Company Name Eureka Singer

Product Aquagaurd Pureslip

Units Sold

Price Per unit

Sales force Dealers 2500

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

Total number of potential customers

Target

39.6 million

Company Eureka Forbes Ion Exchange

Sales revenue(in million) Sales commission(in million) Advertising 1090 100 1000

Misc 19 3

Total revenues=revenues-expenses(in million) 970 17

Market share

Company Carbon filter Aquaguard Puresip Zero B Singer

Ultraviolet rays x

Polyiodide resin x

Storage of water x

Electricity x

flow rate(litre per min) 1

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

to offset the annual fixed cost(in RS)= (15000*35)/300 = 1750 units

d to offset the annual fixed cost(in RS)= (40000*35)/300 = 4667 units

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

re produced for reaching the breakeven.

re produced for reaching the breakeven.

re produced for reaching the breakeven.

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,

Dealers Salesforce Singer

Margin of dealers Skimming 7.272727 10

Penetration 7.317073171 9.756097561 better quality,strong distribution channels 4000 rs

5% 12% distributors pressure requirement

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

For Singer the margin is 5

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%