Developing a Marketing Plan for Laundrapp Online Laundry Services

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This marketing plan outlines strategies for Laundrapp, an online laundry service, focusing on market entry and growth. It includes a situational analysis using SWOT, a competitive analysis based on Porter's Five Forces, and a customer analysis detailing consumer behavior, trends, segmentation, and positioning. The plan defines marketing objectives such as increasing market share and providing hygienic services. The marketing strategy employs the 4Ps (Place, Product, Price, Promotion), emphasizing affordable pricing and convenient services. Implementation involves allocating tasks, resources, and a budget schedule. Evaluation and control are based on situational, competitive, and consumer analysis, along with the marketing mix strategy. The plan concludes with recommendations for future considerations and threat mitigation.
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Marketing plan
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Table of Contents
Executive Summary..............................................................................................................................3
INTRODUCTION................................................................................................................................3
Situational Analysis (Structure)-..........................................................................................................3
Marketing Objectives- .........................................................................................................................6
Marketing Strategy-..............................................................................................................................6
Implementation- Allocate tasks and resources/ budget schedule.........................................................7
Evaluation and Control-.......................................................................................................................8
CONCLUSION....................................................................................................................................8
RECOMMENDATIONS......................................................................................................................9
REFERENCES...................................................................................................................................10
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Executive Summary
Online Laundry Services is the new business in the market and have very less number of
competitors in the industry. The firm size is small and the number of firms in the industry are very
less. Laundrapp is the company which is using new strategies to launch its product in the market
which makes the company the company different from other companies. The marketing plan helps
the company in making new strategies for the company and how to use those strategies in
implementing the new product in the market. The report covers the situational analysis, competitive
analysis and consumer analysis in order to know the various problems in launching the product in
the market. The report covers also covers the various recommendations to the company while
implementing the product in the market and how to plan for the threats that can come in future.
INTRODUCTION
Marketing Plan is the process where the document is prepared in order to know that what are
the advertising strategy company should use in promoting its product (Marketing Plan, 2019). It
helps in making the market research on pricing decisions of product and in which area product is to
be targeted and which customers are to be targeted. The company decides which area should be
used to promote the company's Product. Laundrapp is the organization which uses mobile apps for
placing the orders from the customers. It provides door-to-door services to the customers by
providing them free delivery services to customers. The main aim of the company is to provide
reliable and healthy services to customers on affordable prices. The report covers the various
analysis done for the company in order to know the various strengths and weaknesses of the
company. It also covers the marketing mix strategy used by the company for the product and what
are recommendations based on the study done for the business.
Situational Analysis (Structure)-
Situational Analysis is generally refers to the market analysis of new product launched in the
market. Online Laundry Services is the product launched by Laundrapp organization. Market
Analysis is done inn order to know what are the strengths and weakness of the market where the
product can be launched (Van Velsen, 2017). It can be done through SWOT Analysis. SW refers to
the Strengths and Weakness of the business and it is present in the internal environment of the
company. OT refers to Opportunities and Threats of the company and these are present in the
external environment.
Internal Environment
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Strengths Weaknesses
Currently, there are many service women
which helps in increasing the demand for
online Laundry services (Belveal, and
et,.al., 2017).
Laundrapp Organization has
differentiated facility from other
companies.
The business has reasonable or
affordable prices for the customers.
As the business is new in market so there
will be higher cost and no profit in the
first few months of Laundrapp
Organization.
Business form is small so it is better to
have good location for the company so
that every customer can reach out the
company easily (Conceição, 2016).
Heavy cost of transferring the delivery
service to customers.
External Environment
Opportunities Threats
Online Laundry Services is the new
business in the market so the business is
having less number of competitors
(Dominish, and et.al., 2018).
Laundry services is having cheaper price
which helps in attracting more number of
customers for Laundrapp Organization.
It is good opportunity for the people who
are busy and have no time for their own
laundry services.
It may happen that big businesses can
enter into the business or they can even
go for franchise business.
The new business idea is very easy and
can be copied by any other business
(Pagadala, 2018).
There is no entry fees or licences
required to enter into laundry business
which is big threat to Laundrapp
organization.
