marketing plan cleaning service
TRANSCRIPT
Marketing Launch Plan
Mktg 761Spring 2008
SDSU
Prepared By:Tim ClarkKaci GordonRandy GormanSara KatzMichael Morris
Nitin Walia
Table of Contents
Introduction....................................................................................................................................45
Statement of Product Concept.......................................................................................................56
Ideation......................................................................................................................56Concept Statement...................................................................................................56Current Status...........................................................................................................67
Statement of Research Methodologies and Findings.....................................................................67
Concept Test.............................................................................................................67Prototype Testing.....................................................................................................78Market-use Test........................................................................................................78
Product Refinement / Alterations..................................................................................................89
Result of research findings.....................................................................................89Product Refinement...............................................................................................910
Market Situation..........................................................................................................................910
Target Market..........................................................................................................910Competitive Analysis...........................................................................................1112Market Size/Dynamic............................................................................................1314
Opportunities and Issues Analysis.............................................................................................1415
SWOT Analysis.....................................................................................................1415Federal Regulations.............................................................................................1415Key Issues/Hurdles..............................................................................................1516
Objectives..................................................................................................................................1617
Brand Awareness.................................................................................................1617Contribution to Brand Image/Equity...................................................................1617ATAR Model..........................................................................................................1617
Marketing Launch Strategies.....................................................................................................1920
Segmentation Strategy........................................................................................1920Positioning Recommendations...........................................................................2021Product Strategies................................................................................................2021Distribution Strategies.........................................................................................2223Pricing Strategies.................................................................................................2324Integrated Marketing Communications Strategies............................................2425Role of the Sales Force........................................................................................2526
Launch Action Programs...........................................................................................................2627
Timing and Controls.............................................................................................2627
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Marketing Launch Budget....................................................................................2728Contingency Plans...............................................................................................2728
Appendix A: Survey Questions & Results................................................................................2930
Appendix B: Market Data..........................................................................................................3233
Appendix C: Porter’s 5 Forces..................................................................................................3334
Appendix D: Integrated Marketing Communications Plan Action Plan Flow Diagram...........3435
Appendix E: Product Launch Cities..............................................................................................37
Appendix F: Marketing Communications Advertising and Promotional Budget.........................38
Appendix G: Ideation to Product Launch Timeline......................................................................40
Table of FiguresFigure 1 Importance Map.............................................................................................910Figure 2 Overall Industry Revenues...........................................................................1314Figure 3 ATAR Estimates...........................................................................................1718Figure 4 Product Strategy Diagram............................................................................2122Figure 5 Distribution Strategy Diagram......................................................................2223
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Introduction
Molly Maid Green is a line-extension of the traditional house cleaning service offered by
the Molly Maid, Inc. franchise. Molly Maid Green offers a house cleaning service using green
cleaning products, clothing, tools and equipment. Molly Maid Green cleaners will be certified
by Green Seal Inc.. The house cleaners will use products that are non-toxic and biodegradable,
with a formula makeup of various vegetable surfactants (which help the dissolvability of the
ingredients), emulsifiers, deionized water, organic fragrances and preservatives. There will be
no VOCs (volatile organic compounds). Molly Maid Green will use vacuums with HEPA
filtration that are certified by the Carpet & Rug Institute’s Green Label program. The Molly
Maid Green service providers will wear organic cotton uniforms.
We will leverage the fact that we clean over a million homes every year; an average of
one home every two minutes in the United States alone. Our product is a cleaning service
tailored to our client’s home and lifestyle. With families busier than ever, they can now feel like
they are managing their social responsibility with the selection of a simple service upgrade. This
new green option will help solidify our existing customer base by garnering additional brand
loyalty. Further, it will give first-time or occasional users a reason to utilize our service. This
green option can completely change our end-user experience.
Currently there is no standard definition of green. The Consumer Report’s website 1
agrees that the use of green is rather self-serving. “Green is a general claim that implies that the
product or packaging has some kind of environmental benefit or that it causes no harm to the
environment. There is currently no standard definition for the term. Unless otherwise specified,
there is no organization independently certifying this claim. The producer or manufacturer
1 Consumer Reports, http://www.greenerchoices.org/eco-labels/label.cfm?LabelID=152&searchType=Label&searchValue=green&refpage=labelSearch&refqstr=label%3Dgreen
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decides whether to use the claim and is not free from its own self-interest”1. The fact that the
label “green” does not have much meaning other than the consumer’s perception that is healthier
than a non-green product will work to our advantage. This lack of standard will not impact Molly
Maids Green since the green offering will adapt the green service offering as the industry
standards change.
Statement of Product Concept
Ideation
We will exploit current consumption changes in the cleaning industry by offering this
green service option. With the growing popularity of the green movement worldwide, we feel
Molly Maid Inc. should take action. This service option will provide franchisees and customers
an opportunity to eliminate the use of potentially harmful chemical-based cleaning products in
their homes. Concept responsiveness is anticipated to be high. Our Mission statement is to
“Increase the quality of life to families by offering a superior environmentally friendly home
cleaning service to households.” Providing this all-natural approach to a cleaner home is
essential in order to maintain our position as one of the top cleaning businesses in the industry.
Concept Statement
For busy families that are concerned about their family and the environment, Molly
Maid Green is the green household cleaning service that offers a convenient way to keep your
home clean and safe using our all-natural, non-toxic cleaning products that rival or surpass the
clean achieved from traditional cleaning products, with the added health and safety benefits
obtained from the elimination of man-made chemicals from your house. Our staff uses only
organic cotton cleaning cloths and clothing, and vacuums with Green Seal’s certification. Your
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babies, pets, and families will thank you. These benefits are available for only $6 more per visit
than you currently pay your excellent Molly Maid service.
