Market Entry Plan
Name
Institution
Market Plan代写 Eco Home Care Solutions is a modern company the seek to offer green cleaning services to the upper-end market.
Executive Summary Market Plan代写
Eco Home Care Solutions is a modern company the seek to offer green cleaning services to the upper-end market. The company targets four market segments including young and old consumers, upper-middle-class and upper-class consumers. The services and products offered target wealthy and affluent consumers in the city suburbs. Thus, cleaning services and products will be highly-priced and customized to suit client needs.
Eco Home Care Solutions is a new start-up private limited company that will be established in Hong Kong China. Self-employment and independence are the main push behind the start-up. The company will be run by a team of management headed by the owner as the director.
The target is large and growing. The company will serve upper-end consumers who are ready to pay for premium quality services. The market is expected to grow by more than 4.1 percent every year. The growth is attributed to the economic and social growth in China. Also, the lack of enough time to do enough cleaning has necessitated the need for cleaning services. These groups of people do not consider the cost but the service quality.
Eco Home Care Solutions will need to raise 147,200 as of the start-up capital. The owner will contribute 70 percent of the amount and source the remaining from crown-sourcing. The company expects to make sales of $833,800 in the first year of operation. These sales show that the company will be profitable in the first few years of service. The company does not have much cost to incur since it only requires a small space for storing supplies. A close assessment of predicted financial plan shows that Eco Home Care Solutions is a viable idea with high growth potential.
Eco Home Care Solutions
About the Business Market Plan代写
a. Vision
To provide up-scale cleaning services that are convenient, premium and go beyond our client expectations and taste
b. Mission
Eco Home Care Solutions aims to provide customers with quality premium cleaning services that are eco-friendly and convenient. The purpose of our existence is to attract, serve and maintain our customers. If the company believe and commit to the mantra of premium and quality, everything else will fall into place. We also provide services that exceed our customers’ expectations.
c. Values proposition
The cleaning industry has been growing owing to social and economic changes that are taking place in China. Eco Home Care Solutions will allow customers access to premium cleaning services that are eco-friendly and has value for money. In so doing, our company will bridge the gap in offering cleaning services to the growing and economically growing population. Our company will also bring services closer to the consumers saving them time and stress when looking for cleaning services.
d. Industry
Eco Home Care Solutions is a company that runs a cleaning service business in China. The company will be based in Hong Kong. It will operate within the cleaning industry and will offer services around China.
Business Canvas Market Plan代写
A. Market relevance
i. Market Segment Description
Eco Home Care Solutions target upper-end consumers who are looking for not only premium cleaning services but also eco and health-friendly. Top-end consumers are composed both young and old. Therefore, the market can be segmented into four, that is, young consumers, old consumers, middle-class consumers, and upper-class consumers
Young Consumers:
They belong to Generation Z and Millennials. These are affluent and stylish consumers living in cities. They are robust drivers and global consumers of personal luxury goods and services (Hancock, 2019; Zhan and He, 2012). The group has solid consumer confidence and purchase willingness. Young consumers do not have time for cleaning and yet value cleanliness that mark their class. Also, according to Rapp (2019), they mainly prefer eco-friendly products, including cleaning products. Young people have significant spending force as proud and empowered impulsive consumers.
Old Consumers:
The company will focus on the wealthy retired people. This group swing between traditional and new trends in cleaning. Wealth retired, on the other hand, have high wages and willing to pay for premium quality services (Bierbower, 2015). They have high propensity to spend. Most do not have caretakers and live alone and need regular cleaning services.
Upper-middle-class consumers:
They make roughly 25 per cent of the China population (China Power Team, 2019). The group has enough income to cater for their comfort needs. According to McKinsey & Co. young consumers dominate upper-middle-class and their propensity to consume luxurious products is high (McKinsey & Company, 2019). Once in a while, they save and can afford to source premium cleaning service to relieve their busy schedule.
