Transcript The “E-Z Cleaner”

“EZ-CLEAN ”
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EZ-LIFE
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July 24, 2006
Bodnar, Jana
Castrechini, Mariano G.
Durmusoglu, Mehmet
Groves, Natalie
Stamiris, Tom
Introduction
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EZ-LIFE is a designer and manufacturer of home appliances
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20 years experience in the market
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Recent market research highlights environmental concerns
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– Energy & water cost of running a dishwasher
– Negative impacts of dishwasher detergent on the environment
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Survey results online at: http://pages.videtoron.com/ezclean
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Results of analysis gave birth to the:
EZ-CLEAN Dishwasher
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Situation Analysis
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Market Summary
– Market size in Canada is approx 11M households
– Homeowners account for 8M
– 6M homeowners have dishwashers
Situation Analysis
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Market Potential
– Canada is a mature and saturated market as related to
kitchen appliances
– Dishwasher sales seen as high potential growth
– Retail volume sales of dishwashers is predicted to increase by
13% by 2008
– Kitchens often take first priority when it comes to household
renovations
– Functional improvements will be marginal, with a focus on
efficiency, and noise reduction, operating cost, and
water/energy consumption
Situation Analysis
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Demographic Trends
– Key trends affecting the sales of dishwashers:
– changing economic conditions, appliance replacement rates,
housing starts, energy costs and efficiency, designs and
styles (Eurostyling), convenience and time saving
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Consumer Behavior
– Dishwasher seen as ” kitchen jewelery “
– 94% of retail sales are built-in models
– Space saving designs and functional convenience
Situation Analysis
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Competitive Environment
– Price Competition and retail consolidation
– Retail-sponsored low rate financing
– Deferred payment plans
– EZ-CLEAN stands above the “me too” products
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Situation Analysis
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Technology
– EZ-CLEAN uses patented “Cryogenic” technology
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Dry ice pellets used as a cleaning medium
Safe on dishes
– Economically and ecologically viable
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No secondary wastes – eliminates detergent use
Saves on Water, Electricity, and Time
Situation Analysis
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Legal & Political Issues
– Water and Energy efficiencies are key on political agendas
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Federal Gov’t Energy Star programme
CSA driving the “30 Energy Efficiency Standards”
EnerGuide Label introduced in 1993
– Effect on Dishwasher Market
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37% avg annual reduction in energy use
– EZ-CLEAN will be 50% more energy efficient
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Overall Assessment of
Opportunity
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Energy Efficient Dishwashers
– Lower energy/water consumption
– Reduction in running time and noise levels
– Elimination of secondary wastes
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Favorable Economic Conditions
– Low interest rates
– Stable employment – security
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Housing Market / Home Improvements
– Strong Housing demand
– Kitchen is focal point of renovations
Objectives and Action Plans
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Primary Target Market
– Homeowners
– Potential market is 8M
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Objective
– 5 – yr plan
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Capture 15% of market
380,000 units
– Sales 132.5M $CDN
– PBILT 34.5M $CDN
27%
Margin
Objectives and Action Plans
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Product
– EZ-CLEAN falls within a Product-Development
Strategy
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– Customer Solution
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Addresses Consumer needs in terms of
– Energy Conservation
– Product Performance
Objectives and Action Plans
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Place
– Launch in Major Canadian
Cities
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Halifax, Montreal, Toronto and
Vancouver
– Convenience to Purchase
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Available through major retailers
Objectives and Action Plans
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Price
– Strategy is to penetrate and gain market share
– Customer Cost
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Price in line with Marketing survey
Factors in $$ savings to consumer
“Pays for itself”
Objectives and Action Plans
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Promotion
– Marketing communication mix
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Blend of above the line and below the line promotions
– Communication to Consumer
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Advertising
Sales Promotion
Events
Public Relations / Publicity
Objectives and Action Plans
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Comparing to Competitors
– Competitors designs have remained unchanged
– No major differentiation exists
– Pricing is not a deal-breaker
Product / Price
EZ-CLEANR
699 $ CDN
Retail Price
Financial
Predicted Market Unit Sales
660 000
640 000
18%
620 000
Units
600 000
580 000
560 000
540 000
520 000
500 000
2007
Unit Cost 275$CDN
Sales 132.5M $CDN
PBILT 34.5M $CDN
2008
2009
Year
2010
2011
Predicted Market Unit Sales
27% Margin
Promotional
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Launch in Major Canadian Cities
– Halifax, Montreal, Toronto and Vancouver
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Sequence of launch events will be identical in
all markets
Promotional
Timeline – advertising campaign
2007
2007
01/07
02/07
03/07
04/07
05/07
06/07
07/07
08/07
Update website with new information on the product
Write-up in the Gazette
Montreal national home show
Poster campaign
Magazine campaign
09/07
Summary
EZ-CLEANR
Because You Deserve It !
Thank You on Behalf of
EZ-LIFE
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