Marketing Communications Plan For A Small Cleaning Service Company.
Semester One 2003/2004
MARKETING COMMUNICATIONS
Coursework 2 / Report
MARKETING COMMUNICATIONS PLAN FOR A SMALL CLEANING SERVICE COMPANY
CONTENTS
CONTENTS 2
EXECUTIVE SUMMARY 3
INTRODUCTION 3
1. Situation - Where are we now? 4
2. Objectives - Where do we want to go? 6
3. Strategies - How can we get there? 8
4. Tactics - How Do We Get There? 11
5. Action 12
6. Control 15
CONCLUSIONS 17
APPENDICES 18
BIBLIOGRAPHY / REFERENCES ? 24
EXECUTIVE SUMMARY
The project at hand is to develop a marketing plan that works and is easily implemented for the client who is Mike Smith.
The aim of this report is to outline the process used to prepare a marketing plan for a small business, AtHome Cleaners in this instance, in this report we shall make a lot of assumptions to achieve a viable marketing plan. AtHome Cleaning Services is run by Mike Smith who resides in Richmond, London. Mike now wants to expand his business and services to other Boroughs and neighbourhoods outside of Richmond. He has solicited the help and advice of Alice Moore and her staff, we are a consulting company that is linked to the local council office. We have experience in advertising to consumer and business to business markets, locally, nationally and internationally. Working closely with our clients we choose the right message and media offering the best possible return on their budget. We then begin the creative process, in this case with AtHome, ensuring that their customers hear what they have to say, and you say what they want to hear. To prepare the marketing plan, we shall use the SOSTAC model as a tool to achieve this analysis and prepare the project for Mike Smith's AtHome campaign drive. We endeavour to give a marketing and businesss definition and explanation of SOSTAC, as well as to use it as an aid to enhance clarity and understanding.
We shall also incorporate the use of Gantt Charts and maps to ensure that our plan is easy to understand and consequently to implement in the target regions. As the campaign is initially for a six month target which after evaluation and control shall be expanded to neighbouring boroughs we shall keep a close eye by constant evaluation on a weekly, monthly and quarterly basis to ensure all is working according to plan.
INTRODUCTION
Planning as a concept concerns the future from the base point of today. The aim of planning is to achieve objectives through implementing a policy based on a combination of current known facts and forecasts of the future. In marketing terms, the plan organises and mobilizes resources, promotes the key thrusts, outlines strategies and communications and targets to various sections. The overall plan will be developed from corporate policy, marketing and market research and intelligence, an analysis of resources and an in-depth assessment of opportunities of the competitive environment in which AtHome will face.
Marketing Plan: (General Outline)
* Context - the overall environment in which AtHome operates, including competition and internal resources.
* Subject - An outline statement of the Products/ services on offer.
* Objectives - Timescale - to be noted, financial indicators, market share etc.
* Basic Plan - General outline of what will be needed to meet the plan.
* Marketing Mix - Pricing plans, terms of sales, discount rates.
* Price Plans - Physical distribution and types of channel to be used.
* Communication mix - Impact, Mobilization of PR, advertising, other promotions and direct sales.
Given the nature of the inherent problems of business services such as Mike Smith's cleaning business, service providers have to cope with many different kinds of problems. Among these problems is coping with effective marketing strategy. In this report we will deal with these problems and implement them accordingly to Mike Smith's business for example:
* How to differentiate ones service and gain a competitive advantage among various competitive services.
* How to determine the quality and its evaluation of each service.
* How to determine the productivity/cost effectiveness of each type of service.
1. Situation
Mike Smith is managing a small and local business of cleaning service for three years, which is entitled AtHome. Actually, he employs thirty cleaners on a part-time basis and an administrative help. His business has a big success in a local area, in Richmond, and it developed very quickly with the word-of-mouth communication.
Now it presents a major opportunity in front of him:
More and more potential cleaners from Richmond and neighbouring boroughs offers their candidature in order to work for "At home".
This is meaning that his firm is more and more known in Richmond borough and neighbouring boroughs.
