yeseniaanayabus306.files.wordpress.com€¦ · Web viewOTTER SPLASH. Market Analysis & Marketing Strategy, 2014. Prepared by Yesenia Anaya-Mendez, Maria Preciado,Avery Suazo-Greathouse,

OTTER SPLASHMarket Analysis & Marketing Strategy, 2014

Prepared by Yesenia Anaya-Mendez, Maria Preciado,Avery Suazo-Greathouse, Martha Vidauri

Report Distributed December 6, 2014

Prepared forProfessor Carol Davis

BUS 306: Fundamentals of Marketing

Table of ContentsExecutive Summary.........................................................................................................................4

Situation Analysis............................................................................................................................5

Market Summary.............................................................................................................................6

Geographics.....................................................................................................................................6

Demographics..................................................................................................................................6

Behavior Factors..............................................................................................................................7Occasions.....................................................................................................................................7Benefits........................................................................................................................................8

Psychographics................................................................................................................................8Social Class.................................................................................................................................8Lifestyle........................................................................................................................................9Personality...................................................................................................................................9

Market Needs...................................................................................................................................9

Market Trends..................................................................................................................................9

Market Growth...............................................................................................................................10

SWOT Analysis.............................................................................................................................11Strengths....................................................................................................................................11Weaknesses................................................................................................................................12Opportunities.............................................................................................................................12Threats.......................................................................................................................................13

Competition...................................................................................................................................15Del Rey Car Wash.....................................................................................................................15Shell & Chevron Car Washes....................................................................................................16King Klean Marina Car Wash...................................................................................................16

Product Offering............................................................................................................................16

Keys to Success.............................................................................................................................17

Critical Issues.................................................................................................................................17

Marketing Strategy........................................................................................................................18Value Proposition......................................................................................................................18Mission.......................................................................................................................................18

Marketing Objectives.....................................................................................................................18

Financial Objectives......................................................................................................................19

Target Markets...............................................................................................................................19

Positioning.....................................................................................................................................19

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Strategies........................................................................................................................................20

Marketing Mix...............................................................................................................................20Pricing.......................................................................................................................................20Distribution................................................................................................................................20Marketing Communications.......................................................................................................21

Marketing Research.......................................................................................................................22

Financials.......................................................................................................................................22Break-even Analysis...................................................................................................................22Sales Forecast............................................................................................................................23Expense Forecast.......................................................................................................................24

Controls..........................................................................................................................................25

Implementation..............................................................................................................................25

Marketing Organization.................................................................................................................26

Contingency Planning....................................................................................................................27

References......................................................................................................................................29

Appendix II. Break-even Analysis................................................................................................35

Appendix III. Weekly Fall & Spring Sales Forecast for Year 1, Year 2 & Year 3 (in Units).......37

Appendix IV. Weekly Fall & Spring Sales Forecast for Year 1, Year 2 & Year 3 (in Dollars). . .39

Appendix V. 3-Year Marketing Expenses Forecast......................................................................41

List of Tables & FiguresFigure 1. Do you commute to school?.............................................................................................6Figure 2. What is your age range?...................................................................................................7Figure 3. How do you classify your role at CSUMB?.....................................................................7Figure 4. What is your personal income?........................................................................................8Figure 5. How often do you clean your car?...................................................................................8Figure 6. Gallons of Water Used During Various Car Wash Methods.........................................11Figure 7. SWOT Analysis for Otter Splash...................................................................................12Figure 8. Do you currently own or use a car?................................................................................13Figure 9. Do you feel like a car’s appearance is a reflection of a person’s character?..................16Table 1. Break-even Points in Units & Dollars.............................................................................24Figure 10. Break-even Analysis....................................................................................................24Table 2. 3-Year Sales Projections..................................................................................................25Figure 11. How much do you pay to get your car cleaned / washed on average? (in Dollars).....25Table 3. 3-Year Marketing Expense Forecast...............................................................................25Figure 12. Marketing Organization...............................................................................................28

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Executive SummaryResponding to the increasing demand for more environmentally friendly products and services in

the car was industry, Otter Splash will introduce an environmentally friendly car wash service

that will use green products, such as soap that does not need water, to wash and detail customers’

vehicles. By doing, so Otter Splash will not only address the current green trend, but it will also

provide its target market a more convenient place to get their car washed, since the nearest car

wash service is 5.5 miles away from the California State University of Monterey Bay (CSUMB)

campus (“Del Rey Car Wash,” n.d.).

Otter Splash’s primary target market is students, staff and faculty at CSUMB. The CSUMB

population ranges from 16 years old to 56+ years old, most having an annual income between $0

and $24,999 according to the team’s survey. Otter Splash will accommodate the varying income

levels of the target market by offering different packages with various price levels that customers

will be able to choose from. The four packages that consumers will be able to choose from are:

the CSUMB Student Special for $10.00, the Basic Otter Outdoor Wash for $20.00, the Friendly

Otter Outdoor Wash & Detail for $25.00, and the Deluxe Splash Package for $30.00

The primary benefits that Otter Splash will provide its target market are that it is a company that

is located right on the CSUMB campus, which makes it very accessible and convenient for the

consumers. It also provides them with different amenities such as transportation to and from

different parts of the campus, while their vehicles are getting washed. Consumers are going to be

able to make their appointment through the company’s website or app which makes it more

convenient for the students and staff, who are always busy and might not have enough time to

call and make an appointment.

Otter Splash’s main competitors are Del Rey Car Wash, Shell’s Car Wash, Chevron’s Car Wash

and King Klean Marina Car Wash. Some of Otter Splash’s competitors do offer their customers

different price levels to choose from, but they lack the amenities and the great customer service

that Otter Splash wishes to provide its customers. Additionally Otter Splash offers its customers

a car wash service that only uses environmentally friendly products and that is committed in

protecting the environment.

Since Otter Splash is a business-to-consumer company it will use various marketing tactics to get

the target market to conduct business with the company. The marketing director will run ads on

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YouTube, banner ads on selected webpages and will send out direct mail packages to incoming

students, to make the consumers more aware of the business. Furthermore, the marketing director

will also run promotions and competitions to get the target market more enthusiastic of the grand

opening of the business. Customer service representatives will also be available to help

customers set up their appointments or answer any questions that they might have.

Otter Splash expects to sell 1,765 washes in its first year, having a total of $110,429.00 in

expenses the first year which includes advertising, YouTube commercials, giveaways, marketing

salaries and research. The research conducted concluded that Otter Splash will not be profitable

its first year and that it will break even when it sells 26,963 washes or $378,825.21.

Otter Splash will need to focuses on creating relationships with its customers and providing

excellent customer service. Additionally it will need to advertise the amenities it offers, so that

customers can see that they are getting more value for their money by having their vehicles

washed and detailed by Otter Splash.

Situation AnalysisBasic in-bay washings to auto detailing, hand washing and waxing, and interior cleanings, the

market offers consumers a wide array of choices. However, consumer needs are changing; more

and more, they are pressed for time, are using their smartphones to schedule appointments, are

seeking services that are environmentally friendly, and are looking for a higher value from their

expenditures.

