MKT101A Assignment: OZ Laundromat Competitor and SWOT Analysis

This report provides an environmental analysis of OZ Laundromat Caulfield South, a self-service and service-based laundry business. The report begins with a business background, outlining the services, pricing, and promotional strategies of OZ Laundromat. It then conducts a competitor analysis, focusing on Soap Bar Launderette as a direct competitor, evaluating its marketing mix and highlighting its sustainable approach and technological advancements. A SWOT analysis is conducted to assess the strengths, weaknesses, opportunities, and threats faced by OZ Laundromat. The strengths include self-service with modern technology and strategic pricing, while weaknesses include a limited marketing budget and lack of energy-efficient equipment. Opportunities lie in expanding facilities and adopting a sustainable approach, while threats involve competition and the aging population. The report concludes by emphasizing the importance of diversification, environmental impact assessment, and customer engagement for the laundry business's sustainability. The report is a response to a marketing assignment for the course MKT101A and provides a detailed evaluation of the chosen business.

Running head: ENVIRONMENTAL ANALYSIS
ENVIRONMENTAL ANALYSIS
Name of the Student
Name of the University
Author Note

1ENVIRONMENTAL ANALYSIS
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Business background..............................................................................................................2
Competitor Analysis:.............................................................................................................3
SWOT Analysis:....................................................................................................................4
Conclusion..................................................................................................................................5

2ENVIRONMENTAL ANALYSIS
Introduction
The purpose of the paper is to conduct competitor analysis and SWOT analysis for
understanding the feasibility and success factor of the chosen organization. The chosen
organization for this assignment is OZ Laundromat Caulfield South. The business operates
with service and self-service.
Discussion
Business background
Laundromat is a service-based business that enables the option for self-service. The
company is located near Caulfield South. The product of this business is the major service
dominated with fewer goods. The core product of the business is laundry services based
supported by the equipment such as washing machines and detergents and the augmented
offering of the business involves spare parts for washing purposes. The service dominated
offering is supported by IPSO laundry equipment (OZ-laundromat-caulfield-south.business,
2020). The pricing strategy of this business needs to consider various factors for instance, the
presence of competition and customer demand. The pricing strategy of this business can be a
combination of discount pricing and psychological pricing (due to the coin-based system)
such as 3.99 dollars. The pricing strategy also involves economic pricing strategy (OZ-
laundromat-caulfield-south.business, 2020). The promotional strategy of OZ Laundromat
Caulfield South includes sales promotion that supports discounted pricing, gift cards for loyal
customers and print advertising through pamphlets and brochures. OZ Laundromat Caulfield
South follows direct distribution strategy.
Competitor Analysis:
The direct competition for OZ Laundromat Caulfield South is Soap Bar Launderette.
The indirect competition for OZ Laundromat Caulfield South can be suppliers of the

3ENVIRONMENTAL ANALYSIS
detergents and spare parts, as the suppliers of this business are also associated with other
competitors, local and national. Moreover, the suppliers can also sell the product offerings
directly to the end consumers.
The direct competition of OZ Laundromat Caulfield South, Soap Bar Launderette is
located at 174, Bridge Rd, Richmond VIC 3121. The Soap Bar Launderette projects major
competition to the Caulfield South Business due to the strategies adopted in framing the four
Ps of the marketing mix. The core product (services) offered by the business is laundry
services in the association of environmentally friendly and renewable energy equipment,
which presents the core benefit of washing multiple loads such as curtains, rugs, quilts and
even beddings with quality and faster services as well as the services do not leave carbon
footprint in the environment. The act of washing and dryers are the actual products. The
augment product for this business is Wi-Fi, USB charging, wireless charging, playing areas
for kids and baskets. The services and prices are categorized based on the size of the load, 9
kg (two basket load), 27 kg (six basket loads) and 14 kg (three basket loads) (Soap-
bar.com.au, 2020). The pricing strategy of Soap Bar Launderette is a combination of
economic pricing. For promoting their services, the Soap Bar Launderette is available in
social media for targeting the younger population. The business also adopts traditional media
like direct mail, SMS for directly communicating with the potential consumer groups. This
business also uses direct distribution strategy for offering services to direct customers.
From assessing the marketing mix elements of Soap Bar Launderette, it can be
derived that the Soap Bar Launderette projects high competition for OZ Laundromat
Caulfield South due to the value addition of sustainable approach and technological
association. OZ Laundromat Caulfield South needs to transform the business model by
incorporating technological changes and social media presence.

4ENVIRONMENTAL ANALYSIS
SWOT Analysis:
Strengths:
 Self-service with the use of modern IPSO associated technology and equipment for
laundry services frames a simplistic operational framework and offers effective
delivery.
 Pricing strategies such as economy, discounted (occasional) and psychological pricing
can help in sustaining amongst the competition.
 Prime location attracting the majority of the customer base (working, students and
aged customers)
Weaknesses:
 Limitation in the marketing budget for spending in digital marketing
 Lack of energy-efficient equipment and recycled materials leaves a carbon footprint
 Lack of amenities to engage the customers and companions as well as lack of updated
promotional techniques
Opportunities:
 Expanding the facilities near the locality of colleges and offices that will serve the
demand of localities and migrants from other countries
 Adopting a sustainable approach to address the climatic changes of Australia
(Shahbaz, Bhattacharya & Ahmed, 2017)
 The technological investment of Australia grew from 63 billion AUD (2018) to 65
billion AUD (2019), which can be utilized as the source for updating the amenities
and digital presence of the business (Leviäkangas & Kauppila, 2020)
Threats:

5ENVIRONMENTAL ANALYSIS
 Australia attracts and encourages foreign companies with an attractive market and
lower tax rate, which can possess a threat to the local businesses (Carter & Taylor,
2018)
 Increasing local or national competition, for example, Soap Bar Launderette
 Increasing ageing population than working is a concern can cause an alarming
situation for the conception of self-service (Banwell et al., 2018)
Conclusion
Therefore, laundry businesses should concentrate on diversifying their offerings by
adding values for competition amongst the direct and indirect competition. OZ Laundromat
Caulfield South can sustain in the market by assessing their environmental impact and
customer engagement practices.

6ENVIRONMENTAL ANALYSIS
References:
Banwell, C., Dixon, J., Bambrick, H., Edwards, F., & Kjellstrom, T. (2018). The
sociocultural context of climate change adaptation in Australia, with a focus on hot
weather. In Health of People, Places and Planet: Reflections based on AJ (Tony)
McMichael’s four decades of contribution to epidemiological understanding. ANU
Press.
Carter, J., & Taylor, C. S. (2018). Socio-economic factors in companion animal
relinquishment on the Sunshine Coast, Australia. society & animals, 1(aop), 1-19.
Leviäkangas, P., & Kauppila, O. (2020). Digitalisation of industries: a comparative analysis
from Australia and Finland. International Journal of Technology, Policy and
Management, 20(1), 70-89.
OZ-laundromat-caulfield-south.business (2020). [Online] Retrieved from https://oz-
laundromat-caulfield-south.business.site/
Shahbaz, M., Bhattacharya, M., & Ahmed, K. (2017). CO2 emissions in Australia: economic
and non-economic drivers in the long-run. Applied Economics, 49(13), 1273-1286.
Soap-bar.com.au (2020). Soap Bar Launderette - Lots of payment options, Wash in Style!.
Retrieved from http://www.soap-bar.com.au/