Introduction

Background
The study of demographics has helped many U.S. companies excel in reaching the
appropriate clientele. Finding and keeping the right set of customers is so important for
progression to all companies. Put simply, to retain customers the attraction level must be better
than the rest. Retail experts say the progressive steps for any sale are attention, interest, desire,
conviction, and the close. In the car wash industry they must attract attention, stimulate interest,
and create the desire upon which sales can build a foundation to persuade a customer to buy
again and again. (Sachdeva, page 4) Fabulous Freddys must find the desires and interests of the
college students in order to
The right marketing tools will be the key to success when looking at what exactly this
company is trying to accomplish. Freddys needs to focus these tools on the right consumers. The
company does not have enough clientele from the age group 18-25, and according to the
demographics this age group has a good portion of St. Georges population. Having worked for
two years at this firm I noticed that the average customer always seemed to be older than 30 and
that very few college students or college age students came in very few times. After discussing
this with my manager it was established that the specific target market for the age group of the
college students were close to forgotten. Knowing how tight a budget is for a person going to
school (being one myself) I knew this is the main reason why more people of the discussed age
group choose not to get their car washed.
Problem
Fabulous Freddys experiences a lack of customers from the age group of 18-25 more
than it does any other age group. They do attract this age group but they tend to lose the new
clientele just after one visit. There must be various factors that are unattractive to these
customers, and this is what needs to be changed. The desires of this college age group are not
being met properly and this is the underlying problem. Demographic profiling on this age group
show that they make up around 30% of St. Georges population. The Population total of St.
George is close to 76,000. Taking 30% from 76,000 is 22,800.Another number to consider is the
enrollment total for Dixie State University which is about 10,000. Considering these numbers its
a big market that Fabulous Freddys is not utilizing fully.

Purpose
The purpose of this report is to show that the issues Fabulous Freddys is experiencing
can have a solution. The issues of getting and keeping the target age group of college students as
consumers. The problem of retaining these customers is the issue at hand and they must change
certain aspects of the advertising and the workplace environment. Such changes are to allow
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certain discounts to college students, through coupons, frequent consumer benefits, and enter to
win drawings for prizes. The increase of targeted clientele and the retaining thereof is the overall
objective of this report.

Scope
This report explores demographics profiles in the city of St. George, UT and suggests
ways for Fabulous Freddys to compete successfully in the car wash industry. The environment
will be adapted to the particular clientele found in St. George. The advertising will be improved
to have the discussed target market that the car wash needs to improve on. Specific ideas will be
suggested to implement to maximize the car washs resources.

Discussion
Product and Service Attraction
Service or product attraction is different for everyone and the age difference is the main
reason for this. It may be difficult for a company to provide such an attraction if they have not
done any research on the trends of todays market. The demographics of a certain region can help
the process along in research for finding who customers can be and how many they are.
Knowing the numbers is vital for spending money on advertising. Since we know Freddys needs
to increase the consumption from 18-25 year olds then we know they are who we must target.
Freddys can increase its gross margin significantly if they have the correct target market. Other
factors must be in consideration like the pricing of the car wash, and they availability of
receiving discounts. Like the starving students discounts available Freddys needs to implement a
college students budget discount for car washes.
Many different techniques can be used to attract this target crowd we have talked about,
another way would be to have promotions that entail specific discounts on certain days of the
week. The discount would include if you are a student at Dixie State University and you have a
certain brand of car than you receive 50% off a basic car wash. For example they could have a
Ford Friday or Chevy Tuesday and those who show student ID and have a Ford would be
able to come in and receive the discount on that day. There is a trick to this process that benefits
Fabulous Freddys which is that the daily deals can only be seen when actually visiting the store,
this way the college students would have to come in personally to verify the days. The students
would then be in the store and more likely to buy something from the gas station. This daily deal
idea creates a trend that college students would be willing to get into, as the deals change daily
the interest for washing college students cars would grow exponentially.
Implementing new promotions can really increase the CRM (customer relationship
management) the importance of this is illustrated by Dyche CRM is the infrastructure that
enables the delineation of an increase in customer value, and the correct means by which to
motivate valuable customers to remain loyal indeed, to buy again. Companies have been forced
to become smarter about selling, and this means becoming smarter about whos buying. (Dyche,
pages 4-5) I know that this is a smarter way to sell and a great way to gain loyalty from that
specific age group.
The same age group of 18-25 that are not attending the college also must have a specific
promotion that will get them involved as much if not more than the college students. The idea
would be to give a free car wash to someone who gives 3 referrals for the car wash. Proof for this
would be to have a confirmation text verifying that the referrals have been notified about the car
wash. The people referred would also receive a 15% discount if they themselves came into the
car wash. This would get many friends and family involved with the car wash. This is a basic
rewards program that would really be effective for the young age groups.

