Marketing Principle Report: Babysitters/Nannies Online & Urban Sitter

This report outlines a comprehensive marketing plan for Babysitters/Nannies Online and Urban Sitter, focusing on the Cyprus market. It begins with an executive summary and includes a rationale for the new product, emphasizing the benefits of online nanny services and a babysitting app. The report conducts a situation analysis using Porter's Five Forces, SWOT, and PESTLE analyses to assess the competitive landscape, internal strengths and weaknesses, external opportunities and threats, and the political, economic, social, technological, legal, and environmental factors. The marketing strategy includes demographic segmentation, targeting high-income families, and positioning the service with the tagline "We value safety and transparency above all." The report explores Porter's generic strategies of cost leadership, differentiation, and focus, alongside a detailed marketing mix covering product, price, place, and promotion strategies. Implementation and control measures are proposed, including initial marketing initiatives, digital communication, and feedback collection to enhance service quality. Finally, the report includes budget considerations and a plan for monitoring marketing activities, consumer feedback, and return on investment.

Running head: MARKETING PRINCIPLE
Marketing Principle

MARKETING PRINCIPLE 2
Executive summary
The main aim of this report is to make the marketing plan for Babysitters / Nannies online and
urban sitter. It is found that SWOT assessment is used to assess the strength, weakness,
opportunity, and threat of the company. It is also evaluated that PESTLE analysis is practiced to
measure the country’s condition. This report also demonstrated that Babysitters / Nannies online
and the urban sitter will segment business class family and high-income family to influence the
customers. It is also found that undifferentiated targeting strategy would be used to target the
customers. Furthermore, the differentiation strategy will use to attain the marketing objectives in
the targeted time period. It is evaluated that implementation and control measures will be used to
implement the plan in an effective manner.

MARKETING PRINCIPLE 3
Table of Contents
Executive summary.....................................................................................................................................2
Part I: New Product Development and Rationale........................................................................................4
The rationale for a new product...............................................................................................................4
Business Mission.....................................................................................................................................4
Situation analysis.........................................................................................................................................5
Porter’s Five Force Model.......................................................................................................................5
SWOT Analysis.......................................................................................................................................5
PESTLE analysis.....................................................................................................................................6
Part II: Strategy, budget, implementation, and controls...............................................................................7
Marketing objectives...............................................................................................................................7
Strategy...................................................................................................................................................8
Demographic Segmentation.................................................................................................................8
Targeting.............................................................................................................................................8
Positioning...........................................................................................................................................8
Porter’s generic strategy......................................................................................................................8
Marketing Mix.......................................................................................................................................10
Budget.......................................................................................................................................................11
Start-up cost...........................................................................................................................................11
Profit and loss........................................................................................................................................11
Implementation and control measures.......................................................................................................11
Controls.....................................................................................................................................................12
References.................................................................................................................................................14
Appendix...................................................................................................................................................16
Exhibit 1: Start-up cost..........................................................................................................................16
Exhibit 2: Profit and Loss......................................................................................................................16

MARKETING PRINCIPLE 4
Part I: New Product Development and Rationale
The rationale for a new product
Babysitters / Nannies online
The key benefit of developing the babysitters/nannies online and Sitter Babysitting App is to
gain the profit. For matching the nannies with family, the company completes the applications.
The application reviews involve every aspect related to home life that can impact on the
placement of nanny. It involves responsibilities and duties, living conditions, personalities,
benefits, general health of children, ages and behavior of children, any special needs, and more.
People can review the skills and work history and interview with nannies to determine the
interests and temperament and types of employment that they can discover ideal. This procedure
permits a company to make a placement that is best for both nannies and the family and one that
could be long-lasting (Nannies Inc., 2018). In the rare instance, while something does not work
out, the company are there to help the family.
Sitter Babysitting App
This app will be beneficial for every childcare needs such as part-time sitter and a full-time
nanny, backup childcare, last-minute sitters, occasional babysitters, and day-night babysitters.
This app would focus on searching or post a job for free, book and pay sitters with ease, sitters
keep 100% of agreed on rate, flexible pricing strategy to contact nannies and sitters, and never
worry regarding childcare again (Urbansitter., 2018).
Business Mission
The mission of Babysitters / Nannies online and Sitter Babysitting App is to develop the
application for hiring nannies and influences the high amount of customers for using the services
of the company in long-standing.

