High Maintenance: Market Analysis

3. The Market 

For High Maintenance, marketing will be a tool to penetrate and reach its customers. The aim will be to put the customers at the center of the company's operations to win as many customers as possible. Though this will be a challenge regarding the strict and highly competitive commercial spray market and industry in which the company will be running, the company will use the resources available smartly to achieve its outlined mission. Here are the industry's outlook and the market that High Maintenance will be aiming to control in recent years. 

3.1 Industry analysis 

The company will be operating in a commercial disinfectant industry as a cleaning company targeting several various small businesses to make them work safely during the COVID-19. The dream is to provide excellent service to be the leader in the industry. The industry is under the CODE number 561720, as listed by the North American Industry Classification ( Berardi et al., 2020). Currently, the commercial cleaning industry segmentation follows the type of cleaning service that business under this code offers. For instance, some companies provide these cleaning for different sectors such airline sector. Some offer building-cleaning services, interior while others are under the category of those providing the service to the shopping centers, offices, and small businesses. At the same time, there is a segmentation of the companies in this industry that offers cleaning but are not involved disinfection. Therefore, High Main tenance will be under the segment of the businesses that will be providing cleaning services to small businesses. The trend in this industry is appealing because the current projected growth could reach about 2.9% in the next five years. The industry is also promising as its sales growth rate is anticipated to hit about 3.6% in the next five years. Despite such potential growth and glimmers of hope, the regulations are stringent in this industry, and environmental restriction poses a significant threat to the companies that specializes in this industry. 

General information 

The industry name is the commercial disinfectant industry. It is a service industry where the critical service is cleaning and disinfection of various business places, offices, and other relevant areas where such services are deemed necessary. In this industry, there are more than 106 major documented companies in United Stated. The market size estimation is about $3.5 billion in 2020 ( Sakudo et al., 2020). The competition in this industry is extreme. First, several big companies provide the same services. Companies such as Procter & Gamble Co. are currently offering these services. These are the chief supplies and manufacturing of different chemicals and disinfectants that companies use for cleaning. Therefore, the level of competition is high in this industry. 

Size, Growth Rate, Trends, Drivers of the Industry 

The rate of growth in this industry is high. According to the current projection, the rate of industry growth is about 6.7%. In the United States, the GDP growth rate is about 2.3%, which is projected to fall to a negative 2.9 % due to the rise of COVID-19 further( Berardi et al., 2020). Therefore, the rate of development in this industry is likely to increase despite the reduction in the economy. For these segments that the company will be operating, the rate of growth is the same. Due to the need for business safety as they prepare to open up the economy, the need for security is critical. Therefore, this industry is likely to grow despite the anticipated reduction in the GDP in the country. There is a high rate of expectation of growth in this industry in the next coming years. The trend in the growth is likely to grow because the government issues strict regulations of the reopening of different small businesses. These include the disinfection of various places for safety. The major trend in this industry is the specification of disinfection chemicals. The government has placed strict regulations regarding the chemical's nature to use for the process of disinfection. It is the challenge that High Maintenance as a company will have to face and overcome. 

Sensitivity to Economic Cycles & Seasonality 

The international issues, such as different regulations in different countries, are likely to influence the High Maintenance Company's operation. These include the trade barriers, trade tariffs, and also regulations that affect the sector in which the company will be operating. Other than the international issues, local companies will also have an impact on this company. For instance, some of these local companies will be the supplies, and their internal culture, factors, and even goals that they have will affect the High Maintenance’s operation. Their cost, strategies, and competitiveness in this market will affect the operation of the High Maintenance. Also, the seasonal variation will be a big challenge to our service at High Maintenance. During the peak season, such as this time of COVID-19, the company will need more finance to support the demand for its services. Therefore, it will be spending more as it will also be gaining more if there is a good strategy. However, the off-peak season will be a challenge because the company's cash flow will reduce. Therefore, the cash flow will depend on the demand cycle. When the demand for our services is high, the operation will be efficient, but with low demand, the business operations and cash flow will be small. 

