The Mi-Wash
Product Introduction:
Our product development team has designed a revolutionary Mi-Wash; it
is roughly the same size as a mini fridge, and plugs into any 110V wall outlet. The
product was inspired by public spin dryers found at pools and gyms which heat and spin
clothing until dry. The Mi-Wash will have a built in water container which can be taken
out and filled when machine signals it is running low on water supply, thus reducing
water usage per wash. The Mi-Wash uses specific laundry detergent packages
designed for the machine. We would develop certain packages based on brands that
become involved in the product accessories, very similar to that of the “Keurig K-Cups”
which is made by a number of different coffee distributors. The Mi-Wash is basically a
hands free device signaling when the wash is complete and telling the user when they
have overloaded the washer. It comes with an automated remote so the user does not
have to get up to switch from the washing function to the drying function. It also has an
automatic shutdown function, which enables the machine to completely shut down after
the wash, or drying is done eliminating the waste of unnecessary energy. The Mi-Wash
is designed to be as unobtrusive as possible; our R&D has developed increased
vibration control that maintains spin patterns which ensures only moderate shaking from
the appliance.
The product is targeted toward a number of different markets, one being
college students, who would put the Mi-Wash in their rooms just like they do with mini
fridges. It would eliminate a number of issues for students and people living on their
own allowing owners to use their valuable time as efficiently as possible. Our team has
also decided to target single dwelling units, identifying a huge opportunity in that market.
Many people don’t need their own washer and dryer or can’t afford one, the Mi-Wash
acts as a cheaper and convenient alternative to buying expensive washing and drying
equipment or paying for the use of public equipment every time.
Our team conducted a survey at a local college campus and in a few local
apartment complexes. Asking questions pertaining to the interest of the product, how
much one would be willing to pay, how much use would they get out of the product and
do they find their current laundry situation inconvenient or unsatisfactory? The results
concluded that the demand for a product like this is very high and that many of the
people we interviewed would be more than willing to buy this product if it comes onto
the market.
BROADER MACRO ENVIRONMENT
Before our marketing team begun developing the Mi-Wash prototype we met to
discuss various needs of ourselves as students. Furthermore, we talked about the
needs of the broader/macro environment; in particular, we focused on single persons
dwelling as a key segment to target and utilize in gaining supplementary sales to
achieve higher revenues for our company. We believe that our marketing approach will
help consumers be aware of our product and the launch date of August 1st 2013.
Through our marketing efforts we will make consumers aware of our product and
market it to independent and majority young people. Using ads with music, color, and
some flare we will push the idea of happily being an independent person and benefits of
living alone. This will help entice our consumers by giving them confidence in
themselves and providing them a product which will magnify their inner independence.
Additionally, we will use changing colors on the Ad to help illustrate how our product is
available in customizable colors and decals, this too will contribute to the independence
of the person and allow their Mi-Washer be truly unique to them. The marketing tactic
of our feel-good Mi-Wash will also help create meaningful relationships with our
customers who will be the backbone of our company’s success moving forward.
When considering our population of interest our whole team at Mi-Wash agreed
that as product developers and marketers we should focus on something we can
provide immediate insight into. Our teaming being composed of second, third , and
fourth year students we all have had a turn to live in residence and apartments. One
large market we all agreed upon was laundry. Why you ask? Because everyone has to
wash his or her clothes so consumer demand is constantly present. What did we all
reach common ground on for a nice market potential? The frustration of having to walk
to the laundry mart or downstairs to the laundry room only to find the washers in use; or
worse someone forgetting their laundry in the wash. The Mi-Wash provides an easily
accessible and private washer dryer combination. This is a fully automated machine
which goes from washer to dryer without the hassle of changing machines. Having
various settings for clothes we accommodate all clothing materials washing and drying.
Our insight information combined with a healthy relationship between consumers
and the Mi-Wash product we believe will help us have a competitive advantage over
any possible competition. We believe our team has won the race in creating this
evolutionary product and are entering the industry at an ideal time. As J.D Power &
Associates reported in their 2012 Laundry Applicance Satisfaction Study “ As the
economy improves, appliance manufacturers are looking to maintain and grow their
market position by opening new manufacturing plants and launching new product lines.”
