Swimming With The Tide

Lew Beale, the current Managing Director and principal shareholder of Aquatic Leisure Technologies joined the company in 1978. At that time, 50 pools were being installed each year. In 2004, the forecast sales volume is approximately 2,000, of which one-third will be exported outside the State of Western Australia. That ensures the company enjoys the status of being the largest fibreglass pool manufacturer in the southern hemisphere and maintains between 35% and 40% of the Western Australian marketplace. It is also Perth’s largest concrete pool builder.

During the intervening period, the company has acquired Russieville Pools (1992), Sapphire Pools (1998), Buccaneer Pools and Spa Showcase in 2001. Instyle Concrete Pools is a recent addition to the group.

Aquatic Leisure Technologies endeavours to maintain a continuous growth rate of 15% per annum. Profits are reinvested into the company which operates in a very capital intensive industry.

This is a quintessential WA family with son Ben(General Manager/Director) and daughter Lynley Papineau(Marketing and Quality Director), both University graduates, being actively involved in the management. Considerable stress is placed on each family member understanding the nature of their positions, to being empathetic to staff members and customers and being committed to the ongoing development of the business. A policy of training one’s own replacement is the foundation of personal and corporate progression for all managers and employees.

Staff members total 150, distributed throughout the head office operations and 9 sales centres. A team of 25 sales people generate the revenue. The company undertakes all aspects of the business including design, building prototypes, creating their own moulds, marketing, market research, sales, installation and service. Some raw materials are imported. Aquatic Leisure Technologies is the only Gelcoat manufacturer in Western Australia.

In a competitive industry which is driven by price Lew Beale emphases the importance of quality. Since 1984 the product range has been quality certified. In 1992, the company became the first swimming pool manufacturer and only the second company in the fibreglass sector to be ISO 9002 certified in Australia. This standing has since been progressed to ISONZ 9001.

A measure of the company achievements was in 2001, when Lew Beale was recognised by the local Chamber of Commerce, being presented the “Business Person of the Year” Award.

Marketing presence

Lew considers television advertising to be important to establish awareness of the brand names, and to project the emotion of the lifestyles associated with swimming pools. The medium provides reach and flexibility. Weekend print advertisements complement the television placements. Radio is used sparingly. Care is taken to avoid any emphasis on price. In essence, the company promotes the industry at large.

The three major company-owned brands are strategically positioned. Aqua Technics is founded on technology, quality and value, Sapphire establishes itself on lifestyle and Buccaneer endeavours to create and realise the dream for prospective clients.

Special offers

Seasonally based special offers are scheduled for the marketing campaigns to counter typical downturns of demand.

Tight adherence to lead times for council approvals, manufacture and installation are part of the appeal factors. Time-poor consumers do not like waiting.

Targetted audiences

The primary audience for the company’s differing brands are the second and third home buyers, who seek a swimming pool upon completion of the construction of the home.

First home buyers are inclined to allow a lapse of 2-3 years before contemplating an investment in a swimming pool.

Interestingly, widespread recall remains of interest rates in the early 1990’s at 22% per annum. Therefore, the interest rate increases by the Reserve Bank of Australia in late 2003 did register with the market place and affected the level of demand.

Muddied waters

The market circumstances, including the intrusion of governments, have created a more complex environment. Accurate forecasting is difficult.

The introduction of the Goods and Services Tax threw peoples buying intentions for swimming pools into disarray, with few recognising that costs increased by only 4%, because the sales tax was applied only to wholesale inputs on selected items. Local council and state government regulations and legislation on mandatory safety fencing also initially created a buying void with sales dropping 25% as a result.

The traumas of September 11, 2001, Bali in October 2002,two wars and the financial collapses of Ansett Airlines,Pasminco and HIH Insurance adversely effected consumer confidence.

The fluctuations in demand were substantial and immediate.

Economic recovery tended to be a further perplexing market consideration as funds were channelled towards property investment and then to the stock market. Consumer confidence soared in the latter half of 2003 following eighteen months of tight and difficult trading.

Understandably, budgeting remains difficult and contingency planning is important in this volatile and fickle market.

A moment of reflection

Lew Beale still enjoys the industry because it enables him to meet and mix and interact with people. He welcomes the opportunity of working with his two children, both of whom are very capable.

Lew is proud of Lynley winning the Australian Business Woman of the Year for the Private Sector Award in 2001 at both State and National level.

His enthusiasm for all things water is reflected in his passion for boating and ownership of Challenge Marine in metropolitan Balcatta since 1994.

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