Strategic Marketing Plan Report: CFS Cleaning Company Analysis

This report presents a strategic marketing plan for CFS, a cleaning company, focusing on its market position and growth strategies. The analysis includes a situational analysis, product lifecycle analysis (PLC), BCG matrix, and Ansoff matrix to understand the company's current standing and potential for expansion. The report also defines marketing objectives, brand positioning strategies, and target market segment strategies. It emphasizes the importance of quality service and customer experience. The report recommends market development as the primary growth strategy and proposes continuous improvement of brand image, market penetration, and innovation as key objectives. The brand positioning strategy focuses on high-quality services and customer service. The report offers a framework for measuring the success of the implemented strategies, providing a comprehensive overview of CFS's marketing approach.

UNIVERSITY NAME
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Strategic marketing plan
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1.0Executive summary
The report contains pertinent information regarding the company’s position in the market. It
highlights its strength in the market by linking its good performance in its early stages of
introduction to its superior services compared to the competition. From the analysis carried the
report reveals a number of capabilities that give CFS and edge in the market that enable it to
compete favorably. From the customer analysis the target market has a good purchasing power
that improves the chances of the company to survive in the market and post impressive financial
results. The report also finds out that CFS majorly rely on its quality of services as a marketing
tool that helps it to grow into untapped market through referrals from the existing clients. The
report also indicates that the CFS can easily do well when expanding to new markets instead of
launching new products in the same market it is operating as this market will be already saturated
and my take more resource to realize less revenue for the new product.
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Table of Contents
2.0 Introduction..............................................................................................................................4
3.0Corrected situational analysis....................................................................................................5
4.0Product Lifecycle analysis (PLC)..............................................................................................5
5.0BCG Matrix...............................................................................................................................8
6.0Ansoff analysis........................................................................................................................10
7.0Marketing objectives...............................................................................................................11
8.0Brand positioning strategy.......................................................................................................11
9.0Target market segment strategies.............................................................................................12
10.0Framework for measuring success.........................................................................................12
11.0Conclusion.............................................................................................................................14
12.0References.............................................................................................................................15
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2.0 Introduction
The aim of this report is to a strategic marketing plan for a cleaning company named CFS in
order to continually improve and grow in the market. The structure of the report is such that it
first contains the internal environmental analysis section, stating the vision, mission and the
objectives of the company. It further carries out a number of analyses such as SWOT, customer
and competitor, product lifecycle, BCG and Ansoff analysis which helps to breakdown pertinent
information regarding CFS marketing strategy. These sections are followed by development of
marketing objectives and strategies sections of the report. The report finally lays down
frameworks for monitoring the strategies developed in the report.
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3.0Corrected situational analysis
Insert corrected assignment 2 here.
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4.0Product Lifecycle analysis (PLC)
Consumer behavior/preference and tastes vary depending on the on the stage of the product
lifecycle. The cycle is characterized by increasing sales at the formative stages of the cycle and
diminishing towards the tail end of the cycle. Applying this concept on Crystal Facility Services
product the outcome reveals unique features of each of the four phases of the company’s product
lifecycle. On the first stage of the cycle the product was provision of cleaning and maintenance
services for both residential and commercial market. This service was offered to this particular
market niche as it possessed greatest potential for the company to expand and grow within the
desired pace and expectation. The price of the service/product was set at a fair range in order to
attract the customers during the early stages of the product in the market. Crystal Facility
Services is aware of the fact that matching the best quality of the services offered with fair
pricing is likely to attract a lot of clients for the company as it seeks to gain a considerable size of
the cleaning services market share in its early stages of its lifecycle. The company also sought to
disseminate information about its product identity as well as it’s pricing to the market by
carrying out targeted promotions for both the residential and the commercial market segments.
