PAMANTASAN NG LUNGSOD NG PASIG

FastClean Team Self-Service Laundromat

A Marketing Plan

Presented to the Faculty of the College of Business & Accountancy

Pamantasan ng Lungsod ng Pasig

In partial fulfillment

Of the Requirements for the Subject

Marketing Management

By:

CRUZ, HAZEL ANN A.

PARAGAS, CASSANDRA D.

SINIO, JEAN DARLYN D.

April 2019
 PAMANTASAN NG LUNGSOD NG PASIG

Table of Contents

Chapter 1 Executive Summary ……………………………………………..

Executive Summary……………………………………………......

Chapter 2 Situational Analysis ………………………………………………

Market Summary, Demographics, Needs & Trends…………………………...

Strength, Weaknesses, Opportunity, Threats (SWOT)………………………...

Competition………………………………………………………………….....

Service offering…………………………………………………………………

Distribution…………………………………………………………………......

Critical issue…………………………………………………………………….

Chapter 3 Marketing Strategy………………………………………………..

Objectives……………………………………………………………………….

Target Market …………………………………………………………………..

Positioning…………………………………………………………………........

Strategies…………………………………………………………………………

Marketing research……………………………………………………………….

Chapter 4 Target Market……………………………………………………….

Financial Assumptions…………………………………………………………….

Source of Financing……………………………………………………………….

Projected income statement………………………………………………..

Initial Capital Requirements………………………………………………

Gantt chart……………………………………………………………………..
 PAMANTASAN NG LUNGSOD NG PASIG

Chapter 1
Executive Summary

Upon entering the laundry industry, FastClean Team is a kind of full-service laundry

which provides the washing and drying of clothes in a very efficient manner in different areas

of Pinagbuhatan, Pasig City.

The objective of FastClean Team is to provide the best and quality laundry services

that strives to ensure complete customer satisfaction. We visualized that the scope of the

services is fast and around the Pinagbuhatan, Pasig City where the shop is located. FastClean

Team intends to offer affordable “luxury” laundry experience to all, that way differ from the

other laundry shops in the area. High quality service that is made for everyone. Providing an

internet connection with a comfy and good ambiance is one of our assets that could possibly

catch the attention of our target market/ customers. With the help of the Market Strategies it

could easily spread the business in the Market.

FastClean Team’s goal is to provide the customer with the most pleasant laundry

experience in the Pasig City area. We exist to attract and maintain customers. With the

adherence to the customer and having a superior service will allow the FastClean Team to

quickly gain market share, therefore success will be ensure and on track.
 PAMANTASAN NG LUNGSOD NG PASIG

Chapter 2

Situation Analysis

The Laundromats industry includes companies that offer on-premises coin- or card-

operated washers and dryers, as well as companies that operate self-service laundry and dry-

cleaning equipment in apartments, dormitories and similar locations. Increased disposable

income has led to rising competition from both household laundry machines and drop-off and

pickup laundry and dry-cleaning services. FastClean Team is a recently established self-service

laundry business who aims to give its customer a quality of service with an affordable price.

The industry has competitive challenges, however the company believed it will help them to

progress and grow.

Market Summary, demographics, needs and trends

The Laundry situation in the Philippines, specifically in the area of Pinagbuhatan,

involves families piling clothes at the end of the week to hand wash, excessing use of water

due to home washing machine, and people with no time to spend on themselves and their

families. FastClean Team offers affordable and high-quality service laundromat. FastClean

Team is open to any customers who wants to avail their service.

Demographics

Common customers who come and pay for the self-service laundry are first, individuals

who are busy with their professional career, second, customers who are lazy or do not want to

do the laundry chores and lastly, housewives that has big families.
 PAMANTASAN NG LUNGSOD NG PASIG

Needs

 Clean Facility - FastClean Team provides a decent and comfortable laundry

facility.

 24/7 service during weekends - Customer’s only free time are only weekends,

FastClean Team offers the 24/7 self-service during weekends, therefore the

laundry shop can accommodate all of customer’s needs

 Modern Technology – technology has driven down the costs of equipment that

offer technological efficiency. Also, using the technology it reduces the

dependence on human labor.

Trends

Laundromat is now advancing in resources and management attitudes that are

beginning to drive the industry. With more efficient machines, Internet access, and a new focus

on customer satisfaction, laundromats are becoming increasingly automated, resulting in less

overhead and more profit. Listed below are the trends in the laundry industry.

