spin cycle marketing plan
DESCRIPTION
For my first EOTO Solutions project, I created a marketing plan for Spin Cycle Cafe Laundromat in Connecticut. Because I had a short deadline, my supervisor had completed a lot of the tactical work for me. However, she liked my plan enough to keep me on the team for future marketing plan projects.TRANSCRIPT
Marketing Plan Prepared By
EOTO Solutions
Prepared For Spin Cycle Café Laundromat
www.spincyclecafe.com
Table of Contents
Spin Cycle Café Laundromat | TOC
I. Executive Summary 1
II. Situation Analysis Overview 2
Individual Service Breakdown 3
Target Market Analysis 5
Target Market Segmentation 6
— Permanent Resident Demographics 7
— College Student Demographics 8
Consumer Analysis: Julie Hall 9
Consumer Analysis: Bob & Sue White 10
Consumer Analysis: Clyde & Lydia Czu 11
Consumer Analysis: Lisa Dez 12
Distribution Network Analysis 13
Competitive Analysis 14
Current Financial Situation 15
Historical Marketing Results 16
Macroenvironment 17
SWOT Analysis & Action Plan 18
III. IMC Objectives & Issues 19
IV. Marketing Strategy 20
V. Creative Strategy 21
Creative Brief 21
Big Idea 22
VI. MarComm Strategies & Tactics 23
Promotional 23
Events 24
Public Relations 25
Web & Other 26
VII. Campaign Timeline 27
VIII. Campaign Budget & ROI 28
IX. Evaluation 29
X. Conclusion 30
XI. Appendices 31
I. Executive Summary
Without a doubt, Spin Cycle Café Laundromat offers its community exactly what it needs: A fun place to hang out while completing a nec-essary task — laundry. However, if few people are aware of this business and its complete tray of offerings, the business, and the com-munity miss an opportunity. After three years of business, Spin Cycle realized its current marketing efforts weren’t enough. New competition had entered the market and the economy affected the world, including Spin Cycle. Luckily, with a little creativity and a touch of marketing advice, Spin Cycle Café Laundromat can boom with success. More than increasing profits and improving its brand image, Spin Cycle can become a trailblazer in a unique industry that’s sure to grow as cities become more populated and demand for both cafés and Laundromats increases. By understanding the needs and wants of the company’s most important consumers, Spin Cycle Café Laundromat will become a well-known name in the Hartford area and in the laundry services industry nationwide. It won’t be easy and it will cost money. However, with social media and other non-traditional marketing initiatives that engage the customer, Spin Cycle will continue to grow its business for years to come. After all, no matter what trends go in and out of style, people will always seek Good. Clean. Fun. And they’ll find just that, and more, at Spin Cycle Café Laundromat.
Spin Cycle Café Laundromat | Page 1
II. Situation Analysis
Spin Cycle Café Laundromat | Page 2
Spin Cycle Café Laundromat opened in June 2007 and began its life as a pioneer in the U.S. Café Laundromat industry. Located in New-ington, Connecticut, Spin Cycle is the only Laundromat in the Hartford area that combines laundry and café services. Spin Cycle custom-ers wash clothes while enjoying live entertainment, finishing homework, drinking a cup of coffee or tea and eating snacks, breakfast, lunch or a light café-style dinner.
The following pages explain the current situation of the market in which Spin Cycle Café Laundromat operates. From Spin Cycle’s service offerings to its financial information to trends affecting businesses worldwide — it all plays a role in Spin Cycle’s future success. There-fore, if Spin Cycle is to remain successful, all involved with the business must understand the world’s and the business’s current situation on all fronts.
In this document, we will analyze Spin Cycle Café Laundromat’s:
Service offerings Target market and segmented target market Targeted consumers Distribution network Competitors Financial situation Historical marketing results Macroenvironment Strengths, weaknesses, opportunities and threats How to use the SWOT to build Spin Cycle’s business
Overview
II. Situation Analysis
Spin Cycle Café Laundromat | Page 3
Individual Service Breakdown
Spin Cycle Café Laundromat offers an array of services, all of which help make the business exciting for customers.
Self-Service Laundry Facility: Spin Cycle Café Laundromat has 25 Dexter washers and 24 dryers for customers’ use.
Single Load $2.00
Double Load $3.00
Triple Load $4.00
Maxi (4) Load $6.00
Mega (5) Load $7.00
Dryer $1.00/24 minutes (0.25 for additional 6 minutes)
The laundry/café combination is vital to our product mix because it is the combination of these two services that differentiates us from Laundromat and café competi-tors. This combination gives us a competitive edge over both local Laundromats and local cafés.