Competitive Analysis-
A Competitor analysis refers to analyse the competitors of the business in order to prepare
the proper strategic plans for competing with the competitors in the market. It helps in preparing
framework for planning, implementing, monitoring and adjusting according to competitors.
Laundrapp can use Porters Five Forces model in order to analyse the various competitors of the
business (Prasad, 2016). This model is used in order to know the various competitors of the
business, substitute of products, bargaining power of customers and suppliers etc.
Threat of New Entrants in Online Laundry Services
Business can be easily copied by any other business or can be used as franchise business by
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big businesses;
There are no huge entry fees or licences required to start the laundry business so anyone can
enter into Online Laundry service business (Spencer, 2015); Capital requirements in the business are very low even with the small amount of maoney
business can be started.
Bargaining Power of Suppliers
There are very small number of suppliers in the industry who supplies commercial laundry
equipments;
Laundrapp Organization cannot switch the from one supplier to another because it needs
high switching costs;
To continue the for the online laundry service business there is huge need of washing and
drying machines; In Online Laundry Business, supplier bargaining power is high than the business because
there are less number of suppliers and huge cost for switching suppliers.
Bargaining Power of Customers
Low cost for switching for customers from one business to other business;
Other bargaining power of customers is that there are lot of students who came out of their
homes for the purpose of studying (Spencer, 2015);
There are many substitute business available for the customers so they can easily transfer
there orders to any other business; In this bargaining power of customers is high than business as there are lot of students and
switching cost for customers is also low.
Threat of Substitute of Product
There is no other substitute of product except that the customers are washing their clothes at
home only.; This is the big opportunity for Laundrapp that there is no other substitute for the product.
Rivalry of existing competitors
Industry growth rate of Online Laundry Services is very low and brand recognition of
industry is also very low;
There are small number of firms in the industry and also the size of firms are also very
small; There is no requirement of additional advertisements for the product because it is the
essential thing for daily routines.
Customer Analysis-
It is the analysis in which the information about the consumers are analysed related to their
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needs and preferences of the customers and accordingly business will be try to make changes in the
products.
Consumer Behaviour Trends
In Laundry business customers wants
that the company should provide time
and cost effective services (Turunen,
2016);
Laundrapp is using affiliated marketing
in which there is positive marketing done
by customers.
Consumer Trends will be increasing if
the customers are again and again
coming for the same service;
Customers will be increasing if there is
positive marketing of the product offered
by the company.
Segmentation Positioning
Laundrapp Organization can be use different
methods for segmentation of product-
Demographic- For both both male and
female
Geographic- Stores of company should
be nearer to schools, colleges, offices etc.
Psycho-graphic- According to the
lifestyles of the public in UK (Wang,
2017).
Behavioural- This segment depends upon
that how many times customers are using
the product.
Laundrapp organization can position their
product by various advertising the product in
hotels, restaurants, nursing houses, hostels etc.
because these are the places where there is high
need of laundry services (Sheppard, 2017).
Marketing Objectives-
The main marketing objective of Laundrapp organization is to increase the market share of
the company, increase the profits of the company by attracting more number of customers etc. The
other objective for the company are to provide good and hygienic services to the customers.
Company wants to position the business as one stop convenient and reliable dry cleaning and most
affordable business which provides reasonable prices for its services. Company is offering mobile
app services for providing orders from the customers which is new technique used by Laundrapp
Organization.
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Marketing Strategy-
Marketing Strategy is the method where 4 P' s are used for the product launched new in the
market. These tools are Place, Price, Promotion and Packaging of the Product.
Place-
Laundrapp organization will not be having any separate rent house for the company and
company will be directly dealing with the customers houses only (Hung, 2017). Company will be
directly taking deliveries and urgent pickups from customers houses which will be help the
company in reducing the cost for the company.
Product-
Laundrapp will be providing free pick up and delivery services to the customers which will
be helping the company in attracting more number of customers to the company. Services will be
provided three times per week and there will be high quality dry cleaning services provided by the
company. Company will also be providing alteration services to the customers in order to attract
more number of customers.
