Patents
Laundry Toaster believes in the merits of a strong and effective patent system supporting protecting and stimulating innovation, economic growth, the transfer of technologies and the introduction of high-tech products. It is through effective patenting of our technologies including our mechanicals, that we obtain an incentive to invest in these technologies the reward of sustained product improvement over time, and maintenance of a strong motivated work force.
2.6. Discuss any opportunities for the expansion of the product line or the development of related product or service.
Our company also will introduce free service and warranty for 2 years including repair the Laundry Toaster or any damage. Other than that, we also might develop another mini-Laundry Toaster. So that, all the people in the world from all the societies have the power to obtain our product.
TECHNOLOGY DESCRIPTION
There are many key components of the product and also in the product realization process. The key components in realization of the product are the items that needed in the order achieve the success of the product. Several keys are found which are;
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Teams/Teamwork. The ability to work with diverse, multi-discipline team members to successfully reach a goal or objective.
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Communication. The ability to clearly and logically communicate ideas, information, and data orally and in written form to others in a way that engages the intended audience and addresses different learning styles. It has been estimated that in verbal communication, the information is communicated in four ways these surprising relative percentages:
Content 7%
Tone 33%
Body Language 55%
Other 5%
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Design for Manufacture. Design to maximize ease of manufacture by simplifying the design through part-count reduction, developing modular designs, minimizing part variation, designing a part to be multi-functional, etc.
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CAD Systems. Computer aided drafting boards that allow a user to define a new product by a) creating images and b) assigning geometry, mass, kinematics, material, and other properties to the product.
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Professional Ethics. The ability to conform to standards of conduct determined by one's profession, in alignment with team and corporate standards.
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Creative Thinking. The process of generating ideas, which frequently emphasizes:
- making and expressing meaningful new connections,
- thinking of many new and unusual possibilities, and
- extending and elaborating on alternatives.
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Design for Reliability. Designing the product so it works the first time, every time for the life of the product (decreasing cycle failure).
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Design for Safety. Design so that the manufacture of and the use or abuse of the product minimize the possibility of injuries which could lead to product liability problems.
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Reliability. A sub-set of statistical engineering methodology which predicts performance of a product over its intended life cycle and understanding of the effects of various failure modes on system performance.
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Design for Assembly. Making the product easier to assemble, thereby reducing cycle-time during production.
We have covered all these keys in order to make our product come true and as for the product, the key features are;
- Many compartment for any specification compartment (shirt, pants, etc..).
- Uniquely design for easy use.
- Comes in many colors.
- Malaysian standard.
- Single door and double door available.
- Tested and meet s the requirement of SIRIM and ISO 10006 in quality management system.
- Stainless steel hanging rod.
As for the dryer inside the cupboard, we found that the key features and benefit are;
- Vented auto programs.
- Simply choose the desired program and the cabinet will optimise the energy consumption and switch off automatically when the contents are dry.
- Warm towels programs.
- This feature enables you to heat up your towels or robe - perfect for getting up in the morning or stepping out of the shower
- LED display.
- Dry Clothes Gently
- The drying cabinet is particularly kind to sensitive fabrics like silk lingerie and cashmere sweaters, drying them gently to perfection with no shrinkage or bobbling. For all those traditional natural fibres and sensitive new materials which can’t be tumble dried, it’s the perfect solution - now there’s no need for that unsightly clothes airer.
- Get organized.
- The drying cabinet helps you organise your home. There are racks for drying and storing shoes and boots, clothes and linen and other accessories like gloves and hats - all those bits and pieces that otherwise get spread around your house and sometimes seem to go missing!
Intellectual property protection at Laundry Toaster.
Our product has been registered trademark/TM Trademark of Laundry Toaster Properties, LLC or its related companies. © 2011. All rights reserved. Laundry Toaster believes that the protection of intellectual property is essential to rewarding innovation and promoting technology. Laundry Toaster is committed to raising awareness of innovation in technology, management and IP protection; to providing economic incentive and safeguard mechanisms; and to helping increase local economic growth. We believe that the best way to address these needs is for companies to work with local governments to develop approaches that benefit all involved parties, while continuing to uphold the value of IP in all parts of the world. In order to ensure a sustainable system that balances the societal goals of both the innovator and the public, it is important for Laundry Toaster to work together with other key stakeholders on the following intellectual property issues. These issues generally apply across all our businesses, although in some instances, they are particularly applicable to one sector, such as mechanical or management devices:
Patents
Laundry Toaster believes in the merits of a strong and effective patent system supporting protecting and stimulating innovation, economic growth, the transfer of technologies and the introduction of high-tech products. It is through effective patenting of our technologies including our mechanicals, that we obtain an incentive to invest in these technologies the reward of sustained product improvement over time, and maintenance of a strong an motivated work force.
