Marketing Launch Plan

Mktg 761
Spring 2008
SDSU

Prepared By:
Tim Clark
Kaci Gordon
Randy Gorman
Sara Katz
Michael Morris
Nitin Walia
Table of Contents
Introduction......................................................................................................................................4

Statement of Product Concept.........................................................................................................5

Ideation...........................................................................................................................5
Concept Statement.........................................................................................................5
Current Status................................................................................................................6
Statement of Research Methodologies and Findings.......................................................................6

Concept Test...................................................................................................................6
Prototype Testing............................................................................................................7
Market-use Test..............................................................................................................7
Product Refinement / Alterations.....................................................................................................8

Result of research findings.............................................................................................8

Product Refinement........................................................................................................9
Market Situation...............................................................................................................................9

Target Market.................................................................................................................9
Competitive Analysis....................................................................................................10
Market Size/Dynamic...................................................................................................13
Opportunities and Issues Analysis.................................................................................................14

SWOT Analysis............................................................................................................14
Federal Regulations.....................................................................................................15
Key Issues/Hurdles......................................................................................................15
Objectives......................................................................................................................................16

Brand Awareness.........................................................................................................16
Contribution to Brand Image/Equity.............................................................................16
ATAR Model..................................................................................................................16
Marketing Launch Strategies.........................................................................................................19

Segmentation Strategy.................................................................................................19
Positioning Recommendations.....................................................................................20
Product Strategies........................................................................................................20
Distribution Strategies..................................................................................................22
Pricing Strategies.........................................................................................................23
Integrated Marketing Communications Strategies.......................................................24
Role of the Sales Force................................................................................................25
Launch Action Programs................................................................................................................26

Timing and Controls.....................................................................................................26

Marketing Launch Budget............................................................................................27

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 Contingency Plans.......................................................................................................27
Appendix A: Survey Questions & Results.....................................................................................29

Appendix B: Market Data..............................................................................................................32

Appendix C: Porter’s 5 Forces.......................................................................................................33

Appendix D: Integrated Marketing Communications Plan Action Plan Flow Diagram...............34

Appendix E: Product Launch Cities..............................................................................................36

Appendix F: Marketing Communications Advertising and Promotional Budget..........................37

Appendix G: Ideation to Product Launch Timeline.......................................................................39

Table of Figures
Figure 1 Importance Map.................................................................................................................9

Figure 2 Overall Industry Revenues..............................................................................................13

Figure 3 ATAR Estimates...............................................................................................................17

Figure 4 Product Strategy Diagram...............................................................................................21

Figure 5 Distribution Strategy Diagram........................................................................................22

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Introduction

Molly Maid Green is a line-extension of the traditional house cleaning service offered by

the Molly Maid, Inc. franchise. Molly Maid Green offers a house cleaning service using green

cleaning products, clothing, tools and equipment. Molly Maid Green cleaners will be certified

by Green Seal Inc.. The house cleaners will use products that are non-toxic and biodegradable,

with a formula makeup of various vegetable surfactants (which help the dissolvability of the

ingredients), emulsifiers, deionized water, organic fragrances and preservatives. There will be no

VOCs (volatile organic compounds). Molly Maid Green will use vacuums with HEPA filtration

that are certified by the Carpet & Rug Institute’s Green Label program. The Molly Maid Green

service providers will wear organic cotton uniforms.

We will leverage the fact that we clean over a million homes every year; an average of

one home every two minutes in the United States alone. Our product is a cleaning service

tailored to our client’s home and lifestyle. With families busier than ever, they can now feel like

they are managing their social responsibility with the selection of a simple service upgrade. This

new green option will help solidify our existing customer base by garnering additional brand

loyalty. Further, it will give first-time or occasional users a reason to utilize our service. This

green option can completely change our end-user experience.

Currently there is no standard definition of green. The Consumer Report’s website 1

agrees that the use of green is rather self-serving. “Green is a general claim that implies that the

product or packaging has some kind of environmental benefit or that it causes no harm to the

environment. There is currently no standard definition for the term. Unless otherwise specified,

1
Consumer Reports, http://www.greenerchoices.org/eco-
labels/label.cfm?LabelID=152&searchType=Label&searchValue=green&refpage=labelSearch&refqstr=label%3Dgr
een

4
there is no organization independently certifying this claim. The producer or manufacturer

decides whether to use the claim and is not free from its own self-interest”1. The fact that the

label “green” does not have much meaning other than the consumer’s perception that is healthier

than a non-green product will work to our advantage. This lack of standard will not impact Molly

Maids Green since the green offering will adapt the green service offering as the industry

standards change.

Statement of Product Concept

Ideation

We will exploit current consumption changes in the cleaning industry by offering this

green service option. With the growing popularity of the green movement worldwide, we feel

Molly Maid Inc. should take action. This service option will provide franchisees and customers

an opportunity to eliminate the use of potentially harmful chemical-based cleaning products in

their homes. Concept responsiveness is anticipated to be high. Our Mission statement is to

“Increase the quality of life to families by offering a superior environmentally friendly home

cleaning service to households.” Providing this all-natural approach to a cleaner home is

essential in order to maintain our position as one of the top cleaning businesses in the industry.

Concept Statement

For busy families that are concerned about their family and the environment, Molly

Maid Green is the green household cleaning service that offers a convenient way to keep your

home clean and safe using our all-natural, non-toxic cleaning products that rival or surpass the

clean achieved from traditional cleaning products, with the added health and safety benefits

obtained from the elimination of man-made chemicals from your house. Our staff uses only

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organic cotton cleaning cloths and clothing, and vacuums with Green Seal’s certification. Your

babies, pets, and families will thank you. These benefits are available for only $6 more per visit

than you currently pay your excellent Molly Maid service.

