Therefore, the central government introduced the Social endowment service system construction plan (201 1 – 2015) which wanted to ease the problem I _2 Warmhearted;s situation To analyze the situation of Warmhearted, we mainly consider strengths and weakness of our company as well as threats and opportunities our company will meet. Firstly, Warmhearted has absolute advantages in service programs and facilities, such as shuttle services, entertainments and health care facilities. At the same time, professional nursing staff takes care of the elderly.
We also have Other great characteristics to make us unique and high quality since we do not set term contracts and hourly minimums. Admittedly, we also have weakness those little financial resources. Also, Warmhearted is rookie in the market so that some customers may query our ability. Lack of experience may be leading us to a wrong way while developing. Additionally, we will meet threats. Warmhearted will face the fierce business competition, 1. 3 Mission Warmhearted mission is to serve one more elderly, to make them live their rest life in a happy way. Since our grandma and grandpa getting older, we know their feelings.
Therefore we need expand Warmhearted in the future to help more elderly, I Service we offer Gathering old people who live closely and provide a place within all kinds of entertainment facilities as well as professional nurses take care of them, This is the core service of Warmhearted. We hope this can bring happiness to the elderly. I Major marketing programs We will conduct the promotion in these ways: some advertisements of Warmhearted will be showed in residential area, internet, and parks. We will conduct a sales discount promotion to attract more customers. 1. Expected marketing results Expected marketing results is that we can attract about fifty-five percentage to sixty-five percentage Old peoples nearby to join in our senior serves center. 1. 7 Key to success The key to success is the recognition Of the customers and the market share. Satisfy the customers and gain the reputation is the best way to develop. Also, we are the complementary services of the traditional rest homes, which make us a great opportunity to gain a joint market share. We are sizing the Chinese traditional thinking that we can gain more customers. Company Overview Warmhearted focus on helping elderly who seeking a better and meaningful life. We offer flexible services including impeccable entertainment facilities, lessons of knowledge about health care and service for life. Our service objects are elderly who are live alone even just in day, tee’ lonely in day time. Warmhearted hires staff with qualifications of nursing and health-care. It makes us more professional on senior care. We also request our staff smiling while servicing. Warmhearted will make elderly feel like families, In Warmhearted, they will never feel lonely. This is also the motto: You Are Not Alone! . Objectives 3. 1 Corporate objectives Through services, including entertainment, imparting knowledge about health care for the elderly and lessons teaching those courses currently most popular mongo the elderly we try to ensure a greater life for the elderly. We offer healthy, safe, comfortable convenient and warm environment in the same time create the colorful life with you. We also aim to contribute to the publicity of care for the elderly. We promise to create the atmosphere as warm as your home. Our company plans to expand to the whole country with high standard of service. 3. 2 Marketing Objective 3. 2. Short-term (upcoming year) Balanced budget in the 1st year; Enhance the brand awareness in the local division by the end of 2nd year Average customers Of 100 With membership for more than half a year Gain at east 10 new customers per month in the 1st year 3-2. 2 Long-term (3 to S years) Build a brand with strong awareness, loyalty and satisfaction in 5 years Ensure increasing net profit in 5 years Expand the business and the market as well as the projects in every individual branch Develop positive emotional connection between brand personality and the customers Establish warm and pleasant brand image Reduce the fixed costs 4.
Situation analysis 4. 1 Industry analysis 4. 1. I Market characteristics Nowadays, the market of elderly homemade center is conducted by local governments and charity organizations. Therefore the industry of taking care of the elderly is onto moderate market. Since the governments are willing to let the market take over the responsibility of raising elderly, there is a huge potential market for new entries to explore in this industry. Among China, Chinese Ministry of Civil Affairs’ data said that the number of elderly over 60 years Old is more than 153 million accounting for 1 1. %. But there are only 38 thousand elderly homemade centers Which Offer 1. 2 million beds in total. The shortage cannot be made up in a short time. ( From: Chinese Ministry of Civil Affairs) Focus on Guanos where we Will be located in, over I million elderly Which accounting for 16% live in Guanos where can only accept 30 thousand elderly to live in homemade center. (Quoted from Hanging Evening News) 4. 1. 2 Trends and Drivers Though Guanos government is going to build another six residences for the elderly, it still cannot fix the shortage. From: Guanos civil affairs bureau) Guanos now is learning the advanced experience from Hong Kong, The government wants to change the endowment pattern from the nation endowment to community endowment and home-based care system which is just like the services we offered, such as entertainments within the community. Government lack of the ability to raise the aged is driving this change rapidly, The categories that need the service expanded.
