The document provides a marketing plan for launching an ultrasonic clothes washing machine. Key points: 1) The product will be targeted at both consumer and business markets, with 7kg and 35kg models respectively. 2) Competition in the consumer market is dominated by LG, Samsung, Videocon and Whirlpool. The plan aims to gain a 1% market share through differentiating the product based on its new ultrasonic technology. 3) Marketing strategies include an emphasis on technology benefits, price positioning targeting high-income consumers, and a promotion strategy utilizing television, online, and retail partnerships.

1. ULTRA SONIC CLOTHES WASHING MACHINE
Marketing Plan
Submitted By – NMP Group 8
1

2. Table of Contents
1
Executive Summary .............................................................................................................. 3
2
Situation Analysis .................................................................................................................. 4
2.1
Market Summary ........................................................................................................... 4
2.2
SWOT Analysis ................................................................................................................ 6
2.2.1
Strengths .................................................................................................................. 6
2.2.2
Weaknesses ............................................................................................................. 6
2.2.3
Opportunities ......................................................................................................... 7
2.2.4
Threats ...................................................................................................................... 7
2.3
2.4
Technology Analysis: ................................................................................................... 8
2.5
Product Offering ............................................................................................................. 9
2.6
3
Competition ..................................................................................................................... 7
Distribution/Channels .............................................................................................. 11
Marketing Strategies ......................................................................................................... 11
3.1
Objective ........................................................................................................................ 11
3.2
Targeted Segments .................................................................................................... 11
3.3
Positioning .................................................................................................................... 12
3.4
Strategies ....................................................................................................................... 12
3.4.1
Products................................................................................................................. 12
3.4.2
Price. ....................................................................................................................... 13
3.4.3
Distribution. ......................................................................................................... 13
3.4.4
Promotion ............................................................................................................. 13
3.5
Marketing Mix .............................................................................................................. 14
3.6
Marketing Research ................................................................................................... 14
4
Financials ............................................................................................................................... 15
5
Marketing Controls ............................................................................................................ 16
5.1
5.2
6
2
Implementation ........................................................................................................... 16
Marketing Organization ........................................................................................... 16
References ............................................................................................................................. 17

3. 1 Executive Summary
Ultramatic Ltd manufactures and sells industrial and home cleaning systems like ultrasonic
cleaners. We are among leading firms in India for manufacturing such systems. Our products
include Single tank ultrasonic cleaners, Multistage Aqueous ultrasonic cleaner, Multi stage
vapour degreaser, Oil Skimmers etc.The company is preparing to launch a new product “Ultra
sonic clothes washing machine” for industrial and home clothes cleaning solutions.
Ultrasonic cleaning is a method of cleaning that uses an ultrasonic device i.e. a sonicator to
clean. The ultrasonic device uses a special cleaning solution and high frequency sound wave
to clean the items in frequency range of 40 to 80 KHz. Ultrasonic cleaning method has
certain advantage over existing washing machineslike; it reduces the need of harsh cleaning
agents, which increases the life of fabric & color. A special cleaning solution, used with the
machine is to be used at a warm temperature, somewhere between 50 to 65 degrees Celsius.
Latest technology trends in the consumer washing machine markets incline heavily on Top
and Front Loading Fully Automatic washing machines with Fuzzy Logic being the sought
after upmarket technology.The lower end of the market is dominated by Semi-Automatic
washing machines. Ultrasonic technology in Washing machines has not been marketed
heavily in the Indian market and is still to gain space in the consumer consciousness.
Our marketing priorities include emphasis on a new cost effective technology,building brand
awareness among customers, targeting specific segments in consumer and business markets,
generating sales and breaking even by the end of the second year. The company operates in
accordance to the environmental regulations. Our capabilities of technical expertise and
design and efficient assembly procedures not only contribute to cost control but also enable
us to react quickly to market trends and technological advances. For the product’s
introduction, we will use a push strategy aimed at channel members offering customers a
technically superior product for a hassle free and cost effective cleaning experience.
