Laundry Services Case Study

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1. Consumer’s Income – It is considered as one of those factors that could affect the market because for Drop and Go Laundry Services, it is about the consumer’s purchasing power or capability to attain such services we offer. The higher the income, the more possibility that they will frequently avail DnG’s services.
2. Price of the Product - This factor is so important to be considered in the projection of demand because as the law of demand states: “As the price of the product increases, the demand for the product will decrease and vice versa.” Generally, people are price-conscious; they want services with low prices but with high quality or those that will surely satisfy their needs. For instance, if the prices of services increase, there …show more content…

Competition – This factor is also considered because Drop and Go Laundry Services is only new to the laundry industry and to the business world unlike to those well established businesses that as of today have already many branches. So in order to have a good fight with them, Drop and Go Laundry Services will not only compete with their existing laundry service prices but will also focus on the customer service aspect of the business. As we all know if a business can meet and satisfy customer’s expectation it can produces satisfied customers which in return will be repeated or loyal customers of the business.
4. Population - It is the number of people in a specific area at a given time. It is a factor because it is the basis in computing the demand for a product. It is an independent variable since demand is dependent on this factor.
5. Age - It is considered as one of the factors affecting our market because most of the people under the age 18 do not belong to the scope that avail laundry services because most of them have their mother or yaya that made their …show more content…

They are considered as such given that they market or render the same service as DnG does. These laundry service providers are all located within Cavite City. The current providers of laundry services same with DnG are Launderland, BLVD Laundry and Dry Cleaning, IR Buandirie Laundry Shop, Piddy Laundry Shop, Royal Clean Laundry Shop, White and Clean Laundry Shop Company, Call Me Lavada Laundry Shop and Sit and Spin. The business considers BLVD Laundry and Dry Cleaning as its major competitor because of being well-known and established.
Similar with demand, the proponents looked for the annual domestic supply of laundry offered by local providers. This can be used as a starting point for DnG’s production or supply.
In the absence of dependable data on historical supply variables, the proponents solicited the average annual sales of each competitor surveyed, equate their sum in terms of the total to assess the supply picture for the target market area. It is projected that 60% of potential customers’ laundry requirements are serviced. Supply is expected to grow by 3.6% every year, the average projection of the growth in the supply volume by existing competitor, BLVD Laundry and Dry Cleaning.
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