My Ssec Capstone Project Master in Marketing

Master in Marketing

Master in Marketing & Communications

Academic Year: 2016/2017

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Final project by:
Tsitsi Veronica Kondo

TITLE
Nikal Facility Management

Rome, 6th February 2017

Table of Contents
Marketing Plan Summary 3
The Business 3
The Future 4
The Finances 4
The Business 5
Business overview 8
S.W.O.T. analysis 8
S.W.O.T. activity sheet 9
Products/services 9
Sales/marketing personnel 10
The Future 11
Vision statement 11
Mission statement 11
Goals/objectives 11
The Market 12
Unique selling position 12
Your customers/clients 12
Your competitors 15
Market research 16
Market targets 18
Environmental/industry analysis 19
Marketing strategy 20
Advertising & sales 21
The Finances 27
Price 30
Expected sales 31
Marketing budget 2017 31
Monitoring/measurement activities 31
Supporting documentation 32
Glossary 32
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Marketing Plan Summary

Opportunity Statement:
• Why our business is important? We help large companies function in their day to day activities
• We give them the possibility to focus mainly on their main goal.
Business Concept and Product or Service:
• As a Solutions Provider, our main strength is our complete flexibility and ability to adapt to changing and varied customer needs.
• Nikal FM dedicates extensive time and effort to ensuring the contentment, enthusiasm and voracious team-spirit of all its personnel.
• Nikal FM seek to harness over two decades of experience and expertise to adapt and respond to changing business requirements in facility management, providing confidence and peace-of-mind with a demonstrated and tested ability to deliver reliable, holistic, and customer-tailored facility management services..
Competitive Advantage:
• Nikal FM has been in the business for 25 years and is flexible and adapts to the changing market.
• Certified to ISO 9001 and EN 15838.
Description of the Target Market:
• The main idea behind business-to-business marketing is that the target is always either an organization or a company instead of a private consumer.
• selling services to another company the process is often longer and more complicated than selling to a private consumer.
Essence of Marketing Approach
• We need to do very well in order to win this market: quality service, maintaining good customer relationships
• The key marketing methods used to accomplish sales are sponsorship and referrals
• We should look into partnership as it will help the smooth transition of entering in a new market
The Team:
• Nikal FM has more than 50 employess.
• The decision making is left to the president of the company and managing director.
Financial Highlights:
• Due to a non-existing marketing department, Nikal will have to spend a lot of money to set it up in the first year
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The Future
Vision statement:
To give our customers the best service by creating a good working environment.
Goals/objectives:
Our goal is to work with increasingly high quality standards and structured work processes tailored to the customer. We guarantee high flexibility and professionalism by offering our customers particular attention and transmitting our passion in what we do.
Long term objective is to launch the service in another country to increase sales and bring business to the international level.
The Finances
Our financial business objectives include increasing revenue, increasing profit margins and earning a return on investment.
For the first year we want to set up a marketing department. Our costs for the year are going to be almost 200 000.
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The Business
Business name: Nikal FM
Business structure: Sole trader/partnership
Business location: Frascati, Italy
Date established: 1988
Business owner(s): Valentino Muratori and Family
Relevant owner experience: More than 30 years in the Facility Management sector.
Products/services: Secretarial & administrative support Event organisation Internal/External transport and moves Heavy Gang Reception & Switchboard Helpdesk Gardening Waste management Management Cleaning & Hygiene management.
The Future
Vision statement:
To give our customers the best service by creating a good working environment.
Goals/objectives:
Our goal is to work with increasingly high quality standards and structured work processes tailored to the customer. We guarantee high flexibility and professionalism by offering our customers particular attention and transmitting our passion in what we do.
Long term objective is to launch the service in another country to increase sales and bring business to the international level.
The Market
1. Facility management as the practice of coordinating physical workplace with the people and work of the organization which encompasses various activities such as equipment maintenance, space planning, and portfolio forecasting. Facility management includes various competencies such as emergency preparedness & business continuity, environmental sustainability, human factors, communication, project management, quality, real estate & property management, leadership & strategy, and others. However, the report majorly focuses on technology part of facility management, which includes software and services used to increase efficiency and effectiveness of facility management services.1
The path of technological innovation will not be a ‘substitute’ for the workforce, but complementary to it. In this area we want to make clear its distinction when compared to the other sectors – we will remain a labor intensive sector, because our technological innovations will not eliminate our jobs but will bring new qualifications and higher levels of professionalism to our employees.
A sustainable future for the country must pass through the services sector. A product, a company, a building, a business, an urban plan in order to be energy efficient, renewable with a low environmental impact must not only be designed with these goals in mind, but more importantly must be managed, maintained, and shared, while continuing to respect its green credentials. This means also economically, through the intelligent sharing of technological innovations connected digitally.
Another very promising scenario is related to the enhancement of cultural heritage, where the role of facility management plays a crucial part in the development and management of Italian cultural heritage. Here there is untapped potential – with their expertise facility management companies are best placed to offer a level of strategic support to cultural heritage management services high enough to enable a modern and sustainable development of Italy’s cultural heritage.2

