1|Seaside Filtering System
Seaside Filtering System
Preserving the Oceans. One Ship at a Time.
Team Two
Kira Higgins
Paul Lara
Jackie Reyes
Roberto Ornelas
Business Marketing
Bus 306-82, Fall 2014
Professor Davis
2|Seaside Filtering System
Table of Contents
List of Tables and Figures…………………………………………………………………………4
Executive Summary……………………………………………………………………………….5
Market Analysis
Situation Analysis…………………………………………………………………………7
Market Summary…………………………………………………………………………..7
Geographics……………………………………………………………………………….8
Demographics……………………………………………………………………………..9
Psychographics…………………………………………………………………………..10
Market Needs…………………………………………………………………………….11
Market Trends……………………………………………………………………………11
Market Growth…………………………………………………………………………...13
SWOT Analysis………………………………………………………………………..14
Competition………………………………………………………………………………15
Product Offering……………………………………………………………………… . .15
Keys to Success…………………………………………………………………………..16
Critical Issues…………………………………………………………………………….17
Marketing Strategy
Marketing Strategy……………………………………………………………………….17
Mission…………………………………………………………………………………...18
Marketing Objectives…………………………………………………………………….18
Financial Objectives……………………………………………………………………..19
Target Markets…………………………………………………………………………...19
3|Seaside Filtering System
Positioning………………………………………………………………………………19
Strategies………………………………………………………………………………...21
Marketing Mix…………………………………………………………………………...22
Marketing Research……………………………………………………………………...23
Financials………………………………………………………………………………..24
Break-even Analysis……………………………………………………………………..24
Sales Forecast…………………………………………………………………………….25
Expense Forecast…………………………………………………………………………26
Controls…………………………………………………………………………………..26
Implementation…………………………………………………………………………..27
Marketing Organization………………………………………………………………….27
Contingency Planning……………………………………………………………………28
References………………………………………………………………………………………..29
Appendix A………………………………………………………………………………………31
Appendix B………………………………………………………………………………………33
4|Seaside Filtering System
List of Tables and Figures
Figure 1: Survey Question #10……………………………………………………………………9
Figure 2: Cruise Ship Passengers by Year……………………………………………………….12
Figure 3: Seaside Filtering System Process………………………………………………….......16
Figure 4: Oceana Certified Label………………………………………………………………...22
Figure 5: Production Costs Breakdown………………………………………………………….24
Figure 6: Marketing Costs Breakdown…………………………………………………………..24
Figure 7: Break-Even Analysis…………………………………………………………………..25
Figure 8: Sales Forecast………………………………………………………………………….25
Figure 9: Expense Forecast………………………………………………………………………26
Figure 10: Marketing Department Breakdown………………………………………………….28
5|Seaside Filtering System
Executive Summary
The purpose of this report is to explain the marketing plan for the Seaside Filtering
System. Cruise ships are currently dumping grey water into the ocean negatively impacting the
environment. Seaside Filtering System is a grey-water filter system for cruise ships that will
allow cruise ships to refrain from dumping grey water into the ocean.
The system will enter into the market through Culligan International Company. Culligan
is known for water filters that are designed for home, business, and commercial use. Seaside
Filtering System will be a combination of Culligan products that are reinvented and redesigned
to meet the needs of cruise ships that are already making efforts to achieve sustainability. Having
said that, the Seaside Filtering System’s target clientele consists of companies within the cruise
industry.
Cruise ships are the targeted clientele so, the Seaside Filtering System will be marketed to
businesses rather than to consumers for the purchase of the system. The geographics of the
targeted clientele were selected based on Culligan’s division in Salinas, CA. The Seaside
Filtering System will first be marketed to cruise lines on the west coast. Now, even though
consumers are not the targeted market for the Seaside Filtering System, the marketers do plan on
influencing consumer opinion in order to convince cruise lines on the system.
Both businesses and consumers are currently making efforts to improve the
environmental footprint of human beings on the Earth. The marketers will strive to first, inform
the public on grey water dumping by cruise lines and then, earn their support to end grey water
dumping. Partnering with Oceana, a non-profit organization striving for ocean preservation, will
permit the promotion of the Seaside Filtering System as the best option for grey-water filtering.
The cruise industry and the number of environmentally conscious consumers are
expected to rise. So, the time is right for the Seaside Filtering System to enter the market. The
Seaside Filtering System preserves the ocean through one of its competitive advantages, which is
its ability to reuse and repurpose grey water, resulting in virtually no water being dumped into
the ocean. Price adjustments and certification for being an environmentally friendly product will
be utilized to convince cruise lines to purchase the system.
Seaside Filtering System will be priced at $2,000,000, which is less than the price for its
closest competing system named Zenon. It will be marketed using a direct market channel and
6|Seaside Filtering System
communicated through personal selling, public relations, and direct marketing. With a sales goal
of two systems a year, the Seaside Filtering System will be a profitable system for Culligan.
The Marketing department will consist of a North and South Sales team. The North Sales
team will have one technician and one representative, while the South Sales team will have three
technicians and two representatives. Consistent, transparent, and secure communication with
cruise lines will allow the marketing department to learn about new trends, opinions, and needs
of both the cruise industry and of the public. This new information will be necessary for the
marketers of the Seaside Filtering System to reposition the system within the market or adjust the
market plan if any issues emerge. The Seaside Filtering System will be marketed to deliver
superior customer value and to manage customer relationships because it is the best way to
achieve ocean preservation.
7|Seaside Filtering System
Marketing Analysis
Situation Analysis
Taking a vacation on a cruise ship has never been easier or more entertaining. These
vessels are traveling cities with the same kind of waste that comes from being on land. The
increase in the number and size of cruise ships is causing the pollution to worsen. To put it into
perspective, the first cruise ship in the 1900s had only 120 passenger rooms, whereas, the
modern cruise ships have thousands of rooms, over a dozen restaurants, multiple pools, water
slides, and zip lines (Delp, p.1).
The protection of our environment is becoming an increasing concern for consumers and
it could begin to affect the willingness of consumers to take a cruise with many of the companies
like Coast Cruises and Carnival Cruises. The largest concern for pollution is the dumping of grey
water into the oceans while at sea. Grey water is wash water “from your bathroom sinks,
showers, tubs, and washing machines,” (About Greywater Reuse, p.1). With all concerns for the
environment and the company’s profits in mind, a reliable solution is filtering and reusing the
grey water aboard.
