Dry Cleaning Service Innovation

This assignment delves into the dry cleaning service industry, examining its current landscape and potential for innovation. You'll analyze various value propositions offered by dry cleaners, investigate emerging trends such as the Internet of Things (IoT) and sustainable practices, and explore different customer segments within this market. The goal is to identify opportunities for improving customer experience, enhancing operational efficiency, and driving growth in the dry cleaning sector.

Running head: MARKETING MANAGEMENT & DIGITAL COMMUNICATION
Marketing Management & Digital Communication
Name of Student:
Student ID:
Name of University:
Author’s Note:

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Executive Summary:
Victoria Cleaners & Laundromat has been positioned in the heart of Melbourne, Victoria for
the past two years that has been offering laundry, dry cleaning, garment alterations along with
daily home pick-up and delivery services. The company does boast of a production facility
but have not required a retail shop because of their services related to pick-up and delivery
and for the fact they have gone digital a few months back, something that not many in this
field have started with. The company is blessed with drivers who are trained in customer
service.
The enterprise does make use of app and social media in the best possible way to counter any
competition that can come from the other players in the market. This business facilitates in
new door-to-door cleaning, alteration and laundry in and around Melbourne covering the
nearby surrounding neighbourhoods that will surely catch the attention of the attention of the
customers.
Working customers have been finding this service expedient for them and might want to
continue with it. If Victoria Cleaners & Laundromat does have the ability in satisfying their
customers with the quality of their service, most of them are likely to become repeat
customers.

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Table of Contents
Background:...............................................................................................................................4
Introduction:...........................................................................................................................4
Keys to Success:.....................................................................................................................4
Research Methods:.....................................................................................................................5
Target Market:........................................................................................................................5
Competition in Dry Cleaning Market:...................................................................................5
Better Value Proposition:.......................................................................................................6
Tools used for identification of target market and customer value:.......................................7
Customer Analytics:...........................................................................................................7
Focus Groups:....................................................................................................................8
Future Value Propositions for Victoria Cleaners and Laundromat:.......................................8
Current Value Analysis:.............................................................................................................9
Customers’ perceived value for the chosen product, service or brand; and ways competitors
meet those values:..................................................................................................................9
Current ‘Value’ proposition of Victoria Cleaners & Laundromat:......................................10
Marketing Promotion Plan:......................................................................................................10
Day or Week Promotions:....................................................................................................11
Laundromat Signage:...........................................................................................................11
Coupons:..............................................................................................................................11
Getting Publicity:.................................................................................................................12

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Sports Sponsorships and Promotions:..................................................................................12
Conclusion:..............................................................................................................................12
References:...............................................................................................................................14

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Background:
Introduction:
As more Victorians start using this particular service, the image of Victoria Cleaners
& Laundromat will be enhanced and the enterprise would gain relevant share in the market.
This is the first dry cleaning enterprise within Australia that has implemented its own app of
and added to its brochure of the services provided to customers.
This report would take into account their target market, its current position within the
marketplace, growth data along with the marketing promotion plan so that the enterprise is
able to market them in better way. Its objectives for the second year is establishing it as a
sustainable business by the end of the year in and around Melbourne and generate net profits
along with offering of customer satisfaction.
Keys to Success:
Victoria Cleaners & Laundromat have prepared certain keys to success factors that
would enable them in working towards the goal they started their enterprise with. A
comprehensive strategy in marketing holds key as the business enters its second year of
operation (Sheppard, 2017). It is also significant to remember that the targeted customers do
have money and want to be facilitated with high quality service where digital communication
would play an important role. It is also imperative to note that the hours of operation needs to
expedient and the completion of service needs to be timely so that the customers are not
harried after a long day’s work (Lovelock & Patterson, 2015).

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Research Methods:
Target Market:
Victoria Cleaners & Laundromat has been focusing on the people whom they
appreciate in being professional, trustworthy, unswerving and perfect the service of dry
cleaning and are more than prepared in paying for this. Victoria and Melbourne in particular
have many dry cleaning home delivery services, though Victoria Cleaners & Laundromat is
the one that targets the prosperous in exclusive manner. These groups do have the money for
the services provided by the enterprise, just as they always desire to wear clean clothes.
The wealthy aspiration for quality and their willingness in paying a premium for the
service that can be trusted 100 per cent generally extrudes professionalism, and basically
permits them in forgetting that they have to deal with whatever it takes in wearing clean
clothes every day. The core target market of the enterprise is the time-poor people
professionals who are in the habit of wearing suits every day or those staying at home
responsible for the laundry.
Competition in Dry Cleaning Market:
There exists number of players in the sector of dry cleaning within Australia,
especially in Victoria, but none of the enterprises have quite been able to corner the space.
Victoria Cleaners & Laundromat are keen on grabbing the opportunity and provide this on-
demand laundry. On demand laundry is something that is being done elsewhere, but no
company was doing it here in Australia. The on-demand services are stated to be the latest
trend that has hit the market with the mobile apps in the break of few years. With the
initiation of these new and exciting business apps sculpt of UBER, consumers would
fundamentally anything run, concluded, delivered and taken with the click of a button
(Osterwalder et al., 2014). This is generally helpful for the people who work 9-6 jobs or

