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Apex Dry Cleaning Marketing Proposal

Essay by 24  •  November 5, 2010  •  1,498 Words (6 Pages)  •  1,062 Views

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Apex Dry Cleaners is a full service dry cleaners that offers a variety of services for its customers such as same day service dry cleaning (in by 9 am, out by 5pm), next day laundry service, and pressing. Apex has been in business since 1993, and is owned by Mr. and Mrs. John Allen. Apex is conveniently located in a small strip shopping center at the intersection of Randall Mill and Davis Street. Since both streets are four-lane streets, there is a high volume of traffic flowing daily on each, thus causing Apex to have a high drive-by exposure. The strip shopping center also contains a convenience store, tailor shop, and a small insurance agency, thus making it possible for Apex to have adequate parking and no access difficulties. The opposite three corners of the intersection contain small low-rise office buildings.

The client believes that the demographics of the present clientele are in their twenties to thirties, middle class, with an average income, and are homeowners. Most customers have children and are mostly laundry customers, which contribute to 65% of Apex's business, with is higher then the industry average of 43% (based on Dry Cleaning Today). Females represent a larger percentage of Apex's clientele, although men's clothing accounts for a higher percentage of total business. Apex has a 90% customer retention rate, due in large part to their unfaltering commitment to quality service. This high level of customer retention provides Apex with annual sales of approximately $400,000.

Apex has two main competitors: One Hour Dry Cleaners and Comet Dry Cleaners. Both of these competitors are located in a seven-mile radius and are large dry cleaning chains. They also both have higher levels of economies of scale and can offer lower prices compared to Apex. Due to this, Apex has strived to deliver its "quality promise", something their two competitors lack. Apex's prices are about 10% higher then the competition, but it is the quality and personal approach to customer service that attract the price-conscience consumers.

Previous forms of marketing have included: Val-paks, ads in the local college newspaper, and door hangers. The neighboring tailor shop has also referred several of her clientele to Apex. Unfortunately, previous marketing techniques have had very little return and minimal measurability.

Objectives

The objectives of this marketing research intended for Apex are:

To measure current and potential customer's awareness of this establishment.

To research profitability of adding additional services and improving current services.

To anticipate customer's reactions to price increases or decreases.

To determine the most efficient and effective promotional channel to increase customer awareness and market share.

The achievement of any of the previous objectives will lead to relevant data that will aid in making strategic decisions which will increase market share, as well as profitability. First, to measure the current and potential customer's awareness of this establishment will determine what portion of the target market is not aware of this establishment. In addition, researching the profitability of improving current services, as well as additional services, or services that Apex is not currently offering, may perhaps supply information on how to attract non-customers to this establishment. We will evaluate the profitability of improving currents services, such as same day service or pressing. Furthermore, these new services may result in higher loyalty by current customers. A new service could be a drive through

window where clients are able to pick up or drop off items from their cars, which is convenient for busy clients. This research will show the reactions of clients to price fluctuations, whether it is lower or higher the prices. An important objective of this project is determining which promotional tools will be the most successful in attracting clients. We will determine the most effective approach to attracting and retaining customers to Apex.

Research Methodology

After taking into account the other possible research methods (secondary data, on-site interviewing, intercept methods, mail-in surveys), we concluded that in-house surveys and telephone interviews would be the most efficient and precise method of collecting data. Our research data will include the primary data we gather with in-house and telephone surveys.

To measure current and potential customer's awareness of this establishment.

Using random-digit dialing, we will conduct 250 telephone interviews from a central-location. This approach allows us to reduce the chance of frame error because random-digit dialing allows us to contact all potential participants with telephones, not just those listed in the phone directory. By using our own telephone interviewing facility, we are able to have control over the interviewers and monitor the whole process. In an effort to decrease non-response bias, we will attempt to contact each participant a maximum of four times. The questions will be dichotomous, and there will be some sort of trial incentive to participate, per approval (i.e. free garment dry cleaned). Responses related to awareness will be at the beginning of the survey. Essentially, the responses to the survey will measure overall consumer awareness, and determine whether or not the participant will be further interviewed as an "unaware" consumer, or an "aware" (current) consumer.

To research profitability of adding additional services and improving current services.

A combination of responses from the telephone interviews

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