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Aqualisa Quartz: Simply a better shower
Presented by:
Loukik Huilgolkar 140201070
Shashank Tiwari 140201146
Mayank Sitlani 140201077
Shashank Tyagi 140201147
Sejal Karnik 140201059
Ananya Jain 140201022
Himanshu Singh 140201053
Introduction
• One of the leading shower making company based in UK
• Catered to 18% of the shower market in 2001
• Invested 5.8 million on R&D, they came up with the innovative
Quartz technology but did not perform well.
Consumers
• Everyone had a bathtub while only 60% of UK homes had showers.
• Brand Awareness was very low.
• People didn’t like:
– Poor Pressure
– Varying Temparature
– Breaking down of showers
– Hard-to-turn and stiff valves
– Leaky seals, worn out showers
• Lumpsum prices for customers.They remained unaware about cost
break down (labor, material, excavataion, etc)
• 73% of the buying decision is influenced by plumbers.
Product Range
Electric Showers Mixed Shower Valves Power Showers
• Electric heating element in
the shower instantaneously
heats the water. Hence
eliminating use of hot water
supply
• Electrical components were
mounted on the walls in a
bulky white box visible in
shower stall
• The flow rate was low as it
was limited by the amount of
energy that could be applied to
heat the water
• Aqualisa sold this type of
showers under a different
brand name: Gainsborough.
• Electric showers have 61.11%
of total market share ok U.K.’s
shower market Aqualisa has
around 16.8% in this segment
• Valves come in two types:
Manual and Thermostatic
• Required supply of both hot
and cold water.
• An additional booster pump is
required to increase the flow.
•Core selling product of
Aqualisa i.e. Aquavalve comes
under this category and is
regarded as high quality,
reliable shower with state of
art technology by plumbers.
• Mixed shower valves have
30.56% of total market share
ok U.K.’s shower market. And
Aqualisa has around 20.8%% in
this segment
•Comes in single compact unit
that combined thermostatic
mixer valve and booster pump
• Requires a bulky box on the
wall as provided up to 18 liters
of blended water per minute
• Regarded as less reliable than
mixer showers.
• Aqualisa has Aquastream in
this segment.
• Power showers have 8.33%
of total market share ok U.K.’s
shower market. And Aqualisa
has around 16.47% in this
segment
Industry analysis
Rivalry
among
competitors
HIGH
Threat of
new
entrants
MODERATE
Bargaining
power of
suppliers
LOW
Bargaining
power of
buyers
HIGH
Threat of
substitutes
LOW
Competitor Analysis
Aqualisa &
Gainsborough
18%
Triton
30%Mira
22%
Masco
7%
Ideal Standards
3%
Others
20%
Sales
•Ranked number three in UK shower market
•Ranked number two in mixing valves
Customer Segments
Premium:
Typically shopped in showrooms
Style determined their selection
Standard:
Emphasis on performance and service
rather than style
Their selection usually relied on an
independent plumber
Value:
Concerned with convenience and price
Avoided solution that require
excavation
Relied on independent plumber to
make a selection for them
DIY:
They shop at large retail outlets.
Interested in easy to install and
inexpensive models.
Preffered choice- electric showers.
Aqualisa’s Gainsborourgh has 70%
penetration in
Developers:
Preferred reliable and nice looking
products.
Price sensitive
Aqualisa sold under separate brand-
ShowerMax
Channels of Distribution
Plumbers
•Distrusted innovation
•73% sales were influenced
by plumbers
•Highly loyal to current
brands
•Installers had to go through
several years of training
Showroom
•High end products
•No inventory held
•Various options
•Also offered installation
services by subcontracting
•Aqualisa brand was sold in
25% of them.
Trade Shops
•Primary customer-
Plumbers
•Stocked for demand
•Aqualisa brand was
available in 40% of them
DIY Shed
•Offered discount
•Cheaper and easier to
retrofit
•Electric showers were the
primary offering
•Gainsborough brand was
available in 40% of them.