Instituting Otter Splash, an eco-friendly car wash and auto cleaning service at California State

University, Monterey Bay’s (CSUMB) main campus will address consumers’ current needs in

the following manner:

Scheduling through a smart phone app will give customers a choice; consumers are

comfortable with smartphone technology platforms.

An on-campus locale will eliminate the time and need for potential customers to travel

off campus; fifty-nine percent of survey respondents get their vehicles cleaned at gas

stations and specialty car wash stations.

Consumers will have the option of waiting for their vehicle to be cleaned or being

dropped off and picked up on CSUMB’s campus while their car is undergoing

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maintenance. The latter service distinguishes Otter Splash as time and the ability to multi-

task are important facets of the targeted consumer base.

The use of eco-friendly products will minimize the waste that comes with providing car

wash services. Environmental consciousness is part of CSUMB and student culture.

Market SummaryTime is a college student’s most valuable commodity. Students work to balance school,

extracurricular activities and s a social life. When it comes to prioritizing these activities, a

college student’s vehicle is neglected. Otter Splash seeks to satisfy the need for a clean car by

creating a business that takes the lack of time into consideration.

Car wash service costs currently range from $5.00 at fundraisers to $80.000 for a full wash, wax,

and detail.

Targeted markets for Otter Splash are college Millennials on CSUMB’s campus ranging from

ages 20 to 25 years who care about the environment and the cleanliness of their vehicle.

GeographicsOtter Splash will be located at CSUMB. The campus is located in close proximity to the

communities of Marina, Seaside, and Sand City in California. CSUMB serves the local regions

including Salinas, Watsonville, Monterey, Santa Cruz, and other nearby towns in Monterey and

Santa Cruz counties.

As shown in Figure 1, student polling reveals 72% of students, faculty, and staff commute to

CSUMB.

Figure 1. Do you commute to school?

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DemographicsOtter Splash will tap into the student, staff, and faculty populations at CSUMB. The

aforementioned market varies in age, family size, income, occupation and levels of educational

attainment.

The CSUMB population ranges from 16 years old to 56+ years old, but the survey reveals the

highest percentage of students are between the ages of 16 and 30 years old (refer to Figures 2 &

3). Furthermore, the bulk of the survey respondents fall between 20 and 25 years of age; this

group can be classified as being part of the Millennial Generation.

Income varies across student, staff, and faculty respondents—please note, for the purposes of this

section, these group’s responses have been lumped together. As illustrated in Figure 4, faculty

and staff have higher income levels than students; the majority of students’ income is between $0

and $24,999 annually. In addition, students’ limited income stream stems from full- and part-

time work, financial aid, student loans, and monetary family gifts; they have limited

discretionary funds.

Figure 2. What is your age range?

Figure 3. How do you classify your role at CSUMB?

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Figure 4. What is your personal income?

Behavior Factors

OccasionsThe car wash service can be used for special occasions including but not limited to date nights,

job interviews, and graduations. The need for a car wash would be based on the values and needs

of the individual consumer; for example, necessity for a washing and a cleaning is based on the

overall dirtiness of the car. Other users would use the car wash habitually.

As shown in Figure 5, twenty-seven percent of survey respondents wash their car at least once a

week. Upwards of 50% wash their cars once or twice a month. The data gathered shows

customers are willing to use the service once a week; the services used during this time period

range from standard cleaning to a special cleaning.

Figure 5. How often do you clean your car?

BenefitsConsumers will have the opportunity to purchase a variety of services from Otter Splash; these

services range from a standard wash to a full vehicle detail. The consumer benefits from this

wide variety of services because they are priced to accommodate any level of income.

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Extraneous services that add value to the consumer include complimentary services: warm

beverage during the winter and iced beverage during the summer and a chauffeur service taking

customers to any place they need to be on campus.

Psychographics

Social ClassAs mentioned in the demographics section, the majority of respondents have an annual income

of less than $24,999 (refer to Figure 4). Though this sector’s income might place it at the lowest

tier, the visible on-campus social segmentation range from middle class to working class.

According to Kotler & Armstrong (2012), upper middle class are described as “average-pay

white- and blue-collar workers who live on the ‘better side of town,’ They buy popular products

to keep up with trends” (p. 140) The working class are further described as leading a lifestyle

that is “heavily dependent on relatives for economic and emotional support, advice on purchases,

and assistance in times of trouble” (p. 140).

LifestyleMillennials and college students have been described as leading hectic, time-crunched, self-

expressive lifestyles; they consider themselves do-gooders who seek to lead a meaningful and

balanced lifestyle (Pew Research Center, 2010; Main, 2013). The Oxford Dictionary defines

‘self’ expressive’ as the “expression of assertion of one’s own personality, as in conversation,

behavior, poetry or painting” (Oxford Dictionary, n.d.). On the negative side, Generation Y has

been described as leading self-entitled lives (Main, 2013).

PersonalityThe Pew Research Center’s report, Millennials: A Portrait of Generation Next, describes those

making the passage into adulthood as having multiple personas. Because of Millennials’ access

to technology and comfort with social media, they have been able to forge strong values that

vary across various platforms. Thus, the Pew Research Center’s report found “Millennials are

driven more by values than by money” (2010). In addition, Generation Y’s proclivity for all

things high-tech has spawned information-seeking personas with short attention spans.

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Market NeedsThe market needs a close, convenient, car wash at different price levels. Otter Splash seeks to

offer environmentally friendly vehicle washes and cleanings that accommodate a student

schedule. The scheduling platform will be digital and allow for students to schedule at their

convenience. The immediate vicinity does not provide a “green” alternative to car washes, but

interior cleanings and external hand washes are available in Del Rey Oaks. In addition, students

are often time-crunched. Overall, the local car wash needs to cater to college Millennials’

individualism, it needs to integrate their hectic schedules, need to feel goods about their

decisions, and their use of technological devices.

Market TrendsEnvironmental consciousness has slowly pushed the car cleanliness industry toward the adaption

of green and water efficient options (DetailXPerts, n.d.). The adaption of green practices has

resulted in higher costs to businesses and consumers as the price of environmentally friendly

products are priced at a higher level than conventional products. (“Oregon’s Green Business

Update,” 2008). Environmentally conscious businesses are also implementing higher level of

efficiency in the use of their products to reduce the amount of waste; the market is shifting

towards the reduction of water consumption (Brown, n.d., p. 11; Figure 6).

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Figure 6. Gallons of Water Used During Various Car Wash Methods

Market GrowthThe trend towards environmental consciousness discussed in the previous section will change the

car cleaning and washing industry (Brown, n.d., p. 3). Environmentally conscious consumers are

forcing business, research & developers, and suppliers to provide such services (“The Power of

Green,” 2002). Thus, those companies that adapt to a less wasteful business model and market

themselves as “green” are likely to see market growth.

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SWOT Analysis

Figure 7. SWOT Analysis for Otter Splash

StrengthsOtter Splash’s main strength is its location in a high-density area with direct access to its target

market. By operating on CSUMB’s campus, the business has the advantage of directly observing

changes to its consumer culture. Otter Splash will also hire CSUMB students as employees,

giving the company the opportunity to turn employees into ambassadors who ultimately promote

the business through word of mouth.

