FINAL Marketing plan

Market Analysis and Marketing Plan
HSG, Inc.
“Professional Curtain Wall Maintenance”
Marketing 304
Introduction to Marketing
Professor Deborah Heisley
Monday/Wednesday
Group: 12:30-09
December 9, 2013
Presented By:
Jaddis Hy, Ryan Castro, Crystal Cortez, Leonel Orellana
and Margaret Kuo

Executive Summary
HSG Inc. (“HSG”) is a multi-million dollar window cleaning company that wants to
expand its business endeavors. In order to do this, it needs to understand its own company,
customers, and window cleaning industry. The company is currently estimated to be worth $8
million and hopes to grow to $16 million, through organic growth and acquisition of new
branches, by 2018. With its customers being primarily property managers, HSG offers various
services to maintain the exterior of low-rise, mid-rise, and high-rise buildings. The window
cleaning industry has numerous competitors, but HSG’s main competitors are MPM Building
Services Inc., DMS Facility Services, Inc., and South Shore Building Services. We recommend
that HSG consider the current social trend of social media as it revolutionized how companies
interact with consumers. We also recommend that HSG monitor environmental trends that could
affect the industry, such as emerging technology, that may revolutionize the industry by
eliminating the human element with the use of machines.
We also recommend that HSG segments its customers, position itself in the industry, and
set market and service goals. HSG positions itself on safety and quality that is used as a form of
differentiation and will help the company segment and create value to customers as a point of
difference. In order to achieve these objectives, we suggest that HSG strongly engage in
advertising. HSG mainly advertises through trade shows, but there are more efficient ways to
advertise a company. Before these different avenues can be utilized, HSG will need to update its
website, flyers, advertising strategies, and hire a full time marketing department to increase
brand awareness and create new techniques to benefit the company in the long run.
The marketing mix is an important factor for HSG. HSG should consider adding new
services like window tinting to accrue additional revenue and differentiate themselves from
competitors. A customer-oriented pricing is the best approach for the company to also maximize

its profits. The main recommendation regarding channels of distribution is the use of social
media. Social media is an inexpensive way for companies to advertise their services and
communicate with consumers. HSG should take advantage of the social media trend because it is
simple to operate and allows the company to obtain instant feedback from customers. By doing
so, it can attract prospective customers while simultaneously increasing consumer awareness.
With this implemented plan, HSG can transition into its desired branch in San Diego, with the
help of its newly segmented market and creating brand awareness to the newly entered market.
There are various risks associated with implementing this plan. For instance, social media
is used primarily by younger generations, which risks alienating the older generations. This issue
can be resolved by holding seminars for older target markets, while encouraging them to become
users of social media. Another risk involves company expansion, which can spread HSG’s
resources too thin and negatively affect its existing locations. The best solutions to counter these
risks include: encouraging older target markets to use social media and ensuring that HSG has
sufficient amount of resources to expand to targeted markets sustainably.
The predominant focus for HSG, in this marketing plan, is to advertise through the use of
social media in order to expand. If HSG prioritizes company awareness, gains additional clients
by utilizing social media, and successfully expands its company to San Diego, it will become a
profitable company in the long run. We believe our recommendations will assist HSG in
fulfilling its business goal of becoming a $16 million company, while experiencing sustainable
growth for the foreseeable future.

Table of Contents
Introduction...................................................................................................................................................1
HSG Company Analysis...............................................................................................................................2
Industry Analysis ..........................................................................................................................................3
Customer Analysis........................................................................................................................................6
Regulatory Environment.............................................................................................................................10
Social Environment.....................................................................................................................................10
Technology .................................................................................................................................................11
Demographics .............................................................................................................................................15
Key Publics.................................................................................................................................................15
SWOT Analysis ..........................................................................................................................................16
Market Segmentation..................................................................................................................................17
Target Markets............................................................................................................................................18
Market Product Grid and Growth Strategy.................................................................................................19
Value Proposition........................................................................................................................................20
Positioning Strategy....................................................................................................................................21
Marketing and Product Goals .....................................................................................................................21
Product........................................................................................................................................................23
Pricing.........................................................................................................................................................26
Integrated Marketing Communications ......................................................................................................29
Budget and Financials.................................................................................................................................32
Implementation Schedule............................................................................................................................33
Monitoring and Evaluation .........................................................................................................................34
Risks and Threats........................................................................................................................................34
Conclusion ..................................................................................................................................................35
References...................................................................................................................................................38
Appendix.....................................................................................................................................................39
Appendix A: Maslow’s Hierarchy of Needs...........................................................................................39
Appendix B: Economic Environment.....................................................................................................40
Appendix C: Injury Chart .......................................................................................................................41
Appendix D: IMC Mock Up...................................................................................................................41

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Appendix E: Breakeven Analysis ...........................................................................................................42
Research Instrument................................................................................................................................43
Tables and Figures......................................................................................................................................46
Table 1: Competitive Analysis................................................................................................................46
Table 2: Industry Structure Map.............................................................................................................47
Table 3: SWOT Analysis........................................................................................................................48
Table 5: Positioning Map A....................................................................................................................50
Table 6: Positioning Map B ....................................................................................................................51

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Introduction
The purpose of this marketing plan is to aid HSG, Inc. by determining whether or not
their goals are attainable, and to present an efficient strategy to achieve said goals. HSG is a
window cleaning firm whose primary emphasis is on high rise buildings, but also offers
numerous corresponding products and services. The firm’s products focus on exterior building
maintenance and restoration services. The goals of this firm are to become a $10 million
company by 2014, and obtain a new branch in Las Vegas, San Diego, Sacramento and/or Seattle
by 2016. With this marketing plan, we will examine whether or not the firm should acquire new
branches and where, and help them determine if they can reach their goal of becoming a $10
million company by the following year. This marketing plan is to be presented to Professor
Heisley in order to aid us in our academic careers and provide deeper understanding of
marketing and business.

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HSG Company Analysis
HSG, Inc. (HSG) is a professional curtain wall maintenance company that focuses on
cleaning the exterior of buildings with proficient safety. The history of HSG began on January 1,
1980, when Hector Garcia purchased the small company for $24,000 from the previous owner,
Morris. After acquiring the business, Mr. Garcia was able to double the company in 8 months
and continue its growth in the following four years. Mr. Garcia transformed his small company
into a professional window cleaning service that produces $8.2 million in annual revenue. HSG’s
mission statement explains its goal of being the ultimate window cleaning company. The
company provides the highest value of exterior building restoration, maintenance,
professionalism, reliability and most importantly, safety. The firm’s core values include safety,
great service, integrity, no excuses, highest value and proactive communication. HSG wants to
provide its customers with the best possible service given by a professionally trained team.
HSG’s products and services mainly focus on maintaining the outside of a building, but
also provide interior cleaning. Some of the firm’s services include: window cleaning,
demineralization, high pressure cleaning, caulking, waterproofing, restoration, installing bird
spikes, coils, nettings and parking facility maintenance. Mr. Garcia’s primary groups of
customers are proposal managers and government buildings. High-rise buildings account for
50% of HSG’s customers; structures over 18 floors. While the other 50% of customers are
composed of: 25% to buildings within 17 and 11 stories, 15% to buildings under 11 stories and
the remaining 10% consists of warehouses, parking garages, estate housing, retails malls and
large apartment complexes. Amongst the clients, only 40% them have a one year contract with
HSG and the remainder are uncontracted. Mr. Garcia attracts potential customers by hosting
complimentary parties, attending trade shows and dinners to inform them of the service HSG

