due sundayn

Antone Menzsa

Rasmussen

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.