ELLECCAP

PRODUCT LAUNCH
SINAGUA: NEARLY WATERLESS MACHINE
SIDRA QAMAR

ACKNOWLEGMENT

This project, the main purpose of which was to get acquainted with the experience of launching a new product and carrying out all the research related to it paid off tremendously. However, this would not have been possible without the help of our more than willing guide Mr. Khwaja Tariq, who did not fail to assist. I hope this report proves to be of great interest to all those who come across it and prompts them to keep turning the pages.

EXECUTIVE SUMMARY

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In todays world technology plays a pivotal part in our lives. Our washing machine provides the costumers the technology to wash their clothes quickly and conveniently while saving on water and detergents Waterless Washing Machine is economical and the results are outstanding. It saves electricity and water usage to 90%. The nylon polymer has an inherent polarity that attracts stains. Think of how your white nylon garments can get dingy over time as dirt builds up on the surface despite constant washing. However, under humid conditions, the polymer changes and becomes absorbent. Dirt is not just attracted to the surface; it is absorbed into the center. This is exactly what happens when nylon beads are gently tumbled with dampened garments. The machine only uses 2% of the energy that a conventional washing machine would. According to our product it will come under new task of types of buying situations. It is a product which is one of a kind in the market at this time. Product is designed for the business as well as the consumer market. The company will adopt direct dealing, meaning the product will be supplied straight from the supplier to the hotels or laundries, as the business buying process is formal, i.e. a lot of paper work is required such as detailed product specification list, written purchase orders, approval from the board members etc. The consumer section will be catered to by advertising. Channels required for this product in the broader sense would include personal communication channels like buzz marketing. The company will adopt personal selling only for our business market and have a territorial sales force that is, each sales person is going to be assigned a certain area. The product, being one of its kind would be introduced with a high price in the market (i.e. market skimming strategy will be used) as the segment being targeted is niche. Thus for promoting the product from the promotion mix company will use advertising (electronic media) and for further sales promotion company will use controlled testing. Now taking the total promotion budget into account the objective and task method can be used. The push promotion mix strategy would be most feasible for the product as company has to induce the customers to buy the product.

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Thus, the product being an innovation of the present time and its unique energy and resource saving features barely leaves any reason that the consumers wont go for the product.

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ELLECAP (The Company)

Since the era has brought many technological changes with it and has revolutionized the world with electronic gadgets, this opened the opportunity for the company to serve the world with high-tech environmental friendly devices and this also became the reason for the arrival, into market, of our highly environmental friendly, cost saving, 90% water less washing machines. The wastage of water costs the government approximately $22 million every year which if not wasted, could be used for other purposes. The idea was conceived by a Professor of Brown University that Nylon beads have the tendency to extract the stains and dirt from clothes under humid conditions. And this idea has been put into a realistic form by our creative engineers. Waterless washing machine can save more than 1.2 billion tons of water per year. The operating costs for the machine will be reduced by 30%. The company ELLECAP brings value to your life by saving your money and precious time. Mission of the company is:

To provide people a better living, a cleaner environment. Bringing a change to customers and to society by serving them with high-tech environment friendly products.

Mission Statement

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 Product orientated Save energy with ease and willingness! Market orientated Just what mother nature asked for!

SINAGUA (The Product)

As consumers become more concerned about the earth's resources and the costs of energy sources, companies are working on new ways to manage our laundry. ELLECAP has developed a prototype washing machine that uses ninety percent less water than ordinary models and eliminates energy-intensive spin cycles and dryer blasts. SINAGUA is an advanced washing machine, more technologically advanced to make cleaning more easy and time-saving in this fast moving world. The product is also environmental friendly and saves water up to 90% and this will be the biggest high-tech leap any home appliances manufacturer could have taken. The product enables the users to clean their clothes by consuming relatively less water and less electricity to other washing machines. So in one way this product is saving water and side by side giving high quality of cleaning. The main specialty of this product is that it can wash a huge number of clothes in very short span of time, giving it a relative advantage over others. This product also requires special type of washing beads called Nylon beads to wash clothes. The reason of using the beads is that they prove to be good absorbents. The product comes in two different forms in order to target two completely different sectors of washing. The two different product forms are:

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1) SINAGUA-100 2) SINAGUA-200

1) SINAGUA-100 This machine is designed in order to target the consumer market (Upper class). This machine has mechanism and structuring a little different from that of SINAGUA-200, the size being smaller because it is designed for home usage.

2) SINAGUA-200 This machine is designed in order to cater the business market such as laundries and hotels that perform bulk washing, and therefore the mechanism of these machines is comparatively heavier than that of SINAGUA-100.

