developing home laundry service
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WoodstockWoodstock
Developing the Home Laundry ServiceDeveloping the Home Laundry Service
Project WoodstockTeam Composition
Project WoodstockTeam Composition
Diversey Lever
Diversey Lever
HOProjects
HOProjects
HumanResources
HumanResources
MarketResearch
MarketResearch
Commercial/Information
Tech.
Commercial/Information
Tech.
Marketing(3)
Marketing(3)
DazzlerDazzlerRiverstoneRiverstone
LaundryConsultants
LaundryConsultants
DMADesign Agency
DMADesign Agency HTA DirectHTA Direct
CoordinationCoordinationProject
ManagementProject
Management
ExternalSpecialists
ExternalSpecialists
InternalCross Functional
Team
InternalCross Functional
Team
Project WoodstockProcess
Project WoodstockProcess
Benchmarking
• Consumer• Industry
Concept
Evaluation
Target
Consumer
Definition
Business
Opportunity
& Vision
Service Mix
DevelopmentRefine
Application
• Pilot• STM
PhasedRoll-out
Feb 99Feb 99 Jul 99Jul 99 Dec 99Dec 99 Jul 00Jul 00
LearnLearn LearnLearnDoDo
Project WoodstockProcess
Project WoodstockProcess
Benchmarking
• Consumer• Industry
Concept
Evaluation
Target
Consumer
Definition
Business
Opportunity
& Vision
Service Mix
DevelopmentRefine
Application
• Pilot• STM
Feb 99Feb 99 Jul 99Jul 99 Dec 99Dec 99 Jul 00Jul 00
LearnLearn LearnLearnDoDo
PhasedRoll-out
Laundry Care Market : Value ChainCore Universe : SEC A & B, > 4 Mln Pop Towns
Laundry Care Market : Value ChainCore Universe : SEC A & B, > 4 Mln Pop Towns
Inside Home Outside Home TotalMaid Product Ironing,
Laundry, etc.
Rs/Month 60 76 85 221
Ratio 0.8 1.0 1.1 2.9
Inside Home Outside Home TotalMaid Product Ironing,
Laundry, etc.
Rs/Month 60 76 85 221
Ratio 0.8 1.0 1.1 2.9
20 % spend over Rs 400 per month20 % spend over Rs 400 per month
4.6 Mln HH, Rs 1200 Cr Market4.6 Mln HH, Rs 1200 Cr Market
Laundry Care MarketKey Components : Overview
Laundry Care MarketKey Components : Overview
Inside HomeInside Home
Product 34%
Maid27%
Ironing27%
DhobiWash
6%
Dry Clg.5%
Outside HomeOutside HomeExpenditureExpenditure
ProductProduct Ironing 58%Office/Formal Wear
Ironing 58%Office/Formal Wear
Machine Wash56%
Machine Wash56%
Maid Wash 44%90% employ > 1 task
Maid Wash 44%90% employ > 1 task
Laundry/Dry Clg. 43%
Sarees/Shirts
Laundry/Dry Clg. 43%
Sarees/Shirts
Dhobi Wash 10%Linen/Sarees
Dhobi Wash 10%Linen/Sarees
Laundry Care MarketKey Components : Pros & Cons
Laundry Care MarketKey Components : Pros & Cons
Maid WashMaid Wash
Machine WashMachine Wash
IroningIroning
LaundryLaundry
ConvenientConvenient Cost OutlayFabric WearCost OutlayFabric Wear
Time, EffortSavingTime, EffortSaving
Poor QualityIrregularPoor QualityIrregular
Home ServiceHome Service UnhygienicUnhygienic
Good QualityGood Quality Costly Poor ServiceCostly Poor Service
Self WashSelf Wash
FlexibleEconomicFlexibleEconomic
LaboriousTime ConsumingLaboriousTime Consuming
Laundry Service IndustryOverview
Laundry Service IndustryOverview
• Largely an unorganised market with limited reach
• Customer interface through Dhobi (mainly Ironing) and Laundry Outlets (also other services)– Dhobis 10000
– Outlets 2000
• Work is outsourced to backend processors (excl. Ironing)– Manual 1700
– Mechanised 15
Domestic business 70%
• Very few offer total services or home service Processing conditions are basic, harsh and unhygienic
• Largely an unorganised market with limited reach
• Customer interface through Dhobi (mainly Ironing) and Laundry Outlets (also other services)– Dhobis 10000
– Outlets 2000
• Work is outsourced to backend processors (excl. Ironing)– Manual 1700
– Mechanised 15
Domestic business 70%
• Very few offer total services or home service Processing conditions are basic, harsh and unhygienic
Laundry Care MarketSummary
Laundry Care MarketSummary
• Top end metro HHs represent market size of Rs 1200 Cr : product merely one third of total value chain
