Nos projets - Projets 3A - Challenge Zodiac - Projet 1 - A1 – Dossier

3A ESDES G1 A

ABDO Jacqueline BOUGET Adelaïde

BACCON Tatiana CASSERLY Avril

BAUDIN Perrine HUMBERT Laurence

NATURE 2 :

CURRENT POSITION AND

RECOMMENDATIONS

Nature 2: current position and recommendations ESDES 3A G1 A ABDO – BACCON – BAUDIN – BOUGET – CASSERLY - HUMBERT

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TABLE OF CONTENTS

INTRODUCTION ................................................................................................. 2

CURRENT AND RECOMMENDED POSITIONING .................................................. 3 Product ...................................................................................................................... 3

Current Position ....................................................................................................... 3 Recommended Position ........................................................................................... 3

Price .......................................................................................................................... 4 Current Position ....................................................................................................... 4

Place .......................................................................................................................... 5 Current Position ....................................................................................................... 5

Promotion .................................................................................................................. 5 Current Position ....................................................................................................... 5 Recommended Position ........................................................................................... 6

BRAINSTORMING ............................................................................................... 7 Promotion .................................................................................................................. 7 Product ...................................................................................................................... 7 Price .......................................................................................................................... 7

MARKETING PLAN ............................................................................................. 8 Brochure .................................................................................................................... 8 Pool Fairs ................................................................................................................... 8 Actions to improve relationship with dealers ............................................................ 11

New advantages ..................................................................................................... 11 Fair invitations ....................................................................................................... 12 Knowledge of Nature 2 ........................................................................................... 12 Bundle Pack .......................................................................................................... 13 Website ................................................................................................................. 14 SMS Service Alert .................................................................................................. 14

BUDGET ........................................................................................................... 15

TIMELINE ......................................................................................................... 16

CONCLUSION ................................................................................................... 17


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INTRODUCTION

We are dealing with Zodiac’s latest product in its pool care line –Nature 2 Fusion, a mineral water purifier for above ground and in-ground swimming pools. Zodiac is facing two main problems concerning this product which are greatly affecting its sales.

First of all, the product has a weak position in the market of water treatments and secondly, Zodiac has a severe discordance in its relationship with its dealers. The dealers do not trust the product due to a problem with a previous Zodiac water treatment and they are not correctly promoting it amongst the final consumers. It is crucial to remedy these problems in order to launch Nature 2 Fusion with a new competitive image and loyal retailers willing to support the company.

The two main problems presented have B to B and B to C views- one concerns the customer and the other the dealer. Each is very different from the other and requires different strategies.

Regarding B to B actions, we propose offering weekend trips for the three dealers that have the most sales, attending the Paris and Marseille pool fairs, providing a sales pitch to retailers, and distributing new brochures to them. These actions are all in a global strategy to have 800 active dealers by gaining dealer loyalty and convincing them of the utility of Nature 2 Fusion.

Concerning B to C, our actions are designed around the proposal to increase sales of mineral cartridges by 80%. In order to obtain this goal we encourage Zodiac to implement an SMS service reminder to purchase and change the cartridge, improve the website, and sell a bundle pack with the cartridge and chlorine tab.

These actions will translate themselves in an increase in sales thanks to an improved relationship with the dealers and a more convincing image for customers. Zodiac has the advantage that its product can be positioned in a way that is in accordance with the latest tendencies –green movement and health. We only provide the strategies, tools, and budget necessary to follow the fast road to success.

With this proactive and enthusiastic mentality, Zodiac will surely improve its sales and market share. Turn the page to find out more about our solution!


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CURRENT AND RECOMMENDED POSITIONING

PRODUCT

CURRENT POSITION

Nature 2 is a complete water treatment for underground and above-surface swimming pools and spas: it both clears and treats water. It is suitable for all kinds of swimming pools because the device is available in different sizes depending on the surface needed. Zodiac’s Nature 2 Fusion has two systems integrated within it, the use of minerals and chlorine.

Although chlorine is used within this treatment, as with many others, Nature 2 Fusion uses 25% less chlorine. The result is a significant reduction of the harmful effects usually associated with chlorine (e.g. red eyes, dry skin, etc.). This major improvement is due to the use of ceramic balls coated with copper or silver leads which make this product a mineral-based water treatment. These ceramic balls are located inside a disposable cartridge which needs to be replaced every four to six months.