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generally live in cities that are densely populated. It is difficult to run errands after work that
can become a task when most of these people are stuck in the traffic.
Competition within the laundry industry generally centres on the factor of pricing for
the type of laundry and dry cleaning services presented (Payne, Frow & Eggert, 2017). The
position or the location of the players within the market is generally stated to be another
important factor that needs to be considered. Victoria Cleaners & Laundromat faces both
direct and indirect competition. Other enterprises like Dryz Pty Ltd or Bancroft Dry Cleaning
Co Pty Ltd maintains a strong customer base, so it becomes important for Victoria Cleaners
& Laundromat in positioning themselves in better fashion than the competition. It is
important for Victoria Cleaners & Laundromat to be proactive and take a harder look at the
ways they have been operating within the region. In combating the competition, Victoria
Cleaners & Laundromat needs to endeavour in having a better understanding of the dry
cleaning market, it will fundamentally supplant the competitors’ market understanding.
Victoria Cleaners & Laundromat would attempt to deliver better services according to the
needs or requirements along with the penchants of the target market.
Better Value Proposition:
Clear communication along with the factor of connectivity is significant in keeping
their customers engaged and satisfied within the industry (Jang, Kang & Son, 2017). There
are certain dissimilar channels through which the customers would like to bond with the
enterprise. Sending of SMS, Email, Mobile Applications and Websites are such factors that
the enterprise needs to empower for their customers to communicate with the enterprise or
place orders. If a new service is on offer the enterprise needs to notify their customers with
promotional SMS or in-app announcement (Hoffman & Turley, 2015).

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Victoria Cleaners & Laundromat would also do well if they facilitate their customers
with garment tracking which is a must. The company is also thinking of bringing an app to
the market where even the customers would be able to track their garments. They do hold the
right where they need to know the state of their garments by being at the office or in home. It
is important to systematize the process and track the garments at every possible checkpoint.
Technology has made great strides and it is important that to stay ahead in competition
enterprises do take the assistance of technology. This will minimize the errors frequently
made in this industry like wrong delivery of garments and garments lost which would result
in losing of a loyal customer.
Tools used for identification of target market and customer value:
Customer Analytics:
Customer analytics, also known as the customer data analytics, is stated to be the
methodical examination of the information of the customer related to the company along with
the customer behaviour to recognize, draw and keep hold of the most profitable of customers.
Customers have admission to information anywhere and at any point of time like at what time
the garments would be picked up, the current status of the garments and time and date of
delivery. This makes it significant in utilizing the predictive analytics and data in forecasting
the ways customers would behave while interacting with the staffs of the enterprise. The
main goal of customer analytics is in creating a single, precise view of a customer in making
the decisions about ways of acquiring and retaining the customers. As per Lovelock &
Patterson, (2015), the better the understanding of the customer’s habits, and preferences, the
more precise predictive behaviours become. This is the tool that can be taken in as
specialized tools in gaining insight into the experience of the customers, understanding their
behaviour and in helping them tailor marketing campaigns to detailed customers segments
(Lee, 2016).

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Focus Groups:
Enterprises do make use of focus groups in determining the most efficient of
marketing messages to send to the probable customers, develop the pricing factor, select
packaging and even naming certain offers. Focus groups also help in bringing home relevant
feedbacks from a group consisting of individuals representing the target market. For instance
if Victoria Cleaners & Laundromat have developed on a new service for delivery purpose and
the same is not functioning properly or is not being utilized the same way hoped by the
enterprise, a focus group might be formed to find out the reason. The objective of this focus
group would be to augment the number of customers exploiting the delivery service through
determi9nation of the barriers to use.
Future Value Propositions for Victoria Cleaners and Laundromat:
People are becoming more careful in the things they use and the things they eat. The
dry cleaning industry is stated to be filled mostly with outdated businesses that have been
failing the customers on repeated basis. It would be important for Victoria Cleaners and
Laundromat to offer an eco-friendly and convenient option. This enterprise would also be
looking forward to provide an unique 24/7 pick-up and drop-off expertise with a boutique
store that flaunts itself like those in Europe. It would allow them to differentiate themselves
from most of the cleaners. The franchise part generally offers the eco-friendly and
convenience facet of an industry that does not possess a gorilla of 800 pounds. Moreover, the
enterprise is willing to start something that is done by Washio, an on-demand laundry
platform back in USA, where users provide details of the washing instructions. The enterprise
is also having discussions on tying up with other small dry cleaners in the area for making
use of its app.

