Leena washing machine

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Leena washing machine

  1. 1. The View Although the invention is still in developmental stage, it is through theprototyping 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 ofhotels,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 andintriguing invention that will turn a lot many heads. And it sure is going to makepeople to ponder over the preciousness of our natural resources.24. FEATURES:- ABILITY TO ATTRACT THE CUSTOMERS:- Any companywho launch the product in the market will have intension in the mind that it should beof “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 extrafeatures which makes customer need to buy a product. Likewise, our product has theextra benefit of “Saving water” which is an importantfactor in an organization & alsouseful for the betterment of economy. Biggest advantage of product is the “WATERSAVING”. Save water, save life !!25. SAVES ELECTRICITY:-In India, where daily in some states they face theproblem of power cut. For them it is beneficial. As it saves electricity & in same wayit is also benefits to other countries also who faces the same problems.INNOVATIVE:-Due to improvement or drastic change in science & technology madethe world thinkinnovative which is something very unique which makes the productmore 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 theproduct suits the quality & the price requirement of the customers. It viable for allclass of people. SAFE IN USE:- The additional features of the product are that it issafe to use but leads to problem when it is used casually. ECO-FRIENDLY:-As ourproduct 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. The waterless washing machine Context - New patented „nylon beads‟ technologysaves 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 getattracted 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 Xeroswasher works27. Customers Context - Commercial cleaners & hotels will derive most benefit fromXeros‟ offering Xeros Value proposition Value drivers à CustomerSegments Note:Quantification of these value drivers and market size for each segment done later inpricing and value creation section Commercial cleaners = professional dry cleanerswho have significant volume of regular laundry cleaning28. CompetitorsContext - Key direct competitors are traditional washer/dryers and„air washers‟ Primary Competition Secondary Competition Traditional Natural AirAir washers Dry Cleaning Washer/Dryer drying • Mature technology • Newtechnology • Mature technology • Very low • Many strong • Uses recycled • Highquality total cost companies water • Preserves delicate • Huge market share • Can beused for fabricAdvantages • Established delicate washing channels and manufacturingprocess • Significant Energy • Uses ozone • Expensive • Time consumption and •Only removes bio- • Need special skills consuming water usage (~30% degradablestains and equipments • Low qualityDisadvantages of utility bill) • Newer unproven •Use of abrasive technology chemicals
  2. 2. 29. Collaborators/Channels Context - Xeros should partner with some existing playerslike GE in both segments Motivation / Decision Drivers Distribution ProductionBranding Promotion • Startup company needs Channels good cash flow to sustainLicense Brand as Use Direct Sales Existing retail (e.g. • Xeros‟ patent is on nylontechnology for „XEROS‟ Force for Sears) and online beads technology, it canCommercial production to washer promotion (Amazon) channels take advantage ofGE‟s product established commercial expertise in production player like GE outletsand distribution • Xeros needs to maintain its License Brand as Let GE take careExisting retail (e.g. brand recognition as technology for GE washer of promotionSears) and online innovation leader in production to + „Powered (Amazon) channelscommercial segment Residential product established by XEROS‟ • Residentialcustomers are player like GE very fragmented and need a wide distribution network –requires deep pockets • For commercial space, This project is pricing only for thecommercial washer product (not Xeros‟ sales force is in best residential product) andwill cover pricing for (1) washer unit (2) position to demonstrate the nylon beadsrefills (3) service contracts new technology and value propositionNote: Thecollaboration assumes that the license agreement drafted between GE and Xeros takecare of no-compete clauses andrestricts the freedom of use for certain allowed fieldsonly (e.g. commercial, residential etc..)30. Pricing strategy pyramid- Framework used for pricing