This product is well appreciated by a wide range of consumers. The general consensus is that they feel more comfortable using their swimming pools when treated Nature 2’s Fusion water treatment.

RECOMMENDED POSITION

Zodiac’s Nature 2 Fusion is a revolution in its field. It is a mineral water treatment that uses only a small and controlled dose of chlorine so as to protect the skin, hair, and eyes. Not only is it safer and more natural than a chlorine tab, it is also less damaging for the environment. The fact that Nature 2 Fusion uses minerals, protects the body, and is safer for the environment, is very advantageous for its marketing strategy. However, the dealers market the product as a traditional chlorine dispenser. Why market it as a chlorine treatment when the product has so much to offer? Chlorine is often associated with harmful chemicals, dry skin, red eyes, and all sorts of negative complications. Zodiac should revise its strategy by claiming it’s a mineral-based product that has a better impact on the environment. Mentioning the positive effects on the environment is vital as there is an overall “go green” tendency today. Upon further scrutiny, it should be mentioned that Nature 2 Fusion does in fact use chlorine, but only in a small dose that does not have repercussions on the body. This however, should not be the first approach, the key points to emphasize are the use of minerals and the improved effects on the environment.


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PRICE

CURRENT POSITION

Nature2 Fusion pricing is determined, by the quantity and size of the pool that it is servicing. The largest quantity Nature2 services is 45,0000 gallons. When purchasing the Nature2 product it is important to keep in mind that it is necessary to purchase chlorine cartridges.

All Nature2 fusion systems (main body), it is required to call for a quote. Generally prices can vary from €200 - €350 depending on the dealer. Cartridges also vary from €100 and upwards every season depending on the pool size. Sometimes it may be more economical to buy the system and cartridges at the same time as a bundle pack (see pricing below)

Nature2 Inground CRG25 Pool Purifier

with Cartridge- 10k To 25k Gallon Pool €248.87


with Cartridge - 25k to 35k pool. €254.03


with Cartridge- 35k to 45k Gallon Pool €259.92

We do not have any particular remarks concerning the price of the product. The price is well adjusted and should not impede the success of the product.


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PLACE

CURRENT POSITION

Nature 2 Fusion is distributed in several European countries, such as Austria, Belgium, Spain, France, Greece, Hungary, Italy, Malta, Czech Republic, United Kingdom, Sweden and Switzerland. However, we will focus on France where the market is much more developed and where the product has a better chance to succeed.

Zodiac does not do direct selling, instead it has created partnerships with different dealers in the country, such as Desjoyaux, Aquilus Piscines, Oasis Piscines … and regional resellers or builders.

To be more precise, 90% of these dealers are pool specialists, for example pool builders, resellers, wholesalers selling to pool builders, and pool builders associations. The leftover 10% are heating specialists.

In 2010, Nature 2 had approximately 2,000 partners but only 400 of them were active whereas the potential volume for Nature 2 in France is 1.2 million of pools to be equipped.

The main problem encountered is that only 20% of Zodiac’s dealers are effective in selling the product. This may be due to the fact that pool specialists do not trust the brand or maybe they are not sufficiently informed about the product.

We do not have any different strategy to propose concerning the place. Zodiac company insists on selling via dealers so we decided to keep it that way. Our recommendations concern the product (positioning) and promotion strategies.

PROMOTION

CURRENT POSITION

Internet: Nature 2’s website is quite attractive, it reminds us of the pool industry with it different shades of blue and it is complete. You can find the different product descriptions (Spa or Pool), explanations about the products and their benefits. You can also locate the dealer closest to you so that you know where to purchase the desired product. Finally, you can register yourself online in order to get refill reminders for your cartridges. Depending on the day of purchase, they send an email to the customer every 6 months (for the pool cartridge) and 4 months (for the spa cartridge) to remind them to replace the cartridge.


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Brochures: The information presented on the brochure is complete and very precise. There is information about the different cartridges needed depending on the size of the pool, a clear explanation of the product itself, specifications, sketches and key words that summarize the product (i.e. easy to use, compatible,...)