The Seaside Filtering System is designed to require little space on the cruise ships that
filters the grey water being used into a containment tank that can be treated and reused for wash
water instead of being dumped into the oceans. In affiliation with Culligan International
Company, an industry leader in water filtration for homes, business, and commercial use, the
Seaside Filtering System will bring a new level of efficiency to cruise ships that is lacking in
other models like it on the market. This system is a great solution for both cruise ships and
consumer concerns.
Market Summary
The grey water dumping by cruise ships at sea is damaging marine life and indirectly
harming humans. The damages to the natural environment are becoming more and more
noticeable such as the Pacific Garbage Patch which “is a collection of marine debris in the North
Pacific Ocean,” (National Geographic, n.d.). The actual dumping of grey water is less noticeable
but if it continues, then the wonderful oceans people travel to visit won’t be worth the trip.
Creating filtering and treatment systems to reduce and even eliminate the dumping of grey water
is a solution. Other additional benefits includes saving water, protecting marine life, and food
supply. There is a need for Seaside Filtering Systems because the problem is not something that
8|Seaside Filtering System
can be undone easily. Cruise ships need to make efforts to prevent more damages.
Culligan International Company has been creating filters for home, business, and
commercial use for years and has many national accounts. “Culligan conditioning and soft water
solutions include water softeners, water filtration systems, reverse osmosis water filters, and
drinking water filters” (Culligan, p.1). Based on the company's experience, the marketers will
use Culligan’s established filtering products to create an effective five step filtering system as a
single product to offer. Along with Culligan’s development of the product, the Seaside Filtering
System will be represented as an Oceana approved-environmentally-safe and pollution-reducingproduct. Just as an organic product is certified by a separate company, Oceana will be an outside
certifier of the product to create greater value for cruise lines.
Waste water filtering systems are new to the market yet expensive for operation on all
cruise ships today. For example, Zenon is a filtering system on Holland-America cruise ships that
treats sewage and processes grey water by pumping it “into a tank and then filtered through a
bioreactor, in which bacteria reduce harmful toxins like chlorine, fecal matter and ammonia. By
the end of the process, Parks said, the water quality is close to that of drinking water,”
(Investigate West, para.8). This product can be found on many Holland American cruise liners
but are not being installed on any other company’s cruise ships probably do to the extremely high
contract prices.
The target market for the Seaside Filtering Systems includes the larger cruise line
companies such as Disney, Princess, Royal Caribbean Cruises, and others, that have the highest
number of vessels and the largest operations. The goal is to focus the market segment on the
companies, who have begun to feel the environmental concerns and have already taking steps to
prevent wastes ending up in the waterways. Eventually the goal would be to reach government
Navy vessels and small transport ships that currently dump grey water. The reason for choosing
to market to the larger ships first is to make a bigger difference now. These filtering systems will
make a difference across the board for the environment and all that live in it.
Geographics
The Seaside Filtering System is designed for the business-to-business market focusing on
large cruise line companies whose ports are located around the globe. Culligan's main offices are
in Rosemont, IL with a division in Salinas, CA. In the U.S., the marketers will introduce the
system on the West coast because it is closer to operations and will minimize costs while first
9|Seaside Filtering System
launching the product. The first target will be companies that stay at ports in Seattle, WA,
Astoria, OR, San Francisco, CA, and Los Angeles, CA. These companies include Disney Cruise
Lines, Princess Cruises, and Carnival Cruise Lines because they have already begun to make
some environmental friendly changes. Using the West coast as a beginning tester market,
marketers hope it will expand to the East coast of the U.S. and then global ports.
Demographics
The demographics are focused more toward consumers to use their reactions as an
influence for companies to implement the Seaside Filtering System. In a recent survey taken
online through web media, marketers have concluded that consumers would choose companies
implementing environmental friendly practices over companies that had none (refer to Figure 1).
It is important to recognize consumer buying power because, according to Cruise Market Watch
(n.d.), about 20% in all cruise ship customers are from 30 to 60 years old and 39% of passengers
have an income of $100,000-200,000 a year. These affluent passengers account for a large
percentage of the consumer market and can motivate cruise liners to implement environmentally
safer products to prevent pollution.
Figure 1: Survey Question #10
10 | S e a s i d e F i l t e r i n g S y s t e m
Psychographics
The marketers of the Seaside Filtering System have considered the lifestyles of both the
consumers and businesses, in order to strategize the filtering system’s entrance into the market.
Consumer value is important in the marketing of the filtering system because the marketers wish
to motivate the purchasing behavior of consumers towards cruise ships that possess the filtering
system and away from competitors that do not. Business lifestyles are important in the marketing
of the filtering system because it’s the cruise companies that are being targeted by the marketers
of the Seaside Filtering System. First, the consumer lifestyle variable for the marketing strategy
will be presented, then the business lifestyle variable.
Consumers are an important element in the marketing strategy of the Seaside Filtering
System. Danielle Fugere of Bluewater Network—a San Francisco division of the international
environmental group Friends of the Earth—was reported to have said on Hilton’s article for the
SFGate (2007) that cruise lines are mainly taking steps towards reducing their environnemental
footprint because people do not want to support cruise ships that are polluting the environment.
A large portion of Americans care for the preservation of oceans and if, not solely of the ocean
then, of the whole environment. Businesses would be wise to satisfy the expectations of these
consumers in order to strengthen their customer relationship and expand their customer value.
The filtering system is the best solution to the pollution. Cruise companies can lose customers if
they neglect consumer concerns.
Since cruise companies are the target group for the marketing of the Seaside Filtering
System, the lifestyles of the companies are of great importance. As mentioned in the market
summary section, there are cruise companies that now believe in the protection of the
environment and have taken measures to reduce their environmental footprint. This new lifestyle
of certain cruise companies to reduce their own environmental impact is the variable that the
marketers of the filtering system took into account when deciding on which segment of the
business market to target. However, the efficiency of the filtering system is a feature that may
intrigue other cruise ships, who are not necessarily looking to preserve the oceans but reduce
costs and perhaps preserve the environment in doing so. According to Brave New Leaf (2008),
“Fearmongering Eco-preneurs” exist and they are business owners who are mainly driven by
company profits when taking action to reduce his/her company’s environmental footprint.
