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Krazy Cutters Lawn Care Service Description:
A twelve-year-old boy in the rural community of Coalville, Utah saw a need for a lawn care service in his neighborhood.
Thus, Krazy Cutters Lawn Care was born. Krazy Cutters Lawn Care has been providing the best lawn care for the past
thirteen years in Summit County, Utah. From a single neighbor needing the kid next door to mow the lawn a small
business was started.
Today, Krazy Cutters is a busy company taking care of 50+ lawns seasonally. Krazy Cutters serves homeowners, local
businesses, municipalities, and temporary or seasonal residents. Krazy Cutters is established as a sole proprietorship,
leaving the business with room to grow and diversify. Since the lawn mowing, edging and yard care is doing so well and
a small crew of four part time employees can do this work in a timely and efficient manner, it seemed only natural to
diversify. The idea to diversify came from a job opportunity at Summit Countys Pesticide Control Center. This full time
summer job gave owner, Shoat Roath, the skills, experience, and ideas to expand the business by adding spraying
services. The additional services would be spraying for: weeds, rodents, insects, fungi, pests, and general pesticide
application. Being a proactive business owner, an initial interest survey was sent to current lawn care customers. 28% of
all current clients returned forms stating that customers would use pesticide-spraying services in addition to their current
lawn care service.
Market Analysis:
Client Status: The current clientele of Krazy Cutters Lawn Care can be categorized as homeowners, a small town
municipality and a rural city cemetery. The majority of homeowner clients are elderly persons that can no longer take
care of their yards themselves or who have retired and do not wish to do the work themselves any longer. This is a strong
benefit for the client and Krazy Cutters to expand into spraying. The customer has a reliable source for this service and
Krazy Cutters has increased income by serving the same population with an additional service. In addition to being able
to offer services to current clients, we have determined there is great potential to gain new customers for both spraying
and yard care services. Summit County is known for being the highest median income in Utah. A well-maintained and
manicured lawn, free of weeds, insects, rodents and other obnoxious things is a source of pride. The appearance of a well-
maintained yard is valued in the target market area; this is a great time to be adding a spraying service.
Industry Trends: As the population in the United States grows so does the need for increase in agriculture and food
production. Producing foods for millions of people efficiently has not been done with out the use of pesticides,
herbicides, insecticides etc. As the number of people increase so does the use of spray. Since the majority of research
reporting the use of commercial spraying is in agriculture, we can apply that knowledge to home gardens and yards. The
industry trend that is increasing the most is the use of herbicides (chemicals used to kill unwanted plants or weeds).
Todays industry of spraying tends to lead consumers to the idea of chemical or commercial products. These products
work quickly, effectively and efficiently allowing the client to see immediate response. Certified pesticide applicators
such as the employees of Krazy Cutters will actually decrease the amount of commercial spray used. Typically,
homeowners using self-application, use two to six times more spray than needed. The law now requires commercial
applicators to be licensed. Since all employees of Krazy Cutters are licensed this is an immediate benefit to customers
and fits the current industry standards.
Locally, one of the most annoying insects, the Box Elder Bug, has become prominent in Summit County. The
reproductive life cycle of Box Elder Bugs is slowed down with harsh cold winters. Due to the lack of winter storms and
cold weather that Utah is most famous for, these pests have become a prominent insect problem. People are seeking out
the removal of these unwanted pests. The quickest method to do this is to hire a professional certified applicator.
Because chemical pesticides work quickly and this is the service being provided, the instant gratification of having the
pests gone will be met.
Buyer Profile and Behavior: After conducting research in the region and area, our findings show that there is high
potential to introduce a spraying service in Summit County. The established clientele list, which previously has asked for
a lawn care treatment such as mowing, aerating and edging, would be the initial target for this new service. Starting with
current clients is the easiest way to begin expansion. As stated earlier, clients already returned a survey saying they would
purchase this additional service. Using existing clients is due to the fact that this small local business has yet to be
branded and recognized as easily as a large corporate company. Our studies concluded that adults above the age of 18
whose annual income falls in between $35,000 and $100,000 and who fit into the description of a longtime homeowner
(7+ years), need a spraying service to control pests and all types of weeds within their yards. The participants of our
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survey stated they would purchase a spraying service from a local professional vendor if offered in the community. In
todays world of instant gratification, this opportunity to instantly offer a new service to an existing client should be
appealing to Krazy Cutters customers.
S.W.O.T Analysis: Krazy Cutters Lawn Care is unique because it offers a very personalized and customizable approach
to spraying. The same staff and technician would be seen each time a customer needed a spraying service.
Knowledgeable, licensed, local and professional make this company an easy choice for new clients. By having a small
staff and personalized service identifying the needs of the clients in the future for repeat clients becomes an easy task.
