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RUNNING HEADER: EXECUTIVE SUMMARY 1

RUNNING HEADER: EXECUTIVE SUMMARY 2

Executive Summary

Antone Menzsa

Rasmussen

Author Note

The research is being submitted on July 12th, for Marianne Falacienski B323/GEB4410 Section 01 Advanced Principles of Marketing - Online Plus - 2015 Summer Quarter

Table of Contents Cover Page 1 Executive Summary 2 Situational Analysis 5 SWOT Analysis 7 Marketing Plan 9 Action Programs 12 Tactics ………………………………………………………………………………………………………………………………………….15

Executive Summary

Elite Home services (EHS) is currently Southern California’s largest preventive maintenance company for residential homes. EHS has implemented a preventive maintenance contract with a large portion of Southern California’s residents in Los Angeles and Orange County. EHS provides 3 home inspections a year which allows the home owner to have their water heater and plumbing system checked, air condition and furnace for a low price of $119 a year. Technicians perform a thorough evaluation on the home and give home owners a evaluation sheet with all pros and cons of each system. If any cons are discovered the homeowners receives some recommendations on how to fix the issue. This is what our business is based around, during the home inspections our technicians begin to build rapport with customers and get them involved into investing financial resources into their home to keep from having a flood or emergency.

In addition to the above mentioned homes inspections, EHS In the year of 2016 will be focusing on water purification. California has undergone a very serious water shortage otherwise known as a drought. Most of our water sources have been depleted and they state has been forced to start recycling water. This reclaimed water is filtered sewage water that has an increased amount of chlorine and ammonia and other harmful elements that intensify the deterioration process of home owners plumbing system which will ultimately cause a flood. By bringing this information to a customer’s attention they immediately feel the need to find a way to protect their home from these harmful elements that are placing their home at risk as well as their bank accounts. EHS has a solution that will aide in the protection of their plumbing system, health and save the customer money.

Elite Home Services provides customer with state of the art whole home central water filtration with a conditioning element to inhibit lime scale, sediment deposits and mitigates the deterioration process of the city’s potable drinking water. In essence our water purification system turns your homes water into purified bottled drinking water throughout every faucet within your home. The home filtration comes with a ten year media guarantee. This means for ten years you will not have to change the media which removes all the organics the city places in the water. Our filtration systems come preset with a back wash setting a rapid rinse which removes all impurities within the media and flushes them out.

Elite Home Services is on a mission to help the neighboring communities within the Southern California area protect their homes and provide them with healthier water then what is actually being delivered to their homes via city water lines. EHS has set a goal for the next three years to successfully get 25% of their existing clientele involved in whole home filtration.

Situational Analysis

Target Market

Elite Home services will be targeting Caucasian women in this market are between the ages of 26-46 with children. This specific audience is a generation of health conscious consumers that value their family’s health and wellness is a priority at the top of their list. Within this target market there are approximately 25 million strong with a significant purchasing power since their annual income is upwards of $60,000.00. (Salazar 2006). This target audience are very knowledgeable, educated and understand the importance of water purification and conditioning. With well-established careers in the southern California, south county general region these women and their families live comfortable lifestyles and maintain the ability to spend disposable income to benefit their family.

Market Needs

Currently, the water purification industry is saturated with numerous products that aid in water purification. Companies such as LifeSource, Culligans and Nuco all aid in the purification process. However, each of these purification systems has a softening element to the water which leaves the skin feeling smooth by clogging the body’s pores and the ability to secrete natural oils from your skin. The softening agent that is used is Rock Salt and or Potassium both of which muddy the water back up to where customer must place a reverse osmosis system under their kitchen sink for potable drinking water. These systems are also highly corrosive to the homeowners plumbing system. Water and salt mixed together are highly corrosive and eat away at copper piping very quickly. Our filtration and conditioning system mitigates the corrosion process, purifies the water, and removes organic chemicals such as Chlorine and Ammonia which aid in the deterioration process.

Trends and Growth

Currently in California there is a huge demand for purified water that does not contain chlorine and or ammonia. Although both chemicals act as a disinfectant for the water they are both harmful chemicals and should not be consumed by the body. In addition, the California drought has brought a sense of urgency in conservation of water. The above mentioned purification systems waste as much as ten gallons of water just to create one. Elite Home Services has the perfect product to fill the conservation needs of water and remove unwanted chemicals within the water and not waste a single gallon of water. Due to the drought and reclaimed sewage water, this market will have very aggressive growth within the next 3-5 years.