Current Status

The creation of the Molly Maid Green service offering has completed the opportunity

identification and selection, concept generation, concept evaluation, and development phases of

the new product process, and will enter the launch phase shortly.

Statement of Research Methodologies and Findings

Concept Test

Our respondent group consisted of diverse members of the San Diego community and a

sampling of others around the country. We made an effort to contact a wide variety of

demographics.

Our team conducted qualitative research consisting of interviews and informal focus

groups. When speaking with these people, we used the survey questions in Appendix A: Survey

Questions & Results as a guide, and asked more in-depth questions where appropriate. Our team

also conducted quantitative research using an on-line survey. Survey questions and results are

included in Appendix A.

The sequence of survey questions was designed so that respondents were first questioned

regarding their current use of green cleaners. Respondents were then asked about their current

use of a professional housecleaner. Those people that currently use a professional housecleaner

were asked detailed questions about their current service, presented with the concept statement,

and then asked their likelihood to try. Questions regarding the respondents’ demographics

concluded the survey.

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Prototype Testing

Our service combines a maid service currently available to the market, eco-friendly green

cleaners currently available to the market, organic clothing, and eco-friendly tools. Since a new-

to-the-market product is not involved, prototype testing is not necessary.

Market-use Test

The primary goal of market-use testing for this service will be to assure the delivery of a

quality product. Market-use testing will consist of a monadic test, where consumers will receive

the Molly Maid Green service for a 30-day period. During this time, maids will use only eco-

friendly products. They will record any issues that arise (for example: a lack of eco-friendly

options for cleaning a particular area) and the team will work to address those issues as

seamlessly as possible. We will also record the ease of access to green cleaners, their actual cost,

and how long they last. General comments from the maids regarding ease of use and

performance improvements will be gathered and analyzed to determine the manageability level

of the service.

The user group will be chosen from the local San Diego area. Half of the user group will

be chosen from existing Molly Maid customers. The other half of the user group will consist of

both users that have another professional housecleaner, or do not currently have a housecleaning

service. User reactions will be gathered during the service time. During the market-use test,

modifications to the service will be made as the result of maid and user recommendations.

The team will also keep an eye on competitive reaction to the market-use test. Since this

service is easy to copy, special attention will be paid to the message delivered to the consumer

and the customer service levels of the maids.

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Product Refinement / Alterations

Result of research findings

Interview and survey respondents were positive toward the concept of Molly Maid

Green. Sixty-two percent (62%) of respondents currently use green cleaners, so most people

were able to immediately relate to our goals. Our respondents are mostly likely to use green

cleaners due to a concern about toxicity from chemical-based cleaners (66%) and a concern for

the environment (78%).

Another encouraging point is that fifty-four percent (54%) of users encourage others to

use green cleaners, as well. We believe this is due to the strong social influences that drive

people to use green cleaners themselves. This should translate into significant word-of-mouth

advertising from customers.

After asking respondents about their current use of green cleaners, we asked them about

their current use of a professional housecleaner. We were alarmed to find that 90% of

respondents that use a professional housecleaner use a sole proprietor versus a service

corporation. That percentage was much higher than expected, and is discussed in more detail in

the Key Issues/Hurdles section. A more promising statistic is that only 25% of housecleaners

that provide their own cleaning products provide green products.

Respondents were then presented with the Molly Maid Green concept statement. The

top-two-box score for the likelihood to buy was 50%. The top-two-box score for the willingness

to pay $6 more per visit for the use of green cleaners was 62%. These numbers are encouraging,

and supported by the percentage of respondents that currently use green cleaners (also 62%).

The importance map below shows the majority of respondents “strongly agree” or

“agree” that green cleaners are healthier than chemical-based cleaners and contribute to a better

8
and healthier environment. The map also shows that most respondents weigh health benefits of

green cleaners about the same as environmental concerns.

H e a lt h ie r
1

E n v ir o n m e n t
5 4 3 2 1

5
Figure 1 Importance Map

Product Refinement

Survey results show that respondents are unsure of the efficacy of green cleaners. With

an average score of 2.62, most respondents are not sure that green cleaners are more effective

than chemical-based cleaners. With this in mind, we will emphasis the performance of green

cleaners when communicating the benefits of the Molly Maid Green service to consumers.

Market Situation

Target Market

Demographic Profile

According to MROI, people who use house cleaning services are predominantly

Caucasian married couples with kids ages 6+. They typically live in homes valued at more than

$500K and earn an annual household income of more than $150K. The Northeast and Western

United States index greater than 100 in terms of using house cleaning services.

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Psychographic Profile

The typical house-cleaning consumers are double income families. Both parents work

long days and drive carpools for their children’s activities. They are proud to own their own

home, but are just too tired at the end of the day to take care of their house as they would like to.

There are two primary reasons that these consumers would choose a green cleaning service over

a traditional cleaning service.

1. Eco-conscious

The Natural Marketing Institute found that the number of U.S. consumers using natural

household cleaning products grew by 13% from 2004 to 2005.2 This trend has been driven by a

heightened awareness of the environment, as well as green cleaning products becoming more

effective, less expensive and more readily available.

2. Chemical Sensitivity/Allergies

The United States Environmental Protection Agency (EPA) found that indoor air can be up to

five times more polluted than outside air.3 This pollution can be caused by many factors

including gas stoves, carpet and household cleaning products. The American Lung Association

conducted research that drew a connection between short term increases in indoor pollution and

an increased number of heart attacks, particularly in elderly patients. They also saw an increase

of asthma attacks in children and hospitalization of patients with acute respiratory diseases.

Competitive Analysis

The Janitorial Services industry is highly fragmented and highly competitive.4 The

barriers to entry are low as home cleaning has low skill and capital requirements (Appendix C:

Porter’s Five Forces).