The promotion was done by offering reduced prices for clients who gave a long term cleaning
contract to CFS. (Dolan, Dobscha and Mick, 2012) According to analysis done by CFS a contact of
one year and above constitute a long term contract and thus any client who offered a cleaning
contract to CFS of more than one year benefited from the offer. For those clients gave short term
contacts i.e. of less than one year and above were offered customized prices according to the size
of their work but prices a bit higher compared to clients in long term contracts. The idea behind
this strategy was to give the company stability in terms of client flow which will enable it to
survive in the market during its formative years after introduction. The company also did a
targeted marketing by pitching the product to the right market. For commercial cleaning services
CFS targeted large corporate such as banks with large branch network that will offer CFS a bit of
a bulky work and ensure good flow of work for the company. For residential cleaning services,
the company marketed in residential places such as gated communities where the occupants
where likely to procure the cleaning service of the company. (Hawkins and Mothersbaugh, 2014)
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With time, CFS cleaning services (the product) morphed into growth stage. At this stage the
product has undergone a number of changes from its initial form based on the feedback the
company received from the clients. To be more specific the company started using different
types of detergents on different clients according to their likes and preferences. There were some
who wanted scented detergents while others preferred non-scented ones such as the banks who
were keen to maintain conducive environment to everyone. At this stage also the pricing become
more stable and a bit high compared to the first phase as the company experienced influx of new
clients pushing demand for the services up. On the promotion the company at this stage focused
on delivering exceptional work to the existing clients who in turn recommended CFS clients to
other companies and individual clients. The place at this stage was maintained at exposing the
product more to the corporate clients and high end residential areas where the company could
easily get clients.
On the third stage of the product lifecycle, the maturity stage, the product had undergone nearly
all the modifications needed according to the client’s feedback received by the company. At this
point there were fewer requests for modification of the kind of service CFS was offering. The
price was also set at the optimum for the new incoming clients and adjusted upwards for
companies whose contracts needed renewals. The product promotion was basically dependent on
the quality of service the company was offering as the competition was struggling to match CFS
quality in terms of customer service and experience. For the place, CFS continued to focus on its
key target market i.e. corporate clients and high end residential areas. At this point the company
must ensure that it maintains high standard of service delivery as it is the only aspect that gives
its brand a strong position in the market. (Lovelock and Wirtz, 2016)
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On the final phase of the cycle, the decline stage, the product was in perfect condition all that a
new client will do was to choose the kind of services they needed according to their size,
industry and other parameters. The product was receiving less and less sales but since it’s a
service industry renewal was much like a new sell. The Price was also set at optimum for this
stage while the Promotion and Place were retained as in the maturity stage. Below is a
diagrammatical representation of the four stages of CFS product lifecycle. (Slater, Hult and Olson,
2010)
Sales
Time
Introduction Growth Maturity Decline
Fig 1.0 showing sales- time relationship for each of the phase of the product lifecycle
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5.0BCG Matrix
Applying the BCG analysis on CFS, the outcome reveals where each product of the company
within the four quadrants of the BCG graph. The graph basically assigns a product a certain
quadrant based on its performance in the market. CFS targets commercial and residential markets
with strong purchasing power. The company’s cleaning and maintenance service in commercial
category is falling under the ‘star’ phase of the BCG matrix as it is operating in high growth
market and has high market share. On residential markets the analysis reveals that this kind of
product is falling in the low quadrant has it is operating in high growth market but posting low
performance if comparatively compared to the purchasing power of its market niche. CFS has no
products in the remaining two phases of Cash cow quadrant, where the product is enjoying a lot
of success in the market and dog quadrant where the product is badly struggling in the market.
Below is a pictorial representation of BCG matrix analysis on CFS products. (Walker et al., 2013.)
Low quadrant (Cleaning services residential
category)
Star quadrant (Cleaning services commercial
category)
Dog quadrant (No product for CFS) Cash-cow quadrant (No product for CFS)
Table 2; Shows pictorial representation of BCG matrix analysis on CFS products
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6.0Ansoff analysis
Carrying out Ansoff analysis on CFS product reveals the following outcome; on the first
quadrant, the lower left quadrant, market penetration, CFS has an option of expanding its sells
within the existing market. Cleaning services is one of the sensitive areas that many
organizations are keen on getting it right as it has potential to severely damage its reputation.
