Nos projets - Projets 3A - Challenge Zodiac - Projet 3 - B1 – Dossier

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  • 1. 2011Zodiac Final ReportDI STEFANO Mlissa, FAVARD Camille,FRYCKOVA Veronika, JEANNIN Camille,RIBEIRINHO Nelson, THELOT Latitiagroup B1Marketing 3.014/10/2011 0

2. OUTLINEExecutive summary ....................................................................................................................................................... 1Part 1: Background situation ........................................................................................................................................ 2 A. Analysis of the current positioning and marketing mix .................................................................................... 2 B. Our recommended positioning ......................................................................................................................... 4Part 2: Brainstorming .................................................................................................................................................... 5 A. Enhance communication with dealers ............................................................................................................. 5 B. Inform and attract customers ........................................................................................................................... 5Part 3: Marketing plan .................................................................................................................................................. 6 Marketing objectives ............................................................................................................................................ 6 Marketing strategy................................................................................................................................................ 7 Marketing mix ....................................................................................................................................................... 7 Action plan & timing ............................................................................................................................................. 9 Budget ................................................................................................................................................................. 10Illustrations outline .................................................................................................................................................... 111 3. EXECUTIVE SUMMARYZodiac is the leader on the market of mineral water treatment. Even though the potential market ishuge, sales are not growing and actual customers do not renew cartridges. The issue that company facesis crucial: How to increase sales and acquire customers loyalty? Zodiac Nature 2 positioning is : "Sansdoute la solution idale pour avoir une eau pure et douce . However, from the marketing mix analysiswe found out a strong discrepancy between what the company wants to stand for (positioning) and themessage received by the consumers (communication). Not only the product may be perceived asexpensive by the customer (no transparency about the installation and final cost), but also there is aconfusion about the chlorines action. If a customer chooses a mineral solution, it is because he doesntwant to use chlorine in the process and as a result can reject the purchase of our product. In addition,the previous product which had reliability issues is still on the market and no communication wasreleased regarding the topic. In a nutshell, the communication (for both consumers and dealers) is themain issue, but can become the differential advantage for Nature2.Our marketing campaign will alternate pull strategy activities during low seasons and a push strategyduring high seasons. The pull strategy is essential: Nature2 Fusion is a valued product, implying somerisks. We face three targeted segments which need to be educated: existing customers, 70% of poolowners who are currently using chlorine and future pool owners. Solutions to remind actual customersto change the cartridge are multiple: sending emails and SMS, putting sticker on the machine... Vodcaststo explain the installation to dealers and about advantages of the system for customers should be madein order to present the product and provide some marketing messages. Having an online presence isindispensable to strengthen the communication with customers that is currently inexistent: post videoson YouTube or use Twitter and Facebook, create a forum on the website and reorganize it. It may bevery efficient to create a community so that consumers can get attached to the product and to thebrand. As a result, we have to hire a person responsible for the control of information on the Internet.Zodiac should focus more on its differential advantages such as using natural minerals to treat waterand the ease of use... In addition, there are opportunities to acquire other differential advantages by theacquisition of a certification for example, which will reinforce the reputation of the brand, currentlyinfamous. Another interesting alternative to boost their sales and optimize the merchandising is toorganize a competition between the dealers to win a trip abroad.What does this mean for Zodiac? By 2015, we plan to reach a 12% market share by focusing on recentlybuilt swimming pools (10% each year), which represents about 265 000 devices according to ourforecasts, including the current 32 000 products in France plus almost 62 000 with new swimming poolsand the rest by selling other devices. Regarding the renewed cartridges, we want to reach a replacementrate of 75% by 2013 after the launch of the promotional campaign. These objectives are reachable andas we have seen, the opportunities are present.Zodiac is currently facing an issue, but by implementing an effective and efficient communicationstrategy, the leader on the market can not only easily reach our targets, but exceed them. 1 4. PART 1: BACKGROUND SITUATIONA. ANALYSIS OF THE CURRENT POSITIONING AND MARKETING MIXZodiacs current positioning for Nature 2 is: "Sans doute la solution idale pour avoir une eau pure etdouce". In order to see if this positioning is optimized, lets have a closer look on its marketing mix.1. PLACEZodiac has a 100% indirect model of sale (B to B to C). Overall, there are 2 000 certified resellersspecialized either in heating or pool installation, however only one fifth is actively selling the product. Aslong as the resellers are the main prescriptors; their credibility is at stake. Nature 2 products areconsidered as risky products: Zodiac has no competitor on the market and in addition its last producthad issues and had to be removed from the market. The company offers a high level training andorganizes exhibition stands so as to promote new products. In addition, a special section on the websitedesigned for them (not accessible by the customer) and according to Zodiac, they also receive specialbrochures. Nevertheless, no special incentives are offered to them.2. PRICEThe price starts at 299 for the device itself, and is comprised between 69 and 99 , taxes included, forthe cartridge. As a result, the product may seem expensive, as you have to add the installation costs (notdetailed on the website), plus the cost of the cartridges replacement after the season.Zodiac points out that Nature2 is cheaper compared to other treatments if we take in accountprice/efficiency. However, Nature2 