Price-
Generally, the new business set up in the market are having low cost in order to attract more
customers for the company. In this business, there will be need of higher cost for brand awareness
and promotions of the new services provided by Laundrapp (Mariani, 2019). The company will be
targeting to business and professional customers because they pay less attention to prices rather they
want convenient services from the company. It has been observed that only 15- 30% are price
sensitive. High level Income group are pay more attention to features, quality, convenience etc. of
the product.
Promotion-
Laundrapp can use various advertisements for promoting the services provided by the
company. They can use various train stations, newspapers, supermarkets, shopping malls etc. in
order to advertise the services of the company (Lee, and et.al., 2019). Initially, company should also
provide various discounts to the services in order to attract more number of customers for the
company. Company can also issue various vouchers or coupons for the regular customers.
Implementation- Allocate tasks and resources/ budget schedule
It is the method of allocating the various hours and amount of money needed in order to
complete the various processes of marketing Plan. This helps the company in knowing that how
time each process will be taking to complete so that company may know that in how much product
will be launched in the market with proper planning (Schwarzl, 2015). It also helps Laundrapp in
knowing the total budget company needs to complete every process of marketing plan and how
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much amount company needs to launch its new product.
Steps involved in Marketing
Plan
Hours needed in completing
every step in marketing plan
Amount needed for every
completion of step
Situational Analysis
Competitive Analysis
Customer Analysis
Marketing Mix Strategy
48 hours
40 Hours
60 Hours
65 Hours
£120
£80
£150
£160
Evaluation and Control-
Marketing Plan of Laundrapp is being evaluated on the basis of different types of analysis
such as situational, competitive and consumer analysis. Company has also marketing mix strategy
in order to evaluate the product on the basis of 4 P' s. Situational analysis helped the company in
knowing the strengths and weaknesses of the product by internal environment of the company.
Opportunities and threats were used in order to know what are different opportunities that company
can grab while launching its new product in the market. Threats are the early warnings for the
company so that the Laundrapp should be prepared for all the future circumstances.
Company has used porters Five Forces model in order to do competitive analysis of the
Product. This model helps in analysing the different competitors of the company and how to
compete those competitors in the market by pre- planning. Consumer Analysis helped the company
in knowing the buying patterns and behaviour of the customers when product was launched new in
the market. It also evaluates the segmentation of product and positioning of the product by the
company (Jo, 2017). Company uses marketing mix strategy to know that where the products are to
placed and on which price products will be launched in the market.
Company can use the strategy of not taking rent shop for the business rather take the laundry
from the houses of the customer and deliver back the laundry to customers houses. It will help the
company in cost reduction and also help in positive marketing of the company by the customers
(Glende, and et.al., 2016).
CONCLUSION
Laundrapp can summarize from above marketing plan that the industry ha low growth rate
and low brand value in the market. Industry has small number of firms and also the size of the firms
are also small. Company has very less number of competitors in the industry but bargaining power
of both buyers and suppliers are higher than the business (da Silva, 2017). There is no close
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substitute of the product except that the customers who wash there clothes daily at home. Company
wants to achieve its marketing objectives by increasing the market share and profits of the company.
Laundrapp is providing the product at very low price in order to attract more number of customers
for the company. Also, company is providing free door-to-door services to the customers. The
company should target more number of students who are living away fro there homes for study
purpose and also they can target senior citizens in UK. Thus, Laundrapp should launch its product
at reasonable price and should use different channels for the promotion of the product.
RECOMMENDATIONS
There are various recommendations in order to improve the launching of new product by
Laundrapp. These recommendations will be helping the company in increasing the market share of
the company and also help in making brand awareness among the customers. The various
recommendations should be applied by the company are as follows-
Company should huge advertisements from different channels in order to bring bring brand
awareness among the customers who don't know about the product of the company;
Company can initially keep the price of the product low so that more number of customers
can be attracted to the business (Ellmer, and et.al., 2017);
Company should target the senior customers because they have many health issues which
will be opportunity for the company to increase the sale of product;
Firms in the industry should try to keep bonding with each other in order to minimise the
bargaining power of both customers and suppliers of the product;
Laundrapp can also target students who live away from their houses because they are also
opportunity for the company to increase their sales;
Company can also use affiliated marketing which will be helping the company in positive
marketing of the company and also increases the sales of the company;
Company can implement the pre- plan for all the threats which can occur in the future
because of new entrants and existing competitors (Baekeun, and et.al., 2018);
Company should initially issue more vouchers and coupons to the regular customers so that
it will help to increase more number of customers for Laundrapp.
