2016

6/7/2016

Green Shower Project

Rong Qu Yingzi Chen

Ziling Liu Xinheng Li

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Table of Contents

ABSTRACT ............................................................................................ 3

INTRODUCTION ............................................................................... 3 BACKGROUND ....................................................................................... 3

HISTORY ................................................................................................. 5 CONCEPT ............................................................................................. 8 TECHNOLOGY ........................................................................................ 9

BUDGET ................................................................................................. 10

MARKET .............................................................................................. 15 MARKETING .................................................................................... 16

INDUSTRY ........................................................................................... 17 FUTURE EXPECTATION .......................................................... 26 CONCLUSION .............................................................................. 28 REFERENCE ..................................................................................... 29

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ABSTRACT

The water shortage and the waste of water has become a serious problem around the world and our campus. In this report, we introduce our product Green Shower system as a solution to this problem. As there are more people supporting the idea of “green revolution, the demand for water saving products has been growing in recent years. An ideal place to massively apply water conserving products would be various universities across the U.S. Every year, a big amount of money is expensed on water. Using water saving product could effectively help solving this problem. We plan to start our business at Purdue first. We want to tell you that our product has great potential to help lower the water usage. The installation of the Green Shower System could have positive effects on the conservation of water around the world, as well as on Purdue campus.

INTRODUCTION As we all know, water is one of the most valuable resources in the world. Without water, humans could only survive no longer than five days and all species on the earth are in danger of extinction. However, recent studies have shown that water scarcity is becoming one of the biggest challenges in 21st century.

According to Brandt in 2015, there are more than 750 million people that don’t have enough drinking water in the world. (Brandt, Y, 2015) This is almost 10 percent of the global population! According to United States Environmental Protection Agency in 2014, 200 billion gallons of water are wasted from taking shower in the United States each year. This amount of water can save at least 5 million people in the world. The huge amount of water people wasted on shower drives us to find out how people could save water from taking shower.

BACKGROUND Water is a very limited and valuable resource. It seems that there is plenty of water on the earth, however humans can use only 0.007% of it. (Thompson, S. A., 17). Most of water resources are oceans or ice, which are hard to use directly. The sea water is salty and bitter which make it hard to drink and irrigate. Although many scientists are studying the method of using ice, the

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current technical conditions still cannot satisfy large-scale use. The water resources that people could use are river, freshwater, lake and shallow groundwater. The biggest part of freshwater is underground water, which would require a lot of techniques and money to mine. The amount of water that can be directly used by humans every year is 9,000 cubic kilometers, which is only 29% of standard amount to support the global population.

Many people in the world are facing the water scarcity issue. (Rijsberman, F. R., 3) The freshwater resources that can feed and sustain all life are quite imbalanced at the regional distribution. America is relatively well off, but China and India, with over a third of the world’s population, have less than 10% of global water. Many countries in the Middle East even don’t have one small river or any drinkable water resource. According to Rijsberman in 2006, the 40% of people from 80 countries in the world do not have enough freshwater and about 300

million people are severely water-stressed. Unlike America, many small countries in Africa or Asia have to share rivers or lakes with each other. If upstream countries increase the water consumption, downstream countries would not have enough water and may suffer from drought. The disagreements on the water distribution are main reason of political disputes or even armed conflicts in the Middle East and Africa. The same study has shown that this water-shortage condition is getting worse year by year. From 1900-1975, the agricultural water consumption increased by seven times and industrial water consumption increased by 20 times. In recent decades, water consumption continues to grow at 4-8% per year. If

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water consumption continues to increase at this speed, 4 billion people will not have enough water by 2025

Water scarcity will lead to the lack of water resource, which decrease living standards and worsen water-related health problems (Pereira, L. S., Cordery, I., & Iacovides, I., 29). In the areas with water shortage, people are living low-standard lives. Drinking clean water and taking a shower are just wishes to these people. For most of people in water-shortage areas, the only chance to drink fresh and unpolluted water is raining. In some countries in Central Africa, many people even never take a real shower during their whole life. Besides, it is hard for a water-shortage country to develop basic industries without water. These people are living totally pre-industrial life because they do not have food, textile or furniture industries to meet people’s basic needs. These low standard industrial countries have been ruled out from the international trade, causing them poorer and more laggard.

Hunger and diseases are most common problems. (Pereira, L. S., Cordery, I., & Iacovides, I., 34) Water plays a dominant role in irrigation and breeding aquatics. Famine always comes after drought. Currently, one billion people are starving and nearly 3 million people starve to death every year. Every six seconds, a child is starved

to death because of lack of water resource. Also, if people drink polluted water for a long time, many infectious diseases will emerge and easily escalate into pandemics, causing people to suffer from illness

HISTORY Waste of water and water pollution are severe in countries with an abundance of water in recent years. Families, agriculture, and industries all have bad habits of wasting water. (Solomon, S., 2011)

Many people do not have habits of saving water in daily life, making millions of gallons of water used inefficiently while brushing their teeth, washing clothes, and taking a shower.

Improper agricultural irrigation is the largest part of water waste. The current method of agricultural irrigation is very inefficient,

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making about the half of water leak and evaporate. One cubic meter of irrigation water comes from rivers and lakes, only 0.45 cubic meters of them can stay in the field. From the 20th century to now, the industrial water consumption increased by 20 times, causing the conflict between living and developing to become more serious.

