Mercan System Inc.
Introduction
The company was established in 1980 by Eugene Mercan and the first product was a desalinator. In 1996, the product line included desalinators, particle filters, ozonators, ion exchange resins, and purifiers. In 1996, sales revenues was almost $400 million (annual growth average 12% for past five years), with an expected profit close to $50 million. In 1999, water purifier was added to product line by using brand name “Delight”.
The company has identified a market for its water purifier in developing countries where there is a huge, profitable and attractive market for clean water. Rahul Chatterjee, an International market liaison has been gathering information about the Indian market for home water purification devices.
Statement of the Problem
Mercan Systems would like to thrive in developing countries. They are seeking market entry elements and entry strategy to the Indian market for home purification devices. The entry strategies would then be compared with those of two other Mercan liaisons who focused on Argentina, Brazil, and Indonesia.
Indian Market for Home Water Filtration and Purification
The characteristics of this market is complex but Chatterjee found out that there are about four or five competitors in the market with only one or two companies in India’s 25 states. The market may be in its early growth stages and many Indians felt the need for improved water quality.
Target Market
44million households comprising of:
• 40 million households of middle- and upper-middle-class households in the United States and the European Union
• 4 million households who had similar values and lifestyles
In addition, 50% of our target market used boiling to make clean water, 40% of our target market used a mechanical device to improve their water quality while 10% of the target market owned neither a filter nor a purifier and seldom boiled their water.
Market Segmentation
Traditional Method for Home Water Purification:
Boiling- Two to
The company was established in 1980 by Eugene Mercan and the first product was a desalinator. In 1996, the product line included desalinators, particle filters, ozonators, ion exchange resins, and purifiers. In 1996, sales revenues was almost $400 million (annual growth average 12% for past five years), with an expected profit close to $50 million. In 1999, water purifier was added to product line by using brand name “Delight”.
The company has identified a market for its water purifier in developing countries where there is a huge, profitable and attractive market for clean water. Rahul Chatterjee, an International market liaison has been gathering information about the Indian market for home water purification devices.
Statement of the Problem
Mercan Systems would like to thrive in developing countries. They are seeking market entry elements and entry strategy to the Indian market for home purification devices. The entry strategies would then be compared with those of two other Mercan liaisons who focused on Argentina, Brazil, and Indonesia.
Indian Market for Home Water Filtration and Purification
The characteristics of this market is complex but Chatterjee found out that there are about four or five competitors in the market with only one or two companies in India’s 25 states. The market may be in its early growth stages and many Indians felt the need for improved water quality.
Target Market
44million households comprising of:
• 40 million households of middle- and upper-middle-class households in the United States and the European Union
• 4 million households who had similar values and lifestyles
In addition, 50% of our target market used boiling to make clean water, 40% of our target market used a mechanical device to improve their water quality while 10% of the target market owned neither a filter nor a purifier and seldom boiled their water.
Market Segmentation
Traditional Method for Home Water Purification:
Boiling- Two to