AQUALISA QUARTZ : Simply a Better Shower

Reg. 44
Rahadian Anandianto Ridwan Riswandy Fiqi Dipowicaksono Felisia Noviana Mukti Wulan Cahyo Wening Imam Mashari 29110393 29110398 29110407 29110411 29110416 29110417

BACKGROUND

Top quality shower Great service

UK Shower Market
Strong reputation Premium brand

Harry Rawlinson

Other catching up to Aqualisa in terms of product quality

Market beginning to perceive Aqualisa products as being overpriced (table)

Actual service had slipped over 10% of Aqualisa showers still went wrong

1998

Model
Aquastyle Aquavalve 609 Aquavalve Value Aquastream Thermostatic Aquastream Manual Quartz Standard Quartz Pumped Aquaforce 1.0/1.5 Bar Aquaforce 2.0/3.0 Bar

Segme nt Premiu m Standa rd Value Standa rd Value Premiu m Premiu m Standa rd Premiu m

Retail Price () 230

MSP ()
155

Cost ()
95

Margin ()
60

715
390

380
205

155
75

225
130

670
480

350
250

175
140

175
110

850
1080

450
575

175
230

275
345

445
595

230
310

125
175

105
135

Archaic plumbing was still common in many homes

Showers in the UK were plagued with problem Gravity fed :
cold-water tank / cistern sat in the roof, while a separate boiler and cylinder were needed to store hot water in a nearby airing cupboard Poor to low water pressure Frequent fluctuations in pressure

Type of Shower
Electric Shower

Information
Does not require hot water supply
Results in bulky box on the wall Low flow rate Requires both hot and cold water supply Requires additional pump to address pressure problems Installation typically requires excavation of bathroom Requires both hot and cold water supply Results in bulky box on the wall Regarded as less reliable than a mixer-shower and pump combination

Mixer Shower

Power Shower

Why customers disliked their shower ?

Poor pressure

Varying temperature
Shower often broke down
Hard to turn valves, leaky seals, and worn-out showers

Uninformed about shower

Brand awareness was low

Aqualisa market share ranked it number two in mixing valves and number three in the overall UK shower market.

But, now their sales is decreasing.

Situation Analysis

MARKET SITUATION
4P & DISTRIBUTION

PLACE

PRODUCT
Wide range of product to cater to the needs of all segment. The recent introduction great leap for Aqualisa (quality and cost). Two models : o Quartz standart (not requiring apump to boost water pressure) o Quartz premium (including the pump).

Aqualisa offer its product through a wide range of distribution outlet: Trade shop

Showroom
DIY sheds Plumbers

Contract outlets.

PROMOTION
Good reputation and brand name in the market its exixting product high quality & performance helped it attaint no. 3 position having close to 18 & market share (325.500 units of 1.8 million) Adopted several approaches : exebitions, face to face contact with plumbers and advertisement in the mail on Sunday.

PRICE
-Pricing is higher, the additional features in the shower justify the premium charged. -Good value to end customer product & price -Maintain current price for Quartz -Use the value proposition in targeting customers. -Lowering the price = higher breakeven quantity,

Trade Shops
Carried products across all available brands

Showroom
High-end product lines and brands Various shower and bath options were displayed Offered installation services by subcontracting with contractors and independent plumbers Aqualisa brand was sold in about 25% of them

DIY Sheds
Offered discount Mass market Do-it-yourself products Aqualisa brand was unavailable through this channel Gainsborough brand was available in 70% of the approximately 3000 DIY

Primary customer was the plumber

Aqualisa brand was available in 40% of trade shops Their customers are looking for reliable product availability

DISTRIBUTION CHANNELS

SEGMENTS & CHANNELS

REACHING COSTUMERS
CHANNELS

Trade Shop

DIY Sheds

Showrooms

Plumbers
MIDDLEMAN

CUSTOMERS

Standard

Value

DIY

Premium

Developers

UK Shower Market (Product Type and Channel)

Distribution Do-It-Yourself Sheds Showrooms Trade Shops Other (Electrical Wholesalers) TOTAL

Electric Showers 550000 55000 330000 165000 1100000

Mixer Showers 80000 70000 400000 550000

Power Showers 20000 20000 110000 150000

UK Shower Market (Installation Method)

Developer Installation for New Home Build 20% Installation by Showroom 20% Commercial Installation 6% Installation by Independent Plumber 54%

MARKET SITUATION
SWOT ANALYSIS

- Unfamiliar product to plumbers - Stigma regarding past failures with electronic showers - Bad recent customer service reputation - Sales force focused on servicing existing accounts (90% of time)

