Speed Laundries Limited

Who We Are?

Speed Laundry is providing full services of washing dry cleaning and pressing. We take care in providing top quality services. Taking the time to making the effort to be sure every detail is checked so your clothes will look their best. Your clothes are inspected for spots, pressing and general appearance. Speed laundry does it right the first time and that’s why our customers keep coming back.

History

Speed Laundry has been working since October 2003. Our organization provides a range of services relating to domestic and commercial sector. These services range from washing, drying and pressing to most complex services like cleaning sensitive fabric, blankets, shirt wastes and suits etc. The suitable timings for starting this business was in October because this type of business had a busy schedule in winters. In winter season, people normally wore worm clothes that are sweaters, jackets, suits etc. and it is also season of weddings. Due to these activities and wearing pattern the demand for dry cleaning increases compared to other seasons

Reasons to Join this Business

There was an important factor for the entrepreneurs to set up a dry cleaning business in big cities of Pakistan due to the fact that it has become difficult for the people to wash all types of clothes in their houses i.e. Jackets, Sherwanis and other sensitive clothes. In Pakistan dry clean industry has grown over the years in small set-ups, with low quality services, and there is a need for better service oriented dry clean units. There is a lot of unfilled demand as can be judged from excessive rush at the existing dry clean setups. The business is service-oriented and carries large potential for profits due to its unique nature and uncontrolled spending of people, especially on marriages. The life style of the people in Pakistan has changed over the years. Now days, people are more conscious about their clothes and the need for dry cleaning has increased.

Product Line

Our product consist of the following

Washing Drying and cleaning Pressing Cleaning sensitive fabrics Blankets and carpets

Shirtwaist and suits Steam pressing

Project Limitations

Working hours per day 14 hoursOperating shift per day 2Working days per annum 300 daysMaximum clothes dry clean per day 395 units of clothesMaximum weight of clothes per day 320 KgMaximum weight of clothes per batch 60KgHours utilized per batch (Laundry & Dry cleaning) 1.5 hours

Project Investment

Total project cost of the proposed laundry and dry cleaning unit is Rs. 4.603 million. Thisincludes a fixed cost of Rs. 3.845 million and a working capital of Rs. 0.758 million.

Mission

Our mission is give you the cleanest well kept laundry, equipped with the best maintained machines, long operating hours along with our Famous Wash, Dry and Fold Service.

Vision Best quality services at your service with lasting services.

New Product Development Process

1. Idea Generation2. Idea Screening3. Concept development 4. Marketing strategy5. Business Analysis6. Product development7. Test Marketing8. Commercialization

1. Idea Generation

Speed laundry is working for the last five years providing the best services to its customers now it was needed to expand its business by exploring the market opportunities and to meet increasing demand of its customers. Now speed laundry is providing its services with the most modernized machines which reduces the time of customers service and increases the value for the customer.Idea is being generated from the following resources

External Sources Internal Sources

External Sources

Marketing department of speed laundry analyzed that the customers are demanding such services through which their clothes would be washed in minimum time. They do not want conventional services which take more time so there was demand of services like Coin Laundry or Self Service Laundry.

Internal Sources

With changing market scenario employees also suggested that coin laundry was best solution to it. Our top level executives generated the idea that our laundry should work eighteen hours a day and we are needed such new products which provide us the maximum revenue by increasing the volume of washing clothes and this was only possible by operating the most modernize machines which consume very less time and provide the ultimate cleanliness.

2. Idea Screening

In this step we screened out he best idea which was to operate with such machines which will consume less time and get customer desired cleanliness. We selected this idea because it is cost effective, reduces the time which benefits to customer and as well as to our laundry. Customer can get the clothes in less time and company get benefit because now more customers can get the services in the same time as compared to previous system.

3. Concept Development

We used graphical development method for pre feasibility of coin laundry system. We analyzed the marketing and on going details. We analyzed our target market business finance approved the decision. Quick services, cleanliness, washing in front of your eyes, internal services provided to utilize each and every minute of precious time. This product will provide cost effectiveness and time saving benefits to

customers. The expected reaction of customers is high as there is great need to target market.