SWOT ANALYSIS

Strengths

· A very strong service-based company culture.

· The ability to meet customer's particular needs.

· An already existing customer base.

Weaknesses

· Steering customers away from softening and spot free water

· Capital expenses required to stock the demand for units

· Difficulty in establishing brand equity from much larger corporations

Opportunities

· Participation in a growing market.

· The huge diversification of potential customers, reducing risk if there is a downturn in a specific industry.

· Operating efficiencies that are attainable as the business grows.

Threats

· Changes in technology that could affect companies that are heavily invested in current technology.

· Future/potential competition from a large company that decides to take a more flexible approach to meeting customer's needs.

· Changes in the regulatory environment (primarily applicable to the higher purity products).

Competitive Review

There are a number of competitors. As I have mentioned above LifeSource, Culligans and Nuvo and the three top competitors in our market. All three have the same product in essence and neither one stick out more than the other. Differentiation between them and our company is our system not only protects your health but the health of your home as well.

Marketing Plan

Market Segments

The target markets that will receive the most attention will be the sectors which require the highest levels of pure water. Within the South County region, there are specific cities that are still on well water and have not been affected by the drought. Other cities such as Laguna, Newport, Huntington Beach, Costa Mesa, Fountain Valley, Aliso Viejo, Mission Viejo and San Juan Capistrano all have seen an decrease in water quality that each city is providing for them. In addition to poor water quality, we have noticed at EHS an increase in demand plumbing calls regarding leaks in the homes of this specific segment of our target market. There is a direct correlation between the two. Water by itself is a highly corrosive element start adding other chemicals such as Chlorine, Ammonia and other volatile organic compounds or (Voc’s) that are harmful to the body and affect plumbing systems.

Our water filtration system or (Spectrum Series system)s utilize our advanced, user-friendly digital valve head and adjustable bypass, which fits over 90% of homes in the United States and accommodates line sizes 3/4” to 1 1/2” without inhibiting flow rate or pressure. A Spectrum installation is a simple process, much like installing a water heater. Once installed, the self-cleaning Spectrum systems provide maintenance-free filtration for years, allowing you to enjoy the convenience, protection, and health benefits of the highest quality filtered water at every tap in the house, every day.

Other competing water filtration systems add salt or potassium to the system to soften the water and then the need for a reverse osmosis system or (RO) systems under the kitchen sink to make the water drinkable. Our spectrum series eliminates the need to add a highly corrosive element to another corrosive element to supply homeowners with quality water to each fixture within their home. In addition, RO systems use up to ten gallons of water to create 1 gallon of pure water. Our system is designed to have purified water through longer contact time with our carbon media to ensure the unit is as efficient as possible.

Product Strategy

Because Elite Home Services is already a well-known and established plumbing company that specializes in water filtration and preventive maintenance, our EHS brand has been widely spread throughout the South County region as clean, honest, respectable and knowledgeable plumbing company that truly has the consumers best interest in mind at all times.

Prior to the drought, EHS has been installing our filtration units for Ten Years on a small scale to our retention clients. Due to the demand of water filtration by home owners, EHS will be actively conducting water test at new and previous clients homes as part of their preventive maintenance plan they have with us. This will allow our technicians to promote the product within our existing and first time customers to see firsthand the quality of the water that they are receiving.

Pricing Strategy

When looking at other competing companies and their pricing, EHS will certainly be able to undercut each of the competitors with home filtration systems. Due to the design of the spectrum unit, it can be installed in 90% of all home applications. In addition, other competitors have to store their products in warehouses and also stock their replacement filters that need to be changed on a monthly basis. EHS has created a strategic partnership with Environmental Water Systems (EWS) whom has agreed to house all spectrum units for us. This partnership is beneficial and cost effective for both companies. EWS is trying to cut down marketing costs to help put more back into the business for growth. EHS fills that marketing slot for them buy creating a need and market for this product.

Do to this partnership, the price across the board for all applications will be set at $5995.00. When it’s all said and done EHS plans on receiving a minimum of 15% after all overhead cost have been backed out. This will leave EHS with $899.25. Before the drought and high demand for filtration systems EHS averaged 20 units a week. Now that there is a much needed demand for filtration systems home owners are breaking the bank and have paid up to $7400.00 on top of a monthly maintenance fee. Our price is very competitive and fair.

