No manches: A Mexican Laundry Service Company, Slides of Business Statistics

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SUMMARY

INDEX

PART I

INTRODUCTION

The project that in this document it is going to develop, is to carry out a marketing plan for the company "No manches" to demonstrate its viability. The company "No manches" dedicated to provide laundry services with home delivery service is located in Mexico, more specifically in the capital of the same, in Mexico City.

OBJECTIVES

The general objective of this marketing plan was to analyse the factors of the company and its environment in order to detect weaknesses, threats, strengths and opportunities. It also aims to achieve the objectives set by the company, implementing strategies and designing operational actions, which later will be implanted by many actions for the achievement of the action plan and subsequent control of the results.

METHODOLOGY

The methodology employed has been different in order to get data; the information obtained was quantitative and qualitative. It is first-hand information of the company itself and as well of secondary sources: interviews with partners, surveys, observation, institutions, bibliography research etc.

STRUCTURE

The following document will have an organized structure, arranging two general blocks, the first one will be the introduction with its corresponding sections and the second, will consist in the development of the marketing plan which will have a number of common chapters in any marketing plan and another number of chapters that I considered necessary in this case..

-The first block consists in the introduction of the thesis:

In the second block, the work is broken down into 7 sections. Firstly, it is initiated with a brief introduction of the company followed by an analysis of the current situation of the company. In this analysis, was made two parts; for the one side, the internal analysis, in which all business information is collected and on the other side, an external analysis distinguishing the macro-environment and the micro-environment. As regards the analysis of the macro-environment, we analysed demographic, social and cultural, economic, technological and legal environments; as regards the micro- environment, was analysed the sector which the company belongs, suppliers, competitors, market and customers.

Then, all the information studied in the previous paragraphs, was captured in a SWOT analysis, summarizing the strengths and weaknesses presented by the company, obtained from internal analysis and the threats and opportunities presented in the sector, obtained from external analysis...

Finally several objectives were set by taking as reference the SWOT analysis for a later establishment of various strategies and the design of the operational actions, to be able to develop an action plan with a later control and monitoring of results.

JUSTIFICATION FOR THE CHOICE OF THE TOPIC

The main reason why I have chosen this topic is to carried out a university exchange over one year in Mexico City, where I had the great opportunity to comply one of my personal goals; to create a company, the previously mentioned "No manches".

Another motivation for the choice of the topic, is the importance of the marketing in any business so they can last over time. The most important thing in my view, is the satisfaction that gives the moment in which we are selling something to someone, trying to understand customers, to sneak into their mind and see what their needs are or to create one.

Notably, during the degree we worked many fields of finance and accounting, which are related face to manage, operate, accounting etc. Thereby there were less marketing subjects and I think that it is important to continue working the science of marketing on my final thesis.

It is in this scene where the company "No manches" was born, by associating with the hosting company and with the main objective of responding to this need of the customers by offering laundry services with home delivery in any of the 15 houses.

So we are in a situation where everyone wins:

The current clients of "Rooms época" will become in new clients of "No manches" and they will be able to access an additional, different and improved service.

The first company will win in a decisive factor, as it is, the ability to compete and position against its competitors and continue developing its image; because of this, it increases its ability to retain their current customers and obtain more easily new customers to inhabit their homes.

As for the second company refers, to begin with, it will always have a higher minimum of customers, so the laundry company will get each month a greater number of new customers, which are the most difficult and expensive to get.

2.-ANALYSIS OF THE SITUATION

2.1.-INTERNAL ANALISIS

Regarding the internal analysis, is going to develop an analysis of the company itself, in order to see in which situation it is, analysing the different functional areas, in other words, analyse the products / services offered and the policies of pricing, distribution, communication, financial situation, human resources, internal organization, facilities etc. In short, the development of the current situation of the company, mentioning all those internal aspects which will affect the future development.

SERVICES

"No manches" is a company of service delivery, therefore, in the following section we will analyse the offered services:

Main services:

-Laundry service

-Drying service

Secondary services:

-Home collection and delivery service

-Online and offline orders

Figure 1: Services

Source: Own elaboration

Home collection

Here begins the whole process, by collecting the clothes of the clients. This service is available in the areas of Roma and Condesa in Mexico City. Once the company verifies the corresponding daily orders, gives the list of orders to the person in charge to pick up the clothes in the addresses of the customers in the selected date and time.

