Business Plan for Hot Tub Boats

Business Plan for Hot Tub Boats

Product/Service

Hot tub boats are luxury vessels equipped with baths on the interior to keep passengers warm when sailing on open waters. The inside of the boat may be constructed entirely of fiberglass and heated with a wood-burning stove if desired. The boat takes about two hours to reach a temperature of 100 degrees Fahrenheit, but the outcome is a fantastic temperature. The boat may be heated with firewood. The customers will never have to worry about being burned since the stove is constructed of stainless steel and will never overheat because the sea or lake water will prevent it from overheating and overheating. Other boat tubs have burners that are fueled by diesel, and the temperatures may be adjusted to suit the needs of the client’s preferences. Hot tub boats provide a luxury experience for customers since they allow them to enjoy boat riding even when the weather is also not warm enough because the tub maintains their body temperature.

Hot tub boats are luxury vessels equipped with baths on the interior to keep passengers warm when sailing on open waters. The inside of the boat may be constructed entirely of fiberglass and heated with a wood-burning stove if desired. The boat takes about two hours to reach a temperature of 100 degrees Fahrenheit, but the outcome is a fantastic temperature. The boat may be heated with firewood. The customers will never have to worry about being burned since the stove is constructed of stainless steel and will never overheat because the sea or lake water will prevent it from overheating and overheating. Other boat tubs have burners fueled by diesel, and the temperatures may be adjusted to suit the needs of the client’s preferences. Hot tub boats provide a luxury experience for customers since they allow them to enjoy boat riding even when the weather is also not warm enough because the tub maintains their body temperature.

SWOT analysis of Hot Tub Boats Company located in Seattle

When a company does a SWOT analysis, it evaluates its ability to compete in the marketplace. A vital component of this process is assessing the organization’s internal capabilities that are likely to offer leverage and the external environment that is likely to impact its performance. Swot analysis is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats (SWOT analysis). As a result, while doing a SWOT analysis, it is necessary to assess the company’s internal capacity, taking into consideration the inner strengths that would enhance its ability to compete in the market and contrast them with its shortcomings. The report from the internal assessment will allow the company to prepare for the future so that it can capitalize on its strengths to encourage development while simultaneously shielding itself from its flaws so that rivals do not use them against the company. It is also necessary for the organization to evaluate its external environment. External factors such as the current political climate, economic status of the industry, social environment, and technical circumstances existing in the market are all likely to impact the external environment. When evaluating the external business environment, it is critical to assess the possibilities that exist to help the company develops while also identifying the risks that are likely to impede or prevent its growth and expansion. As a result, the company should seize chances to outperform its rivals while avoiding risks that may lead to their competitors gaining control of the market.

 

The SWOT analysis of the business is as below.

Strengths

·         The organization has elaborate connections with suppliers of construction materials.

·         The promoters of the business have adequate experience in the industry.

·         There is cheap labor that can be obtained in the locality.

Weaknesses

·         The funds at the disposal of the organization are inadequate to meet all its needs.

·         Hot Tub Boats Co. is limited in terms of marketing tools and personnel.

·         The company is new in the market; hence it will take time to build its reputation.

Opportunities

·         There is a vast market for the business.

·         The business is strategically located in areas close to water resources that attract tourists.

·         The company will collaborate with partners in other countries.

Threats

·         High competition in the industry.

·         There is already a monopoly of few companies in the market.

·         The business is only attractive to a particular age group.

 

Explanation of the SWOT analysis

Strengths

As shown in the table above, the Hot Tub boat business evaluated its strengths. The findings were as follows: The company has established relationships with several different suppliers of building supplies. The promoters have a long association with the suppliers, forming a partnership with them even before the business was officially established. Before starting their own company, the founders worked for other companies involved in the same industry. While working for other companies, they found positive working relationships with the suppliers. The providers of the materials are prepared to offer the resources at a wholesale price rather than at the retail price at which other businesses would generally purchase the resources.

