Marketing Strategies report on Housekeeping and More

Prepared By:

Promi Goswami – ID: 1731882630

Syed Masroor Hannan – ID: 1721019630

Sanzida Akter Billah Anusha – ID: 1721227630

Sazzadul Karim Chowdhury – ID: 1621595630

Mosammat Maria Alam Arpa – ID: 1721526630

Shopneel Chowdhury – ID 1621595630

Prepared for: Ms. Farhana Habib Zinnia

Lecturer, School of Business and Economics

North South University - 2018

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Executive Summary

The objective of the report was to examine and analyze a sound marketing plan for a new housekeeping

service provider entering the market. Housekeeping and more is a service provider company in Dhaka.

The business is to provide cleaning staffs for all kinds of household works. We will provide daily

services all around Dhaka city. This service is aiming to connect people through good work and trained

and friendly staff. We will ensure that we abide by the rules and regulations and we will only hire

experienced staffs or trained them well before sending them to work.

The company segmented its customers on the basis of geographic demographic and psychographic

segmentation and targeted housewives and working woman using concentrated marketing. We believe in

more for more value proposition which is providing more benefits for more price.This is because we

offer more benefits to our customers in exchange of more price.Our goal is to provide excellent service

to our customers and to establish good business relationship with our clients by giving them value for

their money and reason s for them to hire our service repeatedly.

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Contents
Introduction..............................................................................................................................................................4
Segmentation, Targeting and Pricing – STP Strategy................................................................................................5
PRODUCT:................................................................................................................................................................. 7
Price:......................................................................................................................................................................... 9
Place....................................................................................................................................................................... 11
PROMOTION...........................................................................................................................................................12
Strategic Application...............................................................................................................................................14
Conclusion:.............................................................................................................................................................16

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Introduction
Marketing is the process through which a product or service is promoted and sold which includes
research on the market and advertising. Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large.

This report is based on the marketing analysis of “Housekeeping and More”, the new agency that is
entering the market with the motto “Leave the work to Us and Enjoy the Comforts of Life”

Our Mission Statement - To be the most reliable and trustworthy cleaning service company in the
market.

Although there are a few similar service oriented companies present at the market in current time, none
of them can provide the possible and sophisticated service that we are able to bring in the market.

After developing the initial idea, we have worked hard finding the most suitable employees and
absolutely devoted ourselves into training them and develop them into the mean working machines that
we can today proudly say are the best possible employees in the market today for house cleaning
services. Extensive background check on them has been performed and we can guarantee 100%
reliability on them.

While taking care of these tasks, we have also been working on gathering the required license and
developing the website and brochures and have also been working on a application for android and Ios
based platform.

Now at this stage, we have completed our training process, acquired the license, launched our website
and designed the brochures. So on the 14th of April 2018 we are officially launching the “Housekeeping
and More in the market.

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Segmentation, Targeting and Pricing – STP Strategy

Segmentation:

We have identified the following customer groups who will be benifited from our company’s offering.

DEMOGRAPHIC

a) Working women:

Today’s professional women are in constant pressure to perform from the workplace and also their
traditional household duties. They are in need of outside help to look after their household cleaning.

b) Housewives:

Housewives need extra help with their daily chores as well as for unexpected needs like arrival of guests
and family gatherings.

c) Bachelors:

They usually stay alone or in a mess, who will be benefited from a cleaning service for washing and
cleaning.

d) Students:

Like bachelors, students who live in hostel are always busy. A cleaning service can make their lives
easier.

GEOGRAPHIC:

a) Gulshan/Banani:

This is the place where the upper-class and busy professional people live. They can easily afford our
premium service.

b) Uttara: A huge residential area with mass numbers of apartments accommodating diverse group
of people.

c) Mirpur: The biggest residential area in Dhaka city.

d) Dhanmondi: One of the oldest upper class residential areas in Dhaka city.

Psychographic:

a) Upper Class: The social group that has the highest status in society. They have high income
and active in social and civic life. Because of their busy life, they will be in need of our
service.

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 b) Upper Middle Class: Professional and corporate managers. Because of their profession and
jobs, they don’t have much time for house chores. They will also appreciate our service to
make their lives easier.

c) Middle Class: Mid level professionals and corporate officials, who mostly do their own
household chores but are also in need of this service.

Targeting:

After analyzing all of the segments we have selected professional working women and housewives
living in Gulshan, Banani and Dhanmondi area belonging in upper and upper middle class families.

Target Strategy:

From the four targeting strategies we have selected concentrated marketing.