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4. 2 Situation Analysis
Ultramatic Ltd was incorporated in 1999 to manufacture industrial cleaning systems like
ultrasonic cleaners & degreasers, for the industrial marketplace. We are one of the leading
firms in India manufacturing, marketing and providing after sales services for such systems.
In the years that we have been in business, we have addressed every conceivable cleaning and
washing application, from simple oil, chip, coolant removal, complex metal parts, cleaning
moulds, hard disk drive components and photonic optical components to absolute zeroresidue results. We are now entering the highly competitive washing machine market with a
new product based on Ultrasonic technology for both household and industrial use.
2.1 Market Summary
With an estimated 590 million urban consumers by 2030 and an estimated per capita spend of
about Rs 50,000 India has a huge market potential. A McKinsey Global Institute study
forecasts that the number of middle-class households with income of 2–10 lakh will increase
from 13 million households (i.e., 5 percent of the population) in 2006 to 128 million
households (41 percent of the population) by 2025.
Based on Market Research data available to us for FY 2011 the Indian washing machine
market continues its high growth trajectory, albeit the annual growth rate has come down
from 38 percent in FY 2010 to 24 percent in FY 2011. The total market of washing machines
in FY 2011 was 4.7 million units. The market is dominated by four players – LG, Samsung,
Videocon group, and Whirlpool – with a combined share of 74.6 percent.The semi-automatic
product category continues to have a dominant market share of 65 percent in terms of
quantity, at sales of 3.05 million units in 2010-11. However, in value terms they are almost
neck-to-neck in the Rs 4900 crore industry. Fully automatic sales is estimated at Rs 2500
crore, the balance Rs 2400 crore being contributed by semi-automatic product category.
Zone-wise, the northern region of India leads with 38 percent market share, followed by
southern region 30 percent, western region 27 percent, and eastern region five percent.
Interestingly, North India has preference for semi-automatics, whereas their southern
counterparts prefer fully automatic washing machines.
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5. At this stage we are among few leading ultrasonic cleaner manufacturers in the country
offering industrial products and specializing in B2B marketing.Ultrasonic washing machines
are new for the Indian households and hitherto not been marketed in the B2C space.
The penetration of Washing Machines in India is very low as just about 8.8% of the
households own a washing machine. Even in urban areas the penetration is just about 27.5%
in terms of households (Source: DuPont Research, Sep 2013). However the sales trend for
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6. the washing machine industryis on a surge for the last few years with the product
increasingly being perceived as a utility product rather than a luxury product. (Source: TV
Veopar Journal, April 2012). According to conservative estimates,the washing machine
industry is registering an average 20%YOY growth as per a report by Research and
Markets.Thus the market size for FY 2014-15 can be estimatedas:
4.7 million in 2011; CAGR of 20%; hence market in 2014: 8.13 million.
2.2 SWOT Analysis
2.2.1 Strengths
Innovative Product: Product will be differentiated on basis of high technology
combined with commitment to high quality, and customization of products and
support services.
Pricing: Our product is priced neither at a level of prestige or exclusivity nor
economies of scale. Our product for the business segment will be priced based upon
value product pricing charged earlier towards old customers.
Employee: Highly skilled technical manpower involved in product design and
engineering. Heavy investment in R&D with the R&D department consisting of only
PHDs. Dedicated marketing team for B2B sales and B2C marketing being augmented.
Long-term relationships: We have excellent relationship with our suppliers and
business customers.
Quality: Assurance and control at each process level with emphasis on TQC.
Returning Customer: High percentage of repeat sales for Business Customers.
2.2.2 Weaknesses
Brand awareness: Ultramatic has no established brand image in comparison with LG,
SAMSUNG, IFB and others for the consumer market. As of now brand awareness is
through word-of-mouth based upon our B2B relationships. Aggressive promotion will
address this issue.
Product line mostly geared towards Industrial products.
Utlrasonic washing machines will cost more than normally available Fully Automatic
washing machines.
