clean freak

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    CLOTH WASHING SERVICES

    Clean Freak-your smartness, our Pride

    Compiled By: Grishma Chedda

    Apoorva Kedia-419

    Nidhi Narsaria-430

    Akshay Saraf -442

    Rahul Totla

    DIVISION D

    The word laundry means the removal of stains, washing and finishing (ironing and

    finishing) storage of all types of clothes and articles

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    Reasons for laundering clothes

    1. To remove perspiration which if not removed may damage the garment.

    2. To remove dirt and grease which may discolour the garment or cause them to

    smell.

    3. Launder clothes for hygienic purposes. Dirty clothes may carry germs which

    bring about diseases e.g. skin diseases.

    4. Well laundered clothes maintain their color better

    5. Garment which are frequently and properly laundered last longer becau

    perspiration is not given time to damage fibers.

    6. Laundered and well ironed clothes stay clean for a longer period as dust does not

    stick on the smooth surfaces.

    7. By ironing clothes, insects and germs which get on to the clothes as they dry are

    killed

    8. To give clothes good a shape and to make them look as new as possible.

    The process of laundry ensures the care of clothes and other items made of textile fibers

    of different types. For efficiency in laundry work, the basic equipment apparatus and

    appropriate cleaning aids are essential. Equipment and aids have continually been

    developed to make laundry work easier and more enjoyable. Despite the presence of this

    equipment, there is needed to understand the properties of the fabrics in common use to

    facilitate the choice of methods for the general care of clothes.

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    Introduction

    Clean Freak is a concept of Cleaning Services available to individuals and

    families, including dry cleaning and laundry. Clean Touch intends to offer affordable

    "luxury" cleaning to all. Quality is made available to everybody. Clean Freak is the best

    service provider. The core business is the cleaning of clothes. Our professional team is

    taking care of each item with a great respect. Removal of the spots, small repairs, high

    quality finishing are some of the features that make Clean Freak different.

    Situation Analysis

    Clean Freak service is entering its first year as a start-up business. The idea has been well

    received and marketing will be critical to the success of the business. Clean Freak offers a

    clean, convenient laundry facility for those that do their own laundry, as well as those in

    need of optional services. It will lure customers in with excellent customer service,

    membership and discount facility, a pick and drop service of clothes.

    Market Summary

    We have captured good information about the market and know a fair amount about the

    target customers. To determine the actual demand for the service a market research

    survey. We see many people are interested and have great demand for the offering we are

    going to deliver through our laundry service. The services are given by other companies

    are not as good as people demand. The facilities offered to customers like picking the

    clothes from home and deliver it back to homes as well as optional services such as full

    service washing, alteration of clothes and 24 hours clean box service, very affordable

    prices and also guarantee of usage of very good washing material are highly admired

    from the respondents. CFs market information will be used to better understand who is

    served, their specific needs, and how CF can better communicate with them.

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    Market TrendThe market trends are

    Now a days people become more conscious about their dressing and they wanttheir self more prominent due to their clean and shining clothes.

    Media has also performing a very clear role in the dressing sensitivity of the

    people.

    Now the large numbers of people are doing jobs and they are professional so their

    executive environment demands that they should dress up mannerly.

    Technology has driven down the costs of equipment that offer technological

    efficiencies.

    Using technology reduces the dependence on human labor.

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    7 PS of Services Marketing

    1. PRODUCT

    CLEAN FREAK

    CONCEPT 1:

    Product and Services:

    Dealing with all type of laundry works and cleaning

    Types of wash:

    Dry cleaning

    Wet cleaning

    Dyeing

    Hand Wash

    Machine Wash

    Wash to InstructionsOther Services:

    Repairing

    Ironing

    Starch

    Have :

    Machine wash and Steam iron.

    Washing all types of clothes.

    Timing:

    Morning 6.00 am to evening 11.00pm.

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    Delivery services and and timings:

    Free Pick-up and drop service.

    Normal wash:

    Maximum 6hours

    Urgent wash:

    Within 2 hours or free, with a premium of rupees 100 per order that is urgent

    apart from the regular costs are applicable.

    USP Of Our Service

    Easy to Use Scheduling System and Services

    Incredible Convenience

    FREE Pick-up & Delivery

    Monthly Cost-Saving Specials

    Guaranteed Reliability

    Newsletters with Tips on Fabric Care

    Dry Cleaning

    Incase of the pick up and delivery service, we plan to have a pick up from the houses of

    all the customers from 12 in the afternoon to 2 in the evening. We will set up a small box

    on each floor where our customers are located and provide them with a laundry bag, in

    which they can put their clothes and put it inside the box. Our person will collect the bags

    and take it to our location where we will carry on the process. He bags will reach back to

    the customers between 6-8 in the evening.

