ULTRA SONIC CLOTHES WASHING

MACHINE
Marketing Plan

Submitted By NMP Group 8

Table of Contents
1

Executive Summary....................................................................3

Situation Analysis........................................................................4
2.1

Market Summary...................................................................4

2.2

SWOT Analysis.......................................................................6

2.2.1 Strengths.........................................................................7
2.2.2 Weaknesses.....................................................................7
2.2.3 Opportunities...................................................................7
2.2.4 Threats.............................................................................8

2.3

Competition...........................................................................8

2.4

Technology Analysis:..............................................................9

2.5

Product Offering...................................................................10

2.6

Distribution/Channels..........................................................10

Marketing Strategies.................................................................11
3.1

Objective.............................................................................11

3.2

Targeted Segments..............................................................12

3.3

Positioning...........................................................................12

3.4

Strategies............................................................................13

3.4.1 Products.........................................................................13
3.4.2 Price...............................................................................13
3.4.3 Distribution....................................................................13
3.4.4 Promotion.......................................................................13
3.5

Marketing Mix......................................................................14

3.6

Marketing Research.............................................................15

Financials..................................................................................15

Marketing Controls....................................................................16

5.1

Implementation...................................................................16

5.2

Marketing Organization.......................................................17

References................................................................................18

1 Executive Summary
UltramaticLtdmanufacturesandsellsindustrialandhomecleaningsystemslikeultrasonic
cleaners.WeareamongleadingfirmsinIndiaformanufacturingsuchsystems.Ourproducts
includeSingletankultrasoniccleaners,MultistageAqueousultrasoniccleaner,Multistage
vapourdegreaser,OilSkimmersetc.Thecompanyispreparingtolaunchanew product
Ultrasonicclotheswashingmachineforindustrialandhomeclothescleaningsolutions.
Ultrasoniccleaningisamethodofcleaningthatusesanultrasonicdevicei.e.asonicatorto
clean.Theultrasonicdeviceusesaspecialcleaningsolutionandhighfrequencysoundwave
tocleantheitemsinfrequencyrangeof40to80KHz. Ultrasoniccleaningmethodhas
certainadvantageoverexistingwashingmachineslike;itreducestheneedofharshcleaning
agents,whichincreasesthelifeoffabric&color.Aspecialcleaningsolution,usedwiththe
machineistobeusedatawarmtemperature,somewherebetween50to65degreesCelsius.
LatesttechnologytrendsintheconsumerwashingmachinemarketsinclineheavilyonTop
andFrontLoadingFullyAutomaticwashingmachineswithFuzzyLogicbeingthesought
afterupmarkettechnology.ThelowerendofthemarketisdominatedbySemiAutomatic
washing machines. Ultrasonic technology in Washing machines has not been marketed
heavilyintheIndianmarketandisstilltogainspaceintheconsumerconsciousness.
Ourmarketingprioritiesincludeemphasisonanewcosteffectivetechnology,buildingbrand
awarenessamongcustomers,targetingspecificsegmentsinconsumerandbusinessmarkets,
generatingsalesandbreakingevenbytheendofthesecondyear.Thecompanyoperatesin
accordance to the environmental regulations. Our capabilities of technical expertise and
designandefficientassemblyproceduresnotonlycontributetocostcontrolbutalsoenableus
toreactquicklytomarkettrendsandtechnologicaladvances.Fortheproductsintroduction,
we will use a push strategy aimed at channel members offering customers a technically
superiorproductforahasslefreeandcosteffectivecleaningexperience.

2 Situation Analysis
Ultramatic Ltd was incorporated in 1999 to manufacture industrial cleaning systems like
ultrasoniccleaners&degreasers,fortheindustrialmarketplace.Weareoneoftheleading
firmsinIndiamanufacturing,marketingandprovidingaftersalesservicesforsuchsystems.
Intheyearsthatwehavebeeninbusiness,wehaveaddressedeveryconceivablecleaningand
washingapplication,fromsimpleoil,chip,coolantremoval,complexmetalparts,cleaning
moulds, hard disk drive components and photonic optical components to absolute zero
residueresults.Wearenowenteringthehighlycompetitivewashingmachinemarketwitha
newproductbasedonUltrasonictechnologyforbothhouseholdandindustrialuse.

