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Mercan System Inc.

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Introduction The company was established in 1980 by Eugene Mercan and the first product was a desalinator. In 1996, the product line included desalinators, particle filters, ozonators, ion exchange resins, and purifiers. In 1996, sales revenues was almost $400 million (annual growth average 12% for past five years), with an expected profit close to $50 million. In 1999, water purifier was added to product line by using brand name “Delight”. The company has identified a market for its water purifier in developing countries where there is a huge, profitable and attractive market for clean water. Rahul Chatterjee, an International market liaison has been gathering information about the Indian market for home water purification devices. …show more content…

Consumer needs to replace the halogenated resin at a cost of Rs. 200 every year. Singer This is a company that might be a suitable partner to manufacture and distribute the Delight purifier. Singer’s product contained nine stages (removed sediments, heavy metals, bad tastes, odors, and colors, killed bacteria and viruses, fungi, and nematodes). The product life of flow rate is at 3.8 liters per minute was at 40,000 liters (4.4years for 25 liters per day), but slower liters per minute was 70,000 liters (7.6 years for 25 liters per day). They described their product as “state of the art” and singer was a well-known and respected brand name in India Other competitors include: The Delta – Is a carbon copy of Aquaguard, Alfa Water Purifiers, Symphony’s Spectrum, The Sam Group – is “Water Doctor” purifier, and lastly Batliboi Other Relevant Information about Competition • Sales volume of ZERO-B and Singer was around 60,000 units in 1996. • Sales volume of Aquaguard and Puresip was 190,000 units. • More than 100 Indian companies made and marketed candle filters. • All of purifier sales came from large urban areas and only ten to fifteen percent of the entire Indian population could be reached. Pros & Cons of alternative means of entry Licensing Pros: There is relatively low risk and low cost associated with this alternative. Also there will be no need for Mercan

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