Market Penetration Strategy

A market penetration strategy is used when the company plans to increase the sales by entering new markets or expanding product range. Since customers are aware of the services but are reluctant to use them, the company will implement the following tactics to increase market penetration. First, the company will reduce the price it charges for the cleaning service. Lowering the price of the service will attract more customers and challenge competitors. Second, the company will increase promotions. For instance, we shall launch an advertising campaign to increase brand awareness positioning of the service in the market. Also, the company can offer sales promotion discounts or trade discount to penetrate the market better.

Growth Strategy for Building the Business

Without the growth strategy, it will be difficult for the company to succeed. Therefore, the company will plan, develop and implement the following growth strategies to facilitate sustainable growth. The company will implement an internal strategy including increasing human resources. The company will work to increase the efficiency of human resource to help reduce costs and distribute the services more quickly and smoothly. For instance, using new technology will help to lower operating costs. Also, the company will look into eliminating waste by cutting out all processes and procedures that do not produce value for the company. Lastly, the company will provide an environment of continuous improvement and encourage teamwork. Another growth strategy is the horizontal strategy. With this strategy, the company will offer the same service to different users. For instance, the company will start offering household cleaning services to middle-class individuals.

Channels of Distribution

Riviera Cleaners Company will provide household cleaning services to the affluent market through direct sales. The company will offer services through contracts, which will be formed on a three-month basis. At the end of the contract, either party can decide to renew or withdraw the contract. Direct sales will allow the company to contact customers through visits without any intermediaries.

Communication Strategy

Since the target markets are affluent households, the company will use a combination of the following communication strategies to reach out to customers. Riviera Cleaners Company will use promotion and printed materials such as brochures, flyers, and catalogs. The company will try to retain loyal customers through sales promotion such as loyalty cards and service discounts. In the case of printed materials, brochures, catalog, and flyers will contain information on the services the company offers and ways the customer can easily contact the company.

Sales Strategy

Sales Force Strategy

Riviera Cleaners Company is planning to use internal representative as a sales force. The representatives will develop and grow the business, generate sales and handle customers. During the first year of business, the owner of the company will assist the sales force. The company will recruit seven additional full-time employees. Regarding the recruitment strategy, the company will consider the diversity of the talent. The company will hire applicants with diverse backgrounds, perspectives, and personality. This group will provide new ideas that will strengthen the company. Also, the company will use a structured interview to assess the suitability of applicants. In this case, recruits will answer the same set of questions and the management will evaluate them to determine those who have qualified. Riviera Cleaners Company will offer an exceptional training program to all new employees. The training will allow employees to develop skills to perform every task (Baumgartner, Hatami & de Uster, 2016). Also, the company will provide on-site training that will include pairing a new employee with experienced ones. The annual compensation for employees is as follows. The CEO will earn $49,000, accountant will earn $25,000, operations assistant will earn $35,000, and crew head will earn $15,000 while cleaning crew will earn $5,600.

Sales Activities   

The sales activities of the company will start through qualification of leads generated by the marketing team. Customers will read our brochures develop interest thus allowing the marketing team to generate leads. Customers will call to inquire about our service, while the customer care service provider will give them an estimate over the phone. The company will prefer to visit customers in their homes and speak with them. Since the company will be dealing with affluent households, we will feel confident that they will be impressed with our services.

During the first month, we will be busy setting up the business. Additionally, we will purchase office equipment, deal with legal and accounting issues and develop a training program. In the second month, we will engage in field inquiries over the phone. During the first week of the same month, the owner and seven employees will deliver services to customers. An increase in the number of contracts will force the company to increase the services offered.

Communication Strategy

Internet Strategy

Riviera Cleaners Company will use the following strategies to get the company noticed on the internet sites and stores. First, the marketing team will establish profiles on major social media platforms. The company will set up profiles on Facebook, Pinterest, Twitter and Instagram, and update them with content on a regular basis. Second, the marketing team will create unique and shareable content. The team will create original and valuable content for the target audience and share them a cross established social media platforms. For instance, the marketing team will create interesting videos and share them. Third, the company will use paid search such as Google AdWords. This internet tool will provide the company with marketing and search engine optimization services.

The company will invest enough in the online presence to drive leads and support sales. Since the company is new in the market, we shall invest at least $10,000 annually to our online presence. Areas the money will be allocated include improving the website, social media marketing, Facebook, Twitter and LinkedIn ads. Also, the company will allocate money on Pay per Click advertising and SEO.

Tracking ROI

Riviera Cleaner Company will track ROI in the following ways. First, the company will use test and control groups to measure the impact of brochures and business cards on the target audience. According to Wiid and Diggines (2010), test and control groups entail testing the effectiveness of a marketing program against a well-defined group and compare the results. The company will split the target market into two equal geographical segments. Then the company will spend twice as much in one group compared to the other. To analyze the effectiveness of the marketing campaign, the company will compare the behaviors of the two market segments. This approach will help the company to determine the growth in branded search from the market segment with more spending (Wiid & Diggines (2010). Second, the company will use single attribution to measure the impact of economic incentives and website development. This measure requires the company to allocate the deal to the key person (Gallagher & Kayler, 2009). The company will allocate all the value to the first program that made the deal.

Ethical Practices

The company will consider the following marketing ethics in promoting the service. First, the company will maintain the privacy of the consumer at all times. Second, the marketing team will be transparent on the person they will pay to endorse the service. Third, the company will promote the service based on its merit and highlight the features that the target audience might find useful. Fourth, the marketing team will not belittle any person, group, organization or community. Lastly, when the company advertises the service in a medium, it will ensure that the service is recognized and the advertiser is identified, that is, the advertisement will contain contact information of the advertiser.

 
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