“” “ EZ-CLEAN R ” Bodnar, Jana Castrechini, Mariano G. Durmusoglu, Mehmet Groves, Natalie Stamiris, Tom July 24, 2006 EZ-LIFE R

Introduction EZ-LIFE R is a designer and manufacturer of home appliances n n 20 years experience in the market n n Recent market research highlights environmental concerns – –Energy & water cost of running a dishwasher – –Negative impacts of dishwasher detergent on the environment Survey results online at: / / n n Results of analysis gave birth to the: EZ-CLEAN R Dishwasher

Situation Analysis n Market Summary –Market size in Canada is approx 11M households –Homeowners account for 8M –6M homeowners have dishwashers

Situation Analysis n Market Potential –Canada is a mature and saturated market as related to kitchen appliances –Dishwasher sales seen as high potential growth –Retail volume sales of dishwashers is predicted to increase by 13% by 2008 –Kitchens often take first priority when it comes to household renovations –Functional improvements will be marginal, with a focus on efficiency, and noise reduction, operating cost, and water/energy consumption

Situation Analysis n Demographic Trends –Key trends affecting the sales of dishwashers: –changing economic conditions, appliance replacement rates, housing starts, energy costs and efficiency, designs and styles (Eurostyling), convenience and time saving n Consumer Behavior –Dishwasher seen as ” kitchen jewelery “ –94% of retail sales are built-in models –Space saving designs and functional convenience

Situation Analysis n Competitive Environment –Price Competition and retail consolidation –Retail-sponsored low rate financing –Deferred payment plans – stands above the “me too” products – EZ-CLEAN R stands above the “me too” products

Situation Analysis n Technology – uses patented “Cryogenic” technology – EZ-CLEAN R uses patented “Cryogenic” technology n Dry ice pellets used as a cleaning medium n Safe on dishes –Economically and ecologically viable n No secondary wastes – eliminates detergent use n Saves on Water, Electricity, and Time

Situation Analysis n Legal & Political Issues –Water and Energy efficiencies are key on political agendas n Federal Gov’t Energy Star programme n CSA driving the “30 Energy Efficiency Standards” n EnerGuide Label introduced in 1993 –Effect on Dishwasher Market n 37% avg annual reduction in energy use – will be 50% more energy efficient – EZ-CLEAN R will be 50% more energy efficient

Overall Assessment of Opportunity n Energy Efficient Dishwashers –Lower energy/water consumption –Reduction in running time and noise levels –Elimination of secondary wastes n Favorable Economic Conditions –Low interest rates –Stable employment – security n Housing Market / Home Improvements –Strong Housing demand –Kitchen is focal point of renovations

Objectives and Action Plans n Primary Target Market –Homeowners –Potential market is 8M n Objective –5 – yr plan n Capture 15% of market n 380,000 units –Sales 132.5M $CDN –PBILT 34.5M $CDN 27% Margin

Objectives and Action Plans n Product – falls within a Product-Development Strategy – EZ-CLEAN R falls within a Product-Development Strategy –Customer Solution n Addresses Consumer needs in terms of –Energy Conservation –Product Performance

Objectives and Action Plans n Place – Launch in Major Canadian Cities n Halifax, Montreal, Toronto and Vancouver –Convenience to Purchase n Available through major retailers

Objectives and Action Plans n Price – Strategy is to penetrate and gain market share –Customer Cost n Price in line with Marketing survey n Factors in $$ savings to consumer n “Pays for itself”

Objectives and Action Plans n Promotion – Marketing communication mix n Blend of above the line and below the line promotions –Communication to Consumer n Advertising n Sales Promotion n Events n Public Relations / Publicity

Objectives and Action Plans n Comparing to Competitors – Competitors designs have remained unchanged – No major differentiation exists – Pricing is not a deal-breaker

Product / Price EZ- CLEAN R 699 $ CDN Retail Price

Financial 5-YR Plan Capture 15% Market Unit Cost 275$CDN Sales 132.5M $CDN PBILT 34.5M $CDN 18% 27% Margin

Promotional n Launch in Major Canadian Cities –Halifax, Montreal, Toronto and Vancouver n Sequence of launch events will be identical in all markets

Promotional

Summary Because You Deserve It ! Thank You on Behalf of EZ- CLEAN R EZ-LIFE R