CASE Aqualisa - QUARTZ

Problem Definition
There was clearly a business opportunity with Quartz showers since it had
an innovative product with elegant design. Easy to use, quick to install
(noon vs 2 days traditional) showers, with a reliable pressure and
temperature of water, safe for children, ideal for seniors who no longer
had to struggle with sticking valves. Smaller remote processor that could
be installed in any place near the shower, with excellent technology
regulation allowing automatic temperature with just press a button
(single-button control)
The problem revolved around defining target customer and the right
marketing strategy that will allow the company to achieve the level of
estimated sales for this new product and likewise positioning in the
market, without displacing other products on the company
Situation Analysis
Product:

Electric showers: Electrical heating elements in the shower

instantaneously heated the water, eliminating the need for a boiler
to store hot water. The electrical components were usually mounted
in a bulky white box that was visible in the shower stall, and had
poor flow rate.
Mixer shower valves: came in two types: manual and
thermostatic, both types blended hot and cold water to create a
comfortable temperature. Installing a mixer valve meant excavating
the bathroom wall, which was often a two-day job. An additional
booster pump could be installed to enhance the flow rate.
Integral power showers: consisted of a single compact unit that
combined a thermostatic mixer valve and a booster pump. They had
to be mounted in the shower, resulting in the presence of a bulky
box on the wall. In addition, these units were generally regarded as
being less reliable than a mixer shower and booster-pump
combination.

Price:
Type of
Shower

Aqualisas Core Product Offerings and Price

Value

Standard

Premium

Electric showers

Gainsborough
Retail: 95

Gainsborough
Retail: 155

Aquastyle
Retail: 230

Mixer shower
valves

Aquavalve
Retail: 390

Aquavalve 609
Retail: 715

Mixer shower
valves

Aquastream
Manual
Retail: 480

Aquastream
Thermostatic
Retail: 670

Place:

Trade shops: Trade shops carried products across all available

brands. Their primary customer was the plumber, who worked for
developers, showrooms, contractors, or directly for consumers. The
Aqualisa brand was available in 40% of trade shops. Their customers
are looking for reliable product.
Showrooms: Distributors supplied showrooms, which tended to be
more high-end. Various shower and bath options were displayed in
the showroom. Showrooms also offered installation services by
subcontracting with contractors and independent plumbers. There
were about 2,000 showrooms in the U.K.; the Aqualisa brand was
sold in about 25% of them.
DIY Sheds: Do-it-yourself retail outlets offered discount, massmarket, do-it-yourself products. Electric showers, because they were
cheaper and easier to retrofit, led sales in this channel. The Aqualisa
brand was unavailable through this channel, but its Gainsborough
brand was availablein 70% of the approximately 3,000 DIY outlets in
the U.K.
Promotion: Through advertisement, broachers.
Company: Aqualisa in 1998 is recognized as having good shower
products in UK. It had a return of sales of 25%. It recorded sales growth of
5% to 10% in a mature market. The current differentiation points were
eroding. Company had in its portfolio all the types of shower that existed
in the market (Electric Showers: Gainsborough and Aquastyle, Mixing
valves: AQUAvalve, whole Showers: Manual Aquastream and Aquastream
Thermostatic).
Customer: Consumers perceive Aqualisa as too expensive whereas in
terms of functioning as the best. Customers fall under these three price
segments: High: Consumers who once bought in Showrroms. Buying
factors are high level of performance, service and style. Standard: They
focused on performance and service and mostly dependent on plumber to
recommend them .Plumber were primarily interested in convenience and
price. They wanted to avoid complications in product and ease during
installation.
DIY: Generally purchase through retail outlets, these are inexpensive and
easy to install.
Real Estate Development: Prefer nice looking reliable products that can
operate in different environments, are sensitive to price.

Competition: Hansgrohe: German Brand Sale of prestige and specialty

stores. Triton: Leading brand in England. Was the brand that created
brand awareness among consumers Look:. Brand occupying second place
in the market.

Contributors Plumbers: Persons engaged in the installation of showers.

In the market there were 10,000 plumbers which means that there was a
significant deficit. Unwilling to accept innovation especially when there
was electronic. They preferred to install a unique brand of showers
because with which they were unfamiliar to them could generate
malfunctions by faulty installation which forced them to make a second
visit was the responsibility of pocket. Therefore experts became a brand
and features. They liked to be familiar with the service they could expect
from a manufacturer. For plumbers, products that were unfamiliar could
present problems of unknown yield They have much influence on the
standard price segments and budget when choosing the type and brand of
the shower with a percentage of 53% and 20% in choosing the type of
shower Market

Context. Only 60% of Houses in the UK are shower Many houses were
archaic gravity pipes that worked. most consumers showers disliked their
showers low pressure, temperature variations, they broke or fail with time
Almost half the market Showers UK consisted of sales of replacement
showers (44%) The independent plumbers perform the installation of 54%
of the showers mixers . The wholesalers are the distribution channel with
higher sales units

Alternatives
showers.
Addressing consumer
Advantages: Communication come directly to consumers . We could
create a consumer brand Disadvantages: very high costs 3-4000000
Euros over two years Project difficult to sell within the company (high
risk . - high reward)
Target DIY enthusiasts
Advantages Good quality product that could fit in this segment to be
very easy to install. You could make retailers like B & Q will help you
advertise the product without having to develop an expensive campaign
Aqualisa advertising
Disadvantages Once you show up on the shelves of DIY you can not get
out . the best brand channel is associate to Target discounts
promoters

Advantages: Canal that could generate large sales volume plumbers

would be forced to You become familiar with the product Aqualisa You will
be wearing two years ahead of the competition Disadvantages Long term
time leading up to the showers reach consumers through this channel.
The promoters could be reluctant to spend money on products Aqualisa
because the perceived high price brands
Recommendation
Targeting Plumbers and Wholesalers
Advantages: Since the Plumbers are those most market share in the
theme installation Showers (54%) and therefore influence definitively in
the purchase decision of the customer (53%) both in kind shower and
brand, should be directed marketing strategy to them in order to generate
a good product knowledge and acceptance of the same order that they
become experts on the product and loyal and likewise always recommend
its customers. Because of their experience, know when a product is good,
therefore, after they put a shower Quartz are convinced of its benefits.
The main consumer of wholesalers are plumbers Aqualisa was 40% of
stores Wholesalers wholesale customers must know the product and what
they want is the availability.
Disadvantages They are reluctant to accept innovations especially when
using electronic according to prior experience They have very
conservative, therefore the acceptance of a new product can become a
slow process that takes time.
Implementation Plan
Consolidate direct and solid relationship not only with a group of
plumbers but with all of these through a strategic alliance in which
plumbers receive a type of commission or bonus on the recommendation
of the Quartz showers, represented in the amount of quartz showers that
are purchased by recommending them to their clients. Training for
Plumbers and Wholesalers about the product, focusing on their benefits,
ease of use, installation and likewise feel that the manufacturer is a
support for everything they need to set up or buy a Quartz shower.
Develop people most plumbers through practical for students in the
company. Engage plumbers who already know and recommend the
product to perform with them you promotional and advertising the product
in live demonstrations to the public, this would generate that became
more loyal to the brand. Strengthen communication wholesalers, and be
aware of the good location of products within the premises of the
wholesalers, also placing brand promoters pending customer and may in
turn recommend buying Product explaining its benefits and advantages.
Create 2 types of flyers advertising Quartz, a more technical and userfriendly to be used by the Plumbers and another that emphasizes the

benefits of the product and that emphasizes the Innovation thereof to the
end consumer.