Home collection service

Laundry service Drying service^

Home delivery service

Table 1: Prices per kilo

Source: Own elaboration based on “No manches” data

A part from the price that is calculated per kilo in the case of clothes that requires a regular service, there is another list of prices for products such as blankets, quilts etc. that require a different treatment.

Table 2: List of prices

Items Prices^2

Individual quilt 100 $MXN

Double quilt 125 $MXN

Queen Size quilt 135 $MXN

King Size quilt 140 $MXN

Individual blanket 75 $MXN

Double blanket 100 $MXN

Queen Size blanket 115 $MXN

King Size blanket 125 $MXN

Source: Own elaboration based on “No manches” data

DISTRIBUTION

The company is responsible for the distribution and they also do the transportation and it takes over the cost that this entails, so the company has an employee solely to carry out this activity.

(^2) These products also includes free delivery service

Breakeven point = 24 $MXN Average price of competitors = 18 $MXN Price of main competitors = 30 $MXN Price of “No manches” company= 30 $MXN

The main channel used for transportation is the tricycle, although in a minority of cases is done on foot. This depends sometimes on the conditions of the city; the weather, traffic conditions, social movements such as demonstrations, road conditions such as closing avenues and streets, personal conditions of the employee etc. are the variables to decide for one method or the other one. Do not forget that is a huge city where every day something unexpected happens.

Source: Ecobici, 2014

The schedule of distribution of the company is divided into two general blocks, that is, the morning hours and evening hours. In both blocks, they done pickups and deliveries and these schedules are constructed based on the labour schedules and academic schedules of the customers of "No manches".

Table 3: Timetable

Morning schedule

7am – 8am 8am – 9am 9am – 10am 10am – 11am 11am – 12pm

Evening schedule

8pm – 9pm 9pm – 10pm 10pm – 11pm

Source: No manches, 2015 Each box has a time slot of 60 minutes in which the dealer can come at any time, so the worker has got more flexibility to arrive at the time indicated by the client and not exhibit a bad image.

This is necessary because in Mexico City the distances are very long and the lateness of people is widespread. Also Mexican culture greatly influences in the timeliness of people and those who go to live to Mexico. The tolerance of the country ranges between 30-45 minutes of lateness, which is a great disrespect.

Figure 2: Transport

IMAGE AND POSITIONING

Customers have a good image of the company and with the offered services. The reason advantages that offers home delivery and the receives each client. They also have which are answered in less than 24 hours within business

Regarding the position of "No manches" these are, the location, the ability to respond to service. With these factors, the company improves their positioning competitors within the zone where operates the

COMERCIAL STRATEGY

As for the business s reasons:

• They do not use direct mail
• They do not visit po
• They do not make too many discounts or bonuses to their best customers.

The company is aware that it needs to improve mainly in these aspects. There are potential customers in areas where the company operates housewives, adults that the company could obtain of supermarkets, kiosks, parks etc.

Figure 4: Flyer, sketch 1

Source: No manches, 2015

GE AND POSITIONING

Customers have a good image of the company and they are highly satisfied services. The reason that they are satisfied with “No manches” that offers home delivery and the individualized and continued each client. They also have a contact number for questions or complaints, wered in less than 24 hours within business days...

Regarding the position of "No manches", there are some factors ation, the ability to respond to any problem and provid factors, the company improves their positioning within the zone where operates the company.

As for the business strategy, the company has to improve it for the following

direct mail, as well as: mail shots, advertising at street etc.

potential new customers

not make too many discounts or bonuses to their best customers.

The company is aware that it needs to improve mainly in these aspects. There potential customers in areas where the company operates, as wel s that the company could obtain advertising at street, at the entranc parks etc.

are highly satisfied “No manches”, are the continued relation that a contact number for questions or complaints,

factors that affect, providing a different regarding other

for the following

sing at street etc.

not make too many discounts or bonuses to their best customers.

