The case here talks about the current situation in India in the field of home water purifiers. Rahul Chatterjee, an international market liaison for Blair Company Inc. had been given the challenge of expanding their business in home water purifiers to India.
The decision that Blair Water Purifiers have to make is whether they should enter the Indian market or not. It is a tough ask for Blair to estimate the market potential for the Indian market. On one hand Mr. Chaterjee feels that the market is a mature one with just 4-5 competitors, whereas on the other hand he feels that it is a fragmented one with over 100 small and regional manufacturers.
To Vikalpa Office,
The current situation in India, is such that the quality of water was quite poor, and consuming such water without filtration could be hazardous. The target market for the situation analysis is 40 million.
Traditional Method for Home Water Purification
Of the various methods available for water purification, it was found that about 20 million people of the target market used the traditional boiling of water as their purification method. Boiling was considered inexpensive and helped in removing bacteria.
Mechanical methods for home water filtration
In the mechanical methods of home water filtration, which comprised of about 16 million people, half of the people used candle filters as they considered it cheap and easy to use(price ranging for Rs.350-1100), whereas the rest of them used water purifiers (price ranging from 2000-7000). Unlike Candle filters, which were ineffective in removing bacteria and viruses water purifiers employed a three step process to water filtration which filtered water much more effectively as compared to candle filters.
The remaining population seldom boiled water and did not resort to any filtration process.
If Blair Purifiers were to enter the Indian market, they would do so in 3 ways, 1) Joint working arrangement i.e to supply