Current Status
The creation of the Molly Maid Green service offering has completed the opportunity
identification and selection, concept generation, concept evaluation, and development phases of
the new product process, and will enter the launch phase shortly.
Statement of Research Methodologies and Findings
Concept Test
Our respondent group consisted of diverse members of the San Diego community and a
sampling of others around the country. We made an effort to contact a wide variety of
demographics.
Our team conducted qualitative research consisting of interviews and informal focus
groups. When speaking with these people, we used the survey questions in Appendix A: Survey
Questions & Results as a guide, and asked more in-depth questions where appropriate. Our team
also conducted quantitative research using an on-line survey. Survey questions and results are
included in Appendix A.
The sequence of survey questions was designed so that respondents were first questioned
regarding their current use of green cleaners. Respondents were then asked about their current
use of a professional housecleaner. Those people that currently use a professional housecleaner
were asked detailed questions about their current service, presented with the concept statement,
and then asked their likelihood to try. Questions regarding the respondents’ demographics
concluded the survey.
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Prototype Testing
Our service combines a maid service currently available to the market, eco-friendly green
cleaners currently available to the market, organic clothing, and eco-friendly tools. Since a new-
to-the-market product is not involved, prototype testing is not necessary.
Market-use Test
The primary goal of market-use testing for this service will be to assure the delivery of a
quality product. Market-use testing will consist of a monadic test, where consumers will receive
the Molly Maid Green service for a 30-day period. During this time, maids will use only eco-
friendly products. They will record any issues that arise (for example: a lack of eco-friendly
options for cleaning a particular area) and the team will work to address those issues as
seamlessly as possible. We will also record the ease of access to green cleaners, their actual cost,
and how long they last. General comments from the maids regarding ease of use and
performance improvements will be gathered and analyzed to determine the manageability level
of the service.
The user group will be chosen from the local San Diego area. Half of the user group will
be chosen from existing Molly Maid customers. The other half of the user group will consist of
both users that have another professional housecleaner, or do not currently have a housecleaning
service. User reactions will be gathered during the service time. During the market-use test,
modifications to the service will be made as the result of maid and user recommendations.
The team will also keep an eye on competitive reaction to the market-use test. Since this
service is easy to copy, special attention will be paid to the message delivered to the consumer
and the customer service levels of the maids.
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Product Refinement / Alterations
Result of research findings
Interview and survey respondents were positive toward the concept of Molly Maid
Green. Sixty-two percent (62%) of respondents currently use green cleaners, so most people
were able to immediately relate to our goals. Our respondents are mostly likely to use green
cleaners due to a concern about toxicity from chemical-based cleaners (66%) and a concern for
the environment (78%).
Another encouraging point is that fifty-four percent (54%) of users encourage others to
use green cleaners, as well. We believe this is due to the strong social influences that drive
people to use green cleaners themselves. This should translate into significant word-of-mouth
advertising from customers.
After asking respondents about their current use of green cleaners, we asked them about
their current use of a professional housecleaner. We were alarmed to find that 90% of
respondents that use a professional housecleaner use a sole proprietor versus a service
corporation. That percentage was much higher than expected, and is discussed in more detail in
the Key Issues/Hurdles section. A more promising statistic is that only 25% of housecleaners
that provide their own cleaning products provide green products.
Respondents were then presented with the Molly Maid Green concept statement. The
top-two-box score for the likelihood to buy was 50%. The top-two-box score for the willingness
to pay $6 more per visit for the use of green cleaners was 62%. These numbers are encouraging,
and supported by the percentage of respondents that currently use green cleaners (also 62%).
The importance map below shows the majority of respondents “strongly agree” or
“agree” that green cleaners are healthier than chemical-based cleaners and contribute to a better
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and healthier environment. The map also shows that most respondents weigh health benefits of
green cleaners about the same as environmental concerns.
Figure 1 Importance Map
Product Refinement
Survey results show that respondents are unsure of the efficacy of green cleaners. With
an average score of 2.62, most respondents are not sure that green cleaners are more effective
than chemical-based cleaners. With this in mind, we will emphasis the performance of green
cleaners when communicating the benefits of the Molly Maid Green service to consumers.
Market Situation
Target Market
Demographic Profile
According to MROI, people who use house cleaning services are predominantly
Caucasian married couples with kids ages 6+. They typically live in homes valued at more than
$500K and earn an annual household income of more than $150K. The Northeast and Western
United States index greater than 100 in terms of using house cleaning services.
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Psychographic Profile
The typical house-cleaning consumers are double income families. Both parents work
long days and drive carpools for their children’s activities. They are proud to own their own
home, but are just too tired at the end of the day to take care of their house as they would like to.
There are two primary reasons that these consumers would choose a green cleaning service over
a traditional cleaning service.
1. Eco-conscious
The Natural Marketing Institute found that the number of U.S. consumers using natural
household cleaning products grew by 13% from 2004 to 2005.2 This trend has been driven by a
heightened awareness of the environment, as well as green cleaning products becoming more
effective, less expensive and more readily available.
2. Chemical Sensitivity/Allergies
The United States Environmental Protection Agency (EPA) found that indoor air can be up to
five times more polluted than outside air.3 This pollution can be caused by many factors
including gas stoves, carpet and household cleaning products. The American Lung Association
conducted research that drew a connection between short term increases in indoor pollution and
an increased number of heart attacks, particularly in elderly patients. They also saw an increase
of asthma attacks in children and hospitalization of patients with acute respiratory diseases.
