Marketing Manual

Marketing Manual

MOLLY MAID, INC.

December 1, 2014

Table of Contents

Page

1. Standards

1.1 Specs

3 3 3

1.2 Uniforms

1.3 Vehicle Decals

2. Research

2.1 Who are my customers? 2.2 Where are my customers?

5 5 6 6

2.3 Competition 2.4 Couponing

3. Strategy

3.1 What are you trying to accomplish

6 7 8

3.2 The Marketing Pyramid

3.3 Rules of the Road for Effectiveness

4. Advertising Vehicles

4.1 Bottom Level of the Pyramid 4.2 Middle Level of the Pyramid 4.3 Top Level of the Pyramid 4.4 Other Advertising Vehicles

9

10 12 13

5. Vendors

5.1 Working with Vendors 5.2 Preferred Vendor List

13 14 14

5.3 Preferred Marriage Mail Vendor Descriptions

6. Building Your Marketing Plan 6.1 Why Create a Plan

16 16 17 18

6.2 Designing Your Plan 6.3 Marketing Plan Sample 6.4 Follow Through and Adjust

7. Tracking and Analyzing 7.1 Everyday Tracking

18 18 19

7.2 Marketing Analysis 7.3 Customer Care Reports

MOLLY MAID Marketing Manual Copyright  2015, Molly Maid, Inc.

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Why Should a MOLLY MAID Business Advertise?

The obvious answer is to increase sales. Here are some other reasons to advertise:

1. Branding: Create and enhance MOLLY MAID’s image. Make sure the consumer thinks of MOLLY MAID first when they are ready to buy.

2. Provide information for the consumers and the marketplace. Increase awareness, familiarity and trust in the marketplace.

3. Hold onto your existing customers – the competition is after them.

4. Reach out to new customers – they don’t know you are there unless you tell them.

5. Reminders – people forget. The more impressions you make, the longer people remember.

6. Sway those procrastinators! People delay decisions. Make sure they see your ad when they are ready to buy.

7. The market changes – people move, develop new wants and needs, or buying habits.

8. Advertising gives your business a competitive advantage over non-advertising competitors.

9. Advertising generates continuous customer traffic. Curious shoppers can be developed into new customers.

10. Advertising builds your reputation and strengthens your business identity.

11. Maintain a healthy and positive image while counteracting misleading gossip or news with a solid advertising message.

12. Advertising builds morale at your business, demonstrating to your employees that your business is strong and healthy, and you are committed to growing the business.

13. Advertising says, “Our doors are open and we’re ready for business!”

14. Advertising builds the value of your business.

Consumers are exposed to 2,700 advertising impressions each day!

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Standards

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1.1 Specs It is very important that the MOLLY MAID name and image be used consistently throughout the country. These guidelines should be followed: 1) The MOLLY MAID logo must remain intact at all times. Never separate the picture of the maid’s bonnet from the words or alter the size of the bonnet; it must remain proportionate to the rest of the logo. Refer to the Marketing Materials section of the MOLLY MAID Team Website for logo files. The printer should be able to adjust the size to fit the piece it is being used on. 2) The official MOLLY MAID colors are pink (PMS 230) and blue (PMS 294). The font is Goudy Bold Old Style. 3) All locally designed materials that use the MOLLY MAID name or logo must be approved in writing by the home office before being used. 1.2 Uniforms All aspects of the MOLLY MAID image work together to communicate that our company is different than other services. The approved uniform shows both prospective employees and customers the professional and organized nature of MOLLY MAID. The MOLLY MAID home service professional uniform is both operationally functional and a good marketing tool. Customers will also feel safe and secure in being able to instantly recognize MOLLY MAID employees in their neighborhoods. It is as vital for you and your office staff to wear your approved MOLLY MAID business attire as it is for your home service professionals to wear their approved uniforms. Our dress is just one more element that raises MOLLY MAID above the level of its competitors. Simply put, we dress differently because we think differently, and we want our image to portray our professionalism at a glance. 1.3 Vehicle Decals Your decaled MOLLY MAID vehicle is a rolling billboard and advertises MOLLY MAID to thousands of people every day. It is important to keep all MOLLY MAID cars clean and in good working order at all times. A dirty car or noisy muffler will reflect poorly on your business. Vehicles should be painted in an approved dark blue color. Approved decals can be purchased from our MOLLY MAID approved supplier Sprout Loud. Please visit the MOLLY MAID Approved Vendor List for contact information. NOTE: Failure to follow these guidelines could have a serious impact on the entire MOLLY MAID system, and on our ability to use and defend the trademark that is a symbol of superior residential service.

