Edited report

[

]WATER-SAVING PRODUCTS

2014Team BUNNY

Trần Thùy Linh

Trần T. Hoài Thương

Nguyễn T. Thanh Thủy

Đào Thanh Hằng

Nguyễn Như Quỳnh

ECO-BATH MARKETING PLAN – WATER-SAVING PRODUCTS

Table of Contents

I. Executive Summary............................................................................2

II. Current Facts.......................................................................................3

III. Market and Customer Analysis........................................................4

IV. Company Analysis............................................................................5

A. SWOT Analysis................................................................................5

B. Competitor Analysis.........................................................................6

V. Marketing Objectives..........................................................................7

1 | P a g e T e a m B U N N Y


VI. Market Segmentation........................................................................8

VII. Marketing Mix..................................................................................9

VIII.Budget:...........................................................................................12

IX. Implementation Plan.......................................................................12

X. Evaluation and Control......................................................................14

I. Executive Summary

Water may cover the globe, but the world’s water resource is limited related

to human demand, causing what the United Nations and others have defined as a

global water crisis. In order to raise people awareness about saving water in

Vietnam, our ECO-BATH company is going to introduce a new saving-water

product into the Vietnam market. This product is created by the South Korean

designer Jang Woo-Seok, innovative Eco Bath system is a dual water-tank

designed primarily to recycle water rolling down from a washbasin.

This report firstly gives some current circumstances about water in the

world; then is the further market and customer analysis which includes market size,

market growth, market needs and market trends. The report then provides our

company analysis - SWOT and marketing objectives such as: changing the



consumer’s attitude of saving water in order to save the environment; providing

product awareness of Eco Bath to target customer; expecting the gross sale rises to

one hundred million a month in the first year. It also includes our marketing-mix

which consists of product, price, place and promotion. Lastly are our

implementation plan, evaluation and control for this project.

II. Current Facts

Fresh water is a renewable resource; however, we need to balance between the

amount of reserves and re-creation in using fresh water. Human, animals or plants

cannot survive without water so the lack of fresh water has been and are going to

be more serious in the future, even it is threaten for the lives of hundreds of

millions of people around the world.

In general, the way people use water is quite a huge waste because they think that

water is cheap and an endless resource. In the world, it is about 25 million people

died because of lacking fresh water in every year. It is estimated that by 2020

about 40% of humanity will live in areas of scarce water. About 1,4 billion of

people in mainly Asia or Africa is not able to access fresh water and 3 million of



children died because of lacking fresh water each year.(International Conference

on Water Week in Stockholm , Sweden Typically 22-26/8/2005 ).

In Vietnam, about 62.5 % of water is from the territory of other countries in the

upper flow. The amount of water from Vietnam territory remains about 37.5 %.

Therefore, the amount of water is not very much, especially during the dry season;

the countries in upper flow increase their demand of using water. While

underground water reserves in Vietnam is at average level compared to other

countries in the world. In big cities like: Hanoi, Haiphong, HoChiMinh city, the

percentage of people who can use fresh water is about 60-70%, when this rate in

rural areas just reaches 30-40%.

In the future, in order to have fresh water to use and face the issue of lacking water

in daily activities, people need to enhance their awareness of saving water.

According to these facts, my company comes with a creative product that is called

Innovative Eco Bath System to help people to save water.

III.Market and Customer Analysis 1. Market size

Our potential customers who have the willingness and ability to buy our products

to save water are all households or business institutions (companies) live or locate

in Hanoi and Ho Chi Minh City areas. Because in almost these areas people tend to

use modern furniture to create a professional and modern space, even try to follow

the government policy about saving water.

2. Market growth

After launching Innovative Eco Bath System as a potential product, we will start in

small market that is all households in Hanoi and Ho Chi Minh City. From this market,



we will try to collect the respond or opinions of customer to improve our products/

services quality and then access new market. After high market growth rates, we

extend our market to a larger market that are organizations or companies in the

suburban areas of Hanoi and Ho Chi Minh City.

3. Market needs

Firstly, our customers' needs a product with a reasonable price. Secondly, because

they also want to save water, so our design allow to recycle water rolling down from a

washbasin that will be use to flush the toilet. Finally, they want a product with simple

and modern product that can save the space in their bathroom.

4. Market trends

We realized that customers are paying more attention on the method to save water.

