Totally Tidy by Tilly.docx
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School
Vancouver Community College *
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Course
101
Subject
Communications
Date
Apr 3, 2024
Type
Pages
6
Uploaded by CaptainViperPerson426
Case Memo
Totally Tidy by Tilly
COMM 101 Section 201
Group 15
January 31, 2024
Issues:
The Stratton Oakmont Consultants identified that the most urgent issue for Tilly is determining how she is
going to differentiate her business. In a market where there is pre-existing competition, the success of her
business lies within her ability to offer her unique services, therefore, she must decide if she is going to
offer cleaning, organizing, or a combination of both. This decision could significantly impact her personal
life and without proper consideration, Tilly could experience a lack of consumer basis.
The next issue we identified is her desire to have a family life while starting this company. For any new
company, the hours required to make it profitable are more than Tilly is hoping to dedicate. With her
original idea of working from 9 am-5 pm, doing this solo would be unrealistic, which is why it would be a
good option to look at hiring someone.
Beyond the demanding issues of differentiation and high work hours, Tilly must decide which cities she
will serve because, without them, her customer base will cease to exist. This needs to be addressed
immediately because her success is largely contingent on her marketing and without a customer segment,
this presents itself as impossible.
Analysis:
Decision Criteria
1.
Competitive Advantage: 40 %
The competitive market of the cleaning industry makes it difficult to stand out and succeed. There are a
large number of established cleaning service providers within her targeted area of reach. Therefore, Tilly
must provide a striking advantage over other competitors to find profit.
2.
Profitability: 10 %
Ensuring a consistent and steady revenue flow is crucial for the business to sustain itself in the market and
foster growth. Emphasizing customer growth and retention, which originates from revenue, is a valuable
aspect for Tilly to focus on as a new business in the industry.
3.
Operation flexibility: 30%
Despite the demanding nature of start-ups, Tilly is firm about valuing her time. She wants to work only
from 9:00 am to 5:00 pm on weekdays, taking weekends off and desires six weeks of vacation annually.
It's crucial to weigh the impact of different options on her flexibility and adhere to her preferences.
4.
Risk: 20% (1 = high risk and 5 = low risk)
Tilly's new cleaning business, Totally Tidy by Tilly, faces the usual high startup costs of the industry. She
plans to use $10,000 from her savings to finance it, which adds risk. It's crucial to weigh these initial costs
against potential earnings and sales to see if starting and running this business makes sense, especially
since Tilly also needs to balance her role as a mom at home.
Alternative 1: Yearly & Seasonal Full House Makeover
Tilly will offer a service combining cleaning and organizing. To stand out among her competitors, she will
provide organizing all year round and cleaning services only during the winter season. She will hire a
skilled assistant for cleaning so she can focus on organizing, which is her specialty. Her business will
target families in Vaughan, a place with many high-income households. Tilly will use her background as a
local mom to create a brand that appeals to other busy moms in the area. For marketing, she will mainly
use Facebook to reach her ideal customers because of its ability to target specific demographics.
Competitive Advantage: 4/5
●
In Vaughan, Tilly offers a unique value proposition that differentiates her from competitors like
Molly Maid and Merry Maid, who only focus on cleaning services
●
By positioning herself as a local Torontonian mom, Tilly can leverage her relatability to gain trust
and preference within her community, potentially outshining impersonal franchise services
●
The lack of awards by Molly Maid in the Vaughan area suggests an opportunity for Tilly to
emphasize quality in her branding and operations
Profitability: 3/5
●
Targeting Vaughan, an area with a high average household income, indicates a customer base that
could afford and be willing to pay for premium services
Operational Flexibility: 3/5
●
Tilly's personal touch in organizing homes allows her to meet each customer's specific needs, but
this careful attention means she can only help a few clients at once
Risk: 2/5
●
Tilly faces the challenge of competing against well-known businesses that already have loyal
customers. She must consistently innovate and maintain high service standards to retain market
share.
Alternative 2: Spotless Cleaning by Tilly
Tilly will shift her focus to exclusively offer high-quality cleaning services, utilizing the resources
initially intended for organizing services to enhance her brand. With a team of certified assistants, she's
expanding her reach across Toronto, targeting office workers seeking home cleaning. A key differentiator
is a new website for easy booking and customization of services. Marketing efforts include promotions on
Instagram and Facebook, plus ads in downtown Toronto.
Competitive Advantage: 1/5
●
Customers can request online custom services with Tilly, offering a time-saving advantage over
larger companies that require in-home surveys.
●
Tilly may lose potential customers in Toronto to larger cleaning companies due to their existing
loyalties.
Profitability: 2/5
●
Initial profits may be low due to the costs of cleaning equipment, assistant salaries, and training
●
The website used by the business costs money to establish and operate but can save money in the
long term because Tilly doesn’t need an offline store which requires monthly rent.
Operational Flexibility: 4/5
●
The assistants in this business are from all parts of Toronto, and customers can make an
appointment at any time they want online, so they can provide services anywhere and anytime.
Risk: 4/5
●
Tilly has a high start-up cost because she needs to buy the cleaning equipment and hire assistants
in the beginning.
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Alternative 3: Organizing Services for New Startup Companies
Tilly should offer an organizing service tailored specifically for new startup companies. This service helps
declutter and organize physical workspaces to enhance operational efficiency. Tilly will target new
startups and small companies based in Vaughan and King City. This geographical focus allows for
personalized, on-the-ground support and the development of long-term relationships with her clients.
