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Aqualisa
- 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. Amarjeet 27052017
- 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 Amarjeet 27052017
- 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 Amarjeet 27052017
- 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 Amarjeet 27052017 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 Amarjeet 27052017
- 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 Amarjeet 27052017
- 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 Amarjeet 27052017
- 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 Amarjeet 27052017
- 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 Amarjeet 27052017
- 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 Amarjeet 27052017
- 14. Amarjeet 27052017 Positioning Premium shower providing the state of art technology coupled with pleasing aesthetics , providing great experience
- 15. Amarjeet 27052017 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.
- 16. Amarjeet 27052017 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.
- 17. Amarjeet 27052017 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
- 18. Amarjeet 27052017 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 Amarjeet 27052017 Brand Awareness Initiatives