Full-Service Laundry Wash and Fold
Option 0-10lbs Additional weight
Drop laundry off $13.50 $0.75 per additional pound
We pick up/drop off $13.50 $0.99 per additional pound
CCSU Student Special
$13.50, all you can fit in blue spin cycle bag
-
FREE delivery for pick up/drop off. Each order may include wash & fold only, dry cleaner only or both. Tax not included in prices.
Product Strategy Hartford area residents can go anywhere to do laundry – they can only come to Spin Cycle Café Laundromat to do laundry, relax and have fun in a clean, pleasant environment.
II. Situation Analysis
Individual Service Breakdown
Spin Cycle Café Laundromat | Page 4
Dry Cleaning
Other important business features include:
Ample parking space
Outdoor patio for eating and events (seasonal) Entertainment, including alternative night, game nights, live music, open mic nights
Special events, like BBQ showdown, Laundromat dating, sports all day, Halloween party
Satellite TV with professional sports and cable viewing
Local talent showcase, including artists, musicians and poets
Full-service dine in or take out for breakfast, lunch and light café-style dinner Organic fair-trade coffee
Happy hour Area for studying, meeting or eating/drinking while waiting for laundry
A small meeting area that can fit about 50 people for parties and get-togethers
Laundered Shirts $2.40
Blouses/Shirts $6.75
Slacks/Pants $6.75
Sweaters $6.75
Dresses $12.50-85.00
Lab Coats $7.00
Blazers & Jackets $9.25
Two-Piece Suits $13.60
Outer Jackets* $13.50-15.00
Coats $20.00-35.00
*$5 extra charge applied for removing excess lint or extra-soiled items. Environmental disposal charge may apply to certain dry-cleaned items. Leather coat cleaning isn’t available.*
II. Situation Analysis
Target Market Analysis
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1. Central Connecticut State University (CCSU), New Britain 2. University of Hartford, West Hartford 3. Trinity College, Hartford 4. Saint Joseph College, West Hartford 5. Wesleyan University, Middletown 6. Briarwood College, Southington
7. Holy Apostles College and Seminary, Cromwell 8. Rensselaer at Hartford, Hartford 9. Capital Community College, Hartford 10.Middlesex Community College, Middletown 11.Tunxis Community College, Farmington
1. Berlin 2. Bristol 3. Cromwell 4. Farmington
5. Hartford 6. Kensington 7. New Britain 8. Newington
9. Middletown 10. Meriden 11. Plainville 12. Rocky Hill
13. Southington 14. West Hartford 15. Wethersfield
Our target market must live near Newington, Connecticut, where Spin Cycle Café Laundromat is located. Broadly, we will target towns within Hartford, Middlesex and New Haven counties. Within these counties, we will focus on residents in the following towns:
Quick Facts about these towns: Combined population: more than 600,000 people Average household size: between two and three people Estimated percent of residents who are high school graduates: 85% Estimated percent of residents who have a bachelor’s degree or higher: 30% Average household income in 1999: between $40,000 and $55,000 per year
Within these towns, we must look at permanent residents and college students. Universities and colleges within our target location are:
II. Situation Analysis
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Target Market Segmentation
Broad Target Market All adult residents aged 21-55 in the 15 towns, including college students.
Secondary Target Market
Primary Target Market
College Students
Permanent Residents
CCSU Trinity College University of Hartford
Local Business Owners
To properly reach the entire targeted market, we must segment it into three different pieces as the diagram illustrates. For our primary target, while we will not ignore the other colleges on our list, we will pay special attention to the three colleges in our dia-gram because they are most likely to use our services. For our secondary market, we must all permanent residents who live in the area, emphasizing local business owners who have items that need washing.
II. Situation Analysis
Spin Cycle Café Laundromat | Page 7
Target Market Analysis: Permanent Resident Demographics
As previously mentioned, Spin Cycle Café Laundromat’s target customers live in Newington, Conn., and the other 14 towns previously mentioned. The combined population of this geographic market is more than 600,000 people.
Demographic Characteristics of Targeted Permanent Residents
Male and Female
Single, Married, Divorced, Widowed, etc.
Age range: 18 to 55; Median age range: 25-30.
No children or grown, adult children
Have high school and associate/bachelor degrees
$40,000-$55,000 annual income
Homeowner, renter or living in an apartment/dormitory
Middle class, blue and white collar-type jobs We will also need to target small and medium-sized businesses that have a large volume of clothing/cloth items to be cleaned. This might include hospitals, doctor’s offices, restaurants, cafes and athletic/recreation centers.