remains twice more expensive than chlorine, that represents 60% ofmarket.3. PRODUCTThe principle of the product Nature2 Fusion:This system combines two technologies that are a cartridge and a chlorine distributor.The cartridge is composed of active ceramic mineral for an autonomous treatment of the water during 6months. The ceramic balls in the cartridge contain copper and silver. These components have adisinfecting and clearing action.The chlorine distributor can stock 10 chlorine pebbles, which represent autonomy of almost twomonths. When the water is filtrated by the cartridge, the chlorine distributor diffuses the necessaryamount of chlorine for an optimized disinfection.The product Nature2 Fusion has the following features: guaranty 3 years except for the cartridges,mineral purification of swimming-pool water, ceramic innovation, few quantity of chlorine, clearingsystem and bactericide system.This product fit all sizes of swimming-pool (from 20 to 170 m3).2 5. This product is simple, healthy, and comfortable when you use it. However, the company found out thatcustomers do not change their cartridges every 6 months or every year (depending on the utilization). Ifthe costumers do not change the cartridge, the device does not work as effectively.Globally, every 5 minutes a product is sold in the United States, which is not the case of Europe. Zodiachad problems with a previous product of the same range: Nature2 Pro Plus. Because of this product, thesales do not grow; dealers do not trust the products anymore. This unfortunate experience had a badeffect on the corporate image and on the reputation of the company.Furthermore, this company creates a lot of new products each year. For example, 20 products havebeen created in 3 years. Even if it is very important to innovate, Zodiac should innovate less and focuson existing products.4. PROMOTIONZodiac has opted for a strong marketing communication with 40 promotional actions a year. Theseactions include TV, retail shops, and magazines. It also has a web page with three different sections:corporate (information about the company), professional (dealers can login) and customers.However, too much information can create confusion, customer can be lost when visiting the website:where to start his research, which section to go (pictures are confusing)Moreover, there is an absence of community. The website is very impersonal; customers should be ableto identify themselves with other customers. The perceived risk of installation would be reduced.The marketing is not focused enough on added values. The whole communication insists on innovationinstead of health, quality, and ease of use or efficiency. There is a discrepancy between the positioning(ease of use) and the communication (innovation).There is also no communication for mothers who are worried about disadvantages and consequences ofchlorine treatment, and can be the first users to seduce. On actual brochures, we see a young womanwho takes care of her skin. The customer expects more to see a picture of a mum enjoying the comfortand a clean pool without chlorine.Zodiac has currently only their dealers as main prescriptors, however other actors could become theirprescriptors as well, for instance the dermatologists. Zodiac does not seem to take advantage of word ofmouth, which is the cheapest and most efficient marketing strategy. There are no round tableconferences organized for customers. There is a clear absence of Pinko marketing: no co-creation withthe customer.In the recent past, Zodiac had to remove from the market its product because it had issues.Nevertheless, the company should have emphasized that all products were removed, replaced for free,and made it explicit how they improved the product. 3 6. B. OUR RECOMMENDED POSITIONINGBased on the marketing mix analysis, we can conclude that the actual Zodiac positioning for Nature2 isnot optimized. The product has several main weaknesses; however there are opportunities to improveas we can deduce from the SWOT analysis as well (illustration n1). Lets have a look at these right now.First of all, the market has a huge potential: at least 70% (this represent chlorine users) of the market iscompatible with Nature2 products. The market is not saturated; Zodiac can still gain pieces of themarket thanks to its product compatibility. As a result, a communication more focused on it seemsnecessary.Creation of relationship with dealers is a must: Zodiac can offer better training and improve thebrochures. The company should give them tips for sales, ask them for feedback. The final goal is tocreate trust and loyalty by understanding their values, needs and visions (purpose-identity-valuesmodel).The new Zodiacs product is entitled Nature2 Fusion. This name is too close to the previous productNature2 Pro Plus, so it is difficult to dissociate the previous and the actual product. It could be a goodidea to change the name of the product or to insist on the word FUSION instead of Nature2.Regarding the product itself, Zodiac should focus more on efficiency/price comparison. The product willnot seem as expensive as it may seem now. Another option is to offer bundled price or discounts. Lastbut not least, Zodiac should become more transparent about prices and the total cost by giving concreteexamples of people who have installed the system by a specialist.Promotional actions do not seem very efficient if we take in consideration their amount and quasi noimpact on sales. Zodiac should privilege the quality of their promotional actions instead of quantity. Inaddition, it has to reorganize its website, make it more complete and more comprehensive. Why not toinclude articles, open forums for discussions, use pictures?The relationship with customers is crucial. They are using the product and know exactly what they like ordo not appreciate about it, what they would change. The Pinko marketing finds its whole sense here.Zodiac should organize round table conferences, manage discussions on forums etc.Today, Zodiacs prescriptors are dealers; specialists in pools and heating. However, what about includingdermatologists as well? They can insist on its healthful effects and consequently convince easily somecustomers of the benefits of the product, thanks to their credibility. Mothers are also a significanttarget: once they are convinced, they are also a credible source of WOM.Last but not least, Zodiac should become more open. For instance, they should use the former productin order to recreate trust and relationship with dealers and customers by explaining exactly what wentwrong and what was done in order to avoid problems in the future.The actual positioning of Zodiac does not focus on the key advantages of the product: ease of use, lessexpensive compared to other methods, comfort, health, compatibility.Our recommended positioning is as follows: Une solution confortable un prix raisonnable, pour une eau naturellement purifie.4 7. PART 2: BRAINSTORMINGA. ENHANCE COMMUNICATION WITH DEALERSFailure of previous device: We have to face a major problem. First of all, Zodiac could distribute somebrochures about the product to the dealers. These brochures must comprise information about theproduct. Zodiac should include statistics that compare the annual cost of Nature2 Fusion with a classicalchlorine device. Thus, it will strengthen the reputation of the brand, stained by the previous Nature2product. These brochures must feature guidelines and advice on selling te...

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