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Current Value Analysis:
Customers’ perceived value for the chosen product, service or brand; and ways
competitors meet those values:
At the time when customers appraise a particular product or service, they generally
weigh its apparent value against the price that has been asked for. As per Hylton, (2017),
marketers have generally been focusing much of their energy and time on managing the price
part, as raising prices has the ability in boosting the profits. The nature and quantity of a
particular value within a particular service or product generally lies in the eyes of the
beholder. A thorough model of the consumer value facilitates an organization in coming up
with fresh combinations of value that its services along with products could convey.
The complicated part of constructing a price-value map is estimating the value of a
product to the average customer. It has often been found that with the help of general
knowledge along with the reticent amount of evaluation. For example, in case of Victoria
Cleaners & Laundromat, drawing of a price-value map would be deciding that the sector’s
significant components of value are the speed of delivery of the garments, the number of
customers served, dependability and the existence of the tracking service of the garments
along with the pick-up and service related to delivery.
A customer value proposition that is good in nature would be providing convincing
reasons on the ways a customer should purchase a product, and differentiating the products
from that of the competitors (Covin et al., 2015). The trend has generally been that the local
dry cleaners have joined forces with on-demand platforms in many countries to stay ahead of
the competition and retain most of the customers as there exists many dry cleaners in
Australia with most of them providing same sort of services. Gaining the attention of the
customer along with approval would help in building sales at rapid rate along with increasing

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the share of the market. A brand is generally the perception of either a product or service that
is being designed for staying in the minds of the targeted customers within a market. It is
always desirable in building a stronger and positive brand association with the offerings of
the enterprise.
Current ‘Value’ proposition of Victoria Cleaners & Laundromat:
It is important for Victoria Cleaners & Laundromat to understand that the business of
dry cleaning would thrive when one can change the way one look at things, along with the
things one look at change (Kitchen & Burgmann, 2015). It is important to see everything
through the eyes of the consumer. If customers are dropping off clothes to the store, the stores
need to have the best possible counter service representatives. They have some of the best
who has the ability in countering any small issues that might crop up. The company makes
the best possible use of social media like the Twitter or Facebook in familiarizing the
community about the business along with the services that is on offer (Porter & Heppelmann,
2014). The enterprise has started a fan page where locals do give important feedback and
provide suggestions as and when they feel like.
The company is also offering or rather sponsoring “Free Trousers Friday” where
anyone in Melbourne can bring in a pair of trousers and have those pairs cleaned for free.
These free counts add to the total piece and the revenue jumps up every time for such a
campaign. The enterprise has opened up to its customers in four convenient locations within
Victoria so that people can get easy access of them.
Marketing Promotion Plan:
Promotion can be stated when a business decides on the forms of communication it
requires or needs in its marketing plan. The primary step is always to improve on the strategy
of marketing communications and the strategy would be defining the consumer along with

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the best possible ways of reaching them and the content of the message (Huang & Sarigöllü,
2014). There are several ways of promoting a business or a service or product depending on
the budget that is being generally allocated for such things like the advertisement vehicles,
hoardings, banners and print media.
Day or Week Promotions:
It is important to notice that every laundry or dry cleaning service has slow times and
every laundry owner would feel like developing their business during such periods. In
helping business drive through these slow phases, providing promotions at certain time or
hour of the day or during certain days of the month can be an option. For bringing in extra
flare, it is important to consider social events like “College Day” or the “Single Nights” along
with promoting the event. The local media can be called upon to let them know what the
stores are up to.
Budget allocated: AUD $1500
Laundromat Signage:
Outdoor advertising taking in the storefront signs, handbills and billboards is stated to
be popular and moderately inexpensive way for telling people the location of the store and
the services that are been offered by the enterprise. It is important for the stores in having
adequate signage on the business front and the fact that it can be read or identified from the
street.
Budget Allocated: AUD $1000
Coupons:
It is important to consider for “free wash” or provide with other coupons to the
customers. This is important in bringing in new or fresh customers to the laundry for the first

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time, or enticing the customers in coming back and trying for the service once again
(McAlexander, Koenig & DuFault, 2016). Only a portion of the offered coupon would be
redeemed and one will produce some greater attention and exposure for the laundry services.
Budget Allocated: AUD $500
Getting Publicity:
Unlike the factor of advertising, public relation does not engross payment for the
factor of positive revelation. It is generally of free nature. Instances of positive activities
related to public relation are the several fundraising drives that is being conducted by the
charities and churches. For example, if Victoria Cleaners do participate in one of the Blood
Drives organized by Red Cross and if the enterprise is being mentioned in the local
newspapers, the Laundromat would be appearing as being conscious about community along
with the free publicity that would be reminiscent of the potential customers where the store is
being located.
Sports Sponsorships and Promotions:
If there is one within the area, it is worth considering in partnering with any of the
local colleges or the little leagues existing in and around Melbourne. This is one of the great
ways in generating publicity along with the word of mouth from the fans of the sport along
with generating the additional income from the drop off service in laundry.
Budget Allocated: AUD $2000
Conclusion:
It can be concluded that the laundry service or the dry cleaning service industry has
come a long way in terms of technology and marketing strategies. Victoria Cleaners &
Laundromat has been doing all by themselves so that they can have their own strong

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customer base along with all the required facilities for them to count the profits. The
enterprise has been making the most of the social media in keeping a close watch on the
customers it serves, moreover it has thought of bringing in more innovative apps to its plate
to serve the customers in much better way. It has been competing hard but in fair manner,
investing where required and trying to provide its customers an unique experience of dry
cleaning services.

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