Not only the aged, but also some middle aged people who want to have fun with the services we offered, These potential customers with higher education and income are more willing to pay for some quiet entertainment 4. 1_3 Legal, Political g, Economic Factors Government is the driving force who leads the change of the elderly endowment industry Therefore, the industry gets advantages in tax, charging fees and overspent approvals. The policy is very steadily within a coming long period. In taxation, the governments do not charge the business income tax, estate taxes, urban land utilization taxes and vehicle and vessel use tax.
Also, the donation can be exempted when charging the individual income tax. In Guanos, governments purchase the community services for elderly. The subsidy will be divided into SKI CO. !200 and YOU three levels. Government published Guanos Preferential Measures in The Elderly, The Regulations of Gudgeon Province Old People’s Rights and Interests, The Elderly Rights and Interests Protection Of The People’s Republic of China. 4. 1. 4 Calculators Factors Chinese becoming more wealth in the last decades, most elderly have stable income and are willing to pay for the health care and entertainment.
Also, in Chinese tradition, the aged are not willing to live in the homemade center, which is why the entertainment center will be the trend in this industry. In Guanos, more white collars who settle down in Guanos are willing to take their parents to Guanos. Since the pressure of work. They do not have enough time to take care to their parents in day time. Therefore more elderly need the day are in future. 4. 2 Competitive Analysis 4. 21 Competitive Landscape In Guanos, the competition is fierce even though this market is not moderate.
Since government will push forward the development of elderly endowment, the competition will be fiercer. The best thing in this industry is that few of companies failed. Because we focus on the high quality community services which enrich their lives that makes us a complement of the base elderly endowment. This will help us avoid the fierce competition when we started. 4. 2. 2 Key players There are potential entrants such us 6 rest homes invested by governments. Also, the existing rest homes still have strong advantages base on the reputation.
Zinging, He, Chin, Yahoo and Kananga, these are the main competitors with high reputation among Guanos. (The charges see in Appendices) There are only eight daily homemade centers, a sum of 3,810 mm. But they can only contain few elderly stay at the same time. Much more elderly cannot enjoy these services. (See in Appendices) 4. 2. 3 Key Players vs… Warmhearted The dominated players in this industry still are invested and controlled by the government. In this market, they do not have the capacity to compete with Warmhearted. Lack of good management and the market view make them loss.
Also, because of the background, they do not to make effort to offer good quality services. The reputation of the state owned rest homes are lower than the private owned in Guanos, These private owned can offer good quality services and quite expensive tort expanding the profit. In Chinese tradition, elderly don’t want go to home care center and want to stay with children, We can bring them both: good care, close to family. We will offer the good quality services at a reasonable price. Though Warmhearted is new entrants in the market, we still have that that we have competitive advantages to them.
Compared with the familiar daily home care center, we can offer more professional and varied services. As the same brand and same services, we can attract more elderly come to us to enjoy good service, Strategic Group Map 43 Customers Analysis 4. 3. 1 Segmentation Dimensions Concentrated segmentation strategy, we most focus on the aged Who are seeking ways to better enjoy their life. Warmhearted also use the demographic segmentation and loyalty segmentation, Which we Will further explain in Market Sweater part. 4. 3. 2 Target Market
Our target customers are the aged in Guanos, including both genders in medium-income families who want to enjoy their leisure time in a more meaningful and healthier way. See details in Market Strategy part. 4. 4 SOOT Analysis Strength The innovation of services Professional management Relatively lower price Highly qualities workforce Strong relationships with local government Good cost structure Weakness Poor brand awareness Little financial resources Lack reputation Limited coverage Opportunities The support regulation Growing demand Customers seeking for the high quality life Threats Fierce competition
For strength, we have the innovation of the services, we offer many kinds of new services for the aged who seeking high quality life. Also, we only recruit staffs with high qualification, which will bring us the professional management and services team. The price we charged for the services is relatively lower than competitors. We have a good cost control system that can control the overheads. The good relationship with government will give Wreathed some advantages. For weakness, because Warmhearted is new entry to the market, so we have no time to gain such high reputation and brand awareness to achieve the rapid placement.
