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Speed Laundry is providing full services of washing dry cleaning and pressing. We take care in providing top quality services. Taking the time to making the effort to be sure every detail is checked so your clothes will look their best. Your clothes are inspected for spots, pressing and general appearance. Speed laundry does it right the first time and that’s why our customers keep coming back.
Speed Laundry has been working since October 2003. Our organization provides a range of services relating to domestic and commercial sector. These services range from washing, drying and pressing to most complex services like cleaning sensitive fabric, blankets, shirt wastes and suits etc. The suitable timings for starting this business was in October because this type of business had a busy schedule in winters. In winter season, people normally wore worm clothes that are sweaters, jackets, suits etc. and it is also season of weddings. Due to these activities and wearing pattern the demand for dry cleaning increases compared to other seasons
Reasons to Join this Business
There was an important factor for the entrepreneurs to set up a dry cleaning business in big cities of Pakistan due to the fact that it has become difficult for the people to wash all types of clothes in their houses i.e. Jackets, Sherwanis and other sensitive clothes. In Pakistan dry clean industry has grown over the years in small set-ups, with low quality services, and there is a need for better service oriented dry clean units. There is a lot of unfilled demand as can be judged from excessive rush at the existing dry clean setups. The business is service-oriented and carries large potential for profits due to its unique nature and uncontrolled spending of people, especially on marriages. The life style of the people in Pakistan has changed over the years. Now days, people are more conscious about their clothes and the need for dry cleaning has increased.
Our product consist of the following • • • • • Washing Drying and cleaning Pressing Cleaning sensitive fabrics Blankets and carpets
Shirtwaist and suits Steam pressing
Project Limitations Working hours per day 14 hours Operating shift per day 2 Working days per annum 300 days Maximum clothes dry clean per day 395 units of clothes Maximum weight of clothes per day 320 Kg Maximum weight of clothes per batch 60Kg Hours utilized per batch (Laundry & Dry cleaning) 1.5 hours Project Investment Total project cost of the proposed laundry and dry cleaning unit is Rs. 4.603 million. This includes a fixed cost of Rs. 3.845 million and a working capital of Rs. 0.758 million.
Our mission is give you the cleanest well kept laundry, equipped with the best maintained machines, long operating hours along with our Famous Wash, Dry and Fold Service.
Best quality services at your service with lasting services.
New Product Development Process
1. 2. 3. 4. 5. 6. 7. 8. Idea Generation Idea Screening Concept development Marketing strategy Business Analysis Product development Test Marketing Commercialization
1. Idea Generation
Speed laundry is working for the last five years providing the best services to its customers now it was needed to expand its business by exploring the market opportunities and to meet increasing demand of its customers. Now speed laundry is providing its services with the most modernized machines which reduces the time of customers service and increases the value for the customer. Idea is being generated from the following resources • • External Sources Internal Sources
Marketing department of speed laundry analyzed that the customers are demanding such services through which their clothes would be washed in minimum time. They do not want conventional services which take more time so there was demand of services like Coin Laundry or Self Service Laundry.
With changing market scenario employees also suggested that coin laundry was best solution to it. Our top level executives generated the idea that our laundry should work eighteen hours a day and we are needed such new products which provide us the maximum revenue by increasing the volume of washing clothes and this was only possible by operating the most modernize machines which consume very less time and provide the ultimate cleanliness.
2. Idea Screening
In this step we screened out he best idea which was to operate with such machines which will consume less time and get customer desired cleanliness. We selected this idea because it is cost effective, reduces the time which benefits to customer and as well as to our laundry. Customer can get the clothes in less time and company get benefit because now more customers can get the services in the same time as compared to previous system.
3. Concept Development
We used graphical development method for pre feasibility of coin laundry system. We analyzed the marketing and on going details. We analyzed our target market business finance approved the decision. Quick services, cleanliness, washing in front of your eyes, internal services provided to utilize each and every minute of precious time. This product will provide cost effectiveness and time saving benefits to
customers. The expected reaction of customers is high as there is great need to target market.