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provides. His sales department consists of three full-time sales representatives along, with two
part timers who are responsible for advertisement.
HSG currently owns two operating facilities. Its main office in Los Angeles (17,000
square feet) and its second is in Orange County (4,500 square feet). Between these two offices,
HSG currently has 130 employees. During the hiring process, Mr. Garcia prefers employing
workers with little to no experience, believing that it is easier to train a “fresh mind” rather than
resetting the habits of former window cleaning employees. This is one of the factors which have
helped make HSG successful for the past 33 years. The company’s strengths include its highly
experienced staff, a $10 million insurance coverage, an impressive reputation in high market
share, owning the most Denka Lifts out of its competitors and being the first company to be
issued a Scaffold, Inspection and Testing License in the state of California. Weaknesses of the
company include its lack of locations and minimal services provided in comparison to its
competitors. Although HSG’s services are priced higher than it competitors’, its quality and
proficient service satisfies its customers.
Industry Analysis
HSG’s major competitors are: MPM Building Services Inc. (MPM), DMS Facility
Services, Inc. (DMS), and South Shore Building Services (South Shore). In order to perform well
in the market, the competitors must create and value their business strategies. The competitors
have similar strategic characteristics, all of which have service as one of their industry drivers.
MPM is based in Woodland Hills, which serves Los Angeles and San Diego counties.
The vision statement of MPM is creating higher quality services from managers and building
owners in Southern California. Its business strategies are mainly focused on the following:

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understanding the customer needs by facilitating the services needed, also providing safety and
training new employees in order to have efficient results. MPM provides orientations and hands
on training in order to produce safety conscious employees. The mandatory training is beneficial
to the long term value of the company since it produces a higher quality service. The company
demonstrates its strengths in the variety of services such as: waterproofing, concrete restoration,
metal restoration, window cleaning and exterior painting. MPM also demonstrates strong safety
values since it is in compliance with the Occupational Safety and Health Administration (OSHA)
and Building Owners and Managers Association (BOMA).
DMS is another top competitor in the industry. The company has been servicing
corporate and commercial office spaces in the Los Angeles, Orange County and San Diego
counties since 1967. The company’s mission statement is as follows, “Our clients recognize the
value of their assets and have come to depend on our quality service to maintain, preserve and
enhance their built environments.” Its value proposition includes fast responses and extremely
efficient execution. One of the main strengths of DMS is its ability to provide sustainable
services while creating the value of experienced and divisional operational management teams,
which enhances the overall business. Furthermore, DMS’s process strategies are effectively
communicated through value statements, for example the Six Sigma service creates a
reputational strategic benefit to the consumer that limits the number of errors that occur. Process
strategies, such as the Six Sigma services, create a definite advantage demonstrating credible
information.
The final competitor is the Anaheim based South Shore, which has served buildings in
Santa Fe County since 1979. The company mission is, “South Shore Protects the Environment...
and You!” The company also follows strict guidelines in order to perform with compliance

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codes. South Shore’s mission objective is to make the consumer’s needs the number one priority,
which demonstrates the company’s goal to create brand equity. The value of customer
communication is distributed throughout the company’s website, including referrals; referrals
which are considered highly profitable since the services provided are to well-known buildings,
such as The Staples Center. In order to get a better understanding of the competitive analysis,
please refer to Table 1.
Insert Table 1: Competitive Analysis
The major factor driving the window cleaning industry is service quality. Competitors try
to differentiate in the number of services they offer and what they believe is the most important
service in the industry. HSG focuses on the best value with an emphasis on safety, while DSM
concentrates its efforts on the best customer experience and service. Other competitors
emphasize their years of experience (MPM) or sustainability (South Shore). The competitors
offer the same window cleaning products, but each has its own unique mission statements.
Another way firms differentiate themselves is by the number of services that they offer. For
instance, HSG focuses entirely on cleaning the exterior of buildings, while DSM offers janitorial
services along with exterior cleaning.
The significant barriers to entry in this industry would be the price of the equipment and
insurance. All the large competitors in this industry are capable of cleaning mid-rise and high-
rise buildings, but in order to do this the technicians require swing stages or lifts, as well as the
proper training to use the equipment. According to Central Wisconsin Window Cleaning
(CWWC), lifts can cost a minimum $126,000, preventing new firms from entering the market.
When it comes to insurance, HSG leads in coverage with its $10 million liability insurance
policy. However, MPM has the same insurance coverage for its firm and other firms have begun

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to follow suit as well. If a higher insurance policy is not an adequate deterrent for new firms then
perhaps the price of equipment will serve as a barrier. There are limited suppliers of window
cleaning equipment in this industry, which is another barrier of entry to consider. Due to that, the
number of substitutes regarding different suppliers is slim.
According to American Fact Finder, there were 4,911 building maintenance firms in
California in 2011, although this number is skewed since it includes janitorial services and not
just exterior cleaning. On a larger scale there were 52,961 firms in the industry throughout the
United States in 2011. This shows that there are a handful of firms already within this industry;
however the majority of firms had only one to four employees. This industry is fairly
competitive, with many firms focusing on smaller businesses and the larger firms focusing on
larger businesses (High-rise buildings). Please refer to Table 2. It appears that the industry is
experiencing stable growth according to the data from 2007 to 2011.
Insert Table 2: Industry Structure Map
Customer Analysis
HSG customers are mainly property managers of low-rise buildings, mid-rise buildings,
and high-rise buildings. Customers want and need cleaning products/services that HSG provides
in order to enhance the presentation of their company’s building. HSG’s consumer involvement,
or the “...personal, social, and economic significance of the purchase to the consumer...” (Kerrin
83) leans more towards the personal and social aspects rather than economic. Due to the target
consumer’s high involvement, it can be inferred that services purchased through HSG are meant
to reflect on the firm’s social image. Clean and maintained windows indicate that owners are
conscientious and care about the appearance of their workplace. A customer’s properly

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maintained building will attract more clients than a dilapidated building. HSG’s cleaning
services and products act as a long term investment for companies. Properly maintained windows
will have a longer lifespan than unattended windows. Environmental contaminants such as
oxidation, acid rain and hard water can damage windows over an extended period of time.
Cleaning windows will remove potentially damaging debris that can ruin glass integrity. This
drastically reduces the need for extensive glass restoration, which saves customers a significant
amount of money in the long run. Pristine windows will generate a sense of pride for the firm,
while also creating an inviting atmosphere for any potential consumers of said firm.
We believe that HSG customers want their businesses to be clean and presentable for
their own consumers and employees. Since not all businesses can afford the time to clean their
own buildings, they hire another firm to do the work for them. In some cases, having the exterior
of the building remain pristine is a crucial necessity. Many businesses employ their own
janitorial department for the interior of their buildings, but they are often left short-handed in
maintaining the exterior of the complex.
With the struggling U.S. economy, Hector Garcia mentioned that businesses are reducing
the amount of times that they get their windows serviced. This demonstrates how the consumers
still need their buildings to be clean, but they want it at a more affordable price. According to
HSG, “...in today's environment being the best in quality just isn’t good enough...you also have
to provide excellent customer service and cost effective choices for your customers." It is clear
that HSG understands the wants of its consumers. The consumers want an affordable and
effective product; essentially giving them the best quality at a modest price.
If one were to follow Maslow’s Hierarchy of Needs, the need for safety is an important
need that consumers expect when the exterior of their buildings are being cleaned because it is

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imperative to ensure the safety of both the cleaners and the public. The social benefits of keeping
buildings clean can enhance the surrounding community. Consumers also want their offices to be
clean in order to maintain their prestige and respect amongst their competitors and customers. If
the building is not clean then customers will not think highly of the business. Consumers weigh
the pros and cons of window cleaning and understand that it is necessary in order to attract
preferable clients.
The benefits provided do not only include the tangible services, but the mental and social
processes that come before and after these actions. Personal needs such as good name, status and
prestige would fulfill a motivational need in order to continue a good reputation for the overall
company. Fortunately, HSG contains a department that devotes their research to scheduling
needs. In order for the company to maintain its prestigious reputation and excellent customer
service, the level must continue to grow for future and potential customers. In order to provide
excellent service, HSG shares endless knowledge with employees and customers to ensure they
are informed about industry practices, codes and regulations; thus creating an efficient system.
The beneficial aspects of maintaining proficient customer service is getting involved with socio-
cultural motivations, such as connectedness and worthiness. In order to have connectedness,
industries must be aware of the environmental changes and adapt to economic growth. Doing so
will help maintain a fast and relatively growing industry. Worthiness is managing the
prestigeness of companies and staying involved with customers and potentials clients. Ensuring
that information on web pages are accessible is important in order to create relationships with
prospective clients. Prospective customers“...engage in extensive information research, consider
many product attributes and brands, form attitudes, and participate in word-of-mouth
communication.”(Kerrin 83). Although most consumers are moderately knowledgeable about the