According to the campus survey conducted (see Figure 8), ninety-six percent of respondents own

a car. This is an incredibly large audience form which Otter Splash can take advantage.

Another strength will be the use of environmentally friendly products in the business. CSUMB is

a campus that is focused on the preservation of the environment; by washing cars in an

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STRENGTHS- High Density Area- Accessibility to target market- Environmentally friendly- Customer service oriented

WEAKNESSES- First-time business- No established clientele- Lack of funding and resources

OPPORTUNITIES- No current competition- Market expansion - Green Market

THREATS- Cultural changes- Economic pressures- Political influences- Environmental changes

environmentally friendly manner, Otter Splash’s culture can be aligned with that of the students

on campus.

Lastly, hospitality and making consumers’ lives easier are among Otter Splash’s strengths.

Having snacks like coffee and cookies will attract customers and make them feel welcome. The

transportation from the car wash to the customer’ destination focuses on making the consumer’s

life easier. The ability to make appointments online or through an app, shows consumers that

their time is a priority to the business.

Figure 8. Do you currently own or use a car?

WeaknessesThe company is at a disadvantage because it is a first time business; thus, it is not well known

and has to work to build a loyal client base. According to an article in Forbes that focused on the

failure rate of first time businesses, eighty percent of new businesses will collapse within the first

18 months (Wagner, 2013).

Another factor weakening Otter Splash’s position is the lack of financing and resources. Limited

funds means there is less money available to allocate towards marketing the business. Since,

Otter Splash needs to inform potential clients about their services, a shortage of capital could

result in slower growth.

An additional internal weakness is the lack of technological and industry experience among the

owners of the company. Such lack of knowledge presents a steep learning curve and can also

lead Otter Splash to make mistakes that those with industry know-how would anticipate.

OpportunitiesAt this point in time, there is one car wash within a four-mile radius from the center of

CSUMB’s campus. This limited competition presents Otter Splash with the opportunity for

clientele expansion.

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Due to the climate and geography of Monterey County, local consumers have a greater need for

a car wash. Salinas is covered in farmland, which means if there is any wind at all that blows

through the town, dirt and sand get kicked up into the air and onto people’s cars, causing

vehicles to get dirty. The Monterey and Seaside areas contain sandy areas and experience a

similar problem during gusty winds. Otter Splash’s local consumers will always need a car wash,

rain or shine.

ThreatsHindrances to the business come in the form of cultural changes, economic pressures, and

environmental changes.

At the most basic level, the business’ success is rooted in clients’ need for a clean vehicle. Figure

9 shows survey respondents were split down the middle when asked if they felt like a car’s

appearance was a reflection of a person’s character, with 50% respondents noting, “yes,” a car’s

cleanliness reflects the person driving it and 47% noting a car’s cleanliness does not dictate a

driver’s disposition. Because of this split, the company’s appeal to a consumer base could be

endangered if cultural thinking deemphasizes values such as car cleanliness and maintenance.

Otter Splash’s business model is also dependent on vehicle ownership. Since the target audience

is the immediate CSUMB student population, aged predominantly between 18 and 25 years old,

it is of immediate concern that the Millennial generation seems to be bypassing the milestone of

car ownership. “Why Don’t Young Americans Buy Cars?” woefully quotes Toyota President Jim

Lentz: “We have to face the growing reality that today young people don’t seem to be as

interested in cars s the previous generation” (Weisman, 2012). The article also brings up research

from CNW Marketing Research, a private automotive marketing research company, showcasing

new car purchases for young Americans is down from 38 percent in 1985 to 27 percent as of

2012 (Weisman, 2012).

The cropping up of ZipCar and other similar business models that provide alternatives to car

ownership through hourly car rental can also prove to be a competing force against the business.

For one, students and faculty alike can rent a ZipCar at any available time and the only return

requirement is a quarter tank of gas and that the car is clean. While ZipCar reimburses the user

up to $10 if they take the car for a cleaning, ZipCar takes responsibility for making sure the cars

are clean, thus limiting opportunities to reach out to that targeted market segment (Zipcar, 2014).

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Macroeconomics dictates spending is affected by consumer confidence. When consumers feel

confident and secure their income or when their discretionary income increases, they are likely to

spend more money, but if they anticipate a future job losses or decrease in future income, then

they are apt to hold on to their dollars (McWhinney, n.d.; Investopedia, n.d.). On September 30,

2014, the Conference Board Consumer Confidence Index reported the following:

“Consumer confidence retreated in September after four consecutive months of improvement. A

less positive assessment of the current job market, most likely due to the recent, softening in

growth, was the sole reason for the decline in consumers’ assessment of present-day conditions.

Looking ahead, consumers were less confident about the short-term outlook for the economy and

labor market, and somewhat mixed regarding their future earnings potential. All told, consumers

expect economic growth to ease in the months ahead.” (Consumer Board Consumer Confidence

Index, September 30, 2014)

Since car wash spending is based on discretionary funds and is not grouped with other

necessities such as groceries, fuel, rent and more, it is subject to the market’s volatility and

consumers’ perceptions of it. In addition, in article recently posted by Time Magazine, the effects

of the recession still remain (Kadlec, 2013).

Physical factors like the weather and climate can affect volume. Though rainy weather could be a

boon, the anticipation of rain itself could also be a detriment. Performing the tasks of an outdoor

car wash could be impeded due to inclement weather and car owners will postpone washing their

car if they anticipate rain (Gaudreau, 2014).

In addition, California is currently undergoing the most severe drought, and government officials

are urging residents to curtain their water usage (California Drought, n.d.). During a drought, the

most important usage of water is for drinking needs, so consumer perception of the business is

affected by the water used in a car wash business. In a report by the state of Maryland’s

Department of Environment, an in-bay car wash can use anywhere between 35-100 gallons of

water per vehicle and a conveyor uses between 30 and 85 gallons of water for each vehicle

(“Water Conservation and Washing Vehicles,” n.d.; Figure 6). Though most car wash businesses

using in-bays recycle up to 80% of t heir water, the perception of water usage during a drought

affects consumer spending.

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Figure 9. Do you feel like a car’s appearance is a reflection of a person’s character?

CompetitionThe car wash business is highly competitive. The following businesses are Otter Splash’s biggest

competitors:

Del Rey Car Wash at Canyon Del Rey Boulevard & Fremont Streets, Del Rey Oaks, CA

93940

Shell’s Car Wash at 2700 Imjin Road, Marina, CA 93933

Chevron’s Car Wash at 310 Reservation Road, Marina, CA 93933

King Klean Marina Car Wash at 209 Reindollar Ave, Marina, CA 93933

Del Rey Car WashThe Del Rey Car Wash in Marina is a ten-minute drive and 5.5 miles from CSUMB. Del Rey has

services whose price points range from $8 to $27.95 (“Del Rey Car Wash,” n.d.).

A basic car wash consists of an exterior wash when taking the Express Lane; this option reduces

consumers’ wait time to 10 minutes. As much as this is a great option for consumers in a rush,

there are unsatisfied customers. Judith Margaret, a yelp reviewer, noted, “Poor quality work.