As our targeting is based on housewives, our strategy will be based on advertisements that will fall in
their eyes directly or indirectly, such as to say, women’s magazine, social networking sites and more.

Positioning:

We are offering more for more.

We will provide superior differentiated service for premium price by providing convenient, careful and
reliable service & assigning highly trained cleaning staff.

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PRODUCT:
A BRIEF DETAIL OF THE PRODUCT:

We are providing the best and most reliable cleaning service in Dhaka city. Our service is flexible and
easy to order. A customer can easily contact with us by using any mean of communication such as
telephone, social media, web site or even coming to our office. The cleaning staff we are providing, are
well trained, experienced, uniformed with ID cards, painstakingly background checked. We can rely on
our cleaning staff to meet your expectations.

Our company also offers service tailored to your needs and specifications.

BRAND SPONSORE SHIP:

With a view to introducing this exceptional and best quality housekeeping services in our country,
six of us are sponsoring a total of 50 lacs taka for starting this business.

LIFE CYCLE OF THE PRODUCT IN BANGLADESH INDUSTRY:

The Product Life Cycle stages of our service are given below:

Product Development:

We are providing basic house cleaning in only a few areas within Dhaka city. The cost for promoting the
product is way higher than our profits. Our service will primarily be available in Gulshan, Banani and
Dhanmondi.

Introduction Stage:

The range of the service availability will be increased. We will start providing our service in Mirpur,
Tejgaon, Puran Dhaka. We will still continue our promotions campaigns which will be costly.

Growth Stage:

Our company will grow outside Dhaka city and will find locations at Chittgong, Khulna, Rajshahi,
Sylhet. The rapid growth of our company is expected as well as profits are expected.

Maturity Stage:

Our company will extend its services in every where inside Bangladesh. The reliability and loyalty of the
service towards the customers will increase. We will start earning a good amount of revenue.

Decline Stage:

New competitors will arise and the competition will increase. Thus our sales will decrease as customers
may choose other service providers. We have to stay afloat by using our promotion and extending our
services to a variety of household problems. We might also have to offer professional office cleaning
service as well

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.

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Price:

Pricing strategies

Cost-based pricing

Cost-based pricing is product driven. We decided to choose cost-based pricing because the more type of
services our customers will take, the more we will charge them as our cost of payment to our staffs will
increase. We already mentioned we are charging ‘more for more’ to the customers and thus cost-based
pricing is what we focus on.

New-product pricing strategies: market skimming pricing

Market skimming is setting a high price to ‘skim’ maximum revenues from the market. The reason we
chose this strategy is that a part of our income from our business needs to be distributed among the staff
we provide ,so we need higher profits for that. Also, to maintain our quality and image, charging higher
is mandatory because it sets an image in the customer’s mind about our service being better than the
competitors. As we are offering premium service to our customers, we will set a high price to gain
maximum revenues.

Product mix pricing strategies: product/ service bundling

Service bundling is combining several products and offering the bundle at a reduced price. So the more
services our customers prefer to take, based on that, we may charge a bit less price than the usual
amount.

Price adjustment strategies: Geographic pricing

Geographic pricing is adjusting the price based on the geographical location. We would like to charge a
bit higher in Gulshan and Banani than in Dhanmondi.

Factors to consider while setting the price:

Area based:

As mentioned before, we are charging a bit higher inGulshan, Banani than Dhanmondi. The main reason
is that, there are not many slums there so our staff are less available in these areas and also to travel
there, they have to bear a higher cost. So to compensate that, we will have to charge more.

Amount of Time :

Since our staff are going to perform their tasks in more than one house, time is a concern. Our packages
will contain hourly basis work and so we will charge basing on the total hours of service provided.

Amount of work :

The more amount of work our customers want from our staffs, the more will be the price charged.

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Our choice of pricing strategy is market skimming. As we are offering premium service to our
customers, we will set a high price to gain maximum revenues.

Our proposed pricing as follows:

Registration cost: Tk.2500.00

Service charge: Tk.299.00 per hour

Half -yearly renewal charge: Tk.1000.00

Our pricing strategy will be charging higher price to create a value within the customer’s mind following
the principle that the higher the price is better the product.

Equipment and cleaning item cost: Cost will be borne by the consumer.

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Place

Marketing channels

Location strategy for the factory and retail outlet

1.Our strategy is to make the proper use of technology so that our customers can reach us easily. They
just have to use our app and choose their preferable service and thus they do not need to travel to a
specific location to reach us because we are here to reach them via the app.

