WATERLESS WASHING MACHINE

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WATERLESS WASHING MACHINE

  1. 1. THE FUTURE OF LAUNDARY ISWATERLESS WASHING MACHINE BY: JYOTI KUMARI NAVNEET BISHT RAHUL KUMAR RUPESH KUMAR
  2. 2. About Xeros Ltd. Xeros Ltd. is a new company focused on the development of "virtually waterless" laundry cleaning. Harnessing over 30 years of research by Professor Stephen Burkinshaw and the University ofLeeds, Xeros is the brand name for a patented polymer based cleaning that creates step change advantage in the cost and environmental impact of aqueous wash cleaning. The team are based at laboratories in Leeds, West Yorkshire, UK and led by CEO, Bill Westwater. Partnerships Xeros has an ongoing partnership with the University of Leeds and their team of world-class polymer scientists. They have also created further industrial partnerships to help them optimizing the technology and prepare products for market.
  3. 3. OBJECTIVEThe objective of implementing is that as we see many countries are facing the utmost problem of water especially the country like India has recognized the need for it & thus got the machine which is beneficial in many aspects like costs, electricity, water & many more. Likewise the country wants to make the awareness in many countries like Zimbabwe, china & many more.
  4. 4. WATER SCARCITY Water scarcity in urban areas is of particular concern because of migration of the rural population to urban centres resulting in towns and cities expanding rapidly Water scarcity can result from a variety of causes but principally either source limitation, poor distribution, or inequality between the rich and the poor. What happens when there is a lack of water is all to apparent in many developing country cities ◦ Increase the health burden on the urban poor, who often constitute the very labour source that generates the cities wealth.
  5. 5. The water supply in Mumbai is not only intermittent but inequitable 4% of the population receive water > 8 hrs/day 33% receive water > 4 hrs/day 42% receive water for just 3 hrs/day 21% receive water < 3 hrs/day (often only 1 hr)
  6. 6. Observations made in Chennaiand Kochi where I.S are the norm Overall shortage of water Insufficient pressures ◦ many areas had zero pressure Inequitable distribution of the available water Very short duration of supply ◦ West Kochi, supply for 2 hours a day (irregular) ◦ Outskirts of Madras, supply for 1 hour each day
  7. 7. ELECTRICITY PROBLEM IN INDIA Most of the power is either thermal generated or hydel generated very small section of electricity is generated by wind. About 65% of electricity isproduced by thermal power plants generating electricity by coal cannot be for very long time as it is the non renewable sources of energy. Every sector andevery equipments need energy for its working if we can decrease even a single area of energy consumption by using some alternative use or by using new technology then we can save great percentage of electricity. . Each and every household consume hundreds of kilowatts electricity, for running its equipments. And major part of electricity is also consumed while washing clothes be it individual house hold, or hotels hospitals etc…The countrys annual energy production increased from about 190 billion kWh in 1986 to more than 837 billion kWh in 2010 India is 5 largest consumer of electricity.
  8. 8. Poverty Line Wash Line Air Line
  9. 9. 2010:12
  10. 10. 2010:12
  11. 11. 2010 2050
  12. 12. 2010 2050
  13. 13. 2010 2050
  14. 14. 2010 2050
  15. 15. 2010 122010 22
  16. 16. 2010 122010 14
  17. 17. WHAT IS WASHING MACHINE? A washing machine (laundry machine, clothes washer, or washer) is a machine designed to wash laundry, such as clothing, towels and sheets. The term is mostly applied only to machines that use water as the primary cleaning solution, as opposed to dry cleaning(which uses alternative cleaning fluids, and is performed by specialist businesses) or even ultrasonic cleaners.
  18. 18. BRIEF HISTORY ON WASHING MACHINE BRIEF HISTORY ON WASHING MACHINE
  19. 19. The Vision In a planet where water is gold, each drop of itis precious. And any idea that calls for being the savior of this form of „liquid gold‟ is alwayswelcome. One such invention that is coming up is Xeross eco-friendly washing machine thatsaves upto 90% water. They plan to achieve this by using nylon beads that tumble wash clothes using 90% less water as well as less detergent as compared to conventional washing machines.
