MBA Marketing_Aqualisa Case Analysis

1. Group 1
Arun Das Roy MP19006
Goutam Ghosh MP19015
Kshitish Kr Jena MP19016
Roop Sengupta MP19026
Simply A Better
Shower…

2.  U.K. shower market is a matured market and can be roughly estimated to be around € 400 million market
 Showers in U.K. were plagued with problems. Only about 60 percent of U.K. homes had showers
 Archaic plumbing (mostly gravity fed) was common in many homes leading to low water pressures
 Majority of the market revenues come from Electric showers followed by mixer and power showers
 More than 70% of the shower selection is influenced by the plumbers
 Most of the shower companies in UK have low brand awareness except Triton
‘‘UK Shower Market“ Environment...

3. 5C Framework Analysis…
• Good Brand Image in UK shower market.
• Breakthrough innovation in shower manufacturing-
Quartz
• Holds 3rd place in the market in terms of units sold.
• Plumbers
• Showrooms
• Developers
• Individuals
• DIY
• Developers
• Trade shops
• Showrooms
• distributors
• Major competitors -- Triton and Mira
• Aqualisa and Gainsborough market share- 3rd largest
• In mixer shower, company holds 1st place
• For electric shower company has 2nd largest market
share.
• In UK, everyone had a bathtub, only
60% had showers
• Shower Market - mainly driven by
plumbers
• Electronic showers were not
accepted very well. Reliability?
Company
Customer
CompetitorCollaborator
Context

4. Market Ranking Electric Showers Market Share Mixer Showers Market Share Power Showers Market Share
1 Triton 44% Mira 36% Mira & Masco 23% & 23%
2 Aqualisa 17% Aqualisa 21% Triton 17%
3 Mira 14% Ideal Standard 11% Aqualisa 16.70%
4 Heatrae Sadia 4% Masco 9% -
Competition and Components of 5C Framework...
Company
• Aqualisa is the third largest company in the UK shower market by sales volumes and second in mixer showers.
• It has a good product mix with product offerings in all the segments and across all the channels in UK.
• Aqualisa has a revenue of around € 68 million with a base profit of around 25%
• It has a reputation for providing good quality and service
Context
• Real breakthroughs are rare in the shower market. Innovations are mostly cosmetic
• Most of the manufacturers only recycle their product line and relaunch their main products every four or five years
• Plumbers distrust innovation after the electronics flopped terribly in the ‘80s
• Only 60% of UK population used Shower rest are used bath tub.
Competitio
n
Componentsof5CFramework

5. Channels Characterstics Aqualisa Presence
Tradeshops
1. Carried products across all available brands
2. Primary customer was the plumber
3. Tended to stock whatever there was demand for
4. Didn’t have the time to learn all the features and benefits of the
items they offer
5. Focussed only on the right stock of products that are in demand
Aqualisa brand was available in 40%
of trade shops
Showrooms
1. Distributors supplied showrooms
2. Tended to be more high-end
3. Led consumers through the process of selecting and designing a
bathroom
4. Allowed the consumer a chance to view the product in a
pleasant environment
5. Preferred to carry high-end product lines and brands
6. Offered installation services by subcontracting with contractors
and independent plumbers
the Aqualisa brand was sold in
about 25% of them
DIY sheds
1. offered discount
2. mass-market, do-it-yourself products
3. Electric showers led sales
Gainsborough brand was available
in 70% of the approximately 3,000
DIY outlets in the U.K.
Collaborator:-

6. Segment Characteristics Aqualisa Offerings
Premium
1. Shopped in Showrooms
2. Assumed high performance and service
3. Style determined the selection
Aquastyle
Quartz Standard
Quartz Pumped
Aquaforce 2.0/3.0 Bar
Standard 1. Emphasized on performance and sevice
2. Relied on independent plumber for shower selection
Aquavalve 609
Aquastream Thermostatic
Aquaforce 1.0/1.5 Bar
Value
1. Looked for convenience of installation
2. low price criteria
3. Avoided solutions requiring excavation
4. Tended to rely on independent plumber for shower selection
Aquavalve Value
Aquastream Manual
DIY customers
1. Shopped at large retail outlets
2. Interested in easy to install and inexpensive models
3. Preferred electric showers Gainsborough
Developers
1. Preffered reliable, nice looking products
2. Preferred products with capability to work in multiple settings
3. Price sensitive, not interested in premium valves
4. Chose the products themselves ShowerMax
Customer Segmentation
Componentsof5C
Framework

7. Quartz Shower value proposition for Consumers
Retail price 1,080.00 €
Plumbing cost for four hours @ 60/hr. 240.00 €
Total Cost 1,320.00 €
Aquavalve 609 value proposition for Consumers
Aquavalve 609 Retail Price 715.00 €
Booster Pump Retail price 445.00 €
Plumbing cost for two days @ 60/hr.
(Total 16 hrs.) 960.00 €
Total cost 2,120.00 €
Cost Benefit 800.00 €
Value Proposition for Consumers
Benefits to Consumers
1. Excavation not required.
2. Feel the power of innovation by Remote control.
3. Better flow and pressure in terms of Liter per
minute.
4. Safe and easy for Children and old age people.
5. Without booster pump Aquavalve was still costlier.
6. Bathing Luxury.

8. Aquavalve 609 with
pump
Quartz shower
Time required for
installation(UOM-Days)
2 0.5
Installation Per year(UOM-
Number)
50 200
Number of working days 100 100
Number of working hours 800 800
Total Earning @60/Hr 48,000.00 € 48,000.00 €
Earnings by markup(Let
Plumber gets 10% margin in
MRP) 5,800.00 € 21,600.00 €
Total Earnings 53,800.00 € 69,600.00 €
Benefit to Plumbers:
1. Plumbers have the biggest potential because
who influence the biggest group of people. Plumbers
can do more installation with less time.
2. Plumbers not believe on innovation, so educate and give
stress about the installation timing.
3. Send a leaflet with an introductory offer of 10%
markup on MRP to all plumbers.
4. Company should return the defective product within
one year of installation help In building trust among the
plumbers.
5. In UK master plumbers are costlier they can install the
product by trainees or apprentice. so, we can educate
them about their free time for other job.
Value proposition for Plumbers
Consumer Influenced
by own selection:- 27%
Consumer influenced by
Plumber Selection:- 73%

9. 1.Pricing of Quartz Shower was on the higher side: -
Being a premium product, the Quartz shower was priced between 850 Euros to 1080 Euros, which was very high compared to other brands of Aqualisa.
2. No Discount at Launch Leading to less Interest:-
At the launch company don’t give any discount. So the Do –IT-Yourself discount channel having less interest in the product.
3. Lack of Advertisements of the true capabilities of the product:-
The Quartz shower had better features which could be exemplified after being compared to any other existing brand.
4. Focus of the sales groups- (Service or new Customers???):-
The sales force of Aqualisa concentrated more on servicing the existing customers rather than developing new ones.
5. Unreasonable preset mentality and preferences of Plumbers in UK:-
The plumbers are usually wary of innovations and perhaps did not favor the idea of installing an electronically devised shower.
6. True Features/Capabilities did not reach Customers:-
The consumers are probably unaware of the feature of quartz shower compare to other brands.
7. Market Penetration?? 500/2000 Showrooms:-
The Aqualisa brand was sold only in about 500 showrooms out of the 2,000 showrooms in U.K. This reflects poor market penetration as showrooms are the
place where the premium segment usually shops.
Why is the product not Selling???