Research and development.
The Laundry toaster is designed to meet the needs of R&D professionals. Our drying equipment is used for applications ranging from clothing drying development for scale-up to all in one product. Models are available in manual and automatic configurations.
The Laundry Toaster is an R&D and process development normal-dryer that provides unmatched the normal dryer, reliability and unique ease-of-use features. The Laundry Toaster features RTD-controlled shelf temperature accuracy of +/- 0.5°C or better and vacuum control within 0.1% of set-point. Its robust 5.5 hp cascade refrigeration system enables shelf pull down from ambient to –40°C in less than 25 minutes, and the ultra-reliable scroll compressors feature just 3 moving parts.
In the future technology, we intend to make a more manageable cabinet with whole things has their place to dry in this all in one dryer. For the new research, we have made up socks dryer that will be installed inside the cupboard. Once, it is a mobile socks dryer but we will made a place to put it inside the cupboard and it can be plug in or not if necessary because someone might want to use only when they want to dry their socks. This socks dryer is not much bigger than can of coke but it can dry any socks in few minutes. Drying socks stand and vibrate. Inside is mechanism with fan just like in hair dryer, but stronger, and making bigger and warm stream of air. Perforation helps to dry parts of socks which are pulled on Dryer. Most of air go through main ventilators, dry socks and put them up.
MARKET ANALYSIS AND STRATEGIES
4.1 Customers
- Discuss who the customers for the product or service are or will be. Potential customers need to be classified by relatively homogeneous groups having common, identifiable characteristics (e.g., by major market segment).
Answer:
There are approximately 150,000 males and 165,000 females in Kuala Lumpur, totaling 315,000 people. Of those 315,000 people, 186,000 are between the ages of 18 and 54 years of age. Seventy-six percent of the 315, 000 people have a household income of more than RM15,000. Our target market is men and women between the ages of 18 and 54 with a household income of RM15,000 or more.
- Show who and where the major purchasers for the product or service are in the market segment. Include national regions and foreign countries, as appropriate.
Answer
- Near the business thoroughfare is a new residential subdivision under development, where houses are priced at RM100,000 and above. Also in the area is the Shah Alam, and Klang, all which serve our potential customers. Our customers are employed men and women, between the ages of 18 to 54 years old with a household medium income of RM32,000 and above.
- Indicate whether customers are easily reached and receptive, how customers buy (wholesale, through manufacturers’ representative, etc.).
Answer
- We will use flyers and other literature to act as our representative. Here are some of our marketing programs and strategies:
Designing good ad copy to reach our customers.
- Choose the proper publication
- Have a goal for our advertisement
- Involve the audience
- Inform the buyer
- Headline and illustrations grab attention
- Give them something
- Always be specific
- Make our offer a good one
- Be creative in our media choices—such as unusual avenues like—fax newsletters, mall kiosks, fax-on-demand, publicity stunts, online marketing, anything unusual to reach our target market
- Small classified ads
- Track our results
- Keep all our customers/prospects in a database and stay in touch with them regularly
- Gradually increase the size of our ad and tract the results
- Advertise regularly and consistently
- Evaluate our efforts
Customer loyalty is much more important to us than customer satisfaction. We will serve our customers so well they will brag about us to others. This will keep them loyal, and also provide a continual flow of customers. We will maintain our customers' happiness by using our Self-Evaluation Program.
Self-Evaluation Program asks the following questions:
- Are our products the best they can be?
- Is the appearance of our cashiers, managers, business surroundings, and appearance of our store professional?
- Can we clearly describe our business in 25 words or less? Can our customers describe our business in 25 words or less?
- Do our customers know about all of our products and services?
- Do we have a well-developed marketing plan that we follow on a consistent basis?
