Team 1H, LLC Aaron Dillon Rachel James Kris Jones Gordon Thomas Steve Thozeski Clients Shane DeFazio Jim Neville Zach Porter
<ul><li>Executive Summary  </li></ul><ul><li>MPW Industrial Services is an industrial cleaning company that provides high-...
MPW’s Core Purpose and Mission Statement “ MPW partners with customers to enhance operational efficiencies, improve reliab...
Table of Contents
Analysis Company & Industry
1 MPW Company Analysis MPW Analysis Analysis <ul><li>Threats </li></ul><ul><li>Competition from larger companies. </li></u...
<ul><li>MPW’s Strengths and Opportunities </li></ul><ul><li>MPW is a leader in safety for their industry. Their safety reg...
Industrial Cleaning Industry Analysis 3 Analysis Industry Analysis <ul><li>Companies, like MPW, are highly invested in one...
<ul><li>MPW has seen a recent  </li></ul><ul><li>decline   </li></ul><ul><li>in revenues due to the struggling automotive ...
Recommendations Marketing
<ul><li>MPW’s current marketing strategies rely heavily on customers contacting them. </li></ul>5 Solution: Using basic ma...
<ul><li>We recommend that MPW sends out a brochure to  specific companies within their new industries. </li></ul><ul><li>A...
Brochure   vs.  Direct Selling  <ul><li>The only cost of the brochure is actually the publishing and postage. </li></ul><u...
The ISSA, or the International Sanitary Supplies Association, is a global network of over  5,800  building service contrac...
Cost- Benefit Analysis for Joining the ISSA Recommendation: Membership to ISSA ,Continued Benefits Costs <ul><li>Great net...
<ul><li>Trade Shows </li></ul><ul><li>A quick and inexpensive way to  promote MPW is to go to trade shows sponsored by the...
Why Go Back To Trade Shows? The Answer is …. The one thing that hasn’t changed in the business world is the fact that peop...
Ways to be Successful at Trade Shows The key to success in trade shows and events, as with any sales or marketing plan, st...
UPCOMING TRADE  SHOWS Buildings NY, 2009 June 16-17, 2009 Venue: Jacob K. Javits Convention Center Organizers: Reed Exhibi...
Recommendation Expansion into  New Markets
<ul><li>Problem: </li></ul><ul><li>Currently, MPW’s leading industry is declining, forcing them search for new markets. </...
The construction and mining equipment division of the company is one of the  largest   manufacturers of construction, mini...
Strengths and Weaknesses The heavy duty equipment industry will have a sudden decline until  2010 The growth rate of the i...
17 <ul><li>Promote Success in Automobile Industry </li></ul><ul><li>Considering MPW’s success with the automobile industry...
<ul><li>The top 10 safety consultation companies in 2005 had an average revenue of  $20.4  million.  (Hansen, 2007) </li><...
Safety Resources Company of Ohio 19 <ul><li>Main Office in Canton, Ohio </li></ul><ul><li>Works with MPW clients currently...
20 <ul><li>Network with SRCO </li></ul><ul><li>Word-of-mouth is one of the best ways for companies to network their busine...
Colleges and universities are constantly constructing new facilities and renovating out-of-date ones.  Developing long-ter...
Ohio alone , has  132  colleges and universities.  Eleven of those schools currently have   13,000   or more students, wit...
New Ohio University Baker Center,  Cost : over $40 million.  Image: Google.com University of Akron’s new  football stadium...
Benefits of University Affiliation <ul><li>Short -Term </li></ul><ul><li>High demand for MPW cleaning due to competitive a...
25 Conclusion <ul><li>Through strenuous research our team, Team 1H, has come up with recommendations that will be helpful ...
References 26
References 26
27 Appendix A Figuring the costs of direct sales and the brochure Travel costs: (miles traveled/MPG)(avg. gas price) +mile...
28 Appendix B
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Cluster Project 3 report on MPW Industrial Cleaning Services

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This is the final draft for my group’s report on MPW Industrial Cleaning Services for Ohio University\’s Business Cluster Program. This project is about how our group can improve MPW’s marketing and find new areas of growth.