So these are the two classifications that are being made in order to cater the different groups of market more effectively.

After it is established in the current sector, the company will certainly be examining how it can make the technology available to people outside Karachi. Plans to cater the smaller scale laundries next year would be put into effect, where they will use eight gallons of water instead of 80 for each 45-pound load. Models to cater the low income earners are several years down the road.

MECHANISM

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The machine uses reusable beads to replace all but one tenth of the usual water and about one third of the usual detergent. The beads are made of nylon. The polarized molecules of nylon attract soil and in the humidity created by less water, the polymer chains separate slightly to absorb grime and lock it into the beads cores. The beads are added to the wash along with as little as a cup of water. After the water dissolves the stains, the beads, which become absorbent under humid conditions, soak up the water along with the dirt. The dirt is not just attracted to the surface, but is absorbed into the center of the beads. The beads are removed automatically within the machine at the end of the load so theres no need for the user to worry about separating the beads himself. They also dont require cleaning and can last for about 100 loads of laundry, or about six months of average family usage. SINAGUA uses just 2% of the energy of conventional washing machines, cutting CO2 emissions in addition to the water savings. Moreover, the clothes come out nearly dry, meaning no power-hungry cloth dryer is required. Taking all these factors into account, this machine achieves a 40% reduction in carbon emissions over conventional washing and drying which makes this product even more environmental friendly.

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PRODUCT LEVEL
The product levels in SINAGUA-100 and SINAGUA-200, which differentiate this product from other products, are: Core benefit Actual product Augmented Product

Core Benefit
The core benefit of this product is that it is: 1- Cost saving in terms of 90% less water usage and very less electricity consumption. 2- It can wash 100 pieces of clothing in a go which saves electricity, an unlikely aspect in a conventional washing machine.

Actual Product
The actual product is the machine and the nylon beads which are available with it. When the consumer will buy the product they will be given nylon beads as a captive product.

Augmented Product
The augmented product will be 4 services that will be provided in order to develop long term relationships with our costumer. These will be: 1- After- Sales Services 2- Warranty 3- Installation 4- Delivery and Credit

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1) After-Sales services: Replacement of parts, technical problems, manual services, and other services regarding the usage and 24 hour helpline to ensure customer satisfaction.

2) Warranty: The warranty of the product is 2+3. In which the first 2 years it will be full warranty with full replacement and zero service charges. In the next 3 years the warranty will include only service charges whereas replacement of parts will be free.

3) Installation: The companys own costumer center workmen will deal with the burden of installation and all the related problems regarding after-sales services. Both SINAGUA-100 and SINAGUA-200 will be installed by companys own representative.

4) Delivery: The machine will be delivered to the doorstep of every buyer under the supervision of our personally trained delivery men.

MARKETING CONCEPTS
The marketing philosophies which apply on the product our: 1) Product concept 2) Marketing concept 3) Societal-marketing concept

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1) Product concept: The product concept says that the consumer will favor the product that will offer most in quality, performance and features and therefore the organization must put efforts in order to achieve continuous improvements.

The product at the start is a completely novel product with totally different features. And in coming years the company will strive to make improvements in order to keep the technological effectiveness intact and make changes in the product so that the people may benefit from the changing modes of the washing to have better living.

2) Marketing Concept: The marketing concept says that achieving the organizational goals depends upon knowing the needs and wants of the target market and delivering the desired satisfaction better than the competitors do.

The need for the costumers in this fast paced world is that they want fast cleaning and high quality and therefore different companies strive to make their detergents and washing machines relatively superior than other competing products. The reason we bring our product in the market is to give convenience to the costumers who seek it, and make the lives of the people more easy and simple.

3) Societal-Marketing Concept: The societal-marketing concept explains that company should make good marketing decisions by considering the wants of the costumers, the companys long-run interest and the societys longrun interest.

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The company wants to make the products more environmental friendly so that they may remain in the market for a longer period of time. The societys long-run interest in this product is to save resources, especially water and electricity and help our country not to face any deficiency in the long run. Converting from conventional laundry systems will save 90% of the fresh water associated with washing. Take US domestic washing as an example, that translates into 1.2 billion tons of water saved per year, equivalent to 17 million swimming pools. Theres more good news. This product reduces carbon foot print impact as well up to 40% saving if reduction in tumble drying is included. Thats because far less electricity and detergent is required than conventional systems. This calculation also includes the environment cost of nylon beads which will be recycled, never just thrown away.

CUSTOMER DRIVEN MARKET STRATEGY

Target Customers
The costumers we will be targeting are of two types, the laundries and hotels (business sector) and the working class or the Upper Class. These two segments of buyers will be targeted in order to give the product a head start, because these customers can easily adopt this product, this will help in knowing what consumer preferences are in order to make product more technologically sound and minimize its cost so that the company can target other costumers later on.