Legal, Political and Economic Factors 

Our company will be adhering to different regulations and policies set by the antimicrobials Division, Office of Pesticides Programs, EPA, under the authority of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) of 1947. The company operations will also be in line with the regulations and policies by the Food Quality Protection Act (FQPA), which will guide the company as it offers the customers the quality services in the industry. For our company, health and safety will be the priority for the business. These bodies are part of the government agencies that will be regulating the company ( Sakudo et al., 2020). Also, health assessment will be done by different health and safety bodies such as OSHA, which will be part of our core values to sustain the company. Other government agencies will be the Food and Drug Administration (FDA) that will be assessing our chemical that will be used for disinfection. 

Regarding the political atmosphere, the company will not have issues as long as it provides safe services to the environment and the people in the houses where it will be disinfecting. However, our business will be vulnerable to political instability. Any political tension that will be leading to business closure will hurt our operations. These regulations will be critical, and any change within the local region will impact our activities. 

Sociocultural Factors 

Our company may not rely much on social challenges, but environmental regulations such as a change in safety policies will impact the business. The change in disposable income wil not demand much from us. However, the difference will depend on the operation of the small business that will demand our services. Also, living conditions will not have an impact on the company but will have a partial effect on us because it will be affecting our customers. Therefore, the rate of the services to them may reduce. 

Technological Factors 

Due to the demands for safety, we will have to ensure that we train our staff on different technologies emerging in the industry. In this industry, the rate of innovation is high, and therefore training the team will be the norm to keep pace with the technology. The rate of energy use is low because most of the machines that will be using will require less energy. However, it will depend on innovation for the efficiency of our services. 

Finance Norms & Patterns 

Financial issues will be flexible because most vendors have different prices for their materials that we will demand. We will be preparing bids, and the vendor that will win the bids will become our supplies. We look forward to having a good relationship with these vendors so that we, sometimes, can take materials and pay after sometimes. We do not expect much in return at the beginning because our prices will low. However, our profit maximization will depend on our service rating and the number of clients we will be able to win on the course of our operations. 

3.2 Market Analysis 

Demographics 

The company will not target any specific demographic because the interest is on the business owners. Regardless of their demographic profile, customers will get our services and products. 

Geographic 

We will operate both locally and nationally. The aim is to begin at the local level and outcompete other companies at the local level before advancing to the national level. We will target both rural and urban, but our concentration will be urban due to high business density in such areas. We will also have stores near our customers for easy accessibilities 

Lifestyle 

Lifestyle is not a significant factor in this company. 

Psychographic 

For all our customers, safety will be a priority. Therefore, we will assume that all our customers value safety and health during the COVID-19 pandemic. 

BuyingFactors and Sensitivity 

Branding our product and services and differentiating them from others will be vital to making as uniquely. We will also set our prices below the market average prices so that we can attract more customers. Our stores will be near the customers as we will be looking to map our customer’s locations. Mapping will allow us to locate our services near the customers. 

Market Size and Trends 

The market currently worth $3.5 billion in 2020, with a potential growth rate of 3.6% per year ( Sakudo et al., 2020). Issues such as taxation and changes in economic inflation are bound to affect the business. Further social policies that reduce consumption rates are also bound to affect our customers, which will affect our operations. Market need such as demand in supply will affect us. Technology needs in the market, as well as regulations all, will affect the company . 

Market Needs 

Technology is the first need for this market. For our company, will train our employees so that they stay current will the technology and social changes that come with it. We will keep ourselves updated with new technologies to ensure that we leverage any chance in the market. Due to our young age, only relevant technologies that will add quality to our work will be purchased. Next is the financial flexibility to stay afloat. We will ensure that we operate within our financial means to avoid straining the business. The next is the promotion strategy, where we will ensure that we have both online and offline ways of services promotion. Price's flexibility for our services will ensure we remain relevant in the fluctuating market prices. 

Market Growth 

The market is developing, and our price will need to be competitive to capture our customers' attention. Any factors that affect the economy positively affect us. However, those that affect the economy positively will be beneficial to us. 