For establishing a report of the situation, which is the first stage of SOSTAC method, we are going to make an external analysis of environment with PEST tool and a final analysis with SWOT tool.
This following table presents the main opportunities and threats in external environment of the firm by PEST tool (Political, Economical, Social and Technical).
Also the external environment offers numerous opportunities, which form an favourable environment for the development of the AtHome business.
The following table summarizes our final analysis of the situation with SWOT tool.
According to this analysis, AtHome business need to :
) Create, organise and set up a marketing communications plan adapted in the situation and the ambitions of this business.
2) Gain the trust of the potential and current customers and communicate about this confidence of its first customers for the firm.
3) Develop the loyalty of its customers to establishing a good network in order to face to competitors
2. Objectives
This process sets out to define as specifically and clearly as possible "where AtHome wants to go". The aim now is to ensure that all its objectives are clear by using the SMART approach which sets out to ensure all targets and goals are :
SPECIFIC
MEASURABLE
ACTIONABLE
REALISTIC
TIME SPECIFIC
The SMART approach will help Mike to quantify the success or failure of the campaign.
The objectives will ...
This is a preview of the whole essay
3) Develop the loyalty of its customers to establishing a good network in order to face to competitors
2. Objectives
This process sets out to define as specifically and clearly as possible "where AtHome wants to go". The aim now is to ensure that all its objectives are clear by using the SMART approach which sets out to ensure all targets and goals are :
SPECIFIC
MEASURABLE
ACTIONABLE
REALISTIC
TIME SPECIFIC
The SMART approach will help Mike to quantify the success or failure of the campaign.
The objectives will be looked at in two ways:
. the Marketing Objectives
2. the Communications Objectives
Marketing Objectives are to:
> Establish a network of cleaners covering Richmond and neighbouring boroughs during the first six months of the campaign
> Increase the network of cleaners to cover a London-wide area in the following six months
> AtHome should aim at customer retention by maintaining the existing client-base
Communications Objectives
These aim to raise awareness of the target market of AtHome's services. To do this it is important to look at the mental stages of the target market using the DAGMAR (defining advertising goals for measuring advertising responses) and AIDA hierarchical models to make sure we have captured the target market's attention, interest, desire and action by taking them through the process of unawareness, awareness, comprehension, conviction and in this case action. Below is a visual picture of the process:
Defining unawareness
Advertising awareness Attention
Goals for comprehension Interest
Measuring conviction Desire
Advertising action Action
Responses
AtHome's main communications objectives will be to stimulate search behaviour, increase trial purchases, increase repurchase rate and increase word-of-mouth recommendation. To achieve these objectives AtHome's communication plan will focus on affecting the mental stages desire and Action in the AIDA-model. (Brassington and Pettitt, 2000, p. 578)
The communications objectives are to:
> Raise awareness of AtHome's services among the ABC1 social grades, among the 25-45 age group, and mainly among the 'cash rich' but 'time poor' 'thirty-something's' who are Mike's main target market
> Position AtHome's services as the friendliest, most efficient and professional service of its kind on the market
> Within the 12 months period of to aim to have up to 80% of heavy domestic cleaning users dependent on AtHome's excellent services
> Generate interest and trial in the target market
> Encourage satisfied clients to increase 'word of mouth' and recommendations.
Below: Objectives -to cater to 'cash rich'-'time poor' prosperous professionals in the upper to lower middle class social grades ABC1
3. Strategies
After establishing where we want to go we have to know how we can get there.
AtHome is a local company situated in Richmond in West London. The main strategy is to maintain market share in the Richmond area but also, over a longer period, to expand. The expansion will mainly be in Ealing, Hounslow, Wandsworth and Kingston upon Thames. (see appendix 1) These boroughs have low unemployment rate and Ealing and Kingston Upon Thames have relatively high percentage of persons in AtHome's target audience. (see figure 3.1)
The boroughs are different from each other and the strategy needs to be adopted to each area. Ealing is experiencing a regeneration. It is important for AtHome to take advantage of that and early expand their business in Ealing. Ealing is a multi-racial and multi-cultural society (see figure 3.1) which has to be integrated in the approach strategy. Hounslow and Wandsworth have very low unemployment which is a big opportunity for AtHome. In Hounslow and Wandsworth the ethnic diversity is not as big as in Ealing and the communication strategy will be adopted accordingly. Kingston Upon Thames has less ethnic diversity than Ealing but more than Hounslow and Wandsworth. When AtHome approaches Kingston Upon Thames this needs to be considered.