Market Segmentation & Targeting

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Group of people sharing one or more characteristics, that cause them to have similar product and/or service needs.

From the different segments in the market such as high income groups, low income groups, business users and consumers, the company will be targeting the high income groups, given the high technology, and the business users such as hotels and dry cleaners like Snowhite. Geographic Segmentation: Location: Sindh

Demographics: Gender: Female, households Age: 30 years and above Socio-Economic Class: Upper-middle class Stage in Family Life-Cycle: Maturity Household Size: 2+ Members

Differentiation & Positioning

In marketing, product differentiation (also known simply as "differentiation") is the process of distinguishing our product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as one's own product offerings. The product SINAGUA is differentiated as the product which has brought innovation to the market of home appliances. It not only exceeds in technology as a product which offers great quality of washing compared to other washing appliances, but also as a product which is highly effective.

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Positioning is the process by which marketers try to create an image or identity in the minds of their target market for their product, brand, or organization. The positioning of SINAGUA is a washing machine that saves time, water and makes washing convenient for the users.

Marketing Channels
A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process. First of all there will be no market intermediary so that the company can make direct marketing promotions to the customers, and build strong relationships with them. Having market intermediary may cause disruptions affecting costumers long term relationships. The company will be having its own consumer outlets to make relationships with the SINAGUA-100. As far as the SINAGUA-200 is concerned the product will be sold by personal selling means. Defined as marketing and selling products, direct to consumers away from a fixed retail location. Personal selling will facilitate the company in a way that it will be targeting the business customers by going to them and explaining them the benefits of the product. consumers for

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Cost Benefits
There are multiple ways that this product will save you money, such as the dramatic water saving and reduction in electricity through shorter cycles. Even with the extra cost of the beads, we project that this product has the potential to save up to 30% of direct operating costs. On top, there is the indirect cost savings of faster through-put, less effluent and no need to tumble dry.

COMPETITIVE ANALYSIS
Market Share
The market share is owned up to 35% by Dawlance, 30% by LG, and 26% and 9% by Haier and Waves, respectively. The chart below shows the market share owned by various companies in the industry and also a different chart showing their competitive advantage in various key factors is given:

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Competitive Strategy
Ellecap has competitive edge over other companies in Pakistan because: It is a new concept. It is the first ever water-less machine in Pakistan, and has a competitive edge over others in the market. No other company is offering any product near to a waterless washing machine It saves water and time

MARKETING MIX
The marketing mix which applies on the product is: Price Product Place Promotion

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Price
Pricing is a fundamental financial aspect, and is one of the four Ps of the marketing mix. Price is the only revenue generating element, the rest being cost centers. Pricing is the manual or automatic process of applying prices to purchase and sales orders. The company launches these products with Market Skimming Price and prices of the products are: SINAGUA-100 30,000 SINAGUA-200 . 60,000 Cash discounts will be offered to both business and consumer market.

Product
A product is anything that can be offered to a market that might satisfy a want or need. WATERLESS WASHING MACHINE (SINAGUA) which comes with nylon beads gives you a complete package. It uses ninety percent less water than ordinary models and eliminates energyintensive spin cycles and dryer blasts. SINAGUA is an advanced washing machine, more technologically advanced to make cleaning more easy and time saving in this fast moving world. The product is also an environmental friendly machine which saves water up to 90% and comes up with many augmented services like Repairs and Support, Warranty, Accessories and services.

Place
Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. The company is focused on selective distribution in Karachi and the outlets will give you the chance to have a trial of our product before placing your orders and the distribution network would facilitate the delivery of your product at your home. There will be a total of 4 branded
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outlets in Karachi, of which three will be rented, one at Park Towers and other two will be situated in Clifton. The fourth outlet will be at Saddar. The product will be available at the companys licensed and authorized dealers mega electronics shops to ensure maximum availability. Outlets Rented 5,000,000 Owned 10,000,000 Total 15,000,000.

Promotion
Promotion involves disseminating information about a product, product line, brand, or company.

The promotion ways for SINAGUA-100 will be:

Promotional strategy (Push) Advertising

The main focus is to create awareness initially to target customer. For creating awareness the company will advertise the product through electronic and print media and will evenly conduct trial sessions at elite venues or shopping malls to get the customer attraction. The promotion ways for SINAGUA-200 will be: Since this product will target business market so promotions strategy is different.