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industry, updated information will be beneficial to customers of novice experience. When
referring to the needs and motivations of the consumers, “Maslow’s Hierarchy of Needs” is a
tool to utilize in order to address potential needs. Refer to Appendix C. When a need is satisfied,
consumers will proceed to satisfying other needs.
Insert Appendix A: Maslow’s Hierarchy of Needs
Economic Environment
As of 2008 there has been a steady increase in the business niche of HSG, and its
competitors, during the subsequent years (NAICS #561720). Refer to Appendix A. Even though
janitorial services are a broad genre, this chart shows that the industry is experiencing growth at
a stable rate. A positive non-fluctuating growth rate indicates that companies, such as HSG, will
flourish in future years due to the consistent high demand for their services. According to its
sales revenue, HSG has seen a positive increase in profits by 6.25% in 2011, 15.6% in 2012, and
estimates a 10.8% increase in 2013. The numbers illustrate that HSG’s is economically stable
and will have a lasting impact within the industry as one of the most recognized window
cleaning companies in the United States. It has proven that it is a step ahead of the curve. For
example, HSG owns and maintains more Denka Lifts than any other company, as well as having
one of the highest liability insurance coverage amongst its competitors ($10 million). HSG
values safety and has taken the necessary steps to ensure that it will remain a dominant presence
in the window cleaning industry for the foreseeable future.
Insert Appendix B: Economic Environment

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Regulatory Environment
According to the State of California Labor Code of General Industry Safety Orders, Title
8, Articles 5, 6 and HSG Inc., window cleaning companies must comply with regulatory
protocols. Doing so will help workers safely operate swing stages on buildings above 150 feet; in
order to protect employees, consumers and public from harm. HSG was the first company to
acquire a California OSHA-issued Scaffold, Inspection and Testing License (SIT) in 1995,
allowing them to perform free safety seminars and provide advice to potential customers on roof
rigging consultations. HSG constantly educates and train client staff/employees to become more
safety conscious, which has helped shape it into an industry expert in code compliance, safety,
and practitioners. Common regulatory trends include the increase of safety protocols within
companies. In compliance with state and federal laws, it is HSG’s belief that the industry
standard of $1 million insurance policy is not sufficient enough to cover an incident that would
damage equipment, a building structure, and/or injuries to pedestrians or employees. Therefore,
it has chosen to go above and beyond by carrying a $10 million liability insurance policy that
also provides full worker’s compensation.
Social Environment
HSG, Inc. is one of the leading window cleaning firms in Southern California. Although
its main focus is on high-rise window cleaning, it also provides services such as
demineralization, high pressure cleaning, metal and curtain wall restoration, glass scratch
prevention, graffiti film, bird control and parking lot maintenance. These products and services
transcend the mundane since the jobs performed have a social impact within the immediate
community. As a society, cleanliness coincides with positive attitudes. When an individual sees

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something filthy, for example, graffiti on walls; emotions tend to be projected in a negative light.
Other examples include bird excrement, gum on walkways, and damage caused by weathering.
These problems will be reflected upon members of the community and potential clients, who
might think less of the community, firm, or institution, by association. Juxtapose, when buildings
and streets are clean, there is a sense pride within the community. Members of the community
will feel safe, and be inspired to actively take part within their neighborhood. Throughout the
metropolitan Los Angeles area, there are numerous buildings that encompass the city. If any
sanitation duties, such as window cleaning, were to be neglected, Los Angeles as a whole would
look decrepit. HSG offers products and services that are not only beneficial for the company, but
the surrounding communities as well. HSG is a cleaning company, that helps create a positive
outlook within communities.
Technology
There are several key technological factors that are and will be impacting the commercial
window cleaning industry in the near future. Mark Unger, president of Unger Enterprises, states
that the majority of building service contractors (BSCs) tends to “...outsource their window
cleaning to professional window cleaning companies due to liability and safety concerns
combined with the perceived complexity of the task at hand.”(Unger). Due to this environment,
companies such as HSG Inc. and similar firms are able to flourish economically. Unger also
believes new cleaning technology will permit building service contractors to efficiently clean
exterior windows of up to 50 feet high without any of the previous safety issues. These
technological innovations were driven by the unprecedented amount of fatal incidents that have
occurred in recent history. According to the U.S. Department of Labor’s National Census of

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Fatal Occupational Injuries, 668 fatalities were caused by slips, trips and falls while working on
high grounds in 2006. Telescopic poles have been utilized for over a quarter of a century, but
have become useless at heights that exceed 24 feet. Unger Enterprises has developed a water-fed
pole that utilizes purified water in order to replace traditional forms of cleaning windows such as
via hands, chemicals, and squeegee. This new innovation can clean up to 50 feet while
drastically saving 50 to 80 percent of the time. The Unger water-fed pole will increase
productivity in any window cleaning firm that operates within a 50 foot height range. The
innovation not only reduces the time spent, but also eliminates the use of potential harmful
chemicals and the risk of injury while replicating the same results. In short, the Unger water-fed
pole will increase profitability in a firm while reducing liability and safety concerns below 50
feet.
Another technological advancement in the window cleaning industry is produced by
NanoArc; but unlike its purified-water fed counterpart, this innovation is a chemical substance.
The substance is known as NanoArc Cerium Oxide. It coats windows with hydrophilic-protein
which causes the water to sheet down off the glass, preventing spots or streaks from forming
during the drying process. The Cerium Oxide treated window will be self-maintaining and
remain unblemished for an extended duration, due to the hydrophilic substance. Although
window cleaning firms can apply this compound for an additional fee, consumers will not
require cleaning services as often; resulting in reduced revenue for the firm.
In addition to purified water poles and chemical treatments, the window cleaning industry
is ushering in the dawn of automated cleaning. Ecovac created the Winbot, which is
approximately 4.5 pounds and holds itself up on the glass through powerful suctions. The
Winbot is then able to use “...tiny sensors to calculate the distance from the middle of the

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window frame to the edge...” and “...start from the center and run to the edge, before zigzagging
its way across [a] window(Garun).” This automated technology is still in its infancy due to
several factors that limit its commercial applications. Some of the factors include the Winbot’s
height limit at 30 feet and nonfunctional suction cups inability to attach to glass when
temperatures drop below 40 degrees Fahrenheit. Due to these restrictions, this technological
innovation will primarily be for residential use. If implemented in the industry, automated
cleaning would render the human element obsolete although this technology will be unavailable
commercially for at least another decade.
As one technological innovation shows a promising future in commercial window
cleaning, another innovation fades into oblivion. Denka Lift, a Danish company supplying its
signature lifts was unable to operate efficiently, resulting in filing for bankruptcy in the spring of
2012. This will negatively affect the firm HSG, which is the industry leader in the utilization of
Denka Lifts in the Los Angeles metropolitan area. Since Denka filed for bankruptcy, the
maintenance of HSG’s Denka Lifts will be more difficult and costly due to the fact the
manufacture is nonexistent.
Insert Appendix C: Injury Chart
Another technological advancement in the window cleaning industry is produced by
Nano Arc; but unlike its purified-water fed counterpart, this innovation is a chemical substance.
The substance is known as Nano Arc Cerium Oxide. It coats windows with hydrophilic-protein
which causes the water to sheet down off the glass, preventing spots or streaks from forming
during the drying process. The Cerium Oxide treated window will be self-maintaining and
remain unblemished for an extended duration, due to the hydrophilic substance. Although

