As announced by APSP:

Hot Tub Industry Growth Initiative Put On Hold

Alexandria, VA (July 7, 2009) – The Hot Tub Council of the Association of Pool and Spa Professionals (APSP) has voted to put on hold its Hot Tub Industry Growth Initiative (HTIGI) until the economy improves and widespread industry support exists to restart the effort.
   
On June 5, 2009, the Hot Tub Council held a Webinar to introduce a marketing plan for HTIGI that concentrated on short-term education and consumer lead generation for hot tub retailers.  Although the short-term approach seemed to stray from Council’s broader mission of reaching consumers that are not currently considering hot tubs, the plan reflected a “walk before you run approach.”  With many manufacturers and suppliers currently struggling in the economic downturn, Council realized that the millions required for a traditional national consumer awareness campaign could not be raised.  “We had hoped to generate several hundred thousand dollars for Phase I of the campaign”, says Hot Tub Council Chair, Steve Gorlin, “and use success stories from those activities to fuel broader efforts.”  

APSP BOD member, Chris Robinson adds, “I have found that even some of our more dedicated supporters throughout the two-year process of developing HTIGI feel that they cannot support this effort right now.  Some are simply unable to contribute financially at this time, some feel that what is planned is “too little, too late,” and still others feel that we have crossed the line with our short term plans into what should be manufacturer territory – retailer education and support.”

Council is confident that when the economy improves and consumers’ interest in luxury goods returns, industry players will again consider what they can do to collectively reach those consumers who would like a hot tub, but haven’t yet put it at the top of their shopping list.  “Until then,” says APSP President and CEO Bill Weber, “there is much work for Council and the Association to do on behalf of the hot tub industry such as creating a new energy efficiency standard, developing a reliable and broad-based industry statistics program, promoting safety, advancing professionalism, and reaching the consumer through public relations efforts and the association’s website at APSP.org.”

Specific questions about the HTIGI can be directed to Lauren Stack, APSP Director. Public Affairs and Industry Promotion (lstack@apsp.org).  

Hot Tub Industry Growth Initiative Timeline
August 2006                      
Hot Tub Council (HTC) established a Strategic Planning Committee (SPC), consisting of current council leadership, to investigate initiatives launched by other industries.

January 2007                     
SPC developed mission statement: ”To develop and implement initiatives that promote and improve the consumer hot tub purchase and ownership experience to increase sales of hot tubs, related products and services.”

April 2007                           
Members of the hot tub industry met in Chicago to learn from the successful launch of the National Marine Manufacturers Association’s “DiscoverBoating” campaign.  The industry outlined objectives for specific taskforces necessary to launch initiative.

Summer 2007                   
An organization taskforce was created to work out details for the creation of a 501C(6) entity, separate from APSP, to direct the campaign.  The funding taskforce developed a proposed pump assessment to fund the campaign. The initial fee was $10 per horsepower to generate $10 million in revenue annually at the 2006 industry sales level

September 2007             I
Industry met in San Diego where reports of the funding and organization task forces were well received.  A call for start-up funding reached the $400K threshold by November 2007.

January 2008                     
The marketing taskforce hired Harrison Group to perform both quantitative and qualitative consumer research that showed 6.3 million consumers were “very likely” to purchase a hot tub if approached.  The study also showed that 50 percent of previous owners were category rejecters and would never own a hot tub again.

March 2008                       
The marketing taskforce conducted a nationwide search for an advertising agency to develop and carry out the industry campaign.  At an industry meeting in Alexandria, Va., three ad agency finalists made pitches;  The Richards Group of Dallas was selected.  TRG’s client list included Home Depot, Chick-Fil-A, Bridgestone and GoRVing.

April 2008                           
The SPC worked with TRG to develop a brand message for the hot tub category:  “Moving body, mind and soul at 104 degrees.” The branding message did not appear in consumer communications but it formed the basis for all message development and creative.

Summer 2008                   
The Hot Tub Council launched an intensive industry sell-in campaign with a complete program and media plan reflecting the key data from the Harrison Group research.  SPC sought the support of 20 manufacturers and 20 suppliers to take the next step with the initiative, but this goal was not met despite repeated presentations online and in person.

Fall 2008                              
The SPC turned to reaching the retailers with news of the campaign.  The initiative was widely supported by retailers, according to a limited survey, but they had little interest in funding the initiative themselves.  They felt manufacturers should do so.

January 2009                     
With the severe downturn in the economy, and the realization that the original $8 to $10 million would no longer be possible on 2008 sales, SPC hired Eric Richardson of Growth Development Associates to work on a strategic platform that would address “Hot Tubs.  Today.  Tomorrow. Forever.” -- at lower funding levels.

May 2009                           
The Hot Tub Council embraced the new platform that involved at the start, three month-long promotions / sales training programs by GDA for hot tub retailers.  Success stories from the courses would be used to fuel interest in supporting longer-term consumer awareness campaign elements.  Council members collectively, and anonymously “pledged” $60,000 toward the launch of the initiative.

June 2009                           
The HTC held a webinar on the new walk-before-you-run program; 49 industry members attended from over 200 invitees.

July 1, 2009                         
With minimal response to the webinar and follow-up communications, HTC voted to shelve the initiative until such time that the economy improves and there is sufficient interest within the industry to support it.



About APSP

The Association of Pool & Spa Professionals (APSP) is the world's largest international trade association representing the swimming pool, spa and hot tub industry. APSP’s mission is promoting consumer safety and enhancing the business success of its members. Members adhere to a code of business ethics and share a commitment to public health and safety in the use of pools, spas and hot tubs. APSP member companies include manufacturers, distributors, manufacturers' agents, designers, builders, installers, retailers, and service professionals. For more information visit www.APSP.org.