Cluster Project 3 report on MPW Industrial Cleaning Services

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Team 1H, LLC Aaron Dillon Rachel James Kris Jones Gordon Thomas Steve Thozeski Clients Shane DeFazio Jim Neville Zach Porter

description

This is the final draft for my group’s report on MPW Industrial Cleaning Services for Ohio University\’s Business Cluster Program. This project is about how our group can improve MPW’s marketing and find new areas of growth.

Transcript of Cluster Project 3 report on MPW Industrial Cleaning Services

Page 1: Cluster Project 3 report on MPW Industrial Cleaning Services

Team 1H, LLC

Aaron DillonRachel James

Kris JonesGordon ThomasSteve Thozeski

Clients

Shane DeFazioJim NevilleZach Porter

Page 2: Cluster Project 3 report on MPW Industrial Cleaning Services

Executive Summary

MPW Industrial Services is an industrial cleaning company that provides high-strength cleaning services, while keeping it’s safety regulations well above their competitors. Working as consultants of MPW, our main focus was to suggest recommendations to diversify their client base, which would significantly increase their sales and profits. To accomplish this, our recommendations are targeted toward penetrating other markets and finding other ways to market their company.

In order for MPW to remain a top competitor in the industrial cleaning industry, it is important to target other markets and revamp their marketing schemes. We have provided a brief analysis of the industrial cleaning industry and MPW’s current state, as well as recommendations that will benefit the company in the future.

MPW’s largest contributing industry has taken a large hit, therefore they need to seek out other industries to infiltrate.

• Considering the growth of the heavy duty equipment industry, providing paint shop management will lead to new opportunities and additional revenue.

• Since universities want the highest quality buildings, MPW must look into facility renovation management, both pre- and post-construction.

• MPW’s standards of safety are extremely high, so we recommend that they merge with safety consulting companies to increase their networking.

MPW relies heavily on word-of mouth-advertising, we recommend that they target specific markets to advertise toward.

• Developing a brochure for a specified target market will make the audience feel as if they need MPW’s services.

• An ISSA membership is an easy way to network with companies within a market that MPW is already familiar with.

• Trade shows are an easy way to market to an already categorized target market.

If implemented correctly, these recommendations will help MPW find alternative solutions for revenues.

Page 3: Cluster Project 3 report on MPW Industrial Cleaning Services

MPW’s Core Purpose and Mission Statement

“MPW partners with customers to enhance operational efficiencies, improve reliability and minimize costs in providing integrated technology-based Industrial Cleaning, Facility Management, Water Purification and Container Management in North America.”

Our Team Core Purpose

“The purpose of our team is to analyze MPW Industrial Services and the current industry climate to assist MPW in successfully adapting their company to be more profitable in the Industrial Cleaning industry.”

(MPW Industrial Services, 2009)

Page 4: Cluster Project 3 report on MPW Industrial Cleaning Services

Table of Contents

Page 5: Cluster Project 3 report on MPW Industrial Cleaning Services

AnalysisCompany&Industry

Page 6: Cluster Project 3 report on MPW Industrial Cleaning Services

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MPW Company Analysis

MPWAnalysi

s

MPWAnalysi

s

AnalysisAnalysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

Expansion Recommendations

SafetyConsultatio

n

Colleges

Threats

•Competition from larger companies.

• Failing economy.

•Large corporations outsourcing to other countries.

•Companies using their own cleaning teams to save money.

Areas of Improvement

•Stronger marketing strategy.

•Access to top level management to market to.

Opportunities

•Expansion into new industries.

•Development of network between future customers.

Strengths of MPW

•Strong safety regulations and procedures.

•Innovative equipment for on-site operations.

•Company owned engineering team.

Through detailed analysis of MPW Industrial Services, we were able to identify the company’s strengths, as well as specific areas that need improvement. These strengths and weaknesses were used as the foundation for our recommendations and are further outlined on the next page.