2.1 Market Summary

Withanestimated590millionurbanconsumersby2030andanestimatedpercapitaspendof
about Rs 50,000 India has a huge market potential. A McKinsey Global Institute study
forecaststhatthenumberofmiddleclasshouseholdswithincomeof210lakhwillincrease
from 13 million households (i.e., 5 percent of the population) in 2006 to 128 million
households(41percentofthepopulation)by2025.
BasedonMarketResearchdataavailabletousforFY2011theIndianwashingmachine
marketcontinuesitshighgrowthtrajectory,albeittheannualgrowthratehascomedown
from38percentinFY2010to24percentinFY2011.Thetotalmarketofwashingmachines
inFY2011was4.7millionunits.ThemarketisdominatedbyfourplayersLG,Samsung,
Videocongroup,andWhirlpoolwithacombinedshareof74.6percent.Thesemiautomatic
product category continues to have a dominant market share of 65 percent in terms of
quantity,atsalesof3.05millionunitsin201011.However,invaluetermstheyarealmost
necktoneckintheRs4900croreindustry.FullyautomaticsalesisestimatedatRs2500
crore, the balance Rs 2400 crore being contributed by semiautomatic product category.
Zonewise,thenorthernregionofIndialeadswith38percentmarketshare,followedby
southern region 30 percent, western region 27 percent, and eastern region five percent.

Interestingly, North India has preference for semiautomatics, whereas their southern
counterpartspreferfullyautomaticwashingmachines.

At this stage we are among few leading ultrasonic cleaner manufacturers in the country
offeringindustrialproductsandspecializinginB2Bmarketing.Ultrasonicwashingmachines
arenewfortheIndianhouseholdsandhithertonotbeenmarketedintheB2Cspace.

The penetration of Washing Machines in India is very low as just about 8.8% of the
householdsownawashingmachine.Eveninurbanareasthepenetrationisjustabout27.5%
intermsofhouseholds(Source:DuPontResearch,Sep2013).Howeverthesalestrendfor
the washing machine industry is on a surge for the last few years with the product
increasinglybeingperceivedasautilityproductratherthanaluxuryproduct.(Source:TV
Veopar Journal, April 2012). According to conservative estimates, the washing machine
industryisregisteringanaverage20%YOYgrowthasperareportbyResearchandMarkets.
ThusthemarketsizeforFY201415canbeestimatedas:
4.7millionin2011;CAGRof20%;hencemarketin2014:8.13million.

2.2 SWOT Analysis

2.2.1 Strengths

Innovative Product: Product will be differentiated on basis of high technology

combined with commitment to high quality, and customization of products and

supportservices.
Pricing: Our product is priced neither at a level of prestige or exclusivity nor
economiesofscale.Ourproductforthebusinesssegmentwillbepricedbasedupon

valueproductpricingchargedearliertowardsoldcustomers.
Employee: Highly skilled technical manpower involved in product design and
engineering.HeavyinvestmentinR&DwiththeR&Ddepartmentconsistingofonly

PHDs.DedicatedmarketingteamforB2BsalesandB2Cmarketingbeingaugmented.
Longterm relationships: We have excellent relationship with our suppliers and

businesscustomers.
Quality:AssuranceandcontrolateachprocesslevelwithemphasisonTQC.
ReturningCustomer:HighpercentageofrepeatsalesforBusinessCustomers.

2.2.2 Weaknesses

Brandawareness:UltramatichasnoestablishedbrandimageincomparisonwithLG,
SAMSUNG,IFBandothersfortheconsumermarket.Asofnowbrandawarenessis
throughwordofmouthbaseduponourB2Brelationships.Aggressivepromotionwill

addressthisissue.
ProductlinemostlygearedtowardsIndustrialproducts.

