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Situation Analysis &Amp; Market Research

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Autor:  anton  30 November 2010
Tags:  Situation,  Analysis,  Market,  Research
Words: 2681   |   Pages: 11
Views: 705

Situation Analysis &Market Research

Dirty Deeds Incorporated is a for-profit home cleaning service that was created by six entrepreneurs on July 7, 2005. In order to differentiate Dirty Deed Inc.'s cleaning service from their competitors, they are implementing a risquГ© alternative. Dirty Deeds Inc. will be targeting single men and women over the age of 18 in need of domestic cleaning services and desiring discreet adult entertainment. Teams of at least two men and/or women dressed in sexy lingerie will conduct all cleaning services. The company has strict provisions in place to ensure that the services offered will always remain tasteful and in accordance with all federal, state, and county laws.

The creators of Dirty Deeds Inc. formed their partnership as Southward Bound Acquisition L.L.C., and are a group of investors from the American west and southwest. Their backgrounds range from commercial real estate development, to loan origination, to service sector business operation. They have in common, their affinity for this region, and their desire to find and conquer an unmapped region of the domestic business landscape future.

Southward Bound Acquisition L.L.C., in their venture as Dirty Deeds Inc. wishes to grow the company to ensure their profitability in the future. To achieve this, specific objectives must be made to chart successes and possibly redirect the business strategy if necessary. Although Dirty Deeds broad goals are to increase awareness of their product in the Tucson market, prepare for future expansion in other cities within Arizona, and achieve overall profitability, these goals must be refined and specified in order to arrive at a cohesive and measurable marketing plan.

The first objective of Dirty Deeds Inc. is to have a net profit of $100,000 in the first year. Dirty Deeds Inc.'s second objective is to have 125 regular customers by the end of the first year. Their third objective is to maintain a clean image within the community. In looking at future objectives, Dirty Deed, Inc. wants to prepare for expansion into other areas of Arizona. A long-term objective is to open new offices in Phoenix and Scottsdale.

In order to better swat the competition, a SWOT analysis must be performed to identify all the major factors affecting competitiveness before deciding upon a business strategy. A SWOT analysis assesses strengths (what an organization does well) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions) and threats (potential unfavorable conditions). By performing a SWOT analysis, Dirty Deeds Inc. will be more likely to accomplish there marketing objectives by converting weaknesses into strengths and threats into opportunities.

An internal analysis of Dirty Deeds Incorporated indicates that they posses many strengths. Among Dirty Deeds primary strengths is the fact that they have the latest cleaning equipment in the industry. This new equipment will assists in the quality and efficiency of their work. Also, their business is unlike any other cleaning service in town, and they are thereby able to offer essentially a composite of two services, in an entirely fresh and new format. An innovative cleaning service may be exactly what Tucson residents want. Tucsonans may widely accept the idea due to the high numbers of retirees and adults with money and an equally high number of collage students who need money. Advertising for customers and employees can also be efficiently and effectively achieved by word of mouth on the various Southern Arizona campuses. Lastly, Dirty Deeds staff is on-call and conveniently located in most areas of town for quick arrival. This will enable Dirty Deeds to clean more homes on shorter notice.

Besides strengths, Dirty Deeds Inc.'s has internal weaknesses as well. This unique blend of services has not been tried before; therefore, Dirty Deeds Inc. is sailing uncharted waters, and the primary risk is the unknown reaction of the market to their product. Pornography and the sex industry may be associated with the business which may drive away business. Licensing will also be more difficult to obtain, since adult entertainment is involved. These additional fees as well as the additional talent required will cause Dirty Deeds prices to be higher than traditional cleaning services. Another weakness is that Tucson's older population may be more conservative than anticipated which may cause them to reject the service. The last weakness is there may be a staff shortage during the summer and holiday months when college students are out of town. Not having employees to clean houses means less productivity and profitability.

Among the external opportunities that Dirty Deeds may enjoy are that this type of service has never been offered in Tucson before. If the service is widely accepted, the company can be very profitable. Furthermore, Tucson's diverse population is consistently expanding which offers a growing customer base. Dirty Deeds may also be able to utilize the new ideas that today's college student have to offer. Applying new concepts to current cleaning methods will boost Dirty Deeds Inc. reputation as an innovative cleaning company. Since customer satisfaction is guaranteed, clients will likely refer Dirty Deeds Inc. to their friends which may also contribute to an increased workflow.

