This paper presents a comprehensive marketing plan for a small swimming pool service company based in Charlotte County, Florida. Beginning with a PEST analysis of the political, economic, socio-cultural, and technological environment, the paper proceeds through a SWOT analysis, customer and market analysis, and marketing planning framework covering segmentation, targeting, and positioning. The marketing mix section outlines product, price, place, and promotion strategies, while subsequent sections address budgeting, forecasting, implementation, and control. The plan reflects a company transitioning from basic pool cleaning into remodelling and repair services, supported by a combined financing strategy of internal funds and a bank loan.
The world we live in is constantly changing and forces us to adapt along with it. Society is currently divided on a major concern: the environment. Whereas some advocate for its protection, others indulge in excessive consumerism. The swimming pool industry is shaped by this tension, in the sense that consumers desire ever more swimming pools while environmentalists push to close them down in order to reduce water waste. This dynamic must be kept in mind by anyone who desires to launch a business in the industry. Beyond this, other major issues must also be examined, such as the economic, technological, and political backgrounds, considered against market trends and the personal characteristics of the organization.
The swimming pool industry has been extremely profitable, attracting new entrants each year. However, sustaining a position in the sector has proved far more difficult than initially expected. Customers are discerning and hold high demands and expectations, which can only be met by specialized teams using the latest technologies. Numerous environmental concerns have also emerged, such as the need to preserve water resources through reduced consumption. To best understand the industry in which the swimming pool company will operate, it is useful to begin with a PEST analysis.
The PEST analysis highlights the characteristics of the external environment in which the new company will operate. "A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. However, changes in the external environment also create new opportunities" (Net MBA, 2002–2007).
Political: The United States is currently in a pre-election period, and being that this is an election year, some changes might occur. However, the general political stability is not affected. The environment promotes free competition, and companies must comply with numerous laws regarding best practices and customer and employee rights. Some of these obligations include maintaining clean water free from bacteria and germs that could spread disease, as well as the use of adequate pumps and filters.
Economic: The general economic environment within the United States, and consequently Florida, is currently less stable than in previous years. It has been severely affected by the real estate crisis, record high petroleum prices, and record high federal debt. However, signs of improvement are apparent, materialized in a stable dollar. The gross domestic product is following a continuous upward trend, with an estimated growth of 2.2 percent for 2007. The labor force comprises 153 million individuals, with an unemployment rate of 4.6 percent (Central Intelligence Agency, 2008).
The authorities promote a free market that establishes its characteristics based on supply and demand, with limited or no intervention from the U.S. government. Companies are free to choose the financing methods they deem most appropriate, including bank loans or the issuance of stocks.
Socio-cultural: There are three major characteristics of the social environment that could affect the swimming pool company. The first is an increasing tendency toward luxury and consumerism, which leads individuals to desire personal pools within their homes. The second is an increasing concern for health-related issues, which promotes physical exercise and increases the number of swimmers and the demand for swimming pools in health centers and spas. Finally, the third characteristic is a growing concern over the protection of the natural environment, which manifests in the need to reduce water waste.
Technological: In recent years, technology has become an integral and crucial part of daily life, and the latest advancements support swimming pool companies in conducting their operations effectively. New technologies provide the proper tools to clean and maintain pools, such as filters and pumps, and also offer companies the ability to virtually design or redesign pools according to each client's unique requirements. A notable recent technological development in the area of swimming pools is the cleaning of pools using ozone rather than chlorine (Finney, 2008).
The swimming pool company was founded in Charlotte County, Florida, by two college students who wanted to earn extra money and support their studies by cleaning pools. Over time, their business expanded and they received so many orders that it became impossible to honor them all. They therefore brought in additional help. They now operate with a total of 20 cleaning employees and three administrative staff. Their current strategy is to expand their services from cleaning to also repairing and remodelling swimming pools. This expansion will require additional funds and more specialized employees.
The corporate mission of the company is: To offer customers the best services, uniquely adapted to their particular needs, while at the same time cherishing and valuing the employees.
This mission statement accurately depicts the corporate culture promoted by management, which revolves around complete satisfaction of customer needs and demands, as well as respect and value for employees. All activities undertaken by the organization are conducted with the goal of achieving profitable financial results. The company is not publicly traded, and the two founders hold equal rights and responsibilities.
Alongside the PEST analysis, the SWOT analysis is an important tool in developing a marketing plan. It identifies the internal and external forces that may support or prevent the organization from reaching its goals.
Internal Strengths:
High-quality management and committed personnel; strong financial performance; a large number of satisfied customers and growing demand for the company's services.
Internal Weaknesses:
Lack of previous expertise with remodelling and repairing swimming pools; the new venture would generate additional costs that cannot be entirely covered by the organization's private funds.
External Opportunities:
Increased focus on swimming as part of a healthier lifestyle; growing numbers of wealthy individuals who desire personal pools in their homes; increased demand for public swimming pools within health centers and spas.
External Threats:
Increased environmental concerns over the protection of the natural environment and the reduction of water waste; heightened competition within the industry.
The swimming pool market promotes the concept of a healthy lifestyle through sport. This focus on health has also driven the incorporation of numerous technologies that make swimming safer and more enjoyable. Such measures include improved pool cleaning to reduce bacteria and the risk of contagious diseases, as well as the elimination of chlorine in favor of ozone cleaning technologies. In order to survive in such a demanding sector, the company must be highly adaptable to new customer requirements and must continuously monitor the market to identify competitive strategies and ensure that their services remain competitive.
Another major characteristic of the market is the external environmental trend that directly affects the swimming pool company: the growing concern over water waste. This could result in more swimming pools closing, and the company losing numerous customers. As one industry source noted, "Jobs will be lost and the future of the sector is under threat because of level three water restrictions. Level three restrictions were introduced in mid-December last year, banning customers from filling or topping up new swimming pools without written exemption from water supplier ACTEW. They're going to lose out on a $40 million industry, and they're going to put a hell of a lot of people out of work" (Wiesemes, 2007).
Despite these environmental threats, the pool service industry continues operating in an effort to increase revenues by serving as many customers as possible. The needs of these customers vary considerably depending on customer type: the individual client or the organizational client. The individual represents either a swimmer at a public pool or the owner of a residential pool, while the organizational customer represents the owner and manager of public pools, such as hotels, health centers, or spas.
The needs of individual customers can be summarized as follows: a place to spend hot summer days; a place to exercise in order to maintain or improve health; and, for home pool owners, high-quality services for cleaning, repairing, and redesigning pools to their specific requirements.
The needs of organizational customers include: professional services for cleaning, remodelling, maintaining, and repairing pools; high-quality services using the latest technologies at reasonable prices; and commitment, dedication, and a guarantee of quality work delivered on time.
"Target market selection and service positioning strategy"
"SMART goals and four Ps tactical decisions"
"Financing plan, marketing budget, and profit targets"
"Eight-step execution plan and management controls"
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