11 | S e a s i d e F i l t e r i n g S y s t e m
Market Needs
Currently, there is a market need for a better grey-water treatment system than those
available today (Hilton, 2007). According to Oceana (2012), existing treatment systems are
inadequate and the dumping of untreated grey water from sinks and showers is allowable by
relaxed state and federal laws. These matters if prolonged can cause bacteria and pathogens to
endanger the coastal environment and marine life (Oceana, 2012). To put it into perspective, the
Department of Transportation was reported on the 2007 SFGate article by Hilton to have said,
“A cruise ship on a weeklong voyage with 3,000 passengers and workers generates, on average,
1 million gallons of grey water (water from sinks, showers, galleys, laundry and
cleaning activities).” But if the damages to marine life are not enough to intensify the demand for
a better treatment system, certain events have occurred that might force cruise companies to
supply their ships with the adequate equipment.
In 2004, former California governor, Arnold Schwarzenegger, signed into law two ocean
protection bills that now prohibit the cruise industry from dumping dirty water produced in sinks,
showers, and toilets into state waters (Oceana, 2012). So, the need for an improved method of
treating grey water is encouraged by the risk of receiving a fine if a company allows one of its
ships to violate an ocean protection law. Moreover, the cruise industry’s second largest company,
Royal Caribbean Cruise Lines, has been convinced by Oceana to improve its own practices for
treating dirty water. Royal Caribbean Cruise lines has set an ethical example for other cruise
companies to follow and encouraging the need for an improved treatment system. Additionally,
each cruise line is given a “Cruise Report Card” based on its environmental footprint by Friends
of the Earth (2013). The letter grade is posted on the organization’s website for the purpose of
informing the public of each cruise company’s unique environmental footprint. A bad letter
grade may cause a company to lose potential customers, encouraging a need for an improved
treatment system, so it can receive a better grade and regain its market share. In all, the potential
negative reactions from the public due to pollution encourage the need for a better treatment
system because of the possibility of losing market share.
Market Trends
The cruise industry has seen an increasing trend in the demand for cruises and in the
investment towards more cruise ships by cruise companies. According to Wind Rose Network
(2014), there has been an increase of 90 million passengers since 1980. In the years 2008 and
12 | S e a s i d e F i l t e r i n g S y s t e m
2009, there was a record of 13 million passengers and 13.5 million, respectively. The rise in the
number of passengers is not expected to stop and will go through the 21st century. The Figure 2,
found on Venipedia (n.d.), illustrates the increase in the number of passengers for the entire
cruise industry from the year 1997 to 2010. In the marketers’ opinion, the rise in the demand for
cruise services has caused cruise companies to invest in better cruise ships. According to Wind
Rose Network (2014), there is an ongoing multimillion investment by the cruise ship industry
towards vessels that contain state-of-the-art technology and are bigger than any cruise ship ever
known.
Figure 2: Cruise Ship Passengers by Year
Cruise ships are now capable of carrying more than 3,000 passengers, allowing cruise
companies to charge lower fares and provide shorter cruises. The ongoing improvements to
cruise ships are positioning the cruise lines to achieve low average costs of production. But in
order to achieve economies of scale, cruise companies must fill in those passenger spaces with
new customers and/or prior customers. Currently, there is an upward trend of customers
demanding sustainable company practices, as stated by Sustainability Front (2012). Cruise
companies are most likely aiming to fill in spaces on the ship with those customers demanding
sustainable practices by joining the “green cruising” trend.
“Green cruising,” a concept that, according to Paloti (2014), refers to the increasing trend
of more cruise companies making important improvements on its own environmental policies
and practices. For example, Carnival and Crystal Cruises have an onboard policy which states
that solid waste will either be incinerated onboard or disposed of on land. Furthermore, cruise
lines are educating its employees on important environmental issues and practices pertaining to
13 | S e a s i d e F i l t e r i n g S y s t e m
the cruise industry through training courses. Passengers are also welcomed to participate in the
movement by the cruise ships. They are informed of the disposal and recycling procedures of the
particular ship, and equipment is marked with the appropriate instructions. In all, almost every
cruise line has made some sort of change to its operations to eventually become a sustainable
cruise line (Paloti, 2014).
Market Growth
The Seaside Filtering System focuses on providing a cheaper approach to save and
repurpose grey water in Cruise Lines. Cruise ships expose the ocean to grey water, which in turn
harms ocean life. One option cruise liners want to consider is to put in an extra tank, but it
reduces space for guest cabins. “Ship designers had estimated that it would decrease passenger
by 15 percent to 20 percent to add the much larger tanks needed to store the grey water wastes.”
(Ethics of Management, p. 22). In addition, installing a new tank will be expensive.
The marketers have provided a new idea which is to install filters. With filtering the grey
water, ocean life will not be harmed, the water will be repurposed, and the cruise liners will not
pay an enormous amount for filters. Now, people who are concerned about the ocean life can
have a fabulous, environmental-friendly vacation in a cruise ship. Family vacations and ecotourism will increase in the market.
Currently, there are approximately 85 cruise ships that are based in Miami, Florida. They
offer three-, five-, or seven-day trips to Bermuda, Bahamas, Mexico, and other beautiful places.
These cruise ships will carry 2,000 to 3,000 passengers creating a lot of grey water which must
be disposed of (Ethics of Management, Pg. 21). According to Wind Rose Network (2007), cruise
liners have had an average 8.5% annual growth in the last 20 years and nearly 90 million
passengers since 1980; therefore cruise line business will grow for the upcoming years. “This
dynamic sector shows no sign of slowing down, with 13 and 13.5 million passengers in 2008 and
2009, compared with the 12.6 million in 2007” (Wind Rose Network, 2007). The market proves
to be healthy, but with our new product it will help gain more market share in this growing
industry.
According to LaRue Tone Hosmer, “Royal Caribbean Cruises say that they cannot afford
to carry tanks large enough to store all of the nonhuman wastes until they report to their home
port” (Ethics of Management, p. 22). When ships need to replenish their water supply for utility
purposes, they need to stop at near ports, in route to the final destination. With these frequent
14 | S e a s i d e F i l t e r i n g S y s t e m
stops, it can create a waste of time and money. If these ships would install the filtering system,
they would not be using as much water for nonhuman wastes. The entire purpose of the filter is
to reuse the grey water for utility purposes so that the cruise ships have enough clean water for
the guests.
SWOT Analysis
Strengths: Putting in an extra tank would increase Cruise Liners’ price because they would have
to eliminate rooms for travelers. A simple filter would not take as much space as a big tank. Also,
the cruise liners would be saving water and reusing it. The Seaside Filtering System, a new, cost
efficient product for cruise ships, would reduce the harm to ocean life. Culligan is a well-known,
international business that has helped many businesses and industries in the United States. The
proper equipment, like machines and filtering parts, are available for production.