Page 7: Cluster Project 3 report on MPW Industrial Cleaning Services

MPW’s Strengths and Opportunities

•MPW is a leader in safety for their industry. Their safety regulations are top notch on every job-site . MPW has held an average three year EMR rating of well below 1.00. (MPWservices.com).

•MPW has the ability to create innovative and specialized equipment for its operations. This ability gives MPW flexibility in dealing with on-site problems.

•MPW has a company owned engineering team on each job-site, which greatly cuts operating costs.

• Throughout our recommendations, MPW has opportunities to increase both networking and marketing.

Threats and Weaknesses of MPW

•It is difficult for MPW to penetrate other markets, such as government contracts and aeronautics because of competition with large companies currently in the market.

•The economy has negatively affected many of MPW’s markets, including their largest industry, automobile manufacturing.

•Companies are outsourcing factories to other countries to save on labor costs. Therefore, MPW is unable to reach these foreign plants, leading to a decline in potential customers.

•It is increasingly common for companies to develop their own cleaning crews instead of hiring companies, such as MPW.

•MPW has a relatively weak marketing strategy.

MPWservices.com

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MPWservices.com

MPW Analysis, Continued

MPWAnalysi

s

MPWAnalysi

s

AnalysisAnalysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

Expansion Recommendations

SafetyConsultatio

n

Colleges

Page 8: Cluster Project 3 report on MPW Industrial Cleaning Services

Industrial Cleaning Industry Analysis

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MPWAnalysi

s

AnalysisAnalysis

Industry

Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

Expansion Recommendations

SafetyConsultatio

n

Colleges

• Companies, like MPW, are highly invested in one industry, some of which have been failing due to the struggling economy.

• As many companies look to cut costs, one of the first expenses they look to minimize is their cleaning expense.

• Many companies provide their own facilities management.

• Most companies already have a facilities management team under contract.

Pros Cons

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MPW has seen a recent

decline in revenues due to the

struggling automotive industry.

They have been forced to search for

alternative industries to penetrate.

The current marketing scheme is leaving MPW with

missed opportunities for growth.

Source: IBIS World

Auto Body, Paint, and Glass Repair Revenue Growth

The Problem

MPWAnalysi

s

AnalysisAnalysis

Industry

Analysis

TheProblem

TheProblem

DirectMarketing

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

Expansion Recommendations

SafetyConsultatio

n

Colleges

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RecommendationsMarketing

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MPW’s current marketing strategies rely heavily on customers contacting them.

Solution:Using basic marketing concepts, we

recommend that MPW attempts a more pro-active approach.

Direct Marketing ISSA Trade Shows

The goal of developing a new marketing strategy is to successfully penetrate new markets, while still appealing to their existing industries.

Recommendation: Marketing

Problem:

Strategies

MPWAnalysi

s

Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

Expansion Recommendations

SafetyConsultatio

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Colleges

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• We recommend that MPW sends out a brochure to specific companies within their new industries.

Advantages:•More personal and informative than a mass marketing letter or coupon.

•Cost-effective way to enter new markets.

•Levels the playing field between large and small companies.

Disadvantages:•The time it takes to develop a specific brochure.•Not meeting in person seems less personal.•The total implementation costs are estimated to be $475.00.

Recommendation: Direct Marketing

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MPWAnalysi

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Analysis

Industry

Analysis

TheProblem

DirectMarketing

DirectMarketing

Marketing Recommendations

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

Expansion Recommendations

SafetyConsultatio

n

Colleges

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Brochure vs. Direct Selling

• The only cost of the brochure is actually the publishing and postage.

• The total estimated cost for one brochure is around $15.00.

• Estimated travel costs would be $195.80.

• Estimated food costs are around $50.00.

• One night at the OU Inn is about $115.00.

• Salesman’s salary is an estimated $1,000 per week.

