1. Aqualisa Quartzsimply a better shower Lukman Kresno O. 29110394 Yohanes De Deo Tedo 29110399 Anggi Fitrining Tyas 29110400 Ronaldo Bagus Putra 29110404 Wisnumurti Rahardjo 29110412
2. Aqualisa innovate abreakthrough product(Quartz) to the marketbut it was unsuccessfulin the market becauseof Plumber’s ElectronicSyndrome.
3. The U.K. Shower Market Electric Showers •heating elements instantaneously heated the water to the required temperature, eliminating the need for a boiler to store hot water. •convenient for small bathrooms, the electrical components were usually mounted in a bulky white box that was visible in the shower stall. •did nothing to address the poor water flow of many showers in U.K. homes, •sold mostly under a separate brand name, the ‘Gainsborough’ brand.
4. •Valves came in two types : •thermostatic controlled temperature automatically •manual manually find the right temperature•Installing a mixer valve meant excavating the bathroom wall.•Add booster pump to boost water pressure (cost € 350 to € 600)•Core Product: Aquavalve609 (thermostatic); Cost : €155 Price : €675 to €750• Sales: 60,000 units per year; Image : high-quality and reliable Mixer Shower Valves
5. •Combine a thermostatic mixer valve and booster pump•Bulky box on the wall•Core Product: Aquastream (thermostatic); Cost : €175 Price : €670• Sales: 20,000 units per year•Aqualisa’s strongest selling shower in the power shower technology Integral Power Showers
6. 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 plumberValue 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
7. Product & Price
8. Distribution DIY / ValueGainsborough DIY sheds buyers Distributor Showrooms Premium Buyers 609, Quartz Standard / Trade shops Plumbers Value buyers New HomeShower Max Developers Buyers
9. U.K. Market Share Data Chart Title Triton Mira Gainsborough Aqualisa Masco Ideal Standard Heatrae Sadia Bristan Grohe Hansgrohe Others 1%1% 1% 15% 2% 30% 3% 7% 7% 11% 22%
10. Sales Replacement The principle reason for Shower consumer to install a shower is to 10% New penetration replace the old shower into new ones (44% of customers) 15% 44% commercial There are only 6% of consumer6% New Build who has a commercial purpose in 25% installing a shower Second Sgower
11. The Quartz Shower Valve
12. 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
13. Quartz Value Proposition VALUE Easy to install More profitable – able to do more installation PLUMBERS 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
14. Cost and Benefit Individual Developers Plumbers Premium DIY Price Sensitive Don’t like &Standard innovationCO Low brand Change premium Small market Costly toS awareness brand perception convertT Independent of Large market Largest marketB plumber shareE influenceNE Influence plumberF Premium brand Cheaper StrongI recognition influence toT customer
15. PROBLEMHIGH INNOVATION & TECHNOLOGY butLOW IN SALESRawlinson should choose appropriatemarketing strategy to overcome theproblem. The choice are :- Targeting customer directly- Targeting developers- Targeting DIY
18. COMPANY• UK shower manufacture• Have breakthrough in shower technology by producing “The Quartz”• Have strong reputation in UK shower market.• Producing premium product in shower market.
19. Organizational ChartAqualisa using the working divisions/departmentbased. Consist of: Marketing & Sales, Finance,Technical, and Operations.
20. Customer Collaborator Context • In UK, everyone• Individuals • Outlet had a• DIY • Developers bathtub, only 60% had showers.• Developers • Trade shops • It is rare an• Plumbers • Showrooms innovation in shower • Distributors production.
21. UK Market Share Data : Units Sold (2000) Total Unit Sold by Brand Triton Mira Gainsborough Aqualisa Masco Ideal Standard Heatrae Sadia Bristan Grohe Hansgrohe Others 1% 1% 15%2% 1% 30% 3% 7% Triton has the biggest market 7% share (30%). 22% Aqualisa and Gainsborough 11% market share is the 3rd largest (18%). For the Electric Showers product, Aqualisa and Gainsborough has 2nd biggest market share (16.9%) .