[Del Rey Car Wash] are in such a hurry for production, they don’t do quality work….I do not

recommend this especially for The Works, the most expensive wash” (Margaret, 2013).

Consumers who pay a high price expect to receive a quality product and excellent service, but

Del Rey Car Wash is not living up to this standard.

Del Rey Car Wash offers coupons on their website from $2.00 to $6.00 for wash and detailing

services; they also rely on word-of-mouth to attract customers.

Del Rey Oaks Car Wash’s locale makes it a direct competitor, but service that delights and a

keen ear to consumer needs and wants will distinguish Otter Splash. The aforementioned traits

will help Otter Splash build a loyal consumer base.

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Shell & Chevron Car WashesShell and Chevron, two gas stations in Marina within five minute driving distance from CSUMB,

both have machine-wash car washes. Though the aforementioned car washes do not hand wash

nor provide detailing service, there are people that would prefer such services to Otter Splash’s.

Shell and Chevron’s car wash stations offer three pricing options up to $11.99, a lower price than

Del Rey Oaks Car Wash. Shell and Chevron car wash services require the customer to pay at the

counter, take the car and punch a code into the machine, wait for the wash to be completed, and

air dry the car. Watermarks are a drawback of letting a car air-dry.

Shell and Chevron both give consumer the opportunity to buy a car wash at the pump in

exchange for $0.10 off each gallon of gasoline.

King Klean Marina Car WashKing Klean Marina Car wash is a self-wash car wash where consumers scrub, rinse, and dry their

vehicles through the use of a power washer. Customers pay for use of these materials. Prices

begin at $2.50 to begin the car washing process and $2.50 more is required to rinse the car.

Prices can stay low for consumers who wash their cars at a fast pace but can easily add up if the

consumer takes their time.

Machine operated car washes can be effective but the customers must do the work themselves;

for a few dollars Otter Splash offers a more personalized experience.

King Klean Marina Car Wash does not offer any promotions for their customers since they keep

their prices consistently low.

Product OfferingOtter Splash seeks to offer an eco-friendly car wash on CSUMB’s campus for CSUMB students,

staff and faculty. An Otter Splash website will be an integral part of the business where

customers can schedule appointments for wash and detail services.

There will be several types of services at varying price levels including the CSUMB Student

Special for $10.00, the Basic Otter Outdoor Wash at $20.00, the Friendly Otter Wash & Detail at

$25.00, the Deluxe Splash Package at $30.00. To accommodate the eco-friendly culture of

CSUMB and the surrounding community, all services at all levels will incorporate waterless

services.

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Otter Splash will be prepared to accept cash and credit from all customers, as well as Otter ID

payments.

The customer care component at Otter Splash is as important as its products. When customers

arrive for their appointments, the customer’s car will be tagged and the customer will be given a

matching ticket number. Immediately, the customer will be offered the choice between a

complimentary chauffeured ride to class via a company golf cart driven by a tuxedoed chauffeur

or the option of waiting for the car’s services to be completed. Should the consumer choose to

wait, they will be escorted to a concierge lounge.

The chauffeured rides and concierge / lounging station is part of Otter Splash’s strategy to create

comfort and treat customers beyond the car wash and detail services offered. In order to create a

relaxing and luxurious experience the lounge area will be outfitted with sun umbrellas during hot

days, portable heaters during cold days, hot and cold drinks, fruit and desserts, and comfortable

seating. A solar powered charging station will also be available. Golf cart drivers will wear suits,

and all employees in charge of washing and detailing will be dressed in casual wear.

Keys to SuccessThe key to a successful business is creating a deep, meaningful connection with the client by

addressing their desires (Kotler & Armstong, 2013, p. 97). Individualized services win with

clients, so employees will be trained to listen and address every customer’s concern and

feedback.

Moreover, since the recession, consumers have looked for more value to spend their often-

limited discretionary funds (McWhinney, n.d.). To make customers feel great about their

purchase, Otter Splash intends to draw consumers into the brand by making them feel their

purchase benefits the environment, but that they are also doing something special for themselves.

Maintaining an efficient washing and cleaning service will allow Otter Splash to succeed in the

present; an eye on consumers’ changing needs, trends, and technological advances in the field

are the keys to Otter Splash’s long-run success.

Critical IssuesCritical issues include the pricing of products by suppliers and the presence of upstart car wash

fundraisers. If Otter Splash’s suppliers increase the price of their products, Otter Splash will have

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to adapt by increasing their prices. This presents a problem as price-conscious customers can

decide to take their business elsewhere. If Otter Splash maintains the same pricing levels,

company profits could suffer.

Furthermore, pop-up car wash fundraisers can distract customers. Many organizations use the car

wash fundraiser model because it is relatively easy to set up and inexpensive. This can harm

Otter Splash’s bottom line if too many car wash fundraisers attract customers.

Marketing Strategy

Value PropositionOtter Splash’s services are tailored to meet the needs of the environmentally conscious consumer

in Monterey County with a specific eye to CSUMB students, staff, and faculty. Service will

always seeks to provide a luxurious experience beyond the standard car wash. All customers will

receive the highest quality wash, detailing and customer service. Otter Splash aims to put the

customer first in every category.

MissionThe mission of Otter Splash is to anticipate consumers’ needs and provide them with the best

vehicle maintenance services while integrating environmental responsibility at every facet of the

business. Otter Splash is devoted to creating trustworthy and long-lasting relationships with its

local communities.

Marketing ObjectivesOtter Splash’s main objectives are to make their target market aware of their existence, establish

a loyal consumer base, increase sales, expand detailing services offered, and create a strong

management team. Otter Splash plans to create awareness through advertising in social and

traditional media. In addition, a loyal consumer base will be established with by delighting

customers and offering an augmented product. Sales objectives include increasing customer

loyalty by 50% in its second year of operation and increasing sales by 25% in the third year. In

its first year, Otter Splash will offer four packages that include washing and additional detailing.

By its second and third years, the company hopes to add two more detailing packages. A strong

management team and its retention are an essential part of keeping the company’s goals on track.

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Financial ObjectivesOtter Splash’s financial objectives include spending the money needed to establish a loyal

clientele in its first year and to begin incurring profit in the second year. Otter Splash seeks to

increase its sales every single year; year two plans for a 50% sales increase based on the first

year’s sales, and the third year sees an increase of 25% based on the second year’s sales.

Target MarketsAs referenced in the Geographics and Demographics sections earlier, Otter Splash’s targeted

market are the faculty, staff and students of CSUMB and the surrounding community.

CSUMB’s student, staff and faculty population was selected as a targeted market because they

are in the immediate vicinity of Otter Splash’s planned business location; this gives Otter Splash

immediate access to its customer base.

The target market’s preferred form of communication includes the ever-growing mobile

platform; Otter Splash plans to develop a mobile application to give its customers a complete

breakdown of the environmental precautions being taken when washing their cars, to give users a

familiar place to make appointments, as a place for users to submit feedback, and as a way to

launch promotions.

Otter Splash’s ladder pricing is made to reflect the prices consumers already pay to have their

vehicles cleaned. The pricing structure invites Otter Splash’s targeted market to match service

with their preferred tier of payment.