3.3 Competitor Analysis 

FACTOR	Company	Strength	Weakness	Kimberly-Clark	Reckitt Benckiser	The Clorox Co.	Importance to Customer
Products	Only offer services			Good reputation	Good reputation	Good reputation	4
Price	Low prices may have a better image for the company	Customers like lower prices	Other think that low prices represent low quality	Medium to high prices	High prices	High prices	2
Quality	High quality is impressive to customers	Customers like quality	Others think that they are expensive	High-quality products	High-quality products	High-quality products	4
Selection	Better services selection	Give the impression of diversity and better choices	Quality can be an issue	Average selection	Average selection	Average selection	3
Service	A new product may be felt to be inferior to others	Some may want to test the product	Some may ignore the product	Medium to quality services	Quality services	Medium to quality services	3
Reliability	Reliable services to the customers	Trustworthy	High prices impression	Highly reliable products and services	Highly stable product and services	Highly reliable product and services	4
Stability	Stability in supply to the market	Trustworthy	High prices impression	Stable supply and customers	Stability is high	First-class stability	4
Expertise	Good quality	Quality services	Expensive	High-quality expertise	High-quality expertise	Good quality experts	4
Company Reputation	Low	Opportunity for growth	Low sales	Very high and stable	Very impressive	Quite excellent	5
Location	Good	Reduce transportation	Increase cost	Not good	Not densely located	Not near customers	2
Appearance	Good	Increase positive image	Low as compared to many stable companies	Very good	Good image	Reputable structure	4
Sales Method	Impressive	Customer focus	High prices perception on the customers	Online sales mostly	Online and offline	Online and store	3
Credit Policies	No credit	Can improve	Low sales	Less credit	Less credit	Less Credit	2
Advertising	Quality adverts	Can improve	Low sales	Quality promotion through an online platform	Quality promotion through online sales and offline adverts	Excellent online promotion strategy	5
Image	Medium reputations	Opportunity to grow	Low sales	good	good	good	4

Goals 

Low prices will be our advantages 

Better location closer to the customers will be our strength 

Quality will be our strength and that of the competitors 

Product features will be our competitors’ main strengths 

Image is our competitor’s main strengths 

Services is our competitive advantages 

Internal Strengths 

Since we are starting, image is our significant disadvantage. However, it is strength to our competitors who are already in the market and are doing goods. 

Market Share and Distribution 

The market is dominated by existing companies in almost equal measures, with the highest controlling about 7% of the market shares. However, our main idea to get a more significant percentage is through thorough promotion and lower prices but offering quality services to the customers. 

Strategic Opportunities 

Marketing and vigorous services promotion will make us known to customers. We will position our strength, which is low cost and quality services, to give us a competitive advantage. Our competitors are vulnerable due to their credit, location, and prices. We will take full advantage of these weaknesses by negotiating credit terms with the customers. We will also have low prices and also strive to be closer to the customers. 

Barriers to Market Entry and Exit 

Our company will have an easy path to enter because the company depends less on expensive technology. There is also low brand loyalty in the industry, as it depends on the quality of services. Further, many companies act as distribution channels, making it easy for us to get into the market. In the same manner, there is low exit cost and salable assets, which will make it easy for us to exit if necessary. 

4.0 Marketing Strategies and Sales 

4.1 Introduction 

The market strategies describe the best approach the High Maintenance will have in place to outcompete its competitors. It also depicts the segment we will be operating in and our target market. It outlines the marketing mix that we plan to use in the industry. 

4.2 Segment 

For our services, we will rely on two segmentation. We target our locality first as we begin the business. It means that the focus will be on the city where we will be operating. Next, we will target small retailers first. In this market, there are both big and small business owners. Due to the fact we are at the initiation point, we will target the small traders as we gradually invade the bigger market. 

4.3 Positioning 

We want our customers to identify our company as that which offers quality services at low prices. We have decided to place our prices below the market average prices, but we will still strive to achieve the best for them. Therefore, we will position ourselves through our low prices but with quality products and services. 