Competitive Analysis
The Janitorial Services industry is highly fragmented and highly competitive.4 The
barriers to entry are low as home cleaning has low skill and capital requirements (Appendix C:
Porter’s Five Forces).2 LOHAS Market 2005 Research Review: Marketplace Opportunities Abound.” 3 “The Air We Breathe – Green Cleaning Reduces Risk for Allergy and Asthma Sufferers.” www.greencleancertified.com accessed on 4/15/084 “Janitorial Service in the US.” IBISWorld Industry Report. February 28, 2008.
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As more Americans are becoming eco-conscious, the cleaning industry has begun to
embrace the green cleaning concept. The only large house cleaning franchise that has begun
offering green services is Maid Brigades. However, there are hundreds of smaller local cleaning
services that offer green cleaning services. The market size is considerable and growing, so
there is room for smaller local, and established national competitors.
Franchise Competitors
Maid Brigades: Maid Brigades has more than 400 franchises across the U.S. Maid Brigades
launched a Certified Green residential cleaning service in 2007.5 All franchisees use products
that are certified by Green Seal Inc., a non-profit organization that sets green standards. Maid
Brigade franchisees also use vacuums that are certified by the Carpet & Rug Institute’s Green
Label program, microfiber cloths instead of paper towels and concentrated cleaning solutions.
To promote their new service, Maid Brigades hired Annie B. Bond, a nationally acclaimed
author and expert on environmental living, to be their green spokesperson and consultant. Maid
Brigades no longer offers a traditional, non-green, cleaning service.
Merry Maids: Merry Maids is the largest cleaning service in the U.S. with more than 900
franchises. Founded in 1979 in Omaha, Nebraska, Merry Maids cleans more than 300,000
homes per month. Currently, Merry Maids does not have a green offering.
The Maids: The Maids was also founded in Nebraska in 1979. The Maids boasts a unique 22
step Healthy Touch® Cleaning system and state of the art equipment like back pack vacuums
with HEPA filtration. It does not however, offer a green cleaning service.
The chart below summarizes Molly Maid franchise competitors’ offerings:
5 “Maid Brigade Launches Certified Residential Green Cleaning Service.” http://www.franchisewire.com accessed on 4/15/08
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FranchisesCompany Green Green Accreditation/Product Franchises Marketing
Molly Maids Yes
Green Seal Inc. & Vacuums are certified by the Carpet & Rug Institute's Green label program, Microfiber cloths, Green cleaning solutions, Green uniforms
450Co-op advertising, Ad Slicks, National Media
Maid Brigade Yes
Green Seal Inc. & Vacuums are certified by the Carpet & Rug Institute's Green label program, Microfiber cloths, Green cleaning solutions
400
Co-op advertising, Ad Slicks, National Media, Regional Advertising, Annie B. Bond
Merry Maids No None 900Ad Slicks, National Media
The Maids NoBack pack vacuums with HEPA filtration
726Co-op advertising, Ad Slicks, National Media, Regional Advertising
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Market Size/Dynamic
In 2006, residential housecleaning accounts for 12% of the overall Janitorial services in
the U.S. That translates into $4,852 million dollars of revenue per year.6 Overall industry
revenues are expected to grow at 3.4% per year per the chart below.
REVENUE
Figure 2 Overall Industry Revenues
The green industry is also growing. In 2005, Lifestyles of Health and Sustainability
(LOHAS) described an estimated $209 billion U.S. marketplace for goods and services focused
on health, the environment, and sustainable living.7 They estimate 19% of the U.S. Population or
41 million people are extremely concerned about the environment, while an additional 58% of
the U.S. population is moderately concerned about the environment.
6 “Janitorial Service in the US.” IBISWorld Industry Report. February 28, 2008.7 “LOHAS Background.” http://www.lohas.com/about.html accessed on 4/16/08
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Opportunities and Issues Analysis
SWOT Analysis
Strengths
Lifestyle options that are all natural, non-toxic, safe, and effective are actively promoted by
major public figures and society as a whole.
Our product is a cleaning service tailored to our client’s home and lifestyle.
We will be the first to actively promote a green service option.
We expect quick franchise adoption from both current franchisees and potential ones.
Weaknesses
Green cleaning service is easily copied and swift competitive reaction is expected.
Many consumers that use professional housecleaning services use a sole proprietor. It may
be difficult to convince these consumers to switch to a service corporation.
Opportunities
The cleaning industry is one of the fastest growing segments of the U.S. economy.
The green cleaning industry is growing quickly.
Residential and cleaning is a tremendous industry with no signs of slowing down.
Green efforts are receiving a massive amount of public relations attention.
Threats
The market size is considerable and growing with plenty of room for both small local and
established national competitors.
Federal Regulations
There are several federal regulatory agencies that may impact the Molly Maid Green
solutions and usage, advertising and marketing. These agencies are the U.S. Consumer Product
Safety Commission, U.S. Environmental Protection Agency (EPA) , National Institutes of Health
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(NIH, and the Centers for Disease Control and Prevention (CDC). An example of the affect on
the industry is “The Kid Safe Chemicals Act”.8 This act was recently introduced into the
legislature. It will mandate that manufacturers test their product (if it contains one of some 300
listed chemicals) and provide hazard and exposure information to the EPA and consumers. This
law may change Molly Maid Green marketing message to “Molly Maids Green keeps your Kids
safe by only using Green Cleaning solutions that comply with the Kid’s Safe Chemical Act of
2008”.