2. We initially planned to set up an office at Farmgate as it is the center of all the areas we have targeted.
As a result, this is another strategy to stay close to all our customers. If they have any queries, they will
be able to visit us and get all their solutions.

3. Another strategy in locating our office in Farmgate is that, the rent there is not too high, it is average.
Also, the slums are not very far away from our location. As a result, if there is a shortage of cleaning
staffs, we can manage them from there.

Distribution channel

We do not require any distribution channels as our business is basically a service and we got no options
for distributions, the cleaning stuffs come to us with their background information and that’s how we
select and gather our team. Request for cleaning stuffs must be placed through application. No order will
be placed through on request or phone calls for the time being until we set up our office.

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PROMOTION

In marketing, a brand, company, product or service is usually promoted to increase or improve the
perception of the promoted asset. Product promotions are designed to increase sales of a product or
service.

Promotions are usually carried out through online media such as social media platforms, digital
communication such as mobile SMS, print media such as newspapers, or in a physical location such as a
retail store.

Advertising

The target of our advertising feature will be to grab the customers’ attention towards the essential service
that we are providing. We need the make sure that the customers learn about the variety of services that
we can provide that is suitable to meet their every need regardless of how small or large it is.

The message will be one that would appeal to them that how easily all the household tasks are no longer
a hassle to them but can be sorted out with just a phone call.

Advertising Media

Initially our advertisement will be focused on various newspapers, women’s magazine, leaflets and
social networking sites as these are the best promotional stages to reach our target customers.

Launching Campaign Offer – Sale Promotion.

As our launching campaign offer we will be offering a special discount rate for the first 100 customer
who will avail our services. All of them will be enrolled in our platinum class customer free of any
charge and all their service will be provide as the half the mentioned price for a year.

There will also be a secondary promotion available with the first one. Providing discount coupons for
first time users and offering a full free service if a customer refers a friend to register. The company will
make arrangements with retail department stores like Shopno, Agora and Meena bazaar to promote our
service as well.

Direct Marketing

As part of the direct marketing program, we will be collaborating with mobile network providers,
Grameenphone, Robi Axiata and Banglalink. Through them we will be sending SMS to our target-based
customers.

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Sample of leaflet and advertisement going in newspapers and online pages

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Strategic Application

Future Prospect:

Product Market Expansion Grid: We will use product development strategy. Our company will serve
existing household market by offering new services such as plumbing, electrical, carpentry, painting,
pest control etc.

Brand Expansion Strategy (Brand Extension): We will use the same brand name for a new service.

SWOT Analysis:

Strengths Weakness

 Experienced and trained cleaning staff.  Initial high cost for advertising.

 Convenient, careful and reliable service.  High training cost and effort.

 Flexible scheduling.  Concentrated service.

 Convenient booking facility.  Small target customer.

Opportunities Threats

 Demand for professional house cleaning  Little entry barrier.

service.
 High competition.
 Growing number of working women.
 Less aware customers.

Strength:

 Experienced and Trained staff:

Providing selected cleaning staff that are experienced in doing their work properly and efficiently. We
are also providing proper training to all of our working force.

 Convenient, Careful and Reliable service:

Our cleaning staff is here to deliver the best service available. They are capable of handing any
household cleaning situation like a pro.
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  Flexible scheduling:

Service time can be easily changed and customized according to the customers’ needs. Also the service
can be customized easily.

 Convenient booking facility:

Ordering our service can be done by using our website, facebook page, mobile application, hotline
number or coming to our office.

Weakness:

 Initial high cost for advertising:

 High training cost and effort.
 Concentrated service
 Small target customer.

Opportunities

 Demand for professional house cleaning service.

 Growing number of working women.

Threats

 Little entry barrier.

 High competition.
 Less aware customers.

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Conclusion:

House Keeping and More is a new company in Bangladesh.

We are a cleaning company providing household cleaning service to professional women and house
wives. Our aim is to be the most reliable and trustworthy cleaning service in our country.

We are initially going for concentrated marketing so our startup business is small with limited target
customers. We need response from our target customers so we can try to focus on providing the best
possible quality service. Our housekeepers are fully trained to perform all the house tasks set for them
with one hundred percent efficiency. Feedback and response from the consumers are our main targeted
achievement at this point.

“Our business is not only us and you” said many unemployed women in our country and would be
benefited. They will get the opportunity to work and unemployment will decrease somewhat in our
country.

Leave the work to us and enjoy the comforts of life

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