The business promoters have been the same firm for almost a decade. As a result, they have a wealth of information and experience in the sector. Because of their abilities, the business will create high-quality goods at a level of competence comparable to that of large corporations.

Many individuals in the surrounding area are out of jobs and eager to work for the company. Some employees have minimal abilities, but the business is actively hiring and educating them to provide them with the necessary skills they need. When hiring experts who are already qualified, it would be less expensive to train new employees since their expectations would be lower.

Weaknesses

Unfortunately, the group does not have enough money to cover all of its expenses. To help it collect money that will allow it to expand faster, the Hot Tub boat business is requesting assistance from partners and well-wishers. On the other hand, it will make use of its existing resources to start small and then expand gradually.

The business has a restricted number of marketing professionals familiar with the latest technologies needed in the industry. Companies will need marketers who will manage their websites and social media accounts, allowing them to promote their goods efficiently via these channels. It is not possible to outperform the competition since the existing workers lack sufficient marketing abilities.

Because the business is young and has not yet established itself in the market, it will need a significant amount of marketing to build its brand. It takes time and effort to develop a good name for one. However, the promoters are sure that their high-quality goods and services will set them apart over time.

Opportunities

The company has a large and expanding market, and the demand for its products and services is increasing every day. Beyond the confines of the local market, other states and countries are quickly catching up with this kind of enterprise. The goods and services will be marketed internationally, thus boosting the market share of Hot Tub Boats in that region.

A lake, close to the company’s location, is a popular destination for tourists, particularly on weekends and holidays. Tourists from all over the nation come to the area to see the water sources that are there. The lake is home to many boat owners, who will serve as the company’s main clients. In addition, the United States contains a large number of lakes with tourist attractions. All of these people will be prospective clients for us.

The business has partners in other nations on the European continent that will require the company’s goods and services. The firm wants to collaborate with them in the future. Branches may be established in the partner nations to increase the company’s sales.

Threats

Existing businesses in the market have already proven themselves. It will be difficult for Hot Tub Boats to get into the market initially, but the industry will ultimately grow over time.

Some large corporations use their economies of scale to acquire low-cost building materials and offer their goods at a low cost. Our business will have to provide certain goods and services at a loss while simultaneously marketing itself until it is in a position that will allow it to compete effectively with the big corporations in the market.

Only young people between the ages of 18 and 35 are interested in starting a Hot Tub Boat company. Children and elderly family members are wary of these types of boats, although most visitors from other states and countries are above the age of 50. A danger to the business will come from companies that offer services tailored to this particular set of customers.

Target Market

Personas 1:

  • Personal information: age, geographic location and Name,
  • Content preferences: Favorite channels, tone and style, content formats
  • Business background information: level of influence in decision making processes, Job title
  • Objectives: Measurable objectives linked to the persona’s work.
  • Challenges: pain points standing in the way of the persona’s goals and Frustrations

Persona 2:

  • Personal information: Geographic location, Name and age.
  • Content preferences: Content formats, Favorite channels tone and style.
  • Business background information: Job title, level of influence in decision making processes.
  • Objectives: Measurable objectives linked to the persona’s work.
  • Challenges: Frustrations and pain points standing in the way of the persona’s goals

Gentlemen and ladies between the ages of 18 and 35 are the ideal customers for the Hot Tub Boats Company, with a preference for couples and groups of friends. As a way of taking care of their mental health, people within the age gap may also choose to sail alone to relax and remove themselves from life’s problems. Newlyweds who tie the knot during the winter months may also choose to participate in the service to commemorate their union and spend quality time together while reveling in a fascinating and warm atmosphere. A wealthy class of individuals who can afford to pay a reasonable amount of money for pleasant experiences is also attracted to the business by its very nature (Camilleri, 2017). Children and elderly adults, in particular, may find the designs frightening and hazardous, and they may be exposed to potentially dangerous situations. Businesses may integrate deliberate marketing tactics into their operations when they understand their target audience.

