Aqualisa Quartz: Simply a better shower

Presented by:Loukik Huilgolkar 140201070Shashank Tiwari 140201146

Mayank Sitlani 140201077Shashank Tyagi 140201147

Sejal Karnik 140201059Ananya 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 RangeElectric 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

competitorsHIGH

Threat of new entrants

MODERATE

Bargaining power of suppliers

LOW

Bargaining power of

buyersHIGH

Threat of substitutes

LOW

Competitor Analysis

Aqualisa & Gainsborough18%

Triton30%Mira

22%

Masco7%

Ideal Standards3%

Others20%

Sales

• Ranked number three in UK shower market

• Ranked number two in mixing valves

Customer Segments

Premium: Typically shopped in

showroomsStyle determined their

selection

Standard:Emphasis on performance

and service rather than styleTheir selection usually relied on an independent plumber

Value:Concerned with convenience and

priceAvoided solution that require

excavationRelied 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

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 TechnologyVALUE

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 AqualisaWill 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 consumer54% of mixer showers installations are done by plumbersPlumbers have big influence on decision making process

Plumbers distrust innovationsTrade shops carry other brands

Recommendations• SHORT-TERM STRATEGYi. 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

THANK YOU