- What if our marketing plans work? Will we be able to handle the increased volume of sales without harming our customers or the quality of our work product?
- Do we treat others with honesty and respect at all times?
We will try out our promotion on a small portion of our target audience before we roll out the promotion to the rest of the target market. Our tests will include variation on our basic offer, on the text or composition of our message, and on our presentation. The benefits from testing will provide to us early feedback on the response rates and margins used in our break-even calculations for that particular promotion. Testing will also help us roll out successful ideas and omit the not-so-successful ones.
With our promotions we will compare results, analyze, track responses, and measure profitability to insure our promotions are profitable.
Our advertising budget will be equal to 2 or 3 percent of our projected gross sales which averages out to be RM5,627 or RM457 a month after initial start-up. The budget will be based on the cost method which theorizes that an advertiser can't afford to spend more than he or she has. We will increase this amount for our grand opening.
We have taken the following steps to insure our ringgit will be wisely spent on advertising.
- Established our target market by asking ourselves who our customers are and therefore whom we want to reach with our advertising.
- Setting a rough budget for broadcast advertising.
- Contacted sales managers at TV and radio stations in our area and arrange to have a salesperson visit us.
- Talked to other business people in our area about their experiences with broadcast advertising.
- Asked about the "audience delivery" of the available spots.
- Inquired about the production of our commercial.
We then compared various proposals and looked at the cost per thousands and negotiated the most attractive deal based on which outlet offers the most cost-effective way of reaching our audience. We will also buy time well in advance to lower the cost.
Our direct mail campaign will begin by getting our name on as many mailing lists as possible. We will then take note of our reaction to each piece of mail we receive and save the ones that communicate most effectively, noticing the colors, key words, and types of inserts that can be adapted to our own mailer. To get the readers involved we will include stickers that say Yes or No to be pasted on the order form. We will continue to build our direct mailing program with the resources from the Direct Marketing Association (DMA).
We plan to target our advertising to focus as narrowly as possible to the media that will reach our customers. Our customers' location, age, income, interests, and other information will be used to guide us to the right media.
Our printed ads will attract attention through a truly arresting headline and visual element. It will appeal to the reader's self-interest or announce news. It will communicate our company's unique advantage and it will prove our advantage over our competitor. Finally, it will motivate readers to take action. Our printed ads will not be a "hard sell" but it will be an all-out attempt to attract, communicate with, and motivate the reader. All of our ads will answer the customer's number one question: "What is in it for me?"
Our radio and television ads will deliver our message to more customers than any other type of ad campaign. We have a clear understanding of our market so the money spent on broadcast advertising isn't wasted.
For television ads, we will stick to 30-second spots which are standard in the industry. We understand that generally rates vary widely during the first quarter of the year, and sometimes during the third quarter or late in the fourth quarter, which are traditionally slow seasons for many businesses. We will try to avoid paying full rates during the rest of the year or during popular shows or prime time. We will also stretch our dollar by bartering our products for air time.
Our other methods of marketing will include direct mail, encompassing a wide variety of marketing materials, including brochures, catalogs, postcards, newsletters, and sales letters.
Point-of-Purchase (POP) advertising appears in various forms inside our retail store. It is designed to influence the buying behavior of our customers. POP advertising may take many forms in our store, each bearing a sales message. Here are a few examples:
- Counter cards and displays
- Window displays
- Floor stands and cutouts
- Animated displays run by electricity
- Pennants, banners, plaques, streamers
4.2 Market Size and Trends
- Show for three years the size of the current total market and the share you will have, by market segment, and/or region, and/or country for the product or service you will offer, in units, ringgit, and potential profitability.
Answer
- Wardrobe Market Size 2012-2014 – Current Prices
Malaysia Wardrobe market is currently valued at RM10 million in 2014 at manufacturers selling prices, reflecting a market which is now entering a tentative growth phase following difficult trading conditions during the last 2 years.
In line with the majority of the domestic wardrobe market sales experienced a relatively lacklustre 2012, followed by healthy growth throughout most of the key product sectors to 2013, with annual rises of between 5% vident.
An accelerated pattern of growth is forecast for the industry from mid 2012 onwards, with the market reaching a value of just under RM10 million by 2014, reflecting an anticipated growth rate of around 13% between 2012 and 2014.