Distribution Strategy

Action Programs

As stated in Elite Home Services Marketing plan, Majority or our product strategy and promotion will be completed solely while in the consumers home. EHS has created a perfect environment for the end consumer to obtain knowledge from a trust worthy technician that they know and trust and have done business with before. Prior to the drought, EHS has been installing our filtration units for Ten Years on a small scale to our retention clients. Due to the demand of water filtration by home owners, EHS will be actively conducting water test at new and previous clients homes as part of their preventive maintenance plan they have with us. This will allow our technicians to promote the product within our existing and first time customers to see firsthand the quality of the water that they are receiving.

In addition, EHS partnered with Environmental Water Systems will actively take part in the trade show s and representatives at local supply houses such as Fergusons Pipe Supply, Express pipe, Niagara Plumbing Supply and Irvine Pipe Supply in Southern California. The above listed supply houses have been in business with EHS for over ten years and will directly aid in our push strategy of putting our product in front of the customers face. IN addition a member from our VP Robert Ross and Parker Trent (field technician) will be on site for 4 hours. We have been in business with each of these supply houses for over ten years and all have agreed to allow us to promote in their facility free of charge because of the material we will buy from them for installations of Spectrum Units.

Fergusons Pipe Supply

· 8/15/2015

· Robert Ross and Parker Trent

· Promote product, answer questions from consumers conveniently at supply house. On hand bottled water directly from our Spectrum Unit and pass out 10% off coupons for all valued customers that get involved in Elite Home Services preventive maintenance.

· Express pipe

· 9/15/2015

· Robert Ross and Parker Trent

· Niagara Plumbing Supply

· 10/15/2015

· Robert Ross and Parker Trent

· Irvine Pipe Supply

· 11/15/2015

· Robert Ross and Parker Trent

Tactics

In order to carry out the below marketing objectives, Elite Home Services will need to provide Ross and Trent with Documentation that gives full spec analysis of our Spectrum unit. This literature will aide in the customers’ ability to fully understand if central water filtration is for them. Within the brochure a step by step process in pictures with side notes will show the customer exactly how our system works. In addition to the brochures that need to be made, overcoming objections will be key for Ross and Trent while out promoting the product. In order to give customers valuable information, we need to ensure that each member of our team is knowledgeable in every aspect of our central water filtrations which include; all the benefits of our system as well as the benefits of our counterparts. This way the customer is receiving valuable information and will see the benefits of central water filtration as opposed to water softening and reverse osmosis which waste tons of gallons of water during our drought. Once the marketing department has completed all the above items our field marketing reps will be able to attend the product marketing events and be fully able to spread a wealth of knowledge in regards to central water filtration.

Another avenue of our product promotion is through our already existing clientele. These customers will receive on the spot information about central water filtration during their annual visits with us. Technicians will be supplied with all information listed above to ensure they are able to answer any questions the customer may have. If the customer wants to know more about the units we can direct her to our website or have a supervisor come out and speak directly to the customer.

Completion Dates for tasks

· Brochure 8/12/2015

· Spec Analysis 8/13/2015

· Over coming objections 8/14/2015

· Website 8/13/2015

Marketing Organization

· Marketing implementation- Aaron Hull

· Responsible for assigning all tasks to qualified individuals that will complete tasks on time and with the company’s and consumers best interest in mind.

· Field Marketing- Robert Ross /Parker Trent

· Responsible for attending local supply houses and promoting our product with the tools they have been given.

· Advertising and Brand Media- Jambey Smith

· Responsible for Brochure development marketing pieces such as mailers, coupons and Preventive maintenance contracts

· Interactive Marketing- Eric Magana

· Responsible for internet marketing and website development.

Contingency Plan

In the event the above implementation tactics do not work out as planned, the number one marketing strategy will be promoting our product through our preventive maintenance customers. These are customers that we have built rapport with over the years and have been a part of our retention and loyalty program where they receive information about their neighborhoods water supply, changes in code enforcement by the city as well as promotional discounts and rewards programs. However, in addition EHS will also be piggy backing off of our strategic partnership Environmental Water Systems (manufacturer) and will utilize the trade shows they take part in and will be represented with them as the sole distributor of our spectrum central water filtration unit.

References

http://www.bplans.com/water_purification_business_plan/market_analysis_summary_fc.php#ixzz3grDqPQD4