When considering what growth strategy that should be used it can be useful to use the strategic thrust grid (see figure 3.2). AtHome's Strategic thrust will be Market penetration or expansion.
This strategy means AtHome will sell their current service (cleaning service) in existing markets.
The easiest way to achieve market penetration or expansion is by winning competitor's customers.
AtHome main business will come from 'thirty-somethings' that are 'time-pore' and 'cash-rich' and live in Richmond or the surronding area. AtHome's perfect customer will be career oriented and heavily work burden. AtHome will position themselves as the friendliest, most efficient and professional cleaning service of its kind on the market.
The best way to plan which tools are the best to use in achieving AtHome's objectives a product lifecycle can be useful.
Figure 3.3 - Product lifecycle
=AtHome's position in the lifecycle
The growth phase has the following characteristics:
* Sales/profit growth
* Wider usage
* Development of higher market share
* Increased competition
According to the product lifecycle model (see figure 3.3) AtHome should concentrate their communication tools to advertising and personal sales, also sales promotion and PR are to be considered. Since the budget is moderately small AtHome should concentrate their advertising on cheaper mediums instead of expensive ones such as television.
4. Tactics
Tactics is the operational element of strategy, which leads to the question: What are the individual steps AtHome needs to take to achieve their objectives? The tools of tactics are such as advertising, Public Relations (PR), sales promotion, personal sales etc. I chose advertising, PR and Sales promotion for AtHome. Personal Sales may be implemented when AtHome has grown to a big company.
Advertising, a direct tool of Marketing Communications, has an early effect on the perception of the brand, but it usually takes some time to have an effect on sales.
Sales Promotion, an indirect tool, has an immediate effect, as it tends to stimulate impulse purchasing.
PR, also being an indirect tool, has generally a constant communication activity. It will build its effect on sales slowly, as the main function is to make the other communication tools more credible for the customer.
Now, we have to figure out what when happens and for how much, to explain the leading question of tactics. The best way to express this, is probably the Gantt chart. Gantt charts are useful tools for planning and scheduling projects.
Tactical Timings of Different Communication Tools (PR Smith, 2002)
Tools
Jan
Feb
Mar
Apr
May
Jun
Cost £
Advertising
Internet
Radio
Newspapers,
Regional and
Evening Press
Yellow Pages
Direct Mail
Posters
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
3.000*
7.611*
10.000**
184***
2000****
3600***
Sales Promotion
Coupons
Discount
X
X
X
X
X
X
X
1800*
891*
Public Relations
X
X
X
X
0
* Assumptions see appendix 4, **www.eveningstandard.co.uk, ***www.yell.com , ****http://cms.aso.de
5. Action
Action is the implementation of the details of tactics. 'Each tactical communication tool needs to be planned as a mini project' (P. Smith, 1997) Therefore, the monthly Gantt chart is specified into a weekly Gantt chart (Appendix 2). The process of the implementation of every tactics tool is shown.
Advertising
Not to extend the budget scopes, we have to determine how and when to advertise. The best ways to advertise are the Internet, local radio stations, local newspapers and direct mail, such as e-mail and leaflets.
The Internet is a great way to reach people 24 hours a day, 7 days a week. It is necessary to be present on the web page during the whole period. AtHome can put information about their services on-line, and the customers will come when they are ready. Especially for time poor people this is a good opportunity to decide if and when they want to have help in housework. Usually the costs of implement a website is relatively low compared to those to keep the website up-to-date. A computer specialist is forecasted to look after the build up of the website.
Since our business is still in the process of growing, meaning still quite small, I recommend advertising at local radio stations. The advantage of advertising at local radios is that it can reach a lot of future customers. AtHome can make up special songs, slogans, or jingles to get our message out. Mike and his administrative help can create the message.
