Hakimi Consultants

Team Name: X-Men

Product Background

Revenue and Cost Analysis

Financial Analysis and Impact

Synergy

Agenda

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

Product Background

Product Specifications

The bath box would be of dimension 45 inch*40 inch*108 inch made of fibre wall 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 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 Available in both left and right hand opening doors to give ease of access

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.) 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.)

A simple diverter knob changes the bath into different modes if any step in the automatic process is to be skipped A simple diverter knob changes the bath into different modes if any step in the automatic process is to be skipped

Post the bathing; the system is automatically activated to ensure the jets are dry, stopping any build up of bacteria 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 There would be a small open cupboard attached to contain the clothes of the user

PLC - Marketing Objectives

Yr Phase Marketing Objectives

1 Introduction Phase To create an awareness about the product.

2 Growth Phase Starting

To maximize reach and get as many long term contracts for supplies from government’s infrastructure projects, real estate & small scale companies.

3 Growth Phase Build a consistent brand image and positioning.

4 Years 5-6 Maturity Phases

Ensure product modifications according to technology changes. Have established systems in place to ensure timely development of product among suppliers and faster go-to-market time. Develop and maintain long term client engagement and hence relationships.

SWOT Analysis

OpportunitiesOpportunitiesWeaknessesWeaknesses

Unknown product, low awareness

• 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

• First mover advantage in the quick bath market which has huge potential• Quick bath market has huge growth potential

First Mover Advantage and huge

potential

Low cost SubstitutesUntapped Market, Expansion

•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

StrengthsStrengths ThreatsThreats

PESTLE Analysis

PESTLEPESTLE

Political

Political

Econ

omic

alEc

onom

ical

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

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

Indian economy is one of the fastest growing economies The travel industry also enjoys enormous growth every year

Indian economy is one of the fastest growing economies The travel industry also enjoys enormous growth every year

It helps to maintain a clean and healthy environment in public places The production also complies with the requirements of environment safety

It helps to maintain a clean and healthy environment in public places The production also complies with the requirements of environment safety

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

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

PoliticalPolitical EconomicEconomic

EnvironmentalEnvironmental

SocialSocial

Technology replication has become very common and hence constant innovation is the key to remain ahead of the competition.

Technology replication has become very common and hence constant innovation is the key to remain ahead of the competition.

TechnologicalTechnological

Technological

Technological

SocialSocial

Environm

entalEnvironm

ental

Lega

lLe

gal

• The probable legal consideration could be “failure of service” allegation by customer On the production front, labour law compliance is a major consideration .

• The probable legal consideration could be “failure of service” allegation by customer On the production front, labour law compliance is a major consideration .

LegalLegal

Print Media – industry-specific and trade magazines.Print Media – industry-specific and trade magazines.

Social MediaWe 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

Social MediaWe 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

Visual Media (TV) – Product features demonstrated through sponsored Programmes, Company executives interviews, Plant demos.

Visual Media (TV) – Product features demonstrated through sponsored Programmes, Company executives interviews, Plant demos.

Integrated Marketing Communications

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

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.

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

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

Technology Acquisition Strategy

Pricing Method

LocationsTotal No.

% Targeted

Total targeted

Bath-box/Location

Total Demand

Railway Stations 7000 20% 1400 10 14000Airports 100 80% 80 10 800

Bus Depots 5000 20% 1000 5 5000

Market Places 1000 20% 2000 5 10000

Companies 5000 10% 500 10 5000

Total Demand 34800

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 yearThe 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. 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 marketsIn 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

Particulars

Phase 1 (In Rs

‘000)

Phase 2

(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

Investment Snapshot & Project Financing

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

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

Revenues 34,80,000 38,28,000 37,89,720 41,68,710 45,85,590

Pricing Method

Cost Element Unit Cost (In Rs ‘000)

Technology Development Cost (R&D) 20

Material 20Production Cost 15

Selling, Distribution and General Administration Cost 15

Promotion & Other Costs 5Total Cost 75

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.

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.

As this technology is a disruptive innovation a high sell pitch and advertisement is necessary to capture target market segment.

STPD Analysis

Market Segments and

Targeting

State Government

State Government

Central Government

Central Government

Small Scale companiesSmall Scale companies

Real Estate CompaniesReal Estate Companies

Differentiation

Our product is a completely new product in the Indian marketThere 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.

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

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

References

http://www.forrester.com/rb/Research/how_b2b_technology_buyers_use_social_media/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:effective-b2b-communication-channels

Thank You