Competitive Analysis

One may be thinking that the De Antonio D50 Open is just another T-top sports cruiser to offer up some competition to the Hot Tub Boats Company of this world, but you would be wrong. Yes, like these rivals, it has walk-around decks and a cockpit that carefully balances sunbathing space, a dining area, and cooking facilities with some shelter provided by a T-top. Still, the De Antonio D50 Open has a few tricks tucked away up its sleeve. Firstly, though it may look like it from the renders, it doesn’t run on sterndrives but outboards that are cleverly concealed beneath the aft sun pad. This is smart because it offers the performance and easy maintenance of outboards and the look of an inboard boat with the aft sun pad and full-width bathing platform.

Pricing Strategy

The premium pricing approach is the one that is used in the price of hot tub boats. The premium pricing approach entails establishing prices that are higher than those of rivals. This approach is suitable when the company provides a high-end or one-of-a-kind product or service (Dunsby, 2021). Hot tub boats are high-end luxury vessels that are very costly to construct but offer a pleasant experience to their passengers and crew members. As a result, the premium pricing approach is the most appropriate pricing technique in this situation. However, for this price approach to be practical, customers must consider the hot tub boats to be a luxury experience that they will not get anywhere else. It is only through effective marketing and product promotion that this perception may be established. How the hot tub boats are packed will also contribute to the perception of the goods as luxury. Hot tub boats are designed to be luxurious, making premium pricing the most efficient price approach for these vessels.

Pricing Rationale

The reason for charging a premium is that the company needed to earn money from the sale and rental of hot tub boats. Premium pricing will also aid the company in gaining a more significant part of the market for luxury boats soon. Additionally, the premium price will persuade buyers of excellent products of the superior quality of the product, thus establishing the impression that luxury is costly. Because the cost of manufacturing the boats is similarly expensive, premium pricing will enable the company to recoup its production expenses while also earning profits that can be utilized to fund maintenance expenditures. Premium pricing will also help establish the company’s reputation as a provider of high-end products, resulting in increased sales of the product. Premium price attracts a particular market for the boats, and if adequately coupled with marketing, the product may produce a large number of sales.

Comparison Pricing

While our company has chosen to charge a higher price for its products, other businesses have chosen to adopt other pricing methods. One specific rival decided to utilize penetrative pricing to gain market share and increase its market share. The disadvantage of penetrative pricing is that the company may not generate enough money to collect enough cash to pay manufacturing expenses and maintain the boats’ infrastructure. Another drawback of penetrative pricing is that buyers of luxury items associate luxurious goods with higher costs. As a result, they may doubt the quality of the things they purchase. As a result, premium pricing is the most excellent choice in this situation.

Channels of Distribution

Hot Tub Boats Company will be publishing material daily across its three primary social media platforms. Hot Tub Boats Company would often post material thrice a day across all of its social media channels. Unfortunately, they copy and paste every single one of their postings across all three social media sites. Because of Twitter’s 280-character restriction, it seems that the captions for their postings on Instagram and Facebook are limited in length.

The existing social media channels should be maintained. Still, Hot Tub Boats Company will need to optimize and diversify content across each channel to improve interaction to educate, provide information, and engage in discussion with the community. If Hot Tub Boats Company continues to recycle its material, its viewers will no longer need to interact with all three channels if all of the content is similar. Hot Tub Boats Company will establish trust with their followers and seem more approachable if they create objectives to use each social media platform they use carefully.

Twitter

Hot Tub Boats Company would utilize Twitter mainly for news, urgent updates, and interaction with their audience, rather than for promotional purposes. The fact that Hot Tub Boats Company social media contact is mostly one-sided means that their user engagement on Twitter would skyrocket if they took the time to participate in meaningful conversations with their followers. Hot Tub Boats Company may even urge their visitors to interact with the community via their accounts to assist with any questions that may arise in the future.

