The Presence of Snow White Laundry & Dry Cleaners in Sydney - Case Study Example

? Marketing Management A Case Study of Snow White Dry Cleaning and Laundry Company s 20th November, Executive Summary The presence of Snow White Laundry & Drycleaners in Sydney has been a welcome phenomenon over the past few decades. Established in 1990, the business has proved to stand the test of time as it is among the most outstanding businesses in the area. The reason behind its inception during that time was to provide a healthy environment through the provision of clean apparels. The business has employees who range between nine and ten who work to serve the customers that are coming from that area, or visiting from other areas. The growth of the business is determined by the manner in which they advertise their products and services. One crucial area in the running of the business is the incorporation of technology into the company core operations or business processes (Lynn, 2010). Engaging actively with customers on numerous media fronts is what keeps the company on its toes. By engaging in all cleaning and laundry operations, the company has something to offer most of its customers. Laundromat and laundry services make it easy for customers to choose what they want, and go for it through different avenues. By performing different analysis in the environment where the business operates provides the company with sufficient information as to what best suits the company. Issues that have been noted from this analysis is that the company has a small staff number, which is a drawback. Secondly, the business is faced with the issue of heightened competition from small players within the industry. Table of Contents 1.0 Introduction 4 2.0 Services offered the pricing strategy 4 3.0 Pricing strategy 5 4.0 The promotional strategy 5 5.0 The Situational analysis 6 6.0 Customer analysis 7 7.0 Market and competitor analysis 8 8.0 Marketing strategies 9 8.1 Product 9 8.2 Price 10 8.3 Place 10 8.4 Promotion 10 9.0 Conclusion 11 Snow White Laundry & Drycleaners in Sydney 12 Upgrade Premium listing 12 1.0 Introduction This present paper is a marketing report that is based on the Snow White Laundry and Drycleaners Company. The report is mainly designed to act as a marketing report for the company. It begins with a preview of the services that are offered by the company and even the pricings strategy that has been applied by the company. Other sections that will be covered in the report include a discussion of the promotion strategy that has so far been applied by the business and it provides a situational analysis for the business. The report will also presents an analysis about the market and even the competitors of the company. Another section of the report will present an analysis about the company’s customer base and some issues that affecting the business. In the last section, before concluding the report will present marketing strategies that can be applied in order to increase the financial performance of the business as well as its market share in the Sydney market. Before embarking on the actual report it is important to mention that the Snow White Laundry and Drycleaners Company is a company that was established in the year 1949 and it mainly specialize in offering cleaning services for various items that range from clothes to carpets. The company has an established global presence with branches in different countries and its customer base include individual customers as well as corporate or business organizations. 2.0 Services offered the pricing strategy Snow White Laundry & Dry cleaning offers services that are broadly classified into dry cleaning and laundry services. Under dry cleaning services, the company offer to clean various items in a process, which do not include the use of water but rather the use of chemicals in process called tumbling. Laundry services on the other hand include cleaning services that majorly rely on the use of water was well as other chemicals and detergents (Lynn, 2010). For this particular, report the case study branch location for the Snow White Drycleaners and Laundry is located at Sydney 58 Terrace Street, where there are between nine to ten employees who are capable of handling the number of customers that come in regularly. It is important to note that the because of the small size of operation at this particular branch the company does not offer pick and drop services to all its customers. But rather it only focus more on serving customers who come into the store to drop of various items that require cleaning and then pick after a specified duration when they have already being cleaned. The customers who usually demand for their items to be dropped or picked from a convenient location are normally forced to pay higher prices and in most cases they are usually commercial customers or other business organizations. 3.0 Pricing strategy To begin with, Kent (2003) identified pricing as one of the four key marketing elements, meaning it can be used to market the business and equally attract a big number of customers. For examples, products and services that are sold at competitive prices usually attract many buyers who would prefer the products and/ or services as compared to other because of the fair prices. However, it is important to note that certain goods under the luxury category normally attract more buyers when they are highly priced. Gregson (2008) noted that whilst setting the prices it is particularly important to consider the cost of the goods or services, secondly, the external economic condition, the demand within the market and even the prices for competitors. As the Snow White Drycleaners and Laundry, they set their pricing strategy based on the amount of time required to do laundry, and the quantity of laundry being done. The after-service deliveries, which require the customers to pay higher prices, works to increase the service rate and increase the profits that is generated by the business (Lynn, 2010). 