Marketing Plan: All-in-one Swiffer Product/Service Description, Situation Analysis

Proctor and Gamble is a large muti-billion dollar company with 22 different products to its name. “The company’s scope and accomplishments are staggering. It employs 138,000 people in more that 180 countries; is a global leader in the majority of the 22 different product categories in which it competes; has 23 billion-dollar global brands; spends more that $5 million a day on R&D; and has total worldwide sales of more that $76 billion a year.” (Kotler & Keller, 2009, p. 139) One of their most recent products is the swiffer sweeper. “The Swiffer created the segment based on the unique electrostatic cleaning action of its disposable paper cloths. It’s differentiated from its competitors by a design that allows it to sweep in hard-to-reach places and also its electrostatic cloths, proven to pick up 93% of household allergens. This capability prompted P&G to include in its launch strategy an alliance with the National Asthma Campaign (NAC) to promote asthma awareness, according to Paul Nix, P&G’s external relations director.” (Secrets of Success: Products that win, July 10, 2009) Nowadays with its product a long way from where it started the Proctor and Gamble company will be marketing a new and improved, all in one, mop, sweep and dust swiffer. The swiffer will include amazing new features such as an attached duster with an extendable handle, an adjustable swiffer handle that extends up to 6 feet, microfiber cloths, a wider handle and an antibacterial mopping solution. The swiffer will be a more complete version of the products that are already offered. The swiffer all in one will include mopping, sweeping and dusting with the use of only one machine. It will be a combination of the swiffer wet jet, swiffer sweeper vac and the swiffer duster. It will include buying two different sets of replaceable microfiber pads to do the jobs of sweeping and mopping separately. In addition, it is also includes buying replaceable microfiber dust pads. The all-in-one swiffer will be convenient in that it will allow for only buying one product instead of three separate ones. In addition, the microfiber cloths last longer that the original swiffer cloths saving consumers more money. Moreover, the microfiber pads will be more environmentally friendly by not having to dispose as many of them because they will be reusable. The microfiber pads are also more absorbent and pick up dust better than any other type of fabric. This will help in having a much cleaner floor than with any other product. The extension of the handle will help people of different heights by avoiding any back pain that may occur while bending over and sweeping. Most brooms are too short making it difficult and really painful for anyone trying to sweep a room much less an entire house. Also the wider handle will be beneficial for those customers with arthritic hands.

Strengths

• Over 10 years in the cleaning product industry with strong marketing experience. • Pioneer in the cleaning systems category and pop culture icon. • A product of Proctor and Gamble that is the global leader in most of its 22 product categories. • P&G devotes 1.8 billion to research and development of their products. • Excellent Brand recognition.

Weaknesses

• Lacking in branch management systems. • Not environmentally friendly.

Opportunities

• Expand product to be worldwide. • Expand product to hospital settings with the antibacterial mopping solution. • Expand product to be sold at Home Depot stores.

Threats

• Recession may mean that the consumers will be reluctant to spend money on a new product. • Sales from the Clorox ready mop may increase • A different company may be ahead in the process of getting this product out on the market.

Target Market

The target market for this project is middle class women, collegiate level over the age of 25 who own or rent a home and have busy lifestyles. The objective is to target women who have to do day to day cleaning in their homes. “I believe that Swiffers primary segmentation is based on Buying Situations rather than Customer Characteristics. My reasoning on this point is supported by the overall benefits sought for the product. The benefits they seek include time savings, convenience and price/value. They are considered heavy users of cleaning products more than males, or women outside the target age range. In addition, this audience segment is aware, well informed and is likely to have used a Swiffer product before. This group often purchases cleaning products in-store at supermarkets, department stores and superstores.” (Marketing: Reverse Engineered Creative Brief, 2009) Although not only women clean, these are the consumers who would best know about what they are looking for in a cleaning product. This target market knows what it is like to use all kinds of brooms, mops and dusters it takes to keep their houses clean. Women in the middle class sector would be able to afford the product and will most likely be the ones buying it since they mostly do the cleaning themselves. In addition, most women over the age of 25 have stable income which is needed in order to buy things such as everyday cleaning products and are able to splurge a bit more on what brands they decide to buy. Most women over the age on 25 have families and live on their own, meaning that they no longer live with their parents. Therefore, it is inevitable that they would need cleaning products. that In this day in age where less means more, it is important to consider that most women do not want their homes cluttered with cleaning products. That is why they would be most interested in what product that can do the bulk of their work. In addition, women don’t usually have the strength to move heavy appliances around the house making it difficult for them to clean certain nooks and crannies. The swiffer adjust to these needs by making it able for them to get to hard to reach places. The cloths also include picking up allergens from the floor. Women are concerned with things such as allergies, especially if they have children around the house. “An example of this audience is a working woman who maintains a hectic schedule, enjoys watching television shows such as Desperate House Wives, Home and Garden TV, Greys Anatomy, and soap operas. She reads popular woman-oriented magazines for tips on style, cooking, cleaning, children, celebrities and relationship tips. She likes to save money using coupons and rebates, gathers facts before purchasing products, and will spend more if she can gain convenience and satisfaction from a product. This segment is also influenced by their peers when it comes to purchasing household items.” (Marketing: Reverse Engineered Creative Brief, 2009) Arthritis usually occurs among women between the ages of 25-55. The wider handle in our product will serve these women better for their arthritic conditions giving them a better grip on the product. The swiffer will be easier to use and requires less water and or cleaning products is it will have a built-in antibacterial liquid like the swiffer wet jet.