Twitter would also be a valuable tool for informing Hot Tub Boats Company Members of important information in an emergency. When a holiday occurs, for example, Hot Tub Boats Company may instantly notify its members of facility closures in a timely way, saving time and money.

Instagram

Because of Instagram’s strong emphasis on picture and video sharing, Hot Tub Boats Company should mainly use the platform to create the organization’s overall brand and look. For example, articles and postings regarding community activities and participation and possibly user-generated material that may be shared may fall under this category. It is possible to have a good impact on the public image of Hot Tub Boats Company by posting about a community event.

Facebook

Because of the variety of material accessible and many followers on Facebook, Hot Tub Boats Company should use the social media platform as their main route of social media communication. Hot Tub Boats Company may utilize the platform to publish lengthier films, blog entries and offer helpful information to his audience. In the case of Coronavirus, a post may contain testimonies from members about their life or resources that they have discovered. Moreover, Hot Tub Boats Company may quickly increase user engagement by simply responding to questions and concerns raised by Facebook users in the comments section of their posts. This would promote a “two-way” conversation, rather than Hot Tub Boats Company just publishing material and neglecting to engage with their audience due to their actions.

Marketing Objectives- Hot Tub Boats

            The establishment of marketing goals will help the organization develop a clear image of what it hopes to achieve from marketing activities. First and foremost, the business will hire two social media managers who will interact with consumers and prospective customers on Instagram, the company’s website, and other social media platforms. The business expects to acquire 1000 new followers in one month due to its continuous interaction with prospective consumers on social media. As an added measure, Hot Tub Boats intends to raise awareness by establishing accounts on Facebook and TikTok and obtaining at least 1000 followers on each platform for the current month. Consumers between the ages of 18 and 35 are restricted by the location of the company and the nature of the business. The company’s limited clientele may prevent it from reaching its full potential. Every two boats will be protected by a certified lifesaving guard, allowing the business to expand its clientele base. Every time a client boarded the boat, the guards would be on the watch for them. In addition, the firm will install specific racking systems in each boat to enable the lifeguards to monitor the boats’ movements and conditions readily. In addition, the firm plans to build children’s playgrounds and swimming pools with personalized hot tub boats for its customers. As a result, parents will bring their children to the business during their vacation time.

Because the company is situated in an unusual location, it charges $340 every two-hour block of time. The business hopes to build a client base that does not feel overcharged due to its pricing structure. The company does not want to decrease the hourly cost since it has made plans to hire lifeguards and social media managers, so this is not an option. On the other hand, the business will enlist the help of its marketing staff to do physical advertising in high-end estates in New York and the suburbs of Seattle. Additionally, establishing a presence on social media platforms such as Facebook and TikTok can assist the business in attracting a diverse variety of customers who can afford the services.

The company’s primary goal is to entice nations with no significant water bodies to experience the tranquillity offered by Hot Tub Boats Company, which is a difficult task given the number of states with access to water bodies. As part of its expansion into landlocked locations such as Arizona, Arkansas, and Kentucky, the business will collaborate with travel agency companies in those states during the first quarter of 2018. Many individuals who consider vacations to be time-consuming might benefit from the ease of purchasing a trip package that includes flights, hot water boats, accommodations, and meal arrangements, among other things.

Compared to marketing in towns with access to beaches, marketing in landlocked cities via a travel agency will have a more significant effect on the overall impact of marketing. Hot tub boats are a competitive advantage for the business, particularly in the winter months. The company’s marketing strategy is to persuade prospective customers that going on vacation may be more comfortable than remaining at home. Given that most prospective consumers are unable to take time off during the week, the business will provide discounted prices for people on weekends (Cardoso et al., 2019). Concerning spending $350 per two hours, people enjoying holidays on weekends will get a bonus of 30 minutes to enjoy sailing in the hot tub in addition to their regular fee.

