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Conclusion
After reviewing all the data, it would be wise for Brita to extend their products into India as nearly three quarters of a billion people live in rural India. This is a large number of people who don’t have access to clean and sanitary water. By introducing their filters into the Indian market place. If only 1% of rural India bough a Brita filter and, with the average Brita filter costing $35 dollars, that would equate to $262,500,000 in sales. To help Brita ease into the market and make sure their systems are properly set up to handle the new market they could introduce themselves to a couple of areas with the highest rural populations. This would allow them to focus their marketing efforts and really drive their products while also controlling their distribution and sales systems. This will help lower the amount of risks involved. It would allow IT to keep an eye on the network and make sure there aren’t going to be any major issues with the expansion. This soft introduction to the market will also allow the new workers to have a better understanding of their job and cut down on the number of mistakes they might make which in turn would help Brita cut down on costs and lead to more revenue. If Brita is able to get themselves established early the company will see a year-over-year growth that will be over 1% each year.
This is a great opportunity for Brita to expand their global reach and maximize their profits. By expanding into a large market, such as rural India, it will allow Brita to have a continuous customer base that will purchase over $200 million worth of filters each year. Once this market has been established, Brita can then look to expand into other countries.
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Process Analysis
An area where there is a weakness with Brita expanding into India would be their ordering system. If Brita expands their company into India without opening an entire office that is able to process orders and complete fulfillment then there could be issues that arise with the amount of orders the company will have to handle. For instance, if Brita continues to have their main operation in California handle all orders from India it could cause issues within the fulfillment area. This is because it adds an extra area where mistakes can happen by having the order processing and the fulfillment being in different areas.
In order to eliminate any issues that may arise from this, Brita should have its order processing and its fulfillment warehouse located within India. This will allow Brita to resolve order issues quicker and allow for Brita to eventually cut down on these mistakes.
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Six Sigma
Six Sigma is a set of management techniques intended to improve business processes by greatly reducing the probability that an error or defect will occur. This can help Brita in expanding their products to India by measuring their systems all the way through. They would need to measure their systems from the purchase all the way through delivery and notice where the errors are coming from and then correct them. Only by having minimal to no errors will a system be able to claim Sigma Six. Below is an example of how Brita can implement Sigma Six.
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Total Quality Control (TQC)
The best way to improve quality control is to constantly check and maintain. By using Deming’s 14 points model, Brita can make sure it has a system in place to maintain quality. This would mean making sure that there are people in place to oversee the different operations and making sure they handle any issues that may arise. They need to have constant communication with their team members as well as communication with the other managers of other departments.
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Risk Avoidance
Brita needs to make sure they have all of their systems are aligned and try to minimize risk. This means that when Brita first offers their product in India, they need to make sure that their systems are ready to handle the influx of customers and that they have checked everything for issues. These systems can be both employees and also the internal system. If the back-end system goes down then it will affect everything: sales, deliveries, inventory, etc. If Brita is unable to correct the issues in a timely manner it could leave the customers with a negative view of the company and not want to purchase their products in the future. This could affect Brita’s business and hurt them in the long run. Below are a couple examples of risks Brita may run into and the level and likelihood of these issues. They can then prepare to correct such issues before they happen.
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Forecast Analysis
Brita would be wise in using forecast analysis to better plan for their future. Forecast analysis is the process of making predictions of the future based on past and present data. What forecast analysis would do for Brita is allow them to look into past data and see if there were any data they can find that would allow them to make better decisions. For instance, Brita can take a look at their data from the first couple years of establishing themselves in the US and seeing what their growth rate was. They can then get a better understanding of what their growth rate might be when operating in India. By comparing their old data to the newest data, they can determine whether or not they are growing faster or slower than the before.
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Risk Analysis
There are always risks associated with opening up a new location in India. Since it would be a new location, and with new employees, there is always a chance that there are growing pains and employees don’t hit their performance goals. This could be things such as shipments, payments, or attendance. All of these could cause the Brita to miss out on business, whether it’s through sales or customer service. Other risks that could harm Brita are poor management and payroll issues. Most, if not all, of these issues can be corrected or avoided over time with clear rules and plans in place.
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Sales Analysis
Since Brita has already established themselves in the U.S market it would be wise to expand overseas and increase their profits. Brita would be wise to introduce their current line of filters to the Indian market rather than creating a new product line. This will make the expansion into the new market much easier. By Brita only using products that are already established within their systems, Brita won’t have to worry about a new product in a new market within their sales system. In the beginning of opening in the new market Brita should continue the same distribution as before. Once the filters are established in India then Brita can establish a new distribution center that can get the products to the consumers quicker. To start off the introduction of the filters to the Indian market can be done through online advertising. This will allow the consumers to view an ad and then buy the filter online. Brita already has the software to be able to handle online purchasing they will just need to make sure they are prepared to handle a higher volume of orders.