Given that both locations are close to Tilly’s home base, Tilly can pursue her passion for organizing while
staying close to her family. The proximity allows for a perfect work-life balance, which satisfies Tilly’s
problem of inflexible work hours.
Competitive Advantage: 3/5
●
By serving as a corporate organizer, a unique position in the industry that goes beyond traditional
organizing services for household cleaning
●
Her passion for organization allows her to tailor her services to the unique needs of startups, such
as creating efficient, flexible workspaces
Profitability: 2/5
●
Since organizing workspaces needs a lot of detail and extra help, Tilly may not be able to take on
the needed number of cases to achieve the target profit
●
Tilly may need to hire several strong assistants to help with organizing, which increases the
variable costs of the company
Operational Flexibility: 2/5
●
Tilly’s geographical focus reduces travel time and costs, allowing her to be more responsive and
adaptable to client needs
●
Tilly may have trouble providing the same level of personalized service as she gets more requests
Risk: 2/5
●
Since the majority of companies in Vaughan and King City focus on providing cleaning services
to households, Tilly needs to successfully communicate and demonstrate the unique value of her
organizing services to startups. Her ability to stand out and attract clients will largely hinge on her
marketing strategy.
Recommendation:
The Decision Matrix (see Appendix A) shows that Tilly's best option is to offer organizing services all
year and cleaning services during spring and winter. This choice lets Tilly work on what she loves
continuously, helps her stand out from others, and gives her a great balance between work and personal
life.
While other companies typically offer single services, Tilly can create a
point of differentiation
in the
Toronto area by uniquely offering both cleaning and organizing services. Specifically, during the winter
months (December to February), when indoor activities increase and homes get messier, Tilly can hire a
skilled cleaning assistant. This strategy allows her to focus on organizing during the busiest times.
By offering yearly organizing and seasonal cleaning services, Tilly operates with low yearly costs,
leveraging her expertise in organizing services. For cleaning services, she incurs a one-time fixed cost of
$219.09 for supplies, and a variable cost of $379.02, which only applies during peak seasons. Tilly plans
to offer a premium, dual-service package at $100, aiming to secure more contracts monthly to offset these
costs. From March to November, she will charge $90/hr for organizing services, focusing exclusively on
profit during these months. In terms of
customer segments
, Tilly's business will concentrate on the
Vaughan area, home to 80,835 families with a high average household income of $113,988. This
demographic presents an ideal target market of busy mothers struggling to find housekeeping time.
Finally,
marketing
efforts will primarily utilize Facebook, capitalizing on its demographic targeting
capabilities. Tilly can market herself as a local Torontonian mom, the business will adopt a relatable and
community-focused brand image to connect with Vaughan's busy households.
Recommended Alternative
The Stratton Oakmont Consultants have decided that the most appropriate alternative for Totally Tidy by
Tilly is creating a full-house makeover business. We believe that this is the best alternative because of the
strong point of differentiation that she holds over her competitors, the potential profitability given the
higher income city that she will serve, and most importantly, her ability to relate and understand her
clients, helping her provide premium service enhancing her reputation. By choosing this alternative, Tilly
is ensuring the highest probability of success for her business as well as keeping her family priorities at
the top of her list.
Risk and Cost Mitigation:
Tilly faces competition from established cleaning companies for seasonal services, risking losing loyal
customers who prefer year-round services. Her seasonal focus during winter heightens the risk of clients
turning to these well-known competitors in the off-season. To mitigate this, Tilly can emphasize her
year-round organizing services, offering discounts to customers who promote her on social media. This
strategy helps market her business and grow her customer base in the community.
Launching both organizing and cleaning services incurs significant startup costs for Tilly, due to the need
for hiring assistants and purchasing professional cleaning equipment. To offset these costs, Tilly plans to
charge $80/hour for cleaning, $90/hour for organizing, and offer a combined service at a discounted rate
of $100/hour. This pricing strategy is intended to generate additional revenue to help cover the initial
expenses.
Action Plan:
There are a few easy steps that Tilly needs to take to get her friendly neighborhood cleaning service up
and running.
●
Start searching for cleaning assistants
: Tilly should start posting job listings on websites such
as Indeed and Monster.ca to find a certified cleaning assistant as soon as possible
●
Build credibility
: Tilly should offer her friends and family a discounted rate so that her business
can build reputation and experience. Tilly should then leverage word of mouth and ask her new
clients to refer her to some of their other friends and family
●
Market her service:
Tilly should use Facebook ads to select a very specific customer segment of
mothers in Vaughan that she believes would desire her service. She should also post her service
on the Facebook marketplace as well as local newspapers and coffee shops
●
Create
an
eye-catching
website
:
Tilly
should
supplement
her
advertisements
with
a
well-designed website where her potential customers can find more information about her and
what she has to offer.
Appendices
Appendix A: Decision Matrix
Criteria
Weight
Full House
Makeover
Private customized
cleaning services
Organizing service
for Startup
companies
Competitive Advantage
40%
4/5
1/5
3/5
Revenue
10%
3/5
2/5
2/5
Operational Flexibility
30%
3/5
4/5
2/5
Risk
20%
4/5
4/5
2/5
Total
100%
3.6
2.6
2.4
Appendix B: Importance/Urgency Matrix
Important & Not Urgent
●
Deciding to hire an assistant
●
Promoting Totally Tidy’s brand awareness
Important & Urgent
●
Determining her point of differentiation
from other companies in the industry
●
Ensuring internal operational flexibility
and Tilly’s personal flexibility
Not Important & Not Urgent
Not Important & Urgent
●
Defining her customer segment (moms)
and the cities she will offer her services to
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