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Cluster Project 3 report on MPW Industrial Cleaning Services

  1. 1. Team 1H, LLC Aaron Dillon Rachel James Kris Jones Gordon Thomas Steve Thozeski Clients Shane DeFazio Jim Neville Zach Porter
  2. 2. <ul><li>Executive Summary </li></ul><ul><li>MPW Industrial Services is an industrial cleaning company that provides high-strength cleaning services, while keeping it’s safety regulations well above their competitors. Working as consultants of MPW, our main focus was to suggest recommendations to diversify their client base, which would significantly increase their sales and profits. To accomplish this, our recommendations are targeted toward penetrating other markets and finding other ways to market their company. </li></ul><ul><li>In order for MPW to remain a top competitor in the industrial cleaning industry, it is important to target other markets and revamp their marketing schemes. We have provided a brief analysis of the industrial cleaning industry and MPW’s current state, as well as recommendations that will benefit the company in the future. </li></ul><ul><li>MPW’s largest contributing industry has taken a large hit, therefore they need to seek out other industries to infiltrate. </li></ul><ul><ul><li>Considering the growth of the heavy duty equipment industry, providing paint shop management will lead to new opportunities and additional revenue. </li></ul></ul><ul><ul><li>Since universities want the highest quality buildings, MPW must look into facility renovation management, both pre- and post-construction. </li></ul></ul><ul><ul><li>MPW’s standards of safety are extremely high, so we recommend that they merge with safety consulting companies to increase their networking. </li></ul></ul><ul><ul><li>MPW relies heavily on word-of mouth-advertising, we recommend that they target specific markets to advertise toward. </li></ul></ul><ul><ul><ul><li>Developing a brochure for a specified target market will make the audience feel as if they need MPW’s services. </li></ul></ul></ul><ul><ul><ul><li>An ISSA membership is an easy way to network with companies within a market that MPW is already familiar with. </li></ul></ul></ul><ul><ul><ul><li>Trade shows are an easy way to market to an already categorized target market. </li></ul></ul></ul><ul><ul><ul><li>If implemented correctly, these recommendations will help MPW find alternative solutions for revenues. </li></ul></ul></ul>
  3. 3. MPW’s Core Purpose and Mission Statement “ MPW partners with customers to enhance operational efficiencies, improve reliability and minimize costs in providing integrated technology-based Industrial Cleaning, Facility Management, Water Purification and Container Management in North America.” Our Team Core Purpose “ The purpose of our team is to analyze MPW Industrial Services and the current industry climate to assist MPW in successfully adapting their company to be more profitable in the Industrial Cleaning industry.” (MPW Industrial Services, 2009)
  4. 4. Table of Contents
  5. 5. Analysis Company & Industry
  6. 6. 1 MPW Company Analysis MPW Analysis Analysis <ul><li>Threats </li></ul><ul><li>Competition from larger companies. </li></ul><ul><li>Failing economy. </li></ul><ul><li>Large corporations </li></ul><ul><li>outsourcing to other countries. </li></ul><ul><li>Companies using their own </li></ul><ul><li>cleaning teams to save money. </li></ul><ul><li>Areas of Improvement </li></ul><ul><li>Stronger marketing strategy. </li></ul><ul><li>Access to top level </li></ul><ul><li>management to market to. </li></ul><ul><li>Opportunities </li></ul><ul><li>Expansion into new </li></ul><ul><li>industries. </li></ul><ul><li>Development of network between future customers. </li></ul><ul><li>Strengths of MPW </li></ul><ul><li>Strong safety regulations </li></ul><ul><li>and procedures. </li></ul><ul><li>Innovative equipment for </li></ul><ul><li>on-site operations. </li></ul><ul><li>Company owned </li></ul><ul><li>engineering team. </li></ul>Through detailed analysis of MPW Industrial Services, we were able to identify the company’s strengths, as well as specific areas that need improvement. These strengths and weaknesses were used as the foundation for our recommendations and are further outlined on the next page. Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Construction And Mining Expansion Recommendations Safety Consultation Colleges
