Cintas Corporation Case Study

Spring 2017 TU Strategy Capstone Case
Competition
Strategic Management Live Case Challenge
Cintas Corporation Case Study

Team TTT: Dana Berghahn, Mike Berry,
Jennifer Gross, Brittany Korines, Marvin
Ramiro
Agenda
Cintas Opportunity Resource Requirements

Resource Potential of SSRs Tactics
Porters 5 Forces Analysis
Barriers and Threat of
Imitation
SWOT Analysis
Corporate Alignment
Strategy
The Future of Cintas
Milestones
Q&A
Cintas Opportunity
To increase sales in the Cintas catalog from existing customs in the restaurant industry
Optimize Resource Potential of
SSRs
Growth SSRs
Porters Five Analysis for Cintas
What are 'Porter's 5 Forces?
1. Competition in the industry

2. Potential of new entrants into the industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products
Source: http://www.investopedia.com/terms/p/porter.asp
Internal Analysis of Cintas
Strengths
Largest Company in the

Industry - Market Leader
Broad Product and Service

Portfolio
Outstanding Performance
Weaknesses
Legal Proceedings
Focus on One Product or
Service
Dependence on suppliers
External Analysis of Cintas
Threats
Main Competitors
Unifirst, Aramark
Increased Cost of Raw
Materials
Directly Tied to the
Market
Opportunities
Expand Globally
Target The Other

Industries
New Promotions and

Advertising
Proposed Strategy
Loyalty Rewards
Program
Data Analyzing
Marketing
Techniques
Loyalty Rewards Program
$1 = 1 point; every 1000 points

= $100 off next order
Every month a featured item will
be worth double points (i.e. gloves,
trash can liners, etc.)
Identify products that are bought
multiple times and offer discounts
on future purchases to create
incentives to build brand loyalty
Milestone: Year One
Manager Requirements:
Find a marketing intern and data analyst
intern through Towson University
Learn about the Unpaid internship
program - class credit (through the BUSX
460 - Professional Experience class)
Write announcement for both intern
positions, review resumes, conduct
interviews, go through the hiring process
to select 2 interns, begin training process
for both new employees
Milestone: Year Two
Marketing Intern: Revamp and advertise
website & contact restaurants to tell them
what the new loyalty rewards program is
Analyst Intern: Find data trends within each
individual restaurant on who is ordering
multiples of those items- send them coupons
based on those items to create a greater
chance of repetitive buying
Manager Requirements: Monitor interns
performance & help where is needed when
reaching out to past and present clients
Budget: Paid internship $5,000 a semester per
Milestone: Year Three
Marketing Intern: Expanding the
knowledge of the loyalty rewards program to
new restaurants & keep the brand loyalty
with present customers
Analyst Intern: Continue tracking trends
and sending out coupons to valued customers
with repetitive purchases
Manager Requirements: Continue
monitoring interns, looking to hire
permanent employer for marketing and
analyst positions
Resource Requirements
$45,000 3-year
budget: Training
- $40,000: Part-time Incentives
summer/winter Technolog
interns salary for 3
years y
- $5,000: Marketing
Marketing
techniques including Data
sending out
promotional codes
Analysis
Potential Tactics
Price matching Ancillary industries

Training Diversify product offerings
Incentives (discounts, etc.) Growth in different industries
SSRs Extended warranties
Exclusivity Advertising
Mergers New Taglines
Technology Customer assistance
Market your product
B2B versus B2C
Tactics
Barriers to Imitation
io n io n
t at t at
i i
Im Im
Barriers and threats to Imitation
Cintas holds substantial market share
Distribution networks - including 6 manufacturing plants
and 8 distribution centers
Experience of SSRs
Relationships with customers
Extensive supplier base
Established trust of shareholders
Relationship with community - environment, diversity,
citizenship, and safety
Cintas Most Valuable Asset
Its culture - a culture that encourages meaningful, respectful
relationships between the company and our employee-partners
and the commitment to always do whats right.
This spirit of teamwork, camaraderie and trust has become our