Weaknesses: The Seaside Filtering System is still somewhat expensive: $2 million. Also,
Culligan doesn’t have the money to start production for the new filter. Nevertheless, installing
the filtering system in a ship can be time consuming, therefore Cruise ships can lose some
revenue because their ships aren’t up and running. Moreover, the Seaside Filtering System
requires maintenance and Cruise ships must hire an employee in order to focus their time in
keeping maintenance for the filtering system.
Opportunities: An opportunity is that the market doesn’t have something like this new product
therefore we have the advantage to create a new filtering system. Also, Culligan prices the
filtering system lower than other filtering companies. Cruise ships can be environmentally
responsible and preserve the oceans and ocean life. Culligan has the opportunity to grow their
business and serve navy vessels with the new Seaside Filtering System. Finally, a positive
external opportunity is cruise ships dumping grey water because Culligan can introduce the
Seaside Filtering System to Cruise liners.
Threats: The Seaside Filtering System price can increase due to some production changes that
Culligan may have. Also, variation in ship vessels might not be compatible with the system.
Another threat is that Zaandam, a filtering system company, has a similar product like Culligan’s,
therefore they can take away some of Culligan’s customers. Government regulations can affect
the production of the filtering system.
15 | S e a s i d e F i l t e r i n g S y s t e m
Competition
The market of filters and water purifying technologies has only a few stand-out products.
Among these competitors are 3M Purification Inc., Calgon Carbon Corporation, and GE
Infrastructure Water and Process Technologies. Another important direct competitor is Zenon
Environmental Inc., which was acquired by GE Infrastructure Water and Process Technologies in
2006 (Bloomberg, n.d.). Although these companies offer filtration systems that purify water,
none really offer a system similar to that of the Seaside Filtering System.
After visiting the websites of Culligan’s closest competitors, it can be noted that most of
these suppliers market its products either online or directly with distributors. Marketers have
determined this was the case because most of the industrial products offer limited information
about the product and only offer certain specifications. In order to acquire an item or learn more
about it, customers must contact the companies. Prices were usually not available unless it was a
home product and no promotions were available.
According to the 3M Purification Inc. website (n.d.), 3M liquid and air filter products
offer a wide variety of products that provide solutions for residential, industrial and commercial
applications. The Calgon Carbon Corporation offers technology that has the capacity to treat
water into drinking water. This website, however, offers very limited product information and
specifications. It instead focuses on how its systems function. The main competitor for the
Seaside Filtering System is GE Water and Process Technologies and its acquired company,
Zenon Environmental Inc. GE Water and Process Technologies offers systems that treat water
through methods such as reverse osmosis, but offer no products similar to the Seaside Filtering
System. GE’s marketing technique is very similar to that of Calgon Carbon; the website lists the
various technologies and offers information about these processes, but no pricing or promotion.
Product Offering
The product is a system comprised of two containment tanks, two microfiber filtering
containers, pipes, and two filters. The main aspect of this system is the two filters that will distill
the contaminants from the grey water. The first filter will be designed to infiltrate bigger
contaminants such as dirt. The second filter will perform as a barrier for chemicals and bacteria.
This filter will also function as a water purifier. This system is intended to store bacteria and
chemicals in microfiber filtering containers that will hold them until the ship reaches port. At
16 | S e a s i d e F i l t e r i n g S y s t e m
port, the ship will dump the containers together with the rest of the waste. Please refer to figure
#3, to get a better of understanding of this process:
Figure 3: Seaside Filtering System Process
1. Used water (sinks, baths, showers, laundry, and galleys) is transferred to first containment
tank
2. This water is then transferred to first filtering container
3. In the first filtering container, heavy contaminants are removed and kept in container while
water continues to flow to the second container
4. In the second container the water is then filtered once more. This filter is designed to filter
smaller contaminants and treat the water.
5. Water is then transferred to the second containment tank. This water will then be available for
use once again.
After step five, the purified water will make its way back into the ship’s system where
passengers will be able to use this water again to wash their hands, clothes, and take showers.
This system will revolutionize the way cruise ships handle their wastes, ultimately decreasing the
grey water pollution and helping sustain a safer environment.
Keys to Success
The Seaside Filtering system is reliant on being important to consumers and its partnering
businesses. To make this product a success the marketers are collaborating with Oceana, the
largest international ocean conservation and advocacy organization. This partnership will
help gain insight about environmental friendly practices, environmental friendly cruise liners and
other environmental aspects marketers are not currently aware of. This association would also
help improve Culligan’s image and gain recognition among many environmentally friendly
organizations. Another key to success is gaining consumer awareness to drive the environmental
decision of cruise ships. For any business, consumer opinion is an important factor to success,
especially with the growing environmental concerns. With the help of Oceana, the marketers
17 | S e a s i d e F i l t e r i n g S y s t e m
plan to enlighten consumers about environmental issues and influence the consumer opinions
when making choices to take vacations on cruise ships. These factors are not contingent for
success but will support the Seaside Filtering System and advance the growth of the product.
Critical Issues
Along with the factors to success come factors that may lead to failure. The factors that may
lead to success may also be the ones that lead to failure in this market. A possible hindering
factor includes Oceana failing to partner with Culligan and rejecting the product certification
idea.
If marketers fail to make a good impression to Oceana, the opportunity for successfully
marketing the product may drop substantially. No matter the industry, companies are always
trying to minimize costs to maximize profits. Implementing the Seaside Filtering System to the
cruise liners will be a huge investment for many of these companies and if the marketers don’t
have the support needed to force these companies to use our system, then it may fail. Oceana
provides the support needed through the certification of the product.
A second factor that may prevent success going into this market is if Oceana decides to
collaborate with us, but rejects the filtration system. Even if Oceana decides to collaborate and
offer resources that will help get the attention of the cruise liners, the product runs the risk of
failing to impress Oceana with the filtration concept. In order to prevent this from happening, the
Seaside Filtering System must be tested and go through several rigorous troubleshooting tests.
Marketing Strategy
Marketing Strategy
Thousands of people, including fishermen across the world, rely on fish as consumption
or financial purposes. However, due to the dumping of grey water from cruise ships, the ocean
and ocean life have been contaminated by chemicals the grey water contains (Hosmer, L. 2008).
The Seaside Filtering System provides a solution for the problem of grey water, which will
benefit cruise ships and environmentally concerned organizations.
