4. Industry Trends
-6
-4
-2
0
2
4
2004 2006 2008 2010 2012 2014 2016 2018
Industry Revenue
% Change
Major Markets
Households earning
more than $60,000
Commercial Clients
Households earning
less than $60,000
5. • Expand business model to take advantage of
growing consumer market for green products
• B2C sales will increase overall profits
Hypothesis:
Challenge & Hypothesis
Challenge:
7. 1. Environmental issues not a major concern for
selecting a dry cleaner
2. Evidence of consumer demand
3. Significant Barriers to Adoption
Key Takeaways
8. Focus group:
“pangs of guilt. It’s insane to use plastic bags because
of how bad they are for the environment”
Survey:70% say environmental factors not important
Environmental Issues & Dry Cleaning
0%
10%
20%
30%
40%
50%
60%
Chemical
usage
Plastic bags Water usage Hanger waste
Importance of the Environment Factors
Not important
Somewhat important
Really important
9. Focus group:
“I am very aware of the long term affects of dry cleaning as an
environmental engineer”
…but he had never considered the impact of plastic bags in dry
cleaning (the other participants hadn’t either)
Survey:
Evidence of Consumer Demand
85%
15%
Yes
No
Preference for Reusable Bags
10. Observation:
- Dry cleaners do not allow outside bags, don’t
want the responsibility
Secondary Research:
- Dry cleaner adoption in conjunction with legal
regulation
Barriers to Adoption: Dry Cleaners
11. Focus group:
“Plastic is more convenient… I only use reusable bags
because I’m forced to pay for plastic now”
“I’m really bad about forgetting to bring reusable
bags with me”
“ If I can get reusable bags for free, why should I pay
for it?”
Barriers to Adoption:
Convenience and Cost
12. Survey:
Barriers to Adoption: WTP
0
10
20
30
40
50
60
70
80
90
Barriers for Reusable Bags
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Nothing Up to $5 Up to $10 or more
WTP Male vs Female
Female Male
13. Findings & Recommendations
Consumers don’t link concept
of reusable grocery bags and
reusable dry cleaning bags
Promotion strategy should link
this concept for consumers
Women have a greater WTP
than men
Focus promotion and sales in
channels that target women
Regulation and bag pricing
led adoption of reusable
grocery bags
Seek extension of existing
grocery bag regulation to dry
cleaning bags
14. Conclusions
Pros
• People would prefer to use
reusable garment bags over
plastic bags
• Aware of environmental
impacts of dry-cleaning
• Females more willing to pay
for use of a reusable bag
• Behaviour follows that of
grocery reusable bags
Cons
• Less convenient for use in
dry-cleaning
• Plastic bag use not
recognized initially as
environmental concern
• Willingness to pay lower
than retail price of bag
• Dry-cleaners unwilling to
accept reusable
15. Selling direct to consumer = too soon
• Need to focus on targeting Government orgs and NGOs to influence
legislation in favour of eliminating plastic bag use in dry cleaning
• Social pressure will eventually follow
• Lack of awareness is preventing a change in behaviour
– Once legislation is in place, behaviours will change on mass
– Add in facts from secondary research – fees applied to plastic bag use
in Toronto,etc.
– Target Municipal govt. bodies to influence jurisdiction b/c they control
waste management
– Given barriers to adoption, even consumers who want to use them are
in many cases unable to because Dry Cleaners won’t accept them
- Expressed interest in buying bags from Dry
cleaners, homesense, Ikea, bed bath and beyond, other home
stores, canadian tire
Recommendation
Editor's Notes
What product is…Use free advertising…Target market: Don’t have one in terms of direct consumer so we tried to determine who those people would be will try to include some psychographic and demographic info currently not doing any marketing other than online/free ads majority of responses from our peer group – 3% of responses came from those in age group 35-44
Focus group had 8 participantsSurvey 41 ResponsesObservation at 2 dry cleaners
When we asked how many people considered environmental factors while choosing a dry cleaner 70% said NoWhen asked which environmental factors, plastic bags were one of the lowest concerns
People are pre conditioned to think about plastic bags when going shopping, but this idea hasn’t transitioned to other services like dry cleaning
I will like to talk about what different barriers we found out for adoption of green bags in market. From our observation we noticed that Dry cleaners do not allow outside bags as they want the additional responsibility of taking care of a bag.Hence, the behavior of dry cleaners could be a barrier in adoption of green bags.Moreover, as indicated from our secondary research, the adoption of dry cleaning bag is expected to follow the trend of grocery bags. So unless there are regulations towards use of plastic dry cleaning bags, sale of green dry bags is unlikely to pick up.
Next barrier to adoption of green dry cleaning bag is convenience. From our focus group we found out that consumers don’t want to take additional trouble of carrying a bag with them every time they go for dry cleaning and they are likely to forget it too.Cost is also a major barrier in adoption of green reusable bags.-Sometimes people want the plastic bags to use for garbage
Our survey confirmed our finding about convenience and likely to forget bags as two of the biggest barriers. Followed closely by the cost of bag. Another interesting thing we found out form our survey was that women have more WTP for a green dry cleaning bag. As seen in the second graph, people who are willing to pay upto $10 or more for a dry cleaning bag 78% were women.
Partnering with social causes in support of sustainability initiatives/environmental protection campaignsLobbying for new legislation banning use of plastic bagsDevelop relationships with Dry-Cleaners (point of initial purchase) because their behaviour follows that of grocery reusable bagsThen develop key relationships with Retailers like HomeSense, Ikea, The Container Store, Bed, Bath and Beyond, Canadian Tire – outlets that participants suggested should sell reusable bags (places they would look to buy them)