14
window cleaning firms can apply this compound for an additional fee, consumers will not
require cleaning services as often; resulting in reduced revenue for the firm.
In addition to purified water poles and chemical treatments, the window cleaning industry
is ushering in the dawn of automated cleaning. Ecovac created the Winbot, which is
approximately 4.5 pounds and holds itself up on the glass through powerful suctions. The
Winbot is then able to use “...tiny sensors to calculate the distance from the middle of the
window frame to the edge...” and “...start from the center and run to the edge, before zigzagging
its way across [a] window (Garun).” This automated technology is still in its infancy due to
several factors that limit its commercial applications. Some of the factors include the Winbot’s
height limit at 30 feet and nonfunctional suction cups inability to attach to glass when
temperatures drop below 40 degrees Fahrenheit. Due to these restrictions, this technological
innovation will primarily be for residential use. If implemented in the industry, automated
cleaning would render the human element obsolete. Although for at least another decade, this
technology will be unavailable commercially.
As one technological innovation shows a promising future in commercial window
cleaning, another innovation fades into oblivion. Denka Lift, a Danish company supplying its
signature lifts was unable to acquire their desired net cash flow; the result led to bankruptcy in
the spring of 2012. This will negatively affect the firm HSG, which is the industry leader in the
utilization of Denka Lifts in the Los Angeles metropolitan area. Since Denka filed for
bankruptcy, the maintenance of HSG’s Denka Lifts will be more difficult and costly due to the
fact the manufacture is nonexistent.

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Demographics
There are shifting demographics that may affect the commercial window cleaning
industry. According to the Bureau of Labor Statistics, janitorial and building cleaning job
opportunities are expected to increase by 246,400 jobs from 2010 through 2020 based on the
2010 census figures. (Census) The census report also stated that the required entry level
education for the field is less than a high school education. The U.S. Census Bureau has
determined that the number of high school dropouts have dramatically decreased during the past
three decades (1980-2009). The Census Bureau has been able to determine that there are 6.2%
decrease in the total number of high school dropouts; 15.6% to 9.4% dropout rate. (Census)
Although janitorial and building cleaning opportunities are said to increase in the next decade,
the job opportunities may not have the same appeal as they did in the preceding decades due to
the fact that less individuals are dropping out from high school.
Key Publics
There are numerous publics that have had an impact on HSG. From 1988 to 1990, Mr.
Garcia joined Building Owners and Managers Association (BOMA) and International Window
Cleaning Association (IWCA). IWCA then advised Mr. Garcia to be on California Occupational
Safety and Health Administration’s (CA-OSHA) advisory committee to update window cleaning
regulations and laws. From 1990 to present, HSG has relations with BOMA, IWCA, IREM
(Institute of Real Estate Management) and IFMA (International Facility Management
Association). HSG also hosts safety seminars with OSHA and Operating Procedure Outline
Sheet (OPOS) to create awareness about common safety rules that are broken. Their other
affiliations include International Window Cleaner Certification Institute (IWCCI), Scaffold

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Industry Association (SIA), Sealant, Waterproofing & Restoration Institute (SWRI), Community
Associations Institute (CAI), Scaffold, Inspection and Testing License (SIT) and Minority
Business Enterprise (MBE). The listed affiliations have an ongoing impact on HSG and continue
to discover ways to improve the company.
SWOT Analysis
HSG has significant points of differences which sets the company aside from its
competitors; which are two major industry drivers are quality and safety. HSG has several
strengths in the industry. Their professional quality maintained great customer service and
created a memorable reputation for HSG. The operational niche with their current market and
services specializes in services and quality. The opportunities for further expansion and potential
growth would be working to grow brand equity with not only the current consumers, but the
potential client in order to create brand awareness and connectedness. Their geographical
opportunities will grow by opening new branches of the company. It will also deepen
relationships with current consumers in order to create deep pockets for future operational
growth. However, the company weaknesses are declined rates of service during the early months
of the year (January through March), which could potentially give competitors an advantage
during those months. Setting reasonable prices could be a strategy for HSG to be more of threat
to its competitors. Charging higher than average prices for services could result in loss of
customers. Certain threats that HSG can face would be the development of new technology,
ability to potentially replicate the ability of human capital and inexpensive services. Another
vital threat would be the possibility of competitors expanding into markets and developing new

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products; thus creating diversification. Refer to Table 3 the SWOT analysis, which demonstrates
various factors that can benefit and harm the potential growth of the HSG.
Insert Table 3: SWOT Analysis
Market Segmentation
The most appropriate bases for segmentation are usage occasion and geographic
segmentation. Companies that segment their markets along geographical boundaries can result in
more focused and specialized marketing approaches. Potential consumers living within the same
geographical areas exhibit similar buying patterns. In order for HSG to satisfy the consumer
needs, the company should fulfill their value to create, communicate, deliver and exchange
potential offerings. The segmentation variables included in the geographic area consists of
region, city size, and density. This is due to HSG’s main source of customers being high-rise
buildings, which usually reside in urban and metropolitan areas. In order to discover and provide
consumer needs, the specialized markets need to be prepared for segmentation. The usage
occasion will determine what specific geographic area services/products are demanded in higher
frequency. New entrants have a potential effect on the industry due to rivalry with competitors in
the existing markets causing the profitability to shift. The segmentation of grouping potential
buyers into segments will be a competitive advantage since needs will be addressed. As well as
executing the marketing mix of product, price, promotion, and place in order to effectively link
the market segmentation with said needs and benefits.

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Target Markets
HSG’s target markets are high-rise buildings, mid-rise buildings, low-rise buildings, and
smaller buildings like malls, parking garages, etc. located in the Los Angeles and Orange County
metropolitan area. The benefits that are sought in the low and mid-rise building segment are
homogeneous due to the fact that each individual firm seeks to maintain a pristine storefront with
less emphasis on a cost to maintain. Juxtaposed to the small firm segment, the benefits sought by
the large, high-rise, building segment are also homogenous since each individual firm has more
of an emphasis on the budget/costs of window maintenance rather than the service itself. The
large firm segment is also diminishing since there is a finite amount of high-rise buildings,
coupled with the fact that there is a decrease in number of said buildings being constructed
domestically. Both targets, small and large firm segments, are actionable and accessible to HSG.
Between the two segments, the most promising target market is the small firm segment due to its
exponential growth over the past decades, even though some small firms decide to rent space in
high rises. Although 50% of HSG’s customers are from high-rise buildings, the U.S. Small
Business Administration (S.B.A.) stated that small businesses have increased by 49% in the
United States since 1982. This phenomenon is caused by the fact that small business failures
have decreased, which resulted in a larger growth in this area. Therefore the market potential
should increase because HSG is located in Los Angeles; where many businesses tend to be
created. Although both target markets will generate substantial profits, it is apparent that there is
far more potential growth in the small firm segment than its larger counterpart.