• Inside home expenditure on Product and Maid (60% of total spend)
• Outside home service usership (75%), mainly Ironing
• Service basket comprises ‘valued’ garments - social, expensive, problems, heavy
• Strong opportunity for value addition in all interfaces
• Current service providers are unorganised and of poor quality
• Top end metro HHs represent market size of Rs 1200 Cr : product merely one third of total value chain
• Inside home expenditure on Product and Maid (60% of total spend)
• Outside home service usership (75%), mainly Ironing
• Service basket comprises ‘valued’ garments - social, expensive, problems, heavy
• Strong opportunity for value addition in all interfaces
• Current service providers are unorganised and of poor quality
Project WoodstockProcess
Project WoodstockProcess
Benchmarking
• Consumer• Industry
Concept
Evaluation
Target
Consumer
Definition
Business
Opportunity
& Vision
Service Mix
DevelopmentRefine
Application
• Pilot• STM
Feb 99Feb 99 Jul 99Jul 99 Dec 99Dec 99 Jul 00Jul 00
LearnLearn LearnLearnDoDo
PhasedRoll-out
Home Laundry ServiceWoodstock Concept
Home Laundry ServiceWoodstock Concept
To provide the Metro consumers with Superior quality Home Service of Total garment-care solutions
To provide the Metro consumers with Superior quality Home Service of Total garment-care solutions
• Door step service
• Superior cleaning
• Better presentation
• All in one service
• Unique and discontinuous
• Door step service
• Superior cleaning
• Better presentation
• All in one service
• Unique and discontinuous
Home Laundry ServiceConcept Reactions
Home Laundry ServiceConcept Reactions
• Detrimental to life of clothes
• Clothes misplaced or lost
• Loss of control or satisfaction Role as Homemaker?
• Sunk cost of Washing Machine
• Price will exceed budget
• Detrimental to life of clothes
• Clothes misplaced or lost
• Loss of control or satisfaction Role as Homemaker?
• Sunk cost of Washing Machine
• Price will exceed budget
HitsHits MissesMisses
Great if affordable and promises kept
Great if affordable and promises kept
Can’t give all my clothesCan’t give all my clothes
Convenience seekers
30% of SEC A, B
Convenience seekers
30% of SEC A, B
Home Laundry ServiceCore Target
Home Laundry ServiceCore Target
AttitudeAttitude DemographicsDemographics
Considershouse work astedious and
boring
Crunched fortime
Planned routine
Seeks moretime with
family
Conveniencedriven…
willing to use/pay more for
services
Metro basedAbove average
income
High usershipof durables/
machinesWorking
Need to save time without compromising resultsNeed to save time without compromising results
Project WoodstockProcess
Project WoodstockProcess
Benchmarking
• Consumer• Industry
Concept
Evaluation
Target
Consumer
Definition
Business
Opportunity
& Vision
Service Mix
DevelopmentRefine
Application
• Pilot• STM
Feb 99Feb 99 Jul 99Jul 99 Dec 99Dec 99 Jul 00Jul 00
LearnLearn LearnLearnDoDo
PhasedRoll-out
A to Z Garment Care
Serving 1 million HHs
Top 6 Cities
Turnover of Rs 500 Cr
Woodstock Vision : Redefining Home Garment CareWoodstock Vision : Redefining Home Garment Care
Home Laundry ServiceBusiness Vision & Opportunity
Home Laundry ServiceBusiness Vision & Opportunity
Micro test/Pilot to validate potentialMicro test/Pilot to validate potential
Customerfirst
Customerfirst
ExcellenceExcellence OwnershipOwnership
Project WoodstockProcess
Project WoodstockProcess
Benchmarking
• Consumer• Industry
Concept
Evaluation
Target
Consumer
Definition
Business
Opportunity
& Vision
Service Mix
DevelopmentRefine
Application
• Pilot• STM
Feb 99Feb 99 Jul 99Jul 99 Dec 99Dec 99 Jul 00Jul 00
LearnLearn LearnLearnDoDo
PhasedRoll-out
Brand Name Surf Laundry Service, ‘Hanger’ VisualisationBrand Name Surf Laundry Service, ‘Hanger’ Visualisation
Home Laundry ServiceMix Development
Home Laundry ServiceMix Development
