Cl

eani
ngSer
vic
eMar
ket
ingPl
an
Mot
her
’sHous
eCl
eani
ngSer
vic
e

Thisisacompleteexampl
eofamar ket
ingpl
an.Youarewelcometouset
his
contentasaguidewhenplanni
ngyourownmar ket
ingact
ivi
ti
es.

Tocreat
eamar ket
ingpl
anofyourowntogr
owyourbusi
ness,pl
ease
consi
derourpopularMarket
ingPl
anProsof
twar
e.Lear
nmor eat
www.pal
oalt
o.com.

Cr
eat
eamar
ket
ingpl
ant
hatget
sres
ult
s
Bes
tsel
li
ngs
oft
war
e.Now power
edbyDuc
tTapeMar
ket
ing.

“Si
mpli
fi
estheprocessofbui
ldi
ngsupport
ing •F
ocusonac
tionandr
esul
ts!
document
ati
onforyourmarketi
ngagenda.
”
•Pac
kedwi
thadvi
ceandexampl
es
•Eas
yfor
ecas
ts&budget
s
“Cr
eateanact
ionplanforyour •Pr
esentyourpl
anwi
ths
tyl
e
market
ingt
ogrow yourbusiness.
”
•I
nst
antdownl
oad!
Versi
on11.
0
$179.
95
Lear
nmor
eat www.
pal
oal
to.
com

Aboutthismar ket
ingplan
Names,locat
ions,andnumbersint
heorigi
nalpl
anmayhavebeenchanged,andsubst
ant
i
alpor
ti
onsoft
heor
igi
nalpl
ant
extmay
havebeenomi t
tedtopreser
veconf
ident
ial
i
tyandpr
opr
iet
aryi
nfor
mati
on.

Guidelinesonusingthispl an
Youar ewelcometouset hi
splanasast ar
tingpointt
ocreateyourown,butyoudonothavepermissiont
oreproduce,publ
i
sh,
dist
ri
buteorevencopythisplanasi texi
stshere.Requestsforrepr
int
s,academicuse,andot
herdissemi
nati
onofthissampleplan
shouldbeemai l
edtot
hemar ket
ingdepar t
mentofPal oAlt
oSoftwareatmarketi
ng@paloal
to.
com.Forproducti
nfor
mationvi
sitour
websiteatwww.pal
oal
to.com orcall1-800-229-7526.

Copyr
ight©Pal
oAl
toSof
twar
e,I
nc.(
www.
pal
oal
to.
com)
.Al
lri
ght
sreser
ved.
 Confidentiality Agreement

The undersigned reader acknowledges that the information provided by

_________________________ in this marketing plan is confidential; therefore, reader agrees not
to disclose it without the express written permission of _________________________.

It is acknowledged by reader that information to be furnished in this marketing plan is in all

respects confidential in nature, other than information which is in the public domain through other
means and that any disclosure or use of same by reader, may cause serious harm or damage to
________________________.

Upon request, this document is to be immediately returned to _________________________.

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

This is a marketing plan. It does not imply an offering of securities.

 Table Of Contents

1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0 Situation Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

2.1 Market Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
2.1.1 Market Demographics . . . . . . . . . . . . . . . . . . . . .2
2.1.2 Market Needs . . . . . . . . . . . . . . . . . . . . . . . . .3
2.1.3 Market Trends . . . . . . . . . . . . . . . . . . . . . . . .3
2.1.4 Market Growth . . . . . . . . . . . . . . . . . . . . . . . .4
2.2 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
2.2.1 Strengths . . . . . . . . . . . . . . . . . . . . . . . . . .5
2.2.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . .5
2.2.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . .5
2.2.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
2.3 Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
2.4 Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
2.5 Keys to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
2.6 Critical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

3.0 Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

3.1 Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
3.2 Marketing Objectives . . . . . . . . . . . . . . . . . . . . . . . . . .7
3.3 Financial Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . .7
3.4 Target Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
3.5 Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
3.6 Strategy Pyramids . . . . . . . . . . . . . . . . . . . . . . . . . . .8
3.7 Marketing Mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
3.8 Marketing Research . . . . . . . . . . . . . . . . . . . . . . . . . . .9

4.0 Financials, Budgets, and Forecasts . . . . . . . . . . . . . . . . . . . . . . . 9

4.1 Break-even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4.2 Sales Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.3 Expense Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

