ECO/GREEN MARKETING STRATEGY TODAY CLEANERS M ARKETING S TRATEGY

ECO/GREEN MARKETING STRATEGY Outline Industry/Company Overview SWOT Analysis Segmentation / Positioning Market Direction Marketing Program Performance Measure / Control

ECO/GREEN MARKETING STRATEGY Industry Overview 40,000+ dry cleaning companies in US (employing ~190,000 workers) Dominated by small, independent, single-facility, family-owned businesses Over $10 billion in revenue in % sales decrease from 1Q 2007 to 1Q 2008 Companies feeling effects of current economy

ECO/GREEN MARKETING STRATEGY Industry Overview Going “green” is most popular news in industry currently Conventional use of polychloroethlene (‘perc’) –Classified by EPA as toxic air contaminant, a hazardous, potentially carcinogenic substance California is the first state and only to mandate a phase-out of Perchloroethylene (‘perc’) by 2023

ECO/GREEN MARKETING STRATEGY Industry Overview “Greener” strategies and alternatives: –Closed loop systems; eliminate transfer spills and recycle perc –Use of liquid silicone machine technology by “GreenEarth” (1,300 affiliates world-wide, 700 in US) –Use of cardboard hangers –Recyclable plastic covers

ECO/GREEN MARKETING STRATEGY Today Cleaners Overview Kern-county business, started in 1990 Multitude of products and services –The highest quality service available – same day service, on premise cleaning/pressing, dry cleaning, household items, car hop service, 24 hour drop boxes, hanger recycling, etc… –Utilizing ‘GreenEarth’ technology ® 10 convenient locations in Bakersfield

ECO/GREEN MARKETING STRATEGY Eco/Green SWOT Analysis

ECO/GREEN MARKETING STRATEGY S-O Strategy Expand business to eco/green oriented companies (PG&E, oil/gas companies, State Farms) and obtain long-term service contracts to create an eco/green uniform cleaning services at a reasonably low cost. –10 locations as business hubs, including potential delivery services (same day) –Minimal capital –Potential loss of “smaller business”

ECO/GREEN MARKETING STRATEGY Current Market Segmentation / Positioning On-the-go business professionals who want the practical way of cleaning their clothes –Demand high-quality service and fast turn-around –Not too cost sensitive –Have a high brand loyalty the right way of cleaning their clothes –Eco/Green consciousness

ECO/GREEN MARKETING STRATEGY Future Market Segmentation / Positioning Business / Companies –Kern County based –Uniforms, linens, curtains, cloths –Environmentally-conscious –Cost as secondary factor values reputation

ECO/GREEN MARKETING STRATEGY Market Direction Strategy Sustainability –Recession –B2C revenue declining –Switch focus from B2C to B2B will supplement the loss of revenue

ECO/GREEN MARKETING STRATEGY Marketing Objectives Maintain less than 10% loss of current B2C sales per year. Add and maintain four new B2B clients / month. Life Styles of Health and Sustainability (LOHAS) Increase Customer awareness of our green facilities to a score of 80%

ECO/GREEN MARKETING STRATEGY Financial Objectives Maintain gross profit margin Sales Revenue of $312,000 by March 15, 2010

ECO/GREEN MARKETING STRATEGY Societal Objectives Eco/Green Technology Awareness –American Forests Sponsorship –Monthly newsletters –No Job loss

ECO/GREEN MARKETING STRATEGY Marketing Mix - Product Current Products –Cleaning/Laundry New Offerings –B2B Pickup/Delivery –Features: Convenience, Assurance, etc.

ECO/GREEN MARKETING STRATEGY Marketing Mix - Promotion “In By 11, Ready at 4”

ECO/GREEN MARKETING STRATEGY Marketing Mix - Promotion

ECO/GREEN MARKETING STRATEGY Marketing Mix - Promotion

ECO/GREEN MARKETING STRATEGY Marketing Mix - Promotion

ECO/GREEN MARKETING STRATEGY Marketing Mix - Promotion

ECO/GREEN MARKETING STRATEGY Marketing Mix - Promotion

ECO/GREEN MARKETING STRATEGY

Performance Measurement - Metrics Marketing –Obtain 4 new commercial customers / month over the next year –Average $1000 revenue / B2B customer / month Financial –$312,000 incremental revenue by 2Q 2010 Societal –Build awareness of ‘green’ technology using: radio commercials, paper ads, website, etc…

ECO/GREEN MARKETING STRATEGY Plan Implementation Control Strategic Control –Gauge organization’s effectiveness in managing marketing, customer relationships, social responsibility, and ethics –Conduct annual marketing audit to analyze capability and performance. –Ensure efforts are aligned with objective and strategy.