Also, we do not have so much financial resources. The coverage of Warmhearted is limited in Guanos. For opportunities, we can get the remedy from others and support regulation. The demand for better life is growing so fast. Poor threats, the fierce competition can threat Warmhearted survive. Also, the state- owned rest homes can be very competitive in price. 5. Marketing Strategy 5. 1 Market segmentation strategy 5. 1. 1 Concentrated Segmentation Strata%’ Our organization pursues the concentrated segmentation strategy.
To achieve high efficiency of limited resources, all the energies are focused on the single argue market, the aged man in Guanos in the fairly medium income families who are seeking Vass to better enjoy their life. We aim to create the experience designed exclusively for the aged to enjoy a higher quality life, With more company, more entertainment and more care. The activities and environment are carefully designed to fit in the emotional and physical needs. 5. 1. 2 Demographic Segmentation Our target consumers have easily measured and objective demographic characteristics.
Thus, the way of promotion would be considered on the basis of the profile of the customers. Since the aged have different habits, orientation and needs from the young, we would find the way most suitable to the target consumers. For example, the aged may be more interested in the knowledge about keeping healthy, Thus, health related speech would be held frequently, Additionally, moderate exercise would fit in the need to the target customers more. Loyalty Segmentation From view of lifetime value of customers, we try to create an emotional attachment in a positive relationship.
The superior consumer service, loyalty programs and typical nostalgia of our customers would be an advantage for us o exclude competitors and retain the loyal customer, which reduces the cost of seeking new customers and ensures long- term profit and reputation. 5. 2 Target market 5. 2. 1 Profile Our target customers are the aged in Guanos, including both genders in medium-income families vivo want to enjoy their leisure time in a more meaningful and healthier way. Due to the similar background, our target customers group has similar lifestyle, attitude and belief.
For example, most of them would like to watch and play Gudgeon Operas. Additionally, individual difference will also be studied to better serve the loyalty segmentation. Effort in considering individual difference will reinforce the long. Term relationship and emotional attachment with the customers, which in turn can become an advantage excluding the competitors. 5. 2. 2 Consumption pattern The aged may want to spend their free time in a more colorful way, seek company to get rid of loneliness and an way for healthy exercise.
Thus, our service aims to meet customers’ psychological needs through exclusively designed activities that enrich their elite. They may come to the center on a regular basis or when they are free and feel like having fun in the center. The charity to target customers are expected to come to the center in the morning in weekdays, when the other members have been away for work and school, leaving them alone. The other peak time will be the evening, when customers would like to relax after dinner, The aged may choose the center by themselves, Besides, the young may choose the center take care of their parents’ leisure time. 3 Positioning strategy According to the Hanging Evening News, the proportion of aging population in Guanos has reached 16%, about I million, However, only 30 thousand quotas are provided by public home for aged. The private nursing houses also face excessive demand. Our target customers are somewhat different from the nursing houses while sharing common feature as well. Adapting to the traditional belief in the mainland China that nursing houses is associated With apathy and abandonment, our organization only plays the role of providing entertainment and more colorful, meaningful and healthy lifestyle to the aged.
We distinguish our organization by careful, standardize and high-quality customer services, adapting to personal needs and building warm and helpful relationship. In other words, we focus more on the mental needs of the aged rather than merely providing a place to stay. In this way, we also explore more market potential that part of the aged just wants entertainment to get rid of boringness and do not want to stay in the nursing houses. Activities for the aged, especially dancing, are gaining popularity in recent years, which indicate the need of the aged for a more colorful life.