PositioningOtter Splash will be positioned in the “More for the Same” service category (Kotler &

Armstrong, 2014, p. 214). Although, Otter Splash faces some competition, the business offers

superior customer service, more amenities, and environmental stewardship. This enables Otter

Splash to position itself above its competitors. The car wash companies discussed in the

Competitors section offer a range of similar services but many are not environmentally friendly

and lack the quality, amenities, and customer satisfaction Otter Splash is offering. Because

consumers are receiving an augmented product and services, they will perceive they are getting

more value for their money, placing Otter Splash above its competition.

20

StrategiesTo meet the needs of the target market, Otter Splash will have to concentrate on meeting the

marketing objectives. By using advertisements, Otter Splash will create awareness and a stronger

long-term relationship with customers, which in return will contribute to the increase in sales.

Furthermore, employees will be specialized in their job position, which will provide customers

with superior service, information, and support in regards to the services available. Otter Splash

will reach out to customers through social media (Facebook, YouTube, e-mail, website, etc.) to

ensure that customers are well informed and have the best service possible. The value

proposition will be reinforced and will ensure customers have the highest service available.

Marketing Mix

PricingOtter Splash based its packages and pricing on the current prices respondents currently play to

have their car cleaned and washed (Figure 11), the cost of supplies needed for each package, and

local competitor pricing.

Otter Splash will offer the following packages:

The CSUMB Student Special for $10.00

The Basic Otter Outdoor Wash for $20.00

The Friendly Otter Outdoor Wash & Detail for $25.00

The Deluxe Splash Package for $30.00

The CSUMB Student Special is primarily for students and other customers with limited funds or

those who are looking for a speedy wash. The service includes a waterless wash with the

EcoTouch Solution and an air freshener.

The Basic Otter Outdoor Wash consists of a waterless wash with the EcoTouch Solution, an air

freshener, and a Duraglass Automotive Clear Coat Polish. This option is still priced at a level

that students, faculty and staff can afford.

The Friendly Otter Outdoor Wash & Detail includes a waterless wash with the EcoTouch

Solution, a Duraglass Automotive Clear Coat Polish, an EcoTouch Tire Shine, and a mini detail.

The mini detail includes a shampoo to carpets and seats and an indoor cleaning of the dashboard,

consoles and air vents. This package will target staff and faculty and students during special

occasions.

21

The Deluxe Splash Package is aimed at students preparing for job interviews, graduation, and

other special occasions. In addition, staff and faculty fit the demographic that would pay for a

$30.00 car wash service, This package will be made up of all the services included in the other

three packages, plus a window treatment and triple shine coat for the exterior and a detail service

that includes inside dressing.

DistributionThe car wash services will be distributed through CSUMB where Otter Splash will be located.

Like normal car wash businesses, Otter Splash will perform all of its services through a single

central location.

Otter Splash will purchase inventory and equipment from third party suppliers; all supplies will

be ordered online and be used only for business operations.

Otter Splash intends to sell its services in a traditional service-industry manner, through multiple

levels of service that increase in price according with the added services performed.

Marketing CommunicationsOtter Splash’s marketing communication mix is comprised of promotions that ensure outreach,

of product satisfaction, of the physical environment inhabited by the business and the people

running Otter Splash.

Promotions include a mix of social media advertising, direct mail advertisements, signage around

CSUMB’s campus, the opportunity for consumers to win prizes in a contest, and special offers.

Social media advertising was chosen because it is a favorite way of communication for the

students at CSUMB. Direct mail will comprise of a welcome package for new students at the

beginning of the school year and will be sent year-round to the greater community who is more

responsive to paper mail. Contests are great because it gives the target market an opportunity to

try Otter Splash’s service without having to commit any money; if the winner of the contest

enjoys Otter Splash’s services, then the business has gained a customer. Special offers will be

sent to existing customers as a way to reward them for using Otter Splash’s services.

Communicating with customers about the services they received will ensure that Otter Splash

maintains a satisfactory service level. Using communications for services customers would like

to see in the future will allow Otter Splash to continually meet customer needs.

22

Otter Splash’s place of business is the face that communicates the type of service customers will

receive. By creating comfortable, clean and upscale facilities, Otter Splash will signal potential

customers of its services.

The faculty and staff at Otter Splash are the vehicles of communications for services in the

business. Otter Splash will aim to have energetic employees who aim to please the customer, to

anticipate the types of washing and cleanings that would be best for the customer’s vehicle, and

to ensure a delightful experience.

Marketing ResearchA campus-wide survey was the primary form of research for this study. The survey provided

valuable information about the target market, both demographically and geographically.

GoogleForm was the platform for the survey; it was emailed to students, faculty, and staff. The

majority of information regarding Otter Splash’s target market was obtained through the survey.

Secondary research involved looking at studies previously conducted by major organizations,

searching for ways that current businesses operate, and articles that pointed to trends. Additional

research included existing costs for services Otter Splash plans to offer, information about

nearby competitors, and the cost of products needed to operate an environmental car wash.

During its operation, Otter Splash will create customer profiles to track individual consumer

preferences, as well as demographics, geographics and psychographics. In addition, the business

will become part of the International Carwash Association, a membership organization that

publishes industry research and market trends; by subscribing to industry magazines such as

Modern Car Care Magazine; by administering surveys to its current customers; and by creating

focus groups bi-annually to test out new products.

FinancialsBreak-even AnalysisOtter Splash will have to sell 26,963 units or $378,825.21 in its first year to break-even, more

specifically, Otter Splash will have to sell 539 Deluxe Splash Packages, 2,966 Friendly Otter

Outdoor Wash & Detail packages, 5,393 Basic Otter Outdoor Wash packages, and 18,065

CSUMB Student Specials (See Table 1).

23

Research concludes Otter Splash will not make a profit in its first year; the break-even units

required are much greater than forecasted sales (see Figure 10). Appendix II shows a complete

list of breakdown of fixed marketing costs, variable marketing costs and break-even points in

units and in dollars.

Table 1. Break-even Points in Units & DollarsBreak-Even

Point in UnitsBreak-Even

Point in DollarsThe Deluxe Splash Package 539 $16,177.59Friendly Otter Outdoor Wash & Detail 2,966 $74,147.28Basic Otter Outdoor Wash 5,393 $107,850.59The CSUMB Student Special 18,065 $180,649.74 Total 26,963 $378,825.21

Figure 10. Break-even Analysis

Sales ForecastThe sales year is divided into the fall and spring seasons with operational hours from 7 AM - 5

PM during the fall and 7 AM - 7 PM during the spring. Projected sales in Appendix III are

denoted on a per unit basis and reflect the sales forecasted for one week in the spring and one

week in the fall for all three years; Appendix IV breaks down weekly sales per season in dollars.

Sales packages are based on pricing by nearby competitors. Table 2 shows a summary of

projected sales for the first three years.

The percentage of sales applied to each package is a reflection of the prices survey respondents

currently spend on having their vehicles washed; see Figure 11

24

Otter Splash expects to sell 1,765 washes in its first year. Sales Figures for Otter Splash’s second

and third years are based on company goals to increase sales by 50% in the second year and 25%

in the third year.