Key Issues/Hurdles
Survey respondents are unsure of the effectiveness of green cleaners (refer to Appendix
A, question 5). Many are not convinced that green cleaners clean as well as traditional chemical
cleaners. In order to gain significant consumer adoption, Molly Maid, Inc. will need to provide
the consumer with scientific evidence that green cleaners clean and remove bacteria as well as
chemical-based cleaners.
Of our survey respondents, ninety percent (90%) use a sole proprietor as their
professional house cleaner. It was theorized that this heavy use of sole proprietors was due to the
unusually high availability of low-cost immigrant labor available in the surveyed community.
These consumers provide their own cleaners (and therefore already choose the cleaners used in
their home) and are unlikely to switch to a service corporation. In order to gain significant
consumer adoption, Molly Maid will need to attract new consumers by emphasizing benefits of
using a service corporation, such as reliability and insurance provisions.
Maid Brigade currently offers a green cleaning service. They do not offer cleaning
services using non-green products. They are an established industry leader and has first mover
advantage.
8 http://www.greenerchoices.org/products.cfm?product=greencleaning&page=GovtIndustry)
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Objectives
Brand Awareness
Our goals are to increase brand awareness among current Molly Maid customer base to
100% and among the general population to 25% by the end of year 1. Our adoption goal is 30%
or greater (i.e., service upgrade selection) within the first 12 months.
Contribution to Brand Image/Equity
Molly Maid Green will increase consumer brand affinity for Molly Maid, Inc. We will
measure this using the net promoter score (NPS) pre- and post-study. The use of Molly Maid
Green should increase the NPS post-study and have a positive impact on our revenue stream.
The cleaning industry is one of the fastest growing segments of the U.S. economy.
Residential cleaning is a tremendous industry with no signs of slowing down. Our franchisee’s
only need to verify liquidity of $30,000 to apply for a new franchise, with total start-up and
initial operating costs estimated at just under $100,000. With leverage available to assist with
start-up and operating costs, and with Molly Maid Inc. consistently being named one of the top
franchise opportunities by magazines like Entrepreneur, new Molly Maid franchise locations
should continue their positive annual growth rate.
ATAR Model
One of the prescreening tools available is the ATAR Model (Awareness, Trial,
Availability and Repeat). As instructed we will only focus on the first three areas, and we will
not address the adopting percentage that eventually become repeat purchasers, or how many
times they repeat in a given year. The metrics behind the model require estimating the
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percentage of our target consumer base that are aware of the product, would try the product if
available, and actually have the product available to them.
Estimates
ItemMarket
ResearchConcept
TestProduct Use
TestComponent
Testing Market Test Market Units XX X X
N/A
Awareness X X XTrial XX X Availability XX Repeat Not ApplicableConsumption XX X X Price/Unit XX X X XCost/Unit X
Figure 3 ATAR Estimates
In the ATAR Estimates spreadsheet above, some categories are considered ‘best source
for that item’ marked by XX and others are considered ‘some knowledge gained’ marked by X.
We only performed qualitative research with very limited focus group discussions and
quantitative research with our survey. Our survey results for ‘Trial’ when asked “How likely
would you be to use a green cleaning service?” yielded a 50% top 2 box score. Our survey
results for ‘Price/Unit’ when asked “Would you pay $6 more per visit for the use of only green
products?” yielded a 62% top-two-box score. If we deflate our top-two-box score by 15%-20%
for ‘definitely’ and 45%-50% for ‘probably’ to account for overstating, we would end up with
results around 35% and 45% respectively.
Other statistics used for assumptions were 450 Molly Maid franchisees in the US,
franchise establishment year of 1984 (which is when the company first began franchising), 17
million unique households cleaned by Molly Maid around the world, approximately 12 million
US households using paid domestic cleaning services, 4,000 US Molly Maid cars, and 2 homes
cleaned every minute in the US (8 hour days considered). This information was taken from
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Franchise Solutions 2008 published data, and from a 2008 interview with Molly Maid President
Kristi Mailloux.
Buying Unit = Head of household (HOH). For Molly Maid Green this will be the male
or female HOH making the decisions about cleaning services. Aware = Buying unit hears about
existence of new product with differentiating characteristics. Here we will assume 95%
awareness with our existing customer base since we have a current database. Availability =
Effort required to find product given that buyer wants to try the product. Here we will assume
90% availability since there is some likelihood not all franchisees will push or adopt the service.
Trial = Use of product at some cost to buyer. In our case this would be purchase since we are not
offering free samples.
Buying Units - existing customer base
Test 1450 franchisees x (365 - 62 est. off days / 3 eight hr blocks x 60 x 2) =
5,454,000 cleanings
Test 2 4,000 x 4/day x (365 - 62 estimated off days) = 4,848,000 cleaningsAverage 5,454,000 + 4,848,000 / 2 = 5,151,000 cleanings
US Customers 5,151,000 / (2.88 cleanings per month x 12 months) = 149,045 customers
Results149,045 customers x 95% awareness x 90% availability x 40% (average would buy and would pay %) = 50,973
$6 Incremental profit/unit - $0.50 cost/unit including materials and additional promotion = $5.50 x 50,973 = $280,354
There are some key limitations to the ATAR Model. Primarily, all three areas we used
for analysis and estimation are based heavily on estimation without any specific empirical
support. When dealing with such a large sample size, and using percentages and multiplication,
a small error can result in a huge swing in our estimates.