The company is aware that it needs to improve mainly in these aspects. There as well as, young, , at the entrance

On the other hand, the company almost does not make visits neither gives advertising to potential new customers, these are the customers that every month come to live to the houses of the company "Rooms época" and so far the company was content with these clients, but from now it aims to carry out visits each week to deliver "flyers" to these people that are arriving each week.

Pricing strategies help to increase the sales and especially to retain customers, also, this makes that customer satisfaction increases because they perceived the same service for a better price. Henceforth the company intends to announce the discounts on the website.

QUALITY

Quality is an important issue at the negotiations with customers, besides, market and customers requirement is growing. The quality is an important issue and also it is that customers perceive it, because they analyse the price-quality relation offered by the company and that is why "No manches" tries to improve this relation. To do this the company must have:

• Staff technically competent, responsible, experienced, properly trained and with the requested skills.
• Elaboration of training plans to enhance human resources.
• Appropriate materials to the service delivery.
• Establish closer relations with their suppliers.
• Develop questionnaires to receive the "feedback" from customers
• Organize the processes to achieve quality in management.

INTERNAL MANAGEMENT

When the company receives an order, these arrive with a reference number to the facilities. Each of these orders are arranged chronologically and assigned a working time. The customer already knows what the price is and the delivery time, so employees have to comply with that deadline. The internal management is not very complex, as there are few employees and the chain of command is very short, so the communication is usually fluid and there are few misunderstandings or failures in management. If any failure occurs they analyse what was the cause, in order to solve it.

ORGANIZATION AND HR

In the company there are 4 employees, two persons working in direct labours and the other two are responsible for managing and administering the company.

every day and these volumes can vary greatly from one day to other, so the company has to know how much inputs are needed per kilo. Another problem that has occurred in this area is the loss of references. The disorder and the disruption of the shelves have caused problems and they have mixed bags of different clients.

TECHNOLOGY

Regarding the technological level of "No manches", is very basic, they have not automated machines or programmed systems in the service delivery, besides they have never made an investment in research and development but the company is aware that there is a national institution of laundries that invests in R & D so it is deliberating to become a member.

BRAND AND LOGO

"No manches" is a pun that hides a double meaning. The first one, its literal meaning (don’t stain) and the second one, is a Mexican metaphor that means "do not bother". Thus, the company uses the humour to get customers and also it is easy to remember its name.

Regarding the logo, it is a man with a washing machine on his head, to communicate the idea that it is a dynamic service (home delivery).

These are the corporate colours of the company:

• Blue: It represents the most important element that uses, water.

-White: Symbolizes the final result of the work, cleaning.

ENVIRONMENTAL POLICY

As for the environmental policy, they basically comply with the provisions of the law. Notably, the machinery of "No manches" has a good energy rating, this indicates the degree of efficiency of electrical appliances, and the better it is, the less energy is consumed in the process of laundry and drying. This saves energy and it is beneficial for business and the environment, also helps to recover the investment of this machinery immediately. Also, the dryer uses quite energy so the company knows that the spin cycle must be perfect to save in the drying process.

Source: No manches, 2015

Figure 5: Logo

As regards the cost of water, its consumption is much more difficult to reduce but the industrial machinery that has the company uses less water than other devices in the same treatment. In addition, they try to use recycled water pipes because water is not for human consumption, it is better for the environment and it is cheaper. Finally it makes all transportation by tricycle to avoid contaminating.

In short, the company has some small measures that are beneficial to them and for the environment but corporate social responsibility (CSR) is very limited and insignificant.

2.2.-EXTERNAL ANALYSIS

2.2.1.-MACROENVIRONMENT

The external analysis studies the environment in which the company operates also its evolution and business influence. In this case, we must consider that the factors listed here, are outside the company, so is minimal the control on them or in some cases none. However, they affect the organization and determine its future. From the external analysis we will obtain the opportunities and threats. (Mediano and Beristain, 2015).

This analysis is structured into two blocks, on the one hand there are all those external factors affecting the company but also affecting other companies, and in many cases the society in general. Its relevance varies depending on the case but we always should take them into account. These factors are included in the macro-environment, and here would be included the economic, cultural, legal, political and demographic aspects, relating them with the sector of the company. (Mediano and Beristain, 2015).

