“ “EZ-CLEANR

””

Bodnar, JanaBodnar, Jana

Castrechini, Mariano G.Castrechini, Mariano G.

Durmusoglu, MehmetDurmusoglu, Mehmet

Groves, NatalieGroves, Natalie

Stamiris, TomStamiris, TomJuly 24, 2006EZ-LIFER

IntroductionIntroduction

EZ-LIFER

is a designer and manufacturer of home appliances

20 years experience in the market

Recent market research highlights environmental concerns– Energy & water cost of running a dishwasher– Negative impacts of dishwasher detergent on the environment

Survey results online at: http://pages.videtoron.com/ezclean /

Results of analysis gave birth to the:

EZ-CLEANR

Dishwasher

Situation AnalysisSituation Analysis Market SummaryMarket Summary

– Market size in Canada is approx Market size in Canada is approx 11M households11M households

– Homeowners account for Homeowners account for 8M8M

– 6M6M homeowners have dishwashers homeowners have dishwashers

Situation AnalysisSituation Analysis Market PotentialMarket Potential

– Canada is a mature and saturated market as related Canada is a mature and saturated market as related to kitchen appliancesto kitchen appliances

– Dishwasher sales seen as high potential growthDishwasher sales seen as high potential growth

– Retail volume sales of dishwashers is predicted to Retail volume sales of dishwashers is predicted to increase by increase by 13%13% by by 20082008

– Kitchens often take first priority when it comes to Kitchens often take first priority when it comes to household renovationshousehold renovations

– Functional improvements will be marginal, with a Functional improvements will be marginal, with a focus on efficiency, and noise reduction, operating focus on efficiency, and noise reduction, operating cost, and water/energy consumption cost, and water/energy consumption

Situation AnalysisSituation Analysis Demographic TrendsDemographic Trends

– Key trends affecting the sales of dishwashers: Key trends affecting the sales of dishwashers: – changing economic conditions, appliance changing economic conditions, appliance

replacement rates, housing starts, energy costs and replacement rates, housing starts, energy costs and efficiency, designs and styles (Eurostyling), efficiency, designs and styles (Eurostyling), convenience and time savingconvenience and time saving

Consumer BehaviorConsumer Behavior

– Dishwasher seen as ” kitchen jewelery “Dishwasher seen as ” kitchen jewelery “– 94% of retail sales are built-in models94% of retail sales are built-in models– Space saving designs and functional convenienceSpace saving designs and functional convenience

Situation AnalysisSituation Analysis

Competitive EnvironmentCompetitive Environment

– Price Competition and retail consolidationPrice Competition and retail consolidation– Retail-sponsored low rate financingRetail-sponsored low rate financing– Deferred payment plansDeferred payment plans

– EZ-CLEANR stands above the “me too” productsstands above the “me too” products

Situation AnalysisSituation Analysis TechnologyTechnology

– EZ-CLEANR uses patented “Cryogenic” uses patented “Cryogenic” technologytechnology

Dry ice pellets used as a cleaning mediumDry ice pellets used as a cleaning medium Safe on dishes Safe on dishes

– Economically and ecologically viableEconomically and ecologically viable No secondary wastes – eliminates detergent useNo secondary wastes – eliminates detergent use Saves on Water, Electricity, and TimeSaves on Water, Electricity, and Time

Situation AnalysisSituation Analysis

Legal & Political IssuesLegal & Political Issues– Water and Energy efficiencies are key on political Water and Energy efficiencies are key on political

agendasagendas Federal Gov’t Energy Star programmeFederal Gov’t Energy Star programme CSA driving the “30 Energy Efficiency Standards”CSA driving the “30 Energy Efficiency Standards” EnerGuide Label introduced in 1993EnerGuide Label introduced in 1993

– Effect on Dishwasher MarketEffect on Dishwasher Market 37% avg annual reduction in energy use 37% avg annual reduction in energy use

