Team 4
Executive Summary
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Executive Summary
The Executive Summary is an extensive outline of the main points included in this
project for Eric Davis and Michigan Aqua-Tech, Inc. that takes the most important
information from each chapter, extracts it, and explains that information in a compact
format. The information not included in the Executive Summary should not be
discounted as unimportant.
Introduction
The purpose of this project for the Marketing Research 435 Fall 2009 class, completed
under the supervision of Dr. Gary L. Clark, was to provide Michigan Aqua-Tech, Inc.
and President and CEO Eric Davis, with the information and recommendations to help
provide market research and recommendations for their product, the Water Master. The
Team #4 research objectives are as follows:
1.
2.
3.
4.
Determine the feasibility of the Water Master.
Determine the level of demand for the Water Master.
Determine the target market for the Water Master.
Identify the strengths, weaknesses, opportunities, and threats as they pertain
to Michigan Aqua-Tech, Inc.
5. Provide a thorough business plan review.
The Introduction Chapter in Team #4’s project report includes the following items:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Background of Michigan Aqua-Tech, Inc.
Information on the Water Master
Mission Statement of Michigan Aqua-Tech, Inc.
Vision Statement of Michigan Aqua-Tech, Inc.
Michigan Aqua-Tech, Inc.’s Objectives, Goals, and Core Values
Purpose of this Report
Objectives of this Report
Team #4’s Mission
Contents and Organization of the Report
Literature Reviews
The purpose of the Literature Reviews chapter is to provide Eric Davis with relevant
information about the leak detection system industry and the potential market for his
product, the Water Master. The Literature Reviews Team #4 obtained are from scholarly
journals and online databases. Chapter 2 contains 21 literature reviews compiled by
Team #4. The full articles reviewed can be found in section 10 of the Appendix.
MKT 435
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Executive Summary
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The following three literature reviews contain information Eric Davis will find most
beneficial pertaining to the leak detection system industry.
1. Literature Review #1 – “The Consequences of a Leaky Pipe in a
Building”
1. Leaky pipes do not only add cost to water bills, over time leaks can
cause expensive and even catastrophic damage to a building or home.
2. When evidence of some leak is noticeable, it may be too late to do
anything the irreversible damage is done.
2. Literature Review #5 – “Sensor System Not Only Detects, But Prevents
Floods”
1.
3. Literature Review #20 – “Fix-a-Leak Week Encourages Conservation”
1. The Environmental Protection Agency has launched a campaign to
educate citizens on the problems of wasting water and to provide
suggestions on how to conserve water.
2. The next Fix-a-Leak Week campaign will take place March 15-21,
2010. Michigan Aqua-Tech, Inc. needs to contact the EPA in order to
participate in next year’s campaign. Becoming involved will give
Michigan Aqua-Tech, Inc. and the Water Master a national audience to
market their product.
Recommendations
Team #4 made full and mini recommendations to Michigan Aqua-Tech, Inc., based on
articles in journals, magazines, websites, newspaper articles, and the marketing
research report by the Fall 2009 Marketing 435 class. Full and mini recommendations
are provided to Eric Davis and Michigan Aqua-Tech, Inc. to help determine the market
and feasibility for the Water Master. The following are the recommendations Team #4
finds most pertinent to Michigan Aqua-Tech, Inc.
Full Recommendations
1. Full Recommendation #3 – “Michigan Aqua-Tech, Inc. should consider
designing different models of the Water Master, each having different
features that sell at different prices.”
1. Currently, the single design of the Water Master lacks consumer
demands for a residential product such as installation for vertical water
pipes.
MKT 435
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Executive Summary
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2. Multiple designs will expand Michigan Aqua-Tech, Inc.’s product line
and help to establish the company as a stronger competitor versus the
current one-product marketing strategy.
2. Full Recommendation #11 – “License or sell the technology used in the
water master to an established company rather than marketing the
product themselves.”