Demographics of St. George

The importance of studying the age demographics for this incident is so enormous. I have
researched many sites on the age demographics of St. George and I have used a combination of
those sites to generate a number that I know is close to accurate. This number being the
percentage of people in St. George that are between the ages of 18-25 and I have come up with
the average of about 30%. The chart below gives the accurate numbering from ages 15-19, 2024, and 25-29 so a perfect range of 18-25 does not exist. Another site gave me a closer estimate
but was also a few years out of date. In the city the age distribution of the population shows
28.4% under the age of 18, 13.7% from 18 to 24, 22.0% from 25 to 44, 16.8%. (Wikipedia,
page 1) If there is any opposition in why we should use this demographic profile there is much to
be said in favor of it. Whether the product's demographic appeal is intentional or accidental,
gathering detailed information about who is buying the products will help attract similar
customers in the future; customers who will likely purchase the offerings for many of the same
reasons. (Gartenstein, page 1) After gathering the age demographics from the city that Fabulous
Freddys is found in it is easy to see how the research of these numbers shown in Figure 1 can be
used to manipulate your target market and your target advertising.
Figure 1

The other chart that entails important information is the income chart. This also gives a
rough number of about 30% of peoples income is less than 40,000 dollars. I know that this has a
direct correlation with the age group I have talked so much about. The people under the age of 26
are much more likely to fall under this category of income that is less than 40,000. This statistic
tells us that the need for Fabulous Freddys to create new discount programs is the main factor
that will bring in the desired market segmentation.

Desires of the Customers

The desires of customers is very difficult to measure, the way Fabulous Freddys can look
into this is through the customer satisfaction. Based off of how satisfied customers are they can
get an idea if they will desire the service again, if they are well-pleased then it is likely that they
will return. As I have researched experts have concluded that some customers dont have a strong
loyalty towards any given company, the only real way to get them back to the store is to have a
win-back offer with the price. A story being told about customers who were not loyal but that
could be brought back through win-back offers was told by Kumar and he gives his conclusion
on the subject Because these customers were lured away by competitors, they likely had little
commitment to the firm. They are likely inherently less loyal to firms in general and will
probably respond to the firms win-back offer if it is in their interest. Because they are aware of
the price the firm is offering through the win-back offer, they will perceive little risk in returning
to the firm so long as they view the win back offer to be attractive. (Kumar, page 4) When
Freddys loses customer loyalty they must simply look back at what brought those customers by
in the first place. By offering a low price win-back is a very good solution to keep them coming
more frequently, they can do this by offering new discounts for loyal customers. This means that
the discounts that have been directed at our target group must be ongoing and changing for the
circumstances. Implement a reward program that gives a free car wash for every 10 washes, and
accumulates points that can be used as currency once the desired amount is acquired.
Customer satisfaction is monitored very well at Freddys, the managers and supervisors
ensure that all the needs are taken care of when talking to the customers. The supervisors go over
everything that was done to the car with the owner of the car, this ensures them of the quality
performed and the opportunity for the owner to ask for additional services or improvement on
services. This service rendered is the underlying factor to maintain a customer loyalty that gives
the firm a string marketing tool that will produce growth. After numerous studies underscoring
the tremendous advantages of customer loyalty, as well as a variety of customer loyalty programs
implementing the actual practice across a horde of different industries, customer loyalty has
emerged as a new age marketing tool that can turn around the profitability and growth metrics of
a firm. (Srivastava, page 3) Freddys can have a competitive advantage on other car wash firms
in the city of St. George if they maintain this customer loyalty through fabulous customer
service.

Conclusion
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The relevance of studying the demographics of a city has been shown and how those
number should be interpreted. Experts have given convincing evidence that knowing your
market can ultimately increase the profitability of the firm which is the end goal of this report.
The target market for the age group of 18-25 is a very large group in St. George and they are not
being fully utilized at this moment. The implementation of the findings in the report will give a
good foundation on the ways how to bring them to the car wash and how to keep them returning.
Discount programs are the best suggestion for attracting the young crowd and satisfies their
desires by not stretching their wallets too far. The desires are also fulfilled when these
promotions get the students at the college involved.

Recommendations
By implementing the following recommendations, which are based off of the research
done in this report, Fabulous Freddys Car Wash can succeed in acquiring the target group from
the ages of 18-25 which they lack. The profitability will increase if this target market consumes
the services rendered at Fabulous Freddys.
1. Study and research more tactics on CRM and continue to use these methods as the
trends of the younger generation continues to change.
2. Attract the college students with the discount program of daily deals and frequent
buyer prizes.
3. Keep up on the demographic statistics on this age group to monitor any increases or
decreases that can affect the business.
4. Create the referral program that involves the non-college people of the same age
group and their associated friends.
5. Maintain a high level of customer satisfaction and customer service that maintains a
competitive advantage over other firms in the same industry.
6. Maintain customer loyalty through win-back promotion prices and the rewards
program

References

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Business Guide to Customer Relationship Management (6th ed., pp. 4-5). Boston:
Addison Wesley.
Gartenstein, D. (2015). The importance of demographics to marketing. Retrieved November 5,
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Kumar, V., Bhagwat, Y., & Zhang, X. (2015). Regaining lost customers: The predictive power
of first-lifetime behavior, the reason for defection, and the nature of the win-back offer.
Journal of Marketing, 79(4), 34-55. Retrieved November 5, 2015, from EBSCOhost.
Sachdeva, I., & Goel, S. (2015). Role of store atmospherics on customer experience. 2(3), 72-83.
Retrieved November 4, 2015, from EBSCOhost.
Srivastava, M., & Rai, A. (2015). Evidence on customer loyalty relationships: An appraisal. The
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VandenBosch, E. (2015). Long Report [PowerPoint Presentation]
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(2014). Retrieved December 3, 2015, from http://www.utah-demographics.com/stgeorge-demographics
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