Surf Laundry ServiceBrand Visualisation
Surf Laundry ServiceBrand Visualisation
Surf Laundry ServiceApplications
Surf Laundry ServiceApplications
Brand Name Surf Laundry Service, ‘Hanger’ Visualisation
Personality Caring Helpmate
Brand Name Surf Laundry Service, ‘Hanger’ Visualisation
Personality Caring Helpmate
Home Laundry ServiceMix Development
Home Laundry ServiceMix Development
Brand Name Surf Laundry Service, ‘Hanger’ Visualisation
Personality Caring Helpmate
Proposition Gift of Time
Brand Name Surf Laundry Service, ‘Hanger’ Visualisation
Personality Caring Helpmate
Proposition Gift of Time
Home Laundry ServiceMix Development
Home Laundry ServiceMix Development
Surf Laundry ServiceBrand Proposition
Surf Laundry ServiceBrand Proposition
Surf Laundry Service takes expert
care of all your garment care
needs… taking the load off your
hands as well as your mind giving
you all that time to do more for your
family
Surf Laundry Service takes expert
care of all your garment care
needs… taking the load off your
hands as well as your mind giving
you all that time to do more for your
family
Surf Laundry ServiceAcquisition Process
Surf Laundry ServiceAcquisition Process
Identified target consumer databases (100%)Identified target consumer databases (100%)
Introductory mailer to generate awareness (100%)Introductory mailer to generate awareness (100%)
Detailed service brochure for follow-up (100%) Detailed service brochure for follow-up (100%)
Call centre to fix appointments (50%)Call centre to fix appointments (50%)
Sign-up pitch by Direct Sales Agents (20%)Sign-up pitch by Direct Sales Agents (20%)
Free trial offer for 2 weeks (20%)Free trial offer for 2 weeks (20%)
Retained consumer base (10%)Retained consumer base (10%)
Surf Laundry ServiceAcquisition Package
Surf Laundry ServiceAcquisition Package
Brand Name Surf Laundry Service, ‘Hanger’ Visualisation
Personality Caring Helpmate
Proposition Gift of Time
Service Offer Superior Total Garment CareExcellent Customer Support
Brand Name Surf Laundry Service, ‘Hanger’ Visualisation
Personality Caring Helpmate
Proposition Gift of Time
Service Offer Superior Total Garment CareExcellent Customer Support
Home Laundry ServiceMix Development
Home Laundry ServiceMix Development
Surf Laundry ServiceService Offer
Surf Laundry ServiceService Offer
• Laundry, Dry Cleaning
• Specialist Solutions - Mending, Darning, Stain Removal and Delicates
• Quality, HygieneFinish
• Membership/ Promotional Schemes
• Laundry, Dry Cleaning
• Specialist Solutions - Mending, Darning, Stain Removal and Delicates
• Quality, HygieneFinish
• Membership/ Promotional Schemes
• Free Regular Home ServiceRegular (48 Hr), Express (24 Hr)
• Toll free customer Helpline
• 100% Money Back Guarantee
• Affordable Pricing, Monthly Collection
• Free Regular Home ServiceRegular (48 Hr), Express (24 Hr)
• Toll free customer Helpline
• 100% Money Back Guarantee
• Affordable Pricing, Monthly Collection
Surf Laundry ServiceValue Addition
Surf Laundry ServiceValue Addition
• Controlled process
• Fully optimised
• Customised wash
• Soft water
• Stain removal
• Quality finishing
• Controlled process
• Fully optimised
• Customised wash
• Soft water
• Stain removal
• Quality finishing
• Cleaning expertise
• Hygienic
• Professional fabric care
• Automated process
• ‘Genuine’ dry cleaning
• Branding & Scale
• Cleaning expertise
• Hygienic
• Professional fabric care
• Automated process
• ‘Genuine’ dry cleaning
• Branding & Scale
Vs HomeVs Home Vs IndustryVs Industry
Brand Name Surf Laundry Service, ‘Hanger’ Visualisation
Personality Caring Helpmate
Proposition Gift of Time
Service Offer Superior Total Garment CareExcellent Customer Support
Business Process Franchised operations
Brand Name Surf Laundry Service, ‘Hanger’ Visualisation
Personality Caring Helpmate
Proposition Gift of Time
