Market Segmentation and Product Positioning

Market Segmentation and Product Positioning

John Johnson

Prof. XXX

Marketing Management – MKT 500

May 2, 2010

1.0 Executive Summary

John’s Lawn Service (John’s) is a residential lawn care service. John’s will target suburban middle class homeowners with large yards. A big portion of this demographic is located in John’s surrounding neighborhood. John’s will leverage his association with fellow neighbors to sign up clients. Having a footing in the neighborhood helps create a trust bond that can be leveraged as John’s builds his client base.

The mission of John’s Lawn Service is to furnish clients with professional lawn care. The goal is to attract and maintain customers. Services will surpass all client expectations. John’s Lawn Service is a seasonal commercial enterprise. John’s revenue activity occurs from March through November. John’s Lawn Service will target one particular grouping of clients, the suburban middle class. John’s is targeting middle-aged homeowners as they are more than likely to

rely on a lawn service. Younger homeowners are more inclined to do their lawns. Additionally John’s will target households that don’t have teenagers at home to help out with the lawn.

The median income is $65-$125k, equitable enough to have disposable income for lawn service. John’s Lawn Service will target lawns between 4,000-8,000 square feet. The reason is that the profit margin is higher with larger lawns once you factor in transportation time and price. Only white-collar families will be targeted as blue collar families traditionally do their own lawns.

During the first year John’s will operate one two-person team consisting of John and one employee. In year two John’s will buy another work truck, additional equipment, and employ a second two-person team. John’s Lawn Service is projected to see a profit between six months to a year and will have profits of $13,000 by the end of the third year season.

2.0 Situation Analysis

John’s Lawn Service...