betty brite cleaners final

DCS Consulting, LLC Betty Brite Cleaners

DCS Consulting, LLC | 2

About Company “Large visions start with aggressive execution of small beginnings”

Our strategic consulting firm was founded in Washington, D.C. in 2014 with the vision of empowering small businesses and incubating ventures. We are dedicated to maximizing value for SMEs and start-‐up ventures in the United States and South Korea that face operational and financial challenges as well as transactional opportunities through our strategic consulting services. With rising global economic growth and the transition from labor to capital-‐intensive economies, we aim to provide SMEs with the knowledge and expertise to overcome the difficulties constraining them from realizing their potential growth while expanding their horizon into new and existing markets. Our mission is to assist SMEs and venture businesses in the United States and Korea with their current operations while also attracting and creating opportunities for mutual benefit and foreign direct investment.

What We Offer Our client specializes in large-‐scale organic laundry processing in the District of Columbia. The main processing plant in Arlington, VA currently services districts in Rosslyn, Arlington, and Union Station. Although the business remains solvent, the main processing plant is currently operating well below its maximum capacity. Our goal is to identify and leverage the core competencies and advantages our client possesses to expand market share and saturate the main plant capacity to optimal levels. As one of our first clients, we are dedicated to not only providing sound market and business consultation, but also to aiding our client through the crucial first steps of making our recommendations come to fruition. As our educational background stems from the DC metropolitan area, our consultation team is well informed of our client’s target market and will utilize all available resources to help our client penetrate the market while laying the necessary foundation for our client to thrive in the future.


Content

Executive Summary -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

Chapter One: Client Objective -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

Chapter Two: Market Analysis -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

Chapter Three: Target Market Analysis -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

Chapter Four: Business Strategy -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

Chapter Five: Competitor Analysis -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

Chapter Six: Marketing Strategy -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

Chapter Seven: Compensation Model -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

Contact Information -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐

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For our initial proposal, DCS Consulting first conducted an analysis of our client based on the collected information from one of our Co-‐founders. Based on the collected information about our client and the analysis of client’s desired goal and potential problems, we executed a comprehensive market research of the Foggy Bottom area by utilizing our years of experience in Washington, DC.

University-‐based communities are examined and analyzed more in depth for the purpose of knowing what specific market and what demographic our client wishes to target. Then, we further segmented our target market into one specific George Washington University dormitory (Ivory Tower) for initial market entry in the Foggy Bottom area.

We conducted a comprehensive analysis of our direct competitor, Soapy Joe’s, and examined their competitive advantages and disadvantages. Then, we developed (this will be developed further) specific programs that our client can execute. However, due to the limited information regarding the capacity of our processing plant and logistics, our firm will continue to share information with our client to develop more client-‐tailored promotion programs.

We developed initial market entry strategies with high emphasis on “systematic analysis of the target market,” “full understanding the needs of our customers,” and “our practical and impactful multi-‐leveled marketing strategies.”

Possible market entry modes are then created and analyzed for the purpose of informing our client of the pros and cons of each market entry mode. However, recommend the option of simultaneously promoting and executing brand-‐image establishment and multi-‐leveled marketing strategies targeted toward specific dormitories and businesses.

We, then, developed the projected quarterly operation of our firm and our client for one full year. Initial test-‐operation will start from the end of June after we complete the development of very detailed promotion programs, logistics, operations and marketing strategies that are practical, feasible and profitable.

As DCS Consulting provides a comprehensive service package to our client, we offer strategic consulting, along with execution and development of operations of our recommendations in the target market. Based on the continuous exchange of information between our firm and our client, we will develop more detailed strategies and execute them aggressively.

Executive Summary


Chapter One: Client Objective

Nature of Client’s Issue

A. Effective operations management, including logistics.

B. Multi-‐leveled marketing to turn our target market into our customer pool.

C. The establishment initials customer pool and the expansion of our client’s customer pool.

D. The constant development and evolution of the most “effective” mechanism to serve market needs.

By fully utilizing the already operational production capacity of our client in Arlington (major processing sight) and in Springfield (fallback processing sight), our client wishes to enter the Washington, DC market. In order to meet our client’s need, the formulation and execution of following activities are to be undertaken:

Brand Loyalty

Price Leadership Quality

• Establishment of customer pool in the target market à Brand Loyalty Establishment

• Serve the customer pool by fulfilling client’s “Promise = Quality” to customers in the target market. o Any breach of “promise” with customers culminates in

lost reputation, leading to exit from the target market.

