Business Model Innovation - Spray Safe

Background

This year, Covid-19cases in Singapore has peaked over the 5,000-mark recently. The surge in numbers has put a significant strain on the healthcare system, resources &manpower. To ease the strain on public hospitals & community care facilities, the government has introduced home recovery programme to allow patients to recuperate in the comfort of their homes. This has made professional Covid-19 disinfection cleaning a mandatory regulation, and hiring such services can cost as high as $500-$800.

Market Research Insight

According to market needs, there are two categories of Covid-19 cleaning services:

1.      Precautionary Sanitisation treatment When there are no suspected or confirmed Covid-19 cases, precautionary services are carried out to reduce the risk of Covid-19 infection.

2.     Covid-19Disinfection treatment When are the suspected or confirmed Covid-19 cases, sterilisation & disinfection are carried out to eliminate the source of the virus. Professional requirements and charges will also be much higher.

Challenges

As cleaning companies provide services based on customers’ needs, Covid-19 sterilisation services are often more urgent than precautionary ones. The mentioned regulations have also allowed general household cleaning companies to expand their business to the disinfection field. With the addition of new entrants, this has made the disinfection industry a competitive market.

According to data, there is an average of 3,000 patients per day. Assuming that there are 4 family members in 1 household, this means that 750 households are being affected byCovid-19. This number accounts for about 0,053% of Singapore’s total family households (1.4 million). With almost 90% of the competitors vying for this target market, the biggest challenge Spray Safe face is to break through the narrow scope & space for business growth.

Innovation model

Instead of targeting the 0.053% market, Spray Safe has identified an untapped market on the 99% of Singaporeans who were not tested Covid-19 positive before. This overcomes the competition that Spray Safe can potentially face with other cleaning companies. Spray Safe operates on a multi-business model (insurance subscription & service customisation)to deliver more protection value for our target market:

1.      Covid-19 preventive cleaning
2.     Financial coverage against high costs of professional Covid-19 disinfection services.

Insight

Amid the risingCovid-19 threats, Singapore residents are also more aware of the importance of preventive measures. However, they also developed an optimism bias because of the Home Recovery Programme, even after understanding the high costs of the professional Covid-19 disinfection services.

Service structure

We have two different service plans – precautionary sanitisation treatment & Covid-19disinfection plan. Under the disinfection plan, we provide 4 different packages that offers 3-, 6-, 9- and 12-months coverage. The number of disinfection services in each package is also different. The price positioning for all packages is also lower than that of other competitors. Non-infected families are only required to purchase any package, and they can receive complimentaryCovid-19 disinfection services worth $500 in the event of illness.

Profit Model

We avoid the competition that targets the 0.1% consumer group and focus on the 99.9%preventive market group.  By adopting theinsurance business model, we dilute the pandemic risk to the 99.9% marketinstead of focusing on the 0.1%. Due to the low competition in this market,Spray Safe has launched preventive sanitisation services at a lower pricecoupled with free insurance for disinfection packages, which fulfil the needsof our focus consumer group – protection & money-saving. This created anopportunity for Spray Safe to capture the market with quick turnover &small profits.

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