Company and Service
The company in question is Te Amo Limited, which is a firm offering office and home cleaning services. The company is situated in San Jose, Costa Rica. It currently has 200 employees all on a contractual basis. The company is complemented by a website and a mobile application. One thing that makes this company different from the rest in the field is the fact that it does not require long contracts with its corporate clients. Corporate customers can opt for weekly contracts with the company. The idea behind this was motivated by the increase of small and medium enterprises in the region. These institutions are unable to hold long-term contracts. The individual or home clients just have to make an order and get the service when they require the same.
It is critical to note that the company’s primary objective is to offer high-quality and affordable cleaning services to all its clients. There are two elements that have to be considered when one unpacks the stated objective. The first is that the company seeks to provide quality service to its clients. The second is that the services are affordable. A stated goal of the company is to ensure that all its clients experience satisfaction with both the quality and price of their services.
Overview of Country
Costa Rica is a rainforest country in Central America. It borders the Caribbean and Pacific, therefore, it is also a coastal state. The country has a population of approximately 4 million and a GDP of $95 billion (Granados, 2019). A majority of the country’s citizens speak Spanish, with San Jose being its capital city. Any business that operates in the city has to pay a business tax, which applies to any business that operates within the city albeit not having an office there. Other permits will be required based on the type of business in question. It is critical to note that the country is supportive of small and medium-sized enterprises and this has seen a boost of the same (Granados, 2019). The community is, however, close-knit, meaning that foreign businesses are often shunned by the locals (Granados, 2019). In order to maneuver this, foreign employers are often encouraged to partner with the locals.
Situation Analysis
PEST Analysis
Political
The political analysis of the company shows that the country has a relatively stable political environment. This is important for businesses as it enhances growth. World Bank (2019) notes that the state is described as a democratic and peaceful country. However, there have been numerous cases of widespread corruption in the government. Critically, due to the peaceful nature of the country, small and medium enterprises thrive and have significant political goodwill. Further, the environment supports the growth of legit firms. It is important to note that the citizens often rely on the policies and structures that are provided by the government to monitor and manage businesses. Therefore, it is important that Te Amo Limited also understand the different policies that are required for a cleaning business in the country. All these policies can be viewed from the government’s website.
The issue of corruption largely affects how individuals conduct businesses in the region. This is especially true in San Jose, as a significant number of government officials have been called out due to corruption (González, 2020). Critically, the company is in a unique position to penetrate the market despite the political challenges discussed. For instance, due to the take up of a local name, the company will be able to position itself as a local-friendly institution. Further, to get political goodwill that lasts different leaders, the company has to offer employment to the locals. This should be a key part of the strategy adopted by Te Amo Limited. It is critical for the company to think about future policies that might affect their business as well. For instance, the country’s executive has been keen on making several environmental reforms. If these suggested reforms have political goodwill, they might affect the productivity of the company.
Economic
It is also arguable that the country’s economic environment is stable. Bailey and Warby (2019) note that Costa Rica has not had any serious economic meltdown in the last 20 years. There are two main reasons why this information is important. First, is the fact that the statement indicates that the country has been able to manage its economy relatively well over the last 20 years despite several economic downfalls of first world countries during the same time frame. Secondly, it is highly likely that the people of Costa Rica have significant disposable income due to the stability of their economy. This is important for the business as it (the company) does not offer essential services. In fact, to some extent, one can argue that Te Amo Limited offers luxury services, especially at the individual level. It is also important to note that the stability of the country also affects how people want to spend their money.
It is also important to note that poverty rates in the country have gone down. Leal RodrĂguez and SanchĂs-Pedregosa (2019) note that the country has reduced the poverty rate by 20%. Critically, the hospitality industry is the largest contributor to the economy. This puts Te Amo Limited in a unique position as a majority of the targeted corporate clients are in the hospitality industry. The growth of the economy also means that more small and medium-sized companies are able to get funding and record profits. In turn, these will be part of the targeted market. It is also important to note that the Costa Rican economy is expected to continue to grow (Jones & Spadafora, 2016). This positive projection of the economy also means that there are higher chances for the company to record profits sooner than expected.