the new washer units +beads Price Level Product value Pricing Policy Cash flow, Market Share ValueCommunication Economic Benefit, Positioning Price Structure Bundling, Fencing,Services Value Creation Economic Value, Offering Design, Segmentation31. Value Creation - Savings come from lower operational costs, space reduction &lack of dryer unit Space savings Total value Operational Dryer machine creationcostreduction + due to lack of dryer + Savings = (relative to current costs for customer)Conventional Xeros cleaning cleaning32. Value Creation - The highest value add from Xeros‟ washer is in Hotels segmentCommercial Hopitals Hotels Loads LoadsLoads 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 Loads33,333 Operational Savings Operational Savings Operational Savings Labor 2.50Labor 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/load2.55 Value created by * Annual Loads 66,667 * Annual Loads 100,000 * AnnualLoads 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 savingsLaundry (sqft) 1000 Laundry (sqft) 3000 Laundry (sqft) 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 SavingsSavings Operational 170,001 Operational 255,000Operational 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 = ValueCreated $ 9,460 = Value Created $ 12,340 (~$15K)Note: Refer to appendix for moredetails on calculations, data sources and assumptions33. Price Structure - Revenue will come from washer unit, beads and service aresecondary sources Washer unit Beads Service Beads will be sold at 10 % Pricingbased on industryWasher machine unit will be margin per load – sold in 20
  3. 3. benchmark for conventionalpriced as per value provided pound packs washingsystems – 10-20%to customer - see next machine of sale pricesection for price levelCost to customer = 40 cents (20 cents manufacturing cost + A contract agreementbasedFences could potentially be 10cents for distributors + 10 on hours ofoperation,created for Hospital cents margin) would be an additional toolsegments bycreating some in endorsing product qualityproduct differentiation (e.g. For higherbead profits,anti-bacterial lining for warranty could be written such SLA structured todeliverwashers etc..) – phase 2 that Xeros beads are used service within promisedexclusively period of request34. Value Communication Method - Use Direct Sales Force to communicatedifferentiation and valueCustomer Economic Value Comparison Value Based Model•Create a customer economic value comparison • Create customizable value modelsoftware that sheet for primary competition. takes basic data from buyer as input and•Include top differentiating value drivers – water calculates net savings specific tocustomer. electricity, space and time. • Include inputs such as area used, operationhours, labor, machine utilization & throughput. • Calculate cost savings, newthroughput, labor savings, reduced space requirements etc. - Communicate EconomicValue - Use Direct Sales mediumAddress concerns about New Product OtherPromotional Materialand Switching Costs • Product demonstration video• Expertopinions from industry analysts such as • Reports on impact of current processes onJD Powers in form of reports and videos environment.• Customer testimonials •Product warranty• Demonstration videos focusing on simplicity of • Reference pricesfrom all other alternative use in washing and bead removal. washing products.• Offerfree installation and trials35. Pricing Policy - Manage Cash flow and generate long term customers ObjectivesTactics Manage cash flow Give discounts for non-credit purchases (i.e. effectivelyencourage shorter A/R period) Allow for volume discounts for big accounts (this isrequired to manage customer expectations and can Win large volume also be used ascase studies for other customers) from big accounts Appropriately incentivize salesforce to target big accounts and give them 10% pricing flexibility Bundle annualsupply of beads (discounted price) withPromote beads sales initial sale of washer unitwith initial product Maintain 10% margin on beads sales later, once the customer islocked in36. Price Timing Graph - Start with skimming and then move to penetrationpricingPrice $34K $32K $25-28K Skimming Penetration Patent Expiry Time37. Price Timing - Start with skimming and then move to penetrationpricingSkimming Penetration Patent Expiry• Differentiated Product • Price reductionto increase • Price on par with• Convey Long term value adoption rates commercialwashers• Build Brand Image • Motivate volume purchases • Value to customer = No•Guard against competition • Increase Market Share need for dryer• Consumerfeedback and • Build Service revenue • Launch non-commercial buzz stream modelfor residential market $34K $32K $25-28K38. PROBLEM WHAT PEOPLEMAY THINK OF REEGARDING THISTECHNOLOGY •COST •NYLON BEADS •GENERAL THINKING WILLCLOTHES WILL BE WASHED WITHOUT USING WATER. •SERVICEAVAILABILITY IN INDIA.39. SUGGESTIONS•Cost should be such that can be affordable by each&everyone.•For making product available to people technologyneed to bedeveloped.•One most important thing is “awareness level”. Itneeds to be increased indaily life.•For increasing the awareness level it needs to bemarketed properly by
