House Hold Service Provider

7/29/2019 House Hold Service Provider

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GLOBSYN BUSINESS SCHOOL

REPORT-1

Household Service Providers

GROUP MEMBERS:

VASUNDHARA KEDIA

PRERNA BAJAJ

JASLEEN OBEROI


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TOPIC 1

Corporate mission

This business deals with household service that we shall provide to the middle and upper middleclass people of Kolkata. With the rapid increase in the standard of living and income the people of

Kolkata are hardly exposed to the opportunity to spend time over house hold chores. In order to

minimise the time and cost associated with the same, we are generating the scope to pursue our

business of providing house hold services. We will basically deal with providing a range of service

solutions like carpentry, electricians, plumbers, Car Wash services as for the start.

In this fast paced lifestyle, we are one stop solution for the in numerous issues working people deal

with daily at their homes. Thus, we choose the same as our mission to provide hospitality services

for the working class in this city.

Vision

Our vision is to see our company provide household service solutions on a wide range so that we can

serve better to all the social classes of the society who need these services, so that all the services

can be provided in a single basket.

Defining the business

House hold service provider is all about giving valuable service solution to those household people

who are lacking behind with their time. In the steadfast environment, the price conscious working

class of the society would rather spend a certain amount to avail such services than performthemselves between time constraints.

A prevalent issue is that of electricians and carpenters who delay their visit to houses when in urgent

requirement for days and also, they charge an expensive rate for a meagre service provided.

We have identifies these problems faced by such household that have now become generic. Based

on the same we have designed this business in which we shall offer such customers with services

from electricians, plumbers, car washers , and carpenters to begin with.

Internal Appraisal of the firm

Our competitive advantage comes from the untapped opportunity which has not been gauged so far

by any organisation. Our core competence comes from the economical rates of services we shall

provide as against the individual workers. However, as a start off the company will face geographical

constraints, income range constraints, constraints occurring from limitations with respect to services

provided.


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Setting the corporate objectives

Based on strengths, competitive advantages and resources at one side, and the business

opportunities emerging in the environment on the other side the business aims to expand anddevelop quality of goods and services, focus on selection and training of management personnel

and earn profits. Companies set the corporate objectives in the areas like sales, profit margin,

asset formation, productivity, market share and corporate image. The market research would help

us to identify better the demands of households and there by understand better, the sales volume

and profit margins.

Formulating the corporate strategy

Formulation of strategy is key to corporate planning process. The company shall adopt a pause/

proceed with caution strategy. The company needs to test the grounds before going ahead with a

grand strategy for expansion. Thus, the scope of the operation have been limited with respect to

location, services provided, and income class.

PORTERS GENERIC STRATEGY

Michael Porter first recognized the generic strategies for success in a competitive market. Three

situations are important:

1) Cost Leadership

2) Differenciation

3) Focus


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The company will adopt a Cost Focus Strategy. Considering the low cost packages and

focusing on the working and high income earning Segment in Salt Lake.

Ansoff Product/Market Expansion Grid

It is a portfolio planning tool for identifying organisation growth opportunities.

The company adopts a Product development strategy as our offering in new in comparison to the

alternatives in the current market. Alternatives are the agencies which send these electricians and

carpenters or the individuals who offer the same services independently, not associated or

representing any organisation.


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Topic 2

Competitive Environment

Monopoly: This is a single firm selling in the market for which there is no close substitute

Our company is a monopoly in the market . There are certain service providers who provide such

services but the difference is that we are providing services like the electrician , plumber , carpenter

and car wash under one roof.

Economic environment

The economic aspect of a nation has a major impact on the marketing strategies of the

organisations. Because the economic environment consists of factors that affect consumer

purchasing power and spending patterns. Depending on these two the marketing has to design the

strategies. Economic factors include business cycles, inflation, unemployment, interest rates, savings

pattern, debt, credit availability and income. Nations vary greatly in level and distribution of income

and industrial structure.

There are 4 types of economic structures

Industrialising (developing) economies:

These economies produce a considerable amount of products on their own. Hence instead of

importing finished products, they mostly import raw materials, technology and high-end

equipments. A small rich section and a growing middle class create excellent opportunity for themarketers. India is currently in this stage of economy.

Legal Environment

The security of the consumers is vital for us so if there is any misconduct on the part of the service

provider then we would be solely responsible for the outcome.

Demographic Environment

Demography is the study of population characteristics that are used to describe consumers.