Upper Class:
These are wealthy and affluent consumers willing to pay for quality premium services. Mostly they do not have time to do cleaning and value cleanliness. According to Barton, Chen, and JIn (2013), the upper-middle class is proliferating to establish a new breed of wealthy elites in the city. The group demands luxurious and expensive products and services.
ii. Pain Point Market Plan代写
The target market segments have common traits that make them seek cleaning services. One of them being that they need lack time to do enough cleaning. Secondly, some items like carpets, duvets, chairs, and more are difficult to clean from home. Lastly, they are too busy to be able to do the cleaning.
Young consumers: They are too lazy to clean. They do not have time for quality cleaning. Some are busy with other activities leaving no space for cleaning. They yearn for premium quality cleaning services.
Old consumers: They are too weak to do the cleaning on their own. Some items are difficult to clean.
Upper-middle-class: These people are too busy to have time for cleaning. The group does not have enough disposable income. Some items are difficult to clean at home.
Upper-class: The people are too busy and do not have time for cleaning. Some items cannot be conveniently be cleaned at home. They lack eco-friendly and premium cleaning services.
iii. Pain Reliever Market Plan代写
The problems with our customers can be solved by providing upscale cleaning solutions. Each of the segments will receive a customized service that suits their behaviour and class.
Young consumers: The company will offer them premium services at their doorstep when they need it or twice per week. We will create convenience and timeliness in service delivery. The company will provide eco-friendly cleaning services and products that will serve their interest.
Old consumers: We will provide cleaning services at their doorstep and on their call. Our services will be convenient and timely. The company will be committed to delivering quality premium services.
Upper-middle-class: The company will bring cleaning services closer to consumers. Our services will be affordable.
Upper class: We will provide up-scale cleaning services. The company will look to create convenience and timeliness in delivery.
B. Market entry
iv. Point of differentiation Market Plan代写
Our company differentiates itself in the industry by offering unique service packages and operations. Eco Home Care Solutions will provide both janitorial and commercial cleaning services. In response to environmental trends, the company will focus on reducing emissions by using vacuum cleaners and green products. Janitorial cleaning will be done on the client’s requests while commercial cleaning will be done on contractual basis. Commercial cleaning on the hand will depend on contracts won in a given period. Our company will target the up-scale market so that we can customize and premium services for improved quality, unlike other companies in the industry.
v. Market penetration strategy
Competition in cleaning industry is high and intensifying as the market demand expands. For the Eco Home Care Solutions to penetrate the marketplace, it needs winning strategies (Davydov, 2017). One of the fundamental approaches is price penetration. Eco Home Care Solution is a premium service company, and therefore, the services are highly-priced match the target class of people. We realize that pricing and quality perception go hand in hand; that is, people perceive quality with higher pricing. High prices will pose our brand as premium compared to others the market, and this will help in capturing the target customers.
The company will engage in extensive promotions to create brand awareness. It will offer sales promotion, sales discounts, among others to capture customers at the beginning of operations. Eco Home Care Solutions will also participate in advertising to increase awareness. A mix of advertising methods will be used including social media advertising, television, and print adverts. A good promotion is the best market entry strategy.
vi. Market alienation strategy Market Plan代写
Eco Home Care Solution will use alienation as a strategy to lock out competitors from entering a premium eco-friendly cleaning services market. In so doing, the company will obtain patents rights for the products and methods of cleaning such as green soaps and machines. Our unique offers and target of up-scale consumers for premium services leave little room for competition due to the market requiring high start-up capital.
Although the market is profitable and growing, few companies can afford to offer similar services as Eco Home Care Solutions. Besides, offering premium services and targeting wealthy consumer, the company will create strategic alliances with manufacturers of cleaning products. The partnerships will assist in the customization of products and reduced prices. Also, timely and efficiency in delivery will count much in creating trust and reliability between the company and consumers.
