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Diaper Valet

Group 2

Carly Sikina

Martin Miazga

Natalie Westman Breanna Gouschuk

Kai Lukowiak Mike Beale

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I. Executive Summary

With the wide array of baby diapers in today’s market, Diaper Valet is a compliment to parents

who want to maintain an eco-friendly lifestyle while providing their baby with the healthiest,

chemical free diaper option. Diaper Valet understands the busy work and family lives of urban

professionals therefore, we strive to alleviate stress so they can spend more time with their

loved ones.

While there are other reusable diaper services in Calgary, in addition to environmental

impact, our focus is on the positive effects that the reusable diaper service has on baby’s health.

Our exclusive service of preferred day of delivery along with multiple deliveries per week better

accommodate parent’s busy schedules. Our competitive prices and multiple means of

purchasing in addition to customer benefits make Diaper Valet the premier choice for diaper

delivery services.

As this is a start up business, we rely heavily on event advertising to raise brand

awareness. Our first promotional activity will concentrate on family trade shows such as Calgary

Mom and Tot Show, Calgary Moms Trade Fair, and the Welcoming Baby Expo. Additional

advertising options will include posters at pediatric and obstetricians offices, as well as baby

boutiques throughout Calgary. The service will be sold online, in person and over the phone.

Each location will be given samples of the product along with brochures that state our

company’s values, the delivery and washing processes as well as pricing.

Our future action plan consists of the expansion of delivery options and product line. We

hope to extend our services to other larger cities in Alberta as well as developing our own retail

store that includes a washing location. Future market research for the company consists of

tracking our company’s environmental impact, increasing product knowledge of new fabrics and

to continuously monitor website and social media usage.

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II. Analysis

Microenvironmental Analysis

Positive Negative

Customers People who are or want to be environmentally friendly. Our product is 100% natural and we do not use any harsh chemicals during the cleaning process therefore, it will appeal to parents whose main concern is their child’s health.

Some people will not like the idea of reusing the same diapers and as a result, they will be more inclined to purchase single-use diapers. This service can be expensive therefore, not everyone can afford it.

Publics Environmentally friendly practices can lead to positive media coverage. Citizen-Action groups supporting the product as it is eco-friendly.

General public, some people may find the idea gross and unnecessary. Getting any negative press can have an effect on the entire company.

The Company Maintaining good communication throughout the company as well as excellent customer relations. Having punctual and professional workers can benefit the company.

Finding people who are willing to do the service would be difficult. Hard to communicate with the deliverymen and women on the road.

Competitors Our company offers a high quality service in order to satisfy the needs of our target market. Our product is 100% natural and we do not use any harsh chemicals which other companies may not have considered.

There are already reusable diaper companies that exist in Calgary therefore, it will be tough breaking into the market. Since our competitors provide the same service at the same cost, we must be able to differentiate ourselves to gain market share.

Suppliers Achieving and maintaining good relationships with the suppliers so that we can keep going back throughout the years.

Need high quality fabric which, can be expensive. We need this in order to make the diapers strong enough to be used multiple times.

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Macroenvironmental Analysis:

Positive Negative

Demographics The Canadian population is growing leading to a larger number of potential customers in the target market. Also, with baby boomers aging the more environmentally conscious generations (generation X) will be having children creating the opportunity for an increase in consumers.

The increase in single person households and decrease in number of children per household can severely affect the number of customers.

Natural Environment Environmental awareness is growing with a number of people being concerned with the amount of waste they produce. The desire to minimize impact on the environment can lead parents to choose a more eco-friendly option.

The possibility of severe weather hindering the ability to deliver the diapers on the scheduled day.

Cultural Environment The trend to live a “simple” life is growing with consumers looking to live a life with natural products. People are increasingly health conscious. The diaper clean and delivery service caters to this growing desire.

Disposable diapers are attractive within today’s western culture because of society’s willingness to throw things away.

Economic Environment If people have an increasingly disposable income, they will have more money to spend on normal goods as well as the incentive to have healthier babies.

Economic downturns might cause middle class people to have fewer children to conserve wealth. Cheaper disposable diapers may be more attractive in a recession.

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III. Market Segmentation

Geographic -Calgary, family friendly neighborhoods. -Birth Rate Alberta, Statscan 2013/2014: 56, 582, large portion in Calgary.