Therefore, we are in need of creating practical and profitable strategies to accommodate our client’s need. We recommend targeting a specific and carefully segmented market first in the Washington, DC area. Even within the Foggy Bottom area, our target market requires further segmentation for the purpose of implementation of our “promise” with customers and of avoiding exit from the market. More importantly, our “promise” with customers is the basis of our strategies.

Customer Pool Establishment

Developing Mechanism

Multi-‐leveld marketing

Operation

Therefore, our “promise” must be viable and be able to establish effective services. These services encapsulate the following:

It is notable that the achievement of A and B is required to proceed with C. Once our client’s customer pool is established in the practically segmented area within the Foggy Bottom area, we recommend our client to expand into adjacent areas in Foggy Bottom gradually. Meanwhile, D must be constantly improved from the beginning to the end of our client’s business, if not, the attainment of our initial customer pool will be only temporary.


Chapter Two: Market Analysis

A well-‐known idiom, “know your enemies and know yourself, you can win a hundred battles without a single loss. If you only know yourself, but not your opponent, you may win or lose. If you know neither yourself nor your enemy, you will always endanger yourself.” Well-‐known concept but always forgotten by many failing project managers and businesses. However, our consulting team will ensure that we fully understand our client’s current business (yourself) and target market (enemy) in a systemic and effective manner to ensure successful market entry and expansion.

First, there are 15 official universities in the Washington, DC area.

Second, adjacent to Arlington, where our client’s processing sight is located, four largest universities and compact areas are present. All 15 universities are examined and top 4 largest university-‐based communities are pre-‐selected for target market. The university-‐based communities are listed below: All the information below are analyzed strategically to determine our target market that our client is capable of effectively serving and will bring the most stable and increasing profit to our client.

University-‐based communities within the range that one day or day delivery services are feasible:

However, there two other intrinsic challenges to targeting university-‐based community as our market:

• The market is constantly evolving as the college students demographic and young employee demographic shifts yearly and even per semester.

o Our solution: consistent, systemic analysis of the market and multi-‐leveled marketing strategies.

• Third-‐party laundry service is a luxury, not a necessity. o Create and provide compelling incentives, more than price leadership.


Chapter Three: Target Market Analysis

As our client’s sales strategy centers around providing same-‐day laundry service directly to either end-‐users/customers (B2C: Business-‐to-‐Customer Business-‐Model) or local retailors (B2B: Business-‐to-‐Business Business-‐Model), expedited speed of service must be both advertised and achieved.

GWU Demographics

SpeciAic Dorms + APT + Retailers, etc

GWU-‐based Communities

Foggy Bottom

However, providing quality-‐guaranteed and expediting services to several communities at once might exceed the productivity capacity of our client’s processing sight in Arlington. Our client’s fallback processing sight in Springfield, however, unsuitable for providing same-‐day service to compact communities with high demand. Therefore, it is crucial to target segmented yet compact, highly populated area within reachable markets.

Age Distribution

Clearly demonstrating a notable characteristic of a university-‐based community, the age distribution shows that nearly 60% of the population residing in Foggy Bottom area. Therefore, our market establishment strategies should focus on accommodating and incentivizing residents in their 20s and 30s. Considering the size of GWU students is 25,653 and of Foggy Bottom population based on U.S. census is 600,000, nearly 4% of the Foggy Bottom population is GWU students (assumption: 90% of GWU students reside within the boundary of Foggy Bottom). Also, it is estimated that approximately 10% of Foggy Bottom residents in their 20s are GWU students.

Therefore, targeting GWU students à targeting 4% of Foggy Bottom residents and 10% of F.B. residents in their 20s. 90% of F.B. residents in their 20s are presumably young employees and students at other universities. Strategically, we will be able to use similar marketing materials, but different, to target both GWU students and F.B. residents.


Chapter Three: Target Market Analysis

Standard of Living

Notably high single population

Homes with kids are notably low

Average Household Size is below 1.5

Median Household Income is $6,000 above DC average

1. Higher Purchasing Power 2. Higher Standard of Living 3. Rare to see Having family members do housework 4. Flexible consumers,

readily able to adopt a new service provision

Therefore, Foggy Bottom is a fine market to target, but as it is a large-‐sized community, market segmentation and respective marketing and strategic plans are vital to establish an initial market within Foggy Bottom.