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Marketing Launch Strategies
Segmentation Strategy
Molly Maid Green will segment the market both geographically and behaviorally. We
are focusing on 25 cities for the product launch (refer to section Appendix E). These markets
were chosen in order to get a cross-regional sample to ensure the concept can be successful on a
national scale.
Molly Maid will target its marketing launch plan on busy eco-conscious families.
Through relevant messaging in targeted mediums, Molly Maid will be able to communicate a
solution to the consumer’s pain point. The primary area of focus will be on the franchisee’s
existing customer base. The green option will be offered as an upgrade to our current packages.
We anticipate that new customers as well as existing customers will drive sales – this is not a
zero-sum market.
The green option will not damage our traditional service and reputation. There is a risk
that current consumers may not react well when learning that their conventional cleaning
products may contain harmful chemical pollutants. However, recent public awareness of green
alternatives to many aspects of our daily lives has already informed most of the public of these
risks. We will focus on the positive attributes of our natural cleaning products. We will push the
option as a return to nature. Messaging will center on a ‘wonderfully fresh, aromatic, naturally
sparkling clean’ result.
Positioning Recommendations
Molly Maid will position its green cleaning service as the “greenest clean” or the most
environmentally friendly house cleaning service. By focusing on the product attribute, we can
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differentiate our service from other franchises like Maid Brigade whose product is not as robust.
The positioning statement is:
For busy families that are concerned about their family and the environment, Molly Maid
Green is the green household cleaning service that offers a convenient way to keep your
home clean and safe using our all-natural, non-toxic cleaning products that rival or
surpass the clean achieved from traditional cleaning products, with the added health and
safety benefits obtained from the elimination of man-made chemicals from your house.
Product Strategies
With the introduction of Molly Maid Green, Molly Maid Inc. will offer two services:
their traditional house cleaning service and green house cleaning. Molly Maid Green will
generate customers through viral marketing and cross-selling. The existing Molly Maid
customer base will be incentivized to share their Molly Maid Green experience with friends and
acquaintances via word-of-mouth. The green message will be reinforced by the Molly Maid web
site. Customers will also be captured from the conversion of traditional Molly Maid customers
and from new Molly Maid customers, including those with sensitivities to chemicals such as
individuals with autism or allergies. Since the profit margin for Molly Maid Green customers is
greater than the margin for traditional Molly Maid customers, conversion is both acceptable and
encouraged. The current Molly Maid product mix includes daily, weekly, monthly, one-time,
and deep-cleaning services. This mix will be duplicated for the Molly Maid Green service
offering.
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Figure 4 Product Strategy Diagram
In the future, Molly Maid plans to house brand their organic cleaning products and offer
them to the general public. When this occurs, an enhancement of the product mix will be
required.
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Distribution Strategies
Molly Maid is a franchise service business. Its distribution strategy is B2b2C. The
franchisor, Molly Maid Inc., a division of Service Brands International, provides its franchisees
with everything required to operate a Molly Maid franchise: training, business tools, ongoing
support, and marketing support. The franchisee distributes the Molly Maid service directly to the
customer.
Figure 5 Distribution Strategy Diagram
Molly Maid Inc. offers “Right Start” training and operations training to teach the
franchisee everything they need to know to start and operate Molly Maid. Training is offered at
Molly Maid headquarters in Ann Arbor, Michigan, at the franchisee’s location, and at regional
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training centers. Molly Maid Inc. supplies the franchisee with comprehensive business
management software to operate the business. Ongoing support includes newsletters, meeting,
toll-free phone support, grand opening kits, Internet access, security and safety procedures, field
operations assistance and evaluations, regional service managers, and purchasing cooperatives.
Molly Maid Inc. also provides the co-op advertising, ad slicks, and national media campaigns.
Molly Maid Green is an additional service offering that will be provided by Molly Maid
Inc. to its current and future franchisees under the terms of their current franchise agreements.
The current Molly Maid distribution channel will be expanded to include those customers
desiring a “green” cleaning.
Molly Maid Inc. will assist the franchisee to reach the end customer and provide the
franchisee with the marketing materials to spread the Molly Maid Green message. With the
franchisee’s permission, all current Molly Maid customers will be telephoned to inform them of
the new service offering. In addition, plant seed mailer cards will be sent to all current and
potential customers, flyers will be left with all current customers during their regularly scheduled
cleaning, and door hangers will be left for the neighbors of current customers.
Pricing Strategies
Molly Maid Green will follow a value pricing strategy and price its green service in
accordance with the results of the marketing survey discussed previously. Molly Maid Green
service will be offered at a $6.00 per visit premium above the cost of a traditional Molly Maid
service call. Additional product costs are estimated at 3% based on a preliminary per ounce
comparable. This would result in a greater margin for Molly Maid, Inc., and a superior gross
profit margin for our franchisees, so we do not expect any issues with franchisee adoption or
challenges from current franchisees.
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Only one competitor, Maid Brigade, offers an equivalent “green” cleaning service. It is
unknown how much prices increased when the green service was introduced. Perry Phillips, the
Executive Director of the Association of Residential Cleaning Professionals estimates that most
green cleaning services cost about $5 to $10 more per hour.9
Our market surveys indicate that a $6.00 per visit premium will generate acceptance. By
pricing our service below that of Maid Brigade, we expect to convert 10% of Maid Brigade’s
green customers to our Molly Maid Green service.
