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C p r h P lAt S f ae Ic ( w .a a oc m)Ali t rs re . o yi t a l ot r,n .w wp l l . . l g s e ev d g o o w ot o rh

Confidentiality Agreement
The undersigned reader acknowledges that the information provided by _________________________ in this marketing plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _________________________. It is acknowledged by reader that information to be furnished in this marketing plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to ________________________. Upon request, this document is to be immediately returned to _________________________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a marketing plan. It does not imply an offering of securities.

Table Of Contents
1.0 2.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 .2 .3 .3 .4 .4 .5 .5 .5 .6 .6 .6 .6 .6 .7 .7 .7 .7 .7 .7 .8 .8 .8 .8

Situation Analysis . . . . . . . . . . . 2.1 Market Summary . . . . . . . 2.1.1 Market Demographics 2.1.2 Market Needs . . . . 2.1.3 Market Trends . . . . 2.1.4 Market Growth . . . . 2.2 SWOT Analysis . . . . . . . . . 2.2.1 Strengths . . . . . . 2.2.2 Weaknesses . . . . . 2.2.3 Opportunities . . . . 2.2.4 Threats . . . . . . . 2.3 Competition . . . . . . . . . . 2.4 Services . . . . . . . . . . . . 2.5 Keys to Success . . . . . . . . 2.6 Critical Issues . . . . . . . . . Marketing Strategy . . . . . 3.1 Mission . . . . . . 3.2 Marketing Objectives 3.3 Financial Objectives 3.4 Target Marketing . . 3.5 Positioning . . . . 3.6 Strategy Pyramids . 3.7 Marketing Mix . . . 3.8 Marketing Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.0

4.0

Financials, Budgets, and Forecasts . . . . . . . . . . . . . . . . . . . . . . . 9 4.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 4.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Controls 11 5.1 Implementation Milestones . . . . . . . . . . . . . . . . . . . . . . 12 5.2 Marketing Organization . . . . . . . . . . . . . . . . . . . . . . . . 12 5.3 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . 13

5.0

Campus Laundry
1.0 Executive Summary
Campus Laundry (CL) is a full-service coin-op laundry (washing, drying, and folding) service dedicated to consistently providing high customer satisfaction by rendering reliable machines and furnishing a clean, enjoyable atmosphere at a competitive price. There are several laundromats that currently serve the University of Michigan campus in Ann Arbor, however they tend to be quite run-down. In addition to having a clean facility that strives to ensure complete customer satisfaction, CL will be set up to provide an environment conducive to studying. This will be accomplished by having ample desks for customers to use while they are doing their laundry. CL will also provide a wireless digital subscriber line (DSL) solution for customers to use. The wireless DSL will be inexpensive to set up and maintain, yet offer significant value for the waiting students. CL will have a coffee shop with light food offerings to encourage people to stay longer and spend more money. The margins for the coffee shop are quite good so it will provide a good source of revenue. The on-staff laundromat operator will be able to service both the laundromat and the coffee bar at the same time. During peak times CL will have a second staff member serving the bar exclusively. Campus Laundrys mission is to provide the customer with the most pleasant laundry experience in the Ann Arbor area. We exist to attract and maintain customers. With a strict adherence to this maxim, success will be ensured. Our services will exceed the expectations of the customers. Market research indicates that a clean, quiet laundromat is in large demand for the Ann Arbor area. Currently, most of the laundromats have a wait to use the machines, and have poor quality facilities and surroundings. Having a superior service will allow CL to quickly gain market share.

Annual Sales Forecast

$250,000

$200,000

$150,000

Students Low income customers

$100,000

$50,000

$0 2003 2004 2005

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Table 1.0: Sales Forecast Sales Forecast Sales Students Low income customers Total Sales Direct Cost of Sales Students Low income customers Subtotal Cost of Sales 2003 $65,225 $13,045 $78,270 2003 $22,829 $4,566 $27,395 2004 $165,443 $33,089 $198,532 2004 $57,905 $11,581 $69,486 2005 $187,887 $37,577 $225,464 2005 $65,760 $13,152 $78,913

2.0 Situation Analysis

Campus Laundry is entering its first year as a start-up business. The idea has been well received and marketing will be critical to the success of the business. CL offers a clean, convenient laundry facility for those that do their own laundry, as well as those in need of optional services. CL will lure customers in with excellent customer service, a study-conducive environment, and wireless Internet services for the waiting customer.

2.1 Market Summary

CL has captured good information about the market and knows a fair amount about the target customers. The facility offers self-serve laundry services as well as optional services such as fullservice washing, drying and folding. CLs market information will be used to better understand who is served, their specific needs, and how CL can better communicate with them.

