Aqualisa quartz - Case study (STP)

Raoul Gauthier K1560919

Sales presentation for the case product( A q u a l i sa Q u a r t z )

Ass ignment 2

2Shower Industry Overview

60% UK homes had Shower

100% UK homes had Bathtub

44%U.K. market sales come from replacement shower sales

27%Consumers are choosing the brand and the type alone

Units sold, 2000 , UK

Electric

Mixer

Power

UK Market shareTritonMiraGainsboroughAqualisaMascoIdeal StandardHealtrae SadiaBristanGrohe

Weaknesses/ ThreatsThe bathroom market is not heavily brand loyal, and so competitors cannot rely on repeat custom. The use of bathroom facilities is responsible for high levels of waste water, giving the sector a poor reputation in terms of its eco-friendly credentials.

Strength/ OpportunitiesShower facilities are one of the fastest growing segments in the market, with rising consumer demand because of the aging population and because there are considered more hygienic and more refreshing than bathing . As well as being more eco-friendly than bath. The rising UK population creates a constant demand for new housing developments, both in the public and private sectors, thus creating constant demand for

Overview Segmentation Targeting Positioning Features Analysis Comparison Conclusion

UK shower market had (has?) a big potential, since only 60 percent haven’t had a shower. Many homes still had archaic, gravity based plumbing and cold water tank or cistern on the roof. Separate boiler and cylinder were needed to store hot water in a nearby airing cupboard. Sound like a good opportunity.

Aqualisa’s reputation has always been strong in the UK. It is perceived as a top quality shower, a premium brand with product quality.

3Market Segments

Premium Segment

Showrooms

Style

Consumer

Trade Shops

Standard Price

Performance & Service

Plumber

Value SegmentConsumers in this segment liked to

avoid any excavation and relied on a independent plumber.

Trade Shops

Convenience & Price

Plumber

Product Determinant

Decision Maker

ShoppingChannel

Do-it-self

DIY ShedsPrice & Ease of Instalation

Consumer

Property DeveloperLuxury Builder


Trade ShopsPrice & Reliability

Consumer

ShowroomsNice looking

Consumer

Consumers in the premium segment typically shop in showrooms, often placing greater importance on style

than performance and service.

They often rely on independent plumbers to recommend them a

product according to its performance.

Subgroup

4Market Segment Targeted

1

2

3Standard Price SectorCustomers of Aqualiza Quartz are

looking for a well design product with high performance. Going in this

branch, it is making premium shower accessible to everybody.

The previous premium targeting of the Aqualiza Quartz was wrong because it has targeted everyone with a high price instead of be really focus on a little category of people. Given that the market has evolved, it would be preferable to change the targeting as well as the positioning.


Standard

The cost of production is too high for going on the value segment.

Plumbers have the biggest potential for the brand given them influence on standard price sector customers (73% relied on them to recommend or select a product).

Trade shops is the biggest channel of distribution, it represents 46% of the total units sold in UK. Aqualiza should approach the right target instead have followed a intensive market strategy which had confused the consumer.

£500-£650

The eco-‐mode of the Aqualisa Quartz will add

some value to the shower because of the bad reputation of the market for the waste of water caused by baths

and showers. Nevertheless the eco-‐friendly characteristic is

not unique to the standard segment.

5Segment Competition

Low Quality

High Quality

Low Price High Price

Standard price PremiumValue


Competitors selling digital showers

1

2

3

4

Mira is selling very good digital showers called “Mira PlatinumCeiling Fed” at a price of £765. It is our main competitor in the segment.

Triton is one of the leader of the shower market who is selling entry-level digital showers called “Satellites Digital Mixer Shower” at a price of £444 . Triton is selling to DIY retailers.

Bristan is selling a product with few functionalities called “Artisan Digital Electronic” at a price of £400. It is not considerate as a competitor due to of the price and the low quality of the product. Nevertheless it is interesting to see the difference between a high quality product and a low quality one.

Grohe is fitting on a different market with digital shower above £1000.

Galaxy is a very small company with only one digital shower in its catalogue. We are not considering Galaxy as a competitor due to its low market share comparted with Triton, Mira and Aqualisa.

5

6Aqualisa Quartz Positioning

Low Quality

High Quality

Low Price High Price

Standard pricePremiumValue

The Aqualisa Quartz, the eco-friendly digital shower will be positioned as premium lasting digital showers easy to install, technologically innovative and affordable for all standard shoppers.

