Situation Analysis Phil Beck, Elizabeth Berg, Adrienne Martinelli, Emily Mitchell, Holly Noon, Hannah Niemeier, Jenny Marshall, Kendahl Brier
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Table Of Contents
2
Executive Summary
3
Company Analysis
4
Category Analysis
11
Direct Competition
17
Indirect Competition
21
Consumer Analysis
24
SWOT
30
Key Takeaways
37
Sources
39
Executive Summary The objective of this book is to give insight and direction for Tide Dry Cleaners based on our secondary research and analysis of the dry cleaning industry. Our focus is on how Tide Dry Cleaners can appeal to 23 to 34-year-olds through its brand equity, unique positioning and affiliation with GreenEarth Cleaning. The limited number of dry cleaning alternatives and the lack of variation within the industry itself make it a difficult market to compete in, but with our recommendations, Tide Dry Cleaners can become the leading dry cleaners for millennial consumers.
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History of Procter & Gamble Procter and Gamble has been a leading brand since its origin in 1837. P&G, headquartered in Cincinnati, is dedicated to providing quality brands and services to help improve the lives of consumers. They have over 80 leading brands with household names like Tide, Crest, Febreze and Bounty. In 2016, P&G reached a net sales revenue of $65.3 billion and is projecting an increase in revenue for 2017. 2000
1837 P&G was founded.
1984
1939
P&G airs first TV commercial.
Liquid Tide is introduced.
1987
1859
Sales reach $1 million after just 22 years.
1946
Tide detergent hits the market.
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Attempt at laundry detergent tablets.
Becomes largest multinational corporation.
2008 Tide Dry Cleaners is founded.
2005
Tide launches Loads of Hope after Hurricane Katrina.
2012
Tide Pods are introduced.
H i s t o ry o f T i d e Overview America’s #1 detergent wasn’t born overnight. In the early 1930s, P&G scientist David Byerly was on a mission to develop the country’s first heavy duty detergent. After 14 years, Tide was born. From top load washing machine powders to Tide’s most recent launch, Tide PODS® in 2012, the company’s innovations make Tide more than the first detergent. Tide is the detergent. After 70 years in over 40 million American households, Tide thrives as a top-of-themind brand. A leading Procter & Gamble brand, Tide is a major player in the fabric and home care market segment that makes up 32 percent of P&G’s overall net sales. With a minimum of three product improvements per year, Tide often plays off of their commitment to being a dependable, trustworthy brand.
Loads of Hope In 2005, Tide launched Loads of Hope after Hurricane Katrina. A mobile laundromat, the Tide branded truck can travel to places experiencing crises to provide clean clothes to those in need. Since its beginning, the program has helped 45,000 families across the country.
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Tide Products Tide has 70 products available for laundry care including pacs, liquid, powder, stain removers and laundry boosters. Tide PODS®
Launched in 2012, Tide PODS® are available in a variety of scents, or with Febreze™ or Downy built in.
Liquid Tide
Available in standard or High Efficiency, liquid Tide has the largest variety of scents and product combination of any of their product lines. Released in 1984, liquid Tide has continued the legacy Tide began decades ago.
Powder Tide
The first version of Tide detergent was launched in 1946 and was originally called “The Washday Miracle.” Today, powder Tide is available in four different offerings.
Stain Remover
Tide to Go is America’s No. 1 instant stain remover based on sales. Sold as a pen, it makes removing fresh stains on-the-go quick and easy.
Laundry Boosters
Tide Brights + Whites Rescue™ and Tide Odor Rescue™ with Febreze Odor Defense™ can be used in the wash to help brighten and resore whites and eliminate odors, respectively. Tide Rescue replaced Tide Boost at Tide’s in-laundry booster.
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TDC Overview Founded in 2008 in Kansas City, Tide Dry Cleaners entered the market with the objective to “change dry cleaning for good.” Featuring extensive service features and strong brand recognition from the parent company, Tide Dry Cleaners has 38 franchises across the country and nine corporate owned stores. Entering the mom and pop dominated industry required unique selling points that set TDC apart. The P&G branded dry cleaners use Tide and Downy products, allowing for instant association between the dry cleaners and P&G’s long history of being trusted in the American household. TDC also uses a silicone based cleaning product called GreenEarth Cleaning instead of using harsh chemicals like perchloroethylene, or “perc.”