• The total cost of a trip by a salesman that can be stated through a brochure is $760.80. See Appendix A

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Marketing Brochure Benchmarked against Direct Selling

MPWAnalysi

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Analysis

Industry

Analysis

TheProblem

DirectMarketing

DirectMarketing

Marketing Recommendations

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

Expansion Recommendations

SafetyConsultatio

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Colleges

Bottom line: Although there are low response rates to brochures, if they encourage one sale than the marketing scheme is successful. The large amount money saved by producing

brochures is an advantage, which is why it is worth the risk.

While benchmarking one brochure against one direct selling trip, we estimate MPW will save $745.80

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Page 14: Cluster Project 3 report on MPW Industrial Cleaning Services

The ISSA, or the International Sanitary Supplies Association, is a

global network of over 5,800

building service contractors, in-house service providers,

distributors, and manufacturing companies.

It provides members with trade show information,

resources, safety information, and other

news related to commercial cleaning services.

A one time fee of $300 is all that is required for a lifetime

membership.

Benefits of Membership

1.The ISSA/INTERCLEAN is the world’s largest organizer of trade shows dedicated strictly to the cleaning industry.

2.Networking capabilities with 5,800+ members.

3.Major discounts for “green” companies.

4.Access to industry publications such as ISSA Today and other e-zines, periodicals, and newsletters.

5.Legislative and regulatory news and information library.

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MPW needs to find a way to get its marketing to top level executives in order to get cleaning contracts.

Google.com

Recommendation: Membership to ISSA

MPWAnalysi

s

Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

Marketing Recommendations

ISSA

ISSA

TradeShows

ConstructionAnd Mining

Expansion Recommendations

SafetyConsultatio

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Colleges

(ISSA.com, 2009)

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Cost- Benefit Analysis for Joining the ISSA

Recommendation: Membership to ISSA ,Continued

Benefits Costs

• Great networking opportunity.

• Chance to promote MPW’s products to a large variety of potential customers.

• Chance to see what competition in the same industry is doing compared to MPW.

• Potential to make contracts with companies that are present at the trade show.

• Initial $ 300 fee to join and become a lifetime

member.

• Trade show fees.• $1,000 – The cost of the event (seminars, reception, food—the package).• $ 900 – Convention hotel with taxes and tips ($300/night x 3).• $ 800 – Airfare and local transportation .• $ 300 – Miscellaneous .• $1,000 – One week’s salary for the attendee.

•Cost of brochures and handouts. Estimated $200.

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MPWAnalysi

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Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

Marketing Recommendations

ISSA

ISSA

TradeShows

ConstructionAnd Mining

Expansion Recommendations

SafetyConsultatio

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Colleges

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Trade Shows• A quick and inexpensive way to promote MPW is to go to trade shows sponsored by the ISSA. MPW will be able to promote itself through multiple shows in major markets and other channels.

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Network with Mid-Level Management

•Trade shows offer a great opportunity to network with mid-level management and representatives of potential customers.•Not only can you network with customers through ISSA, you can develop a working relationship with other companies in similar fields, creating a strategic support group.

ISSA as a Gateway After establishing a rapport with management from patron

companies MPW will no longer rely on the ISSA. MPW’s representatives must make it a priority to ascend the networks of these companies and develop a working relationship with top level

executives.

Google.com

Recommendation: Membership to ISSA ,Continued

MPWAnalysi

s

Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

Marketing Recommendations

ISSA

ISSA

TradeShows

ConstructionAnd Mining

Expansion Recommendations

SafetyConsultatio

n

Colleges

Bottom Line: By joining the ISSA, MPW can increase their brand within the industry opening the doors for new business ventures and customers.

Page 17: Cluster Project 3 report on MPW Industrial Cleaning Services

Why Go Back To Trade Shows?The Answer is ….