Competitors & Substitutes

Some of the competitors that the new swiffer will face will include the Clorox ready mop and Quantum Reach Smart Broom. Out of all three the Quantum Reach is the only one that has all three features incorporated into one machine. “The Quantum Reach "Broom Mop Duster" is a unique cleaning tool that will clean any house from top to bottom. Quantum Reach's patent-pending design provides cleaning power to hard-to-reach areas for sweeping, mopping and dusting. Quantum Reach includes 3 Microfiber pads (Chenille, Dust and Mop) for cleaning, mopping and dusting all areas in every home, apartment or RV, including floors and windows.” (Smarthome, 2010) The Quantum Reach can be a potential threat because it has some of the features offered for the swiffer all in one cleaner. For example it has mopping, sweeping and dusting all in one machine. I addition, it has microfiber pads and an adjusting handle that can fit in difficult angles around the house and can extend to 5 ½ feet. However with all these features the company does not have an antibacterial solution, a larger handle and our extended handle is half an inch longer. In addition, the company does not have two of the most important features that our company does which include a solid brand name and a solid company that has the financial means to advertise this product in a very successful manner. Quantum reach Smart Broom is an independent product that is sold online and not in stores. Therefore this decreases their clientele significantly. Another threat in the line of competitors is the Clorox ready mop. The Clorox ready mop is “an all-in-one mopping system with an onboard cleaner and Absorbent Cleaning Pads that deliver a convenient clean deeply and quickly. Gentle but persistent scrubbing pads attach to the easily maneuverable swivel head, so you can clean every nook and cranny. The Clorox® ReadyMop® Advanced Floor Cleaner is formulated to quickly dissolve dirt and grease. Just pull the trigger to dispense cleaning fluid that attacks dirt and dries fast. And the Absorbent Cleaning Pads are now scrubbier and more effective than ever—yet gentle enough for wood floors.” (Clorox ready mop mopping system, 2010) This is a potential threat in that is does have a 99% disinfecting spray and it has the liquid built into the mop as well as a swivel head. However, clorox does not have a three in one product. The clorox ready mop is only for mopping the floor and does not have the option of sweeping and dusting. In addition, their advertising is a bit weak although they do have the means to put in a bit more effort into it. The company also has a well built in name that does sell their products. Another concern is that although they may not have the product out now, in the same way that they challenge the swiffer wet jet, they may also challenge this all in one swiffer. These two companies are lacking where the other has an advantage. However, if they can both get these aspects together then it will be a definite concern for the Procter and Gamble company to keep the product ahead.
Pricing
The pricing for the new and improved swiffer product will bring in a greater profit for the company. The swiffer kit for the basic product will be priced at $34.99. Additional parts will be priced as follows: wet pads $9.99, dry pads $9.99, dust replacement $9.99 and replacement liquid $6.99. The cost for making a basic kit includes plastic and metal parts $3.17, detail pieces $2.00, packaging $1.02, instruction sheet $.50 and kit preparation $1.50. For the additional parts, the dry/wet pads will be, microfiber material pads $1.07, packaging and preparation $1.98. Moreover, dust microfiber material replacements $1.20, for packaging and preparation $ 1.98. Lastly, liquid bottle for mopping the floor, $1.65 for the liquid and plastic and $1.98 for packaging and preparation. The total cost of a swiffer starter kit will be $8.19 which end up being 23% of the retail price. The remaining 77% will be distributed among marketing cost, operational costs, General and Administrative cost, promotional costs and profit made. The total cost for the original products will be 32% and the remaining 68% will be used in addition to the costs that will be distributed among the categories mentioned above. In terms of profit, the final percentage will be 40% of all sales. The total revenue for the production and sales of the swiffer starter kit will be $5,390,000.00 before the 37% disbursement for all other costs. After the disbursement, the total revenue made will be 3, 395,700.00 for the first year. In addition, for the other products that need to be replaced every month, the total revenue before the 37% that is distributed on other costs it will be $60,336,000.00. After the 37% is distributed the revenue mad from these products will be 31% profit. Out of the money that was made the first year the total 31% profit will be $41,631,840. The total gross revenue for the swiffer kit and the replacement items for the first year based on 200,000 sales will be $45,027,540. The prices for the product will be reasonable for the target market. The starter kit will be the pricier product but it will only have to be bought once every few years. However, what we may be losing in the years to come from the customers not having to buy the starter kits will be made up by the reusable items that the customers must buy. This is where most of the revenue comes in. The population of buyers will increase and therefore the amount of reusable items sold will increase. This will yield a higher profit because it is where most of the profit comes from.