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Market Product Grid and Growth Strategy
11HSG is currently in the market penetration quadrant of Ansoff’s diversification grid.
The amount of growth in clients for HSG has grown exponentially. This is due to the focus of
current market penetration, the ability for potential growth in the services and the valuable
relationships that created the foundation for potential clients and services. HSG, with its
emphasis on industry safety and quality, will not only increase brand exposure, but also grow
brand equity. HSG has already regarded as an industry leader in safety through its well-known
affiliations. HSG will be able to solidify its stance as the industry leader in safety while the
market becomes flooded with potential clients, who may not be unaware of the HSG brand. In
order to maintain quality, penetration of the current markets, relative pricing, convenience and on
time delivery and is extremely essential for potential future growth. Market penetration will
allow developed relationships in the market synergies to complete the next step for growth. HSG
is already looking to expand into other states and cities. This is why future market growth
development is an essential factor to consider since markets will be created in new geographical
areas. HSG is located on the top portion of the grid which acquires fifty percent of its profits
from high-rise buildings. Since there are many competitors within the industry, the
recommendation of using market development for the growth strategy would be most logical due
to a substantial increase in sales, without incurring high costs. To obtain a better understanding,
please refer to Table 4 the market product grid.
Insert Table 4: Market Product Grid

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Value Proposition
HSG is currently targeting high-rise buildings, which is a target market that brings in fifty
percent of their revenue and has the highest service price. HSG sets the standard for safety in this
industry; the company prides itself on safety to set itself apart from the competition. For
example, HSG’s business cards have a “fold” on it to create a different feel and look. It is more
attractive than regular business cards, thus differentiating them from companies or firms in the
industry. Having points of difference is crucial in order to set the company apart from its
competition in the industry. HSG should continue using their creativity and experience to make
them more attractive than their competitors. Through Porter’s generic strategies, if we take the
narrow scope and focused on low cost, we can attempt to gain an edge over our competitors
without spending too much capital. HSG should continue to deliver high-quality services with
proficient customer service. Their marketing department should develop new strategies to
convince potential consumers that HSG is the best choice. Allocating more resources in
advertising will increase clientele, allowing HSG to bring in more business. In order to create
value and satisfaction over goal driven industry drivers, HSG must differentiate itself from
competitors. In regards to pricing, a customer-oriented pricing approach as well as a target
pricing tactic should be used when creating prices for its services. They must have substantial
points of differences to set them aside from their competitors. Throughout the current markets
and potential geographic expansion, HSG needs to consider market segmentations in order to
target dominant markets to grow their market share value.

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Positioning Strategy
All of HSG positioning messages have been consistent with the fact that HSG is the
premier window maintenance firm in terms of safety and quality. It is apparent that HSG places
the safety of its employees, customers, and the general public above all else. It is due to this
structural paradigm that HSG is unable to compete with other firms in terms of low cost services.
HSG has staked its claim by placing safety and quality first, but is not flexible in price like its
competitors. Some of the major competing firms have staked their claim on being “green” (South
Shore Building Services), while other emphasize their experience within the industry (DMS).
HSG’s policy on safety has been successful in attracting customers who are health and safety
conscious. This point of difference is what will set them apart from other competitors giving
HSG the ability to expand and create a unique experience for their customers. HSG has a distinct
advantage over competitors by appealing to the overall well-being of the customer. Please refer
to Table 5 & 6 to attain a better understanding through the two positioning maps.
Insert Table 5&6: Positioning Maps A&B
Marketing and Product Goals
Our recommendation based on the information from the situational analysis, segmenting,
targeting, and positioning strategy is for HSG to focus primarily on building brand equity,
growth of brand awareness and to acquire a new branch. If HSG can maintain or exceed its
annual growth of revenue of 10% while incurring the advertising costs for that year, the numbers
suggest that it will be able to increase its clients and profitability. HSG needs more of an
emphasis on advertising because most of their current advertising is through trade shows, which
may potentially limit the number of potential clients. In our opinion, the next year HSG should

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begin to advertise directly through social networks as well as an updated website. The client base
should begin to slowly rise and we expect by 2014, HSG will be able to acquire a new branch in
San Diego, CA. Since, HSG already services some companies within the San Diego market area
through their established OC location. In addition to the market and product goals, we believe
that the most important factors a business should pursue are as listed: Market Share, sales
growth, market expansion, product penetration and technological advantages. It is essential for
businesses to perform higher than their competitors in order to create a sustainable market and
economic growth.
Market penetration is indeed measurable. In order to manage potential or approximate
growth, HSG must primarily focus on the current markets and establish potential clientele by
developing the current relationships with consumers. Also, HSG needs to build up their customer
market value, provide sufficient services at a high quality and differentiate by establishing their
points of difference to grow their market share. If they are successful at completing the tasks
above, HSG will be able to increase their market share to 5% within twelve months. Also
generating sales growth by increasing the sales goals, HSG can choose the most effective pricing
strategy and/or modifying the current markets in order to expand their horizons with the potential
growth of the company. If the following task is successfully completed, sales growth goals may
increase 10% in six to eight months. Market expansion will generate and increase sales goals and
provide new opportunities to companies. By providing an industry’s products and services to a
new market, they are creating new relationships and building reputation. Lastly, technological
advances will be a significant tool in order to stay in the developing and current market, by
maintaining the most efficient technology and advances with the current developments.
Technological developments need to occur in order to ensure customer satisfaction, safety,

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quality and proficient productivity. By maintaining the products and services up to par with the
current technology the service enhancement will increase. Initially in the near upcoming future,
HSG might encounter a slump in respect to expansion to different markets but after some
analysis our conclusion is set to believe that with strong advertising protocols and brand
awareness they will be able to reach their goal of growing to a $10 million company.
Product
HSG’s services include: window cleaning, demineralization, high pressure cleaning,
caulking and waterproofing, metal and curtain wall restoration, glass scratch prevention and
graffiti film, bird control, parking lot maintenance, and Denka lift rentals. HSG provides many
services using the industry drivers of product quality, and service to help maintain its point of
difference. All services provided by HSG are meant to preserve the exterior of buildings, and its
main point of difference is the high safety and integrity. We recommend HSG follow the
strategies proposed by industry drivers in order to improve its market share and brand awareness.
In order to create a strong foundation, HSG should focus on advertising and its creativity
through catchy slogans, like the ones it already has (We’re #1 where birds go #2), and unique
business cards. Although its advertising technique is creative, we recommend that HSG improve
in this field to generate more business. Updating the company website, flyers, and logo may
significantly improve and expand the business. The current flyers utilize aesthetically pleasing
photographs, but appear to be outdated and unappealing. The flyers are cluttered with words,
which may potential clients from reading them. The flyers should be revamped, with a modern
and colorful appearance to attract the attention of prospective customers. We recommend that
bullet points be used instead of large block paragraphs in order to describe the flyer’s purpose.

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Updating HSG’s logo is also a strategic move to generate more clients. Its current logo,
according to the website, is HSG, INC. in white letters over a red background. The logo should
be updated to look more appealing and unique. HSG should use a creative, easy to read font,
with company colors and visually stimulating graphics. Although business logos are small, it is
an integrating paramount in the representation of a company; logos are seen on products, labels
and business cards. By creating an attractive logo, viewers will have a lasting impression of the
company.
We recommend that HSG become more involved in social media in order to broaden the
company’s advertising spectrum. By joining various social networks, such as Facebook, Twitter,
Vine, and YouTube, the company will no longer be confined to industry trade shows and
property managers. Although HSG has a Facebook page, it has not been updated in two years. It
is essential for HSG to update its social media site in order to stay connected with business
owners and attract prospective customers. Facebook can help extend company exposure and be
used as a form of free advertising. Advertising and informing customers is the highest cost of
expenditure to any company, making it paramount for HSG to take advantage of this free form of
advertisement. We recommend HSG create a Twitter and Vine account and post short,
interesting information regarding the industry; via tweet or vine. Twitter may be used to
communicate with business owners and send updates or information about the company. HSG
currently has videos on its webpage that should be updated or renewed. With the use of YouTube
and Vine, HSG can create interesting infomercials and display its capabilities with little to no
cost. This will provide more interest to website visitors and make the web page more appealing.
The company can inform its consumers about products and services along with any
possible deals without additional cost through the use of social media. Updating HSG’s

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Facebook and creating a Twitter account will allow HSG to penetrate different markets that have
not been reached by the company. Mr. Garcia mentioned that HSG has been known for
advertising through fax, word of mouth, and trade shows. Nowadays, the world is very heavily
focused on technology and social media. With this fact, updating and creating new
advertisements to fit into this digital age would be beneficial. (Refer to appendix) to see the
research instrument designed to help determine if HSG should focus its time on social media.
Another one of our recommendations to HSG is to offer an additional service, such as
window tinting. Drawing parallels with the window scratch prevention film service that HSG
provides, a new window tinting film service may be incorporated and developed with relative
ease. This new line of service extension will help HSG target a new market, as well as building
their reputation amongst new competitors. They will be able to compete more efficiently against
other companies. Since HSG has an existing reputation as a company with quality service, they
can penetrate a new market with enough knowledge to executive it well. Window tinting can be
very useful for HSG’s prioritized target markets of high-rise building owners. Since their
buildings consist of over 18 levels, the workers in these buildings can suffer from direct heat
exposure from the sun through their windows. If property managers of buildings invest in tinting
their windows, they will be able to protect workers from heat, save money on renewing and
fixing blinds, allow their staff to enjoy their window view comfortably and provide them with
more privacy. Instead of constantly using blinds to shield workers, window tinting may be a
more efficient option. Also, the recommendation will be an effective plan to give the company a
significant point of difference.

