MKT001

PRINCIPLES
OF
MARKETING
CA2 GROUP PROJECT

DMSSF/39th Intake/ Class E

Woo Ying Jie Damien S8806252C

Teo Jia Hui S9314011G

Tang Shao Yi Rachel S9411140D

Tong Yuen Hoe Alvin S9407568H

Vanessa Ng Hwee Leng S9310519B

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 Content Page

1.0 Introduction 3

2.0 Market Analysis

2.1 Market Segmentation 3

2.2 Targeting 4

2.3 Differentiation 4

2.4 Positioning 5

3.0 Product Decisions

3.1 Product Attributes 6

3.2 Branding 7

3.3 Packaging 7

3.4 Labeling 7

3.5 Product Support Services 7

4.0 Unique Selling Point 8

5.0 Promotional Strategy and Tools

5.1 Sales Promotion 8

5.2 Advertising 9

6.0 Conclusion 9

7.0 Reference 9

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1.0 Introduction

In bustling Singapore, time is money and a luxury. There is an increase in Singaporeans

working longer hours and it is imperative to find a solution to ease their workload. Philips
has come up with the perfect solution for their daily needs; to be able to prepare their
working attire within minutes. iSteam is a dual functioned steam iron and dry clean
household product that promises to deliver quality pressed clothing in the most efficient and
convenient manner possible.

2.0 Market Analysis

2.1 Segmentation
The total population in Singapore is 5,312,400 as of 2012.

Out of this, 77% are currently employed consisting of 56.6% males and 43.4%
females. According to a survey by international business company Regus, one out of
five Singaporeans works more than 11 hours a day.

The median income as of 2011 is $2,500 and the average household size is 3.5
persons.
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 From the table above, the trend for household services, which includes laundry and
dry cleaning, is on the rise. We can deduce that Singaporeans need and will continue
to use such services in the future.

Behavioral segmentation
According to GfK Retail and Technology Singapore, Singaporeans spent over
USD11.5 million on garment care appliances in 2012 alone. It also showed evidence
that consumers are willing to pay more for newer technology that offers greater
convenience. The most common type purchased by locals is the upright garment
steamer, with four out of every five garment steamers sold belonging in this range.

2.2 Targeting
iSteam is targeted towards working adults who experience long hours of hectic work
schedule and avocation. Instead of increasing their workload at home, iSteam would
be the solution to ease it. Having nicely straightened clothes will be just a few touches
away and there will never be a need to manually iron or steam again. This would be
the selling point to our intended target audience.

2.3 Differentiation
Core customer value:
Our consumers are buying convenience, time and utility. The iSteam saves time and
effort in needing to iron each clothe. The function of steam ironing or dry cleaning is
available just by hanging their clothes in the iSteam. This saves them the hassle of
heading to the dry cleaner’s or having to iron each clothe individually. A reduction in
steaming time, yet not compromising the crispness of the clothes is a value unique to
the iSteam. With a user friendly touch panel, operating the iSteam requires just a

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 swipe of a finger. Its sleek and compact design ensures that it complements your
home décor.

Actual product:
As iSteam is an electronic item, it can be meaningfully differentiated in terms of
efficiency and functions. The iSteam offers what normal steam irons are not able to
perform. Normal steam irons require more work as compared to our iSteam. Each
clothe must be hung on the rack and steamed individually. By hanging the clothes
that require ironing in the closet and selecting the mode, they will be straightened in
less than 10 minutes. Ironing becomes less cumbersome and time consuming. Besides
being a steam iron, the iSteam also offers a dry cleaning mode. This allows
consumers to dry clean their business suits at the comfort of their homes.

Augmented product:
We provide free delivery and installation services as we know that our customers
look for convenience. As we strongly believe in the quality of the product, each set
will come with a 5 year warranty and 2 years free of charge maintenance. Any
manufacturing defects or damage can be sent for repair or servicing. Our competitive
advantage is based on our distinctive and superior nature of our product.

2.4 Positioning
Using the “More for Same” strategy, we offer better functions for approximately the
same cost. iSteam is a dual functioned steam iron and its price ranges around that of a
washing machine. To reach our target audience better, we will be retailing the iSteam
in electronic stores in shopping malls. By providing our sales representatives with
adequate training, they would be able to showcase the full capability of the iSteam.
By choosing reputable retailers that are known for providing good service, we would
be able to further assure consumers of its reliability, garnering sales and recognition
as a result. Through consistent performance and communication, we will be able to
maintain our position in the market. By closely monitoring and adapting to match our

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 consumers’ needs and our competitor’s strategy, iSteam’s position will advance in the
ever changing marketing environment. Our position statement is, ‘To the busy
working individual who will benefit from the extra time and effort saved, our iSteam
is a dual functional steam iron that offers quality bulk steaming.’

3.0 Product Decisions

3.1 Product Attributes
Features:
Our product is a closet that steam irons clothes in bulk. Just load the clothes by
hanging them in the closet and choose the steam ironing mode on the touch screen
panel. Hot steam will emanate out from the vents and straighten out any kinks in the
garments. The temperature can be adjusted to meet the different requirements of
various materials. An added feature of dry cleaning is included for delicate clothes
that cannot be machine washed. Dry cleaning liquid is filled in the respective tank
and it would be sprayed onto the apparels. Safety features include auto lock upon
commencement of the steaming and child lock mode to prevent children from
opening the closet. Essential oils can be added in the diffuser compartment which will
disperse the scent onto the clothes.