 Atmosphere and Comfort

The shop didn't only focus for the profit but rather about the satisfactory

of the valuable customers. The shop seeks for transforming the usual crowded,

impersonal and dimly lighted laundromat into more improve stylish and

comfortable facility with an array of features that gives a blissful experience to the
 PAMANTASAN NG LUNGSOD NG PASIG

customers. Having large-screen TVs, free Wi-Fi, modern vending machines, stylish

décor, and comfortable seating make doing laundry a more pleasant experience.

 Upgrading Equipment

By making the choice to switch out your commercial laundry equipment

for a low-water wash system, you can save water, energy, and limit chemical costs

all at the same time.

 Increase Focus on the Customer Experience

How do commercial laundry services stay competitive in today's market?

By focusing on the details and offering a superior customer experience, from start

to finish. Today's consumers have an incredible field of options when it comes to

purchasing laundry services, and the industry has noticed. Whether through

increased options, business updates centered around convenience—pick up,

delivery, extended hours, etc.—or use of a gentler wash and fewer harsh

chemicals to improve the quality of their wash, more and more commercial

launderers are distinguishing themselves by working to provide that extra level

of service to customers. That's the kind of competition that drives the entire

industry to improve.
 PAMANTASAN NG LUNGSOD NG PASIG

 Track and Limit Utility Usage

Recent advancements in technology have given commercial laundry

businesses something they've never had before: the ability to actually track and

analyze utility usage and other key metrics of their laundry operations.

By utilizing the available software solutions, and taking a more active approach

to utility usage, laundry business can measure the impact that usage is having on your

expenses and make changes.

 Go Green

Touching upon green initiatives are taking place and will continue in the

future to improve the laundry process. Attracting new customers, or impressing

current customer base, "green" cleaning methods is the way to go. The method

that was once considered expensive and difficult change for the laundry industry

is now a much more common occurrence and something that potential customers

actively search for.

 PAMANTASAN NG LUNGSOD NG PASIG

SWOT
The following SWOT Analysis captures the key strengths and weaknesses within the
company, and describes the opportunities and threats facing FASTCLEAN.

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

Modern equipment Limited flexibility in Minimal time and Competition

and technology Pricing labor

Our equipments Our prices are fixed. Does not require such We have various
are advance and time and effort numbers
high-technology. in obtaining of competitors.
the laundry service.
Well capitalized Competitors can
Participation in a Seasonal market
offer similar service
steadily growing
We are capable in The competitors industry There are times that
producing enough around the area canThe business is the demand in service
capital for our also provides the meeting-up the is seasonal.
same service we competitiveness of
business.
have.
laundry industry.
Quick service New to the laundry Consistent market Habit of washing
industry: demand clothes
It is a one-stop
laundry care service Does not have A lot of people now There are people who
that can do within 65 enough experience. are taking do not needs laundry
opportunities to try service in washing
mins.
quick laundry service their clothes.
Reasonable Prices Hours of operation Location of the Competitor’s kind
service of service
The pricing is The laundry shop
affordable for our only 8 hours of The shop is located The competitors can
target customers. business operation populous area in offer some services
that our business
during weekdays. Pasig City.
cannot.
 PAMANTASAN NG LUNGSOD NG PASIG

Comfortable Expenses Growing city Water shortage

laundry shop population
The type of our People moves from During dry season
The ambiance of shop business has a lot of one place to another water supply is
is made comfortable expenses especially place. So, the shop interrupted.
to the customers. takes this
in utilities and
opportunity.
maintenance.

2.3. Competition

To be successful in the laundry industry, the business must keep track with

competition. After all, there are only a limited number of potential customers in the

area: people who lack a personal washer and dryer and need a public laundromat to

clean their clothes and linens. Losing these customers to the competition or stealing

customers away from the competition can have a great impact on revenue. In

maintaining and growing customer base, business must be better than the competition.

The more you know about it, the better. Competitors of FastClean Team self-service

laundry shop has the same services offered, located in residential/ passageways areas

and also offers same price on services. However, FastClean Team has more to offer

than the competitors. The shop offers 24/7 service during weekends, has a high-quality

equipment, well ambiance and atmosphere and accommodating employees To compete

with other laundromats, the laundry shop have to keep your eyes and ears open.

Regularly evaluate competition, check in from time to time, and pay attention to any

new stores that open in the area.

 PAMANTASAN NG LUNGSOD NG PASIG

Service Offering

The FastClean Team are offering laundry services of wash and dry. We have different

ranges amount of weight laundry with an affordable price of ₱120/ 8KG, ₱180/12 KG and

₱240/16KG that our customer can avail. Aside from providing a quality service, we are also a

customer-centric laundry shop, the FastClean Team will pamper its potential customer by

giving them a Free internet connection while waiting for their all clean laundries.

Distribution

The business will use a direct distribution strategy. It will not make use of

intermediaries or distribution agents.