  20. 20. The Reason The clothes are to be dampened before loading them intothe machine with nylon beads as cleaning agents. These beads can be later removed and used repeatedly further reducingthe amount of detergent and electricity used by the machine.Representative at Xeros say that with this invention, they will be able to reduce carbon dioxide emissions. The companyalso claims that it will be able to save up to 1.2 billion tons of water each year.Although the Xeros polymer cleaning process can be applied both to domestic and commercial sectors, the company is presently working to develop a commercial laundry system designed to wash up to 20 kg per cycle.
  21. 21. The Product Xeros machines achieve their objectives by using small nylon beads which eliminate the stains off the clothes by locking them into themolecular structure of the polymer. The reason for saving electricity and detergent is the fact that the beads can be used for up to hundreds of washes and can be later recycled. The technology that led to the prototyping of this invention is the brainchild of chemistry textiles professor Stephen Burkinshaw who carried the research over a period of 30 years at Leeds University andhas also been used by the Cambridge Consultants for a concept washing machine. After testing the product for more than three years, Kansas City based GreenEarth cleaning is in agreement with Xeros to market the product in North America in 2010. Xeros is now waiting to hit the market with its invention in a £50 billion laundry market.
  22. 22. Words on the invention Bill Westwater, Chief Executive, Xeros-”Our ambition is to be a bit like Dyson. As long as the technology delivers the advantages we think it is going to this might become the new technology platform for laundry.”“This is an exciting time in our plan to offer the world a greener washing system and gives us an impressive location to demonstrate the technology to potential partners.”“Once our reputation is established and the technology proven we will hopefully be able to produce machines for homes.” Claire Cunningham, spokesperson for the government-backed Technology Strategy Board - “Xeros had an interesting and innovative product and the environmental and financial savings were of particular interest when it was selected to takepart, along with the 18 other British cleansing technology companies, in the Clean and Cool trade mission.”
  23. 23. The View Although the invention is still in developmental stage, it is through the prototyping stages. The company aims to launch the product by the end of this year. The first sector that will be targeted is the commercial sector comprising of hotels,laundries and care homes. Later on, the domestic sector shall be ventured into. Though the people still await the launch of the invention, it sure is a noble and intriguing invention that will turn a lot many heads. And it sure is going to make people to ponder over the preciousness of our natural resources.
  24. 24. FEATURES:- ABILITY TO ATTRACT THE CUSTOMERS:- Any company who launch the product in the market will have intension in the mind that it should be of “Customer Oriented” Far which it needs to do following things like Research & Development, Survey & so on. 90% WATER SAVING ABILITY:- In today‟s era, the product along with normal feature & function should also have some extra features which makes customer need to buy a product. Likewise, our product has the extra benefit of “Saving water” which is an importantfactor in an organization & also useful for the betterment of economy. Biggest advantage of product is the “WATER SAVING”. Save water, save life !!
  25. 25. SAVES ELECTRICITY:-In India, where daily in some states they face the problem of power cut. For them it is beneficial. As it saves electricity & in same way it is also benefits to other countries also who faces the same problems. INNOVATIVE:-Due to improvement or drastic change in science & technology made the world thinkinnovative which is something very unique which makes the product more better in market & it can also helps in increasing the sales of the company & likely the contribution to the economy. REASONABLE COST:-The cost of the product suits the quality & the price requirement of the customers. It viable for all class of people. SAFE IN USE:- The additional features of the product are that it is safe to use but leads to problem when it is used casually. ECO-FRIENDLY:-As our product saves water which is most important need of the people & also saves time & less efforts are required to use it. So it is said as Eco-Friendly.