1. The technology that makes the Water Master function should be sold
to a company established in the plumbing industry.
2. Michigan Aqua-Tech, Inc. would be able to focus strictly on the
research and development of products instead of working to marketing
and sell the product themselves.
Mini Recommendations
SWOT Analysis
Team #4 carried out an evaluation of the internal and external environment of Michigan
Aqua-Tech, Inc. and the Water Master. The environmental factors can be classified as
strengths, weaknesses, opportunities, and threats. The SWOT analysis provides
information that is useful in matching Michigan Aqua-Tech, Inc.’s resources and
capabilities to the competitive environment in which the company operates. The
following are the most important SWOT entries compiled by Team #4.
1. Strengths
1. Strength 1 – “There is good communication between levels of
management and ownership at Michigan Aqua-Tech, Inc.”
i. Michigan Aqua-Tech, Inc. is a small company so information is
easily relayed among members of the organization, resulting in
timely decision making.
ii. As Michigan Aqua-Tech, Inc. grows, it is crucial they continue
open lines of communication as more employees and levels of
management are added.
2. Weaknesses
1. Weakness #9 – “The operating manual for the Water Master is not
readable to the average person
MKT 435
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Executive Summary
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i. The information the operating manual is composed of is too
technical for even some engineers to understand, let alone
average consumers.
ii. Because the Water Master is confusing for the majority of
customers, the operating manual needs to be rewritten in
layman’s terms for consumers to easily understand how to
operate the product.
3. Opportunities
1. Opportunity #4 – “Penetrating the commercial industry has the
potential to substantially increase the profits for Michigan Aqua-Tech,
Inc.
i. In the commercial industry, product awareness spreads more
rapidly and opportunity for repeat customers is greater.
ii. Michigan Aqua-Tech, Inc. should direct their marketing at the
commercial sector, focusing especially on industrial contractors
and developers.
4. Threats
Research Results
The following will be the most vital information from the Data Collection Instrument
teams: WAM, CAM, Homeowners’ DCI, Business Owners’ DCI, Insurance Interviews,
and Expert Interviews.
1. Homeowners’ DCI
1. 48.3% of respondents have experienced water damage in their home
(n=43/89) (Qn. 16)
2. $1,502.63 is the average cost of the water damage which homeowners
experienced (n=36) (Qn. 18)
3. 37.1% of respondents were Very Unlikely to buy the Water Master for
$825 (33/89) (Qn. 22)
4. $269.76 is the average which price homeowners are willing to pay for the
Water Master (n=63) (Qn. 23)
5. 91% of respondents were unaware of water leak detection systems before
completing our questionnaire (n=81/89) (Qn. 26)
6. Wow Comment:
1. DCI # 40 : Seems like overkill for a very rare problem.
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Executive Summary
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10 Reasons why Michigan Aqua-Tech, Inc. May Succeed and 10 Reasons They
May Not Succeed
Team #4 compiled a list of the reasons Michigan Aqua-Tech, Inc. may or may not
succeed given the current state of the company and outside influences as discussed in
the SWOT analysis. The following are the most vital reasons from the two lists.
Conclusion
Dr. Gary L. Clark’s Fall 2009 Marketing Research 435 class has performed research for
Eric Davis, President and CEO of Michigan Aqua-Tech, Inc. by performing several
research studies conducted by the Data Collection Instrument teams. The teams
developed results for the feasibility of the Water Master, the level of demand for the
Water Master, and the potential target market for the Water Master. The following is
Team #4’s most important conclusion as to why these results were obtained.
Final Thoughts
The Final Thoughts chapter discusses the ten most important aspects of the Marketing
Research that Team #4 of Dr. Gary L. Clark’s Fall 2009 Marketing Research class
found. Each final thought contains the thought for Eric Davis and validations for the
Most Important Thought. The following contains the three most important final thoughts
from Chapter 9 and a brief description of the key supporting data for each.
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