Getting into the minds of our market In general, members of our secondary market have no children to care for. So, they spend time improving and enjoying themselves, their surroundings and the people around them. They enjoy exercising, including jogging and purchasing or renting exercise videos. They also enjoy playing trivia games and sports like tennis and golf. They rent movies to watch at home, attend op-era performances and belong to veterans clubs. They tend to shop at department stores like Lord and Taylor and Bloomingdales, while some shop at online department stores like sears.com. Also, many spend time at Ace Hardware creating ways to improve their living surroundings and at CompUSA learning about and purchasing new technology. They enjoy watching shows like ―24,‖ ―60 Minutes‖ and ―Masterpiece Theater.‖ Their favorite channels are the Style Channel, HGTV, Dis-covery Channel, Travel Channel, PBS and the Food Network. Their preferred magazines include Men’s Journal, Consumer Reports, Tennis, Cigar Aficionado, Audubon, Oprah, Woman’s Day and Bet-ter Homes and Gardens.
II. Situation Analysis
Target Market Analysis: College Student Demographics
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CCSU Public liberal arts/sciences and professional
university 12,000 students: 7,000 full time; 5,000 part
time; 9,600 undergraduates; 2,730 graduates 53% female, 47% male, 15% minority Faculty: 400 full time, 400 part time On average 85% of CCSU graduates remain
in Connecticut after graduation More than 65,000 living alumni Majors include teacher education, nursing,
engineering and business Offers 18 Division I athletic programs 165 acres and 40 buildings About 20% of students live in on-campus
housing
Trinity College Independent, nonsectarian liberal arts college About 2,000 students 42 states represented 100-acre campus in Hartford 50% female, 50% male, 23.2% minorities Faculty:183 full time, 88 part time Majors include economics, history, political
science, psychology and English More than 100 on-campus student groups A large percentage of students complete in-
ternships and participate in community service projects.
The university recently renovated its library and information technology center.
University of Hartford More than 7,000 students 48 states represented 90 undergraduate majors and 33
graduate programs 51% female, 49% male 27% minorities in undergrad, 20%
minorities in graduate Faculty: 337 full time, 576 part time 35% from Connecticut Majors include business, education,
nursing, engineering, art 2% older than 25 70% live on campus
Obviously, like in most regions around the nation, young college students (approximately age 18-24) have fairly different hobbies and media habits compared to their older counterparts. Many of today’s traditional college students thrive on technology, including cell phones, smart phones, laptop computers and iPods. They also value face-to-face interactions with their peers whether that be studying, watching movies/TV or going out to bars and parties. It’s also important to note that most college students must work hard, but they en-joy having fun, too. While these characteristics are common among most students, each university usually has students of a particular personality with diverse characteristics.
II. Situation Analysis
Consumer Analysis: Julie Hall, CCSU sophomore
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Julie, a history major, hopes to work in politics someday. She loves reading and is quite social. She’s from Connecticut but her parents live a little too far away to commute. Plus, she wanted to get a true college experience by living in a dorm. Julie wakes up everyday at about 9 a.m.in her small dormitory room. She has her first class at 10 a.m. After checking her e-mail and Facebook, showering and grabbing a ce-real bar from her closet, she races to class. Following this hour-long class, she goes to the library to check her e-mail and Facebook again. She also prints an assignment for her second class of the day. Around noon she meets her friends at the school cafeteria. They grab lunch using their college meal plan, but none of them are happy; they hate the cafeteria food on campus. After lunch, Julie has two more classes. Once finished in the classroom, she joins a friend at the gym to work out before eating dinner with friends at the school cafeteria, once again using her meal plan dollars. She spends some time goofing around with her roommate until about 8 p.m. She decides it’s time to do homework. She also has to complete a chore she hates: laundry. She puts it off as much as she can, but when she finally has to do it, she looks for the easiest, most pain-free way. Finding quarters to put into the machines on cam-pus can be a pain, so she decides to call Spin Cycle and have them pick up and drop off her laundry. This means she can stay in her room with her roommates and her homework while someone does her laundry for her — It’s almost as good as mom! She also just learned about the Laundromat’s café and that they use cards instead of quarters. She’s thinking about grabbing a few friends next laundry day and hanging out there instead of in the dorm.