Target Markets

Students Low-income customers

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Table 2.1: Target Market Forecast Target Market Forecast Potential Customers Students Low-income customers Total Growth 7% 5% 6.28% 2003 11,121 6,434 17,555 2004 11,899 6,756 18,655 2005 12,732 7,094 19,826 2006 13,623 7,449 21,072 2007 14,577 7,821 22,398 CAGR 7.00% 5.00% 6.28%

2.1.1 Market Demographics

The profile for the Campus Laundry customer consists of the following geographic, demographic, and behavior factors: Geographics The immediate geographic target is the city of Ann Arbor with 138,090 people. A seven-mile geographic area will be served. The total targeted population is 17,555. Demographics Male and females of relatively equal percentages. Age 19-45, with 67% of that group clustering between ages 20-29. Students living in off-campus facilities, and a smaller percentage of students from oncampus housing who: 1. Want to escape the dorm facilities; 2. Prefer more quiet surroundings. Students' incomes are generally based on a combination of work income, parental income, or student loans. Behavior Factors Prefer to be productive while they are doing their laundry, a relatively frequent and timeconsuming exercise. Although they cannot afford their own laundry facilities, they do appreciate a clean, quiet facility instead of the common noisy, low-quality landromats that currently serve the Ann Arbor community.

2.1.2 Market Needs

Campus Laundry is providing its customers with a quiet clean laundry facility that ensures customer satisfaction, as well as providing an environment that is conducive to productive activities such as studying. CL seeks to fulfill the following benefits that are important to its customers. Top-level customer service: The target customers have a fair amount of discretionary income and appreciate good customer service. CL will provide a service that will appeal to these customers. Clean facilities: A comfortable, stylish location and furnishings that offers clients a higherquality alternative than is currently available. Study conducive environment: Because doing laundry occupies a fair amount of time in a persons week, there is value in being able to be productive while you are doing your laundry. Offering an environment that is supportive of studying with high-speed wireless Page 3

Campus Laundry
Internet access will allow customer to be productive with their laundry and other responsibilities.

2.1.3 Market Trends

The market trends for laundromats are: Increased automation: Technology has driven down the costs of equipment that offer technological efficiencies. Using technology reduces the dependence on human labor. Industry consolidation: Large corporations are constantly buying up mom and pop operations.

Market Forecast
25,000

20,000

15,000

Students
10,000

Low-income customers

5,000

0 2003 2004 2005 2006 2007

2.1.4 Market Growth

The market growth for the self-serve laundry agency has seen 4% market growth. This growth rate is supposed to be maintained for the next three years.

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Target Market Growth

7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Students Low-income customers

2.2 SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing Campus Laundry.

2.2.1 Strengths
Well-trained staff to ensure optimum customer service. Well thought-out business model addressing market demand. Differentiated facilities.

2.2.2 Weaknesses
Competition, although there is a significant differentiation between the competitors. A limited marketing budget needed to create brand awareness. Loan is required to start the business up.

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Campus Laundry
2.2.3 Opportunities
Participation in a steadily growing industry. Large target market. Consistent market demand due to the reoccuring need to clean clothes.

2.2.4 Threats
Seasonal market demand due to many students leaving during the summer. Future/potential competition from a large franchised business. A large increase in homes built in the area that will decrease the reliance on laundromats.

2.3 Competition
There are several competitors, who serve the student and low-income market; facilities are similar, dirty, noisy, with low-end services. Some competitors offer additional services beyond self serve laundry, but most just offer self serve machines.

2.4 Services
Campus Laundry offers the following services: Self-serve washers and dryers; large front load washers, top load washers, normal and large commercial dryers are available. Full service washing, drying, and folding. Relatively quiet environment for studying. Wireless Internet access for customers with laptops and wireless cards (WI-FI). Coffee bar with light food menu.

2.5 Keys to Success

CLs keys to success are: Superior customer service. Clean, quiet and convenient facility.

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Campus Laundry
2.6 Critical Issues
The critical issue that CL faces as a start-up is to ensure that it is balancing the debt load adequately with the revenue stream, ensuring economic sustainability.

3.0 Marketing Strategy

The marketing strategy will be using a combination of advertising, promotional efforts and wordof-mouth programs.

3.1 Mission
Campus Laundrys mission is to provide the customer with the most pleasant laundry experience in the Ann Arbor area. We exist to attract and maintain customers. With a strict adherence to this maxim, success will be ensured. Our services will exceed the expectations of the customers.

3.2 Marketing Objectives

Maintain steady, controlled growth. Decrease customer acquisition costs by 2% per quarter. Steadily increase market penetration.

3.3 Financial Objectives

Double-digit growth for the first three years. Reduce overhead by 3% per year. Holding spending, as a percentage of revenues, at a steady level.

