Marketing Plan: In the Bag Cleaners 1. Marketing Plan: In the Bag Cleaners. Josh Murphy. MGMT530 Marketing Strategies. May 6, 2012.

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1 1 Marketing Plan: In the Bag Cleaners Josh Murphy MGMT530 Marketing Strategies May 6, 2012 Deb Stockman Southwestern College Professional Studies

2 2 Executive Summary In the Bag Cleaners is a professional dry cleaning company that has been around for over 11 years serving the Wichita metro area. Dedicated to providing attention to detail, excellent customer service and fast and friendly service, In the Bag Cleaners does everything possible to ensure customers have an outstanding experience. With 14 locations in the Wichita area, and pick-up and/or delivery service, In the Bag Cleaners focuses on providing convenience to its customers. The marketing plan that follows outlines the marketing plans and objectives and provides options that can be implemented within the next several months. Through use of this marketing plan, In the Bag Cleaners expects to increase its customer base and potentially open additional locations and provide additional services, while still providing the high quality service it is known for.

3 3 In the Bag Cleaners Mission Statement In the Bag Cleaners exists to provide Wichita area residents with an exceptional dry cleaning experience. Situation Analysis The Internal Environment Marketing Goals and Objectives. The marketing Goals of In the Bag Cleaners are: 1.) Be the leader in dry cleaning services in the Wichita area 2.) Provide high quality service 3.) Provide exceptional customer service 4.) Increase advertising Current Marketing Strategy and Performance. In the Bag Cleaners has been in existence for over 11 years. Currently, In the Bag Cleaners has been using social networking websites (Facebook and Twitter) in addition to local advertisements through newspaper and radio. Since its inception, In the Bag Cleaners has gained 5,711 Facebook fans and has 397 followers on Twitter. In regards to product, price, place and promotion, In the Bag Cleaners has determined the following:

4 4 Product -Provide quality service -Continually review our performance to ensure we provide the best products in the area -Customers can call and schedule to have items picked up at their home or business Place -14 locations in the Wichita area! -Wichita, Andover, Derby, Newton -Drive-thru available at all locations for ease of drop-off & pick-up -Delivery & pick-up service available to anyone Price -Ensure pricing among other local dry cleaning companies is similar -VIP Members receive 25% per order! Promotion -VIP Members receive 25% per order -Wacky Wednesday Specials -Savings of at least 30% off regularly priced services -Different item on sale each week - blast - sent out every Tuesday featuring the sale item for the week The Customer Environment Who are In the Bag Cleaners customers? The primary customer is business professionals who wear clothing on a daily basis that requires professional dry cleaning service. The secondary customer is Wichita area residents who wear clothing on a semi-frequent basis that requires dry cleaning service. Approximately 60% of In the Bag Cleaners customers are female, while 40% are male. The demographics by age are as follows:

5 5 Demographics <24 yrs yrs yrs >55 yrs 2% 7% 35% 56% When do customers purchase In the Bag Cleaners products? Sales at In the Bag Cleaners are fairly consistent year round as the majority of customers are business professionals who continually wear clothing that requires professional dry cleaning. The summer months are by far the busiest; however, as there are often more weddings and dresses worn by women who attend weddings that require dry cleaning. The External Environment Competition. In the Bag Cleaners major competitors are other local area dry cleaning companies that offer similar services. In addition to other local companies, products intended for athome use, such as Dryel at home dry-cleaning kit. Economic Growth and Stability. The population of Wichita metro area has been relatively stable over the last several years. However, due to a higher unemployment rate than the national

6 6 average, and with the announcement that Boeing, a local Wichita area employer, will be closing its Wichita operations by the end of 2013, it is possible that residents will move away in search of additional work. However, over the next 10 years, it is expected that the future job growth rate will be around 31%. Technological Advancements. Technological advancements have created a culture that allows people to have information instantly. This need for information has and will continue to impact the way In the Bag Cleaners promotes itself. In addition to using their website, In the Bag Cleaners also uses social networking websites (Facebook and Twitter) to quickly relay information to its customers and fans. Sociocultural Trends. With the potential loss of many Wichita area residents with the closing of Boeing, it is likely that this will affect some of In the Bag Cleaners customers. If In the Bag Cleaners does lose a large number of customers, they will need to explore other options of generating revenue such as offering a regular clothes cleaning service. SWOT Analysis Strengths Strength 1: Strength 2: Strength 3: Provide top-notch dry cleaning service Locally owned and operated Ability for customers to contact the owner directly (who will read and answer every ) Strength 4: 14 locations in Wichita area plus free pick-up/delivery Weaknesses Weakness 1: Weakness 2: Dry cleaning services is the only source of income Need to implement a better referral system to gain additional customers

7 7 Weakness 3: Need to implement a customer survey to ensure employees and services are always meeting (or exceeding) customer s expectations Opportunities Opportunity 1: Could open additional locations (e.g., Haysville, Park City, Kechi, Maize, Valley Center) Opportunity 2: Should consider branching out into full laundry service (pickup and delivery of regular clothing items not just dry clean items) Opportunity 3: Could open a location on McConnell Air Force Base and offer a reduced rate for military personnel Threats Threat 1: Threat 2: Other local area competitors may offer lower prices Due to bad economy, consumers may re-wear clothing items multiple times before dry cleaning if they do not appear dirty in an effort to save money Threat 3: The Environmental Protection Agency (EPA) may introduce additional regulatory changes regarding the chemicals used for dry cleaning services causing an increase in prices for dry cleaning companies

