Case Study Laundry Services

MARKET ANALYSIS

According to Dr. Philip Kotler, marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines measures and quantifies the size of the identified market and the profit potential.

That is why Drop and Go Laundry Services will give importance to the marketing aspect for the reason that it will be a means to attract customers. Attracting customers to avail laundry services will result to a profitable business and maximizing profit. Giving significance to marketing will also help create good customer relationship that can be obtain by giving quality service and meeting customer satisfaction.

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A result of good quality of laundry service will be repeat sales and positive word-of-mouth for the business. Quality products help to maintain customer satisfaction and loyalty and reduce the risk and cost of replacing faulty goods. (Kumar Chetan, 2015)

TARGET MARKET

The chosen target market by the proponents are the people residing in Cavite City because of its large number of population. The proponents deem that the area has sufficient population to support the business since as of 2016, Cavite City has 106,641 residents. The existing market share cover people who are working individuals who have no time doing their laundry, students living in dormitories, industrial establishments, and those who are not fond of washing their clothes that has the capacity to avail laundry services.

DEMAND ANALYSIS In establishing and maintaining a business, demand is a vital factor to consider. For DnG to operate, it is essential to know if there is a demand for the service that will be offered to the public. Through interviews with the existing laundry shop owners in Cavite City, the proponents obtain the knowledge that there is a demand for laundry

On average, despite of economic status or age, an ordinary individual consumes 6 kilos of laundry in a week. This is based on the assumption that an ordinary individual should at least have their laundry at the end of the week. Demand will not be stable. Therefore, the proponents estimate that demand will increase by 3% after the first year of the business. This percentage is based on the percentage rate of increase in the population and on the research survey conducted in the individuals of Cavite City. Applying this percentage, the demand is computed and projected as follows:

Table 3.2

Projected Annual Demand for the Next Five years

Year Projected Population Potential Customers (35%) Average Annual Consumption Demand Increase (%) Projected Demand

2017 110,619 9,678 288 kls. 0 11,149,056 kls.

2018 114,746 10,040 288 kls. 3 11,566,381.2 kls.

2019 119,026 10,414 288 kls. 3 11,997,240.42kls

2020 123,466 10,803 288 kls. 3 12,445,380.09kls

2021 128,071 11,206 288 kls. 3 12,909,648.18kls

*Potential Customers = No. of household *