Chapter Four: Business Strategy

Business-‐Consumer Business Model, or direct marketing and sales to customers, is designed based on the qualitative and quantitative market analysis above.

As GW students living on campus (Foggy Bottom area) live in 1) dormitories, 2) apartments, 3) condos and 4) Fraternity & Sorority houses, all of which are dispersed in the Foggy Bottom area, we cannot simply state that “we target GWU students.” If we make a promise that we target GWU students in our “door-‐to-‐door pick and delivery” service, we must provide the service to all.

In the second phase of our client’s operation in GW-‐based community, our client will be able to target all residential spots. However, until the operation and logistics of our client’s business develops and is fully tailored to serve the complete GW-‐based community. Our client should start from one of the five categories.

GW-‐Based Community

Dormitories = 19

Apartments = 9

Condos = 6

Frat&Sor. Houses = 8


Chapter Four: Strategy: Overview

v Detailed pros and cons analysis of each alternative, entry mode strategies and respective client and market-‐tailored & multi-‐leveled marketing strategies will be available upon formal agreement.

Our client has unrestricted freedom to select the alternative or a combination of alternatives, which benefits our client the most. Currently, we only have accessed limited information about our client. However, after our initial meeting with client, our strategies will be fully both market and client-‐tailored.

Alternative 1: Establish Laundry Stores

• One laundry stores covers 2 blocks-‐radiuses of residential spots. • In order to reach the entire GW-‐based community in Foggy Bottom, at least five stores must

be established. o Heavy initial capital investment.

Alternative 2: Align with Existing Laundry Retailers

• Provide less costly and attractive deals to existing laundry retailers in our target market. • Replace the retailers’ already existing business partners with our client.

o Significant portion of revenue given freely to retailers.

Alternative 3: Target Dormitories

• Target individual dorms and execute door-‐to-‐door pickup and delivery services • Direct business with customers with package services (basic service and premium service) • Promote affiliation with GWU by proposing our contribution to GWU’s Green Campus Policy.

o Heavy operational cost due to the existence of 19 dormitories dispersed in our target market.

o Establishment of strategic logistics and operational plan is required.

Alternative 4: Target Apartments

• Target individual apartments, where young workers and students reside, and provide door-‐to-‐door pickup and delivery services.

• Package services will be similar to “Alternative 3.” • Potential alliance with apartment offices/leasing office.

o Compete with door-‐to-‐door laundry service competitors.

Alternative 5: Target Dormitories and Apartments

• Provide door-‐to-‐door pickup and delivery services. • Potential alliance with apartment offices/leasing office.

o Production capacity at the processing sight in Arlington could be challenged. o If fallback-‐processing sight in Springfield is utilized, same-‐day package program may

not be feasible.


Chapter Four: Strategy: Operations and Logistics

First and foremost, target market-‐tailored marketing strategy will be created to incentivize our customers to purchase monthly or longer subscription.

* Small price range between Membership Types to incentivize users to choose our Grand Premium Option.

Although the activities involved look simple, we project unnecessary consumption of time, which could be an obstacle to expedited speed of our client’s service.

2. Customer's Residence

3. Pick-‐Up

4. Deliver to Processing Sight

5. Process Items

1. Van departs to Foggy Bottom

Logistical Challenges It is estimated that the collection of clothes directly from the doorposts of our customers will be 10 – 20min per building (residence spot), including parking and writing down notes after each pick-‐up.

If our client were to advertise our service to be eligible to cover all GW students or even GW community, it simultaneously gives our client the obligation to cover 19 (all dormitories) to 42 (including all residential spots) buildings.

If we take 15min per building (median of time required for pickup per building) for the time required for pickup, moving around the campus and picking up customers’ clothes from 30 buildings/sights (media of the number of dormitories, apartments and condos within the target market) requires 7.5 hours. This means for the delivery of completed clothes requires similar amount of time. Therefore, an effective utilization of our client’s van(s) is required, and the operation and logistics of our client’s business must be strategically managed and controlled. Or as an alternative, more vans could be utilized to target our market.

Therefore, it is highly advisable to target specific dorms/apartments/condos with projected, high demand for our service. While establishing effective operations for distributions, our client will be capable of expanding into adjacent dorms/apartments/condos. Gradual expansion into adjacent dorms/apartments/condos and ultimately cover the Foggy Bottom community (customers).