Water pollution is also a significant reason. It wastes so much clean water which could support millions of people. (Cosgrove, W. J., & Rijsberman, F. R., 24) According to Cosgrove and Rijsberman in 2014, agricultural pollution has been a leading source of many environmental problems such as water pollution in the world. (P.24) The overuse of chemical fertilizers and pesticides can pollute many rivers. The low control of livestock waste in grazing areas is also a huge problem. Along with the development of the economy, industrial pollution becomes more severe in many aspects. (Cosgrove, W. J., & Rijsberman, F. R., 2014) In some countries with low emission standards, chemical plants discard waste products into rivers for their convenience, leading to severe water contamination. Every year, a large number of industrial countries dump millions of tons of waste into the sea, such as water sludge, industrial waste, and even radioactive waste. In addition, oil spill is a main cause of marine pollution and the formation of oil slicks can impact marine life to poison humans through the food chain. Water scarcity and water wasting has become a great challenge in the world. It also causes serious problems in our campus.

The amount of water available to a country has a direct correlation to living standards. According to United States Environmental Protection Agency in 2014, a person consumes an average amount of 200 gallons water each day. Most people in the U.S. probably use a large amount of water every day, far more

than most of the world has access to. Also, as mentioned before, almost 10

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percent people already do not have enough drinking water in the world. In other words, this means one day, all the people in the world may face water shortage problem if we do not think about how to save water.

We conducted two separate interviews with Lindemood, current manager of Shreve Hall and Yiwen, who is currently living in Shreve Hall. We also sent out a survey around campus and collected more than 70 results. The results show that showering on campus wastes a lot of water, and students agree there needs to be a change.

Our group conducted a survey on college students’ showering habits, collecting a total of 70 results from different residential halls, which included 30 males and 40 females. On average students shower six to seven times each week. In addition to this, the results showed that 70% students have to wait for an available shower at least one time each week. Besides, our survey indicates that students on average spend more than 15 min on shower every time, which is almost 40-gallon water!

Once we learned this, we had a short interview with Yiwen, a resident of Shreve Hall, to discuss his feelings of waiting for an available shower. He complained that some students spend almost 30 minutes in the shower, which not only wastes a lot of water, but is also a huge inconvenience to other students. He also agreed that because of the global water shortage, it is necessary for our university to develop a water saving system that reduces the amount of water wasted.

The large amount of water usage in the dorms is costly. We had an interview with Lindemood, current manager of Shreve Hall in 2016 to discuss the water usage in the dorms here at Purdue. Due to lack of water saving consciousness and products, Shreve Hall consumes total of 840,000 gallons water each month. This amount of water usage leads to a cost of about $4,000

every month. This is just for one residential hall! This large amount of water usage has driven colleges to install water-saving products around our campus. In the recently opened Study Hall in Shreve Hall, the bathroom contains the latest water saving products to help students already increase their water-saving consciousness in a way and reduce water expenses as well.

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At the end of the interview with Lindemood, he mentioned that Purdue will continue working on finding the best way to help our school reduce the amount of wasted water.

CONCEPT The water shortage and the waste of water has become a serious problem around the world and our campus. The installation of the Green Shower System could have positive effects on the conservation of water and energy, as well as on Purdue campus.

The shower timer system will help make students more conscious of how long they’ve been in the shower. Many students in our survey indicated that they waste time in the shower. According to a report on Smith college done in 2011, a shower timer is useful in helping reduce the amount of water used (Mailloux, 23). By installing shower timer in our dorm, students more likely to spend less time on showering, which can help campus to reduce the amount of water used and also decrease water expense. This system could allow

for a large amount of water conservation.

According to The Environmental Magazine in 2008, Duke University is one of many schools that have taken necessary steps to reduce consumption and save water. They used the most water in the county and decided to implement 5,000 low flow shower heads across their campus. (Environmental Magazine, 2008) The university was able to reduce their water consumption by 26% making their university much more environmentally friendly. Our Green

Shower System could produce similar, if not better, results and bring Purdue into the ranks of colleges that are actively conserving water.

An article written by the staff from Best Colleges Online in 2011, a website keeping up with newest trends among colleges across the nation, indicates that similar action was taken by Oberlin College, a school located in Ohio. They used 30 efficient shower heads replaced older, inefficient ones in one of their dorms. The college spent about $900 on the project, but saved $866 within the first year. (20

innovative ways colleges are saving money, 19) Currently, large amount of expenses within the dorms at Purdue are water expenses. That amount is spent on almost 800,000 gallons of water currently being used. With the

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Green Shower Systems reducing the gallons used per month to nearly 280,000 gallons, the costs will also reduce immensely. Costs could reduce by nearly 2,666 dollars. With the saved water and energy, more can go into the school as well. According to an undated article published by Home Water Works, the average water flow on showering is about 2.1 gallons per minute, using an average of 17.2 gallons of water every 8.2 minutes. The Green Shower website indicates that after a certain amount of selected time, the Green shower will cut the water flow by ⅔, ultimately saving an average of 11.5 gallons of water every 8.2 minutes. (Going with the flow, 2011) With the number of showers and shower times found by our survey, we can expect large savings for Purdue. Purdue would save an immense amount of water by using this system. As previously stated, Shreve Hall alone consumes almost 800,000 gallons of water per month. If the Green Shower is implemented, Shreve hall could save up to half amount of water per month.

