Since the market potential index takes in multiple

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Since the Market Potential Index takes in multiple dimensions, this should be the first screening criteria used in evaluating the potential marketing opportunities for water purifiers in other countries. The next step is looking at the countries with the highest population total and comparing them to the countries with a high MPI percentage. Then, taking the overlapping countries and screening them with the rest of the criteria chosen above will help in choosing which country is right for the initial market entry. After evaluating the potential marketing opportunities for water purifiers/filters, the best market to enter would be one in China. The top five markets that overlapped in each screening criteria are markets where water filters currently exist in. Water filters currently exist in North America, Europe, China, Japan Southeast Asia, and India. This shows that the preliminary screening criteria chosen for this analysis was correct. China’s culture is very different then the U.S and this can be detrimental to a business who doesn’t have previous experience in China. China is not a homogenous and uniform market so deciding which part of china to enter is important. Hong Kong is the best market choice based on the screening criteria shown above. The best mode of entry into Hong Kong would be a joint venture where a current water filtration company in Hong Kong partners with the domestic company creating a new and improved business. Having access to China’s technology will be a huge advantage for the current water purification company. Since the culture of China is so 4
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different then the United States, having local Chinese partners will help the success of the business. Research and development, manufacturing, and access to distribution channels are more advantages to forming a joint venture. The best pricing strategy for a new product developed in Europe is pricing for market penetration. Offering lower prices than all other companies in their industry is a great technique to increase awareness and drive profits. This strategy is great for new companies that want to attract attention away from their competitors and onto them. This penetration pricing strategy can help a company increase its overall sales volume. Increasing sales will increase the overall market share in the industry at the competitions expense. Since this new product is functionally superior then all competitors, the consumers who purchase it will mostly likely come back to buy it again. Although the production cost is for this business is already the lowest in the market, the increased sales volume will make the inventory turn quickly, which will most likely lower the overall production costs. After successfully penetrating the market, the business can raise its prices to compete with the competitors. Although this may not be necessary because if the company keeps its prices lower then all others then it prevents new businesses from entering into the market.
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  • Fall '18
  • Mark Monahan
  • Marketing, Water supply, Drinking water

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