Nos projets - Projets 3A - Challenge Zodiac - Projet 5 – Dossier
Laura CHAREYREAlice DUVERTLaura GATTIMaxence LECLERCGuillaume LONCHAMPGuilhem TOIRONZodiac KeymatchGroup F ESDES 2011
Executive summary Enjoy your swim or treat your pool, no need to choose anymore! Despite the innovative technique of the water treatment, Nature 2 seems not to be penetratingits market. We have clearly identified a lack of communication with the final consumer, areputation problem as well as a distribution issue which leads to a bad dynamic of sales. It appears that opportunities exist in order to solve these problems. Surfing on the green wave;taking advantage of the increase in the number of pool constructions… are as many aspects we can workwith. As a result, the variety of techniques and strategies helping you to reach your goal is wide. Here is alittle glimpse. When it comes to high engagement purchases, such as this one, the word of mouth is veryimportant. For this reason, it would be interesting to create a mentoring system which would be basedon offering discounts to both “sponsors” and new customers. It is crucial to develop a database to follow the customers. By this way, we would create aneffective communication link with an efficient impact through emails and newsletters. It would allowthem to give some feedback about their purchase. Not only will the communication be more suited tothe customer, but the whole selling process will be improved. Another idea would be to change the name of Nature2 fusion. The purpose is to associate thenotoriety of Zodiac with the product. This would lead the pump to benefit from the great notoriety ofZodiac which acquired this reputation in the boating area of expertise. We also need to dissociate thenew Fusion version with the previous one, which was a failure. The bad reputation should not interferewith the promotion of this new version. It is essential to optimize the visibility of the brand within the point of sale. A sticker on thestorefront of the dealers, announcing that in this shop an efficient and revolutionary technology isavailable will catch the attention of the clients. A partnership with hotels owning a swimming pool which would consist in offering financialcompensation in return of the presence of the sticker “This pool is equipped with the revolutionaryNature2 technology” We were also thinking of reinforcing your contact with pool owners. Sharing the same values asthem will ensure you a meaningful relationship with your customers. For instance, we recommend youto implement Corporate Social Responsibility actions: « When you buy a cartridge, 1 euro is given to acharity whose goal is to protect the aquatic world ». At last, in order to motivate your dealers, it would be interesting and very beneficial to thecompany to invite resellers to a conference organized by Zodiac to take the time to explain theadvantages of the fusion and at the same time create a real link between these resellers and Zodiac. Our solutions will give you more control over the distribution channel which will ensure youmore sales. Moreover, your future achievements will be based on having a pull strategy and our ideaswill help you in nurturing the dialogue. As a result, Nature 2 Fusion’s visibility will be enhanced; itslegitimacy and the loyalty to the brand will be tremendously higher.
I) Analysis of the marketing MixSWOT Analysis Strengths - The Nature 2 products are « EPA approved » by an American agency. This label means that these products are friendly for the environment. Zodiac Pool Care is the only manufacturer in the world which offers a water treating product certified with such environmental standards. Weaknesses - Badly referenced on the web especially on Google or on pools websites. Opportunities - As the product is very “green” (it uses less chlorine) it may surf on the green wave as people feel more and more concerned about ecological issues. - We can notice an increase in the number of pool constructions in France over the last years. In 2010 there are 7% more pools than the year before. - The types of swimming pools are more and more different, they diversify, prices too. This increases the number of potential clients who have profiles that are more and more diversified. - The security standards are getting stricter which leads pool owners to ask for pool specialist help when they have technical problems. Threats - Apparition of pools which are sold in kits on the web - 80% of the out of ground pools are sold in retail shops and most of the pools are already equipped with such an installation.4 Ps Product The actual strengths of our product such as the well being of users and its ecological aspect (less chlorine) are opportunities on which we should communicate to highlight the benefits of our product. Indeed, making the advantages of this treatment clearer compared to the other ones seems essential as the first version was a failure. The bad reputation should not interfere with the promotion of the new version. Place We can see that Zodiac has a low control on its distribution system and on their sales.
The distribution system of Nature 2 Fusion is complex and there are not many (if any at all) contacts between Zodiac and the consumer. According to the new principles of today’s marketing, the relationship with the consumers is essential. Consequently, it is necessary to establish a meaningful relationship between the consumers and Zodiac. Promotion All the promotional actions regarding Nature 2 Fusion are important -notably the Public Relation actions during shows and exhibits in order to convince resellers - but certainly not enough. In order to benefit of the great opportunity of the Internet and its importance, it could be a good thing to improve the site indexing of the website on web searches such as Google. It can ensure more visibility of the brand and its products. Price The price is more expensive than the regular manual chlorine treatment (Nature 2 fusion = 299 Euros and cartridge = 69 to 99 Euros) but the benefits justify that price.Extra P’s People - CSP +, mostly women as they usually influence the final choice. The product is suitable for people concerned by their well being and the environment’s protection. - Zodiac’s sales people and resellers’ sales people (and any person involved in the sale process) Process & Public - Its level of visibility is low: o There is no real physical contact between Zodiac and the customer: one or even two intermediaries o Their website has a bad web ranking. o The communication is too low (possibilities to find Zodiac’s products only on specialized magazines and on their website). Perception & Physical Evidence - The last product of the brand was a failure, which is why « Fusion » has image problems. The 3 year warranty does not seem to encourage the deed of purchase. Participation - Lack of involvement in the final deed of purchase. - You should interact more with the customer to establish a meaningful relationship with the pool owners.
