Executive summary
This paper seeks to critically examine the systematic growth and development of home based security services in Australia. In the background information, the events that have led to the growing demand for the service, challenges and available opportunities are objectively looked into form unbiased perspective.
SWOT and PEST market analysis tools have been incorporated to aid in the examination and evaluation of the industry.
Four of the seven market mix elements are also looked into in the paper. The paper finally ends with a conclusion that gives recommendations that may be adopted in expansion and further growth of the service sector.
Introduction
According to The Australian Institute of Criminology (AIC), the private security industry is complex with over 100,000 security personnel. The industry is set to grow rapidly in the foreseeable following the universal concern for personal and family safety irrespective of one’s socio-economic status. The home care security service provision is not just a reserve for the multinationals and well equipped companies but has also attracted small and medium business ventures as well as one-man security service provider. The services are therefore mainly dictated by the product sought, equipment required and ability to pay.
The provision of home based security services, as a product, has been evaluated about mc Security Services Company.
Objectives of the paper
- To illustrate the significance of home care security service product today
- To analyze the promotion and marketing of home care security service using SWOT and PEST Analysis
- To underscore the available opportunities and challenges in home care security service provision
- To explore the business strategies employed marketing of the home care security service
Background to MC Company Home care security service
Several factors have led to high demand of security services for homes include with the demand still growing. According to AIC, the possible reasons for the increase in the growth of the industry include, increased crime rates, burglaries and robberies, threats of terrorism, abductions and kidnappings, low citizen to police ratio, need for personal comfort and sense of security at home and a risk management strategy which asserts for preventive measures. The MC security services company offers a wide range of services including hired security guards, protection of business premises, schools and personal protection, crowd control and vehicle protection and security training services (mcsecurityguards.com).The security services provided by mc security company’s services include;
Security guards
MC Security Services Company employs qualified and trained security guards in Melbourne. To ensure maximum and satisfactory service delivery, the guards according to the company’s specifications “must exhibit high level of self esteem, communication and life skills and personality development and must be ready to learn under the extensive training initiative.” The guards, after training and certification, would then provide security in the client’s homes and other areas of business (mcsecurityguards.com).
Party security and crowd control
This department, according to mcsecurityguards.com, provides security services during party events like birthdays and celebrations in homes and other social places. The customers who need this service will contact the management through e-mail, phone or by physically visiting the offices. This product line is usually y for hire during specific durations.
Mobile patrol
Mc Company offers this product to its clients where a car mounted with modern communication equipment undertake regular patrols in and around the premises under guard. This is aimed at detecting and averting possible security breach and theft.The mobile security patrol offers wide range of services like escorts, checks and alarm response (mcsecurityguards.com).
- Personal Protection Services Mc Company provides customized security to individuals at affordable rates.
- Training courses MC Security Services Offers training courses for providers of security services.
The Analysis
Flow chart of service
The flowchart in Figure 1 below illustrates the summary of how the company provides its security to the clients including the techniques that they employ.
The market analytical tools
SWOT Analysis
Strengths of the mc Security Services Company are:
Use of modern technology
MC services use modern technology in providing security services to its clients as away of keeping abreast with the modern trends in the technological advancements. The deployment of mobile patrols in and around the client’s premises using alarm response, Close Circuit Television), Electronic article surveillance, 24 hour alarm Monitoring, Security systems service and maintenance gives the company a competitive edge in the market (mcsecurityguards.com).
The company can adjust its home security services to include use of more sophisticated technology (mobile phones, CCTV, alarm systems, burglar proof installations, surveillance cameras) that may attract more clients. As an aggressive marketing strategy, the company should list its price range as done by its rival, ADT Company on its official website and allow its potential customers make informed decisions based on price comparison (adt.com).
Trained staff
Mc Company, according to mcsecurityguards.com, has its entire staff trained on provision of security services, use of security gadgets, communication and life skills and customer care. The training ensures that the company “has a pool of qualified work force which serves the clients professionally and satisfactorily. The trainings also enable the company to improve its cash flow and liquidity as the revenue generated from security trainees is used in its human resource development to the advantage of their clients.” To improve its marketing edge, the company should also offer free training to its customers on the use of its security equipment as this make them feel as real owners of the products.
Unique selling points
Mc security Service Company has unique way of selling their products where a customer can call, negotiate and order a product using the contacts provided (mcsecurityguards.com). This ensures that the potential clients can comfortably use the modern communication means and obtain an on the spot service without paying extra fee for the service.
