1. The View Although the invention is still in developmental stage, it is through the
prototyping stages. The company aims to launch the product by the end of this year.
The first sector that will be targeted is the commercial sector comprising of
hotels,laundries and care homes. Later on, the domestic sector shall be ventured into.
Though the people still await the launch of the invention, it sure is a noble and
intriguing invention that will turn a lot many heads. And it sure is going to make
people to ponder over the preciousness of our natural resources.
24. FEATURES:- ABILITY TO ATTRACT THE CUSTOMERS:- Any company
who launch the product in the market will have intension in the mind that it should be
of “Customer Oriented” Far which it needs to do following things like Research &
Development, Survey & so on. 90% WATER SAVING ABILITY:- In today‟ s era,
the product along with normal feature & function should also have some extra
features which makes customer need to buy a product. Likewise, our product has the
extra benefit of “Saving water” which is an importantfactor in an organization & also
useful for the betterment of economy. Biggest advantage of product is the “WATER
SAVING”. Save water, save life !!
25. SAVES ELECTRICITY:-In India, where daily in some states they face the
problem of power cut. For them it is beneficial. As it saves electricity & in same way
it is also benefits to other countries also who faces the same problems.
INNOVATIVE:-Due to improvement or drastic change in science & technology made
the world thinkinnovative which is something very unique which makes the product
more better in market & it can also helps in increasing the sales of the company &
likely the contribution to the economy. REASONABLE COST:-The cost of the
product suits the quality & the price requirement of the customers. It viable for all
class of people. SAFE IN USE:- The additional features of the product are that it is
safe to use but leads to problem when it is used casually. ECO-FRIENDLY:-As our
product saves water which is most important need of the people & also saves time
&less efforts are required to use it. So it is said as Eco-Friendly.
26. The waterless washing machine Context - New patented „nylon beads‟ technology
saves 90% water and 30% electricity ¤ R&D partnership with University of Leeds
(UK) ¤ Currently in stealth mode Key product features ¤ No dryer unit required ¤
90% less water ¤ 30% less electricity ¤ Uses patented nylon beads – stains get
attracted and get diffused in nylon beads, beads are recycled ¤ Currently in prototype,
first product available in end of 2010Note: See appendix for details on how the Xeros
washer works
27. Customers Context - Commercial cleaners & hotels will derive most benefit from
Xeros‟ offering Xeros Value proposition Value drivers à CustomerSegments Note:
Quantification of these value drivers and market size for each segment done later in
pricing and value creation section Commercial cleaners = professional dry cleaners
who have significant volume of regular laundry cleaning
28. CompetitorsContext - Key direct competitors are traditional washer/dryers and
„air washers‟ Primary Competition Secondary Competition Traditional Natural Air
Air washers Dry Cleaning Washer/Dryer drying • Mature technology • New
technology • Mature technology • Very low • Many strong • Uses recycled • High
quality total cost companies water • Preserves delicate • Huge market share • Can be
used for fabricAdvantages • Established delicate washing channels and manufacturing
process • Significant Energy • Uses ozone • Expensive • Time consumption and •
Only removes bio- • Need special skills consuming water usage (~30% degradable
stains and equipments • Low qualityDisadvantages of utility bill) • Newer unproven •
Use of abrasive technology chemicals
2. 29. Collaborators/Channels Context - Xeros should partner with some existing players
like GE in both segments Motivation / Decision Drivers Distribution Production
Branding Promotion • Startup company needs Channels good cash flow to sustain
License Brand as Use Direct Sales Existing retail (e.g. • Xeros‟ patent is on nylon
technology for „XEROS‟ Force for Sears) and online beads technology, it can
Commercial production to washer promotion (Amazon) channels take advantage of
GE‟s product established commercial expertise in production player like GE outlets
and distribution • Xeros needs to maintain its License Brand as Let GE take care
Existing retail (e.g. brand recognition as technology for GE washer of promotion
Sears) and online innovation leader in production to + „Powered (Amazon) channels
commercial segment Residential product established by XEROS‟ • Residential
customers are player like GE very fragmented and need a wide distribution network –
requires deep pockets • For commercial space, This project is pricing only for the
commercial washer product (not Xeros‟ sales force is in best residential product) and
will cover pricing for (1) washer unit (2) position to demonstrate the nylon beads
refills (3) service contracts new technology and value propositionNote: The
collaboration assumes that the license agreement drafted between GE and Xeros take
care of no-compete clauses andrestricts the freedom of use for certain allowed fields
only (e.g. commercial, residential etc..)