However, most of the activities lack of organization, professional care, communication and meeting individual needs. Our organization would make up tort the listed disadvantages and provides perversity so that more choices would be presented to the aged, 6. Marketing program 6. 1 Marketing Mix: 6_1. 1 Product: Warm heart’s main product is the entertainment service provide to seniors. Mostly seniors would be picked from their home by bus and set off in our entertainment center.
Here is our company’s product line: ; Entertainment service: this is our company’s Core product, in this part we especially focus on seniors’ spiritual needs. 1) For pure entertainment: mahjong’s, poker, gate ball, Chinese chess, and Chatting room With tea house, reading room with newspapers, magazines and books. ) For learning experience classes: cooking, calligraphy, chorus, weave, introduction to computer science, follicular, attach, social dance ;Shuttle transfer service: according to seniors resident area we will have some route to pick up seniors and also take them back to their home. Meals service: breakfast need to be ordered in advance, we could help seniors to buy takeout. While lunch and dinner is made by our canteen, could be ordered in our center directly. All meals are controlled by our professional dietician; there is no need to worry. ; Rest service: To help seniors pep energetic, we will set beds for seniors to have a break or noontime rest. Besides, a lot of chairs and some sots will also be placed in the center’s public area. ; Medical care: we will hold regular health talks; people come and learn some tips tort health maintenance.
Moreover, we will provide tree service to help measuring blood pressure, and also weights. Physical therapists will also there to give advices for seniors. ; In order to help the aged to realize their life values, we are going to found the help group within the elderly who wants to contribute to the society. 6. 1. 2 Pricing We will charge separately from each kind of services. Poor the entertainment, different place have charge differently. If customers go to the center in the downtown in which there are better quality services, they will be charged by SO Yuan per day one person.
In the branches will be cheaper. The shuttle transfer service is free for those Who live in a long way from the center We also offer special meal for customers, each is cost 35 Yuan. If the customers want to have a noon break at the center, we need to charge them for 30 Yuan per person. The basic medical care is included in the services charge. But we add extra charges on the beyond the services. It Will depend on the current situation to charge a reasonable price. We accept both pay once a time or as a long period. 6. 3 Place We have a center which can put more kinds of entertainment facilities and can seats over SO people. It is located in the downtown with convenient transportation. Also, we have some bigger entertainment centers in the suburb of Guanos in which we will offer the shuttle transfer service. It can contains more people have fun in the centers. Three are more convenient location for the geed: we will collaborate with the community and set up the branches in the large living community. It only can contain a few people with fewer facilities.
But they still will have the function to entertainment elderly. 6. 14 Promotion We choose Newspaper, Radio, Leaflet and Online as our promotion channels. Since newsletter and radio are main channels for seniors to get information from outside, and the promotion costs are not so high. It could help us improving our brand awareness in terms of seniors. Leaflet could be sent in the large community, considered the working habit of nowadays’ office worker. An online website will also be put up to help their children have a convenient channel to get more information of our entertainment center.
We will conduct the discount promotion. For those vivo can once pay a whole year, we will give a 10% discount. Also, we conduct the membership policy, once Customers become the member Of Warmhearted, they will get more convenient services. 6. 2 Loyalty Programs In order to maintain customer’s loyalty, following programs Will be conducted: ; Rewards program: every years first 30 membership purchaser will receive a delicate calendar as a surprise gift. Appreciation program: every year we Will select 3 lucky members to reward with the free membership for the next whole year. Rebate program: Members will have a 10% discount if continue purchasing membership in the next year. ; Affinity program: all members will enjoy free parties twice a year. Healthy diet will be provided, no worry! 6. 3 Customer Service & Support Since our target group is seniors, therefore 3 local hotness will be settled. What more, a website of our entertainment center will he set in order to help seniors’ children get a better understanding to our service easier and more convenient. Service hour: Our customer service hours, as well as our entertainment center’s opening hours, will be 8:AAA. . – 6 p. M. Every day. 6. 4 Trust and Credibility For Nursing worker’s credibility: A contract with the local universities and colleges will be signed up to provide sustainable internship opportunities, by which could both benefit the seniors the professional care and also made students have chance to applied their expertise into real world. A business license which reward by China’s industrial and commercial bureau will be illustrated in the public hall. People are welcome to come by and looking around our