  7. 7. <ul><li>MPW’s Strengths and Opportunities </li></ul><ul><li>MPW is a leader in safety for their industry. Their safety regulations are top notch on every job-site . MPW has held an average three year EMR rating of well below 1.00. (MPWservices.com). </li></ul><ul><li>MPW has the ability to create innovative and specialized equipment for its operations. This ability gives MPW flexibility in dealing with on-site problems. </li></ul><ul><li>MPW has a company owned engineering team on each job-site, which greatly cuts operating costs. </li></ul><ul><li>Throughout our recommendations, MPW has opportunities to increase both networking and marketing. </li></ul><ul><li>Threats and Weaknesses </li></ul><ul><li>of MPW </li></ul><ul><li>I t is difficult for MPW to penetrate other markets, such as government contracts and aeronautics because of competition with large companies currently in the market. </li></ul><ul><li>The economy has negatively affected many of MPW’s markets, including their largest industry, automobile manufacturing. </li></ul><ul><li>Companies are outsourcing factories to other countries to save on labor costs. Therefore, MPW is unable to reach these foreign plants, leading to a decline in potential customers. </li></ul><ul><li>It is increasingly common for companies to develop their own cleaning crews instead of hiring companies, such as MPW. </li></ul><ul><li>MPW has a relatively weak marketing strategy. </li></ul>MPWservices.com 2 MPWservices.com MPW Analysis, Continued MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Construction And Mining Expansion Recommendations Safety Consultation Colleges
  8. 8. Industrial Cleaning Industry Analysis 3 Analysis Industry Analysis <ul><li>Companies, like MPW, are highly invested in one industry, some of which have been failing due to the struggling economy. </li></ul><ul><li>As many companies look to cut costs, one of the first expenses they look to minimize is their cleaning expense. </li></ul><ul><li>Many companies provide their own facilities management. </li></ul><ul><li>Most companies already have a facilities management team under contract. </li></ul>Pros Cons MPW Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Construction And Mining Expansion Recommendations Safety Consultation Colleges
  9. 9. <ul><li>MPW has seen a recent </li></ul><ul><li>decline </li></ul><ul><li>in revenues due to the struggling automotive industry. </li></ul><ul><li>They have been forced to search for </li></ul><ul><li>alternative </li></ul><ul><li>industries to penetrate. </li></ul><ul><li>The current marketing scheme is leaving MPW with </li></ul><ul><li>missed </li></ul><ul><li>opportunities for growth. </li></ul>4 Source: IBIS World Auto Body, Paint, and Glass Repair Revenue Growth The Problem Analysis The Problem MPW Analysis Industry Analysis Direct Marketing Marketing Recommendations ISSA Trade Shows Construction And Mining Expansion Recommendations Safety Consultation Colleges
  10. 10. Recommendations Marketing
  11. 11. <ul><li>MPW’s current marketing strategies rely heavily on customers contacting them. </li></ul>5 Solution: Using basic marketing concepts, we recommend that MPW attempts a more pro-active approach. Direct Marketing ISSA Trade Shows The goal of developing a new marketing strategy is to successfully penetrate new markets, while still appealing to their existing industries. Recommendation: Marketing Problem : Strategies Marketing Recommendations MPW Analysis Analysis Industry Analysis The Problem Direct Marketing ISSA Trade Shows Construction And Mining Expansion Recommendations Safety Consultation Colleges
  12. 12. <ul><li>We recommend that MPW sends out a brochure to specific companies within their new industries. </li></ul><ul><li>Advantages: </li></ul><ul><li>More personal and informative than a mass marketing letter or coupon. </li></ul><ul><li>Cost-effective way to enter new markets. </li></ul><ul><li>Levels the playing field between large and small companies. </li></ul><ul><li>Disadvantages: </li></ul><ul><li>The time it takes to develop a specific brochure. </li></ul><ul><li>Not meeting in person seems less personal. </li></ul><ul><li>The total implementation costs are estimated to be $475.00 . </li></ul>Recommendation: Direct Marketing 6 Direct Marketing Marketing Recommendations MPW Analysis Analysis Industry Analysis The Problem ISSA Trade Shows Construction And Mining Expansion Recommendations Safety Consultation Colleges