C. Market makers
vii. Key Decision Makers
These are the people who will help the company to take off, capture market, and maintain growth (Kennon, 2019). The company identifies threes key decision-makers as the owner, the managers, and service users.
viii. Key Activities of decision-makers
All managers will concentrate on finding and delivering value to the consumers. The critical activities will include offering premium cleaning services, sales, and marketing, excellent customers services, and manage business relationships and networks. The owner will oversee the achievement of company goals and objectives.
ix. Segment ranking to growth strategy Market Plan代写
As the demand for premium and eco-friendly cleaning services increase, the company rank its segments according to the level of anticipated performance and growth. The leading market is the upper class in the economy followed by young consumers then old and upper-middle-class consumer at a lower level. Since the company will be offering premium services, high quality and affluence group is the strategic market. Other segments are essential as a growth strategy.
D. Market potential
x. The market size in China
Chinese household cleaning services and products market is growing exponentially. The revenues in 2018 amounted to $3,552 million and expected annual growth of 4.1 per cent (Allison, 2018). According to STATISTICA (2019) the increase in the cleaning market is attributed to the rise in disposable income and improved quality of life. Chinese consumers want premium cleaning services and products to keep up with a faster pace of urban life.
Figure 1: Level of vacuum cleaning demanded over the years.
Figure 2: Levels of disposal income
Figure 3: Expected sales of dishwashers
E. Market products Market Plan代写
xi. Product features
Eco Home Care Solutions’ pricing and consumers position the company as a unique and premium brand in the market. The company products will also be customized to consumer preferences.
xii. Leverage of differentiators
The key differentiators that the company will leverage are the customization and premium upper-scale services that are eco-friendly
F. Market pricing
Eco Home Care Solutions will charge rates according to square footage cleaned. The pricing structure is easy to determine, and consumers will be able to see the value for money. The proposed price rate is $10 per square foot per job. The pricing allows for personalized cleaning services and maintains the premium market.
G. Market rivals Market Plan代写
xiii. Rivals
There are ten leading players in the cleaning industry. Among the top is Shanghai Jackie’s Foreign Housekeeping services that was awarded the “2007 Shanghai Reputation Enterprise” (At0086.com At China, n.d). Shanghai Achieve-Easy Housekeeping Services follows with unique model of staff selection, training, and tracking services. Tianjin Lebaibang Housekeeping Service is third place offers social security system on top of its cleaning services. The top three provides premium services and target all households in large cities.
xiv. Swot analysis
Strengths
Unique business model coupled with good knowledge about the market.
Timely and convenient service delivery.
Offer eco-friendly cleaning services
Premium services
Weaknesses
Eco Home Care Solution may be perceived as a start-up company with not enough experience.
Big companies may be favored over Eco Home Care Solution due to its newness.
Opportunities Market Plan代写
The growing demand for household hygiene and premium services.
Few companies operate premium cleaning services in China
Use of personalized home care products and services.
Threats
Possibility of new entrants in the market segment.
Rival companies may have more substantial discretionary funds.
Stronger rivals may challenge the company reputation.
H. Marketing channels Market Plan代写
Eco Home Care Solutions will use direct contact and delivery of services to the end consumers. The channel will increase the quality of service delivery and customer relations.
I. Market assets
xv. Target market conversion
Eco Home Care Solutions will focus on converting prospective customers into assets. The company target to have at least 5 per cent market share in the Chinese market.
xvi. Intellectual property
This category will include company logo, uniforms design, and cleaning products.
xvii. Estimated valuation
The company will use asset-based valuation method. At the end of the third years, it will be valued at Total Assets – Total Liabilities = Net Worth
172,725 – 4,300 = 168,425
$168,425 is the Eco Home Care Solutions at year 3
J. Market Financial plan Market Plan代写
xviii. Capital requirement and funding plan
The start-up cost is estimated to be $147,200. The owner will raise $90,700 of the capital, and the rest will be raised from crowdsourcing.