“WE’RE CHANGING DRY CLEANING FOR GOOD.” Tag l i
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Leadership Most of Tide Dry Cleaners are franchised stores, managed by Agile Pursuits Franchising. This limits the risk for the P&G brand with the benefit of high Tide brand recognition for franchisees.
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Services and Prices 7-point inspection process
Minor alterations
Restore colors, whites, blacks
24-hour drop box, kiosk
Drive-thru valet, limited home and business delivery
Inner circle rewards program with discounts and promotions See details below
Same-day service
Inner Circle Rewards Program
Pricing
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Shirt- Laundered
$2.55
Shirt- Dry cleaned
$6.85
Polo
$4.85
Skirt/Sweater
$6.85
Exclusive Email Promotions
Pants/Jeans/Khakis
$6.80
Hassle-Free Point Tracking
Blazer
$7.35
TDC Express Drop Bag
Suit
$13.30
Comforter
$20.00
Down Comforter
$30.00
If customers sign up for the TDC Inner Circle Rewards Program with their email, they receive additional services:
24/7 Drop-Off & Pick-Up Hassle-Free Billing
Tide Dry Cleaning Assets
Brand recognition: Tide Dry Cleaners are backed by a successful, 65-year-old brand. Tide is ranked No. 5 in brand recognition.
Sustainability: By using GreenEarth Cleaning, Tide Dry Cleaners are able to recycle 99 percent of the solution they use.
Affordability: Because of its corporate backing, Tide Dry Cleaners can offer lower prices.
Online presence: Tide Dry Cleaners has a website resource with locations, FAQs and service descriptions.
Brand Positioning Because of Tide’s high brand recognition, the risk to P&G of extending their Tide branded products with Tide Dry Cleaners is high. If customers have a bad experience, their overall perception of Tide can be negatively affected. However, a strong brand recognition makes Tide Dry Cleaners familiar right away. They want to bring the “quality of Tide to your dry cleaned garments.”
“Quality of Tide to your dry cleaned garments.”
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Messaging Strategies upons and o c n o s e li leaners re to Tide Dry C chniques te eir n o ti n te re sages to th s e m d n customer ra ate their b communic t market. rge current ta the rs through e m to s u c get tore Coupons g like in-s in psed g a s s e m ags and la b re to door, but -s . rry tags, in tain them re lp boards, so e h s the postcard g direct to in e b n o customer ed vel. g is focus national le a n o Messagin n a rather th consumer,
Giving Back
Tide Dry Cleaners supports Dress for Success, a program that helps provide disadvantaged women with professional attire and career development tools. TDC locations have places to donate gently used clothing for the cause.
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Economic Trends Over the last decade, the dry cleaning industry has been rapidly declining. In 2012, poor economic conditions led consumers to slow their dry cleaning use or stop completely, forcing many dry cleaners to consolidate or shut down. Since 2012, approximately two percent of dry cleaning establishments have gone out of business, which led to negative industry growth. This trend is expected to continue until at least 2022.
The decline is partially due to economic recessions, but other factors such as unfavorable shifts in consumer preferences and an increase in dry cleaning alternatives are also to blame. However, a trend to note that could possibly lead to industry growth is the increase in $100K household incomes. It is predicted that by 2021, over 25 percent of households will make $100K or more, and people with higher incomes are more likely to regularly use dry cleaning.
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The Industry The actual dry cleaning industry includes more than just the typical brickand-mortar dry cleaning establishment. Any business that offers dry cleaning or laundering services, dry cleaning/laundry dropoff and pick-up, or special cleaning services for specific types of garments and other textile items fall under the dry cleaning umbrella. The industry does not, however, include coin-operated laundromats or businesses that offer linen and uniform rentals.
Where America Dry Cleans
As a whole, the dry cleaning industry maintains $8.8 billion in revenue, which is roughly equal to the revenue produced within the consumer packaged goods laundry industry. In the United States, over 39,000 dry cleaning businesses make up the industry, and they employ nearly 150,000 people. Both retail and commercial dry cleaners are primarily located in metropolitan areas, near more professional jobs and larger businesses and corporations. Consumers who utilize retail dry cleaning are reported to drive approximately two miles to a dry cleaners, so it is often about convenience. Commercial dry cleaners cater to businesses in the hospitality industry, including hospitals, restaurants and hotels, so these dry cleaners are less about convenience and more about capacity.
