Applied Marketing - DHWANI SHAH - RACHAITA VYAS
Product• A laundry service + shoe repair service• a convenient, affordable way to get their garments cleaned and expensive shoes repaired.• We have recognized a need for busy business people and the like to have a convenient and affordable way to get their footwear cleaned and repaired
Competitors• DIRECT:Laundry service companiesCobblers• INDIRECTShoe selling companies
UNIQUENESS• Adding a pickup and delivery service in the least possible time.• Tie ups with hotels and restaurants for the guests and staff.TARGET SEGMENT:• Businessman• Restaurants, hotels
The Shoe Laundry, Shoe Care Process:Dismantle the shoeWash it thoroughlyInspect the shoeRepair the shoeAssemble the shoeLook at the shoe and think, "would I wear it?“Deliver the shoe back to the customer
COMPANYSTRENGTHS:• Competent staff support to guarantee the customer quick and convenient service as a time-saver.• Additional offers to the regular customers like:-a customer’s seventh receipt would provide a chance to haveclothing dry-cleaned or shoes repaired for free-Referral Programs : Refer a customer to our business and receive a10% discount. This makes it valuable and cost effective.-A basic website will be launched in order to promote our services.-E-mail reminders to reinforce customer satisfaction, newsletters, e-mail marketing, specials, or seasonal offers can further keepcustomers interested in our services.
WEAKNESS:• Less experienced than rival companies.• Because of newness to the market, and to create brand awareness, a limited marketing budget is a requirement.• Business start-up necessitates debt.
Vision and MissionVision:• Making available the shoe laundry facility to one and all and to make footwear hygiene and shoe care a part of every individual’s lifestyle.Mission:• Pick up, Mend, Deliver – Your shoes, from and to your doorstep, thereby enriching your daily footwear wearing experience.
CUSTOMERS• MARKET SEGMENT- businessman, hotel staff and guests.• INFORMATION- newspaper ads, word of mouth
COMPETITORS• Laundry services• Cobblers- as they repair and clean the shoes• Shoe selling shops- branded companies give provision of repairing the shoes
Marketing Strategy Segmenting:• Sex: Both males and Females.• Age: All age groups• Occupation: Business men and Elite Class people• Area: Urban
Target Group:• Elite Class People• Busy Businessmen
Positioning statement:• For Elite Class people and business men who value their shoes, Orchid Shoe laundry offers a shoe laundry with pick up and drop service. Unlike the other companies in town, we focus on shoes mainly and our services differ from brand to brand and even the material of the shoe. With this innovative idea we plan to help the customers according to their needs and specifications.
Marketing MixProduct:• A laundry service + shoe repair service• a convenient, affordable way to get their garments cleaned and expensive shoes repaired.• We have recognized a need for busy business people and the like to have a convenient and affordable way to get their footwear cleaned and repaired
Price:• Price is a USP, but only a minor one and cannot be our only consideration.• An offer of a 15% to 20% discount to clients who sign a one-year contract is the most affordable offer to consider on an order.• Price - is important in this market because the customer purchasing decisions start here. Our price is workable, and with additional USPs may have the distinction to garner the profit margin we desire.• High-low pricing• Method of pricing for an organization where the goods or services offered by the organization are regularly priced higher than competitors, but through promotions, advertisements, and or coupons, lower prices are offered on key items. The lower promotional prices are designed to bring customers to the organization where the customer is offered the promotional product as well as the regular higher priced products
Promotion:• ads in local papers• putting coupons in the papers• word of mouth• seasonal offers
Place• Direct Shop front• Online orders – Pick up and Drop service
Porter’s Five Force Model1. Threat of New Entrants:• Threat of new entrants: low• Barriers to entry: low• Investment cost: high• Product differentiation• Absence of strong brands and customer loyalty
2. Bargaining power of suppliers:• Numbers of firms supplying the resources: Less• Cost of switching to alternate sources: high cause a significant part of the production process might have to be changed.• Bargaining power of suppliers: High
3. Bargaining power of customers:• Low• Size of order may depend and so will the price• Number of firms: Less• Number of customers is increasing cause of the growing awareness
4. Substitute products:• Degree of competitive rivalry: Low as number of competitors are low• Power of buyers is high• No exit barriers so firms can easily exit this reducing the competition
Contingency Planning• Possible Risks:1.Increased number of competitors2.Preference towards competitor’s products Solutions:1. Alter pricing strategy2. Increased promotion through campaigns3. Advertising advantages of shoe hygiene4. Facilitate accessibility and availability