2
LOHAS Market 2005 Research Review: Marketplace Opportunities Abound.”
3
“The Air We Breathe – Green Cleaning Reduces Risk for Allergy and Asthma Sufferers.”
www.greencleancertified.com accessed on 4/15/08
4
“Janitorial Service in the US.” IBISWorld Industry Report. February 28, 2008.

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 As more Americans are becoming eco-conscious, the cleaning industry has begun to

embrace the green cleaning concept. The only large house cleaning franchise that has begun

offering green services is Maid Brigades. However, there are hundreds of smaller local cleaning

services that offer green cleaning services. The market size is considerable and growing, so there

is room for smaller local, and established national competitors.

Franchise Competitors

Maid Brigades: Maid Brigades has more than 400 franchises across the U.S. Maid Brigades

launched a Certified Green residential cleaning service in 2007.5 All franchisees use products

that are certified by Green Seal Inc., a non-profit organization that sets green standards. Maid

Brigade franchisees also use vacuums that are certified by the Carpet & Rug Institute’s Green

Label program, microfiber cloths instead of paper towels and concentrated cleaning solutions.

To promote their new service, Maid Brigades hired Annie B. Bond, a nationally acclaimed author

and expert on environmental living, to be their green spokesperson and consultant. Maid

Brigades no longer offers a traditional, non-green, cleaning service.

Merry Maids: Merry Maids is the largest cleaning service in the U.S. with more than 900

franchises. Founded in 1979 in Omaha, Nebraska, Merry Maids cleans more than 300,000

homes per month. Currently, Merry Maids does not have a green offering.

The Maids: The Maids was also founded in Nebraska in 1979. The Maids boasts a unique 22

step Healthy Touch® Cleaning system and state of the art equipment like back pack vacuums

with HEPA filtration. It does not however, offer a green cleaning service.

The chart below summarizes Molly Maid franchise competitors’ offerings:

5
“Maid Brigade Launches Certified Residential Green Cleaning Service.” http://www.franchisewire.com accessed
on 4/15/08

11
Franchises
Company Green Green Accreditation/Product Franchises Marketing
Green Seal Inc. & Vacuums are
certified by the Carpet & Rug
Co-op advertising, Ad
Molly Maids Yes Institute's Green label program, 450
Slicks, National Media
Microfiber cloths, Green cleaning
solutions, Green uniforms
Green Seal Inc. & Vacuums are
Co-op advertising, Ad
certified by the Carpet & Rug
Slicks, National Media,
Maid Brigade Yes Institute's Green label program, 400
Regional Advertising,
Microfiber cloths, Green cleaning
Annie B. Bond
solutions
Ad Slicks, National
Merry Maids No None 900
Media
Co-op advertising, Ad
Back pack vacuums with HEPA
The Maids No 726 Slicks, National Media,
filtration
Regional Advertising

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Market Size/Dynamic

In 2006, residential housecleaning accounts for 12% of the overall Janitorial services in

the U.S. That translates into $4,852 million dollars of revenue per year.6 Overall industry

revenues are expected to grow at 3.4% per year per the chart below.

REVENUE

Figure 2 Overall Industry Revenues

The green industry is also growing. In 2005, Lifestyles of Health and Sustainability

(LOHAS) described an estimated $209 billion U.S. marketplace for goods and services focused

on health, the environment, and sustainable living.7 They estimate 19% of the U.S. Population or

41 million people are extremely concerned about the environment, while an additional 58% of

the U.S. population is moderately concerned about the environment.

6
“Janitorial Service in the US.” IBISWorld Industry Report. February 28, 2008.
7
“LOHAS Background.” http://www.lohas.com/about.html accessed on 4/16/08

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Opportunities and Issues Analysis

SWOT Analysis

Strengths

• Lifestyle options that are all natural, non-toxic, safe, and effective are actively promoted by

major public figures and society as a whole.

• Our product is a cleaning service tailored to our client’s home and lifestyle.

• We will be the first to actively promote a green service option.

• We expect quick franchise adoption from both current franchisees and potential ones.

Weaknesses

• Green cleaning service is easily copied and swift competitive reaction is expected.

• Many consumers that use professional housecleaning services use a sole proprietor. It may

be difficult to convince these consumers to switch to a service corporation.

Opportunities

• The cleaning industry is one of the fastest growing segments of the U.S. economy.

• The green cleaning industry is growing quickly.

• Residential and cleaning is a tremendous industry with no signs of slowing down.

• Green efforts are receiving a massive amount of public relations attention.

Threats

• The market size is considerable and growing with plenty of room for both small local and

established national competitors.

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Federal Regulations

There are several federal regulatory agencies that may impact the Molly Maid Green
solutions and usage, advertising and marketing. These agencies are the U.S. Consumer Product
Safety Commission, U.S. Environmental Protection Agency (EPA) , National Institutes of Health
(NIH, and the Centers for Disease Control and Prevention (CDC). An example of the affect on
the industry is “The Kid Safe Chemicals Act”.8 This act was recently introduced into the
legislature. It will mandate that manufacturers test their product (if it contains one of some 300
listed chemicals) and provide hazard and exposure information to the EPA and consumers. This
law may change Molly Maid Green marketing message to “Molly Maids Green keeps your Kids
safe by only using Green Cleaning solutions that comply with the Kid’s Safe Chemical Act of
2008”.

Key Issues/Hurdles

Survey respondents are unsure of the effectiveness of green cleaners (refer to Appendix

A, question 5). Many are not convinced that green cleaners clean as well as traditional chemical

cleaners. In order to gain significant consumer adoption, Molly Maid, Inc. will need to provide

the consumer with scientific evidence that green cleaners clean and remove bacteria as well as

chemical-based cleaners.