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7. 2.2.3 Opportunities
Technology: New Smart Technology, which will be cost effective in the long run.
After influx of Smart Technology consumers are ready to pay higher for product
innovation.
2.2.4 Threats
Increased Competition: Competitors such as Nitin Engineers are in the market with
equal competence.
Probable theft of trade secrets is difficult to control.
Poaching of R&D team by competitors.
2.3 Competition
The top four players LG, Samsung, Videocon and Whirlpool collectively account for about
75% market share. Semi-automatic washing machines capture about 75% of the overall
washing machine market share in terms of units sold. However as per 2010 data, the revenue
share of fully automatic and semi-automatic was almost same at around Rs.2500 crore.
Geographically, North India accounts for 38% market share, South – 30%, West – 27% and
East – 5%.
In terms of price, the washing machines are categorized as those priced below Rs.8000
(generally semi-automatic machines), Rs.8001-Rs.17500 (fully automatic 6.2kg load), and
above Rs 17,500 (6.5 kg or front loading).
Popular brands offering Washing Machines in India are:
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8. *Jan-Dec 2010-11
2.4 Technology Analysis:
Globally, the washing machine industry is witnessing key technology changes with smartappliances aspect gaining wide interest with the consumers. Inverter-based variable speed
drives (VSD) is also capturing the attention of potential customers.
In India, the consumer preference is evolving from perceiving washing machines as merely a
utility product to considering it as an energy-efficient, well-connected and value-added
appliance. Of late Smart Technologies have captured consumer attentionin consumer durables
like Television, Mobile Phones etc.Ultrasonic technology, thoughin use widely in Industrial
Cleaners have not been explored for use in washing machines.
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9. 2.5 Product Offering
We will launch two products one for the Consumer market and another for the Business
market. Product features include
Aqueous cleaning solution
Indirect heating of solvent enhances the life cycle of the solvent
Proper insulation of the tanks minimizes the heat loss & in turn saves electrical energy
Ultrasonic generator is having auto tuning circuit for optimum power during loading
One touch programming panelwith coloured digital screen displayfor preset mode
selection
Plug and forget features
Sleek design
Front Loading and automatic drying
50% less cycle time than Fully automatic machines
Temperature control, Cycle Time control, Spin Rate control
Adjustment for fabric modes, Automatic power stabilization
Sleep mode& Emergency pause
7 Kg for Consumer market and 35 Kg for Business market
Our Product will be in direct competition with the following popular brands. The
specification of these popular brand is as follows.
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10. Brands
Price
Main Features
Wash Capacity (Kg)
Type of Machine
Loading Type
More Features
Videocon Careen Plus Samsung WF0854W8N Godrej GWI 8012 SEDS Haier HW85-B1486NZP
37,777 onwards
41,500 onwards
37855 onwards
37,501 onwards
6.5
Fully Automatic
Front
8.5
8
6
Fully Automatic
Front
Fully Automatic
Front
Fully Automatic
Front
Eco Bubble
Technology
LCD Digital Display
Anti Rat Cover
- Diamond Drum
- Ceramic Heater
- Voltage Control
Salient Features
- Eco Drum Clean
- Auto Restart with
Memory Backup
- Direct Drive
Technology
- Ozone Clean
Technology
- Turbulator
- Chrome on Door
- Time Delay
- Rinse Plus
- Sports Wear
- 4 Rinse options
- Stabilizer Free
Operation
After Sales Service
Warranty Period
2 year
Cycle Options/ Programmes
Normal Wash
Quick Wash
Delicate Wash
Heavy Wash
Hot Water Wash
-Prewash (Soak)
Wash Programs
Cotton
Wool
Rinse+Spin
Bleach Dispenser
Detergent Dispenser
Other Features
Auto Restart
Auto Power Off
One Touch Wash
-Lint Filter
-Rat Mesh
-Rinse Hold
-Child Lock
Automatic Drainage
Digital Display
Timers
Jog Dial
Water Consumption
Auto Water Control
10
1 year
- 5 Spin Speed Options
- Remaining Time
Display
- Remaining Time
Delay
- Fault Diagnosis
(Digital Display)
1 Year
1 Year

11. 2.6 Distribution/Channels
Ultrasonic Washing machines will be selectively distributed through a network of retailers for
the consumer segment. B2B sales will be directly through our sales force.
