Introduction
Found in 1980, Fairchild Water Technologies Inc. manufactures, designs, and markets water treatment systems for desalination, purification, and filtration. The international market liaison for Fairchild Water Technologies, Rahul Chatterjee, has comprised research on the India market. His research will supply the firm with pertinent information on the best route for global marketing.
Definition of the problem
Fairchild Water Technologies, Inc. must determine whether to enter the India market. If the firm decides to enter the market, a decision on what mode of entry should the company adopt and whether to initiate field testing prior to entry.
Alternatives and Uncertainties
The firm has six major alternatives each proposed by Chatterjee as potential options for the company.
1. To implement a marketing plan for entering into the India market under a licensing agreement.
2. To execute a marketing plan for entering into the India market under a joint venture with a skimming pricing strategy.
3. To execute a marketing plan for entering into the India market under a joint venture with a penetration pricing strategy.
4. To create a marketing plan for entering into the India market under an acquisition with a skimming pricing strategy.
5. To create a marketing plan for entering into the India market under an acquisition with a penetration pricing strategy.
6. To forgo entering into the India market.
Not only does the company have six potential alternatives, but the firm also has several uncertainties if it enters into the India market space. The magnitude and timing of the firm’s retail competitors may be unclear. Competitors could aggressively advertise their current products or extend product lines if the market appears to...
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...ilize Fairchild’s design to mass-produce to the target market. The firm will target large urban areas because of the constraints to distribute to rural areas in India. The licensing firm should price the product appropriate so that the company could realize an average loyalty fee of Rs.300. The licensing firm will undertake all advertising costs. The licensing agreement along with effective pricing will allow the firm to generate ample sales condensing the uncertainty of profitability and competitors actions.
Conclusion
Based on the implemented plan described above, the firm can overcome several obstacles. The firm must execute a marketing plan for entering into the India market under a licensing agreement. Chatterjee should also recommend field-testing, so the firm knows how much true market potential in home water filtration and purification segment lies in India.
Moreover, Ansoff suggested some main direction that companies should follow to develop market and product conditions. The market development and differentiation strategies suggest that in order to increase sales, WRSX have to offer their services in new developing markets such as China or India. The strategy for market development gives the opportunity to expand their service in order to attract competitors' clients and to expand in unreached markets (Barry, Witcher and Chau, 2010). Potential solution could be acquisition of UK agency competitor to assist WRSX to enter new market quicker and smoother go through the barriers of entry such as government regulations and different culture.
Penetration pricing is involved when a company is launching a product in a market where the product that is low priced while the company intends to secure market share. This scheme calls for extensive planning. For proper execution of the pricing scheme, the company or manufacture must be ready and willing to produce the specific product in large quantity. The company or manufacturer should also launch a big campaign that will mainly publicize the low prices of the new products. The business owner must take nit that the penetration price result in an expensive operation and the owner must be readily prepared for the cost. With a low consumer demand, the business might suffer from an accumulated stockpile of product without market and hence they become unwanted.
Ferrell, O. C., & Hartline, M. (2011). Marketing strategy. (Fifth ed., pp. ????). Mason, OH: South-Western Cengage Learning. Retrieved from https://www.betheluniversityonline.net/mba/SectionFramework.aspx?SectionID=783
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Rahman, S. H. (2006). International Market Selection Process: An Investigation of the Relevance of Business Operating Environment. Journal of International Business Research, 5(1), 73-86.
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