Threats exist that Dirty Deeds must convert into opportunities in order to realize sufficient profit. One such threat is that people may not be willing to pay the extra money to have their house cleaned by scantly dressed college students. Another potential threat is sexual harassment against employees while they are working. It is extremely important that staff members feel safe and secure when performing their predetermined duties. Because citizens of Tucson only have a certain amount of disposable income, a recession can pose a serious threat to any business who's services are be considered a luxury. The last threat facing Dirty Deeds Inc. is the employment of a young and possibly inexperienced staff. Many college students have little work experience and therefore may not make the most effective decisions with the business in mind. Bad decisions can lead to a catastrophic meltdown of the company's marketing mix.

In order for Dirty Deeds Inc. to succeed, it needs to expose and be aware of as much information about its competitors as possible. To achieve this goal, a competitive analysis will be performed to identify all potential competitors. A SWOT analysis will also be conducted on the top three competitors to evaluate their strengths and weaknesses. By understanding the actions of their competitors, Dirty Deed Inc. will be better able to market their own products for success in the Tucson, Arizona.

As the above chart indicates, Merry Maid is Dirty Deed Inc.'s number one competitor followed by Maid to Order, Cheers Cleaning, and Desert Dust Inc. Although only the primary competitors are shown here, there should be secondary and potential competitors as well (tough to do in the allotted space).

Performing a SWOT analysis on each competitor will assist Dirty Deeds Inc. to be more effective at marketing their company. Merry Maid is Dirty Deed's number one competitor. Their strengths are their effective advertising, their number of employees, their prices, and their customer base. Merry Maids weaknesses are their turnover rate, their low wages and low employee moral which can negatively impact the quality of work. Opportunities of Marry Maids are the increase in population and their potential to improve their working environment and quality. Threats against Merry Maids include new competition and the state of the economy as people tend to clean their own houses when times get tough.

Another competitor of Dirty Deeds Inc. is Maid to Order. Maid to Order's strengths are their quality, their reputation as a family business, and there dedicated staff. Their weaknesses are they only operate in the northwest and central Tucson, they have a limited amount of equipment, their prices are the most expensive, and they are unmotivated about growing their company. Maid to Orders opportunities are they could expand the business to all parts of Tucson by buying more equipment and improving how the company is managed. Threats against Maid to Order are increased competition, economic instability, and an aging workforce.

The market detractor in this chart is Desert Dust Inc. Their strengths are limited to their price, their fixed costs, and their experience. Desert Dust Inc.'s weaknesses are they use outdated equipment, they take a long time, they speak little English, and their vehicles are falling apart. Their opportunities are they may get new equipment and vehicles, their very good reputation for cleaning houses by hand, and they may have a better chance of obtaining business from Tucson's growing Hispanic population. Desert Dust Inc.'s threats are competitors with better and faster equipment and the fragile economy.

Dirty Deeds Inc. is a new company that wants to offer an alternative house cleaning service to the Tucson community. The market has not experienced adult entertainment combined with a maid service. Since there is no prior research within the local industry, Dirty Deeds Inc. will have to collect the data in order to gain the needed information to reach their target audience.

Dirty Deeds Inc. has a preexisting amount of $50,000 to spend on advertising. This amount will be split between television, radio, newspapers, and flyers to attract new customers. $25,000 will be allocated to television, radio will receive $10,000, and the remaining will be divided between flyers and newspaper ads.

Dirty Deeds Inc. figures that hourly costs of $50 dollars per hour, per cleaner will allow them to retain twenty dollars for operational costs. They plan to start out with ten employees working twenty five hours a week. This will generate a total of $12,500 per week. Payroll will take $7,500 then will leave a profit of $5,000 for retained earnings.

Dirty Deeds Inc., will research preexisting surveys using the internet and the census bureau to gain secondary research information. Next, they will conduct a mail, telephone, and person to person surveys to acquire additionally needed primary information regarding the price and viability in the market. This will help Dirty Deeds Inc. to determine the needs and desires of the community. These surveys will take approximately ninety days to accumulate and process the data.