Newspapers, evening and regional press advertisements are great ways to announce our service to local customers, which is AtHome's aim. The ad doesn't have to be enormous, but with the slogan can catch a wide range of the 'thirty-somethings'. Once set up the ad by an advertising specialist, Mike can use it through the whole six months.
Direct Mail is also to be considered. I have chosen leaflets for AtHome. Since the guiding theme already exists (see below), Mike only has to print them.
I determined AtHome's advertising slogan as the following:
'Cash rich and time poor? We can find a remedy for your housework!'
This is the guiding leaflet theme:
'CASH RICH AND TIME POOR?
WE CAN FIND A REMEDY FOR YOUR HOUSEWORK!'
AtHome - THE CLEANING SERVICE
Visit our website www.athome.co.uk or
dial 0800-AtHome
Posters can reach commuters and car drivers which the most of the 'thirty-somethings' are. Since the costs are low to medium sized, AtHome can't advertise every month. The Posters can have the same layout as the leaflets to save money. As well as the leaflets only have to be printed, also the posters have to be.
I also recommend advertising in the Yellow Pages and the Yellow Pages online. This is a low sized cost medium and lasts for a whole year. Mike can receive help from the Yellow Pages associates to create the ad.
Sales Promotion
Sales Promotion is used to engage the purchaser. Coupons and discounts are offered to our customers via newspapers. Coupons are given to new customers during the first two weeks. The offer of the coupons is that all new customers get one cleaning service for free which is advertised on the newspapers. Afterwards special discount offers are forecasted. The discount offers when you spend nine cleaning services get the tenth free. Both are administrated in the customer data base by Mike's administrative help.
PR - Publicity
PR is a low cost method of getting across a message to the market. The basic aim is 'to get information or news about a business in magazines or newspapers in the form an article or news item.' (Sara Williams, 2002) Among the cleaners and customers, AtHome has to promote the cleaning service and the company. PR doesn't have to be expensive. I chose press releases for AtHome, because Mike is able to write them himself to save money.
An example for a press release:
Press Release
November 12th 2003
AtHome IS EXPANDING TO EALING, WANDSWORTH, KINGSTON UPON THAMES AND HOUNSLOW
An established cleaning company, AtHome, is expanding to neighbourhoods of Richmond. Their aim is to help time poor people with their housework.
As well as the customers can book cleaners 24-hours 7-days a week via the internet or the telephone, so also cleaners are welcome to introduce themselves. Amongst all cleaning services in this area, they are the only ones with such a special offer.
The owner of AtHome, Mike Smith, says: "My staff and I want to support people regarding housework. These days, people are so exhausted and don't have plenty leisure time. We want them to relax and not making sorrows about housework!"
As a special offer during the first two weeks, every new customer can have a free cleaning session. Bookings are now taken on www.athome.co.uk or 0800-AtHome.
Further Information: Mike Smith and Staff: www.athome.co.uk or 0800-AtHome
The layout is based on Nick Daws, 1996
6. Control
This stage of the project aims at keeping an eagle eye on all the plans and ensuring the campaign is rolling out effectively and is result oriented in a positive manner, this is a form of evaluation. This stage provides feedback on the whole campaign in its entirety. Some of the results that we aim to produce from the campaign are as follows:
> Aim at ensuring the campaign is rolling out effectively and is result oriented in a positive manner.
> For controlling the impact of each communication tool, it is necessary to ask each new contacted person how he/she heard of the AtHome company, and to note all people who contact the company by telephone, e-mail, fax and even in person. This will be achieved using market research methods such as short questionnaires on the Internet and asking customers how they heard of AtHome when they get in touch with AtHome.
> Establishing of performance standards - this shall be done by measuring:
? number of hits on the website daily
objective: 100 visits per week at least from February.
? number of contacts (by phone, e-mail...) from potential customers who need more information about our services such as our pricing, quotations, range of services and location.
objective: 50 contacts/calls per week from February
? re-collected coupons
objective: 40% of distributed coupons
? new customers attracted
objective: 20 new clients per month in all the regions where AtHome is present within the first 6 months.
