Submitted by: Submitted by Frances7
Views: 10
Words: 1685
Pages: 7
Category: Business and Industry
Date Submitted: 01/10/2016 09:55 PM
BIO-CLEAR Air Purifier
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In 1995 Mr. T. Wan of RW & Company agreed with his foreign suppliers that there
would be a market for its BIO-CLEAR air purifier in the Philippines. Since there was then
as yet no such comparable commercial product in the local market, the decision was
made to bring it to the market as fast as possible. This decision was made to preempt
the competition, to be able to define the market by being the first product that was to be
locally available, and to build up brand equity. Arrangements were therefore made for
the initial shipments of the product’s range of models into the Philippines.
A year later, however, Mr. Wan was struggling with unsold inventory consisting mostly of
the more sophisticated and computerized higher priced models. Sales in the provincial
outlets were consistently poorer than predicted versus those in the urban areas,
especially Metro Manila. Metro Manila sales, however, were still marginal as well.
Product sales were barely covering costs, and Mr. Wan was wondering whether it would
be better to simply discontinue offering the line. He would be talking to the foreign
supplier’s representatives in a week and needed a good position in order to be able to
strike a negotiation with confidence, especially because this supplier was not only the
source of the BIO-CLEAR line of air purifiers but also of other home appliance products
that RW & Company was selling.
Above all, Mr. Wan had to decide as to whether or not he should renegotiate the BIOCLEAR dealership.
The Pollution Environment
According to Dr. Priscilla Tablan, director of the Lung Center of the Philippines, 43.3 %
of chest patients admitted to the center were found to have ailments that were caused or
aggravated by air pollution and smoking.
Pollution in places of work and the environment, as well as smoking, play a synergistic
role in the incidence of the most common forms of lung diseases such as chronic
bronchitis, chronic obstructive...