MARKETING PRINCIPLE 5
Situation analysis
Porter’s Five Force Model
Bargaining power of buyers
Babysitters / Nannies online and Sitter Babysitting can face high bargaining power in Australia
because of availability of the same products and services. It can gain the chances of switching
cost of purchasers in long-standing (Lovelock, and Patterson, 2015).
Bargaining power of Suppliers
The bargaining power of suppliers is lower because of the existence of different substitutes at the
marketplace. Hence, suppliers should focus on the customers by creating a favorable image and
makes a good relationship with suppliers to negotiate on products and services (Belanger, and
Bredesen, 2018).
The threat of New Entrants
The nannies industry is costly hence; entrepreneurs will not invest in such type of business. It
demonstrates that Babysitters / Nannies online and Sitter Babysitting have a low threat from new
entrants because of high bargaining cost (Seraphin, et. al., 2016).
Threat of substitutes
There is quite threat from substitute product that could be beneficial for a company to effectively
deals in the Cyprus market.
Rivalry among existing competitors
There is higher competition between existing competitors, hence, it can be stated that a company
can face issue to compete with the current competitor and creates a favorable image at the
marketplace (Huotari, and Hamari, 2017).
SWOT Analysis

MARKETING PRINCIPLE 6
Strengths
• Demonstrating nannies
• Different benefits for upcoming
consumers
• It offers significant nannies
experiences to their consumers.
Weakness
• Higher Expenditure
• Could not be affordable by each
Cyprus customers
Opportunities
• Increasing Cyprus population
• Considerably accepted by Cyprus
populations
Threats
• Threats from advanced technology
used in Cyprus
• Lack of approval by the government
of Cyprus because of higher expenses
(Zeng and Honig, 2016).
PESTLE analysis
The following table demonstrates the PESTLE analyses:
Factors Evaluation
Political  The Cyprus government is stable that
could be beneficial for developing the
business in Cyprus.
 Support of government to initiate new
business (Conaway, and Garay, 2014).
Economic • Economic stability provides the
chances to Babysitters / Nannies online
and Sitter Babysitting to develop new

MARKETING PRINCIPLE 7
business.
Social • A large number of family members is
working in Cyprus as they find nannies
for their kid's care.
Technical • Technology advancement of Cyprus
provides the opportunity to the business
of Babysitters / Nannies online and
Sitter Babysitting (Grönroos, 2016).
Legal • The legislation of Cyprus provides the
opportunity to new business in Cyprus
nation
Environmental  The environment-friendly technology is
practiced by Babysitters / Nannies
online and Sitter Babysitting (Rust, and
Huang, 2014).
Part II: Strategy, budget, implementation, and controls
Marketing objectives
 To increase customer demand by using marketing initiatives by 25% within the next 12
months
 To gain market share by using digital technology by 35% within the next 6 months
 To increase the revenue by using effective strategy by 25% within the next 9 month
Strategy
Demographic Segmentation

MARKETING PRINCIPLE 8
For this application, Babysitters / Nannies online and Sitter Babysitting will make segmentation
as per the demographic factor. In such manner, they will select to working families for selling
their services. In addition, both will segment as per the demographic factor. Moreover, it would
segment as per the income level where they choose high-income level families. Furthermore, it
will classify the customers as per their social status where the upper class of people would be
selected (Chaston, 2014).
Targeting
It would use undifferentiated targeting marketing approach where Babysitters / Nannies online
and Sitter Babysitting will use same marketing mix for their targeted customers like families
with upper class with high income (Barnett, Keeling, and Gruber, 2015).
Positioning
Babysitters / Nannies online and urban sitter can create a favorable image in the mind of the
customer by using the influencing tagline like “We value safety and transparency above all”.
Porter’s generic strategy
(Sources: Barnett, Keeling, and Gruber, 2015).
Cost Leadership

MARKETING PRINCIPLE 9
The cost-leadership can be an effective strategy for Babysitters / Nannies online and urban sitter
that is proficient to continuously reduce the expenditure of performing the business. In such
manner, it can generate maximum profit margin by providing the industry average prices rather
than using the low-cost foundation. It would aid to increase the market share of the company
(Chaston, 2014).
Differentiation
The key intention of implementing this strategy is to assess the customer’s need, designs and
develops the quality of products and services that match with the requirement of markets. There
are certain strategies for using a differentiated approach like unique features, quality of products
and environmental accountabilities and influential services (Grönroos, 2016).
Cost Focus
This focused approach can be beneficial for Babysitters / Nannies online and urban sitter in
terms of penetrating into the Cyprus country. The company can execute this approach because it
has sufficient resources to engage in marketing practices. This focus can depend on cost or
differentiation. The intention of implementing this strategy is to sustain in the Cyprus market
(Conaway, and Garay, 2014).
Differentiation Focus
Under this strategy, Babysitters / Nannies online and urban sitter can promote the best choice of
nannies services by hiring the educated workforces. This could be beneficial for persuading the
business class customers. This strategy could enable the Babysitters / Nannies online and urban
sitter to create strong loyalty due to a particular focus on the requirement of a specific set of
consumers (Rust, and Huang, 2014).
Marketing Mix