As an alternative approach to achieving our processing sight’s full capacity, our client has options to target businesses, instead of customers (Affiliation with local businesses to generate revenue).


Hotels

+ Service is a Necessity, not a Luxury

+ Predictable Consumer Behavior

-‐ Mid/Low Market Concentration

-‐ Subject to Tourism Business Cycle

Restaurants + Service is a Necessity, not a Luxury

+ Predictable Consumer Behavior

+ Predictable Cash Flow

-‐ Mid/Low Market Concentration

Chapter Four: Strategy: Partnership & Affiliation

Universities + High Market Concentration

+ Flexible, Adaptable Consumer Base

-‐ Variable Consumer Behavior

-‐ Service is a Luxury, not a Necessity

Target Market Analysis

DC Universities (+) Highest concentration market in select collection hubs (+) Flexible consumers, readily able to adapt and adopt a new service provision. (–) Less stable consumer base. (–) Market is constantly evolving as the college demographic shifts yearly and even per semester. (–) third party laundry service is a luxury, not a necessity. Hotels (+) Stable, predictable consumer base because third party laundry service in hotels is a necessity. (–) However, collection quantities may fluctuate with the tourism business cycle and seasons. (–) Hotel clientele dictates the collection quantities, which can harm efficiency. (–) Mild/low concentration market for collection hubs that are subject to fluctuation. Restaurants (+) Most stable, predictable consumer base because third party laundry service is a necessity. (+) Collection quantities and services are fixed with little fluctuation (restaurants wash linens, chef coats, aprons, uniforms all on a regular, scheduled basis). (–) Mid/low concentration market for collection hub; though the sheer size of the market is large, it is scattered and makes achieving same-‐day delivery difficult.

Affiliation: Pros and Con Analysis (+) Minimal investment required. (+) Affiliation allows immediate access to established market share without the need for investment in initial marketing (+) Great mobility within the DC market, able to affiliate and move with market demand shifts. (+) Allows client to focus on service quality and same-‐day shipping without having the additional burden of delivery accuracy. (–) Must incentivize retailers to adopt contract, perhaps at a financial loss. Note: Detailed pros and cons analysis of each alternative, entry mode strategies and respective client and market-‐tailored & multi-‐leveled marketing strategies will be available upon formal agreement. The following research, analysis and strategies are the snapshot of our strategic consulting service.


Chapter Five: Competitor Analysis

Overview Local laundry service providers are currently located in Arlington, Rosslyn, and Union Station. An aggressive marketing strategy will be employed that will leverage the location of laundry service and the consumers who are most interested in doing the laundry. Also, this particular marketing strategy will help us determine how to intercept the local laundry retailers to make our business transactions smoother. Wahio (4.8 stars) -‐ 1401 U St Washington, DC 20009

• Laundry cost: Wash and Fold for $1.60/Lb, Laundered shirts for $2.75/shirt Dry Clean cost: Blouses for $6.00, Dress Shirts for $6.00, Sweaters for $8.00.

• Delivery Fee: Free delivery on orders over $35. Order Minimum $20. • Uses reuseable bags, No harsh chemical use • Uses App and has a well-‐developed online site • The store opens from 6 am to 10 pm Mon – Thu, 6 am to 11 am on Fri, and 8 am to 2 pm on

Sat and Sun

Capitol Hill Cleaners & Laundry (4.0 stars) -‐ 661 C St SE Washington, DC

• Laundry cost: Wash and Fold for $2.00 • Dry Clean cost: Dry Clean blouse for $5.95, Shirt laundered and pressed for $1.55, and Men’s

pants for $4.95 • Dry cleaning and Laundry service provider • Friendly Employees with high quality tailoring service • Hard working owner’s presence is plus • No online site • The store opens from 7 am to 7 pm every day except Sunday

The Press Dry Cleaning & Laundry (5.0 stars) – 1924 I St NW Washington, DC 20006

• No costs provided online • Dry Cleaning & Laundry, Shoe Repair, Sewing & Alterations service provider • Promotes Go green, save green • Has an online site promoting their services • 10% discount on entire order for new customers • The store opens 7 am to 8 pm Mon – Fri, 8 am to 6 pm on Sat and 12 pm to 5 pm on Sunday