Quartz: A Breakthrough in Shower Technology
VALUE
PLUMBERS Easy to Install
More profitable
Takes half a day for installation
Even apprentice can do the installation
CONSUMERS Efficient water pressure and temperature
Safe to use
Much easier to install on DIY sector
One touch control with red light indicator
More aesthetic design
Issues faced
• Quartz sales have not met expectations
• Plumbers technology syndrome
• Expensive
• Low awareness
Targeting Consumers Directly
‘Bet the company kind of
product’
Has been done by others
High reward strategy if
successful
High risk strategy
One time only print
advertisement not enough
A large scale campaign will prove
too costly
Targeting Do-It-Yourselfers
Easy to install
Charging of premium
Pushing the products
through B&Q will help in
avoiding expensive
advertising
Associating premium
brand with discounted
channel
Affect sales of its
Gainsborough line
Targeting Developers
Could sell in large volume.
Dealing with developers
could simplify sales and
make it less costly for
Aqualisa
Will force plumbers to
familiarize themselves with
the product
It could take time for the
product to get to
consumers
Could be a tough sell due
to premium price
Targeting Trade shops and Plumbers
Plumbers have direct
contact with final consumer
54% of mixer showers
installations are done by
plumbers
Plumbers have big influence
on decision making process
Plumbers distrust
innovations
Trade shops carry other
brands
Recommendations
• SHORT-TERM STRATEGY
i. Reduce prices for market penetration
ii. Retailer margin is more than that for Aqua valve
even after price reduction
iii. Thus target plumbers and trade shops initially to
gain market share by training and giving
incentives
Model Segment Retail price MSP Cost Margin for
Retailers
Margin for
company
Quartz Standard
(proposed)
Premium 850 450 175 400 275
Quartz Standard
(recommended)
Standard 750 450 175 300 275
Quartz Pumped
(proposed)
Premium 1080 575 230 505 345
Quartz Pumped
(recommended)
Premium 950 575 230 375 345
Short Term Strategy
• Give your product to master plumbers for free trials
• Develop incentive strategy for plumbers
• Marketing should be focused on plumbers thus target print media
at trade shops
• Training programs for installations
Recommendations
• LONG-TERM STRATEGY
i. With more brand recognition target the premium segment and make the
product available in all major showrooms
ii. Target 40% homes which do not use showers
iii. Target DIY by making them ware of easy installation process
iv. Gradually replace Aquavalve 609 with Quartz standard and Quartz
pumped
Aqualisa quartz

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Aqualisa quartz

  • 1. Aqualisa Quartz: Simply a better shower Presented by: Loukik Huilgolkar 140201070 Shashank Tiwari 140201146 Mayank Sitlani 140201077 Shashank Tyagi 140201147 Sejal Karnik 140201059 Ananya Jain 140201022 Himanshu Singh 140201053
  • 2. Introduction • One of the leading shower making company based in UK • Catered to 18% of the shower market in 2001 • Invested 5.8 million on R&D, they came up with the innovative Quartz technology but did not perform well.
  • 3. Consumers • Everyone had a bathtub while only 60% of UK homes had showers. • Brand Awareness was very low. • People didn’t like: – Poor Pressure – Varying Temparature – Breaking down of showers – Hard-to-turn and stiff valves – Leaky seals, worn out showers • Lumpsum prices for customers.They remained unaware about cost break down (labor, material, excavataion, etc) • 73% of the buying decision is influenced by plumbers.
