case 10

1012 Words3 Pages

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...

... middle of paper ...

...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.

Open Document