- Describe also the potential annual growth for at least three years of total market for your product or service for each major customer group, region or country, as appropriate.
Answer
- Activity in terms of market and product development over the next 3 years is forecast to generate additional revenue of around RM5 million for the wardrobe furniture industry. More than 5% of the growth anticipated in the market during the next 3 years is likely to be derived from existing products sold to existing target markets, the sector is also likely to benefit from some activity both in terms of new products and new markets.
Our forecasts suggest that growth of around 8% is likely to be derived from marketing existing products to the existing marketplace between now and 2014, with this sector mature and many products within regarded as a ‘cash cow’.
However, the wardrobe market benefits from an inherent strength in terms of new product development, particularly from the Malaysia manufacturing sector. The addition of new product features and benefits, coupled with the development of new products targeted at existing markets is forecast to contribute around 2.5% of growth to the market over the next 3 years. Whilst this may seem relatively minimal, the scope for growth in these sectors is generally considered much greater than those products which are reaching the end of their lifecycle.
The targeting of new markets and the segmentation of existing markets, often referred to as ‘market development’, is also expected to offer some growth opportunities for wardrobe furniture manufacturers in the medium to longer term. This activity is most likely to be undertaken by Malaysia manufacturers in particular as they seek to identify niche targets which offer value growth opportunities.
Diversification is generally the most risky strategic option available to manufacturers and is therefore often not regarded as feasible, particularly in lesser profitable markets. However, the size and scope of operation of some of the larger manufacturers active in the wardrobe furniture market means that there is likely to be an element of this activity in the medium to longer term. New products developed for new markets within the wardrobe furniture industry are forecast to generate growth of around 1% over the next 3 years, reflecting a value of around RM1 million.
Whilst market penetration is generally perceived as the least risky method of generating additional sales in the garden products market, a disproportionate amount of R&D and marketing budget is devoted to product development. Sources indicate that there are a number of key market opportunities relating to product development which should offer value added opportunities as well as increasing volume demand.
- Discuss the major factors affecting the market growth (e.g. industry trends, socio-economic trends, government policy, and population shifts).
Answer
- There are a large number of macro market issues and trends which directly or indirectly influence the Malaysia Wardrobe Furniture market. These issues typically relate to political, legal, economic, environmental, social and technological factors. A brief overview of some of these key issues which are currently impacting the market at present and those which may stimulate or dampen market growth in the future.
POLITICAL
• Weak Incumbent Gvt.
• Possibility of higher taxes in2012
• Focus on ‘family’ unit
• Immigration Policy Reducing Lower Skilled Labour Force
LEGAL
• National Minimum Wage
• Employee Rights
• Health & Safety
• Manufacturing Obligations
• Building Regulations
ECONOMIC
• Legacy of Recession
• Slow Recovery
• High Unemployment
• Low Confidence
• Lack of Finance
• Rising Inflation
• Income Tax May Rise
• Property Mkt Growth
• Strength of Sterling / Euro
• Less Consumer Credit
ENVIRONMENT
• Focus on Climate Change
• Env Friendly Products
• Ethical Trading Practices
• Carbon Taxes
• Recycling Of Old Bedroom Furniture
• Resistance To Large Carbon Footprint Imports
SOCIAL
• Ageing Population
• Shift toward saving as consumers deleverage
• Rising Population
• Wage Aspirations & Earnings
• Family Unit Trends
• More 1-2 Person Households
• Growth in Flats
• Design Trends
TECHNOLOGICAL
• Use of New Technology – LCD, MP3, LEDs etc
• Enabling Occasional / Ad- Hoc Home Working.
• Impacting on Social Trends
• Drives New Design Trends
• Increased Awareness of Products Through Internet
• Use of Web as a Channel
4.3 Competition and Competitive Edges
- Make a realistic assessment of the strengths and weaknesses of competitors.
Answer
- There are our strengths and weaknesses which we should compare to our customer like IKEA, LORENZO, CAVENZI and etc.
- Compare competing and substitute products or services on the basis of market share, quality, price, performance, delivery, timing, service warranties, and other pertinent features.
Answer
Our product is highly in a good quality because in manufacturing processes, it involves highly skilled engineers and operators. They are capable to develop the product based on their experiences and knowledge.