  • 4. Product Range Electric Showers Mixed Shower Valves Power Showers • Electric heating element in the shower instantaneously heats the water. Hence eliminating use of hot water supply • Electrical components were mounted on the walls in a bulky white box visible in shower stall • The flow rate was low as it was limited by the amount of energy that could be applied to heat the water • Aqualisa sold this type of showers under a different brand name: Gainsborough. • Electric showers have 61.11% of total market share ok U.K.’s shower market Aqualisa has around 16.8% in this segment • Valves come in two types: Manual and Thermostatic • Required supply of both hot and cold water. • An additional booster pump is required to increase the flow. •Core selling product of Aqualisa i.e. Aquavalve comes under this category and is regarded as high quality, reliable shower with state of art technology by plumbers. • Mixed shower valves have 30.56% of total market share ok U.K.’s shower market. And Aqualisa has around 20.8%% in this segment •Comes in single compact unit that combined thermostatic mixer valve and booster pump • Requires a bulky box on the wall as provided up to 18 liters of blended water per minute • Regarded as less reliable than mixer showers. • Aqualisa has Aquastream in this segment. • Power showers have 8.33% of total market share ok U.K.’s shower market. And Aqualisa has around 16.47% in this segment
  • 5. Industry analysis Rivalry among competitors HIGH Threat of new entrants MODERATE Bargaining power of suppliers LOW Bargaining power of buyers HIGH Threat of substitutes LOW
  • 6. Competitor Analysis Aqualisa & Gainsborough 18% Triton 30%Mira 22% Masco 7% Ideal Standards 3% Others 20% Sales •Ranked number three in UK shower market •Ranked number two in mixing valves
  • 7. Customer Segments Premium: Typically shopped in showrooms Style determined their selection Standard: Emphasis on performance and service rather than style Their selection usually relied on an independent plumber Value: Concerned with convenience and price Avoided solution that require excavation Relied on independent plumber to make a selection for them DIY: They shop at large retail outlets. Interested in easy to install and inexpensive models. Preffered choice- electric showers. Aqualisa’s Gainsborourgh has 70% penetration in Developers: Preferred reliable and nice looking products. Price sensitive Aqualisa sold under separate brand- ShowerMax
  • 8. Channels of Distribution Plumbers •Distrusted innovation •73% sales were influenced by plumbers •Highly loyal to current brands •Installers had to go through several years of training Showroom •High end products •No inventory held •Various options •Also offered installation services by subcontracting •Aqualisa brand was sold in 25% of them. Trade Shops •Primary customer- Plumbers •Stocked for demand •Aqualisa brand was available in 40% of them DIY Shed •Offered discount •Cheaper and easier to retrofit •Electric showers were the primary offering •Gainsborough brand was available in 40% of them.
  • 9. Quartz: A Breakthrough in Shower Technology VALUE PLUMBERS Easy to Install More profitable Takes half a day for installation Even apprentice can do the installation CONSUMERS Efficient water pressure and temperature Safe to use Much easier to install on DIY sector One touch control with red light indicator More aesthetic design
  • 10. Issues faced • Quartz sales have not met expectations • Plumbers technology syndrome • Expensive • Low awareness
  • 11. Targeting Consumers Directly ‘Bet the company kind of product’ Has been done by others High reward strategy if successful High risk strategy One time only print advertisement not enough A large scale campaign will prove too costly
  • 12. Targeting Do-It-Yourselfers Easy to install Charging of premium Pushing the products through B&Q will help in avoiding expensive advertising Associating premium brand with discounted channel Affect sales of its Gainsborough line
  • 13. Targeting Developers Could sell in large volume. Dealing with developers could simplify sales and make it less costly for Aqualisa Will force plumbers to familiarize themselves with the product It could take time for the product to get to consumers Could be a tough sell due to premium price
  • 14. Targeting Trade shops and Plumbers Plumbers have direct contact with final consumer 54% of mixer showers installations are done by plumbers Plumbers have big influence on decision making process Plumbers distrust innovations Trade shops carry other brands
  • 15. Recommendations • SHORT-TERM STRATEGY i. Reduce prices for market penetration ii. Retailer margin is more than that for Aqua valve even after price reduction iii. Thus target plumbers and trade shops initially to gain market share by training and giving incentives Model Segment Retail price MSP Cost Margin for Retailers Margin for company Quartz Standard (proposed) Premium 850 450 175 400 275 Quartz Standard (recommended) Standard 750 450 175 300 275 Quartz Pumped (proposed) Premium 1080 575 230 505 345 Quartz Pumped (recommended) Premium 950 575 230 375 345
  • 16. Short Term Strategy • Give your product to master plumbers for free trials • Develop incentive strategy for plumbers • Marketing should be focused on plumbers thus target print media at trade shops • Training programs for installations
  • 17. Recommendations • LONG-TERM STRATEGY i. With more brand recognition target the premium segment and make the product available in all major showrooms ii. Target 40% homes which do not use showers iii. Target DIY by making them ware of easy installation process iv. Gradually replace Aquavalve 609 with Quartz standard and Quartz pumped

Notas do Editor

  1. loukik
  2. tyagi
  3. sst
  4. sst
  5. tyagi
  6. sejal
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  8. himanshu
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  10. sittu
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