Said Christina Cooley, senior manager of the home improvement practice at J.D Power
and Associates. “Customers increasing want more from their appliances, and
manufacturers are working incredibly hard to differentiate themselves in a competitive
market in terms of offering products that are easy to use and have innovative features,
while maximizing value.” v
Our partnership with Sears is an exciting one as our product will now be available
to a vast demographic from coast to coast. The enthusiasm from Sears has been
wonderful as they too are eager to get our fresh product in their stores, something
Sears has been lacking in the laundry appliance department. “In 2012, Samsung was
voted highest in customer satisfaction scoring 824 of 1000 points for the fourth
consecutive year. Samsung has achieved this rating through their focus on
performance, reliability, price, styling, and appearance.” N By looking at these
contributing factors of Samsungs success in the Laundry Appliance industry, we believe
our product will compete and overcome existing set standards in the industry,
particularly in single persons households. “Customer satisfaction is measured in six
factors: performance and reliability) including how well the appliance functions, noise
level and energy efficiency); features (such as the usefulness of settings available and
appliance capacity); ease of use; styling and appearance; price; and warranty.” The MiWash addresses all of the six factors of customer satisfaction and we believe the all-inone washer and dryer has excellent performance and reliability being the only
washer/dryer combination machine on the market as well as being a quiet and energy
efficient product. Through performing numerous marketing research techniques at
university campuses in Ontario we were able to find a way to be the best in the industry
when considering ease of use, styling and appearance.
Observational research of residence buildings on University campuses has led
us to target femininity of women through decals of flowers and vibrant colors while for
men we will focus on masculinity and have professional sports team decals available for
that athlete at heart consumer. With this customer insight we think personalized
washers will be a hit in University Residence buildings as students especially in their
first year are trying to make impressions on new people. From being in residences we
all have seen the jerseys guys have hung up and the flowers and decals women put on
their wall. We incorporated this personalized touch to further our products liberty, as we
are aware of students varying tastes from a consumer perspective. By sending a team
to university campuses to perform both ethnographic research and survey research has
shown that a product like this will be in high demand upon MI-Wash entrance into the
laundry appliance market.
Target Market Analysis:
Market Segments
Negatives
1) N
1)Full family homes
2)Single dwelling units
3)College students
4)Cottages
Geographical Segmentation
1)
2)
3)
4)
5)
6)
North America
South America
Asia
Europe
Australia
Africa
Psychographic Segmentation
ot big enough, not practical, small loads
2) N
ot large loads
3) C
ollege room may be small could take up
valuable room
4) Only used so often
5) For hotels could be expensive buying
one for every room
Opportunities
1)Big
2)Small-Medium
3)Medium
4)Big
5)Big
6)Medium-Small
The product benefits both upper and lower classes. The product can be
considered a luxury good, for example people who own cottages this would be a great
addition, also for people owning a pool or living on a lake or ocean the Mi-Wash.
However for people living alone or in college and are trying to save money this product
suits them as well, instead of paying for every laundry load at your local laundry
establishment or dorm laundry room you pay for the product itself and for the detergent
made for the machine which costs the same and lasts as long as regular laundry
detergent. The Mi-Wash is also great for people who like to waste as little time as
possible many people living on their own or in college residences have many things that
need to be done and are constantly busy. Instead of walking up and down your
apartment complex or residence complex or walking down the street to your local
laundry establishment this product eliminates these unnecessary trips.
Target Market Strategies
Our team has decided to use Differentiated (segmented) marketing as
our strategy. We would address different geographic and market segments. Our major
target market’s would be college students and single dwelling units however that does
not mean we will completely abandon full family homes, we still feel there is an
opportunity in upper class family homes around pools and cottages. After the release
date we may consider building a second model which would be bigger fitting the needs
of larger family homes.
