aqualisa presentation
TRANSCRIPT
Aqualisa QuartzGroup No. 1
Agenda
1) Situational Analysis
2) Problem Statement
3) Strategic Options
4) Recommendations
2
Situation Analysis5 C’s Analysis
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Company
• High reputation (Top Quality & Great Service)• Had a Premium Brand Image (in minds of
Plumbers/ Developers)• Ranked #3 in overall UK shower market & #2
in mixing valves• Launched Quartz - 1st Significant Product
Innovation in years
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Channels
• DMU- Plumbers • Aqualisa in 40% of the shops• Staff want reliable products over technical advice• Responsible for 47% Sales
Tradeshops
• Premium Channel – Bathroom Solutions• DMU- Consumers in Consultation with Showroom Staff• Aqualisa in 25% of the showrooms• Responsible for 8% Sales
Showrooms
• Discount Channel• DMU- Consumers • Aqualisa present through Gainsborough (70% of the sheds)• Responsible for 36% Sales
DIY Sheds
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Customers
Consumers
• Low pressure, Temperature fluctuations & Shower breakdown• Low brand awareness• Standard & Value followed Plumbers recommendations• DIY Segment shopped in DIY Sheds; inexpensive products
Developers
• Not Worried - Pressure problems ; • Aesthetic Appeal - Reliable, Stylish products• Price sensitive; except for Luxury Builders • Relationship -independent plumbers• Separate Branding (ShowerMax) – Lower cost & Optimized
Plumbers
•High switching costs•Highly influential; Primary customer of trade shops•Scarcity of Plumbers•Innovation skeptics
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Competition
•Triton •Highest market share – 30%•Consumer Brand•Mainly focused in Electric Showers (88% of sales)
•Mira•2nd Highest Market•Mainly focused in Mixer Showers (51% of sales)•#1 in mixer shower: the main target
market for Aqualisa
Triton30%
Mira22%
Gainsborough11%
Aqualisa7%
Masco7%
Ideal Standard3%
Others20%
UK Market Share
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Context• In UK, almost everyone had a bathtub, only 60% had showers
•Archaic Plumbing
•2 Problems-• Low Pressure• Fluctuations in Temperatures
• Innovation is rare in shower production
•Product Segments competed in•Electric Shower Valve (61%)
•Mixer Shower Valve (31%)
•Power Shower Valve (8%)8
Aqualisa Product PortfolioBrands Segment Type of shower Retail Price
(€)Margin
(€)
Gainsborough Value Electric 95
Aquavalve Value Mixer 390 130Aquastream Manual
Value Power 480 110
Gainsborough Standard Electric 165
Aquavalve 609 Standard Mixer 715 225Aquatsream Thermostatic
Standard Power 670 175
Aquaforce 1.0/1.5 Bar
Standard Booster Pump 445 105
Aquaforce 2.0/3.0 Bar
Premium Booster Pump 595 305
Aquatsyle Premium Electric 230 60Quartz Standard Premium Innovation 850 275Quartz Pumped Premium Innovation 1080 345
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Customer Insights
End Consumer
Great looks
Good pressure delivery at stable temperatures
Easy to use
Breakdown proof
Plumber
Easy to install
Breakdown proof
No servicing requirements
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Pres
sure
Co
ntro
l
Tem
pera
ture
flu
ctua
tion
cont
rol
Safe
ty
Ease
of
Mai
nten
ance
Ease
of
Inst
alla
tion
Low
Average
High
Strategy Canvas: Quartz Vs Current Shower Valves
Nee
d of
ex
cava
tion
Pric
e
Ease
of U
se
Aes
thet
ics
Tem
pera
tur
e m
eter
Current Shower Valves
Quartz
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SWOT
Weaknessa. Low sales of Quartzb. Service Standards
going downc. 10% of product went wrong (Not improving )
Opportunitya. Higher growth prospects (40%
household do not have showers)
Threatsa. Customer
Perception of being Over Priced
b. Competitors catching up
Strengtha. Well known in UK
b. Top Quality Showers
c. Premium Brande. Great Service
f. Superior technology (Quartz)
Internal analysis
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Problem Statement
Lack of brand awareness among the customers (plumbers and end consumers).
• This has resulted in non materialization of the sales
• Showroom channel accounts for only 20%.
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Value Generation
Cost of Aqua valve 609 € 715
Cost of Aqua force pump € 445 (average)
2 days work expense € 800 (assumed)
Total cost € 1960
Aquavalve 609
Cost of Quartz € 1080
Cost of Aqua force pump -
Half days work expense € 200 (assumed)
Total cost € 1280
Quartz• Easy to use, • Stylish, • Overall saving
of €680.
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Existing Marketing Strategy
Targeting Consumers
Directly
• Pros:• Can build consumer brand
• Cons:• High advertising budget (€3-4m over
2yrs)
Targeting DIY
• Pros:• Easy to install
• Cons:• Risk of losing premium brand tag
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Existing Marketing Strategy
Targeting Developers
• Pros:• Increase in customer volume• Will force plumbers to get familiar with
Quartz• Cons:• Reluctant to buy, as Aqualisa products
are perceived as a high priced products
Targeting Plumbers
• Pros:• Plumbers Influences 20% of decisions• 28% customer takes advice• 25% selects type and brand
• Cons:• Reluctant to use electronic showers 16
Recommendations
• To follow differentiation strategy with a focus on short term and long term
• Short term:– Educate plumbers: • Identify and educate opinion leaders
– Showrooms: • Quartz will appeal to customers who requires
high end product
– Developers: • Quartz will help to high end customers
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• Long term:– Plumbers:• Develop the plumber community
– Invest in large scale consumer campaign• To build the brand.
Recommendations
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Questions
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