  13. 13. Brochure vs. Direct Selling <ul><li>The only cost of the brochure is actually the publishing and postage. </li></ul><ul><li>The total estimated cost for one brochure is around $15.00. </li></ul><ul><li>Estimated travel costs would be $195.80. </li></ul><ul><li>Estimated food costs are around $50.00. </li></ul><ul><li>One night at the OU Inn is about $115.00. </li></ul><ul><li>Salesman’s salary is an estimated $1,000 per week. </li></ul><ul><li>The total cost of a trip by a salesman that can be stated through a brochure is $760.80. See Appendix A </li></ul>Marketing Brochure Benchmarked against Direct Selling Direct Marketing Marketing Recommendations Bottom line: Although there are low response rates to brochures, if they encourage one sale than the marketing scheme is successful. The large amount money saved by producing brochures is an advantage, which is why it is worth the risk. While benchmarking one brochure against one direct selling trip, we estimate MPW will save $745.80 7 MPW Analysis Analysis Industry Analysis The Problem ISSA Trade Shows Construction And Mining Expansion Recommendations Safety Consultation Colleges
  14. 14. The ISSA, or the International Sanitary Supplies Association, is a global network of over 5,800 building service contractors, in-house service providers, distributors, and manufacturing companies. It provides members with trade show information, resources, safety information, and other news related to commercial cleaning services . A one time fee of $300 is all that is required for a lifetime membership. <ul><li>Benefits of Membership </li></ul><ul><li>The ISSA/INTERCLEAN is the world’s largest organizer of trade shows dedicated strictly to the cleaning industry. </li></ul><ul><li>Networking capabilities with 5,800+ members. </li></ul><ul><li>Major discounts for “green” companies. </li></ul><ul><li>Access to industry publications such as ISSA Today and other e-zines, periodicals, and newsletters. </li></ul><ul><li>Legislative and regulatory news and information library. </li></ul>8 MPW needs to find a way to get its marketing to top level executives in order to get cleaning contracts. Google.com Recommendation: Membership to ISSA Marketing Recommendations ISSA (ISSA.com, 2009) MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Trade Shows Construction And Mining Expansion Recommendations Safety Consultation Colleges
  15. 15. Cost- Benefit Analysis for Joining the ISSA Recommendation: Membership to ISSA ,Continued Benefits Costs <ul><li>Great networking opportunity. </li></ul><ul><li>Chance to promote MPW’s products to a large variety of potential customers. </li></ul><ul><li>Chance to see what competition in the same industry is doing compared to MPW. </li></ul><ul><li>Potential to make contracts with companies that are present at the trade show. </li></ul><ul><li>Initial $ 300 fee to join and </li></ul><ul><li>become a lifetime member. </li></ul><ul><li>Trade show fees . </li></ul><ul><ul><li>$1,000 – The cost of the event (seminars, reception, food—the package). </li></ul></ul><ul><ul><li>$ 900 – Convention hotel with taxes and tips ($300/night x 3). </li></ul></ul><ul><ul><li>$ 800 – Airfare and local transportation . </li></ul></ul><ul><ul><li>$ 300 – Miscellaneous . </li></ul></ul><ul><ul><li>$1,000 – One week’s salary for the attendee. </li></ul></ul><ul><li>Cost of brochures and handouts. Estimated $200 . </li></ul>9 Marketing Recommendations ISSA MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Trade Shows Construction And Mining Expansion Recommendations Safety Consultation Colleges
  16. 16. <ul><li>Trade Shows </li></ul><ul><li>A quick and inexpensive way to promote MPW is to go to trade shows sponsored by the ISSA. MPW will be able to promote itself through multiple shows in major markets and other channels. </li></ul>10 <ul><li>Network with Mid-Level Management </li></ul><ul><li>Trade shows offer a great opportunity to network with mid-level management and representatives of potential customers. </li></ul><ul><li>Not only can you network with customers through ISSA, you can develop a working relationship with other companies in similar fields, creating a strategic support group. </li></ul>ISSA as a Gateway After establishing a rapport with management from patron companies MPW will no longer rely on the ISSA. MPW’s representatives must make it a priority to ascend the networks of these companies and develop a working relationship with top level executives. Google.com Recommendation: Membership to ISSA ,Continued Marketing Recommendations ISSA Bottom Line: By joining the ISSA, MPW can increase their brand within the industry opening the doors for new business ventures and customers. MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Trade Shows Construction And Mining Expansion Recommendations Safety Consultation Colleges