Integrated Marketing Communications Strategies
The strategy behind the IMC (Integrated Marketing Communication) plan is to ride the
wave of publicity, interest, and enthusiasm for an environmentally friendly lifestyle which is
formally celebrated on Earth Day. We have planned our product launch on April 22, Earth Day
2009.
The IMC Plan, Appendix D: Integrated Marketing Communications Plan Action Plan
Flow Diagram, illustrates the media mix and timing of the IMC plan. The perspective of the IMC
plan is from the consumer of the Molly Maid Green service. The Molly Maid franchisees
education and support will begin six months prior to the launch date. This schedule is reflected
in Appendix G: Ideation to Product Launch Timeline. The franchisee support involves
positioning and pricing, supplying the distribution channel with the organic cleaning solutions,
supplies and tools (vacuums and clothing), instructions on use and implementation, and
promotional plan awareness.
Consumer awareness, product trial, and repeated product use is the goal of the IMC plan. The
plan has three components: publicity, advertising and promotions.
9 Onion, Amanda. “Americans Embracing ‘Green Cleaning’.” http://abcnews.go.com/Technology/Business/story?id=1544322 accessed on 4/16/08
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The media mix leverages business magazines and newspaper in the publicity phase. The
business magazines will create awareness in the investor and entrepreneurial space for
Molly Maid and Service Brands. The newspapers will generate awareness for the
consumer; the large national newspapers will create a buzz along the “green” efforts. The
Wall Street Journal and USA Today audience aligns with our market demographics.
The advertising piece of the IMC uses cable TV, FSI (Free-Standing Inserts), direct
mailers and Internet search portals to further target our market segments. The desired
cable TV channels are HGTV (Home and Garden TV) and Oxygen. These were selected
because their content aligns with the home and the environment and audience matches
our demographics. The FSIs and direct mailers will create consumer awareness directly
for the target market. Twenty-five metropolitan areas will be targeted in the Earth Day
Launch. The list of areas is shown in Appendix E: Product Launch Cities. Internet search
engine optimization (SEO) will create awareness and sales leads based on the search
keywords like “home green cleaning service molly maid brigade maidpro merry”.
Promotions target the consumer as well as the franchisee and are designed to stimulate
sales revenue. The media mix of the IMC plan is designed to create awareness and trial
and repeat.
Please refer to Appendix D: Integrated Marketing Communications Plan Action Plan
Flow Diagram.
Role of the Sales Force
The role of the sales force is unique in the franchisor and franchisee scenario. There is no
“sales force” per se. The franchisor performs the majority of advertising on behalf of the
franchisee. This advertising educates and informs the consumer of the Molly Maid product
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offerings. Since there is little need for consumer training and education on house cleaning; this
posturing is appropriate.
Launch Action Programs
Timing and Controls
Timing of the launch program will coincide with Earth Day 2009. Earth Day is an
internationally recognized event observed by 174 countries 10. The media focus on global
warming, environmentally safe products, and small ecological footprint companies will be
leveraged to drive product awareness and interest. The advertising timing kicks off on Earth Day
with three sequential weeks of cable TV, followed by alternating bimonthly direct mailers and
FSI’s. The constant use of the search engine optimization will reinforce awareness of the green
offering. These tactics support our strategy to generate repeated product awareness in our target
markets. The IMC plan represents one year of the marketing communications strategy. Six
months after the launch, in October 2009, the plan will be revisited and updated.
Controls of the launch efforts involve the identification of proper performance metrics,
the periodic measurement of these values, and the comparison against predetermined thresholds.
The effectiveness of the launch can only use the trial or use of the product as a metric. Molly
Maid corporate headquarters will be responsible for measuring and aggregating the enterprise
measurements for the franchisees; however each individual franchisee will also measure their
own performance. The franchisee software is capable of providing this sales data to both the
franchisee and Molly Maid headquarters. An initial number of customers and cleanings will be
obtained to create a baseline. Weekly metrics of the Molly Green sales will be collected and
compared to the baseline. The total sales, percent growth (both new and existing to identify
10 http://ww2.earthday.net
26
consumer shifting), relative and absolute, will be used to determine the effectiveness of the
marketing communications strategies.
Marketing Launch Budget
The marketing launch budget is approximately $9.1 million, which can be divided as $8.6
million for advertising and $0.5 million for promotional activities. Appendix F: Marketing
Communications Advertising and Promotional Budget provides additional details of the launch
budget. A cooperative agreement between the Molly Maid headquarters and Molly Maid
franchisees will result in cost sharing of these launch expenses. This marketing and advertising
budget will supplant the current Molly Maids marketing and advertising budget; it does not
represent an absolute increase in spending. Because Molly Maids is a private company, details of
the current budget are unknown. We expect this is a marginal increase of expenses but the
incremental profit will offset this increase. The strategic net outcome is higher profit margins
with a larger customer base.
Contingency Plans
1. Customer unwilling to pay premium for green service
If customers are unwilling to pay the premium for Molly Maid Green service, Molly Maid
will reduce the price of this service to cover the differential cost between their traditional
service and green service. This will maintain Molly Maid’s “earth friendly neighbor”
corporate image and generate good will toward the company. In addition, Molly Maid will
reduce its green service marketing efforts. The service will only be marketed to current
customers and will rely on recommendations from current customers to enroll new
customers.
2. Customers indifferent to green service offering
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If there is insufficient interest in the Molly Maid Green service for the buying cooperative to
purchase supplies at 10% above the anticipated price, Molly Maid will discontinue its green
service and continue to offer its traditional cleaning service.