4. Marketing Strategy
It is the most important part of new product development process because it gives us complete information about the market. This involves the following steps
Pest Analysis Demographic
Mostly people of age 35and above are on executive seats. Busy people do not have much spare time. So they like to take services of laundry for their cloth washing. Both men and women will be target market. Due to their busy life they will like to take the services of laundry. As household are generally big in Pakistan, so high rates are being expected. Region has its own needs. That’s why we have targeted and targeting the areas like Model town, Wapda town, Valencia Town and Defence where mostly executive class live. Population growth rate is very high. Big cities have very huge population.
Middle and upper class is our target which can happily pay for our services. Executive class in Pakistan holds much part of the income. They work on high salaries. They do not shy from consuming; just want that their work should be done appropriately and in time.
Cities have appropriate structure. Especially areas like Model Town, Defence have very fine roads so there will be no transportation problem. Buildings are also very fine so there will be no problem in opening new branches. All the facilities are available like phone, electricity. But nowadays there is shortage of electricity so generators will be needed.
New automatic machines and spinners will be introduced. Executive class is basically technology acceptance so they will be fully avail this new opportunity.
Things like strikes, protests and other unlike political situations creates problem for us. People scared from coming out of the house in these situations. Although culture here is different. People wash clothes in their house by themselves usually by housewives or washer men by themselves Come to houses to take clothes. But laundry service is a new product and people will like to adopt it.
This business is legal here and there will be no any legal problem in opening new branches. To keep and mountain appropriate sanitary system so that no problem should rise for residence around laundry.
, Strategic Management Strength
• • • • • First one in Pakistan Less time consuming Full customer satisfaction due to cleanliness and no fade of clothes Deals with sensitive fabrics Reasonable and competitive charges
Located within limited area Less power supply in case of load shading
• • Wedding ceremonies Requirement of busy people
• Our indirect traditional competitors
Relative Market Share High High Low
Growth Rate Low Blankets & Carpets ------
Customer Customer is the king of the Market
We are targeting platinum, gold and iron customers.
Consumer Buying Behavior TYPES OF CONSUMER BUYING BEHAVIOUR.
Complex B.B Major Difference
Variety Seeking B.B
Minor Difference Dissonance Reducing B.B Habitual B.B
Our services lie in habitual buying behavior.
Business Buying Behavior
We buy detergents from our suppliers. Detergents buying lies in routine products and machinery which we import lies in strategic products.
Business Buying Process • Problem identification
Customers were complaining about the fading of the clothes and due to that problem our sales were decreased. This was a serious problem • Need Description It was needed to change the detergent which we satisfy our customers. Because now the supplier was providing low quality detergent.
• Product Specification
There were many products in the market alternative to that detergent. New detergents were needed to be specified.
• Supplier Search
Advertising was made in newspaper for the supplier search.
• Proposal Solicitation
Interested suppliers sent us their proposals. ARIAL and SURF EXCEL sent us their solicitations.
• Supplier Selection
ARIAL was selected as supplier to supply us detergents
• Order Delivery Routine
We discussed all details regarding cash payments, installment, time of delivery and quality etc. All major and minor details were discussed with the supplier.
After successful negotiations ARIAL detergents was purchased.
• Performance Review
Performance of ARIAL was reviewed and it was concluded that this product had provided us the desired results. So now we are straight re-buying.
Target Customers Executive Class
Our special target is executive class who do not has enough time from their busy schedule and require good cleanliness services because of their meetings with very high class personnel of native and foreign country.
Hospitals take the services of laundries for the washing of bed sheets and other dresses of doctors and patients. These are also our target customers because they give very big orders. If we get their orders it will be really helpful in making revenues and profits. As there are so many hospitals in the city so there are very fine opportunities for us business. As much the orders will be so less the cost is so as the profit be made.
Hotels and Restaurants
Usually hotels and restaurants do not help the staff for washing bed sheets, blankets and carpets. There are so many hotels and restaurants in the city, we can gain that market. Especially our target is five star hotels such as Pearl Continental and Awari.