II. Situation Analysis
Consumer Analysis: Bob & Sue White, Newington residents
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Bob White, a certified public accountant, has lived in the central Connecticut region all his life. As a working adult, he moved to Newington so he could be near Hartford, where he works, without living inside the city. Bob graduated from the University of Hartford in 1972 and has been practicing accounting ever since. He works for a small accounting firm located in Hartford. He likes his job and he enjoys working with people and helping them with their accounting needs. However, he can’t wait to retire and take it easy. He’s worked hard all his life and it’s something he’s always looked forward to since his children grew up and moved out. Typically, Monday through Friday he works 9 to 5. He drives his car to the office every-day and parks in the parking garage. At 11 a.m. he meets with a client and then he takes him out to lunch at a café near the office. Around 1 p.m. he returns to the office before meeting with another client at 2 p.m. At 5 p.m. he heads home to Sue, his wife, who teaches at a local elementary school. Because she arrives home before he does, she fixes dinner for the both of them. She also received the couple’s laundry and Bob’s dry cleaning. She had Spin Cycle pick up and drop off the clothes. She loves not having to worry about this chore. After dinner, Bob mows the lawn and Sue works on cleaning up dinner. The laundry’s done, so the couple relaxes together in the living room. Bob reads a book about busi-ness while his Sue watches Jeopardy. Around 9 p.m. the phone rings; it’s Bob and Sue’s daughter. She has just put Bob and Sue’s grandson to bed and called to chat for a while. She says she would like to come visit Bob and Sue this weekend, and they are excited to see their daughter and grandson. Bob and Sue highly value any and all mo-ments with family, especially their young grandchild.
II. Situation Analysis
Consumer Analysis: Clyde &B Lydia Czu, owner of 123 Restaurant in Newington
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Clyde was born and raided in Boston before meeting his wife and moving to Connecticut. His wife, Barb, is originally from Hartford, but the couple currently lives outside Newington, where they operate a business: 123 Restaurant. During the week, Clyde wakes up every morning around 6 a.m. He arrives at his 123 around 7:30 a.m. so he can prepare for the morning breakfast rush. Many people stop in and get a cup of coffee around 8 a.m. When it slows down a bit mid-morning, he works on preparing the din-ing room for any lunch guests who might come in. His waiters and cooks arrive at 10 a.m. It’s a busy afternoon for Clyde and the staff, but they like it. It helps the time go by faster and also means they’re bringing in more money. Around 2 p.m., Clyde takes his lunch break. During lunch, he runs some tablecloths and uniforms over to Spin Cycle and grabs a bite to eat while waiting. He enjoys completing his errands during lunch so he can go home at the end of the day. Clyde stays until about 6 p.m. when a manager comes in to take over for the evening. When Clyde arrives home, his wife, Lydia, has a quick dinner put together for them. She works for the restaurant, too, mostly for the catering side of things. Before fixing the couple’s dinner, she stopped at Spin Cycle to pick up the dry cleaned uniforms she had done; some waiters will need to wear them this weekend for a wedding catered by 123 Restaurant. After dinner and clean-up, the couple goes for a walk around the block. The two are trying to stay healthy, but it’s a challenge for both since they live such busy lives. At home, the couple sits together on the couch with their two dogs. They watch their favorite show on the Discovery Channel before heading to bed. On the weekends, when Lydia isn’t working events, the couple enjoys going seeing a movie or a show with friends. Although they have no children to care for, they spend a lot of time with friends and family, including Clyde’s 88-year-old mother and his five nephews.
II. Situation Analysis
Consumer Analysis: Lisa Dez, events manager at Newington Chamber
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Lisa graduated from college not too long ago, but she’s already a professional in the event management world. Her job as the Chamber of Commerce’s events manager is to come up with and plan events for chamber members and local residents. As a young professional herself, she loves business networking events and has planned many around the Newington and Hartford areas. Lisa grew up in New York but attended the University of Hartford. She loved the area and decided to stick around after graduating, but once her classmates graduated, she had few friends left in the area. Luckily, she uses her events management career to meet new friends in the area. Someday she hopes to get married and have children. In the meantime, she considers life an adventure. She’s extremely outgoing but loves occasional quiet time alone in her apartment, where she reads a good book, writes fiction stories or watches epi-sodes her favorite TV show, Sex and the City. While her job requires her to be interested and passionate about the Newington area, she does have a genuine interest in the welfare of the people who live there. She vol-unteers a couple times per month at the local soup kitchen and mentors a high school ―buddy‖ from inner city Hartford. She takes Sarah, her buddy, to cafés and restaurants around the area. They drink cof-fee or tea and enjoy local music and art. She’s thinking about taking her to Spin City Café Laundromat next week when a really cool band is supposed to play, but she’s nervous that it will be awkward hanging out someplace where there are washers and dryers, too. But, being the outgoing young woman she is, she’s always up for some-thing new. She tries it and loves it so much she decides to host a couple networking events there for the upcoming year.
II. Situation Analysis
Distribution Network Analysis
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Because Spin Cycle Café Laundromat offers a service rather than a product, its distribution network is unique. However, outside entities still play an important role to our business’s success. The following diagram demonstrates Spin Cycle Café Laundromat’s distribution network.
Beer and Alcohol Distributor
Food & Beverage Distributor
Dexter Washing Machines
WiFi Provider
Bands, musicians, artists, etc.
Spin Cycle Café Laundromat
Consumer buys alcoholic beverages.