Trade fairs: Zodiac is present at numerous trade shows and including the one in Lyon. They are also present at the Cologne “International Trade Fair for Sauna, Pool, Ambiance”, but only the German division of Zodiac. Unfortunately, they do not participate at the Paris Fair or the Barcelona Fair which are two major fairs.

Television: Zodiac is present on television commercials which promote the brand in general. A first commercial was launched to display the Zodiac Company as a whole. Two other commercials followed later on promoting Zodiac’s pool care products. However, there are no commercials which specifically talk about Zodiac’s Nature 2 line. This is a problem as the Nature 2 line is hardly visible to direct consumers.

Public Relations: Every summer Zodiac creates temporary public pools in the south of France with free access. It seems that Zodiac has a weak PR strategy especially concerning Nature 2 products.

The Press: Some articles concerning Zodiac and its Nature2 line can be found in specialized magazines, such as pool care magazines or home decoration magazines.

RECOMMENDED POSITION

Concerning the Zodiac website, we believe that sending an email is not the best way to remind customers to change their cartridges. This is tied to a bigger problem which is directly related to the product –there is no way to know when the cartridge is empty.

Considering the brochure, the problem we have identified is that there is too much emphasis on chlorine. This tends to position the product as a traditional chlorine dispenser (since some of the dealers even sell the product as an automatic chlorine distributor) instead of a mineral and natural water treatment.

In order to gain a better reputation amongst their dealers, Zodiac should participate at more fairs. They still need to gain some visibility and this can definitely help.

Zodiac’s general promotional strategy seems weak compared to its objectives, especially concerning its visibility with regards to its retailers. The Nature 2 Fusion is sold only thanks to the few retailers who advise it to their customers. The retailers should therefore be the main target in Zodiac’s promotional strategy.


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BRAINSTORMING

PROMOTION

B2B:

Attend more pool fairs : Paris, South of France (Marseille, Toulouse), etc.

Improve relationship with dealers : create advantages for them (price, transport, bundle packs, 3 best dealers win a weekend…), underline our forces, invite them to fairs, educate dealers about the product, deliver new products quickly in case of big sells and make this process very easy

B2C:

Invest in a good placement for the product, add ad or brochures in stores

Website (nature 2, not zodiac) : put the price or the range of the price, comparison with other methods, messy !

SMS alert system for cartridges: how and when?

PRODUCT

B2C Brochure : explain new position (between organic and only-chlorine treatments)

+ Packaging : clearly written advantages

+ Bundle pack : chlorine, catridge, nature 2

+ Market the product as a natural and healthy choice (vous êtes déjà passé au bio pour la nourriture, les vêtements… pourquoi pas pour votre piscine ?)

PRICE

Adjust price for all dealers


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MARKETING PLAN

As a result of our analysis of the current situation of Zodiac’s new product, we will offer a detailed and well-structured proposal in order to improve the success of Nature 2 Fusion. We have been able to observe the strategies already implemented that are effective and those which we believe should be reviewed. Our proposal offers solutions on a variety of levels, from B to B actions to B to C ones. We suggest a guideline of actions regarding your website, your brochure, your relationship with dealers, your sales offers, your visibility at pool fairs, and your system of reminders. All these actions are comprised within a 2 years implementation period and with a budget of €75,000.

BROCHURE

Upon reviewing your brochure we suggest you modify the way you market your product. You should promote Nature 2 Fusion as a mineral purification system, not a chlorine dispenser. It is crucial that you differentiate your product from traditional chlorine water treatments otherwise it just seems to be a more expensive and not necessarily more effective product. Nature 2 Fusion is a water purifier that uses 75% chlorine, which seems like a lot to the costumer’s eye, so you need to deviate their attention away from this. You should position this product between chlorine treatments and salt-water treatments. Chlorine is the cheapest solution but is known for its negative effects on the human body, while salt-water treatment is very organic but terribly expensive. A mineral purifier, such as Nature 2 Fusion, is the ideal compromise as it minimizes negative effects on the skin and the environment, while being significantly cheaper than salt-water treatments. The strategy is thus to market its environmentally friendly usage and its mineral-based treatment while keeping a highly competitive price.

