Blair Water Purifiers India
PMBA – MAR 6816
Christina Crosby, Jake Lewicki, Jamie Stengle and Regina Velliquette
Blair Company Inc. was founded by Eugene Blair in 1975. 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. As part of the organizational goal, the company is also aiming to enter the international market and position itself in the global arena.
The Indian market is large and expected to grow over three-fold in the coming five years. Nearly 85% of population is not being reached by any competitor. Very low labor costs and central ...view middle of the document...
What is known to Blair is that Indians have a need for improved water quality that is also stressed by Indian politicians to the general population.
If the company chooses to enter the market the following key points must be managed:
What strategy will results in the greatest market share?
Due to the relatively early stages of the water purification market in India the proper strategy must be selected which will utilize our available resources in the most efficient manner in attempting to gain market share. Established strategies of competitors exist but there is room for innovative strategy due to the immaturity of this market.
What distribution channels will be utilized?
In order to establish brand recognition and market share we can approach the customer through a variety of channels. Weather selling the product through a multi-brand dealer or establishing a door-to-door sales force we must examine the most efficient ways of interacting with potential customers.
What pricing strategy will be used?
Considering the importance of initial price during product introduction management must match pricing with the comprehensive marketing strategy. As a price leader the company could increase turnover, however, offering a product with advanced features may help establish a reputation of quality.
What legal structure will be used to form operations?
Entering a new geographic location is a risky venture. The proper legal structure needs to be established which will be functional yet allows for minimal tax expense, limits liability and risk, and guarantees repatriation of earnings. Because India’s foreign investments regulations requires a lengthy approval process, decision time is limited.
These alternatives solutions have been identified:
The Indian market shows potential room for Blair products in several areas. In specific regions, no product currently on the market yields the desired results. The lack of a quality product will enable Blair products to succeed where others have failed.
Option 1: Licensee
Blair would supply the key purifier components to an Indian company, which would manufacture and market the assembled product.
Option 2: Acquisition
Blair would purchase an existing Indian company whose current operation would be expanded to include the water purifier.
Option 3: Joint Venture
Blair would enter into a partnership with an existing Indian Company expressly to manufacture and market water purifiers. Profit would be split equally.
The following criteria were select to help decide which alternative is best to enter into the Indian market. (Scale is 1-5) 5 being most important.
Profit Margin = 5
This criterion considers the profit margin for the different alternatives. Each option’s potential contribution per unit for Blair was calculated and the option with the highest profits will carry the most weight.