joint venture
company in 1982
between
Electrolux
(Sweden) and
Forbes Campbell
(India).
• First brand name
was “Aquaguard”
(used ultraviolet
rays to kill
bacteria and
viruses) Rs.5,500
• Second brand
name was
“PureSip” (used
polyiodide resin
to kill bacteria and
viruses) Rs.2,000
Ion Exchange
• Began operation in
1964, they use
brand name was
ZERO-B (ZeroBacteria)
• ZERO-B purifiers
used a halogenated
resin technology.
• 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. 200.
Singer
• The newest
competitor in
India . Was
subsidiary of The
Singer Company.
Located : United
State
• 1989 : Minority
share 49 % sold to
Indian investor
• 1983 : Change
ownership led to
construction of
manufacturing
facilities in India
for sewing
machine
• 1994 : expand to
home appliance
Eureka
Forbes
Water
purifiers;
vacuum
cleaners;
mixers/
grinders
Ion
exchange
Treatments
of water;
processed
liquids;
wastewater
in industrial
markets
singer
Sewing
machine; Food
processor;
Irons; Mixers;
Toaster; Water
heater; Ceiling
fans ; Cooking
ranges; Color
televisions
Eureka
Forbes
Ion
exchange
Singer
• Television commercial; advertisements in
magazines and news
• Total advertising expenditures : RS.1 million
• A modest number of ten-second TV commercials
would be aired on Zee TV & DD Metrol channels;
Ad focus on educating consumers with position
• Total marketing expenditures for Rs. 4 million
• Heavy advertising introduction in Delhi ; TV
advertisement, newspaper, outdoor and transits
advertising as support.
• 10 singer showroom offer demonstration.
• Singer target : 40.000 units over next two years.
• Singer well know and respected brand in India.
Eureka
• Independent dealers
Forbes
Ion
• Limited, five dealer in Calcuta
exchange
singer
• Available in Calcutta, being sold in Bombay and Delhi
• superior
• Singer 3 distribution channel were 210 company owned showrooms located in
major urban areas around the country. Service and knowledgeable personnel.
• 3,000 independent dealers, received inventory from an estimated 70 singer –
appointed distributor.
• Distributor earned margins 12 % of retail price for aquarius, while dealers
earned margin of 5 %.
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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
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.
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Technical detail DELIGHT PURIFIER:
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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.
Wall Mount Water
Purifier
Countertop Water
Purifier
Feature
Delight
Singer
ZERO-B
PureSip
Aquaguard
4,400 - 5,900
4,000
2,000
5,500
2,000
Remove Sedimentation
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Remove Heavy metal
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X
X
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Remove Odor
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√
√ (Weak)
√ (Weak)
Remove color
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√
√
√
√
Kill Bacteria & Viruses
√
√
√
√
√
Fungi
√
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X
X
X
neriatodes
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X
X
X
Remove bad taste
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X
X
Flow rate
fastest
3.8 liters/min
n/a
n/a
n/a
Life time
n/a
40,000 liters, 70,000 liters
1 yr (filter)
n/a
n/a
Maintenance Cost
n/a
n/a
Rs.200/yr
n/a
n/a
Require electricity
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n/a
X
X
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Additional Feature
Battery, too
high
standard
n/a
Iodine
n/a
stored safely
Price
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Skimming Pricing & Penetration Pricing
DEALER
CUSTOMER CONTRUBUTIO
N MARGIN
Skimming
Strategy
Rs. 5,000
Rs. 5,900
Rs. 650
Penetration
Strategy
Rs. 4,100
Rs. 4,400
Rs. 300
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.
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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.
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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.
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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.
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
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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, Onida Savak,
Hawkins India, Voltas.
THANK YOU