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The sun will fade decals over time, so they should be changed every few years. In cold climates, rear window decals may need to be changed more frequently as frost scrapers often damage them during the winter months

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2. Marketing Research

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2.1 Marketing Research Every MOLLY MAID territory is different. Customer preferences, advertising responsiveness, and the competitive climate are all factors that can vary drastically even between adjacent MOLLY MAID owners. Before you attempt to select advertising vehicles or design a marketing plan, it is essential that you perform the necessary research. This research will encompass all of the following categories: Your customer, your territory, your competition, and your marketplace. 2.2 Who are my Customers? The importance of knowing your customer cannot be overemphasized. In order to effectively reach your target audience (your customer) you must know who they are and where they live. Here is some information to use as you begin planning your marketing campaign. Please note that this information is based on nationwide statistics, and it can vary from one market to another. The MOLLY MAID Family MOLLY MAID families consist primarily of married couples with children. Many have children that are school-aged. In the vast majority of cases, it is a woman between the ages of 35-54 who is the main purchaser of MOLLY MAID service. In their leisure time, our customers often travel, play sports, and buy home furnishings and electronics. Home – Value, Size and Location The typical MOLLY MAID customer owns and lives in a single-family home in a suburban location. Home values are frequently high (in most markets this will fall in the range of $125,000 - $750,000). Most MOLLY MAID customers live in a home with approximate square footage of 1,500 - 4,000, with the typical home about 2,500 - 3,500 square feet. Household Income MOLLY MAID customers’ household incomes also tend to be above average (in most markets, this will fall in the range of $50,000 - $150,000). This higher income is often the result of two salaries. Education Level A great percentage of our customer base has some sort of college education 2.3 Where are my Customers? Using supplied maps and demographic information from Molly Maid, Inc. and the various vendors you are investigating, analyze your market’s demographic make-up, with the goal of organizing your zip codes from highest concentration of qualified customers to lowest. You can also look to free websites, like www.city-data.com and www.melissadata.com. Designate where the sweet spots of your territory are. As a new owner, these will be areas where there is a high concentration of high income level and household value households.    

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As an existing owner, these will be areas where you have a high concentration of households that match the same demographic criteria as your “best” customers. When designing your marketing plan, you want to be sure you penetrate these areas more deeply, using more targeted media, like doorhangers, targeted marriage mail, and solo direct mail. Details of these media are found in section 4.2 of the manual. 2.4 Competition Each territory will vary in its level of competition. Competitors typically mean more consumer demand, and more potential for your business to grow. The advertising done by your competitors should help your business because customers will choose the service that best meets their expectations. Look for your competitors advertisements and check on their size of ads in the yellow pages. If you can, try to obtain an estimate from your competitor to get a better feel of their pricing and operations. Perhaps they push customers to sign lengthy year-long contracts or offer additional services; these are all good things to know as you go to market in your area. You want to know what differentiates you from them at all times. When business is slow, competitors will be looking at ways to attract new clients and your clients will be vulnerable to better offers. As a defensive strategy, you need to continue marketing to your existing customers. Maintaining strong relationships with valued customers is critical and will give you a competitive edge in good and bad times. Be interested in how your customers are faring. Pay them personal attention by making sure to meet with them face to face on occasion. A good personal relationship goes hand in hand with a solid business relationship and is your best defense against competition. 2.5 Couponing As part of your required research, pay attention to the discounts your competitors are offering to consumers in your market. If competition is low and discounts minimal, you may not need to begin advertising with a large discount. However, if discounts are commonplace, it may be hard to overcome that consumer appeal without an enticing discount of your own. The standard national offer of “$50 off ($25 off your first and fourth regularly scheduled cleanings) is designed to be used over the course of four cleanings to attract and retain customers. It would be very difficult for a business to grow if it was performing many one-time cleanings at $50 off.