Fusion positioning Current positioning“Nature 2 : Probably the ideal solution for pure and clear water!” New positioning“The eco-friendly solution for a better swim sensation!”We chose to emphasize more the personal well being of the user rather than the “quality” of the water.We made this marketing modification in order to surf on the wellness wave which is an importantconsumer trend nowadays.Moreover, we chose the keyword “sensation” to put forward the benefits of this product which uses lesschlorine, which let less skin dryness, less skin irritation and no more red eyes.We also added “eco friendly” to highlight the strong environmental brand value of the company.Moreover this ecological aspect is essential in today’s Marketing 3.0.
BrainstormingAfter having brainstormed many ideas we have chosen to keep the most interesting and relevantones and turn down the other ideas which are in italics in the following. To do this selection, wehave used the following selection criteria: budget, originality and deepness of the impact. How to convince How to convince the pool owners the network of of the benefits of dealers of the Nature 2 (B to C) benefits of and create loyalty Nature 2 (B to B ? to C) ? - Improving the Public Relationship actions: => Dealer seminars - Database => Try it for real! Go to your pool - « Mentoring » system retailer and take a swim in an - Partnership with hostels swimming pool using Nature 2 (91 % will recommend this product to other - Improving the site indexing pool owners) -Corporate Social Reponsabilities - Improving the communication on Actions: the benefits of Nature 2 =>NF Environment label =>Changing the name =>Charity protecting the aquatic =>Stickers world =>Highlight the fact that this - Goodies/Merchandising technology is not used by public - QR codes swimming pools and thus do not face the same drawbacks - Linking the name of the technology used with the name of a famous - Bonuses for the sales persons selling “water place” (eg : Vichy Thermal Fusion place) - Highlight the fact that Nature 2 do not face the same drawbacks that the methods used in public swimming pool
II) Marketing objectivesMarketing objectivesThe main objective of your brand is to increase the visibility in general in order to gain weight on themarketplace.Consequently, your marketing goal is to grow sales and the renewal of their cartridges. This objectiverelies on convincing existing and future dealers of the benefits by developing a real team spirit betweenZodiac and pool owners (pull strategy).The communication goal is to clearly define the positioning of the brand, among the current offers ofpool water treatments. This will help you to have a long-lasting relationship with your consumers.Financial objectivesFusion costs at least 299 Euros and a cartridge costs between 69 to 99 Euros. We hope to increase yoursales by 60% and increase the cartridge renewal rates from 55% to 75% for next year and 90% for2013/2014. This will concern your actual consumers and the new ones. This would generate a significantgrowth in your turnover. III) Marketing strategyTarget marketing segmentYou have two targets, first the resellers then the final consumers. The aim of our marketing strategy isnot only to motivate the middle men which are the resellers in order to indirectly impact the consumersbut also to act directly on that final customer.As you already know, the company has 2000 Zodiac certified resellers in France with only 400 of themwho have sold the Nature 2 product and have it in stock. Consequently, this means that 1600 aren’treally convinced of the quality of this product.On the 1 200 000 people who have pools and the many who plan to build pools, we target the CSP +,mostly women as they usually influence the final choice. The product is suitable for people concerned bytheir well being and the environment’s protection. You can see that we chose to target customers bytheir behavior and whats important to them, more than just because of demographics. Nowadays, this isa key point.Concretely, we will establish this plan in two phases. The first one will take place in 2012-2013 andconcern people interested in building pools (before next spring), people who use another method andobviously your current customers who will need new cartridges.The second phase will occur over the period 2013-2014. We will be targeting the people gathering theinformation (because they would like to have a pool built) and the first phase customers (who will needcartridges).