Entertainment organizer
Consumer uses washing machines and other laundry services to clean clothing.
Consumer buys food and beverages
Consumer enjoys art and entertainment acts.
Consumer uses WiFi
II. Situation Analysis
Competitive Analysis
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Laundry Services 1. Precision Wash and Dry Laundry
Wethersfield, other 2004
2. Battiston's
Farmington, Rocky Hill, Southington, Wethersfield, West Hartford (2)
Chain founded in 1946 3. Personal Touch Cleaners and Laundry
Newington 1993
4. 5Til 10 Laundry
Wethersfield 2007
5. Spin City Cleaners and Laundromat
New Britain 2010
Cafés 1. "Chain" cafes (Starbucks, Dunkin Donuts, etc.) 2. Vida Doce Cafe and Pastry Shop
Newington 2009
3. The Black Cup Wethersfield 2006
4. Reno's Café New Britain 1990
5. Narcissus Chocolate Café
Wethersfield
II. Situation Analysis
Current Financial Situation
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Spin City Café Laundromat does not currently have a lot of financial information available. However, we do know a few things about the company’s financial status. As of August 2010, the company’s owners are working on putting reports together. Before this year, the company was up financially. Unfortunately, overall, the company is trending downward in 2010, partly because
two or three new Laundromats joined the area. This year’s hot temperatures caused the company to begin running the air conditioning in April, which has led to increased costs for
utilities and energy. However the company is looking to decrease costs by hiring broker energy. This will reduce energy costs by 50% while making the building as a whole more energy efficient.
When speaking of the company’s financial information, it’s also important to mention the company has paid thousands of dollars per
month for marketing and advertising, but it hasn’t paid off. The company would like to continue working to minimize costs while in-creasing income and increasing awareness at the smallest cost.
II. Situation Analysis
Historical Marketing Results
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Since its opening three years ago, Spin Cycle Café Laundromat has relied heavily on obtaining business using traditional marketing methods, including print, TV and radio advertising. These methods worked all right in the beginning, but recently they have proven much less successful, much less useful and much less efficient than in the past. The following chart examines what Spin City has done in the past and whether the effort is considered successful or unsuccessful in drawing business. Understanding past marketing missteps will allow us to build a successful marketing plan that’s best for Spin Cycle’s business future.
Successful Efforts Unsuccessful Efforts
1. Coffee News (no longer in publication)
2. CCSU student center events
1. Billboards on Route 9 a. Costs $1,000 per month b. Now cancelling
2. Coupons in Clipper Magazine, circ. 40,000 a. Got about 10 to 15 coupons back each run
3. Cable TV advertisements a. Ran through Comcast cable, local Hispanic TV channel b. Not running right now because low ROI c. They’re hoping to use TV commercial in social media
4. Radio advertisements on 93.7 and 95.7 (Top 40s stations) and live remote radio broadcasts
5. Central newspaper advertisements 7. Yellow Pages 8. A T &T video website listing
II. Situation Analysis
Macroenvironment
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While implementing marketing plan initiatives, Spin Cycle Café Laundromat should consider the following macroenvironment forces that may provide opportunities for the company or threaten this marketing plan’s success. Demographic Forces The Newington area is heavily populated with aging and youthful populations. People are beginning to move closer to cities because they are often the easiest places to find jobs. Since Newington is near Hartford, it’s likely to see a population increase.
Economic Forces The recent economic recession has caused everyone — individuals, businesses and government entities — to cut back spending and save money wherever possible.
Natural Forces More and more individuals and businesses living a green, environmentally friendly lifestyle. These entities want to patronize organiza-tions that do what they can for the environment, including improving energy efficiency.
Technological Forces More than ever before, laptops, smart phones and netbooks allow for ultimate mobility while working. However, some of these new tech-nologies come with internet already equipped, meaning they don’t need WiFi. Luckily, most laptops still require WiFi to get online away from home. Also, online ―mass mingling‖ has begun to occur on sites like Facebook, Twitter and YouTube. Mobile devices like those mentioned above make it possible for people to virtually gather anywhere.
Social & Cultural Forces As life becomes more mobile and more on-the-go, more people seem to seek energy from caffeinated beverages like coffee, tea and energy drinks. Also, a large boom in enormous companies like Wal-Mart and McDonald’s has created a ―local movement‖ in which many people want to shop and eat locally whenever possible. Finally, today’s consumers, especially those under 40, have become al-most immune to traditional print, TV and radio advertisements. While newspaper coupons and TV commercials may effectively reach older audiences, reaching younger audiences requires more creativity than a simple advertisement.
