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Aqualisa Quartz


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Aqualisa Quartz by Siren Sungkar Syndicate

Aqualisa Quartz

  1. 1. Aqualisa Quartz simply a better shower Wisnumurti Rahardjo Anggi Fitrining Tyas Lukman Kresno Oktavianto Yohanes De Deo Tedo Ronald Bagus Putra
  3. 3. SUPPORTED BY PINISI RELAXATION Jl. Halmahera no. 2 Bandung 0224240065 Jl. Kenari no. 14 Sukabumi 0266231016
  4. 4. SUPPORTED BY ORANGE BUTTON Jl. Baladewa Asri no. 14 Bandung - Indonesia
  5. 5. Background Aqualisa innovate a breakthrough product (Quartz) to the market but it was unsuccessful in the market because of Plumber’s Electronic Syndrome.
  6. 6. 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.
  7. 7. Mixer Shower Valves •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
  8. 8. •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 Integral Power Showers
  9. 9. PremiumSegmentConsumer: - shopped in showrooms - Granted high performance and service - Style determined selection Do-it-yourselfersSegment: - 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 & apartement dwellers Standardprice 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
  10. 10. Product & Price
  11. 11. Distribution
  12. 12. U.K. Market Share Data 30% 22%11% 7% 7% 3% 2% 1% 1% 1% 15% Chart Title Triton Mira Gainsborough Aqualisa Masco Ideal Standard Heatrae Sadia Bristan Grohe Hansgrohe Others
  13. 13. 44% 25% 6% 15% 10% Sales Replacement Shower New penetration commercial New Build Second Sgower  The principle reason for consumer to install a shower is to replace the old shower into new ones (44% of customers).  There are only 6% of consumer who has a commercial purpose in installing a shower.
  14. 14. The Quartz Shower Valve
  15. 15. 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
  16. 16. VALUE PLUMBERS Easy to install More profitable – able to do more installation Take 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 people One touch control with red light indicator Much easier to install for DIY sector Excellent design and aesthetics, which increases ownership pride Quartz Value Proposition
  17. 17. Individual Developers Plumbers Premium &Standard Diyers Price Sensitive Don’t like innovation Low brand awareness Change premium brand preception Small market Costly to convert Independent of plumber influence Large market Influence plumber Largest market share Premium brand recognition Cheaper Strong influence to customer C O S T B E N E F I T Cost and Benefit
  18. 18. PROBLEM • HIGH INNOVATION & TECHNOLOGY but LOW IN SALES •Rawlinson should choose appropriate marketing strategy to overcome the problem. The choice are : - Targeting customer directly - Targeting developers - Targeting DIY
  20. 20. 5C Company Customer CollaboratorContext Competitor
  21. 21. • 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. COMPANY
  22. 22. Aqualisa using the working divisions/department based. Consist of: Marketing & Sales, Finance, Technical, and Operations. Organizational Chart
  23. 23. Customer • Individuals • DIYers • Developers • Plumbers Collaborator • Outlet • Developers • Trade shops • Showrooms • Distributors Context • In UK, everyone had a bathtub, only 60% had showers. • It is rare an innovation in shower production.
  24. 24. 30% 22%11% 7% 7% 3% 2% 1% 1% 1% 15% 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  Triton has the biggest market share (30%).  Aqualisa and Gainsborough market share is the 3rd largest (18%).  For the Electric Showers product, Aqualisa and Gainsborough has 2nd biggest market share (16.9%) .
  25. 25. Product Price Place / Distribution Promotion Showers with Various categories. Type of Shower : - Electric Shower - Mixer Shower - Power Shower High (premium prices) Standard Middle-Low Trade Shop Distributor Showrooms DIY Outlets Advertisement (Brochure) Web
  26. 26. Segmenting • UK Niche Market Shower Targeting • Direct consumer • DIY market • Developers Positioning • Leading in Shower Technology that have top quality showe, premium brand, and great service
  27. 27. Strength • Strong reputation in the UK • shower market. • High Market share • High Quality Product • Easy to install • High innovation in technology Weakness • Low sale in Trade shop and Showrooms. • Expensive brands image • 10% of Aqualisa is defected. • Lacked the ability to relate to end users. Opportunity • Typically low pressure and • fluctuations in temperature of UK shower valves. • High demand of UK market • Rare real breakthrough in the shower market. Threat • Plumbers loyal to single brand and distrusted innovation. • Other companies were catching up to Aqualisa product quality. • Dependency of Consumer to the plumbers. SWOT
  28. 28. •Quart stand for Premium segment with price €850 and €1,080. • Quart standard and pump provide the biggest margin than other models.
  29. 29. Behavioral Analysis
  30. 30. Consumers Consumer doesn’t like! •Poor Pressure •Varying Temperature •Shower broke down or “went wrong” hard-to-turn valves, leaky seals, and worn-out showers. Because of that, almost half the U.K. shower market consisted of sales of replacement showers. •Consumers were generally uninformed about showers. •little understanding of product options •Brand awareness was low; •Prices to consumers usually lump sums and unaware how costs broke down (labor, material, excavation, etc).
  31. 31. • 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. Developer
  32. 32. Plumbers
  33. 33. • 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%. 54% 20% 20% 6% by indeoendent plumber by developer installation for new home build by showroom commercial installation
  34. 34.  Most consumer, selects Mixer Shower by taking plumber’s advice on type and brand of shower which is 28%.  While 20% of consumer are selecting only type of shower – (not the brand), that influenced by the plumber. 28% 27% 25% 20% takes plumber's advice on type and brand consumer select type and brand alone plumber select type and brand alone plumber influences type of shower, not brand
  35. 35. Type of Influence INFORMATIONAL
  36. 36. Consumer Motivation & Value Needs (Shower) Consumer Wants (lookes great, delivery good preassure, stable temperature, easy to use, didn’t break down) Plumber Wants (easy to install, with a guarantee not break down or requiring service)
  37. 37. Latent & Manifest Motive Purchase a SHOWER Premium brand makes me more prestiges The plumber suggest me to buy that brand and that type It’s look great , easy to use, good pressure, stable temperature, didn’t break down
  38. 38. Cons • ‘bet the company’ kind of product • Cost about € 3 to 4 million over 2 years • tough to justify a high-risk, high- reward strategy when company results were already healthy Pro • Quartz’s superior value proposition so possible to charge a premium for this product. • The Quartz is so easy to install. • Currently selling its Gainsborough in this market • Push the product, avoiding the need for expensive consumer advertising Cons • associating premium brand with discount channel Pro • Large-volume channel. • force plumbers to get familiar with our product Cons • Time lag before showers reach consumers through this route. • Developers perceived products to be premium brands. • Quartz under price was a breakthrough innovation. Pro • Triton Has Proven that it can be done • Many Problems reaching the plumbers
  39. 39. • The cause of quartz failure is the resistance from plumbers. With the analysis of circumference, they should : ‘Targeting Consumers Directly’. - Plumbers  shoot the trade shop  product presentation (installation, warranty) to the plumber community  give some incentives (if they buy in a big mount) - Consumer  Bring the Brand experience to customer through its marketing activities, so that customer can feel the simplicity of Quartz shower. - Developer  make a contract  give some incentives