5. …& one of the leading shower making
company is…
6.
7.
8. 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??
10. Consumers
Consumer did not like!
•Poor Pressure
•Little understanding
options
of
product
•Varying Temperature
•Shower broke down or “went wrong”
•Hard-to-turn valves, leaky seals, and wornout showers.
( Hence, almost half the U.K. shower market
consisted of sales of replacement showers)
•Consumers were generally uninformed
about showers.
•Low Brand awareness
•Lump sum prices for consumers
•Unaware about cost break down
(labor, material, excavation, etc).
11. Product
Showers with Various
categories.
Type of Shower :
- Electric Shower
- Mixer Shower
- Power Shower
Price
Premium
Standard
Middle-Low
Place / Distribution
Trade Shop
Distributor
Showrooms
DIY Outlets
Promotion
Advertisement
(ex. Brochure)
Web
13. Pricing Segment
Premium Segment Consumer :
- Shopped in showrooms
- Granted high performance and service
- Style determined selection
Standard price Segment :
- Emphasize performance and service
- Product selection rely on plumber
Value Segment :
- Concern with convenience and price
- Avoid solutions that required any excavation
- Product selection rely on plumber
- Concerned with convenience and price
-
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
14. Channels of Distribution
Plumbers
• High loyalty to product Plumbers
• 73% sales came from plumbers
• Advice a brand for consumer
Showroom
•
•
•
•
Trade Shop
• Carried products across all available brands
• Their primary customer was the plumber
• The Aqualisa brand was available in 40% of trade shops
DlY Shed
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.
• Offered discount, mass market, do-it-yourself products DIY
• Cheaper and easier to retrofit
• The Gainsborough brand was available in 70% of DIY Sheds
15.
16. 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.
17. Quartz – the Breakthrough Product
Remote
Processor
Efficient &
Reliable
Water
Pressure
A single
hole
drilling
“One
Touch”
Control
18. The are 2 versions:
The Quartz Standard Shower
The Quartz Pumped Shower
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
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
19. Quartz Value Proposition
VALUE
Easy to install
PLUMBERS
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
Efficient and reliable water pressure and temperature
Safe to use for kids and elder people
CONSUMERS
One touch control with red light indicator
Much easier to install for DIY sector
Excellent design and aesthetics, which increases
ownership pride
20. 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
21. The Problem
Quartz Sale have not met
expectation
Low awareness
Plumbers technology
syndrome
Expensive
22. Why sales of
quartz is low
Product
People
Unaware
Less
Advertisement
Not available in
their Market
Aware
Plumber
Reluctance
Pricing
Perception
Electronic
Syndrome
For Premium
Market only
High Charges
Major Use
Highly Priced
Replacement
Lack of Internal
Support
Reveals
weakness in
their own
products
Complicated
Durability
Not
withstanding
Competitors
Poor trust in the
product
The Issue Tree
23. 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
Target Trade shops
and Plumbers
• This alternative
could conceivably
be a large volume
channel, because
of developers on
board, they
would sell a lot of
showers
• Plumbers are the
major seller and
influencer in the
Shower product
Sales .
• Save the
advertisement
cost
25. 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).
26. 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.
27. 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.
28. 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.
29.
30. 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.
31. UK Shower Market
Do-It-Yourself Sheds
Showrooms
(Total Units Sold, 2000)
Trade Shops
Other (Electrical wholesalers)
9%
36%
47%
8%
32. CRITERIA
WEIGHT OF CRITERIA
Weighted Average
100%
Costs
15%
Product Awareness
15%
Total Market share
20%
Impact on channels of
distribution Relationship
20%
Sales Revenues Potential
30%
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
ALTERNATIVES
33. 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
34. Thank You..!
Group 6 – Wikreate
Akshay Hiremath
Nimisha Nasa
Rahul Joshi
Saurabh Wankhade
Swati Singla
Hinweis der Redaktion
----- Meeting Notes (12-04-20 18:18) -----Our final recommendation to you is to….Over the next 20 minutes we will demonstrate to you that this is the direction to go in.