Market Strategy: Defining the Target Market and Positioning Jims Cleaning - Research Paper Example

Market Strategy: Defining the Target Market and Positioning Jim’s Cleaning Outline Introduction Situation Analysis Internal Environment Needs and Wants Market Summary Market Demographics Marketing Efforts External Environment Competition SWOT Analysis Marketing Strategies Segmentation Defining the Target Market and Positioning of Jim’s Cleaning A New Product Line under Jim’s Cleaning Group Conclusion References Introduction The leading cleaning service provider company in Australia, Jim’s Cleaning Group, caters an all – around cleaning service for both the homes as well as the businesses. It touches every part of the domestic or corporate establishments from the windows to the blinds, from carpets to driveways, from cars to kitchens, and from factory floors to office floors and leaves it sparkling, neat and dirt – free. Its top class cleaning service is guaranteed by its several divisions in cleaning that specialise in the following area such as homes and office, carpet, window, pressure, blind as well as suburb cleaning. Given the exceptional, extraordinary and outstanding reputation of Jim’s Cleaning in Australia, different individuals, families, and business continue to call and deal with them for their quality cleaning services. Over the years, its customers remain to repeat its business transactions with them which have enabled the company to grow and expand to over 3000 franchisees all over the country. Nonetheless, the competition in the business remains tough. James Cleaning, Planet Cleaning and CRC Professionals are among the bigger competitors of Jim’s. In addition to that, there exist smaller cleaning services which provide the same service but of much lesser price which serve also as threats to the company. In this regard, Jim’s Cleaning Group recognises the need to grasp an understanding of the customers. This need is backed up by the growing competition in the business. It is a must for Jim’s Cleaning to not only retain its current hold of market share but as well as to strengthen this and aim for market leadership in the arena of cleaning services. For the company to do this main goal of growing its business to own the top most position, first, it is necessary for Jim’s Cleaning to define its target market so to strategically position the company’s different cleaning divisions. Situation Analysis Internal Environment Customer Needs and Wants Cleanliness is not just a luxury but a necessity indeed. Jim’s Cleaning Group sees the needs and wants of the Australian population for cleaning services that would definitely satisfy this demand for service. In particular, given people’s busy schedule or even the unwillingness to perform the cleaning task, Jim’s Group has addressed this demand for quality services that is the most convenient for the customers’ needs and wants. Whether it is domestic, corporate or car type of cleaning, Jim’s can do this sort of “dirty work” for its customers. Market Summary Jim’s Cleaning Group is able to expand its business nationally because of its quality cleaning service that customers continue to patronise. With such top class reputation of being a cleaning service provider, about 96% recognises Jim’s in Australia. It has its own base of regular customers as well as new and irregular customers who try the service of Jim’s. Market Demographics Currently, Jim’s Cleaning Group has over hundreds of thousands customers in different boundaries of Australia. The profiles of customers are varied in terms of geographic, demographic, behavioural factors as well as type of cleaning services needed. However, Jim’s lacks a database of who their customers are, their contact details and how often they avail services. Marketing Efforts The website of Jim’s Cleaning Group is its key marketing tool that promotes its business of cleaning services. However, this main marketing material is not enough given the competition in the business. Though the Jim’s has presence on the social networking sites like Facebook, its page is not active and not well – maintained. Hence, Jim’s must continue exerting on marketing and promotional campaigns that would aid the retention and increase of its customers. External Environment Competition Competition remains tough. The direct competitors of Jim’s are as follows: One Planet Cleaning which happens to be the biggest competitor as it caters for the commercial cleaning services; James Cleaning which specialises its services for the residential customers at an efficient service and standardised price; and the smaller ones who offer the same service but of a much lower cost. According to Gay (2010), it is always the case that the customers always prefer for the products or services that cost the lowest. This competition in the name of price is a usual scenario in various businesses because this pricing is a strategy employed by businesses in order to gain customers. As Porter (1980) suggested, offering the lowest cost or being the cost leader functions as a competitive advantage because it can attract the price – sensitive or the cost – conscious customers via having the low – priced service for a given level of quality. On the one hand, the traditional individual housekeepers of the family also do indirectly threaten the business of Jim’s. Though it is not the same level of Jim’s in offering cleaning services, these individuals not only clean the household but also do extra tasks for the family including looking after the children. Nonetheless, this sort of indirect competitor of Jim’s is decreasing in count in the market. SWOT Analysis SWOT Analysis or an examination of the strengths, weaknesses, opportunities and threats that a project or business venture faces is really one effective strategic tool for a marketing plan that can find a competitive advantage for any organization (Hagos and Pal, 2010). Strengths Corporate Image – According to Ind (1992), Ollins (1990) and Young (1996), corporate image is referred to as the character of the company in which this reputation is of importance to its customers. This is because such image of the company is an element that influences the customers to further support and patronise the services of the company or even to withhold its support (Balmer, 1991; Schindler, 2000; Young, 1996). Jim’s Cleaning Group has definitely a strong image as a cleaning service provider. With the proven track record on quality cleaning services, it has established itself as a reputable company. This reputation of Jim’s is due to its efficient, courteous and professional employees who offer quality cleaning services to its customers. Weakness Cost of Availing Cleaning Services – According to Assael (1987), patronising products and services are most often made on price as a basis. Malhotra (1983) expressed that lower price is a factor of purchase but not enough to cause change in procurement habits because there are also other existing factors. However, most often times, customers prefer the products