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Pricing
Since it is difficult to gather information on the window cleaning industry, in regards to
pricing, we can only suggest how the company should price its services and what to consider. In
relation to pricing, a customer-oriented pricing approach is the method HSG should implement
when creating prices for its services. A target pricing tactic is implemented when a company
estimates the price that the ultimate consumer is willing to pay for a service. The company then
backtracks through markups, taken by competitors, to determine what price they can charge the
consumers. With this method, the price of service charged by HSG will change accordingly to
customer demand. If demand for its service is high, HSG should increase their prices. If demand
for service is low, the company should decrease their prices. HSG needs to determine a range of
prices that are acceptable to its target markets.
HSG needs to determine the price elasticity of its products. We mentioned earlier in the
report that due to the poor economy, most consumers request to clean their buildings less in
order to save money. However, maintaining buildings is an important aspect to businesses,
causing HSG’s products to be relatively inelastic. As price decreases, so will the total revenue
and if the price rises, total revenue will increase as well. In response to this, HSG needs to take in
consideration of the price sensitivity of its consumers.
Another factor to consider would be market positioning. HSG is known for their high
quality service, which causes its price to be relatively higher than competitors. Its positioning
would be premium since customers are will to pay a higher price for better quality, brand equity
is important to its consumers. HSG is motivated by high quality work, which allows the pricing
to be inelastic in relation to other competitors. However, if the company were to consider value
based pricing, it will need to consider the effects on its target markets. For example,

27
segmentation would be related to target market in order to break down the prices and break even
profits. These are factors to consider while trying to determine the pricing strategy.
The cost structure refers to the expenses that the firm must take into account when
providing a service. HSG needs to consider how much it will cost to get the necessary
information about its consumers and how much they value its services. Expenses will remain
constant unless there are extra expenditures. If this occurs, the additional money being used will
be added onto marketing and research. If HSG uses our recommended strategy to improve the
company, we believe its profit margin will increase gradually. The company will be able to
efficiently increase its sales while building their brand equity.
Channels of Distribution
Since HSG is in a specialized industry, normal distribution through retailers is irrelevant.
The recommended channel of distribution for HSG would be a direct sales channel, such as
manufacturer to consumers, since there are no intermediaries. In order to establish customer
needs, the direct channel would include: convenience, variety, information, pre and post-sale
service and profitability.
Another recommended channel of distribution is direct marketing. The various methods
of direct marketing are direct mail, face-to-face selling, telephone solicitations, catalogs, online
marketing, and direct response advertisement. HSG should market through online ads as well as
a combination of face-to-face sales with catalogs as often as possible. The cost of online
marketing is lower than other forms of communication and can reach a greater number of people
when performed correctly. HSG is currently marketing online; the company should place more
emphasis on this form of marketing. There are various recommendations included in the product

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section of the report for HSG to incorporate in order to improve its online web page and social
media sites. If executed well, company awareness will benefit greatly by attracting a wider range
of prospective consumers. Face-to-face sales are another important factor of marketing for HSG;
which the company currently engages in. Maintaining this form of sales will help HSG build
future relationships with its potential clients. HSG is currently providing flyer/catalogs for its
customers as another way of efficient marketing. These catalogs are helpful due to the before and
after pictures on the flyer, along with useful descriptive information. It is recommended that the
company continue this distribution with updated improvements to its flyers, which was also
mentioned previously in the product section.
The distribution coverage of HSG is selective because the products and services focus on
the geographical area. This means that HSG should select a few retailers in specific geographical
areas to distribute its products and services. The cost of the sales force would add value to the
sale if the level of cost per transaction would be relative to the direct sales channel. Another
consideration in choosing the direct channel would be profitability since HSG maintains its own
sales force. HSG’s marketing logistics plan already includes direct consumer interaction. As a
window cleaning service, it is essential that HSG’s technicians go directly to the consumers in
order to provide services. From the few pictures we have seen, it appears that HSG utilizes vans
and trucks that the technicians drive from the warehouses in Los Angeles and Orange County to
wherever the clients are located, illustrating the information from point of origin to the point of
consumption to satisfy the consumer needs. In order for HSG to establish an appropriate channel
of distribution, the recommended strategy and plans will develop more efficient consumer
coverage.

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Integrated Marketing Communications
The integrated marketing communication program we recommend for HSG is social
media. More specifically we recommend the social media outlets of Facebook, YouTube,
Twitter, Vine and LinkedIn. Although HSG already has a Facebook page, LinkedIn profile, and
some YouTube videos, they are all outdated with meager information and not used to their full
potential. The company needs to update its portfolio so it can be useful for viewers, employees,
and potential customers. By implementing and updating HSG’s social media outlets, it can
conceivably improve the image of the company as well as generate awareness amongst old and
new consumers. Although there is no correct schedule to advertise, by focusing on the target
markets and maintaining a continuous schedule of advertising throughout the year, social media
will result in awareness and interested consumers.
To illustrate the various routes that may be taken when utilizing social media, we have
generated the following IMC mock-up. The mock-up is intended for use on the social media
website known as Vine. Vine is a relatively new and expanding social media website whose
premise revolves around the “posting” and “sharing” of short video clips (maximum of six
seconds). It was under this premise we were able to create a humorous six second to capture the
attention of the viewer. The mock-up video portrays a woman working in her office, whose focus
is broken by a handsome window cleaner. It is only after the man cleans the window that the
woman realizes he is unattractive and quickly loses interest. The ending message at the end of
the video states “Clean your windows! A message from HSG Inc.” With social media IMCs,
such as the one produced in this report, HSG will be able to widen their brand awareness and
have potential clients associate clean windows with the company. The following link is YouTube
video of the described mock-up for Vine: In order for the source to have credibility the product

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will focus on the message elements of words vs. pictures of the window washing industry to
build image for HSG. Refer to Appendix D
Insert Appendix D: IMC Mock Up
By extending its arm through the vast array of social media sites, HSG hopes to reach out
to its target audience. The target audience of HSG is composed of both small and large business
firms operating in the southern region of California. The socioeconomic demeanor of the target
audience is unclear to the ambiguous assumptions that can be made through their use of social
media. Small firms may search for services through social media sites simply due to a lack of
expertise in networking. Juxtaposed, large firms may utilize social as a way to reduce advertising
costs or as a way to augment an already stable advertising sector. Facebook has become a tool
for companies to generate awareness, interact with consumers, and get feedback. We believe that
by updating its Facebook page, HSG can attract new clients, promote its business, and help
maintain relationships with current clients. YouTube videos can be a powerful tool to build
awareness and can be used to demonstrate the quality and expertise of the work HSG can
perform. Twitter is another way for companies to communicate with clients because it offers
unique opportunities for website integration and it can help maintain relationships and build new
ones. There are also Twitter monitoring programs such as CoTweet or HootSuite that are used to
track what people are saying about the company. HSG can use these tools as an advantage in
order to become aware of customer reviews and any potential changes needed to be made.
LinkedIn is another social media site that was created for professional networking. It is also
needed to give credibility of skills and expertise, which can also be endorsed by connections to
give authenticity.

