Developing home laundry service

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


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



Benchmarking


Concept

Evaluation

Target

Consumer

Definition

Business

Opportunity

& Vision

Service Mix

DevelopmentRefine

Application

• Pilot• STM



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



Benchmarking


Concept

Evaluation

Target

Consumer

Definition

Business

Opportunity

& Vision

Service Mix

DevelopmentRefine

Application

• Pilot• STM



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



Benchmarking


Concept

Evaluation

Target

Consumer

Definition

Business

Opportunity

& Vision

Service Mix

DevelopmentRefine

Application

• Pilot• STM



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



Benchmarking


Concept

Evaluation

Target

Consumer

Definition

Business

Opportunity

& Vision

Service Mix

DevelopmentRefine

Application

• Pilot• STM



PhasedRoll-out

Brand Name Surf Laundry Service, ‘Hanger’ VisualisationBrand Name Surf Laundry Service, ‘Hanger’ Visualisation

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







Proposition Gift of Time






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




Service Offer Superior Total Garment CareExcellent Customer Support







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


• 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





Business Process Franchised operations








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






Pricing Premium Market Rates (Shirt = Rs 10)















Viability 25% ROI (Franchisee)










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

















Real life mix test/STM to refine mix : MQ ‘00Real life mix test/STM to refine mix : MQ ‘00



Benchmarking


Concept

Evaluation

Target

Consumer

Definition

Business

Opportunity

& Vision

Service Mix

DevelopmentRefine

Application

• Pilot• STM



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)



Benchmarking


Concept

Evaluation

Target

Consumer

Definition

Business

Opportunity

& Vision

Service Mix

DevelopmentRefine

Application

• Pilot• STM



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



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


Automated process


Branding&

Scale

Vs HomeVs Home Vs IndustryVs Industry



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


Automated process


Branding & Scale

Cleaning expertise

Hygienic


Automated process


Branding & Scale

Home Vs IndustryHome Vs Industry

Developing home laundry service

Documents

home service usership

service basket

laundry care marketsummary

detailed service brochure

home expenditure

home garment carecustomerfirst

home total maidproduct

project woodstockprocess