Promotional strategy (Push) Personal selling Direct marketing

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Here is the Media schedule:

THE MARKETING ENVIRONMENT

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There are two types of environment which will effect are product directly or indirectly. The major environments are: Micro environment Macro environment

Micro Environment The micro environment has certain factors which affect the product. These factors are: 1- The company 2- Market Intermediary 3- Suppliers 4- Competitors 5- Public

Macro Environment The macro environment has certain factors which affect the product. These factors are: 1- Demographics 2- Natural environment 3- Political environment 4- Cultural environment 5- Economic Environment

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Micro Environment
The microenvironments are the environments that affect companys performance directly and thus, they require high level of monitoring throughout company production to getting product available to customer.

1. The Company In designing marketing plans, the marketing department takes other company groups into account such as top management, R&D, finance departments. Initial focus is to develop a high level of coordination between all our working departments to get the desired results as per our objective.

2. Suppliers Supplies are the backbone for any company. Having realized the importance of suppliers, the company will create a better understanding with them to make sure they come up to required standards.

3. Marketing Intermediaries Firm that helps the company to sell, promote and distribute its product to final buyers. It includes reseller, retailer, physical distribution firm etc. Since the product is not a consumable item, company will be doing selective distribution and make it available in selective locations of Karachi.

4. Customers The existence of customer defines the need of any product so the value of customer is realized by providing them high technology electronic appliances.

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Macro Environment
The company and all other factors operate in larger macro environment which involves forces that shape opportunities and pose threats to the company and affect the company performances indirectly.

1. Demographics It is the study of human population in terms of size, location, age, gender, race, and occupation etc. The customer will be elite class households and hotels and laundries and product will be offered in the metropolitan only initially.

2. Economic Forces Since economy plays major part in any countrys progress, the business profitability can be determined. During the era of recession where the people have suffered many losses along with the reduction of buying power, the company will be considering these factors for business in market.

3. Technological Environment Technological environment is the most dramatic force now shaping the destiny. The world is moving fast with technological devices so this develops the need to bring yourself on the quick run and optimize the technology for betterment of people. For this company will keep us up to date with latest technology.

Product Life Cycle

The product life cycle plays an important role in the bringing of the product to its highest achievable stage: 1) Development 2) Introduction

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3) Growth 4) Maturity 5) Decline

1) Development The idea generation of this product came to build strong environmental friendly appliances. The development took place in order to make people aware of the changing trends in the market and how to adapt to it in order to make their lives easier. The development process includes all the strategic planning and other factors which make up to the success of the product.

2) Introduction The product will be introduced into the market through the two basic marketing channels (Advertising, targeting the upper class and Personal Selling, targeting the laundries and the business market) in order to ensure that the company get a good start as it can bring awareness to the people about the product and its advantages and implementations as far as its uniqueness is concerned.

3) Growth As the company proceeds towards the growth stage the strategies will start to take shape, as company will be having profits. After being accepted by the two particular markets the company will broaden the area of targeting and this time will target more towards middle class so that it can bring change in their lives too. This step will tell company how far it can go and how much it can achieve in order to change the existing trends in the market. In growth stage marketing will increase further as company will reach out in other cities of Pakistan (Islamabad, Lahore). The reason to target Karachi only in consumer market is to see the readiness of the buyers how quickly they will adopt the change.

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4) Maturity In maturity level when the company will be having our maximum profits, it will be focused on building long term relationships with customers and to maintain them by providing them with different incentives, free servicing activities ones a year to show loyalty towards them. This is done because the company might be having competition with the competing washing appliance manufacturers as they may adopt the new technology or modify it. So in order to maintain costumer relationship the company has to take steps to ensure it does not lose the customer loyalty.

5) Decline As the company has no direct competitor and is the pioneer of this technology, in a way customers will rely on its brand name more than any emerging brands for this technology. So company could be enjoying monopoly of its brand name. The company can face decline period in only one way, if it stop paying attention to customers, providing less customer sales services being one of the causes. This can be the only reason that may affect customer loyalty and forces them to switch brands.

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SWOT ANALYSIS
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

Strengths: attributes of a company which are helpful in achieving the objective. The companys main strength is the innovative technology that puts us one step ahead. We are not only bringing value Weaknesses: Attributes of a product or company which could stand in the way of its success. The extensive research and careful development is not likely to leave any place for defects. As the company is new, there is no brand awareness. Opportunities: external conditions which are helpful in achieving the objectives. The company can grab the opportunity of moving forward from Karachi to other cities after the product starts generating enough revenue and could develop a size suitable for local, smaller laundries.

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 Threats: external conditions which could pose damage to the objective. The threats could be if a competitor catches up and targets other cities and segments before the company or comes up with ways to turn it into a cheaper technology.

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