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Marketing Tactics/ Category Conventions
Dry cleaning services’ primary source of advertising is in coupons, which are typically found in Sunday newspapers, local ad books, and on business websites. The most popular coupon is for first time clients offering between 10 to 20 percent off. Other widely used coupons include offering the customer a set dollar amount off if they spend a certain amount (Get $10 off when you spend $50), a set price off per item up to a certain number of items ($2 off per shirt, up to 10 shirts), and free dry cleaning after a certain number of items (Dry clean four pieces of clothing, and the fifth is free).
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Marketing Tactics/ Category Conventions continued
Many dry cleaners are active on social media, but they do not use it to their full potential. Few actually engage with customers by creating contests, offering exclusive deals, and initiating productive dialogue. Activity mostly includes customer appreciation posts, article reposts, quotes, and images involving their dry cleaning store. As many dry cleaning services are local mom-and-pop shops, some families use their dry cleaning social media accounts as their personal accounts too.
Local television commercials are less common, but have been used before. They are amateurly made usually featuring a knowledgeable employee as the narrator with clips of satisfied customers adding support. The use of testimonials along with worn statements like, “Everyone knows a good dry cleaner is hard to find!” and “You’ll notice the difference!” is huge. All the commercials share contact information for the dry cleaners by including the location(s), website URLs, phone numbers, weekly hours, addresses or review websites.
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External FActors As many businesses are switching from business professional to business casual workwear, clothing designers and retail manufacturers are making the switch as well. Easy to maintain materials that can be washed on the delicate cycle are replacing high maintenance or dryclean-only material. In addition, people are busier than in previous decades, and having clothing that requires a trip to the dry cleaners just adds to their list. While dry cleaning services can be used throughout the year, focusing on advertising during the beginning of fall and the end of spring is more likely to attract new customers. In the beginning of fall, stores release new lines, sales begin, and people are shopping. They are also bringing their winter clothes to the front of their closets and may notice some things need to be cleaned. The end of spring welcomes wedding and graduation season, and those new college graduates entering the workforce need to look their best. An additional bonus of advertising in these seasons is that both are likely to have career fairs.
Barriers to Entry There are already a number of moderate barriers to entry into the dry cleaning industry, and that number is increasing. Although there are approximately 39,000 dry cleaning stores in the U.S., there are only 10 companies that are known nationally. Most dry cleaning businesses are local mom-and-pop shops with less than five employees. The dry cleaning industry is characterized by a very low level of market share concentration. The top four companies make less than three percent of total industry revenue. The market leader, The Huntington Company, has just over two percent of the market share. Other market leaders include US Dry Cleaning Services Corporation and Dry Clean USA, which have a one-half percent market share combined. This hyper-fragmentation isn’t going away - expect the industry to remain localized and fragmented.
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The 'Perc' Problem As of 2011, 85 percent of dry cleaners are still using perchloroethylene, or perc. The petroleum based solvent has been an industry standard since the 1950s despite its classification as a toxic air contaminant and possible carcinogen by the EPA. In the past decade, the industry has been focused on finding environmentally-friendly alternatives to perc. As a result, many dry cleaners have made the change to wet cleaning, which involves using water, alternative cleaners and a specialized washing machine.
GreenEarth “A Kinder Clean.” Founded in Kansas City, Missouri, GreenEarth Cleaning is the the largest brand of environmentally friendly dry cleaning and pledges to provide the world with “a kinder clean.” This type of dry cleaning replaces petrochemical solvents with liquid silicone, a cleaner that is not only better for the environment, but fabrics too.
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Competition Analysis With the majority of dry cleaners being locally owned mom-and-pop shops, there are few franchises that exist in the industry including Tide Dry Cleaners. Although Tide has high brand awareness, TDC does not lead the category because they are relatively new compared to other franchises. However, because TDC is a GreenEarth affiliate and has the brand equity to expand its locations and services, it can easily surpass the competition within the next 10 years.
Direct Competition
Local Mom & Pop
Mom-and-Pop shops are a huge competitor. These long standing shops have the backing of loyal customer bases, and often times younger generations will use the same dry cleaners their parents do. However, many local franchises are known to use perc in their dry cleaning and are not recognizable affiliates of GreenEarth. Some local mom-and-pop shops of the Mid-Missouri area include Mizzou Dry Cleaning and Laundry Service, Splasher’s Laundry, Forum Professional Dry Cleaners, Sunshine Cleaning Unlimited, Pride Cleaners, Oxford Cleaners, Pro Cleaners, and Olive Cleaners.