This product is not too expensive to be bought and the buyers not only from first class customers but to all types of customers such as students, clerk, and etc.
Product delivery services to customers will be provided by our company. The delivery processes will be operated right after the product purchases. The customers satisfying are our main concern in these delivering services.
The manufacturing progress of our product is highly efficient. So that the timing of the production can be reduced and the production process will run smoothly. As a result, the inventory and work in progress is also reduced and increase our performance and quality of the product. Other than that, the holding cost will reduced and maintain our profit.
- Compare the fundamental value that is added or created by your product or service, in terms of economic benefits to the customer and to your competitors.
Answer
- The fundamental value in terms of economic benefits to the customers by this product is reducing the cost of living. This is because by using our product the electrical bills for other electrical appliances such as dryer machine and iron can be reduced. The capacity of clothes that can be placed in this wardrobe is huge compared to dryer machine that only fit to a few clothes. Thus, it need frequent uses of this dryer machine and raise the electrical bills.
d) Current advantages and disadvantages
For this products, sometimes customers are already have their own wardrobe and do not want to get the other one, so they might want to have only a normal dryer. This is because they do not want to expense more for something that they are already had. As in this country, the hard rainy season comes only at the end of the year even though throughout the year, this country has wet and dry seasons so the customers in this country does not really need a dryer. This is because during the year, dry season is longer than the wet season. For some customer, they really do not need dryer because they already have a washing machine that almost dried their clothes, then if they hang their clothes inside their house, it might only takes a night to dried them up because for some are they have their own technique to dry clothes such as putting their clothes in front of the fan at a time.
4.4 Estimated Market Share and Sales
a)
4.5. Marketing Strategy
a) Overall marketing strategy
- Our target markets are for people who have busy life such as workaholic person and all housewives around the world. Housewives and workaholic people consist of an adult. Since the adult demographic is so large, it is also very lucrative. There are countless products targeting this demographic, from soda manufacturers to clothing designers to hair product companies. This segment can also consist of recruiters, which can be for military service or other jobs. Companies who already spend millions of dollars on marketing to this group are regularly looking for newer, more creative ways to reach this market to reinforce their brand and sell products.
b) Pricing
- To simplify billing to clients, the Laundry Toaster will work on a fixed pricing structure. Laundry Toaster will determine the standard pricing structure for each deliverable based on fix major product market. This will be expressed to the client as a per-deliverable fixed price in a quote. Clients can determine which deliverables they would like to purchase. Pricing structure will be based on the structure and the heat exchanger of the cupboard also the material and compartment inside the cupboard. If less compartment and using cheap material, it will likely take cheaper; however, the price of the deliverable to the client will not change.
In time, Laundry Toaster may consider a cash-and-equity (down payment) arrangement, or potentially all equity for specific products. Before we can begin with this stage of pricing, we will need more experienced finance and accounting skills to determine proper equity stakes that should be requested, etc. Additionally, Laundry Toaster will offer cost-effective Web-hosting services that will provide ongoing revenue streams. It is anticipated that most clients will sign-up for our one-year contracts requiring minimal accounting. Compared to the other drying product plus their cupboard, we can make a conclusion that our all-in-one product are more cheap and affordable.
c) Distribution strategies
- Our initial focus will be in the peninsular Malaysia. The peninsular Malaysia Area was recently rated #3 in Dun & Bradstreet's Malaysia list of the best metropolitan areas for small business. Once we secure our first client successes, we will expand to other regions where we already have a consulting presence that is in Sabah and Sarawak. Our locations and focus will expand as we add new products to our talent pool. Reaching senior marketing executives is typically done through a variety of means. Since we have limited resources and need to manage our finances very effectively, we will focus on two: advertising and networking. The advertising will primarily be online via search engine ads so we can see the results within days instead of not knowing whether a print ad has any effect. We have identified 4 trade shows and 3 conferences that these executives typically attend over the course of a year. Part of our marketing plan is to attend these events to network with these potential buyers. We also will submit responses to calls for papers to be speakers at some of the events when possible.
d) Service and warranty
- Warranty on instruments, heating devices and accessories are one year on parts and labor at our cost. Consumable items such as glassware, needles and heat exchanger are not included. Warranty applies only to the original purchaser. Warranty cards should be filled out and sent in immediately after receipt of goods.
