Marketing Plan For Laundry Business

Executive summery Laundry business has been riding a growth burst and as a marketing manager. I am presenting a marketing plan to launch a new specialized laundry service business. This specialized laundry will be named “Purified” will run its business in several places of Dhaka with exclusive services in wide verities. Initially we will provide our services through our Bonani, Gulshan, Dhanmondi, Uttara and Bashundara branches. This plan includes current market situation of laundry industry in Bangladesh.
To identify the opportunities a SWOT analysis has been made. Opportunities and Issues or ‘Purified’ are shown In this plan. After segmenting the market and Judging Its segments attractiveness. Purified decided to concentrate on the need of upper middle class and upper class people to the society. Purified designed its service line to satiety the needs of these target market and retain them in the long run to create greater customer equity. With a view to survivor and capturing the market share in the long run purified will carefully design its marketing mix.
The pricing, promotion and service distribution strategies will be designed keeping the long term objectives and goal In consideration. Finally a financial projection has been made to anticipate the first year’s production cost and profit after tax. At the last part of this proposal I have shown implementation and control program on monthly basis. Our ability to integrate emerging technologies In our design will provide great strengths and establish a reputation of unmatched quality. Table of contents 1 . Executive summery 2. Current market situation ; Market description 3.

Product review; Features 4. SWOT Analyss 5. Opportunltles; Issue Analysis 6. Objectives * Financial objectives * Marketing objectives 7. Marketing Strategy * Segmentation Target Market * Positioning strategy * Differentiation for positioning * Posltlonlng statement * place * Promotion Mix * Marketing Research 8. Action Program 9. Financial Projection 10. Implementation Controls 11. Conclusion Competitors: Bangladesh was far behind in promoting the laundry industry till 1988. Only the two international hotels- Sheraton and Sonargaon Hotel had modern laundry and dry cleaning facilities.
They were designed to cater their own needs only. It is a new era of business here. For the growing market and new sense of dressing; demand for specialized laundry is increasing day by day. Now Bangladesh has only three pecialized laundries, they are Bandbox limited, Topclean Bangladesh limited and Kolkata dry clean. Among them Bandbox, the market leader, dominates the laundry market of Bangladesh with a market share of 60%. Top clean ,an aggressive number two, that is a market challenger attracted 25% market share. are in third position with 12% share.
The following pie chart shows the relative market share Bandbox limited | 60% | Topclean Bangladesh limited | 25% | Kolkata dry cleanl 12% | Others | 3% | Customers: We are targeting only the urban consumers in the local market . We are targeting the people of Dhaka City Corporation. The population of our country is 15 corer and approximately 19,393,000 people live in Dhaka city. Total population in Dhaka city corporation-19,393,000 | Upper | I Upper middle I Middle 1 Total= 1 116358001 *data presented in the above table is collected from internet and may vary from the statistics of different publications. ell as the people in Dhaka city is also increasing every day, so all of this indicate a growing market for specialized laundry in Bangladesh. Company: We started as a partnership company. “Purified” has a total investment of its Tk 300000 with Tk 200000 as the contribution from promoters. Of the two promoter one has a background in londry business Experience and other has 20 years work experience in event management farm . Context : Our target customer is total Dhaka City, we capture our customer by establishing branch in different places in Dhaka city, our agent, attractive advertising.
Product review: Apart from ordinary dry cleaning/washing services, Purified offers various exclusive services, which made them different from other competitors. * Fragrance: Rose, jasmine, lemon, fresh, baby fresh. * White care: Special care for white clothes * Home service: Special home service. * Quick service: More quick service Floor Care: Cleaning, Scrubbing, Polishing, Buffing ; Crystallization. Carpet Maintenance: Washing, Drying ; Shampooing. * Curtain Care: Washing ; Pressing. * Window Care: Window Pane/Glass Cleaning. * Upholstery Care: Sofa Cleaning ; Shampooing. Specialized packaging: special packets that protect cloths from insects Features: Purified will attach special features to its services. Mentionable features will be- 1 . Customer has choice to get the fragrance of different flower in their clothes. 2. They can get the service within 10 to 30 minutes basing on the emergency and variety of the services. 3. Special care will be provided for white clothes if instructed 4. Home delivery service is available 5. Excellent packaging 6. Special care to keep the button of the clothes intact while serving 7.
Guaranty of brightening and shining the color of the clothes. 8. Skilled employees for curtain care and upholstery services Purified has some unique strength although it cannot ignore its weaknesses. Major strengths include modern equipments and technology, excellent delivery network, customer oriented employees etc. Major weakness is limitation of capacity. The major opportunity is consumers are changing their life-style and now they want to keep ace with the society. On the other hand, Clarity is new in the specialized laundry market and it has little brand value.