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Facebook, Twitter, and LinkedIn are constantly used by companies to stay connected
with consumers, as well as provide assistance and answers to prospective clients. If HSG invests
its time into social media, it can easily increase brand awareness by connecting with clients and
creating an online relationship with them. To do so, the company must update its social media
sites accordingly to the current generation. The site needs to be attractive, informational, and
relevant to what HSG can offer. An outdated and unappealing Facebook, Twitter, and LinkedIn
page will discourage viewers from reading the site. The hierarchy of effects needs to be fulfilled
in order to help consumers through the funnel. It varies from awareness, interest, evaluation,
trial, adoption and retention. For current customers, conversion from adoption to retention is very
important. The most valuable stage for potential consumers would be from awareness to interest,
with the ability to transfer the consumer to the final step of the funnel. Hence, social media will
increase the planning, implementation, and evaluation of the target markets by identifying the
interest of the existence user and create brand awareness to the non-users. Balance of the
elements in integrated marketing is an essential and crucial tool that is recommended, to obtain
the proper marketing communications.
Setting a budget for integrated marketing communications is important however social
media is usually inexpensive which is why it would be an effective tool for the company. If HSG
decides to invest its time and concentrate on social media, now would be the perfect time to do
so. We are living in a generation where technology is used everywhere and anywhere. There is a
high possibility that many of HSG’s target markets are involved with social media and use it for
business purposes occasionally. If HSG updates its Facebook page, creates a Twitter, and makes
use of other social networks to help reach current and potential customers, the company can
easily increase its market share and brand awareness.

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Budget and Financials
The desired goal for HSG is to become a $10 million company by the year 2014. To
achieve this goal, we have made the following calculations in the (Appendix, Figure 1E). If the
company wants to generate $10 million in revenue by 2014, HSG needs to charge $65 per hour
for 153,846 hours. The company currently employs 107 field technicians that need to work 1,437
hours in one year, not including weekends. There are 261 weekdays in a year, which means each
of these technicians needs to work at least 5.5 hours a day to achieve the goal. These working
numbers were derived from Mr. Garcia’s PowerPoint presentation, Moodle questions, and class
lectures.
Our team believes this breakeven point of $10 million is reasonable and obtainable. The
107 field technicians of HSG are only required to work a minimum of 5.5 hours per day
excluding weekends. If and when these workers are allowed holidays off, they can accommodate
the missed hours onto their other work shifts. If new employees are added to the company or if
old employees leave, the minimum of 5.5 hours per day will be adjusted accordingly to still
achieve the $10 million goal.
HSG will not need to add new services or improved machines to reach this goal, causing
us to believe this is the best approach for the company. Additional expenditures will not be
necessary for the company which was our main concern when creating this break-even analysis.
In order for HSG to break even in its business endeavors, the company will have to operate for a
minimum of 30,230.733 hours. In order to simplify the calculation, we have rounded the break
even number to the closest hour: 30,231 hours. If HSG was to operate at maximum efficiency,
the company will be able to generate total revenue of $14,522,040, with a profit of $8,693,337
for 223,416 hours of services rendered. Although this projection would require that all 107 of

33
HSG’s field technicians work 8 hours per day for 261 days with a service charge of $65 per hour.
Lastly, for HSG to efficiently maximize profit and maintain within their desired budget the
recommendations mentioned should be taken into consideration. For further understanding refer
to Appendix E.
Insert Appendix E: Breakeven Analysis
Implementation Schedule
Mr. Garcia gave us his business goal for HSG and our plan will be revolving around his
goals. The first goal is to become a $10 million company by the end of 2014. In the first half of
2014, we believe the company should hire one or two full time marketing representatives. In
2015, HSG should begin preparation of expanding into San Diego. During this time, the
marketing team or person should start updating HSG’s social media presence. The marketing
representatives should be updating any social media that HSG currently has; such as Facebook,
YouTube, and LinkedIn. They should also be creating a Twitter so HSG can begin establishing
more of a foothold in social media. In 2016, through the use of social media, it should create
more company awareness. With the free cost of social media advertising, it should assist with the
expansion of HSG’s market share. In 2017, HSG hopes to increase revenue and have the
company grow to $16 million. In the last year, 2018, HSG should be a $19 million company
through organic growth and acquisition. The plan fits together by implementing the business
goals and creating the foundational structure. HSG needs to follow a format in order to create the
most efficient results, which is why we have created a specific schedule correlated with the goals
to maintain an effective time frame.

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Monitoring and Evaluation
We believe performance can be measured by how well the social media sites can attract
viewers. In this day and age, monitoring social networks consist of measuring the most current
data and interaction within customers. HSG can measure the data by tracking the time spent on a
particular page or how many likes a product or page will receive.
This type of monitoring and evaluation should be analyzed daily to determine the amount
of traffic the site experiences. Success is defined by the amount of traffic the social media sites
receive. If a large amount of viewers are going through HSG’s social media sites, then their plan
to boost the company’s awareness will be successful. Failure is defined by the lack of viewers on
HSG’s social media. The company will invest their time and resources into improving and
creating social media sites. If they launch this new type of advertisement and fail to create traffic,
their resources will be used ineffectively. HSG’s benchmark should be a balance between their
success and failure rate of traffic. If their success rate of traffic is 10,000 viewers a day and their
failure rate is 1,000, their benchmark should be a distance between these two numbers. We
believe their benchmark should be around 3,000-4,000 viewers a day.
Risks and Threats
There are various risks that are associated with the use of social media. One of the main
risks is posting a status or a tweet that could tarnish the company’s image. If HSG fails to
monitor what is being posted, social media will damage the company’s reputation instead of
improving it. Negative publicity, criticism and feedback occur in social media daily. It does not
discriminate since it impacts celebrities, businesses and everyday users who are negligent in
what they say and who they say it to. One way to minimize risk is by having multiple

35
individuals, within the company, monitor posts before submission. By having more than one
employee check the post, it ensures that HSG receives different perspectives and interpretations
of the content.
Another risk associated with social media is the possible alienation of HSG’s current
clients. Although social media has become widespread, older generations may have issues
adjusting to it. When compared to digital natives, baby boomers and older generations are not
proficient when using social media. If HSG focuses its time and dedication into promoting their
business through social media, it may marginalize an older-aged target market. HSG would be
able to attract a younger generation, but it may risk losing appeal from the older generation. To
minimize the possible discrimination against the older generations, HSG should encourage this
target market to engage in social media. The company should hold a seminar and discuss the
many pros of social media and convince listeners to become users of the web.
Aside from social media risks, HSG must also think about the risks of expanding into
new markets. If the company successfully opens a new branch for the San Diego area, it runs the
risk of spreading its resources too thin. In the event that HSG focuses too much on San Diego, it
can lose business and market shares in other regional branches. To minimize the negative
outcomes of expanding into a new market, HSG must review its resources to ensure they are able
to efficiently branch, without harming the company. We believe the various threats and risks
mentioned will not put the client’s company at risk of bankruptcy.
Conclusion
The appropriate course of action for HSG, based on the situational analysis of the
company, is to penetrate the market. Market penetration will allow the company to increase its
market share and attract more prospective consumers. In order to achieve said result, it is our

36
recommendation that HSG update its website, produce attractive informational flyers and keep
points of difference consistent in order to increase potential clientele. This will aid in broadening
brand equity, awareness amongst consumers, and consumer perspective to create value.
With an aggressive advertising campaign, HSG will acquire new clients from the
expanding target markets, while drawing potential clients away from its direct competitors. In
order to maintain customer satisfaction, the strategy that should be implemented is comparative
advertising. HSG should advertise its major points of difference, making HSG stand out from
competitors. Advertising should be implemented by HSG to accomplish its business objectives
by 2018. We acknowledge that advertising may be costly, but investing its time and resources on
the aforementioned strategies will greatly benefit the company. With a modest advertising
budget, HSG should focus more on social media since it is an inexpensive, successful, and
efficient approach to promote business.
Another suggested strategy is the repositioning of the services, in order to communicate
beneficial needs to the consumer; the repositioning would change the consumer’s perception of
HSG services. The goal is to manage services in order to be in primary demand and become the
market leader. The services that HSG offers should be repositioned as a “first choice” in
consumer’s minds. In order to accomplish this goal, HSG needs to promote the dominating
aspects of its services, points of difference and overall best strategies over its competitors. The
company needs to successfully convince clients that it is superior to its substitutes. If the strategy
to reposition HSG’s services is implemented, the company may experience a higher volume of
clients and revenue.
After generating the marketing mix and IMC, it was apparent that the utilization of social
media would be the best course of action for HSG. Social media is an inexpensive and efficient

37
way to increase company awareness and increase market share. HSG currently uses social media
sites, but in an unproductive manner. Its Facebook, YouTube, and LinkedIn accounts are not
updated, which may negatively reflect the company’s image. We have proposed different
strategies to help HSG monitor its social media use and determine its effectiveness. With our
recommendations to update and frequent more social media sites, HSG may attract clients and
help maintain relationships with current customers. By utilizing the suggested strategies, HSG
will differentiate itself; create brand awareness and goodwill for the company. It is our belief that
the recommendations in this report will aid HSG in obtaining its business goals and continuing
its growth in the future.