30. Pricing strategy pyramid- Framework used for pricing the new washer units +
beads Price Level Product value Pricing Policy Cash flow, Market Share Value
Communication Economic Benefit, Positioning Price Structure Bundling, Fencing,
Services Value Creation Economic Value, Offering Design, Segmentation
31. Value Creation - Savings come from lower operational costs, space reduction &
lack of dryer unit Space savings Total value Operational Dryer machine creationcost
reduction + due to lack of dryer + Savings = (relative to current costs for customer)
Conventional Xeros cleaning cleaning
32. Value Creation - The highest value add from Xeros‟ washer is in Hotels segment
Commercial Hopitals Hotels Loads LoadsLoads Weight (lbs) 10,000,000 Weight (lbs)
15,000,000 Weight (lbs) 5,000,000 / Weight/load 150 / Weight/load 150 /
Weight/load 150 = Annual Loads 66,667 = Annual Loads 100,000 = Annual Loads
33,333 Operational Savings Operational Savings Operational Savings Labor 2.50
Labor 2.50 Labor 2.50 + Water 0.10 + Water 0.10 + Water 0.10 + Electricty 0.10 +
Electricty 0.10 + Electricty 0.10 + Detergent 0.25 + Detergent 0.25 + Detergent 0.25 -
Beads (0.40) - Beads (0.40) - Beads (0.40) = VC/load 2.55 = VC/load 2.55 = VC/load
2.55 Value created by * Annual Loads 66,667 * Annual Loads 100,000 * Annual
Loads 33,333 Xeros washer is = Savings $ 170,001 = Savings $ 255,000 = Savings $
84,999 in addition to the savings from not Space savings Space savings Space savings
Laundry (sqft) 1000 Laundry (sqft) 3000 Laundry (sqft) 2000 buying the dryer *
Annual Rent $36 * Annual Rent $12 * Annual Rent $24 units * Utilization 25% *
Utilization 80% * Utilization 80% = Savings $ 9,000 = Savings $ 28,800 = Savings $
38,400 Savings SavingsSavings Operational 170,001 Operational 255,000
Operational 84,999 Dryer + Space 9,000 + Space 28,800 + Space 38,400 machine =
Net Savings $ 179,001 = Net Savings $ 283,800 = Net Savings $ 123,399 + Savings /
# Machines 30 / # Machines 30 / # Machines 10 = Value Created $ 5,967 = Value
Created $ 9,460 = Value Created $ 12,340 (~$15K)Note: Refer to appendix for more
details on calculations, data sources and assumptions
33. Price Structure - Revenue will come from washer unit, beads and service are
secondary sources Washer unit Beads Service Beads will be sold at 10 % Pricing
based on industryWasher machine unit will be margin per load – sold in 20
3. benchmark for conventionalpriced as per value provided pound packs washing
systems – 10-20%to customer - see next machine of sale pricesection for price level
Cost to customer = 40 cents (20 cents manufacturing cost + A contract agreement
basedFences could potentially be 10cents for distributors + 10 on hours of
operation,created for Hospital cents margin) would be an additional toolsegments by
creating some in endorsing product qualityproduct differentiation (e.g. For higher
bead profits,anti-bacterial lining for warranty could be written such SLA structured to
deliverwashers etc..) – phase 2 that Xeros beads are used service within promised
exclusively period of request
34. Value Communication Method - Use Direct Sales Force to communicate
differentiation and valueCustomer Economic Value Comparison Value Based Model•
Create a customer economic value comparison • Create customizable value model
software that sheet for primary competition. takes basic data from buyer as input and•
Include top differentiating value drivers – water calculates net savings specific to
customer. electricity, space and time. • Include inputs such as area used, operation
hours, labor, machine utilization & throughput. • Calculate cost savings, new
throughput, labor savings, reduced space requirements etc. - Communicate Economic
Value - Use Direct Sales mediumAddress concerns about New Product Other
Promotional Materialand Switching Costs • Product demonstration video• Expert
opinions from industry analysts such as • Reports on impact of current processes on
JD Powers in form of reports and videos environment.• Customer testimonials •
Product warranty• Demonstration videos focusing on simplicity of • Reference prices
from all other alternative use in washing and bead removal. washing products.• Offer
free installation and trials
35. Pricing Policy - Manage Cash flow and generate long term customers Objectives
Tactics Manage cash flow Give discounts for non-credit purchases (i.e. effectively
encourage shorter A/R period) Allow for volume discounts for big accounts (this is
required to manage customer expectations and can Win large volume also be used as
case studies for other customers) from big accounts Appropriately incentivize sales
force to target big accounts and give them 10% pricing flexibility Bundle annual
supply of beads (discounted price) withPromote beads sales initial sale of washer unit
with initial product Maintain 10% margin on beads sales later, once the customer is
locked in
36. Price Timing Graph - Start with skimming and then move to penetration
pricingPrice $34K $32K $25-28K Skimming Penetration Patent Expiry Time
37. Price Timing - Start with skimming and then move to penetration
pricingSkimming Penetration Patent Expiry• Differentiated Product • Price reduction
to increase • Price on par with• Convey Long term value adoption rates commercial
washers• Build Brand Image • Motivate volume purchases • Value to customer = No•
Guard against competition • Increase Market Share need for dryer• Consumer
feedback and • Build Service revenue • Launch non-commercial buzz stream model
for residential market $34K $32K $25-28K
38. PROBLEM WHAT PEOPLEMAY THINK OF REEGARDING THIS
TECHNOLOGY •COST •NYLON BEADS •GENERAL THINKING WILL
CLOTHES WILL BE WASHED WITHOUT USING WATER. •SERVICE
AVAILABILITY IN INDIA.