3.4 Target Marketing

The market can be segmented into one main group and one minor group. The main group is University of Michigan students. The minor group low-income individuals and families that do not have laundry abilities at their home/apartments.

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3.5 Positioning
CL will position itself as a clean, customer centered laundromat that provides a reasonably quiet facility for studying or Internet-based research/surfing. The desired positioning will be achieved by leveraging its competitive edge of a customer-centric facility. The storefront is relatively quiet and always clean, creating a atmosphere conducive to getting work done.

3.6 Strategy Pyramids

The single objective is to position CL as the premier laundromat serving the University of Michigan students of Ann Arbor. Campus Laundry plans to quickly increasing market penetration through superior service offerings. The marketing strategy will first seek to build customer awareness regarding the services provided, then develop the customer base, and finally work toward gathering a loyal following. The message that CL seeks to communicate is that its clean and quiet facility is orientated toward students. This message will be communicated by various methods. The first method will be advertisements placed in the student newspaper. The second method will be a promotional effort based primarily on coupons. The third method of communication will be networking. Networking will be used to generate the word-of-mouth referrals.

3.7 Marketing Mix

Campus Laundrys marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service. Pricing: The different services will have set prices posted. Distribution: All services will be distributed from CLs store. Advertising and promotion: CL will use three forms of advertising to generate awareness about their service offerings: an ad in the student newspaper, a coupon promotional, and networking. Customer service: CL will take the approach that outstanding customer service is necessary for developing a sustainable, profitable business.

3.8 Marketing Research

CL used two forms of market research to gain insight into its proposed market. The first type of research was a survey that was distributed to students. The goal of the survey was to determine the most important elements, or value, that a laundromat has for students. The results of the survey were quite illuminating. The other market research that was conducted was a competitive analysis of the different players in the market. CL studied what their product offerings were, how they differentiated themselves, how much demand they had, and how they interacted with customers. Both marketing research efforts were very helpful to CL in validating its idea and gave it the confidence to move forward with the project.

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Campus Laundry
4.0 Financials, Budgets, and Forecasts
This section will offer a financial overview of Campus Laundry as it relates to the marketing activities. CL will address Break-even Analysis, Sales Forecasts, Expenses Forecasts, and how these activities link with the Marketing Strategy.

4.1 Break-even Analysis

The Break-even Analysis indicates that $8,666 is need in monthly revenue to meet expenses.

Break-even Analysis
$6,000 $4,000 $2,000 $0 ($2,000) ($4,000) ($6,000) $0 $2,896 $5,792 $8,688 $11,584 $14,480

Monthly break-even point

Break-even point = where line intersects with 0

Table 4.1: Break-even Analysis Break-even Analysis: Monthly Units Break-even Monthly Sales Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost 1,083 $8,666 $8.00 $2.80 $5,633

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4.2 Sales Forecast
The sales forecast indicates that growth should be fairly steady as more and more people become aware of CL and the services offered.

Monthly Sales Forecast

$12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Students Low income customers

Table 4.2: Sales Forecast Sales Forecast Sales Students Low income customers Total Sales Direct Cost of Sales Students Low income customers Subtotal Cost of Sales 2003 $65,225 $13,045 $78,270 2003 $22,829 $4,566 $27,395 2004 $165,443 $33,089 $198,532 2004 $57,905 $11,581 $69,486 2005 $187,887 $37,577 $225,464 2005 $65,760 $13,152 $78,913

4.3 Expense Forecast

The Expenses Forecast will be used as a tool to keep the department on target and provide indicators when modifications need to be made to ensure proper implementation of the Marketing Strategy.

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Campus Laundry

Monthly Expense Budget

$4,000 $3,500 $3,000 $2,500

Advertisements
$2,000 $1,500 $1,000 $500 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Promotions Networking

Table 4.3: Marketing Expense Budget Marketing Expense Budget Advertisements Promotions Networking Total Sales and Marketing Expenses Percent of Sales Contribution Margin Contribution Margin / Sales 2003 $20,620 $4,124 $2,062 -----------$26,806 34.25% $24,070 30.75% 2004 $25,000 $5,000 $2,500 -----------$32,500 16.37% $96,546 48.63% 2005 $28,000 $5,600 $2,800 -----------$36,400 16.14% $110,152 48.86%

5.0 Controls
The purpose of the marketing plan is to serve as a guide for the organization. The following areas will be monitored to gauge performance. Revenue: monthly and annual, based on plan compared to actual sales. Expenses: monthly and annual, based on plan compared to actual expenses. New customer percentage, that meets or exceeds stated expectations. Customer satisfaction, that generated repeat purchases and referrals.

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5.1 Implementation Milestones
The following milestones identify the key marketing programs. It is important to accomplish each one on time and on budget.