Students, men and women living in the hostels is our most revenue generating market because most of them do not have the facility to watch their clothes or if they have facility but they do not have enough time. They take advantage of our quick services. • • • • • • • • • In general our target customers are following People living in hospitals. People living in hostels. Busy persons who do not have enough time to wash their clothes. Nursing homes. Health Clubs. Hotels and restaurants. Retirement communities. Industrial plants etc.
There are large numbers of suppliers available in the market. We buy our detergents from and machinery from Clarks Coin Laundry Equipments.
Speed Coin Laundry is dominant in the market. We do not have any direct competitor in the market. We have the following indirect competitor. Bright Laundry (Mall Road) National Dry Cleaners (Wahdat Road) Amar Pak Laundry (Yaadgar) Pearl Dry Cleaners ( Mall Road)
We are using zero level channel marketing. We have our own branches in targeted areas. These all branches work under our main branch which is situated at Mall Road Lahore. All our services are available there.
Marketing Information System
This system has four parts • • • • Internal Record System. Marketing Intelligence System. Marketing Decision Support System. Marketing Research.
Internal Record System
By using this system we see about the history and sales value of our organization in the past. We analyze the following three things in this system • • • The order to payment cycle. Sales information system. Data ware houses and data base mining.
The order to payment cycle
In this system we analyze the orders which sales representatives, dealers and customers send to us. After that sales department repairs invoices and transmits to various departments. Actually in this cycle we analyze the whole process of booting to payment cycle of laundry items.
Sales Information System
In this system as a top authority holder of the speed’s laundry. We see information about the sales trend. We get information about vulgar customers and our laundry’s market share in the market.
Data Warehouses, Data Basis and Data Mining
We also analyze about all customers of our laundry and segmented vise and then also see the behavior of our customers which was based on our each laundry branch base.
Marketing Intelligence System
In this system we collect information about the coin laundry by reading books, news papers and trade publications, after discussing with suppliers and distributors and meeting with other company managers. We can say that we use the following four sub system to collect information about the coin laundry • • • • Competitor Intelligence System. Customer Intelligence System. Supplier Intelligence System. Distributor Intelligence System.
We see that in Pakistan, in laundry business no one is using coin laundry system also irritates us to begin this business at national stage to get profit as much as possible? And after seeing the customer behavior who is very mannered these days. Customer’s behavior to save time also helps us to begin this coin laundry system in the country.
Marketing Decision Support System
In this system we used the following steps for our coin laundry
• Ad cad
We are focusing slice of life in our ads.
We have territorial sales force. We use this tool for job specification of our employees and sales force.
• Cover Story
Our cover story is to “SAVE TIME”.
Marketing Research System
A committee of six members flat structured was developing to identify a problem and report it to management. This committee performs the following steps I. II. III. IV. V. Identification of Problem Develop Research Plan Collection and Interpretation of Data Report the Findings Taking Decisions
I. Identification of Problem
Committee had the following three researches to identify the problem. • Exploratory Research The expert opinion of the committee said that the problem exists. • Descriptive Research
In this step the committee describes the problem in detail. They describe the full aspects of problem. • Causal Research
In this step the committee compared the causes of problem with consequences. Causes Conventional system was operating by consuming more time and the customers wanted the return of their clothes in less time. Load shading was also a problem. Consequences They said if it is not controlled our customers will move to competitor because some of our competitors have sources of power generation.
II. Develop Research Plan
This step was very costly the committee used the following three techniques • • • Research Approaches. Research Instruments. Contacts.
• Research Approaches Observational Research
Committee observed behavior of the people that they are moving to competitors because competitor has installed the generators so the load shading was not a problem for them.
The committee held a survey to find out why our sale had been decreased. Customers were complaining about the time which conventional machines take and for load shading
due to which they had to wait for their clothes. Obviously people do not have time in this busy world.
• Research Instruments Manual
The committee used open ended and close ended questioners. People answered that our laundry takes more time and some time for load shading they had to go back and then come again. It is too difficult to them to get so much spare time from their busy schedule.
Physical contacts were used. Research committee members personally met with the people and the staff of the hostels, hotels and hospitals etc.