Cruise line companies are striving to become ethically responsible and environmentally
concerned consumers want an effective solution for grey water. The Culligan International
Company offers a cost-efficient product that will allow cruise lines to increase revenue and
relieve them of decreasing passenger capacity. Their cruise ships will be environmental friendly
18 | S e a s i d e F i l t e r i n g S y s t e m
and can welcome environmentally concerned consumers into their ships. Through the Seaside
Filtering System, cruise ships like Carnival Cruise, Princess Cruises, Disney Cruises, and many
more will develop a positive image towards environmentally concerned consumers. Also, the
filtering system will save water by reusing it ultimately preserving the ocean. The Seaside
Filtering System is specifically tailored to the target market mentioned in the following sections:
Demographic, Geographic, and Psychographic. With the Seaside Filtering System, no one will be
harmed.
Mission
Culligan’s mission is, to “Provide our customers the best water treatment products and
services available. We’ve seen nearly every water problem imaginable and have the perfect
solution for your unique water treatment needs” (Culligan, 2014). Through the Seaside Filtering
System, Culligan will astonish the market with a revolutionized new product that will treat
Cruise Ship’s grey water, and preserve the ocean and ocean life.
Marketing Objectives
Culligan’s primary objectives are to increase sales, create product awareness, develop
visual appeal, and preserve the oceans. Having a product that will not decrease passenger
capacity and welcome more environmentally concerned consumers cruise liners sales’ will
increase. Also, Culligan only focuses on home and business filter systems therefore by
manufacturing the Seaside Filtering System, Culligan will expand it’s horizons with cruise lines,
which will create greater revenue for Culligan. By increasing sales, Culligan will be able to
expand their work to other parts of the world and help other homes, businesses, and cruise lines.
Furthermore, before increasing sales for both Cruise lines and Culligan, word-of-mouth
must take action. Marketers must have oral communication with Cruise Liners and ports located
in the West Coast. The word-of-mouth must present the Seaside Filtering System’s capabilities,
purpose, and effectiveness. The Seaside Filtering System is a unique, sustainable, and costefficient system that is designed for ships to decrease the dumping of grey water in the oceans
therefore creating a positive environmental impact. Nonetheless, surveys can also create
awareness of the Seaside Filtering Systems and its abilities.
Moreover, there will be a positive visual appeal towards Culligan and Cruise Lines
through the Seaside Filtering System. As mentioned before, if Culligan takes a different step as a
filtering company and produces the Seaside Filtering System, the marketers and public will see
19 | S e a s i d e F i l t e r i n g S y s t e m
Culligan as a company that doesn’t just focus in one particular thing but a company that is
willing to take a risk and market a product that is out of their boundaries. As for cruise lines,
buying and installing the Seaside Filtering System will lead Cruises to an environmentally
friendly path and therefore attract environmentally concerned consumers. Reducing the dumping
of grey water from Cruise lines will result in a positive visual appeal. Finally, Culligan
International Company along with Oceana wants to preserve the oceans and ocean life.
Financial Objectives
The goal is to begin installing the Seaside Filtering System in cruise ships in January of
2016. The planned forecast is to sell two contracts in the first year and two contracts in the
second. In the third year production will increase to three contracts. The system will be sold on a
contract for $2 million.
Target Markets
The marketers’ target market is cruise Line companies. Culligan plans to market to cruise
line businesses that are looking to make a change in the way their ships impact the environment.
Culligan has a division in Salinas, CA. which can be easily accessed for production and would
make the costs of production much less. The first targets would be cruise ships in the West Coast,
such as Disney Cruise, Carnival Cruise, Celebrity Cruise, and Princess Cruises, which all stay at
near ports like Seattle, WA. Astoria, OR., Los Angeles, CA., and San Francisco, CA. These
cruises have been striving to make some environmental changes. Moreover, Culligan plans to use
the Seaside Filtering Systems in cruise ships in order to respond to environmentally concerned
consumers. Focusing on the survey results, the consumer reactions will be used as an influence
for companies to buy the Seaside Filtering System. Due to the results, it has been concluded that
consumers would choose cruise line companies that are environmentally friendly rather than
companies who are not (refer back to Figure 1). With choosing cruise lines that are
environmentally friendly, companies that are not will lose revenue which is an asset for their
competitors. Therefore, cruise line companies cannot afford to lose revenue or consumers.
Positioning
Seaside Filtering System’s positioning statement will read as follows, “to cruise lines that
are already making efforts towards sustainable cruising, Seaside Filtering System is an
environmentally friendly water-filter system that cuts water costs by reusing and repurposing
gray water after it is filtered.” The marketers of the Seaside Filtering System will work with
20 | S e a s i d e F i l t e r i n g S y s t e m
Oceana to earn the system certification for being an environmentally friendly product. It will
earn certification because the system allows the ships to rarely have to dump grey water into the
ocean. In comparison to Zenon, a filter system available today and most comparable to Seaside
Filtering System, does not give cruise ships the ability to reuse water after it is filtered. Also,
Zenon is a highly expensive filter system. One unit will cost the cruise line $2.5 million (needs
citing). So, even if Seaside Filtering System was sold at the break-even price, it would be
inexpensive compared to Zenon. Seaside Filtering System’s competitive advantages are being
environmentally friendly; helping the ship cut water costs, and being less expensive than other
similar water-filter systems (more-for-less positioning strategy).
Seaside Filtering System’s competitive advantages are important, distinctive, and
superior. Important because Seaside Filtering System puts cruise lines, that purchase the system,
one step higher in becoming sustainable companies. The competitive advantages are distinctive
because Seaside Filtering System is the only water-filter system for cruise ships that allows ships
to reuse and repurpose gray water after it has been filtered. They are superior because it cuts
water costs for cruise ships. Cruise ships could instead carry more water and a cheaper filtering
system as it only filters the water. However, this strategy to only carry and rid of clean water
could result in higher water costs for the ship, potential scrutiny from the public for still dumping
water, and no forward movement towards sustainability because it would still exhaust large
amounts of water. Not only are the competitive advantages important distinctive, and superior
but they are communicable, preemptive, affordable, and profitable.
The Seaside Filtering System’s competitive advantages are also communicable,
preemptive, affordable, and profitable. They are communicable as they are physically noticeable
and will be explicitly stated when the Seaside Filtering System is presented to potential buyers.
Preemptive because competitors will have to find a unique or better way to keep their company
costs down to support a price that can compete with the Seaside Filtering System’s price. The
competitive advantages are more affordable than similar filter systems available for cruise ships
because the Seaside Filtering System is less inexpensive than those other systems.
