aqualisa quatz case
DESCRIPTION
Aqualisa quatz caseTRANSCRIPT
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How do people
bath??
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Today, lets travel to UK
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100% of the population has bathtubs…
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60% of the population has showers…
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…& one of the leading shower making company is…
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Today’s Agenda
Case OverviewNeeds and Wants
Four P’sAqualisa Quartz
Value Propositi onThe Problem
Issue TreeFinal Recommendati on
Conclusion
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Marketing Concepts Studied
Marketing Mix
Consumer Behaviour
STP/Brand Positioning
Behaviour Segmentaion Breakdown with Issue Tree
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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??
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Problems in UK Shower Market
Fluctuations in
temperature
Low Pressure
Archaic Plumbing
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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).
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Product Price Place / Distribution PromotionShowers with Various categories.Type of Shower :- Electric Shower- Mixer Shower- Power Shower
PremiumStandardMiddle-Low
Trade ShopDistributorShowroomsDIY Outlets
Advertisement (ex. Brochure)Web
4 P Analysis
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Product & Price
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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
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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 ShedsDlY Shed
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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.
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Quartz – the Breakthrough Product
Remote Processor
A single hole
drilling
Efficient & Reliable Water
Pressure
“One Touch” Control
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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
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VALUE
PLUMBERS
Easy to install
More profitable – able to do more installationTake 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 peopleOne touch control with red light indicatorMuch easier to install for DIY sector
Excellent design and aesthetics, which increases ownership pride
Quartz Value Proposition
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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
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The Problem
Quartz Sale have not met expectation
Low awareness
Plumbers technology syndrome
Expensive
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Why sales of quartz is low
People
Unaware
Less Advertisement
Not available in their Market
Aware
Plumber
Reluctance
Electronic
Syndrome
High Charg
es
PerceptionFor
Premium
Market
only
Complicate
d
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
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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
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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
COST
BENEFIT
Cost and Benefit
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Target Consumers Directly
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).
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Target Do-It-Yourselfers
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.
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Target Developers
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.
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Target Trade Shops and Plumbers
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.
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Final Recommendation
Target Trade Shops and Plumbers!
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Rationale
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.
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Target Trade Shops and Plumbers
36%
8%
47%
9%
UK Shower Market (Total Units Sold, 2000)
Do-It-Yourself Sheds ShowroomsTrade Shops Other (Electrical wholesalers)
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Evaluation of Alternatives
CRITERIA
WEIGHT OF CRITERIA
30% 20% 20% 15% 15% 100%
Sales Revenues Potential
Impact on channels
of distributio
n - Relationsh
ip
Total Market share
Product Awarenes
sCosts 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
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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
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Thank You..!
Group 6 – Wikreate
Akshay HiremathNimisha NasaRahul JoshiSaurabh WankhadeSwati Singla