Targeting:
The analysis of market environment suggests that there are certain insights that can be captured by the market and based on the same, the targeting may be done (Study.com, 2016). The market insights are:
Residents of the area like washing their cars at regular intervals.
The interval period is generally monthly.
People love their cars and so would be interested in paying a certain sum of money for its washing and maintenance.
A typical target customer for the Nozzles carwash would behave and be like the following:
"We picture a 40-year-old man who goes to office regularly to earn a living for his 19-year-old son and 60 years old father. Each of these family members is connected to the car in their own ways as well as because of their collective stories. They regularly go on outings as a family besides everyone home and work routine of the car. He is ready to invest a certain amount of money in the car on a periodic basis, because of the high value created by the same. He does not mind because he is working hard and the salary is rising."
On the basis of this description, the classification on the basis of demographics and psychographics would be:
Demographic:
The demographic variables of the target population would be:
The age group will be between 15 years and 65 years.
The income level will be good enough to buy and maintain a car on a periodic basis.
There will be more than a single member of the family.
There will be a head of the family who decides the expenditure of resources of the famil
Psychographic:
The psychographic variables of the target population would be:
There will be emotional connection between the owner and the car
The car is like one of the family members
The people may be middle or high class, but they like to show off their car on a regular basis
The use of cars for commuting and other purposes is high.
Concept of differentiation:
Before any differentiation is done for the business, there are three major questions that Nozzles needs to consider first. These factors are the competition, the delivery of promise and the value proposition of the differentiation. The Company should be currently starting off with the growth phase strategies (Strategic Marketing Ideas from BrandUNIQ, 2011).
This growth strategy of the firm means that there will be a further expansion of markets and products offered by the Company and they may also enter other segments. The growth strategy of the Company can also be proven by the fact that revenues have increased and the family in terms of employees is also on a rise. The business has been built to capture bigger shares of markets. Now, the organization could look forward to making use of any of concentration, horizontal integration, vertical integration or diversification to create a more robust growth prospect.
An Ansoff matrix could be used to further evaluate the growth strategies of the Company.
The strategy that the Company is using right now is Market penetration. The strategy is the least risky one and makes use of the present resources and capabilities of the firm. This is the best strategy that the firm can use right now as the market still has the scope for growth and expansion. There is potential to exploit more of current market opportunities and competitor weaknesses. The size of the Company is also small, so utilizing current resources is the best option for now. However, when the Company starts to grow vigorously, and the market starts saturating for some products, Nozzles may move to some other strategy combination.
The strategies that Nozzles has been using, especially related to market are based on traditional marketing methods and will turn up to be good for the Company. However, given that the vision suggests that it wants to grow as a leader, these strategies might not just be enough (Small Business - Chron.com, 2016). The following additional strategies or improvements in the existing ones will help the Company achieve its vision and mission.
The expansion of e-commerce is one of the most important steps that the Company needs to take since all the services have also become online.
As the company is growing at a rapid pace and new brands are being added to the portfolio, further strategic integration and disintegration is required.
The focus on marketing activities is to be increased.
Specific differentiation recommendations would be:
- Innovation in the technology to clean and maintain the cars, or the way in which payment is made or in the way that the company and its services are promoted.
- Diversify the risks when thinking of a larger plan of differentiation
- The value created for the customers should be much more than just simple cleaning.
7P’s of marketing:
Product – There are no specific products that we will be offering. It is the service. This service needs to be standard regarding the technology used and the value delivered but could be customized in terms of the additional products based on the scale of the services taken.
Place – The service will be made available from the Nozzle carwash outlet. The customers can directly contact the shop to get the service. Online media will also be used to attract potential customers to the shop. The materials for the car wash will be taken on a contract basis from the local vendors who will be our partners.
Price – The price will be decided on the basis of differentiation (Academy, 2016). Price discrimination will be used based on the degree of the car wash and maintenance required. Tiers will be established to identify the level of cleaning required in a car. Based on the same, other variables will be utilized. There will also be provisions for offers and discounts on the membership or other specific matters.
Promotion – The advertisement and promotion used by the Company should be subtle and not over the top. It should neither be too silent that the customers do not have an idea about the services. A mixed approach would best suit the situation. The correct message could be spread through word of mouth promotion and the use of online media, where the customers can share their experiences and influence others through positive comments.
People – People comprises of the employees and the customers. Customers will be of utmost importance and every decision will be taken based on the customer satisfaction and want. The right nature of employees is a must for the business as people will interact and then based on the behavior of the employees, customers may decide to take or forfeit a service.
Nozzles carwash is a growing business, and the family needs to grow in proportion to the growth of business. More members need to be added to the family and especially to the marketing and sales team. The Company faces some good level of competition and thus needs to strengthen marketing and sales activities. For new companies like Nozzles carwash, which is a push product, the sales team needs to grow (Ibrahim, 2014). For making it an established brand, marketing activities also need to grow in proportion. The Company also needs to invest in equipment management and for promoting not just the service, but the Company as a whole.
Processes – The expected result of the processes is successful delivery of the service that has been promised. It would also involve successfully closing the deal and accumulating the revenues that were expected to be generated.