The primary research conducted shows that this type of service is most effectively marketed through word of mouth. The
strengths and opportunities of adding spraying services that are personalized and individualized, out weigh the threats and
weaknesses for Krazy Cutters.
Competition S.W.O.T.: The biggest competition in spraying would be a national chain company called Senske.
Analyzing the research found from Senskes website and personal testimonies, we concluded that Senskes weaknesses
and threats out weigh their strengths and opportunities in a small rural area, such as Coalville and other surrounding
municipalities, making the market available for Krazy Cutters to grow.
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85% of longtime homeowners (identified as 7+ years of ownership) said a spraying service would be helpful in
controlling weed growth and pests in their yards.
59% of homeowners have not paid for a professional vendor to nurture their lawn. This is an opportunity that can
be taken advantage of with a strong marketing plan.
60% of those surveyed said they would use a spraying service if it were offered in their community.
87% of individuals participating in our survey said that the information posted on a website would entice them to
purchase a spraying service.
85% of current homeowners who are currently residing in their home for more than seven years said that pesticide
application use would be helpful in controlling pests in their yards.
The three most common areas of marketing and advertising that have an impact on our target market is:
Word of Mouth
Flyers at local business
Online/Web Based (Social Media, website, etc.)
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Current/Past Customer Survey Results:
80% of previous customers said that a spraying service would be beneficial in controlling weeds in their yards.
70% percent said a spraying service would be beneficial in controlling insects.
50% percent of Krazy Cutters clients said their main concern about using pesticides either done by themselves or
by professionals was harming something other than the pest. Krazy Cutters is minimizing this concern by using
the best equipment, training their employees monthly to make sure that the annoying pests are the ones that are
getting the pesticides not other things.
40% percent of those surveyed said that they have just purchased Krazy Cutters on a yearly or a just once basis.
40% also percent selected that they purchase it Krazy Cutters current services at a weekly rate.
90 % percent said that on a rating scale from one to five (one being not pleased; five being extremely pleased)
they would rate their experience with Krazy Cutters a five.
100% percent of clients of Krazy Cutters said they would purchase a service from Krazy Cutters again.
100% percent of customers who purchased a service from Krazy Cutters said they would recommend it to family
and friends.
Business Proposal
Mission Statement: Krazy Cutters Lawn Cares mission is to please every customer by providing meticulous service in a
professional and timely manner. Striving to set the standard of excellence in our lawn care services. We dedicate our
services to our customers who deserve honest, hardworking care of their lawn.
Key Planning Assumptions: In the cities of Summit County, there are high numbers of households that Krazy Cutters
can expand its business to. Krazy Cutters is currently only servicing 50 households of the 4,656 households available to
service in Summit County. By expanding Krazy Cutters into spraying-services it allows more households to have the
option of having a professional, hometown service provided to them. From the chart below, we see the cities of Summit
County are also in good standing to be able to purchase spraying service based upon the median income per household. As
a business we have debated the option of shifting to other counties, but the key planning assumptions and research have
showed us that we have an exceptional amount of business potential in Summit County; mainly the Coalville area.
Servicing this community will save money on fuel and other traveling expenses.
Target Market Population Households Median Income
(Number) (Household)
Coalville 1,404 589 $54,971
Kamas 1,921 602 $46,250
Park City 7,962 3,164 $81,548
Henefer 814 301 $52,708
Short and Long Term Goals: These goals will be accomplished through assertive marketing techniques and improved
promotion.
Long Term Goals:
Produce the same amount of revenue in the spraying business as is being produced in the lawn mowing business
by 2020.
Double product sales and net profit in 2016 by introducing new spraying service,
Continue to expand Krazy Cutters spraying service clients at an average rate of 25% per year through 2019.
Price: Krazy Cutters is a unique service based company that provides the client with custom options. Since each yard and
each client has specific needs it is hard to list prices for all services. The chart below shows the basic cost for the most
common type of service. You can see that prices start well below that of the major competition and there is no travel or
mileage fees, all fees are included in the price of the service. To make things easier for clients if spraying services cover
the entire yard the rate to mow would be equivalent. For example a 6000 square foot yard will cost $30 to mow or $30 to
spray.
Lawn Size Cost to Customer Cost to Krazy Cutters Name of service
6,000 square ft. (15 min.) $30.00 20%-chemical 20%-workers Broad-Leaf Herbicide
8,000 square ft. (20 min.) $40.00 20%-chemical 20%-workers Broad-Leaf Herbicide
10,000 square ft. (25 min.) $50.00 20%-chemical 20%-workers Broad-Leaf Herbicide
Place: One of the greatest advantages of this business is that Krazy Cutters is located in the county seat of Summit
County. All customers are within a 20 minutes drive or 20 to 30 miles. This close distance is what allows there to be no
cost of mileage in addition to the service provided. In addition, Krazy Cutters is located directly off the 1-80 Interstate,
making traveling more convenient, and taking away the cost of added travel from the customers. Since this is a business
providing a service the location of the head quarters is not near as important as it would be for a tangible product or
storefront.