most important competitive advantage and is a cornerstone of
the Cintas culture.
http://www.cintas-corp.com/company/
Corporate Alignment
The sky's the limit!
Q&A
References
http://www.lexisnexis.com.proxy-tu.researchport.umd.edu/lnacui2api/mungo/docEP.do?
cmd=2E43463B474D44434F4D3B444F432D49442823313930353553574F5423293B2E4655&docNo=13&risb=2
1_T25787008378&cmdfmt=prthex&twi=0&format=GNBFI
http://www.cintas.com/pdf/cintas-10k-2015.pdf
http://eds.a.ebscohost.com.proxy-tu.researchport.umd.edu/ehost/pdfviewer/pdfviewer?sid=4acf16f5-41ff-4fee-
ac75-b0dde3074962%40sessionmgr4010&vid=9&hid=4113
http://eds.a.ebscohost.com.proxy-tu.researchport.umd.edu/ehost/pdfviewer/pdfviewer?sid=be9a175f-6432-47a4-
8bf9-e99874fb5e82%40sessionmgr4006&vid=1&hid=4113
http://www.lexisnexis.com.proxy-tu.researchport.umd.edu/lnacui2api/results/docview/docview.do?
docLinkInd=true&risb=21_T25787008378&format=GNBFI&sort=RELEVANCE&startDocNo=1&resultsUrlKey=29
_T25787008382&cisb=22_T25787008381&treeMax=true&treeWidth=0&csi=401035&docNo=7
Barriers to Imitation
Obstacles for competitors to imitate the strategy are fully
identified and are justified with clear logic.
Threat of Imitation:
Explain why competitors in this line of business will find it costly to
Obstacles and cost constraints for competitors
imitate tothis
imitate the
strategy
strategy are fullyaddressed.
Figure our what gives Cintas their competitive advantage?