Channels of Distribution The all-in-one swiffer will be distributed among several stores all throughout the country. A two level channel of distribution will be used for this product that will include two intermediaries; a wholesaler and retailer. The wholesaler will buy large quantities of our products and then will disburse the product to the retailers. The retailer will then buy the products from the manufacturers, through the wholesaler, and then it will sell smaller quantities to the end-user. I feel that this is the best method because there will be improved efficiency, better distribution of products and a more convenient way of searching for goods as well as customers. By adding wholesalers we reduce the amount of contact lines between the manufacturer and the retailer. Reducing the number of the contacts the company will be more efficient with their distribution of the product. Intermediaries are also beneficial in that they reduce the gap between the product and services generated by producers with those demanded by consumers. Lastly, another benefit to using this channel of distribution would be to reduce the cost of distribution by reducing the costs of transactions, the more routine the transactions become, the lower the cost. An selective distribution will be used for this product. The product will be placed in a wide variety of outlets but not all the intermediaries willing to carry the product. Some of the stores in which the product will be available will include; Wal-Mart, Target, CVS and Kmart. The original swiffer products have already been sold in these stores with great success and that is why it will be continued with this product. This type of distribution will be beneficial for the product because the company is already well established and it does not have to worry about having the product out in too many outlets. In addition, the company will have more control over the product and it will be less expensive than intensive distribution. Although it may seem like the product is missing out on possible sales, Proctor and Gamble is a well established company and all the swiffer products have been very successful thus far. Therefore, it is not a big issue as far as not having the products in every store possible and the product will not suffer too much from this aspect. The product will still be sold in a majority of the same stores that the original swiffer products have always been sold. The customers already know which stores sell the majority of the products so this will be beneficial with the sales. We will be losing anything by not expanding it to all other outlets because this product already has a well established name. Promotion The type of promotions we will use for out product will include advertising and sales promotions. The advertising will be in 30 second slots of television commercials that will post the product website and the sales promotions will include a money back guarantee on all swiffer products as well as coupons. For the advertising segment the 30 second slots will be included and television stations NBC and FOX. It will be shown a total of three times from 4pm-5pm and from 8pm-9pm on those two channels. The advertisements will include commercials showing the new swiffer as better than your mop, broom and duster combined. In addition, the commercials will show the swiffer website. When the customers are directed to the website they can then take advantage of the money back guarantee or a five dollar off the original price coupon. The advertisements will insure that the Swiffer is worth the money by humorously comparing it to other cleaning products and having to use each product one by one. One spot, titled "Multi-tasking," shows a woman happily cleaning the floor with her Swiffer all-in-one until she is interrupted by a loud noise in her kitchen. When the woman goes to take a look she sees her old mop and broom spilling things on the floor trying to make the swiffer all-in- one look like its not doing its job bad. Meanwhile the duster is hanging from the chandelier accumulating dust. The woman then throws away her old mop, broom and duster. The idea is that once you switch to Swiffer all-in-one, you'll never need your old appliances, again. The commercial concludes with a side-by-side comparison of Swiffer all-in-one to a mop, broom and duster. These commercials will be placed a total of six times a day on the two channels mentioned in between those two hour slots. In addition, the website will be ready with the promotions for a money back guarantee and coupons for the products. The website will consist of all the swiffer products, descriptions of the products and where you can buy them. It will be set up by location so that the customer can choose the store that is the most convenient. Once you choose the all-in-one swiffer the website will automatically suggest the replaceable wet/dry pads, the liquid used and the duster replacements. This will make it more convenient for the customers to find a store that carries all of these products at the same time.