Differential advantagesAs far as we are concerned, we can say that our strategy is fully efficient for Zodiac in order to relaunchthe sales rate of both the Nature 2 Fusion pump and the cartridges.Thanks to our proposal, Zodiac will be able to develop a close relationship with both resellers and finalcustomers. We are thus trying to enhance a real B to B to C contact using a pull strategy: on a B to Bpoint of view -by inviting our resellers to a seminar-, and in a B to C way -by keeping in touch with thecustomer with the use of the database, for instance.We will also develop the brand visibility: we have many propositions. We will improve your notorietytowards your clients by doing a Corporate Social action. This will help highlighting the product. By doingsuch, you will be able to enjoy the profit of the free press coverage. The digital marketing will allow animprovement on Nature2 image which at the moment is not at its optimum. By our sponsorship not onlywill we be able to reach easily your target audience, but also to persuade them that your product has areal advantage compared to any other pool pumps.To conclude, our proposition should be taken into account since it responds in a very efficient and cheapway to Zodiac sales problem. Indeed, all of our propositions solve a problem. Implementing our ideaswill help Nature2 acquire the success it deserves.Marketing Mix (see annex for budget and timetable)We have clearly identified a communication issue with final customers. DatabaseThis measure will help following the customers and thus managing them.After having analyzed the Zodiac case, we noticed that the brand doesn’t have a customer database forits product Nature2 Fusion. We consider that building one is quite important as it will allow Zodiac tocommunicate in a very efficient way with its customer. By this way the company will be able to advertizenew products, remind its customers to change the cartridge or simply keep in touch with them.But the database is not only useful for communication. It can also be useful for analyzing data, or inorder to create a loyalty program, a relational marketing, and some targeted marketing campaign.Nothing is easier than creating a database. For Nature 2 Fusion, we suggest that every time a customerbuys a new pump, he is helped to fill a paper and send it back to the Zodiac headquarter in order toactivate the warranty. The paper would provide simple information, such as: Name & Surname Address Email Address and telephone number Location of the store where the customer had bought the pumpThis database could be created during the season 2012/2013. Indeed we need to install a database atthe beginning of the first season in order to collect as much information as we can about our customersas soon as possible.Building an exhaustive database would cost approximately 500€ due to the cost of the papers andprinting. If it’s not the case Zodiac should invest in a computer program for database which costs around100€.
Web-referencingTo optimize the opportunity represented by the Internet (on 34 millions of internet users in France, 89%use Google to gather information), we suggest that you improve your website indexing on the websearch.When it comes to referencing campaign, you spend a certain sum of money according to the amount oftraffic you would like to generate on your website. It uses the system of CPC (Cost per Click) which allowsyou to define a daily budget that you dont want to exceed. Even though it looks easy to realize, wesuggest you to ask a professional agency to give you a hand. This will ensure you to have the best ReturnOn Investment.They can help you with Google ad-words. Buying specific key words about your specific field of activitycan be expensive if these words are "popular", they will give you some tips to be sure to target the rightpeople. They can also increase your "natural" referencing. This is based on words, semantics, and linking.You could be linked with all the partners’ websites (on the same model than the Fédération desProfessionnels de la Piscine website where you already are), business directory, industry portal, and evenblogs about the pool business.This will have to be done before the launching of the new season because it is really important to be wellreferenced in order to get as many clients as we can. We suggest you to allocate 2000€ to this campaign. QR codesCreating a QR code to lead the customer to Zodiac’s website will allow the brand to be more visible andhave more people connected on their website. This measure is a supplement to the web-referencing. Quick Response codes are a type a barcode. It consists of black and white squares that can be read by smartphones and redirect the reader to a website. It is important to have as much people as possible to take a look at the website to make them know more about the brand and the products themselves as we noticed a problem of visibility. We thought about putting this barcode on city walls, on the adverts, and on the desks of hotels using Nature2 so it is as visible as possible. Our objective is obviously that people talk about Zodiac and know your products. It is a cheap way to reach new customers and really easy to create (on the internet). It can be done quickly and be put in all the places mentioned before within a few weeks. However this action is not urgent and can be launched during the 2013/2014 season. Creating a QR code is totally free, so it won’t cost a penny to zodiac.400 certified resellers out of 2000 have sold the Nature 2 product and have it in stock. This way, adynamic of sales ought to be created. Mentoring system & Partnership with hostels Those actions aim at enjoying the benefit of word of mouth. Partnership with hostelsA partnership with hotels owning a swimming pool would involve in offering the installation of the pumpin return of the presence of the sticker “This pool is equipped with the revolutionary Nature2technology”. The patronage of those hostels will enjoy the benefits of such a technology. This is a way toadvertise at a small cost to final customer. This campaign will have to be set up gradually until the end of2014. High standing hostels will be favored since it is in those places that target market usually stays.