The one thing that hasn’t changed in the business world is the fact that people buy from people. Trade shows, conventions, conferences and other events bring together buyers with goals and needs, and sellers with products and services. This type of face-to-face contact is more important than ever in today’s business environment, where most products and services are commonly perceived as commodities. For many attendees, a trade show or event is the only time they will have a face-to-face contact with a vendor in the next 12 months. (O'Conor, J., 2008) Trade shows are one of the most efficient and

effective ways to interact and engage with qualified prospects and vendors all in one location. After a quick conversation, demonstration, or presentation, the buyer leaves the exhibit with an impression of the seller’s company, its capabilities and competitive advantage—all influencing his or her buying decisions. And for the exhibitor, he or she can meet with

6-8 qualified prospects an hour while working the show floor. (Editor, 2007)

Over three days, one exhibitor can potentially meet face-to-face with an average of 125 pre-qualified leads. It would take months of phone prospecting and meetings to achieve these results back in the office. Not only does the marketing department benefit, but the sales department is also a huge benefactor. (Editor, 2007)

Google.com

Recommendation: Trade Shows

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MPWAnalysi

s

Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

Marketing Recommendations

ISSA

TradeShowsTradeShows

ConstructionAnd Mining

Expansion Recommendations

SafetyConsultatio

n

Colleges

Page 18: Cluster Project 3 report on MPW Industrial Cleaning Services

Ways to be Successful at Trade Shows

The key to success in trade shows and events, as with any sales or marketing plan, starts with clear, measurable goals and focused objectives. They must be timely, meaningful and quantifiable, so they can be measured. Your team must understand why you are exhibiting, who your target audience is, what central message you want to convey, and what you want to take away from the show. (O'Conor, J., 2008)

Define the skills needed in the booth before staffing it. Assess the duties and all of the time required, not just the show hours. Also, have a decision-maker in the booth at all times.

Interview applicants for the job who are attending the event. At a trade show, the staff represents the entire company.

Make sure display is clear and accurate in your booth so your client can easily identify your company and what your company is selling.

Focused and creative approach to attracting attendees to make sure your booth is visited during the trade show. (O'Conor, J., 2008)

Google.com

Google.com

Recommendation: Trade Shows, Continued

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MPWAnalysi

s

Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

Marketing Recommendations

ISSA

TradeShowsTradeShows

ConstructionAnd Mining

Expansion Recommendations

SafetyConsultatio

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Colleges

Page 19: Cluster Project 3 report on MPW Industrial Cleaning Services

UPCOMING TRADE SHOWSBuildings NY, 2009

June 16-17, 2009Venue: Jacob K. Javits Convention Center Organizers: Reed Exhibitions

Companies Telephone +44 20 8271 2134

Fax +44 20 8910 7823 (ISSA.com, 2009)

ISSA/ Interclean North AmericaJune 6-9, 2009

Venue: McCormick PlaceOrganizers : ISSA

Telephone +1 (847) 982-0800 Fax +1 (847) 982-1012

(ISSA.com, 2009)

ISSA INTERCLEAN LATIN AMERICA 2010

March 2010Venue: Centro Banamex

 Telephone +52 (55) 5268 2000 Fax +52 (55) 5268 2004Organizers : ISSA

Telephone +1 (847) 982-0800 Fax +1 (847) 982-1012

(ISSA.com, 2009)Since Large corporations are outsourcing their plants to Mexico for cheaper production cost, MPW loses the opportunity to clean those plants. To adapt to outsourcing, MPW can promote their company in Mexico in order to capitalize on the expanding market.

Recommendation: Trade Shows, Continued

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MPWAnalysi

s

Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

Marketing Recommendations

ISSA

TradeShowsTradeShows

ConstructionAnd Mining

Expansion Recommendations

SafetyConsultatio

n

Colleges

Page 20: Cluster Project 3 report on MPW Industrial Cleaning Services

RecommendationExpansion into New Markets

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Problem:Currently, MPW’s leading industry is declining,

forcing them search for new markets.

Solution:After detailed research, we recommend that MPW penetrates growing markets that are less affected by the struggling

economy.

The goal of new market penetration, is to diversify MPW’s client base making them less dependent on the automotive industry.

