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aqualisa quartz

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aqualisa quartz

  1. 1. How do people bath??
  2. 2. Today, lets travel to UK
  3. 3. 100% of the population has bathtubs…
  4. 4. 60% of the population has showers…
  5. 5. …& one of the leading shower making company is…
  6. 6. Case Overview • Aqualisa is a UK shower manufacturer: a strong reputation, a premium brand & great service. • Aqualisa has invested 5.8 million to develop a breakthrough product (May 2001), the Quartz shower that positions itself superiorly in terms of quality, technology, design and ease of installation. • Marketing strategy to generate sales momentum for Aqualisa Quartz??
  7. 7. Problems in UK Shower Market Fluctuations in temperature Low Pressure Archaic Plumbing
  8. 8. Consumers Consumer did not like! •Poor Pressure •Varying Temperature •Shower broke down or “went wrong” •Hard-to-turn valves, leaky seals, and worn- out showers. ( Hence, almost half the U.K. shower market consisted of sales of replacement showers) •Consumers were generally uninformed about showers. •Little understanding of product options •Low Brand awareness •Lump sum prices for consumers •Unaware about cost break down (labor, material, excavation, etc).
  9. 9. Product Price Place / Distribution Promotion Showers with Various categories. Type of Shower : - Electric Shower - Mixer Shower - Power Shower Premium Standard Middle-Low Trade Shop Distributor Showrooms DIY Outlets Advertisement (ex. Brochure) Web
  10. 10. Product & Price
  11. 11. Premium Segment Consumer : - Shopped in showrooms - Granted high performance and service - Style determined selection Do-it-yourselfers Segment : - Shopped at large retail outlets - Interested in inexpensive models that were easy to install, even though bulky and unattractive - Overwhelming choice : Electric showers - Popular among landlords & apartment dwellers Standard price Segment : - Emphasize performance and service - Product selection rely on plumber Pricing Segment Value Segment : - Concern with convenience and price - Avoid solutions that required any excavation - Product selection rely on plumber - Concerned with convenience and price
  12. 12. Channels of Distribution • High loyalty to product Plumbers • 73% sales came from plumbers • Advice a brand for consumer Plumbers • Preferred to carry high-end product lines and brands • Various shower and bath options • Offered installation services by subcontracting • The Aqualisa brand was sold in about 25% of them. Showroom • Carried products across all available brands • Their primary customer was the plumber • The Aqualisa brand was available in 40% of trade shops Trade Shop • Offered discount, mass market, do-it-yourself products DIY • Cheaper and easier to retrofit • The Gainsborough brand was available in 70% of DIY Sheds DlY Shed
  13. 13. Plumbers •Had high technical expertise. •Strong influence on consumers. •Consumers often had to wait six months due to shortage •Charge about € 40 to € 80 per hour. •Plumber’s Electronic Syndrome: Loyal to single brand Distrusted innovation → cause Quartz failure in the market.
  14. 14. Quartz – the Breakthrough Product Remote Processor A single hole drilling Efficient & Reliable Water Pressure “One Touch” Control
  15. 15. The are 2 versions:  The Quartz Standard Shower  The Quartz Pumped Shower With Quartz technology: – Installation time of a half-day – Plumbers were finding that the install was so straightforward – The Quartz shower provided efficient and reliable water pressure and temperature – “one touch” control – the temperature control is automatic To install the Quartz shower: – the plumber had to identify a physical space to accommodate the remote processor – The processor contained the thermostatic mixing valve and pump – The device could be mounted horizontally, vertically, or on its side, depending on space constraints
  16. 16. VALUE PLUMBERS Easy to install More profitable – able to do more installation Take 0.5 day to install which is only 25% of previous times Even apprentice can do the installation CONSUMERS Efficient and reliable water pressure and temperature Safe to use for kids and elder people One touch control with red light indicator Much easier to install for DIY sector Excellent design and aesthetics, which increases ownership pride Quartz Value Proposition