Table 2. 3-Year Sales Projections3-Year Sales Projections

Q1 Q2 Q3 Q4 2015 Total 2016 2017Sales in Units 330.0 552.5 552.5 330.0 1765.0 2665.0 3358.0Sales in Dollars $4,537.50 $7,637.50 $7,637.50 $4,537.50 $24,350.00 $37,594.05 $47,375.00Operating Weeks 11 13 13 11 48 48 48

Figure 11. How much do you pay to get your car cleaned / washed on average? (in Dollars)

Expense ForecastMarketing Expenses for Otter Splash are divided into four categories: Research, Testing of

Marketing Strategies, Communications Campaigns & Creative Production, and Salaries &

Wages (See Table 3). Research costs are based on staying up to date on industry trends, at the

minimum. Testing of Marketing Strategies includes paying for focus groups, costs for product

giveaways, for testing car wash styles, for augmenting the product, and for following up with

customers. Communications Campaigns & Creative Production includes advertising, promotion,

and production costs. Salaries & Wages include the salary of one Marketing & IT employee and

the wages for an Online Troubleshooting Technician. See Appendix V for a complete marketing

expenses line items.

Table 3. 3-Year Marketing Expense ForecastJan 2015 - Mar 2015

Apr 2015 - June 2015

Jul 2015 - Sept 2015

Oct 2015 - Dec 2015

Jan 2015 - Dec 2015

Jan 2016 - Dec 2016

Jan 2017 - Dec 2017

Q1 Q2 Q3 Q4 Y1 Y2 Y3Research $2,086.82 $1,643.64 $1,571.82 $1,536.72 $6,839.00 $7,109.00 $7,411.50Testing of Marketing Strategies $3,906.60 $2,053.20 $3,826.60 $2,013.60 $11,800.00 $15,400.00 $18,225.00Communications Campaigns & Creative Production $12,437.50 $3,137.50 $4,137.50 $3,137.50 $22,850.00 $16,900.00 $18,900.00

25

Salaries & Wages $16,200.00 $18,270.00 $18,270.00 $16,200.00 $68,940.00 $68,940.00 $72,500.00 Total Marketing Expenses $34,630.92 $25,104.34 $27,805.92 $22,887.82 $110,429.00 $108,349.00 $117,036.50

ControlsOtter Splash will keep track of customers through customer profiles, which will keep track of

customer information, the offers they have received, and complaints and feedback they have

submitted. The customer profile database will be the ultimate tool to monitor customer

relationships.

Follow up surveys and an anonymous feedback box will provide Otter Splash with information

on areas where it is succeeding and areas that need improvement.

Otter Splash’s management and employee training program will ensure the company and

customers’ expectations are at the forefront of service.

Listening for feedback in social media, reviews sites, blogs, and Google Alerts will keep Otter

Splash aware of the impact it is making on its customers; this gives Otter Splash the opportunity

to rectify any unhappy customer situation and make changes within the company when needed.

Otter Splash will also upgrade its products to make them more environmentally friendly and to

ensure that it is always causing the least amount of harm to the environment.

ImplementationOtter Splash will begin its marketing prior at the inception of the near year. The company will

contact the university to ensure it can operate on its campus and apply for the required permits.

Upon CSUMB approval, Otter Splash will begin testing environmentally friendly options that

ensures the business will offer quality wash and detail services.

Promotions will be conducted throughout the year. A YouTube Commercial targeting the

geographic area will air throughout the year, with new commercials updated semi-annually. Print

advertisements and ads via Google Ad Words will increase in frequency toward the beginning of

the semester in January and August, and right after students come back from breaks. Direct Mail

advertisements will be used as welcome packages to incoming students in August, and will be

sent out to the surrounding communities in the other three quarters. Contests will be held

throughout the year to keep customers excited about new products and services. Last, email

communication and app messages will be sent twice a month to subscribers.

26

Otter Splash will also routinely have quarterly updates to ensure that the company’s marketing

implementation matches with its goals.

Marketing OrganizationOtter Splash will conduct business-to-consumer marketing; its organization will be set up in a

way that facilitates that goal for a small business. The market department will consist of a

Marketing & IT Director, a Customer Service Representative, and various consultants hired as

needed; see Figure 12.

The Marketing & IT Director will have the savviness of a business analyst with an eye and

experience towards marketing. This person will be in charge of carrying out research, of setting

up marketing strategies, and producing advertising campaigns. The Marketing & IT Director will

also be the gatekeeper of the customer profile list.

A Customer Service Representative will work during business hours to make appointments and

troubleshoot problems online, on the phone and on the app. They will make sure customers have

a live person to help solve problems.

Lastly, because Otter Splash is a small organization, it needs to keep salaries down by hiring

consultants. A graphic designer will be hired to create signage, promotional materials, and logos.

An app creator will be hired to create Otter Splash’s smartphone application and then paid

monthly to maintain the application. Lastly, a web creator will be hired to create Otter Splash’s

website, change the site as needed and fix any problems.

27

Figure 12. Marketing Organization

Contingency PlanningThe contingency plans outlined in this section are based on the problems brought up in the

Critical Issues section.

Otter Splash can look into different suppliers or look at discounts from suppliers by purchasing

products in big quantities. Soap, sponges, and towels do not have an expiration date and

therefore can be stored and used at a later time. If Otter Splash is able to purchase the products at

a cheaper price it will be able to reduce the service price. Having these different options to

protect the business from competitor’s prices will provide Otter Splash with an advantage

because it will have a backup plan. If the price of the products gets too expensive, Otter Splash

will have to increase its prices in order to minimize losses.

If Otter Splash focuses on giving back to the community through car wash fundraisers, it will let

the community know that Otter Splash cares about them. Facilitating fundraising for charity

groups by giving back a set percentage of a daily profits or by allowing them to sell their

products to raise money for their cause will eliminate them as a competitor.

28

If Otter Splash fails to capture the interest of its intended target market, it might have to relocate

to a different area and come up with a new target market. Otter Splash’s new locale will need to

have a higher concentration of an eco friendly clientele. Such locations include Santa Cruz and

the University of California, Santa Cruz campus. Otter Splash’s second option to capture a new

market would be to work directly with car dealerships and airports to maintain their vehicles.

Lastly, if Otter Splash is not successful on CSUMB’s campus it could transform its business into

an at-home car wash service. Going to people’s homes and providing the service will create a

strong relationship with customers.

