GLOBSYN BUSINESS SCHOOL

REPORT-1

Household Service Providers

GROUP MEMBERS:
VASUNDHARA KEDIA PRERNA BAJAJ JASLEEN OBEROI

TOPIC 1
Corporate mission This business deals with household service that we shall provide to the middle and upper middle class 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 perform themselves 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.

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 and develop 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

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.

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 the marketers. 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.

Topic 3
Porters Approach to competitive analysis

Porter suggested that the nature and intensity of competition within any industry is determined by the 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 middle and 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 service providers/ 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.

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 lower class.

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

Topic 6: Product strategy

Theodore Levitts Product Level Hierarchy Unsought products: These are the products that a customer purchases when he is faced with a sudden 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 each package, demand for such package shall depend on the data collected in market research.

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.

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 .