Methven Strategic Contemporary Marketing SummaryMethven is a company specialized in developing luxurious showers and tapware using high technology and giving customers an amazing experience. Their objective is to develop technological experiences that don’t cost to earth. To become the first in the market, Methven must analyse external factors using tools such as PESTEL analysis with the main goal to achieve competitive advantage. According to PESTEL analysis, Methven has to focus more on addressing economic factors that can be affected in the business to achieve their goals. Also, it is fundamental to analyse their competitors that are Foreno and Greens Tapware and identify their weakness and strengths to achieve an advantage in the market.For bringing a good market opportunity, Methven has the main target in Builders and plumbers. To attract more customers, Methven can create a product called T?rire Shower having an application on the Smartphone that customers can control the pressure and temperature during shower’s time. This product has the purpose of capture new customers and gets the customer’s value. As well as, increase online selling to bring more profit to the company.The product is completely related to the market where the main objective is to satisfy customer needs where Methven brings innovation, quality, different design and the most important that is the amazing experience. Giving value to customers.Another factor that is important to attract customers is to identify the right pricing for the market. For that, Methven has two pricing strategy that is dynamic (focus on the geographical location of customers) and International pricing (focus more on the commerce of goods in terms of money) to keep the forefront in the market of showerings.In addition, Methven has distribution channels that are business to business (B2B) and with the objective to get more profit Methven has opened a solution to distribute Business direct to customers (B2C), providing a high quality of services and quick profit.To achieve the market goal, Methven has applying marketing communication through social media such as advertisements. And to stay in the forefront, Methven applies different types of monitoring such as direct feedback from customers, through questionaries, or internet feedbacks.Therefore, it is fundamental apply and analyse all this factor to achieve competitive advantage in the market and get better profit.The analyses made in this project are based on information about Methven which is sourced from a combination of the company´s websites, Annual Reports, and Methven´s other publications. In addition, we formulated a comprehensive series of interview questions, which we then emailed directly to Methven. A representative of the company responded that the company had declined to answer the questions we had written. All due effort was made to source information directly from Methven´s available documentation. If no such information was available, however, we made assumptions based on our knowledge of Methven as a company (Figure 4).Introduction3.1 HistoryMethven is a company which designs, manufactures and distributes showers, valves and tapware. It was founded in 1886 by George Methven, in Dunedin, New Zealand. After World War II, the company was purchased by McKechnie Bros PLC and Peglers ltd. During this period, Methven focused on manufacturing tapware and valves for homes in NZ (Methven, n.d). Between 2004 and 2010 Methven launched a luxury line of shower products, drawing upon water-efficient technologies. The company then expanded further by introducing this product line into Australia and China. They launched AurajetTM, their most recent line of luxury and innovative showers in 2015 (Methven, n.d).3.2 ProductsMethven has two product lines – showers and tapware. They also manufacture and sell accessories such as domes, hand towel rings and soap dishes (Methven, n.d).3.3 VisionMethven’s vision is “to be the authoritative leader in showers, taps and valves, setting industry leading standards for our customers, shareholders and team” (Methven, n.d).3.4 Current positioning and value proposition Methven identifies itself as a creator or fascinating product designs. It emphasises the luxuriousness of its products, as well as the fact that its products provide an amazing water experience to the consumer, which does not cost the earth. The company is aware of the impact it can have on the environment and therefore takes care of this by having strategies for sustainability (Methven, n.d).ContentsSummaryIntroduction4. Analysis of Marketing Environment4.1 PESTEL analysis4.2 Characteristics of the existing target market4.3 Competitor analysis5. Marketing Goals5.1. First goal:5.2. Second goal:6. Product6.1 Levels of Products6.2 Product related to the market6.3 Research6.4 Analysis of market opportunity6.5 Proposed Market Opportunity7. Price and Positioning7.1 Pricing strategy and a product/company’s positioning.7.2 Pricing Strategy for Methven8. Distribution9. Promotion10. Monitoring & controllingReferencesAppendix4.   Analysis of Marketing Environment4.1 PESTEL analysis  According to PESTEL, we think that Methven need to be focused on addressing economic factors affecting their business, in order to increase their chance of achieving their goals. One of the Methven’s goals is to increase their sales in China and Southeast Asia. When the Company first began, its core market was NZ, UK and Australia. Although it has obtained benefits within this market, Methven has a focus on strongly targeting markets in China and Southeast Asia because they want to increase their sales (Methven,2018). Based on this analysis, we suggest that Methven need to be aware that their goal can be affected by political relationships between China and New Zealand and also it can be affected for the exchange rate.Political factors impact upon Methven’s marketing strategies the most out of all of the six factors of the PESTEL analysis. Methven manufactures its products overseas therefore import and export policies can affect the price of Methven’s products.4.2 Characteristics