4. Marketing Strategy

It is the most important part of new product development process because it gives us complete information about the market. This involves the following steps

Pest Analysis

Demographic

Mostly people of age 35and above are on executive seats. Busy people do not have much spare time. So they like to take services of laundry for their cloth washing. Both men and women will be target market. Due to their busy life they will like to take the services of laundry. As household are generally big in Pakistan, so high rates are being expected. Region has its own needs. That’s why we have targeted and targeting the areas like Model town, Wapda town, Valencia Town and Defence where mostly executive class live. Population growth rate is very high. Big cities have very huge population.

Economic

Middle and upper class is our target which can happily pay for our services. Executive class in Pakistan holds much part of the income. They work on high salaries. They do not shy from consuming; just want that their work should be done appropriately and in time. Physical

Cities have appropriate structure. Especially areas like Model Town, Defence have very fine roads so there will be no transportation problem. Buildings are also very fine so there will be no problem in opening new branches. All the facilities are available like phone, electricity. But nowadays there is shortage of electricity so generators will be needed.

Technological

New automatic machines and spinners will be introduced. Executive class is basically technology acceptance so they will be fully avail this new opportunity.

Political

Things like strikes, protests and other unlike political situations creates problem for us. People scared from coming out of the house in these situations. Although culture here is different. People wash clothes in their house by themselves usually by housewives or washer men by themselvesCome to houses to take clothes. But laundry service is a new product and people will like to adopt it.

Legal

This business is legal here and there will be no any legal problem in opening new branches. To keep and mountain appropriate sanitary system so that no problem should rise for residence around laundry.

,Strategic Management

Strength

First one in Pakistan Less time consuming Full customer satisfaction due to cleanliness and no fade of clothes Deals with sensitive fabrics Reasonable and competitive charges

Weaknesses

Located within limited area Less power supply in case of load shading

Opportunities

Wedding ceremonies Requirement of busy people

Threats

Our indirect traditional competitors

BCG MATRIX: Relative Market Share

High Low

High

Growth Rate

Low

CustomerCustomer is the king of the Market

We are targeting platinum, gold and iron customers.

Consumer Buying Behavior

TYPES OF CONSUMER BUYING BEHAVIOUR.

Involvement Involvement

Dry CleaningSteam Pressing

Blankets & Carpets

------

Major Difference

Minor Difference

Our services lie in habitual buying behavior.

Business Buying Behavior

We buy detergents from our suppliers. Detergents buying lies in routine products and machinery which we import lies in strategic products.

Business Buying Process

Problem identification

Customers were complaining about the fading of the clothes and due to that problem our sales were decreased. This was a serious problem

Need Description

It was needed to change the detergent which we satisfy our customers. Because now the supplier was providing low quality detergent.

Product Specification

There were many products in the market alternative to that detergent. New detergents were needed to be specified.

Supplier Search

Advertising was made in newspaper for the supplier search.

Complex B.BVariety Seeking B.B

Dissonance Reducing B.B

Habitual B.B

Proposal Solicitation

Interested suppliers sent us their proposals. ARIAL and SURF EXCEL sent us their solicitations.

Supplier Selection

ARIAL was selected as supplier to supply us detergents

Order Delivery Routine

We discussed all details regarding cash payments, installment, time of delivery and quality etc. All major and minor details were discussed with the supplier.

Purchase

After successful negotiations ARIAL detergents was purchased.

Performance Review

Performance of ARIAL was reviewed and it was concluded that this product had provided us the desired results. So now we are straight re-buying.

Target Customers

Executive Class

Our special target is executive class who do not has enough time from their busy schedule and require good cleanliness services because of their meetings with very high class personnel of native and foreign country.

Hospitals

Hospitals take the services of laundries for the washing of bed sheets and other dresses of doctors and patients. These are also our target customers because they give very big orders. If we get their orders it will be really helpful in making revenues and profits. As there are so many hospitals in the city so there are very fine opportunities for us business. As much the orders will be so less the cost is so as the profit be made.

Hotels and Restaurants

Usually hotels and restaurants do not help the staff for washing bed sheets, blankets and carpets. There are so many hotels and restaurants in the city, we can gain that market. Especially our target is five star hotels such as Pearl Continental and Awari.

Hostels

Students, men and women living in the hostels is our most revenue generating market because most of them do not have the facility to watch their clothes or if they have facility but they do not have enough time. They take advantage of our quick services.