Quality:
The iSteam will be built for performance. With a built-in high resistance tampered
glass, the iSteam is able to withstand high heats and is safe for use. Quality checks
will be taken on each set to ensure that each product is free from defects and is
consistent in quality.

Style and Design:

The iSteam will take on a modern and chic style to complement
the furniture in most homes. Made of glass, the iSteam exudes
sleekness. It features a touch screen panel that allows consumers

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 to choose various functions, safety and heating modes. The
iSteam is designed to be compact yet able to hold many garments.

3.2 Branding
Philips’ brand ‘sense and simplicity’ is distinct and recognizable; Potential and
existing users who are looking for an easy-to-use, advanced dual functional steam
iron will definitely appreciate and gravitate to iSteam as good service, quality and
consistency is ensured.

3.3 Packaging
Eco-friendly materials such as biodegradable bubble wrap will be used to wrap the
iSteam to prevent scratches and breakage. After wrapping, the iSteam will be packed
into cardboard boxes filled with Styrofoam to act as extra cushioning in order to
secure it better. This will ensure the iSteam to be delivered to consumers in perfect
condition.

3.4 Labeling
The Philips logo will be mounted on the product packaging and iSteam itself. The
label on the packaging will indicate instructions of how to remove the packaging,
shipment details and compliances registered while the labels on the back of the
iSteam machine will state the voltage requirement, patents and compliances, safety
instructions and warnings, brand and trademark of the product. These will serve as
additional product information above the product manual.

3.5 Product Support Services

By providing incentives such as free maintenance every 6 months for the first 2 years,
we are encouraging consumers to provide feedback on the quality and performance of
the iSteam and be able to obtain ideas to improve it. Besides providing free delivery
services, we are also introducing a 10-day hassle-free exchange for our consumers. 2

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 years from purchase, consumers will be offered a 20% rebate to upgrade or trade-in
their existing iSteam.

4.0 Unique Selling Point

The unique selling point of our product is that it offers quality and efficiency to its user. Our
slogan would be ‘Perfection in a flash’.

5.0 Promotional Strategy and Tools

5.1 Sales Promotion
We will be giving short incentives targeted at final buyers to encourage them to try our
new product through customer promotions. This will reinforce the iSteam’s position and
build long term customer relationships. We will offer premiums, cash refunds and hold
contests to promote and arouse awareness on our new product. For premiums, we plan to
offer equivalents to what Philips is offering now; these include hair straighteners and
electronic toothbrushes. We would also have our own premiums that are specific to our
product; essential oil scents and additional hangers and clips. For the 1st 1000 customers,
there would be an early bird cash rebate of 5%. We plan to hold a televised contest in
which participants would have to compete in ironing a stack of clothes using a steam iron
against promoters using the iSteam within a given time frame. When the time is up, the
amount of clothes ironed will be counted and if the figure is identical to that of the
promoter’s, the iSteam will be awarded to the winning party for free. This would show
and raise awareness of how efficient iSteam is compared to the conventional steamer.
We will also offer trade promotions to convince our current resellers like Best Denki and
Courts to take in our new product, display it, promote it and persuade customers to buy it.
Since shelf space is limited, we can offer discounts, allowances and buy-back guarantees
to retailers to get our product on the shelf and keep it there.
To generate business leads, stimulate purchases, reward customers and motivate
salespeople, we will turn to business promotion tools. The tool that we would focus on to
promote our product would be trade shows. This will allow us to reach companies and
customers that we have not reached before. It will be a very good opportunity to

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 introduce iSteam and meet more customers. We would also be able to educate and
demonstrate to the customers with publications and audio visual materials on our iSteam.

5.2 Advertising
The iSteam will be advertised via visual ads such as videos on the internet and print
advertisements in magazines. Our advertisement will feature a catchy slogan and an
amusing theme to capture the attention and leave a strong impression on the viewer.
A 10 – 15 second video will be broadcasted on Channel News Asia during prime
time, 7 a.m. to 9 a.m., and 6 p.m. to 8 p.m. to maximize the viewership of our
intended target audience. Our print advertisement will be showcased in lifestyle
magazines such as Home and Décor and Cubes.

6.0 Conclusion
As Philips is the first company to pioneer such a product, it keeps to its promise of creating
new experience for its users and putting their needs as its first priority. iSteam will be a
favorable product that will receive high recognition from consumers.

7.0 Reference
 Key Household Characteristics and Household Income Trends, 2011
http://www.singstat.gov.sg/pubn/papers/people/pp-s18.pdf

 Singaporeans spend nearly USD12m on flat irons and steamers

http://sbr.com.sg/retail/more-news/singaporeans-spend-nearly-usd12m-flat-irons-and-
steamers

 Singapore Department of Statistics, 2010

http://www.singstat.gov.sg/pubn/papers/economy/ip-e36.pdf

 1 in 5 S’pore employees work more than eleven hours daily: survey

http://sg.news.yahoo.com/1-in-5-s%E2%80%99pore-employees-work-more-than-
eleven-hours-daily--survey.html