8 8 TOWS Matrix Opportunity TOWS Analysis Could open additional locations (e.g., Haysville, Park City, Kechi, Maize, Valley Center) Should consider branching out into full laundry service (pickup and delivery of regular clothing items not just dry clean items) Could open a location on McConnell Air Force Base and offer a reduced rate for military personnel Threat Other local area competitors may offer lower prices Due to bad economy, consumers may re-wear clothing items multiple times before dry cleaning if they do not appear dirty in an effort to save money The Environmental Protection Agency (EPA) may introduce additional regulatory changes regarding the chemicals used for dry cleaning services causing an increase in prices for dry cleaning companies Strength Provide top-notch dry cleaning service Locally owned and operated Ability for customers to contact the owner directly (who will read and answer every ) 14 locations in Wichita area plus free pick-up/delivery Opening a location on McConnell AFB and offering discounts to military personnel would improve the perception of In the Bag Cleaners among military population o This would also improve the image of In the Bag Cleaners among the rest of the Wichita area population as In the Bag Cleaners would be seen as doing the right thing to help our nation s military In the Bag Cleaners should consider offering a multi-item discount o If the customer brings in for example two pairs of pants instead of just one, then the second pair could be cleaned for half price o This would entice customers to bring in clothing more often (instead of re-wearing) Weakness Dry cleaning services is the only source of income Need to implement a better referral system to gain additional customers Need to implement a customer survey to ensure employees and service are always meeting (or exceeding) customer s expectations In the Bag Cleaners can introduce additional services Pick-up and delivery for regular clothing items would provide additional revenues and would not be hard to implement they are already offering pick-up/delivery service Cleaning of regular clothing items would appeal to the busy person who doesn t have time In the Bag Cleaners needs to implement a customer satisfaction survey o o This will tell management how customers feel about employees, service, convenience, etc. Could also offer a discount for completing the survey to increase the likelihood the survey would be completed

9 9 Developing Competitive Advantages Recommendation Reason Expected Outcome Potential Risk Mitigation Opening a location on McConnell AFB and offering discounts to military personnel would improve the perception of In the Bag Cleaners among military population This would also improve the image of In the Bag Cleaners among the rest of the Wichita area population as In the Bag Cleaners would be seen as doing the right thing to help our nation s military Increase current revenues by adding customers Could be difficult to gain access to military instillation for business purposes Search for a location near McConnell AFB in the event that entry to the base is too difficult In the Bag Cleaners can introduce additional services In the Bag Cleaners should consider offering a multi-item discount In the Bag Cleaners needs to implement a customer satisfaction survey Pick-up and delivery for regular clothing items would provide additional revenues and would not be hard to implement they are already offering pick-up/delivery service Cleaning of regular clothing items would appeal to the busy person who doesn t have time If the customer brings in for example two pairs of pants instead of just one, then the second pair could be cleaned for half price This would entice customers to bring in clothing more often (instead of rewearing) This will tell management how customers feel about employees, service, convenience, etc. Could also offer a discount for completing the survey to increase the likelihood the survey would be completed Diversify income sources by adding additional services that appeal to a market segment who are already accustomed to paying for cleaning services for their clothing Increase in revenues by processing more volume In the Bag Cleaners will find ways to improve in areas that need improvement and/or discover what they are doing right The Wichita market may not have enough of a need to justify the cost Profits may decrease initially until enough customers take advantage of this offer There may be many customers that are unsatisfied and seeking changes that could be difficult to implement First survey existing customers to determine if this service would benefit them if so, survey additional Wichita residents (non-customers) to determine if they also have a need This would also help bring new customers by the deals In the Bag Cleaners offers This will help improve In the Bag Cleaners as a company so that they are able to be the best in the area

10 10 Developing a Strategic Focus In the Bag Cleaners is focusing on building up their reputation in the Wichita area and increasing the number of customers. This will be accomplished by utilizing an aggressive marketing approach along with providing the best high-quality service possible so that new customers and existing customers will continue to come back because of the experience. Marketing Goal 1 Be the leader in dry cleaning services in the Wichita area Objective 1A In the Bag Cleaners Public Relations (PR) Manager will work with local media outlets to promote a positive image of In the Bag Cleaners. Objective 1B In the Bag Cleaners will focus on community outreach events where Wichita area residents may be drawn to In the Bag Cleaners where they may not have otherwise visited a location (i.e., community carnival) Marketing Goal 2 Provide high quality service/exceptional customer service Objective 2A In the Bag Cleaners will implement customer satisfaction surveys to ensure customers are satisfied with the quality of service they receive at In the Bag Cleaners locations. Objective 2B In the Bag Cleaners will provide additional training (as necessary) (based on the results of the customer satisfaction surveys) to existing employees to ensure that all customers are highly satisfied.