In general our target customers are following People living in hospitals. People living in hostels. Busy persons who do not have enough time to wash their clothes. Nursing homes. Health Clubs. Hotels and restaurants. Retirement communities. Industrial plants etc.

Supplier

There are large numbers of suppliers available in the market. We buy our detergents from and machinery from Clarks Coin Laundry Equipments.

Competitor

Speed Coin Laundry is dominant in the market. We do not have any direct competitor in the market. We have the following indirect competitor.

Bright Laundry (Mall Road)National Dry Cleaners (Wahdat Road)Amar Pak Laundry (Yaadgar)Pearl Dry Cleaners ( Mall Road)

Distributor

We are using zero level channel marketing. We have our own branches in targeted areas. These all branches work under our main branch which is situated at Mall Road Lahore. All our services are available there.

Marketing Information System

This system has four parts

Internal Record System. Marketing Intelligence System. Marketing Decision Support System. Marketing Research.

Internal Record System

By using this system we see about the history and sales value of our organization in the past. We analyze the following three things in this system

The order to payment cycle. Sales information system. Data ware houses and data base mining.

The order to payment cycle

In this system we analyze the orders which sales representatives, dealers and customers send to us. After that sales department repairs invoices and transmits to various departments. Actually in this cycle we analyze the whole process of booting to payment cycle of laundry items.

Sales Information System

In this system as a top authority holder of the speed’s laundry. We see information about the sales trend. We get information about vulgar customers and our laundry’s market share in the market.

Data Warehouses, Data Basis and Data Mining

We also analyze about all customers of our laundry and segmented vise and then also see the behavior of our customers which was based on our each laundry branch base.

Marketing Intelligence System

In this system we collect information about the coin laundry by reading books, news papers and trade publications, after discussing with suppliers and distributors and meeting with other company managers. We can say that we use the following four sub system to collect information about the coin laundry

Competitor Intelligence System. Customer Intelligence System. Supplier Intelligence System. Distributor Intelligence System.

We see that in Pakistan, in laundry business no one is using coin laundry system also irritates us to begin this business at national stage to get profit as much as possible? And after seeing the customer behavior who is very mannered these days. Customer’s behavior to save time also helps us to begin this coin laundry system in the country.

Marketing Decision Support System In this system we used the following steps for our coin laundry

Ad cad

We are focusing slice of life in our ads.

Geoline

We have territorial sales force. We use this tool for job specification of our employees and sales force.

Cover Story Our cover story is to “SAVE TIME”.

Marketing Research System

A committee of six members flat structured was developing to identify a problem and report it to management. This committee performs the following steps

I. Identification of ProblemII. Develop Research Plan

III. Collection and Interpretation of DataIV. Report the FindingsV. Taking Decisions

I. Identification of Problem

Committee had the following three researches to identify the problem.

Exploratory ResearchThe expert opinion of the committee said that the problem exists.

Descriptive Research

In this step the committee describes the problem in detail. They describe the full aspects of problem.

Causal Research

In this step the committee compared the causes of problem with consequences.

Causes

Conventional system was operating by consuming more time and the customers wanted the return of their clothes in less time. Load shading was also a problem.

Consequences

They said if it is not controlled our customers will move to competitor because some of our competitors have sources of power generation.

II. Develop Research Plan

This step was very costly the committee used the following three techniques

Research Approaches. Research Instruments. Contacts.

Research Approaches

Observational Research

Committee observed behavior of the people that they are moving to competitors because competitor has installed the generators so the load shading was not a problem for them.

Survey Research

The committee held a survey to find out why our sale had been decreased. Customers were complaining about the time which conventional machines take and for load shading

due to which they had to wait for their clothes. Obviously people do not have time in this busy world.

Research Instruments

Manual

The committee used open ended and close ended questioners. People answered that our laundry takes more time and some time for load shading they had to go back and then come again. It is too difficult to them to get so much spare time from their busy schedule.

Contacts

Physical contacts were used. Research committee members personally met with the people and the staff of the hostels, hotels and hospitals etc.

III. Collection and interpretation of Data

Committee collected the data from internal record system and from the above steps. After collecting this data they interpreted it.

IV. Report the Findings

After Collecting and interpreting the data it was reported to management.