Demographics tell marketers who are the current and potential customers, where are they and how

many are likely to buy what the marketer is selling. Demography is the study of human populations

in terms of size, density, location, age, sex, race, occupation, and other statistics. Our services are

basically for the middle class and the upper middle class of people residing in saltlake.


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Topic 3

Porters Approach to competitive analysis

Porter suggested that the nature and intensity of competition within any industry is determined bythe interaction of the five key forces as follows:

The threat of new entrant the company aims to create an entry barrier by providing fast

services and affordable packages. Thus, creating it difficult for other companies to sustain. Our

company shall have a first mover advantage.

The power of buyers - Since the company targets at the working class and the upper middleand upper classes, consumers are not assumed to be extremely price sensitive however the prices

shall be set keeping the affordability criteria of working middle class people living in this area.

The threat of substitutes

No substitutes exist for the services we offer.

The extent of competitive rivalry The company shall face rivalry from individual serviceproviders/ specialists , electrical shops, electrical appliance companies who manufacture products

and provide after sale services, furniture showroom who provide warrenty and whose items are

being used in households.

The power of suppliers The suppliers in our case are the electricians, carpenters, car washers

and plumbers whom we would hire and who would work exclusively under our company name.

However, there suppliers can demand a raise in salary looking at high direct customer contact

they would be exposed to. Also they can internally build their own personal contact with these

household and work independently after working hours at these households at cheaper prices and

thus try to pull our market share.

Crafting competitive strategies as leader/challenger/follower/nicher

Our company shall be a market leader since we have a first mover advantage. Extensive advertising

through print media in the form of pamphlets and stalls in various blocks and also personal selling in

initial months would boast customer awareness and consumer response.


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TOPIC 4

Consumer Analysis

The consumer behaviour or buyer behaviour is influenced by several factors or forces. They are:o Cultural factors

o Social factors

o Personal factors

o Psychological or internal factors

Social class:

Social class is not determined by a single factor, such as income but it is measured as a combination

of various factors, such as income, occupation, education, authority, power, property ownership,

life styles,consumption pattern etc.

There are three different social classes in our society. They are upper class, middle class and lowerclass.

These three social classes differ in their buying behaviour. The classes that we are targeting are the

middle class and the upper class who stay in their own houses or apartments in the saltlake region.

These class of people always have a need for the services we provide including carpenter plumber

and electrician services at a lower cost . They may or may not require car wash service as per their

needs. Our main aim is to provide them with these services at a much lower cost .

Consumer Buying Process

Model of purchase-decision process

Problem Recognition

Information search

Evaluation of alternatives

Purchase decision

Post-purchase


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Topic 6: Product strategy

Theodore Levitts Product Level Hierarchy

Unsought products: These are the products that a customer purchases when he is faced with asudden problem that makes it vitally necessary to purchase the product. There may be two such

cases, where customers are:

Unaware of the need- regular medical check-up Unwilling to think about it before need arises- umbrellas, repair services, life and general

insurance

Marketers use personal selling and advertising to market these products. Missionary selling is quite

appropriate here.

Electricity, carpentry, plumbing are issues are issues that arise suddenly are require immediate or

quick response/solution. The clubbing of these services which we are providing has the features of

Unsought Goods.

Product-Mix strategy

The product mix strategy to be adopted by the firm shall depend on the results of the market

research we r conducting. The types of packages, services available under each package, the amount

of times the services would be available in a month, price of each packages, costing under eachpackage, demand for such package shall depend on the data collected in market research.


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PLC concept

The company is new and thus it shall be at the introductory phase of the product lifecycle. The main

focus would be to create customer awareness and build uniqueness for this product that we are

offering highlighting the timely service delivery promise and the affordable rates of service.

Following are the characteristics of the elements of a business in the introductory stage which is

applicable for our company as well.


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TOPIC 8

Distribution Strategy

A channel is a passageway that allows the happening of certain processes. The term

marketing channel was first used to represent a trade channel covering the distance between

the producer and the consumer. Marketing is understood to be an exchange process

Filling the gaps: The first and foremost role of a marketing channel

is to fill the gaps between the production and consumption process.

As because we are aiming at the consumers of salt lake we are locating our office at salt lake so that,

whenever the consumers need the service , the service could be provided to them at no time an

without any delay .

Designing Distribution Channels

Designing deals with the decisions associated with forming a new distribution channel or

modifying an existing one.

Our target as of now would be the houses in the salt lake region and further if we think of

diversifying our services to other parts of Kolkata , we would have to form new distribution channels

throughout the city so as to maximize our service capacity .

Documents

House Hold Service Provider