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AQUALISA QUARTZ
• Founded in 1977
• Head office in Westerham, Kent
• Aqualisa was ranked at #2 in mixing
valves and #3 in the overall UK
shower market
• Had 25% net returns on sales
• 5% to 10% growth rate
-Strong Reputation in UK
-Outstanding Quality Product
-Breakthrough Technology(QUARTZ)
-Premium brand image
- Strong emphasis on R&D
-Expensive product Image
-Low brand awareness of Quartz
product
- 40% of UK homes don’t have showers
installed
- Continuous demand on shower
products
-Market perceived Aqualisa’s
products as being overpriced
-Declining in service quality
- Competitors catching up in product
quality
-Eroding in customer amount
SWOT Analysis
AQUALISA
Introduction to UK Shower Market
 U.K. Shower market in late 1990s was plagued with
problems
 Only 60% of U.K. homes had showers whereas 100%
of the homes had bathtubs
 Archaic plumbing was used most commonly which
had a cold water tank on the roof, a separate boiler
and cylinder to store hot water
Electric Showers
• Electrical
components
mounted in bulky
box.
• Introduced under
the name
‘Gainsborough’.
• Used cold water.
Mixer Shower
valves
• Manual and
Thermostatic
• Blended both hot
and cold water to
set temperature.
• Additional
booster pump
required to
enhance the flow
rate.
Integral power
showers
• Single compact
unit.
• Less reliable than
Mixer Shower
valves.
• Results in a bulky
box on the wall.
Trade Shops
• Stocked for
demand
• Aqualisa was
available in 40% of
trade shops
• Primary
Customer-
Plumber
relationship
Plumblers
• Huge influence on
the individual
market segment
• Major concern is
reliability,
performance and
ease-of-
installation
• Familiar product
brand to avoid
repeat plumbing
• Highly loyal to a
product
• Distrust
Innovation
• Installers have to
go several years of
training
DIY Shed
• Cheaper and
easier to retrofit
• Launch an intense
Marketing
Campaign
• Brand awareness
• Promotional low
prices temporarily
for the new
buyers
• Mass Market
• Offered Discounts
• Electric showers
were the primary
showering
• Gainsborough was
available in 40%
of them
Showroom
• High End Product
• Multiple brands.
• Primary
customers were
plumbers.
• Available in 40%
of the trade
shops.
• No inventory held
• Offered
installation
services by
subcontracting
• Aqualisa brand
was sold in 25% of
showroom
Channels of Distribution
Why People Disliked Showers
Poor
Pressure
Varying
Temperature
Shower
Brake Down
Low Brand
Awareness
Unattractive
Design
Poor Ease of
Installation
Quartz – A Breakthrough in Shower Technology
Remote Processor
A single hole drilling
Efficient & Reliable Water
Pressure
“One Touch” Control
Electronically controlled valve
Aqualisa
Quartz
Ease of use
Easy to
install
Good water
pressure
Stable
temperature
Great looks
-Safer & Easier for users
-Better water pressure and temperature
control
-One touch control with light indicator
-High quality product: strong
engineering
- Easy to install
- Day and half installation time saving
per install
-Unfamiliar product to plumbers
-Poor distribution channel
- Stigma of past failures with electronic
showers
- Sales force focused on servicing
existing account
- Current shower systems are bulky
- Bad water pressure in showers
- Fluctuating temperature in current
shower model
- Much manual adjustment required
- Competition catching up on quality
and technology
- Quartz was perceived too expensive
- Cannibalization of existing shower
product models
SWOT Analysis
QUARTZ
Potential Product
Augmented Product
Expected Product
Basic Product
Core Product
•Body Jet
•One Touch Control
•Automatic temperature control
•Slave remote control
•Easy Installation
•Efficient & Reliable Water Pressure
•No temperature fluctuations
•Electronic Shower
•Shower
High Price
Plumbers wary of innovation
No aggressive marketing due to fear of cannibalization
Concentrated more on servicing old customers rather than
developing new ones
Trade shops did not have the time to learn and explain the features
to customers
Poor distribution channel
Pros
• Know what to expect
• Easier to get to
• Know what it will cost
• Easier to convince because less
educated market
• If convinced, will request that
plumbers install
Cons
• Not getting directly to the problem
• Lifetime value is much lower; one-
time to two-time purchase
• High risk/High reward when the
company is already healthy
Pros
• Easy to install
• Value much higher than current
electric showers that dominated the
market
• Possibly charge a premium
• Differentiated from previous electric
showers
TARGETING DO-IT-YOURSELF SHEDS
Cons
• Get stuck in that market
• Small market for type of shower
• Low profitability – Low total sales
Pros
• Large-volume channel
• Force plumbers to get familiar with
product
• Dependable Cons
• Lead time – Long lag before sales
• Tough sell to developers – Don’t
usually buy premium products
• Don’t want to discount price for
developers
• Higher cost of failure
TARGETING PLUMBERS
Pros
• Most influence in the market
• More impactful word-of-mouth
• Lifetime potential for sales
Cons
• Difficult and expensive to market to
• Already biased against electric
showers
• Resistant to change
Solution
Arrange a conference for plumbers and developers
Free products to try
Provide unconditional guarantee to plumbers and
customers
Include plumbers in the workforce
Thank You
Presented By:
GROUP 3

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Marketing Strategy of Aqualisa Quartz