Demographic -Ages: 20-40 -Gender: Men and Women -Family Life Cycle: Expectant or New Parents. Nuclear, Single or Mixed Families. -Income: Middle- High -Occupation: Professionals -Generation: Generation X and Y

Psychographic -Thinkers: Our service allows more family time in addition to an environmentally sustainable solution that would appeal to them. It is also an economically sound decision because the opportunity costs of these high earners are elevated enough to justify paying for the service. -Experiencers: They would be the first group to want to test the service because they are always on the lookout for new products. Since they fit our target market’s age group, our service would be one they would be excited to try out. With such a busy lifestyle, our delivery service would be ideal for these people.

Behavioral -Occasions: Birth of a newborn baby. -Benefits: To be environmentally friendly and chemical free. -User Status: First-Time Users -Usage Rate: Heavy -Loyalty Status: Yes

IV. Target Market By the nature of our service, we will cater to environmental friendly single parents or couples

with infants, who are between the ages of 20-40. Our target market will have a middle to high

income and live in urban Calgary. Parents will work in professional environments that demand

much of their time. The environment is a priority for them as well as a desire to limit their baby to

the exposure of harsh chemicals and synthetic materials. They will shop at organic stores and

try to provide the best possible products for their baby. Mothers and fathers will be willing to pay

a premium rate for the diapers, which includes our drop box pickup, and delivery service that

allows collection of diapers without anyone being home because of their other commitments.

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V. Integrated Marketing Mix:

Service Review:

i) Product:

Our diapers use a hemp/cotton blend which keep a baby dry and happy throughout the day.

Hemp’s natural bacterial resistance reduces odor and cottons ultra absorbing qualities draw

moisture away from babies skin and ensures we can keep children away from harmful

chemicals such as Dioxin which are found in disposable diapers and are easily absorbed

through baby’s sensitive skin. Using natural fibers also confirms our commitment to the

environment as both Hemp and Cotton are fast growing natural textiles that are processed

easily with low impact on the environment. Diapers also feature an easy to use snap system

which is adjustable and grows in size as babies do, saving parents money by being able to

reuse diapers for months and not weeks.

ii) Service:

Scheduled weekly drop off and pick ups to customers door offers an easy solution for busy

parents. Customers can choose their preferred day of the week for delivery and pick up either

through our website or calling our office directly.

Used up your supplies before your scheduled delivery? Not too worry, with as little as

24hr notice, Diaper Valet can provide customers delivery of a fresh supply of diapers to their

doorstep.

Diaper Valet will provide customers with large blue storage diaper bins that feature a

lockable lid and charcoal filter to eliminate foul odors in the home. A two-compartment system

ensures that contact with soiled diapers does not happen. Upon closing the sealing latch lid, the

diapers are released into a biodegradable bag that lines the bottom compartment. Once filled,

customers simply place the storage container at their door where our delivery specialists will

replace it with a new one containing the clean supply of diapers to last until the next scheduled

delivery.

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iii) Washing Process:

The diapers will be washed in cold water to reduce energy costs benefiting the environment

along with strategic pressurization to ensure that the diapers are effectively cleaned.

All detergents are made with all natural products and a neutral pH balance to avoid skin

irritations for the baby.

iv) Pricing:

Customers have several close substitutes when it comes to diapers. These range from washing

them themselves, buying disposable ones or simply using another diaper delivery service; our

pricing must be in line with other companies. Because of this, we have to find ways of

differentiate our product. While differentiating our product with a lower price is initially attractive

from a market share point of view, given the level of competition market prices will be close to

the marginal costs of the service. It will also be easier for established companies to match our

price because they don’t have start up costs. This will make any undercutting on price

unprofitable.

While having a customer value based pricing strategy is attractive from a marketing point

of view, there is little room in the market for value differentiation. Because of this, our product

must be priced at $23.97/Week for the base price. To gain more of the consumer surplus, we

will have two starter packs priced at $59.97 and $97.97. These products will offer a base line

package with a bin and white diaper cover. The more expensive option will offer customizable

diaper covers. To increase market segmentation, we will also offer twice weekly pickup for

39.97/week. This will be attractive to customers because they can avoid having many soiled

diapers in their house as well as decreasing our overhead for the number of diapers while only

increasing delivery costs slightly.

Stay away from captive product pricing because there are other companies that offer the

same service but do not partake in this. We won’t use product bundle pricing because the start

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up costs for the consumer and the nature of the product are enough to keep consumers captive

for the duration of their child’s infancy.

v) Place:

The cleaning component of our service will be performed at home in conjunction with laundering

industry standards. The basement of the home will be retrofitted to adequately wash, sanitize,

fold, and package the diapers for delivery.

The service will be sold at women’s and family trade shows such as Calgary Mom and

Tot Show, Calgary Moms Trade Fair, and Welcoming Baby Expo. Other locations will be

pediatric offices, and baby boutique stores throughout Calgary. The service will be sold online,

by phone, or in person at trade shows, and boutiques. Each location will be given samples of

the product along with brochures that state the company’s values, the delivery and washing

processes as well as pricing.