5.0 Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
5.1 Implementation Milestones . . . . . . . . . . . . . . . . . . . . . . . 14
5.2 Marketing Organization . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.3 Contingency Planning . . . . . . . . . . . . . . . . . . . . . . . . . 15
 Mother's House Cleaning Service

1.0 Executive Summary

Mother's House Cleaning Service (MHCS) is a residential house cleaning service serving upper-class
families in Cleanly, WA. Through generous human capital investments, MHCS will exceed
customer's expectations. Mother's will be addressing the wealthy single-income households and
affluent two-income households. These targeted families are willing to pay a premium for the
service because of the high level of professionalism and trustworthiness that is offered. This target
market will be focused on because of their steady reliance on cleaning services to keep their homes
clean.

Mother's House Cleaning Service will work hard to achieve a large percentage of loyal, repeat
customers who regularly use Mother's, as well as being vocal to their friends about the success
they have had with Mother's.

Mother's House Cleaning Service's projected growth rate is over 100% per year, with profit
margins as a percentage of sales between 16%-18%. MHCS will be a home-based business with
Sarah Tookleen as the sole proprietor. By the end of year one, MHCS will have six additional
employees.

2.0 Situation Analysis

Mother's House Cleaning Service is entering its first year of business as a start-up organization.
Sarah recognizes the imperative need for a comprehensive marketing plan to help ensure
profitability. Mother's offers a comprehensive residential cleaning service that is both professional
and trustworthy.

2.1 Market Summary

Mother's possess good information about the market and knows a great deal about the common
attributes of its most prized customers. Mother's House Cleaning Service will leverage this
information to better understand who is served, their specific needs, and how Mother's can better
communicate with this group.

Page 1
 Mother's House Cleaning Service

Target Markets

Wealthy one-income families

Affluent two-income households
Assorted "well-off" households

Table 2.1: Target Market Forecast

Target Market Forecast

Potential Customers Growth 2002 2003 2004 2005 2006 CAGR
Wealthy one-income families 11% 1,876 2,082 2,311 2,565 2,847 10.99%
Affluent two-income 13% 3,444 3,892 4,398 4,970 5,616 13.00%
households
Assorted "well-off" 6% 2,876 3,049 3,232 3,426 3,632 6.01%
households
Total 10.22% 8,196 9,023 9,941 10,961 12,095 10.22%

2.1.1 Market Demographics

The profile for Mother's House Cleaning Service's customer consists of the following geographic,
demographic, and behavior factors:

Geographics

• The immediate geographic target is the city of Cleanly, a suburb of Seattle with 134,000
people.
• A 25 mile geographic area is in need of Mother's services.
• The total targeted population is approximately 8,196 households.

Demographics

• Households consisting of dual income and affluent single-income families.

• Age range of 32-55.
• Have a household income of at least $125,000.
• Eat meals out at least twice a week.

Behavior Factors

• Need to have the house clean but are unwilling to do it themselves.

• Entertain guests at least twice a month.

Page 2
 Mother's House Cleaning Service

2.1.2 Market Needs

Mother's is providing its customers with a professional, residential house cleaning service, aimed at
the upper echelon of the market. Mother's seeks to fulfill the following benefits that are important
to its customers.

• Professionalism: All employees will be well trained to exude professionalism from all of
their actions and conversations.

• Convenience: Mother's will provide its services in the manner that is most convenient to
the customer, including arranging for visits when the owner is not home.

• Trustworthiness: Many people have legitimate concerns regarding cleaning services in

their home and the possibility of theft and breakage. These concerns have been eliminated
or significantly reduced through a comprehensive screening and training process for
employees. Additionally, Mother's carries insurance designed to cover any loss that the
customer may attribute to the company.

2.1.3 Market Trends

The market trend in house cleaning has shifted from individual service providers to companies.
Years ago, most families had a single housekeeper who was responsible for the cleaning of their
home(s). This individual was often considered a member of the family. Less and less families these
days are serviced by an individual housekeeper. The trend is moving toward having a cleaning
service come into the home weekly.

This market shift has fueled the proliferation of different house cleaning services. There has been a
shift from individuals to companies, as well as a shift from having the same service providers for
five to 10 years to going through many different companies, unsatisfied with their services. This
change in the market has created a receptive environment for a cleaning service provider whose
goal it is to develop long-term relationships with customers.