Of our survey respondents, ninety percent (90%) use a sole proprietor as their

professional house cleaner. It was theorized that this heavy use of sole proprietors was due to the

unusually high availability of low-cost immigrant labor available in the surveyed community.

These consumers provide their own cleaners (and therefore already choose the cleaners used in

their home) and are unlikely to switch to a service corporation. In order to gain significant

consumer adoption, Molly Maid will need to attract new consumers by emphasizing benefits of

using a service corporation, such as reliability and insurance provisions.

8
http://www.greenerchoices.org/products.cfm?product=greencleaning&page=GovtIndustry)

15
 Maid Brigade currently offers a green cleaning service. They do not offer cleaning

services using non-green products. They are an established industry leader and has first mover

advantage.

Objectives

Brand Awareness

Our goals are to increase brand awareness among current Molly Maid customer base to

100% and among the general population to 25% by the end of year 1. Our adoption goal is 30%

or greater (i.e., service upgrade selection) within the first 12 months.

Contribution to Brand Image/Equity

Molly Maid Green will increase consumer brand affinity for Molly Maid, Inc. We will

measure this using the net promoter score (NPS) pre- and post-study. The use of Molly Maid

Green should increase the NPS post-study and have a positive impact on our revenue stream.

The cleaning industry is one of the fastest growing segments of the U.S. economy.

Residential cleaning is a tremendous industry with no signs of slowing down. Our franchisee’s

only need to verify liquidity of $30,000 to apply for a new franchise, with total start-up and

initial operating costs estimated at just under $100,000. With leverage available to assist with

start-up and operating costs, and with Molly Maid Inc. consistently being named one of the top

franchise opportunities by magazines like Entrepreneur, new Molly Maid franchise locations

should continue their positive annual growth rate.

ATAR Model

One of the prescreening tools available is the ATAR Model (Awareness, Trial,

Availability and Repeat). As instructed we will only focus on the first three areas, and we will

16
not address the adopting percentage that eventually become repeat purchasers, or how many

times they repeat in a given year. The metrics behind the model require estimating the

percentage of our target consumer base that are aware of the product, would try the product if

available, and actually have the product available to them.

Estimates

Market Product Use Component

Item Research Concept Test Test Testing Market Test

Market Units XX X X
Awareness X X X
Trial XX X
Availability XX

N/A
Repeat Not Applicable
Consumption XX X X
Price/Unit XX X X X
Cost/Unit X
Figure 3 ATAR Estimates

In the ATAR Estimates spreadsheet above, some categories are considered ‘best source

for that item’ marked by XX and others are considered ‘some knowledge gained’ marked by X.

We only performed qualitative research with very limited focus group discussions and

quantitative research with our survey. Our survey results for ‘Trial’ when asked “How likely

would you be to use a green cleaning service?” yielded a 50% top 2 box score. Our survey

results for ‘Price/Unit’ when asked “Would you pay $6 more per visit for the use of only green

products?” yielded a 62% top-two-box score. If we deflate our top-two-box score by 15%-20%

for ‘definitely’ and 45%-50% for ‘probably’ to account for overstating, we would end up with

results around 35% and 45% respectively.

Other statistics used for assumptions were 450 Molly Maid franchisees in the US,

franchise establishment year of 1984 (which is when the company first began franchising), 17

million unique households cleaned by Molly Maid around the world, approximately 12 million

17
US households using paid domestic cleaning services, 4,000 US Molly Maid cars, and 2 homes

cleaned every minute in the US (8 hour days considered). This information was taken from

Franchise Solutions 2008 published data, and from a 2008 interview with Molly Maid President

Kristi Mailloux.

Buying Unit = Head of household (HOH). For Molly Maid Green this will be the male

or female HOH making the decisions about cleaning services. Aware = Buying unit hears about

existence of new product with differentiating characteristics. Here we will assume 95%

awareness with our existing customer base since we have a current database. Availability =

Effort required to find product given that buyer wants to try the product. Here we will assume

90% availability since there is some likelihood not all franchisees will push or adopt the service.

Trial = Use of product at some cost to buyer. In our case this would be purchase since we are not

offering free samples.

Buying Units - existing customer base

450 franchisees x (365 - 62 est. off days / 3 eight hr
Test 1 5,454,000 cleanings
blocks x 60 x 2) =
Test 2 4,000 x 4/day x (365 - 62 estimated off days) = 4,848,000 cleanings
Average 5,454,000 + 4,848,000 / 2 = 5,151,000 cleanings

US Customers 5,151,000 / (2.88 cleanings per month x 12 months) = 149,045 customers

149,045 customers x 95% awareness x 90% availability x 40% (average

Results
would buy and would pay %) = 50,973

$6 Incremental profit/unit - $0.50 cost/unit including materials and

additional promotion = $5.50 x 50,973 = $280,354

There are some key limitations to the ATAR Model. Primarily, all three areas we used for

analysis and estimation are based heavily on estimation without any specific empirical support.

18
When dealing with such a large sample size, and using percentages and multiplication, a small

error can result in a huge swing in our estimates.

Marketing Launch Strategies

Segmentation Strategy

Molly Maid Green will segment the market both geographically and behaviorally. We are

focusing on 25 cities for the product launch (refer to section Appendix E). These markets were

chosen in order to get a cross-regional sample to ensure the concept can be successful on a

national scale.

Molly Maid will target its marketing launch plan on busy eco-conscious families.

Through relevant messaging in targeted mediums, Molly Maid will be able to communicate a

solution to the consumer’s pain point. The primary area of focus will be on the franchisee’s

existing customer base. The green option will be offered as an upgrade to our current packages.