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    We will provide a different colored bag in case the person wants to get the product dry

    cleaned or dyed or repaired. In that case we will contact the customer to ask him or her

    for the color, which she can choose from the color chart that we will be providing to them

    initially.

    Another advantage of our service is that the people who are working or the students, they

    can make the best use of it. As they are very busy with their work and studies they often

    find it difficult to give and take clothes. But in this case we have overcome this problem

    and will be able o service this need of theirs.

    WashingClothes

    Ironing

    Free Pick up andDelivery

    Urgent

    Service

    Repair

    Services

    Wet

    Cleaning

    Starch

    Hand Washing

    Dry

    cleaning

    SUPPLEMENTARYSERVICES

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    CLEAN FREAK COMPARISON WITH OTHER OPTIONS

    Clean Freak plans

    Other Branded Laundry

    ServicesDhobi

    Clean Freak Services will have

    a set up of around 500 sq feet at

    strategic locations in Pune :

    Low Rental

    Good Reach

    Need at least 300 sq. ft store

    front with high rentals

    No ability to move it customer

    demand not as per

    expectations.

    No Retail outlet Trust

    becomes as issue, as

    customer doesnt know

    where to go if there is a

    delay/ misplacement of

    clothes.

    2-6 hours delivery time due

    Completely Self-contained

    booth

    The washing, drying and ironing

    facilities are all provided, thusmaking it completely self-

    sufficient while still having a

    very small footprint.

    2-3 days for delivery due to

    Centralized Laundry washing

    The laundry collected is sent to

    a centralized place involvinglogistics costs and delay.

    Clothes collected and

    washed centrally.

    High-quality washing and water.

    We use high-quality detergents

    such as Ariel for all the washing

    and potable water used is for

    washing. The customers can see

    No guarantees

    As the centralized cleaning

    facility is used, there is no

    guarantee on the kind of

    detergents & water used and

    cleaning conditions. Thus,

    exposing customers to

    Cheap detergents and

    non-potable water used.

    Further, the dhobis beat

    the clothes which damage

    them further.

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    the washing & ingredients being

    used, thus building trust on the

    quality of wash.potential hygiene risks.

    Set up in an area where there is

    ample of water supply.

    No such technology

    Not required

    They use river water or

    any available type of

    water.

    Drying facility in-built the

    which gives 100% drying.No such facility.

    Sun-drying in unhygienic

    places

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    PRICE

    1. Double-digit growth for the first three years.

    2. Reduce overhead by 3% per year.

    3. Holding spending, as a percentage of revenues, at a steady level.

    The cost for the various types of clothes is as under :

    S.no. MEN RATES WOMEN RATES

    1 Suit(3pcs) 230 Duppatta(cotton) 15

    2 Suit(2pcs) 200 Duppatta(silky) 25

    3 Coat 100 Duppatta(kamdar) 20

    4 Jackets 90 Shawl 505 Leather Jackets 150 Lehenga(banarsi/kamdar) 130

    6

    Leather Jackets(with

    polish) 300 Saree 150

    7 Trouser/Pants 25 Ghagra(banarsi/kamdar) 125

    8 Shirt(cotton) 25 Blouse(silk) 30

    9 Shirt(silk) 30 Shalwar suit(cotton) 35

    10 Shirt(linen) 35 Shalwar suit(silky) 60

    11 Over coat 100 Shalwar suit(kamdar) 50

    12 Tie 25

    13 Track suit(2 pcs.) 6014 Sherwani 175

    15 Waist coat 60

    16 Handkerchief 5

    17 Under garments(per piece) 10

    Curtains rates

    short 70

    medium 135large 175

    S.no. Linens Rates

    1 Blanket(double) 250

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    2 Blanket(single) 175

    3 Bed sheet(double) 40

    4 Bed sheet(single) 25

    5 Bed cover 45

    6 Quilt(double) 140

    7 Quilt(single) 1608 Table cloth(large) 20

    9 Table cloth(small) 30

    10 Napkin 10

    11 Pillow cover 10

    12 Sofa cover 40

    13 Car seat cover 40

    14 Towel 10

    Carpets(Rs./Sq.ft) 3.5

    Children(up to 12 years) half

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    Financials:

    Finance is the back bone of every business. There is no business without the finance and

    usage of finance in efficiently manners is also very important because this is the thing if

    we do not use properly we are just flop. So keeping this into our mind we planned our

    usage of resources very carefully and also got help from some experts to tell us the right

    allocation of our resources. On the other hand on the basis of our cost we set our prices

    and service fee so this section is planned very carefully so that we can also fulfill the

    target of profit we want to get back from our precious investment.