  17. 17. Initial Promotion • Curtain raisers at major shows like Bathroom Expo: awarded top prize! • Demonstrations & Press Events • Highly appreciated by the press on its cleverness and elegant design • Featured on the covers of trade journals
  18. 18. The Problem Quartz Sale have not met expectation Low awareness Plumbers technology syndrome Expensive
  19. 19. Why sales of quartz is low People Unaware Less Advertisement Not available in their Market Aware Plumber Reluctance Electronic Syndrome High Charges Perception For Premium Market only Complicated Durability Product Pricing Highly Priced Not withstanding Competitors Major Use Replacement Lack of Internal Support Reveals weakness in their own products Poor trust in the product The Issue Tree
  20. 20. Marketing Strategy Targeting Customer directly • Target customers with this product and try to build a consumer brand like “Triton. Targeting DIY • Try to explore deeply because they were primarily interested in inexpensive models that were easy to install, even though the products were unattractive Targeting Developers • This alternative could conceivably be a large volume channel, because of developers on board, they would sell a lot of showers Target Trade shops and Plumbers • Plumbers are the major seller and influencer in the Shower product Sales . • Save the advertisement cost
  21. 21. Individual Developers Plumbers Premium &Standard DIY Price Sensitive Don’t like innovation Low brand awareness Change premium brand perception Small market Costly to convert Independent of plumber influence Large market Influence plumber Largest market share Premium brand recognition Cheaper Strong influence to customer C O S T B E N E F I T Cost and Benefit
  22. 22. Pros • Target consumers directly, essentially a “pull” strategy, and build a consumer brand. • Will be able to better compete against Triton, the market leader. Cons • A costly strategy for Aqualisa. • Must be consistent to be effective (out of sight, out of mind).
  23. 23. Pros • Gainsborough already successful in this category and Aqualisa could take advantage of its channels of distributions. • DIY may be willing to pay a premium because of its ease of installation. Cons • Expensive consumer advertising. • Must be consistent to be effective (out of sight, out of mind). • Potential cannibalization.
  24. 24. Pros • Could sell in large volume. • Dealing with developers could simplify sales and make it less costly for Aqualisa. • Will force plumbers to familiarize themselves with the product. Cons • It could take time for the product to get to consumers. • Could be a tough sell due to premium price. • Only represents 15% of the market.
  25. 25. Pros • Plumbers have direct contact with final consumer. • 54% of mixer showers installations are done by plumbers, and trade shops represent 46.7% of the UK shower market • Plumbers have big influence on decision making process. Cons • Plumbers distrust innovation. • Plumbers may be difficult to sway and could take time to change their perception. • Trade shops carry other brands.
  26. 26.  Quartz sales are expected to reach €184,500,000 (most likely scenario), which is 4 times Aqualisa’s current sales.  Plumbers will become interested because they can become 4 times more productive and 2 times more profitable.  Consumers will become interested because they can get a better product for their money: a premium product with more benefits for less, and will experience less discomfort.  Aqualisa will develop and strengthen its relationship within the distribution channels and establish long-term bonds.  Product awareness and knowledge of its benefits will increase.
  27. 27. 36% 8% 47% 9% UK Shower Market (Total Units Sold, 2000) Do-It-Yourself Sheds Showrooms Trade Shops Other (Electrical wholesalers)
  28. 28. CRITERIA WEIGHT OF CRITERIA 30% 20% 20% 15% 15% 100% Sales Revenues Potential Impact on channels of distribution - Relationship Total Market share Product Awareness Costs Weighted Average ALTERNATIVES Target Trade Shops and Plumbers 8 9 7 8 3 7.25 Target DIY 6 3 5 7 3 4.90 Target Consumers Directly 6 3 5 7 2 4.75 Target Developers 3 4 2 4 6 3.60
  29. 29. Conclusion •Create an intensive Marketing communicating campaign to target market (consumer) & target influencer (plumbers) • Focus in premium market shower to increase their sales in Quartz product • Enhance market research to find what customer wants and needs of shower products really are
  30. 30. Thank You..! Group 6 – Wikreate Akshay Hiremath Nimisha Nasa Rahul Joshi Saurabh Wankhade Swati Singla

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