Service Offer Superior Total Garment CareExcellent Customer Support
Business Process Franchised operations
Home Laundry ServiceMix Development
Home Laundry ServiceMix Development
Surf Laundry ServiceOperation Flow
Surf Laundry ServiceOperation Flow
Call Centre
DCCS Central Software
Call Centre
DCCS Central Software
Laundry DeliveryLaundry Delivery
Morn./Even. SchedulesMorn./Even. Schedules
Laundry PickupLaundry Pickup
Hung & FoldedHung & Folded Laundry ReceiptLaundry Receipt
Garment Sorting/IDGarment Sorting/ID
Pre-treatmentPre-treatmentAutomated ProcessingAutomated Processing
Finishing & Re-aggregating
Finishing & Re-aggregating
Brand Name Surf Laundry Service, ‘Hanger’ Visualisation
Personality Caring Helpmate
Proposition Gift of Time
Service Offer Superior Total Garment CareExcellent Customer Support
Business Process Franchised operations
Pricing Premium Market Rates (Shirt = Rs 10)
Brand Name Surf Laundry Service, ‘Hanger’ Visualisation
Personality Caring Helpmate
Proposition Gift of Time
Service Offer Superior Total Garment CareExcellent Customer Support
Business Process Franchised operations
Pricing Premium Market Rates (Shirt = Rs 10)
Home Laundry ServiceMix Development
Home Laundry ServiceMix Development
Brand Name Surf Laundry Service, ‘Hanger’ Visualisation
Personality Caring Helpmate
Proposition Gift of Time
Service Offer Superior Total Garment CareExcellent Customer Support
Business Process Franchised operations
Pricing Premium Market Rates (Shirt = Rs 10)
Viability 25% ROI (Franchisee)
Brand Name Surf Laundry Service, ‘Hanger’ Visualisation
Personality Caring Helpmate
Proposition Gift of Time
Service Offer Superior Total Garment CareExcellent Customer Support
Business Process Franchised operations
Pricing Premium Market Rates (Shirt = Rs 10)
Viability 25% ROI (Franchisee)
Home Laundry ServiceMix Development
Home Laundry ServiceMix Development
Customer ProfileCustomer Profile
HH Mix Revenue Mix
% Mix% Mix
Rs 540
Rs 3001/Week
2/Week
3/WeekRs 780
Cost Outflow AnalysisCost Outflow Analysis
Wages52%
Running/MT17%
ROI11%
Depn10%
Call Centre9%
Others1%
Plant Wages/Salaries
25%
Depn & ROI22%
Utilities16%
Others17%
Consumables15%
Rental - 5000 Sq Ft
5% Packaging20%
Depn & ROI40%
Utilities10%
Plant Wages/Salaries
14%
Consumables14%
Others2%
Pick-up and Delivery CostsPick-up and Delivery Costs
Cost per unit = Rs 3.5Cost per contact = Rs 17
Cost per unit = Rs 3.5Cost per contact = Rs 17
Wet Cleaning CostsWet Cleaning Costs
Cost per unit = Rs 11.7Cost per unit = Rs 11.7
Dry Cleaning CostsDry Cleaning Costs
Cost per unit = Rs 24Cost per unit = Rs 24
Revenue Inflow AnalysisRevenue Inflow AnalysisTotal RevenueTotal Revenue
Dry Cleaning14%
Special Services
6%
Wet Cleaning80%
Dry Cleaning14%
Special Services
6%
Wet Cleaning80%
Revenue per household per month = Rs 380Revenue per household per month = Rs 380
Brand Name Surf Laundry Service, ‘Hanger’ Visualisation
Personality Caring Helpmate
Proposition Gift of Time
Service Offer Superior Total Garment CareExcellent Customer Support
Business Process Franchised operations
Pricing Premium Market Rates (Shirt = Rs 10)
Viability 25% ROI (Franchisee)
Brand Name Surf Laundry Service, ‘Hanger’ Visualisation
Personality Caring Helpmate
Proposition Gift of Time
Service Offer Superior Total Garment CareExcellent Customer Support
Business Process Franchised operations
Pricing Premium Market Rates (Shirt = Rs 10)
Viability 25% ROI (Franchisee)
Home Laundry ServiceMix Development
Home Laundry ServiceMix Development
Real life mix test/STM to refine mix : MQ ‘00Real life mix test/STM to refine mix : MQ ‘00
Project WoodstockProcess
Project WoodstockProcess
Benchmarking
• Consumer• Industry
Concept
Evaluation
Target
Consumer
Definition
Business
Opportunity
& Vision
Service Mix
DevelopmentRefine
Application
• Pilot• STM
Feb 99Feb 99 Jul 99Jul 99 Dec 99Dec 99 Jul 00Jul 00
LearnLearn LearnLearnDoDo
