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.
Cluster Project 3 report on MPW Industrial Cleaning Services
1. Team 1H, LLC Aaron Dillon Rachel James Kris Jones Gordon Thomas Steve Thozeski Clients Shane DeFazio Jim Neville Zach Porter
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3. 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)
17. 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 11 Marketing Recommendations Trade Shows MPW Analysis Analysis Industry Analysis The Problem Direct Marketing ISSA Construction And Mining Expansion Recommendations Safety Consultation Colleges
18. 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 12 Marketing Recommendations Trade Shows MPW Analysis Analysis Industry Analysis The Problem Direct Marketing ISSA Construction And Mining Expansion Recommendations Safety Consultation Colleges
19. UPCOMING TRADE SHOWS Buildings NY, 2009 June 16-17, 2009 Venue: 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 America June 6-9, 2009 Venue: McCormick Place Organizers : ISSA Telephone +1 (847) 982-0800 Fax +1 (847) 982-1012 (ISSA.com, 2009) ISSA INTERCLEAN LATIN AMERICA 2010 March 2010 Venue: Centro Banamex Telephone +52 (55) 5268 2000 Fax +52 (55) 5268 2004 Organizers : 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 13 Marketing Recommendations Trade Shows MPW Analysis Analysis Industry Analysis The Problem Direct Marketing ISSA Construction And Mining Expansion Recommendations Safety Consultation Colleges
22. 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 15 Construction And Mining Expansion Recommendations (Caterpillar Worldwide Locations, 2009) ( Worldwide North America, 2009) (Komatsu in North America, 2009) MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Safety Consultation Colleges
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28. 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 20 th century . A major problem faced by the University of Georgia was preserving the fragile foundations and surroundings of these old facilities. 21 UGA’s Payne Hall, part of $57 million project Image: Google.com Ohio Enrollment and Retention (Ohio Board of Regents, 2008) Recommendation: University Renovations and Construction Expansion Recommendations Colleges (Quigley, 2006) MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Construction And Mining Safety Consultation
29. 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. Expansion Recommendations Colleges Recommendation: University Renovations and Construction 22 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 MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Construction And Mining Safety Consultation
30. 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 Expansion Recommendations Colleges Recommendation: University Renovations and Construction 23 MPW Analysis Analysis Industry Analysis The Problem Direct Marketing Marketing Recommendations ISSA Trade Shows Construction And Mining Safety Consultation
35. 27 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