The Party TubThe Party Tub

A Marketing PlanA Marketing Plan

Brian SchaferBrian SchaferChris RathbunChris RathbunAaron BrooksAaron Brooks

IntroductionIntroduction Our product: a high-end Our product: a high-end

luxury spaluxury spa Designed to accommodate 4 Designed to accommodate 4

to 6 people to 6 people Built with the highest quality Built with the highest quality

materials materials Includes:Includes:

Fully adjustable jetsFully adjustable jets Underwater lightingUnderwater lighting Integrated sound system Integrated sound system Flat screen waterproof TV and Flat screen waterproof TV and

DVD playerDVD player

IntroductionIntroduction Product allows Product allows

consumer to create consumer to create their own little their own little haven - watch a haven - watch a movie, listen to movie, listen to music or even play music or even play a video game. a video game.

Goal - pure Goal - pure relaxation in a relaxation in a luxurious and luxurious and entertaining settingentertaining setting

SWOT AnalysisSWOT Analysis

Strengths Strengths Ability to outsource workAbility to outsource work UniqueUniqueTop QualityTop Quality

Weaknesses Weaknesses High initial costsHigh initial costsHigh personnel costsHigh personnel costsLack of reputation initially Lack of reputation initially

OpportunitiesOpportunities Almost untouched segment of Almost untouched segment of marketmarketJoint ventures with designers, Joint ventures with designers, lowering marketing costslowering marketing costsSegments are geographically Segments are geographically centeredcentered

Threats Threats Sensitive to economySensitive to economyObsolete technologyObsolete technologySmall target segmentSmall target segment

Internal EnvironmentInternal Environment Ability to outsource Ability to outsource

workwork High quality productHigh quality product Strong connections Strong connections

with contractors and with contractors and celebrity figurescelebrity figures

Strong network of Strong network of sales agents and sales agents and distributorsdistributors

Well developed Well developed construction planconstruction plan

External EnvironmentExternal Environment Target industryTarget industry

Small and elite groups of consumersSmall and elite groups of consumers Residing in clusters around major cities Residing in clusters around major cities Focus on quality, brand and status then a price figureFocus on quality, brand and status then a price figure

Our focus will be more on the image of the Our focus will be more on the image of the product product Attempt to convince consumers that we can provide Attempt to convince consumers that we can provide

what they want (Quality, Style, Status)what they want (Quality, Style, Status) Small marketSmall market Fairly high level of competition in the beginningFairly high level of competition in the beginning Competition will level off after timeCompetition will level off after time

Will work to maintain our image and product qualityWill work to maintain our image and product quality

External EnvironmentExternal Environment Unique position – product not offered by a competitorUnique position – product not offered by a competitor Will create personal relationships with designers and Will create personal relationships with designers and

decoratorsdecorators Must integrate our product in advertisingMust integrate our product in advertising

Hollywood / Entertainment IndustryHollywood / Entertainment Industry Outsourcing components of our productOutsourcing components of our product

Lessens our materials and storage costLessens our materials and storage cost Opens opportunities to use joint venture advertisingOpens opportunities to use joint venture advertising

• Such companies as Such companies as SonySony or or PanasonicPanasonic for AV components for AV components• Allows people to see our brand in conjunction with those who are Allows people to see our brand in conjunction with those who are

already in the top of their field, will boost perception of our productalready in the top of their field, will boost perception of our product Able to focus more on the whole experienceAble to focus more on the whole experience Focus upon support, individual personal touch and Focus upon support, individual personal touch and

quality quality Will gain entrance into this elite industry and be Will gain entrance into this elite industry and be

successfulsuccessful

Value Proposition Value Proposition

Through quality, service, Through quality, service, luxury and technology we will luxury and technology we will offer a total experience to our offer a total experience to our customers by being unique, customers by being unique, personal and creating an personal and creating an individual haven away from individual haven away from the tiresome world.the tiresome world.

Market SegmentationMarket Segmentation This spa qualifies itself as a high-end consumer product – luxury This spa qualifies itself as a high-end consumer product – luxury

itemitem Must compete with other high-end spasMust compete with other high-end spas Targeted towards baby boomers with a high income Targeted towards baby boomers with a high income

At least $100,000 annuallyAt least $100,000 annually PRIZM clustersPRIZM clusters

Urban Gold CoastUrban Gold Coast• Elite urban singles and include ages from 45-64Elite urban singles and include ages from 45-64

Young LiteratiYoung Literati• Upscale urban singles and couples with professional occupations ranging in Upscale urban singles and couples with professional occupations ranging in

age from 25-44age from 25-44 Executive SuitesExecutive Suites

• Between the ages of 45-64 and most belong to a health club. Between the ages of 45-64 and most belong to a health club. Geographics - upscale citiesGeographics - upscale cities

Marina Del Rey, CAMarina Del Rey, CA Blackhawk, CABlackhawk, CA Laguna Beach, CALaguna Beach, CA

Market SegmentationMarket Segmentation Targeted advertising - publicationsTargeted advertising - publications Examples of magazinesExamples of magazines

EntrepreneurEntrepreneur GQGQ SelfSelf

Targeted advertising - health spasTargeted advertising - health spas Higher income individuals targeted through channels Higher income individuals targeted through channels

that directly affect themthat directly affect them Primary focus upon consumer incomePrimary focus upon consumer income

Higher income individuals will be the ones who can Higher income individuals will be the ones who can afford this luxury item. afford this luxury item.