Social
There are two main things that have to be considered when discussing the social analysis of Costa Rica vis-à -vis Te Amo Limited. The first is that, as mentioned earlier, due to the fact that the economy has been growing, a significant percentage of the population is middle income. This means that they have access to disposable income. Therefore, the company’s target market has the ability to pay for the service offered. The social status of the population, specifically the target market, is important as it also helps with the pricing of the service offered. Therefore, the management is at an advantage in determining what the term “affordable” means based on the social status of the target market. Indeed, it is arguable that what is affordable to one social class is not to another. Critically, the right pricing is essential in capturing the target market.
The second factor that has to be considered is the level of education and/or skill in the market. This can further be unpacked into two elements. The first is that the company requires highly professional staff to ensure they fulfill their mandate or objective. It is critical to note that the company still has to train its employees to ensure quality service. The second factor is that the level of education and/or the level of skill in the market also determines the market’s ability to take up the service being offered. It is arguable that markets with skilled individuals will appreciate the business more than that of less skilled persons. Towards this end, one can argue that the company is strategically placed due to the highly skilled and educated population in the target country.
Technology
Technology is critical in today’s corporate world. One of the things that have to be considered when talking about technology is the type that will be used. As mentioned previously, the company will be complemented by a website and a mobile application. The users or clients will register on the website or the mobile application and be able to order services from there. One of the reasons why the use of technology is being exploited is that it reduces the pain points that a client has to experience. For instance, it makes it easier for the clients to register and order a service from the comfort of their office or home. The type of technology used also makes it easier for the company to monitor trends and improve where need be. This is due to the ease of giving reviews on technological platforms than on the traditional ones. Further, there is an ease of both giving feedback, launching a formal complaint and also responding to the same through the mentioned technological platforms.
SWOT Analysis
Following the completed PEST analysis, one can argue that one of the biggest strengths of the company is political goodwill from the government. This is important for any new company to thrive. A second strength that the company has is its technology-driven approach. This is a strength due to the fact that other competitors have not engaged with the same. Therefore, it provides an added advantage for the company. Despite the strengths, one of the key weaknesses of the company is that it is only located in one region of the country – San Jose. This is a weakness due to the fact that it locks out all potential clients from other parts of the country. The company should consider expanding the business in a sustainable manner. This should be done after thorough consideration of the cost and sustainability implications that will be incurred.
One of the key opportunities that the company has is expansion. Indeed, it can be argued that expansion is an expensive cost for any company. However, due to technological advancements, the company does not have to expand physically, but digitally. This means that the company allows for orders from other towns and only sends out staff to these places when there is work. To ensure that the expansion is sustainable, the management can consider corporate work only first and eventually grow this to also include individual work. Interestingly, the company faces environmental threats (Henry, Rockström & Stern, 2020). This is due to the fact that a significant amount of chemicals and detergents that are used are not environmentally friendly. It is this reason that is pushing the country to adopt strict environmental policies and guidelines to protect their environment.
Competitive and Industry Analysis
There is significant competition in the industry. Indeed, there are numerous companies that offer cleaning services. These constitute both local and international brands. However, Te Amo Limited has a competitive edge due to the full adoption of technology in the process. Currently, competitors require short and long-term contracts in order to engage with their corporate clients. However, Te Amo allows for shorter engagements due to the fact that the interested clients can simply make their orders via the website or the mobile application.
Marketing Strategies
Product
The service offered is corporate and home cleaning and other related services. This product will be availed through three avenues. The primary two avenues are through the company website and the official mobile application. The third avenue is through calling the company directly and speaking with one of the representatives to place an order. The focus, however, will be on the first two platforms. It is important to note that the product will be divided into corporate and home to allow different teams to offer the best service for whichever category is needed. Arguably, the services that the company will offer are not only needed but also critical. This is due to the fact that there has been significant growth of the Costa Rican economy, which has led to the growth of small and medium-sized enterprises.
Price
As explained previously, there are numerous factors that affect the price of the service offered. Generally, corporate services will range from $20 to $500 per day. The difference and exact amount will be determined by the size of the office space, number of offices/cubicles, number of windows and doors and also the exact location of the office. Home offers will range from $12 to $200 per day. The precise amount will be determined by the size of the house, other cleaning needs such as laundry, lawn mowing, etc., and also the location of the home. Therefore, it is right to say that a majority of the clients will have a different price for the service they require. To make it easier for the clients, both the website and the app will give them estimates based on the information they provide.