V. Taking Decision

Management accepted the research as it was. They decided to replace the old machines with new and modernize machines which could perform the similar tasks in less time and it was also to install generators so that no customers could go back.

Segmentation

Demographic Segmentation

Our main focus is to serve all the age groups in the society. All income classes are our priorities and we serve them on the basis of equality. We are serving both male female customers.

Geographical Segmentation

Geographically we are working in Lahore because there is great potential for this business .Speed Laundry will give a new trend in the washing system so we are hopeful to increase our market in Islamabad and Karachi.

Technological Segmentation

The people of Pakistan are technology acceptance. Speed laundry will surely help to fulfill the needs of these people.

Occasional Segmentation

We focus the customers which contact us on traditional occasional like Wedding Ceremonies.

Targeting

We have targeted demographic and technological segments.

Target Market Strategies

1) Single segment concentration.2) Selective specialization.3) Product specialization.4) Market specialization.5) Full Market coverage.

We have single segment concentration because we are operating only in the market of Lahore and providing laundry services.

Strategies

We are using differentiate segmented strategy.

Positioning

We are promoting time saving and cleanliness.

Our positioning statement is:

It is the time for which you care and it is the bright cleanliness which you are promised.

Value proposition

We are offering more value for same price to satisfy our customer.

PRICE

MORE SAME LOW

MORE V A L SAME U E LOW

Differentiation

Our product is clearly differentiation on the bases of technology and service

More for More

More for same

More for low

Same for more

Same for same

Same for low

Low for more

Low for same

Low for low

Product

This is the first ‘P ‘ of marketing mix which relates to customer solution. Washing clothes is basic need of every human being. So speed laundries limited fulfills this need of customers very well and our new product coin laundry or self service laundry has made it easier to serve for the human being at the maximum level of satisfaction.

Marketing Strategies

We used the following strategies when we introduced coin laundry in the market:

Introduction Strategies

Increase in promotional budget Ensure easy and quick accessibility Decrease in price

Due to the above mentioned strategies more customers were coming to us and now our product is at Growth stage.

Growth Strategies

Constant investment Ensure easy and quick accessibility Increase in price Add new product features Add new market segments

Product Development Strategies

Levels of product

Core Level Our core level is washing clothes.

Basic Level Our basic level is Coin Laundry machines.

Expected Level Pressing is our expected level.

Augmented Level Air-Conditioned waiting rooms with televisions for our customers is augmented level.

Potential Level There is potential in the market for credit card coin laundry because now most business transactions are done through credit cards.

Product Hierarchy

Need family Washing clothes

Product family Manual operated machines and automatic laundry system. We selected automatic laundry system

Product class Electric laundry and steam laundry

Product form We picked Electric laundry system. It was of two types’ conventional laundry and coin laundry.

Product line We picked coin laundry. It was available in low and high capacity.

Product type: We selected high capacity.

Product Coin laundry with high capacity of washing clothes was our product.

Product combination Our coin laundry lies in Major services accompanying goods. Our major services are washing clothes and coin laundry is accompanying good.

Product Decisions

Product line We are offering washing, drying and cleaning, pressing, cleaning sensitive fabrics, blankets, carpets, shirtwaist, suits and steam pressing.

Product width

Our Product width is seven.

Line filling

Customers were demanding less time consuming washing facility and self service. So we introduced Coin Laundry.

Stretching

We have up-marketing stretching. We introduced very advanced version of laundry system which is coin laundry.

Featuring

We give calendars and watches to our old customers. We gave free key rings to our customers on the opening.

Brand Name Decisions

Brand name

Our brand name is Speed Laundries Limited which indicates our quick service to our customers.

Levels of Meaning

Attributes

Less time consuming is our attribute.

Benefits

We give psychological satisfaction to our customers in terms of cleanliness.

Values

Our customers enjoy physical and psychological values.

Culture

We are operating in Pakistani culture. We are giving the customers feeling that we provide them the best services in the market.

Personality

We are dominant leader in the market.

Users

Middle and high income class people are our customers.