Esteem Cleaners (4 stars) -‐ 2100 Pennsylvania Ave NW Washington, DC 20037

• Laundry cost: Laundered shirt for $2.00 • Dry clean cost: Suit for $12.75, Dress for $9.25, and Shirts for $4.65 • Full service drycleaners and can even clean leather, silk and rug • On occasion, they have dry cleaning coupons available for laundered shirts and slacks, suits

and cocktail dress dry cleaning • The store opens 7:30 am to 7 pm Mon – Fri, 8 am to 6 pm on Sat, and closed on Sundays


Chapter Five: Competitor Analysis: Soapy Joe’s

Overview To get into the market with competitors, we must develop our unique and not imitable competitive advantages that CUSTOMERS CARE. Therefore, we analyzed two of our major competitors. Based on their disadvantages, which keep customers away from them, we will turn those disadvantages to our advantages. Based on compelling, attractive and viable competitive advantages (promotion packages, types of services, distinguished delivery time, and multi-‐leveled marketing strategies), we will capture the incoming freshman starting from August and prepare the upcoming competition for the fall through our initial operation at Ivory Tower (summer housing dormitory) starting from June, 2014. Local laundry service providers are currently located in Arlington, Rosslyn, and Union Station. An aggressive marketing strategy will be employed that will leverage the location of laundry service and the consumers who are most interested in doing the laundry. Also, this particular marketing strategy will help us determine how to intercept the local laundry retailers to make our business transactions smoother. Competitors Analysis: Direct Competitors Soapy Joe’s is a pickup and delivery laundry service targets college students with the goal of “making college life easier”. They provide pickup and delivery laundry services to colleges around the country and their goal is to provide affordable premium laundry services to students so that they may better use their time for school rather than laundry. Target Markets: American University Georgetown George Washington University USC Currently, Soapy Joe’s is CONTRACT and RECOGNIZED by GWU. Not only do they have a contract, they are also recognized and promoted by the GW Office of Parent Services to parents of GWU students as a premium and affordable service. Wash & Fold Laundry Service: T-‐shirts, Long-‐sleeve shirts, Sweaters, Sweatshirts Jeans, Pants, Shorts, Sweatpants Towels, Sheets, Pillow Cases, Underwear and Socks (each sock counts). Dry Cleaning Service Dry cleaning service is also provided and pick-‐ups take place in accordance with Wash & Fold. However, pick-‐ups for dry cleaning are Friday only and the customer must pick up directly with the route manager for delivery safety (will be delivered on next pick-‐up day if customer does not contact route manager). Delivery and Pick-‐up Schedule Pick-‐up times are Monday (4pm to 6pm) and Wednesday (4pm to 6pm) Delivery times are Tuesday (6pm-‐8pm) and Thursday (6pm-‐8pm) Services NOT provided/disadvantages: Soapy Joe’s used to but no longer does pay-‐per-‐wash services (ad hoc). The service can ONLY be used once per week


Competitive Advantages of Soapy Joe’s Disadvantages -‐ 24-‐hour turnaround service. ! Delivered the next day. -‐ Affiliation with GWU. ! Accept G-‐world (student card). -‐ Soapy Joe’s provide Door-‐to-‐Door service. ! Pick up and delivered to lobby -‐ Covers 28 buildings. ! Once a week per building.

-‐ Limited Dry Cleaning Service ! Only Friday pickups and the customer MUST be available to pick up in person. -‐Limited Laundry Pickups and Delivery ! Once a week + next day service per dorm -‐ No pay per wash service ! This service should be provided to students, so that they have more incentive to become our members at much lower price. -‐ No pickup or delivery at door post ! Students must deliver and pick up their clothes in 2-‐Hour gap at lobby. -‐ No shoe cleaning service -‐ Usage of Tide and Tide-‐Free ! Our client uses Organic Soap and therefore more environmental friendly. -‐ Non-‐negotiable semester-‐long/academic year contract ! Rigid form of contract ! No trial service or single service

Chapter Five: Competitor Analysis: Soapy Joe’s

Although Soapy Joe’s seems to be a competitive market leader on the surface level, the company has breakable disadvantages due to its extensive coverage areas and processing plant in MD. Therefore, our program (promotion and loyalty programs) must not only solve those disadvantages but also provide unique, innovative and ultimately APPARENTLY better services. Possible Competitive Advantages/Operations/Services

• Unlimited Dry Cleaning service at fixed price. • Door-‐to-‐Door service. • Less rigid pickup time (4 hours).

o Requires one van and one part-‐time worker (or temporarily our consultants) per building.

o 7 AM – 12 PM: pickups at the lobby or at the door (relationship with client through instant text message).

o 7 PM – 11 PM: pickup completed items at the lobby. After 10pm, deliver completed items door-‐to-‐door. (Relationship with client through instant text message).