11 11 Marketing Goal 3 Increase advertising Objective 3A Advertising will be increased through the following venues: TV, radio, newspaper, Facebook, Twitter, word-of-mouth Objective 3B In the Bag Cleaners management team will research & implement a customer referral program so that existing customers are rewarded for referring friends & family to In the Bag Cleaners. Marketing Strategy Primary and Secondary Target Market In the Bag Cleaners primary target market consists of business professionals who are wearing clothing items on a regular basis that require professional dry cleaning services. The secondary target market consists of Wichita area residents who wear clothing on occasion that needs to be professionally dry cleaned, or who have additional products (e.g., purses, wedding dresses, shoes, etc.) that require professional cleaning services. Product Strategy The most important part of In the Bag Cleaners product strategy is to provide quality service to its customers. Because In the Bag Cleaners is in the service business, high quality service is not a recommendation, but a requirement to stay in business. As a part of providing high quality service, In the Bag Cleaners will continually review performance at each location to ensure that the best service is being provided for the products offered. Additionally, In the Bag Cleaners offers pick-up and delivery service so that customers needs are always being met. Customers can call and schedule to have items picked up or delivered at their home or business wherever is most convenient for them.

12 12 Pricing Strategy In the Bag Cleaners is focused on providing high quality services at great prices. In order to ensure that pricing at In the Bag Cleaners is in-line with other local area competitors, In the Bag Cleaners will continually survey existing competitors to ensure that the prices charged are comparable (if not cheaper) to other local area companies. As an incentive for customers to receive the best price (and ensure their continued loyalty), In the Bag Cleaners offers a VIP Program in which VIP members receive a 25% discount on every order. Place Strategy In the Bag Cleaners currently offers 14 locations in the Wichita area. Locations are currently available inside Wichita, Andover, Derby and Newton. All locations offer drive-thru service for ease of drop-off and pick-up. In addition to 14 physical locations, In the Bag Cleaners allows customers to sign up for at-home or at-office pick-up or delivery. Promotion Strategy In the Bag Cleaners understands that customers are often enticed by special deals and are more likely to provide repeat business when they believe they are receiving high value for their dollar. This is why In the Bag Cleaners introduced the VIP Program, which allows members to receive a 25% discount on every order placed. Membership for the VIP Program is only $10 for a lifetime membership and provides many benefits. In the Bag Cleaners also offers Wacky Wednesday Specials in which a different promotion is offered every Wednesday. The savings on the promotional item for the week is at least 30% off the regular price of the service. In the Bag Cleaners understands that people need to be informed, and has implemented an blast system that notifies subscribers every Tuesday of the upcoming Wacky Wednesday Special for the week.

13 13 Marketing Implementation Structural Issues In the Bag Cleaners currently utilizes an organizational structure to ensure that operations run smoothly. However, In the Bag Cleaners recognizes that some changes may be necessary in order to ensure the highest customer service satisfaction. If organizational changes are necessary, In the Bag Cleaners will fill positions based on employee s areas of strength first. In an employee does not have strength in a particular area, but conveys an interest in performing a certain duty or task, on the job training will be provided. Tactical Marketing Activities Specific Tactical Activities Product Activities 1. Review existing services offered increase? 2. Quality service implement customer survey Pricing Activities 1. Compare pricing with local competitors 2. review VIP Program Place Activities 1. Research expansion into McConnell AFB 2. Research expansion into other cities (Haysville, Kechi, Park City, Valley Center, etc.) IMC (Promotion) Activities 1. Incentive for customer survey (e.g., discount) 2. Increase advertising Person/Department Responsible Company owner, store managers Required Budget Completion Date $ July 2012 Store managers $0 31 July 2012 Company owner, commercial realtor, military personnel, city zoning officials Company owner, marketing coordinator $ December 2012 $0 31 July 2012 Evaluation and Control Formal Controls In the Bag Cleaners plans to implement a customer satisfaction survey in the upcoming months to determine areas that need improvement. Based on the results of the survey, different controls may need to be implemented. It is possible that additional personnel may be required at

14 14 certain locations and/or at certain times. In the Bag Cleaners expects employees and management alike to be flexible to work through any changes that may be implemented. Informal Controls In order for In the Bag Cleaners to continue to operate successfully, its customers must be satisfied. When customers are satisfied, they are likely to return In the Bag Cleaners and to recommend services to their friends, family, and co-workers. Based on the current organizational structure, many locations are operated by only one employee. If a customer feels that the employee is not performing their duties adequately or that the employee is not efficiently operating the In the Bag Cleaners location, management expects to be notified by customers. Marketing Audits Marketing activities can be monitored through a variety of methods. The popularity of In the Bag Cleaners on Facebook can be monitored through the marketing tools provided on the Ads and Pages section of the Facebook site. Daily usage and trends can be monitored and analyzed through this section. Additionally, it is easy to track usage and trends on Twitter, especially under the #Discover section of the Twitter website. blasts are also able to be tracked because of the servicer that sends out the messages. The servicer tracks the percentage of s that are opened, what if any links are opened from the and if any recipients delete the without opening it first.