Eco Water Inc., founded by Manish Krishna, is a small but growing company that markets a product called the PURITY II Naturalizer Water Unit. The PURITY II system uses a reverse osmosis purification process, which is certified by the Environmental Protection Agency to reduce levels of most foreign substances. The compact system fits under a kitchen sink or wet bar sink and can purify up to 68 liters daily. Eco sells the PURITY II to consumers for $395, including installation. The system has no movable parts or electrical connections, and it has no internal metal parts that will corrode or rust. The PURITY II provides water at a cost of approximately $.03 per litre for the average family.

 

The PURITY II system offers two major benefits: it tastes better and removes potentially harmful foreign matter, making it particularly attractive to people concerned about health and the safety of their water. The number of people with these concerns is growing, and the need for pure water is growing. The PURITY II is suitable for residences, boats, recreational vehicles, taverns, restaurants, institutions, and commercial and industrial buildings.

 

There are several competing ways for customers to obtain pure water, including purchasing bottled water, treating tapwater with PURITY II, using an ion exchange process, and using other filtering and softening systems. However, these methods are less expensive and less reliable than the PURITY II.

Manny has been successful with Eco Water, a company that distributes the PURITY II system in the 13-county Gulf Coast region of Texas. The company has the right to set up distributorships in other local areas and northern Mexico. Eco has the right to distribute the product to retailers, including hardware stores and plumbing supply dealers. The company ships the PURITY II units directly from its warehouse to the Eco office via UPS, with the manufacturer's $200 per unit selling price including shipping costs. Manny is considering recruiting additional salespeople, but there has been some turnover and a complaint about the compensation.

 

Environmental Control Inc. provides sales training manuals, presentation flip charts, print copy for advertising, and commercial tapes for radio and television. Eco also provides a portable demonstration unit for each salesperson and three units for condominium apartments. Manny has worked hard to get the company going, but he needs to find time to think about his strategy and plan for the future.
 

 

Evaluate Manish Krishna's current marketing strategy for Eco Water. How do you think he's doing so far, and what should he do next? Why?