Decreasing the water flow would cause a reduction in costs across campus as well. The same article written by The Environmental Magazine in 2008 indicates that another university was able to better their environment with the energy they saved. The University of California in Santa Barbara installed shower heads that had reduced water flow across campus. With their reclaimed

water, 94% their campus grounds are greener. (Environmental Magazine, 2008) According to an undated site published by the Purdue’s Office of University Sustainability, the school already implements a similar energy saving program. Food waste from dining courts generate 795,937 kilowatts of energy for electricity, saving the university $20,475 in a year. The water that is saved by using the Green Shower System could be reused in whatever way the University sees fit, whether it be through fountains, sprinklers, etc.

TECHNOLOGY Water provider have determined that long showers are one of the biggest water wasters in our daily life. The amount of water wasted is more seriously in the public bathroom such as school dormitory, beach bathroom and public hot spring bathroom. People usually are not pay attention to the time spend on shower, and this situation will cause a great amount of unnecessary water wasted each year and make energy bills heavier. To avoiding this situation,

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implementing the green shower is necessary. Green shower is a water conserving system for the public bathroom.

The green shower is a new kind of technology designed to control the pressure and flow changes to conserve water efficiently. Green shower was designed to be installed between the showerhead and the pipe. Green shower can control the pressure and the water flow from the shower head to increase the water using efficiency. As our common sense, people usually not stop the flowing water during shampooing, because they have to wait for hot water after they restart the showerhead. In order to change this situation, green shower has the pause button to break down shower when people shampooing. However, the pause feature will not affect hot water flowing in the tube, so people do not need to wait for hot water when they restart the showerhead after shampooing. Green shower is also designed to control the showering times and to limiting shower water usage. Green shower has the alarm feature; it can remind people who much shower time left. Additionally, green shower has swipe payment feature. Swipe payment feature is for the people who want to extend their shower time, they can pay for extra shower time. By installed green shower in the public bathroom, the local can lower the energy bill and save more water.

Green shower is a programmable water flow control showering valve device. It contains a CPU for processing logic circuits, timers, an alarm, a magnetic sensor, and swipe payment information. Green shower has a solar panel to charge a battery within. Following figures show how the system works for flow controlling.

BUDGET Manufacture Cost

Our project uses Shower managers, low flow showerheads, and card readers to form the Green Shower Project.

Shower Manage

In 2004, Donald D. Brunkhardt invented the shower manager in order to control the length of shower. Shower manager is a “device attaches to the showerhead” to save water by cutting flow rate (India Energy News, 2014). According to the description of this product, customers can set three levels of time limits: 5, 8, and 11 minutes. 60 seconds before the preset condition, an alert tone will ring and the water will cut off 2/3 when the preset time limit is reached (Winters, 2007). And in 2010, a new type of shower manager was

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available on the website. As India Energy News said, with the new products, people can set time limit longer than 18 minutes and cut only 1/3 of the water flow (India Energy News, 2014). As Google Patent states, Shower Managers are products with patent. The patent was published as US6899133 and the original assignee was Donald D. Brunkhardt, the CEO and founder of Shower Manager (Google Patent, 2013)

Shower manager becomes an important part of our system, and we have searched three webpages selling shower managers (the only brand), and the lowest prices from each resource is showed below:

Amazon EBay Shower Manager (patent holder)

$149+$5.49 (Shipping) $179.03+$27.83 (Shipping)

$340 for 3 (About $113.33 each)

Obviously, purchasing products from Shower Manager is the cheapest option. I am confident that if we sign a contract with Shower Manager to order more products, we can get lower than $113.33 for each one we purchase. Since different customers may need different time of showering, we are going to talk to Shower Manager to design the most appropriate models of shower manager with customers’ required time limit and amount of water being cut.

Low Flow Showerheads

According to the United States Environmental Protection Agency (EPA), the standard showerheads have a flow rate of 2.5 gpm, which means they use 2.5 gallons of water per minutes (EPA). What we plan to have in the system are the showerheads with WaterSense label. A showerhead with WaterSense label must have a flow rate of 2.0 gpm at most, which means it save at least 1/5 of the water we use for showering. Many people may think with a low flow showerhead, they will spend more time on showering because the water is not enough. Actually a low flow showerhead will not influence showering time. When people take a shower, some of the water is not exactly used; it is wasted and the low flow showerhead works to cut this part of wasting.

Also, we can decide to purchase showerheads from other companies and we do a price research at Home Depot. We find that the range of the prices of low flow showerheads is huge. According to the Home Depot, the price of a new low flow showerhead can be lower than $20 or higher than $100. It very depends on the features it has and I can just purchase the one our customer needs. I pick 4 types of showerheads from the same brand to see how the price varies with feather (the Home Depot, 2016).

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Waterpik E/O Series Name Vardon Kent Cascadia Torrrent Price ($) 17.98 33.23 45 42.97 Finish Material Nickel Chrome Chrome Chrome Flow Rate (gallons/minute)

2.0 2.0 2.0 2.0

Number of Spray Setting

5 7 2 9

Features Low flow, Self-cleaning Nozzles

Low flow, Self-cleaning Nozzles

Adjustable Angle, Low flow, Self-cleaning Nozzles

Adjustable Flow Rate, Low flow, Self-cleaning Nozzles

The lowest price is $17.98 of Vardon. It has a fair number of spray setting (5) and the self-cleaning nozzles. We will order it for our project because it has enough features for a public shower stall.

Card Readers

We can find card readers everywhere, especially when we pay for something. Many companies and organizations use cards to store information of their employees. For example, students of Purdue University use student ID for all most everything. They use ID to get into dining court, to store information, to pay for vending machines and laundry, etc.

