marketing strategy of aqualisa quartz
TRANSCRIPT
AQUALISA QUARTZ
Introduction• Founded in 1977• Head office in Westerham, Kent• Aqualisa was ranked at #2 in mixing
valves and #3 in the overall UK shower market
• Had 25% net returns on sales• 5% to 10% growth rate
-Strong Reputation in UK-Outstanding Quality Product-Breakthrough Technology(QUARTZ)-Premium brand image- Strong emphasis on R&D
-Expensive product Image-Low brand awareness of Quartz product
- 40% of UK homes don’t have showers installed - Continuous demand on shower products
-Market perceived Aqualisa’s products as being overpriced -Declining in service quality- Competitors catching up in product quality-Eroding in customer amount
SWOT Analysis
AQUALISA
Introduction to UK Shower Market
U.K. Shower market in late 1990s was plagued with problems
Only 60% of U.K. homes had showers whereas 100% of the homes had bathtubs
Archaic plumbing was used most commonly which had a cold water tank on the roof, a separate boiler and cylinder to store hot water
Types of Showers
Electric Showers
• Electrical components mounted in bulky box.
• Introduced under the name ‘Gainsborough’.
• Used cold water.
Mixer Shower valves
• Manual and Thermostatic
• Blended both hot and cold water to set temperature.
• Additional booster pump required to enhance the flow rate.
Integral power showers
• Single compact unit.
• Less reliable than Mixer Shower valves.
• Results in a bulky box on the wall.
Trade Shops
• Stocked for demand
• Aqualisa was available in 40% of trade shops
• Primary Customer- Plumber relationship
Plumblers
• Huge influence on the individual market segment
• Major concern is reliability, performance and ease-of-installation
• Familiar product brand to avoid repeat plumbing
• Highly loyal to a product
• Distrust Innovation
• Installers have to go several years of training
DIY Shed
• Cheaper and easier to retrofit
• Launch an intense Marketing Campaign
• Brand awareness • Promotional low
prices temporarily for the new buyers
• Mass Market• Offered Discounts• Electric showers
were the primary showering
• Gainsborough was available in 40% of them
Showroom
• High End Product• Multiple brands.• Primary
customers were plumbers.
• Available in 40% of the trade shops.
• No inventory held• Offered
installation services by subcontracting
• Aqualisa brand was sold in 25% of showroom
Channels of Distribution
Why People Disliked Showers
Poor Pressure
Varying Temperature
Shower Brake Down
Low Brand Awareness
Unattractive Design
Poor Ease of Installation
Quartz – A Breakthrough in Shower Technology
Remote Processor
A single hole drilling
Efficient & Reliable Water Pressure
“One Touch” Control
Electronically controlled valve
Aqualisa Quartz
Ease of use
Easy to install
Good water pressure
Stable temperature
Great looks
Value Proposition to Consumers
-Safer & Easier for users-Better water pressure and temperature control-One touch control with light indicator-High quality product: strong engineering- Easy to install- Day and half installation time saving per install
-Unfamiliar product to plumbers-Poor distribution channel- Stigma of past failures with electronic showers- Sales force focused on servicing existing account
- Current shower systems are bulky- Bad water pressure in showers- Fluctuating temperature in current shower model- Much manual adjustment required
- Competition catching up on quality and technology- Quartz was perceived too expensive - Cannibalization of existing shower product models
SWOT AnalysisQUARTZ
Product Map of Quartz
Potential Product
Augmented Product
Expected Product
Basic Product
Core Product
• Body Jet
• One Touch Control• Automatic temperature control• Slave remote control
• Easy Installation• Efficient & Reliable Water Pressure• No temperature fluctuations
• Electronic Shower
• Shower
Why is Quartz not selling…
High Price
Plumbers wary of innovation
No aggressive marketing due to fear of cannibalization
Concentrated more on servicing old customers rather than developing new ones
Trade shops did not have the time to learn and explain the features to customers
Poor distribution channel
PROS AND CONS OF TARGETING DIFFERENT DISTRIBUTION CHANNELS
Pros• Know what to expect• Easier to get to• Know what it will cost• Easier to convince
because less educated market
• If convinced, will request that plumbers install
TARGETING CONSUMERS DIRECTLY
Cons• Not getting directly to
the problem• Lifetime value is much
lower; one-time to two-time purchase
• High risk/High reward when the company is already healthy
Pros• Easy to install• Value much higher than
current electric showers that dominated the market
• Possibly charge a premium
• Differentiated from previous electric showers
TARGETING DO-IT-YOURSELF SHEDS
Cons• Get stuck in that market• Small market for type of
shower• Low profitability – Low
total sales
Pros• Large-volume channel• Force plumbers to get
familiar with product• Dependable
TARGETING DEVELOPERS
Cons• Lead time – Long lag
before sales• Tough sell to developers
– Don’t usually buy premium products
• Don’t want to discount price for developers
• Higher cost of failure
TARGETING PLUMBERS
Pros• Most influence in the
market• More impactful word-of-
mouth• Lifetime potential for
sales
Cons• Difficult and expensive
to market to• Already biased against
electric showers• Resistant to change
SolutionOUR SUGGESTION……
TARGET PLUMBERS!!!
Reasons:
Primary customers of Trade Shops that have the most sales volume (8,80,000 units in 2000)
Plumbers also work for developers, showrooms, contractors and direct customers
Plumbers word of mouth will help in increasing sales as 73% of the sales are based on the choice of the plumber
Other Suggestions for Improving Sales of Quartz
Arrange a conference for plumbers and developers
Free products to try
Provide unconditional guarantee to plumbers and customers
Include plumbers in the workforce
Thank You
Presented By:GROUP 3