UtlrasonicwashingmachineswillcostmorethannormallyavailableFullyAutomatic
washingmachines.

2.2.3 Opportunities

Technology:NewSmartTechnology,whichwillbecosteffectiveinthelongrun.
After influx of Smart Technology consumers are ready to pay higher for product
innovation.

2.2.4 Threats

IncreasedCompetition:CompetitorssuchasNitinEngineersareinthemarketwith

equalcompetence.
Probabletheftoftradesecretsisdifficulttocontrol.
PoachingofR&Dteambycompetitors.

2.3 Competition
ThetopfourplayersLG,Samsung,VideoconandWhirlpoolcollectivelyaccountforabout
75% market share. Semiautomatic washing machines capture about 75% of the overall
washingmachinemarketshareintermsofunitssold.Howeverasper2010data,therevenue
shareoffullyautomaticandsemiautomaticwasalmostsameataroundRs.2500crore.
Geographically,NorthIndiaaccountsfor38%marketshare,South30%,West27%and
East5%.
In terms of price, the washing machines are categorized as those priced below Rs.8000
(generallysemiautomaticmachines),Rs.8001Rs.17500(fullyautomatic6.2kgload),and
aboveRs17,500(6.5kgorfrontloading).
Popular brands offering Washing Machines in India are:

*Jan-Dec 2010-11

2.4 Technology Analysis:

Globally,thewashingmachineindustryiswitnessingkeytechnologychangeswithsmart
appliancesaspectgainingwideinterestwiththeconsumers.Inverterbasedvariablespeed
drives(VSD)isalsocapturingtheattentionofpotentialcustomers.
InIndia,theconsumerpreferenceisevolvingfromperceivingwashingmachinesasmerelya
utility product to considering it as an energyefficient, wellconnected and valueadded
appliance. Of late Smart Technologies have captured consumer attention in consumer
durableslikeTelevision,MobilePhonesetc.Ultrasonictechnology,thoughinusewidelyin
IndustrialCleanershavenotbeenexploredforuseinwashingmachines.

2.5 Product Offering

WewilllaunchtwoproductsonefortheConsumermarketandanotherfortheBusiness
market.Productfeaturesinclude

Aqueouscleaningsolution
Indirectheatingofsolventenhancesthelifecycleofthesolvent
Properinsulationofthetanksminimizestheheatloss&inturnsaveselectricalenergy
Ultrasonicgeneratorishavingautotuningcircuitforoptimumpowerduringloading
Onetouchprogrammingpanelwithcoloureddigitalscreendisplayforpresetmode

selection
Plugandforgetfeatures
Sleekdesign
FrontLoadingandautomaticdrying
50%lesscycletimethanFullyautomaticmachines
Temperaturecontrol,CycleTimecontrol,SpinRatecontrol
Adjustmentforfabricmodes,Automaticpowerstabilization
Sleepmode&Emergencypause
7KgforConsumermarketand35KgforBusinessmarket

Our Product will be in direct competition with the following popular brands.
The specification of these popular brand is as follows.

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2.6 Distribution/Channels
UltrasonicWashingmachineswillbeselectivelydistributedthroughanetworkofretailersfor
theconsumersegment.B2Bsaleswillbedirectlythroughoursalesforce.
Traditional Channel: We plan to partner with Electronic Specialty stores and Electronic
specialtychainslikeCromaandRelianceDigitalforphasewiserolloutofourproductin
MetroandTierIcities.Weseektomaintaincontrolontheretailingwithpositioningof
dedicatedsalespersonneltoexplainproductfeaturestocustomersthroughlivedemo.Retailer
salesforcewillbetrainedinhouseinourfacilityfor2weeksabouttechnicalaspectsofthe
product. Technicians from the company will provide technical assistance for installation,
servicingandbreakdown.Selectionofstoresbasedinareaswithhighfootfallsfromaffluent
customers.
OnlineChannel:Buyerswillplaceorders,trackshipments,andhandleotherfunctionsonline
throughouronlinesecuresystems.Oursuppliershavesufficientpartsandcomponentsready
forpeakproductionperiods,andourflowofgoodswillensureproperinventorylevelsduring
theintroductionphase.Ontheotherhand,wemustavoidexcessinventory,becauseofthe
threatoftechnologicalobsolescence.