Market Forecast

14,000

12,000

10,000

8,000 Wealthy one-income families

Affluent two-income households
6,000
Assorted "well-off" households
4,000

2,000

0
2002 2003 2004 2005 2006

Page 3
 Mother's House Cleaning Service

2.1.4 Market Growth

The market for residential house cleaning services has exploded within the last five years. The
industry is now a $323 million dollar industry. The growth rate for this market is forecasted to stay
at 9% for the next four years.

The market is likely to maintain better than average growth due to the lifestyle Americans have
developed within the last five years, working longer and longer hours. The effect of the longer work
week is that people have less time to take care of the personal maintenance responsibilities such
as house cleaning. Instead, people will work and longer hours and pay someone to take care of
other, less important or less desirable responsibilities.

Target Market Growth

15.00%

10.00%

5.00%

0.00%

2.2 SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company, and
describes the opportunities and threats facing Mother's.

Page 4
 Mother's House Cleaning Service

2.2.1 Strengths

• An enthusiastic company with a strong, infectious leader.

• A well designed training program to share and capture intellectual capital for the
organization.
• Dedicated employees.

2.2.2 Weaknesses

• Labor-intensive industry.
• Inherent time lag when building goodwill and trust.
• The difficulty of establishing brand equity as a start-up company.

2.2.3 Opportunities

• A large percentage of the market that is unaware of Mother's.

• Shifts in consumer consumption habits that are moving toward increased utilization of
cleaning services.
• A business model that is easily scalable.

2.2.4 Threats

• Employee turnover.
• The entrance of a serious competitor.

2.3 Competition

• Individuals: There are still some individuals who are housekeepers for either one family or
a couple families. These individuals not only clean, but also take care of errands for the
family, and help raise the children. This type of competitor is a shrinking market segment.
• Franchises or Chains: These are larger companies that have expanded into different
regional markets. These service providers are best described as utilitarian. They get the job
done but are not stellar in any way.
• Independent Cleaning Companies: These companies are similar to Mother's and vary
greatly in quality.

Page 5
 Mother's House Cleaning Service

2.4 Services

Mother's House Cleaning Service will provide a residential house cleaning service for the upper end
of the market. Mother's will have two target customers:

1. The affluent that have a spouse who does not work, and is not inclined to do housework. To
many a maid/house cleaner is a symbol of wealth, and this idea symbolizes this group of
customers.
2. The two-income households whose opportunity costs are too great to spend time cleaning
the house.

MHCS offers house cleaning to these targeted customers. House cleaning ranges from cleaning of
standard rooms such as kitchen, bathrooms, bedrooms, as well as more unusual jobs like small
disasters from children and pets.

2.5 Keys to Success

The keys to success are:

• Professionalism.
• Trustworthiness.
• Quality work.
• Well-chosen and trained employees.

2.6 Critical Issues

Mother's is still in the speculative stages since it is a start-up company just beginning operations.
The critical issue that Mother's faces is to continue to take a modest fiscal approach; expand at a
reasonable rate. Expansion should only occur if there is sufficient demand and the quality of
services is not diminished.

3.0 Marketing Strategy

MHCS' target market was chosen because these customers appreciate a professional, reliable,
trustworthy, and immaculate house cleaning service, and are more than willing to pay for this.
While Cleanly, WA has several different cleaning services, MHCS is the only one that targets the
affluent exclusively. The wealthy are consistent customers. Whether they have a house cleaning
service does not depend on the finances each month. These groups always have the money for our
services, just as they always need/desire a clean house.

The affluent desire quality and are willing to pay a premium for a service that they can trust 100%,
that extrudes professionalism. This is done in a seamless, customer-centric manner.

The company will be marketed through a three-pronged approach. One prong is the distribution of
a color brochure detailing our services. The distribution of this document will be targeted to hit the
chosen segment. This will be done by setting up strategic relationships with organizations or clubs
whose members fit the targeted customer profile. Examples of this would be higher-end athletic
clubs, country clubs, wine connoisseur clubs, etc. Access will be gained to these clubs membership
through deals where the club owners will receive Mother's services for themselves.

The second prong of our approach will be through word-of-mouth referrals. Mother's will offer an
economic incentive (such as a free visit) to customers if they bring in new business. This will be

Page 6
 Mother's House Cleaning Service

effective because the financial incentive will motivate their behavior, and people naturally like to
share good deals with their friends.

The third prong will be an advertising campaign in two of the local newspapers. The
advertisements will appear in the weekly home section of the newspapers.