Direct Competition
Green Earth Affiliates
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Green Earth Affiliate
Though competitors who are affiliated with GreenEarth are few and far between, they do exist. The French Laundry, a Columbia, Missouri, dry cleaner and GreenEarth affiliate was contacted about their prices, which were more expensive than the prices of TDC’s Overland Park, Kansas, location. Other Missouri GreenEarth affiliates include Chesterfield Cleaners, Pleats Finest Cleaners, Premiere Cleaners and Ram Leather Care..
Direct Competition 1. FRSTeam with Apple Cleaners Headquarters: O’Fallon, MO Started: 2006 International: Yes Financing: Yes
GreenEarth Affiliate: Yes Services: Restoration for clothing and textiles, dry cleaning Specialties: Same day delivery
Apple Cleaners is the dry cleaning affiliate owned by FRSTeam. FRSTeam is a fabric and restoration service for damaged textiles and clothing.
2. CRDN with Hangers Dry Cleaning Headquarters: Leawood, KS Started: 2001 International: Yes Financing: Yes
GreenEarth Affiliate: No Services: Restoration for clothing and textiles, dry cleaning Specialties: 24 hour pick up service, guaranteed clean or free
Hangers Cleaners is the dry cleaning affiliate owned by CRDN The Textile Experts. More than 95 percent of items turned in have been saved by FRSTeam.
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Direct Competition 3. OneClick Cleaners Headquarters: Brooklyn, NY Started: 2009 International: Yes Financing: Yes
GreenEarth Affiliate: No Services: Dry cleaning, spot removal, bedding, tailoring Specialties: Free pickup and delivery, same day service
4. Lapels Dry Cleaning Headquarters: Hanover, MA Started: 1999 International: Yes Financing: Yes
GreenEarth Affiliate: Yes Services: Dry cleaning, shoe repair, rug cleaning, alterations Specialties: Same day delivery
5. Tide Dry Cleaning Headquarters: Cincinnati, OH Started: 2008 International: No Financing: No
GreenEarth Affiliate: Yes Services: Dry cleaning, button repairs, bedding, etc. Specialties: (Some) delivery, color reviving “back to black�
Tide Dry Cleaners is ranked in the top five among dry cleaning franchises, trailing Apple Cleaners, Hangers Dry Cleaning, OneClick Cleaners and Lapels Dry Cleaning. Of these top franchises, Tide Dry Cleaners, Apple Cleaners and Lapels Dry Cleaning are GreenEarth affiliates, while Hangers Dry Cleaning and OneClick Cleaners use petroleum-based cleaning solvents. Additionally, TDC is the newest of all the franchises, and it holds the largest cash investment. But, it is not franchised internationally like the other top competitors are.
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Franchise pricing Apple Cleaners Hangers Dry Cleaners
$12.00 $15.20
$14.45
OneClick Cleaners
$10.00
$10.00
Lapels Dry Cleaning
$10.15
$11.40
Tide Dry Cleaners
$5.99
$13.00
$13.30
$7.25
$4 $5.95
$12.10
$6.85
Local pricing
Pro Cleaners
$14.95
$14.95
Pride Cleaners
$15.44
$13.39
Pleats Finest Cleaners
$12.45
Tide Dry Cleaners
$10.15
$7.00 $5.95
$16.90
$18.25
Tiger Dry Cleaning
Price Key: Full Suit 20
$11.00
$18.50
2.59
The French Laundry
$10.00 $11.40
DRess
$8.80
$5.50 $5.96
Dress Shirt
For people low on time or looking to save money, a variety of alternatives exist that can be quicker or cheaper than a trip to the dry cleaners. Although certain options like drop-off lockers are not available everywhere, other options can be conveniently found at supermarkets or online. Not every alternative is safe for all fabrics or material, so it is important for consumers to read clothing and product labels. As a brand, Tide and Tide Dry Cleaners could tap into the market of dry cleaning alternatives and create competing products such as dry cleaning sheets or spot lifters that are safe for dry-clean-only clothes.