or services that are priced the lowest yet offers the same services (Gay, 2010). In this manner, the cost of availing cleaning services from Jim’s Cleaning Services is relatively much more expensive compared to other businesses which can do the same service of cleaning yet provides a much lower rate. Lack of Database – Financial gains are not enough grounds for developing marketing strategies. An efficient database which Jim’s lacks is a necessary tool for monitoring, tracking and interpreting the business. Marketing Efforts – The main source of marketing and promotional campaign of Jim’s business is its website which has of course, its own limitations. Meanwhile, referrals and word – of – mouths are still not enough in ensuring the business. Opportunities Own and Actualise the Title of Total Cleaning Provider from a Wide Range of Services to Products – Indeed, it is the case that Jim’s Cleaning caters to an all – around cleaning service from different areas, it may be car cleaning, house cleaning or corporate office cleaning. Despite the case that Jim’s Cleaning Group has specialised divisions that cater for a specific need of the customers, it is also a good start to offer the market a product line under the Jim’s. This is also an opportunity to target those who resort to individual housekeepers and also those who are not regularly seeking for the services of a cleaning provider. Jim’s Cleaning will still be felt inside the homes or offices through its products. Threats Increased Competition from Different Cleaning Service Provider – Jim’s Cleaning Group has different specialised divisions but experiences rivalry with other companies like One Planet Cleaning catering for commercial cleaning services, James Cleaning offering residential cleaning services, and the other smaller ones who can afford to provide the same cleaning service but of a much cheaper price. Apart from the service and price offerings, others can handle better the marketing strategies and campaigns as well as relationships with client through online. Marketing Strategies Segmentation Existing and prospective customers of Jim’s have similarities and diversity in terms of geographic, demographic, psychographic, behavioural, occasions, benefits and other aspects. Kotler and Keller (2006) stated that it is needed to understand and characterise these customers, hence, segment them. With market segmentation, Wedel and Kamakura (2000) suggested that companies can target different categories of customers in in order to strategically and effectively manage the market. Defining the Target Market and Positioning of Jim’s Cleaning Defining who the target market is basically the initial step in devising a marketing strategy. According to Kurtz (2010), the target market is particularly the group of customers which companies direct their promotional and marketing efforts for them to purchase or patronise the product or service being advertised. On the whole, Jim’s Cleaning Group has several areas of cleaning services. Having these specialised areas means that each is targeting to a particular customer. First is the commercial cleaning which targets the corporate businesses and different offices that are in need of reliable, guaranteed, professional and quality cleaning. Though there are regular janitors and janitress that clean the vicinity of the offices, still, Jim’s Cleaning feels the need of this offices for a high standard cleaning as armed by their equipment and other resources. Second is the home cleaning which targets those individuals and families who lack time for cleaning the whole house or just specific part of the house, or even those who are just unwilling to do the “dirty job” of cleaning such themselves including cleaning of the window, the blinds, the carpet, the floor, the kitchen, and others. This category of home cleaning targets also those who have no presence of individual housekeepers in their house as well as those who are busy working moms who cannot spend time cleaning the house. Third is the car cleaning which targets those individuals who would love to have a nice clean car but lack time or even reluctant to do all those car cleaning stuffs. Apart from those, the other categories basically fall in the same group of target market like that of pressure cleaning. Moreover, it is important to note that Jim’s Cleaning Group is targeting the middle and upper class families for residential cleaning service type. A New Product Line under Jim’s Cleaning Group It is undeniably the case that there will be customers who choose not to have the cleaning services from Jim’s Cleaning. However, Jim’s can now have the opportunity to extend its cleaning services to different residential and commercial establishments through offering cleaning products under Jim’s. These cleaning products will target mainly the non – user and irregular user segment of Jim’s including those who have individual housekeeper and clean the house by themselves. With this, Jim’s Cleaning Group can now tap even the market which is not into patronising the offered cleaning services. Conclusion This research reveals that despite the growing number of franchise, competition remains tough for Jim’s. Positive implications of this research suggest that Jim’s strong image and good track record have helped the company’s growth. Through defining who needs, wants and demands for cleaning services, Jim’s is able to target them effectively. Likewise, this research also sees an opportunity on how the company can aim for market leadership in cleaning services through targeting as well those who don’t avail their services. This is through offering cleaning products under Jim’s. However, research also suggests that Jim’s needs to have an efficient database that will be used for future marketing strategies. This implies some cost implication on because Jim’s has to set up a system to have an efficient database. It is also suggested that there is a need for Jim’s to reduce the cost of availing its services so to maintain its current share of the market. The need for market research to assist Jim’s future marketing directions requires financial resources as well. Nonetheless, on the overall, Jim’s has a good marketing strategy of defining its target market in order to better position the different categories of cleaning services to its market. To retain a strong hold of its current share and increase such, improvements on its weakness and grabbing some opportunities for growth must also be made. References: Assael, H. (1987). Consumer behavior and marketing action (3rd ed.). Boston, MA: PWS-Kent Publishing. Balmer, J.M.T. (1991). Building societies: Change, strategy and corporate identity. Journal of General Management. Winter Gay, M. (2010). Australia pressures fashion industry to bulk up models. AOL News. Retrieved http://www.aolnews.com/2010/06/29/australia-pressures-fashion-industry-to-bulk-up-models/ Hagos, T.M. and Pal, G. (2010). The means of analysis and evaluation of corporate performances. 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