  17. 17. Why Go Back To Trade Shows? The Answer is …. The one thing that hasn’t changed in the business world is the fact that people buy from people. Trade shows, conventions, conferences and other events bring together buyers with goals and needs, and sellers with products and services. This type of face-to-face contact is more important than ever in today’s business environment, where most products and services are commonly perceived as commodities. For many attendees, a trade show or event is the only time they will have a face-to-face contact with a vendor in the next 12 months. ( O'Conor, J., 2008) Trade shows are one of the most efficient and effective ways to interact and engage with qualified prospects and vendors all in one location. After a quick conversation, demonstration, or presentation, the buyer leaves the exhibit with an impression of the seller’s company, its capabilities and competitive advantage—all influencing his or her buying decisions. And for the exhibitor, he or she can meet with 6-8 qualified prospects an hour while working the show floor. (Editor, 2007) Over three days, one exhibitor can potentially meet face-to-face with an average of 125 pre-qualified leads . It would take months of phone prospecting and meetings to achieve these results back in the office. Not only does the marketing department benefit, but the sales department is also a huge benefactor. (Editor, 2007) Google.com Recommendation: Trade Shows 11 Marketing Recommendations Trade Shows MPW Analysis Analysis Industry Analysis The Problem Direct Marketing ISSA Construction And Mining Expansion Recommendations Safety Consultation Colleges
  18. 18. Ways to be Successful at Trade Shows The key to success in trade shows and events, as with any sales or marketing plan, starts with clear, measurable goals and focused objectives. They must be timely, meaningful and quantifiable, so they can be measured. Your team must understand why you are exhibiting, who your target audience is, what central message you want to convey, and what you want to take away from the show. (O'Conor, J., 2008) Define the skills needed in the booth before staffing it. Assess the duties and all of the time required, not just the show hours. Also, have a decision-maker in the booth at all times. Interview applicants for the job who are attending the event. At a trade show, the staff represents the entire company. Make sure display is clear and accurate in your booth so your client can easily identify your company and what your company is selling. Focused and creative approach to attracting attendees to make sure your booth is visited during the trade show. (O'Conor, J., 2008) Google.com Google.com Recommendation: Trade Shows, Continued 12 Marketing Recommendations Trade Shows MPW Analysis Analysis Industry Analysis The Problem Direct Marketing ISSA Construction And Mining Expansion Recommendations Safety Consultation Colleges
  19. 19. UPCOMING TRADE SHOWS Buildings NY, 2009 June 16-17, 2009 Venue: Jacob K. Javits Convention Center Organizers: Reed Exhibitions Companies   Telephone +44 20 8271 2134 Fax +44 20 8910 7823 (ISSA.com, 2009) ISSA/ Interclean North America June 6-9, 2009 Venue: McCormick Place Organizers : ISSA Telephone +1 (847) 982-0800 Fax +1 (847) 982-1012 (ISSA.com, 2009) ISSA INTERCLEAN LATIN AMERICA 2010 March 2010 Venue: Centro Banamex  Telephone +52 (55) 5268 2000  Fax +52 (55) 5268 2004 Organizers : ISSA Telephone +1 (847) 982-0800 Fax +1 (847) 982-1012 (ISSA.com, 2009) Since Large corporations are outsourcing their plants to Mexico for cheaper production cost, MPW loses the opportunity to clean those plants. To adapt to outsourcing, MPW can promote their company in Mexico in order to capitalize on the expanding market. Recommendation: Trade Shows, Continued 13 Marketing Recommendations Trade Shows MPW Analysis Analysis Industry Analysis The Problem Direct Marketing ISSA Construction And Mining Expansion Recommendations Safety Consultation Colleges
  20. 20. Recommendation Expansion into New Markets
