Blair Water Purifiers India

Blair Company employed over 4000 people with 380 having technical backgrounds and responsibilities Cash Flow: company sales revenue for 1996 would be almost $400 million with an expected profit close to $50 million Annual Growth in sales revenue: averaged 12% for the past 5 years Capital assets: ignored by Chatterjee Sales in the international division: would reach almost $40 million in 1996, about $70 million would come from Latin and south America, $30 million from Europe and $40 million from south Asia and Australia

Materials: ignored in the analyses though it’s important to scan the need materials for operation and theirs availability in the market, he only pointed that importing a few key components would be necessary at the start of the operations The Mckinsey 7 S model must be used here to finalize the step of internal marketing audit and this wasn’t done by chatterjee Mckinsey 7S.By analyzing these 7S we can know the firm’s core competences and it’s competitive advantage, which can be augmented for new market entry. Check List for internal audit:

While doing internal audit for strategic analysis, we can also use the below check list to recognize the organization’s strength and weaknesses and it must be weighted because some weaknesses are of less importance than others , while other strengths are of more importance than others 2-2 external microenvironment analyses: Stakeholders: these were ignored in the analyses although it’s important to scan the stakeholders for the organization Suppliers: again it was ignored in the analyses, our suggestions that the analyses of the suppliers must have be done from the following perspectives:

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Their number, their prices, their bargain power (if any), their strategic alliances with competitors (if any present), their distribution channels, their management structure Consumers and demand forecast: Consumer’s analysis is essential for any strategic planning as they are the main concern for the organization and this must be done through: Demand forecasting Consumers (end users needs) First: Demand forecast: Chatterjee estimated the market potential based on collecting unit sales estimates for a 10-year period for 3 similar product categories –vacuum cleaners, sewing machines and colour televisions.

In addition a Delphi based research firm had provided him with estimates of unit sales of Aquagard, the largest selling water purifier in India. Chatterjee had used the data in two forecasting models available at Blair Company along with three subjective scenarios -realistic, optimistic and pessimistic. But it was conservative as they described only first time sales not replacement sales and it only applied to industry sales in larger urban areas which was the present industry focus. Second End Users needs: The target segment was around 40 million households plus those in another 4 million households that share common needs. They valued comfort and product choice. They liked foreign brands and would pay higher price for such brands. One thing that seemed certain was that many Indians felt the need for improved water quality. Folklore, newspapers, consumer’s activities and government officials regularly reinforced this need by describing the poor quality of water. Quality suffered especially during the monsoons and because of numerous leaks and unauthorized withdrawals from the water system

Better educated, wealthier and more health conscious consumers took steps to safeguard their family ‘s health and use water purifiers to purify the water all over the year. This is the target segment for Chatterjee. They are people who value comfort and product choice. They saw consumption of material goods as a way to a higher quality of life. o His analysis was missing forecasting the growth of this segment as his potential market is based on the educated aware segment but he missed forecasting the growth of this segment as the growth of the segment closely relates to the growth of the sales The analysis also missed a deeper look at the target segment. From our point of view, market survey should be conducted to show in details the target segment preferences, their demographics (age, social class, occupation, style of life) whether they like flavours to be added in the water or not, their ethnic direction, even their political views (if they are anti-Americans or not) as these factors may affect potential sales in the short and long terms . Consumers in the target market needs (according to Chatterjee) can be summarized as the following

1. Product performance to remove sediments, bacteria and viruses
2. Purchase price this is only concern for consumers who boiled water who count for 50% of the target market
3. Ease of installation
4. Warranty and availability of financing for purchase

Factors affecting consumer behaviour: We should analyze the uncontrollable and controllable factors affecting the Indian consumer behaviour, the uncontrollable factors are the sum of the macro environment analysis (PEST) but the controllable factors reflect the marketers efforts in designing the 7 PS in a way that make the product convenient for the consumer so from the analysis of the target market done by chatterjee.

Also there are other factors like motivation, life style, consumer perception and attitudes towards the product From the consumer analysis we can summarize that consumers in the target market need product of high quality, medium price (to be able to target a wider segments especially in the rural areas as they count 80% of the population and if they were successfully penetrated this will result in huge sales), ease of installation, warranty is needed, the emphasis on the need of healthy life style and better water will be a motive for consumers to buy the product.

For consumer analysis, we suggest that he should have used also the decision making process to know exactly what are the forces that affect the consumer’s buying behaviour Consumer buying decision process: So according to this model we should analyze how consumers in India become aware of the water problem and so the need for purifiers is recognized, then from where consumers get the information (from magazines, newspapers, reference groups) , then how they evaluate alternatives (based on price or quality or warranty or capacity . Then the purchase and post purchase evaluation Competition analysis:

It is very important for any strategic marketing plan to deeply analyze competition especially when it is done for new market entry Steps of Product /Market analysis

1. Identifying the generic need satisfied by the product categories (The need for improved water quality)
2. Identify the product categories (types / Classification) The need for water purifiers for household
3. Identify the specific product-markets Water purifiers, candle filters
4. Identify the product-variants (brands) competing with each other.

Positioning is determined according to the price strategies that Chatterjee mentioned whether if it skimming or penetration, product design for the skimming strategy would be noticeably superior with higher performance and quality longer warranty period, more features and more attractive appearance than the design of the penetration There are several positioning possibilities performance and taste, value for the money/low price, safety, health, convenience, attractive styling, avoiding diseases and health related bills and superior American technology. The only position he considered taken in the market was that occupied by Aquaguard protect family health and service at your doorstep.

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