Since, due to Hanoi Water Supply Company, there are many difficulties in water

supplying in summer 2014. Because the consequences of broken pipeline of water on

recently time that took over 72 hours to repair. Also, the underground water are going

to decline 4-6% while the domestic demand is expected to increase 3-4% that may

lead to lack of fresh water for the whole Hanoi areas.

IV. Company Analysis

A. SWOT Analysis

Internal Factors

a, Strengths:

When producing a very new product which has not appeared in Vietnam market,

our company has reputation as an eco company. Our company also has a group of

energetic and flexible employees which means they are easy to adopt changes.



Besides, we have suppliers who provide to us low – cost materials while using

modern technology. It helps us to reduce production cost and be able to set a

suitable price.

b, Weaknesses :

However, being a new company also a weakness since customers are more familiar

with other competitors’ product. Our employees are still young and not so

experienced. Besides, we do not have strong capital like our competitors.

External Factors

c, Opportunities

Currently, people are more concerned about environmental problems; therefore, an

eco product will be more attractive. Furthermore, the economic conditions are

unstable so people tend to save money and do not spend much. Our company may

have the support from some environmental organizations because we produce Eco

Bath System to reuse recycle water for saving water.

d, Threats

Our competitors have strong capital and have been in this market for years. They

are very competitive and flexible to deal with us. Moreover, other companies will

see that trend in customers’ behavior which is buy eco and saving product; then

they will try to enter this market.

B. Competitor Analysis

1, Inax



Inax has the product line of faucets, sink and toilet bowl with luxury design

and elegant forms. Therefore, it brings a convient atmostphere privately, perfectly.

Moreover, they ensure that their products will bring the feeling of relax and

peaceful for the customers. The materials are also warranted about the quality.

2, Toto

Toto provides products of faucets, toilet bowl and sink with sample and

sophisticated design that is suitable for both urban areas, suburban areas or rural

areas. Toto trend is making the design become more and more simple but it still

creates courteous space in customers' bathroom. Toto's product is using popular in

Vietnam market.

After all, these two competitors have years of establishment and development.

They know the customers and are able to provide more choices for customers.

Therefore, in order to deal with them; we have to forecast all the changes in the

market to take an initial action if we want to survive.

V. Marketing Objectives

1. Changing the consumer’s attitude of saving water in order to save the

environment.

Even though fresh water is a sustainable resource; we should protect the water

environment to meet current and future human demand because water is essential

to our life. Saving water does not only reduce the amount of water used in

unnecessary things, but also recycle the usage water. According to Mr.

Dhanabalan, individual house owners can set up recycling plants inside their



premises. “The water used in the kitchen and bathroom could be separated from

the sewage, recycled and used to fill flush tanks and watering the plants. People

must be willing to spend for it,” he said.

2. Providing product awareness of Eco Bath among target customer.

Our main product is Eco Bath which is created by Jang Woo-Seok, South Korean

designer. Innovative Eco Bath system is a dual flush water-tank designed primarily

to recycle water which has been using from a washbasin. The “Eco Bath” concept

uses 50% used water and 50% new water for a toilet system half-ways to nature

friendly.

Benefits of the project to customers

a) Make the customer’s life to be more green and friendly with nature.

This means customers will be able to protect the environment.

b) Help customers enjoy their life with model technology without

destroying the nature.

c) Give customers a chance to experience the brand new product in the

market.

3. Raising the gross sale to 100 million a month with selling one hundred

products with the price of 5.5 million per unit.

We will implement marketing plans to promote this program and other higher-end

services to our potential clients to reach the gross sale of 100 million VND for

more than ninety products per month in the first year launching the product. For

the next year, we expect the sales will rise 15%.

VI. Market Segmentation8 | P a g e T e a m B U N N Y


1. Customer:

Our target customers are people living in big cities – Hanoi and HoChiMinh City,

because:

Geographic: urban area where densely populated and highly educated

population.

Demographic: High income (compare to other places – suburban or rural

area)

2. Some facts to explain why we choose that segmentation:

Following Deputy Director of Department of Engineering, in 2014-Hanoi,

they just provide 100% fresh water for 10 districts and 43.25% suburban

area.

Besides, in Ho Chi Minh, 89.43% citizen has fresh water to use. To provide

to 100% citizen, government must to invest 4,500 billion VND. It absolutely

is a big number.

In fact, the percentage of waste of water is 34%. Therefore, the needs of

using water are in alarm status.