    In fee determination the following factors playing important role.

    Building Rent

    Furnishing of Shops

    Machine Cost

    Maintenance Cost

    Gas & Electricity

    Laundry Supplies

    Delivery and Collection Expenses

    Packing Expenses

    Staff expenses / Salary

    These are the major Price determinants.

    The Initial Investment is as under :

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    Initial Investment

    Particulars No. Cost/unit Total

    Monthly rent of place in

    pune(advance) 5 20000 100000Machinery cost 15 100000 1500000

    Bikes(on installment) 5 5000 25000

    Furnishing 5 20000 100000

    Security Deposit 5 70000 350000

    TOTAL 2535000

    Our working capital requirement will be as explained under :-

    Working Capital

    Particulars No. Cost/unit Total

    Maintainence cost of

    machine 15 1500 22500

    Electricity bills 5 20000 100000

    Bikes Installment 5 1500 7500

    Fuel charges 5 700 3500

    Packing of clothes 5 5000 25000

    Staff salaries 20 3000 60000

    Rent/month 5 20000 100000Cleaning material 5 10000 50000

    Water charges 5 5000 25000

    TOTAL 66700 393500

    Cost/shop 78700

    Our expected revenues would be on daily basis :

    Particulars

    No. of

    pieces Cost/piece TotalSaree 3 150 450

    Suit(3pcs) 2 230 460

    Suit(2pcs) 2 200 400

    Shirt(cotton) 15 25 375

    Shirt(silk) 6 30 180

    Shirt(linen) 14 35 490

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    Trouser/Pants 20 25 500

    Shalwar

    suit(cotton) 4 35 140

    Track suit(2 pcs.) 3 60 180

    Shalwar

    suit(silky) 3 60 180

    Total 3355

    Thus we get following data on monthly and yearly basis :

    Minimum expected

    revenue/day/shop 3355

    Minimum expected

    revenue/month/shop 100650

    Total revenue/month 503250

    Yearly revenue 6039000

    (Turnover)

    Our Profit and Loss for the year would be as follows :

    Sales 6039000

    Less: Variable cost 4722000

    Contribution 1317000

    Less: Fixed cost 507000

    PBT 810000

    PAT @ 70% 567000

    We assume a growth rate of 5% on yearly basis.

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    PLACE

    We have researched the market for "door2door personal laundry services" and the results

    leave no doubt about the market opportunities. There is a growing demographic

    population of students and working people with so much to do and so little time. Their

    activity-based life style leaves less time for household chores. A reliable door to door, no

    hassle service is a very welcome and valuable option. In fact, a convenient delivery and

    collection service, for laundry and dry cleaning, has never been made available to these

    "on-the move" high potential customers. We have decided to launch our services in Pune,

    where we have targeted certain locations (Aundh, Pimple Saudagar, Wakad, Magarpatta,

    Koregaon Park, Chinchwad) which are industrial and educational hub. Apart from these

    locations, our target destinations would also be IIMs , IITs and other campuses where

    colleges offer residential programs. We selected these areas very carefully so that we can

    cover this huge populated city and get maximum market can share through easy access to

    our customers. Here we are planning to have tie ups with the institutions where we will

    have an automated machines ofCLEAN FREAKin the space allotted to us in the campus

    wherein we will be working in two shifts i.e. at noon and around 6.00p.m. The students

    will be informed that our employees would be coming twice in a day and they are

    supposed to drop their dirty clothes in the laundry bag kept near the machine. The clothes

    given at noon will be returned in the evening at 6.00 pm and the clothes given in theevening will be returned next day in the afternoon.

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    ADVERTISING AND SALES PROMOTION

    In this case we need to consider our target market, when we go for advertising and sales

    promotion.

    The different advertising tools we will be using in this case are:

    Print media: Inserts in the news paper. All the people we are targeting will be

    reading news papers and thus this advertisement as news paper inserts will really

    help us in creating awareness about the product.

    Banners: We are also using banners for advertisement because it has

    low price and can make attentive our services on the roads

    22

    and squares. The banners we are using having a size of 3

    meter x 6 meter each.

    Hoardings: We will make use of hoardings around the corporate offices and

    around residential areas. We will also make it a point to have a hoarding around

    colleges like symbiosis, where a large number of students stay in hostels.

    Radio: We will have announcements on the radio about our product being

    launched.