> Evaluation of actual performance relative to established standards: - compare the weekly, monthly and quarterly results with the weekly, monthly and quarterly objectives.(Gantt Charts)
> Assess the Boroughs and neighbourhoods penetrated by AtHome successfully.
> Update employee database with all new cleaners in each new neighbourhood.
Another control system to carefully chart out progress or any glitches is the table below that outlines progress in the relevant areas of the campaign.
Quantified objectives
Means of measuring
Frequency of measurement
Accountability
Cost
Action
Raise awareness of AtHome services among the ABC1 social grades, mainly among the 'cash rich' but 'time poor' 'thirty-something's'
Responses to radio, newspapers, fliers and coupons
Weekly
Marketing and media department.
*
Intensify pace
Number of clients requiring regular AtHome services.
Number of calls, quotations and contracts acquired
Monthly
Sales and administration
*
Intensify pace
Number of Boroughs and neighbourhoods penetrated successfully by AtHome presence
Responses to fliers, coupons at least 40% responses
Quarterly
Administration department
*
Intensify pace
Annual review
Feedback forms, business contracted, financial position etc...
Annual review
Accounting and Finance/Sales/Marketing
*
Evaluation and assessment
CONCLUSIONS
AtHome will be a competitive company in the comprehensive range of cleaning services market. The intention is to cover the neighbouring boroughs of Richmond and afterwards expanding London-wide. The aim is to begin achieving this within the first six months of the campaign and spreading it as fast as the service is required and effective, by the end of the 12 month period. An annual review and evaluation will be conducted incorporating all the previous data and progress from the monthly and quarterly reviews and Gantt charts.
AtHome aims to have built up a credible database of employees and customers. The marketing plan has been designed to be simple and easy for Mike Smith to understand and in-turn, to incorporate.
APPENDICES
Appendix 1 - Competition
The area in which Mike Smith wishes to expand his business (AtHome), which is in the Richmond area. He should note that there would already be established cleaning businesses already operating in and around the Richmond area. You cannot just say that the business AtHome will be the only cleaning business in the area, as there are for sure others close by, who will strongly oppose a rival business. This hence will cause competition.
"Competition does bring some advantages. It helps to stimulate innovation; it passes onto the consumer some of the benefits of cost reduction. Competition, both actual and potential, provides some restraint upon the level of profits, and also the protection against abuse of economic power".
(Cunningham Pg 92.)
As you can see below I have listed the main "Cleaning Businesses in and around the "Richmond" area, they are also businesses which will compete with AtHome on a competitive basis. This is the area in which Mike Smith wishes to expand his business, as well as other neighbouring boroughs:
* Pear Cleaning Services.
22. Ranleigh Road, Richmond
* Regency Cleaning Services
108a The Parade, Richmond
* Richmond Clutter Cleaning Services
436 Bradwalk opp Spa health clinic
* Nova Cleaning Ltd
59a Charlton Road, Richmond
(Thompson Local, Richmond 2003 - 2004)
* Office Cleaning Company
23 Ayesbridges Avenue, Richmond
* Brooms Cleaning Services
33 Halfaere Road, Richmond
* Blue Diamond
Unit 8 Boston Business Park, Triumphs Way, Richmond.
(Asian Business Directory, Greater London 2002 - 2003)
Competitive Opportunities
Once Mike Smith has managed to create and maintain a regular data gathering system, which adds successive pieces of data and builds up a fuller and fuller profile of the major competitors in the Richmond area, what should we be looking to do with it? More precisely, what competitive opportunities are there for an organisation such as AtHome? (Please refer to Fig 1)
Figure 1
(Source: Marketing Strategy, Paul Field - Chp 3, Pg 67).
- Competitor Analysis, The first area of analysis concerns what the competitor is currently doing and what in our opinion the competitor is able to do. These are questions, which will have to be answered by you (Mike Smith) for each of the main competitors in the Richmond area I have listed previously. For example, For each of the Competitors mentioned in the list earlier questions can be asked such as the following:
* What is the competitor's current strategy?
* How is the competitor currently competing with other businesses in the Richmond area?
* What are the competitor's capabilities?