22. Product Price Place / Distribution PromotionShowers with Various Premium Trade Shop Advertisementcategories. Standard Distributor (ex. Brochure)Type of Shower : Middle-Low Showrooms Web- Electric Shower DIY Outlets- Mixer Shower- Power Shower
23. Segmenting• UK Niche Market ShowerTargeting• Direct consumer• DIY market• DevelopersPositioning• Leading in shower technology that have top quality shower in premium brand and also give great services
24. Strength Weakness• Strong reputation in the UK • Low sale in Trade shop and• shower market. Showrooms.• High Market share • Expensive brands image• High Quality Product • 10% of Aqualisa is defected.• Easy to install • Lacked the ability to relate to end• High innovation in technology users. SWOT Opportunity Threat• Typically low pressure and • Plumbers loyal to single brand and• fluctuations in temperature of UK distrusted innovation. shower valves. • Other companies were catching up to• High demand of UK market Aqualisa product quality.• Rare real breakthrough in the shower • Dependency of Consumer to the market. plumbers.
25. •Quartz stand for Premium segment with price €850 and €1,080.• Quartz standard and pump provide the biggest margin than other models.
26. Behavioral Analysis
27. Consumers Consumer doesn’t like!•Poor Pressure•Varying Temperature •little understanding of product options•Shower broke down or “went wrong” hard-to-turn valves, leaky seals, and worn-out •Brand awareness was low;showers. Because of that, almost half the U.K.shower market consisted of sales of replacement •Prices to consumers usually lumpshowers. sums and unaware how costs broke down•Consumers were generally uninformed about (labor, material, excavation, etc).showers.
28. Developer• Most developers did not worry about pressure problems because new homes were almost have high-pressure systems.• faced a different set of issues, preferring reliable, nice-looking products that could work in multiple settings.• price-sensitive except of luxury builders• Developers usually had relationships with independent plumbers.• Aqualisa sold to developers under its ShowerMax brand, which was available only through specialist contract outlets.• technology had been redesigned, rebranded, and optimized for developers specific needs.• ShowerMax could deliver a high-pressure shower withAquavalve technology at a significantly lower cost.
30. • The most installation method of mixer shower is by independent plumber which is 54% of all.• While the installation by showroom and developer is 20% each.• The smallest percentage is the commercial installation which is only 6%.
31. Type of Influence InformationalConsumer must know the advantages of Aqualista so theycould directly buy the product or ask the plumber to useAqualista on their wash roomPlumbers must understand the way Aqualista work so theyhave no uncertainty on using Aqualista’s products
32. takes plumbers advice on type and brand Most consumer, selects Mixer consumer Shower by taking plumber’s advice on select type type and brand of shower which is20% and brand 28%. 28% alone 25% 27% plumber select type and brand alone While 20% of consumer are selecting only type of shower – (not the brand), that influenced by the plumber plumber. influences type of shower, not brand
33. Consumer Motivation & Value Needs (Shower) Consumer Wants Plumber Wants(lookes great, delivery good (easy to install, with a preassure, stable guarantee not break down or temperature, easy to requiring service) use, didn’t break down)
34. Latent & Manifest MotiveIt’s look great , easy to use, good pressure, stabletemperature, didn’ t break down Premium Purchase a brand makes SHOWER me more prestiges The plumber suggest me to buy that brand and that type
35. ProPro Pro • Quartz’s superior• Triton Has Proven that it can be value proposition done • Large-volume so possible to channel.• Many Problems reaching the charge a premium plumbers for this product. • Force plumbers to get familiar • The Quartz is so Cons easy to install. with our product • Currently selling • ‘bet the company’ its Gainsborough kind of product in this market • Cost about €3 to €4 million over 2 • Push the product, avoiding Cons years the need for • Time lag before showers • Tough to justify a expensive high-risk, high- reward strategy consumer advertising Cons reach consumers through this route. when company • Developers perceived • Associating results were products to be premium premium brand already healthy brands. with discount channel • Quartz under price was a breakthrough innovation.
36. • The cause of quartz failure is the resistance from plumbers. With the analysis of circumference, they should : - Plumbers shoot the trade shop product presentation (installation, warranty) to the plumber community incentives - Consumers Bring the Brand experience to customer through its marketing activities, so that customer can feel the simplicity of Quartz shower. - Developers make a contract incentives