3 Marketing Strategies
3.1 Objective

PhasedLaunchinmetros,thenlaunchintier1citiesin6months,breakevenin2yearswith
gainofaround1%inmarketsharefortheHouseholdFullyAutomaticCategorythroughunit
salesvolumeof16000.Wealsoplantosale2000unitsfortheIndustrialcategory.

3.2 Targeted Segments

Consumer Markets: Within the consumer market, our primary target segment is high
incomegroupconsumersinmetrocities,wheremanyofthelocaleshaveshortageofwater
supplyorthesupplyistimebound.Weplantotargetwelleducatedconsumerswithannual
householdincomeofaroundRs1000000perannumandsocioeconomicclassificationofA1

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and A2. We need to convince Fully Automatic Washing machine users to upgrade to
Ultrasonictechnology.
Business Market: The other segment targeted will be industrial houses and commercial
establishmentsinvolvedinclothingandlaundrybusiness,manufacturingorexportshouses
suchasOrientCraftlimited.Thissegmentwillbeattractedbywashingmachineswithhigher
capacity.Reliabilityandcustomersupportservicesisamajorfactorforbusinessusers.Our
introductory5yearswarrantywillappealtothissegment. Ourmainobjectiveistocapture
repeatsalesfromexistingrelationshipswiththisnewproduct.Theseinclude

Large Textile manufacturers and apparel export houses which uses heavy duty

industrialwashingmachines.
Nonmanufacturing segments of the businesstobusiness market such as garment

exporthouses.
ResidentialinstitutionslikeBoardingschools/Colleges.

3.3 Positioning
Our differentiation is based on technology which is hassle free and cost
effective in the long run. For households it is an answer to all cleaning
woes and better value for money than traditional washing machine.
For B2B sales our positioning will be based on our reliability of product and
service reputation.

3.4 Strategies
3.4.1 Products
Ultrasonic washing machines are high technology products, cost effective
in the long run, sleek in design and come fully loaded with features. This
product has the potential to carve out a niche segment in an already
saturated washing machine market littered with traditional technology. It
will be a trend setter for the household consumer segment in terms of
technology with the competition gradually adopting it in the long term.

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Product attributes are difficult for competitors to copy in the short run,
thereby giving us competitive advantage.
3.4.2 Price

We plan to position our product for the affluent sections of the society in
the consumer section. After price elasticity analysis of our product we
have arrived at a price of Rs 45000, which is comparable to current high
end Fully Automatic Washing Machines. Our customers will pay only a
small premium compared to current best-selling models, which sell in the
range of Rs 40000-420000. For our B2B sales we will apply value pricing
formulas like other Ultrasonic products and it will be Rs 150000 per unit.
3.4.3 Distribution
Our channel strategy is based on selective distribution with control over
retailers in terms of sales pitch. Our retail mix will include well-known
Electronic Specialty Stores and Electronic Chains like Reliance Digital and
Croma. Online channel will be based upon our website. We plan to give
dealer commission of 10% on the consumer price. We also plan to provide
training to selected sales personnel from each store selling our product
and generous grants towards full-length colour displays of the product on
all shop floors.
3.4.4 Promotion
We will promote our product with an extensive electronic media blitz and
focus on differentiation through our superior technology and long run cost
effectiveness. An advertising agency will be selected for conducting
advertisement on television during prime time, communicating our
differentiation. This will emphasize on how the Ultrasonic technology is the
future of next generation washing machines and how this will change
household management of laundry in the future. The media advertisement
will not have a celebrity brand ambassador initially and will only focus on

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the product and its futuristic features. From time to time we will print full
page advertisements on national dailies. To motivate channel partners we
will use trades sale promotions and personal selling. Until enough brand
awareness has been generated our communications will encourage sales
through our sales partners rather than from our website.
For B2B sales we will focus on trade journals or specialty publications.