of the existing target market One of the important decisions that every company face is to decide which what their target market will be. Companies need to understand the customers and establish competitive advantage in the industry they are operating in. The target market is the group of consumers whose needs are fulfilled by the activities and offerings of the company which aims to target them (Hooley, Piercy, Nicoulaud, & Rudd, 2017).Methven group has different brands with different target markets. Echo, Flexispray, and Nefa are Methven group’s brands which have basic and economical designs. Steriline is a brand targeted towards at hospitals and schools. The name of the brand which represents Methven’s luxurious showerware is simply called Methven.We are focussing on this particular brand, of which the current target market is builders and plumbers. When consumers go about the process of selecting showerware and tapware for the domestic or commercial properties which they are building or renovating, builders and plumbers are the individuals which are able to recommend Methven’s products directly to these consumers (Methven, n.d.).      4.3 Competitor analysis Methven have various competitors. We have chosen two of these.  5. Marketing Goals5.1. First goal:Develop and introduce into the market a new product called T?rire Shower (M?oriDictionary, n.d.).The objectives of introducing this new product will be:-          Gain a high market share within 10% in a year-          Integrate innovation and technology-          Capture new customers and increase sales by 8% within a year after the T?rire Shower is launched.Brief description of T?rire Shower:This new product will use a smartphone application which will provide product users with the option to adjust the following settings: water temperature and pressure, as well as the duration of the shower.5.2. Second goal:Improve digital marketing strategy by utilising online sales within 12 monthsThe objectives of that goal will be:-          Increase profitability by 5%-          To more efficiently reach consumers who are not currently meet by Methven’s present marketing strategies.-          Use another sales channel for products6.   Product6.1 Levels of Products       6.2 Product related to the marketMethven’s products are related to the market in terms of satisfying customer needs and desires. Satisfied customers the appreciate design and quality of the goods that Methven provide them. Customers’ perceptions of Methven’s products are positive; they perceive the product in the same way that Methven aim to sell it. This intended perception is that Methven provides a high quality and amazing shower experience. Another thing that we can infer is that Methven’s products are intended for customers with middle and high incomes, and these customers are used to luxury products. 6.3 ResearchWe created a questionnaire to evaluate customers’ values (figure 1). In this questionnaire, we were asking about Methven’s features, customer experience and product value. This questionnaire was emailed to various people and others were done outside various hotels. The only requirement was that every person surveyed should have had an experience with Methven products (Figure 2 and 3).6.4 Analysis of market opportunity6.5 Proposed Market Opportunity 7.   Price and Positioning7.1 Pricing strategy and a product/company’s positioning.To attain the competitive advantage the company has apply pricing strategy. Pricing strategy is a powerful method to gain profit to achieve a competitive advantage (The Economic Times, 2019), There are several types of strategy that the company can implement. For Methven, they have two kinds of strategy that are applied such as international pricing and geographical pricing. International pricing is a process to examine the market and purpose the correct prices have to be sold according to exchange rates. It is important to be aware of the exchange rates where they have variation because of the external factors such as political, economic, social and others (Steps involved in Pricing in International Marketing, n.d.). The geographical pricing is a method to introduce pricing according to the location where the customers are located (Kenton, 2018).7.2 Pricing Strategy for MethvenBecause of the powerful innovation and development, Methven guarantees that they are the leaders of the industry developing innovative designs and using high technology to give amazing water experience for the customers and at the same time caring about the environment. As well as, recognised not just in the global design but also internationally receiving a reward in Chicago Athenaeum. Having successfully developed various award-winning showers technologies including the registered Twin lever tapware and Satinjet® twin jet shower (Methven, 2018).8.   DistributionThe distribution channel is a way that the goods come from producer to final consumers. It is an important tool for the marketing mix where they will define how it will be delivered for customers. This transportation can be Business to Business (B2B) or Business to customers (B2C). B2B is when the transportation happens between producer and industrial user while B2C happens between producer and final user (Francis, 2018).It also can be direct or indirect. The direct channel is when the product or service from the producer is delivered straight to the customer where no representatives are involved. Indirect channel is when intermediaries participate in the distribution channel. Distribution Channel for Methven (Methven, 2018).Methven Ltd has a B2B (indirect distribution) channel where Methven sell international and national:This table show that in New Zealand, Methven has business distributor such as Bunnings Ltd, Harrison&Bloy, Carters, Chesters. In Australia, some of the business distributors are Bathroom International, Amanti Tiles & Bathrooms, Bathroom Warehouse and C J R Industries while for UK they have B A Jackson Ltd, Developments Devo Ltd., Bathroom Elegance Ltd, Bathroom Solution and Bridport Plumbing.According to the Methven’s goal, developing a new product named as T?rire and improve the digital marketing (providing more online services) with the main goal of getting more profit, use other methods of channel and integrate innovation and technology to reach more customer.9.   