In addition, there are other factors that make up the micro-environment, and they also are outside the company. However, these ones affect more directly the company, because there are closer. Here, is convenient to analyse the market, competitors, customers, prescribers and providers. (Mediano and Beristain, 2015).

Social and cultural environment

For a long time is very common in Mexico people to use laundry services, agglomerations usually reduce people time, therefore they opt for alternatives to help them; that is why it is a widespread practice the use of laundries in Mexico, especially in the cities. As evidence, in 1941 was born the national institution of laundries (CANALAVA) as the union of owners of dry cleaners, laundromats and ironing stores from Mexico City.

Economic environment

In the economic ambit, 2016 will be a year of great challenges for Mexico because of the devaluation of the exchange rate, lower incomes, lower oil prices etc. But in the laundry sector, the competitiveness of the industry is promoted using strategic projects. Agreements are managed at various levels of the government to

2.2.2.-MICROENVIRONMENT

The analysis of the sector must analyse from the perspective of the offer, that is to say, all those companies which compete for the same customers. Thus, the sector is formed for all the companies that offer their products and services to the same market.

The sector

At the end of 2015, these are the data provided by INEGI^4 :

• There are 34,323 establishments dedicated to laundry, dry cleaning and ironing stores in the country, which 33,352 are micro-companies, 677 are located in the range of 6 to 10 employees, 239 of 11 to 30 employees, 22 of 31 to 50 employees, 19 of 51 to 100 employees, 8 in the range of 101 to 250 employees and only 6 from 251 to more employees.
• The 33.80% of the industry is concentrated in Mexico City (capital). The 35% in the states located in the centre of the country. The 17% in the North of the country. The 14.20% in the South of the country.
• In the last decade the sector has had an increase of 70% (INEGI, 2003 = 19.158 laundries and dry cleaning stores).
• There are about 34 thousand businesses of laundries, dry cleaning and ironing stores in the country.
• The sector's sales are more than 6 billion pesos annually.
• The country has 5,000 laundries and 3,000 of them, are in the Mexico city
• The 85-90% of the sector's companies are family businesses, small businesses and self-employment companies (these ones rarely live up to the third generation). (CANALAVA, 2015).
• The lifetime of the companies in the sector: It is very rare that these businesses live up to the third generation. In the market are inexistent laundries with 30 or 40 years because the second or third generation does not follow with the business. (CANALAVA, 2015).

We observe that (INADEM^5 ):

• The production and consumption of this service is domestic

(^4) Data obtained from www.inegi.org.mx (^5) Instituto nacional del emprendedor

• The demand shows a steady growth, due to the lack of time to do the laundry, so people prefer to get a quick and convenient service.
• The service is provided for all kinds and ages of people
• The niches to develop in this sector, are growing cities with a concentration of population and touristic centres, these ones represent an opportunity for the company.
• In recent years, the prices of this sector have increased according to the national consumer price index.

On the other hand, the newspaper El Financiero (2014) says that even the Mexican market is in a constant economic crisis, Mexicans prefer to send their clothes to a laundry rather than making themselves the work. The proof is that in the last two decades the laundry business has had a growth of 40%.

However not everything is perfect in this industry, because the activity is unprofitable for the entrepreneur, while every three years prices are increased in this service, the owners of these businesses have absorbed increases of 36% in their inputs in the same period.

Another problem that entrepreneurs have in this sector is that they are facing the problem of the informal industry that in recent years have proliferated, lowering the prices of those services. Also, many formal companies have caused the declination of the prices too.

The suppliers

The company has a very small number of suppliers which are essential for the functioning of the company.

The most important suppliers for the company are the public ones which are government property; these are water, gas and electricity. As for the inputs for the cleaning process and movable assets, the company has got two suppliers in specific but always it has alternatives and makes decisions studying the quality, price, effectiveness etc.

The competition

The market of laundry is very fragmented, so there are a huge number of competitors and since the end of 2014 the activity of the this industry is stagnant, in addition the companies in the sector live a price war to create more competition in order to get customers and finally they also have to fight with a large informal market that represents an unfair competition.