3.5 Marketing Mix

Quarter 1: We will launch a sales promotion campaign and participate in
major industry trade shows to educate dealers and generate channel
support for the product launch in addition to introductory television
advertisement targeted at metro cities till the quarter end. We will pitch
the product in TV talk shows, which specializes in Electronic Lifestyle
products like NDTV Gadget Guru. Our training staff will work with retail
sales personnel in our in-house facility to explain the features, benefits
and advantages.
Quarter 2: We will start an integrated print and internet campaign to
generate awareness and induce conversation. The campaign will focus on
our differentiation on technology and cost effectiveness in the long run.
The campaign will be supported by point-of-sale signage and online ads
and videos.
Quarter 3: By the third quarter we would have a pan-India distribution
and will roll out an integrated national advertising campaign. We will
feature celebrities using the product in Ads on TV and radio. We will also
use animated online ads featuring avatars of these celebrities using the
product.
Quarter 4: We will institute customer satisfaction surveys to garner
feedback on product and marketing activities. We will review marketing

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effectiveness in terms of annual sales and benchmark retailer and

distributor performance. In addition we will announce extensions in our
product line with products of different capacities and price points.

3.6 Marketing Research

We will invest in market research on consumer reaction towards ultrasonic
washing machines for better targeting of consumer segments and gauge
the level of acceptance of our product. Surveys and Focus group
interviews with first users will be conducted across metros and Tier I cities
to measure brand awareness and customer satisfaction.

4 Financials
Ultrasonicwashingmachinesarepricedafterkeepingcompetitorsinmind. Ultramaticis
neitherconcernedwithsettinghighpricestosignalluxurynorisitattemptingtoachieve
economiesofscale. Insteadvaluepricingispracticedsothatcustomersfeelcomfortable
purchasingnewwashingmachinetoreplacetheold.Thecompanywillprice7Kghousehold
consumermodelatRs45000and35KgindustrialmodelatRs150000.Thecoststructure
anditsanalysisaregivenbelow.Thedatainfersthatthebreakevenwillbereachedattheend
of2yearandsaleswillcapture1%ofmarketshareinthefirstyearitself.

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5 Marketing Controls
WewillapplyActivityBasedCostManagementtechniquetocontrolcostsandeliminatenon
valueaddedactivities.Responsibilityofeachcostingwillbeassignedtoindividualstoinfuse
accountability.

5.1 Implementation

Stringentcontrolactivitiestomonitorqualityandcustomerservicesatisfaction(two
keyperformanceindicators)

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Monitoringcustomerservicecommunicationsandonlineproductreviewstodetect

anyearlysignsofcustomerconcernorconfusion.
Controllingschedulestoensuretimelyimplementation.
Quarterlyfinancialmeasureswillincludereturnonmarketinginvestment,returnon

sales,andreturnonsalesbychannel.
Contingencyplancallstointroduceshorttermpricepromotionsuchasadiscountto
remaincompetitive.Basedontheoutcome,revisethemarketingplanasnecessary

5.2 Marketing Organization

6 References
Our report is based on a real life company based out of Noida named R.K.
Transonic Engineers Private Limited. Website of the company is
http://www.ultrasonicindia.com/.
TV VEOPAR JOURNAL, APRIL 2012, adi-media.com, An ADI Media
Publication
Marketing Management, 14E by Kotler, Keller, Koshy and Jha
Online Resource:
http://compareindia.in.com/products/washing-machines/10
http://en.wikipedia.org/wiki/Ultrasonic_cleaning

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http://www.ukwhitegoods.co.uk/help/buying-advice/washingmachine/3502-washing-machine-cost-breakdown.html

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