The secondary segment focus is ageThe secondary segment focus is age Baby boomer generation Baby boomer generation

• More disposable incomeMore disposable income

Marketing StrategyMarketing Strategy Spa positions itself with its high priceSpa positions itself with its high price The “spa of all spas”The “spa of all spas” This fully loaded spa can be used as a status symbol, This fully loaded spa can be used as a status symbol,

one who can afford this spa is well to do above the restone who can afford this spa is well to do above the rest

Understanding the other brands in this same marketUnderstanding the other brands in this same market Jacuzzi Jacuzzi

• Known brandKnown brand• Long historyLong history• Respect for the brandRespect for the brand• Brand shortcomings (closest spa holds only 2 people)Brand shortcomings (closest spa holds only 2 people)

Our product differs from Jacuzzi Our product differs from Jacuzzi Offer similar idea of a spa but seating for up to 4 to 6 peopleOffer similar idea of a spa but seating for up to 4 to 6 people Cup-holders and several audio/video hookupsCup-holders and several audio/video hookups Designer colors for customizationDesigner colors for customization

Product StrategyProduct Strategy

Most deluxe and Most deluxe and customized spa customized spa available available

Highest quality Highest quality parts, materials, parts, materials, and warranty and warranty

Support optionsSupport options

Product StrategyProduct Strategy

DVD SystemDVD System

Flat screen televisionFlat screen television

Floating remote controlFloating remote control

Built-in CD/AM/FM stereoBuilt-in CD/AM/FM stereo

Surround sound systemSurround sound system

All electronic items All electronic items are waterproofed are waterproofed

for safety and for safety and durabilitydurability

Product StrategyProduct Strategy

Energy-efficient, self-draining, insulated pumpsEnergy-efficient, self-draining, insulated pumps

Slip-resistant bottomSlip-resistant bottom

6 Fully adjustable jets6 Fully adjustable jetsUnderwater lightingUnderwater lighting

Product StrategyProduct 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 StrategyProduct Strategy

• FREE professional installation and onsite service

• 3 year onsite warranty

• Parts / labor / travel, included

Pricing StrategyPricing Strategy Unique product in marketplace Unique product in marketplace ““Skimming” - entry pricing strategySkimming” - entry pricing strategy

Allows us to recoup R&D costs quickly Allows us to recoup R&D costs quickly Takes advantage of originalityTakes advantage of originality

4-6 person Hot Tub4-6 person Hot Tub Equipped with a top of the line waterproof flat screen TV/DVD player Equipped with a top of the line waterproof flat screen TV/DVD player

with surround soundwith surround sound Designed and developed especially for the rich and famousDesigned and developed especially for the rich and famous

Starting price ranges $35,000 – $40,000 retailStarting price ranges $35,000 – $40,000 retail Selling to retailers/wholesalers for around $25,000. Selling to retailers/wholesalers for around $25,000. After initial run on the market, price will lower as competitors enterAfter initial run on the market, price will lower as competitors enter May be able to later offer a more affordable rateMay be able to later offer a more affordable rate

Would help to expand target marketWould help to expand target market Price leadershipPrice leadership

Forced the competitors to follow our lead on priceForced the competitors to follow our lead on price Recouped our R&D costs.Recouped our R&D costs.

Promotional StrategyPromotional Strategy Luxury item, afforded by the wealthy Luxury item, afforded by the wealthy Promoted by providing a sample model to lifestyle shows Promoted by providing a sample model to lifestyle shows

such as “MTV Cribs” and other “hip reality” shows such as “MTV Cribs” and other “hip reality” shows Wealthy clients aware of the productWealthy clients aware of the product

Possible trials/demonstrationsPossible trials/demonstrations Discounted products sold to hotels and resorts – ability to Discounted products sold to hotels and resorts – ability to

purchase or request more informationpurchase or request more information Magazines and publications Magazines and publications

Communicate the symbolism behind having our hot tub Communicate the symbolism behind having our hot tub Hollywood style partiesHollywood style parties Rich and famousRich and famous CelebritiesCelebrities

Trade showsTrade shows Demonstrate and showcase product to home builders, Demonstrate and showcase product to home builders,

designers, and decoratorsdesigners, and decorators

Promotional StrategyPromotional Strategy Celebrity testimonials/ Marketing PeopleCelebrity 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 JordanSix-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 StrategyDistribution Strategy Our showroomsOur showrooms

Usage demonstrationsUsage demonstrations Free trialsFree trials

Showrooms of distributors around the country Showrooms of distributors around the country TradeshowsTradeshows Make contact with distributors, contractors, Make contact with distributors, contractors,

designers, decoratorsdesigners, decorators See product used on TV showsSee product used on TV shows Website/internet advertisingWebsite/internet advertising

Website to “request more information”Website to “request more information” Find a distributor in the local areaFind a distributor in the local area

Distribution StrategyDistribution Strategy Web site allows the customer to customize the colors Web site allows the customer to customize the colors

and some of the features onlineand some of the features online Virtual modelVirtual model

                                            

 

 

                                             

Possible AdvertisingPossible Advertising

Possible AdvertisingPossible Advertising

Possible AdvertisingPossible Advertising

Possible AdvertisingPossible Advertising

ConclusionConclusion

Thank you!Thank you!