Increasing competition can be a threat for us. The following radial venn summarizes Purified’s strengths, weakness, opportunities, and threats Strengths: Our specialized laundry has the following strengths on which to build and on which we can get the maximum number of customers. * Modern equipment and technology: “Purified” is fulfilled with modern equipment and technology. All of our machines and equipments are exported from abroad. * Excellent delivery network: There will be an excellent delivery packages. Many of our customers can not interact with us.
So, for that customer we will start home delivery services. We will collect cloths from customers home and return after washing. * Reasonable Pricing: We have the same for less strategy. So reasonable price is a great strength for us. * Well capitalized: We are starting our business with a lot of capitals. Quick service: We will try to serve people at a very short time that is quick delivery service. If any customer has any emergency, we will cater our service to them in a very short time * Customer Oriented employee: All the employees are very nergetic and enthusiastic.
They are presented here to provide best services * Superior customer value: Satisfying customer is one of the major goal of us. We will try to serve people the best services so that they can be satisfied. Our motto is, “We are not Justified until our customer is”. * Convenient location: We will select a convenient location for our business. Our main target is Dhanmondi. Gulshan, Uttara, Banani, and Bashundhara. We have located our specialized laundry in the residential part of the areas mentioned above. Weaknesses: As we have existing competitors in the market, we have earned from the success and mistakes of others.
Nonetheless, we have two major weaknesses – * Inexperienced management: As we are new in this business, our management is inexperienced. So we are weak in this section compare to our competitors. It is a major weakness for us. * Limitation of capacity: Demand for specialized laundry service is increasing in many areas. But now we are not capable enough to open our showrooms in every area. Opportunities: * Change in Life style: Now-a-days peoples are becoming modern and changing their life-style. They are wearing fashionable clothes and it’s not easy to wash these clothes at home.
So people are now getting more dependent on specialized laundry. And as we are targeting upper class and upper middle class, so it’s a great opportunity for us to improve our business. * Expansion: There is a growing demand for specialized laundry shop in Chittagong, Sylhet, NarayangonJ and in different parts of Dhaka. Future market expansion is possible if we can achieve success in our current market. * Foreign outlets: Purified can expand its business in South Asian cities like Mumbai, Delli, Katmandu, and Kolkata. Investors of Purified is well capitalized and if they get expected level of profit they will finance more and
Clarity will go global. Threats: Purified may face the following threats in the market – * Increasing competition: The competition is steadily increasing. Because there are also many other famous laundry shops. So, in competitive market they could be a threat for us. * Unable to expand market in rural areas: Because of we are targeting upper class and upper middle class people so, our service charge is being fixed with their level. That’s why we are not able to expand our business in rural areas because they are not be able to bear this expenses.
As 80% of total populations of our country re living in rural area we are losing this high amount and it’s a great threat for us. * Washing machine: Washing machine is a great threat for us. Because many of the people washing their cloths in washing machine instead of coming laundry shop. Little brand value: People did not hear the name of Purified specialized laundry ever before. Our laundry does not belong to any famous brand. But customers always go for the famous brand. This can be a threat for us. * Although we have some weakness and threatening factors, we are confident that we will overcome those through our strengths and opportunity.
Opportunity and Issue Analysis: Purified may gain the following opportunities 1 . People are becoming more modern and fashionable so they are becoming fastly dependent on specialized laundry which lead the growing market for laundry. 2. There are growing demand for specialized laundry in Chittagong, Sylhet and other parts of Dhaka city. 3. It will also provide home care services like floor care carpet management curtain care upholstery care so those people whose went to take special care of their home can take service from us. 4. We are delivering the benefits’ better than our competitors do. 5.
The financial rate of return will meet the ompany’s required threshold for investment. 6. Our target market can be reached with a cost effective media and channel. Among the issues Purified must address- * Should the company introduce more services? * Should the company be more quicker for delivering service? * Should the company give special attention for any individual service? * Should the company expand it’s branch anywhere else? Objectives: Purified’s Financial objectives are. * To earn a annual rate of return on investment of 10% after tax over the next 5 years. * To Produce net profit of Tk. 220000 with a targate profit margin of on total sales. To achieve first year total revenue of TK. 1220000. Purified’s Marketing objectives are. * Achieve a first year unit sales volume of 6250 units which represent a projected Market share of 5% * Generate 45% brand awareness within the consumer target market and 55% brand awareness with the business target market by the end of next year. * Increase second year share to 10% based on sales of two models in product line. Marketing Strategy: Purified’s Primary marketing strategies are increasing market share and establish the brand image.
With a view to serving and capturing the market share in the long run Purified carefully designs its marketing mix. The pricing, promotion and service distribution strategies will be designed keeping the long term objectives and goal in consideration. Segmentation: Purified can segment it’s laundry market in four ways like – Geographic segmentation, Demographic segmentation, Psychographic segmentation and Behavioral approach. I Segmentation I Examples I SL. 1 | Geographic segmentation I Region: Dhaka city corporation | 2 | Demographic segmentation I Age: 23-50, but specially emphasis on age groups of 35-50. 3 | psychographic segmentation: I Social class: middle class to upper lass | 4 | Behavioral segmentation I Benefits: Quality, productsuser rates: light users, medium users, heavy users I Target Market : From the many segments, we choose psychographic segmentation. Targeted segment consists- * upper class-heavy users(business tycoons, superstars, media people, ministers) * upper middle class- medium users ( business executives, doctors, lawyers,) * middle class-light/occasional users laundries. So it’s more affordable for the upper class and upper middle class people.
