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dc.contributor.authorGoedseels, Maarten
dc.contributor.authorKunnen, Wim
dc.contributor.authorVerbruggen, Ruben
dc.date.accessioned2022-04-28T07:16:48Z
dc.date.available2022-04-28T07:16:48Z
dc.date.issued2021
dc.identifier.urihttp://hdl.handle.net/20.500.12127/7032
dc.description.abstractThis work is a study on the market entry of Belgian water technology company ‘WATERLEAU GROUP’ into the (European) mobile water treatment rental market. The paper is divided into a market study, a financial analysis on optimal fleet properties and a marketing strategy to optimize lead generation, including a case study on the US-branch, KROFTA. The market study shows the mobile water treatment market is a growing market. The mobile water treatment market is estimated to be worth over € 500 Mio in Europe by 2023. More and more, companies are turning to mobile water treatment solutions. Originally, mobile water treatment units were mostly used in emergency situations. While this is still a big driving reason to rent a mobile unit, mid-term and long-term rentals are increasingly gaining importance. Reasons why a company rents a mobile water treatment unit are the following: an emergency situation, planned maintenance of a fixed plant, a temporary need for increased capacity, avoiding CAPEX and using OPEX instead for water treatment, using a mobile installation as a pilot for installing a new technology or a new plant, increasing wastewater quality to meet discharge regulations or treating water in order to re-use it as process water or drinking water and more. Mobile water treatment solutions have the advantage of being flexible and are readily available. Contrary to fixed plants, a mobile water treatment unit can be operational and running in a matter of hours or days. They can be plugged into the water treatment cycle and can be adjusted to needs accordingly. A competitive analysis showed the providers of mobile units are all active in the general water treatment/technology industry and are thus known to Waterleau. Analysis through publicly available data and interviews has shown the mobile market is not saturated. Overall competitiveness is less intense as it is in the fixed water treatment market. This results from contracts being usually smaller and a higher and faster demand for mobile units. A demand analysis through surveys has shown a majority of companies is considering renting a mobile unit if they haven’t done so already. The demand analysis also showed how companies look for rental companies. This is mainly done through existing partnerships, internet searches and word of mouth. These insights formed the basis for the marketing strategy. The Ekopak prospectus was analysed and provided insights into risks, competition and opportunities. A study was performed on the Water-as-a-Service (WaaS) concept. Water-as-a-Service is a pricing scheme that allows companies to pay a fixed price per m3 of water they actually treat. WaaS got benchmarked against Software-as-a-Service (SaaS) and Energy-as-a-Service (EaaS) for contract structures. The most important advantages are the switch from CAPEX to OPEX and the guarantee a company will only pay for the water treatment that is actually needed. However, it is important to notice there is a minimum quantity stipulated in the contracts to safeguard revenues for the water treatment company. In the light of WaaS, possible contract structures were analysed. These include fixed fees, hybrid contracts, variable contracts, WaaS and subscription models. Because of the growing market, the market not being saturated and the competitive friendliness, a market entry into the mobile water treatment rental market for Waterleau is advised. Different fleet property financial scenarios and a marketing strategy follow. Financial analysis. For the financial analysis, a bottom-up revenue forecast was modelled. This market size estimation was only limited by Waterleau’s resources. The revenue forecast includes three revenue sources, namely (i) the rental of mobile water treatment units, (ii) the sales of the chemicals needed to use the unit and (iii) services and operations related to the activity of the units. The potentially winning bigger tenders through using mobile rentals as a leverage is a considerable revenue source, but was labelled as a side effect, and thus not included in the financial forecast. The revenue forecast is connected with the profit and loss statement, the cashflow statement and the balance sheet. These were used to analyse eight different scenarios. These scenarios were constructed in discussion with experts in the field and gathered information during the project. The scenarios were differentiated via 36 input parameters. These parameters include the technology of a unit, the number of units constructed, the construction country (Belgium or a low wage country), the financing methods (e.g. can sale and lease back be used or not?) and more. It concluded that DAF units are more efficient in relation to the investment they require. As a result of their low construction and material costs while having only a slightly lower rental margin with respect to the other unit types. It was found that that constructing a rental fleet with 20 DAF units in a low wage country is the optimal way to go from a financial point of view. A leveraged capital of € 2.5 Mio is needed to accomplish the project that is modelled to generate a NPV of € 1 032 627 with an EBITDA ratio of 66.2 %. A sensitivity analysis on this scenario has shown that it is beneficial to increase the rental price even if it would reflect negatively on the utilization rate. Assuming a near perfect elastic relation between the rental price and the demand thus also the utilization rate. The other scenarios are also described in detail. The model itself can easily be adapted to construct other scenarios. Marketing analysis. To end off the business plan, an extensive marketing plan was created for the mobile water treatment market. The goal of this plan is to increase the number of qualified leads entering Waterleau’s sales funnel. The marketing plan stands on three pillars: digital lead generation, leveraging partnerships and organic lead generation. The first pillar is based around the creation of a new website and generating traffic through SEO and SEA. The website is designed to entice potential customers to leave behind contact details or filling in a request-for-quote form, becoming leads in the process. The second pillar, leveraging partnerships, is centred around getting leads through referrals, either through new partnerships or cultivating the existing ones. The final pillar ensures that Waterleau is known in the market through interesting container designs and presence on conventions or trade shows. The digital lead generation was put to the test on Krofta, an American subsidiary of Waterleau, who currently operate a mobile rental fleet. This case study looked into the current performance of the company and an implementation of the digital lead generation strategy was created. The campaign ran for 19 days prior to writing and was able to attract over 1000 visitors to the newly created website. Most of this traffic was generated by an SEA campaign through Google Ads, which generated 474 clicks with a click-through-rate of 1,9 %. More importantly, the campaign was able to attract one new warm lead in the oil industry. Most SEO campaigns take at least six months to reach a high ranking in the organic search results. Part of this is waiting for the created content to gain traction, while Krofta can still help it out by ensuring that the necessary backlinks are present on their owned websites. Krofta should also continue to monitor the SEA keywords closely. When this is followed through, the campaign will prove to be a successful one.
dc.description.sponsorshipWaterleau
dc.language.isoen
dc.titleThe mobile water treatment rental market: opportunities and threats for a successful market entry, financial strategy to optimise fleet properties, marketing strategy to improve lead generation
dc.source.numberofpages148
vlerick.knowledgedomainSpecial Industries: Energy
vlerick.supervisorSamii, Behzad
dc.identifier.vperid126207
vlerick.companynameWaterleau
vlerick.companysupervisorDe Lathouwer, Jeroen
vlerick.programmeMGM Leuven
vlerick.typebusresprojectIn-Company Project


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