eco/green marketing strategy today cleaners m arketing s trategy

ECO/GREEN MARKETING STRATEGY

TODAY CLEANERSMARKETING STRATEGY


Outline

• Industry/Company Overview• SWOT Analysis• Segmentation / Positioning• Market Direction• Marketing Program• Performance Measure / Control


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


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


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


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


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


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”


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


Future Market Segmentation / Positioning

• Business / Companies– Kern County based– Uniforms, linens, curtains, cloths– Environmentally-conscious– Cost as secondary factor

• values reputation


Market Direction Strategy

• Sustainability– Recession– B2C revenue declining– Switch focus from B2C to B2B will supplement

the loss of revenue


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%


Financial Objectives

• Maintain gross profit margin

• Sales Revenue of $312,000 by March 15, 2010


Societal Objectives

• Eco/Green Technology Awareness– American Forests

• Sponsorship

– Monthly newsletters

– No Job loss


Marketing Mix - Product

• Current Products– Cleaning/Laundry

• New Offerings– B2B Pickup/Delivery– Features: Convenience, Assurance, etc.


Marketing Mix - Promotion

“In By 11, Ready at 4”


Marketing Mix - Promotion


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…


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.

eco/green marketing strategy today cleaners m arketing s trategy

Documents