3.1 Mission

Mother's House Cleaning Service's mission is to provide the customer with all residential cleaning
services in an environmentally sound, completely trustworthy, and professional manner. We exist
to attract and maintain customers. When we adhere to this maxim, everything else will fall into
place. Our services will exceed the expectations of our customers.

3.2 Marketing Objectives

• Increase repeat customers by 7% each quarter.

• Decrease customer acquisition costs by 8% per year.
• Develop brand equity so that Mother's is commonly known as the premier house cleaning
service.

3.3 Financial Objectives

• A double digit growth rate for the next three years.

• Reduce overhead costs by 5% per year.
• Profitability within year one.

3.4 Target Marketing

Mother's House Cleaning Service will be focusing on two upper socio/economic groups. The first is
the affluent where only one spouse works. Although the other spouse is at home and has time to
clean, he/she chooses not to. This spouse would rather volunteer for a public interest organization,
play tennis and golf, or just spend time how he/she chooses to. They have no desire to clean the
house. To them that is not enjoyable and they have the money to pay someone to do that kind of
work. This market has annual incomes over $200,000 and live in expensive houses.

The second segment of the market that is targeted is the two income family. Over the last couple
of decades, the number of two-income households have increased, to a point where in parts of the
country they exceed one income families. The target customer is two income families whose
combined annual income is over $125,000. These families don't have the time to clean, can afford
a cleaning service, and choose to hire a service because the opportunity costs are too high to
waste time cleaning their house. These households are typically age 32-55 and live in houses
valued over $250,000. Cleanly has approximately 10,000 families that fall into this demographic. It
is this segment that has tremendous potential for Mother's. Nearly 80% of dual income households
use an outside cleaning service for some of their house cleaning according to the U.S. Department
of Commerce.

Additionally, there are potential customers that MHCS has labeled as assorted "well-off"
households. These are families that have the money for our services that do not fit neatly into the
two previous categories.

Page 7
 Mother's House Cleaning Service

3.5 Positioning

Mother's will position themselves as a professional, trustworthy, residential house cleaning service.
Mother's will leverage their competitive edge of human capital investments to achieve the desired
positioning.

MHCS begins with a rigorous training program for new employees. At the outset, employees with
be trained on how to clean. Granted everyone has some idea on how to clean, but they will be
shown a methodical way producing a cleaner home more efficiently. Mother's will then be training
employees to work effectively on teams. While there are some households that prefer individual
cleaners instead of a team, Mother's generally works in teams as they are more efficient. Working
efficiently on a team takes training, and through this team training, Mother's is able to make
significant gains in efficiency.

The next topic of training involves professionalism. Employees are given the tools necessary to
impress the most affluent clients. Professionalism is a skill that is used throughout the service call,
from the way the employee greets and interacts with the client, to the way they clean, to the way
they act when they break that priceless vase (which in the inevitable case that something is
broken, MHCS has specific guidelines for the employee to follow to resolve the conflict).

MHCS will train the employees to know what the expectations of the clients are. They will be
provided the tools needed to exceed these expectations.

This extensive training, both up front, as well as continuously (called the continuous learning
system) builds a trust relationship between the company and the client. It is the bond of trust that
will not only earn MHCS the loyalty of that customer but also the referral of several more of their
friends.

Lastly, Mother's will emphasize the use of environmentally sound chemicals. Other companies also
use environmentally sound chemicals so this is not a huge differentiation, but it is something that
Mother's is proud of, and will be mentioned.

MHCS will also be creating the appearance of professionalism through the use of uniforms and
large magnetic sign affixed to the side of the vehicles used.

3.6 Strategy Pyramids

The single objective is to position Mother's at the top of the house cleaning market, commanding a
large market share within four years. The marketing strategy will first seek to create customer
awareness, develop the customer base, and work toward building customer loyalty and referrals.

This message will be communicated through a variety of ways. The first is through printed
materials (a color brochure) that will be widely distributed. The second method is through an
organized word-of-mouth referral system. The last method of communication is through a targeted
advertising campaign in the two local newspapers, specifically within the weekly home section of
the papers.

Page 8
 Mother's House Cleaning Service

3.7 Marketing Mix

Mother's marketing mix is comprised of the following approaches to pricing, distribution,

advertising and promotion, and customer service.

• Pricing: Mother's pricing scheme will be based on the anticipated number of hours per
project.