Furthermore, the business aspires to establish strong client relationships, which will aid in marketing efficiency. Customers will be asked to write evaluations on the company’s social media sites as soon as possible after the holiday. Moreover, the social media management team will interact with consumers to learn about what they want to see changed and what they are looking forward to the most throughout the Christmas season. Furthermore, the team will notify clients who have already visited about new deals and special packages monthly. Maintaining customer connections will assist the business in developing a network of customers, resulting in additional prospective customers for the company.

Promotion

Promotion relates to how our salespeople will mix various marketing communication techniques to carry out their promotional operations. On the other hand, various marketing communication techniques have unique benefits and difficulties, and it takes talent and expertise to use them successfully in diverse situations. A few of the marketing strategies that Hot Tub Boats Company will use are as follows:

Figure 1: Methods of Marketing Communication

Guerrilla Marketing:

Innovative and generally low-cost promotional techniques will be used by the Hot Tub Boats Company to engage customers in the marketing campaign, gain maximum visibility, and increase awareness of the company’s goods and services. Guerrilla advertising is often experiential: it will produce a unique scenario or memorable encounter that customers will associate with the Hot Tub Boats Company.

Advertising:

Hot Tub Boats Company’s policy is to accept any payment in exchange for offering ideas, products, or services. The use of mass media, including television, radio, magazines, and newspapers, has traditionally allowed advertisers to target their messages to specific audiences. Individuals may also be targeted through advertising premised on their profile characteristics or behavior; for example, Hot Tub Boats Company may mail each week advertisements to nearby people. Also, online banner advertisements may be targeted to people based on the websites they access or the keywords they insert on the online platform.

Personal Selling:

Hot Tub Boats Company will use human resources to build connections with targeted customers to sell goods and services. A focus on face-to-face contact, knowing the client’s requirements and showing how Hot Tub Boats Company’s product or service adds value will be emphasized in personalized selling.

Public Relations (PR):

In the case of Hot Tub Boats Firm, the goal of public relations will be to generate a positive among the firm and the “public” or target groups that the company is attempting to reach. Unpaid or earned promotional opportunities will be used, including but not limited to media coverage, press, articles, and winning awards, making speeches at events and conferences, and otherwise garnering positive publicity via vehicles that are not paid for by Hot Tub Boats Company. Whereas the Hot Tub Boats Company may benefit from paying for the public relations attention they get, they may spend a considerable amount of money on the activities, events, and individuals that create this publicity.

Direct Marketing:

Hot Tub Boats Company will use this technique to offer goods or services directly to customers, rather than via a store, rather than through a middleman. Catalogs, telemarketers, postal brochures or advertisements, and television home shopping channels are examples of conventional direct marketing techniques that Hot Tub Boats Company might use to promote its products and services. Email marketing and mobile marketing, on the other hand, are two direct marketing methods that Hot Tub Boats Company will use in the future.

Sales Promotion:

Sales promotions are a type of marketing activities that aim to temporarily increase the market share of the company or service whilst also adding to the essential resources provided, such as “book one boat get one free” offers to consumers or “book three boats and get a 10% discount” offers to visitors at the Hot Tub Boats Business.

Metrics

Regarding Hot Tub Boats Company, to be successful, it must be closely monitored and maintained regularly. To guarantee that relevant data is observed, we have established essential metrics in a business plan. These measures will enable the firm to detect possible problems and create effective solutions. Listed below are a few of the crucial metrics that Hot Tub Boats Company might employ to monitor the company’s development:

Sales Revenue

The revenue generated by Hot Tub Boats Company is one of the most informative indicators. Hot Tub Boats Company would determine how well its goods or services are doing in the marketplace and whether or not its marketing efforts are practical if it evaluates its sales. Hot Tub Boats Limited will calculate its sales revenue by adding up all of the proceeds from sales and deducting any expenses connected with undeliverable or returned goods from the total amount.