– EZ-CLEANR

will be 50% more energy efficient will be 50% more energy efficient

Overall Assessment of Overall Assessment of OpportunityOpportunity

Energy Efficient DishwashersEnergy Efficient Dishwashers– Lower energy/water consumptionLower energy/water consumption– Reduction in running time and noise levelsReduction in running time and noise levels– Elimination of secondary wastesElimination of secondary wastes

Favorable Economic ConditionsFavorable Economic Conditions– Low interest ratesLow interest rates– Stable employment – securityStable employment – security

Housing Market / Home ImprovementsHousing Market / Home Improvements– Strong Housing demandStrong Housing demand– Kitchen is focal point of renovationsKitchen is focal point of renovations

Objectives and Action Objectives and Action PlansPlans

Primary Target Market Primary Target Market – HomeownersHomeowners– Potential market is 8MPotential market is 8M

ObjectiveObjective– 5 – yr plan5 – yr plan

Capture 15% of marketCapture 15% of market 380,000 units 380,000 units

– Sales 132.5M $CDN Sales 132.5M $CDN – PBILT 34.5M $CDNPBILT 34.5M $CDN

27%

Margin

Objectives and Action Objectives and Action PlansPlans

ProductProduct

– EZ-CLEANR

falls within a Product- falls within a Product-Development StrategyDevelopment Strategy

– Customer SolutionCustomer Solution Addresses Consumer needs in terms ofAddresses Consumer needs in terms of

– Energy Conservation Energy Conservation – Product PerformanceProduct Performance

Objectives and Action Objectives and Action PlansPlans

PlacePlace

– Launch in Major Launch in Major Canadian CitiesCanadian Cities

Halifax, Montreal, Toronto Halifax, Montreal, Toronto and Vancouverand Vancouver

– Convenience to PurchaseConvenience to Purchase Available through major retailersAvailable through major retailers

Objectives and Action Objectives and Action PlansPlans

PricePrice

– Strategy is to penetrate and gain market Strategy is to penetrate and gain market shareshare

– Customer CostCustomer Cost Price in line with Marketing survey Price in line with Marketing survey Factors in $$ savings to consumer Factors in $$ savings to consumer ““Pays for itself”Pays for itself”

Objectives and Action Objectives and Action PlansPlans

Promotion Promotion

– Marketing communication mixMarketing communication mix Blend of above the line and below the line promotionsBlend of above the line and below the line promotions

– Communication to ConsumerCommunication to Consumer Advertising Advertising Sales PromotionSales Promotion Events Events Public Relations / PublicityPublic Relations / Publicity

Objectives and Action Objectives and Action PlansPlans

Comparing to CompetitorsComparing to Competitors

– Competitors designs have remained Competitors designs have remained unchangedunchanged

– No major differentiation existsNo major differentiation exists

– Pricing is not a deal-breakerPricing is not a deal-breaker

Product / PriceProduct / Price

EZ-CLEANR

699 $ CDNRetail Price

Predicted Market Unit Sales

500 000

520 000

540 000

560 000

580 000

600 000

620 000

640 000

660 000

2007 2008 2009 2010 2011

Year

Un

its

Predicted Market Unit Sales

FinancialFinancial

5-YR Plan Capture 15% Market

Unit Cost 275$CDNUnit Cost 275$CDNSales 132.5M $CDNSales 132.5M $CDNPBILT 34.5M $CDNPBILT 34.5M $CDN

18%

27% Margin

PromotionalPromotional

Launch in Major Canadian CitiesLaunch in Major Canadian Cities– Halifax, Montreal, Toronto and VancouverHalifax, Montreal, Toronto and Vancouver

Sequence of launch events will be Sequence of launch events will be identical in all marketsidentical in all markets

PromotionalPromotional

Update website with new information on the product

Magazine campaign

Write-up in the Gazette

01/07 02/07 03/07 04/07 05/07 06/07 07/07 08/07 09/07

2007 2007

Timeline – advertising campaignTimeline – advertising campaign

Poster campaign

Montreal national home show

SummarySummary

Because You Deserve It !

Thank You on Behalf of

EZ-CLEANR

EZ-LIFER