Opportunities
Demand in the market
Mc security Services Company has opportunity to expand and tap the new and emerging markets owing to the growing concern over security. The emergence of kidnappings, need for personal and home protection offers an enhanced market a situation perpetuated by the high citizen to police ratio gives the company opportunity to grow larger.(aic.gov). This is a fact which has made the demand for private security increase as more and more citizens are taking it upon themselves to provide their security. Strategic marketing and product communication which largely targets the potential but untapped markets should be initiated as a new product line and pioneer entry into a niche.
Social trends and high product differentiation
There is fast growing trend of VIPs and celebrities acquiring private security details in many parts of the world (nyc24.org). Owing to the qualification of the mc security service company guards, it is poised to benefit more as its marketing strategically places it in this product line. This is a very good opportunity which should be exploited by the company. The returns from this opportunity would be great because the VIPs would also be given special prices unlike the other ordinary citizens. The company should therefore explore the possibilities of tapping into this area by launching personal product promotion earmarked to win favor of potential clients like celebrities, politicians, business executives and other public figures.
Technological development and innovations
The rapid growth in the telecommunication industry has resulted into development of new and reliable security gadgets that the company has employed in its operations. The company uses modern alarm systems and CCTV cameras in homes under its guard to ensure maximum protection of the customer hence deepening the customer loyalty to its products.To keep itself afloat and ahead of its competitors the company should fast deploy latest security gadgets and capitalize on the same by advertisements as away of swaying more clients to acquire its services.
Threats
Many players in the market
The upsurge in the number of private security firms and the liberalization of their formation gives the mc a threat. To beat competition, the company must strive to offer unique and quality services compared to other players. This will enable it to tap different markets and clientele groups.
Legislative threat
The high number of private security firms in the market has resulted into provision of poor service in some instances with some companies being viewed as private militias or military wing in many countries.This challenge may trigger change of laws that govern the operations of Mc Company hence resulting into more compliance costs. Change of law should always be anticipated to ensure long term survival.
Weaknesses
Presence and reach
Mc Company does not cover the whole of Australia currently. Due to this fact, the company faces stiff competition from other firms with national and global presence. The company’s market share is therefore low because of its dominant presence just in one region. This is a great limit as it reduces the company’s credibility in terms of its ability to handle pressure from many clients.
The Mc company needs to strategically increase its presence in many areas subject to sustainability and market existence(thetimes100.co.uk). Strategic alliances and mergers can be implemented to enhance service delivery and penetration in new areas. This will serve to enhance its market presence and its popularity thus increasing its credibility. This is inline with the fact that the more customers a company serves the more likely it is to get more clients through the word of mouth advertisement.
Weak brand name
Compared to other brands in the market, MC Company has a relatively “weaker brand name” compared to other multinationals in the same industry that serves to lower its publicity and market positioning. Constant and sustained level of products’ promotion needs to be adopted and the different brands strategically positioned in their respective niches to enhance consumer awareness and recognition.
Pest Analysis
According to NetMBA, PEST Analysis is the systematic breakdown of the external macro-environment that affects all firms. These factors are political, economic, social and technological. These are the factors which cannot be controlled by the firm itself and may pose threats to the organization. (NetMBA)
Political factors
Australia has been generally peaceful for a long period with a stable political system (nationalsecurity.gov.au). This has given Mc Company a peaceful and conducive atmosphere for conducting business.Stable political system has and will serve to improve the business opportunities for the company. This is an advantage which should be utilized to the fullest.
Economic factors
Australian economy, according to nationalsecurity.gov.au, has been suitable for business with fast development especially in ICT sector.The competition in the security industry , that uses ICT equipment, has also served to allow Mc Company to upgrade its security equipment often. The distribution channel of the company’s products which are not tangible has been efficient with the home based customers having a single channel. This together with reliable means of communication have served to ensure customer loyally and enhanced earnings.The stable currency has also served to promote business(sacbee.com).
Social factors
According to Australian institute of criminology, the upsurge in the demand and number of private security firms can be explained concerning increased proliferation of small arms, increasing in crimes especially in 1980s, and failure by the state security apparatus to conclusively tackle security concerns, demographic changes and need for mental satisfaction on state of one’s security. Private security firms including Mc Company have largely capitalized on these trends through multimedia advertisements to shape consumer’s attitudes and views towards hiring of private home security services.