The baby boutiques who host “Diaper Valet Parties” on a quarterly basis and pediatric

offices who promote year round will receive 25$ for each person that signs up.

vi) Promotion:

Value Proposition:

Providing natural, convenient and reusable diapers for health conscience parents by producing

diapers that are safe and chemical free while simultaneously being a superior choice for the

environment. Our exclusive service of preferred day of delivery along with multiple deliveries per

week better accommodate parent’s busy schedules. Competitive prices and multiple means of

purchasing in addition to customer benefits make Diaper Valet the premier choice for diaper

delivery services.

Promotional Pricing:

As an initial promotional price, we will offer one free month of service and a complimentary

startup bundle. This will be less than a 10% discount however, it will be more attractive because

10% doesn’t sound like much but a free month and free starter pack sounds better.

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Advertising Activities:

Event Advertising: Goal Details

“Diaper Valet Parties” To increase brand awareness.

They will occur at each of our locations once every three months. They will consist of demonstrations of the cleaning process, samples of the diapers that we use as well as numerous discounts and promotions for all of the parents who attend the event.

Mom and Tot Conventions To raise brand awareness.

It will be easy for us to advertise and promote the company by passing out pamphlets and demonstrating the product.

Print Advertising: Goal Details

Partner with Local Baby Boutiques

To reach our target market through numerous touch points.

We are planning to partner with two or three local baby stores where we will advertise within the store and in the window displays. The ads will contain QR codes to provide a direct link to our website where our customers can learn and purchase the service.

Pediatric and Obstetricians Offices

To reach our target market through numerous touch points.

We will have print advertisements such as posters and brochures in numerous pediatric and obstetrician offices. The decision was made, as it is a low cost and effective way to communicate our brand to our target demographic.

Diaper Stamps To create incentive for parents to partake in social media.

Each diaper will have the company name “Diaper Valet” along with the Twitter and Instagram handle for customers to post to social media.

Metro Newspaper Reach eco-friendly parents taking public transit.

We will have print advertisements within the paper to reach economically and environmentally conscious parents.

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Out of Home Advertising:

Goal Details

Company Vans Increase brand awareness.

One method of outdoor advertising will include our company’s transportation vans which will display our logo.

Advertisements in the C-Train and Bus

Increase company awareness during the high peaks of childbirth.

We will have advertisements within the C-Trains and buses throughout the months of June to September, as those are the peak months which parents tend to have children.

Online Advertising: Goal Details

Company Website Primarily use online advertising in order to be environmentally friendly.

We are not going to have a store, only an office to receive orders over the phone as well as an online website which will be our primary method of service.

“Mommy Blogs” Promotion of our company.

We are going to use “Mommy Blogs” in order to promote our company weekly and to keep people informed about the services which Diaper Valet is offering to its consumers.

Social Media Important touch point to reach our target market.

Advertise on Facebook and Twitter.

Ad-words To position our company at the top of our consumers minds.

We are also going to effectively create keywords for our website such as “baby” or “diaper” so that we can appear near the top when people are looking for reusable diaper services.

Promotions: Goal Details

Joining the Service By offering this promotion, it can increase our profits because it gives consumers the incentive

Our company is going to offer promotions where, if the consumer signs up for the service, they will a 30-day guarantee if not satisfied with the service.

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to join the service as we are offering them one month of the service and a starter pack at no charge.

Gift Certificates To offer our consumers more options to increase long-term customer loyalty.

Diaper Valet is offering to our customers the option to buy a six-month or yearlong subscription to our service as a gift. This offer can be a great baby shower gift. These gift certificates will be sold at the different baby boutiques or within our online website.

Referrals Increase customer loyalty while bringing in new clients.

Our service is going to offer an incentive program or referrals to our customers. If one of our current clients helps us to bring in new customers, we will give them one month free of service.

Email Promotions Give consumers the incentive to join our service or keep current clients as we continue to give them discounts throughout the time that they use our service.

For certain special events such as Earth Day or Christmas, Diaper Valet will offer our consumers several email promotions.

Social Media Contests (Twitter, Facebook and Instagram)

Keeps our customers engaged in our company and can cause our company to trend which can increase brand awareness.

