Marketing Plan for Aqua Bay Essay
Aqua Bay has planned to target the age group between 40 and 59, for they have disposable income and are looking for some luxury in their life. The target market lives in Belleville suburbs and is a middle-class hockey family. They must appreciate hydrotherapy and be conscious of socio-economic status. It is key to point out the target market is on their second home because they are usually customizing their house with luxurious items. The primary objective is to increase net profits by 50% with the Soften line after marketing costs for one year. The marketing budget is $2,000 for one year.
Soften targets the value-driven customers. Value can be found in the echo-friendly motor, portability, wellness and easy maintenance. A Soften promises hydrotherapy, relaxation and a social want. Satisfaction guaranteed. Softens range in prices from $2,995 to $3,995, this includes the soften, spa cover, hydrometer (pump), spa filter, and a 5 year limited-warranty. Additional packages include: installation, delivery, spa steps, cover lifter, chemicals and extra filters. The primary focus for promotions will involve personal selling, print advertising, cold calling (collecting email addresses) and signage.
These forms of promotions are the most cost effective ways to promote the Soften brand. A Journal
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Aqua Bay as their go-to hot tub supplier. PURPOSE To create a marketing plan for Softens; a product associated with Aqua Bay Ltd. SCOPE The marketing plan will incorporate: Situational analysis Company Customers Collaborators Competition Climate analysis SOOT analysts PEST analysts Objectives & Issues Marketing Strategy Target Market & Positioning Marketing Mix Price Product Place Promotion Tactics & Action Budget/Control Executive Summary & Table of Contents COMPANY About Aqua Bay Pool and Spa Ltd is a locally owned business situated in the heart of Connation.
Michael and Wendy Gaucheness’s founded this company in 1991. With over 22 years of experience in retail, Aqua Bay has gradually earned the loyalty of Belleville residents over the years. Aqua Bay offers a wide variety of goods and services that range from Pools, Spas and Water Treatment to Propane, Billiards and Darts. Aqua Bay has ambitions to continue offering a convenient stop for all your professional and recreational needs. In the summer of 2004, Aqua Bay opened a second location eighty kilometers East of the Belleville in Kingston, Ontario.
The store is situated one of the developing areas f Kingston, there are a few big-box stores and a public mall located within two kilometers of the location. The Kingston stores offers the same products as the Belleville store, on the other hand, the Kingston store offers limited services due to the lack of awareness and employee expertise. Aqua Bay offers nine major products lines: Pools Spas Water Treatment Billiards Darts Exercise Equipment Propane Bottled Water Mission Statement To provide our customers with the region’s best valued products and unbeatable customer care. Corporate Social Responsibility
Aqua Bay has been fully committed to supporting the local community. Aqua Bay offers a wide range of sponsorships for local groups; such as: Public and Secondary schools, sports events, sports teams, charitable events, and charitable organizations. COMPETITORS Within the Belleville region exist several direct competitors, some indirect pose no threat since hot tubs have a high entrance barrier due to the complex nature of the product (especially when dealing with after-sale service calls). When comparing a luxurious item such as a hot tub, it is important to consider all the aspects of purchasing a hot tub.
Aspects such as: price, quality, comfort, size, features, accessories, after-sale services, etc. Since Soften is such a unique item, and there are regional sales representatives with a license to sell the Soften brand in North America. Soften has predetermined boundaries set in North America. The primary focus will be the indirect competition with two companies that have the majority of the market share in the Belleville region, SST. Lawrence Pools and Beachcomber. The secondary focus will be RCA Pools and Water Depot because they still hold a small, but noticeable market share with to tubs in the Belleville region.
The generic competition will hold no significance in the sale off hot tub. Although they both offer a relaxing, therapeutic experience, they do not interfere enough with each others’ markets to pose a threat on the sale of a hot tub. SST. Lawrence Pools SST. Lawrence is a local business situated less than a kilometer from Aqua Bay. They have a strong presence in the pools, spas, billiards and exercise equipment market. They were founded in 1971 and have had two different owners, Moe Green founded the company and eventually sold the company to Chuck Dickinson in 1989. They offer similar products lines, but for the most part, different brands.
SST. Lawrence offers two different product lines in the hot tub department, Issuance and Hydrofoils. Issuance dominates their sales due to popularity and Hydrofoils is runner-up to Issuance spas. The prices of Issuance spas range from $6,499 to $13,999. The Hydrofoils spas offer more features and have a larger price range from $4,999 to $15,999. SST. Lawrence pools has always utilized their marketing budget through heavy local advertising and promotional activities. The company focuses on branding their name thin the community, they have a high presence in local media.
Examples of their advertisements: Belleville Intelligencer, Yellow Pages (every page and title page), Billboards, Radio advertisements, Signage and Magazines (Bay of Quintet Magazine). They also hold promotions throughout the year, such as seasonal promotions and sales with partners. The seasonal promotions are a ploy to spark interest in existing customers, whereas the promotions with partners are to spark interest in potential customers. They hold an annual sale in the parking lot of the Brick. SST. Lawrence has a stronghold on the marketplace, from my experience it is easy to say they hold 40% of the market.
They make the claim to be the one of few retailers to sell their brand of spas in the region and offer top quality spas. SST. Lawrence has a number of strengths when it comes to marketing, but suffer in better than their competition. Their facility accommodates their hot department in an ascetically pleasing manner. Lastly, they have a very strong marketing team that is capable of creating awareness among the community. In order to compete with the potential sales increases with Aqua Bay, they will invest ore money into their marketing effects. These attempts will be to steer potential customers away from even considering Aqua Bay as a choice.
