eco/green marketing strategy today cleaners m arketing s trategy
TRANSCRIPT
ECO/GREEN MARKETING STRATEGY
Outline
• Industry/Company Overview• SWOT Analysis• Segmentation / Positioning• Market Direction• Marketing Program• Performance Measure / Control
ECO/GREEN MARKETING STRATEGY
Industry Overview
• 40,000+ dry cleaning companies in US (employing ~190,000 workers)
• Dominated by small, independent, single-facility, family-owned businesses
• Over $10 billion in revenue in 2008• 15% sales decrease from 1Q 2007 to 1Q 2008• Companies feeling effects of current economy
ECO/GREEN MARKETING STRATEGY
Industry Overview
• Going “green” is most popular news in industry currently
• Conventional use of polychloroethlene (‘perc’)– Classified by EPA as toxic air contaminant, a
hazardous, potentially carcinogenic substance• California is the first state and only to mandate a
phase-out of Perchloroethylene (‘perc’) by 2023
ECO/GREEN MARKETING STRATEGY
Industry Overview
• “Greener” strategies and alternatives:– Closed loop systems; eliminate transfer spills
and recycle perc– Use of liquid silicone machine technology by
“GreenEarth” (1,300 affiliates world-wide, 700 in US)
– Use of cardboard hangers– Recyclable plastic covers
ECO/GREEN MARKETING STRATEGY
Today Cleaners Overview
• Kern-county business, started in 1990
• Multitude of products and services – The highest quality service available – same day
service, on premise cleaning/pressing, dry cleaning, household items, car hop service, 24 hour drop boxes, hanger recycling, etc…
– Utilizing ‘GreenEarth’ technology ®
• 10 convenient locations in Bakersfield
ECO/GREEN MARKETING STRATEGY
Key Strengths:Silicon-based, environmental friendly
detergent and cleaning process
Key Weakness:Prices are relatively higher than smaller
competitors
Key Opportunity:Businesses want to go
green orappear to be green
Expand business to eco/green oriented "big players" (PG&E, oil/gas companies, State Farms) and obtain long-term service contract to create an eco/green uniform cleaning services at a reasonably low cost.
Focus on eco/green services, and develop corporate membership program with benefits for returning customers
Key Threat:Laundry / Dry Cleaning business is easy to be
duplicated. Competitors can easily follow our steps
Continue focus on eco/green approach of laundry and dry cleaning. Develop strategy to include education of eco/green awareness. Position to become role model.
Focus on quality of services, and develop membership program with benefits for returning customers
TODAYCLEANERS
Internal Factors
Ext
erna
l Cis
rcum
stan
ces
Eco/Green SWOT Analysis
ECO/GREEN MARKETING STRATEGY
S-O Strategy
Expand business to eco/green oriented companies (PG&E, oil/gas companies, State Farms) and obtain long-term service contracts to create an eco/green uniform cleaning services at a reasonably low cost.
– 10 locations as business hubs, including potential delivery services (same day)
– Minimal capital– Potential loss of “smaller business”
ECO/GREEN MARKETING STRATEGY
Current Market Segmentation / Positioning
On-the-go business professionals who want • the practical way of cleaning their clothes
– Demand high-quality service and fast turn-around– Not too cost sensitive– Have a high brand loyalty
• the right way of cleaning their clothes– Eco/Green consciousness
ECO/GREEN MARKETING STRATEGY
Future Market Segmentation / Positioning
• Business / Companies– Kern County based– Uniforms, linens, curtains, cloths– Environmentally-conscious– Cost as secondary factor
• values reputation
ECO/GREEN MARKETING STRATEGY
Market Direction Strategy
• Sustainability– Recession– B2C revenue declining– Switch focus from B2C to B2B will supplement
the loss of revenue
ECO/GREEN MARKETING STRATEGY
Marketing Objectives
• Maintain less than 10% loss of current B2C sales per year.
• Add and maintain four new B2B clients / month.• Life Styles of Health and Sustainability
(LOHAS)
• Increase Customer awareness of our green facilities to a score of 80%
ECO/GREEN MARKETING STRATEGY
Financial Objectives
• Maintain gross profit margin
• Sales Revenue of $312,000 by March 15, 2010
ECO/GREEN MARKETING STRATEGY
Societal Objectives
• Eco/Green Technology Awareness– American Forests
• Sponsorship
– Monthly newsletters
– No Job loss
ECO/GREEN MARKETING STRATEGY
Marketing Mix - Product
• Current Products– Cleaning/Laundry
• New Offerings– B2B Pickup/Delivery– Features: Convenience, Assurance, etc.
ECO/GREEN MARKETING STRATEGY
Performance Measurement - Metrics
• Marketing– Obtain 4 new commercial customers / month over the
next year– Average $1000 revenue / B2B customer / month
• Financial– $312,000 incremental revenue by 2Q 2010
• Societal– Build awareness of ‘green’ technology using: radio
commercials, paper ads, website, etc…
ECO/GREEN MARKETING STRATEGY
Plan Implementation Control
• Strategic Control– Gauge organization’s effectiveness in managing
marketing, customer relationships, social responsibility, and ethics
– Conduct annual marketing audit to analyze capability and performance.
– Ensure efforts are aligned with objective and strategy.