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Cash Flow Analysis
The expansion of Brita to India will take a large amount of money. The expenses will range from on office or plant to the hiring and employee salaries. The capital for this expansion can be come from Brita themselves. Since Brita has a large market share in the water filter market they have a large amount of profit. Brita can take the some of the profit and choose to reinvest it into equipment and building costs. This would allow them the comfort of either borrowing a smaller amount of money or not having to borrow any at all.
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Operation Analysis
Creating an effective plan will help the decision making for systems, business, and finance in the Brita Company. By understanding the current system that is in place and knowing where its flaws are, Brita can adjust and know what areas need improvement. Brita can complete a process map that will show them how long it takes to complete the entire process. During this process Brita may identify areas of waste, which they can then eliminate, that will shorten the process and improve deliveries and costs. Another way of making operations and procedures more efficient is by starting in human resources. HR can thoroughly interview candidates on their skills and allow sufficient time for training. This will make sure they are competent in their work before the job begins which will ensure that service flows smoothly.
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Personnel Analysis
For the Brita company, the long-term strategy should be to eventually open up a factory in or around India. By having a factory that is close to India it will cut back on the shipping costs as well as the amount of time from when the customer orders the product to delivery and lastly it will allow for quicker resolution should there be a problem with a customer’s order. Opening up a new factory will require hiring more workers and expanding the management division. When it comes to discovering or attracting talented manager they can start by looking within. Maybe there are people who are already working for the Brita company that would be a fit for the management position. If they want to go with an outside hire than Brita can always look to an outside company to sift through qualified candidates and suggest the best fits. This would cut down on the number of hours that higher ups would need to spend going through qualified candidates. A way of matching product demand would be to increase or decrease working hours depending on the demand. When the product is in high-demand it will allow the workers to earn overtime hours and help offset their hours during the slow times when maybe they won’t get as many hours.
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Growth Analysis
Brita will have an increase in demand when they open a new factory in India. The market for water purifiers in India is projected to grow 9.5% between 2017 and 2025. By opening up this factory it can help alleviate costs and allow more revenue. A way to cut down on such costs would be to lease or buy a building that is already established. Building a completely new warehouse would require more money and put the company in the hole before it even opens the new facility. Expanding Brita to India will allow them to get their products into the consumers hands faster than remaining in the United States thus continuing the demand. Since the Brita filters allow the people of rural India to filter out the diseases in their water the demand will continue to be rise. If Brita were to make this expansion happen it will allow them to get out in front of their competitors and establish their market in India. By getting their product out in the market first, it will allow Brita to establish themselves as the main distributor of water filters and also allow the consumers to acquire the products faster from the moment they order.
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Expansion Recommendation
I do believe that Brita should expand to India. With the amount of data we have seen with the social media interaction and gathering the data I am confident that water filters in India would be a success. They aren’t overly expensive and are therefore affordable within the communities. By using water filters that are recyclable, it would help alleviate the amount of waste produced by water bottles. It would also allow communities to filter out the impurities of their tap water. This would cut down on the sickness that bad water causes. By alleviating these two things, it would also allow Brita to garner some positive public relations.
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Bayesian Analysis
If Brita was looking to implement Bayesian Paradigm into their marketing efforts if would suggest looking at an older giveaway or survey that has been performed and see what information they had received. For instance, if Brita conducted a survey a couple of years ago to determine the amount of bottled water people drink, they can use the Bayesian analysis to determine what percentage of people drink bottled water compared to a couple years ago. Let’s say Brita wanted to find what percent of the total people prefer bottled water in the new survey compared to the old survey. The probability model would look like so:
Prior event: P(73)
New Event: P(73|74)
Overall data: P(74)
I would recommend that based on this reporting less people prefer bottled water now than in the past. This also shows that more people prefer filtered water than in the past. This could be due to the fact that more customers are becoming environmentally aware than plastic bottles are harming the environment.
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Lottery Analysis
The probability of each category being selected is:
The factors that enter into the awarding of the bonus are the amount of people in each category and also the followers on social media. The reason you have to take social media into account is since Brita is using social media to understand their audience it could lean heavily towards one section. Since this prize doesn’t consider talent, skills, or amount of entries submitted there shouldn’t be any discrimination.
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Selected Sampling
If a customer is selected from the data pool, the probability that the customer is a woman would be P(W)=86/187=.459. The way we would get to this information is that we would take the total number of women in the sample and divide it by the total number of people sampled.
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Target Customers
The target customer pool is going to be our customers who interact with us through our social media. By interacting with them through our social media we will know that they are familiar with our brand. Using social media will also allow us to gather all of this information for fairly cheap since we aren’t paying for advertising and are only paying for a third party to gather the information. Since the cost is so minimal towards the company there shouldn’t be any push back. Some of the information we would be looking for were discussed in the “Promotional Section” but we would also be looking to have information on how our customers drink water. The information gathered from such questions are listed below:
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