- Better water pressure and temperature control - Safer and easier for users (no sticking hand in hot water) - One touch control with light indicator - Easy to install : Junior apprentice can perform install as well - Day and half installation time saving per install (average) - Patent on Aqualisa Quartz design - Strong brand recognition - High quality product : strong engineering in design

- Current shower systems are bulky - Excavating required for current shower models - Bad water pressure and temperature control with current shower models - Much manual adjusting required with current shower models

- Competition catching-up on quality and technology - Aqualisa Quartz perceived as too expensive - Patent expiration - Cannibalization of existing shower product models

MARKET SITUATION
CONSUMER PROFILE

Consumer Pricing Segmentation

Premium :
Typically shopped in showroom Style determined their selection

Standard :
Tended to emphasize performance and service Relied on independent plumber to select product

Value :
Concerned with convenience and price Avoid solution that required any excavation Relied on independent plumber to select product

Consumer
Depend on plumber Easy to use Easy to install Perceived high quality product High pressure Stable temperature Endurance

Plumber
Loyal to one product created expertise. Reluctant to switch brand paid more for the 2nd visit. Distrusted innovation (skepticism to new technology, based on some manufacturers failure). Familiarize themselves with the service from manufacturer,

Developer
Price sensitive Did not need to invest in premium product Had relationship with independent plumber Prefer reliable and stylish model

Market Share

COMPETITIVE LANDSCAPE

Electric Shower

Quality

Power Shower Mixer Shower

PROBLEM IDENTIFICATION
How Aqualisa increase sales of its product ?

Which marketing strategy choose by Aqualisa ?

THEORY ANALYSIS

LATENT & MANIFEST MOTIVES IN PURCHASE SITUATION

Its elegant and bring prestige to me

Easier to use

High quality product

Purchase Aqualisa Quartz

Its quite expensive (than the other) so it can bring pride to me

My plumber recommends this brand

The linkage between behavior and motives that are known and freely admitte The linkage between behavior and motives that are either unknown or are such that the consumer is reluctant to admit or reveal them

Value Proposition

VALUE CREATED FOR CUSTOMER

Quartz is superior to any other shower on the market Outstanding performance, elegant design, easy to use

Cheaper and easier to install, no wall excavation due

Great economic benefit

Value Proposition

VALUE CREATED FOR PLUMBERS

Quartz can be installed 4 times more quickly
Installation is so simple to let them send apprentices to perform it, which would increase plumber business No risk of after-sales problems

Mean-End Chains Analysis :

How consumer perceive Product attribute.

Explore a hierarchical sequence of :

Their consequences. What these then reveal about their value.

VALUE CONSEQUENCES (functional and psychosocial)

End

PRODUCT ATTRIBUTE (concrete and abstract)

Mean

The Laddering Techniques CONSUMER

ACCOMPLISHMENT ECONOMY

Use by all family member

Simplicity

Elegance & prestige

Low cost

Easy to use

Easy to install

Good looking design

Endurance

The Laddering Techniques PLUMBER

ECONOMY BELONGING ACCOMPLISHMENT

Low cost

Trust

Simplicity

Easy to install

Loyal to 1 product

Distrusted to innovation

The Laddering Techniques DEVELOPER

ECONOMY

Sold out Saving time Low cost Elegance

Easy to install

Prive sensitive

Prefer reliable

Stylish

SOLUTIONS

Quartz
Premium Product Leading product in innovation and Technology Maintain as Niche Product High Quality and Performance

Targeting Customer Directly

Quartz
Premium Product Targeting Developer Targeting Showroom

Targeting Customer Directly Increase brand awareness and knowledge by ads Deal with Plumber (influence 73%) Good services to plumber Make incentive program to plumber

Quartz
Premium Product Targeting Developer

Targeting Showroom

Targeting Customer Directly

Quartz
Premium Product Targeting Developer Deal with High Class Developer Create a new brand Supermax+ customizable Targeting Showroom Showroom with service Aqualisa provide the plumber bundling with the product Expand distribution on showroom

Targeting Customer Directly

Quartz
Premium Product

Targeting Developer Deal with High Class Developer Create a new brand Supermax+ customizable

Targeting Showroom

LESSON LEARNED

It is not easy to make and market products for the first time. There are many things that must be considered by a company in create new product. Not only innovate new technology but also research their customer profiles and ways of marketing. Companies also should not be afraid to pay extra costs to support the marketing of new product. All of these actions is expected to increase the sales of new product.

By support the marketing of its own product, company will gain extra value, which is one of the most important thing from a product : consumers brand awareness. High brand awareness will bring good number of profit and sales. Each company should also pay attention to each type of consumers and customers. Different consumers will need different treatment and service, thats why its important to know their profile before.

THANK YOU