Traditional Channel: We plan to partner with Electronic Specialty stores and Electronic
specialty chains like Croma and Reliance Digital for phase wise roll out of our product in
Metro and Tier I cities. We seek to maintain control on the retailing with positioning of
dedicated sales personnel to explain product features to customersthrough live demo. Retailer
sales force will be trained in house in our facility for 2 weeks about technical aspects of the
product.Technicians from the company will provide technical assistance for installation,
servicing and break down. Selection of stores based in areas with high footfalls from affluent
customers.
Online Channel: Buyers will place orders, track shipments, and handle other functions online
through our online secure systems. Our suppliers have sufficient parts and components ready
for peak production periods, and our flow of goods will ensure proper inventory levels during
the introduction phase. On the other hand, we must avoid excess inventory, because of the
threat of technological obsolescence.
3 Marketing Strategies
3.1 Objective
Phased Launch in metros, then launch in tier1 cities in 6 months, breakeven in 2 years with
gain of around 1% in market share for the Household Fully Automatic Category through unit
sales volume of 16000. We also plan to sale 2000 units for the Industrial category.
3.2 Targeted Segments
Consumer Markets:Within the consumer market, our primary target segment is high-income
group consumers in metro cities, where many of the locales have shortage of water supply or
the supply is time bound. We plan to target well educated consumers withannual household
income ofaround Rs 1000000 per annum and socio economic classification of A1 and A2. We
need to convince Fully Automatic Washing machine users to upgrade to Ultrasonic
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12. technology.
Business Market: The other segment targeted will be industrial houses and commercial
establishments involved in clothing and laundry business, manufacturing or exports houses
such as Orient Craft limited. This segment will be attracted by washing machines with higher
capacity. Reliability and customer support services is a major factor for business users. Our
introductory 5 yearswarranty will appeal to this segment.Our main objective is to capture
repeat sales from existing relationships with this new product. These include
Large Textile manufacturers and apparel export houses which uses heavy duty
industrial washing machines.
Nonmanufacturing segments of the business-to-business market such as garment
export houses.
Residential institutionslike Boarding schools / Colleges.
3.3 Positioning
Our differentiation is based on technology which is hassle free and cost effective in the
long run. For households it is an answer to all cleaning woes and better value for money
than traditional washing machine.
For B2B sales our positioning will be based on our reliability of product and service
reputation.
3.4 Strategies
3.4.1 Products
Ultrasonic washing machines are high technology products, cost effective in the long
run, sleek in design and come fully loaded with features. This product has the potential
to carve out a niche segment in an already saturated washing machine market littered
with traditional technology. It will be a trend setter for the household consumer
segment in terms of technology with the competition gradually adopting it in the long
term. Product attributes are difficult for competitors to copy in the short run, thereby
giving us competitive advantage.
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13. 3.4.2 Price
We plan to position our product for the affluent sections of the society in the consumer
section. After price elasticity analysis of our product we have arrived at a price of Rs
45000, which is comparable to current high end Fully Automatic Washing Machines. Our
customers will pay only a small premium compared to current best-selling models,
which sell in the range of Rs 40000-420000. For our B2B sales we will apply value
pricing formulas like other Ultrasonic products and it will be Rs 150000 per unit.
3.4.3 Distribution
Our channel strategy is based on selective distribution with control over retailers in
terms of sales pitch. Our retail mix will include well-known Electronic Specialty Stores
and Electronic Chains like Reliance Digital and Croma. Online channel will be based
upon our website. We plan to give dealer commission of 10% on the consumer price. We
also plan to provide training to selected sales personnel from each store selling our
product and generous grants towardsfull-length colour displays of the product on all
shop floors.
