Clinix Dry Cleaners Marketing Plan - Case Study Example

Contents Contents 1 Abstract 2 1.0 Introduction 3 1.1 Objectives 3 1.2 Current Situation 3 1.2.1 Product 3 1.2.2 Target Market Segmentation and Strategy 4 1.2.3 Competition 5 1.2.4 Distribution 6 1.3 SWOT ANALYSIS 6 1.4 Marketing Strategy 9 1.4.1 Product 9 1.4.2 Price 11 1.4.3 Place 11 1.4.4 Promotion 12 References 14 Abstract Clinix Dry Cleaners is a business that will provide laundry, dry cleaning and garment alteration services, combined with door to door pick-up and deliveries. Its objective is to increase sales by 7% per quarter, achieve 2-% market share by end of the first year, and achieve profitability within one year. The target market for Clinix Dry Cleaners will be working class and professionals in full time employment. Spotless and Alsco are the major players in the dry cleaning industry in Australia. The main competitors for Clinix Dry Cleaners are Gil Cleaners, Washy Cleaners and Spik&Span. New dry cleaning services, convenient service, modern technogies and no availability of fixed costs are the strengths of Clinix Dry Cleaners. Lack of availability of already established market share, no experience in the market and strong established competition are the weaknesses of the company. The opportunities are the increased spending on new clothes that need extra care, more women taking up full time jobs, average increase of income of people, and forecasting growth in dry cleaning industry. Threats include fast advances in technology making the current technology obsolete, change in customer demand and preferences, and entry of new competitors. The first marketing strategy will be provision of high quality dry cleaning, laundry and garment alterations services with free pick-up and delivery services. The second strategy will be using the current market price and bundle pricing. The third strategy will be operating the business from home to save on rental costs, and pick-up and delivery of clothes at a time convenient to customers. The final strategy will be promoting the services through advertising, direct marketing and sales promotion. 1.0 Introduction Clinix Dry Cleaners is a business dealing mainly in garment alterations, laundry and dry cleaning, coupled with door to door pick-up and deliveries. 1.1 Objectives In providing laundry and garment alteration services for customers in the Ashford area Clinix Dry Cleaners aims to: Increase sales by 7% each quarter Achieve 20% market share by end of year one Achieve profitability within year one 1.2 Current Situation 1.2.1 Product Clinix Dry Cleaners will provide quality laundry, dry cleaning and garment alterations services to the residents of Sydney. According to Ibisworld (2015) the industry’s large proportion of services comprise of dry-cleaning and laundering of bed linen, apparel, uniforms and table linen. Bulk items are usually collected from the client premises and returned within the agreed period of time after processed. Australian Government-Australian Taxation Office (2014) shows that an estimate of 63% of total industry revenue comes from laundering while 24% comes from dry-cleaning. The service demand is influence by employment trends in client industries including commercial industries, government and households. 1.2.2 Target Market Segmentation and Strategy Clinix Dry Cleaners will target both female and male. According to Australian Institute of Family Studies (2015) from the period of 2003-2013 the men working part time were 9% while those in full time employment were 91%. Women working part-time were 38.1% while those in full-time employment were 61.9%. Table 1 and chart shows the percentages of Australian females and males working full time and part time from the period of 2003-2013. 91% of men work full time while 9% of them work part-time. 61.9% of women work full time while 38.1% work part time. This report shows that a large number of both women and men in Australia are in full time employment. This means hardly is there any man who stays at home to attend to his laundry and there are less women left at home to do the same. This is a market opportunity for Clinix Dry Cleaners to explore. The Australian Institute of Families Studies (2015) also report that the Total change is employment is 36.9%, the individual change in average monthly earning is 24.1%, and the individual change in GDP is 39% from 2003-2013. This shows that employment, GDP and income are increasing over the years. As the individual income increases their living standard also increases, thereby increasing the demand for clothes. As professionals buy expensive clothes for work and business they prefer to have someone else take good care of those clothes in term of professional cleaning. Clinix Dry Cleaners will therefore focus on working class customers and professional customers as its target market. The greater number of this customers will be men since most of them are in full-time employment and do not have enough time to do their laundry. The total number of people employed in Sydney is approximately 95,786, with those working part-time being 26% and those working full time being 72%. Clinix Dry Cleaners plans to have a market share of 30% of the 72% full time employed. 1.2.3 Competition The main players in the dry cleaning industry in Australia is Alsco and Spotless, while the majority are the franchised operators and small business. According to IBISWorld (2015) large companies locate their plants closer to major clients to minimize transport costs, for ease of access, and service customer needs. The main competitors of Clinix Dry Cleaners are those in Ashfield and in close proximity to the business. These competitors include Gil Cleaners, Spik & Span and Washy Cleaners. Washy Cleaners operate from home, specialize in laundry, has a well-established client base and have been in the market for six years. However, they have limited services, does not use modern dry cleaning technology, have fixed schedules and provide services on small scale. Spik & Span operate at commercial premises, has a good reputation and stable business, has well established client base with repeat business, has experienced support staff and has established business locations within the area. However, most of its schedule is fixed, customer complain about its high prices, and have no door-to-door delivery services. Gil Cleaners operate from home, its services are less expensive, have zero fixed costs on commercial premises, does not use the latest technology in dry cleaning, and has low reputation in quality. Clinix Dry cleaners will maximize on its competitors weaknesses and its own strengths to build a competitive advantage. 