29

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32

Appendix I. Survey QuestionsDo you currently own or use a car?*Required

Yes No

How do you classify your role at CSUMB?*Required Faculty Staff Student Other: ______________

What is your age range?*Required 16-19 20-25 26-30 31-35 35-40 41-45 46-50 51-55 56+ Decline to answer

What is your personal income?*Required $0 - $24,999 $25,000 - $29,999 $30,000 - $34,999 $35,000 - $39,999 $40,000 - $44,999 $45,000 - $49,999 $50,000+ Decline to answer

Please choose the race/ethnicity which you best identify:*Required Caucasian Hispanic/Latino African American/Black Asian/Asian-American Native American Pacific Islander Other / Mixed Race Decline to Answer

What kind of vehicle do you drive?*Required

33

Car Van Pick-Up/Truck SUV Other: ______________

Do you commute to school?*Required Yes No

On a scale from 1 to 5, how hard do you strive to maintain a presentable (clean) vehicle? 1-I don't strive to keep my car clean and presentable, 5-I strive very hard to keep my vehicle clean and presentable.*Required

1 2 3 4 5

Do you feel like a car's appearance is a reflection of a person's character?*Required Yes No Other: ______________

The exterior of my car is generally:*Required Really Clean Clean Between Messy and Clean Messy Other: ______________

The interior of my car is generally:*Required Really Clean Clean Between Messy and Clean Messy Other: ______________

How often do you clean your car?*Required 2-3 times a week 1x a week 2x a month 1x a month Bimonthly Yearly Other: ______________

34

How much do you pay to get your car clean/washed on average?*Required 0-10 11-20 21-30 31 or more

Where do you clean/wash your car?*Required Home Gas Station Specialty Car Wash Station Other: ______________

Would you use an on-campus car wash service? Yes No Maybe

35

Appendix II. Break-even AnalysisFIXED MARKETING COSTSInternational Car Wash Association Membership Fee $ 299.00Marketing Consultant Fee 6,000.00Focus Group 1,600.00Product Giveaways 2,000.00Testing Versions of Car Wash Styles 2,000.00YouTube Commercial Production 2,000.00Graphic Design 1,200.00Trade Show 750.00Public Relations Consultant Fee ($250 per month) 3,000.00Contests 400.00App Creation 4,000.00App Maintenance ($100 per month) 1,200.00Website Creation 1,500.00Website Maintenance ($100 per month) 1,200.00Signage 3,600.00Marketing & IT Salary 45,000.00Online Troubleshooting Technician (1 @ $9.00 per hour) 23,940.00 Total Fixed Costs $ 99,689.00

VARIABLE MARKETING COSTS FOR ALL PRODUCTS COMBINEDCreating Customer Profiles ($0.10 per customer) $ 0.10Administering Surveys ($0.44 per customer) 0.44Optional Augmented Product Add-ons 6.00Follow-Up Surveys ($0.20 per customer) 0.20Direct Mail ($2.00 per person) 2.00 Total Variable Costs $ 8.74

VARIABLE COSTS PER PACKAGEThe Deluxe Splash Package $ 11.59Friendly Otter Outdoor Wash & Detail 10.59Basic Otter Outdoor Wash 8.73The CSUMB Student Special 7.50

Market Analysis & Strategy - 2014

Sales MixThe Deluxe

Splash Package

Friendly Otter Outdoor Wash

& Detail

Basic Otter Outdoor

Wash

The CSUMB Student Special

% of Sales Mix 2% 11% 20% 67%Sales price per unit $30.00 $25.00 $20.00 $10.00Variable cost per unit $13.78 $12.78 $10.92 $9.69

The Deluxe Splash Package


& Detail

Basic Otter Outdoor

Wash


Weighted Average Selling Price = $0.60 + $2.75 + $4.00 + $6.70Weighted Average Selling Price = $14.05



& Detail

Basic Otter Outdoor

Wash


Weighted Average Variable Expenses = $0.28 + $1.41 + $2.18 + $6.49Weighted Average Variable Expenses= $10.35

Break-Even Units = SP - VC x Q - FC = 0Break-Even Units = ($14.05 - $10.80) x Q - 99,689.00 = 0Break-Even Units = $3.70 x Q = 99,689.00Break-Even Units = 26,963


Friendly Otter Outdoor Wash &

Detail

Basic Otter Outdoor

Wash

The CSUMB Student Special Total

Break-Even Point in Units per Package 539 2,966 5,393 18,065 26,963Break-Even Point in Dollars: $16,177.59 $74,147.28 $107,850.59 $180,649.74 $378,825.21

37

Appendix III. Weekly Fall & Spring Sales Forecast for Year 1, Year 2 & Year 3 (in Units)Year 1: Weekly Fall Car Wash Sales (in units)

Sales Package% of Total

SalesWeekday

Sales RangeWeekend

Sales RangeMinimum

Sales per WeekMaximum

Sales Per WeekAverage Sales

Per WeekThe Deluxe Splash Package 2% 0.0 0.0 0.0 0.0 0.0 0.0 0.0Friendly Otter Outdoor Wash & Detail 11% 2.0 2.0 1.0 2.0 3.0 4.0 3.5Basic Otter Outdoor Wash 20% 3.0 4.0 2.0 3.0 5.0 7.0 6.0The CSUMB Student Special 67% 10.0 14.0 7.0 10.0 17.0 24.0 20.5Totals 100% 15.0 20.0 10.0 15.0 25.0 35.0 30.0

Year 1: Weekly Spring Car Wash Sales (in units)


SalesWeekday

Sales RangeWeekend

Sales RangeMinimum




Year 2: Weekly Fall Car Wash Sales (in units)


SalesWeekday

Sales RangeWeekend

Sales RangeMinimum







SalesWeekday

Sales RangeWeekend

Sales RangeMinimum




Year 3: Weekly Fall Car Wash Sales (in units)

Sales Package

% of Total Sales

Weekday Sales Range

Weekend Sales Range

Minimum Sales per Week

Maximum Sales Per Week

Average Sales Per Week

The Deluxe Splash Package 2% 1.0 1.0 0.0 1.0 1.0 2.0 1.5Friendly Otter Outdoor Wash & Detail 11% 3.0 4.0 2.0 3.0 5.0 7.0 6.0Basic Otter Outdoor Wash 20% 6.0 8.0 4.0 6.0 10.0 14.0 12.0The CSUMB Student Special 67% 19.0 25.0 13.0 19.0 32.0 44.0 38.0Totals 100% 29.0 38.0 19.0 29.0 48.0 67.0 57.5



SalesWeekday

Sales RangeWeekend

Sales RangeMinimum




39


Appendix IV. Weekly Fall & Spring Sales Forecast for Year 1, Year 2 & Year 3 (in Dollars)Year 1: Weekly Fall Car Wash Sales (in dollars)

Sales PackageSales Price

% of Total Sales Weekday Sales Range Weekend Sales Range

Minimum Sales per

Week

Maximum Sales Per

Week

Average Sales Per

WeekThe Deluxe Splash Package $30.00 2% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Friendly Otter Outdoor Wash & Detail $25.00 11% $50.00 $50.00 $25.00 $50.00 $75.00 $100.00 $87.50Basic Otter Outdoor Wash $20.00 20% $60.00 $80.00 $40.00 $60.00 $100.00 $140.00 $120.00The CSUMB Student Special $10.00 67% $100.00 $140.00 $70.00 $100.00 $170.00 $240.00 $205.00Total 100% $345.00 $480.00 $412.50

Year 1: Weekly Spring Car Wash Sales (in dollars)



Minimum Sales per

Week

Maximum Sales Per

Week

Average Sales Per


Year 2: Weekly Fall Car Wash Sales (in dollars)