Diaper Valet will host numerous contests throughout the year through the use of hash tags on social media. Our contests will consist of our clients uploading photos of their babies on Twitter, Facebook or Instagram using #DiaperValet. We will have a contest at the beginning of every month and the themes of the photos will be based on the month of the contest IE) December, cutest Christmas baby or February, Cupid baby.

vii) Sales Tools

Goals Details

Face-to-Face Interaction (Trade Shows, Diaper Parties)

Helps our customers to get involved in our service. Can also increase consumer loyalty.

We will hire people with good interpersonal communication skills and have outgoing representatives at the trade shows. Have people who will demonstrate how the service works and explain the

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cleaning process in effective and persuasive ways.

Public Relations - “Diaper Valet Parties”

These events give our clients an interactive experience which helps them to connect with our brand.

These parties can explain to potential clients how the service operates, demonstrate the cleaning process and give the participants numerous coupons and discounts to persuade them to join the service.

Social Media (Facebook, Instagram and Twitter)

To establish a two-way method of communication between our company and our clients.

We are going to start off by making a post every day although, the more popular our company gets, the more posts we will make in order to keep our customers informed about new promotions, contests and services.

Local Trade Shows This sales tool is extremely beneficial as it helps consumers understand our service through face-to-face interaction. It can also be an effective. persuasive method of selling.

This gives our current and future customers a detailed description of how our service works as well as what chemicals are being used to clean the diapers.

QR Codes To make our website easily accessible to our consumers.

On each of our print advertisements, we will include a QR code that people can scan which will bring them to our company’s website.

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Mock Advertisement

Ad Justification:

Our advertisement is an allusion to the Sistine Chapel which will catch the

interest of our audience and cause people to remember it. The baby is on a pile of

garbage in a landfill, which reminds people of the environmental impact that disposable

diapers have on the planet. The chemicals surrounding the baby show that one-use

diapers are harmful to the child. The mothers white dress, loving look coupled with the

heavenly sky background appeal to parent’s wish to save their child.

In our advertisement, we included the word “elevate” because it is what all

parents want to do for their kids. We also included “gift” as it implies that you are giving

your child benefits by using our service. Additionally, we included “safe” because baby’s

health is our value proposition.

The advertisement has elements of fantasy because it is displaying an unrealistic

situation. It also includes mood or image as the advertisement evokes humour as well

as love and affection. Our advertisement focuses persuasive and informative

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advertising. It is persuasive because it builds brand preference through our focus on

baby health. It is also informative as it communicates the value of a chemical free

childhood to the customer.

Logo:

QR Code for Website:

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Twitter:

Diaper Valet Website:

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viii) Activities Calendar:

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VI. Future Action Business Growth:

● Initial growth would see Diaper Valet expand to a retail store with an attached washing

location.

● Expand our delivery fleet by adding trucks to accommodate demand in Calgary as well

as extend our services to other large cities in Alberta.

● Hiring full time staff in delivery, retail and washing services in order to accommodate the

expansion of our company.

● Expand the product line to toddlers (ages 3-5) training pants to compensate profit in the

event of low birth rates in a specific year. Additionally, to extend the duration which our

customers can use the service.

● Increase brand awareness through the use of a distinct brand section within the baby

boutiques.

Future Market Research:

● Continuously track website usage and comments from clients on social media to

accommodate our customers demands as well as what aspects are good and which can

be improved.

● Tracking our company’s environmental impact in order to give us the competitive

advantage.

● Track the growth rate of expanding communities to concentrate our service on locations

with new and growing families.

● Product knowledge of new fabrics that become available in the market to continue

providing a healthy alternative to disposable diapers.

● Evaluate the effectiveness of the Diaper Valet Parties to decide whether to continue or

discontinue the events.

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Appendix. Resources

Calgary, P. (2015). Pumpkin's Diaper Delivery Home page. Pumpkinsdiaperdelivery.com.

Retrieved 31 March 2015, from http://www.pumpkinsdiaperdelivery.com/

Cloth Diaper Experts,. (2015). Common Materials Used in Cloth Diapers | Diaper Experts.

Retrieved 31 March 2015, from http://www.thenaturalbabyco.com/diaper-experts/common-

materials-used-in-cloth-diapers/

Happynappy.ca,. (2015). Happy Nappy :: Happy Nappy. Retrieved 31 March 2015, from

http://www.happynappy.ca/

Statcan.gc.ca,. (2013). Births and total fertility rate, by province and territory (Fertility rate).

Retrieved 31 March 2015, from http://www.statcan.gc.ca/tables-tableaux/sum-

som/l01/cst01/hlth85b-eng.htm

Walmart.ca,. (2015). Diapers & Training Pants with Free Shipping from Walmart.ca. Retrieved

31 March 2015, from http://www.walmart.ca/en/baby/diapering-potty/diapers-training-pants/N-

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