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Washlet Marketing plan


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Marketing plan to introduce washlets to the US market

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Washlet Marketing plan

  1. 1. MBA Japan: Marketing Plan Introducing Washlets to
  2. 2. It all started with a commercial…
  3. 3. Background <ul><li>The Evolution of Toilets in Japan </li></ul>American Forces Stationed in Japan 1964, American Bidet Company Households with Washlets > Households with PCs 1980 Toto’s First Washlet
  4. 4. Background <ul><li>The Evolution of Toilets in America </li></ul><ul><li>Toilets are a “distress purchase” </li></ul><ul><li>Stigma </li></ul>
  5. 5. Opportunity <ul><li>60% of households Japan, Korea have a bidet </li></ul><ul><li>300 million flush toilets in America </li></ul><ul><li>In China, a Toto Washlet is a symbol of wealth </li></ul><ul><li>Celebrities </li></ul><ul><li>Hygienic benefits </li></ul><ul><ul><li>Seniors </li></ul></ul><ul><ul><li>The physically disabled </li></ul></ul>
  6. 6. Opportunity <ul><li>The number of Japanese staying in America for long periods of time (exchange students, expatriates etc.) has steadily grown over the past number of years </li></ul>
  7. 7. Products <ul><li>The Base Product </li></ul><ul><ul><li>A simple bidet that can be retrofitted to current toilets </li></ul></ul><ul><ul><li>Operates on batteries </li></ul></ul><ul><li>Add-On’s </li></ul><ul><ul><li>AC Power </li></ul></ul><ul><ul><li>TV, iPod Connection (National Bath and Kitchen) </li></ul></ul><ul><ul><li>Custom colors </li></ul></ul><ul><ul><li>Functions </li></ul></ul><ul><ul><ul><li>Heated Seats </li></ul></ul></ul><ul><ul><ul><li>Automatic Flushing </li></ul></ul></ul><ul><ul><ul><li>Automatic Seat opening/closing (“The Marriage Saver”) </li></ul></ul></ul><ul><ul><ul><li>Absorb smelly ions </li></ul></ul></ul><ul><ul><ul><li>Play music </li></ul></ul></ul><ul><ul><ul><li>Release Bubbles </li></ul></ul></ul><ul><ul><ul><li>Measure blood sugar levels </li></ul></ul></ul>
  8. 8. Competition
  9. 9. Competition “The Japanese may be willing to embrace gadgetry but here, we like things that are more straightforward.” - Director of Design at American Standard
  10. 10. Market Research <ul><li>21 Responses from respondents outside Japan to avoid positive bias. </li></ul><ul><li>What's the first thing that comes to your mind when you think about washlet (electric bidet)? </li></ul><ul><ul><li>Clean, water, buttons, luxury, bathroom, poo, </li></ul></ul><ul><ul><li>Japan </li></ul></ul><ul><ul><li>France/French people - it's the only place I have seen a bidet </li></ul></ul><ul><ul><li>Creepy </li></ul></ul><ul><ul><li>What is it? </li></ul></ul><ul><ul><li>It is more like an exotic thing but that you don't really need it at home </li></ul></ul><ul><ul><li>A scene from the movie Crocodile Dundee where the main character is trying to work out what it is used for </li></ul></ul><ul><ul><li>Something I have no use for, something not necessary </li></ul></ul>
  11. 11. Market Research cont.
  12. 12. Market Research cont.
  13. 13. Market Research cont.
  14. 14. Market Research cont.
  15. 15. Marketing Plan <ul><li>Target Market </li></ul><ul><ul><li>Middle Income Families </li></ul></ul><ul><ul><li>Home owners </li></ul></ul><ul><ul><li>Japanese Expats </li></ul></ul><ul><ul><li>Fortune 500 company buildings: Make it available to try first!! </li></ul></ul><ul><li>Positioning </li></ul><ul><ul><li>Toto is positioned as an exclusive brand in America </li></ul></ul><ul><ul><li>Our team is positioned as a cost differentiator </li></ul></ul>
  16. 16. Marketing Plan <ul><li>Initially, target New York and California Fortune 500 Companies </li></ul><ul><ul><li>High density of Fortune 500 companies & population </li></ul></ul><ul><li>The Googleplex has Washlets!!! </li></ul><ul><li>Offer bidet sales and installation at 0% margin prices </li></ul><ul><li>According to Ministry of Foreign Affairs, these areas are the most frequented by Japanese people </li></ul><ul><li>New York </li></ul><ul><ul><li>57 F500 Companies </li></ul></ul><ul><ul><li>Population 20 mio </li></ul></ul><ul><li>California </li></ul><ul><ul><li>52 F500 Companies </li></ul></ul><ul><ul><li>Population 37 mio </li></ul></ul>