Business Alternatives Drop off Lockers
Process: Step 1: Go to the drop-off lockers, drop your clothes in a locker and set a security code Step 2: Place your order online or in the apps to let them know your items are ready to be picked up Step 3: When your clothes are ready, you will receive a text or email notification with the locker number and code Step 4: Pick up; At your convenience, pick up your clothes at the same location you dropped them off Pros: Convenient, no-hassle Cons: Extra fee for pick-up/drop-off
Drop Locker
Drop -N -Clean
(by OneClick Cleaners)
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BizzieBox
At- Home Alternatives Dry Cleaning Sheets Process: Simply put a sheet and your article of clothing in the dryer on medium heat for 15 to 30 minutes to eliminate odor-causing bacteria and reduce wrinkles.
DrYEL
Price: 8-piece refill- $9.97 and Starter kit- $9.99 at Walmart.com
Woolite
Pros: Easy to use, readily available Cons: Do not remove dark or set-in stains
Spotlifters
“Fresh Scent At-Home Dry Cleaner Cloths� Price: 6 cloths $8.88 at Walmart.com
Albachem PSR II
Process: Spray on stained spot, wait allotted amount of time Pros: Removes stains, can be used on upholstery and other fabrics Cons: May contain harsh chemicals, does not freshen clothing
(Powdered Dry Cleaning Fluid) Price: $8.93/12.5 oz can at Allstitch.net Note: Does not contain any chlorinated solvents or other toxic chemicals
K2R Spotlifter
Price: $7.98/5 oz can at Walmart.com Note: Contains harmful chemicals
DIY Alternatives Types: Detergent-based solvent Wheat Bran-based solvent Vodka spray-mist
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Pros: Inexpensive, helpful if in a time crunch Cons: Not guaranteed to work, may not get desired results
At- Home Alternatives Other Alternatives Garment Steamers Price: $20-$100+ Pros: Smooths wrinkles, eliminates odor-causing bacteria, lasts for years Cons: Does not remove stains, cannot get rid of strong odor “SWASH� For professionals who wear dry-clean-only apparel on a daily basis, the SWASH 10-Minute Clothing Care System dewrinkles, refreshes, and restores clothes to natural fit Process: Hang your garment on the SWASH rack, slide door closed, insert SWASH POD, press start Price: $399.99 at swash.com Pros: Dewrinkles, refreshes, restores fit, slim/compact design, convenient, monthly payment plan available Cons: Expensive, must use SWASH PODS, can only clean one garment at a time, not safe for all fabrics/ material Steam-Cycle Washers and Dryers Price: $500+ Pros: Helps remove stains, sanitizes, eliminates odor, reduces wrinkles, lasts for years, can wash/dry regular clothes as well Cons: Expensive, not safe for garments with intricate detail, not safe for all fabrics/material
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Current consumer market Tide Dry Cleaners currently targets established professionals, age 35 to 54, who are already heavy users of dry cleaners. These “prime prospects� are in the top 25 percent of the U.S. in terms of wealth, and many are loyal to P&G brands. They get their clothes dry cleaned two times a month on average, and spend over twice as much on dry cleaning as the average consumer.
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Opportunity Market There is an opportunity for Tide Dry Cleaners to begin marketing their services to a group of men and women between the ages of 23 and 34. This specific group of millennial consumers see themselves as responsible, realistic, and compassionate, even though many outside the generation may stereotype them as tech-obsessed, materialistic and busy. With an affinity for technology and great concern for both one’s individual health and the health of the planet, this group is hopeful for the future, even if they aren’t quite ready to get there yet. They’re Swamped, Tech savvy, Environmentally conscious Millennials. We call them STEMs.
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1. Swamped STEMs are entering their key earning and spending years, but new purchasing power doesn’t keep them from feeling overwhelmed by their responsibilities. They are primarily concerned with maintaining a healthy work-life balance, being sure to find time for fun activities while understanding they have things to get done. However, being successful, happy and stress-free doesn’t come without its costs. “Adult” skills such as basic clothing repairs and laundry may have been common skills among Baby Boomers, but they are skills STEMs don’t have due to lack of motivation and time to learn them.
2. Tech savvy Masters of mobility in the digital age, STEMs confidently carry their smartphones as electronic assistants that keep them organized and on track. Smartphones have been around for most of their adult lives, so they’ve grown comfortable with using phones as their primary source for connecting to the internet. With the emergence of various mobile-only businesses as well as streamlined social media accessibility, STEMs are comfortable with delegating tasks to specific apps based on their needs, allowing them to organize their life and manage their social interactions all on one hand-held device.
