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Units Sold
Description
Boiling
Candle
Purifier
Unboiled Total
% of Target Households
50
20
20
10
100%
Number of customers
22
8.8
8.8
4.4
44 million
Target
39.6 million
Sales revenue(in million) Sales commission(in million) Advertising 1090 100 1000
Misc 19 3
Market share
Ultraviolet rays x
Polyiodide resin x
Storage of water x
Electricity x
Licensee consideration
Initial investment First year Maximum First year Minimum capital($) Annual fixed cost($) Annual fixed cost($) Production facilities Office facilities 30000 5000 40000 15000
Break even units(for indian national) to be produced to offset the annual fixed cost(in RS)= (1
Break even units(for non indian national) to be produced to offset the annual fixed cost(in RS)= After offsetting the annual costs we will start getting profits.
Licensee consideration
offset by licensee's company for technology transfer and personnel training if an indian national is not hired if an indian national is hired
Joint Venture
Two Region(market potential=55000) Skimming Dealer channel(in 000) Direct Salesforce(in 000) 4000 4000 4000 7200 8000 11200 650 500 12308 22400 22.4 40.7 Four Region(market potential=110000) Skimming Dealer channel(in 000) Direct Salesforce(in 000) 8000 8000 7000 14000 15000 22000 650 500 23077 44000 21.0 40.0 National market(market potential=110000) Skimming Dealer channel(in 000) Direct Salesforce(in 000) 30000 30000 40000 88000 70000 118000 650 500 107692 236000 97.9 214.5
Initial investment(I) Annual fixed Overhead expenses Total expenses=(I)+ Contribution Breakeven units Marketshare(%)
Initial investment(I) Annual fixed Overhead expenses Total expenses=(I)+ Contribution Breakeven units Marketshare(%)
Initial investment(I) Annual fixed Overhead expenses Total expenses=(I)+ Contribution Breakeven units Marketshare(%)
Penetration Dealer channel(in 000) Direct Salesforce(in 000) 4000 4000 4000 7200 8000 11200 300 200 26667 56000 48.5 101.8 Assuming that we sell all the products that are produced for reachin
Penetration Dealer channel(in 000) Direct Salesforce(in 000) 8000 8000 7000 14000 15000 22000 300 200 50000 110000 45.5 100.0 Assuming that we sell all the products that are produced for reachin
Penetration Dealer channel(in 000) Direct Salesforce(in 000) 30000 30000 40000 88000 70000 118000 300 200 233333 590000 212.1 536.4 Assuming that we sell all the products that are produced for reachin
Problems Whether to invest in water purifiers in India If yes, What would be the best mode of FDI in India? How would it deal with the competion in India? Singer's product is as good as they promise there wil be a fight Alternatives: 1 Invest/do not invest 2 a)Joint working b) joint venture c) Aquisition 3 Pricing-Skimming and penetration Positioning-Performance and taste value for money/low price, safety, health,convenience,
Aquaguard weak n removing odoures and inorganic solutes like nitrates and iron compounds flow rate low-1ltr/min price, safety, health,convenience,attractive styling, avoiding health related bills and superior american technology
Description % of Target Households Number of customers Market for Purifiers in 1996 Zero B+Singer+Others Eureka Forbes Total Market Share
Boiling 50 22
Candle 20 8.8
Purifier 20 8.8
Unboiled 10 4.4
No of units sold Market Share 60000 24% 190000 76% 250000 100%
Dealers Salesforce
Total 100% 44 million Margin of dealers for Blair Purifier Skimming Penetration 7.2727273 7.317073171 10 9.756097561 For Singer the margin is 5%