For Mike Smith, a competitive advantage has to be an advantage over the competition, looking more closely at the business (AtHome) and the competitor analysis which has been carried out so far, it is vitally important that you (Mike Smith) choose areas of advantage that have true value in its particular service and competitive situation.
Appendix 2 - map over AtHome's target market
Main market - Richmond
Expansion markets - Ealing, Wandsworth, Kingston upon Thames and Hounslow
Tools
Week 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
Cost£
Internet
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Radio
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Newspapers, Regional and Evening Press
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Yellow Pages
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Coupons
X
X
Discounts
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Press Releases
X
X
X
X
X
Appendix 4
Assumptions:
. Budget: £30.000
* one cleaner earns £7,5 per hour
* one cleaning session, which is about 2 hours, costs Mike £15
* Mike has 30 part-time cleaners which equals to 15 full-time cleaners working 8 hours per day, 5 days a week
* one customer needs 2 cleaning sessions per week
--> x = 150 customers per week
* 80% customer increase, as mentioned above, y = 120 new customers per week
* costs for coupons in £:
CC = y * costs of 1 cleaning session
= 120 * 15
= 1800
* costs for discounts in £:
CD = (x + y) * costs of 1 cleaning session * amount of discounts * weeks
= 270 * 15 * 1/10 * 2.2
= 891
* Advertising:
- Internet build up: 40 hours à £40/h --> £2400
Internet update: 10 hours per half year à £40/h --> £600
http://shop.stefanboehrer.de
- Radio: Commercial production costs £150:
3 times during the 6 months period --> £450
Commercial broadcast times and rates:
Commercials 07:00 - 10:00: £31 per 30 seconds
Commercials 17:00 - 21:00: £31 per 30 seconds
--> total costs for radio advertising in £:
CR = 450 + 7161
= 7.611
www.choicefm.com
* costs for advertising in £:
CA = 3.000 + 7.611 + 10.000 + 3.600 + 2.000 + 184
= 26.395
* costs for PR in £:
CPR= 0, because Mike writes them himself
* total costs in £:
C = CC + C0 + CA + CPR
= 1.800 + 891 + 26.395 + 0
= 29.086
2. Mike is creative.
BIBLIOGRAPHY / REFERENCES ?
Printed books
* Brassington, Frances and Pettitt, Stephen. (2000) Principles of Marketing. (2nd edition) Edinburgh Gate: Pearson Education Limited.
* Cunningham, James P. (1974) The fair trading act 1973, Consumer Protection and Competition Law. London : Sweet and Maxwell
* Daws, Nick. (1996) Advertising for the Small Business How to get maximum sales for the minimum costs. Chichester: Otter Publications
* Fifield, Paul. (1993) Marketing Strategy. Oxford : Butterworth-Heinemann
* Jobber, David. (1998) Principles and Practice of Marketing. (2nd edition) Berkshire: McGraw-Hill Publishing Company.
* Williams, Sara. (2002) Small Business Guide. (16th edition) London: Press Vitesse
* Smith, Paul, Berry, Chris and Pulford, Alan. (1997) Strategic Marketing Communication. London: Kogan Page.
* Smith, PR. (2002) Marketing Communications (3rd Edition) London: Kogan Page
Electronic resources
* 1&1 ProfiSeller. [Stefans Online-shop.] [online] Available from: http://shop.stefanboehrer.de [Accessed 10 November 2003]
* Adlersoftware CMS Entwicklungsumgebung [online] Available from: http://cms.aso.de [Accessed 11 November 2003]
* Choice FM [Soul Media Ltd] [online] Available from: http://www.choicefm.com [Accessed 10 November 2003]
* Radley College Geography department. [online] Available from: http://geography.radley.org.uk [Accessed 17 November 2003]
* This is London. [The Evening Standard] [online] Available from: http://www.eveningstandard.co.uk [Accessed 10 November 2003]
* Yell.com. [Yell Limited] [online] Available from: http://www.yell.com [Accessed 10 November 2003]
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Marketing Communications Plan for a Small Cleaning Service Company
Marketing Communications, Semester 1, 2003-2004 1