We are going to apply the card swiping system in the Green Shower Project. A card reader in our system works to control and reset the shower devices. When a user swipes the card, the shower manager will be reset and start to count. The card reader also connects to the water meter to charge the users for the extra water they use. The charging will start 1 minute after the preset time limit. And the flow rate will not be recovered until someone swipe the card and reset it again. This is the core of our service and we are going to develop it on our own. The coding to make the whole system successfully is easy, so it will not cost much. We are going to give a budget of $300 to our programmers to complete the software/coding of the device. Besides the software, we also have to deal with the hardware – the card reader. The price

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of the card readers is not too high. According to Amazon, a simple style of card swiper with USB only cost $18.95 and we will order this one (Amazon, 2016).

Yosoo MSR90 USB Magnetic Strip Card Reader 3 Tracks Mini Mag Hi-Co Swiper

$18.95

Magtek USB Swiper – P/N 21073075 $76.77

Non-Manufacture Cost Besides the expense of manufacturing and purchasing products, we also need to pay for the following: salespersons’ salary and commission, after-sales service, and marketing and advertising cost. We have a total budget of $5000 of marketing and we plan to use the money as the following:

Salespersons’ Salary and Commission

We have to pay the salespersons their basic salaries ($8 per hour) and commission (about $10 per system). They are going use our database to find possible customers or use their experience and personal relationship to find customers. Salespersons with helpful experience and personal relationship will be given higher basic salaries but the commission will be the same. This will not be a huge cost if we just hire 5 salespersons.

The total salary for 5 salespersons is $40 per hour. More or fewer people will be hired if the sales amount changes. Also, salaries and commission may vary with the real situation.

After-sales Service

We will set up our after-sales service department because the better service we provide. The better reputation we will have. With a better reputation, more customers would like to buy our products. We do not need an office for after-sales department because we just hire people for phone call service and on-

Salespersons expense

Basic Salary Commission

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site service. Therefore, our employees can work at everywhere. In an after-sales service department, we have 10 people paid $15 per hour worked as the technology support. Seven of them will be assigned to help customers in person to set up the system and solve technology problems. Three of them will answer phone call to give advice and solve simple problems. Also, 3 more people will be hired to answer general questions on phone call, for example, products refund or exchange. These 3 people will have the salary of $10 per hour.

The total cost of after-sales service is $180 per hour. The exact number of employees will be depended on the situation.

Marketing and Advertising Cost

We do not have enough budgets to post commercial on television because we only have $5000 in total. However, there are some cheap ways to advertise. We can post something on local newspaper or magazines, such as Exponent. It will just cost $200 to post a piece of advertisement on them. We can also make some posters and flyers that cost at most a few dollars for each. In addition, using social media is a famous and cheap way to advertise. Most of the time, posting information of product on Facebook or Twitter has no cost at all. Besides advertising cost, we have to use about $1000 to do research to find possible customers and then get a chance to talk to them. This will be discussed with more details at Marketing Strategy.

Total Expense

Every dorm at Purdue has more than 60 shower stalls, for example, Meredith Hall has 64. Therefore, we are going to manufacture 500 units of Green Showers. Including the manufacture cost and non-manufacture cost, the total expense of making 500 units of Green Shower Projects will be as the

Working locationsPositionsAfter-sales

Department

13 employees in total

10 employees of technology

support

3 employees work through phone call

7 employees work on-site

3 employees answering

general questions

3 employees work through phone call

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following: Green Shower Project (unit: dollar)

1 Shower Manager 113.33*500 = 56,665 1 Vardon Low Flow Showerhead 17.98*500 = 8,990 1 Card Reader 18.95*500 = 9,475 150.26*500 = 75,130 Programming 300 5 Salespersons (8 hours/day) 8*8*5 = 320 /day Commission 500*10 = 5,000 13 Employees for After-Sales Service (8 hours/day)

15*13*8 = 1,560/day

Advertisement 200 Research 1,000 Total 81,630 + 1,560/day Assume that we can sale 500 units per day: Average Cost per unit per day= $166.38

MARKET We are targeting Purdue University first because it is the local university and it has 7 dormitories and 2 additional villages. Our goal is installing our project at all bathrooms. After selling products to Purdue, we will target other schools, companies and organizations providing house living with water fee included (Figure 8). Also, public showers stalls provided at the waterparks, swimming pools, gyms, and the beach will need our system. These customers either run their own business or funded by the government. They always have limited budgets so they want to save every cent. Our product seems attractive to them because with our system, they can save lots of money from saving water.

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MARKETING Our Marketing Strategy

To sell our products, we have to do research first. We will find the amount of water used annually of the customer and find that if the users have the consciousness of saving water or not. Our team of marketing can buy database from others or do a survey to get data supporting our project. Appropriate amount of commercials are necessary to form a nice reputation of our product. Since we are not selling the product to everyone, we need to find the right and cheap way of advertising so that only or at least the targeting customers can get to know it. Emailing or calling the possible customers to introduction the advantages of using our Green Shower system is a good way to do so.

Proposed Profit

If our company can reach the goal to set different store in several counties, our profit could perform effectively. The ideal selling amount for our shower system is 100,000 based on current market. With the individual selling price about 200 dollars each system. The total amount of revenue that we would like to achieve would be 20 million per year. These water systems could be sold to different universities and other places in different countries. In order to sell our product in a global trade model, the counties that we are interested to sell the products with are China, the United States, Canada, Mexico, the United Kingdom, and India. Those counties have great amount of target customers that we can sell the product to.