We anticipate that new customers as well as existing customers will drive sales – this is not a

zero-sum market.

The green option will not damage our traditional service and reputation. There is a risk

that current consumers may not react well when learning that their conventional cleaning

products may contain harmful chemical pollutants. However, recent public awareness of green

alternatives to many aspects of our daily lives has already informed most of the public of these

risks. We will focus on the positive attributes of our natural cleaning products. We will push the

option as a return to nature. Messaging will center on a ‘wonderfully fresh, aromatic, naturally

sparkling clean’ result.

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Positioning Recommendations

Molly Maid will position its green cleaning service as the “greenest clean” or the most

environmentally friendly house cleaning service. By focusing on the product attribute, we can

differentiate our service from other franchises like Maid Brigade whose product is not as robust.

The positioning statement is:

For busy families that are concerned about their family and the environment, Molly Maid

Green is the green household cleaning service that offers a convenient way to keep your

home clean and safe using our all-natural, non-toxic cleaning products that rival or

surpass the clean achieved from traditional cleaning products, with the added health and

safety benefits obtained from the elimination of man-made chemicals from your house.

Product Strategies

With the introduction of Molly Maid Green, Molly Maid Inc. will offer two services:

their traditional house cleaning service and green house cleaning. Molly Maid Green will

generate customers through viral marketing and cross-selling. The existing Molly Maid

customer base will be incentivized to share their Molly Maid Green experience with friends and

acquaintances via word-of-mouth. The green message will be reinforced by the Molly Maid web

site. Customers will also be captured from the conversion of traditional Molly Maid customers

and from new Molly Maid customers, including those with sensitivities to chemicals such as

individuals with autism or allergies. Since the profit margin for Molly Maid Green customers is

greater than the margin for traditional Molly Maid customers, conversion is both acceptable and

encouraged. The current Molly Maid product mix includes daily, weekly, monthly, one-time, and

deep-cleaning services. This mix will be duplicated for the Molly Maid Green service offering.

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 Daily
Cleaning
Monthly
Cleaning
Deep
Molly Maid
Cleaning
One-Time
Cleaning
Weekly
Cleaning

Daily
Cleaning
Monthly
Cleaning
Molly Maid Deep
Green Cleaning
One-Time
Cleaning

Weekly
Cleaning

Figure 4 Product Strategy Diagram

In the future, Molly Maid plans to house brand their organic cleaning products and offer

them to the general public. When this occurs, an enhancement of the product mix will be

required.

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Distribution Strategies

Molly Maid is a franchise service business. Its distribution strategy is B2b2C. The

franchisor, Molly Maid Inc., a division of Service Brands International, provides its franchisees

with everything required to operate a Molly Maid franchise: training, business tools, ongoing

support, and marketing support. The franchisee distributes the Molly Maid service directly to the

customer.

Customer 1

Customer 2
b
Molly Maid
(Franchisee)

Customer n
b
Molly Maid
(Franchisee)

B
Molly Maid Inc.
Franchisor

b
Molly Maid
(Franchisee)

Figure 5 Distribution Strategy Diagram

Molly Maid Inc. offers “Right Start” training and operations training to teach the

franchisee everything they need to know to start and operate Molly Maid. Training is offered at

Molly Maid headquarters in Ann Arbor, Michigan, at the franchisee’s location, and at regional

22
training centers. Molly Maid Inc. supplies the franchisee with comprehensive business

management software to operate the business. Ongoing support includes newsletters, meeting,

toll-free phone support, grand opening kits, Internet access, security and safety procedures, field

operations assistance and evaluations, regional service managers, and purchasing cooperatives.

Molly Maid Inc. also provides the co-op advertising, ad slicks, and national media campaigns.

Molly Maid Green is an additional service offering that will be provided by Molly Maid

Inc. to its current and future franchisees under the terms of their current franchise agreements.

The current Molly Maid distribution channel will be expanded to include those customers

desiring a “green” cleaning.

Molly Maid Inc. will assist the franchisee to reach the end customer and provide the

franchisee with the marketing materials to spread the Molly Maid Green message. With the

franchisee’s permission, all current Molly Maid customers will be telephoned to inform them of

the new service offering. In addition, plant seed mailer cards will be sent to all current and

potential customers, flyers will be left with all current customers during their regularly scheduled

cleaning, and door hangers will be left for the neighbors of current customers.

Pricing Strategies

Molly Maid Green will follow a value pricing strategy and price its green service in

accordance with the results of the marketing survey discussed previously. Molly Maid Green

service will be offered at a $6.00 per visit premium above the cost of a traditional Molly Maid

service call. Additional product costs are estimated at 3% based on a preliminary per ounce

comparable. This would result in a greater margin for Molly Maid, Inc., and a superior gross

profit margin for our franchisees, so we do not expect any issues with franchisee adoption or

challenges from current franchisees.

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 Only one competitor, Maid Brigade, offers an equivalent “green” cleaning service. It is

unknown how much prices increased when the green service was introduced. Perry Phillips, the

Executive Director of the Association of Residential Cleaning Professionals estimates that most

green cleaning services cost about $5 to $10 more per hour.9

Our market surveys indicate that a $6.00 per visit premium will generate acceptance. By

pricing our service below that of Maid Brigade, we expect to convert 10% of Maid Brigade’s

green customers to our Molly Maid Green service.

Integrated Marketing Communications Strategies

The strategy behind the IMC (Integrated Marketing Communication) plan is to ride the

wave of publicity, interest, and enthusiasm for an environmentally friendly lifestyle which is

formally celebrated on Earth Day. We have planned our product launch on April 22, Earth Day

2009.