MARKETING PRINCIPLE 10
Product strategy
Babysitters / Nannies online and the urban sitter will develop the App with the unique design. It
would involve nannies services and kids care. They will also provide 24*7 hours services. This
product would be endorsed by popular celebrities of Cyprus (Huotari, and Hamari, 2017).
Price strategy
Babysitters / Nannies online and the urban sitter will use premium pricing strategies due to
quality services. It is a premium brand as the positioning of this brand would be high. Hence, it
will charge a high rate due to offering the finest services (Zeng and Honig, 2016).
Place Strategy
Babysitters / Nannies online and the urban sitter will use the online channel in all over Cyprus. It
would be beneficial for pulling the attention of the bulk of customers. This channel would also
enable the company to directly deal with the end-users. Thus, it can be evaluated that direct
interaction with the consumers will have offered the chances to gain the demand of consumers in
a targeted time period (Norton, 2017).
Promotion Strategy
Babysitters / Nannies online and the urban sitter will endorse their services via digital media
channels so that it would be effective to influence the high amount of consumers. In such a way,
it can practice several social media techniques such as Facebook, Twitter, and YouTube.
Promotion strategy can be effective for the company as it would aid to improve the financial
position and productivity of a company (Thomas, et. al., 2018).
Budget
Start-up cost

MARKETING PRINCIPLE 11
Resources Amount (EUR)
Renovation of the building 2,114,000.00
Furniture 1,606,000.00
Transport 865,500.00
Nannies 110,000.00
Human resource manager (10 officials*$20,000) 200,000.00
child therapist 104,500.00
Total Start-up cost 5,000,000.00
Nannies online and Sitter Babysitting App: Resource Requirements
Profit and loss
2018 2019 2020
Revenue 1635000 1798500 2158200
Miscellaneous income 0 179850 215820
A. Total amount 1635000 1978350 2374020
B. COGS 899250 809325 971190
C. GP (A-B) 735750 1169025 1402830
D. Operating Expenses
Salary to nannies 110000 110000 110000
Rent of office 96000 99840 104832
Utilities 8000 8400 8820
Insurance 1000 1050 1102.5
Depreciation 247150 271865 299051.5
Marketing of Nannies online and Sitter Babysitting App 9500 11875 14843.75
Maintenance & Repairs 4000 4200 4410
Other 3500 3640 3785.6
Total 479150 510870 546845.35
Operating profit 256600 658155 855984.65
Less: Interest 90000 81000 69000
Profit before tax 166600 577155 786984.65
Less: Tax @ 30% 49980 173146.5 236095.395
Net Profit AT 116620 404008.5 550889.255
Amount (EUR)
Nannies online and Sitter Babysitting App
Profit & Loss Statement
Implementation and control measures
Babysitters / Nannies online and the urban sitter will use the given below procedure to
implement the marketing objectives:
Initial phase
Babysitters / Nannies online and the urban sitter will predict EUR 5,000,000 to promote the
services and also generates awareness between nannies of the company. In addition, this

MARKETING PRINCIPLE 12
company will develop a market survey before expanding the business as it would be effective to
address the need of customers (Gonzalez-Padron, 2017).
Second phase
Babysitters / Nannies online and the urban sitter will initiate to interact with the consumers
through digital communication sources. It would be effective to generate awareness between
large numbers of consumers regarding the nannies for kids care. It would apply certain social
media modes like e-mails, Snapchat, Instagram, Facebook, Twitter, and LinkedIn. This phase
will support the company to meet the marketing objectives (Zeng and Honig, 2016).
Third phase
Babysitters / Nannies online and the urban sitter will collect the feedback through the consumers
with respect to their experience with nannies. It would be beneficial for avoiding the concerns
that have created in services. Thus, it would be beneficial for Babysitters / Nannies online and
urban sitter to enhance the service quality in long-run (Barrow, 2016).
Last phase
In this phase, Babysitters / Nannies online and the urban sitter will aid to make a decision about
unfavorable comments that have collected through consumers. In such manner, the company can
make an effective strategy to avoid the unfavorable comments. Thus, it would be effective to
gain the revenue of a company in Cyprus market (Thomas, et. al., 2018).
Controls
Marketing initiatives
A marketing manager can maintain the record of marketing activities as well as can record the
different aspect of initiatives like generate responses, media used, timing and cost of promotion
and return on revenue.