Target market:
Business-to-business marketing is that the target is always either an organisation or a company instead of a private consumer. Nevertheless it should be remembered that even if the actual buyer is a company, the decision to purchase any product or service is made by a person working for the company. selling services to another company is often a long process and complicated than selling to a private consumer. in some cases there are more than one decision makers. during the decision making process the company providing the service is evaluated and compared to other companies.3

The needs and requirements of the customers are often different between private consumers and companies.
Nikal’s main client is ESA (European Space Agency) and they have open registrations to tender on their website. Since ESA is an international company this means even a company outside Italy can apply for the tender. There are different companies working for ESA, international and national.
When targeting the business customers the essential information for marketing planning are the target’s industry type, company size, location and resources, usage of technology and purchasing policies.3

Figure 1:ESA Tender Apllication
Marketing strategy:
Referrals are one of the best ways to get more business, as a whopping 84% of people trust recommendations from people they know.4
Marketing strategy has the fundamental goal of increasing sales and achieving a sustainable competitive advantage. Marketing strategy includes all basic, short-term, and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives.5
Marketing strategy of our brand can be defined relationship focused, which focuses on improving customer interactions to foster better brand loyalty.
Relationship marketing is a strategy designed to foster customer loyalty, interaction and long-term engagement. It is designed to develop strong connections with customers by providing them with information directly suited to their needs and interests and by promoting open communication.6
First step on implementing our strategy is to understand our clients behaviour. In ESA our clients are always busy and do not want to have the responsibility of the small stuff like planning a meeting or making sure their office is clean. We as Nikal make sure that those things are done for them.
Second step is to make a connection with our clients. Once we understand their behaviour, we can go ahead and make a connection to cater to all levels of the decision process.
The Finances
Our financial objectives include increasing revenue, increasing profit margins and earning a return on investment. Moreover we are going to focus our attention on reducing fixed costs, labour costs and increasing profit. Profit goals are concerned first with revenue, then with costs. Keeping costs low by finding and building relationships with reliable suppliers.
Since at the moment Nikal needs to establish a Marketing department in order to go ahead I will only put the finances for the Marketing department

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The Business
Business overview
NikalFMS.r.l., was founded in 1988 by the Muratori family,an entity dedicated entirely to comprehensive facility management services. As a Solutions Provider, our main strength is our complete flexibility and ability to adapt to changing and varied customer needs. The primary reason why we believe our company has thrived for 30 years is that we not only have successfully served many customers with a tailor-made approach, but that we have also strongly adhered to the notion that a happy, enthusiastic working team provides the highest quality service. Nikal FM dedicates extensive time and effort to ensuring the contentment, enthusiasm and voracious team-spirit of all its personnel. Furthermore, as 90% of our people live within 10 km of nikal FM headquarters and in close vicinity to our other customers as well, our shared roots and mutual respect continually strengthen our positive organisation working relationship. Certified to ISO 9001 and EN 15838, the managers and founding partners of Nikal FM seek to harness over two decades of experience and expertise to adapt and respond to changing business requirements in facility management, providing confidence and peace-of-mind with a demonstrated and tested ability to deliver reliable, holistic, and customer-tailored facility management services. Secretarial ; administrative support Event organisation Internal/External transport and moves Heavy Gang Reception ; Switchboard Helpdesk Gardening Waste management Management Cleaning ; Hygiene management.7

