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Analysis of the Problem How will Aussie Pooch Mobile plan and shape its future expansion?

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Introduction

HOLY ANGEL UNIVERSITY ANGELES CITY AUSSIE POOCH MOBILE (Case Study 5) Group 2 Arceo, Alexsandra L. Jacinto, Charito H. Maniago, Kim Russel B. Quiazon, Lady Lin T. YFRESMAR/TTH - 4:30-6:00 PM Ms. Cristina Naguit Introduction * Aussie Pooch Mobile Pty. Ltd (APM) was founded in 1991 by Christine Taylor. The company had 125 mobile units in Australia, of which 55 were located in Queensland, 42 in New South Wales, 8 in ACT, 12 in South Australia and 8 in Victoria. In addition, representatives operated another six company-owned units. The company bathed more than 20,000 dogs each month and had an annual turnover of some $3 million. * APM specialized in bringing its dog washing services to customers' homes. Dogs were washed in a hydro bath installed in a specially designed trailer, which was parked in the street. The trailer had partly open sides and roof to provide protection from sun and rain. * The fee paid by customers varied from $15 - $30 per dog, depending on bread and size, condition of coat and skin behavior and geographic location, with discount for multiple animals at the same address. Operators also offered free advice to customers about their dog's diet and health care, including such issues as ticks and skin problems. They encouraged customers to have their dogs bathed on a regular basis. The most commonly scheduled frequencies were once every two or four weeks. * New APM franchisees were recruited through newspaper advertisements and advertorials as well as by word of mouth. Interested individuals were invited to meet with a representative of the company to learn more. ...read more.

Middle

A territory, typically encompassing about 200 homes, currently sold for $10,000 plus 10% GST. Jim's fee for washing a dog, including blow-drying, ranged from $28-$38 Alternative courses of Action * How will Aussie Pooch Mobile plan and shape its future expansion? a) In planning for future expansion, how will APM expand internationally? * The first decision should be in which countries, regions or cities to enter. The management knows for sure that poor people probably do not use this kind of service too much so they should focus on the bigger cities on richer regions of the other part of the countries (e.g. Europe). Looking at the different trends of nationalities it is hard to get customers, but once they try the service, they will use it in the future. * A possibility is to give discounts and promotions to new users and make sure that they will try the dog washing service. It is important for APM to recognize the different kind o f dogs, and dog treatment methods in different countries. The extra services, costs, pricing issues need to be concerned before entering into new countries as well. * The company has to consider the factors in the host country and make then the decision about the expanding plan and about franchising. The same analysis needs to be made to decide if the master franchisees are needed or not. For franchisees it is definitely easier to start their business in a franchise system than alone. This way they can get some financial help from APM in the beginning. Also they will receive a free training about dog treatment, washing and much additional information later on how to be successful. ...read more.

Conclusion

If the franchise of the American market proves to be successful. APM should set up more master franchisees in the states and those could set up more franchises. At the beginning, APM could also provide little gifts such as free aromatherapy for the dog if the customer uses the service more often. Learning * In franchising, there are important factors to consider first, the product services should have quality and exceed the expectation of our customer. Second, is the location, which is a most differentiator to attract customers, the location must be convenience to the customers or easily accessible. * Franchising is the best way to expand our business and as a marketer before we begin with any type of business; we must consider the most important factor which is the level of demand of the customers to the product or services that you would like to offer. * Developing a good IMC plan will help the company to achieve its goals and objectives in promoting and communicating its products or services. Using the promotional tools in an effective and efficient way makes it easier to inform, persuade, and remind its target customers. * Business expansion can build more brands and shareholder value, add revenue sources and growth markets, and reduce dependence in your home market. * Any service provider should engage in public relation activities such as press releases, press conference or sponsoring an event that will establish good image and build consumers' trust and loyalty. * To have a competitive advantage, service providers must create an edge over their competitors. In the aggressive business world, especially in today's economy, every advantage counts to establish your business in the top of your industry. Gaining a competitive advantage takes strategic planning and extensive research. ...read more.

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