High trade flowing countries helps the products sell in a faster rate. Also, these counties have different demand on water saving product. For example, America According to the Earth Easy website, “In 1990, 30 states in the US reported 'water-stress' conditions. In 2000, the number of states reporting water-stress rose to 40. In 2009, the number rose to 45. There is a worsening trend in water supply nationwide. Taking measures at home to conserve water not only saves you money, it also is of benefit to the greater community.” ("Water Conservation: 25 ways to conserve water in the home and yard | Eartheasy.com," n.d.).

By using our water system, the stress of using water resource could be helped in an effectively way. As the information showed previously, the demand for water saving products is great in America. Considered of replacing rate in universities and different demand for water saving product, the revenue that we are aim to make might vary in time. However, our water systems have potential profitability to make ideal revenue in a long run.

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Another thing to consider is that expansion and spin-off could bring more profit to our business. Producing more different kinds of products could help our business keep competitive feature in the market. Expanding our business and open more stores will not only increase our selling amount, but also improve our business credibility. One of the strategy we plan to implement is expanding our business to different countries in order to improve the influence of our shower system. As the information showed on Inc’s website, “Trade is by its very nature a reciprocal activity. Not surprisingly, the United States' top nine trading partners, established by adding both exports to them to imports received from them, are also in the top 15 of export and of import viewed separately.” ("Global Business - Encyclopedia - Business Terms | Inc.com," n.d.).

International trade becomes much popular than before, thinking about business in a bigger view can help the business achieve long-run goal and long-term profit.

INDUSTRY Marketing Strategy of Competitors

Waterpik

According to the Waterpik’s website, “Water Pik, Inc. has been a leader in developing personal and oral health care products for the entire family since 1962. We have acquired many patents for our innovations, and Waterpik®products are recognized for award-winning design and technology” ("About Water Pik, Inc," n.d.). The Waterpik company selling and develop the products such as showerhead and oral health support.

Most of its products has reasonable pricing and positive feedbacks from its customers. The pricing for showerhead is around 30 dollars ("Waterpik Shower Head | eBay," n.d.). This company has high business performance because its powerful showerhead performance, stylish designs and innovations, and best-in class performance ("Why Waterpik Shower Heads," n.d.).

The Waterpik company has its competitive advantage because it focused on showerhead and oral health service. These product includes low-flow showerhead, has great selling amount. Overall�the Waterpik company stand

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on a competitive position in current water saving market. Thousands of customers give positive feedback because of their quality products.

Although our Product has relatively expensive price than Waterpik’s pricing. We are confident that our well-designed product could bring good showering experience for customers.

Home Depot

As the information showed on Home Depot’s website, “Today, The Home Depot® is the world's largest home improvement specialty retailer, with more than 2,200 retail stores in the United States (including Puerto Rico and the U.S. Virgin Islands), Canada, and Mexico. The Home Depot’s stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor's 500 index.” According to Home Depot’s financial review, they make the revenue of 22.8 million with the gross margin of 34.2% of sales. Their revenue and selling performance are steady and keep increasing each year. The average pricing of its showerhead is around 50 dollars ("Home," n.d.). The pricing is kind of expensive but a lot of customers still choose to use their products and give positive feedbacks.

They have competitive advantage in the market because their products have different functions that satisfy its customers and well-known company marketing strategies. As the information showed on their website, their retail store stays in different place across counties. This strategy is effective because greater amount of customers in different counties are going to buy their products.

Our company plan to set our retail store in different counties to achieve international trade because different country has different need of products that save water. When people are choosing from different products, they usually will choose the companies that they trust with. Home Depot is a famous company name among other competitors. They are the world’s largest home improvement specialty retailer; it has a great amount of customers to sell the products to.

One aspect that both of our company have is variety of function. Not just cut the water flow, but also attracts more customers.

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Delta Faucet

Delta faucet company, aim to provide its customers with better experience of using water products. Their strategies are providing different products at people’s room such as kitchen and bathroom. Their target customers are mainly for individual family. They have professional customer service ("Delta Advertising: Company: Delta Faucet," n.d.). This company has good advertising strategies, the commercial videos on their website expressed their product’s information in detail.

With this effective commercial advertising, more and more customers know this company and their water products, their business performance also perform with good quality. However, the average pricing for its showerhead is around 100 dollars. Compared to other companies, their price is more expensive, this might be a disadvantage for them. For our product, we are going to set our products in a reasonable pricing so our products can be favorable to our customers such as universities and other places.

We have not considered the advertising expense. Advertisement is important for business company like us to improve influence. Being well-known to our customers could help increase the selling amount of our products.

Homary

According to Homary’s website, “Homary is an established company based in China. By bringing products directly from manufacturers to your door, without fancy showrooms, middleman and additional value of brands, we pass along the savings to customers with low prices. Homary offers only the highest quality products from trusted and professional manufacturers – often the

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same as big brand names. We travel all around China to find you the best home goods factories. The manufacturers we cooperate with have produced and exported goods worldwide for years, especially to North America, Europe and Australia.” ("LED Shower System Ceiling Mount Rain Head & 6 Body Sprays," n.d.). Their LED showerhead is special in the market, and many customers need this special showerhead in their house. Therefore, it has great amount of customers that buying their LED showerhead.

We could also come up with some additional function that customer need. For now, our target buyers are different universities and big companies that need products that save water. However, in the future, improving the amount of individual buyers becomes crucial for our selling strategy. Adding specialty to our Shower System helps attracting more potential individual buyers. Another company feature of Homary is that their location is based in China. One of the goal of our company is expand our business in a global position. China would be a good place to sell the product with since the demand is great there. We plan to establish industries in China. Expanding business to other country such as China helps business development a lot. Our company is going to utilize global trade advantage combined with spin-off strategy, develop more products as needed.