3. Green industry growth slows
If the industry growth slows or goes flat, Molly Maid will continue to offer it’s green service
but will reduce marketing efforts. The service will only be marketed to current customers and
will rely on recommendations from current customers to enroll new customers.
4. Green cleaners proven to be inferior to traditional cleaning chemicals
If green cleaners are scientifically demonstrated to be inferior to traditional cleaners and/or
this discovery eliminates customer interest in a green cleaning option, Molly Maid will
discontinue its green service and continue to offer its traditional cleaning service.
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Appendix A: Survey Questions & Results
Use of Green Cleaners
1) Do you use green (environmentally friendly) cleaning products in your home?Yes = 62%No = 38%
2) If you use green cleaners, approximately what % of your cleaning products are green? <25% = 36 (45%)25% = 16 (20%)50% = 16 (20%)75% = 12 (15%)100% = 0* NOTE: Above percentages are for the 80 that responded “Yes” to #1.
3) If you use green cleaners, why (select all that apply)? Green cleaners clean better = 16 (20%) Allergies to chemicals (or other allergies) = 18 (23%) I’m concerned about toxicity = 53 (66%) Green cleaners are better for the environment = 62 (78%)* NOTE: Above percentages are for the 80 that responded “Yes” to #1.
4) If you use green cleaners, what types of cleaners do you use (select all that apply)? All-purpose Cleaners (countertops, appliances) = 60 (75%) Dishes (liquid, dishwasher) = 19 (24%) Glass (mirrors, windows) = 25 (31%) Bathroom (tub & tile, daily shower) = 28 (35%) Floors (cleaner, mop pads, sweeping cloths) = 23 (29%) Laundry (detergent, dryer sheets, fabric softener) = 32 (40%) Specialty (granite, marble, stainless steel, wood) = 21 (26%) Air Fragrance (room spray, aroma sticks, candles) = 69 (86%) * not believable* NOTE: Above percentages are for the 80 that responded “Yes” to #1.
5) Do you perceive green cleaners to be as effective as chemical-based cleaners?1: Definitely 2: Probably 3: Not Sure 4: Probably Not 5: Definitely Not
Average: 2.62
6) Do you believe that using green cleaners in your home:Strongly Agree Somewhat Agree Not Sure Somewhat Disagree Strongly Disagree
1 2 3 4 5
- Is healthier than using chemical-based products? Average = 1.68- Contributes to a better/healthier environment? Average = 1.67- Is socially responsible? Average = 1.71- Reduce allergies and/or other respiratory issues? Average = 2.26- Is less expensive than using other cleaning products? Average = 3.48
7) Would you, or do you, encourage other people you know to use green cleaners?YES = 70 (54%)NO = 58 (46%)
8) Please tell us below what other green/organic efforts your lifestyle includes? (i.e.: organic foods, hybrid vehicle, recycling, etc.)Organic Foods = 42%, Recycle = 65%, Energy Conservation = 15%
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Use of Professional Housecleaner* NOTE: Percentages for questions 10 – 14 are for the 60 that responded “Yes” to #9.
9) Do you use a professional housecleaner? (if No, please skip to Demographics section)
YES = 60 (47%)NO = 69 (53%)
10) Do you use a service corporation (e.g. Molly Maid, Merry Maids, Maid Brigade, MaidPro, etc.) or a sole proprietor?Service Corporation = 6 (10%)Sole Proprietor = 54 (90%)
11) How many times per month? Average = 2.88
12) How many hours per visit? Average = 3.7
13) Who supplies the cleaners used during the cleaning service?Service provider provides them = 15 (25%)I provide my own = 45 (75%)
14) Does the service provider offer the use of green cleaners?YES = 4 (27%)NO = 11 (73%)NOTE: For this question, only respondents that answered “Service provider provides them” to question #13 were used.
CONCEPT STATEMENT:For eco-friendly couples and Families, Molly Maid Green is the organic green household cleaning service that offers an easy way to have a clean and safe home because of its non-toxic natural cleaning products and eco-conscious maids. (Please Note: The use of the Molly Maid name is for educational purposes only. This is not an actual Molly Maid project).
15) How likely would you be to use a green cleaning service? Top 2 Box Score = 50%
Definitely Probably Think I Not Sure Think I Probably DefinitelyWould Would Would Would Not Would Not Would Not
1 2 3 4 5 6 7
NOTE: For this question, I considered all 84 people who answered the question, regardless of their response to question #9. Since we did a 7-point question instead of 5-point question, the “Top 2 Box Score” includes all responses that were 1, 2, or 3.
16) Would you pay $6 more per visit for the use of only green products? Top 2 Box = 62%
Definitely Probably Think I Not Sure Think I Probably DefinitelyWould Would Would Would Not Would Not Would Not
1 2 3 4 5 6 7
NOTE: For this question, I considered all 92 people who answered the question, regardless of their response to question #9. Since we did a 7-point question instead of 5-point question, the “Top 2 Box Score” includes all responses that were 1, 2, or 3.
Demographics
17) What is your gender?FEMALE = 71 (55%)
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MALE = 57 (45%)
18) What is your age?