  21. 21. <ul><li>Problem: </li></ul><ul><li>Currently, MPW’s leading industry is declining, forcing them search for new markets. </li></ul>14 Solution: After detailed research, we recommend that MPW penetrates growing markets that are less affected by the struggling economy. The goal of new market penetration, is to diversify MPW’s client base making them less dependent on the automotive industry. Construction Safety Consultation Universities Equipment Strategies Expansion into New Markets Expansion Recommendations MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Construction And Mining Safety Consultation Colleges
  22. 22. The construction and mining equipment division of the company is one of the largest manufacturers of construction, mining, and utility equipment in the world . With the increase in demand for iron ore, this gives the opportunity to extend its products and services to companies operating in this market and benefit from the rising demand for iron ore (Datamonitor, Komatsu, Ltd., 2009). Manufacturing Plants Manufacturing Plants Manufacturing Plants is one of the leading global manufacturers of agricultural tractors. It has leading positions in hay and forage equipment; and specialty harvesting equipment. In construction equipment, the company holds a leading position in backhoe loaders and skid steer loaders in North America, and crawler excavators in Western Europe (Datamonitor, Global CNH N.V, 2009). ‘ s strong market position increases the bargaining leverage of the company and its access to a variety of end markets provides it with increased cross selling opportunities. They have also has made strategic acquisitions in the heavy equipment industry such as joint ventures and expansions (Datamonitor, 2009). Recommendation: Construction and Mining Equipment 15 Construction And Mining Expansion Recommendations (Caterpillar Worldwide Locations, 2009) ( Worldwide North America, 2009) (Komatsu in North America, 2009) MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Safety Consultation Colleges
  23. 23. Strengths and Weaknesses The heavy duty equipment industry will have a sudden decline until 2010 The growth rate of the industry will drop from 7.2 percent to 5.7 percent (Datamonitor, 2009). <ul><li>This will bring MPW additional revenue. If MPW cleans one time a year in each facility, they will earn and additional </li></ul><ul><ul><li>$41,300,000 – $83,000,000 </li></ul></ul><ul><li>MPW Will be able to utilize their existing equipment. In </li></ul><ul><li>2011, </li></ul><ul><li>the heavy duty equipment industry will have steadier growth rates. Annual global demand for iron ore is forecasted to </li></ul><ul><li>increase, </li></ul><ul><li>increasing demand for mining equipment (Datamonitor, Komatsu, Ltd., 2009). </li></ul>Recommendation: Construction and Mining Equipment, Continued Strengths Weaknesses 16 Construction And Mining Expansion Recommendations Total 83 41,500,000 83,000,000 Name of Company Number of Facilities Price of Cleaning Revenue 5 500,000 – 1,000,000 2,500,000 5,000,000 6 500,000 – 1,000,000 3,000,000 6,000,000 72 500,000 – 1,000,000 36,000,000 72,000,000 MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Safety Consultation Colleges
  24. 24. 17 <ul><li>Promote Success in Automobile Industry </li></ul><ul><li>Considering MPW’s success with the automobile industry’s paint shops, this would be a good form of advertising for MPW. Illustrating this to the equipment manufacturing industry will give MPW an advantage. </li></ul><ul><li>Relocating to Manufacturing Sites </li></ul><ul><li>MPW does not have locations in the following states: Michigan, Illinois, Tennessee, Kentucky, Florida, South Carolina. Although MPW has locations in neighboring states, the possibility of moving to new locations is still there. </li></ul><ul><li>Contact C0mpanies </li></ul><ul><li>MPW will need to create a working relationship with these manufacturing companies. By using our suggested marketing tactics, such as sending them our brochure, to reach the client and let them know about MPW’s services. </li></ul>Recommendation: Construction and Mining Equipment, Continued Construction And Mining Expansion Recommendations Bottom Line: By reaching out to the heavy duty equipment manufacturing industry , it will bring MPW additional revenue without the cost of developing new equipment. MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Safety Consultation Colleges