S.W.O.T. analysis
Strengths Weaknesses
• Staff has diverse skill sets
• Committed staff and management team
• Strong relationships with other departments
• Good feedback and follow-up
• Issues customer feedback surveys • More training for employees
• No IT department
• Strong competition
• No marketing department
Opportunities Threats
• Building the Brand
• Opportunity to distribute workloads based on demand and skill set
• Improve career path opportunities

• Technology and new products

S.W.O.T. activity sheet

S.W.O.T weakness/ threat Activity to address weakness/threat Activity completion date
Technology and new products
Ensuring the company is up to date with new technology and products in the market December, 2018
No IT department Having an IT department would help with website and services programming December, 2018
Strong competition Look for investors and monitor activities of competitors Ongoing
No marketing department Employ experienced marketing personel January 2019
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Products/services

Product/Service Description Price
Secretarial ; administrative support Works in Nikal headquarters
Event organisation organises meeting and conferences for ESA
Internal/External transport and moves takes care of moves from warehouse to offices
Heavy gang Day to day site operations and activities.
Switchboard helpdesk is the central, sole point of contact for all requests addressed to FM
Reception is responsible for welcoming, assisting and supplying information/directions to visitors
Gardening Waste management Keeps the premises clean
Cleaning ; Hygiene management Cleans offices and whole premises
Internal Mail and Parcel Delivery, Post Office Mail delivery
Merchandising/Space Shop
Selling goods at the ESA shop

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Market position: High quality and competitive pricing
Unique selling position: excellent customer service and relationships
Value to customer: Good and comfortable working environment
Growth potential: The best future growth is always brings very smart marketing strategy.

Sales/marketing personnel

Job Title Name Responsibilities
Marketing manager Nasos Zacharelis Marketing strategy, sales strategy

We foresee to add 2 qualified marketing people in order to have a good and working marketing department. We aim to drive up sales of our services and business development.

The Future
Vision statement
To give our customers the best service by creating a good working environment.
Mission statement
We give the possibility of a stress free working environment.
Goals/objectives
Our goal is to work with increasingly high quality standards and structured work processes tailored to the customer. We guarantee high flexibility and professionalism by offering our customers particular attention and transmitting our passion in what we do.
Long term objective is to launch the service in another country to increase sales and bring business to the international level.
Integration of a broad number of services which support and improve the effectiveness of clients’ primary activities
The Market
Unique selling position
In facility management there is an integration of a number of services which support and improve the effectiveness of clients’ primary activities. We offer excellent customer service and relationships.
Your customers/clients
Customer demographics
The real FM trailblazers are continually seeking out ways to better serve their clients– even when they already seem satisfied. This satisfaction will likely yield you a happier relationship with a long-time customer, as well as the ability to attract new clients.8

Key customers
Key customers are large organisations/companies .

Customer management

Day-to-day responsibility for meeting our customers’ needs is very important. Our approach to working with our customers is set out in our values, which aim to empower and ensure that we deliver high quality service.

We maintain relationships at all levels with our customers, so they are aware of how we can help them and we can anticipate their changing needs and identify opportunities at an early stage. These relationships lie with our divisional and Group leaders.

Our reputation with our existing customers is also vital in winning new work. Many factors influence our reputation, including:
• the quality of our service
• our values and public-service ethos
• our capacity to innovate, and
• our engagement with our employees.

Good relationships with customers is a key point of success for each business. Customer retention and loyalty are important goals for successful Business. Good customer management gives possibilities to understand and ensure the that products we provide are in line with what the customer wants. Importantly, it can also identify further opportunities for growth.
In today’s complex business world, a company must ensure it has the right systems in place for managing customers. Here we define what is meant by Customer Management.

One definition of Customer Management would be that it encompasses all the systems, processes and applications needed to manage the customer relationship. The implementation of a robust IT system for collecting and collating customer data is necessary for most large companies these days. Nikal deals a lot with a lot of personal data and has to implement the data protection laws.

Customer retention and loyalty are important goals for successful companies. These business aim to retain and develop a core customer base. Good customer management enables companies to ensure the services they provide are in line with what the customer wants. Importantly, it can also identify further opportunities for growth.