• Shoe cleaning service. • Attract more potential customers with monthly membership by providing 1-‐day service. • Simplified and flexible transaction.

o Mobil application and one-‐time payment for one-‐time trial experience. o Immediate payment and sign-‐up, instead of signing-‐up online.

• Same-‐day delivery in 2-‐3 times a day (for the first 3-‐4 quarters of operation). o Monday, Wednesday and Friday (Foggy Bottom Campus) o Tuesday, Thursday and Saturday (Mount Vernon Campus)


Chapter Six: Strategy: Marketing

Business-‐to-‐Customer Marketing Strategies Primary Objective: The laid out competitive advantages will be accumulated and developed into a complete promotion package. We strive to develop compelling marketing strategies and communicate to our target customer pool through multi-‐leveled venues. The Structure of Multi-‐level Marketing Strategies 1) Development: Development of compelling and very attractive promotion package. Prior to the development, ongoing survey must be conducted to understand needs of our customers, including the current users of Soapy Joe’s. 2) Direct sales: Create attractive and distributable marketing materials and conduct direct sales to our targeted customer pool through marketing material distribution, door-‐to-‐door visits, marketing tables, events and affiliation with other organizations and institutions. 3) Indirect Sales: Create appealing, easy-‐to-‐use and easily reachable-‐to-‐public web-‐based marketing materials and conduct indirect sales. (* Web platform must be easy to use and requires budget). 4) Consumer relations: Constantly forge relationship with clients through our direct and indirect sales venues. It is very crucial to create Customer Retention/Loyalty program to keep the initial customer pool while constantly expanding the pool

Strategy Pyramid (The bottom reaches the largest pool of customers)

Web: Website development, management and improvement for the purpose of reaching out to the largest pool of customers who frequently uses Internet. Therefore, we will create a target-‐market tailored strategy.

Periodicals/Media: Create and advertise our promotion package through third-‐party media. We will start from local newspaper companies, especially Hatchet (very crucial).

Student Organization Affiliation: Affiliate with student organizations to promote our promotion package. Potential targets: student or NGO institutions which promote green awareness, influential student organizations and groups, CI* and other organizations.

Events: We will co-‐sponsor or sponsor some selective school events. Reserving tables at Kogan Plaza and operate 7 days a week will also be important. (Kogan Plaza, Marvin Center, MV, Ivory Tower, Thurston, etc)

Door-‐to-‐Door Visit: Through the affiliation with the housing office and house proctors, we target our customers directly.



Sample Marketing Strategy Objectives:

• Maintain steady, controlled growth • Decrease customer acquisition costs by 2% per quarter • Steadily increase market penetration

Target market: Affiliates

As a starter, the company should try to reach out to local affiliates and ask if they are interested in making more profit. And, the laundry service provider should offer a higher commission than the existing laundry service provider. The company can also offer a promising business plan to increase their sales and higher quality service. In addition, the company must enroll multiple affiliates in order to stir some competition within those affiliates. As a possible option, the company can offer Universities laundry and dry cleaning services to expand operation for market expansion.

Target market: Consumers/Target Market (Residents)

The laundry service provider will work closely with the university to provide laundry pickups, assembled pickups and other local building pickups. Back-‐to-‐school specials and bundle specials will be offered to make it easier for students to afford local laundry services. The laundry service provider will also advertise in the student newspapers and promote specials through pamphlets or brochures throughout the community.

Sample Marketing Tactics

Sales Promotion: the company will run the following sales promotion strategies

• Discounted prices • Customer relationship management -‐ springing up the relationship with customers. The

employees can very well understand consumer needs and are capable to satisfy those needs

• Occasional Package Offer

Advertisement

• Newspaper distribution – less costly • Posters near GWU, GT, World Bank, and other large institutions • Direct mailing -‐ sends e-‐mail promoting the features of the excellent services available • Handout or promote pamphlets or brochures at near metro stations such as GWU – Foggy

Bottom, Farragut West, and Farragut North. Note: Detailed pros and cons analysis of each alternative, entry mode strategies and respective client and market-‐tailored & multi-‐leveled marketing strategies will be available upon formal agreement. The following research, analysis and strategies are the snapshot of our strategic consulting service.