We plan on distributing 8,000 professional brochures with the new positioning which would cost €2,800. 6,000 of those brochures will be given out to the 2,000 dealers so that each dealer has a few to keep and consult. The other 2,000 brochures will be for the pool fairs that we suggest Zodiac should attend (will be explained later on). These brochures will be placed on the stands for people to view. We will then print 1 million flyers to be distributed to all the dealers. These flyers will be for the customers to take home with them and would cost €11,700. Thus, the entire budget for 80,00 brochures and 1 million flyers will be €14,500.

POOL FAIRS

Zodiac Pool Care should consider attending more pool fairs in France and eventually in all of Europe. Why are pool fairs so important? First of all, it allows the brand to be well known because if the stand is attractive, customers and dealers will be interested in the


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product and will remember the company. Secondly, it is a good way to reveal the new positioning of the product with the launch of the new brochure (seen before) and promote the advantages of the machine. Thirdly, as it will be discussed in the next part, it is the perfect opportunity for Zodiac to improve its relationship with its dealers.

Zodiac is already present in the Lyon fair which will take place between the 13th and the 16th of November 2012, but it is the only fair in which the company is represented. In France, it is the only professional pool fair which may explain why it is the only fair they attend, but they should also be present in others pool fairs for two main reasons. The first one is that professional pool dealers also visit non professional fairs which means that contracts and/or contacts can be made during those fairs. The second reason is that even if there are no sales done at these fairs, they give a lot of visibility of the company and so customers will be more likely to recognize the brand and trust it if they see it in a pool store.

Pool fairs would allow Zodiac, as we mentioned in the previous paragraph, to expand its network. Professional dealers will be present and some will certainly be interested so Zodiac should have a database in which every dealer is stored with details (location of the store, best selling products, etc.) this process would allow the brand to remember dealers and keep in touch (to sell our product) with them.

If individuals are interested in the Nature 2 line, Zodiac should take their names, location and ask them if they are interested in buying the product. Then, Zodiac could adapt the list according to the location of customers and transmit them to their local dealers. This process would increase sales and show to the final consumer that the company reliable and proactive. Furthermore, it would ameliorate the relationship with dealers because would be bringing them new customers.

In France, we have found two other pool fairs that are interesting for Zodiac to attend. The first one is the fair in Paris which should be mandatory for Zodiac to attend since it is a national event. The other one is in Marseille which is also important considering it is a big city in the south of France where there are many swimming pools. We could not find the dates for 2012 but the Marseille fair will probably take place beginning of March 2011.


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Our budget for the Paris fair and the Marseille fair is the following:

Paris pool fair: for the 2011 fair, inscriptions are closed so we will be present at the 2012 Paris pool fair. For this fair, our strategy is to be visible to the public since it is a national and well-known salon. We will invite our dealers and try to be known by the public. For this, we would create a stand of 15 square meters.

Ready stand : €339/sq meters : €5,085

Participation fees (insurance, presentation in the catalog) : €510

E-Invitations cards : €3/card ; for 50 cards : €150

One commercial employee to be present on the stand : Paid 2,500€/month = about €600

Additional fees : (transportation, food and drinks, furniture rental) : €500

The total cost of the Paris pool fair would be: €6,845

Marseille pool fair : Our strategy for the Marseille pool fair is to just be present. Since it is not a professional pool fair and it is not our main fair, we decided to create a small stand of 12 sq meters.

Layed out stand (with sign, wall, spots and fitted carpet): 165€ per square meters : €1,980

Participation fees (insurance, one parking space, five exhibitors badges and electricity): €550

Invitation cards (for dealers) : €2/ card : for 20 cards : €40

One commercial employee to be present on the stand : Paid €2,500/month = about €600

Additional fees (transportation, food and drinks, furniture rental) : €400

The total cost of the Marseille pool fair would be: €3,570

Our total estimated budget for the pool fairs is €10,415 for 2012 and the same price for 2013.


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ACTIONS TO IMPROVE RELATIONSHIP WITH DEALERS

There are three ways to improve Zodiac’s relationship with its dealers and to make it as durable as possible: Create real advantages for the dealers, invite them to fairs that the company intends to join, and find a new way to convince them of the potential of Nature2 Fusion.

