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Similar to Group 14 - Section D_ Aqualisa Case Study.pptx
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Group 14 - Section D_ Aqualisa Case Study.pptx
- 1. Background Since 1976 Aqualisa has been pioneering the way in which we shower Ranked 3rd In the Overall U.K. Shower market Innovative technological breakthrough – “The Quartz” in 2001 Ranked 2nd in the Mixer Shower World’s first digital shower
- 2. • Gravity Fed plumbing • Constantly fluctuating temperature • Frequent repairs needed • Multiple storage units • Space constraint • Cumbersome mechanism Problems faced by the people • Remotely located mechanism • One push-fit button • One touch control for temperature • Compact (Shoe box size) • Easy to install with a single drill How Quartz made it easy Why Quartz???
- 3. Value Proposition to Plumbers Increased Employment Reduced installation time •Delegation to apprentice possible •Fewer repairs •Excavation of bathroom avoided •Push-fit connect Increased sales
- 4. What went wrong with Quartz??? 73% 27% Plumber Influence No Influence Influence of Plumbers on selection of Shower 1080 850 715 670 595 480 445 390 230 • High Price of Quartz • Plumbers were reluctant to change • Cannibalization • Plumbers were conservative about innovation involving electronics • Awareness was required among plumbers as they adopted eventually • Developers have other cheaper options • Stagnancy in the market due to enough competitors • Quartz may replace Aquavalve • Quartz value would be reduced and recovery in price won’t be possible
- 5. SWOT Analysis S STRENGTHS • First Mover advantage • Experienced Work-force • Long-standing relationships • Awarded at Expo WEAKNESSESS • High Price • Poor marketing of Quartz • Under-utilized Marketing team • Failure of Electronic products in past OPPORTUNITIES • Enter the global market • Other bathroom fittings • Efficiently grab the market while having a monopoly • 40% UK homes didn’t have shower THREATS • Competitors may launch a similar product • Cannibalization W T O
- 6. Was it Worth the Investment??? Niche or Mainstream Great Reviews from Customers Easy to use & safe for the elderly, kids, and handicapped Plumbers Easy to install, value addition in terms of employment Award Awarded Top Prize at product launch at Expo Yes, Spending €5.8Million was worth the Investment Currently, the product is niche as • It only caters to affluent people. • It is only selling 15 units per day as compared to the breakthrough target which is 100-200 units. • Its sale is mostly through showrooms which attract a limited customer base as compared to DIY. To break into the mainstream market • Selling the product through more channels. • Setting a more competitive price.
- 7. 02 01 03 3 Brands Multi-Brand Strategy • Mixer shower valves • Targets consumers directly & through plumbers • Eg: Aquavalve 609 • Electric shower valves • Brand specific to the DIY category • ~70% DIY outlets ShowerMax • Power shower valves • Specially designated brand for the Developers • To sell “cut-down” products BENEFITS: Diversified revenue stream Restrict Competition Increase market share by expanding the target audience
- 9. Porter’s 5 Forces Threats of New Entrants • Copying of the innovation • Bathroom services entering into shower business • Collaboration of electronic industry with competitors Threats of Substitutes • Later entrants could capitalize on the first mover's failure • Competitors utilizing the rapid change in technology • Consumers pre conceived mindset giving advantage to competitors Bargaining Power of Suppliers • Long-standing relationships in the market • Unique Selling proposition • Great customer reviews Bargaining Power of Buyers • Preference for low price competitors • Buyers demanding insurance and repair damage • Shift towards core products rather than innovation Competitive Rivalry • Innovation among the competitors • Large-scale consumer advertising by the competitors • Competitors focussing on more channels of distribution Buyers Threat New Entrants Suppliers Substitutes Competitive Rivalry
- 10. 03 02 01 04 05 Company • Aqualisa • Gainsborough- Electric Showers • Showermax- Mixer shower Customers • Retail Consumers • Developers • Plumbers Competitors • Triton • Mira Showers • Masco Collaborators • Plumbers • Scientists from research Institute • Developers Context • UK 5 C’s Analysis
- 11. Generating Sales Momentum Word-of- mouth marketing Will eventually learn and trust the product Plumbers will be forced to install Target the developers •Giving one-time discounts •Reducing marketing cost Increase focus on DIY marketing More consumer outreach
- 12. Thank You