18-24 = 025-29 = 24 (19%)30-39 = 49 (39%)40-49 = 30 (24%)50 & up = 22 (18%)
19) What is your marital status?MARRIED = 92 (74%)UNMARRIED = 33 (26%)
20) What is your household status?No Kids = 46 (41%)Kids at Home = 49 (43%)Empty Nest = 18 (16%)
21) What is your household work status?Full-time (Single) = 27 (26%)Both Full-time (Self & Other) = 41 (39%)Full-time & Part-time (One Each)= 12 (12%)Full-time & Unemployed (One Each) = 17 (16%)Retired (One or Both) = 7 (7%)
22) What is your total household income?< $50,000 = 3 (2%)$50,000-$85,000 = 26 (22%)$85,000-$125,000 = 33 (28%)> $125,000 = 58 (48%)
23) What is your educational status?HS Dip = 5 (4%)2-yr Degree = 9 (7%)4-yr Degree = 67 (53%)Grad Degree = 29 (23%)Post-Grad Degree = 16 (13%)
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Appendix B: Market Data
Total U.S. PopulationResults: % of consumer segments agreeing completely/somewhat that they are willing to spend 20% more for products that are made in an environmentally friendly and sustainable way. Source: The National Marketing Institute
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Appendix C: Porter’s 5 Forces
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Appendix D: Integrated Marketing Communications Plan Action Plan Flow Diagram
Launch onEarth Day
Weeks -4 -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
3/25
4/1
4/8
4/15
4/22
4/29
5/6
5/13
5/20
5/27
6/3
6/10
6/17
6/24
7/1
7/8
7/15
7/22
7/29
8/5
Morning News Shows-Today Show & GMA,
Opra
NewspapersFSI
(Free Standing Inserts)
FSI FSI
Coupon Value Pack Direct
Mailers
Coupon Value Pack
Direct Mailers
Coupon Value Pack
Direct Mailers
Business Magazines and Websites-Business WeekFranchise Times
Major Newspapers and Websites-USA Today
Wall Street Journal
Cable TV-HGTV,
Oxygen
2009
Give Yourself a Summer Break
Franchise Sales Contest Franchise Sales Contest
Mother'sDay
Internet PPC (Pay-Per-Click)
PUBLICITY
ADVERTISING
PROMOTION
Launch
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Weeks 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37
8/1
2
8/1
9
8/2
6
9/2
9/9
9/1
6
9/2
3
9/3
0
10
/7
10
/14
10
/21
10
/28
11
/4
11
/11
11
/18
11
/25
12
/2
12
/9
12
/16
12
/23
12
/30
FSI FSI FSI
Coupon Value Pack
Direct Mailers
Coupon Value Pack
Direct Mailers
Sales Contest
2009
Cleanupfor the Holiday's
Franchise Sales Contest
Internet PPC (Pay-Per-Click)
PUBLICITY
ADVERTISING
PROMOTION
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Appendix E: Product Launch Cities
No. Metropolitan area1 New York2 Los Angeles3 Chicago4 Houston5 Philadelphia6 Phoenix7 San Antonio8 San Diego9 Dallas10 San Jose11 Detroit12 Indianapolis13 Jacksonville14 San Francisco15 Columbus16 Austin17 Memphis18 Baltimore19 Fort Worth20 Charlotte21 El Paso22 Milwaukee23 Seattle24 Boston25 Denver
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Appendix F: Marketing Communications Advertising and Promotional Budget
8,590,000.00$
540,000.00$
Total: 9,130,000.00$
Advertising
Promotional
Production Costs = 1,125,000.00$
MediaUnit
Costs
No.of
Units Total
TV 500,000.00$ 2 1,000,000.00$ Broadcast TV -$
Internet 5,000.00$ 1 5,000.00$ CATV 150,000.00$
Print 120,000.00$ 1 120,000.00$ Print 6,935,000.00$
Internet 380,000.00$
Production Costs 1,125,000.00$
8,590,000.00$
Promotional Costs
Event Anticipated Cost Cost BasisLaunch 100,000.00$ guessedOprah -$ guessedMothers Day 100,000.00$ guessedSummer Break 100,000.00$ guessedChannel Sales Contest A 60,000.00$ Maui Trip for top 10 FranchiseesChannel Sales Contest B 60,000.00$ Maui Trip for top 10 FranchiseesChannel Sales Contest B 60,000.00$ Maui Trip for top 10 FranchiseesChannel Sales Contest C 60,000.00$ Maui Trip for top 10 Franchisees
Total: 540,000.00$
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Recurring Advertising CostsCost per
Week
Noof
WeeksLine
CostsComponent
CostsAdvertisingCable TV 150,000.00$
HGTV 25,000.00$ 3 75,000.00$ Oxygen 25,000.00$ 3 75,000.00$
Internet 380,000.00$ Pay-per-Click Google 10,000.00$ 38 380,000.00$
Print 6,935,000.00$ Newpaper FSI Metro Areas
35000 25 875,000.00$ 6 5,250,000.00$ Mail Direct Mailer
5000 25 125,000.00$ 6 750,000.00$ Coupon Pack
4500 25 112,500.00$ 6 675,000.00$ Magazine
Home&GardenMartha Stewart 80,000.00$ 1 80,000.00$
GoodHouskeeping 50,000.00$ 1 50,000.00$ Real Simple 130,000.00$ 1 130,000.00$
1,432,500.00$ 8,590,000.00$ Recurring
and Production
Costs
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Appendix G: Ideation to Product Launch Timeline
Opportunity Identification & Selection: Industry research Market research
Concept Generation: Brainstorming
Concept & Project Evaluation: Regulatory environment research Conduct qualitative testing via one-on-one interviews Conduct quantitative testing via on-line survey
Development (Technical & Marketing): Marketing plan & material
Buy & place media Update supply chain to source the following: cleaning products, uniforms, tools, vacuums Obtain certifications Revise web site Employee training
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