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Secondary competitor
A long established and experienced company of a greater size will also diminish our company’s profit to some extent. Cleaning services-Birmingham provides similar services and office cleaning, which is established for over 10 years. It was rated highly in the Google search engine and also the good reviews from customers. This implies that it has a favorable reputation. Additionally, offering a free quote is its sales strategy to attract customers (Cleaningservices-Birmingham, 2012).
The study from Mintel 2009 demonstrated that franchise operations and small local business are the features in this industry. In particular, the larger franchise operations are more likely to develop new service opportunities. As a result, the franchise operations are the competitive groups in this industry. Two core franchise operations have been founded in Birmingham, which are Time for You and Kingsmaid.
Time for You was set up in 1993, currently owning 147 franchises. It targets private households and normal house cleaning. The strong network and abundant experience enables it to account for a big maket share. Furthermore, customers can specifically select the cleaner that they need. Finally, the reliable and the professional cleaner will be the characteristics, since they have insured over 2 million pounds for accidental damage.
Kingsmaid has provided commercial and domestic cleaning services since 2003. The company is characterised as a new and exclusive tailor-maid domestic cleaning service. Besides, they also promote an insured, guaranteed, flexible, secure and safe cleaning service. Most importantly, they place particular emphasis on using environmetally friendly products to prevent some chemical allergies
Source from：Mintel, 2009
Additionally, from Molly Maid’s research (2010), the 1.53 million households in UK are likely to spend over £1.6 billiona year on cleaning, which indicates the valuation of the house cleaning market in the UK exceeds £1.6 billion. Thus, the market still has a great potential for growth. One of the reasons is because an increasing number of women have jobs. This suggests they spend less time on domestic chores. Recently, families exhibit a greater acceptance in employing somone to clean their houses and also have a greater willingness to spend money on house cleaning. Additionally, a growing number of affluent retired people tend to spend more time in leisure activities, instead of doing the house cleaning. Finally, a large propotion of residents in the UK have disposable income. This means that a cleaning service is more affordable than before, hence the industry has infinite capacity for growth (Molly Maid, 2010).
1.1 Target segments
In terms of the entity of this industry, the demographic segmentation is the basis for us to address our targets. Family size, life cycle and income are the main demographic factors for segmentation. The reason for choosing the demographic segmentation is to understand customers’ needs and wants are diversified with demographic variables. Moreover, demographic factors are important for the enterprises to assess the size of the target markets efficiently (Kolter, et al, 2008, p413). At first, the target segments will be the wealthy one income groups and the affluent two income families.
The wealthy single-income families are the potential customers, and the age of this family is about 40-55. Based on research from Mintel (2009), the expenditure on travelling abroad and taking short breaks take up 23% and 21% for those wealthy people. The figures suggest that the spouses who do not have an occupation would have more leisure time, and therefore are less engaged in house chores.The two income families spend more time on their occupations, which can be demonstrated in table 2, 24.9% and 16.9% of people have to work about 6 to 9 hours or over 9 hours respectively. Since women are now increasingly in work, this means they spend less time on domestic chores. The spare time of the households depends on their working hours and Table 3 displays people are spending less time on cleaning and tidying up. Hence, this group is our target, and the business will strive to help them save time and provide a comfortable and clean environment.
