2. Brand Positioning ‐ Premium shower brand
CASE STUDY
Aqualisa launched the most significant shower innovation in recent British history: the Quartz
shower. The shower provides significant improvements in terms of quality, cost, and ease of
installation. In product testing, the Quartz shower received rave reviews from both consumers
and plumbers alike. However, early sales of the Quartz have been disappointing. Now, the
company is faced with some key issues about whether to change the channel strategy,
promotional strategy, and the overall positioning of the product (niche or mainstream product) in
the context of his existing product line.
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3. Need – Gap Analysis
Shower Market in late 1990s in U.K. faced following problems
• Bathtub was more in use
• Shower penetration was 60% only
• Archaic Plumbing
• Plumbing was Gravity Fed
Two Major Concern
1- Poor/Low Pressure
2- Fluctuation in Pressure meant Fluctuation in Temperature
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4. Company's Strengths
* Strong reputation in the shower market
* Highly profitable company
* High quality products
* Excellent service
* Strategic use of Gainsborough brand to penetrate low cost market
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5. Company's Weaknesses
* Only available in 40% of trade shops, 25% of the total showrooms, and 70% of total outlets
* 10% defected products
* Competition is catching up in product quality
* Considered as an expensive brand
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ELECTRIC SHOWERS MIXER SHOWERS INTEGRAL POWER SHOWERS
Sold under the brand name of
Gainsborough 2 types: Manual & Therostatic
Aquastream Thermostatic was the
primary product
Does not require hot water
supply
Aquavalvle 609 was the
company's core product.
Single compact unit combines
thermostat & booster pump
Electrical components mounted
on bulky box
Blended both hot & cold water to
set temprature Bulky box on the wall
Additional booster pump
required to manage pressure
Insatallation requires excavation
Poor water flow Less reliable then mixer
6. Different sales channel & Product segment
Sales Channels Electric Showers Mixer Showers Power Showers
Do-It- Yourself Sheds 555000 80000 20000
Showrooms 55000 70000 20000
Trade Shops 330000 400000 110000
Other ( Electrical Wholesalers) 165000
Total Units 1105000 550000 150000
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7. Triton Mira Gainsborough Aqualisa Masco Ideal Standard Heatre Sadia Bristan Grohe Hansgrohe Others
Total 545500 390000 203500 122000 120000 60000 40000 20000 20000 15000 264000
Power Showers 25500 35000 3000 22000 35000 0 0 0 0 0 29500
Mixer Showers 41000 200000 20500 94000 50000 60000 0 20000 20000 15000 29500
Electric Showers 479000 155000 180000 6000 35000 0 40000 0 0 0 205000
0
200000
400000
600000
800000
1000000
1200000
UK 2000 MS Brands & Segment Split
Electric Showers Mixer Showers Power Showers Total
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8. Why is the Quartz shower not selling?
• Installers are skeptical to new innovation
• Past history of Shower Innovation Failure
• NO Targeted Communication for Consumer & Installer
• No Installer Awareness
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9. Is Quartz a niche product or a mainstream product?
• Quartz is innovative solution to following problems in UK Market of Showers and it has all
the reasons to become mainstream product.
• Low Pressure
• Temperature fluctuation
• Frequent breakdowns
• Maintenance issues
• Lack of skilled manpower
• Time Consuming Installation
• Civil Job intensive installation
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10. Multiple brand strategy?
Aqualisa, Gainsborough and Showermax
current multiple brand strategy is meant to address different target audience & different sales
channel
Gainsborough -
It’s a brand of electric shower focusing on DIY & replacement market
Aqualisa –
It’s brand for premium market which includes independent plumber & showrooms
Showermax –
It’s a cost effective utility brand for Developers
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13. • Independent Plumber is the largest Target Audience for Aqualisa Quartz to become MainStream PRODUCT
• Showroom will be Easiest Market driven by Choice & Selection Assistance by consultant
• Developers are driven by cost benefit hence this market needs a different approach
54%
20%
20%
6%
Installation Type
Independent Plumber Developer Showroom Commercial
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Channel Strategy
• Short term
Showrooms to capture premium value , to recover the R&D cost
• Long term
Trade shops as the product will be replicated & the plumbers will be already aware of the ALQ, there will be increase in
demand from value & standard customer segment.
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Target segment
• Short term
Luxury Developers- labor cost reduction of installation job , improved aesthetics of premium property
Premium Customers- Replacement customers & New Shower users due to ease & experience of use
• Long term
Standard & Value Customer- its expected that other brands will replicated Quartz , so its important to rope
in the standard and value segment ; accordingly channel strategy will be remoulded.
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Value Proposition for Customer
• Efficient & reliable water temperature
• Increases ownership pride by
excellent design
• Easy to install (DIY Customers)
• Safety of use
• Ease of Controlling
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Value Proposition for Plumbers
• Easy to install
• More profitable
• Able to do more installations
• Takes half a day to install even apprentice can install
• Breakdown Proof
19. Free Trials to Master Installers
New Plumber Installation Training
Limited Period Launch Discount to Master Plumbers/Independent
Plumbers
Special Display units on Showrooms
Sampling among Premium Developers for Trial
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Brand Awareness Initiatives