Brand Management Strategies

Our brand is at preference stage. Our main aim of brand management is to come at the stage of brand loyalty.BRAND BUILDING TOOLS

o Public relationWe are maintaining good relations by providing good services to our customers.

o SponsorshipWe are also sponsoring ICC Champions Trophy and we will sponsor matches which will be played in Lahore.

o Factory visitWe are providing information and appreciating to visit our industries.

o Trade showsWhen we start the coin laundry first we organize trade show in hotel Sunfort situated at Liberty.

o Event marketingSpeed Coin Laundry is also celebrating event marketing on 14th August 2008.

o Societal marketingSpeed laundry has park in Model Town.

o Buzz marketingThe most popular celebrities Imran Khan was in our add.

Brand Development Strategies

We have used brand extension strategy. We are now operating with coin laundry.

Slogan

Try and be inspired.

Trade mark

®

Packaging

After washing and pressing we pack the clothes in attractive sheets.

INTERNAL MARKETING:There is good relationship between organization and employees. The management

is too appreciative to employees. HR department is too active.

Org.

employees customer

EXTERNAL MARKETING:Speed Laundry is also maintaining good relations with organization and customers. Because

“CUSTOMER IS THE KING OF THE SOCIETY.”INTER-ACTIVE MARKETING:

There is good relationship between customers and employees. HR department gives training to employees that how is to behave with customers.

Pricing

Setting Pricing Policies

I. Setting Price Objective

Profit is not the only objective. Target of the business is also to increase sale. Although our price is more than competitors but in the light of our less quality which our business provide to its customer is very reasonable. But on special events, target is to avail that opportunity so prices are increased in those days as demand is very high in those days.

II. Determining Demand

As the demand of our business is very fine in the market due to our service quality and also the in time service which we provide to our customers.

III. Estimating Cost

Cost is being kept in mind, and price is always being charged more than the cost.

Accounting

Accounting is taking services of an accounting firm. Prepare each month final account. So they have to be paid monthly.

Advertising

We distribute our broaches on regular basis in to all those areas where our branches are. And we also do our advertising on Local Cable Tv.

Insurance

As due to load shading and heavy machinery is applied so there is always danger of failure of working machines for which machinery has been insured. And the building has also been insured.

Revenue

While our source of revenue is washing and dry cleaning.

IV. Analyzing the competitors cost price Offers

When the prices are being set , the prices offerings of competitors are also reviewed. It is to make sure that prices should not be increased to such level that our business start losing customer. Although there are no direct competitors of our business all the competitors are indirect.

V. Selecting the Pricing Strategy

There are eighteen pricing strategies from which followings are used by our business.

Target Return Pricing

Usually we use this pricing strategy. Because it is made in the light of cost. We divide our total cost with our total number of customers. So we get that what our single customer cost us then we add a percentage amount on that cost and then charge the price.

Perceived Value Pricing

As in the celebration seasons such as EID and in December which is Wedding Season we use this pricing strategy.

Discount Pricing

In those areas where demand is less we use this technique to increase our sale and to make more customers.

Promotional Pricing

At the beginning of each new branch and coin laundry system this strategy is used so that our product be promoted in the market.

Product Bundling

This offer is for hotels, restaurants, banquet halls and etc. who give their orders in bulks. Geographical Pricing

It is area based pricing as we provide pick and drop service of laundry to organizations. So according to the distance from the branch, transportation cost is charged. It differ from area to area.

Place

It combines sellers and consumers. Its relative importance can be explain with this statement “It is the (P) where actually transactions take place”. We focuses on place we have capture one to one relation with the customers. As now a day’s scope is only in place because it has been ignored previously.

Channel Design

We have zero level channel design.

Channel Design Decision

1) Type of Distribution2) Size of Distribution

1. Type of Distribution

Our business has its own sales force which goes to hospitals, nurseries, hotels and restaurants and offices to collect the clothes for washing.

2. Size of Distribution

We do selective distribution. Channel Design

For the convenience of customers we have design our channel distribution on the following basis

1. Lot Size

Our Sales force pick up all type of fabric in lots from the selected customer.

Promotion

Promotion is the strongest P of the market. Promotion is the making cost which means we expose our product in front of customers. We can say that promotion is not the cost but investment.

Integrated Market Communication System

Tools of IMCS

a. Advertisingb. Sales Promotion

a. Advertising

Ad on cable TV, Brushers are our ways of Advertising. It is combination of 5 M’s

Mission Money Message Media Measurement

Mission Mission of our advertising is to inform the people.

