Transcript The Jacuzzi
The Party Tub A Marketing Plan Brian Schafer Chris Rathbun Aaron Brooks Introduction Our product: a high-end luxury spa Designed to accommodate 4 to 6 people Built with the highest quality materials Includes: Fully adjustable jets Underwater lighting Integrated sound system Flat screen waterproof TV and DVD player Introduction Product allows consumer to create their own little haven - watch a movie, listen to music or even play a video game. Goal - pure relaxation in a luxurious and entertaining setting SWOT Analysis Strengths Ability to outsource work Unique Top Quality Weaknesses High initial costs High personnel costs Lack of reputation initially Opportunities Threats Almost Sensitive untouched segment of market Joint ventures with designers, lowering marketing costs Segments are geographically centered to economy Obsolete technology Small target segment Internal Environment Ability to outsource work High quality product Strong connections with contractors and celebrity figures Strong network of sales agents and distributors Well developed construction plan External Environment Target industry Small and elite groups of consumers Residing in clusters around major cities Focus on quality, brand and status then a price figure Our focus will be more on the image of the product Attempt to convince consumers that we can provide what they want (Quality, Style, Status) Small market Fairly high level of competition in the beginning Competition will level off after time Will work to maintain our image and product quality External Environment Unique position – product not offered by a competitor Will create personal relationships with designers and decorators Must integrate our product in advertising Hollywood / Entertainment Industry Outsourcing components of our product Lessens our materials and storage cost Opens opportunities to use joint venture advertising • Such companies as Sony or Panasonic for AV components • Allows people to see our brand in conjunction with those who are already in the top of their field, will boost perception of our product Able to focus more on the whole experience Focus upon support, individual personal touch and quality Will gain entrance into this elite industry and be successful Value Proposition Through quality, service, luxury and technology we will offer a total experience to our customers by being unique, personal and creating an individual haven away from the tiresome world. Market Segmentation This spa qualifies itself as a high-end consumer product – luxury item Must compete with other high-end spas Targeted towards baby boomers with a high income At least $100,000 annually PRIZM clusters Urban Gold Coast • Elite urban singles and include ages from 45-64 Young Literati • Upscale urban singles and couples with professional occupations ranging in age from 25-44 Executive Suites • Between the ages of 45-64 and most belong to a health club. Geographics - upscale cities Marina Del Rey, CA Blackhawk, CA Laguna Beach, CA Market Segmentation Targeted advertising - publications Examples of magazines Targeted advertising - health spas Higher income individuals targeted through channels that directly affect them Primary focus upon consumer income Entrepreneur GQ Self Higher income individuals will be the ones who can afford this luxury item. The secondary segment focus is age Baby boomer generation • More disposable income Marketing Strategy Spa positions itself with its high price The “spa of all spas” This fully loaded spa can be used as a status symbol, one who can afford this spa is well to do above the rest Understanding the other brands in this same market Jacuzzi • • • • Known brand Long history Respect for the brand Brand shortcomings (closest spa holds only 2 people) Our product differs from Jacuzzi Offer similar idea of a spa but seating for up to 4 to 6 people Cup-holders and several audio/video hookups Designer colors for customization Product Strategy Most deluxe and customized spa available Highest quality parts, materials, and warranty Support options Product Strategy Flat screen television Floating remote control Surround sound system DVD System Built-in CD/AM/FM stereo All electronic items are waterproofed for safety and durability Product Strategy Slip-resistant bottom 6 Underwater Fully adjustable jets lighting Energy-efficient, self-draining, insulated pumps Product Strategy •Ergonomic Loungers Webbed Seating feature •Enables therapeutic jets to massage all parts of the body •Allows for more comfort when relaxing in the spa •Adjustable jets hit all areas of body to maximize comfort •Patent pending Product Strategy • FREE professional installation and onsite service • 3 year onsite warranty • Parts / labor / travel, included Pricing Strategy Unique product in marketplace “Skimming” - entry pricing strategy 4-6 person Hot Tub Equipped with a top of the line waterproof flat screen TV/DVD player with surround sound Designed and developed especially for the rich and famous Starting price ranges $35,000 – $40,000 retail Selling to retailers/wholesalers for around $25,000. After initial run on the market, price will lower as competitors enter May be able to later offer a more affordable rate Allows us to recoup R&D costs quickly Takes advantage of originality Would help to expand target market Price leadership Forced the competitors to follow our lead on price Recouped our R&D costs. Promotional Strategy Luxury item, afforded by the wealthy Promoted by providing a sample model to lifestyle shows such as “MTV Cribs” and other “hip reality” shows Wealthy clients aware of the product Communicate the symbolism behind having our hot tub Possible trials/demonstrations Discounted products sold to hotels and resorts – ability to purchase or request more information Magazines and publications Hollywood style parties Rich and famous Celebrities Trade shows Demonstrate and showcase product to home builders, designers, and decorators Promotional Strategy Celebrity testimonials/ Marketing People "My favorite thing after a NBA play-off game or the Olympics or just a real tough training session is to get into my spa, close my eyes, and rest and recover and let my body heal up for my next day of training. These spas are truly the Ultimate Relaxation Machine. Not only do they let you relax, but these spa’s can really entertain your friends.” Michael Jordan Six-time NBA champion (‘91-’93, 96-98); NBA MVP (‘88, '91, '92, '96, '98); 10-time All-NBA First Team (‘87-93, ‘96-’98); Defensive Player of the Year (’88); Nine-time All-Defensive First Team (‘88-93, ‘96-’98); Rookie of the Year (‘85); 14-time All-Star; All-Star MVP (‘88, '96, '98); One of 50 Greatest Players in NBA History (‘96); Two-time Olympic gold medalist (‘84, '92). Distribution Strategy Our showrooms Usage demonstrations Free trials Showrooms of distributors around the country Tradeshows Make contact with distributors, contractors, designers, decorators See product used on TV shows Website/internet advertising Website to “request more information” Find a distributor in the local area Distribution Strategy Web site allows the customer to customize the colors and some of the features online Virtual model Possible Advertising Possible Advertising Possible Advertising Possible Advertising Conclusion Thank you!