Competitive Advantage
Our team feels that we have a huge advantage because our product is a
cheaper alternative to that of others in its industry, an example being full size washers.
In the case of college students they can spend hundreds of dollars over the next four
years paying for each individual load, taking much time out of their day by going to the
laundry room or establishment. Or they can pay $250 and buy our product and not have
to worry about that and have the machine conveniently located in their room taking up
very little space. The same applies to people living on their own paying each load can
get very frustrating and inconvenient the mini washer eliminates these issues and
enables the owner to do their laundry out of their own apartment.
Strategy Continued
We would try and strengthen our brand name through great R&D and
different advertising campaigns applying to different markets (Differentiated marketing)
in the hopes of addressing the needs of many consumers which could lead to success
on a very large scale.
Positioning Statement
“To busy, constantly find yourself going up and down floors to do your laundry?
The Mi-Wash is a new revolutionary washer and dryer the same size as a mini fridge.
Makes laundry convenient and easy and did we mention is completely hands free if
needed?” College students, single dwelling unit’s
“At the cottage, hate leaving just to go home to do laundry? Why ever leave
then? Buy the Mi-Wash and have all the conveniences of home in your outdoor get
away.” Cottage owners
“At the pool and hate when people come inside the house with their wet clothing?
Get the Mi-Wash and never have to worry about people tracking water all through the
house again. Perfect to keep on your deck for those pool parties everyone loves to
have.” Full family homes
Strategy
Place
The target industry for our Mi-Wash is primarily the appliance industry, but there
will be little market or product penetration because the Mi-Wash is considerably
differentiated compared to similar products on the market. We plan to use a
concentrated marketing strategy to reach our target markets. Our company is dedicated
to providing marketing value to a variety of market segments that include different
geographic, demographic, psychographic and behavioral attributes. The distribution is
going to remain primarily oriented within Canada, with initial market and product
penetration in Ontario. We plan to expand our reach into the United States and Europe
upon once we’ve achieved a considerable amount of growth within Canada. Unlike
traditional washer and dryers that typically pertain to the needs of a family or multiple
individuals, our strategy is to meet the need of the individual. Target markets that we
plan to focus on at large is students, consumers whom care about environmental
sustainability, consumers who live alone, frequent travelers, and consumers whom care
about the price and operating economy. We will be selling primarily to wholesalers,
retailers, and with increased social awareness there could be potential negotiations with
educational institutions that house students.
Product
The primary attribute of the Mi-Wash is to wash and dry small loads of laundry.
The auxiliary dimensions of this product are that it’s easily storable, simple to operate,
consumes less energy/creates less wastage, and is cheaper than traditional washers
and dryers. Our product provides many different tangible and intangible benefits. The
Mi-Wash could be considered both a shopping and specialty product depending on the
wealth and values of the consumer. The goal for our product is to effectively provide
value to our consumers by making our product cost efficient, environmentally
sustainable, and practical. The size of our product will be no larger the size of an
average mini-fridge because some of the main benefits of our product is that it’s
portable, practical and that it’s easily storable. We plan on making a moderately high
quality, durable, effective product. It will be made of primarily stainless steel and other
durable metals and plastics. The product uses only one liter of water per load, which is
far less than the traditional washing machine. The design of the product is easily
operable, and capable of heating the water at the consumers consent. The internal
heater will be capable of a sanitization cycle to ensure bacteria-free laundry and
fantastic cleaning performance. The Mini Washer’s hands free signalling device
innovation also gives us product advantage compare to the traditional washer and
dryer; it allows the user to switch the function of the Mi-Wash from wash to dry by
simply pressing the control on a remote-like device. The Mi-Wash is designed to be as
unobtrusive as possible; our R&D has developed increased vibration control that
maintains spin patterns which ensures only moderate shaking from the appliance. There
will be a changing green/red light to indicate cycle occurrence/cycle completion. By
making the MI- Wash available in customizable colors and decals, it will enhance the
image of independence of the person and further increase product value to our
consumers.