NEW ADVANTAGES

One of the ways to improve Zodiac’s relationship with its dealers is to create advantages for them through different actions. This can be done either through the process of selling our product or as a return on sales. The relationship with the dealers is extremely important for Zodiac as the dealers are the ones who recommend the product to the final consumers (who usually have no idea on available offers) and who determine where the products are placed in their shops. A bad relationship with a dealer can be extremely negative for sales.

One of the ways to enhance good relationships is to offer the dealers an interesting margin on the products sold. We can, for example, increase this margin by 2% for every Nature2 Fusion filter system sold and by 1% on Nature2 mineral cartridge sales. This strategy depends of course on the existing contract with each specific dealer.

Dealers can also be interested in an offer dealing with delivery costs. Transportation can be free for purchases of 1,000 cartridges and more or 300 filters and more. The deal should be negotiated with the dealer for specific cases such as privileged clients, etc.

"Top 3 dealers" week-end: The most important way to develop durable relationships with dealers is through a "Top 3 Dealers" week-end contest. The 3 dealers who have the highest turnover concerning filters and cartridge sales combined win a week-end for two people in Nice.

Estimated budget for 2 people (min.-max.):

1 night Hotel: €200-€350

+ Train: €40-€150 (roundtrip estimated for Paris-Nice)

+ Diner: €120

+ Breakfast: €30

+ Lunch: €60

= Total: €450-€710

= Total for all 3 week-ends for 2013 estimated: €1,350-€2,130


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The total cost of the operation is not as high as can be imagined, but it can definitely motivate dealers and cement Zodiac’s future relationship with them.

FAIR INVITATIONS

In order to create a durable relationship with dealers, the company must meet them as soon as possible. This would help the dealers remember our product and by extension know it better. Moreover, creating a meeting with dealers is also a good way to introduce them to new products and give additional information on current products. Meeting with dealers directly is the best way to communicate with them, therefore Zodiac should invite them to the pool fairs.

Zodiac should attend Paris, Marseille, and Lyon pool fairs and all of the dealers must be invited to at least one of these. First, all dealers must be invited to the Paris annual fair because it is the biggest French fair and everyone should be able to participate. Moreover, most big name companies participate in this fair, so our dealers won’t have to come only to see Zodiac.

Then, each dealer should be invited to a more local fair, especially in high pool equipment rate areas. The cost of this action resides mainly in creating the invitations, sending them, and purchasing the fair entrance tickets for dealers. The invitations should be sent both by email and by mail which is more formal, and should include one or two fair tickets depending on the number of employees at the shop. We estimate €2,800 as a total budget: around €1,100 for designing the numeric and paper invitations, €1,300 for fair tickets, and €400 for printing and sending the whole of the invitations.

Finally, dealers should be given a good reason to come and meet the company. It is not that easy actually to create a valid incentive for the dealers to make the effort to attend a pool fair. Of course they can be invited in a formal way in order to discover a new product or be the first to have new information, etc. However, it seems also interesting to insert a casual aspect to this meeting, for example, offering breakfast.

The cost of this operation is estimated to €1.7 which includes two coffees (€0.8) and two croissants (€0.9) per dealer. In order for this operation to work, dealers must respond to the invitation one month before the fair date. A little more coffee and food will be bought for last minute arrivals.

KNOWLEDGE OF NATURE 2

A main problem that we’ve observed is that the dealers do not fully trust the Nature2 product and so they do not advertise it much to their clients. It is important to explain and highlight the forces of the product to them.


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In order to convince them of the utility of the product two actions can be implemented. First, the brochure must be designed specifically for the dealers, therefore it should more technical and more detailed but still concise. The dealers must understand all the different aspects of Nature 2 Fusion and its positioning. Furthermore, in case the dealers have any questions or concerns, they should be aware that they can contact their local sales representative by telephone or email. The brochure can be inspired by the ones already available. Total creation and printing of the brochures is estimated at €500.

The second action is to give all dealers a sales pitch. It will be a short argument to highlight the strengths of the product which are crucial for customers. The sales pitch must be brief, direct, and easily understood by everyone. This strategy will help dealers understand which customers might be more attracted by the product. Zodiac can deliver to all dealers a document with the sales pitch written on it and like the previous action it is not very expensive. A €500 budget seems correct for it.