  25. 25. <ul><li>The top 10 safety consultation companies in 2005 had an average revenue of $20.4 million. (Hansen, 2007) </li></ul><ul><li>With safety regulations getting stricter and citations getting increasingly expensive companies are turning to Safety Professionals more than ever. </li></ul><ul><li>Although the economy may be in a recession, companies still have to keep to the safety standards that are set forth by OSHA . </li></ul><ul><li>(Occupation Safety and Health Administration, 2009) </li></ul>18 Google.com We recommend that MPW and Safety Resources Company of Ohio set up a working relationship to further increase MPW’s revenue and to branch off into very profitable area’s. Recommendation: Safety Consulting Expansion Recommendations Safety Consultation MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Construction And Mining Colleges
  26. 26. Safety Resources Company of Ohio 19 <ul><li>Main Office in Canton, Ohio </li></ul><ul><li>Works with MPW clients currently </li></ul><ul><li>Firm foundation in the Safety Industry </li></ul>&quot;Asking us to overlook a simple safety hazard is like asking us to compromise our entire attitude towards the value of your life.&quot; -Cameron Speck CEO With a merger or partnership with a well-established safety consultation firm, there will be minimal financial risk for MPW. Recommendation: Safety Consulting Continued Expansion Recommendations Safety Consultation MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Construction And Mining Colleges
  27. 27. 20 <ul><li>Network with SRCO </li></ul><ul><li>Word-of-mouth is one of the best ways for companies to network their business, and a partnership with a well-established company such as SRCO will help that. </li></ul><ul><li>SRCO combines with MPW </li></ul><ul><li>After establishing a good working relationship with Safety Resources we recommend that MPW looks in to either buying or merging with Safety Resources so that MPW can branch off into the Safety Consultation Industry. </li></ul><ul><li>Utilize SRCO Resources </li></ul><ul><li>Safety Resources is a top-notch safety consulting firm that works to stay up to date on the current safety issues, this is important because SRCO will have a staff of up to date employees and safety equipment. </li></ul><ul><li>Partnering with SRCO </li></ul><ul><li>We recommend that MPW partners with SRCO and network with each other to maximize each companies revenue and to use each others resources to grow each company. </li></ul>Recommendation: Safety Consulting Continued Expansion Recommendations Safety Consultation Bottom Line: By implementing a working relationship with Safety Resources, MPW will be able to grow as a company financial and further develop their reputation of high safety standards. MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Construction And Mining Colleges
  28. 28. Colleges and universities are constantly constructing new facilities and renovating out-of-date ones. Developing long-term relationships with large universities will greatly benefit MPW. Not only will universities have a consistent need for MPW’s services, but universities are one of the few industries not to be greatly affected by the economy. Enrollment continues to increase, calling for more facilities. In 2006, the University of Georgia began a $57 million building refurbishment plan. The university wanted to renovate and modernize buildings constructed in the early 20 th century . A major problem faced by the University of Georgia was preserving the fragile foundations and surroundings of these old facilities. 21 UGA’s Payne Hall, part of $57 million project Image: Google.com Ohio Enrollment and Retention (Ohio Board of Regents, 2008) Recommendation: University Renovations and Construction Expansion Recommendations Colleges (Quigley, 2006) MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Construction And Mining Safety Consultation
  29. 29. Ohio alone , has 132 colleges and universities. Eleven of those schools currently have 13,000 or more students, with enrollment increasing annually. Nine of those eleven colleges were established over 99 years ago. Such old facilities and escalating enrollment requires regular renovations. Expansion Recommendations Colleges Recommendation: University Renovations and Construction 22 Information on 11 Largest Universities in Ohio School Enrollment Est. Renovation Expenses University of Akron 25,942 1870 $18,616,217 Bowling Green State University 18,989 1910 $21,927,532 University of Cincinnati 36,415 1819 $36,842,176 Cleveland State University 15,664 1964 $15,805,986 Kent State University 34,056 1910 $20,625,487 Miami University 17,161 1809 $17,597,425 Ohio State University 59,091 1870 $83,296,976 Ohio University 20,7437 1804 $24,110,064 University of Toledo 20,775 1872 $19,506,318 Wright State University 15,985 1965 $13,835,280 Youngstown State University 13,157 1908 $13,749,067 Total Renovation Expenses for 11 Largest Ohio Colleges $285,912,528 MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Construction And Mining Safety Consultation