21 | S e a s i d e F i l t e r i n g S y s t e m
Strategies
The marketers of the Seaside Filtering System will manipulate the marketing mix through
price adjustments. Seaside Filtering System’s price will be lowered for potential clients if the
client agrees to purchase more than three systems under a single contract. Moreover, Culligan’s
partnership with Oceana for the promotion of the Seaside Filtering System will include grants to
cruise lines who agree to surrender their old grey-water filter upon purchasing the Seaside
Filtering System. Both these price adjustments are strategies to increase the number of ships out
at sea that possess a Seaside Filtering System.
Increasing the number of ships that possess a Seaside Filter System allows Culligan to
achieve its marketing objectives. The more cruise ships that have Culligan’s water-filter system
means more revenue for Culligan and stronger preservation of the oceans. Nonetheless, the other
two marketing objectives, creating product awareness and visual appeal, will also be
accomplished through these price adjustments. Product awareness will be created because the
goodwill that Culligan achieves through lower prices and excellent customer-relationship
management allow Culligan to reach customers that are usually on the National Do Not Call
registry or simply unwelcoming of random advertisements. Moreover, the Seaside Filtering
System’s ability to preserve the ocean will create an ocean friendly image for cruise lines and the
more ships that carry the system the better the ocean will be.
An important strategic factor for the Seaside Filtering System is giving cruise ships that
use the product a special certified label. This label would be placed on the cruise line’s website,
cruise ships, advertisements, etc. Creating a label would appeal to consumers, especially those
who are aware of the current environmental issues. The label would have a stamp that states to
be “Oceana certified” with a note stating that the cruise liner supports the project of “non grey
water dumping.” Additionally, the label will contain a small message explaining that, the “cruise
ship operates using special filtration systems certified by Oceana to be environmentally
friendly.” With the creation of this label cruise ships can differentiate its service and appeal to
consumers with an image of an environmental friendly company. The marketers hope that the
association that is developed with Oceana can become an important factor to the success of the
Seaside Filtering System.
22 | S e a s i d e F i l t e r i n g S y s t e m
Figure 4: Oceana Certified Label
Marketing Mix
Price:
Seaside Filtering System will be priced in a contract at $2,000,000. The price for one
Seaside Filtering System was determined by first adding together the estimated costs production
costs of a system and marketing costs of the brand. The base price in dollars is $1,697,758.70.
The dollar amount was then compared against prices for systems that are similar to Seaside
Filtering System and available in the market today to determine the final selling price for a single
unit that allows for profit. By striving towards a goal of two systems a year, Seaside Filtering
System will reach a profit of approximately $455,000 every year. Culligan’s costs for its current
water-filter systems began the price calculation for Seaside Filtering System. This is because
Seaside Filtering System is simply a merged product of particular existing Culligan products that
were reinvent and redesign to fit cruise ship needs.
Distribution:
Seaside Filtering System will be distributed using a direct marketing channel. Culligan
will not be using any intermediaries or third parties for the offering, installing, or distributing of
the Seaside Filtering System. Through its suitable departments Culligan will be engaging in the
information, promotion, contact, matching, negotiation, physical distribution, financing, and risk
taking activities associated with Seaside Filtering System.
In order to purchase a Seaside Filtering System, business-customers will be required to
communicate directly with Culligan. The order for a system may be placed by using Culligan’s
official website or by calling the warehouse in Salinas, CA via telephone. Culligan will transport
the system by company vehicles or train to the cruise ship’s location.
23 | S e a s i d e F i l t e r i n g S y s t e m
The direct marketing channel was chosen because it is time- and cost-efficient for cruise
lines. Direct communication with Culligan allows installation on cruise ships to begin sooner
than if any intermediaries was involved. No intermediaries also means lower market prices
because Culligan will not have to pay commission or other costs related to selling and/or holding
of a Seaside Filter System to intermediaries.
Marketing Communications:
The marketers of the Seaside have chosen to create personal selling, public relations, and
direct marketing strategies to communicate the Seaside Filtering System to target consumers.
Personal selling will be mandatory because presentations, phone calls, and meetings will be
Culligan’s only methods of informing and persuading offers to clients. Nonetheless, it also
positions Culligan to manage and build customer relationships, which can lead to win-win
transactions and future business for Culligan. Public relations because part of the marketing
strategy is to capture the acceptance of many environmentally conscious consumers in order to
attract the interests of cruise lines aspiring to operate sustainable cruise ships. Direct marketing is
a promotion tool that will be utilized by the marketers to have an interactive relationship with its
clients. In all, the marketing promotion tools are methods for directly communicating with guests
to supply them with important information regarding the environment and the competitive
advantages of Seaside Filtering System.
Marketing Research
The marketers of the Seaside Filtering System obtained information and data for the
marketing of the system through primary and secondary research. Primary research consisted of
a survey in which 81 people responded. Secondary research was conducted by analyzing web
articles, webpages, and web documents. Further research will need to be conducted to understand
the environmental opinions of consumers. Information that will be useful in determining what
new needs cruise lines are experiencing as well as what cruise lines care about. Data about the
conditions of the ocean will also be mandatory to obtain because the marketers will need to
understand if it is achieving its marketing objective of preserving the ocean. And lastly, the
marketers would be wise to research what new markets it can enter once all cruise ships become
sustainable companies.
24 | S e a s i d e F i l t e r i n g S y s t e m
Financials
Break-even Analysis
Below are the break-even analyses for both production and marketing costs. In order to
calculate a break-even volume and minimum price to cover estimated expenses, both are
included in the third chart.
Figure 5: Productions Cost Breakdowns
Break-Even Analysis
Production Costs Breakdown
Contract Price Per Unit: $2,000,000
Fixed Costs
Per Month
Rent (45,501 SF warehouse)
$ 30,334.00
Utilities
$ 11,375.00
Equipment
$ 12,167.00
Maintenance
$
5,688.00
Total Fixed Costs
$ 59,564.00
Variable Costs
Per Unit
Raw Materials
$
6,275.00
Wages
$ 375,000.00
Transportation
$ 11,402.00
Assembly
$ 31,250.00
Installation
$ 56,582.00
Total Variable Costs
$ 480,509.00
Per Year
$ 364,008.00
$ 136,503.00
$ 146,000.00
$ 68,252.00
$ 714,768.00
Figure 6: Marketing Cost Breakdowns
Break-Even Analysis
Marketing Costs Breakdown
Contract Price Per Unit: $2,000,000
Fixed Marketing Costs
Rent (3000 SF of warehouse)
Employee Salaries
Advertising Production
Other Misc.