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3. Marketing Strategy

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3.1 What are you trying to Accomplish? Your ultimate goal is to develop disproportionate market share and dominate your market. This market dominance is the result of a well-developed and executed plan. The business that advertises regularly, so that any given MOLLY MAID household sees its message six to nine times a year, gains “top-of-mind” awareness and eventually dominates the market. Important Points to remember:

 It takes a minimum of six to nine impressions to equal one sale

 It costs 5 times as much to gain a customer as it does to keep one

 A unadvertised business is invisible to the consumer

 Marketing is an investment, not an expense

3.2 The Marketing Pyramid Consider your marketing strategy as a 3 tier pyramid with each tier representing a different audience and list of advertising vehicles to reach that particular audience. All three levels of the marketing pyramid should be considered when designing a marketing plan for your business. The most effective marketing plan will be one that maximizes marketing dollars at each level. A description of the advertising vehicles within each level will be described in section 4 of the Marketing Manual. Market Planning

Customers

Leveraging the Customer’s Behavior

Customer Acquisition -

“Reach and Frequency”

Where people go when they need a cleaning service.

Qualified Households by MOLLY MAID

52 Weeks

 Bottom Level - Foundation : The bottom of the pyramid represents the places you need to be 52 weeks out of the year for consumers in your territory to easily find

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YOU when they are “raising their hands” for maid service. Advertising vehicles included within this level are not targeted media and are used primarily to provide your contact information to the entire market area. Media include Yellow Pages, Internet, vehicle decals, and networking. Again, your contact information must be accessible via these vehicles 52 weeks out of the year.  Middle Level – Customer Acquisition : Unlike the first level, where the consumer is reaching out to you, in the Customer Acquisition level, you are the one reaching out. This is also known as the Reach and Frequency level. Using a media mix of low- cost, high frequency vehicles, such as third party marriage mail, doorhangers, and newspaper inserts, you will be able to penetrate your market with your message consistently and cost effectively, building towards your goal of “top-of-mind” awareness. Because you are essentially “buying business” in this level, this is where you will spend the bulk of your marketing dollars.  Top Level – Leveraging Customer’s Behavior : The audience for this level consists of customers and/or prospects with which you have had some contact. Perhaps you performed an in-home estimate but did not close it, or the prospect is a cancelled customer, or a very valuable current customer. Use back-marketing, loyalty, and referral programs to leverage their behavior to increase revenue. Always remember, it is five times less expensive to keep a customer than to acquire a new customer. 3.3 Rules of the Road for Effectiveness Here are some “rules of the road for effectiveness” when planning your Reach and Frequency program within the Customer Acquisition (middle) level of the pyramid. No one medium can create success – RULE OF THREE Every potential customer has different behaviors and habits in relating to media, so it is essential to create a varied media mix. Some prospects will diligently search the newspaper every day for services that interest them, while others may ignore the newspaper but look over coupons that arrive in Valpak mailings. By relying on only one or two media, you may miss the opportunity of enticing a new customer. When developing your reach and frequency print campaign, use a minimum of THREE different print vehicles to penetrate your market. Think of the various marketing tools as fishing lures. All fish will bite; the fisherman’s challenge is to find the right lure. Frequency and consistency are keys to success While there are many unknowns in the world of marketing; two things that are proven to work are consistency and frequency. It may not always be WHICH mediums you use, but HOW you use them. We know that it takes a minimum of 6-9 impressions before a person will even think of picking up a phone to call on a product or service, so it is essential that each impression of your message is building upon the last to reach a minimum of 6 per year. Never try something once…or twice…or three times Keeping in mind the importance of frequency and consistency, be sure to give your chosen

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marketing vehicles a chance to work for you. A person may not call after seeing your ad once in the Valpak mailer, but two months later, when she’s too busy to clean the house herself and is looking for help, she’ll remember she saw your message and coupon offer in Valpak and look for you there. If you are not there, she will call someone else. It can take anywhere from 3-6 months for you to generate a strong response from your ad, so remember to give the vehicle at least that much time when first trying it out. Add coverage to Sweet Spots As your business grows and it becomes easier to identify the areas where potential customers are concentrated, more targeted advertising should be done. Doorhangers and solo direct mail are two reach and frequency vehicles that can be used to accomplish this. Another option is postcards through Every Door Direct or Quantum.