III. Collection and interpretation of Data
Committee collected the data from internal record system and from the above steps. After collecting this data they interpreted it.
IV. Report the Findings
After Collecting and interpreting the data it was reported to management.
V. Taking Decision
Management accepted the research as it was. They decided to replace the old machines with new and modernize machines which could perform the similar tasks in less time and it was also to install generators so that no customers could go back.
Segmentation Demographic Segmentation
Our main focus is to serve all the age groups in the society. All income classes are our priorities and we serve them on the basis of equality. We are serving both male female customers.
Geographically we are working in Lahore because there is great potential for this business .Speed Laundry will give a new trend in the washing system so we are hopeful to increase our market in Islamabad and Karachi.
The people of Pakistan are technology acceptance. Speed laundry will surely help to fulfill the needs of these people.
We focus the customers which contact us on traditional occasional like Wedding Ceremonies.
We have targeted demographic and technological segments.
Target Market Strategies
1) 2) 3) 4) 5) Single segment concentration. Selective specialization. Product specialization. Market specialization. Full Market coverage.
We have single segment concentration because we are operating only in the market of Lahore and providing laundry services.
We are using differentiate segmented strategy.
We are promoting time saving and cleanliness.
Our positioning statement is:
It is the time for which you care and it is the bright cleanliness which you are promised.
We are offering more value for same price to satisfy our customer.
MORE More for More MORE SAME More for same LOW More for low
V A L U E
Same for more
Same for same
Same for low
Low for more
Low for same
Low for low
Our product is clearly differentiation on the bases of technology and service
This is the first ‘P ‘ of marketing mix which relates to customer solution. Washing clothes is basic need of every human being. So speed laundries limited fulfills this need of customers very well and our new product coin laundry or self service laundry has made it easier to serve for the human being at the maximum level of satisfaction.
We used the following strategies when we introduced coin laundry in the market:
• • • Increase in promotional budget Ensure easy and quick accessibility Decrease in price
Due to the above mentioned strategies more customers were coming to us and now our product is at Growth stage.
• • • • • Constant investment Ensure easy and quick accessibility Increase in price Add new product features Add new market segments
Product Development Strategies Levels of product Core Level
Our core level is washing clothes.
Our basic level is Coin Laundry machines.
Pressing is our expected level.
Air-Conditioned waiting rooms with televisions for our customers is augmented level.
There is potential in the market for credit card coin laundry because now most business transactions are done through credit cards.
Product Hierarchy Need family
Manual operated machines and automatic laundry system. We selected automatic laundry system
Electric laundry and steam laundry
We picked Electric laundry system. It was of two types’ conventional laundry and coin laundry.
We picked coin laundry. It was available in low and high capacity.
We selected high capacity.
Coin laundry with high capacity of washing clothes was our product.
Our coin laundry lies in Major services accompanying goods. Our major services are washing clothes and coin laundry is accompanying good.
Product Decisions Product line
We are offering washing, drying and cleaning, pressing, cleaning sensitive fabrics, blankets, carpets, shirtwaist, suits and steam pressing.
Our Product width is seven.
Customers were demanding less time consuming washing facility and self service. So we introduced Coin Laundry.
We have up-marketing stretching. We introduced very advanced version of laundry system which is coin laundry.
We give calendars and watches to our old customers. We gave free key rings to our customers on the opening.
Brand Name Decisions Brand name
Our brand name is Speed Laundries Limited which indicates our quick service to our customers.
Levels of Meaning Attributes
Less time consuming is our attribute.
We give psychological satisfaction to our customers in terms of cleanliness.
Our customers enjoy physical and psychological values.
We are operating in Pakistani culture. We are giving the customers feeling that we provide them the best services in the market.
We are dominant leader in the market.
Middle and high income class people are our customers.
Brand Management Strategies
Our brand is at preference stage. Our main aim of brand management is to come at the stage of brand loyalty.
