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Surfside: Marketing and Hot Tub

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Critical Issues
In order to remain competitive in the market and increase hot tube sales, Surfside Leisurescapes must address the following. Failure to respond to these critical issues will decrease sales and weaken the quality of the employee workforce. * Seasonality – 78% of hot tub sales occur from April 1st to September 30th. In order to remain profitable overall, sales need to increase during the winter months. * Hydrotherapy – A potential value added service to recommend the therapeutic benefits of hot tubs. Surfside will need to penetrate into this market to increase market share. * No marketing plan - Increased competition – 12 new competitors have entered the market; 3 being direct. A lack of promotional strategy and …show more content…

It will also raise the most awareness. Surfside will be able to reach 25,087 homes in and around the area (City-Data, 2006). This will build brand awareness and will help to increase sales in the future. Immediate effects will be an increase in NI of 19,044 and will increase hot tub sales 6.5%.
Option 3: Product mix
Pacific hot tub floor space is restricted to showing only 2 hot tubs (exhibit 9). A strategy for targeting our cost sensitive market would be to entice cost sensitive users with inexpensive models. Eclipse T tubs can be used as a promotion to get customers in the store. With the selling price being only $5,300, this is very competitive to the competition (exhibit 7). Europa LT should also be on the showroom floor because of its past performance (exhibit 3). To mitigate the risk of losing sales of other models, they should still remain available to order and be stocked. These budget hot tubs can introduce new low end buyers into buying a hot tub with the hopes of turning them into loyal customers. Ultimately, this will increase Surfside’s market share and ability to sell higher end, higher margin models to these customers in the future.
Recommendation and Action Plan
Surfside should pay $2,000 to train an employee in hydrotherapy. This option meets decision criteria for increasing sales and NI. These customers are more likely to buy throughout the year which helps decrease seasonality and which will

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