39. SUGGESTIONS•Cost should be such that can be affordable by each
&everyone.•For making product available to people technologyneed to be
developed.•One most important thing is “awareness level”. Itneeds to be increased in
daily life.•For increasing the awareness level it needs to bemarketed properly by
4. which consumption can be done.•Continuously innovate & come out with
productvariations across categories to meet the expectations ofa varied class of
customers.•Need to improve productivity & efficiency.
40. 19 Illustration of washing process using Xeros washer
41. BIBLOGRAPHY Magazines/ journals/newspaper Business world Business today
New inventions Websites www.xerosltd.com www.wikipedia.org http
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5. 33. Price Structure - Revenue will come from washer unit, beads and service are
secondary sources Washer unit Beads Service Beads will be sold at 10 % Pricing
based on industryWasher machine unit will be margin per load – sold in 20
benchmark for conventionalpriced as per value provided pound packs washing
systems – 10-20%to customer - see next machine of sale pricesection for price level
Cost to customer = 40 cents (20 cents manufacturing cost + A contract agreement
basedFences could potentially be 10cents for distributors + 10 on hours of
operation,created for Hospital cents margin) would be an additional toolsegments by
creating some in endorsing product qualityproduct differentiation (e.g. For higher
bead profits,anti-bacterial lining for warranty could be written such SLA structured to
deliverwashers etc..) – phase 2 that Xeros beads are used service within promised
exclusively period of request
34. Value Communication Method - Use Direct Sales Force to communicate
differentiation and valueCustomer Economic Value Comparison Value Based Model•
Create a customer economic value comparison • Create customizable value model
software that sheet for primary competition. takes basic data from buyer as input and•
Include top differentiating value drivers – water calculates net savings specific to
customer. electricity, space and time. • Include inputs such as area used, operation
hours, labor, machine utilization & throughput. • Calculate cost savings, new
throughput, labor savings, reduced space requirements etc. - Communicate Economic
Value - Use Direct Sales mediumAddress concerns about New Product Other
Promotional Materialand Switching Costs • Product demonstration video• Expert
opinions from industry analysts such as • Reports on impact of current processes on
JD Powers in form of reports and videos environment.• Customer testimonials •
Product warranty• Demonstration videos focusing on simplicity of • Reference prices
from all other alternative use in washing and bead removal. washing products.• Offer
free installation and trials
35. Pricing Policy - Manage Cash flow and generate long term customers Objectives
Tactics Manage cash flow Give discounts for non-credit purchases (i.e. effectively
encourage shorter A/R period) Allow for volume discounts for big accounts (this is
required to manage customer expectations and can Win large volume also be used as
case studies for other customers) from big accounts Appropriately incentivize sales
force to target big accounts and give them 10% pricing flexibility Bundle annual
supply of beads (discounted price) withPromote beads sales initial sale of washer unit
with initial product Maintain 10% margin on beads sales later, once the customer is
locked in
36. Price Timing Graph - Start with skimming and then move to penetration
pricingPrice $34K $32K $25-28K Skimming Penetration Patent Expiry Time
37. Price Timing - Start with skimming and then move to penetration
pricingSkimming Penetration Patent Expiry• Differentiated Product • Price reduction
to increase • Price on par with• Convey Long term value adoption rates commercial
washers• Build Brand Image • Motivate volume purchases • Value to customer = No•
Guard against competition • Increase Market Share need for dryer• Consumer
feedback and • Build Service revenue • Launch non-commercial buzz stream model
for residential market $34K $32K $25-28K