Total Fixed Marketing Costs
Variable Marketing Costs
PR Operating Expenses
Travel
Personal Selling
Total Variable Marketing Costs
Per Month
$
2,000.00
$ 43,750.00
$
1,666.00
$
1,500.00
$ 48,916.00
Cost Per Unit
$
3,250.00
$
6,000.00
$
5,000.00
$ 14,250.00
Per Year
$ 24,000.00
$ 525,000.00
$ 20,000.00
$ 18,000.00
$ 587,000.00
25 | S e a s i d e F i l t e r i n g S y s t e m
The marketers have calculated that in order to break even there needs to be one sale in the
first year and minimum revenue of $1,697,758.70. The production and financial goals for the
first year exceed the expected break-even points.
Figure 7: Break-Even Analysis
Break-Even Analysis
Includes Both Cost Breakdown Calculations
Sales Price
$
2,000,000.00
Fixed Cost
$
1,277,768.00
Variable Costs
$
494,759.00
Break-Even in Units
Break-Even in Dollars
$
1,697,758.70
0.85
Sales Forecast
The prepared sales forecast below shows the company’s goal to sell two units in the first
two years and then increase production in the third year. The system in sold in a contract at a
price of $2 million and in order to accommodate the company’s expenses and cruise line
company’s interest there will be a division of payments over two financial quarters. A total 55%
of the sales price in required at signing and the remaining 45% will be due upon final instillation
of the system. This forecast allows Culligan to gain a profit of $454,946 in the first year.
Figure 8: Sales Forecast
Sales Forecast
Contract Price Per Unit: $2,000,000
Year 1 2016
Q1
Q2
Sales per
unit
1
Revenue
$ 1,100,000.00
$ 900,000.00
Year 2 2017
Sales per
unit
Revenue
Year 3 2018
Sales per
unit
Revenue
Q3
Q4
Total
$ 900,000.00
$ 4,000,000.00
1
$ 1,100,000.00
2
2
$ 4,000,000.00
3
$ 6,000,000.00
26 | S e a s i d e F i l t e r i n g S y s t e m
Expense Forecasts
The office space for the marketing team consisting of seven people will use 3,000 square
feet of space in the production warehouse. The employee’s salaries average at $75,000 per year
per employee. The advertising production and other fixed costs cover costs involved with web
design and maintenance as well as any product or service used in direct marketing by personnel.
Travel and personal selling expenses are variable based on where the intended clients are being
contacted and what stage of the marketing process the company is in. As the company will
expand and increase product production, the expenses will increase as well as include new costs
for calculations.
Figure 9: Expense Forecast
Expense Forecast
Fixed Marketing Costs
Per Year
Rent (3000 SF of warehouse)
$
24,000.00
Employee Salaries
$
525,000.00
Advertising Production
$
20,000.00
Other Misc.
$
18,000.00
Total Fixed Marketing Costs
$
587,000.00
Variable Marketing Costs
Per Unit
Travel
$
6,000.00
Personal Selling
$
5,000.00
Total Variable Marketing Costs
$
11,000.00
Controls
To monitor the progress of the various marketing objectives, marketers will conduct
surveys to measure company and product awareness, analyze revenues to measure if there’s an
increase in consumers, and reach out to Oceana to help study and measure the quality of marine
life.
The first objective is to create Company and Product awareness for consumers to
understand the goals of the company. Marketers will conduct two different surveys; one will be
aimed at cruise liners, the other will measure consumer awareness. These surveys will
differentiate, as the objective is to gain insight from the different parties and understand whether
the product is gaining recognition.
The second objective is to increase the revenue of cruise liners. The idea is that
consumers will be more prone to choose a cruise liner that uses this filter system over a cruise
line that doesn’t. We will measure this by analyzing and comparing revenues to cruise lines that
27 | S e a s i d e F i l t e r i n g S y s t e m
don’t have this system in place.
The third and most important objective is to preserve the oceans. Measuring such
objective will be difficult, but with the help of Oceana marketers will be able to conduct research
experiments to measure water waste in the oceans. Oceana will conduct experiment to measure
waste in the oceans with the most traffic before these filters are implemented and after they are
deployed.
Implementation
To being the implementation process of Culligan’s Seaside filtering system, Culligan
must first contact manufacturers for the parts and materials needed to build the filtering system.
Once the filtering system is constructed, the system will undergo vigorous troubleshooting tests
to ensure the filters are working properly and the water moves from one container to another
adequately. While being tested, it is important the system operates remarkably well. If the system
doesn’t meet the standards set by the company and Oceana, modifications will be necessary.
Upon completion, the Seaside filtering system will be showcased and presented to cruise liners.
When Culligan gains the interest of cruise liners, contracts and offers will be discussed. If
cruise liners plan to implement this system on five or more ships, they will receive a special
offer. When writing contracts only those systems that have been down-paid for will be
manufactured, this will ensure extra units are not produced, and will allow Culligan to keep costs
down.
The company will keep track and monitor the filtering systems to ensure they are working
properly and analyze and document the different variables including filtration quality, product
awareness, and cruise line revenues. The implementation process will be long, but working
diligently the goals set by Culligan and Oceana will be accomplished.
Marketing Organization
For Business-to-business marketing, it is important to build a team of representatives to
better assist the needs of this market. The Seaside filtering system will not be mass-produced, but
will require agents to be very knowledgeable and technical. Insightful individuals will be hired to
complement the work of sales representatives. Since this is a new product that requires educating
consumers, personal selling will be crucial. Personal selling will help consumers to better
understand how this product works and the advantages of integrating such system. The personal
selling team will be composed of technicians and representatives what will contact cruise liners
28 | S e a s i d e F i l t e r i n g S y s t e m
and will explain how this system works. Below is a chart of the marketing department.
Figure 10: Marketing Department Breakdown
Since a lot of the cruise liners operate on the southern region of the West the South sales
team will be bigger than that of the North. The North team will be situated in Oregon will it will
focus on cruise liners that sail to Alaska. The southern team will operate from Los Angeles.
These teams will work closely with each other and will set goals to meet by the end of each
quarter. It will also be important to hold meetings with both teams to keep each team up to date
on how they’re doing and share experiences.