Freight charges to area in peninsular Malaysia for warranty work performed in our repair department are the responsibility of the customer. Return freight charges will be paid by our company for items repaired under warranty. Our company reserves the right to choose all freight and shipping carriers. For warranty work performed in the field, parts will be sent at no charge.
A return authorization number is required for all merchandise returns. Returns must be made within 30 (thirty) days of receipt of goods. If a return beyond this period is approved, there will be a restocking fee, which will be determined by one of our sales representatives. Packing should be carefully done. Original shipping cartons should be used whenever possible. All returns must be received undamaged and in new condition. Used glassware, or other consumable are not returnable.
All claims for shortage, incorrect items or damaged items must be made within 30 (thirty) days after receipt of shipment. We will attempt to correct problems immediately, usually by exchanging or replacing items. All incorrect or damaged items must be returned for credit. Damaged cartons should be kept for possible inspection.
Under this Limited Warranty, Laundry Toaster reserves the right to inspect product to determine validity of buyer’s claim in its sole discretion, shall have the option of:
Repair shall not extend the warranty period listed for the product. However, parts installed during Laundry Toaster warranty repair are warranted for 90 days from date of repair invoice.
Laundry Toaster shall honor the original manufacturer warranty for resale products. However, if the product is not under warranty, the buyer is responsible for all repair costs charged by the product manufacturer.
e) Advertising and promotion
- In our advertising strategy, we would use the approach of is to think of the most effective in reaching our target market that is in terms of media. Then we have make decisions about how much of our annual advertising budget we are going to spend on each medium. We have calculated the percentage of our annual advertising budget that we will invest in each of the following:
-the internet
-television
-newspaper
In our promotion strategy, we will have;
-Networking events
-Presentations/seminars
-Trade show booths
-Published articles (print and online)
-Product/Service demonstrations
f) Distributions
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A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. Laundry Toaster uses all the available intermediaries wholesalers, retailers, and stockist. Distribution strategy for the Laundry Toaster is Indirect. It is through furniture store such as Ikea, Lorenzo, Cavenzi, large retail stores and department stores. The most important part of marketing is how a product will arrive from the seller to the buyer. Many products go through a channel of distribution, which involves manufacturers, wholesalers, retailers, and consumers. The distribution strategy proposed is through furniture store such as Ikea, Lorenzo, Cavenzi, large retail stores and department stores. Therefore, Laundry Toaster channel system is indirect because its consumers are spread throughout many geographic areas and often prefer to shop for certain products at specific places.
Beside convenience stores and large retail stores, many furniture stores play a key role in the distribution of life management products. “Mass merchandisers gained share due to increase in-store promotional support”. Because of the increase in the demand for life management products, stores began shelving more life management products. This is a big advantage for Laundry toaster because there would be more room in the stores for them to market the new type of cupboard. housewives also play a big role in the distribution of life management products.
MANAGEMENT TEAM
Organization:
Key Management Personnel
Name and Career Highlights
Duties and Resposibilities
Management Compensation and Ownership
Supporting professional advisors and services
The supporting services that will be required is accounting, advertising, consulting bank advisor. The product is the first of its kind by introducing a dryer and ironing inside a cupboard and this product can be our company identity.
FINANCIAL ESTIMATES
PROJECT MILESTONES
Laundry Toaster is the company most significance product yet and it is the first cupboard in the world that provide the user easiness to keep and dry their clothes in one place without worried about the weather anymore. The Laundry Toaster has combined the functions of ordinary cupboard which is to store or keep clothes and the sun which is to dry it. This way, employed peoples don’t have to worry about drying clothes during rainy season and it also solved problems for peoples who have less time to do laundry because of working. It is also user-friendly because it can be used by all kinds of peoples without any doubt of danger risks because it is installed with safety devices and sensor to stop the electricity consumption when the clothes have been completely dried. We have targeted that this product will be a success to our company and it can enter successfully into the market and become the new symbol of furniture industry. The target market is employed men and women between the ages of 18 and 54 with a household income of RM15,000 or more who lives in the city. The management team is also consists of many professionals in their related fields and have a lot of experiences in the technology and business industries.
APPENDICES
by
kpdah91 (student)