More over specialized cleaning is more needed for these people as they wear more exclusive and expensive clothes. Although we targeted middle class people in our plan, we will mainly focus on the upper class and upper middle class people. Middle class people will wash their special cloths like expensive saris, suites, curtains, carpets, etc once/twice in a year, which is also a measurable number. Positioning strategy: Differentiation for positioning: We’ll try to motivate our target customers to use our services through the differentiation.
By differentiating our services from our competitors, we’ll try to create an image on the consumer mind which will create a position of our brand name in the existing market and what’ll lead us to a bright future. We can differentiate our service from the other competitors on the following grounds- * Service cost: Definitely we would charge fewer amounts than the competitors but we would also maintain the quality. * Home delivery: No other specialized laundries do have such facility for the customers.
We would definitely charge a smaller amount for giving this facility but we’ll also maintain the customer quality and customer satisfaction. * Social responsibilities: * By doing different social responsibilities we can acquire a good impression from our customer. * Online checking: We’ll provide online checking system where our aluable customer can check the status of their cloth. If it’s ready they can easily collect their cloth without wasting any time. * Brand name: Our Brand name is “clarity’ which indicates the clarity in our quality of service. Logo: Our logo is very simple. We’ve used two basic colors in this logo which are red and white. These are two traditional colors of our culture After creating distinctive differentiation, we’ve to build a positioning in the consumers mind. Before we’ve positioned our brand in the target market, we have to understand and analyze the consumer behavior of the target segment. As we’re going for the “niche” or concentrated marketing we’ve to understand their demand and expectation from a laundry or specialized laundry.
Positioning statement: “To the middle and upper class people whose are fashion conscious and wants to make the life more comfortable our Purified is a specialized laundry provides exclusive laundry services in wide verity at relatively lesser prices then the others. ” Product: We take the order from customers for servicing their cloths, actually customer order us and then we collect their cloths from their home or they place the order directly to There is abundance of ways of setting price for a service.
Fundamentally, four factors have to be considered to set a price for the services of “Purified”. We carefully considered pricing objective, positioning, demand curve, cost to render the service, competitor’s price and market demand. By considering the factors, we can follow the “penetration pricing strategy rather” than “Premium” or “Economy’ or “Skimming” pricing strategy. We will charge comparatively less price to gain our optimum market share. When we will achieve optimum market share we will increase the price to make our laundry a profitable endeavor.
Although this strategy risks long term customer equity but we will try our level best to create a large number of loyal customers by providing them superior customer value to make them delighted about our services. Place: We will select convenient locations for our business. Our main laundry branches located at Dhanmondi, Gulshan, Uttara, Banani, and Bashundhara. We have located our specialized laundry in the residential part of the areas mentioned above. So that customers will not need to go far. For instance, there are no specialized laundries at Bashundhara.
But there are many customers of specialized laundry in this area hose need to go far for laundry services. So our laundry will reduce their distance problem and it will be convenient for them. As well as we will also provide quick home delivery service for our customers. Promotion: Through promotional activities “Purified” will communicate the merit of its services and persuade target customer to buy these. Purified will try to follow integrated promotion mix for effectively promoting its services to maximize profit through customer satisfaction. We will apply the most profitable elements of the promotion mix.
These are described below- Sales Promotion- Purified will run the following sales romotion strategies- * Gift Card- we will give a card with six spaces for stickers with each service purchase. Once the card was full the consumer was given a free a service worth of taka 200 * Discounted prices-We will give discounts to our customers once new branches are opened, or additional services are inaugurated * Free service campaign-We plans to run a two days promotional campaign every four months. During this campaign it will provide some free services to the potential customers to position purified in their mind. CRM (Customer relationship management) – Incentives such as bonus points or coupon will be given to the customers. Customers with bonus points or coupon will get some privileges and thus a strong customer relationship is created. * Occasional Packages- On different occasion Purified will announce special service packages to the customer. customized advertising policy. * Sometimes we distribute brochures through newspaper distributors. This is unquestionably a very cheap and effective advertising policy of Clarity. * In local cable network provider’s channel they post their video advertisement. Furthermore, in different corporate houses and universities they place their posters. Because it believes that it will gain a large number of customers orm these place. * Purified also does word of mouth advertising. Its employees are well trained to promote services to the customers through their excellent behavioral skill. Direct Mail- Purified has collected a huge number of e-mail addresses of corporate executives, businessmen, students and other professionals. It directly sends e-mail promoting the features of the excellent services available at Clarity.