4.0 The promotional strategy According to Adcock and Al Halborg, (2001), the promotion strategy is equally another important element in the marketing mix. The promotion factors usually aims at communicating to the target audiences about the products and/ or services that are offered by a business organization. Promotion mainly speaks about the unique advantage of the business, how the products and / or services differ from those offered by competitors, and why the consumers should choose the promoted product/ service instead of the rival product/ service. The Snow White Drycleaners and Laundry Company employ the use of traditional forms of marketing in order to promote their products and/ or services. In this regard it can be noted that the company place adverts about its services on various mediums that include newspapers, television and radio channels, and even on the internet via social media sites and the company’s official website. Other promotional strategies that are applied by the business include offering deluxe services to some of their regular customers, which include delivery of the washed items and even using perfumed cleaning agents. Other deluxe services include hand finishing process, which makes customers’ garments receive extra attention from the employees in the company. This gives the whole process of giving already done laundry a human touch. Moreover, the hour-express service ensures that customers who might be in a hurry can get their garments after an hour. This makes it easy for the business to attract customers from the area, and away from competition (Lynn, 2010). 5.0 The Situational analysis The situational analysis looks at the internal and external factors that affect a business organization and it establish the prevailing health status of the business (Grant, 2008). The mission of the company is to provide their customers with a fresh, clean, and crisp items or clothing that is capable of enriching their daily life activities and even enhance the confidence of their customers. From the company’s mission statement it can be stated that the company is poised to enjoy a sustained business growth since the services it offers cannot be substituted and there is posed to be increased demand for cleaning services more so from corporate clients who are increasingly outsourcing business process that support their core functions. The company’s overall goal is to increase its market share whilst creating new technologies that will create a healthy environment. Therefore, it is correct to state that the Snow White Drycleaners and Laundry is faced-paced shark tank that thinks of new ways of improving the quality of their services and customers’ experience. Some of the issues that the company faces include the effects of the aggressive business world whereby competition grows on a daily basis more because of entrants of new competitors into the market. Kotler and Keller (2009) stated that the entry of new competitors into the dry cleaning and laundry business is because of the fact that many prospective investors/ entrepreneurs have realized that the industry has wide potential and there is possibility of generating great returns. Consequently, this means that Snow White and businesses that were created in the past have to contend with sharing a piece of the market. Technological advances also require that the business make advancements and apply the use of technology in the business processes or operations (Lynn, 2010). This is lest they are left behind as new and better services are offered by the competition growing within the market. The major strengths from the company arise from the fact that it is offers a variety of services under the broad category of dry cleaning and laundry. This therefore, means that it a stop-shop for customers with varying cleaning needs. Secondly, the fact that Snow White is a renowned and reputable brand in the dry cleaning and laundry industry, which has been in operation since the years 1949, gives the company a strong recognition in the market. The main weakness of the company arise from the fact that it has a limited number of staffs, which at times result in delay of service especially during peak hours or days. Additionally, the limited number of staffs does not enable the company to offer the pick and drop services to many customers thereby its possible market share. 6.0 Customer analysis From a general perspective it can be stated that the company serve customers who range from individual persons to institutions and business organizations such as hotels, restaurants and corporations since all of them have different cleaning needs. In particular, more business is generated from individual clients who bring clothes and other home items that need to be cleaned. Hotels and restaurants are provide major business to the company since cleanliness is crucial in the industry, therefore, they are forced to require cleaning services more often. Enabling customers to provide feedback and reviews on the quality of their services has enabled the company to understand their customers’ future desires, which can guarantee that they remain loyalty if these future desires are meet (Lynn, 2010). The feedback and review collection is a process that assists in customer analysis for the company. In the small area of operation, it is vital to know of the people being served and their specifications. This works toward endearing the customers to the business, which is what may have guaranteed their existence and prosperity for this long. After being in service for more than two decades, it is impossible to ignore that countless individuals who believe in the services and quality of the business. This is also a customer analysis that guarantees the success of the business since it is possible that the roots set up in the past are still holding the business firm. 7.0 Market and competitor analysis With reference to the writings by Grant (2008), he stated that the market analysis involves checking out for potential customers who are visiting the area. The possibility of having customers who check into hotels and motels in the area means that being in business