Place
The company will be located in San Jose, the capital city of Costa Rica. This will be the physical office of the corporation. However, due to the fact that orders can be made virtually, the company will be able to offer services to the different parts of San Jose. It is critical to note that due to the fact that there is little if any need for the clients to constantly visit the office, the management had to pick office space that is affordable in order to also lower operating costs. As suggested, the digital or technological aspect of the business allows for the company to expand (digitally-not physically to begin with). This approach should be considered due to the fact that numerous clients are in other towns and cities. Additionally, due to the fact that a significant number of the competitors are focused in the capital city, there is an untapped market in the other towns and cities.
Promotion
Promotion is a key part of any marketing strategy. There are three main strategies that will be used for promoting the brand and the services offered. The first is through traditional media, where TV and radio spots will be used to reach out to the masses and inform them of the services offered. The traditional approach also includes advertising in the newspapers. The second approach is through modern or digital platforms. The company will boost its website and mobile application through social media and the web. It is expected that this approach will be much more affordable compared to the traditional one. Therefore, more advertising and promotion will be done online, and only supplemented with the traditional one every so often. The third type of promotion that will be used is word of mouth. This has been separated from both traditional and digital approaches as it can combine both.
Measurement and Control
It is critical to have a measurement and control statement in the marketing policy. This will ensure that the management understands whether the marketing plan is working and where it needs to be improved. In order to properly track progress or lack of, a baseline has to be done. After this, it is critical to measure several things periodically. The first is the visibility of the brand. Some of the variables that will be measured here include the number of people who visit the website, the number of people calling to inquire about services, and a number of downloads of the mobile application. The second is the impact the different marketing strategies have had on the bottom line. Some of the things that will be considered here include the rise or fall of income and the recording of either profits or losses.
Ethical Considerations
There are two main ethical considerations that the management has to discuss. The first is the culture of the people in the target market. It is important to note that the people of Costa Rica consider their environment one of their assets. Cleaning requires various chemicals and detergents that can be harmful to the environment. It is important that all the equipment and detergents that are used by the company are environmentally friendly. This will not only protect the environment but boost the public image of the company. The second ethical consideration is the treatment of the employees. It is common to find foreign companies giving casual tasks to locals and the more lucrative positions to outsiders. To ensure the company’s profitability and good public image, it is suggested that the company consider local employees for all cadres or levels of employment within the company.
Implementation and Recommendations
The implementation of this marketing strategy should be done immediately after it is adopted. This will allow the company to start a business with the right strategies. It will also lower the chances of poor interaction with the market. One of the recommendations that can be made is that the company management should consider hiring locals from the word go. Secondly, it is recommended that the management also expand the business due to its digital aspect. Such an expansion will also ensure the company acquires a significant percentage of the market. It can be argued that the management should also use environmentally friendly cleaning detergents.
References
Bailey, N. & Warby, B. (2019). Explaining the competition for FDI: Evidence from Costa Rica and cross-national industry-level FDI data. Research in International Business and Finance, 47, 67-77.
González, P. A. (2020). Enhancing business dynamism and consumer welfare in Costa Rica with regulatory reform. OECD Economics Department Working Papers, 1615, 1-6.
Granados, S. S. M. (2019). Characterization and analysis of business incubation systems in Costa Rica. JSTOR, 29(74), 57-70.
Henry, C., Rockström, J., & Stern, N. (2020). Standing up for a sustainable world: Voices of change. Elgar Online
Jones, G. & Spadafora, A. (2016). Creating ecotourism in Costa Rica, 1970–2000. Cambridge University Press.
Leal RodrĂguez, A. L. SanchĂs-Pedregosa, C. (2019). Could the ease of doing business be considered a predictor of countries’ socio-economic wealth? An empirical analysis using PLS-SEM. Journal of International Studies, 12(4), 229-243.
World Bank. (2019). Doing business 2018: Reforming to create jobs. World Bank. Web.