At the heart of customer management is the customer database. Customer Data is an extremely valuable asset of any business. A business that has clean, correctly formatted and accurate data will be able to provide a good level of service as well as saving time and money.
A well-chosen customer management process should be able to capture customer feedback. This valuable information can and should be used by management. Positive feedback can be built on to offer even more great service and negative feedback can be corrected and acted upon.
Organizations with a successful customer management system can expect to report higher profits, growth in revenue, lower costs and stronger customer loyalty.9

The events organisation department deals a lot with personal data of not only our clients but also outsiders who visit ESA site and it is very important for us to be able to protect that data

Your competitors
With the industry growing fast there are many competitors and it is getting difficult to keep up with them.
Competitor detail

Competitor Established date Size Value to customers Strengths Weaknesses
ATPI 1936 5 Global leader two companies under shared ownership creates a unique and unrivalled global proposition Only has experience in one FM service
Serco 1929 5 Global leader Large customer database Is not ISO 9001 and EN 15838 certified

Market research
The analysis starts by evaluating the future changes in the industry and by studying written forecasts for the market needs. It is vital to research the current market by segments, and how the provided services assemble with the existing customer needs.
Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. In our case it gives us insights into customers motivations, purchase behaviour, and satisfaction. It will help us to assess market potential and measure the effectiveness of pricing, product and promotion activities.10

Kotler and Armstrong (2010, 90) refer to marketing environment, which are the outside factors influencing on the company’s capability to attempt new customers and strengthen the existing customer relationships. It is a research of the current trends of the industry, and it prepares the company for the upcoming trends. Searching competitors may help to accumulate new approaches and to identify the opportunities in the markets.11
Evaluating the competition in the industry helps to predict, how the company will be placed in the market of the industry. The competition should be evaluated broadly enough, considering direct and indirect competitors, and the entire segmentation area. This analysis will help to recognize the company’s strengths compared to its competitors, and to create ideas how to improve those strengths through planned marketing actions.
Studying competitors’ tactics should be used to create ways to differ from their services in order to attempt more customers. The more the company knows about its competitors, the easier it is to find its own advantages and potential. Competitors’ marketing strategies, products, prices and channels should be studied, and their possible promotion tools and special offers should be followed. The sizes of the target markets vary between the competing organisations; therefore the customer evaluation will be built in contrast with the size of the company’s target markets. Competitor evaluation is a part of the analysis on the company’s microenvironment, which are the outside factors effecting the success of the company. The competitors are not just the companies offering similar services, but all the establishments providing products for same purposes.

Industry analysis
Facility Management in Spanish market
State of the FM market in Spain Facility Management is the professional discipline that has grown fastest in Europe in the last fifteen years. According to data provided by the Spanish Society of Facility Management, IFMA, the approximate volume of that market in Spain nowadays is 70.000 million Euros, around 35% more than 2 years ago, representing a sector full of opportunities.
It is a discipline where a multitude of profiles and professional categories and a wide variety of environments participate. It is estimated that in 2016 the turnover exceeds 70.000 million Euros, representing 6.47% of GDP according to the latest report of IFMA Spain. The usual sectors that require Facility Management services are Telecommunication and Banking because they have many square meters of working areas. Conversely, it is the industrial sector which records more incipient penetration of this activity, but is expected to be one of its main lines of development in the future.12
The FM market has, and will continue to, experience a period of significant change. Whilst recent market growth has been modest, this belies a substantial level of corporate activity and strategic repositioning that is taking place behind the scenes. Client demands are evolving to become more sophisticated and output-driven in developed markets; in emerging markets the industry has begun a long-term process of professionalization and consolidation.
Nikal can enter the Spanish FM market but it would be easier for them to form a partnership with another company already in Spain. Nikal will have an advantage since they already have business with ESA and they are a trusted company. The partnership will help Nikal deal with the beaurocracy

Marketing strategy
Word-of-mouth recommendations, often referred to as earned advertising, are still the most influential. Trust in advertising on branded websites increased 9 percentage points to 69 percent in 2013 as the second most trusted format, a jump from fourth-place ranking in 2007. Sixty-eight percent of survey respondents indicated that they trust consumer opinions posted online, which ranked third in 2013, up 7 percentage points from 2007.13
Marketing strategy has the fundamental goal of increasing sales and achieving a sustainable competitive advantage. Marketing strategy includes all basic, short-term, and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives.14
Marketing strategy of our brand can be defined as Referal. Referrals are one of the best ways to get more business, as 84% of people trust recommendations from people they know. Referral marketing is difficult to manage on a larger scale but for Nikal it works because in ESA/ESRIN only they are in charge of their services and since they have a contract ESA employees cannot go and hire someone else to clean their office.
Here are a few strategies and best practices Nikal can adopt.
1. Employee upskilling: Employee upskilling can secure a better utilisation of existing personnel
2. Going green: thinking sustainably is good for both the climate and the bottom line.
3. Standardising: When a process is standardised across countries and regions it can be repeated at a lower cost as time on “trial and error” is cut out. Standardisation can also improve transparency cross sites, increase knowledge sharing and create economies of scale.
4. Benchmark FM performance: if cost leadership is to be attained then the Facility Management organisation must know what costs it needs to beat.
5. Embracing technological innovation: Technology can push greater efficiency and help to do more with fewer resources.