(See Provided Excel File)
xix. Projected profit and loss statement for three years
(See Provided Excel File)
xx. Projected balance sheet for three years
(See Provided Excel File)
K. Theoretical and Practical Defense
xxi. Self-employment consideration
One of the main reasons for choosing self-employment is job security and wealth creation. Other reasons include a need for independence and service to the community.
L. Choice of Industry Market Plan代写
The company will operate in the cleaning industry. The growth potential of the industry is high, and it is profitable.
M. Choice of business model
Eco Home Care Solutions will function as an independent company so that the owner will have full control of the business.
N. Choice of the legal structure
Eco Home Care Solutions will operate as a private limited company. A limited company ensures the personal property is protected in case the company goes to receivership.
O. Resource management Market Plan代写
xxii. Staff training
The company brand requires competence and professionalism. Staff training will be a critical strategy towards achieving quality premium service delivery. The training programs will aim to support salespeople, cleaners, and managers.
xxiii. Staff incentives
The company will take performance management seriously. Incentives for workers creates motivation. The incentives that the company will offer include bonuses, commission, trips, performance appraisals, and much more.
xxiv. Customer relationship management
CRM is key to the success of Eco Home Care Solutions. Some of the critical areas of CRM include sales force automation, marketing automation, contact centre automation, and geolocation technology or location-based services. Other important aspects of improving customer services are efficient workflow management, centralized customer data, and lead management.
P. Performance indicators Market Plan代写
The short-term performance indicators are identified to constitute an increase in gross profit over time, a reduction in the cost of operations, and the ability to capture target market segments. Profits are the primary indicators. High profits indicate that the sales are high and costs are low. The rise in the number of clients will signal successful marketing and quality service provision. Small employees turn-over and high satisfaction are also important metrics for better performance.
Q. Marketing and Promotion
The company will use advertisements and promotions to create market awareness. The management will use radios, television, social media, flyers, among other marketing techniques. Eco Home Care Solutions will also use workshops to raise issues of green cleaning and products and how its services and products will contribute to environmental conservation. Workshop programs will be used as a springboard to the market and soliciting for acceptance in the community.
Additionally, the company recognizes the importance of social media like Facebook, Instagram, and Youtube to create awareness, connect with customers and communicate value to the market (Wolf, 2015; Zhu and Chen, 2015). These platforms are essential tools in reaching out to customers. Facebook and Instagram pages will be created to connect with customers. The company customers will be able to follow various posts made about the company products and services. Youtube, on the other hand, will be used to create online video ads. Social media is a convenient way to contact people, especially young consumers.
R. Management plan Market Plan代写
Management is the core function in ensuring the business operation and smooth flow of resource. The company will ensure that all tasks are connected to a seamless system to deliver services to customers. The company will pay special attention to the following:
xxv. Supply chain
According to Hayes (2019), the flow of products and services to our clients required proper management. The company services and products will be personalized for every customer. Personalization will include cleaning time, duration and techniques. The administration will ensure quality premium services at timely delivery. Marketing campaigns and promotions will be used to communicate with customers.
xxvi. Service capacity
Services will be offered according to the client specification and time. The management will ensure services are delivered efficiently. All staff will be trained and enough staffing maintained.
S. Exit plan Market Plan代写
The operations of the company will be run ongoing concern. Eco Home Care Solutions will have a well-laid plan of transitions for smooth operations when one of the managers or the owner exits. Therefore, the company has a checklist for the exit plan which constitutes valuation, taxation implications, stamp duty, due diligence, and restrictive covenant. Also, for considerations are the marketing for sales, documentation, and final accounts.
xxvii. Valuation
This includes current and future goodwill of the company, the value of assets, and current and ongoing market value.
xxviii. Taxation implications
It includes capital gains tax obligation upon sales and outstanding tax commitments.
xxix. Stamp duty
The management aims to reduce payable responsibilities at the time of transfer.
xxx. Due diligence
The management will prepare all the documents necessary for the successor to carry company evaluations for-profits, suppliers, customers, employees, among other checks.
xxxi. Restrictive covenants
The commitment of exiting people not to set similar businesses around the area of company operations and to keep business secrets.
xxxii. Marketing for sale
The management will be set for sales through marketing or brokers in case the owner intends to sell the company.
xxxiii. Documentation
Following documents will be needed for exit plan: lease documents, sales transfer, employee contract, supplier agreement, licenses, subscriptions, and permit for the business and assets.