Money

Money means how much money you are allocate for advertising. There are four methods of budgeting. We use following two methods

Percentage Sales Method

60% of marketing budget is spend on advertising.

Objective Task

What sense our message gives to customer? The sense of our message is time and quality.

Message Format

It can be diversified.

Abstract Vs Concrete Short Vs Long Individual Vs Episode

Add on Laundry is Short

Message Strategy

As there are three strategies

Emotional Appeal Psychological Appeal Functional/Physical Appeal

Our strategy is to make Functional Appeal.

Message Execution

Message execution style is Slice of Life.

Media

Indoor Outdoor Internet

Media choice is “Indoor” and “Internet”

Other two things are

Media Impact Cost

Media Impact

TV and Newspaper both are used.

Media Frequency

As TV media is very much used.

Media Vehicle

It is TV and Newspaper.

Measurement

Advertorial is used.

b. Sales Promotion

Short period incentive give to customer for sale. In it potential buyer is converted to actual buyer. It is especially helpful at two stages introduction and decline.

Sales Promotion Tools

Consumer Promotion Tools Trade Promotion Tools Business Promotion Tools

Business Promotion Tools

In it “Advertising Specially” is used such as key rings and calendar.

IMCS Steps

Identify Target Audience Familiarity Scale Never heard of Heard Only Know very little Know fair amount Know very well

Our business is at knowing fair amount.

Favorability Scale

Repulsive Unfavorable Indirect Favorable Highly favorable

Our business is favorable in market.

Determine Objective

AIETA Model AIDA Hierarchy of effect model Awareness Knowledge

Liking Performance Conviction Purchase

Communication Model

Objective of our business is Hierarchy of effect model.

Message Design

It is quality and time saving.

Select Channel

As there are two channels

Personal Non personal

Our business uses Non Personal Channel.

Estimating Budget

All the previous four methods.

Decide On Media Minute

Public Presentation Sales Promotion Public Relation Publicity Personnel Selling Direct Marketing

The media minute uses “Public Presentation”. It involves three steps

Perseveres Amplified Expressiveness Impersonality

All three steps are used.

People

After 2006 we have a compulsory lady receptionist at our all front offices. And minimum 5 employees will available all the time in the every branch of the laundry. At a time minimum two Supervisor also available.

Presentation

As our employees, it is compulsory to wear navy blue shirt, black pent with black shoe for men. And blue scarf for lady in well dressed.

Process

From booking to washing and packaging our employee help our customer if they needed.

5. Business Analysis

Costs

Machinery Requirement

Description No. Cost Per Unit in Rs. Total in Rs.Washing Machine 10 (per branch) 150000 1500000

Dry Clean Machine 7 (per branch) 100000 1000000

Total 2500000

Other requirements

Description No. Cost Per Unit in Rs. Total in Rs.Split Unit 1 40000 40000Telephone Sets 2 400 800Fire Extinguish 1 4000 4000Fan(56”) 4 1400 5600Exhaust Fan 1 500 500Water Cooler 1 8,500 8,500Other costs 40000 40000Total 459400

Total costs of infrastructure

Machinery Requirement 2500000 Other requirements 459400Cost of setting up internet café 100000Land and building requirement 100000Total estimated cost of project 3159400

Total investment available for projects

Owner’s equity 90000000Financing through partnership 50000000

6. Product development

In this step we actually developed the coin laundry.

7. Test Marketing

Alpha TestingBefore the beginning of coin laundry we tested it with in the organization and found very good results.We also use beta testing.

8. Commercialization

We commercialize coin laundry 14th August, 2008 at mall road after organizing an event at Pearl Continental on 14th August for our product. In our opening ceremony Imran Khan Former captain of Pakistan cricket team was our chief guest.

Product Life Cycle Our coin laundry is at the stage of growth.

Conclusion

Speed coin laundry has proven itself in the market. Its magnificent success can be seen by the large number of customers which are very happy with this new idea as it was the demand of the customers. Customers really appreciated its quick services as it is the best solution for the busy people of the city. Still yet no complain has been reported. As now we are running the most revenue generating laundry business in the market which shows its success.

BIBLIOGHRAPHY

Notes of Mrs. Shehla Sohaib Marketing Management by KOTTLER Florida Laundry Ltd Small and medium enterprise development authority Star laundry System