The IMC Plan, Appendix D: Integrated Marketing Communications Plan Action Plan

Flow Diagram, illustrates the media mix and timing of the IMC plan. The perspective of the IMC

plan is from the consumer of the Molly Maid Green service. The Molly Maid franchisees

education and support will begin six months prior to the launch date. This schedule is reflected

in Appendix G: Ideation to Product Launch Timeline. The franchisee support involves

positioning and pricing, supplying the distribution channel with the organic cleaning solutions,

supplies and tools (vacuums and clothing), instructions on use and implementation, and

promotional plan awareness.

Consumer awareness, product trial, and repeated product use is the goal of the IMC plan. The

plan has three components: publicity, advertising and promotions.

9
Onion, Amanda. “Americans Embracing ‘Green Cleaning’.”
http://abcnews.go.com/Technology/Business/story?id=1544322 accessed on 4/16/08

24
 • The media mix leverages business magazines and newspaper in the publicity phase. The

business magazines will create awareness in the investor and entrepreneurial space for

Molly Maid and Service Brands. The newspapers will generate awareness for the

consumer; the large national newspapers will create a buzz along the “green” efforts. The

Wall Street Journal and USA Today audience aligns with our market demographics.

• The advertising piece of the IMC uses cable TV, FSI (Free-Standing Inserts), direct

mailers and Internet search portals to further target our market segments. The desired

cable TV channels are HGTV (Home and Garden TV) and Oxygen. These were selected

because their content aligns with the home and the environment and audience matches

our demographics. The FSIs and direct mailers will create consumer awareness directly

for the target market. Twenty-five metropolitan areas will be targeted in the Earth Day

Launch. The list of areas is shown in Appendix E: Product Launch Cities. Internet search

engine optimization (SEO) will create awareness and sales leads based on the search

keywords like “home green cleaning service molly maid brigade maidpro merry”.

• Promotions target the consumer as well as the franchisee and are designed to stimulate

sales revenue. The media mix of the IMC plan is designed to create awareness and trial

and repeat.

• Please refer to Appendix D: Integrated Marketing Communications Plan Action Plan

Flow Diagram.

Role of the Sales Force

The role of the sales force is unique in the franchisor and franchisee scenario. There is no

“sales force” per se. The franchisor performs the majority of advertising on behalf of the

franchisee. This advertising educates and informs the consumer of the Molly Maid product

25
offerings. Since there is little need for consumer training and education on house cleaning; this

posturing is appropriate.

Launch Action Programs

Timing and Controls

Timing of the launch program will coincide with Earth Day 2009. Earth Day is an

internationally recognized event observed by 174 countries 10. The media focus on global

warming, environmentally safe products, and small ecological footprint companies will be

leveraged to drive product awareness and interest. The advertising timing kicks off on Earth Day

with three sequential weeks of cable TV, followed by alternating bimonthly direct mailers and

FSI’s. The constant use of the search engine optimization will reinforce awareness of the green

offering. These tactics support our strategy to generate repeated product awareness in our target

markets. The IMC plan represents one year of the marketing communications strategy. Six

months after the launch, in October 2009, the plan will be revisited and updated.

Controls of the launch efforts involve the identification of proper performance metrics,

the periodic measurement of these values, and the comparison against predetermined thresholds.

The effectiveness of the launch can only use the trial or use of the product as a metric. Molly

Maid corporate headquarters will be responsible for measuring and aggregating the enterprise

measurements for the franchisees; however each individual franchisee will also measure their

own performance. The franchisee software is capable of providing this sales data to both the

franchisee and Molly Maid headquarters. An initial number of customers and cleanings will be

obtained to create a baseline. Weekly metrics of the Molly Green sales will be collected and

compared to the baseline. The total sales, percent growth (both new and existing to identify

10
http://ww2.earthday.net

26
consumer shifting), relative and absolute, will be used to determine the effectiveness of the

marketing communications strategies.

Marketing Launch Budget

The marketing launch budget is approximately $9.1 million, which can be divided as $8.6

million for advertising and $0.5 million for promotional activities. Appendix F: Marketing

Communications Advertising and Promotional Budget provides additional details of the launch

budget. A cooperative agreement between the Molly Maid headquarters and Molly Maid

franchisees will result in cost sharing of these launch expenses. This marketing and advertising

budget will supplant the current Molly Maids marketing and advertising budget; it does not

represent an absolute increase in spending. Because Molly Maids is a private company, details of

the current budget are unknown. We expect this is a marginal increase of expenses but the

incremental profit will offset this increase. The strategic net outcome is higher profit margins

with a larger customer base.

Contingency Plans

1. Customer unwilling to pay premium for green service

If customers are unwilling to pay the premium for Molly Maid Green service, Molly Maid

will reduce the price of this service to cover the differential cost between their traditional

service and green service. This will maintain Molly Maid’s “earth friendly neighbor”

corporate image and generate good will toward the company. In addition, Molly Maid will

reduce its green service marketing efforts. The service will only be marketed to current

customers and will rely on recommendations from current customers to enroll new

customers.

2. Customers indifferent to green service offering

27
 If there is insufficient interest in the Molly Maid Green service for the buying cooperative to

purchase supplies at 10% above the anticipated price, Molly Maid will discontinue its green

service and continue to offer its traditional cleaning service.

3. Green industry growth slows

If the industry growth slows or goes flat, Molly Maid will continue to offer it’s green service

but will reduce marketing efforts. The service will only be marketed to current customers and

will rely on recommendations from current customers to enroll new customers.

4. Green cleaners proven to be inferior to traditional cleaning chemicals

If green cleaners are scientifically demonstrated to be inferior to traditional cleaners and/or

this discovery eliminates customer interest in a green cleaning option, Molly Maid will

discontinue its green service and continue to offer its traditional cleaning service.

28
Appendix A: Survey Questions & Results

Use of Green Cleaners

1) Do you use green (environmentally friendly) cleaning products in your home?