    1. We will have 3 slots in the morning from Monday to Saturdays.

    2. We will also have evening slots in the evening whenthe office hours get

    over and the college too is done. That will be from around 5.00 pm to 8.00

    pm. We will have 3 slots during that period too.

    Pamphlets: We will also distribute pamphlets to the homes,offices and the hostels of the universities and also some privates hostels. Through

    this source we can easily show the benefit and create awareness about our very

    advance and beneficiary service. For this purpose we will hire some people and

    make it sure

    that they are delivering pamphlets to the exect locations.

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    SALES PROMOTION

    We will also be using sales promotion to increase turnover:

    Bulk Discount:

    Discount:

    1. Sales above rupees Rs 500 we will offer a discount of 5% on the total amount.

    2. Sales above rupees Rs 1000 , we will offer a discount of 8 %.

    Free Coupons: We will be distributing coupons in malls and near offices, college in

    order to make people try out our service

    Promorional budget for each year

    Particulars Amount in Rs

    Pamphlets 25,000.00

    Out Door Media 160,000.00

    Banners 100,000.00

    Radio 1,50,000

    Sales promotion 25,000

    Total 460000

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    PRINT ADVERTISEMENT

    Before:

    NOW:

    GIVE IT TO CLEAN FREAK , ITS OUR JOB

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    PEOPLE

    Doing Good enabling sustainable livelihoods:

    We believe in the ensuring that all our employees share in the growth of our company we ensure that our employees see the clear benefits of working with CLEAN FREAK

    Laundry Services. These benefits include:

    (a) Skill development Most of the front-end staff that we recruit are under-skilled/ un-

    skilled, having minimal/ no formal education or training. On joining, we give 7-days

    training to each of them which includes both operational training on process for good

    quality washing and personal grooming, communication, customer marketing. So at the

    end of the training, the person has the skills to work in a more professional manner.

    (b) Financial security There is a direct correlation between business performance and

    employees salary, our front-end staff salaries have no ceiling - higher the business, more

    is their monthly salary

    (c) Personal each of our front-end staff is provided with Personal accident insurance

    cover free of cost, also they will get motorbikes so that they can travel in relative comfort

    to & from their place of work

    GROWTH OPPORTUNITY IN THE ORGANIZATION.

    Promoting from within from operator to manager

    Along with the benefits we also actively look to promote from within our organization.

    The aim is to reward our best performers with higher responsibility and salaries. Further,

    this also gives the front-end staff the confidence that unlike in other organizations, at

    CLEAN FREAKlaundry Services, they have an opportunity to become managers and

    that theres no glass ceiling in the organization.

    Our employee will be initially appointed as the operator who will be provided training of

    7 days which includes both operational training on process for good quality washing and

    personal grooming, communication, customer marketing. Because of this training they

    will be able to work in a more professional manner.

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    After having the complete knowledge about the operational part, we will send them for

    on-field job. The only purpose of sending the employees for on-field job is customer

    building and customer retention. Customer building and customer retention is possible

    only when the employees start building rapport with the customers and customer start

    developing trust on the employees. The customers are rest assured that they are giving

    their clothes in the safe hand and that the employee wouldnt lose or damage their

    clothes.

    Operational work and customer building is not the end of the employees growth in our

    organization. He will be promoted as the area manager to oversee different locations in

    the vicinity and will also be given increment in the salary. So from an operator, he will

    now become a manager, who handles and teaches other people on how to run the

    business and will set an example for other operators.

    The employees will be working in two shifts i.e. one from 6.00 am to 2.30pm and other

    from 2.30 pm to 11.00 pm. There will be two shifts because we are working for around

    17 hrs.

    All the employees wont be given holiday on the same day because we cannot keep our

    organization close for the entire day, so all the employees will be given different days as

    weekly off.

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    PHYSICAL EVIDENCE

    Customer in a service sector attempt to take cues about the service providers capabilities

    and the quality of service offered from physical evidence. Physical Evidence is the

    material part of a service. Strictly speaking there are no physical attribute, so consumer

    tends to rely on material cues. The major elements of physical evidence includes the

    physical environment, the modes and content of communication, service personnel the

    tangible elements accompany the service and the brand. There are many examples of

    physical evidence.

    Packaging: It is the way how we pack our ironed clothes and give it to the customers. All

    the heavy clothes would be packed with paper between each fold so that the ironing

    doesnt get spoiled.

    Paper work: Monthly bills will be provided to our creditors and also the account of the

    same will be maintained. For one time customers, individual bills will be given. Different

    brochures have been published so as to acquire new customers.

    Uniform: Our employees will be given two pairs of uniforms each year. According to the

    policy of our organization, each employee has to wear the uniform during the working

    hours.