4.4 Services 

Our services look to ensure safety for the clients' business during the COVID-19 pandemic. We hope that our high quality and the low prices of our services make us different from our competitors. Our strength is low prices and quality, but our weakness is our age because we are just starting. However, our lower-priced services with excellent qualities will make customers buy our services. We anticipate that after sometimes, competitors may switch their prices, but our quality will remain the same. 

4.5 Pricing strategy 

While setting the prices for the services we offer, we will consider some factors. First, we will reconsider our competitors' prices and set our prices below them and the industry average. It will be penetrative prices that will set us aside from the competitors. However, price discrimination will be critical for us. We will use price discrimination to target customers in the rural and differentiate them from those from urban. 

4.6 Distribution channels 

For this services company, the distribution channels will be a direct distribution. It will be the best because we offer services to customers. Therefore, we will strive to ensure that, at any point, we can communicate with clients directly so that we provide them with better services. Our clients are people who own business and wish to get cleaning and disinfection services during the COVID.-19. A direct distributing approach will be critical for our customers as it will allow for interaction with them and the company. Note that the company is starting at a young status in the market. Therefore we will not include any middlemen unless those who will be promoting our services to the customers. However, we will have a team that will be providing quality services to customers. 

4.7 Promotion and Advertising Strategy 

Our product promotion strategy will have two approaches. The first will be operating a website where we wil have all our services and education about how we work as a company. The company will have social media platforms such as Facebook and Twitter. In all these platforms, we will be referring people to our website whenever we discuss with them or have questions. These platforms will also act as advertisement channels. Next, we will have billboards and mass media adverts to market our services. We will also have brochures and flyers that we will use to market our services. We will be leaving our bronchial to any customer we provide services to and asking them to recommend them to their friends. For every customer that recommends us, we will offer them services at much-reduced prices as bonuses. In other cases, the salespersons will bring us close to the customers. All customers' details will be saved, and we will be tracking their progress ethically using their contacts. These approaches to adverts and promotions will be useful as they place the customer at the center. 

4.8 Marketing Vehicles 

We will use brochures because of its low prices. Since we set our prices based on the competitors, we will consider using following the competitors' approach to determining how we make our brochures. This approach will ensure that regardless of what we spend on brochures, our prices will still be within the threshold of those of the competitors. In this industry, competitors' brochure prices range between $200 to $15000 ( Woodall, 2020). Setting ours at $300 due to the cost of our services will be good. For this business, our adverts will consume about 10% of the spending. Therefore, depending on the cost, we hope to spend 10% of it in the adverts sector. 

4.9 Sales Strategy 

We plan to sell our services locally to the local business owners within the areas we are located until we will be strong enough to invade the national market. We will use both personal and internet selling or booking our services. We will also have offices where the customers can book in addition to the reservation on the website. For the site, we will have an internet manager to organize selling. For our stores, we will use call services and salespersons to do the selling. We will have a competitive basic salary. However, we will also use rewards such as discounts on sales of the services for employees. Recruitments will be through the internet, such as Glassdoor. Therefore motivation will be the best way to support our sales. 

References 

Berardi, A., Perinelli, D. R., Merchant, H. A., Bisharat, L., Basheti, I. A., Bonacucina, G &Palmieri, G. F. (2020). Hand sanitizers amid CoViD-19: A critical review of alcohol-based products on the market and formulation approaches to respond to increasing demand.  International Journal of Pharmaceutics , 119431. 

Sakudo, A., Yamashiro, R., Haritani, M., Furusaki, K., Onishi, R., & Onodera, T. (2020). Inactivation of Non-Enveloped Viruses and Bacteria by an Electrically Charged Disinfectant Containing Meso-Structure Nanoparticles via Modification of the Genome.  International Journal of Nanomedicine ,  15 , 1387. 

Woodall, C. (2020). Testing strategies and international standards for disinfectants. In  Decontamination in Hospitals and Healthcare  (pp. 371-376). Woodhead Publishing.