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Water purifier report | Water Purification | Drinking Water

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    Business plan for  Whirlpool’s innovative water purifier product 2012   Leveraging iPerformance   WHIRLPOOL OFINDIA LTD  A case study on Commercial water purifier in IndiaPage | 2 Whirlpool, a 100 year old global leader in home appliances has also been a leader in this industry(Rs. 30000 Cr market for white goods) in India since many years.It is a leading player in India in Refrigerators and Washing Machines  –  which are also the top 2categories in the home appliances industry.It entered the fast growing but intensely competitive water purifier segment in 2008 with a viewto leveraging some of its key assets  –  a well-known brand, a wide service network of more than700 service centres, a strong product organization that can design, source/engineer, test andmanufacture electrical appliances within a 1-2 year time span and a strong distribution network that enabled Whirlpool products to reach more than 30000 home appliance sellers across India.What made water purifiers lucrative was that they ensured a significant trail of revenues throughfilter replacement required for each product  –  as high as 20-30% of initial value of the productcould be gained every year from each installation.This strategy banked on introducing a line of RO purifiers, with low technology differentiationbut targeted at the higher end of the market and high on aesthetics, usage and conveniencefeatures that leveraged its brand, distribution and service network. It hoped to gain advantage asthe transactions shift to buying from retail as a natural move from the more expensive andtedious door to door selling.After 4 years of using this strategy, Whirlpool has a market share of 3% in household purifiersby value - far below its initial estimation. Continued prevalence of the door to door and direct tohome models of selling; intensifying competition and low differentiation in its products weresome of the key drivers.As the Category Manager heard the MDs address to the executives urging them to focus on coreperformance in each of its appliances (this was called iperformance in Whirlpoolspeak) - hestarted thinking about how this would be relevant to his category. The product that gave the bestperformance vis-a-vis competition was the Platinum RO purifier  –  a product that the companyhad struggled with because of low sales  –  but this was a product that was most suited forcommercial applications, he wondered what go-to-market would be needed to market thisproduct to Commercial establishments  –  as the sales system in Whirlpool was used to selling toRetail outlets that were visited by individual consumers. He also wondered if adding anotherproduct, the UTS RO purifier would strengthen this line-up and give a low cost option to thesales force. Another issue worth considering was whether leasing this product to restaurants foran initial installation cost and charging them a usage fee per month, a model that was successfulin Whirlpool-Brazil, would be a right approach to use in India.  A case study on Commercial water purifier in IndiaPage | 3 Background  –  Water Business in India    The domestic water purification appliances business in India started with the introduction of electrical UV purifiers by Eureka Forbes in 90s, who sold it through a door to door salesnetwork.    Between 2000-2005 other players like Kent, Zero B, HUL launched household purifiers withdifferent technologies and price points and around 2008 when Whirlpool entered it hadbecome a 1500 Cr. Market growing at 20-25% p.a. (Refer Exhibit 1)    All major players were banking on selling a proprietary technology and so had to still usedirect to home approach to seed their technologies.    Whirlpool entered the household purifiers market with a line of purifiers based on ROtechnology and chose to take the retail route for distribution. (Refer Exhibit 6) Features of Whirlpool Platinum RO and Whirlpool UTS ROFeatures Whirlpool Platinum RO Whirlpool UTS RO Filtration Capacity 72litres/hr 14litres/hrCertification WQA gold seal Best in classMounting Counter top and Wall mount Under the sink  Purification Removal up to 2500 TDS Removal up to 2500 TDSAdvantages of Whirlpool Platinum RO and Whirlpool UTS RO Whirlpool, the global leader in Home Appliances markets the most innovative water purifier inIndia- the Platinum RO Water Purifier. It is the only online RO Water Purifier in India, with anelectronic system that automatically cleans the filters and also informs the consumer when tochange the filter. With an unprecedented recovery rate of 40% and a purification rate of 72 litresper hour, it is the most powerful and environment friendly RO Water Purifier in India. Throughits 1000 installations in high volume applications, it drives saving of 1 million litres of freshwater every day. The Platinum RO purifier can work directly with coolers and with waterdispensing refrigerators.Whirlpool UTS RO has best in class certifications and high aesthetic appeal with itschrome and gold styled faucet and is ideal for pairing with modern kitchens and works as adirect attachment with coolers and water dispensing refrigerators.  A case study on Commercial water purifier in IndiaPage | 4 Business Case Based on the facts attached in the case study suggest:   1)   Three year business plan for Whirlpool commercial purifier category highlighting:    Market size estimation    Proforma P&L2)   Marketing plan for Platinum & UTS RO purifiers targeting out of home consumptionaddressing    Segmentation/Targeting/Positioning    Pricing (Outright sale/Leasing/Hire purchase)    Distribution channels (Own/Franchisee/Third Party)3)   Innovative Ideas to increase adoptionPlease state clearly the assumptions considered while responding to above questions.
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