  30. 30. New Ohio University Baker Center, Cost : over $40 million. Image: Google.com University of Akron’s new football stadium Cost Estimate: over $60 million. Image: Google.com Expansion Recommendations Colleges Recommendation: University Renovations and Construction 23 MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Construction And Mining Safety Consultation
  31. 31. Benefits of University Affiliation <ul><li>Short -Term </li></ul><ul><li>High demand for MPW cleaning due to competitive advantage in non-invasive technologies. </li></ul><ul><li>Multiple million dollar projects will be immediately acquired within relatively close proximity to MPW locations. </li></ul><ul><li>Due to a high volume of colleges per state, MPW can be selective about which universities they affiliate with. </li></ul><ul><li>Costs of University Affiliation </li></ul><ul><li>Development of marketing campaign directed at universities. </li></ul><ul><li>Implementation and allocation of resources and equipment to on-site locations. </li></ul><ul><li>Long -Term </li></ul><ul><li>Long-term relationships with universities will provide consistent work for years to come. </li></ul><ul><li>Satisfactory jobs on main campuses may lead to additional side jobs at university branches. </li></ul>Google.com Expansion Recommendations Colleges Recommendation: University Renovations and Construction 24 Bottom Line: With constant college construction and renovation, MPW can capitalize on the need for deep cleanings in order to incrementally increase their revenue . MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Construction And Mining Safety Consultation
  32. 32. 25 Conclusion <ul><li>Through strenuous research our team, Team 1H, has come up with recommendations that will be helpful in assisting MPW Industrial Services grow not only financially, but as a company. After evaluating many different options and strategies that could benefit MPW, we have developed a compilation of recommendations that will be most valuable to MPW: </li></ul><ul><li>Marketing </li></ul><ul><li>Direct Marketing </li></ul><ul><li>ISSA </li></ul><ul><li>Trade Shows </li></ul><ul><li>New Market Expansion </li></ul><ul><li>Construction and Mining Equipment </li></ul><ul><li>Safety Consultation </li></ul><ul><li>University Renovation and Construction </li></ul><ul><li>With the marketing aspect of our recommendations we have concluded that MPW will be able to increase networking with both potential clients and similar companies. An ISSA membership will allow easy networking capabilities and a link to trade shows in major markets. The market expansion segment of our recommendations will assist MPW in expanding their business in markets that are profitable and have a steady future outlook. MPW is already highly competent and respected within the safety of the industry. Using this knowledge , MPW can develop a mutually profitable working relationship with SRCO. MPW can also use their skills to expand into the deep cleaning of construction and mining equipment, and the cleaning associated with college construction and renovations. MPW’s competitive advantages will make them a highly sought after commodity within these industries. </li></ul><ul><li>MPW’s competitive advantages combined with its vast knowledge of the industry puts the company in a phenomenal position to expand their organization for years to come. The recommendations provided in this report will not only help MPW maintain their status as a top provider of industrial cleaning, but will propel the company into future growth. </li></ul>
  33. 33. References 26
  34. 34. References 26
  35. 35. 27 Appendix A Figuring the costs of direct sales and the brochure Travel costs: (miles traveled/MPG)(avg. gas price) +miles(standard miles rate surcharge) (169.5/25)(1.94)+169.5(.50)=195.80 Salesman salary: (avg. weekly salary/5)=(_____)(number of days worked) (1000/5)=(200)(2)=400 Food expenses: (Meal cost)(expected amount of meals) (10)(5)=50 Hotel costs: 1 night at OU Inn=115 Total direct sales cost= 195.80+400+50+115=760.80 Brochure: (estimated cost per brochure)(number of brochures)+(cost of brochure designer) (15)(15)+250=475
  36. 36. 28 Appendix B

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