PromotionPhilip Kotler: “Those marketing activities other than personal selling, advertising, and publicity that stimulate consumer purchasing and dealer effectiveness, such as display, shows, demonstrations, expositions, and various other non-current selling efforts, not in ordinary routine” (Rudani, 2010).In order to develop a good promotion we have to focus on communication strategies, with these tools we will able to show the new products and technologies developed by Methven to future clients, for example for the launch of the new product such as the T?rire shower that came with cell phone management through an application, the company needs a visual aid for the promotion by using printer advertising, such as advertising in construction and plumbing magazines or in architecture and innovation magazines, since the main target of the company are the construction and plumbing companies at international level (B2B – Direct), and these companies are in charge of recommending Methven product to the final customers.Another way to promote the new showers in the market would be based on personal selling, specifically demonstrations in different international conventions such as Western Pool and Spa Show (Long Beach, USA) which is an International exhibition by pool and spa industry to generate trades, The Luxury Expo (Dana Point, USA) exhibition or trade event which showcase new technology, Maintenance Equipment/Supplies in the bathroom and kitchen area, or to not go so far we can start the demonstrations in a market already known as would be New Zealand in the Franklin Home & Lifestyle Expo ( Auckland, New Zealand). It is an exhibition with a conference of industry experts, live demonstrations, new equipment and suppliers. 10.   Monitoring & controlling10.1  Monitoring & controlling Another method we can use to evaluate the performance of our implemented marketing strategies is the feedback of our personal sellers, since they are in charge of transmitting the company’s message through the interactive demonstrations, as well as being those responsible for transmitting the customer’s response to the company, whether good or bad.If in case the customer’s response is negative, the company with the collection of information and the feedback of our personal sellers, can evaluate and control the performance of the product, why the client is responding in that way to the implementation of our strategies and how the company can correct those weak points. ReferencesBanfield, D. (2017). Methven signs distribution agreement for North America. Retrieved from http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast2.amazonaws.com/attachments/MVN/307644/266383.pdf.Gordon, I. (2014). Creating Product Addicts. Ivey Business Journal, 1–4. Retrieved from http://ezproxy.aut.ac.nz/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=95698391&site=eds-liveGreens. (n.d.). About us. Retrieved January 8, 2019, from https://greenstapware.com/about-usGreens. (n.d.). Innovation. Retrieved January8,2019, from https://greenstapware.com/innovation/Hooley, J., Piercy, N., Nicoulaud, B., & Rudd, J. M. (2017). Marketing Strategy and Competitive Positioning (Vol. Sixth edition Graham Hooley, Nigel F. Piercy, Brigitte Nicoulaud, John M. Rudd). Harlow, England: Pearson. Retrieved from http://ezproxy.aut.ac.nz/login?url=http://search.ebscohost.com/login.aspx?di rect=true&db=nlebk&AN=1459626&site=eds-liveKenton, W. (2018). Geographical Pricing. RetrievedFebruary 11, 2019  from https://www.investopedia.com/terms/g/geographical-pricing.aspMethven. (n.d.). Accessories. Retrieved December 9,2018, from https://www.methven.com/nz/tapware/accessories/Methven. (n.d). Committed to the environment. Retrieved December 9,2018, from https://www.methven.com/nz/our-story#carousel-environmentMethven. (n.d). Our History. Retrieved December 5,2018, from https://www.methven.com/nz/our-storyMethven. (n.d). Our Other Brands. Retrieved January 20,2019, from https://www.methven.com/nz/our-other-brands/Methven. (n.d). Showering. Retrieve December 6,2018, from  https://www.methven.com/nz/showering/Methven. (n.d.). Tapware. Retrieved December 9,2018, from https://www.methven.com/nz/tapware/Methven. (2013). Performance Summary for the year ended 31 March 2013. Retrieved from https://www.methven.com/sites/default/files/investor- info/Highlights,%20Chairman%20&%20CEO%20Review_0.pdfLinkedin. (n.d.). Foreno Tapware. Retrieved from https://co.linkedin.com/company/foreno-tapwareFrancis, J. (2018). Distribution Channel in Marketing. Retrieved February 11, 2019, from https://study.com/academy/lesson/distribution-channels-in-marketing- definition-types-examples.htmlForeno. (n.d.). About Foreno. Retrieve February 1,2019, from https://www.foreno.co.nz/about/Foreno. (n.d.). All Products. Retrieved January 8, 2018, from https://www.foreno.co.nz/product-category/all-products/Rudani R.B.(2010). Basics of Marketing Management Theory & Practice. Retrieved from https://books.google.co.nz/books?hl=es&lr=&id=7DFlDwAAQBAJ&oi=fnd&pg=PR1&dq=Basics+of+Marketing+Management+(Theory+%26+Practice)&ots=YRuWTz2mIn&sig=xOxF1yu1lkzRxyWoZAgJ9Ym2fL4#v=onepage&q=Basics%20of%20Marketing%20Management%20(Theory%20%26%20Practice)&f=falseSmart. (n.d.). In Te Aka Online Maori Dictironary. Retrieved from https://maoridictionary.co.nz/search?idiom=&phrase=&proverb=&loan=&his LoanWords=&keywords=smart?         Steps involved in Pricing in International Marketing. (n.d.). Retrieved February 11, 2019, from https://accountlearning.com/pricing-in-international-marketing-steps-involved/?         The Economic Times (2019). Definition of “Pricing Strategies”. Retrieved February 11, 2019 from https://economictimes.indiatimes.com/definition/pricing-strategiesAppendixFigure 1 (Questionary implement to get feedback of the customers).Figure 2 (Example of full forms).Reverse figure 2Figure 3Reverse figure 3Figure 4 (Emails)