New tagline Ready for the Workday
Communicates the value we provide our customers by addressing their
business needs with our broad range of products and services
Attitudes of the SSRs really keep the customers coming back
How can Cintas differentiate themselves in the market?
Keep valuing their customers
Maintain positive attitudes
Stay motivated throughout each quarter
Custom ink.com, amazon, with the website's less ability to you're just looking at a picture, businesses go visit
other establishments, get them sample uniforms, sample hats, they can touch and feel. Already have a 100%
satisfaction guarantee, make it right or give them a refund.
New catalog coupon free logo, free hat, give it to them for everybody. Appreciation to existing customers,
different items for new customers. t-shirt promotions to try to gain more customers and to keep current
customers happy.
Area of opportunity, slip resistant shoes for kitchen staff, gloves, aprons, shirts, polos, hats, embroidered chef
coats, top restaurant direct sale items. Sell and rent all items. Gain revenue on catalog side. Facility
maintenance, roller trash cans, trash liners, need to get in that business, repeat sales, focus on repeat sales,
think of the things that are repeat items.
Expand social media presence to appeal to younger generation. Facebook, linked in, you tube, twitter. Stay
true to core, know competitive advantage. For this case, focus on best utilizing SSR, stay true to who you are
and your strengths.
Improve internal training, people comfortable with a product, better at selling a product, right?
Ease, quality service, bring items to the customers, makes it easier and more convenient than them going to
Walmart or dealing with amazon and not liking it when it comes in.
Gloves great recurring sale, but quality item, a lot of competition for that, you can get gloves from a cheaper
source, the less specialized the product is, verses a black vintage chef coat that has a logo embroidered on it.
Better market the ease and convenience that they dont have to worry about that inventory, since they are
already there every week providing uniforms, there is a peace of mind that you can better capitalize on for
that business with gloves.
Targeted industries catalogs (healthcare, hospitality, industrial, focus on restaurant now). Find out what
products they are buying, interview restaurants. What are they buying.
Advantageous to have for free, maybe they want free aprons, free gloves, if cintas give us the gloves, well give
If we service all of your needs, you can get 10% off, if you become our business partner
Know who you are, primarily a uniform company, if you get into too much stuff that you don't have a speciality in, it will be difficult to
compete. Be cautious that your not too late in the game, and you might not have a competitive advantage. Dont wanna get away from what
you know you can do well. So we decided to focus on your existing ssr.
Giveaways, discounts, promotional items, week of free service, be a valuable partner for your customers so incentives sometimes make
sense.
Gloves, trash can liners, repeat items, but thats much more competitive, but those would be good items to focus on selling.
Improve catalog sales, but no set target. Balance of having repeat sales products, then the higher revenue of the embroidered garments that
dont repeat but makes more sense as why they come to cintas. Because thats your speciality.
How do you train your ssr sales, catalog manager is very involved, catalog manager sits down with new hires and shows them how to put it
in the computer, how to do things right for our customers. As soon as you're hired, extensive hiring process, we want to hire the greatest of
the greatest to do this job. Then they ride with an SSr to get a feel for it. On the job extensive training. Nothing like hands on experience.
SSRs incentivized that the more they sell the more they make.
SSRs day manager, prep cook, kitchen cook, meet with. This is important to know, to know how to drum up more business.
Give the ssrs promotional items, when they are wearing that product, they believe in that product. Go into a restaurant and theyll say I like
those boots, well we have these boots, and they are non-slip. Etc. go off script, when the time calls for it
Drivers can control their pace, customer always comes first, if he has to go back to customer, he does have the flexibility to do so
Call customers ask for feedback, and that feedback is shared with the rest of the cintas team
Local embroiderers and online retailers is where there real competition is.how do you make the fact that they are there every week a way
to create more revenue
Automatic advertisement that goes out to companies to yellow pages companies that use uniforms, send an automatic advertisement to each
company's website send an email with their catalog link send a link each week to the catalog to each existing customer
Employee incentive program, whoever sells the most.
Seasonal items and catalogs, seasonal incentives
Offer payment plans
Brand marketing, wear cintas products.
Instead of selling at 30, sell it at 29.99, its all in how you perceive it. Studies have shown that customers often associate items ending in a 9
as products. www.shopify.com
Strategy for selling, exclusivity package, if u are an exclusive customer to cintas then you get something
Servicing more customers today than you ever have as a company.
Stats show they are more loyal for the more services that you offer right. Invested partnership and collaboration, feel like your business partners
with them, versus just a distributor of products.
Sit down with the company one time, save the logo, so it makes it really easy for that business owner going forward to do business, because all they
have to say is we need more shirts with logos, etc.
Catalog sales for new clients, ssrs presenting the material focus on this. Cintas is already there, go to catalog order it, the next week, youll have all
items that you wanted to feel touch, etc. Advantage is quick turnaround rate
Dictated by corporate headquarters, but when you have a local restaurant you have a lot more flexibility, more choice in logo, style, Cintas gets to
develop a look, more creative flexibility to design these items, love local small owned businesses.
Measure customer satisfaction metrics look at customer retention rate, , etc.
Disadvantages: high pricing, advantages best value, customer service, convenience
Core business is rental aprons, towels, etc. on the catalog side potential for direct sales for a restaurant, gloves, trash can liners, kitch shoes from
us, well throw in free chefs kits for all your chefs
If you order through our catalog, well offer you ___
Offer discounts for longer commitments stay with us all year exclusively, you get things for discounted prices
For new customers referral programs, always looking for new opportunities, anybody that will benefit from a uniform program or a mat program.
Do a slide on lost business and to what companies
how to improve your lost business, as you have been doing in recent years
Go over the budget
Ideas on how to spend the budget you have and how much they should cost
3-year plan to increase catalog sales with restaurants
We would like to discuss how to accomplish this 3-year plan by not only gaining new customers but also with a specific focus on how to
get more business from existing customers in the restaurant industry through the Cintas corporation magazine.
Increasing Penetration
Identify products or services the customer could buy
but doesnt.
Develop a plan for expanding your pool of contacts
within the account.
Keep trying to add value in all of your customer
contacts.
Give customers ideas on how to improve their
business operations.
Make customers feel they have a special relationship
with you.
Developing a Plan of Action
Flush out customer needs and try to determine how theyre being met now.
Recognize that the key to selling more to existing customers is in your after-sale support.
Let your customers know why theyre smart to increase their business with you.
Find out how customers feel about competitors who have the business youre trying to get.
Look for ways to advance the level of trust.
Implement a program for growing customers as aggressively as if it were a prospecting effort.
Source: http://www.customerexperienceinsight.com/sales-training-ways-to-sell-more-to-existing-customers/
Building Credibility and Trust
Be a true consultant for your customer..
Talk results with customers..
Be innovative..
Do your homework.
Focus on results and relationships.
Go to school on your competitors.
View each customers company as a market.
http://www.customerexperienceinsight.com/sales-training-ways-
to-sell-more-to-existing-customers/
SWOT Analysis
Swot Analysis
Strengths Weaknesses
Largest Wide
Company range of
in Industry interest
- Market Low

