Team Name: X-Men
Hakimi Consultants
Agenda
Product Background
Revenue and Cost Analysis
Financial Analysis and Impact
Synergy
Bath Box is a revolutionary concept consisting of a 4*4*7 feet portable
cubicle
Provides a quick service of bathing, rinsing and drying for a single person
within a short period of 5 minutes
A fully automated device which can perform activities from spraying water
at 360 degrees, spray bathing solution, spraying shampoo and conditioner
on hair, rinse with water, spray steam and at last blow air to dry up to give
a refreshing experience and save time
Customized versions to be made available according to the needs and
requirements of the users
 The bath box would be of dimension 45 inch*40 inch*108 inch made of fibre wall
 The interior of the bath box would comprise of taps, shower solutions and other fittings
 Available in both left and right hand opening doors to give ease of access
 A simple diverter knob changes the bath into different modes if any step in the automatic process
is to be skipped
 There is a touchpad control to adjust the default normal settings if required (i.e. temperature of
water or steam, pressure of oil, steam or air etc.)
 Post the bathing; the system is automatically activated to ensure the jets are dry, stopping any
build up of bacteria
 There would be a small open cupboard attached to contain the clothes of the user
Yr
Phase
Marketing Objectives
1
Introduction Phase
To create an awareness about the product.
2
Growth
To maximize reach and get as many long term contracts for
Phase Starting
supplies from government’s infrastructure projects, real
estate & small scale companies.
3
Growth Phase
4
Years
Phases
5-6
Build a consistent brand image and positioning.
Maturity Ensure product modifications according to technology
changes. Have established systems in place to ensure timely
development of product among suppliers and faster go-tomarket time. Develop and maintain long term client
engagement and hence relationships.
Strengths
Weaknesses
First Mover
Advantage and huge
potential
Unknown product,
low awareness
• First mover
advantage in the quick
bath market which has
huge potential
• Quick bath market
has huge growth
potential
• Relatively unknown
product in Indian
market
• Customer needs to
be educated about
the product to
increase perception
of value offered by
the service
•Not sure of the
ready acceptance of
the product, thus
instant success not
guaranteed
Opportunities
Threats
Untapped Market,
Expansion
Low cost Substitutes
•Huge potential as it
is an untapped
market
•Expansion
opportunities to
other parts of India
banking on the
success in Tier I cities
•Home edition of the
product can be built
and marketed in
future
• Other bathroom
fitting companies
catching up with the
innovation or even
may come up with
better products
• Low cost substitutes
from competitors
• The present Sulabh
facilities getting
renovated and made
hygienic which will
pose a threat to the
better hygiene
differentiation factor
 Since railway stations is
one of the main target
locations, government is our
major client
 The political scenario in
India is relatively very stable
and any change of power
will not affect the product
as it is meant for public
utility
Economical
Political
Legal
•
 The probable legal consideration could be
“failure of service” allegation by customer
 On the production front, labour law
compliance is a major consideration
 Indian economy is one of
the
fastest
growing
economies
 The travel industry also
enjoys enormous growth
every year
Social
PESTLE
Legal
Environmental
 It helps to maintain a
clean and healthy
environment in public places
 The production also
complies with the
requirements of
environment safety
Economic
 The number of business
travelers is increasing every
year
 The number of students
and employees using public
transport is very high
 The number of people
patronizing technology
intense products is higher
than ever
Technological
 Technology replication has become very
common and hence constant innovation is
the key to remain ahead of the competition.
Print Media – industry-specific and trade
magazines.
Visual Media (TV) – Product features
demonstrated through sponsored Programmes,
Company executives interviews, Plant demos.
Social Media
We chose our preferred social media channels
based upon product specific needs as well as
Forrester survey result published in 2010 on how
B2B Technology Buyers use social media
Social Media Channels
Online Forums
Virtual Trade Shows
Open Social Networks - LinkedIn and Face
book
Interactive and 3D Demonstrations
Online Advertising
Online Video
Micro Blogs - Twitter
Technology Acquisition consists of both developing and purchasing
The interiors of the Bath Box i.e. the taps, knob, spray nozzles, light and accessories will be
developed in house
The touchpad control which has not yet been explored by any Indian firms and will be procured
from companies like ‘Bayly’, which has developed touchpad control for flushing system. This
technology transfer can be achieved by establishing a technical services contract with Bayly.