PhasedRoll-out
Surf Laundry ServiceMini Pilot Plan
Surf Laundry ServiceMini Pilot Plan
Market operation commences : Jan 2000Market operation commences : Jan 2000
Consumer Base
100 HH/2 localities
Branded Service
Consumer Base
100 HH/2 localities
Branded Service
Sales & Service Team
Contracted crew = 8
£ 7000
Laundry Unit
3 P, Full range
£ 5000
Call Centre
Contracted crew = 3
£ 7000
Dry Cleaning Unit
New Machine ex-US
£ 17000
Training : 5 sessions/headTraining : 5 sessions/head
Monthly feedback (MR)Monthly feedback (MR)
I. T. : DCCS ( Riverstone)I. T. : DCCS ( Riverstone)Garment Tagging (US)Garment Tagging (US)
Project WoodstockProcess
Project WoodstockProcess
Benchmarking
• Consumer• Industry
Concept
Evaluation
Target
Consumer
Definition
Business
Opportunity
& Vision
Service Mix
DevelopmentRefine
Application
• Pilot• STM
Feb 99Feb 99 Jul 99Jul 99 Dec 99Dec 99 Jul 00Jul 00
LearnLearn LearnLearnDoDo
PhasedRoll-out
Business OverviewPrice Sensitivity
Business OverviewPrice Sensitivity
Avg. Price (Rs/Unit) 14 16 18
NPS (Rs Cr) 250 284 318
TRAC (Rs Cr) (29) – 28
RGM (%) – 11 21
TRAC (%) (10.4) – 9
Avg. Price (Rs/Unit) 14 16 18
NPS (Rs Cr) 250 284 318
TRAC (Rs Cr) (29) – 28
RGM (%) – 11 21
TRAC (%) (10.4) – 9
Price (Rs) TRAC (Rs Cr)
+1 +14
Price (Rs) TRAC (Rs Cr)
+1 +14
Business OverviewBusiness Overview
Household Base (Mln) 0.5 1.0
Turnover (Rs Cr) 250 500
Investment (Rs Cr) 156 312
No. of Units 100 200
Franchisee Manpower 14500 29000
Household Base (Mln) 0.5 1.0
Turnover (Rs Cr) 250 500
Investment (Rs Cr) 156 312
No. of Units 100 200
Franchisee Manpower 14500 29000
Mini Pilot Mix Dev.Mini Pilot Mix Dev.
Surf Laundry ServiceNext Steps
Surf Laundry ServiceNext Steps
Mini PilotMini Pilot
Micro TestMicro Test
Business Model & FinancialsBusiness Model & Financials
Pilot Franchisee Selection & CommissioningPilot Franchisee Selection & Commissioning
Bombay Pilot LaunchBombay Pilot Launch
Organisational StructureOrganisational Structure
NovNov DecDec JanJan FebFeb MarMar AprApr MayMay JunJun JulyJuly19991999 20002000
Surf Laundry ServicePower of a Million
Surf Laundry ServicePower of a Million
Cash rich, time poor
Captive franchise, high life time value
Extension into other home services
Direct individual consumer understanding
Cash rich, time poor
Captive franchise, high life time value
Extension into other home services
Direct individual consumer understanding
• Customer Service
– Culture
– Systems
• Home Servicing Logistics
• Garment Tracking
• Optimising Cost/Quality
• Technical Competency
• Franchising
• Customer Service
– Culture
– Systems
• Home Servicing Logistics
• Garment Tracking
• Optimising Cost/Quality
• Technical Competency
• Franchising
Surf Laundry ServiceKey Success Factors
Surf Laundry ServiceKey Success Factors
Surf Laundry ServiceValue Addition
Surf Laundry ServiceValue Addition
Controlled process
Fully optimised
Customised wash
Soft water
Stain removal
Qualityfinishing
Controlled process
Fully optimised
Customised wash
Soft water
Stain removal
Qualityfinishing
Cleaning expertise
Hygienic
Professional fabric care
Automated process
‘Genuine’ dry cleaning
Branding&
Scale
Cleaning expertise
Hygienic
Professional fabric care
Automated process
‘Genuine’ dry cleaning
Branding&
Scale
Vs HomeVs Home Vs IndustryVs Industry
Surf Laundry ServiceValue Addition
Surf Laundry ServiceValue Addition
Controlled process
Fully optimised
Customised wash
Soft water
Stain removal
Qualityfinishing
Controlled process
Fully optimised
Customised wash
Soft water
Stain removal
Qualityfinishing
Cleaning expertise
Hygienic
Professional fabric care
Automated process
‘Genuine’ dry cleaning
Branding & Scale
Cleaning expertise
Hygienic
Professional fabric care
Automated process
‘Genuine’ dry cleaning
Branding & Scale
Home Vs IndustryHome Vs Industry
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