Business Report for a Service Provider

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Business Report for А Service Provider

Business Report for А Service Provider


Grace Removals is one of Australia’s largest removal and relocation service companies that were started in 1884 as a retail shop by two brothers (McMullen & Penrith, 2008). Initially, the founders believed that blending a strong work ethnic and quality customer service would elevate the business to one of the world’s largest entities. Their main target was people who were relocating from the urban areas into the suburbs. Since conception, the business has realized popularity among the public for its exemplary performance and services in the moving sector. In the recent past, the company allocated branches in different countries that deal with home, corporate and commercial moving services. However, the company owes its success to the business strategies it has put in place pertaining to the target market segmentation and the marketing procedures.


Characteristics of the Target Market

Identifying the target market is an important part in business since it will enable a company to determine the goods and services that the market desires (Dibb & Simkin, 1996). Considering the variety of services that the company offers, Grace Removals focuses on a number of markets. It selects the target market based on the demographics and the behavior of the public (Lamb et al., 2011). For instance, they will select a market based on the moving house analogy where the clients desire local moving, long distance moving, interstate removals, packing, delivery, home service and storage. Another target market that ay be identified would be based solely on corporate relocations. Grace Removals will allocate resources to moving companies, government agencies, mobility programs and industry leadership as part of the corporate relocation market. They may also identify the companies and people that desire commercial relocation such as moving offices, specialist relocations, logistics and storage and asset management. The target market needs to fall under the above classifications to qualify as clients of Grace Removals.

Criteria for Segmentation

In terms of market segmentation based on age, Grace Removals targets people who move from the towns and cities into the suburbs. Most of the people who fall in this category are the aged and people with developed families that desire a change in environment. The aged often have a certain perception of their homes in a way that the modern homes may not. Therefore, Grace Removals is careful enough to consider the desires and needs of the aged to ensure customer satisfaction. Similarly, Grace Removals also targets new couples and families that possess vast amounts of lands in the suburbs. A children filled market is not likely to require any moving services as they are focused on other aspects (Moschis, 1996).

In terms of gender, Grace Removals targets all kinds of people. Separating the market based on gender may leave an opportunity ignored that would have rather generated profit. Nonetheless, the company is able issue different services to different genders (Baines, Fill & Page, 2010). For instance, moving services for female clients may be more systematic considering the complexity in goods and services being offered. For males, the moving procedure may be unique based on the goods under consideration. However, for such markets, unique prices may apply.

People who live in the city are often regarded as high-income earners considering their ability to match up to the prices and living standards. Although this perception may be true, it is questionable as some families and people have to struggle to meet the city requirements. However, Grace Removals tends to target middle-income earners as well as high-income earners if the company is to make a different in the profits. Therefore, they are likely to base their operations on the uptowns and fast growing cities (Strydom, 2004).


Market segmentation in terms of occupation places close concentration on the education background. As much as schools and businesses offer courses and experience on certain skills, they encourage personal development. With the positive perception regarding the education system, more jobs tend to emerge as people intend to meet the demand by companies for more employees. Thus, discretionary income is likely to increase making it possible for people to spend more on goods and services (Lancaster & Massingham, 2011). In respect to this, Grace Removals targets people with stable income that display a high affinity for a better life. People with no significant occupation are less likely to move a lot. Similarly, Grace Removals targets people who have traveling jobs that ensure they are always on the move. For instance, managers and police officers tend to shift stations therefore warranting the services of a moving company.


Psychographic segmentation describes dividing the market based on consumer personality traits, values, attitudes, lifestyle and interests. Often, people display different feelings and attitudes towards a certain location. For instance, the health and sanitation factors that tend to eliminate a location fro habitation are likely to be market segments that Grace Removals may explore (Doole & Lowe, 2005). The environment in terms of geographic placement makes people more conscious and any perceived threat is countered through moving. Grace Removals aims at exploring such areas.

Family Life Cycle

The family life cycle takes the perspective that the next generation will take over the family legacy. This includes family property such as land and housing in the suburbs. Therefore, Grace Removals aims at ensuring that the changes in the family life cycle are catered for through moving services.

Marketing using the 7Ps

Grace Removals markets its products through the quality services it offers and the vast services it deals with. Once a consumer is satisfied with a service or product, the marketer will define ways of blending it with the market mix to create a successful venture (Pride, Hughes & Kapoor, 1999). Grace Removals tends to improve its services in the transporting of clients goods.

Grace Removals ensures that it associates with the public to determine the type of services that they desire. Through this marketing mix, they are able to satisfy the consumer as they build a positive reputation. They are also sensitive on the welfare of the employees in the company (Paley, 2005).

Price promotion often takes a different approach in the case of Grace Removals. The price is associated with various aspects such as distance, goods being transported and the transportation means.

Once a consumer identifies that the moving procedures carried out by Grace Removals are smooth and strategic, they are likely to source such services in the near future (Paley, 2005). Blending process elements with the other promotion mix strategies builds customer confidence.


Improving the 7Ps

As much as the market mix is a growing topic, Grace Removals can work to improve its strategies in the moving sector. Blending the marketing mix into their vision and mission objectives will enable Grace Removals improve on the 7Ps and realize maximum returns (Paley, 2005).

Possible Service Failure

The possible service failure that would occur to the company would be the effect of a credible competitor that offers services to a variety of markets as well as covers a diverse geographic location.

Recovery Strategy for the Failure

The effect of competitors may imply failure on the part of Grace Removals to meet the needs of the market. Therefore, Grace Removals needs to identify the gaps in the moving industry and design a mitigation system that will counter such a failure. Introducing new system and diverse investments would suffice as a mitigation strategy.

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Baines, P., Fill, C., & Page, K. (2010). Marketing. Oxford: Oxford University Press.

Dibb, S., & Simkin, L. (1996). The market segmentation workbook: Target marketing for marketing managers. London: Routledge.

Doole, I., & Lowe, R. (2005). Strategic marketing decisions in global markets. London: Thomson Learning.

Lamb, Charles W., Hair, Joe F., & McDaniel, Carl. (2011). Essentials of Marketing, 7th + Marketing Coursemate With Ebook and Career Transitions Printed Access Card. South-Western Pub. Bottom of Form

Lancaster, G., & Massingham, L. (2011). Essentials of marketing management. London: Routledge.

McMullen, S. J., & Penrith, D. (2008). Live & work in Australia. Lanham, Md: Crimson. Bottom of Form

Moschis, G. P. (1996). Gerontographics: Life-stage segmentation for marketing strategy development. Westport, Conn: Quorum Books.

Paley, N. (2005). The manager’s guide to competitive marketing strategies. London: Thorogood.

Pride, W. M., Hughes, R. J., & Kapoor, J. R. (1999). Business. Boston: Houghton Mifflin Co.

Strydom, J. (2004). Introduction to marketing. Cape Town, South Africa: Juta.