HodgePodge has identified two distinct segments of the population that are consumers of a sealcoating service. HodgePodge will have one marketing campaign that will reach both populations.
HodgePodge's market can be segmented into two groups:
HodgePodge's strategy for reaching these people will be based on a series of advertisements in the local paper. Within the metro section of the paper there is an area where local service providers advertise. This section appears to be well received by the readership as people of the community often refer to this section when they are trying to find a service provider.
In addition to the advertisements, HodgePodge will also have a yellow pages advertisement. Lastly, HodgePodge will leverage word of mouth referrals. HodgePodge will create an economic incentive for current customers to make a referral for a new customer. While this will take a small amount away from profit margins, it will build a loyal customer base for successive years.
The sealcoating business is made up of primarily independent contractors, larger paving companies, and a few franchises. In general the bulk of the business is from independent contractors.
The sealcoating industry is made up of independent contractors that do paving and sealcoating, as well as two sealcoat specific companies, Dura-Seal and Sealer King.
The buying patterns of consumers are typically based on price and and perceived customer service, with an emphasis on price. Price is emphasized is because there often is little to differentiate companies based on the actual product (because the customer is not aware of the seal coating materials until the job is done and even then it is very difficult for the consumer to perceive a difference) and in general the industry is not known for its stellar customer service.