Aqua Drizzle: Business Plan for Smart Shower - MA625 Entrepreneurship

This report presents a comprehensive business plan for Aqua Drizzle, an innovative Wi-Fi-enabled smart shower. It begins with a product description, detailing features like temperature control and water flow management. The report then analyzes the target market, segmenting it demographically and psychographically, focusing on high-income and tech-savvy consumers in the Australian market. A key element is the business model, which outlines customer relationships, revenue streams, and value propositions, including easy installation, water conservation, and temperature control. The report also identifies business objectives, key resources, competitors (like Kohler and Moen), and a detailed revenue model, including startup costs and projected profits. The plan incorporates elements of integrated marketing communication to achieve its goals, and references relevant academic sources to support its findings.

ENTREPRENEURSHIP AND
INNOVATION

Introduction
The report will describe description of the product (smart shower enabled with Wi-Fi).
Further, there is a description if target market related to psychological and demographic
target market. Further, there is a discussion of elements of business model including customer
relationship, revenue streams, business objectives, key resources, competitors, business
model, and value proposition (Yeon, Lee, Kim, Park, & You, 2015).
Description of product
Aqua tech brand deals with innovative showers for both residential and other commercial
level, which can deliver great value to the customers. The report will present introduction to
an innovative product named as “Aqua Drizzle,” which is a Wi-Fi operated Smart shower.
The concept of digital shower will control every aspect of the experience of using the shower
such as temperature, duration, outlet, flow, and the activation while pairing with the home
system (Yeon, Lee, Kim, Park, & You, 2015).
Showerhead Diameter: 6.1862 inches
Box Dimensions: 12½ inches x 3.2 inches x 6.4 inches
Mass Weight: 0¾lbs
Description of market
Target market is the group of potential customers in market. The main target market includes
high-income level people who do not think while spending money on the latest technology.
Other target market will include middle class people who are quitter money conscious but
they like to purchase latest technology. The product will serve several market segmentation
including demographic and psychological segmentation.

On the basis of demographic segmentation, segmentation is done through marital status,
social classes, age and income level. Demographics will allow examining location and
community of the customers. It is illustrated below-
Psychographic segmentation- it takes into account for the potential customer`s income level,
personality, lifestyle, and their social class. Psychographics will further let the marketers to
know the customer values, interests, opinions and their beliefs.
While launching it in the Australian market-
Demographic Targeting the Age group from 20 years to 69 years
Targeting the Marital Status who are single, married, and Married with
children
Targeting people with Income level of $26,000 per annum
Targeting people and their residences belong to Home owners and renters
Psychographi
c
Targeting market would be the social Class, which will include
Managerial, professional, semi-skilled workers, administrative, and
skilled manual workers
The Lifestyle of target market will include aspirer, successful,
mainstreamer, and explorer
Customer relationship
While maintaining strong relationship to the customers, which is quite essential for the
success of the organisation. Communication is the best way to build customer relations.
Business promotion and considering the need of the customers are quite important in order to
foster communication skills. In order to serve people better through Aqua-drill, it is quite
important for employees to win trust among the people by exceeding their expectations to

improve and deliver excelled product and trustable product related services (Reichman,
2017).
It is important for the organisation to ask for feedback so that it could get information
regarding issues and bring solution to their problem. The operational level of company purely
rely on talent retention to attract the existing customers and also attract new customers. There
is a possibility of risk where customers do not renew and terminate the service taking
especially on previous contracting undertaking expiring (Reichman, 2017). The company will
suffer from uncertainty of the cancellation of the services availed. It is important to entertain
the implementation of entertainment processes, which remained as same situation happening
with the new clients. This will further lead to business plans and implementation of their
strategy to attract new clients (Reichman, 2017).
Business model
Business model is a globally accepted standards of business through which the company can
identify the proposal, construction, and elaboration of each segment, which would imply
effort on the executive efforts and the practises. Business model will identify major
resources, revenue streams, customer relationship, channels, value proposition, key partners,
key activities, critical success, and cost structure.
Value proposition
In order to identify the value proposition, here are some criteria on which, it can be
determined-
Identification of all the benefits as being offered by product
The use of water can be controlled easily with digital water, which tell your usage. It leads to
easy installation by replacing current showerhead and fixtures. The average consumption of