Beachcomber Beachcomber is an established franchise located in the heart of Belleville on College Street. The company was founded in 1978, but the Belleville location has been around since 2002. They are particularly known for their relaxing showroom and brand name. Beachcomber offers their customers one brand, Beachcomber. The brand name is known worldwide and therefore Beachcomber has a strong reputation. The prices for Beachcomber spas range from $7,999 to $16,999. Beachcomber has a strong marketing team, and offer many promotional activities along with regular local advertising.
They make similar appearances with local media, their main forms of transmission include: Radio stations, Billboards, Signage, National Magazines (Home and Leisure Magazine), Newspaper and the basic Yellowness contact information. Beachcomber is also heavily involved in promotional activities, they are always promoting different sale opportunities in their facility and their partner’s facility (Rona). Since their prices are considered high in his market, they need to present their high priced hot tubs at a discount to keep their reputation while promoting more sales.
They hold seasonal sales to promote their brand and external sales to raise awareness among diverse potential customers; such as people purchasing goods for home improvements (Rona). Beachcomber also has a strong presence in the Belleville marketplace. Based on their popularity, it is safe to presume they have a 35% hold on the marketplace. They make similar claims to SST. Lawrence by offering top quality hot tubs with a strong Beachcomber has many similar strengths as their competitor SST. Lawrence. They have a strong sales force that can promote their brand with the skills and knowledge they possess.
They also have the proper facility for retailing luxurious goods; the showroom is ascetically pleasing. Beachcomber invests a large percentage of their budget to marketing, their investment proves successful with the market share. Lastly, they have a strong brand name and their reputation has lasted through the years. In order to compete with the potential sales increases with Aqua Bay, Beachcomber will invest more money into their marketing plan, these attempts will be to steer attention customers away from even considering Aqua Bay as a choice.
Comparison Competitors SST. Lawrence Beachcomber RCA Water Depot Aqua Bay Pricing $4,999 – $1 5,999 $7,999 – $16,999 $5,999 – $10,999 $5,999 – $9,999 $2,495 – $3,495 Promotional Activity and Intensity Signage, Radio, Yellowness, Newspaper, Magazines, Billboards and Promo & Seasonal Sales Signage, Radio, Basic Yellowness, Newspaper, Magazines, Billboards and Promo & Seasonal Sales Signage, Basic Yellowness, Promo Sales Signage, Basic Yellowness, Promo Sales Products Issuance, Hydrophone Coleman, Shoreline, Garden Leisure & Cove
Royalty Soften Positioning Top Quality Best Price Market Shares 35% 5% Strengths 1 . Marketing 2. Sales Team 3. Merchandising environment 1 . Branding, 2. Marketing, 3. Sales team, 4. Merchandising environment, 5. Franchise, 1 . Experience 1 . Pricing Weaknesses Marketing Prediction of Future Initiatives Blowout Sales Promotional Sales Promotions Promotions and Sales **Grey = Categories, Yellow = Primary Competition, Green = Secondary Competition, Blue = Aqua Bay CUSTOMERS Market Segments 20-39 years old 40-59 years old 60+ years old *** Yellow highlighted group is the target market Geographical
Live within 25 kilometers of the Belleville location Suburban area Demographic Couple Full-time Job (combined income of $60,000 to $80,000) Young family with two children (aged Pool-owners Homeowners are on their second house Psychological Hockey parents Innovator Community-involved Likes to customize Brand conscious Middle-class Appreciates relaxation Blue-collar class Behavioral Regular users of spa treatments or hydrotherapy Strong loyalty to Soften Interested in Soften Require high quantity of information Enthusiastic Seeking a relaxing experience Target Market – “KEY FINDINGS”
Geographic – Belleville suburbs Demographic – 40-59 year old, second home (customized) Psychological – middle-class hockey parents Behavioral – appreciate status/hydrotherapy Market Share Approximately 5% of households located in Belleville own an operating hot tub. Therefore with 21 ,065 occupied private dwelling we can conclude, approximately 1 ,065 household own a spa within the city of Belleville http://howl 2. Stance. Go. Ca/census-resentment/2011 /dip-PDP/proof/details/page. CFML? Customer Needs Customers who invest into hot tubs look to reap the benefits of hydrotherapy.
Hydrotherapy involves the use to warm, moving water to relief pain or induce relaxation. In the end, the need is intangible. Rewards the customer with a relaxing therapeutic experience in the convenience of his or her own home (or property). The convenience covers a want for the customer, and the relaxing experience covers the need. Therefore, the comfort and convenience provides the customer with everything they want/need. Hot tubs are considered to be a luxurious good, the product satisfies one’s wants making it a luxury item. Along with the possession off luxurious item comes higher status.
One may seek the higher status need to satisfy a personal need. Retail Channel The retail channel is located at 223 Connation Road North in the Belleville region. Consumer Information Sources Typically consumers will be very careful when comparing products and brands. The consumer will use friends & family as a reference to get a real-life testimony. They will also search around on the internet (forums) to find their most suitable brand. Lastly, they will get their information from other retailers, who may give misleading information about the actual product. Frequency and Quantity of Purchase
A Soften is typically a one-time purchase, but the following sales (chemicals and accessories) are required to make the sale more valuable. Customers with hot tubs typically use it one to two times weekly. COLLABORATORS Soften Canada is situated in Sturdy, Ontario. They established a manufacturing company in 1990. They are responsible for the manufacturing and distribution of the Soften brand in Canada. Despite limited staff of 25 employees, Soften Canada manages to keep up with the demand in the Canadian market. Soften manufactures: the three models of the portable hot tub, custom decks, and accessories.