FASTCLEAN CUSTOMER
TEAM
 PAMANTASAN NG LUNGSOD NG PASIG

Critical Issues

These are the critical issues that must be addressed by the organization in its service

offerings, strategy and distribution channel.

 No Delivery – FastClean Team is a self-service laundry business, consequently the

customers will wait for the clothes to be done cleaning.

 Challenges in the backend – Out of every 100 customers, there will be at least

one unsatisfied one. While they can be easily attracted by offering discounts and

through online and offline marketing, retaining them is the challenge.

 Water Interruption - During the Dry Season, the waters in Dams are dropping in

its normal level resulting to shortage.

 Long Queue – FastClean Team has many customers availing the laundry service.

Thus, a long queue of customer is piled up inside the laundry shop.

 PAMANTASAN NG LUNGSOD NG PASIG

Chapter 3

Marketing Strategy

The main point of the FastClean Team is to satisfy the valuable customers when it

comes to the services offered. FastClean Team focuses on the easier way of laundry service to

the potential customers that leads to the high-quality laundry experienced in an affordable price

for accommodation of the target market. Creating an impact to the society when it comes to

the laundry industry.

Objectives

The objectives of the Fastclean Team’s Laundry Shop are:

 Grow total sales of 10% annually

 Dedicated to comply the client’s satisfaction

 Be able to expand the Laundry Shops in the region on what the Fastclean Team

shop chooses.

 To be present in all target markets

 Ensuring the cleanliness of the environment, reliable machineries and prompt

services
 PAMANTASAN NG LUNGSOD NG PASIG

Target Market

The market can be segmented into one main group and one minor group. The main

group are the households with a big numbers of family members and an individual customer

that is busy enough to do their laundries. A small group of customers will be low-income

individuals and families that do not have laundry abilities at their home/ apartments.

Demographics:

Population Census of Pinagbuhatan

Year Population Target Market

2019 201,251

2020 285,653 5%

2021 305,032 15%

2022 395,213 25%

Positioning

FastClean Team will position itself as a clean, customer centered, convenient and

reliable one stop laundry care and management business. It will strive for open, stable and

good quality relationships with its target market and other business prospects. The desired

positioning will be achieved by leveraging their competitive edge: FastClean Team’s

competitive edge is the customer-centric facility. The storefront is relatively quiet and always

clean creating an atmosphere conducive to getting work down.

 PAMANTASAN NG LUNGSOD NG PASIG

Strategies

Getting the attention of the customers is one of the Fastclean Team’s goals, to be renowned

to the people. Offering the client, a valuable long-term service at the same time a place where

they can relax and meet other people. Additional strategy use includes offering the customers

the choice of their own detergent soap and fabric conditioner instead of sticking with the usual

laundry soaps that the majority of the shops within the area use. Making the laundry experience

exceptional from others in a luxury and exquisite manner of service but in an affordable way

that anyone can accommodate with.

a. SERVICE

Fast Clean Team will give the customers guarantee that once they step inside the

shop, they are in the safe place and the employees, high quality machines,

comfortable ambiance, and cleanliness of environment will be fulfilling their

needs. Fast Clean intends to offer affordable "luxury" cleaning to all.

b. PRICING

Price is a major factor of any firm and it is important as it determines the Fast

Clean Team’s profit and survival. Adjusting the price has a service impact on the

marketing strategy and it will often affect the sales as well. Fast Clean provides

such facilities at such cheapest price.

c. DISTRIBUTION

FastClean Team is a self-service; therefore, the customers are the one who will go

to the Shop. Yet, to further gain and persuade new customers to go to the Shop,
 PAMANTASAN NG LUNGSOD NG PASIG

the FastClean Team could use the selected strategies. In some cases, such as the

"total laundry package promo" of the FastClean Team, the personnel are assigned

to pick the lucky customers' laundries at the house, bring it to the Shop and after

implementing the promo, it will be delivered back to the house of customers.

d. Marketing Communication

Marketing communication is a strategy to any firms to convey messages about their

product, brands, and services they offer or sell. It is to create the brand awareness among the

potential customers. Fast Clean used the following for their Marketing Communication:

1. Advertising

2. Sales Promotion

3. Direct Marketing

4. Interactive Marketing

5. Word-of-Mouth Marketing

Marketing Research

A business must be engaged in a variety of task for it to be successful. One of those

tasks is market research. Market research is the process of assessing the viability of the service

through information gathering and research. Market research is conducted directly with the

customers which allows the Fast Clean to discover the target market and be able to record the

opinions and other inputs of customers regarding their interest in the service. The type of
 PAMANTASAN NG LUNGSOD NG PASIG

research that the FastClean Team used was the survey that was handed to the people nearby

the shop. The results of the survey were quite illuminating.

