The client is a $2.5B Company. It is a provider of cutting - edge water purification systems. It currently caters only to the US Markets.

Product offerings include:

Lucas - Leased & Maintained (LLM) - Provides leasing and programmed maintenance of water purifiers to Commercial & Industrial customers like Offices, Educational Institutions, Hospitals and Factories.

Lucas - Sales & Set up (LSS)- Sells water purifiers directly in the open market and does the delivery and set up of water purifiers to end-users.

Lucas - Bottling & Private Labeling (LBPL)- Provides a turn-key service that includes set up of the purification, bottling and labelling for high end hospitality clients as well as large supermarkets chains.

The focus of our discussion today is the LLM group. The growth in the overall number of registrations has slowed, 2.2% CAGR. The LLM market is declining. However, the client's revenues within the LLM market have been flat. The client has asked for your help to put together a growth strategy. The client is looking at achieving significant growth over the next 2 years and is looking for some major changes that will lead to higher revenues. The client is willing to look at other geographies as well.

The client has provided the following information:

Market and Customer Segment

4.7M water purifiers are purchased annually (Slow growth - 2.2% CAGR)

Market Segmentation

For Hire: 21% (customers who use purifiers for hire)

Private: 60% (customers who own and maintain their own purifiers)

Lease and Manufacturing: 11% (customers who buy purifiers on lease with the packaged maintenance program)

Financing: 8% (customers who finance purchase of their purifiers through banks and other groups)

Competition

The Client and one other competitor own approximately 24% each of the LLM market. The remaining 50% is fragmented and consists of smaller players.

Product/Offering

The product offering in LLM is fairly homogeneous. Each offering has a water purifier and a maintenance program for the purifier. The purifier is owned by Lucas and the customer pays a fixed monthly price for leasing the purifier. The fixed monthly price is based on the capacity, age and financing term and the subscription to the maintenance program. Subscribing to the maintenance program is compulsory as the purifier is not owned by the customer. The customer must sign a contract for a specified term with Lucas.

Lucas is willing to expand to other geographies and is currently looking at the Asian, South American & African markets where clean drinking water is not easily available. Asian markets have the higher demand among the 3 and the highest demand in the world basis population to per square foot of land and purchasing power.

Problem Statement 1: What are the options that are available for growth? Should they stay in the US and expand into other segments or should they expand and set up offshore in Asia?

Use the Case Study Exam Template shared with you to answer this question. Document upload option is available at the end of this exam form.

Problem Statement 2:How would you go about formulating what product to offer to the Asian customers? What process or steps would you follow?

Use the Case Study Exam Template shared with you to answer this question. Document upload option is available at the end of this exam form.

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