Construction Safety Consultation Universities Equipment

Strategies

Expansion into New Markets

MPWAnalysi

s

Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

Expansion RecommendationsExpansion Recommendations

SafetyConsultatio

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Colleges

Page 22: Cluster Project 3 report on MPW Industrial Cleaning Services

The construction and mining equipment division of the company is one of the largest manufacturers of construction, mining, and utility equipment in the world. With the increase in demand for iron ore, this gives the opportunity to extend its products and services to companies operating in this market and benefit from the rising demand for iron ore (Datamonitor, Komatsu, Ltd., 2009).

Manufacturing Plants

Manufacturing Plants

Manufacturing Plants

is one of the leading global manufacturers of agricultural tractors. It has leading positions in hay and forage equipment; and specialty harvesting equipment. In construction equipment, the company holds a leading position in backhoe loaders and skid steer loaders in North America, and crawler excavators in Western Europe (Datamonitor, Global CNH N.V, 2009).

‘s strong market position increases the bargaining leverage of the company and its access to a variety of end markets provides it with increased cross selling opportunities. They have also has made strategic acquisitions in the heavy equipment industry such as joint ventures and expansions (Datamonitor, 2009).

Recommendation: Construction and Mining Equipment

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MPWAnalysi

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Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

ConstructionAnd Mining

Expansion RecommendationsExpansion Recommendations

SafetyConsultatio

n

Colleges

(Caterpillar Worldwide Locations, 2009)

(Worldwide North America, 2009)

(Komatsu in North America, 2009)

Page 23: Cluster Project 3 report on MPW Industrial Cleaning Services

Strengths and Weaknesses

The heavy duty equipment industry will have a sudden decline until

2010The growth rate of the industry will

drop from 7.2 percent to

5.7 percent (Datamonitor, 2009).

This will bring MPW additional revenue. If MPW cleans one time a year in each facility, they will earn and additional

$41,300,000 – $83,000,000

MPW Will be able to utilize their existing equipment. In

2011, the heavy duty equipment industry will

have steadier growth rates. Annual global demand for iron ore is forecasted

to

increase, increasing demand for mining

equipment (Datamonitor, Komatsu, Ltd., 2009).

Name of Company

Number of Facilities

Price of Cleaning

Revenue

5 500,000 – 1,000,000

2,500,000 5,000,000

6 500,000 – 1,000,000

3,000,000 6,000,000

72 500,000 – 1,000,000

36,000,000

72,000,000

Recommendation: Construction and Mining Equipment, Continued

Strengths

Weaknesses

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MPWAnalysi

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Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

ConstructionAnd Mining

Expansion RecommendationsExpansion Recommendations

SafetyConsultatio

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Colleges

Total 83 41,500,000 83,000,000

Page 24: Cluster Project 3 report on MPW Industrial Cleaning Services

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Promote Success in Automobile Industry

•Considering MPW’s success with the automobile industry’s paint shops, this would be a good form of advertising for MPW. Illustrating this to the equipment manufacturing industry will give MPW an advantage.

Relocating to Manufacturing Sites•MPW does not have locations in the following states: Michigan, Illinois, Tennessee, Kentucky, Florida, South Carolina. Although MPW has locations in neighboring states, the possibility of moving to new locations is still there.

Contact C0mpanies•MPW will need to create a working relationship with these manufacturing companies. By using our suggested marketing tactics, such as sending them our brochure, to reach the client and let them know about MPW’s services.

Recommendation: Construction and Mining Equipment, Continued

MPWAnalysi

s

Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

ConstructionAnd Mining

Expansion RecommendationsExpansion Recommendations

SafetyConsultatio

n

Colleges

Bottom Line: By reaching out to the heavy duty equipment manufacturing industry , it will bring MPW additional revenue without the cost of developing new equipment.

Page 25: Cluster Project 3 report on MPW Industrial Cleaning Services

• The top 10 safety consultation companies in 2005 had an average

revenue of $20.4 million. (Hansen, 2007)

• With safety regulations getting stricter and citations getting

increasingly expensive companies are turning to Safety Professionals more than ever.