Once raw data has been collected and analyzed, a strategic plan can be developed for this unique market. The prices may vary depending upon the costs and demand within the local economy. Implementing Dirty Deeds in the local community will be jump started with a heavy advertising campaign that influences the community with low costs, high quality, and friendly customer service that stands boobs and biceps above the rest. They will target bars, strip clubs, and late night television with catchy slogans such as "Let Us Do the Dirty Work". Once the community is aware of Dirty Deeds, Inc., which should take approximately thirty to forty-five days, they will enter the market. Within that allotted time, Dirty Deeds will most likely hire more staff to meet the demand of the community.

According to the US census 2003 data profile, the total population of Tucson is estimated to be 530,588 with approximately 48% reported as male and a median age of 33 (US). 75% of the population is over 18 years of age; while a mere 13% are over age 62. Demographically speaking, this is an adult community, while not being an elderly community.

Approximately 10% of the adult population of Tucson has attained a graduate degree, while about 18% have failed to graduate high school. The median family household income is estimated to be $36,414, while the median non-family household income is $25,374. Although the cost of living index in Tucson is low when compared to more affluent larger cities such as San Diego, it is still above the national average, and when viewed in the context of the income statistics, people in Tucson are generally short on disposable income.

Very little pre-existing research is available on the subject of religious demographics. However, it is the sense of the researchers that Tucson may be highly religious. Nevertheless, in the survey portion of this study, the researchers are optimistic that they may find that the devoutly religious individual within the community is just as likely, or perhaps even more likely to make use of the intended services of this venture.

The professional interviewers for Dirty Deeds will conduct face-to-face surveys at certain business locations such as bars and strip clubs. This method was selected because it targets the audience that Dirty Deeds Inc. believes will make use of the service. This will give Dirty Deed Inc. important primary information regarding the needs of the community. People usually prefer the face-to-face interviews compared to the mail survey or phone interviews and are most likely to cooperate and respond quicker with a simple answer to the interviewer. Performing surveys will help Dirty Deeds to achieve their main goal of satisfying each customer's needs and desires.

Businesses, especially new and small businesses, should perform a thorough evaluation of their competition in order to maximize their marketing strategies and tactics for increased performance and profitability. Companies that utilize the different elements of marketing theory, such as setting quantifiable objectives, performing a SWOT analysis/competitive analysis, and the collection of primary and secondary information are more likely to be successful in the 21st century.

Works Cited

Kyle, Bobette. "SWOT Analysis В– Evaluating Strengths, Weaknesses, Opportunities, &

Threats." WebsiteMaketingPlan.com (2005). Retrieved from the World Wide Web on July 8,2005 from http://www.websitemarketingplan.com/Arts/SWOT.ht

US Census Bureau. Retrieved from the World Wide Web on July 11, 2005 from

http://www.census.gov/acs/www/Products/Profiles/Single/2003/ACS/Tabular/160/16000US04770001.htm

Thank you for taking a minute to fill out the survey. Please circle or write in the answer that best fits your needs or thoughts. This is an educational project and we appreciate your cooperation and thoughts. Thank you.

1. Are you a: Male / Female

2. Are you between the age of:

18-25 25-30 31-40 40+

3. How many people reside at your residence over the age of 18:

1 2 3 4+

4. How many times do you clean your house a week:

1 2 3-4 5+

5. Do you currently have a maid service?

Yes No

6. Would you consider hiring a maid service to clean your home?

Yes No

7. What is your household's annual income? $40,000 or less $40,000 В– $50,000 $50,000 В– $60,000 $60,000 В– $70,000 $70,000 В– $80,000 $80,000 or more

8. How much would you expect to pay a scantily dressed male /female to clean your home per hour?

$10.00-$25.00 $25.01-$40.00 $40.01-$55.00 $55.01-$70.00 $70+

9. Please indicate how many hours do you participate with each event weekly:

T.V. ________ Radio ________ Internet ________

10. When you watch television, what three networks or channels do you primarily watch and what times do you watch them?

____________________________________________________________

____________________________________________________________

________________________

11. What part of Tucson do you reside in? ______________

12. What are the issues that you would have if a professional maid service was to offer scantily dressed professionals clean homes within the community?

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________Thank you for taking the time to fill out the survey. We appreciate your answers and opinions. This survey in no way indicates this type of service will be offered in Tucson, Arizona nor should the students or University of Phoenix be held liable for opposing opinions. This survey is strictly for educational purposes only. Thank you once again.



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