BUNDLE PACK

Buying the « Fusion » machine with the mineral cartridge and chlorine tab is not an easy decision for the final consumer considering the products have different life spans and need to be changed at different intervals. Moreover, buying all the products separately turns out to be very expensive.

In order to convince customers to buy all these products at once, we suggest offering bundle packs:

A Complete pack including the machine, the chlorine tab, and the mineral cartridge for €433.5 (13% discount).

And a Complementary pack including the chlorine tab and the cartridge for €159.99 (20% discount) for consumers who already have the machine.

The cost of this strategy is quite low because the packaging is not the main priority. The bundle pack is a simple idea, therefore it has to reflect this simplicity and be easily accessible to both dealers and customers.

This project consists in putting together the machine, a cartridge, and a chlorine tab in a simple pack. We were not able to include this project into the budget because there is not sufficient information to estimate the cost of production.

The pack does not necessarily need to be placed on a shelf at the entry of each store; first dealers need to be convinced of the product. Once the dealers acknowledge that the product is interesting to customers, Zodiac can then consider investing in product placement.


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WEBSITE

When we analysed the Zodiac group we quickly discovered that the company had two websites (www.nature2.com, www.zodiac-poolcare.com) which both contained different information. It took a lot of time to navigate through the different websites to find the information needed and to our surprise there was even some discordance in the information presented. It is crucial to remedy this problem.

To avoid costumer confusion, Zodiac should have one only one all-inclusive website with complete and accurate information. A suitable website is required for the costumer to make an informative decision when purchasing Zodiac products over other competitors’ products. A comprehensive price list should be included within the website along with all the detailed information about the products.

The minimum cost is this action is estimated €6,000.

SMS SERVICE ALERT

Our final proposal for Zodiac concerns its after-sales service. The company should provide a SMS service alert for its customers. This action consists of a sending an SMS four months after the customer bought a mineral cartridge to remind him/her that it is now time to purchase a new cartridge. This service will attract more customers since it will prove that Zodiac has excellent after sales care and really cares about its customers. Another SMS could be sent when cartridge needs to be changed, six months after the purchase.

We have listed here numerous proposals to help the success of Zodiac’s Nature 2 Fusion. There are many things to consider and take into account so we examined a number of strategies from different viewpoints. It is important to recognize that Zodiac is dealing with two kinds of customers: dealers and the final consumer. Both need to be convinced of the need and attractiveness of the product for it to succeed. We hope that with our strategic plan, we have awoken some new ideas.


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BUDGET

As a global budget, we estimate all our actions to be worth €59,350:

- Brochure : €14,500 - Pool fairs : €20,830 - Top dealers weekend : €4,260 - Fair invitations : €12,400 - Knowledge of Nature 2: €1,000 - Website : €6,000

We cannot estimate the price of the following actions: the bundle pack and the SMS Service Alert. However, we think that €12,650 will be enough to finance these two actions.

The SMS Alert is a software adaptation, so it will not be very expensive. An IT manager should be able to introduce this new functionality and if not, an external IT expert can implement it. In the unlikely case that a software adaptation is not possible, buying new software does seem out of budget.

Concerning the bundle pack the cost could be quite high because of all the production costs. Nonetheless, we think that this new way of selling is a key point in increasing cartridge sales.


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TIMELINE

Flyers and brochures

SMS Service Alert

Marseille Pool Fair

Paris Pool Fair

Weekend (in May 2013)

December 2012

Estimate, conception, creation, printing

Adapt a software

January 2013

Have a technician implement software

Choose staff, prepare logistics, and food

Send sales pitch to dealers by email

February Ready to distribute

Send out invitations to dealers

March The event

Send informational flyers about this competition

April May June July August September

October

Choose staff, prepare logistics, and food

November Send invitations to dealers

December Event


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CONCLUSION

From a global perspective, our actions will promote efficient and effective communication. Creating a better understanding and closer contact with both dealers and customers is a sure way to increase sales.

Estimating the global sales increase during the next two year is quite hard because there are so many variables to take into account. Nonetheless, we strongly believe that more dealers will actively sell Zodiac’s product if given more information about it. Our goal is for Nature 2 Fusion to become fully integrated in the market of swimming pool treatments as a top-selling solution.


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Business

Nos projets - Projets 3A - Challenge Zodiac - Projet 1 - A1 – Dossier