Hot Tub Marketing

Marketing is… How you promote your business outside your store

There appears to be two predominant marketing strategies for 2009. The first is the “Hunker Down Strategy” with little to no marketing activity. Marketing Strategies The second is the “Think Differently Strategy” combined with Aggressive Cost Effective Marketing. Which if these strategies do you think is really the safer bet?

Marketing Strategies Good Guess! =

Marketing Strategies The first thing to do in (economic) battle is assess the terrain. Forewarned is forearmed.

Acrylics represent 90% of sales

55% sold through Pool & Spa Dealers

25% sold through Spa Specialty Stores

15% sold through Mass Merchants

5% sold through “Contractors”

Understanding our Industry

Selling Prices:

$3500 - $5500 = 15%

$5600 - $7000 = 35%

$7100 - $8500 = 40%

$8600 - $15000 = 10%

Leading Features:

Concentration of Jets for Massage

Depth

Other Comfort Innovations

Understanding our Industry A recent industry survey by Poolandspa.com indicated that 88% of pool and spa owners are married homeowners and most have children under the age of 18 living at home. This group generally consists of a dual income couple earning between $40,000 and $75,000 per year with an average salary of $66,500. 44% hold managerial or professional jobs. More than 50% have some college education or higher. Over 95% of pool and spa buyers regularly use the internet. Most research pools & spas over the net before the buy. If you market to pool and spa owners, buyers or a high end demographic, then you should definitely display your product on your Web Site !

Understanding our Industry Luxury : one size does not fit all "The challenge for luxury marketers in the North American luxury market is to deliver greater exclusivity by making the luxury consumer feel special and unique, but never let it morph into class snobbishness or arrogance. It is the difference between putting up a stop sign that says 'Do Not Enter,' to putting up a sign that says, 'Turn Here for Something Really Special.' Luxury marketers have to give their consumers an exit ramp off the 'mass track' that creates a mystique and an appeal without the negativity of exclusivity muddying the waters," explained Pam Danziger, president of Unity Marketing and author of Let Them Eat Cake: Marketing Luxury for the Masses - as well as the Classes.

Understanding our Industry What slowdown? Luxury items selling well, dahling By SHELLEY EMLING The Atlanta Journal-Constitution Published on: 07/20/08 Even as most American consumers tell pollsters that they are cutting their spending because of high gasoline prices, the London-based Datamonitor research firm estimates that the global luxury market will jump 71 percent to hit $450 billion by 2012. "Premiumization" is already well-established. No sector, product, or industry will escape a premium version this year, says www.trendwatching.com , an Amsterdam-based Web site. Most of the wealthiest people are over the age of 50, they have been through recessions and downturns before, so they aren't so bothered by them," said Milton Pedraza, chief executive of the Luxury Institute, a research firm in New York. "Many are conservative and patient investors who know that things are cyclical."

Understanding our Industry Luxury : one size does not fit all "It is not about excluding someone from having this item, this brand, or shopping in this store; it is about turning this item, this brand, this store into something more special, unique and life enhancing to the individual. It is a subtle shift in emphasis from the negative-leaning 'exclusivity' to the positive-trending 'individuality.'"

Understanding our Industry Luxury : Not everyone considers a hot tub to be a luxury. There are some who see a hot tub as therapy, or a way to unwind quickly at the end of a busy day which can assist in reducing stress and maintaining productivity without burning out.

Understanding Your Target Hot Tub Consumer

Although there are very few people the dislike a hot tub, there is a “core” group of customers that need to consistently target with your hot tub advertising. Please find the following data that further describes the demographic profile of most hot tub customers. Advertising (as inexpensively as possible) in medias that speak directly to these consumers is a critical part of your overall marketing plan.

Hot Tub Target Consumer Demographic

Age - Adults 35 to 54

Gender - Male & Female

Income - Middle to Upper Middle Class

Other - Families and Health Conscious Couples

Other - Concentration in most markets tends to be Single Family Homes in Suburban Neighbourhoods

Understanding our Industry

Map out your strategy

Be specific to your target market and area where you draw your best customers.

Put aside a portion of your marketing budget to achieve the best results.