Our strategy concerning packaging of the MI-Wash is to design it in a way that
greatly represents our brand image. We will do this through strategically placed logos
and visuals on the container. The packaging will be designed obviously with protection
in transit, storage, containment and promotion in mind- but the Mini Washers packaging
will serve a highly ecological function as well. The materials that package the Mi-Wash
will be 100% recycled, as well as the instructions and pamphlets that are included with
purchase. The communication role for our labeling will properly carry our brands name
in a clearly visible, modern graphically designed lettering. We’ll properly display
warnings and legal instructions, contact information, proper disposal information and a
plea towards littering.
Part of our product development strategy includes finalizing licensing agreements
with various brands of laundry detergent providers such as Tide, Bounty, and Gain. The
Mi-Wash uses specific laundry detergent packages designed for the machine. We
would develop specific packaging strategies for these co-brands, very similar to that of
the “Keurig K-Cups” which is made by a number of different coffee distributors.
Although the Mi-Wash concept derives from the traditional washer and dryer, the
product differentiates in a number of ways. The traditional washer and dryer provide the
ability to wash larger load of laundry per cycle. The Mi-Wash is only capable of
completely small loads of laundry, and there is no water plumage or drainage, so in
order for the appliance to operate the consumer must fill the retractable jug with a litre of
water and dispose of it after each cycle. The appliance will have only one general cycle
option, but the consumer can set wash and dry times for ten minutes, half an hour, or an
hour. Our product makes up for the “quantity deficiency” compared to traditional washer
and dryers with its practicality, cost effectiveness, environmental sustainability, and
innovation.
The Mi-Wash aims to solve the practical problems university students face when
they want to do laundry but don’t want to pay for an entire load, want to save money by
not paying for laundry per wash, or eliminates the problem of worrying about whether or
not a free washer/dryer will be available during the time they need. The Mi-Wash
provides innovative alternative that decreases these inconveniences. We believe the
student segment has the potential to be highly successful because students make up
many different demographics. Our largest market is Canadian students which has
reached “1,015,000 undergraduate students onto campuses across the country.” i The
main strategy in place for promotion is to penetrate students as our largest market
sector at the most critical timeframe. One third of these students attend Universities in
Ontario which is where we will begin our penetration of the market. (See the appendix
for enrolled student per each large University in Ontario.) It is important that we bring
our product to market at the most opportune time.
This is why our advertising
campaigns will begin in early August in order to capture the school rush in September.
Statistics show that students aged 18-24 enrollment in post-secondary
institutions within Canada has steadily increased over the past 30 years. We must also
take into account that foreign student’s enrollment has increased to 7% the student
population. Appealing to foreign students will be very beneficial to our products success
within the student marketing segment because many foreign students within Canada
live on campus or on their own. Our product can also play on this target segments
emotions and values, by simply being able to provide students not living with their
families with one of the simple practicalities of home.
The product will appeal to those concerned with environmental sustainability by
advocating that fact that our product consumes a large percentage less water than that
of a traditional washing machine as well as less electricity. Since energy prices are also
on the rise, our product will provide our consumers with both an environmentally
conscious and cost efficient alternative to that of the traditional washing machine. The
Mini Washers automatic shutdown function is another feature that greater increases our
appliances environmental sustainability, eliminating the possibility of unnecessary
energy usage. Other market sectors include single dwelling units and shared laundry
apartment buildings however if we focus our main marketing strategy to students, other
sector markets may be influenced without additional spending.
Promotion
Since our product is the first of its kind and opens up a whole new appliance
market and brand. Its success highly relies on gaining customer loyalty and product
adoption from innovators and early adopters who will buy the product before the
average consumer. We’ll do this by vigorous promotion upon our products initial
release. We want to project the image the Mi-Wash to be customer-oriented, higher
quality, and most convenient alternative to washing your clothes in a traditional
washer/dryer. In order to strengthen our customer’s relationship with our brand, we plan
on build trust with potential advocates, include customers/employees in our brands
story, provide a better alternative to our consumers, and deliver an experience and
innovation that gets people talking. Our brands positioning will be at a strong level of
desirable benefit. We will achieve this by strongly established the benefits of our
appliance by advocating and promoting its cost efficiency, environmental sustainability
and practicality. Our brands strength will be through differentiation and relevance, two
important intangible qualities that will aid in delivering value to our consumers. In order
to pertain to a variety of market segments, our bran will be individual and appeal to a
variety of market segments.