Frame of the Bath Box, its manufacturing will be outsourced to companies like ‘Best Bath
Systems’ which has an expertise in the field. It makes safe, durable and comfortable showers and
walk-in tubs especially for senior citizens and disabled people
Frame of the Bath Box, its manufacturing will be outsourced to companies like ‘Best Bath
Systems’ which has an expertise in the field unlike Roca
The pricing method used is cost plus pricing where a margin is added to the cost to give a final price.
The margin is kept at 33.33 %. The higher margin would help in increased cash flow in the initial year
The product has first mover advantage and is unique so the market can be skimmed before
competition starts to build in similar products.
In the first phase, we will be keeping the margin constant. In phase 2, we will decrease the margin to
25% so that we can keep our market share safe from the imitators and enter into the Tier 2 markets
Locations
Railway
Stations
Airports
Bus
Depots
Market
Places
Companie
s
Total
No.
7000
100
5000
%
Targeted
Total
targeted
Bathbox/Locati
on
20%
80%
1400
80
10
10
20%
1000
5
Total
Demand
Phas
e2
(In Rs
‘000)
Total Cost per unit
75
75
Margin ( 33.33% & 25% of
the cost price in Phase 1
and Phase 2 respectively)
25
15
Unit Cost (Cost + margin )
100
90
Particulars
14000
800
5000
1000
20%
2000
5
10000
5000
10%
500
10
5000
Total
Demand
Phase
1 (In
Rs
‘000)
34800
Funding Requirement
Year 1 : Rs 4 Crore
Year 2 : Rs 3 Crore
Valuation Expected : 15Crores
Justifications : cash flow positive , sales volume, positive
net margins, domain knowledge , technology niche, early
mover/leader
A major part of the cost is the Materials cost and the R&D
cost which are a little more than 25% of the unit cost.
Another major component of the cost is the Selling,
Distribution and General Administration Cost accounting for
20% of unit cost.
As this technology is a disruptive innovation a high sell pitch
and advertisement is necessary to capture target market
segment.
Cost Element
Technology Development Cost
(R&D)
Material
Production Cost
Selling, Distribution and
General Administration Cost
Promotion & Other Costs
Total Cost
Total Revenues (In Rs '000)
Year
2013
2014
2015
2016
2017
Units Sold
34,800
38,280
42,108
46,319
50,951
Price
100
100
90
90
90
34,80,000
38,28,000
37,89,720
41,68,710
45,85,590
Revenues
Unit Cost
(In Rs ‘000)
20
20
15
15
5
75
Market
Segments and
Targeting
State
Government
Central
Government
Small Scale
companies
Real Estate
Companies
Differentiation
Our product is a
completely new
product in the
Indian market
There are many
bathroom solutions
offered by
competitors but
none offer product
like bath box which
provide sensor
controlled
automated bathing
solution. The core
offering with
customer service
support would be
the main
differentiators from
the competitors.
Positioning
We would be
positioning our
product as “Easy
Bathing solution,
anytime, anywhere”
which would be
based on the tenets
of convenience,
affordability and
access.
Our positioning
strategy is designed
from the findings of
the 3C analysis. The
3C’s of the analysis
that we did are:
Customer: Through our market research
we found that our customers lacked
quality bathrooms. Also, we could see
an untapped demand of having portable
automated bathrooms which could be
easily installed in public places.
Company: The environment is
conducive for the launch of such a
product. Convincing the customers
about the relevancy of our offering
might be a challenge
Competitor: As our product is a novel
offering, we don’t have any direct
competition. But we might face
competition from other bathroom
fittings company in future. To tackle
such future challenges we constantly
have improve our products through
innovation
http://www.forrester.com/rb/Research/how_b2b_technology_buyers_use_social_me
dia/q/id/55417/t/2
http://sleepbox.com/
http://www.managementstudyguide.com/brand-name.htm
http://showerdesign.blogspot.com/2011/05/bath-box-design.html
http://www.in.roca.com/wps/wcm/connect/roca_in/base/
http://www.teamasia.com/newsroom/read-old-commentary.aspx?id=86:effectiveb2b-communication-channels