  26. 26. The waterless washing machine Context - New patented ‘nylon beads’ technology saves 90% water and 30% electricity ¤ R&D partnership with University of Leeds (UK) ¤ Currently in stealth mode Key product features ¤ No dryer unit required ¤ 90% less water ¤ 30% less electricity ¤ Uses patented nylon beads – stains get attracted and get diffused in nylon beads, beads are recycled ¤ Currently in prototype, first product available in end of 2010Note: See appendix for details on how the Xeros washer works
  27. 27. Customers Context - Commercial cleaners & hotels will derive most benefit from Xeros’ offering Xeros Value proposition Value drivers à CustomerSegmentsNote: Quantification of these value drivers and market size for each segment done later in pricing and value creation section Commercial cleaners = professional dry cleaners who have significant volume of regular laundry cleaning
  28. 28. CompetitorsContext - Key direct competitors are traditional washer/dryers and ‘air washers’ Primary Competition Secondary Competition Traditional Natural Air Air washers Dry Cleaning Washer/Dryer drying • Mature technology • New technology • Mature technology • Very low • Many strong • Uses recycled • High quality total cost companies water • Preserves delicate • Huge market share • Can be used for fabricAdvantages • Established delicate washing channels and manufacturing process • Significant Energy • Uses ozone • Expensive • Time consumption and • Only removes bio- • Need special skills consuming water usage (~30% degradable stains and equipments • Low qualityDisadvantages of utility bill) • Newer unproven • Use of abrasive technology chemicals
  29. 29. Collaborators/Channels Context - Xeros should partner with some existing players like GE in both segments Motivation / Decision Drivers Distribution Production Branding Promotion • Startup company needs Channels good cash flow to sustain License Brand as Use Direct Sales Existing retail (e.g. • Xeros’ patent is on nylon technology for ‘XEROS’ Force for Sears) and online beads technology, it can Commercial production to washer promotion (Amazon) channels take advantage of GE’s product established commercial expertise in production player like GE outlets and distribution • Xeros needs to maintain its License Brand as Let GE take care Existing retail (e.g. brand recognition as technology for GE washer of promotion Sears) and online innovation leader in production to + ‘Powered (Amazon) channels commercial segment Residential product established by XEROS’ • Residential customers are player like GE very fragmented and need a wide distribution network – requires deep pockets • For commercial space, This project is pricing only for the commercial washer product (not Xeros’ sales force is in best residential product) and will cover pricing for (1) washer unit (2) position to demonstrate the nylon beads refills (3) service contracts new technology and value propositionNote: The collaboration assumes that the license agreement drafted between GE and Xeros take care of no-compete clauses andrestricts the freedom of use for certain allowed fields only (e.g. commercial, residential etc..)
  30. 30. Pricing strategy pyramid- Framework used for pricing the new washer units + beads Price Level Product value Pricing Policy Cash flow, Market Share Value Communication Economic Benefit, Positioning Price Structure Bundling, Fencing, Services Value Creation Economic Value, Offering Design, Segmentation
  31. 31. Value Creation - Savings come from lower operational costs, space reduction & lack of dryer unit Space savings Total value Operational Dryer machine creationcost reduction + due to lack of dryer + Savings = (relative to current costs for customer) Conventional Xeros cleaning cleaning
  32. 32. Value Creation - The highest value add from Xeros’ washer is in Hotels segment Commercial Hopitals Hotels Loads Loads Loads Weight (lbs) 10,000,000 Weight (lbs) 15,000,000 Weight (lbs) 5,000,000 / Weight/load 150 / Weight/load 150 / Weight/load 150 = Annual Loads 66,667 = Annual Loads 100,000 = Annual Loads 33,333 Operational Savings Operational Savings Operational Savings Labor 2.50 Labor 2.50 Labor 2.50 + Water 0.10 + Water 0.10 + Water 0.10 + Electricty 0.10 + Electricty 0.10 + Electricty 0.10 + Detergent 0.25 + Detergent 0.25 + Detergent 0.25 - Beads (0.40) - Beads (0.40) - Beads (0.40) = VC/load 2.55 = VC/load 2.55 = VC/load 2.55 Value created by * Annual Loads 66,667 * Annual Loads 100,000 * Annual Loads 33,333 Xeros washer is = Savings $ 170,001 = Savings $ 255,000 = Savings $ 84,999 in addition to the savings from not Space savings Space savings Space savings Laundry (sq ft) 1000 Laundry (sq ft) 3000 Laundry (sq ft) 2000 buying the dryer * Annual Rent $36 * Annual Rent $12 * Annual Rent $24 units * Utilization 25% * Utilization 80% * Utilization 80% = Savings $ 9,000 = Savings $ 28,800 = Savings $ 38,400 Savings Savings Savings Operational 170,001 Operational 255,000 Operational 84,999 Dryer + Space 9,000 + Space 28,800 + Space 38,400 machine = Net Savings $ 179,001 = Net Savings $ 283,800 = Net Savings $ 123,399 + Savings / # Machines 30 / # Machines 30 / # Machines 10 = Value Created $ 5,967 = Value Created $ 9,460 = Value Created $ 12,340 (~$15K)Note: Refer to appendix for more details on calculations, data sources and assumptions