You can’t be everything to everyone so be sure to say no to organizations that don’t fit your demographics

Test and measure everything

Where to Target

Unions/hospitals/ labor organizations

Police/mills/large grocery chains

Special Interest Groups / Corporate Offers

Industry based business community – ie. NSPI, Pool & Hot Tub Council

Local business community ie. Rotary Club

Volunteering community ie. Food Drives

Regional business communities ie. Airlines, Ford, GM

Local athletics community ie. Team support ie. Hockey, Football, Swimming

Who to Target

Fundraising/Charity community ie. Local hospital, School snack programs

EMS community ie. Police, Fire, Nurse, Ambulance

Contractor community ie. Deck Builders, Electricians

Employee community ie. Friends, Family,

Customer community ie. Hot Tub Club, Newsletter, Surveys

Geographic Targeting (Unaddressed ADMAIL)

Who to Target

Use your Employees

Use Networking

Use Advertising

Use the Internet

Use the Competition

Marketing Strategies

Create a friends and family discount

Pay a commission to all employees

Inform all employees of upcoming events

Invite employees to all company sales events

Hold Customer Appreciation Nights

Marketing Strategies - Use your Employees

On site promotions

When you deliver a spa, why not set up a couple sandwich boards announcing who you are and what you are doing?

List your contact information and perhaps a small holder for business cards and brochures

What are your delivery or repair staff doing to help promote your business? Marketing Strategies - Use your Employees

Referrals are low cost sales generators To get referrals you must ask from your BEST Customers. Consumer referrals are by happenstance unless you have a program. Marketing Strategies - Use Networking

Why do you want referrals?

That’s how people make decisions

It has the highest ROI - invest in a referral program and track the results – ROI

There is no competition

4. People are pre-disposed to say ‘Yes’

Marketing Strategies - Use Networking

Who could help promote your spas sales?

Contractors

Home Renovators

Land Developers

Landscapers

Designers

Architects

Home Builders Assc

Realtors

Others ideas?

Unions

Labor organizations

Police/Emergency

Large plants or factories

Large grocery chains

Hospitals

Chiropractors

Arthritis society

Referral Pro g ram Marketing Strategies - Use Networking

The landscaper is motivated to give out an introduction kit as they are offered a commission for the referral upon purchase The clients feel special as they have access to special “Contractors pricing” SALES INCREASED WITH MINIMAL COSTS Marketing Strategies - Use Networking

So where do you go to get these leads?

On line directories like the Yellow Pages

Home Builders Association Directories Marketing Strategies - Use Networking

The Canadian Business Directory

The best part is…it’s at your local library

and it is FREE

It is very reasonable to call at least 5 contractors daily in your area and introduce yourself. Follow this up with any introductory letter, a few brochures and an invitation to visit your show room Try asking the key person at your local Home Builders Association if they might have suggestions on contacting the key builders/architects or developers Marketing Strategies - Use Networking

The Canadian Business Directory Marketing Strategies - Use Networking

Create Referral program

Offers to get Referrals (Quarterly)

Offers to Prospects (Awareness / Reminder)

Align yourself with credible contractors

Referrals from deck and landscape contractors

Attend local club meetings and offer to host a meeting at your store

Seek speaking opportunities.

Volunteer to deliver flyers to all your customers for an upcoming club event.

Place cheap ads in athletic programs or team newsletters

Sponsor Hockey, Soccer, Football, Swimming, teams.

Bring the local team in for autographs

Offer to have a team party at your store

Direct Mailing

Your customer database is worth

a fortune !!!

One retailer in Ontario receives a 10-50% response rate when using direct mail and making offers on smaller priced items to create traffic.

Certain customers get 2 for 1 offers and others get a chance to spin the WOW wheel!

Tip: Get your stamps at Costco.

Yellow Pages (they have to find you)

Direct Mail (That database is worth a fortune !!!)

Offers to get Referrals (Quarterly)

Offers to Prospects (Awareness / Reminder)

Special Interest Groups / Corporate Offers

Geographic Targeting (Unaddressed ADMAIL)

Promo Advertising

Marketing Strategies - Use Advertising

Classified Ads / Trade In Program

Buy / Sell New & Used Hot Tubs

Customer Appreciation Nights

One idea which would minimize the cost of print advertising would be splitting the cost with other similar retailers within the affected geographic area.

This team effort could further be increased by networking to refer customers to the most local retailer using whatever incentives work for all.

Special Events In-store Sales Home Shows & Parking Lot Sales Cross-selling Promotions Private Sales Plan your events for the year now Marketing Strategies - Use Advertising

In-store Sale Signage All items tagged All staff at store at least 30 minutes before Foil Balloons TV/DVD for the kids Promotional items on hand Finance promotion & rates current? Why should customers buy today? Marketing Strategies - Use Advertising

Home Shows & Parking Lot Sales Helps to reach people in other areas Great for lead generation Enables customers to do direct comparisons Have a Closing Area Bring “Props” Ensure financing can be handled Prize Entry Box Remote Signs – direct them to the Lot Marketing Strategies - Use Advertising

Private Sales For large employers in your area Work with Company Management or Human Resources Prepare a unique value package Use RSVPs Marketing Strategies - Use Advertising