• Distribution: Services will be provided within a 25 mile area of Cleanly.

• Advertising and Promotion: The most successful activities will be brochures and a
targeted advertisement campaign. These activities will complement a referral system that is
currently in development.

• Customer Service: Mother's recognizes that the secret to success will be exceeding
customer expectations. To achieve this objective, the employees have a fair amount of
discretion to remedy most issues that may come up.

3.8 Marketing Research

During the initial stages of the marketing plan construction, Sarah held several focus groups in
order to determine the market preferences for residential house cleaning. Topics that were
explored in the focus groups were how price sensitive consumers are, what services they valued
the most, how many different cleaning services they have used in the last few years, how often
they employ a service, how did they find out about their past services, etc. The participants for the
focus groups were made up of people from the two different targeted groups. Overall, the focus
groups provide Mother's with a lot of insightful information that would have been difficult or
impossible to obtain using other methods.

4.0 Financials, Budgets, and Forecasts

This section will offer a financial overview of Mother's as it relates to the marketing activities.
Mother's will address break-even analysis, sales forecasts, expense forecasts, and how they link to
the marketing strategy.

Page 9
 Mother's House Cleaning Service

4.1 Break-even Analysis

The break-even analysis indicates that $750 will be needed in monthly revenue to reach the break
even point.

Break-even Analysis

$300

$200

$100

$0

($100)

($200)

($300)
$0 $250 $500 $750 $1,000 $1,250

Monthly break-even point

Break-even point = where line intersects with 0

Table 4.1: Break-even Analysis

Break-even Analysis:
Monthly Units Break-even 30
Monthly Sales Break-even $750

Assumptions:
Average Per-Unit Revenue $25.00
Average Per-Unit Variable Cost $15.00
Estimated Monthly Fixed Cost $300

Page 10
 Mother's House Cleaning Service

4.2 Sales Forecast

The first month will be used to set up the business. It is unlikely much/any business will be officially
transacted during this month. In addition to dealing with legal and accounting issues for the
business, office equipment will be purchased and set up. Once the physical office is ready the
employee policy and procedure manual will be developed. Then the training program will be
constructed. This will take a bit of time therefore it is very important it is set up at the outset,
ensuring that it is completed and done properly when there are far less time constraints.

The second month will begin to see some activity. Mother's will begin to field inquiries over the
phone and expect to turn some of those into contracts. The first week of jobs will be done as a
team, with Sarah and one employee. As the number of contracts begin to pick up, probably at the
end of the second month, an additional person will be hired to form the first employee team. By
the end of month four there will be enough demand that a new team of two will be trained and
begin working. Having two teams of two will be sufficient until month seven when two more people
will be brought on. Mother's expects to remain with a six person head count into mid-year two
when we expect to bring on one more team.

The sales forecast is based on the assumption that increased demand will occur at a steady pace.
This is based on the assumption that a large part of the new clients after month two will be from
word-of-mouth referrals. All this will happen steadily and incrementally. This forecast is on the
conservative side, it is possible that because Mother's is superior to competing services that things
really take off, however, it would not be prudent to take that aggressive of a forecast. It is always
better to error on the side of caution.

Monthly Sales Forecast

$30,000

$25,000

$20,000
Wealthy one-income families
$15,000
Affluent two-income families

$10,000 Assorted well-off households

$5,000

$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Page 11
 Mother's House Cleaning Service

Table 4.2: Sales Forecast

Sales Forecast
Sales 2002 2003 2004
Wealthy one-income families $54,433 $56,433 $57,854
Affluent two-income families $119,487 $119,486 $128,744
Assorted well-off households $30,482 $31,602 $32,398
Total Sales $204,402 $207,521 $218,996

Direct Cost of Sales 2002 2003 2004

Wealthy one-income families $2,722 $2,822 $2,893
Affluent two-income families $5,974 $5,974 $6,437
Assorted well-off households $1,524 $1,580 $1,620
Subtotal Cost of Sales $10,220 $10,376 $10,950

Page 12
 Mother's House Cleaning Service

4.3 Expense Forecast

The marketing expenses will be budgeted so that they are increased during the first quarter in
order to generate visibility for Mother's. The expenses will then lower and remain steady until the
second half of the last quarter when they will be increased in preparation for increase usage of
cleaning service for the winter holidays.