According to Laurens, Henry (1917) dry cleaning was first introduced in the

Philippines after world war 2 because of the influence of western countries. The supply of

water and electricity become adequate so the Filipino people began to adopt the means of

operating a commercial laundry service. Man, commonly adopts the laundry services since the

existence of civilization cloth care and outfits and also the fabric is more likely to be evolved

because of the past faced of fashion trends is in the attitude of the people especially in dealing

with their social life, likewise in their professions and lifestyle. Laundry shop is a kind of

business that deals with common competition such as service quality with cloth care, fabric

and apparels, many people trust this kind of services that rendered in such enterprise because

of the assurance for good handling is guaranteed, also good services and keeping standard

managerial styles are being offered and been enhanced through time. Keeping cloth clean is

always a problem of housewife and a business that concern in fabric may solve this problem

by the means of commercial laundry shop.

 PAMANTASAN NG LUNGSOD NG PASIG

Gantt Chart of Activities

Activities Year 2019

Month J F M A M J J A S O N D

Planning phase

Business registration

Construction of the shop

Painting

Purchasing of equipment
and furniture
Setting up equipment and
furniture
Advertising

Grand Opening

Start of operating

Activities Year 2020

Month J F M A M J J A S O N D

Brainstorming for making

effective strategies
Producing coupons and
punch cards
Implementation of selected
strategies
 PAMANTASAN NG LUNGSOD NG PASIG

Installation of added
equipment
Back to normal operation of
the business
Monthly meeting

Looking for investors

Contract signing

Activities Year 2021

Month J F M A M J J A S O N D

Planning for renovation

Renovation

Opening of new renovated

shop
Team Building

Starting again the business

operation
Anniversary Celebration of
the shop
Sales report to the investors

Promo
(FULL PACKAGE
LAUNDRY SERVICE)
 PAMANTASAN NG LUNGSOD NG PASIG

Initial Capital Requirement

The start up cost or the capital investment needed in putting up a FastClean Team is
estimated at Php 2. 162 million. This includes the construction of the facility, purchase of
equipment, and cost of operation for the first year of the Shop.

Requirement Cost (Php)

Construction Cost (100 sq meter @ 1,000,000
10,000/sq meter)
Equipment and Machine 660,000
Furniture and Fixtures 50,000
Salaries 360,000
Supplies and Utilities 72,000
Taxes 10,000
Business permit & license 10,000
Total 2,162,000

Sources of Financing
 Sources selected or proposed for both long-term and short-term financing.

 Alternative sources like sales and owner’s equity.

Financial Assumption

 There will be 2% increase in the number of the customer’s year on year.

 There will be 3% increase in salaries for the employee’s year on year.

 There will be 2% increase in utilities expense year on year.

PAMANTASAN NG LUNGSOD NG PASIG

Chapter 4

Financial Projection

Population of all Barangays in Pasig City

Caniogan 30,212

Dela Paz 22,084

Kalawaan 32,750

Kapasigan 6,052

Kapitolyo 14,216

Malinao 6,545

Manggahan 102,965

Maybunga 40,704

Oranbo 4,733

Palatiw 20,112

Pinagbuhatan 166,517

Rosario 67,842

Sagad 7,740

San Antonio 23,254

San Joaquin 14,470

San Jose 1,541

PAMANTASAN NG LUNGSOD NG PASIG

San Miguel 33,922

San Nicolas 2,315

Sta.Cruz 6,093

Sta. Lucia 48,799

Sta. Rosa 1,123

Sto. Tomas 10,232

Santolan 58,348

Sumilang 5,872

Ugong 24,663

TOTAL 827,544
 PAMANTASAN NG LUNGSOD NG PASIG

Sample Projected Income Statement

Year 2019 Year 2020 Year 2021

Revenue 1,134,000 1,168,020 1,226,421
Less: Cost of Service 115,000 117,300 119,646

Gross Income 1,019,000 1,050,720 1,106,775

Less: Operating
Expense
Supplies and Utilities 72,000 73,440 74,908.80
Expense
Salaries Expense 360,000 370,800 381,924
Depreciation Expense 2,800 2,800 2,800

Advertising Expense 820 820 820

Business permit and 10,000 10,000 10,000

license
SSS 13,200 13,200 13,200
Philhealth 3,300 3,300 3,300
Pag-Ibig 12,000 12,000 12,000
Total Operating 484,120 486,360 498,952.80
Expense
Net income before tax 534,880 564,360 607,822.20

Less: Tax 10,000 10,000 10,000

Net Income after tax 524,880 554,360 597,822.20