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3. environmentally conscious Devoted to the well-being of the planet, STEMs’ environmental concerns influence their consumption habits. They go out of their way to support businesses making an active effort to reduce their ecological footprint, and are more likely to consider the potential harm traditional dry cleaners and laundromats may do to Planet Earth. Naturally, businesses with sustainable, environmentally-friendly practices will have a much easier time marketing themselves to STEMs.
4. Millennials The term Millennial may simply evoke images of high school and college-aged youth, but millennials make up 25 percent of the U.S. population - bigger than any other generation - with the oldest of the bunch nearing middle age. Currently between the ages of 23 and 34, STEMs say they feel like adults even though over half of them say they don’t feel as grown up as their peers.
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Barriers Being a business that uses products less harmful to the earth than competitors isn’t necessarily the same thing as being an earth-friendly business. Replacing perc with less harmful solvents is a good start, but it doesn’t address other sustainability issues such as water usage and waste. STEMs have a keen eye for anything that seems over-the-top or inauthentic, so businesses must be genuine when claiming to be environmentally friendly.
"STEMs have emerged as a champion of small businesses. They prefer supporting their local economies, and giving money to members of the local community feels better than giving money to a faceless corporation. For nationwide chains to break down this barrier, they must get involved and invest in their communities to gain support from STEMs.�
New trends for millennials STEMs love mobile-based businesses. Calling up a ride or getting food delivered through an app is common practice among this group, and laundry companies are getting smart. Rinse, Washio, and Laundry Locker are a few of the on-demand laundry services available in a small number of cities, but these services certainly have the potential to become more common elsewhere.
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“
Ever since college, I’ve been dealing with an overwhelming number of responsibilities. Between climbing up the ladder at work, spending time with friends and family, and just plain relaxing, it can be hard to find time to even do one load of laundry. Stuffing all my clothes into the washer at once? If it saves time, why not? Sure, there are companies that will take care of my laundry for me, but most of those companies use nasty pollutants that hurt the environment. On top of that, those companies always manage to be located halfway across the world from where I am anyway. I don’t have time during my busy day to go that far to drop off clothes. If there was an earth-friendly laundry and dry cleaning company that was way more convenient, I’d give them my business for sure.
”
-ST E
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M
S W
Brand Equity Company Resources GreenEarth Affiliation Convenience
Locations Low Customer Loyalty Low Awareness
Sustainable Focus
Casual Business Attire
Digital Coupons
Dry Cleaning Alternatives
Delivery and Pick-Up
Low Maintenance Clothing
Educate the Consumer
Perception of Luxury
Increase Satisfaction
Crowded Industry
Dry Cleaning Alternatives
Delivery Applications
Local Involvement
Drop-Off Lockers
O
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T
Strengths Brand equity: Tide Dry Cleaners’ has high brand equity, and leveraging this can
be TDC’s biggest asset. A 65-year-old brand with top-of-mind awareness, Tide laundry detergent is known for being trustworthy in America’s homes.
Resources: TDC has a strong corporate backbone, so franchises have the
money and resources to introduce new technology, like kiosks and an updated website, and improve their marketing and philanthropic involvement.
Convenience: Tide Dry Cleaner’s is offering convenient services that make dry
cleaning a breeze.
GreenEarth Affiliation: Millennials like green companies, so Tide Dry Clean-
ers can and should use this to their advantage.
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Weaknesses Brick and Mortar Location: Most of the Tide Dry Cleaner franchises are located
in the affluent suburbs just outside large cities. With many STEMs unable to afford living in these suburbs, urban areas are a more common location for them, limiting current availability to the desired millennial market.
Low Customer Loyalty: Mom-and-pop shops already have an established,
loyal foundation of customers. Our target audience prefers to support local communities over corporate brands, a distinct disadvantage for companies like Tide Dry Cleaners.
Low Awareness: TDC is only eight years old, and many people are unaware of
its existence. Luckily, Tide and its parent company, P&G, have the resources to increase brand awareness rapidly.
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Opportunities Sustainable Focus: Because our target market is more earth-conscious than
the previous generations, advertising GreenEarth Cleaning can appeal to earthconscious STEMs and tap into a lucrative market.
Dry Cleaning Alternatives: Though at-home dry cleaning products are a threat
to Tide Dry Cleaners, it is also an opportunity. Offering Tide brand dry cleaning alternatives could increase Tide’s foothold in the dry cleaning market.