3. Target market:

We focus on citizen in urban area as primary customer where the citizens

have good conditions such as technologies (smart phone, radio, and

computer) to know Saving Water Equipments. In addition, their living

standard is higher than other. Therefore, they are willing to pay more money

to buy Saving Water Products. Furthermore, most of the population is living

urban area since it is convenient for their live. When targeting in this market,



we can persuade more people and be able to improve result of saving water

process. Thus, in present and in the future will have more people know this

product as Green Product.

4. User positioning:

With the purpose is saving water, Eco Bath is good and useful for anyone

who loves this kind of products and also bring the high aesthetics for their

home.

VII. Marketing Mix

1. Product

Our product is Eco Bath used in bathroom. It was created by the South Koren

designer Jang Woo-Seok, innovative Eco Bath system is a dual water-tank

designed primarily to recycle water rolling down from a washbasin. It is composed

of two key parts including a left part having recycled water, while the right part

comprises of tap water. Outwardly, it looks a normal water-tank except two levers

and a single LED. So, when the left part is full of recycled water, the LED

becomes green light, and then we can pull the lever for recycled water to flush the

toilet. Inversely, the LED stays on red light, indicating not full it yet; then we can

pull the lever for tap water to flush the toilet.

Here is some information about product:

Material: Stainless Steel / FRP

Colors: White & black

Dimension: 1760x1060x890mm



2. Price

Setting price with changing price reasonably and flexibly will help to increase our

sales. When setting price, we specially pay attention to two objectives:

New market: We have to make sure that we can penetrate into new market with

the set price.

Profitability: In price-setting process, we can not ignore the sales revenue and

profit that we are going to make. It tells us whether the company is able to

invest and develop or not.

Our main pricing method is full costing (variables cost, fixed cost, tax…). We

choose this method because it is fair for both producer and consumer. The price is

more reasonable and stable.

After considering all the cost, the price is 5.500.000 VND for one. It is a

reasonable price since our product is both washbasin and toilet. Moreover, there

will be deduction on the total bill up to 10%; it depends on how many products

customers buy.

3. Place

We have 3 main kinds of distribution in two big cities – Hanoi and HoChiMinh

City.

Showroom: Where we show only our products, salesperson will have full

knowledge about our product so that they can introduce to our customers.

Retail: In order to enhance distribution area, we give retailers great

commission and products’ information as well.

Website: For customers who are busy and can not go out, they can visit

our official website to read information and order. They can choose to

pay by credit card or in cash.



We provide free delivery for all types of purchases in Hanoi and HoChiMinh City

since they are our target markets. We also ship our products to other small cities or

provinces as well. However, customers must pay shipping charge

4. Promotion

Our purpose of communications is to persuade customers buying our products and

beyond that is to raise their awareness of saving fresh water. We also know that,

when buying something, they always have to ask salesperson about the products.

That’s why our target of communications is also salesperson to make sure they

totally understand the conditions right now.

In order to do that, we will take advantage of advertisement of TV commercials,

billboard, newspaper, sponsor and endorsement. We try to raise our brand image as

an eco company; therefore, we avoid using leaflet even though it is a good way

since we know receivers will throw away leaflet as we have witnessed and it will

totally damage the environment.

VIII. Budget:

Below is our estimated expense for 1 month:

Total expenses: 440,000,000VND

1. Salary: 50 employees x 3,000,000VND = 150,000,000VND

2. Product Expense: 100 units x 2,500,000 VND = 250,000,000VND

3. Marketing Expense: = 40,000,000 VND



IX. Implementation Plan

The launch of ECO-BATH will use a phrased approach, beginning with building

people’s awareness in terms of water-saving and brand. We will divide into two

groups, the first group duty is to raise awareness about the use of water in

Vietnam; and the second group is in charge of building brand awareness. Water

saving awareness should be developed through changing people’s perspective in

saving water. Brand awareness should be developed through visible presence at

professional events, online searches, networking and strategic alliances. This

visibility will help gain profit.

1, Objectives

• During the first six months of commercial availability, the primary objective is

to expand both the user and customer base to maintain a 100:1 user to customer

ratio.

• Business Customers: Sign 14 regular customers and 52 occasional customers

• Individual Members: Convert 1,000 people to ECO-BATH members

2, Marketing objectives

• Increase member networking activity: Increase user numbers through

networking initiated by existing members. Improve user experience to promote

networking.