Promotion: Based on primary research develop a customized easy-to-use website. This is an easy and convenient step in
being able to reach the target market of 18 to 35 year olds. Website to launch immediately.
Design and mail out postcards in a campaign to local homeowners within the Summit County Area to increase
brand awareness. Mailer campaign to start 2nd week of May for 2015 and in future years start the first week of
April.
Post eye-catching flyers in all major businesses that local homeowners consistently attend. These flyers would be
placed during spring months, as this is the most critical time for spraying to take place. For 2015, 100 flyers will
be made and distributed at $0.52 per flyer.
Place vinyl lettering on all trucks and trailers used by Krazy Cutters to increase the public view of the brand. 24
vinyl logo will cost $32.00 each. 10 vinyl logos will be ordered and placed on vehicles by June 1.
Start a Krazy Cutters Instagram account, aiding in gaining a younger target audience. In being a tech-savvy
generation, new homeowners will be greatly affected by having access to a social media account, which will
advertise special promotions to followers of the Instagram page (free).
Purchase t-shirts with logo on for all employees to wear as a uniform. Each uniform will feature the Krazy
Kutters logo. Long sleeve t-shirt for spraying will cost $16. Short sleeve shirts for summer mowing will be $13.
Hoodies will be $20. Eight of each will be needed.
Position: Since the target market for Krazy Cutters spraying-services are local homeowners; Krazy Cutters will position
itself as a professional, affordable spraying servicing business. We will position ourselves to customers as the boy next
door business that is always willing to adhere to the customers needs and know them personally. We will strive to make
sure that we will always have a good reputation that positively influences our community to trust and purchase Krazy
Cutters services.
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Projected Budget: The chart below is showing the income and expense statement for 2014 broken into 4 quarters. We
are predicting a 40% increase in gross income when using the marketing plan as outline. 40% increase is double the
current increase use of services. Without any marketing Krazy Cutters on average has been increasing at a rate of 20%.
We believe our marketing plan will double this in the few years and level off to an acceptable level of maintenance.
2014 Quarterly Financial Statement
Income Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Gross Income $0 $30,000 $35,000 $10,000 $75,000
Expenses
Employee Perks $0 $750 $750 $500 $2,000
Supplies $0 $2,000 $1,500 $500 $4,000
Utilities for Office $400 $400 $400 $400 $1,600
Office Supplies $300 $200 $200 $100 $800
Labor $0 $7,500 $10,000 $2,500 $20,000
Equipment Liability $600
Workmans Comp $400
Fuel $0 $3,000 $4,000 $1,000 $8,000
Advertising
Mailers and Postage $0 $0 $0 $0 $259
Social Media/T-shirts $0 $0 $0 $0 $392
Website & Promotions $0 $0 $0 $0 $200
Flyers $0 $0 $0 $0 $52
Total Advertising $0 $0 $0 $0 $903
Total Expenses $700 $13,850 $16,850 $5,000 $36,400
Return on Investment -100% 116% 107% 100% 106%
NET PROFIT $-700 $16,150 $18,150 $5,000 $38,600
We admire Krazy Cutters for their ambitious decision of hiring a marketing team. We are confident that implementing
these marketing strategies and evaluations will result in higher net-profit, increased list of clientele, and lowered risks
within your lucrative business. Thank you for this opportunity, we hope to work with you again as your business
continues to grow and diversify.
Resources
Exclusive: Facebook to charge merchants to run offers. (2012, September 20). Retrieved April 15, 2015
Cost of Newspaper, Radio, Television Ad; Local Marketing Ideas. (n.d.). Retrieved April 15, 2015.
Residential Pest Control: Bugs, Rodents and Birds Be Gone. (n.d.). Retrieved April 15, 2015 Web Site:
http://senske.com/pest-control/
Aspelin, A. L., A. H. Grube, & V. Kibler, 1991. Pesticide industry sales and usage: 1989 market estimates. EPA
Economic Analysis Branch, Washington, DC Whitmore
R. W., J. E. Kelly, & P. L. Reading, 1992. National home and garden pesticide use survey final report. Research Triangle
Institute, Research Triangle Park, NC
Creason, J. R. & C. F. Runge, 1992. Use of lawn chemicals in the Twin Cities. Public Report Series #7, Water Resources
Research Center, University of Minnesota
Delaplane, K (1996, March). Pesticide Usage in the United States: History, Benefits, Risks, and Trends. retrieved April 15
2015, from North Carolina State Agricultural Department: Pesticide Usage Web Site:
http://ipm.ncsu.edu/safety/factsheets/pestuse.pdf