  33. 33. Price Structure - Revenue will come from washer unit, beads and service are secondary sources Washer unit Beads Service Beads will be sold at 10 % Pricing based on industryWasher machine unit will be margin per load – sold in 20 benchmark for conventionalpriced as per value provided pound packs washing systems – 10-20%to customer - see next machine of sale pricesection for price level Cost to customer = 40 cents (20 cents manufacturing cost + A contract agreement basedFences could potentially be 10cents for distributors + 10 on hours of operation,created for Hospital cents margin) would be an additional toolsegments by creating some in endorsing product qualityproduct differentiation (e.g. For higher bead profits,anti-bacterial lining for warranty could be written such SLA structured to deliverwashers etc..) – phase 2 that Xeros beads are used service within promised exclusively period of request
  34. 34. Value Communication Method - Use Direct Sales Force to communicate differentiation and valueCustomer Economic Value Comparison Value Based Model• Create a customer economic value comparison • Create customizable value model software that sheet for primary competition. takes basic data from buyer as input and• Include top differentiating value drivers – water calculates net savings specific to customer. electricity, space and time. • Include inputs such as area used, operation hours, labor, machine utilization & throughput. • Calculate cost savings, new throughput, labor savings, reduced space requirements etc. - Communicate Economic Value - Use Direct Sales mediumAddress concerns about New Product Other Promotional Materialand Switching Costs • Product demonstration video• Expert opinions from industry analysts such as • Reports on impact of current processes on JD Powers in form of reports and videos environment.• Customer testimonials • Product warranty• Demonstration videos focusing on simplicity of • Reference prices from all other alternative use in washing and bead removal. washing products.• Offer free installation and trials
  35. 35. Pricing Policy - Manage Cash flow and generate long term customers Objectives Tactics Manage cash flow Give discounts for non-credit purchases (i.e. effectively encourage shorter A/R period) Allow for volume discounts for big accounts (this is required to manage customer expectations and can Win large volume also be used as case studies for other customers) from big accounts Appropriately incentivize sales force to target big accounts and give them 10% pricing flexibility Bundle annual supply of beads (discounted price) withPromote beads sales initial sale of washer unit with initial product Maintain 10% margin on beads sales later, once the customer is locked in
  36. 36. Price Timing Graph - Start with skimming and then move to penetration pricingPrice $34K $32K $25-28K Skimming Penetration Patent Expiry Time
  37. 37. Price Timing - Start with skimming and then move to penetration pricingSkimming Penetration Patent Expiry• Differentiated Product • Price reduction to increase • Price on par with• Convey Long term value adoption rates commercial washers• Build Brand Image • Motivate volume purchases • Value to customer = No• Guard against competition • Increase Market Share need for dryer• Consumer feedback and • Build Service revenue • Launch non-commercial buzz stream model for residential market $34K $32K $25-28K
  38. 38. PROBLEM WHAT PEOPLEMAY THINK OF REEGARDING THIS TECHNOLOGY •COST •NYLON BEADS •GENERAL THINKING WILL CLOTHES WILL BE WASHED WITHOUT USING WATER. •SERVICE AVAILABILITY IN INDIA.
  39. 39. SUGGESTIONS•Cost should be such that can be affordable by each &everyone.•For making product available to people technologyneed to be developed.•One most important thing is “awareness level”. Itneeds to be increased in daily life.•For increasing the awareness level it needs to bemarketed properly by which consumption can be done.•Continuously innovate & come out with productvariations across categories to meet the expectations ofa varied class of customers.•Need to improve productivity & efficiency.
  40. 40. 19 Illustration of washing process using Xeros washer
  41. 41. BIBLOGRAPHY Magazines/ journals/newspaper Business world Business today New inventions Websites www.xerosltd.com www.wikipedia.org http://news.cnet.com/8301-17938_105-10262347-1.htmlhttp://www.americandrycleaner.com/article.cfm?articleID=17928 www.youtube.com
  42. 42. THANK YOU
  43. 43. ANYQUERIES??

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