Mercan Systems

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Date Submitted: 09/18/2012 07:13 PM

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Mercan Systems Case Assignment

EMBA 550 Marketing Management

Brian Wilson, Jason Marshal, Lulite Ejigu and Vijay Thambiah

Texas A&M University, Commerce

Executive Summary

Problem Statement

Analysis and Evaluation

Market Segment, Target Market, and Consumer Behavior: According to ADI-Media (2012), the main drivers for water purifier in India are scarcity of clean drinking water, increasing urbanization, and waterborne diseases. When quality of water suffers during monsoon; educated, wealthier and health-conscious consumers take steps to safeguard their family’s health and often continue to do so throughout the year. Indian market for home water purification system has two different perspectives. One view looks at market as matured with four to five established Indian manufacturers. Other view looks at market as fragmented with no one large competitor and with 100 small regional manufacturers each competing in one or two states in India.

Educated, wealthier and health conscious consumer households in India are Mercan’s target market. This target market is estimated to be about 40 million. These are similar market to middle and upper-middle class folks in US and European Union. These consumers prefer foreign brand of products and would pay higher price for such brands as long as the product outperformed other Indian products. Most consumers in India prefer Point of Use purifier compared to Point of Entry units. According to Frost & Sullivan, price will continue to play a crucial role in the Point of Use water purifier market, as most consumers in India are classified as middle-income households (India Water Review, 2011). In addition to 40 million there is another 4 million that has not taken any effort to improve water quality in their homes. They are additional market that Mercan can tap into. According to ADI-Media (2012), innovation and product differentiation seem to be the key factors in the water purification business. It...