Monthly Expense Budget

$1,400

$1,200

$1,000

$800 Printed material

$600 Economic incentives (for referrals)
Advertising
$400

$200

$0

Table 4.3: Marketing Expense Budget

Marketing Expense Budget 2002 2003 2004

Printed material $600 $1,000 $1,200
Economic incentives (for referrals) $1,200 $1,500 $1,800
Advertising $7,600 $9,000 $11,000
------------ ------------ ------------
Total Sales and Marketing Expenses $9,400 $11,500 $14,000
Percent of Sales 4.60% 5.54% 6.39%
Contribution Margin $184,782 $185,645 $194,046
Contribution Margin / Sales 90.40% 89.46% 88.61%

Page 13
 Mother's House Cleaning Service

5.0 Controls

The purpose of Mother's marketing plan is to serve as a guide for the organization. The following
areas will be monitored to gauge performance:

• Revenue: monthly and annual.

• Expenses: monthly and annual.
• Repeat business.
• Customer satisfaction.

5.1 Implementation Milestones

The following milestones identify the key marketing programs. It is important to accomplish each
one on time and on budget.

Milestones

Completion of marketing strategy

Production of printed material

Generation of new customers from referrals

Advertising campaign #1

Advertising campaign #2

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Table 5.1: Milestones

Milestones Plan
Milestone Start Date End Date Budget Manager Department
Completion of marketing strategy 1/1/02 2/1/02 Sarah
Production of printed material 1/1/02 2/1/02 $600 Sarah
Generation of new customers from referrals 1/1/02 5/15/02 $1,200 Sarah
Advertising campaign #1 1/1/02 6/30/02 $3,800 Sarah
Advertising campaign #2 7/1/02 12/31/02 $3,800 Sarah
Totals $9,400

Page 14
 Mother's House Cleaning Service

5.2 Marketing Organization

Sarah will be primarily responsible for the marketing campaign. Sarah will utilize an outside agency
for the creative work.

5.3 Contingency Planning

Difficulties and Risks

• Problems generating visibility.

• Difficulty maintaining long-term employees.

Worst Case Risks May Include

• Determining that the business cannot support itself.

• Having to close the company due to a lack of sufficient revenue.

Page 15
 Appendix: Mother's House Cleaning Service
Table 4.2 Sales Forecast

Sales Forecast Plan

Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Wealthy one-income families $0 $1,200 $2,245 $2,400 $4,808 $5,100 $5,312 $6,400 $6,454 $6,514 $6,600 $7,400
Affluent two-income families $0 $3,850 $4,445 $4,600 $8,897 $9,258 $10,100 $14,580 $15,000 $15,011 $16,741 $17,005
Assorted well-off households $0 $672 $1,257 $1,344 $2,692 $2,856 $2,975 $3,584 $3,614 $3,648 $3,696 $4,144
Total Sales $0 $5,722 $7,947 $8,344 $16,397 $17,214 $18,387 $24,564 $25,068 $25,173 $27,037 $28,549

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Wealthy one-income families $0 $60 $112 $120 $240 $255 $266 $320 $323 $326 $330 $370
Affluent two-income families $0 $193 $222 $230 $445 $463 $505 $729 $750 $751 $837 $850
Assorted well-off households $0 $34 $63 $67 $135 $143 $149 $179 $181 $182 $185 $207
Subtotal Cost of Sales $0 $286 $397 $417 $820 $861 $919 $1,228 $1,253 $1,259 $1,352 $1,427

Page 1
 Appendix: Mother's House Cleaning Service
Table 4.3 Marketing Expense Budget

Marketing Expense Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Printed material $600 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Economic incentives (for referrals) $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Advertising $700 $700 $700 $700 $500 $500 $500 $500 $700 $700 $700 $700
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Sales and Marketing Expenses $1,400 $800 $800 $800 $600 $600 $600 $600 $800 $800 $800 $800
Percent of Sales 0.00% 13.98% 10.07% 9.59% 3.66% 3.49% 3.26% 2.44% 3.19% 3.18% 2.96% 2.80%
Contribution Margin ($1,400) $4,636 $6,750 $7,127 $14,978 $15,753 $16,867 $22,736 $23,015 $23,114 $24,885 $26,322
Contribution Margin / Sales 0.00% 81.02% 84.93% 85.41% 91.34% 91.51% 91.74% 92.56% 91.81% 91.82% 92.04% 92.20%

Page 2