One thing that we have not think about is lighting. Adding more colors to our product can favor our customer’s needs. Another thing is the global expansion strategy, make our product sell in a worldwide range. Selling our product in different countries can effectively improve our company’s reputation.

Technology of Competitors

According to the competition policy report, there are two categories of water saving products and they are indoor product and outdoor product. “For indoor, conserve water at home and save money with low flow faucet aerators, shower heads, toilet float boosters and more. For outdoor, save water in yard and garden with our top of the line rain barrels, soaker hoses, and other outdoor water conservation products.” (Motta, Massimo, 2004, p. xx). 6 There are top six of our competitors and they are the shower manager, high efficiency faucet aerators, water efficient shower heads, adjustable toilet flapper, and premium shower filtration system and water flow valves. Those products are horizontal competitor as the information mentioned before. As a company, we will list our horizontal competitor out and analysis our competition advantage in order to sell more products in the market

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High Efficiency Faucet Aerators

As the information showed on WaterSense Company’s website, “Most modern faucets come with an aerator rated around 2.5 Gallons per Minute, and their older counterparts can be as high as 5 Gallons per Minute. Installing a more efficient aerator, rated from 0.5 Gallons Per Minute -1.5 Gallons Per Minute can add up to significant savings.” (WaterSense Labeled Sink Faucets & Accessories | WaterSense | US EPA, n.d., p. xx). People could save the water resource by following this information. The process of replacing the old aerator to a new one can be done by following the instructions. “Firstly, remove the old aerator from the faucet. Secondly, insure the threads and innards of the faucet are clean and free of debris. This will help ensure that the new aerator will fit properly into the faucet without leaking. Thirdly, place the new, more efficient aerator into the faucet. Fourthly, tighten to the appropriate level. Finally, turn on the faucet to ensure a proper fit.” (WaterSense Labeled Sink Faucets & Accessories | WaterSense | US EPA, n.d., p. xx). The high efficiency faucet aerators effectively saved water resource and it is easy to install at people’s house. Because the instruction is easy to follow, people can set up the high efficiency faucet aerators by themselves. This product effectively utilizes the water flow rate to achieve water conservation. It is a competitive water saving product in the market.

According to the Patent website, “An object of this invention is to provide a kind of faucet to users who can control the adjustment of the water flow. With this mode of operation, water flow can be synchronized to convert its water resistance, adjust the velocity of flow, and regulate the applicable water shape.” ("Patent US20130105016 - Water faucet -Google Patent," n.d.). This high efficiency faucet aerator provides people with better water experience. Similar to other top rating water saving products, the high efficiency faucet aerators also have positive feedback from its customers. This kind of product is easy to use and convenient in people’s lives. Therefore, more people started using this product at home. Overall, it performs with high quality in water saving market and provides people with good using experience.

Overviewing the whole industry, high efficiency faucet aerators has the most potential to save water because faucet has high using frequency. However, high efficiency faucet cannot save water if people forget turn it off. In order to save more water, using shower manger system can help people to form the water conservation habit.

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Water Efficient Shower Heads

According to Water Sense and Water Efficient Products’ website, low-flow showerhead mostly has relatively low water flow rate. In the market, the normal showerhead has 2.5 gallons per minute flow rate. Lowflow showerhead does save relatively more water compare to the normal showerhead. This kind of low-flow showerhead provides users with enough water while saving water. It has high rating from consumers because of water saving property and enough water spray pressure. And customers give positive feedbacks on this product. This kind of product cost around 40 dollars each which is a reasonable price in today’s market. This pricing is competitive among other products ("Water Sense and Water Efficient Products," n.d.). This kind of product is self-cleaned; this feature makes the clean process becomes much easier. In other words, this advantage of water efficient shower heads has the ability of not only save water by cutting the water flow, but also clean the showering water that people use to make the shower quality much better.

As the information shown on Water Efficient Shower Heads patent website, “This invention relates to a shower head which combines an internal self-cleaning action and the ability to generate a variable spray as desired. The shower head also includes a water saving function and an integral shut-off whereby the spray may be varied from a fine, variable spray, to a coarse spray, to a powerful needle stream, to a heavy rinse stream that pulsates.” ("Patent US4614303 - Water saving shower head -Google Patent," n.d.) The low-flow showerhead acts efficiently of water saving. Because of its high efficient quality, customers give positive feedback to this product. The water efficient showerhead on Home Depot website introduced well how much people could save from using this water saving product. “The average household could save more than 2,900 gallons per year by installing WaterSense® labeled showerheads. Since these water savings will reduce demands on water heaters, households will also save energy. In fact, a household could save enough to power its television use for about a year.” ("Water Efficient Showerheads | Eco Options at the Home Depot," n.d.). This information shoed that water efficient products acts a crucial role in water conservation activities by effectively cuts the water rate to a low flowing rate.

Comparing to green shower, the low- flow shower heads are more like an enhance sub-product instead of competitor product. Combine using the water efficient shower heads with green shower can improve the water conservation level.