BRAND BUILDING TOOLS
o Public relation We are maintaining good relations by providing good services to our customers. o Sponsorship We are also sponsoring ICC Champions Trophy and we will sponsor matches which will be played in Lahore. o Factory visit We are providing information and appreciating to visit our industries. o Trade shows When we start the coin laundry first we organize trade show in hotel Sunfort situated at Liberty. o Event marketing Speed Coin Laundry is also celebrating event marketing on 14th August 2008. o Societal marketing Speed laundry has park in Model Town. o Buzz marketing The most popular celebrities Imran Khan was in our add.
Brand Development Strategies
We have used brand extension strategy. We are now operating with coin laundry.
Slogan Try and be inspired.
After washing and pressing we pack the clothes in attractive sheets.
INTERNAL MARKETING: There is good relationship between organization and employees. The management is too appreciative to employees. HR department is too active.
EXTERNAL MARKETING: Speed Laundry is also maintaining good relations with organization and customers. Because “CUSTOMER IS THE KING OF THE SOCIETY.” INTER-ACTIVE MARKETING: There is good relationship between customers and employees. HR department gives training to employees that how is to behave with customers.
Pricing Setting Pricing Policies I. Setting Price Objective
Profit is not the only objective. Target of the business is also to increase sale. Although our price is more than competitors but in the light of our less quality which our business provide to its customer is very reasonable. But on special events, target is to avail that opportunity so prices are increased in those days as demand is very high in those days. II. Determining Demand As the demand of our business is very fine in the market due to our service quality and also the in time service which we provide to our customers.
III. Estimating Cost
Cost is being kept in mind, and price is always being charged more than the cost.
Accounting is taking services of an accounting firm. Prepare each month final account. So they have to be paid monthly.
We distribute our broaches on regular basis in to all those areas where our branches are. And we also do our advertising on Local Cable Tv.
As due to load shading and heavy machinery is applied so there is always danger of failure of working machines for which machinery has been insured. And the building has also been insured.
While our source of revenue is washing and dry cleaning.
IV. Analyzing the competitors cost price Offers
When the prices are being set , the prices offerings of competitors are also reviewed. It is to make sure that prices should not be increased to such level that our business start losing customer. Although there are no direct competitors of our business all the competitors are indirect.
V. Selecting the Pricing Strategy
There are eighteen pricing strategies from which followings are used by our business.
• Target Return Pricing
Usually we use this pricing strategy. Because it is made in the light of cost. We divide our total cost with our total number of customers. So we get that what our single customer cost us then we add a percentage amount on that cost and then charge the price.
• Perceived Value Pricing
As in the celebration seasons such as EID and in December which is Wedding Season we use this pricing strategy.
• Discount Pricing
In those areas where demand is less we use this technique to increase our sale and to make more customers.
• Promotional Pricing
At the beginning of each new branch and coin laundry system this strategy is used so that our product be promoted in the market.
• Product Bundling
This offer is for hotels, restaurants, banquet halls and etc. who give their orders in bulks.
• Geographical Pricing
It is area based pricing as we provide pick and drop service of laundry to organizations. So according to the distance from the branch, transportation cost is charged. It differ from area to area.
It combines sellers and consumers. Its relative importance can be explain with this statement “It is the (P) where actually transactions take place”. We focuses on place we have capture one to one relation with the customers. As now a day’s scope is only in place because it has been ignored previously.
We have zero level channel design.
Channel Design Decision
1) Type of Distribution 2) Size of Distribution 1. Type of Distribution Our business has its own sales force which goes to hospitals, nurseries, hotels and restaurants and offices to collect the clothes for washing. 2. Size of Distribution We do selective distribution.
For the convenience of customers we have design our channel distribution on the following basis 1. Lot Size Our Sales force pick up all type of fabric in lots from the selected customer.
Promotion is the strongest P of the market. Promotion is the making cost which means we expose our product in front of customers. We can say that promotion is not the cost but investment.