3.4.4 Promotion
We will promote our product with an extensive electronic media blitz and focus on
differentiation through our superior technology and long run cost effectiveness. An
advertising agency will be selected for conducting advertisement on television during
prime time, communicating our differentiation. This will emphasize on how the
Ultrasonic technology is the future of next generation washing machines and how this
will change household management of laundry in the future.The media advertisement
will not have a celebrity brand ambassador initiallyand will only focus on the product
and its futuristic features.From time to time we will print full page advertisements on
national dailies. To motivate channel partners we will use trades sale promotions and
personal
selling.
Until
enough
brand
awareness
has
been
generated
our
communications will encourage sales through our sales partners rather than from our
website.
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14. For B2B sales we will focus on trade journals or specialty publications.
3.5 Marketing Mix
Quarter 1:We will launch a sales promotion campaign and participate in major industry
trade shows to educate dealers and generate channel support for the product launch in
addition to introductory television advertisementtargeted at metro cities till the quarter
end. We will pitch the product in TV talk shows, which specializes in Electronic Lifestyle
products like NDTV Gadget Guru. Our training staff will work with retail sales personnel
in our in-house facility to explain the features, benefits and advantages.
Quarter 2: We will start an integrated print and internet campaign to generate
awareness and induce conversation. The campaign will focus on our differentiation on
technology and cost effectiveness in the long run. The campaign will be supported by
point-of-sale signage and online ads and videos.
Quarter 3:By the third quarterwe would have a pan-India distribution and will roll out
an integrated national advertising campaign. We will feature celebrities using the
product in Ads on TV and radio. We will also use animated online ads featuring avatars
of these celebrities using the product.
Quarter 4: We will institute customer satisfaction surveys to garner feedback on
product and marketing activities. We will review marketing effectiveness in terms of
annual sales and benchmark retailer and distributor performance. In addition we will
announce extensions in our product line with products of different capacities and price
points.
3.6 Marketing Research
We will invest in market research on consumer reaction towards ultrasonic washing
machines for better targeting of consumer segments and gauge the level of acceptance
of our product. Surveys and Focus group interviews with first users will be conducted
across metros and Tier I cities to measure brand awareness and customer satisfaction.
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15. 4 Financials
Ultrasonic washing machinesare priced after keeping competitors in mind. Ultramatic is
neither concerned with setting high prices to signal luxury nor is it attempting to achieve
economies of scale. Instead value pricing is practiced so that customers feel comfortable
purchasing new washing machine to replace the old. The company will price 7Kg household
consumer model at Rs 45000 and 35 Kg industrial model at Rs 150000. The cost structure
and its analysis are given below. The data infers that the break-even will be reached at the end
of 2 year and sales will capture 1% of market share in the first year itself.
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16. 5 Marketing Controls
We will apply Activity Based Cost Management technique to control costs and eliminate nonvalue added activities. Responsibility of each costing will be assigned to individuals to infuse
accountability.
5.1 Implementation
Stringent control activities to monitor quality and customer service satisfaction (two
key performance indicators)
Monitoring customer-service communications and online product reviews to detect
any early signs of customer concern or confusion.
Controlling schedules to ensure timely implementation.
Quarterly financial measures will include return on marketing investment, return on
sales, and return on sales by channel.
Contingency plan calls to introduce short-term price promotion such as a discount to
remain competitive. Based on the outcome, revise the marketing plan as necessary
5.2 Marketing Organization
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17. 6 References
Our report is based on a real life company based out of Noida named R.K. Transonic
Engineers Private Limited. Website of the company is http://www.ultrasonicindia.com/.
TV VEOPAR JOURNAL, APRIL 2012, adi-media.com, An ADI Media Publication
Marketing Management, 14E by Kotler,Keller,Koshy and Jha
Online Resource:
http://compareindia.in.com/products/washing-machines/10
http://en.wikipedia.org/wiki/Ultrasonic_cleaning
http://www.ukwhitegoods.co.uk/help/buying-advice/washing-machine/3502washing-machine-cost-breakdown.html
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