Water products and distribution

The plea
We first met Andrew Pearce on Business Success two years ago, when he had just come on board as CEO of New Water in Melbourne. Andrew was inspired by then owner and product inventor Mal Gordon, who developed two cutting edge water recycling systems — the Rain Reviver, which captures and stores rainwater underground and Aqua Reviver, a grey water treatment system that can save the average household up to 100,000 litres of water a year.

The Rain Reviver has sold very well in the past 24 months — over 3000 units to date — and the company has moved from a staff of three to 50, with an annual turnover of $8m.

However, it's taken two years to get full EPA approval for the Aqua Reviver, so the New Water team is keen to get it out into the market place, with an improved design, functionality, cost of production and more effective marketing.

The challenge
CEO Andrew Pearce feels that it's taking too long to get the Aqua Reviver to market. The product is handmade so very labour intensive. It could look better and be made more cost effectively.

Two years ago, water education had been a problem. The Commonwealth Business Banking Health Check shows that New Water's marketing has lifted consumer awareness. Productivity of the Rain Reviver has increased to keep up with demand. They're selling nationwide and exporting to New Zealand. Now the focus is on getting the Aqua Reviver grey water treatment system to market, along with some more detailed consumer feedback.

Advice from business mentor: Paul Berenger, Toyota Style
Paul heads the Toyota Style Australia Design team in Melbourne — the team that developed the new Aurion for the Australian and Asian markets.

Business tips from the floor:

1. Have a long-term vision for your business — 10, even 20 years from now.
2. Understand your market. You may be targeting the wrong segment with your product.
3. Ensure you are continually improving your product because you can be guaranteed your competitors are.
4. Distance yourself from your product — go out into the market place and listen to customers and do research.
5. Take advantage of your employees' skills and knowledge. Share your vision with them and get them involved in your future.

Advice from business consultant: Doug Soden, Toyota Australia
Doug Soden is part of Toyota's Product Planning Team. Toyota's attitude to business is to be proud of being number one but to think and behave like number two.

Business tips:

1. Follow the principle of Kaizan, which is continuous improvement. Never be satisfied that you've finished the job. There's always something that could be better done.
2. Know your market and understand your customer, which is the Japanese practice of Genchi Genbutsche. Understand not only your product and how it performs but also understand your marketplace, including your competitors' products.
3. Research never stops. Get a very broad cross section, not just where you think your product should be.

Advice from business consultant: Joe McDonald, Market Metrics
Market Metrics has conducted national and local research projects for all levels of government and across a broad spectrum of private sectors. They provide a comprehensive range of quantitative and qualitative market research fieldwork and support services to ensure the delivery of quality data and reports.

Business tips:

1. Research is action orientated, not static.
2. Use a certified researcher who will (a) protect you legally and (b) give you the things that you need to do at the time you need to do them.
3. Research has to feed into your strategic or management decisions.
4. Don't use research as a selling tool.
5. Outside researchers bring more objectivity and external feedback.
6. Check if the research that you're considering doing can be purchased somewhere else.

Advice from business consultant: Jack Magree, Cobalt Niche
Cobalt Niche delivers leading product development by integrating technology and creativity with real world experience to get successful products launched quickly and cost effectively.

Business tips:

1. Prioritise your requirements for developing your product. Is it about a) aesthetics; b) function; c) assembly time and methods; d) cost of manufacturing; or e) time to market?
2. Define the current problems. Design is all about problem solving. The better you understand what your problems are, the quicker things can happen.

Toyota
Book a test drive for Aurion Limited Edition or the new TRD via the Toyota website www.toyota.com.au

Cobalt Niche
For help in getting your product to the market quickly, check out www.cobaltniche.com

MarketMetrics
Market Metrics has over 100 research clients suited to a range of industries. For more information, go to www.marketmetrics.com.au

Smartcompany
There are now more jobs than people, but smart companies are getting very good at overcoming the skills shortage — like breaking roles so more people can apply, automating processes and redeploying staff into other jobs, even snaring people straight from university! For 20 ways to overcome the skills shortage, go to www.smartcompany.com.au

CISCO Competition
CISCO are giving away a technology makeover to 10 businesses across Australia.
For your chance to win a tailor made CISCO system worth up to $50,000 simply tell us how a Cisco System will improve your business. If your business has fewer than 250 employees, go to www.cisco.com/go/makeover to enter.
Entries close on December 31, 2007

Contact details:

New Water
Contact: Andrew Pearce
Title: CEO
Location: Ringwood, Melbourne
Phone: (03) 8873 3600
Website: http://www.newwater.com.au

Cobalt Niche
Contact: Jack Magree
Title: Director
Location: North Melbourne
Phone: (03) 9320 2200
Website: http://www.cobaltniche.com

MarketMetrics
Contact: Joe McDonald
Title: Director
Location: Frankston, Melbourne
Phone: (03) 9770 1099
Website: http:// www.marketmetrics.com.au

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