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4. Advertising Vehicles

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4.1 Bottom Level of the Pyramid-Foundation-Get Found Remember, your foundation vehicles serve the purpose of providing your contact information to your entire territory 52 weeks out of the year. These are places consumers can find you when they have “raised their hands” and are looking for service. Yellow Pages : Most franchise owners will find anywhere from two to six different yellow page directories in a single franchise territory, so it is important to examine each directory. The cost of advertising in the yellow pages can range from several hundred to several thousand dollars, depending on the population of the area in which you do business. NOTE: The minimum requirement for a trademark listing, as outlined in your Franchise Agreement, is that your ad must appear in at least one yellow pages publisher’s book. Internet: More and more people are turning to the Internet for basic consumer information – information they used to gather over the phone. With this in mind, include the MOLLY MAID website address (www.mollymaid.com) on all your marketing pieces. You’ll find that consumers as well as potential employees will contact you via the internet. You need to include local Pay per Click advertising in your marketing plan. We have preferred vendors that we work with to manage this for you. Contact information is on the Marketing Right Start Vendor list. You will contact and speak to our preferred vendor to learn more and recommended budget. Miscellaneous Print : Church bulletins, condo associations, club newsletters, theater programs, and special newspaper supplements are other relatively inexpensive ways to advertise. Because this advertising is generally less effective than Newspaper Inserts, doorhangers, and direct mail, these alternative print advertising vehicles should only supplement, never replace, our standard system. 4.2 Middle Level of the Pyramid-Acquisition-Go Find Marriage Mail Advertising (Valpak/Valassis): MOLLY MAID owners depend heavily on third party marriage mail companies to provide low cost/high frequency vehicles to penetrate their market effectively. These companies are referred to as “marriage” mail companies because they will produce your advertisement, along with several others, and mail them to specific zones. Through the years, MOLLY MAID has worked with all the major marriage mail companies and, in some cases, has secured national rates specifically for MOLLY MAID owners. A description of each marriage mail provider can be found in section 5 of the Marketing Manual. All preferred marriage mail providers have our approved artwork available. You have flexibility as to what is printed in the customizable area of the mailer insert; however, if you change the pre-defined format, you must get approval from the home office. Part of your contribution to the National Marketing Fund will go towards online advertising on the major search engines, Google and Yahoo.

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To see the pieces available, visit the Marketing Materials section of the MOLLY MAID Team Website and look in Direct Mail.

Solo Piece Direct Mail: Another type of advertising done through the mail is solo piece direct mail, where your advertising piece arrives solo at specified households of your choosing. This type of advertising can be very expensive because you alone incur the full cost for acquiring names and addresses, printing, and distribution. For this reason, direct mail is not recommended as a means to reach a large number of prospects and should only be done when you have a specific mailing list of qualified prospects. One example of potential prospects to direct mail to may be new movers in your area. A number of companies specializing in compiling lists of new movers and/or executing programs for advertising to new movers are listed on the Approved Vendor List on the MOLLY MAID Team Website. A less expensive option for solo direct mail is available through a mailing company known as Quantum Direct. Using a single address from within your territory chosen by you, Quantum will mail your customized postcards to a set of surrounding households. This is known as Neighbor Mail and can be effective when trying to penetrate a small section of your territory. A link to Quantum Mail’s ordering portal is located on the Homepage of the MOLLY MAID Team Website. 4.3 Middle Level of the Pyramid-Leveraging-Keep Them Referral and Loyalty Pieces: A customer’s unique experience with your company will determine whether or not she will recommend your services to a family member or friend, so pieces designed to increase customer loyalty and reinforce your personal relationship with your customer are highly recommended. Referrals can be stimulated through the use of leave-behind materials and loyalty vehicles. You can send out cards or discounts for special occasions in your customers’ lives; birthday, wedding, holidays and anniversary of services. By continually reinforcing MOLLY MAID with your existing customer base, you encourage your customers to recommend MOLLY MAID to others. This low cost advertising is targeted directly at existing customers and has a very high level of effectiveness. Occasional Customer Leave Behind: This leave behind card or tent card provides the occasional customer with pricing levels should they choose to increase their frequency of service. Back marketing: There are a number of groups that you should back market to several times throughout the year. These include: Occasional customers, and cancelled customers. Kirkwood offers an automated back marketing program that can take care of all of this for you.

