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Transcript of Surfside
Emphasis placed on retaining loyal customers
Jacuzzi Average Margin = $2,253.36
Customers: Price Sensitive, Quality-Conscious, Dealer/Brand Loyalty
Company: The goal is to expand hot tub sales which currently is 25% of Surfside's revenue
Competition: Seaway Pools and Hot Tubs, Backyard Pool and Spa, Sundance Spas
S: willingness to spend, repeat customers, experienced and successful general manager, Ontario has 39% of all hot tub sales, family atmosphere, well-respected in the community
W: hard to retain good employees due to seasonality, has to dedicate 90% of floor space to Jacuzzi which could hurt Pacific sales, no marketing history to base strategy off of, inexperience in dealing in a competitive market
O: discounts from each brand for selling their product, co-operative advertising campaigns with Pacific and possibly Jacuzzi, possibility of marketing the hot-tubs as a product for home-improvement and entertainment.
T: direct competition from Seaway Pools and Hot Tubs, Backyard Pool and Spa, and Sundance Spas, indirect competition from Wal-Mart and Canadian Tire, unpredictable weather.
Product: Jacuzzi & Pacific brand hot tubs & other pool/outdoor items
Price: $4,544 - $9,301
Place: Surfside Leisurescapes,
Promotion: Direct Mail, Magazine, Home Show
Current Floor Plan
Began in Newmarket, Ontario in 1983 selling building supplies, pool tables, and computers.
Rapid sales growth of 15-20% each year.
Radio: Targeting whole community
Era Banner: Targeting whole community
Food and Home Magazine: Targeting people who care about updating homes
Direct Mail: Cost efficient way to offer promotions to address seasonality
New Market Home Show: Research tool for people further in buying funnel
Jacuzzi and Pacific
17 different Hot Tubs
Sales peaking in July and August
Wanting revamp in Hot Tub division
How Does This Help?
Food and Home Magazine
Offer discounts and incentives to become repeat buyers
Promotions during winter months
About 3,000 pieces could be mailed for selling 1 additional hot tub ($0.69 each)
Provide info about quality
Promotions during winter
Need to sell 1 additional hot tub
New Market Home Show
Targets customers far in buying funnel
Establishes relationship between customer and company
Allows customers to view and compare quality of product
Need to sell 2 hot tubs to cover the materials and vendor rental ($1,000 & $2,500)
Makes buying easy
Offers information to potential customers
Provides incentives to become loyal customers
Pacific Average Margin = $1,396.65
Weighted Average Margin = $1,963.82
• Use direct mail with an eye towards retaining loyal customers (Targeting our specific audience)
• Advertise using food and home magazine to attract quality seeking customers (already in buying cycle)
Home show: Customers already in market for these products, may increase research material for customers to come later
8,000 sq. ft.
Remodel Show Room
Customers tend to turn right when entering store.
Hot Tubs are last product seen.