    Furnishing: We operate in clean surroundings. We keep our premises free of dust, dirt orany other materials that may sully the clients' clothes. We also do not allow smoking so

    that the items retain its fragrance from the wash.

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    In

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    The Service Process of Laundry Services:

    The process begins with the customer placing the service request, over the phone,

    for the collection of the linen from his residence. Here the details about the

    customer are recorded and queries, if any, are attended to by the Executive.

    Based on the service request, the van arrives at the customers residence & the

    delivery boy visits the house. This is the first face to face with the customer.

    The delivery boy now collects the linen by tagging the garments & placing them

    in the collection bags. He also gives the customer an acknowledgement receipt.

    These collection bags are then brought to the laundry where the actual process

    starts

    o First, the clothes are sorted based on parameters like colour i.e. whites,

    light coloured & dark coloured.

    o Treatment is applied on the areas with stains/ dirt (such as collars)

    o The linen is then soaked in water along with the detergent. The duration is

    usually 30 minutes to 1 hour.

    o This is followed by washing of the linen in a high-performance washing

    machine.

    o They are then placed in the dryer for 45 to 60 mins

    o They are then taken out and some those not needing ironing are folded are

    the rest of the linen is sent for ironing.

    o Lastly, the linen is packed in plastic bags and are then ready for delivery

    The Invoice is prepared and sent to the customer along with the delivery of the

    linen

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    The process ends with the delivery of the linen to the customer and the collection

    of payment from them.

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    PRODUCTIVITY AND QUALITY

    We at CLEAN FREAKlaundry services make sure that the customers items are treated in

    the best way possible. We consider client satisfaction and trust as one of our most

    important motives.

    We give our customers surety that once they hand over the clothes to our employees, they

    are in the safe hands and wont hamper the quality of their clothes. Maintaining the

    quality of the clothes is what we believe in along with timely delivery of the clothes to

    the customers.

    One of the things that give us competitive advantage over others is delivering the clothes

    to our customers at their convenience. Being pick and drop providing services, we

    usually drop clothes at a fixed time but there are certain customers who are working till

    late in the evening so as per their convenience we will go and drop their clothes at

    specified time.

    Our USP being ON TIME delivery and delivering WITHIN 120 minutes for the clothes

    needed on an URGENT basis, we assure the customers to deliver it before time without

    giving up the safety and quality factor.

    Quality is one of the concerns the customer has while handling over their clothes to theservice provider. But at CLEAN FREAK, there is no need for the customers to worry

    about the quality of their clothes. Quality is given due importance at CLEAN FREAK.

    At CLEAN FREAKwe believe in following things:

    Preserving fabric quality. We classify the different items that the the customers give us

    so that each are washed in its proper setting. For example, silks are washed differently

    from lyocells. This kind of handling is necessary to ensure that all the items are kept in

    good condition. It is also a very good method to make sure that fabrics will last longer

    and look its best.

    Proper handling of items. Laundry services with good standards operate in clean

    surroundings. We keep our premises free of dust, dirt or any other materials that may

    sully the clients' clothes. We also do not allow smoking so that the items retain its

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    fragrance from the wash. Additionally, quality laundry service is done by trained

    personnel who take all the necessary steps to care of the clients' items.

    Be efficient and timely. Time translates to resources, and the sooner the items are

    returned to the clients the better. A good launderette can perform its washing services at a

    minimum of three hours per visit. We do the job as soon as possible for the convenience

    of the client and also to get more jobs done, a mark of a serious business. We provide

    same-day collection and return services to even bulky items like rugs and carpets.

    Competitive rates. All clients want services that are worth what they are paying. Some

    launderettes may offer services at a cheap price but have a shoddy output. But on the

    other hand, high price may not always mean quality service. So what the customers

    would like to look for is a launderette that gives quality service at the minimum price and

    we at CLEAN FREAKbelieve in providing quality service at minimum price.

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    SWOT ANALYSIS

    Strengths:

    Free pick up and delivery

    Better accountability

    Reliability

    Quick Service

    Service timings from 6 am- 11pm, 9 pm being the last call being taken.

    Hygiene

    Use of quality products

    Weaknesses:

    Cost a little higher as compare to the dhobis.

    We have no walk-in services available

    We are new entrants in the field and do not have a brand name to back us.

    Opportunity:

    We have a lot of scope for expanision as we are starting off only with Pune, wecan target all the metros and other tier two cities.

    We can have a walk in facility at our store.

    In case of the self service concept we can have a pick up and drop for the students

    too.

    Threats:

    The concept of pick up and delivery will soon be copied by the other laundries.