Market entry strategies and challenges in India

Situation Analysis
Current Market Scenario and Market potential

Investment & Govt. regulations

Few major competitors

Product design

Internal Challenges

Alternatives of Entry

Joint working arrangement license fee Joint venture company split profits after minimum period

Acquisition - profits

Competitor Analysis
Aquaguard(Eureka Forbes) Puresip(Eureka Forbes) Zero-B(Ion Exchange) Aquarius(Singer)
No Elect, No plumbing, 3 stage, 20l or 8 ltr 70k discard, 40k 4-6 yrs, 9 level, 3.8l/m 4000 Electricity Dependent, No storage, Non Elect, 3 stage, storage dint solve (odor, chemical), 3 levels. possible 5500

Product Price

2000 2000 + 200/resin

Place

Sales Force (2500)

Store and distributors

Sales Force Planned

Exiting Channel - 210 dealers, 3 channels, 400 salespersons, 3000 independent dealers

Promotion Market Share Investment

Sales Force (2500) + Advertisement compliments sales force 190k or 76% Sales Force 120m (100m) Ad 1m

No heavy ad. To come up with 10sec TV ads 7% or 17.5k FC Research-10m marketting 3m

TV, newspaper, sales force, outdoor 42.5k or 17%

Sales Revenue

1090m

<20m . 35m(unitsxprice per unit)

Evaluation of Alternatives
Licensing
Minimum Cost (USD) Maximum Cost (USD)
Capital Cost Office equipment & facilities Annual Fixed cost Total Cost Average Royalty Break-even units 30000 5000 15000 50000 8.33 6002.40096 30000 5000 40000 75000 8.33 9003.601441

Joint Venture
Two-region cost comparison
Dealer Estimated Revenue Fixed Expenses Initial Investment Estimated Profit All figures in Million $ 35 4 4 27

Skimming
Sales Force 27 7.2 4 15.8

Penetration
Dealer 16.5 4 4 8.5 Sales Force 11 7.2 4 -0.2

Recommendation

Entry through Joint Venture

Two Region Strategy

High quality product premium to rival products

Skimming pricing strategy

Strong Dealer Network, POP staff

High Expenditure on Advertisements & product promotion