The price is very important to be able to position the brand differently than the

other competitors. The price will be less expensive than Mira and higher than

Triton.

Price RangePeople who have a limited knowledge of the product and who are relied on a

independent plumber to chose a product not too expensive but performant.

Target CustomersAqualisa is known for its high quality showers. The Aqualisa Quartz could

have been a shower from the premium segment but for strategic reasons it will be a standard shower of high quality.

Quality


7Aqualisa Features & BenefitsFeatures Paired Benefits

Eco-‐spray In a world where the global warming is in the midst of preoccupations, this spray will reduce you ecological foot print of 25% and your spending on water as well.

Warm-‐up mode This mode enable theuser to avoid wasting water by keeping the water running before going in the shower.

Boost option The choice of en enhanced flow, if desired.

One touch start/stop control (Aqualisa, 2016) This enables you to start your shower at the perfect temperature instead of adjusting it, you get the same sensitive shower experience everyday.

Digital diverter Technology (Aqualisa, 2016) It enables the customer to chose between both outlets before get in the shower.

LED display (Aqualisa, 2016) It lets you know when the selected temperature has been reach without having to dip yourhand under the shower water.

Remote control compatible (Aqualisa, 2016) From outside, within ten meters, you can start to preheat your shower to the desired temperature without to step in.

4 sprays (Aqualisa, 2016) It gives you the opportunity to find the spray which suits your moods and your needs.

5 Years guaranty (Aqualisa, 2016) A proof of the reliability and the quality of the shower. In this way customers are insured that every issues relating to the shower will be dealt with at no added cost.

Easy to install Within an half day customer will be able to enjoy its new shower without being disturbed during two long days of work.

All plumbing system friendly There is no need for drastic change in the plumbing system, saving time and money, to enjoy all benefits of the Aqualisa Quartz shower.


8Features Mira Platinum Ceiling

Fed -‐ £765,6Triton Satelite Digital Mixer Shower -‐ £444

Bristan Artisan Digital Electronic -‐ £400

Eco Spray ✓ ✓ ✓Warm-‐up mode ✓✓ ✓ ✖Boost option ✖ ✖ ✖Start/Stop Button ✓ ✓ ✓Digital diverter Technology ✖ ✖ ✖Programmable functions ✓✓✓ ✓ ✖Wireless controller ✓✓ ✓ ✓Sprays Pattern ✓✓✓✓ ✓✓✓✓✓ ✓✓✓✓5 years guaranty ✓ ✓ ✓Quick, flexible and easy to install ✓ ✓ ✓Plumbing system ✓✓ ✓ ✓


✓ YES✗NO#✓ = Quality level

9


Features Paired Benefits Paired Benefits Paired Benefits

Eco Spray O O 0Warm-‐up mode O O -‐Boost option -‐ -‐ -‐Start/Stop Button O O ODigital diverter Technology -‐ -‐ -‐Programmable functions + -‐ -‐Wireless controller O O OSprays Pattern = + O5 years guaranty O O OQuick, flexible and easy to install O O OPlumbing system O -‐ -‐

Mira Platinum Triton Satelite BristanArtisan

10Recommendation, Equivalence & Objection Statements Recommendation Statement (+)

In terms of these four showers, the Aqualisa Quartz has an impressive technological functionality and is particularly eco-‐responsible. The LED display present on the wireless remote which is indicating when the water has reached the perfect temperature is particularly beneficial as it enables customers to wait until the shower is ready before getting in, or testing the water which can often burn or be particularly cold. Furthermore the digital divert technology enables you to select your desired outlet of water flow before entering the cubicle, thanks to the well designed remote control working up to 10m away, increasing efficiency. Furthermore the Quartz has a boost function which can enhance water flow, this gives customers the choiceof a more powerful shower where desired. Last but not least, the warm-‐up system offered by the Aqualiza Quartz enables you to preheat your shower without leaving the water running which will reduce your daily water consumption and so your ecological footprint.