Integrated Market Communication System
Tools of IMCS a. Advertising b. Sales Promotion a. Advertising Ad on cable TV, Brushers are our ways of Advertising. It is combination of 5 M’s • • • • • Mission Money Message Media Measurement
Mission Mission of our advertising is to inform the people. Money Money means how much money you are allocate for advertising. There are four methods of budgeting. We use following two methods Percentage Sales Method 60% of marketing budget is spend on advertising. Objective Task What sense our message gives to customer? The sense of our message is time and quality. Message Format It can be diversified. • • • Abstract Vs Concrete Short Vs Long Individual Vs Episode
Add on Laundry is Short
Message Strategy As there are three strategies • • • Emotional Appeal Psychological Appeal Functional/Physical Appeal
Our strategy is to make Functional Appeal. Message Execution Message execution style is Slice of Life. Media • • • Indoor Outdoor Internet
Media choice is “Indoor” and “Internet” Other two things are • • Media Impact Cost
Media Impact TV and Newspaper both are used. Media Frequency As TV media is very much used. Media Vehicle It is TV and Newspaper. Measurement Advertorial is used.
b. Sales Promotion
Short period incentive give to customer for sale. In it potential buyer is converted to actual buyer. It is especially helpful at two stages introduction and decline. Sales Promotion Tools • • • Consumer Promotion Tools Trade Promotion Tools Business Promotion Tools
Business Promotion Tools In it “Advertising Specially” is used such as key rings and calendar. IMCS Steps • • • • • • • Identify Target Audience Familiarity Scale Never heard of Heard Only Know very little Know fair amount Know very well
Our business is at knowing fair amount. Favorability Scale • • • • • Repulsive Unfavorable Indirect Favorable Highly favorable
Our business is favorable in market. Determine Objective • • • • • • • AIETA Model AIDA Hierarchy of effect model Awareness Knowledge Liking Performance
Communication Model Objective of our business is Hierarchy of effect model. Message Design It is quality and time saving. Select Channel As there are two channels • • Personal Non personal
Our business uses Non Personal Channel. Estimating Budget All the previous four methods. Decide On Media Minute • • • • • • Public Presentation Sales Promotion Public Relation Publicity Personnel Selling Direct Marketing
The media minute uses “Public Presentation”. It involves three steps • • • Perseveres Amplified Expressiveness Impersonality
All three steps are used. •
After 2006 we have a compulsory lady receptionist at our all front offices. And minimum 5 employees will available all the time in the every branch of the laundry. At a time minimum two Supervisor also available. •
As our employees, it is compulsory to wear navy blue shirt, black pent with black shoe for men. And blue scarf for lady in well dressed. •
From booking to washing and packaging our employee help our customer if they needed.
5. Business Analysis
Costs Machinery Requirement Description Washing Machine Dry Clean Machine Total No. 10 (per branch) 7 (per branch) Cost Per Unit in Rs. 150000 100000 Total in Rs. 1500000 1000000 2500000
Other requirements Description Split Unit Telephone Sets Fire Extinguish Fan(56”) Exhaust Fan Water Cooler Other costs Total No. 1 2 1 4 1 1 Cost Per Unit in Rs. 40000 400 4000 1400 500 8,500 40000 Total in Rs. 40000 800 4000 5600 500 8,500 40000 459400
Total costs of infrastructure
Machinery Requirement Other requirements Cost of setting up internet café Land and building requirement Total estimated cost of project Total investment available for projects Owner’s equity Financing through partnership
2500000 459400 100000 100000 3159400
6. Product development
In this step we actually developed the coin laundry. 7. Test Marketing
Before the beginning of coin laundry we tested it with in the organization and found very good results. We also use beta testing.
We commercialize coin laundry 14th August, 2008 at mall road after organizing an event at Pearl Continental on 14th August for our product. In our opening ceremony Imran Khan Former captain of Pakistan cricket team was our chief guest.
Product Life Cycle
Our coin laundry is at the stage of growth.
Speed coin laundry has proven itself in the market. Its magnificent success can be seen by the large number of customers which are very happy with this new idea as it was the demand of the customers. Customers really appreciated its quick services as it is the best solution for the busy people of the city. Still yet no complain has been reported. As now we are running the most revenue generating laundry business in the market which shows its success.
BIBLIOGHRAPHY • • • • • Notes of Mrs. Shehla Sohaib Marketing Management by KOTTLER Florida Laundry Ltd Small and medium enterprise development authority Star laundry System