Leader
Ancillary
Broad Catalog
Product Sales
and
Service Focus only
Portfolio on existing
customers
Environme
ntal
Stewardsh
ip
External Analysis of Cintas Threats
Excellent use of Porters Five Forces and other tools to address all key general environment trends, industry &
competitive environment stages/trends.
All key organization resources, competitive advantages, core competencies, & weaknesses fully identified and
appropriately discussed
All important implications for the organization are explained in-depth, including an evaluation of areas of
alignment/misalignment between the catalog line of business in the restaurant industry and the organization's
overall corporate strategy.
Analysis effectively uses an analysis of the general business environment to address all key general environment
trends.
Analysis effectively uses Porters Five Forces model to assess industry attractiveness
Provide external/internal analysis of Cintas Baltimores catalog line of business in the Restaurant Industry
Include survey data from at least 3 Baltimore-based restaurants in your analysis
Evaluate areas of alignment/misalignment (strategic fit) between the catalog line of business and the organizations overall
corporate strategy in the restaurant industry
Based on these analyses, provide a 3 year comprehensive strategy to optimize the resource potential of SSRs in the restaurant
industry
Should include milestones that you hope to accomplish
Opportunities
Analysis effectively uses an analysis of
Excellent use of Porters Five Forces and other
tools to address all key general environment the general business environment to
trends, industry & competitive environment address all key general environment
stages/trends. trends..
All key organization resources, competitive
advantages, core competencies, & weaknesses Analysis effectively uses Porters Five
fully identified and appropriately discussed.
Forces model to assess industry
All important implications for the organization attractiveness
are explained in-depth, including an evaluation of
areas of alignment/misalignment between the
catalog line of business in the restaurant industry
and the organization's overall corporate strategy.
industry
Strengths
industry Analysis identifies all key organizational resources (including
Should include milestones that you hope to accomplish competitive advantages and core competencies).
Excellent use of Porters Five Forces and other tools to
address all key general environment trends, industry &
Analysis appropriately discusses all key organizational
competitive environment stages/trends.
resources (including competitive advantages and core
All key organization resources, competitive advantages, core competencies).
competencies, & weaknesses fully identified and appropriately
Analysis identifies Cintas Baltimores strengths & weaknesses.
discussed.
Analysis appropriately discusses Cintas Baltimores strengths
All important implications for the organization are explained in-
depth, including an evaluation of areas of & weaknesses.
alignment/misalignment between the catalog line of business in
Analysis explains in depth all important implications for Cintas
the restaurant industry and the organization's overall corporate
strategy. Baltimore.
All key organization resources,
competitive advantages, core
competencies, & weaknesses fully
identified and appropriately discussed.
Weaknesses
industry
Excellent use of Porters Five Forces and other tools to Analysis identifies all key organizational resources (including
address all key general environment trends, industry & competitive advantages and core
competitive environment stages/trends. competencies).
All key organization resources, competitive advantages, Analysis appropriately discusses all key organizational
core competencies, & weaknesses fully identified and resources (including competitive
appropriately discussed. advantages and core competencies).
All important implications for the organization are Analysis identifies Cintas Baltimores strengths &
explained in-depth, including an evaluation of areas of weaknesses.
alignment/misalignment between the catalog line of
business in the restaurant industry and the Analysis appropriately discusses Cintas Baltimores strengths
organization's overall corporate strategy. & weaknesses.
All key organization resources, competitive
advantages, core competencies, & weaknesses Analysis explains in depth all important implications for
fully identified and appropriately discussed Cintas Baltimore.
Resource Requirements:
Specify feasible resources that are needed to support your strategy.
(Be mindful of costs: Capital expenditure, staffing, requirements, etc.)
Total budgeted resources Analysis provides a comprehensive strategy for the catalog
line of business that spans three years. This should include
across the 3 year period milestones that you hope to accomplish over that time period.
cannot exceed $45,000 Supplementary materials fully complement and support the
($15,000 per year) presentation.
Your plans resource requirements are fully identified and
Excellent choice and explained.
identification of resource Your plans resource needs are feasible with realistic costs.
The total cost of your plan does not exceed $45,000 ($15,000
requirements. per year).
Resource needs are feasible All assumptions are clearly explained and logical.
Strategic alternatives are fully explained in supporting
and realistically priced. The supplementary materials.
total cost of resources does Recommendations address all major issues.
not exceed $45,000 Recommendations address the case issue.
Recommendations are explained in-depth.
($15,000 per year).
Strategy
Recommendations address all major issues, appear to
be appropriate for solving organizational problems, &
are explained in-depth.
Recommendations appear to be appropriate for solving
organizational problems, & are explained in-depth.
Analysis provides a comprehensive strategy for the
catalog line of business that spans three years. This An appropriate number of milestones for
should include milestones that you hope to accomplish the next three years are proposed. For
over that time period.
each milestone, at least three tactics are
Supplementary materials fully complement and support proposed.
the presentation.
Your plans resource requirements are fully identified
and explained.
All milestones and tactics clearly pertain
Your plans resource needs are feasible with realistic
to the strategy.
costs.
The total cost of your plan does not exceed $45,000 Excellent description of managers daily
($15,000 per year). activities to execute the tactics.
All assumptions are clearly explained and logical.
Strategic alternatives are fully explained in supporting
supplementary materials.
Recommendations address all major issues.

Cintas Corporation Case Study

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Spring 2017 TU Strategy Capstone Case

Cintas Corporation Case Study

Cintas Opportunity Resource Requirements

1. Competition in the industry

Largest Company in the

Broad Product and Service

Target The Other

New Promotions and

$1 = 1 point; every 1000 points

Price matching Ancillary industries

This spirit of teamwork, camaraderie and trust has become our

Figure our what gives Cintas their competitive advantage?

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