38
References
"Architectural Windows." Architectural Window Cleaning & Maintenance Technology. N.p., n.d.
Web. 25 Sept. 2013.
"Benefits of Window Cleaning." www.houstonwhcleaning.com. N.p., n.d. Web. 30 Sept. 2013.
Deborah D. Heisley & Deborah Cours (2007) “Connectedness and Worthiness for the Embedded
Self: A Material Culture Perspective,” Consumption, Markets, and Culture.
"Forget Roomba, the Window-washing Winbot Is the Spider-Man of Self-scrubbing
Automatons." Digital Trends. N.p., n.d. Web. 25 Sept. 2013.
"Services Magazine." New Technology Drives Window Cleaning Industry. N.p., n.d. Web. 25
Sept. 2013.
"Small Business Trends | SBA.gov." Small Business Trends | SBA.gov. N.p., n.d. Web. 09 Oct.
2013.
"Top 30 Forms." Denka Lift Files for Bankruptcy. N.p., n.d. Web. 25 Sept. 2013.
Holmes, David. "The Urbanophile » Blog Archive » Trends in American High-Rise Construction
by David Holmes." The Urbanophile RSS. N.p., n.d. Web. 09 Oct. 2013.
"Welcome to CWWC Home Page." CWWC. N.p., n.d. Web. 25 Sept. 2013.
"Welcome to HSG, Inc. We Make Things Easier for You." Welcome to HSG, Inc. -Professional
Curtain Wall Maintenance. N.p., n.d. Web. 29 Sept. 2013.
"Workers." California Department of Industrial Relations. N.p., n.d. Web. 25 Sept. 2013.

39
Appendix
Appendix A: Maslow’s Hierarchy of Needs
(Kerrin 5e, 87)

40
Appendix B: Economic Environment
0
2000
4000
6000
2011
2010
2009
2008
2011 2010 2009 2008
All of California 4911 4885 4872 4866
Los Angeles Establishments 1008 1016 1007 1002
Orange County Establishments 491 486 486 484
Geographic Area for Janitorial Services

41
Appendix C: Injury Chart
Appendix D: IMC Mock Up
http://www.youtube.com/watch?v=hnp_WENNplE&feature=youtu.be

42
Appendix E: Breakeven Analysis
Breakeven Analysis
Q P TR VC TVC FC TC PI
0 $65 0 $20 0 1360383 1360383 1360383
5000 $65 $325,000 $20 100000 1360383 $1,460,383 ($1,135,383)
10000 $65 $650,000 $20 200000 1360383 $1,560,383 ($910,383)
15000 $65 $975,000 $20 300000 1360383 $1,660,383 ($685,383)
20000 $65 $1,300,000 $20 400000 1360383 $1,760,383 ($460,383)
25000 $65 $1,625,000 $20 500000 1360383 $1,860,383 ($235,383)
30000 $65 $1,950,000 $20 600000 1360383 $1,960,383 ($10,383)
30230.73 $65 $1,964,998 $20 604614.7 1360383 $1,964,998 ($0)
35000 $65 $2,275,000 $20 700000 1360383 $2,060,383 $214,617

43
Research Instrument
1. Specify Constraints (Restrictions)
A couple of limitations that may occur when implementing the plan include the time
needed to solve the lacking sources of social media, unfamiliarity with certain social media
outlets, both of which compound the time to create and update the accounts. It is necessary to
have an experienced employee be familiar with social media in order to implement the proposed
advertising with ease. Another constraint that pertains to social media is the lack of use. The
purpose of social media is to keep customers and potential consumers informed of day to day
events. To effectively use social media, it must be updated at least every other day, if not every
day. Social media connects the company to its consumers in an intimate way because it can
effectively provide feedback and resolve issues.
As previously mentioned, advertising is necessary in making significant points of
differences known to distinguish from other competitors. The questionnaire will gain feedback
from property managers and potential consumers. This target market, especially property
managers, are often preoccupied and lack time so the questionnaire must be short and contain
short, concise questions.
2. Identify Data Needed
In order to properly construct a research plan, we need to gather data relevant to the
product and services provided by HSG, Inc. Distinguishing the strong services from the weak
ones will help the company grow and develop the weaker products into a consistent revenue
generator. Marketing these products to the proper target markets will generate interests for these
services. The essential data that is sought after via the ensuing questionnaire includes the
following: the importance of a clean window cleaning to consumers, the perceived effect of

44
social media on the growth of a company, the frequency an individual browses social networks
for products and services, the validity of brand exposure through socio-video networks, the
acceptability of advertising on social networks, and advertisements attributes which are
appealing to consumers on social networks. The previously mentioned data will provide a
sufficient insight into the various social media outlets that HSG may potentially expand brand
recognition.
The six following questions will help HSG gather vital information about how often
social media is used, if it is used for business motives and determine whether or not HSG should
dedicate its time to this type of advertisement. The questionnaire should be given to property
managers working with the company, and other prospective consumers.
Questionnaire
1. How important is exterior window maintenance to you and the outlook of your
building/company?
A. Extremely Important
B. Very Important
C. Somewhat Important
D. Unimportant
E. Very unimportant
2. Social media plays a significant role in growth and expansion of a company.
A. Strongly Agree
B. Agree
C. Somewhat Agree
D. Disagree

45
E. Strongly Disagree
3. How often do you use social media pages like Facebook and Twitter to gather information
about other businesses?
A. Once a week or more
B. Once a month or less
C. 2-3 times a month
E. Never
4. Do you watch YouTube videos to learn more about a company?
A. Yes
B. No
5. Do you/would you use social media to advertise and expand your own personal business?
A. Yes
B. No
6. What should be incorporated on company websites to create a more user friendly and
convenient experience?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

46
Tables and Figures
Table 1: Competitive Analysis
HSG, Inc. MPM Building
Services Inc.
DMS Facility
Services, Inc.
South Shore
Building
Services
Pricing High Aggressive High Low
Annual Sales $2.4 million $2.7 million $2.2 million
Locations L.A., O.C. L.A., O.C. Pasadena, L.A.,
O.C., San Diego
Anaheim, Santa
Fe Springs
Window Cleaning X X X X
Demineralization X X X X
High Pressure
Cleaning
X X X X
Caulking &
Waterproofing
X X X X
Metal & Curtain
Wall Restoration
X X X X
Glass Scratch
Prevention &
Graffiti Film
X X X X
Bird Control DBA X X X
Parking Lot
Maintenance
X X
Denka Lift (rental,
sales, services)
X
OSHA & OPOS
Safety Consulting
X
Painting X
Janitorial Services X

47
Table 2: Industry Structure Map
Service
ProductQuality
HSG, Inc.
DMS
MPM
South Shore

49
Table 4: Market Product Grid and Positioning Strategy

FINAL Marketing plan

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