water has been shown from the research with Average q21 per head that is 2.5 gallon per
minute. Users can easily differentiate water temperature with colour projections.
Identification of customer issues
The main issue is the lack of trust on the new technologies. The customer faced lack of
control as per the mood swings of a person, lack of elite and social class representation.
Certain features to purchase Aqua tech
It includes temperature control characteristic in Aqua tech, which will certainly allow users to
adjust the desired temperature from hot to cool with the use of three-colour lighting. The two
lights include blue and purple lights representing cold water, red colour represents extremely
hot water, and green colour represents warm water. It has a water meter, temperature, and
water flow control enabling with two major functions such as jet to meet as per showering
preferences (Geissdoerfer, Vladimirova, Fossen, & Evans, 2018).
Objectives intend to achieve
The main goal of Aquatech is to avail customers with fixtures of bathroom so that it can be a
water saving technology. The future goals will include growth of products to the international
markets with wide variety of product offerings (Seidenstricker, Rauch, & Battistella, 2017).
The company plans to expand the product to the differentiated featuring such as wireless
connections, message, pauses, music player, and Bluetooth connections. There is a shower
head volume timer enabled with production as being audible alarm in order to indicate as
being predetermined water, which is being delivered (Seidenstricker, Rauch, & Battistella,
2017).
The company has been using the (IMC) integrated marketing communication to attain desired
objectives through marketing plan. An approach can use the elements such as direct

marketing, sales promotion, personal selling, and public relations so that it can act as a
unified labour, seamless experience, and finally create consistent to interact with the brands
(Åkesson, Skålén, Edvardsson, & Stålhammar, 2016).
Partners
Aqua tech organisation has its own implementation team that could avail assistance to deliver
at home and install the product as well. In order to implement regional implementation that
will consist of technicians, manufactures, spare part operators, and customer feedback
reviewers (Åkesson, Skålén, Edvardsson, & Stålhammar, 2016). Further, it is important to
integrate and implement the distribution of goods and services, which will consist of
hardware procurement, installation services, and the hardware support. In order to attain
sustainable development, some global sales forces could identify installation services. While
fulfilling the sales strategy, the company has to use the referral from the electronic partners,
board of directors, and the international advisory panel (Baldassarre, Calabretta, Bocken, &
Jaskiewicz, 2017).
Key resources
The company will have internal generated intangible assets in order to attain technological
knowledge of implementing and executing the shower system, which applies research plans
and designs so that it can enhance and capitalise technical and feasible objectives
(Baldassarre, Calabretta, Bocken, & Jaskiewicz, 2017).
Competitors
Some of the crucial competitors includes Kohler K-9245-CP 2.5 GPM, Moen U shower,
WaterHawk 6, H2oVibe Rain, and dreamSpa. While overviewing the competition-oriented
objective, it is seen that it can emerge as a price leader and quality efficient with maximum

features among its competitors. It avails more advanced product as compared to competitors
in a convenient way and price (Baldassarre, Calabretta, Bocken, & Jaskiewicz, 2017).
Revenue model
When determining the revenue model, some of the major cost includes purchase of
equipment materials, installation of showers, opening inventory, spare inventory to derive
revenue and profits (Sakinç, 2016). Here is the determination of cost to launch and set up a
business plan-
Particulars Cash Required
Opening Inventory $25000.00
Installations and Fixtures $12,000.00
Equipment and Materials $98,532.00
Total Costs $135,532.00
While projecting the cost structure, it is pre-determined to derive profits in the fourth year of
operation. The company expects to make nearly $33000 with the determined sales of
$340000 in a particular year. As per the Australian industry of smart showers, it is seen that
operating generations will include plumbing, air conditioning supplier’s wholesale
distributors, and heating. Operating revenue is the revenue derived from regular operations of
the organisation. The main source of operating revenue includes huge variety of wholesale
businesses is related to sales. Major other sales of operating revenues will include
commissions, labour revenues, leasing, rental, sales, and manufacturing (Sakinç, 2016).

References
Åkesson, M., Skålén, P., Edvardsson, B., & Stålhammar, A. (2016). Value proposition test-
driving for service innovation: How frontline employees innovate value
propositions. Journal of Service Theory and Practice, 26(3), 338-362.
Baldassarre, B., Calabretta, G., Bocken, N. M. P., & Jaskiewicz, T. (2017). Bridging
sustainable business model innovation and user-driven innovation: A process for
sustainable value proposition design. Journal of Cleaner Production, 147, 175-186.
Geissdoerfer, M., Vladimirova, D., Van Fossen, K., & Evans, S. (2018). Product, service, and
business model innovation: A discussion. Procedia Manufacturing, 21, 165-172.
Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing
Science, 45(4), 467-489.
Reichman, H. (2017). Free Expression in the Global City. Academe, 103(1), 38.
Sakinç, M. E. (2016). Innovation or Financialization?: The Evoloution of the Systems-
Integration Buisness Model at Airbus and Boeing (Doctoral dissertation, Bordeaux).
Seidenstricker, S., Rauch, E., & Battistella, C. (2017). Business model engineering for
distributed manufacturing systems. Procedia CIRP, 62, 135-140.
Yeon, Y., Lee, B., Kim, E., Park, B., & You, H. (2015). Establishment and Application of a
Comprehensive Business Model Framework: Focusing on Healthcare Business
Models. Journal of Korean Institute of Industrial Engineers, 41(6), 530-539.