1.2.4 Distribution The internet is increasingly offering dry-cleaning services, and a pick-up and delivery service provided by dry-cleaning services. According to IBISWorld (2015), dry cleaning services in Australia are provided at the business premises, owner’s homes and mobile dry cleaning vans. Most dry cleaners offer to pick and deliver customer items and clothes in order to foster convenience for the customer. 1.3 SWOT ANALYSIS SWOT analysis identifies the internal strengths and weakness and the external opportunities and threats of an organization (Bohm, 2009). Strength New services of and dry cleaning service Time saving due to convenient and quick service Use of modern dry cleaning technology No fixed costs Weaknesses No available market share Less or no experience in the market Strongly established competition Opportunities As spending on new clothes increases, the need to take care of those clothes increases. More women are entering workplaces full time, leaving no time to do There is an average increases in income for people living in Sydney. People in Sydney use their free time to participate in leisure activities, thereby having no time to do laundry. The service of Laundry is forecasted in Sydney to continue growing. Threats Technological advances in the laundry industry bringing changes and providing new cleaning alternatives. Change in the customer’s demand and preferences. Entry of new competitors. The strengths, weaknesses, opportunities and threats of Clinix Dry Cleaners Seas shown in the above table are explained as follows: Strengths New laundry and dry cleaning services provided by Clinix provide a variety of choices for customers to choose from. Customers save their time by the convenience provided for them through the door-to-door services provided by Clinix involving picking from and delivery of clothes to the houses of customers. This gives the business a competitive advantage over other dry cleaning services in Sydney. The business saves on cost overheads because it does not have to spend on money paying rent on fixed premises as well as other premises bills. The business owners run Clinix Dry Cleaners services at their house extensions and in mobile vans which pick and deliver clothes from customers. Weaknesses The market has already established and strong competitors who have good experience and substantial market share. On the contrary, Clinix Dry Cleaner Services is new in the market and neither does it have experience nor established market share. There are already established competitors in the market with market share and quite good experience. This may pause as a challenge as the business commences. However, the business strategy will be to target professionals and the working class is in the choice of working class, and to market on the ability of door-to-door services of picking and delivery clothes, a strategy that competitors have not strongly concentrated on. Opportunities Clinix has several opportunities in the market which it can explore. Many professionals are spending more and more on expensive clothes. Expensive clothes need great care to maintain its ‘new’ status and good dry cleaners will be needed to me that need. This will create continuous business for Clinix Dry Cleaners Services. Traditionally housework including doing laundry was done by women who most of the time stayed at home. However, more and more women today are working full time to help make ends meet, thereby having no time to do their laundry. Contracting dry cleaning services will be less costly and convenient. Clinix will come in handy and timely especially with its home delivery services. There is an average increase income for Sydney people which encourages them to spend more and are willing to buy dry cleaning services in order to save time for engaging in leisure activities. As more and more people work full time and increase in income takes place, the dry cleaning and laundry industry is forecasted to grow. Threats The dry cleaning and laundry services industry is forecasted to grow. This may attract new competitors who may be want to have a share of the growing market. Clinix Dry Cleaners will build a loyal and strong customer base, adapt quickly to the changes in the environment, use modern technology and provide services in a manner that new competitors will find it difficult to imitate or impossible to compete. The changes in preferences and demand of customers include buying cheaper clothes that do not need extra care, and this may affect the revenue of the business. Advances in technology may bring about new dry cleaning alternatives which may render the current Clinix Dry Cleaners cleaning alternatives obsolete. In order to stay relevant in the market the business will need to adopt to the new technological changes that occur. 1.4 Marketing Strategy The marketing strategy for Clinix Dry Cleaner will be based on the 4pcs of marketing; product, place, price an place. 