• Increase profile completeness: Increase user engagement with platform.

• Public relations campaign (PR): Increase awareness of ECO-BATH brand

through concentrated PR efforts directed at the target market of customers and

users.



4, Key Success Factors

• Economical marketing to relevant constituents; ECO-BATH needs to establish

communication (distribution) channels that pinpoint relevant constituents in a

manner consistent with mission values. Limited by resources, chosen channels

must aggregate many relevant eyes with free, minimal, or deferred costs

involved.

• Crafting of brand identity: The contrast between ECO-BATH and competitors

lies not only in product differentiation but also in the company’s mission

statement and delivery. One-time job search is available from thousands of

online recruitment sources. Social networking has been covered from diverse

angles, attracting many different audiences.

• Efficient value delivery: The base of customers (both individual and business)

needs to receive the proposed value in a timely manner, with consideration

given to quality versus quantity of results, alignment with existing objectives,

and overall experience with the ECO-BATH brand.

• Sales process: ECO-BATH’s business model requires the acquisition of both

business customers who have available positions and users who will be matched

with those positions.

X. Evaluation and Control

ECO-BATH will evaluate user profiles to identify sets of profiles that are valuable

to new business customers, which will aid in the selection of subsequent target

market customers.



1, Business Customer

Face-to-face meetings, phone conversations, and e-mail survey contacts with

people from a range of industries, company sizes, and functional areas provide a

means to:

Build relationships with prospective customers.

Understand customer needs.

Ensure alignment between ECO-BATH’s product and customers’

recruitment preferences.

2, Individual Members

Periodic surveys of various prospective users of online recruitment services

indicate:

Current services.

Methods that work well.

Biggest problems with online recruitment providers.

References

1. Chris Burns (21st May, 2009) “Use Your Water Twice”. Retrieved from

http://www.yankodesign.com/2009/05/21/use-your-water-twice

2. Hà Nguyễn, (2014) “Hà Nội: Nước sạch chỉ đảm bảo cung cấp đủ cho 10

quận nội thành”. Retrived from http://www.baohaiquan.vn/pages/ha-noi-chi-

dam-bao-cung-cap-100-nuoc-sach-cho-dan-so-10-quan-noi-thanh.aspx



3. Goods Home Designs, “Innovative Eco Bath System by Jang Woo-Seok”.

Retrieved from http://www.goodshomedesign.com/innovative-eco-bath-

system-jang-woo-seo

4. Ly Hanh, Tuan Trong (26th Aug, 2009), "Nươc-cau chuyen ham nong toan

cau". Retrieved from http://www.thiennhien.net/2009/08/26/nuoc-cau-

chuyen-ham-nong-toan-cau

5. N.T.ĐA (24th Aug, 2005), "Nuoc sach la chia khoa cua su phat trien ben

vung". Retrieved from http://chuyentrang.tuoitre.vn/TTC/Index.aspx?

ArticleID=95007&ChannelID=3

6. Nam Văn, (2014) “Cần hơn 4.500 tỉ đông đê tất cả hộ dân TPHCM co nước

sạch”. Retrieved from http://www.thesaigontimes.vn/110426/C%C3%A0n-

hon-4500-t%E1%BB%89-d%C3%B2ng-d%E1%BA%BB-tat-ca-ho-dan-

TPHCM-c%C3%B3-nuoc-sach.html

7. Nguyen Hanh (12th May, 2014), "Ha Noi: Nguy co thieu nuoc sinh hoat".

Retrieved from http://www.baomoi.com/Ha-Noi-Nguy-co-thieu-nuoc-sinh-

hoat/144/13783492.epi

8. Nguyen Nam (19th Feb, 2012), "Nuoc sach va ve sinh moi truong". Retrieved

from http://www.ninhthuan.gov.vn/chinhquyen/soyt/Pages/NUOC-SACH-

VA-VE-SINH-MOI-TRUONG.aspx



9. Tamil Nadu (26th Mar, 2013) “Save water through recycling”. Retrieved

from http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/save-

water-through-recycling/article4549682.ece

10.Tien phong, (25th Mar, 2008), "5.000 tre em ni chet moi ngay vi thieu nươc

sach". Retrived from http://www.thiennhien.net/2009/08/26/nuoc-cau-

chuyen-ham-nong-toan-cau/

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Data & Analytics

Edited report