We’ll maintain a positive brand experience with our consumers by continuously
communicating our products experience and reaching as many consumer touch points
as we can. Well reach touch points through a variety of different methods which include
word of mouth, company WebPages, points of purchase and advertising. Since our
product is new and first to the market, promotion and advertising is crucial to our
products success. The Mi-Wash will be promoted as an appliance that is very lifestyle
compatible and capable of solving a variety of consumer problems. Utilizing the internet
and social networking to promote our product is one of the major goals in our marketing
strategy. Websites such as Facebook and applications such as Twitter will help to vastly
boost awareness of our product and bring a sense of need to consumers. Consumers
will want our product for convenience factors as well as a status appeal. Our product is
sleek and stylish and a must-have for the new student leaving home for the first-time.
We feel it appeals to the young generation so it is important that we establish a strong
campaign using social networking. . We believe that a high concentration on social
networking will necessary for our products success because many of our consumers
rely on and use these social networking platforms on a daily basis. It’s also a cost
efficient alternative to commercials and radio broadcasts, it also allows us interact with
our consumers more personally thus increasing brand loyalty and strengthening our
customer relationships. Social networking and interacting with our customers will help
us provide more value and service to our customers in the future, and will aid our
marketing research team in inquiring on the current and changing values, needs and
wants of our consumers. We also plan to increase product awareness through a variety
of channels including television, radio, direct mail, personal contacts, newspaper,
magazines, yellow pages, and billboards.
A main aspect of our creative strategy is to use the award winning Canadian
scientist David Suzuki as a the major spokesperson of our product. He’s the CoFounder of the David Suzuki Foundation, and award winning scientist, broadcaster and
most importantly one of the most famous environmentalists in the world. Dr. Suzuki is
critically acclaimed as the world leader in sustainable ecology. Being from Canada
which also increases his representativeness of our brand and the values that we want
the Mi-Wash to present to consumers..
Taking advantage of low-cost promotional initiatives such as email marketing will
greatly increase ROI compared to any of our other marketing forms. We’ll take
advantage of this low-cost tool by using it to promote existing and upcoming products,
increase awareness for special promotions and events, build relationships and
encourage consumer feedback. We’ll use this tool on a permission based basis so we
won’t risk damaging consumer trust and relationships.
We’ve also developed an innovative way that enables us to penetrate the market
in a way that’s entirely new to the appliance industry. We plan on allocating
representatives and various sales teams to attend Campus Fairs. This will offer an in
person approach to our marketing strategy, which enables us to strengthen customer
relationships and advocate the value of our brand. When school begins in September,
and new students are attending their respective University for the first time (often with
parents), we will be able to demonstrate our product and establish it as a necessity for
the upcoming school year. In doing so, we can take orders directly in order to use a
more direct sales approach from us to the consumer.
Price
The Mini Washers price will definitely appeal to consumers whom care about
the price and the operating economy. After calculating expenses and the breakeven
point, and including a profit, we’ve strategized that the Mi-Wash to be sold at a
suggested retail price of $250. This is a much more affordable price versus the
traditional washer and dryer. An affordable price is important to maintain for this product
because our largest target market of students are typically consumers who are not likely
to have a large or consistent income, so expensive appliances will not be successful
this segment.
Retail Pricing
Per unit
Consumer Pricing
199.99
219.99
100units/order
149.99(100) = $14999.00
N/A
Suggested store mark-up
249.99(100) = $24999.00
N/A
Our pricing scheme is to set separate prices for our retailers who purchase
quantity of our product and our direct consumer market. The retailer distribution
channels that we’ll work with at large will be specialty stores, department stores,
supermarkets, discount stores, and superstores. We will take orders through our
website and through on-site sales fairs where consumers will pay close to retail price
while receiving certain promotional savings such as free laundry detergent capsules
(Tide, Bounty, Gain). The single consumer will also be provided with the option to
purchase our product directly from the convenience from their home over the internet.
