Super8!
• Cyrus Feyz• Uthman Khawaja• Xinyu (Olivia) Li• Justin Potts
• Ideen Razzaghi• Dianhong Wang• Yang Zhang• Liang Zhu
Company Profile“Shower Solutions” company, in 2nd placeCurrently involved in different consumer market
segmentsValueStandardPremium consumers
Different Channels of Distribution: Trade Shops Showrooms DIY
Plumbers!
Core Products
GainsboroughRetail: €95-155
AquavalveRetail: €390-715
AquastreamRetail: €480-670
AquastyleRetail: €230
Aqualisa Quartz• Digital
Technology• Competes in
Mixer and Power market segments
Key Issues
Slow Sales
Time Sensitivity Problem
Segments & Channels
Channels
Middleman
Customer
Reaching Customers
Trade Shops
Plumbers
Standard Value
DIY Sheds
DIY
Showrooms
Premium Developers
Shower Selection Process
Consumer selects type & brand of shower alone
27%
Plumber selects type & brand alone
25%
Consumer takes plumber's advice on
type & brand28%
Plumber influences type of shower, not
brand20%
Mixer Showers
Quartz AttributesCustomer segments
Differentiation factors
Price match
Hi-end product
Easy to install
Looks Great Reliable
Value customers
Total Cost üConvenience ü
Standard customers
Performance ü ü üService ü
Premium customers Style ü ü ü
DIY customers
Low priceEasy to install ü
Developers
Reliable üNice Looking üFlexibilityPrice Sensitivity
Quartz Product Analysis
€1,995
€1,670
€1,355
€1,080
€990€830€800€640€550€285
€2,590 €2,440
€1,950 €1,800
€1,440
€1,240
€1,170
€1,010
€390
€155€95
Premium Mixer/Boosted
Quartz Power
Quartz Standard
DIY Mixer
DIY Electric
Standard Mixer
Value Mixer
Standard Power
Value Power
Standard Mixer/Boosted
Developers
Suggested Alternatives1) Market as a DIY
Brand
Partner with B&Q and focus on ease of
installation2) Market
as a Developer
brand
For new home builds.
3) Market as
consumer brand
Develop consumer awareness via
advertising4) Market
to plumbers
Market push to influence consumer
demand
Pros and Cons of AlternativesPros Cons
1) Market as DIY
•Ease of install appeals•Channel partners
•Price mismatch•Damage brand
2) Market to Developers
•Few developers•High volume
•Long lead times•Price mismatch
3) Consumer Awareness
•Builds brand•Wide coverage
•Awareness fades•Not decision makers•Costly
4) Target Plumbers
•Key influencer •For large segments•That values Quartz•Price match
•Risk aversion•Resistance to change
Market AnalysisSegment
Market Potential
High Quartz Target
Low Quartz Target
(By Installation) Sales
% Market Sales
% Market
Consumer Chosen Value 24,786 18,000 73% 9,000 36%Consumer Chosen Std 43,740 32,000 73% 16,000 37% Total Consumer 68,526 50,000 73% 25,000 36%Plumber Influenced Value 67,014 18,000 27% 9,000 13%Plumber Influenced Std 118,260 32,000 27% 16,000 14% Total Plumber 185,274 50,000 27% 25,000 13% Total Value & Std 253,800 50,000 20% 25,000 10%Developer 94,000 50,000 53% 25,000 27%Commercial 28,200 50,000 177% 25,000 89%Showroom Premium 94,000 50,000 53% 25,000 27%DIY 80,000 50,000 63% 25,000 31% Grand Total 550,000
Decision Matrix
Issue WeightTarget Consumers
Plumbers DeveloperShowroom DIY Media
Campaign
Sales Volume 0.6 3 2 4 5 1
ROI 0.4 4 3 1 5 2
Total 1 3.4 2.4 2.8 5.0 1.4
JustificationValue/Standard segments can support goals.
100 to 200 units / dayQuartz total price fits these segments.Quartz features fit these segments
Convenience, performance, servicePlumbers influence Value & Standard segments.Plumber concerns can be over-come.
Electronics, reluctance to change, risk aversionA relationship with a plumber lasts.
