Harvard Case - MP Maintenance: Developing a Marketing Strategy for a Social Enterprise
"MP Maintenance: Developing a Marketing Strategy for a Social Enterprise" Harvard business case study is written by Kyleen Myrah, Kerry Rempel, Dean Warner. It deals with the challenges in the field of Marketing. The case study is 19 page(s) long and it was first published on : Jun 3, 2019
At Fern Fort University, we recommend MP Maintenance implement a comprehensive marketing strategy focused on building brand awareness, establishing credibility, and driving customer acquisition within the target market of underserved communities. This strategy will leverage a multi-pronged approach encompassing digital marketing, community engagement, and strategic partnerships to achieve sustainable growth and social impact.
2. Background
MP Maintenance is a social enterprise providing affordable and accessible maintenance services to low-income communities in the Boston area. Founded by two experienced professionals, the company aims to address the lack of affordable housing maintenance options, particularly for vulnerable populations. The case study highlights the company's initial success in serving a niche market but also underscores the need for a more robust marketing strategy to expand its reach and impact.
The main protagonists of the case study are the two founders, who are passionate about their social mission but lack experience in developing a comprehensive marketing strategy.
3. Analysis of the Case Study
To analyze MP Maintenance's situation, we will employ a SWOT analysis to identify internal strengths and weaknesses, as well as external opportunities and threats.
Strengths:
- Social mission: MP Maintenance's commitment to serving underserved communities is a strong differentiator and resonates with potential customers and partners.
- Experienced founders: The founders' expertise in the maintenance industry provides a solid foundation for service quality and operational efficiency.
- Positive word-of-mouth: Initial success has generated positive feedback and referrals within the target community.
Weaknesses:
- Limited marketing resources: The company lacks a dedicated marketing budget and expertise.
- Lack of brand awareness: MP Maintenance is relatively unknown outside its immediate service area.
- Limited online presence: The company's website is basic and lacks a comprehensive digital marketing strategy.
Opportunities:
- Growing demand for affordable housing maintenance: The need for affordable housing repairs is increasing, presenting a large potential market.
- Partnerships with community organizations: Collaborating with non-profits and social service agencies can expand reach and access to target customers.
- Digital marketing channels: Utilizing social media, search engine optimization (SEO), and targeted advertising can effectively reach potential customers.
Threats:
- Competition from established maintenance companies: MP Maintenance faces competition from larger companies with more resources.
- Economic downturn: A decline in the economy could impact the affordability of maintenance services for low-income communities.
- Negative publicity: Negative reviews or incidents could damage the company's reputation.
4. Recommendations
Marketing Strategy:
- Define Target Market: MP Maintenance should clearly define its target market segments within underserved communities, focusing on specific demographics, needs, and preferences. This will enable tailored marketing efforts and messaging.
- Develop a Strong Brand Identity: Create a compelling brand identity that reflects the company's social mission, values, and service offerings. This includes a strong brand name, logo, and messaging that resonates with the target audience.
- Build a Robust Online Presence: Develop a user-friendly website showcasing services, testimonials, and community engagement initiatives. Implement SEO strategies to improve online visibility and attract potential customers.
- Leverage Digital Marketing Channels: Utilize social media platforms, targeted online advertising, and email marketing to reach the target audience. Create engaging content highlighting the company's value proposition and social impact.
- Engage in Community Outreach: Partner with local community organizations, non-profits, and social service agencies to reach potential customers and build trust. Participate in community events, offer workshops, and provide educational resources on home maintenance.
- Develop Strategic Partnerships: Collaborate with complementary businesses, such as housing agencies, property management companies, and home improvement retailers, to expand reach and access to new customers.
- Implement a Customer Relationship Management (CRM) System: Track customer interactions, preferences, and feedback to personalize communication and improve customer retention.
Marketing Mix (4Ps):
- Product: Continue to offer high-quality, affordable maintenance services tailored to the needs of underserved communities. Consider expanding service offerings to include additional home improvement services or preventative maintenance programs.
- Price: Maintain competitive pricing while ensuring profitability. Explore flexible payment options, such as installment plans or sliding scale pricing, to cater to diverse financial situations.