1. Detailed Target Market Analysis

2. Creation of Market-‐tailored Marketing

Strategies

3. Execution of Market-‐tailored & Multi-‐leveled MarketingStrategies

4. Target SpeciAic Summer Housing Dormitories

5. Consistent Analysis of the Initial Customer Pool

and Build Ongoing Relationship

6. Aggressive Execution of Market-‐tailored

Strategies and ready for expansion

Strategic Market Entry and Expansion Plan (sample) First-‐quarter operation: Text Market before Regular Semester. 1. Detailed target market analysis will be conducted for the purpose of strategically narrowing down our target market to top 3 summer housing spots with the highest number of occupancy rate and largest pool of residence. 2. Analyze the demographic of the exact building we will be targeting through surveys, interviews and examining the operation of the laundry rooms. Create and communicate compelling incentives to customers in our target spot through mailing, visiting, flyers, applications, and other sources.

3 & 4. Aggressively executive our marketing strategies full-‐time in our three target spots/buildings.

5. Consistently analyze the initial pool of customers in terms of demographics, jobs, age and more and further develop our marketing strategies around the analysis. Simultaneously, build outstanding client relationship (for our client’s business, word of mouth is crucial).

6. Constantly execute and monitor the progress while preparing for our expansion into adjacent buildings with major number of residences.


1. Local Businesses and Competitors Analysis

2. Relationship-‐building and interviews with local businesses.

3. Based on their demand, create promotion packages and marketing strategies.

4. Submit written proposal and negotiate the promotion package deals.

5. Expand alliance to more local businesses and institutions, such as GWU.

3. Constant Relationship with the Initial and further entered markets in Foggy

Bottom.

2. Expansion into adjacent

Dormitories/Apartments

1. Initial Tartget Market/buildings

Establishment


First-‐quarter Operation: Potential Affiliation with local institutions/businesses.

1. Collect relevant data on local businesses to know their exact demands and concerns. Analyze competitors for the purpose of forge more attractive promotion packages.

2. Build relationship with local businesses through interviews and visits on regular basis. Establishment of potential alliance partner pool.

3. After fully understanding their demand and concerns, create promotion packages which fully fulfill their demands and solve their concerns.

4. Write a strategic and compelling written proposal (very appealing) to local businesses and negotiate the promotion package deals.

5. Expand our alliance partners to more local businesses and institutions, such as GWU. As GWU promotes Green Campus Policy, our service could be appealing to GWU.

Second-‐quarter Operation: Market Expansion within Target Market

1. The services within the first target buildings (2 – 3) should be settled and be exposed to all residence in initial target buildings.

2. Use further developed marketing strategy to enter adjacent dormitories/apartments with compact and large potential customer pool (must be adjacent buildings due to our logistics constraint: 1-‐2 vans). Establish initial customer pool in new buildings and sustain outstanding customer relationship. Constantly promote our product in our 1st and 2nd target spots/buildings (total of 3 – 5 buildings)

3. While building continuous relationship with new customers, prepare expansion into more dormitories and buildings. Prepare to use GW-‐based media and advertisement venues to reach out to general GW community for the third-‐quarter operation.


Third and Fourth-‐quarter Operation: Expansion into the entire Foggy Bottom community.


Enter 5 more buildings/spots

• Further Market Research and Use constantly developed marketing and promotion strategies


• Key: sustain already established customer pool through special promotions and loyalty programs.


• Operational in total of 18-‐20 buildings in our target market.

Enter 5 more buildings/spots while preparing for expansion into Georgetown Community

Third and Fourth-‐quarter Operation centers around one statement: aggressive expansion while sustaining constantly established customer pool by providing our initial, quality services and loyalty programs. For the last two month of operation, we will be on the verge of determining our client’s expansion into Georgetown Community and achieve 10 – 15% of customer pool per building (total of 25-‐30 buildings in Foggy Bottom Community); at this time at least 3-‐5 vans must be operational and the operation of our processing sight in Arlington should be effective enough to serve the extended customer pool. We will always keep in mind that “it is difficult to enter a new market but easy to be exited overnight.”

Note: Detailed pros and cons analysis of each alternative, entry mode strategies and respective client and market-‐tailored & multi-‐leveled marketing strategies will be available upon formal agreement. The following research, analysis and strategies are the snapshot of our strategic consulting service.