Yes = 62%
No = 38%
2) If you use green cleaners, approximately what % of your cleaning products are green?
<25% = 36 (45%)
25% = 16 (20%)
50% = 16 (20%)
75% = 12 (15%)
100% = 0
* NOTE: Above percentages are for the 80 that responded “Yes” to #1.
3) If you use green cleaners, why (select all that apply)?
 Green cleaners clean better = 16 (20%)
 Allergies to chemicals (or other allergies) = 18 (23%)
 I’m concerned about toxicity = 53 (66%)
 Green cleaners are better for the environment = 62 (78%)
* NOTE: Above percentages are for the 80 that responded “Yes” to #1.
4) If you use green cleaners, what types of cleaners do you use (select all that apply)?
 All-purpose Cleaners (countertops, appliances) = 60 (75%)
 Dishes (liquid, dishwasher) = 19 (24%)
 Glass (mirrors, windows) = 25 (31%)
 Bathroom (tub & tile, daily shower) = 28 (35%)
 Floors (cleaner, mop pads, sweeping cloths) = 23 (29%)
 Laundry (detergent, dryer sheets, fabric softener) = 32 (40%)
 Specialty (granite, marble, stainless steel, wood) = 21 (26%)
 Air Fragrance (room spray, aroma sticks, candles) = 69 (86%) * not believable
* NOTE: Above percentages are for the 80 that responded “Yes” to #1.
5) Do you perceive green cleaners to be as effective as chemical-based cleaners?
1: Definitely 2: Probably 3: Not Sure 4: Probably Not 5: Definitely Not
Average: 2.62
6) Do you believe that using green cleaners in your home:
Strongly Agree Somewhat Agree Not Sure Somewhat Disagree Strongly Disagree
1 2 3 4 5
- Is healthier than using chemical-based products? Average = 1.68
- Contributes to a better/healthier environment? Average = 1.67
- Is socially responsible? Average = 1.71
- Reduce allergies and/or other respiratory issues? Average = 2.26
- Is less expensive than using other cleaning products? Average = 3.48
7) Would you, or do you, encourage other people you know to use green cleaners?
YES = 70 (54%)
NO = 58 (46%)
8) Please tell us below what other green/organic efforts your lifestyle includes? (i.e.: organic foods,
hybrid vehicle, recycling, etc.)
Organic Foods = 42%, Recycle = 65%, Energy Conservation = 15%

29
Use of Professional Housecleaner
* NOTE: Percentages for questions 10 – 14 are for the 60 that responded “Yes” to #9.

9) Do you use a professional housecleaner? (if No, please skip to Demographics section)
YES = 60 (47%)
NO = 69 (53%)
10) Do you use a service corporation (e.g. Molly Maid, Merry Maids, Maid Brigade, MaidPro, etc.) or a
sole proprietor?
Service Corporation = 6 (10%)
Sole Proprietor = 54 (90%)
11) How many times per month? Average = 2.88
12) How many hours per visit? Average = 3.7
13) Who supplies the cleaners used during the cleaning service?
Service provider provides them = 15 (25%)
I provide my own = 45 (75%)
14) Does the service provider offer the use of green cleaners?
YES = 4 (27%)
NO = 11 (73%)
NOTE: For this question, only respondents that answered “Service provider provides them” to question #13
were used.

CONCEPT STATEMENT:
For eco-friendly couples and Families, Molly Maid Green is the organic green household cleaning service
that offers an easy way to have a clean and safe home because of its non-toxic natural cleaning products
and eco-conscious maids. (Please Note: The use of the Molly Maid name is for educational purposes
only. This is not an actual Molly Maid project).

15) How likely would you be to use a green cleaning service? Top 2 Box Score = 50%
Definitely Probably Think I Not Sure Think I Probably Definitely
Would Would Would Would Not Would Not Would Not
1 2 3 4 5 6 7
NOTE: For this question, I considered all 84 people who answered the question, regardless of their response to
question #9. Since we did a 7-point question instead of 5-point question, the “Top 2 Box Score” includes all
responses that were 1, 2, or 3.

16) Would you pay $6 more per visit for the use of only green products? Top 2 Box = 62%
Definitely Probably Think I Not Sure Think I Probably Definitely
Would Would Would Would Not Would Not Would Not
1 2 3 4 5 6 7
NOTE: For this question, I considered all 92 people who answered the question, regardless of their response to
question #9. Since we did a 7-point question instead of 5-point question, the “Top 2 Box Score” includes all
responses that were 1, 2, or 3.

Demographics

17) What is your gender?

30
 FEMALE = 71 (55%)
MALE = 57 (45%)
18) What is your age?
18-24 = 0
25-29 = 24 (19%)
30-39 = 49 (39%)
40-49 = 30 (24%)
50 & up = 22 (18%)
19) What is your marital status?
MARRIED = 92 (74%)
UNMARRIED = 33 (26%)
20) What is your household status?
No Kids = 46 (41%)
Kids at Home = 49 (43%)
Empty Nest = 18 (16%)
21) What is your household work status?
Full-time (Single) = 27 (26%)
Both Full-time (Self & Other) = 41 (39%)
Full-time & Part-time (One Each)= 12 (12%)
Full-time & Unemployed (One Each) = 17 (16%)
Retired (One or Both) = 7 (7%)
22) What is your total household income?
< $50,000 = 3 (2%)
$50,000-$85,000 = 26 (22%)
$85,000-$125,000 = 33 (28%)
> $125,000 = 58 (48%)
23) What is your educational status?
HS Dip = 5 (4%)
2-yr Degree = 9 (7%)
4-yr Degree = 67 (53%)
Grad Degree = 29 (23%)
Post-Grad Degree = 16 (13%)