  17. 17. Marketing Plan <ul><li>Secondary Targets </li></ul><ul><ul><li>Pennsylvania + New Jersey </li></ul></ul><ul><ul><ul><li>49 F500, Population 22 mio </li></ul></ul></ul><ul><ul><li>Illinois + Michigan </li></ul></ul><ul><ul><ul><li>55 F500, Population 23 mio </li></ul></ul></ul><ul><ul><li>Texas </li></ul></ul><ul><ul><ul><li>56 F500, Population 24 mio </li></ul></ul></ul><ul><li>Potential Coverage </li></ul><ul><ul><li>Primary Target Market </li></ul></ul><ul><ul><ul><li>107 F500, Population 57 mio </li></ul></ul></ul><ul><ul><li>Secondary Target Market </li></ul></ul><ul><ul><ul><li>160 F500, Population 69 mio </li></ul></ul></ul><ul><li>Potential Penetration </li></ul><ul><ul><li>107 / 500 = 21% , 57 / 300 = 19% </li></ul></ul><ul><ul><li>160 / 500 = 32% , 69 / 300 = 23% </li></ul></ul><ul><ul><li>267 / 500 = 53% , 126 / 300 = 42% </li></ul></ul>
  18. 18. Marketing Plan <ul><li>Tradeshows: </li></ul><ul><ul><li>ISH North America 2010 </li></ul></ul><ul><ul><li>Kitchen/Bath Industry Show & Conference May 2009 </li></ul></ul><ul><ul><li>World Toilet Expo and Forum 2009 </li></ul></ul><ul><li>Magazines for advertising: </li></ul><ul><ul><li>Home Improvement </li></ul></ul><ul><ul><li>Design and Decoration </li></ul></ul><ul><li>Trade Association & Industry Organizations in the US: </li></ul><ul><ul><li>National Kitchen and Bath Association </li></ul></ul><ul><ul><li>National Association of Remodeling Industry </li></ul></ul><ul><ul><li>American Society of Interior Designers </li></ul></ul>
  19. 19. Marketing Plan <ul><li>Hire and Train </li></ul><ul><ul><li>Sales Staff </li></ul></ul><ul><ul><ul><li>1x Rep for the West Coast </li></ul></ul></ul><ul><ul><ul><li>1x Rep for the East Coast </li></ul></ul></ul><ul><ul><li>Technical Support </li></ul></ul><ul><ul><ul><li>1x Technical Expert </li></ul></ul></ul><ul><ul><li>After Service </li></ul></ul><ul><ul><ul><li>2x After service Rep. </li></ul></ul></ul><ul><li>Primary Distribution Method </li></ul><ul><ul><li>TV Shopping Network </li></ul></ul><ul><ul><li>Direct Distribution (Dell) </li></ul></ul><ul><ul><li>Online Retailing </li></ul></ul>
  20. 20. Financial Analysis <ul><li>Forecast sales </li></ul><ul><ul><li>Reference information </li></ul></ul><ul><ul><ul><li>Toto USA's models range from about $800 to $2,200 </li></ul></ul></ul><ul><ul><li>Assumption for sales forecast </li></ul></ul><ul><ul><ul><li>Our product have similar function & quality with Toto’s </li></ul></ul></ul><ul><ul><ul><li>Average of Toto’s US model washlet is $1,000 </li></ul></ul></ul><ul><ul><li>Forecast sales in US market – 54,000 units on 2009 </li></ul></ul>
  21. 21. Financial Analysis <ul><li>Break Even </li></ul><ul><ul><li>Fixed cost: $500,000 (HR cost, IT investment, Office costs, Ads) </li></ul></ul><ul><ul><li>Average price per unit: $299 </li></ul></ul><ul><ul><li>Variable cost per unit: $150 </li></ul></ul><ul><ul><li>The break even point = 3,392 units </li></ul></ul>
  22. 22. Future Plans: “Green Building” <ul><li>Tank-less Water heater </li></ul><ul><ul><li>Cut down 60% of water wasted with a traditional storage tank water heater </li></ul></ul><ul><li>Low flow toilets and faucets </li></ul><ul><ul><li>Current JP toilets use 1.3 gallons vs US toilets which use up to 4 gallons </li></ul></ul><ul><li>Bidet System </li></ul><ul><ul><li>Americans use 3.2 tons of toilet paper annually </li></ul></ul><ul><ul><li>Bidets reduce paper use </li></ul></ul>
  23. 23. Future Plans <ul><li>Diversify Products </li></ul><ul><li>Gradual Assimilation - Introduce technology to: </li></ul><ul><ul><li>Airport lounges </li></ul></ul><ul><ul><li>Hotels </li></ul></ul><ul><ul><li>Resorts </li></ul></ul><ul><ul><li>Fitness Clubs </li></ul></ul><ul><ul><li>Shopping Malls </li></ul></ul>
  24. 24. Success Factors: 3C’s <ul><li>Customer </li></ul><ul><ul><li>Wide base </li></ul></ul><ul><ul><li>Increasing emigration from Japan to America </li></ul></ul><ul><ul><li>Targeting top companies </li></ul></ul><ul><li>Company </li></ul><ul><ul><li>Customization of our products </li></ul></ul><ul><ul><li>Toto’s first mover disadvantage </li></ul></ul><ul><ul><li>Product Differentiation through Americanization (TV’s, iPods, Battery Operated) </li></ul></ul><ul><li>Competition </li></ul><ul><ul><li>Toto has stumbled, too expensive </li></ul></ul><ul><ul><li>American Standard does not see potential in the washlet </li></ul></ul>
  25. 25. Questions?