It could be relevant to allocate around 4900euros to this. As for the cost of labor it will not add much:the extra work for the people who put in the pump will not be that important since this measure is to bespread over two years. Mentoring system (“member get a member” system)The analysis of the marketing mix has revealed that the relationship between Zodiac and its finalconsumers is almost non-existent. This certainly doesn’t help the loyalty to the brand. To help you onthis point, and on the promotion of your product, we thought that you could use a mentoring system. Ifone of your pool owner advises another person (lets say...his neighbor for instance) to try Nature 2 (andif the sale actually happens), the two of them will have discounts on their future cartridges. It could gogradually, a member gets one member. This discount will be 25% off for one member, 35% off for twoand 50% for three members. These discounts could be vouchers that you send by e-mail.Firstly, sending e-mails directly to your final consumers is a good way to help develop the dialogue andthe relationship, which impacts the loyalty. Secondly, the idea is built on this following assessment: thefirst source of trust is no longer advertisement, but other consumers! Thus, using word of mouth is acarefully thought choice.This solution concerns the customers who need to change their cartridges and the people who have apool but who are using another method. Thus, we could apply this idea during the phase 1 (2012-2013)of our plan. If this idea is successful, we think that Zodiac should use around 4000€ of its budget. Dealer seminarsThis action is meant for Swimming pools resellers.A reason why the sales of the Fusion are not sufficient enough is related to the motivation of theresellers. Indeed they might not be convinced by the product and might not have the informationnecessary to be able to create desire in the customer’s mind regarding this product.In order to change this we think it is interesting and will benefit to Zodiac company to organise a seminarover a short period (a day, or even an afternoon), where technical engineers and product managers willbe gathered with resellers to present them the advantages and characteristics of the Fusion product, asmuch on the technical side than on the ecological and well being benefits. Consequently, they will knowmore about the Fusion and will be more incline and motivated to talk to the customers about it.Moreover it would be the ideal opportunity to communicate the Fusion sales strategy such as thementoring system or any other relevant marketing strategies we have brought up.Finally, psychologically speaking, it is very interesting as it will create a real team spirit, where everyoneworks hand in hand to achieve their goals. Nothing is more motivating than such a feeling, which is why aseminar is on many levels extremely beneficial to Zodiac.It is not cheap to make a very interesting and convincing seminar, that is why we have allowed 45 000€to 50 000€ for that cause, especially as we want to gather as many resellers as possible (200 the firstyear, another 200 the year after that and so on if this strategy is worth it).As the pool market is quite seasonal, we were thinking of having such an event next spring (April-May)just before the weather gets ideal for swimmers to buy their pools. Improving the communication on the benefits of Nature 2 Change of nameThe change of name aims at reflecting the break between Nature 2 Fusion and the previous version.
The study of the weaknesses of the product has revealed that the bad reputation which the previousversion is subject to has a really negative impact on the product. A mean to address that issue would beto change the name of “Nature2” which refers to the previous version. “Mineral +” calls to mind thepurity as well as the natural angle of the product. The “+” evokes the efficiency of the technology. Thatnew name will offer a new start to this product and erase its past. This is why we want to change thename before launching the product. Sticker resellersThrough this measure we want to reach the customer just before the action of purchase.A sticker on the storefront of the dealers, announcing that in this shop an efficient and revolutionarytechnology is available will catch the attention of the clients. This way, customers will be more likely toask resellers about Nature2 (Cf annex).This measure is not that expensive. For the 400 points of sales it would cost a bit less than 500€.Convincing resellers may be the only matter of concern.Those stickers will be implanted as your sale force goes along to the resellers. This measure ought to beover by mid 2012. As you can see in the annex, creating stickers for your dealers will cost 3000€. CSRThis measure aims at enhancing the reputation of the product towards the final customer and at givingmore sales argument for the resellers. CharityBeing involved in corporate and social actions is a really good way to give a good brand image to thecustomers, whether they are final customers or pool resellers.The idea we had for Zodiac would be to give one euro to protect the aquatic world when the customerbuys a cartridge. Giving money to save the aquatic world is linked with your business domain and oneeuro is symbolic and isn’t enough to represent a waste of money. It means Zodiac is a brand with valuesand people who buy your products care about the protection of the environment. This action inparticular is given as an example but it could be any CSR action which would improve Zodiac’s brandimage. As Nature2 products are targeting a social group with money, this kind of action can work reallywell because the customers are willing to pay for that kind of action.Although this action is important some others are more urgent so we suggest you to implement it duringthe season 2013/2014 and to give a reasonable amount of money, 1500€ should be enough to have agood press coverage. Label : NF environnement Nature 2 Fusion should adopt the french ecolabel, NF environment mark, in order to have proof of the quality and high performance of this product. It highlights our eco-friendly aspect and it provides a good reputation and reliability of Nature 2 Fusion. Thanks to this label set yourself apart from your competitors, increase your customers confidence by a famous and well known NF mark in France and in Europe.The cost of this certification depends on your turnover and the maximum is 9 000 € to have NF brand. Soas it is a long lasting process we thought it would be wise to start it as soon as we can.