There would be two serious suggestions that could improve the processes and functions at the organization. The first would be adding staffs to the organization, and the other would be conducting the one-on-one evaluations on time so that mistakes and errors can be avoided. Another recommendation would be less or flexible working hours for the employees so that work does not become monotonous. This would go a long way in improving organizational efficiency. The other recommendation would be to have separated IT and mechanical experts; a mechanical expert who is handling hard core equipment technology issues of the organization and the other IT expert who can help with IT issues required in marketing and website maintenance.
Physical Evidence –
The physical evidence structure of the Company is precise with limited departments and employees. The Company is growing, and so the functional structure is also changing. Three main functions can be identified for the Company: HR functions, Marketing and sales functions, and Operations functions. Thus, the office space is limited with a limited premise but a clearly distinct cleaning area.
Physical evidence is that part of the Company that requires optimal consideration and change. The department is under-equipped as the employees and executives seem to be in a rush all the time and anxiety is reflected on their faces, which will, in fact, hamper the positivity they should be imparting to other employees. The business of limited cleaning and maintenance staff is the reason Company had to keep postponing some major employee motivation events (Tracy, 2004). There could also be a complaint from the employees that meetings take up a lot of time, especially for the front line employees. The area needs to be made more attractive so that the people who wait in the premise while their car is washed will not have any reservations.
We could also discuss the eighth P for the company.
Productivity & Quality –
This is the measurement of whether the intended value is communicated. This can be done by ensuring that there are no extra costs involved and that various techniques of operational efficiency are successfully used by the Company. Periodic evaluation and checking of system loopholes are also mandatory for ensuring that the quality and productivity are in check.
Thus, with the use of clear differentiation of strategy and the successful application of the marketing mix, Nozzles carwash will be able to position itself as the best in town, ahead of its competitors.
References
A brief summary of marketing and how it works. (2016) (1st ed.).
Academy, P. (2016). Marketing Theories - The 7P's of the Marketing Mix. Professionalacademy.com. Retrieved 13 February 2016, from http://www.professionalacademy.com/blogs-and-advice/marketing-theories---the-marketing-mix---from-4-p-s-to-7-p-s
Brown, P. (2013). Differentiation and it's role in Competitive Advantage | Culttt. Culttt. Retrieved 13 February 2016, from http://culttt.com/2013/05/22/differentiation-and-its-role-in-competitive-advantage/
DeVault, G. (2016). What Consumers Perceive Is Pivotal to Brand Success. About.com Money. Retrieved 13 February 2016, from http://marketresearch.about.com/od/market.research.brand.equity/g/Differentiation.htm
Ibrahim, M. (2014). 7Ps of Marketing | Additional Elements of Marketing mix. Cleverism. Retrieved 13 February 2016, from http://www.cleverism.com/7ps-additional-aspects-marketing-mix/
Inc.com,. (2012). 3 Ways to Differentiate Your Business From Competitors. Retrieved 13 February 2016, from http://www.inc.com/shazi-visram/3-ways-to-differentiate-your-business-from-competitors.html
Management.net, . (2016). Summary of the 7Ps of Marketing. Abstract. Valuebasedmanagement.net. Retrieved 13 February 2016, from http://www.valuebasedmanagement.net/methods_booms_bitner_7ps.html
Netmba.com,. (2016). Market Segmentation. Retrieved 13 February 2016, from http://www.netmba.com/marketing/market/segmentation/
Radice, R. (2014). How to Create Differentiation Through Social Media. Rebekah Radice, Social Media Strategy. Retrieved 13 February 2016, from http://rebekahradice.com/create-differentiation-through-social-media/
Small Business - Chron.com,. (2016). What Are Examples of a Differentiation Marketing Strategy?. Retrieved 13 February 2016, from http://smallbusiness.chron.com/examples-differentiation-marketing-strategy-3222.html
Smart Insights,. (2014). How to use the 7Ps Marketing Mix? - Smart Insights. Retrieved 13 February 2016, from http://www.smartinsights.com/marketing-planning/marketing-models/how-to-use-the-7ps-marketing-mix/
Strategic Marketing Ideas from BrandUNIQ,. (2011). Differentiation Strategy: How to Gain Competitive Advantage Through Product Leadership • Brand Management : BrandUniq. Retrieved 13 February 2016, from http://branduniq.com/2011/differentiation-strategy-how-to-gain-competitive-advantage-through-product-leadership/
Study.com,. (2016). Market Segmentation: Geographic, Demographic, Psychographic & More - Video & Lesson Transcript | Study.com. Retrieved 13 February 2016, from http://study.com/academy/lesson/market-segmentation-geographic-demographic-psychographic-more.html
The Marketing Mix,. (2015). Marketing Mix Definition - 4Ps & 7Ps of the Marketing Mix. Retrieved 13 February 2016, from http://marketingmix.co.uk/
Tracy, B. (2004). The 7 Ps of Marketing. Entrepreneur. Retrieved 13 February 2016, from http://www.entrepreneur.com/article/70824