with some of the small hotels and accommodation houses guarantees customers. Finding out what they want and need and ensuring they know about these desires is a bonus for the business. Customers can be particularly specific about their apparels; this means that Snow White needs to assure customers of respecting their wishes, lest they get bad recommendations and reviews. Moreover, adhering to customers’ request gives them an edge over their competition. Examining what competition has to offer may also pave way for better and more innovative ways of acquiring and retaining customers (Lynn, 2010). The main competition arises from small dry cleaning and laundry shops that are opening up in various places and especially in residential estates. Kerin et al. (2011) suggested that to wade off such competition from small players in the market, Snow White could implement a market expansion strategy and based on its strong brand reputation it is poised to increase its market share. 8.0 Marketing strategies Some of the marketing strategies involve reaching customers, especially the younger generation, through technology. This is done through the internet and social media sites that most people often frequent. By paying to have their advertisements in these areas, the business aims at reaching a wider target market to satisfy their annual goals/objectives. These strategies require time and money, but it is a risk the business may be willing to take (Lynn, 2010). The market plan is to invest in the community in which they set up in the 1990’s. By ensuring that every member of the organization is consulted on what is best, the owner is keeping the line of communication open. Control comes into play when the formulated or proposed strategies do not seem to succeed. Management then makes a managerial decision that is best for business. Based on the analysis that has been conducted it can be stated that the company needs a new revised marketing strategy that impacts on all the four key elements of marketing that include product, price, promotion, and place. 8.1 Product In regards to product, it suggested that the company should invest on modern machineries for dry cleaning and laundry, which hastens the process thereby enabling the company to serve more customers within a short period. Moreover, by investing in new cleaning technologies the company could retain its employee number without hiring more staffs since most of the process will be handled using machinery. 8.2 Price It is noted that because of entry of other small dry cleaning and laundry companies in the Sydney market there has been a slight reduction in the prices, which is attributed to the fact that different competitors are trying to outshine the others by cutting down their prices (Gregson,2008). Therefore, to strategically position itself, Snow White Dry Cleaning and Laundry company should consider subsidizing the rates of some of its common services that are usually demanded mostly by individual customers and they could slightly increase the prices of services that only face huge demand from a niche market that is not served by other small players in the industry. 8.3 Place In terms of place, the company should initiate a market expansion project whereby it will seek to open up new branch locations. By increasing its branch, location the company will be able to increase its market share and even serve clients from a more convenient location. Moreover, the company can enhance the place marketing strategy by introducing a more elaborate delivery service that will cater for all clients who will be willing to pay for the extra cost of receiving their cleaned items at their convenient location. 8.4 Promotion As earlier stated the company should engage in an aggressive marketing campaign especially via social media where Kerin et al. (2011) stated there is currently wide membership, which guarantees wide viewership for the adverts placed. 9.0 Conclusion The growth and success of this business depends solely on the people in the company. They are not that many, hence; the limited liabilities and risks. Serving and giving back to the community is one of the main objectives of the business, and by the looks of it, they are giving back to the community that gave them a chance. By implement the proposed marketing strategies, the Snow White Dry Cleaning and Laundry company is poised to enjoy a greater market share and increase sales revenue. Reference Adcock, D. and Al Halborg, C, R. (2001) "Introduction". Marketing: principles and practice. Financial Times/ Prentice Hall Grant R. M., (2008) Contemporary Strategic Analysis (6th edition) Blackwell Publications Gregson, A. (2008) Pricing Strategies for Small Business, Self Counsel Press Joshi, R. M., (2005) International Marketing, New Delhi and New York; Oxford University Press Kent B. M, (2003) The Pricing Strategy Audit, Cambridge Strategy Publications, Kerin, B. Hartley, C. and Rudelius, P. (2001) "Marketing: The Core" (4th Edition). McGraw Hill Publishing Kotler, P., and Keller, K. L., (2009) A Framework for Marketing Management (4th edition.). Pearson Prentice Hall Lynn, J. (2010). Start your own cleaning business. New York: American Printing Press. APPENDIX 1 Snow White Laundry & Drycleaners in Sydney Below are details for Snow White Laundry & Drycleaners, a dry cleaner offering their services around Sydney Name: Snow White Laundry & Drycleaners Address: 58 Terrace St Zip/Postcode: B1P Phone: 902-564-8111 Fax: Category: Laundries http://www.drycleaners.org/ca/drycleaner-1729-Snow%20White%20Laundry%20&%20Drycleaners/ Upgrade Premium listing Why not get Snow White Laundry & Drycleaners a premium listing on Drycleaners.org? For an annual fee off 19.00 $US you can add information about Snow White Laundry & Drycleaners on Drycleaners.org. Benefits of a Premium Listing • Communicate with your customers; tell them what sets your business apart. • List your website, encourage customers to visit your site and contact you from there. • Get listed above your competitors in Sydney. 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