II. Situation Analysis
SWOT Analysis & Action Plan
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Strengths Unique venue Great owners and staff Fest ive enter ta inment ,
fun events New website New marketing plan Clean, spacious location
includes outdoor space Location near high-traffic
venues and residential neighborhoods
Weaknesses Low funds Low staff quantity Low brand and reputation
awareness Fairly new business (only
three years old)
Opportunities Consumers’ mobile lifestyles The Newington area is a
highly populated location and according to the Coin Laundry Association, people living in locations with a high popula-tion density are more likely to use laundry services.
Green earth-friendly trend
Threats Cost effectiveness Two new laundry service
businesses joined the area in the last two years.
Although the only café Laundromat in the area, Spin Cycle faces a high level of compet it ion f rom local Laundromats and cafés.
SWOT Action Plan In moving forward, the Spin Cycle Café Laundromat needs to play up its strengths while downplaying its weaknesses, mini-mizing threats and always being mindful of new opportunities. As proven through the SWOT chart, Spin Cycle has more strengths than weaknesses, which is great. However, this plan will eliminate two of the company’s weaknesses: low brand awareness and the company’s newness. By eliminating these two factors, funds will increase, allowing the company to hire more staff if needed. To eliminate the weaknesses, Spin Cycle should capitalize on opportunities today’s world offers. The company has already taken a step toward shaping itself for consumers’ mobile life-styles by offering free WiFi. It can also market itself in more heavily populated locations. It should also keep in mind the importance of living ―green‖ and saving money. We must prove using Spin Cycle’s services is cost effective AND time effective (saves the consumer time). While many Laundromats and cafés/restaurants are cost effective, we’re the only one in the area that is also time effective because we allow customers to do laundry while completing work, socializ-ing, being entertained or relaxing. In addition, unlike any other café in the area, Spin Cycle customers can enjoy breakfast, lunch, a light dinner, a snack or a coffee while doing laundry.
Objectives
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III. IMC Objectives & Issues
To increase Spin Cycle Café Laundromat’s laundry service
clients by 50% within one year. To increase awareness of Spin Cycle Café Laundromat
among the target market by 50% within one year. To increase Spin Cycle Café Laundromat traffic by 40%
within one year. To increase Spin Cycle Café Laundromat’s profits by 15%
within one year.
Critical Issues 1. Members of our target market is not aware of us
and is not our services Spin Cycle Café Laundro-mat as much as we need them to.
2. Spin Cycle Café Laundromat, as a small business, has limited funding for marketing activities.
3. Many people may not understand the advantages of using our laundry services over purchasing their own personal washers and dryers.
4. People may not understand the unique atmosphere of a café Laundromat.
IV. Marketing Strategy
Marketing Strategy
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Positioning Strategy The Spin Cycle Café represents an atmosphere of good, clean, fun and we need to position it as such. Incorporating the Café’s events, charm and friendly employees are crucial to the campaign’s success. Here’s a break down of exactly what the tagline stands for:
Good represents customer-oriented service from a staff that cares about making the customer feel good and happy.
Clean represents Spin Cycle’s décor and appearance. It also represents the establishment’s laundry service offerings.
Fun represents patrons’ experiences at the café. It’s unique because it’s not usually a word associated with laundry, but it is a word associated with the Spin Cycle Café Laundromat.
Target Marketing Strategy As previously mentioned, we will focus our marketing on two key markets:
Primary Market: College students, especially those attending CCSU, Trinity College and the University of Hartford.
Secondary Market: This segment is broken into two interlinked pieces: - Adult residents of the Newington area - Business owners/event managers in the Newington area Marketing Research Strategy Insufficient time did not allow for much primary research before beginning the marketing plan. Therefore, we need to survey consumers electronically and via paper surveys before launching the majority of our initiatives. About 12 months later, we will survey consumers again to see if our initiatives were successful and if we need to change pieces of the plan. It’s also important for Spin Cycle’s staff to obtain feedback from customers whenever necessary, even if that means simply recording when someone says they really enjoyed or disliked something.
Mission Statement:
“Spin Cycle Café Laundromat is a family-
owned business that aims to make laun-
dering clothes the most relaxing and en-
joyable experience. We have combined
two businesses that complement each
other well. Spin Cycle offers a clean,
pleasant, enjoyable experience to all
whether doing laundry or gabbing a bite
to eat. So simply sit back and make your-
self at home…”
Creative Brief
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V. Creative Strategy
To whom are we talking? People near Newington, Conn., especially adults age 21-55 and students attending local colleges/universities. What do they currently think? Many are currently unaware of our business and what we offer. What would we like them to think? Spin Cycle Café Laundromat is the one place for everyone to go and have ―Good. Clean. Fun.‖ while doing laundry, surf-ing the web, watching a performance, completing homework or other tasks. What is the single most persuasive idea we can convey? Spin Cycle Café Laundromat is Good. Clean. Fun. Why should they believe it? Where else in the area can anyone get a food, alcoholic and non-alcoholic beverages, WiFi and laundry services in one centrally located building? Nowhere.