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Adjustable Toilet Flapper

According to The adjustable toilet flapper is function for changing water flow rate to a relatively low rate. The good thing about this product is that the water flow rate can be determined by its users. People have the choice to decide how much water they want to flush for their toilet. 2.5 gallons saving rate functions effectively on water conservation. The price for this adjustable toilet flapper is 6 dollars. It is not as expensive as the low-flow showerhead. The pricing for this adjustable toilet flapper is more competitive than the low-flow showerhead. Changing the old utilities to low flow rate toilet flapper could be a good choice for people who want to adjust their toilet’s flushing rate ("Indoor Water Conservation in the Home | Eartheasy.com," n.d.). The information shown on the Patent website also explained well that how the adjustable toilet flapper works, “An improved flapper valve has an elastomeric surrounding flapper valve top. A separate inverted domelike structure, or cone, which is the ballast, is included for insertion into the flapper valve top. The improved flapper valve further includes a ring-like upper structure and a cap-like bottom structure.” ("Patent US20140059756 - Two-way adjustable toilet flapper valve and assembly - Google Patent," n.d.). The adjusting feature enables people to set the water flow that they prefer. However, its bottom structure maximizes the water consumption rate. The disadvantage that adjustable toilet flapper sometimes wastes the water resource by automatically maximizes the water flow rate. Even though people can make they own choice about how much water flow rate they want in order to save water, this adjustable toilet flapper does they want in order to save water, this adjustable toilet flapper does a require timely replacing require timely replacing to a new one.

As the information shown on Patent website, “Used together, the upper and bottom structures can minimize water consumption by the toilet. Further, the adjuster structure includes means for discretely changing settings with indicia to indicate to the user what the current setting is and means for maintaining that setting as may be desired or required.” ("Patent US20140059756 - Two-way

adjustable toilet flapper valve and assembly -Google Patent," n.d.). In conclusion, the adjustable toilet flapper is easy to use and act efficiently. This product has competitive advantage in water saving market. Many of its customers give positive feedbacks on this product and they have good selling records on different website.

Adjustable toilet flapper is a horizontal competitor product compare with green shower. Adjustable toilet flapper and green shower both designed for a same goal: water conversation. Adjustable toilet flapper is a worthy develop area in the future, we will consider design a new kind of product in this field.

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Premium Shower Filtration System

The premium shower filtration system changes the water flow rate and remove toxic things from skin. Chorine harms people’s skin health. Chorine removing property improves people’s skin health and it fits well for standard showers. This kind of product has both the function of water conservation and chorine removing property which can attract consumers to use it. The price for premium shower filtration system is cost around 32 dollars which is a competitive pricing in the market. This product removes toxic element from skin in order to improve skin’s health. ("Shower Filter Systems & Shower Head Filters | WaterChef," n.d.).

According to google patents, “premium shower filtration system is disclosed comprising a cap having an input port connectable to shower arm and output port connectable to a showerhead, a filter assembly engage able to and supportable by the cap, and a housing disposed about the filter assembly and engage able to the cap.” ("Patents US20130319929 - Shower Filter – Google Patent," n.d.)

Shower Manager

Shower manager can help people save enough water to meet or even exceed the required restriction. Shower manager is an automatic shower timer that limits shower times automatically. Shower manager keeps shower showers by following processes. First, it limits full-flow times on 5, 8 or 11 minutes. Second, it alerts 60 seconds before flow cut and leaves just enough flow to finish rinsing off. Finally, it gives 5-minute reset time prevents extending shower. By setting up shower manager, it can shorter people shower time. And by using the shower manager day by day, shower manager helps people to make a good habit of shower ("Shower Manager - The Automatic Shower Timer," n.d.).

According to Shower Manager’s website, learning how to install the showerhead is being important method that people 11 should learn from. The instruction is as following. “Firstly, remove showerhead. Secondly, carefully thread the shower manager onto the supply pipe until snug, then hand-tighten just enough to stop water leak. Lastly, replace the shower head, being careful not over-tighten as this can damage until and void the warranty.” ("Shower

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Manager," n.d.). An additional step is configuring the shower manager. “To configuring the shower manager, you should set the time internal for your showers, the shower manager comes with a special magnetic key. When the key is placed in exactly the right position on the device the Shower Manager beeps. 1 Beep = 5 minutes, 2 Beeps = 8 minutes, and 3 Beeps = 11 minutes.” If people need to change their time set for shower manager, just simply change repeat the magnet on the line. The users should hold the shower manager until the number of beeps going to their time settings ("Shower Manager," n.d.).

Also, as the information shown on Patent website, “While no shower device satisfies every consideration, the intent of the Shower Manager is to give the bather a taste of both worlds. That is, an initial period of time wherein the bather can enjoy a full flow or unrestricted flow of water and a subsequent conservation flow or restricted flow of water if the bather does not finish within the full flow cycle.” ("Patent US6899133 - Timed shower valve manager - Google Patent," n.d.). The shower manager helps limit the water flow rate. Its hand-free operation provides people with even better using experience. As the information mentioned before, the shower manager is easy to install and easy to use. This is the reason why it is popular in water saving market. A great amount of customers that would buy shower manager and set it at home. The pricing for shower manager is reasonable in the current market. Therefore, it is affordable for most customers.

Shower manager is one part of shower manger system; we are basically improving shower manager to economical area: saving money not only form a good habit for saving water.

Water Flow Valves

As the information shown on the Patent website for water flow valves, “A water flow valve positioned within a water distribution system just past a building's water meter. The valve compresses air bubbles into the water at the point where the water enters the meter, thus making the meter read less volume when the water passes through it.” ("Patent US20140130873 - Water flow valve for improving accuracy of meter readings in communication ... - Google Patent," n.d.). The difference from other products is the water flow valves are more accurate for using while saving water. It adds high pressure when water is flowing. Customers who prefer accurate water saving product could purchase the water flow valves for using.