Contingency Planning
The most difficult process for the Seaside filtering system is gaining Oceana’s support
and creating a regulation that will force cruise liners to use better filtering systems. By creating a
regulation cruise liners will have no option, but to improve their filtering systems. This will
ultimately influence the increase of Culligan consumers. However, creating and passing such
regulation requires a long and difficult process. This is a major difficulty and Culligan will have
no choice, but to wait and be patient. Culligan also runs the risk of the filtering system failing
and having to spend more than what was initially anticipated. If the company faces the issue of
producing a defective product, an alternative path Culligan can take is to market the system as
one that filters the water and instead of recycling the water back to the ship; it can be dumped
into the water. Although the intention of the filtering system is not to dump the water, this
alternative will still address the environmental issue, as the water being dumped will be cleaner.
29 | S e a s i d e F i l t e r i n g S y s t e m
References
3M. (n.d.). Retrieved October 17, 2014, from http://solutions.3m.com/wps/portal/3M/
en_US/3M-Purification-Inc/3MPI-US/
About Greywater. (2014, January 1). Reuse. Retrieved October 6, 2014, from
http://greywateraction.org/content/about-greywater-reuse
Brave New Leaf (2008, March 07). The 12 kinds of environmentalists. Brave New Leaf
Retrieved from http://www.bravenewleaf.com/environment/2008/03/the-12-kinds-of.html
Bloomberg. (n.d.). Company overview of ZENON Environmental Inc. Retrieved October 16,
2014, from http://investing.businessweek.com/research/stocks/private/snapshot.asp?
privcapId=877418
Cruise Market Watch. (n.d.). Market. Cruise Market Watch. Retrieved October 13, 2014, from
http://www.cruisemarketwatch.com/market/
Culligan. (2013, January 1). Retrieved October 16, 2014, from http://www.culligan.com/
Culligan. (2014, January 1). Feel Safe Knowing. Retrieved November 24, 2014, from
http://www.culligannation.com/
Friends of the Earth. (2013). 2013 Cruise report card. Friends of the Earth. Retrieved from
http://www.foe.org/cruise-report-card
National Geographic. (n.d.). Great pacific garbage patch. Retrieved October 6, 2014, from
http://education.nationalgeographic.com/education/encyclopedia/great-pacific-garbagepatch/?ar_a=1
Hilton, S. (2007, October 18). Cruise lines tackle challenge of reducing waste, protecting oceans.
SFGate. Retrieved from http://www.sfgate.com/travel/article/Cruise-lines-tacklechallenge-of-reducing-waste-2534432.php.
30 | S e a s i d e F i l t e r i n g S y s t e m
Hosmer, L. (2008). The ethics of management (6th ed., pp. 21-22). New York, NY:
McGraw-Hill Companies.
Investigate West. (2010, June 16). A below-deck look at recycling and wastewater treatment on
Holland America's Zaandam. Retrieved October 6, 2014, from
http://www.invw.org/node/1063
Paloti, M., Poma, E. L. (2014). Green Cruising. Cruise Critic. Retrieved from http://
www.cruisecritic.com/articles.cfm?ID=528
Oceana. (2012). Cruise ship pollution: overview. Oceana. Retrieved from http://oceana.org/en/
our-work/stop-ocean-pollution/cruise-ship-pollution/overview
Venipedia. (n.d). Cruise ships. Venipedia. Retrieved from
http://www.venipedia.org/wiki/index.php?title=Cruise_ships
Wind Rose Network. (n.d.). Retrieved October 16, 2014 from
http://www.windrosenetwork.com/The-Cruise-Industry-General-Analysis-andOverview.html
31 | S e a s i d e F i l t e r i n g S y s t e m
Appendix A: Vacation on a Cruise Ship Survey
What's your age range? *
o 18-25
o 26-33
o 34-41
o 42-49
o 50-57
o 58-65
o 66+
What is your occupation? *
o Student
o Full time employee
o Retired
o Other:______________
How aware are you of our environmental issues? *
1 2 3 4 5
Not aware
Very aware
Are your purchasing decisions impacted by your environmental awareness? *
1 2 3 4 5
Not at all
Most Definitely
Have you been on a cruise ship in the last 5 years?
o Yes
o No
If yes, do you remember the name of the cruise ship?
__________________________
32 | S e a s i d e F i l t e r i n g S y s t e m
If no, would you like to or are you planning to have a vacation on a cruise ship?
o Yes
o No
Are you aware of the dumping of "grey water" by cruise ships? (Grey water is created by
showers, sinks, dishwashers and laundries in the cruise ships which contains contaminates that
are dumped into our oceans causing damages to the environment.)
o Yes
o No
Now that you know a little bit about the environmental concerns related to cruise ships, would
you still consider going on vacation on a cruise ship? *
o Yes
o No
If, a cruise company began implementing environmental friendly practices, would you use the
services from this company rather than one that didn't? *
o Yes
o No
33 | S e a s i d e F i l t e r i n g S y s t e m
Appendix B: Financials Calculations
Production Costs
Rent:
1520 Moffett St, Salinas CA,
45,501 SF
Estimated at $8/SF
Utilities:
Estimated at $3/SF of 45,501 SF
Equipment:
Estimated at $400/Day running 365 days a year
Maintenance:
Estimated at $1.50/SF on 45,501 SF
Raw Materials:
Based on current Culligan Products
$800 filtering systems, $2,500 each tank (total of 2), $200 pipes, $275 pumps
Wages:
Employees- 25 personnel earning $15/Hour
Transportation:
Local and Semi trucks for transportation.
Based on 2 local trucks averaging 15 mpg at $3.25 gas price/ gallon driving 100
miles/week
And 1 Semi truck for larger transportation averaging 7 mpg at $3.25 gas price/gallon
driving 2000 miles/week
34 | S e a s i d e F i l t e r i n g S y s t e m
Assembly:
Estimated on production of $250/day per 125 days of production
Installation:
Estimated for a 2 week installation
Transportation costs- $582
Labor- $6000
Misc. Costs- $50,000
Marketing Costs
Rent:
Included in production rent, offices using 3,000 SF of 45,501SF warehouse.
Salaries:
Total of 7 employees in marketing department each averaging $75,000 per year
Adv Production:
Web Design and maintenance- $7,000
Direct Marketing- $13,000
PR Opt Expenses:
Estimated $3,250
Travel:
Based on long distance travel expenses for 2 people totaling $7,000
Advertising:
Based on costs for production information, models, material per year totaling $10,000
35 | S e a s i d e F i l t e r i n g S y s t e m