Figure 2: Nielsen Global Survey of Trust in Advertising
Every Year in ESA there is a Facility Management Survey. We use these surveys to measure our KPIs, it gives the guarantee that NIKAL FM will deliver high quality services. Average KPI is 95%

A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use key performance indicators at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the enterprise, while low-level KPIs may focus on processes or employees.15
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The Survey above does not include events organisation. The service has its own survey after every event our client completes the survey based on the services that were included in his meeting/conference. The Annual Satisfaction Survey 94%
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Advertising ; sales
Advertising and promotional strategy

Planned promotion /advertising type Promotional strategy Expected business improvement Target date
Sponsorship Attend organisation(ESA) events and sponsor a part This is going to Benefit from consistent and prominent recognition in print collateral. It will also Raise corporate profile as a partner in providing the FM profession with career-building resources January, 2019

Sales strategy

So how do you sell facilities management? The “rest of the organisation” consists of customers, and great customer service is the key to success. Great customer service must be defined by customers and not by us. We must always act, communicate, and execute projects and day-to-day services in an efficient, cost-effective, and professional manner.
Nikal’s goal is to maintain the current target market and doesn’t plan to introduce new products or services. The strategy may be to increase sales in this existing market.
A variety of tactics can be used to bring this strategy to fruition, such as ramping up customer experience, adding value through education and information of employees, or revamping value proposition or competitive advantage.
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The Finances
Key objectives ; financial review
Financial objectives
Our financial objectives include increasing revenue, increasing profit margins and earning a return on investment. Moreover we are going to focus our attention on reducing fixed costs, labour costs and increasing profit. Profit goals are concerned first with revenue, then with costs. Keeping costs low by finding and building relationships with reliable suppliers, designing operations with an eye toward lean efficiency and taking advantage of economies of scale. Since at the moment Nikal needs to establish a Marketing department in order to go ahead I will only put the finances for the Marketing department
Finance required
No finance is required since the company has been operating for more than 30 years.
Marketing budget2017
The marketing budget table below is calculated in euro.

Figure 3: budget for Marketing in the first year
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Price
The cost of services between Nikal and ESA is determined during the tender application and Nikal offers services with the prices agreed in their contract. Below is an example of the prices set during the contract negotiations.
The prices on the left are for events onsite and on the right there are events offsite. In the price list there are also prices for cleaning and the other facility services offered by Nikal.

Figure 4:costs decided by ESA
Services budget example
The budget table below is calculated in euro. In this case Nikal is paid for the expenditure fixed costs and the Variable costs are usually the suppliers.

Figure 5: Budget example of FM services
Supporting documentation
Attached is my supporting documentation in relation to this business plan. The attached documents include:
• Post event evaluation questionnaire
• Budget
References
1. https://www.ifma.org/home
2. http://www.europeancleaningjournal.com/
3. Rope, T. 2004. Business to Business
4. https://www.campaignmonitor.com/blog/email-marketing/2018/01/7-marketing-strategies-increase-referrals/
5. http://smallbusiness.chron.com/
6. https://www.forbes.com/
7. https://docplayer.it/
8. https://www.iofficecorp.com/blog/facility-managers-are-the-pioneers-in-enhancing-customer-experience#uh2qsRPLURQqO7g0.99
9. http://www.customerservicemanager.com/
10. https://www.smartbugmedia.com
11. Kotler P., Armstrong G., Principles of Marketing 2010
12. http://ifma-spain.org/
13. http://www.nielsen.com/us/en.html
14. http://smallbusiness.chron.com/
15. https://www.klipfolio.com/

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