Water flow valve is a horizontal competitor product compare with green shower. Water flow valve is a worthy develop area in the future, we will consider

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to design a new kind of product in this field. We are planning to install water flow valve a CPU within to reach same feature as shower manager so that we can develop a new product in this industry.

FUTURE EXPECTATION Since people are paying more attention to water saving project, and companies that developing this kind of products make good revenues from it. One of the water conservation company in China holds the belief that using water effectively is an important thing to implement. This example used different analysis showed the purpose of water conservation. Water conserving products gradually becoming widely use today.

As the result shows, water conserving products in the market has not yet been developed a lot. This means that people can still make money from using this product. Marketing this product to bigger consumers can be a good plan to apply. Expansion is helpful when people do not know a lot about the profitability of water saving products. The consumption trend of water saving product increased a lot from recent years, more and more companies that are interested in this filed products. From a global market perspective, this kind of products has been selling around different counties and consumers. Counties that pay attention to green revolution support people to use this kind of product. The profitability of water conservation product is undecidable. Analyzing the profitability of water conserving product by looking at the historical selling data, both consumption and selling record has been increasing a lot in recent years.

Although products that save water has not been widely used yet, it will become popular in the future. Green products have its potential market profit since people are paying more attention to it. Universities and other places that are interested in this kind of products can purchase them with reasonable price. This can help save a lot of cost on water. Not mention that universities have great amount of students who will use water a lot.

As the information shown on business opportunity in water conservation, many business companies have the need of raise productivity. To achieve that, they will need to conserve enough water for production. The problem that many companies face is that their water supply may not fulfill their production needs. The price for using water becomes more expensive than before. Transporting more water from other places to use cost a lot of money from company’s budget. “By 2030, water supplies will satisfy only 60 percent of

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global demand on average.” ("Business opportunity in water conservation | McKinsey & Company," n.d.). Because of this urge of water conservation, business companies and universities will start realizing that their cost on water becomes expensive. There is a big amount of demand for our water system to help this business save water for improving productivity and help these universities control the using amount of water. Some of areas already started to save water for future use and economic favor. “Companies in several sectors are improving their water productivity. The Swedish pulp-and-paper producer SCA,1for instance, aims to reduce its overall water consumption by 15 percent from 2005 to 2010. SCA tracks its performance through a resource-management system that collects and aggregates data on energy, water, transport, and raw-material use, as well as waste and emission levels from both production sites and business divisions.” ("business opportunity in water conservation | McKinsey & Company," n.d.). Water conservation becomes much popular than before, the demand for water saving product provides us with opportunities to earn profit from. Our company plan to start produce 100,000 the first year of our business to test how the market react to our product. Later, our company will respond to that market reaction to adjust the amount of water system that will be produced.

The Water System product aim to help business save their water budget. By doing that, the water resource could be saved as well. Our product has the function of cut water flow, inform the user when the max amount of water has been reached, permit more water use when users paid more money. The areas that our products will be sold to are China, the United States, Canada, Mexico, the United Kingdom, and India. Selling our water system products in these counties helps our business achieve international trade and fulfill other counties water usage needs.

Although our company does not set a lot functions on our water system, more functions will be added to our product in the future. Technology improvement is necessary for business improvement, gathering information from the market and analysis market situation in order to make effective adjustment is important for our company. One

improvement we plan to implement is let the water system has the ability to keep the warm temperature so when users restart the system, they could get warm water in a short time. Due to the situation that people do not usually turn off the showering water while they shampoo, it might be caused because people do not want to restart with cold water running. According to Sustainability website, “A bath typically uses up to 70 gallons of water, whereas a five-minute shower will use only 10-25 gallons depending on the

28

efficiency of showerhead. So opt for a shower to save water.” ("6 Times You Can Turn Off the Tap to Save Water - Sustainability at NC State," n.d.). By maintaining the water temperature for its users, people will start turn off their showerhead. We will add more functions to our product, Shower System, to fulfill customer needs. If the demand for our shower system is large enough for us to produce more products, we will consider opening more stores for expansion. More spin-off products will be produced for further business plan.

CONCLUSION There is a global shortage of water that impacts the global standard of living and the prosperity of humanity that you can contribute to combatting by using the Green Shower system. Water is a vital resource for the survival and prosperity of humans, and now you can help to save water at a relatively low cost. The system is easy to use and will help students to realize how much time they might waste in the shower. Many people around the world struggle to find clean water because of the global water shortage. This impacts their well-being and their quality of life. Meanwhile, in the U.S. we waste a lot of water. The Green Shower System helps to conserve water, and would also serve to save money and create awareness of water shortage here. We recommend that the Green Shower System could then be implemented in all of the dorm showers across campus. According to an undated website published by Purdue University Residences, there are 7 dorms and 2 additional villages available for students who need campus housing. By putting these in all of the dorms, expenses across campus due to water will decrease massively. Our product is economically feasible, environmentally friendly, and relatively easy to implement. It has great potential to help lower the water usage at Purdue. It is easy to implement across the campus. In the future, this system will be useful in more than just the dorms, as it can help in saving water in the showers at the Corec as well as in campus apartments. With savings of more than 50% this change is as economically attractive as it is environmentally friendly. The University has an opportunity to make itself an example to other schools and to help make a difference in the world.

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Two interview with Yiwen Bao and Lindemood; and one survey conduct from 70 students.