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REFERENCES
Books and Journals
Baekeun, K.W.O.N., and et.al., 2018. Laundry treating apparatus, control method of the laundry
treating apparatus and online system including the same. U.S. Patent Application
15/961.191.
Belveal, B. T., and et,.al., 2017. Interfacing with laundry services and facilities. U.S. Patent
Application 15/267.943.
Conceição, S. C. and Lehman, R. M., 2016. Students’ perceptions about online support services:
Institutional, instructional, and self-care implications. International Journal on E-
Learning. 15(4). pp.433-443.
da Silva, E. C. and Las Casas, A. L., 2017. Sports marketing plan: an alternative framework for
sports club. International Journal of Marketing Studies. 9(4). pp.15-28.
Dominish, E., and et.al., 2018. “Slowing” and “Narrowing” the Flow of Metals for Consumer
Goods: Evaluating Opportunities and Barriers. Sustainability. 10(4). p.1096.
Ellmer, K., and et.al., 2017. Research project Simulation Wäschepflege–Recommendations for
improving resource efficiency in the laundry process in households in Germany. Journal of
cleaner production. 153. pp.539-547.
Glende, S., and et.al., 2016. Increasing the acceptance of assistive robots for older people through
marketing strategies based on stakeholder needs. International Journal of Social
Robotics. 8(3). pp.355-369.
Hung, C. L., 2017. Online positioning through website service quality: A case of star-rated hotels in
Taiwan. Journal of Hospitality and tourism management. 31. pp.181-188.
Jo, M. and Shin, J., 2017. Market strategy for promoting green consumption: Consumer preference
and policy implications for laundry detergent. International journal of consumer
studies. 41(3). pp.283-290.
Lee, C. K. H., and et.al., 2019. Analysing online reviews to investigate customer behaviour in the
sharing economy: The case of Airbnb. Information Technology & People.
Mariani, M. M., Borghi, M. and Kazakov, S., 2019. The role of language in the online evaluation of
hospitality service encounters: An empirical study. International Journal of Hospitality
Management. 78. pp.50-58.
Pagadala, A. and Gupta, R., 2018. PKC Laundries: a start-up business at the crossroads. Emerald
Emerging Markets Case Studies.
Prasad, A. and Warrier, L., 2016. Mr. Porter and the new world of increasing returns to
scale. Journal of Management Research. 16(1). pp.3-15.
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Schwarzl, S. and Grabowska, M., 2015. Online marketing strategies: the future is here. Journal of
International Studies. 8(2). pp.187-196.
Sheppard, J., 2017. Business Disruption: Technological Advancements and Their Appeal to
Consumer Preferences.
Spencer, J., Lilley, D. and Porter, S., 2015. The implications of cultural differences in laundry
behaviours for design for sustainable behaviour: A case study between the UK, India and
Brazil. International Journal of Sustainable Engineering. 8(3). pp.196-205.
Spencer, J., Lilley, D. and Porter, S., 2015. The opportunities that different cultural contexts create
for sustainable design: a laundry care example. Journal of Cleaner Production. 107. pp.279-
290.
Turunen, M. K., 2016. Improving the effectiveness of customer service.
Van Velsen, J., 2017. The extended-case method and situational analysis. In The craft of social
anthropology (pp. 129-150). Routledge.
Wang, J., Zhao, M. and Zhao, G., 2017. The impact of customer cognitive competence on online
service decision-making: an event-related potentials perspective. The Service Industries
Journal. 37(5-6). pp.363-380.
Online
Marketing Plan, 2019. [Online]. Available through
<https://www.investopedia.com/terms/m/marketing-plan.asp>
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