• Although the economy may be in a recession, companies still have

to keep to the safety standards that are set forth by OSHA. (Occupation Safety and Health Administration, 2009)

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Google.com

We recommend that MPW andSafety Resources Company of

Ohio set up a working relationship

to further increase MPW’s revenue and to branch off into

very profitable area’s.

Recommendation: Safety Consulting

MPWAnalysi

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Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

Expansion RecommendationsExpansion Recommendations

SafetyConsultatio

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SafetyConsultatio

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Colleges

Page 26: Cluster Project 3 report on MPW Industrial Cleaning Services

Safety Resources Company of Ohio

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• Main Office in Canton, Ohio

• Works with MPW clients currently

• Firm foundation in the Safety Industry

"Asking us to overlook a simple safety hazard is like asking us to compromise our entire attitude towards the value of

your life."-Cameron Speck CEO

With a merger or partnership with a well-established safety consultation firm, there will beminimal financial risk for MPW.

Recommendation: Safety Consulting Continued

MPWAnalysi

s

Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

Expansion RecommendationsExpansion Recommendations

SafetyConsultatio

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SafetyConsultatio

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Colleges

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Network with SRCO•Word-of-mouth is one of the best ways for companies to network their business, and a partnership with a well-established company such as SRCO will help that.

SRCO combines with MPW•After establishing a good working relationship with Safety Resources we recommend that MPW looks in to either buying or merging with Safety Resources so that MPW can branch off into the Safety Consultation Industry.

Utilize SRCO Resources

•Safety Resources is a top-notch safety consulting firm that works to stay up to date on the current safety issues, this is important because SRCO will have a staff of up to date employees and safety equipment.

Partnering with SRCO•We recommend that MPW partners with SRCO and network with each other to maximize each companies revenue and to use each others resources to grow each company.

Recommendation: Safety Consulting Continued

MPWAnalysi

s

Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

Expansion RecommendationsExpansion Recommendations

SafetyConsultatio

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SafetyConsultatio

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Colleges

Bottom Line: By implementing a working relationship with Safety Resources, MPW will be able to grow as a company financial and further develop their reputation of

high safety standards.

Page 28: Cluster Project 3 report on MPW Industrial Cleaning Services

Colleges and universities are constantly constructing new facilities and renovating out-of-date ones. Developing long-term relationships with large universities will greatly benefit MPW. Not only will universities have a consistent need for MPW’s services, but universities are one of the few industries not to be greatly affected by the economy. Enrollment continues to increase, calling for more facilities. In 2006, the University of Georgia

began a $57 million building refurbishment plan. The university wanted to renovate and modernize buildings constructed in the early 20th century. A major problem faced by the University of Georgia was preserving the fragile foundations and surroundings of these old facilities.

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UGA’s Payne Hall, part of $57 million projectImage: Google.com

Ohio Enrollment and Retention (Ohio Board of Regents, 2008)

Recommendation: University Renovations and Construction

MPWAnalysi

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Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

Expansion RecommendationsExpansion Recommendations

SafetyConsultatio

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Colleges

Colleges

(Quigley, 2006)

Page 29: Cluster Project 3 report on MPW Industrial Cleaning Services

Ohio alone , has 132 colleges and universities. Eleven of those schools currently have 13,000 or more students, with enrollment increasing annually. Nine of those

eleven colleges were established over 99 years ago. Such old facilities and escalating enrollment requires regular renovations.