  4. 4. which consumption can be done.•Continuously innovate & come out withproductvariations across categories to meet the expectations ofa varied class ofcustomers.•Need to improve productivity & efficiency.40. 19 Illustration of washing process using Xeros washer41. BIBLOGRAPHY Magazines/ journals/newspaper Business world Business todayNew inventions Websites www.xerosltd.com www.wikipedia.org httpLearn About UsAboutCareersOur BlogPressContact usHelp & SupportUsing SlideShareSlideShare 101Terms of UsePrivacy PolicyCopyright & DMCACommunity GuidelinesSlideShare on mobilePro & moreGo PRO NewBusiness Solutions
  5. 5. 33. Price Structure - Revenue will come from washer unit, beads and service aresecondary sources Washer unit Beads Service Beads will be sold at 10 % Pricingbased on industryWasher machine unit will be margin per load – sold in 20benchmark for conventionalpriced as per value provided pound packs washingsystems – 10-20%to customer - see next machine of sale pricesection for price levelCost to customer = 40 cents (20 cents manufacturing cost + A contract agreementbasedFences could potentially be 10cents for distributors + 10 on hours ofoperation,created for Hospital cents margin) would be an additional toolsegments bycreating some in endorsing product qualityproduct differentiation (e.g. For higherbead profits,anti-bacterial lining for warranty could be written such SLA structured todeliverwashers etc..) – phase 2 that Xeros beads are used service within promisedexclusively period of request34. Value Communication Method - Use Direct Sales Force to communicatedifferentiation and valueCustomer Economic Value Comparison Value Based Model•Create a customer economic value comparison • Create customizable value modelsoftware that sheet for primary competition. takes basic data from buyer as input and•Include top differentiating value drivers – water calculates net savings specific tocustomer. electricity, space and time. • Include inputs such as area used, operationhours, labor, machine utilization & throughput. • Calculate cost savings, newthroughput, labor savings, reduced space requirements etc. - Communicate EconomicValue - Use Direct Sales mediumAddress concerns about New Product OtherPromotional Materialand Switching Costs • Product demonstration video• Expertopinions from industry analysts such as • Reports on impact of current processes onJD Powers in form of reports and videos environment.• Customer testimonials •Product warranty• Demonstration videos focusing on simplicity of • Reference pricesfrom all other alternative use in washing and bead removal. washing products.• Offerfree installation and trials35. Pricing Policy - Manage Cash flow and generate long term customers ObjectivesTactics Manage cash flow Give discounts for non-credit purchases (i.e. effectivelyencourage shorter A/R period) Allow for volume discounts for big accounts (this isrequired to manage customer expectations and can Win large volume also be used ascase studies for other customers) from big accounts Appropriately incentivize salesforce to target big accounts and give them 10% pricing flexibility Bundle annualsupply of beads (discounted price) withPromote beads sales initial sale of washer unitwith initial product Maintain 10% margin on beads sales later, once the customer islocked in36. Price Timing Graph - Start with skimming and then move to penetrationpricingPrice $34K $32K $25-28K Skimming Penetration Patent Expiry Time37. Price Timing - Start with skimming and then move to penetrationpricingSkimming Penetration Patent Expiry• Differentiated Product • Price reductionto increase • Price on par with• Convey Long term value adoption rates commercialwashers• Build Brand Image • Motivate volume purchases • Value to customer = No•Guard against competition • Increase Market Share need for dryer• Consumerfeedback and • Build Service revenue • Launch non-commercial buzz stream modelfor residential market $34K $32K $25-28K

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