This trend is set to continue thereby creating more viable and valuable opportunities for the mc security service company as more people demand security services and installation of surveillance equipment at home. Mc Company has also exploited the social trends to offer differentiated services which go brands and image to enhance social lifestyle like the VIP, Corporate and personal security services.
The company is actively involved in various corporate social responsibility programmes like Epping Jnr Football Club in the Diamond Valley League and Whittlesea under 15’s junior football team as part of its marketing communications and giving back to the society (mcsecurityguards.com). The company’s commitment to corporate social responsibility has served to boost its image all over Melbourne thereby improving its market performance about provision of security services to homes.
Technological factors
Mc Company has deployed the latest gadgets in the communications industry to give it a competitive edge. This includes the Central circuit TV cameras, development of a website, mobile patrol s and other surveillance equipment. The investment of funds in research, Training and development has also given the company an upper hand in terms of technological appliances (mcsecurityguard.com).
Review of 4 of 7ps
People
According to chartered institute of marketing (C.I.M) a company’s impression is created by the staff that interacts with the customers. Mc company highly values its customers and corporate image and has a philosophy of the customer is always right. To perpetuate this, the company ensures that, “all people who interact with the customers are not only trained but also fit for their positions. This serves to further enhance its presence in the market.MC Security Services has a code of ethics that binds its workforce to promote integrity and professionalism.”
Internal marketing/motivating employees
All the parties involve in service development, delivery and consumption are critical in the performance of a product in the market in terms of how people receive it and how well it manages to sell (12manage). The regular trainings offered by the company are aimed at boosting their moral and give them a sense of belonging. The employees are also provided with enough materials and safety clothing to ensure maximum safety while on duty. This, according to cim.co.uk ,is very important because when a worker feels good and appreciated, their performance will increase considerably and this is good for the company.
The company needs to develop a flexible but strict policy of employing trained, qualified guards and licensed employees to conform with the proposals of CIM to make all people it deal with , particularly customers , satisfied. This stringent requirement will serves to motivate employees as they will be able to competently handle their works and respond to unique customers’ needs with ease as their training and codes of conduct demands.
Promotion
Promotion involves communication of the product offered by a company. The MC promotes its product by a user-friendly website, mcsecurityguards.com, designed to communicate the company’s products to existing and potential customers. The website not only shows the company’s brands but also acts to advertise its products and uses simple language and visual images to convince the target group to purchase its products.
The company also uses brochures and has its logo engraved on its patrol cars and all staff uniforms to communicate the values and unique features of its products.These, have offered positive publicity to the company’s products making them household names and easily identifiable by the consumers.
The company however needs to make its promotion strategies to clear demonstrate what value is expected from each product in exchange of customer’s money.The company needs also to diversify its promotion strategies to involve the print and electronic media, billboards, posters and leaflets to realize maximum client reach.
Product
The products of the company includes security guards, party security, personal security , school security , crowd control, mobile patrol, vehicle escort , personal security, loss prevention and security training courses (mcsecurityguards.com). The company develops its product lines in line with the market needs as opposed perceived trends. This makes it easier for the company to sell its products whose demand in the market are ever increasing.
The products are earmarked for different categories of market niches and are differentiated in this line. To ensure value addition to clients, the security guards, according to mcsecurityguards.com, are regularly trained to keep them abreast with the latest developments in the industry and technology. This ensures high level of client’s satisfaction. However, the company should indicate its pricing procedures as ‘price positions one in the market’ as explained by the CIM.
Process
According to the company, their success lies on the customer’s understanding and appreciation of the system, communication, customer care and support. Accordingly, the company has posted in its website, mcsecurityguards.com, its contact information through which the public can get in touch. The company also has an interactive website that offers an insight on how the service delivery process works. However, the site, mcsecurityguards.com does not give an envisaged process on how exactly each service is to be delivered, waiting duration upon order placement and follow up procedures.
Since the main purpose for seeking the services of private security firms to offer home based service is peace of mind, the process of service delivery needs to be as simple as possible without any cumbersome procedures.
The mc company therefore needs to invest equally in customer care trained for its employees and also keep the customers informed about any relevant matter on time whenever it deems necessary.
Conclusions
The above discussion and analysis point out how Mc security Service Company is fairing in the market in terms of marketing its security services and service delivery. Accordingly, the paper identifies the areas in which the company is faring well in terms of home based security service provision as well as the major challenges it faces. In overall, the home based security service has lots of unexploited business opportunities which potential investors should seek to explore and exploit. These range from a single home watchman, gate keeper, patrol security agents, installation of burglar proof gadgets and security surveillance equipment.
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