V. Creative Strategy
Big Idea
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www.spincyclecafe.com
VI. MarCom Strategies & Tactics
Promotional Strategies & Tactics
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Strategy Use a street team, provided by the Entertainment Promoter, to promote the Spin. Tactics Street team members will wear uniforms (Black or white Spin Cycle T-shirt with jeans, see appendix p. 32) when working for the café
on and off site. Street teams will distribute printed materials like flyers and postcards (see page 27) at malls, events, local high-traffic areas, local
businesses, apartments, colleges (especially in dorms) and supermarkets Extra T-shirts can be purchased online or in stores. Strategy Issue incentives to bring in more customers and get consumers to take surveys. Tactics Consumers may take surveys online, at the café or during one of the street team events. Those who complete the survey will receive a coupon for half off a non-alcoholic beverage at the café. Those who provide their
name and address will be entered in a drawing to win one of 10 free Spin shirts and one of five Spin gift certificates. Host a Last Comic Standing contest in January 2010 to combine with the last Saturday of the month. Café customers can vote for
their favorite comic and the winner receives a headline show, a Spin T-shirt and a Spin gift certificate. Frequent consumers can receive a frequent customer card. When they use the laundry services 15 times, they receive two free
washes/dries or a wash and a dry. Also, those who buy 10 sandwiches can get the 11th free and those who buy nine coffees can get a 10th for free.
Strategy Implement student-only discounts for students at CCSU, Trinity and University of Hartford Tactics Admissions welcome packets coupons for students at all three schools Create a relationship with each university’s student activities center and share information about upcoming events. For two weeks after the launch party, all college students who present their IDs can receive a discount on café purchases.
Event Strategies & Tactics
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VI. MarCom Strategies & Tactics
Strategy Inform the target markets of Spin Cycle’s changes and updates by hosting a launch party in October 2010. Tactics Set up new signs for the front of the building Partner with liquor distributor for alcoholic beverage signage and drink specials Unveil new website, new uniforms and new marketing plan Print Good Clean fun passes for frequent customers and distribute at event Hire a DJ to play music and to entertain Join the chamber, invite local businesses and collect business cards for a drawing and for future business contacts Invite the local government and ask one member of the local government to participate in a ribbon-cutting presentation Strategy Attract and create awareness among higher-end business clientele Tactics Join the local Chamber of Commerce and ask about opportunities to speak Spin’s business. Offer to host Chamber events and events for other local organizations (Rotary clubs, women’s clubs, etc.) Host a business networking event for professionals of all ages and stages of life. While there, have Spin owners network with others
as well so they can inform businesses of with these groups to hold their events at the Spin. This would networking events in the Greater Hartford area.
Strategy Hire an outside entertainment promoter and agency to arrange the events so the business can focus on its business operations. Tactics Hire the Entertainment Promoter, starting in September 2010. They will book, promote and market entertainment that has a following for Friday Jazz Nights, Comedy Nights (last Saturday of each
month) and other events. Also, Spin Cycle should create entertainment and event booking guidelines based on what the Entertainment Promoter learns.
Public Relations Strategies & Tactics
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VI. MarCom Strategies & Tactics
Strategy Hire a local university student intern (paid or unpaid) to work on public relations for Spin Cycle. Tactics Student will use expertise and experience to come up with story ideas that would interest college students and, therefore, campus
media outlets. Possible outlets: The Recorder (at CCSU), The Trinity Tripod (at Trinity College) and The Hartford Informer (University of Hartford). Student will also work on managing Spin Cycle’s social media presence on Facebook and Twitter. Educate student on Spin Cycle and what it’s about so he/she is able to give quotes to campus media and write about the company in
press releases, if necessary. Since Spin Cycle cannot afford to pay an employee with cash, we can pay the intern with internship hours for campus credit, refer-
ences and a limited number of free coffee, food and laundry services Strategy Increase consumer awareness and company credibility through pitching stories and hosting speaking engagements Tactics While the student intern works on pitching stories to campus media, Spin Cycle employees can focus on local and national
media outlets. Possible media outlets: The Hartford Advocate, The Hartford Courant and Hartford Business Journal. Spin Cycle should also consider national publications, especially those in the Laundromat industry. Being one of the first Café
Laundromats in the Hartford area, Spin Cycle could be considered a trailblazer. Possible media outlets include: Babbalu, BizNewEng-land.com, Inc. Magazine and the Coin Laundry Assocation’s The Journal.
