Transcript eco/green marketing strategy - California State University, Bakersfield

TODAY CLEANERS
MARKETING STRATEGY
ECO/GREEN MARKETING STRATEGY
Outline
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Industry/Company Overview
SWOT Analysis
Segmentation / Positioning
Market Direction
Marketing Program
Performance Measure / Control
ECO/GREEN MARKETING STRATEGY
Industry Overview
• 40,000+ dry cleaning companies in US
(employing ~190,000 workers)
• Dominated by small, independent, single-facility,
family-owned businesses
• Over $10 billion in revenue in 2008
• 15% sales decrease from 1Q 2007 to 1Q 2008
• Companies feeling effects of current economy
ECO/GREEN MARKETING STRATEGY
Industry Overview
• Going “green” is most popular news in industry
currently
• Conventional use of polychloroethlene (‘perc’)
– Classified by EPA as toxic air contaminant, a
hazardous, potentially carcinogenic substance
• California is the first state and only to mandate a
phase-out of Perchloroethylene (‘perc’) by 2023
ECO/GREEN MARKETING STRATEGY
Industry Overview
• “Greener” strategies and alternatives:
– Closed loop systems; eliminate transfer spills
and recycle perc
– Use of liquid silicone machine technology by
“GreenEarth” (1,300 affiliates world-wide, 700
in US)
– Use of cardboard hangers
– Recyclable plastic covers
ECO/GREEN MARKETING STRATEGY
Today Cleaners Overview
• Kern-county business, started in 1990
• Multitude of products and services
– The highest quality service available – same day
service, on premise cleaning/pressing, dry cleaning,
household items, car hop service, 24 hour drop
boxes, hanger recycling, etc…
– Utilizing ‘GreenEarth’ technology ®
• 10 convenient locations in Bakersfield
ECO/GREEN MARKETING STRATEGY
Eco/Green SWOT Analysis
Internal Factors
External Cisrcumstances
TODAY
CLEANERS
Key Opportunity:
Businesses w ant to go
green or
appear to be green
Key Threat:
Laundry / Dry Cleaning
business is easy to be
duplicated. Competitors
can easily follow our steps
Key Strengths:
Silicon-based, environmental friendly
detergent and cleaning process
Key Weakness:
Prices are relatively higher than smaller
competitors
Expand business to eco/green oriented "big Focus on eco/green services, and develop
players" (PG&E, oil/gas companies, State corporate membership program with benefits
Farms) and obtain long-term service
for returning customers
contract to create an eco/green uniform
cleaning services at a reasonably low cost.
Continue focus on eco/green approach of
Focus on quality of services, and develop
laundry and dry cleaning. Develop strategy membership program with benefits for
to include education of eco/green
returning customers
awareness. Position to become role model.
ECO/GREEN MARKETING STRATEGY
S-O Strategy
Expand business to eco/green oriented
companies (PG&E, oil/gas companies, State
Farms) and obtain long-term service
contracts to create an eco/green uniform
cleaning services at a reasonably low cost.
– 10 locations as business hubs, including potential
delivery services (same day)
– Minimal capital
– Potential loss of “smaller business”
ECO/GREEN MARKETING STRATEGY
Current Market Segmentation /
Positioning
On-the-go business professionals who want
• the practical way of cleaning their clothes
– Demand high-quality service and fast turn-around
– Not too cost sensitive
– Have a high brand loyalty
• the right way of cleaning their clothes
– Eco/Green consciousness
ECO/GREEN MARKETING STRATEGY
Future Market Segmentation /
Positioning
• Business / Companies
– Kern County based
– Uniforms, linens, curtains, cloths
– Environmentally-conscious
– Cost as secondary factor
• values reputation
ECO/GREEN MARKETING STRATEGY
Market Direction Strategy
• Sustainability
– Recession
– B2C revenue declining
– Switch focus from B2C to B2B will supplement
the loss of revenue
ECO/GREEN MARKETING STRATEGY
Marketing Objectives
• Maintain less than 10% loss of current
B2C sales per year.
• Add and maintain four new B2B clients /
month.
• Life Styles of Health and Sustainability
(LOHAS)
• Increase Customer awareness of our
green facilities to a score of 80%
ECO/GREEN MARKETING STRATEGY
Financial Objectives
• Maintain gross profit margin
• Sales Revenue of $312,000 by
March 15, 2010
ECO/GREEN MARKETING STRATEGY
Societal Objectives
• Eco/Green Technology Awareness
– American Forests
• Sponsorship
– Monthly newsletters
– No Job loss
ECO/GREEN MARKETING STRATEGY
Marketing Mix - Product
• Current Products
– Cleaning/Laundry
• New Offerings
– B2B Pickup/Delivery
– Features: Convenience, Assurance, etc.
ECO/GREEN MARKETING STRATEGY
Marketing Mix - Promotion
“In By 11, Ready at 4”
ECO/GREEN MARKETING STRATEGY
Marketing Mix - Promotion
ECO/GREEN MARKETING STRATEGY
Marketing Mix - Promotion
ECO/GREEN MARKETING STRATEGY
Marketing Mix - Promotion
ECO/GREEN MARKETING STRATEGY
Marketing Mix - Promotion
ECO/GREEN MARKETING STRATEGY
Marketing Mix - Promotion
ECO/GREEN MARKETING STRATEGY
ECO/GREEN MARKETING STRATEGY
Performance Measurement - Metrics
• Marketing
– Obtain 4 new commercial customers / month over the
next year
– Average $1000 revenue / B2B customer / month
• Financial
– $312,000 incremental revenue by 2Q 2010
• Societal
– Build awareness of ‘green’ technology using: radio
commercials, paper ads, website, etc…
ECO/GREEN MARKETING STRATEGY
Plan Implementation Control
• Strategic Control
– Gauge organization’s effectiveness in managing
marketing, customer relationships, social
responsibility, and ethics
– Conduct annual marketing audit to analyze
capability and performance.
– Ensure efforts are aligned with objective and
strategy.
ECO/GREEN MARKETING STRATEGY