Delivery/Pick-Up: Although Tide Dry Cleaning offers an extensive amount of
services, other shops are competing by offering pick-up and delivery services. This is an opportunity for TDC to increase their marketable assets.
Educate the Consumer: Based on surveys, millennials are uneducated about
proper clothing care. TDC has a unique opportunity to be a resource for clothing care by emphasizing how they can help increase the longevity of the target’s clothing. Plus, Tide laundry detergent can be a part of this, as well.
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Opportunities Increase Satisfaction: In the dry cleaning industry, customer satisfaction is low.
In such a large market without many branded stores, TDC has the opportunity to be a major player if they are able to increase and retain customer satisfaction.
Digital Coupons: According to Mintel, millennials are emerging as heavy
coupon users. However, they turn to social media and the web to find coupons and deals at different businesses. Increasing their social media presence, developing an app, and using geo-targeting could help TDC market to this target.
Local Involvment: Because our target is interested in supporting local
businesses, franchises can emphasize their local ownership and presence. By being involved in the community, they can establish themselves as a local store despite their corporate branding.
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Threats
Business Casual: More and more companies are switching from business
professional to business casual dress codes. Less emphasis is placed on formality, so clothes that are typically dry clean only, like men’s suits and women’s professional dresses, are being purchased less.
Dry Cleaning Alternatives: At-home dry cleaning products, like dry cleaning
sheets or steamers, are a threat to Tide Dry Cleaners’ business. If our target can do it themselves with similar results, they will choose to stay at home, saving money and time.
Low Maintenance Clothing: More clothing is being made with material that
can be traditionally laundered, so dry cleaning is not needed as frequently.
Luxury: Dry cleaning is seen as a luxury. The target is not likely to spend
money on services or products they deem unnecessary - they would rather save for travel and other experiences.
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Threats
Crowded Industry: Though dry cleaning is an $8.8 billion industry, it’s a
declining industry and one full of hyper-fragmentation. The industry is crowded, but few dry cleaners have the equity that Tide does.
Laundry Delivery APPS: Our tech savvy target is always on the hunt for new
digital trends to make their lives easier. Laundry delivery apps have the potential to make places like Tide Dry Cleaning irrelevant to the market.
Dry Cleaning Drop-off Lockers: In metropolitan areas where space is tight
and time is always ticking, people on the run can simply drop their dry cleaning off in a secure locker on the street and be notified when it is ready to be picked up.
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KEy takeaways No other competitor has the brand equity of Tide, and with that brand equity comes familiarity and trust. By utilizing the power of P&G and the Tide name, Tide Dry Cleaners can do everything that the competition is doing and more. The only problem? The services are not consistent with every franchise, and a consumer must dig to find what services they offer and where. By making information easier to find and by advertising that they are not just a brick-and-mortar dry cleaning establishment, TDC can appeal to people who want (and need!) a different dry cleaning experience. Competitors may offer some of the same services, but in our research, no competing franchise has the total array of services that TDC has. This is a key differentiator that needs to be emphasized. Tide Dry Cleaners has it all, and they need to let people know.
Areas of Opportunity
o Green . G
Go 37
C
. n l ea
Going-green is nothing new. However, Tide Dry Cleaners was green from the start. People want green cleaning, but TDC does not heavily advertise their affiliation with GreenEarth. By making their perc-free cleaning a main advertising point, they can easily distinguish themselves from the local shops that still use perc and gain business that they may not have otherwise.
Get With The
STEMS In order to really connect with STEMs, you must be where they are both in person and digitally. While it’s practical to have brick-and-mortar locations in suburbs to cater to certain demographics, the reality is that STEMs don’t like to go far to take care of their needs, so convincing them to travel from a large city to a suburb may be unrealistic. Scattering kiosks or setting up dropbox systems in the prominent areas of a large city would give STEMs the convenience they require without the need for downtown brick-and-mortar locations. In the digital realm, mobile applications can be a big draw for STEM consumers. An app that allows consumers to schedule pick ups and drop offs and find the nearest stores or kiosks would be a huge differentiator for Tide Dry Cleaners. Online, use various social media outlets like Facebook, Snapchat, Twitter and Instagram not only to maintain a positive dialogue with STEMs, but to be their go-to online clothing care helper. After all, Tide Dry Cleaners is the expert.
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