Pitch visual stories on Spin performances to local TV news and shows Offer to speak with students, especially business students, at colleges about operating a small, family-owned business
Web Strategies & Tactics
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VI. MarCom Strategies & Tactics
Strategy Use web applications to brand Spin Cycle Laundromat Café as a place where those who frequently use technology can spend time and to keep potential cus-tomers informed of upcoming events and promotions. Tactics Create a social media presence using Facebook, Twitter and FourSquare. Update website to be user-friendly and intriguing Create an event calendar on the website that’s private but that allows others to
post approved events Allow clients to set up web accounts through which they can use the laundry de-
livery service, pay with credit cards and protect it all with a password. On Yahoo server and Domain from Domain Registry of America and other ex-
ternal websites, use www.spincyclecafe.com and avoid the longer version (www.spincyclecafelaundromat.com). Create two e-mail distribution lists 1. Distribute monthly to entire list with past events and happenings. 2. Distribute weekly with upcoming events, specials and promotions.
Other Tactics & Ideas Create yard signs and post them along the highway and on campuses, if permitted. Improve art gallery. Invite art professors at local universities to involve their classes either by bringing them to the gallery or by
submitting students’ artwork to be displayed in the gallery. Improve inside décor Consider advertising events in the Hartford Courant’s Monday Blue Page Section Management should set aside at least six to eight hours per week to discuss marketing initiatives, including press releases, the email newsletter, website updates, following up on press requests and calls, etc.
VII. Campaign Timeline
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Sep10 Oct10 Nov10 Dec10 Jan11 Feb11 Mar11 Apr11 May11 Jun11 Jul11 Aug11
Entmt. Promoter/St.team
H. Courant Ad
CCSU Planner
T-shirt sales
Online, print survey
Last Comic Standing Contest
Frequent Customer Passes
Launch Party
CCSU ID promo
Join Chamber, host business events
PR Intern
Pitch stories to publi-cations, TV
Speak to college stu-dents about biz
Social Media
Email newsletters
Yard Signs
VIII. Campaign Budget & ROI
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Budget & ROI
Sept-Nov10 Dec10-Feb11 Mar-May11 Jun-Aug11
Website URLS $30
Entertainment promoters $900 $900
Street team promoters $1,011 $1,011
Promotional materials for ST
Survey contest $200 $200
Last Comic Standing contest $110
Chamber Membership $218
PR Intern $20 $20 $20
Yard Signs
CCSU Planner Ads
Launch Party
Networking Events
Art Gallery improvements
Décor Improvements
TOTALS
IX. Evaluation
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To increase laundry service clients by 50% within one year … Measure overall laundry service use from September 1, 2010, to August 31, 2011. Track how many people use the laundry services and compare September 2010 to August 2011.
To increase brand awareness among the target market by 50% within one year …
Measure how aware the target markets are of Spin Cycle Café Laundromat’s services and offerings. Track brand awareness by surveying a sample of the target market population in September 2010 about the Spin Cycle Café
Laundromat brand. Give the same survey in August 2011 to see what has worked best and perhaps what should be modified. To increase café Laundromat traffic by 40% within one year …
Measure how many different people come in and out of the café two days of each month. Track this data using observation and compare each month to track increases, decreases or plateaus.
To increase profits by 15% within one year …
Measure profits in September 2010. Track sales versus costs for at least each month. Compare August 2011’s data against September 2010’s data.
X. Conclusion
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Good. Clean. Fun. It’s a simple concept, but most of the time, simple works best. We don’t want to clutter our customers’ minds. For those who just care about the laundry piece, we have easy-to-use online options for pick up and drop off. For those looking for fun, we’ve got that, too. Rather than telling potential customers how great our business is, we want them to experience it for themselves. We want them to come inside Spin Cycle Café Laundromat and feel what it’s like to relax, eat, drink and have fun. When customers have that experience, they will come back, and, even better, they will tell their friends or bring their friends with them next time. That’s the power of word-of-mouth. It’s simple and it’s cost-effective. All it takes is stellar service, a comfortable environment and a fun experience. And that’s exactly what Spin Cycle Café Laundromat gives its customers today and will continue to give years and years from now.
XI. Appendices
Works Cited
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The following websites were used to compile information for this marketing plan: http://www.claritas.com/MyBestSegments/Default.jsp http://local.yahoo.com/info-10537096-maple-laundromat-llc-hartford#overview http://www.coinlaundry.org/resources/industryoverview.cfm http://new.hartford.edu/aboutuofh/quickfacts.aspx http://www.ccsu.edu/page.cfm?p=62 http://www.trincoll.edu/AboutTrinity/CollegeFacts.htm
XI. Appendices
Initiative Examples
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XI. Appendices
Take-Out Menu
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XI. Appendices
Fliers & Advertisements
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