Information on 11 Largest Universities in Ohio

School Enrollment Est. Renovation Expenses

University of Akron

25,942 1870

$18,616,217

Bowling Green State

University

18,989 1910

$21,927,532

University of Cincinnati

36,415 1819

$36,842,176

Cleveland State

University

15,664 1964

$15,805,986

Kent State University

34,056 1910

$20,625,487

Miami University

17,161 1809

$17,597,425

Ohio State University

59,091 1870

$83,296,976

Ohio University

20,7437 1804

$24,110,064

University of Toledo

20,775 1872

$19,506,318

Wright State University

15,985 1965

$13,835,280

Youngstown State

University

13,157 1908

$13,749,067

Total Renovation Expenses for 11 Largest Ohio Colleges

$285,912,528

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MPWAnalysi

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Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

Expansion RecommendationsExpansion Recommendations

SafetyConsultatio

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Colleges

Colleges

Recommendation: University Renovations and Construction

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New Ohio University Baker Center, Cost : over $40 million. Image: Google.com

University of Akron’s new football stadium Cost Estimate: over $60 million.

Image: Google.com

MPWAnalysi

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Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

Expansion RecommendationsExpansion Recommendations

SafetyConsultatio

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Colleges

Colleges

Recommendation: University Renovations and Construction

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Benefits of University AffiliationShort -Term

•High demand for MPW cleaning due to competitive advantage in non-invasive technologies.

•Multiple million dollar projects will be immediately acquired within relatively close proximity to MPW locations.

•Due to a high volume of colleges per state, MPW can be selective about which universities they affiliate with.

Costs of University Affiliation

•Development of marketing campaign directed at universities.

•Implementation and allocation of resources and equipment to on-site locations.

Long -Term

•Long-term relationships with universities will provide consistent work for years to come.

•Satisfactory jobs on main campuses may lead to additional side jobs at university branches.

Google.com

MPWAnalysi

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Analysis

Industry

Analysis

TheProblem

DirectMarketing

Marketing Recommendations

ISSA

TradeShows

ConstructionAnd Mining

Expansion RecommendationsExpansion Recommendations

SafetyConsultatio

n

Colleges

Colleges

Recommendation: University Renovations and Construction

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Bottom Line: With constant college construction and renovation, MPW can capitalize on the need for deep cleanings in order to incrementally increase their revenue .

Page 32: Cluster Project 3 report on MPW Industrial Cleaning Services

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Conclusion

Through strenuous research our team, Team 1H, has come up with recommendations that will be helpful in assisting MPW Industrial Services grow not only financially, but as a company. After evaluating many different options and strategies that could benefit MPW, we have developed a compilation of recommendations that will be most valuable to MPW:

Marketing•Direct Marketing•ISSA•Trade Shows

New Market Expansion•Construction and Mining Equipment• Safety Consultation•University Renovation and Construction

With the marketing aspect of our recommendations we have concluded that MPW will be able to increase networking with both potential clients and similar companies. An ISSA membership will allow easy networking capabilities and a link to trade shows in major markets. The market expansion segment of our recommendations will assist MPW in expanding their business in markets that are profitable and have a steady future outlook. MPW is already highly competent and respected within the safety of the industry. Using this knowledge , MPW can develop a mutually profitable working relationship with SRCO. MPW can also use their skills to expand into the deep cleaning of construction and mining equipment, and the cleaning associated with college construction and renovations. MPW’s competitive advantages will make them a highly sought after commodity within these industries.

MPW’s competitive advantages combined with its vast knowledge of the industry puts the company in a phenomenal position to expand their organization for years to come. The recommendations provided in this report will not only help MPW maintain their status as a top provider of industrial cleaning, but will propel the company into future growth.

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Appendix A

Figuring the costs of direct sales and the brochure

Travel costs: (miles traveled/MPG)(avg. gas price)+miles(standard miles rate surcharge) (169.5/25)(1.94)+169.5(.50)=195.80 Salesman salary: (avg. weekly salary/5)=(_____)(number of days worked) (1000/5)=(200)(2)=400 Food expenses: (Meal cost)(expected amount of meals) (10)(5)=50 Hotel costs: 1 night at OU Inn=115 Total direct sales cost= 195.80+400+50+115=760.80 Brochure: (estimated cost per brochure)(number of brochures)+(cost of

brochure designer) (15)(15)+250=475

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Appendix B