Aqualisa Quartz.ppt Final

8/22/2019 Aqualisa Quartz.ppt Final

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Overview & Discussion Topic

Topic : Aqualisa Quartz

Type : Shower

Owner : Aqualisa

Country of origin : U.K.

Market share : Number three in the overall

U.K shower market


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Aqualisas type of showerElectric Shower Used the cold water supply

Electronic heating element heated the water to require temperature Convenient for small bathroom A bulky white box in the shower wall The poor water flow of many showers Aqualisa sold electric showers mostly under the Gainsborough brand

Mixer Shower Came in two types: manual and thermostatic Both type blended hot and cold water to create comfortable temperature It was Aqualisas top selling shower Aqua valve 609 was the companys core product in the mixer-shower-valve Was regarded by plumber as being a high-quality, reliability, reliable mixer

shower with state-of-the-art technology

Power Shower A single compact that combined a thermostatic mixer valve and booster The presence of a bulky box on wall Provide up to 18 liters of blended water per unit

Aqualisas strongest selling shower in the power shower category


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Pricing segment of Aqualisas core

productPremiumTypically shopped in showroom

Look for high performance and service

Style determined the customers selection pattern

StandardEmphasis on performance and service

Usually relied on an individual plumber to recommended orselect a product

Value Primarily concerned with convenience and price

Tended to rely on an independent plumber to select a product


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Aqualisas Core Product Offerings

Types of Shower Valve Standard Premium

Electronic Shower Gainsborough Gainsborough Aquastyle

95 155 230

Mixer Shower Aquavalve Aquavalve

390 715

Power Shower Aquastream Aquastream

Manual Thermostatic

480 670

These all are retail prices

ShowerMax was available with high pressure shower-with Aquavalve technology-at asignificant lower cost


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The initial situationInitially, when Rawlinson joined Aqualisa, the situation of

the company washighly profitablequite comfortable with its niche in the markethad 25% net return on sales

was enjoying 5% to 10% growth in a mature market

After joining the Aqualisa, Rawlinson was very worried: other companies were catching up to Aqualisa in terms of

product quality the market was beginning to perceive Aqualisa product as

being overpriced actual service had slipped over the past few years10% of Aqualisa showers hadnt improved in many years


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The development of the Quartz

Shower Valve

At first, the company built a research and

development (R & D) team.The findings of the

researches was:

consumers wanted a shower that looked great

delivered good pressure at stable temperatures

easy to use

showers should not break down or require servicing


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The development of the Quartz

Shower Valve

Second, locate the mechanism remotelyaway from the shower.The breakthrough idea actually came from the brainstorming of theresearch team.

Third, they started using electronics to control the valve remotely.They came up with the idea because the controlling of a mechanismwhich is located remotely was a problem of users.

Fourth, once the product started to take shape, they took the fieldtest. Rawlinson took consumer field test sites, installing showers in

the homes, company personnel and friends to friends.

Finally, after three years of development Aqualisa successfully ableto provide a radically different kind of shower that called Quartz.


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Aqualisa Quartz : A Breakthrough

Aqualisa brought a new kind of shower after threeyears of research & development which cost 5.8million

Time consuming User friendly

Space flexibility


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Marketing Strategy

Targeting Customer Directly

Targeting Do-it-Yourselfers ( DIY)

Targeting Developers


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Q.1. What is the Quartz value proposition to plumbers? To customers?

Quartz is not creating enough values to plumbers as Rawlinson approaching to

target consumers directly instead of plumbers.

Its creating values to customers as they are approaching DIY approach though

its expensive.

Q.2 Why is the Quartz shower not selling?

Low pressure & Fluctuation in Temperature

Showers often broken or went wrong Brand awareness was low


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Q-3. Aqulisa spent three years and 5.8 million euro developing the

Quartz. Was the product worth the investment? Is Quartz a niche product

or a mainstream product?

The company invested in a new state-of-the-art testing facility

Had acquired nine patent Had grown its engineering team from 6 to 20

Several additional products were in advanced stages of development

Quartz is a niche product. Because Quartz is targeting a specific group of

people. As Quartz provide the facilities to use without plumber. Still there

are 54% people of U.K market are using plumber. So Quartz is targetingthose people who dont want to use plumber


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Q.4. Aqualisa currently has three brands: Aqualisa, Gainsborough, and

ShowerMax. What is the rationale behind this multiple brand strategy?Does it make sense?

According to my point of view it is not rational behind this multiple brand

strategy

Price premium high of Aqualisa

Discount

So, It doesnt make sense

Q.5. What should Rawlinson do to generate sales momentum for the Quartz

product ? Should he change his marketing to target consumers directly ,

target DIY market, or target developers ? Should he lower the price of

Quartz ? Or Should he do something different altogether ? Rawlinson should generate sales momentum for the Quartz by creating a

sales force

Yes Rawlinson should lower the price

H should change his marketing to target consumers directly, target DIY

market, target developers through branding, restructuring sales force,Offering commission to plumbers


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Appendix


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Reasons behind Aqualisa showers failure

Poor pressure and varying temperature

Showers often broken or went wrong

Hard-to-turn valves leaky seals and worn-outshowers

Consumers were uninformed and they had littleof understanding of product options

Brand awareness was lowTriton the competitor brand had managed tobuild brand awareness among customer.


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Continue

Showrooms-

Process of selection and designing a bathroom solution various showers and bath options were displayed.

Offers installation services by subcontracting

consultants


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Distribution Channels Trade Shops primary customer

Developer

PLUMBER

contractorsCustomers


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DIY (do-it-yourself)Do-it-yourself generally shopped at large retail outlets.

this customer were primarily interested in inexpensive models thatwere easy to install, though the products were unattractive and

bulky.ShowerMaxAqualisa sold to developers under its ShowerMax brand

Was available only through special outlets

Elements of Aquavalve had been redesigned and rebranded for the

ShowerMax product line.

ShowerMax could deliver a high-pressure shower-with Aquavalvetechnology at a significant lower cost

Documents

Aqualisa Quartz.ppt Final