Consumer awareness declines over time. Previous campaign didn’t follow AIDA model.
AIDA Model
Awareness
•Direct Mail Campaign
Interest
•Product Warranty
•Installation Warranty
Desire
•Profit potential
Action
•Free-trial
•Follow -up
Phase 1: Preparation phaseCampaign Management Team
Initialize the launch phaseFollow up on results , report to Rawlinson
Hire new sales force (three)Acquire plumber database (Mail,
Phone, Brand,…)Brochure Development and design
Phase 2: Campaign launchLoyal Plumbers:
Contact the plumber, send the brochure and free trial.
Follow up with them about the installation process and their opinions.
Regular PlumbersSend the brochure, call the ensure it’s delivered .Periodic follow ups.
Two phases:
I. Phase 1: Preparation phaseII. Phase 2: Campaign launch
Implementation Plan
Implementation Timeline2001 2002
Actions Oct Nov
Dec Jan Feb Mar
Apr May
Jun Jul Aug
Sep
Phase I
Management Team
Hire Sales Force
Acquire database
Developing Brochure
Phase II
Sending Brochures
Follow ups
Calculations OptimisticPessimisti
cMost Likely
# of plumbers offered 4000 4000 4000% of plumbers accepting 70% 30% 50%
# of plumbers to accept 2800 1200 2000Plumber installs/year (avg) 50 40 45% Plumbers working for customers 54% 54% 54%
Number of customer plumbing install/year 27 22 24
% where plumber influences choice 73% 73% 73%
Influenced Customers per plumber 20 16 18
New Quartz installations 55,188 9,461 35,478
ROI Analysis
ROI Analysis cont.
Financial Impact: OptimisticPessimisti
cMost Likely
Profit generated by additional sales € 17,108,280
€ 2,932,848
€ 10,998,180
Fixed Costs € 110,000 € 210,000 € 160,000
Variable Costs € 751,800 € 427,800 € 557,000
Total Costs € 861,800 € 637,800 € 717,000 Gross Profit from program € 16,246,480
€ 2,295,048
€ 10,281,180
Contingency PlanContinuous and real-time monitoring – will
help to evaluate degree of successIncrease rate of follow up contact to
plumbersIncrease the number of plumbers targetedRevise materials and/or offering
…simply a better shower
THANK YOU
Cost AllocationVariable Costs: Optimistic Pessimistic Most LikelyDirect Mail program (database & mailout) € 20 € 60 € 30 Cost of One free shower unit € 203 € 203 € 203 Probability of Installation Warranty 5% 20% 5%Redemption of Installation Warranty € 16 € 64 € 16 Shipping € 30 € 30 € 30 Cost of program per plumber € 269 € 357 € 279
Fixed Costs:Internal Sales (follow ups): € 40,000 € 80,000 € 60,000 Internal Sales (lead generation): € 40,000 € 80,000 € 60,000 Materials design: € 30,000 € 50,000 € 40,000 Fixed Costs of Program: € 110,000 € 210,000 € 160,000
Customer SegmentationHow it was done ... 470,000 installs (Exhibit 6, less DIY of
80,000)54% of installs by indy plumber = 253,800
(Exhibit 5)73% influenced by plumbers = 185,274
(Exhibit 4)Ratio of Aqualisa Value : Standard product
sales36% Value : 64% Standard (Sales from Exhibit
2)67,014 plumber influenced “Value” showers118,260 plumber influenced “Standard”
showers
Campaign MonitoringFollow-up contact is made with plumbers to monitor the
effectiveness of the program. Are plumbers aware of the program? Are the materials anticipating and answering plumber’s questions? Are plumbers indicating interest? If not, what factors are inhibiting plumbers? Do plumbers indicate a desire to try Quartz? If not, what factors are inhibiting desire? Are plumbers planning on or have taken action to acquire Quartz and install
it? What factors are holding them back? Do they have interested customers? Would they like their Quartz product shipped now?
Program effectiveness is evaluated and changes made, if required Are additional contacts resulting in improved uptake and conversion? Do materials need revision? Should additional plumbers be enrolled in the program to achieve goals? Is the program in need of radical revision?