  • 2. • Founded in 1977 • Head office in Westerham, Kent • Aqualisa was ranked at #2 in mixing valves and #3 in the overall UK shower market • Had 25% net returns on sales • 5% to 10% growth rate
  • 3. -Strong Reputation in UK -Outstanding Quality Product -Breakthrough Technology(QUARTZ) -Premium brand image - Strong emphasis on R&D -Expensive product Image -Low brand awareness of Quartz product - 40% of UK homes don’t have showers installed - Continuous demand on shower products -Market perceived Aqualisa’s products as being overpriced -Declining in service quality - Competitors catching up in product quality -Eroding in customer amount SWOT Analysis AQUALISA
  • 4. Introduction to UK Shower Market  U.K. Shower market in late 1990s was plagued with problems  Only 60% of U.K. homes had showers whereas 100% of the homes had bathtubs  Archaic plumbing was used most commonly which had a cold water tank on the roof, a separate boiler and cylinder to store hot water
  • 5. Electric Showers • Electrical components mounted in bulky box. • Introduced under the name ‘Gainsborough’. • Used cold water. Mixer Shower valves • Manual and Thermostatic • Blended both hot and cold water to set temperature. • Additional booster pump required to enhance the flow rate. Integral power showers • Single compact unit. • Less reliable than Mixer Shower valves. • Results in a bulky box on the wall.
  • 6. Trade Shops • Stocked for demand • Aqualisa was available in 40% of trade shops • Primary Customer- Plumber relationship Plumblers • Huge influence on the individual market segment • Major concern is reliability, performance and ease-of- installation • Familiar product brand to avoid repeat plumbing • Highly loyal to a product • Distrust Innovation • Installers have to go several years of training DIY Shed • Cheaper and easier to retrofit • Launch an intense Marketing Campaign • Brand awareness • Promotional low prices temporarily for the new buyers • Mass Market • Offered Discounts • Electric showers were the primary showering • Gainsborough was available in 40% of them Showroom • High End Product • Multiple brands. • Primary customers were plumbers. • Available in 40% of the trade shops. • No inventory held • Offered installation services by subcontracting • Aqualisa brand was sold in 25% of showroom Channels of Distribution
  • 7. Why People Disliked Showers Poor Pressure Varying Temperature Shower Brake Down Low Brand Awareness Unattractive Design Poor Ease of Installation
  • 8. Quartz – A Breakthrough in Shower Technology Remote Processor A single hole drilling Efficient & Reliable Water Pressure “One Touch” Control Electronically controlled valve
  • 9. Aqualisa Quartz Ease of use Easy to install Good water pressure Stable temperature Great looks
  • 10. -Safer & Easier for users -Better water pressure and temperature control -One touch control with light indicator -High quality product: strong engineering - Easy to install - Day and half installation time saving per install -Unfamiliar product to plumbers -Poor distribution channel - Stigma of past failures with electronic showers - Sales force focused on servicing existing account - Current shower systems are bulky - Bad water pressure in showers - Fluctuating temperature in current shower model - Much manual adjustment required - Competition catching up on quality and technology - Quartz was perceived too expensive - Cannibalization of existing shower product models SWOT Analysis QUARTZ
  • 11. Potential Product Augmented Product Expected Product Basic Product Core Product •Body Jet •One Touch Control •Automatic temperature control •Slave remote control •Easy Installation •Efficient & Reliable Water Pressure •No temperature fluctuations •Electronic Shower •Shower
  • 12. High Price Plumbers wary of innovation No aggressive marketing due to fear of cannibalization Concentrated more on servicing old customers rather than developing new ones Trade shops did not have the time to learn and explain the features to customers Poor distribution channel
  • 13.
  • 14. Pros • Know what to expect • Easier to get to • Know what it will cost • Easier to convince because less educated market • If convinced, will request that plumbers install Cons • Not getting directly to the problem • Lifetime value is much lower; one- time to two-time purchase • High risk/High reward when the company is already healthy
  • 15. Pros • Easy to install • Value much higher than current electric showers that dominated the market • Possibly charge a premium • Differentiated from previous electric showers TARGETING DO-IT-YOURSELF SHEDS Cons • Get stuck in that market • Small market for type of shower • Low profitability – Low total sales
  • 16. Pros • Large-volume channel • Force plumbers to get familiar with product • Dependable Cons • Lead time – Long lag before sales • Tough sell to developers – Don’t usually buy premium products • Don’t want to discount price for developers • Higher cost of failure
  • 17. TARGETING PLUMBERS Pros • Most influence in the market • More impactful word-of-mouth • Lifetime potential for sales Cons • Difficult and expensive to market to • Already biased against electric showers • Resistant to change
  • 19. Arrange a conference for plumbers and developers Free products to try Provide unconditional guarantee to plumbers and customers Include plumbers in the workforce