31
Appendix B: Market Data

W illing to pay premium, 28%

Others, 72%

Total U.S. Population

Results: % of consumer segments agreeing completely/somewhat that they are willing to
spend 20% more for products that are made in an environmentally friendly and
sustainable way. Source: The National Marketing Institute

32
Appendix C: Porter’s 5 Forces

33
Appendix D: Integrated Marketing Communications Plan Action Plan Flow Diagram
2009
Launch on
Earth Day
Weeks -4 -3 -2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
3/25

4/15

4/22

4/29

5/13

5/20

5/27

6/10

6/17

6/24

7/15

7/22

7/29
4/1

4/8

5/6

6/3

7/1

7/8

8/5
P Business Magazines and Websites-
U Business Week
Franchise Times
B
L
Major Newspapers and Websites-
I
USA Today
C Wall Street J ournal
I
T
Morning News Shows-
Y Today Show&GMA,
Opra

Cable TV-
HGTV,
A Oxygen
D
V Newspapers
E FSI
FSI FSI
R (Free Standing
T Inserts)
I Coupon Coupon
S Coupon Value Value Value
I Pack Direct Pack Pack
N Mailers Direct Direct
G Mailers Mailers

Internet PPC (Pay-Per-Click)

P
R Launch
O
M Mother's
O Day
T
I Give Yourself a Summer Break
O
Franchise Sales Contest Franchise Sales Contest
N

34
 2009

Weeks 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37

10/14

10/21

10/28

11/11

11/18

11/25

12/16

12/23

12/30
8/12

8/19

8/26

9/16

9/23

9/30

10/7

11/4

12/2

12/9
9/2

9/9
P
U
B
L
I
C
I
T
Y

A
D
V
E
FSI FSI FSI
R
T
I Coupon Coupon
S Value Value
I Pack Pack
N Direct Direct
G Mailers Mailers

Internet PPC (Pay-Per-Click)

P
R
O
M
O
T
I Cleanupfor the Holiday's
O
Franchise Sales Contest Sales Contest
N

35
Appendix E: Product Launch Cities
No. Metropolitan area
1 New York
2 Los Angeles
3 Chicago
4 Houston
5 Philadelphia
6 Phoenix
7 San Antonio
8 San Diego
9 Dallas
10 San Jose
11 Detroit
12 Indianapolis
13 Jacksonville
14 San Francisco
15 Columbus
16 Austin
17 Memphis
18 Baltimore
19 Fort Worth
20 Charlotte
21 El Paso
22 Milwaukee
23 Seattle
24 Boston
25 Denver

36
Appendix F: Marketing Communications Advertising and Promotional Budget

Advertising $ 8,590,000.00
Promotional $ 540,000.00
Total: $ 9,130,000.00

Production Costs = $ 1,125,000.00

No.
Unit of
Media Costs Units Total
TV $ 500,000.00 2 $ 1,000,000.00 Broadcast TV $ -
Internet $ 5,000.00 1 $ 5,000.00 CATV $ 150,000.00
Print $ 120,000.00 1 $ 120,000.00 Print $ 6,935,000.00
Internet $ 380,000.00
Production Costs $ 1,125,000.00
$ 8,590,000.00

Promotional Costs

Event Anticipated Cost Cost Basis

Launch $ 100,000.00 guessed
Oprah $ - guessed
Mothers Day $ 100,000.00 guessed
Summer Break $ 100,000.00 guessed
Channel Sales Contest A $ 60,000.00 Maui Trip for top 10 Franchisees
Channel Sales Contest B $ 60,000.00 Maui Trip for top 10 Franchisees
Channel Sales Contest B $ 60,000.00 Maui Trip for top 10 Franchisees
Channel Sales Contest C $ 60,000.00 Maui Trip for top 10 Franchisees
Total: $ 540,000.00

37
Recurring Advertising Costs
Cost No
per of Line Component
Week Weeks Costs Costs
Advertising
Cable TV $ 150,000.00
HGTV $ 25,000.00 3 $ 75,000.00
Oxygen $ 25,000.00 3 $ 75,000.00

Internet $ 380,000.00
Pay-per-Click Google $ 10,000.00 38 $ 380,000.00

Print $ 6,935,000.00
Newpaper FSI Metro Areas
35000 25 $ 875,000.00 6 $ 5,250,000.00
Mail Direct Mailer
5000 25 $ 125,000.00 6 $ 750,000.00
Coupon Pack
4500 25 $ 112,500.00 6 $ 675,000.00
Magazine
Home&Garden
Martha Stewart $ 80,000.00 1 $ 80,000.00
GoodHouskeeping $ 50,000.00 1 $ 50,000.00
Real Simple $ 130,000.00 1 $ 130,000.00

$ 1,432,500.00 $ 8,590,000.00
Recurring
and
Production
Costs

38
Appendix G: Ideation to Product Launch Timeline

4/22/09
7/14/08 - 8/4/08 10/6/08 - 4/17/09 Launch
Concept Generation Development (Technical & Marketing )

7/08 8/08 9/08 10/08 11/08 12/08 1/09 2/09 3/09

Concept/Project Evaluation
Opportunity Identification & Selection 8/4/08 - 10/6/08
6/30/08 - 7/14/08

Opportunity Identification & Selection:

• Industry research
• Market research

Concept Generation:
• Brainstorming

Concept & Project Evaluation:

• Regulatory environment research
• Conduct qualitative testing via one-on-one interviews
• Conduct quantitative testing via on-line survey

Development (Technical & Marketing):

• Marketing plan & material
• Buy & place media
• Update supply chain to source the following: cleaning products, uniforms, tools, vacuums
• Obtain certifications
• Revise web site

39
• Employee training

40