1.4.1 Product The product is a service or physical product offered to a customer, and include any conveniences or services that are part of the offering (Angelopulo & Barker, 2005). Sydney residents will be provided with quality dry cleaning, laundry and garment alterations services they have never experienced before. To achieve this Clinix Dry Cleaner will position itself as providing quality, reliable and faster services. Items and clothes will be delivered to customers packaged in laundry bags and boxes which will be branded the logo of the company. The garment alteration, dry cleaning and laundry services will have the following features: Free pick-up and delivery Services will be provided to customers within a radius of 400 miles. Delivery of items and clothes to customers will take place between 1 to 3 business days. Full laundry service will include sorting, washing, drying and folding. Cleaning services will include cleaning duvets, washing clothes, shoes and bags, rug cleaning, wedding dress cleaning, cleaning. Garment repair and alterations will include zip adjustment, dress or trouser shortening and button replacement. Laundry bags will be provided. According to the market analysis there is an increasing number of full time professionals including women leaving no extra time to do laundry therefore this product will meet the needs of this particular market. These market will appreciate the pick-up from and delivery of items to their doors. As the number of full time professionals increases triggering demand for dry cleaning and laundry services, Clinix will have an increased market share, increased sales at least per quarter and be able to achieve profitability within one year. 1.4.2 Price Price include financing, discounts and list price (Dogra, 2010). Clinix dry cleaners will charge its services same as the current market price. Convinience, time saving and quality provided by the business through its services is an added value that will attract more customers, and enable it to compete in the market. Bundle pricing will be used to attract more purchase and increase revenue. The price of cleaning a carpet is $150 and for washing clothes $200, but the customer will only pay $300 instead of $350 for both. One of the objective of Clinix Dry Cleaners is to achieve profitability within its first year of operation. Marching the prices with the current market price but adding more value to the product such as free pick and delivery, will increase revenue and profits. Bundle pricing will increase sales enabling the company to achieve its sales objectives. 1.4.3 Place This is a means to get the product or service to the target customers (Dogra 2010). The operations of Clinix Dry Cleaner services take place from the owners’ home which is along the main road. This makes it easily accessible for customers to drop their clothes and items at the business premises. Pick-up and delivery of clothes will be done to those customers who do not have time to come to the business premises, and this will be done between 6.00am to 9.00am, and 5.00pm to 7.00pm on weekdays, and between 7.00am and 6.00pm on weekends. Customers with urgent orders will be charged more. According to the market analysis dry cleaning services are provided at owner’s homes, mobile vans and business premises. Pick-up and delivery services are also provided. In order to cut on rental cost and achieve profitability within one year, Clinix Dry Cleaners will provide its services at the owners’ home. 1.4.4 Promotion Promotion is a way of disseminating relevant product information to customers (Chandrasekhar, 2010). 1.4.4.1 Communication objectives To provide inform the public To remind previous customers of the available services To persuade new customers to try the services To stimulate demand for the services. 1.4.4.2 Communication Mix and communication channels The communication mix for Clinix Dry Cleaners will be sales promotions, personal selling, public relations and publicity, direct marketing and advertising. Advertising To create awareness of the company services Clinix Dry Cleaner Services will advertise through local magazines, radio and daily newspaper, television, distribution of fliers in trading centers, and residential, posters and online marketing; company website, blogs, emails and social media such as Facebook and Twitter. This will enable Clinix Dry Cleaners to attract new customers therefore helping achieve the objective of increases market share. Advertising will also remind current customers to do a repeat shopping leading to increased sales and eventually profit. Sales Promotion 10% discount will be provided to new customers in order to attract them to try the services. This will encourage a lot of purchases of services and help achieve the objective of increase sales and profit. Referral program will be introduced to allow customers to refer their friends and relatives. This will allow customers to distribute Clinix discount cards to attract new customers. Both the referee and the referred customer will get discounts of up to 50% on the services. This will encourage more increase in the purchase of dry cleaning service which help meet the objective of increased profitability. Sales promotion will stimulate demand for the services and enables potential customers and customers to make repeat purchases, make larger purchases or take a quick action. Direct Marketing Promotional materials will be send directly to individual consumers in offices through e-mails. This will enable Clinix Dry Cleaners to target a specific set of customers (professionals and individuals in full time employment). This will enable the company to expand its market share which eventually will lead to more profits. References Angelopulo, GC & Barker, R 2005, Integrated Organisational Communication. Juta and Company Ltd, pp 139. Australian Institute of Families Studies 2015, Australian Households and Families. Available from < https://aifs.gov.au/publications/australian-households-and-families>. [28 September 2015]. Australian Government-Australian Taxation Office (2014). Laundry and dry-cleaning services. Available from: . [28 September 2015]. Chandrasekar 2010, Marketing Management: Text & Cases. Tata McGraw-Hill Education, pp 9. Bohm, A 2009, The SWOT Analysis. GRIN Verlag. Dogra, B 2010, Rural Marketing. Tata McGraw-Hill Education, pp 80 IBISWorld, 2015, Laundries and Dry-cleaning Services in Australia: Market Research Report. Accessed on September 28, 2015 from Naeem, B., Bilal, M & Naz, U. (2013). Integrated Marketing Communication: A Review Paper. Interdisciplinary Journal of Contemporary Research in Business, vol 5, no. 5. Pp 124-133. Porluri, RM 2008, Assessment of Effectiveness of Marketing Communication Mix Elements in Ethiopian Service Sector. Journal of Business Management, vol 2, no. 3, pp 59-64 Read More