Minimum Sales per

Week

Maximum Sales Per

Week

Average Sales Per


40


Year 2: Weekly Spring Car Wash Sales(in dollars)



Minimum Sales per

Week

Maximum Sales Per

Week

Average Sales Per

WeekThe Deluxe Splash Package $30.00 2% $30.00 $30.00 $0.00 $30.00 $30.00 $60.00 $45.00Friendly Otter Outdoor Wash & Detail $25.00 11% $75.00 $125.00 $75.00 $75.00 $150.00 $200.00 $175.00Basic Otter Outdoor Wash $20.00 20% $120.00 $180.00 $100.00 $120.00 $220.00 $300.00 $260.00The CSUMB Student Special $10.00 67% $200.00 $300.00 $150.00 $200.00 $350.00 $500.00 $425.00Total 100% $750.00 $1,060.00 $905.00

Year 3: Weekly Fall Car Wash Sales (in dollars)



Minimum Sales per

Week

Maximum Sales Per

Week

Average Sales Per


Year 3: Weekly Spring Car Wash Sales (in dollars)



Minimum Sales per

Week

Maximum Sales Per

Week

Average Sales Per

WeekThe Deluxe Splash Package $30.00 2% $30.00 $30.00 $30.00 $30.00 $60.00 $60.00 $60.00Friendly Otter Outdoor Wash & Detail $25.00 11% $100.00 $150.00 $75.00 $100.00 $175.00 $250.00 $212.50Basic Otter Outdoor Wash $20.00 20% $160.00 $220.00 $120.00 $140.00 $280.00 $360.00 $320.00The CSUMB Student Special $10.00 67% $250.00 $380.00 $190.00 $260.00 $440.00 $640.00 $540.00Total 100% $955.00 $1,310.00 $1,132.50

41


Appendix V. 3-Year Marketing Expenses ForecastJan 2015 - Mar 2015

Apr 2015 - June 2015

Jul 2015 - Sept 2015

Oct 2015 - Dec 2015

Jan 2015 - Dec 2015

Jan 2016 - Dec 2016

Jan 2017 - Dec 2017

Research Q1 Q2 Q3 Q4 Y1 Y2 Y3Creating Customer Profiles ($0.10 per customer) $53.30 $26.60 $13.30 $6.80 $100.00 $150.00 $187.50Examining Competitors & Trends - International Car Wash Association Membership Fee $299.00 $0.00 $0.00 $0.00 $299.00 $299.00 $399.00Administering Surveys ($0.44 per customer) $234.52 $117.04 $58.52 $29.92 $440.00 $660.00 $825.00Buying Research Studies - WashTrends Magazine $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 - Modern Car Care Magazine $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Marketing Consultant Fee ($500 per month) $1,500.00 $1,500.00 $1,500.00 $1,500.00 $6,000.00 $6,000.00 $6,000.00 Total Research $2,086.82 $1,643.64 $1,571.82 $1,536.72 $6,839.00 $7,109.00 $7,411.50

Jan 2015 - Mar 2015

Apr 2015 - June 2015

Jul 2015 - Sept 2015

Oct 2015 - Dec 2015

Jan 2015 - Dec 2015

Jan 2016 - Dec 2016

Jan 2017 - Dec 2017

Testing of Marketing Strategies Q1 Q2 Q3 Q4 Y1 Y2 Y3Focus Group $800.00 $0.00 $800.00 $0.00 $1,600.00 $1,600.00 $1,600.00Product Giveaways $500.00 $500.00 $500.00 $500.00 $2,000.00 $2,500.00 $3,000.00Testing Versions of Car Wash Styles $1,000.00 $0.00 $1,000.00 $0.00 $2,000.00 $2,000.00 $2,000.00Optional Augmented Product Add-ons $1,500.00 $1,500.00 $1,500.00 $1,500.00 $6,000.00 $9,000.00 $11,250.00Follow-Up Surveys ($0.20 per customer) $106.60 $53.20 $26.60 $13.60 $200.00 $300.00 $375.00 Total Testing of Marketing Strategies $3,906.60 $2,053.20 $3,826.60 $2,013.60 $11,800.00 $15,400.00 $18,225.00

42


Jan 2015 - Mar 2015

Apr 2015 - June 2015

Jul 2015 - Sept 2015

Oct 2015 - Dec 2015

Jan 2015 - Dec 2015

Jan 2016 - Dec 2016

Jan 2017 - Dec 2017

Communications Campaign & Creative Production Q1 Q2 Q3 Q4 Y1 Y2 Y3YouTube Commercial Production $1,000.00 $0.00 $1,000.00 $0.00 $2,000.00 $2,000.00 $2,000.00Graphic Design - Print Ads $200.00 $200.00 $200.00 $200.00 $800.00 $800.00 $800.00 - Website Banners $100.00 $100.00 $100.00 $100.00 $400.00 $400.00 $400.00Direct Mail ($2.00 per person) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $4,000.00 $6,000.00 $8,000.00Web Advertising $187.50 $187.50 $187.50 $187.50 $750.00 $1,400.00 $1,400.00Social Media Advertising $750.00 $750.00 $750.00 $750.00 $3,000.00 $3,000.00 $3,000.00Contests $100.00 $100.00 $100.00 $100.00 $400.00 $100.00 $100.00App Creation $4,000.00 $0.00 $0.00 $0.00 $4,000.00 $0.00 $0.00App Maintenance ($100 per month) $300.00 $300.00 $300.00 $300.00 $1,200.00 $1,200.00 $1,200.00Website Creation $1,500.00 $0.00 $0.00 $0.00 $1,500.00 $0.00 $0.00Website Maintenance ($100 per month) $300.00 $300.00 $300.00 $300.00 $1,200.00 $1,200.00 $1,200.00Signage $3,000.00 $200.00 $200.00 $200.00 $3,600.00 $800.00 $800.00 Total Communications & Production $12,437.50 $3,137.50 $4,137.50 $3,137.50 $22,850.00 $16,900.00 $18,900.00

Jan 2015 - Mar 2015

Apr 2015 - June 2015

Jul 2015 - Sept 2015

Oct 2015 - Dec 2015

Jan 2015 - Dec 2015

Jan 2016 - Dec 2016

Jan 2017 - Dec 2017

Salaries & Wages Q1 Q2 Q3 Q4 Y1 Y2 Y3Marketing & IT Salary $11,250.00 $11,250.00 $11,250.00 $11,250.00 $45,000.00 $45,000.00 $47,500.00Online Troubleshooting Technicians (1 @ $9.00 per hour) $4,950.00 $7,020.00 $7,020.00 $4,950.00 $23,940.00 $23,940.00 $25,000.00 Total Salaries & Wages $16,200.00 $18,270.00 $18,270.00 $16,200.00 $68,940.00 $68,940.00 $72,500.00

TOTAL $34,630.92 $25,104.34 $27,805.92 $22,887.82 $110,429.00 $108,349.00 $117,036.50

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yeseniaanayabus306.files.wordpress.com€¦ · Web viewOTTER SPLASH. Market Analysis & Marketing Strategy, 2014. Prepared by Yesenia Anaya-Mendez, Maria Preciado,Avery Suazo-Greathouse,