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Social Media: You can get your business on the social side by utilizing Facebook. You can sign up through Process Peak.

4.4 Other Advertising Vehicles Radio and Television: Broadcast media is very expensive if you run it over a long period of time, which is usually necessary for maximum impact. Only large, established businesses, or areas that have multiple franchise owners covering the broadcast area who can share the expense should consider broadcast advertising in their marketing plan. Generally, broadcast media should be viewed as methods of raising name recognition, not methods for getting new customers. To penetrate a market requires message repetition. Think about the number of times Coke or Budweiser advertise just to maintain market share. To get that type of repetition requires repeated advertising and a great deal of money. In the event that radio and/or television advertising is a viable addition to your established marketing mix, either when you are able to share costs with neighboring owners, or you have an established and very effective print campaign with excess funds to use, the Home Office has developed a number of broadcast media spots. As your business grows, contact your RSM about the ads. Billboards : Like radio and television, billboard advertising is not considered a direct response marketing method. Billboards can be used to raise general brand awareness for mature businesses, but will typically not directly correlate to sales inquiries. Because of this and the high cost to obtain space on a billboard, this type of advertising is not recommended. Tradeshows/Expos: While Tradeshows and EXPOs have proven not to be a strong marketing method for MOLLY MAID owners over the years, if executed properly, they have the potential to provide direct exposure to a large number of prospects. Many tradeshows attract businesses rather than consumers, so it is most important to qualify the event and determine exactly what type of person or business will be attending and presenting. If, in addition to an effective print campaign, you have the desire to present at a tradeshow or EXPO, please refer to the Tradeshow Marketing Manual, located in the Marketing Documents section of the MOLLY MAID Team Website, to help you prepare and execute the event properly.

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5. Vendors

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5.1 Working with Vendors MOLLY MAID owners can give a vendor access to the MOLLY MAID Marketing Files Site anytime, day or night! This will allow vendors to download print-quality electronic files for available advertisements. Remember, national vendors such as Valassis, Valpak, Money Mailer, RSVP, Quantum Direct, and Spectrum already have access to our most up-to-date advertising pieces and should not need to access these files. To Send the Authorization: First, be sure you have read through the information on the MOLLY MAID Marketing Materials Site. This will allow you to effectively communicate instructions to your vendor. To authorize a vendor to access MOLLY MAID artwork, simply "copy" and "paste" the following text into an email message addressed to your vendor (the below text can be found by following the link, located on the homepage of the Marketing Materials website, which reads, “Franchise Owners, find out how to provide access to vendors.”

Dear MOLLY MAID Vendor,

You now have access to download artwork files for MOLLY MAID advertisements. Visit https://www.mollymaid.com/Marketing using:

username: mmvendor password: mmgraphics04

All artwork is the exclusive property of Molly Maid, LLC. This artwork may not be altered in any way without written consent from Molly Maid, LLC.

To obtain written consent for alterations, or with any questions, please call the MOLLY MAID Marketing Department at 734-822-6800.

Thank You!

5.2 Preferred Vendor List All MOLLY MAID Approved and Preferred vendors can be found on the MOLLY MAID Team Website. See appendix A for current list of approved vendors.

5.3 Marriage Mail Vendor Descriptions ValPak

Monthly Mailings

 Minimum of two mailings per order

 Mails to zones (approximate size of 10,000 homes)

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 Franchise Company (pricing varies)

 Typical rate between $.02-$.04/piece

 Price breaks at higher quantities or lengthier contracts

ValPak

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