T. Conclusion Market Plan代写
The examination of A to Z business canvas and need for self-employment, Eco Home Care Solutions has realized its contribution to the market and hence committed to offering up-scale cleaning services in China. The company will be a start private limited company to increase independence and control.
The company will aim to capture, retain and grow the market. The main target will be affluent Chinese living in cities. The company will be established as a company that offers green, quality, and premium cleaning services in China. These values will be communicated to the market through advertising and promotions. The power of social media will also be used as the most convenient technique to connect with customers, especially the growing consumer segment.
Additionally, the establishment of Eco Home Case Solutions will not only be the for-profit interest of the owner but also public service through the provision of eco-friendly cleaning services. The world is at the verge of environmental crisis and hence every little this counts immensely in reducing its degradation. Public programs will be used to position the company as a friend to the environment and that they should join it to have an impact.
References Market Plan代写
Allison. (2018). The increasing level of cleanliness: The household cleaning market in China | Daxue Consulting. Retrieved from https://daxueconsulting.com/household-cleaning-market-in-china/
At0086.com At China. (n.d). Best 10 Housekeeping Service Companies in China. Retrieved from http://top.at0086.com/Housekeeping-Services/Best-10-Housekeeping-Service-Companies-in-China.html
Bierbower, A. (2015). China’s old consumers. Retrieved from https://www.chinaskinny.com/blog/chinas-older-consumers/
Barton, D., Chen, Y., and JIn, A. (2013). Generational change and the rising prosperity of inland cities will power consumption for years to come. Retrieved from https://www.mckinsey.com/industries/retail/our-insights/mapping-chinas-middle-class
China Power Team. (2019). How well-off is China’s middle class? Retrieved from https://chinapower.csis.org/china-middle-class/
Davydov, R. (2017). How to create a market penetration strategy and make the market play by your rules. Retrieved from https://kraftblick.com/blog/market-penetration-strategy/
Hayes, A. (2019). What Is Supply Chain Management (SCM)? Retrieved from https://www.investopedia.com/terms/s/scm.asp
Hancock, T. (2019). Luxury brands focus on China’s younger consumers. Financial Times. Retrieved from https://www.ft.com/content/dbff9adc-5774-11e9-91f9-b6515a54c5b1
Kennon, J. (2019). What are market makers, and how do they make money? Retrieved from https://www.thebalance.com/what-is-a-market-maker-and-how-do-they-make-money-4053753
McKinsey & Company, 2019). China Luxury: Report 2019 How young Chinese consumers are reshaping global luxury [e-book]. China Luxury Report. Available at https://www.mckinsey.com.cn/wp-content/uploads/2019/04/McKinsey-China-Luxury-Report-2019-English.pdf
Rapp, J. (2019). Young Chinese want “green” beauty (but who will give it to them?). Jing Daily. Retrieved from https://jingdaily.com/young-chinese-want-green-beauty-but-who-will-give-it-to-them/
STATISTICA. (2019). Household cleaners. Retrieved from https://www.statista.com/outlook/60020000/117/household-cleaners/china#market-globalRevenue
Wolf, D. (2015). The real power of social media marketing. Retrieved from https://www.b2bmarketing.net/en-gb/resources/blog/real-power-social-media-marketing
Zhu, Y. Q. & Chen, H. G. (2015). Social media and human need satisfaction: Implications for social media marketing. Business Horizons, 58(3), 335-345.
Zhan, L., & He, Y. (2012). Understanding luxury consumption in China: Consumer perceptions of best-known brands. Journal of Business Research, 65(10), 1452-1460.
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