EquivalenceStatement (o)The quartz has some similarities as its competitors on a number of features because all of them are selling digital showers. The thermostatic stability is one of the main resemblances, this means there is no variation in temperature like it was the case for older UK shower systems, it also means no more worries for parents about the temperature of their child’s shower. All shower are offering a remote control compatibility that allows to manage the shower from a distance of 10m. All four brands have understand the need to have a start/stop button and a eco-‐spray functionality on their product to respond to customer needs and to follow the actual trends toward the environment. Finally all showers have a five year guarantee which is the prove that digital showers have been made to last longer than other types of shower and both are easy to install, meaning that our users won’t need to be disturbed by the noise (due to a lasting installation) during 2 long days because the installation of those products will be made in less than an half one.

Objection Statements (-‐)One reproach that could be made is that the Triton shower has 5 spray options whereas the Quartz has only 4. Nevertheless the quality of the shower experience offered by the Aqualisa Quartz will be superior thanks to its boost button and its rain shower head. An other criticize that could occur, is the fact that the Mira’s remote offers more features ( e.g. digital display showing the hour). However, the Aqualisa’s remote has been kept simple of use and well design to make its use of energy minor and its handling intuitive.


11Promotional Tools

Business Cards

Sales Brochures

Video on Tablet

Business cards are required to be as professional as possible and to give your contact details easily 500 business cards è £17

Sales brochures are very useful to assist the sales representative during a sale, it helps the target to visualize what the representative

is talking about. 50 Booklets è £40

Video is a good tool to support a presentation and arguments. It is also good way to address to two of customer’s 5 senses. Important to keep in mind that

some people are visual, other are more kinaesthetic and other are more auditory.

1 Video è £75 1 Tablet è £120

Shower Sample A sample is useful to convince kinaesthetic people who need to touch products.

1 Sample è FREE

12

Conclusion

SegmentationThe segmentation has been made according to the three types of shower available

on the market

TargetingThe Aqualisa Quartz has to

compete on the standard shower segment. Trade

shops are the appropriate channel of distribution.

PositionningThe Aqualisa Quartz will

be positioned has a premium shower available to standard shower willing

experienced a daily agreeable shower.

1Competitors Review The Aqualisa Quartzhas to face 2 competitors : Mira and Triton. Nevertheless,Triton is selling its product on an other market’s segment even if it is sellingdigital showers, and this reduces the risk of comparison. Mira is our maincompetitor due to the similarity between the products.

2Advantages of the Aqualisa QuartzThe digital converter and the boost button available on the Quartz are the twoadvantages which could be emphasized during a sale meeting with customerswhen a comparison is madewith the Mira digital shower.

The Aqualisa’s launch in the early 20’s has been a big failure because of the bad STP and the inefficient sales strategy. To deal with those mistakes Aqualisa has to rethink its strategy for the Quartz, means start everything over again. That is why my advice is to change of segment and this time be focus on the right distribution channel instead

of being too dispersed which is time and money consuming.


13ReferencesAqualisa (2016) Features & Price Aqualisa Quartz digital shower. Available at: http://www.aqualisa.co.uk/showers (Accessed: 15 march 2016)

Bristan (2016) Features & Price BristanArtisan Digital Electronic. Available at: http://www.bristan.com (Accessed: 15 march 2016)

Galaxy (2016) Price GRS1 digital shower. Available at: https://www.galaxy-‐showers.com(Accessed: 15 march 2016)

Instantprint (2016) Booklets price. Available at: https://www.instantprint.co.uk/booklets (Accessed: 29 march 2016)

Key Note (2015) ‘Bath & Sanitarywaremarket report’. Available at: http://www.keynote.co.uk (Accessed: 15 march 2016)

London DataStore (2015) ‘London Housing Market Report’. Available at: http://data.london.gov.uk/housingmarket (Accessed: 15 march 2016)

London DataStore (2014) ‘Population projections’. Available at: http://data.london.gov.uk/demography/population-‐projections (Accessed: 1 march 2015)

Mira (2016) Features & Price Mira Platinum Ceiling digital shower. Available at: http://www.mirashowers.co.uk (Accessed: 15 march 2016)

O2 (2016) Ipad Air 2 price. Available at: https://www.o2.co.uk/shop/tablets/apple/ipad-‐air-‐2 (Accessed: 29 march 2016)

Triton (2016) Features & Price Triton Satelite Digital Mixer Shower. Available at: https://www.tritonshowers.co.uk (Accessed: 15 march 2016)

Vistaprint (2016) Business cards price. Available at: http://www.vistaprint.co.uk (Accessed: 29 march 2016)


Marketing

Aqualisa quartz - Case study (STP)