Net Profit Margin

It will be necessary to calculate the net profit margin to assess the capacity of Hot Tub Boats Company to produce a profit in comparison to its total sales. To calculate the amount of profit made by Hot Tub Boats Company, they deduct all of its sales costs from the monthly revenue to estimate how much profit was made. Put another way, and the net profit margin would enable Hot Tub Boats Company to compare the company’s income with the expenses involved with operating the firm to more accurately forecast long-term growth. By growing revenue or decreasing the costs of manufacturing or sales, Hot Tub Boats Company would increase the organization’s net profit margin.

Gross Margin

The gross margin of Hot Tub Boats Company would be defined as the percentage of each sales dollar that goes toward profit and other expenses. As a percentage, this figure will be determined by deducting the cost of products sold from the entire sales revenue and then dividing the result by the total sales revenue in the first place. When the Hot Tub Boats Company has a high gross margin, the bulk of each sales dollar is kept by the company and not by the customer.

Lead Conversion Rates

This statistic would assist Hot Tub Boats Company in determining how many leads, or prospective consumers, ultimately decided to buy the company’s product or service. Leads may be transformed by a combination of various factors, such as the number of leads received:

  • An outstanding sales team
  • High-quality goods
  • A visually attractive social media presence
  • A website that is well-designed
  • Excellent feedback from customers

Hot Tub Boats Company will determine which factors are stopping leads from becoming customers based on the information provided.

Website Traffic

Calculating the number of monthly visits to a business’s website is an excellent method to evaluate the effectiveness of marketing activities and assess the organization’s overall reputation. It is possible to use several marketing tools to monitor the amount of monthly traffic that comes to the Hot Tub Boats Company website and the sources of those visits (Das, 2020). Hot Tub Boats Firm may use this information to better understand how people discover their company and website. The Hot Tub Boats Company would increase the amount of visitors to their website by:

  • Obtaining favorable news attention.
  • Improving the search engine optimization of the site.
  • Increasing the branding and marketing budget
  • Increasing the company’s online presence on social media platforms..

Retention Rate

In every business, cultivating brand loyalty is critical to success. Aside from resulting in repeat purchases, excellent customer retention often leads to consumers telling others about the business’s services or goods, resulting in even more sales for the company overall. To build brand loyalty, Hot Tub Boats Company must first provide excellent services or goods, but offering outstanding customer service is also a critical component of the equation.

Customer Acquisition Cost

Businesses often acquire new consumers via expensive marketing efforts. This is referred to as the cost of client acquisition or the cost of customer acquisition. When a company’s marketing expenditures for a particular period are divided by the number of customers gained during that time, the company’s customer acquisition costs may be calculated.

Customer lifetime value

Discovering out the customer acquisition costs for Hot Tub Boats Company may be useful in and of itself. Still, it becomes much more useful when compared to the return on investment, also called CLV, customer lifetime revenue, or CLR, which is a more comprehensive measure. This statistic shows that the Hot Tub Boats Company can anticipate generating in revenue from a typical client.

The client lifetime value is very important since it would enable Hot Tub Boats Company to increase its revenue:

  • Learn how much the business can spend on customer acquisition and how much it can afford to spend.
  • Determine if any problems are affecting client retention.
  • Customers segments that provide a greater profit or are tough to convert should be identified and targeted for further development.

Employee satisfaction

Employees are a company’s most important asset since they are the ones that decide the overall success of the business. This is because when workers are satisfied with their jobs; they are more productive, which ultimately increases the company’s profitability. According to the company, the Hot Tub Boats Business can guarantee that team members are happy with the company and their roles by routinely evaluating employee satisfaction via feedback and surveys.

Progress toward Goals and Deadlines

The Hot Tub Boats Company has objectives and deadlines, which may then be split into milestones, regardless of their sector. It is possible to monitor the number of milestones reached and those that have been missed to get a better knowledge of the company’s capacity for manufacturing. This information may provide Hot Tub Boats Company with insight into future problems, such as:

  • Low productivity
  • A scarcity of resources
  • unrealistic expectations
  • an insufficient number of employees

By identifying the issue, Hot Tub Boats Business can then create effective solutions that will enhance the overall efficiency and profitability of the company in the long run.

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