We would offer quick delivery with relatively low shipping costs. To make buying the
appliance directly online more attractive, we plan to discount the retail in-store mark-up
price by $30.00 in order to attract online consumers.
For our retailers, we will offer free delivery of our product. The promotional price
we offer the retailers in purchasing in bulk, keeps large margins for retailers to mark-up
our product.
This will hopefully make us an attractive supplier for retailers and
increasing the likelihood of long term relationships. Developing more personal
relationships with our retailers also allows for increased flexibility and helps our
company ensure that our retailer’s needs are being met and problems are identified and
solved. Sales promotions that are geared to wholesalers and retailers will motivate our
retailers to keep the Mi-Wash in stock and provide visibility and increase the number of
distributors and handlers of the Mini Washer.
Taking advantage of the growth of direct marketing will also be a large portion of
our sales through our internet marketing. We’ll increase loyalty and our consumer base
by providing regular internet promotions on the Mi-Wash and exclusive discounts for
those whom buy from us directly and not through another wholesaler or retailer. This will
allow us to reach customers in remote locations, provides greater control, convenience,
easy access to our full product catalogue, and provides us with another channel to
interact with our customers and strengthen our customer relationships. Digital
cataloging is a more cost effective approach to providing information on our products
and allows us to enable real-time merchandising. Our direct marketing strategy will also
lower costs by decreasing handling and logistic costs while increasing speed and
flexibility. With marketing and internet usage increasing by a 80% household
penetration rate, online direct marketing allows us to reach consumers and channels
that our company may not have been able to reach as effectively otherwise. Our goal is
to effectively market to two different online marketing domains: business-to-consumer
and
business-to-business
institutions).
(educational
institutions,
other
small-format
housing
Product
-
Promotion
Washes (Cold or Warm)
and/or
-
Mass media (Television, radio,
drys (internal heater) small loads
direct mail, personal contacts,
of laundry
newspaper,
-
Easily Storable
pages, and billboards)
-
Stainless
steel/other
durable
-
metals and plastics
-
-
Strong
magazines,
focus
yellow
on
social
networking
Refillable container (One liter of
-
Email promotions
water per wash), one general
-
Campus Fairs
cycle option
-
Spokesperson: David Suzuki
Capable of hands free operation
(remote control)
-
Ecologically friendly
-
Available in a variety of colors
-
Licensing
agreements
with
detergent companies
Place
Price
-
Canada
-
Suggested retail price of $250
-
Initial investment in Ontario
-
Discounts for those whom but in
-
Plan to expand into United States
bulk,
and Europe at a later date
specialized retailers
-
online
direct
buy,
and
Occasionally offer promotional
savings through email, social
networking platforms, and inprint
coupons
magazines,
(newspapers,
promotional
distribution at Campus Fairs)
-
Other additional offerings such
as free delivery to specialized
retailers
-
Business to Consumer (B2B) and
Business
to
Business
(B2C)
selling
Conclusion:
We have recently developed our first prototype, which is being tested and
examined over the upcoming months. After reviewing the expenses and overhead
developing the product we have decided to price the unit at $250 per unit, which is
significantly cheaper than that of the price of a regular full sized washer and dryer. We
have set August 1st, 2013 as our release date in the hopes of attracting students who
will be entering the new school year along with many other buyers.
We have recently finished a licensing agreement with Sears, Wal-Mart, and The
Brick, to sell and distribute the Mi-Wash. We are beginning our product release in
Ontario, Canada and working our way out with the plan of expanding throughout North
America and eventually into Europe. We hope by the end of 2014 the Mi-Wash will be a
household name, and a must have for college students and individuals living on their
own.
i
Paul Davidson. President of AUCC. http://www.aucc.ca/media-room/news-and-commentary/undergraduatestudent-enrolment-surpasses-million-mark/