- Place: Expand service area to reach more communities. Partner with local businesses or community centers to establish convenient service points.
- Promotion: Implement a multi-channel marketing approach, including social media, online advertising, community outreach, and public relations. Develop engaging content that highlights the company's social impact and customer testimonials.
Key Initiatives:
- Launch a Community Engagement Campaign: Organize a series of events and workshops focused on home maintenance, safety, and energy efficiency. Partner with local community leaders and influencers to promote these initiatives.
- Develop a Social Media Strategy: Create engaging content that showcases the company's work, customer testimonials, and community impact. Utilize social media advertising to reach a wider audience.
- Implement a Referral Program: Encourage existing customers to refer new clients through incentives and rewards.
- Partner with a Local Non-Profit: Collaborate with a non-profit organization serving the target market to offer discounted services or provide pro bono work.
5. Basis of Recommendations
These recommendations are based on a thorough understanding of MP Maintenance's strengths, weaknesses, opportunities, and threats. They align with the company's core competencies, mission, and target market needs. The proposed strategies are designed to be cost-effective and scalable, leveraging existing resources and exploring new opportunities for growth.
The recommendations consider the following:
- Core competencies and consistency with mission: The marketing strategy aligns with the company's mission to provide affordable and accessible maintenance services to underserved communities.
- External customers and internal clients: The strategy focuses on reaching target customers through community engagement and digital marketing channels while also supporting the founders' vision for social impact.
- Competitors: The strategy considers the competitive landscape and aims to differentiate MP Maintenance through its social mission, affordability, and customer service.
- Attractiveness: The recommendations are expected to generate positive ROI through increased customer acquisition, brand awareness, and community engagement.
6. Conclusion
MP Maintenance has a strong foundation for success, but a well-defined marketing strategy is crucial for achieving sustainable growth and social impact. By implementing the recommendations outlined in this case study solution, the company can effectively build brand awareness, establish credibility, and drive customer acquisition within its target market. This will enable MP Maintenance to expand its reach, serve more communities, and fulfill its mission of providing affordable and accessible maintenance services to those in need.
7. Discussion
While the proposed strategy focuses on a multi-pronged approach, alternative options could include:
- Focusing solely on digital marketing: This approach could be more cost-effective but may not be as effective in building trust and relationships within the target community.
- Partnering with a larger maintenance company: This could provide access to resources and expertise but may compromise the company's social mission and independence.
The key assumptions underlying the recommendations include:
- Continued demand for affordable housing maintenance: The strategy relies on the assumption that the need for affordable maintenance services will continue to grow.
- Effective implementation of marketing initiatives: The success of the strategy depends on the company's ability to execute marketing plans effectively and measure results.
- Positive community response: The strategy relies on the assumption that the target community will embrace the company's mission and services.
8. Next Steps
Timeline:
- Month 1: Develop a comprehensive marketing plan, including budget allocation and key performance indicators (KPIs).
- Month 2: Launch a community engagement campaign and establish partnerships with local organizations.
- Month 3: Develop and launch a new website and social media presence.
- Month 4: Implement targeted online advertising and email marketing campaigns.
- Month 5: Track results, analyze data, and adjust marketing strategies as needed.
By following these recommendations and implementing a comprehensive marketing strategy, MP Maintenance can effectively reach its target market, build brand awareness, and achieve its social mission of providing affordable and accessible maintenance services to underserved communities.
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Case Description
MP Maintenance was a social enterprise composed of several micro-businesses (landscaping, window cleaning, pressure washing, graffiti removal, litter pick up, etc.) offering transitional employment to individuals previously living on the streets. Like many budding social enterprises, MP Maintenance needed to carefully balance the organization's social mission and the financial competitiveness of the services that it offered. In May 2016, Matt Smedley, executive director and chief executive officer, and David Greaves, general manager, sat together in the company board room awaiting the arrival of the four college students who had agreed to help them develop a marketing strategy. Their common goal was to enable the social enterprise to continue to deliver on its mission - supporting the employees of Mission Possible - while generating an unrestricted flow of revenue. After seven years spent establishing and growing the business, a fresh set of eyes was welcomed.
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