Chapter Seven: Compensation Model

Our Mission for Compensation Model First, we spend a significant portion of the compensation from our client to research and develop our strategic consulting services to provide better services to our clients in the near future. Second, unlike most consulting firms in the market, we will not receive stipend or minimum wage for our work. We are driven by our burning heart and passion to see growth of our client and we understand that for most small and medium sized companies and venture businesses, paying a consulting firm is a necessary but a luxury burden. Therefore, we will not oblige our clients to compensate our firm until our solution to our clients’ problem is in the process of being solved. Third, unlike all consulting firms in the market, we will not be charged for our full-‐time work (6 days week), and we will not be charged if our client does not achieve what we propose. Our consulting firm desires to grow with our client. Fourth, we understand that most small and medium sized companies and venture businesses cannot afford to hire enough human capital to proceed with strategic consulting. Therefore, we will not only create strategies but also execute a significant portion of our proposal for our client upon our client’s request. Fifth, we provide a list of alternative compensation models to our clients, and our clients have the right to choose the model which work best for them. All alternative compensations are intended to avoid placing costs on our clients but to allow our clients to grow more effectively. Compensation Model Based on our mission statement on revenue model, our clients are not obliged to pay the following:

• No minimum wage for our full-‐time consultants, who are GW graduates and MBA graduates.

• No stipend for our full-‐time consultants, who are GW graduates and MBA graduates. • No payment when our market entry does not succeed.

Currently, no consulting firm in the market provides such financial benefits to SMEs, as they are primarily profit-‐driven and thus receive fixed minimum wage and absurdly high commission even without achieving clients’ goals. However, we are driven by our client’s growth and we strive to grow with our client.



Therefore, we propose the following revenue model:

Alternative 1: Our first proposal for revenue model states that we do not receive any minimum wage or stipend, but we are compensated as our client grows in the Foggy Bottom area. For every monthly renewable membership, which is initially obtained and renewed in Foggy Bottom area through our multi-‐leveled marketing and strategy formulation and implementation, we propose the following model: (Established customer pool requires constant client-‐relationship strategy to stay retained).

Membership Type Price Laundry Dry Cleaning Shoes Share for DCS

Consulting Percentage

Basic $85 O $4 4.71% Premium $95 O O $5 5.26%

Grand Premium/Deluxe $105 O O O $6 5.71%

Note: The widely-‐used market standard compensation for consultants is 8-‐10% of sales. In addition, consultants provide analyzed data and recommendations and monitor their clients’ progress (rarely consulting firms help the execution of their strategies). However, we charge lower percentage of sales and at the same time provide the execution of our unique strategies. This alternative incentivizes our full-‐time consultants to focus on more customer pools using Grand Premium service.

Alternative 2:

Membership Type Price Laundry Dry Cleaning Shoes Share for DCS Consulting Percentage

Basic $85 O $5 5.88% Premium $95 O O $5 5.26%

Grand Premium/Deluxe $105 O O O $5 4.76%

Note: our second alternative provides lower rate than our competitors who do not conduct the execution of strategies. By providing the same percentage for all services, our full-‐time consultants target all customer pool evenly.



Alternative 3:

For alternative 1 and 2, some funds are required by our client to execute certain marketing strategies, including designing, creating, promoting, managing and monitoring marketing materials (website, smartphone applications, and SNS management. However, for alternative 3, we will cover all incurring costs in the creation and execution our market-‐tailored marketing strategies. We will fully finance our marketing activities in this option.

Membership Type Price Laundry Dry Cleaning Shoes Share for DCS

Consulting Percentage

Basic $85 O $5.5 6.47% Premium $95 O O $6.5 6.84%

Grand Premium/Deluxe $105 O O O $7.5 7.89%

Note: for alternative 3, our consultants will make a capital investment in the creation and execution of our market-‐tailored marketing strategies. This alternative requires five of our consultants to be working full-‐time on 4-‐6 days a week.

Special Occasion (apart from Alternative 1 – 3):

We also see viability in forming alliance with local institutions and businesses as a revenue source for our firm. For potential alliance partners, we will conduct competitors’ analysis with compelling rationality to introduce our service. For each potential partner, visiting sales, marketing strategies and execution and strategic proposals will be written and conducted. For the revenue from Business-‐to-‐Business transactions in our target market, we propose to receive 7% of sales (gross revenue).


Contact Information

Jin Won Jeong Business Development Executive Earl Chung Financial Analyst John Blair Economist Alex Cho Human Capital Representative

Strategic Consultants

(202) 469-‐9588 [email protected]




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