CFS therefore under this strategy of expanding sells has an easier route to meeting its sells
objectives. Product development in the lower right quadrant may pose a bit of challenges to CFS
because it means it has to introduce new product in the existing market. Even more challenging
and riskier to CFS is market development quadrant where the company is required to introduce
same product in entirely new market. (Houliez, 2010)The last quadrant, the diversification
quadrant, calls for CFS to introduce new unproven product in a new market. Comparing the four
options in finding a new way of improving on sales and profits, the outcome reveals that the best
way to achieve this goal for CFS is through market development because the company has
requisite experience in introducing new products in the market having done successfully when it
begun operations. They have also continually refined the product thus the new market will likely
receive it well. Further to this the current market for CFS is already saturated and it will take a
lot of resources and time to try and introduce a new product similar to what they already have.
Below is diagrammatical representation of Ansoff analysis on CFS product sales strategy.
(Hooley et al., 2014.)
New Market Development
Market
Diversification
Existing
Market Penetration Product development
Existing Products and services new
Fig 3; Ansoff analysis on CFS products sales strategy
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7.0Marketing objectives
Based on the outcome of the above analysis on the CFS products, the following are the
marketing objectives of the company.
(a) Continuous improvement of the CFS brand image in the market
(b) Penetrating new market for the existing product
(c) Meeting set sales target for the company
(d) Enhancing customer experience and service
(e) Innovating new products for the market
8.0Brand positioning strategy
The company will develop a brand position strategy for complete portfolio of its products. CFS
will want to let all their target customers know that as CFS we offer best quality services and
customer service coupled with fair prices in the market. We want them when they think of CFS
cleaning services, best quality services comes in their mind. This is the position we want to
occupy in the target market’s consumer mind. (Varadarajan, 2015). This would be a brand position
for both our commercial and residential cleaning services. Therefore the company will develop a
brand positioning for a complete portfolio products as an appropriate brand positioning style
because this way customers can easily associate both our products with higher quality and
customer service compared to the competition. The figure below displays brand positioning map.
(International marketing strategy, 2012)
High quality
CFS commercial cleaning services
CFS residential cleaning services
Low price High price
Low quality
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Fig 4; is a brand positioning map for the CFS products.
9.0Target market segment strategies
Sales strategy
Under this particular strategy the company will from time to time offer discounts to both
segment of its market that is the commercial and the residential segments of the market. The
strategy will also seek to give lower prices for clients who give long term contract to the
company as this ensures good flow of work for the company. These marketing mix programs for
both market segments will give optimal result for the company.
Marketing strategy
Our main marketing strategy is to deliver exceptional work to our existing clients who in turn
will recommend our services to other persons of influence within the market. This will be
reinforced by CFS by carrying out marketing messages containing feedback from all our clients
as they will be happy with our services. This strategy is aimed for both the commercial and high-
end residential market segments. Mixing our marketing messages with feedback from the clients
is likely to lead increased sales for the company. (Chaffey, 2011).
Promotion strategy
Under this particular strategy the company will from time to time run a promotion campaign that
give our existing and new clients an opportunity to win free cleaning services from CFS for the
period of six months. An individual or a firm will only be eligible to participate after signing a
cleaning contract with CFS of more than six months. This promotion strategy is also aimed for both
segments of CFS market that is commercial and residential. (Chaffey, 2011).
Competition strategy
CFS will always strive to maintain a good rapport with its clientele (residential and commercial)
by offering the best quality of services as possible and mix this with excellent customer services.
This way the company understands that competition will struggle to emulate CFS services as
customer services and quality work is as a result of careful human resource recruitment and
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