Milestones

Marketing plan completion

Advertising campaign #1

Promotional campaign #1

Advertising campaign #2

Advertising campaign #2

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Table 5.1: Milestones Milestones Milestone Marketing plan completion Advertising campaign #1 Promotional campaign #1 Advertising campaign #2 Advertising campaign #2 Totals Plan Start Date 1/1/03 2/1/03 2/1/03 7/1/03 7/1/03 End Date 2/1/03 6/30/03 6/30/03 12/30/03 12/30/03 Budget $0 $6,820 $1,544 $13,800 $2,580 $24,744 Manager Jason Jason Jason Jason Jason Department Marketing Marketing Marketing Marketing Marketing

5.2 Marketing Organization

Jason Cleanly will be responsible for the marketing activities. This will include assessing the investment of each marketing effort with the return it provides. A return on investment analysis will be conducted, to the degree possible, to determine if these campaigns merit repeating in the future.

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5.3 Contingency Planning
Difficulties and Risks Problems generating visibility. Overly aggressive and debilitating actions by competitors. Worst Case Risks Include Determining that the business cannot support itself on an ongoing basis. Having to liquidate equipment to cover liabilities.

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Appendix: Campus Laundry

Table 1.0 Sales Forecast Sales Forecast Sales Students Low income customers Total Sales Direct Cost of Sales Students Low income customers Subtotal Cost of Sales Plan Jan $1,500 $300 $1,800 Jan $525 $105 $630 Feb $2,234 $447 $2,681 Feb $782 $156 $938 Mar $3,433 $687 $4,120 Mar $1,202 $240 $1,442 Apr $4,432 $886 $5,318 Apr $1,551 $310 $1,861 May $5,009 $1,002 $6,011 May $1,753 $351 $2,104 Jun $5,533 $1,107 $6,640 Jun $1,937 $387 $2,324 Jul $6,008 $1,202 $7,210 Jul $2,103 $421 $2,523 Aug $6,200 $1,240 $7,440 Aug $2,170 $434 $2,604 Sep $7,000 $1,400 $8,400 Sep $2,450 $490 $2,940 Oct $7,234 $1,447 $8,681 Oct $2,532 $506 $3,038 Nov $7,987 $1,597 $9,584 Nov $2,795 $559 $3,355 Dec $8,655 $1,731 $10,386 Dec $3,029 $606 $3,635

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Appendix: Campus Laundry

Table 4.2 Sales Forecast Sales Forecast Sales Students Low income customers Total Sales Direct Cost of Sales Students Low income customers Subtotal Cost of Sales Plan Jan $1,500 $300 $1,800 Jan $525 $105 $630 Feb $2,234 $447 $2,681 Feb $782 $156 $938 Mar $3,433 $687 $4,120 Mar $1,202 $240 $1,442 Apr $4,432 $886 $5,318 Apr $1,551 $310 $1,861 May $5,009 $1,002 $6,011 May $1,753 $351 $2,104 Jun $5,533 $1,107 $6,640 Jun $1,937 $387 $2,324 Jul $6,008 $1,202 $7,210 Jul $2,103 $421 $2,523 Aug $6,200 $1,240 $7,440 Aug $2,170 $434 $2,604 Sep $7,000 $1,400 $8,400 Sep $2,450 $490 $2,940 Oct $7,234 $1,447 $8,681 Oct $2,532 $506 $3,038 Nov $7,987 $1,597 $9,584 Nov $2,795 $559 $3,355 Dec $8,655 $1,731 $10,386 Dec $3,029 $606 $3,635

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Appendix: Campus Laundry

Table 4.3 Marketing Expense Budget Marketing Expense Budget Advertisements Promotions Networking Total Sales and Marketing Expenses Percent of Sales Contribution Margin Contribution Margin / Sales Jan $1,000 $200 $100 -----------$1,300 72.22% ($130) -7.22% Feb $1,120 $224 $112 -----------$1,456 54.31% $287 10.69% Mar $1,300 $260 $130 -----------$1,690 41.02% $988 23.98% Apr $1,500 $300 $150 -----------$1,950 36.67% $1,507 28.33% May $1,800 $360 $180 -----------$2,340 38.93% $1,567 26.07% Jun $1,000 $200 $100 -----------$1,300 19.58% $3,016 45.42% Jul $1,200 $240 $120 -----------$1,560 21.64% $3,126 43.36% Aug $1,400 $280 $140 -----------$1,820 24.46% $3,016 40.54% Sep $2,000 $400 $200 -----------$2,600 30.95% $2,860 34.05% Oct $2,500 $500 $250 -----------$3,250 37.44% $2,393 27.56% Nov $2,800 $560 $280 -----------$3,640 37.98% $2,590 27.02% Dec $3,000 $600 $300 -----------$3,900 37.55% $2,851 27.45%

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