How do people

bath??

Today, lets travel to UK

100% of the population has bathtubs…

60% of the population has showers…

…& one of the leading shower making company is…

Today’s Agenda

Case OverviewNeeds and Wants

Four P’sAqualisa Quartz

Value Propositi onThe Problem

Issue TreeFinal Recommendati on

Conclusion

Marketing Concepts Studied

Marketing Mix

Consumer Behaviour

STP/Brand Positioning

Behaviour Segmentaion Breakdown with Issue Tree

Case Overview

• Aqualisa is a UK shower manufacturer: a strong reputation, a premium brand & great service.

• Aqualisa has invested 5.8 million to develop a breakthrough product (May 2001), the Quartz shower that positions itself superiorly in terms of quality, technology, design and ease of installation.

• Marketing strategy to generate sales momentum for Aqualisa Quartz??

Problems in UK Shower Market

Fluctuations in

temperature

Low Pressure

Archaic Plumbing

Consumers

Consumer did not like!

•Poor Pressure

•Varying Temperature

•Shower broke down or “went wrong”

•Hard-to-turn valves, leaky seals, and worn-out showers. ( Hence, almost half the U.K. shower market consisted of sales of replacement showers)

•Consumers were generally uninformed about showers.

•Little understanding of product options

•Low Brand awareness

•Lump sum prices for consumers

•Unaware about cost break down (labor, material, excavation, etc).

Product Price Place / Distribution PromotionShowers with Various categories.Type of Shower :- Electric Shower- Mixer Shower- Power Shower

PremiumStandardMiddle-Low

Trade ShopDistributorShowroomsDIY Outlets

Advertisement (ex. Brochure)Web

4 P Analysis

Product & Price

Premium Segment Consumer :- Shopped in showrooms- Granted high performance and service- Style determined selection

Do-it-yourselfers Segment :- Shopped at large retail outlets- Interested in inexpensive models that were easy

to install, even though bulky and unattractive- Overwhelming choice : Electric showers- Popular among landlords & apartment dwellers

Standard price Segment :- Emphasize performance and service- Product selection rely on plumber

Pricing Segment

Value Segment :- Concern with convenience and price- Avoid solutions that required any excavation- Product selection rely on plumber- Concerned with convenience and price

Channels of Distribution

•High loyalty to product Plumbers

•73% sales came from plumbers

•Advice a brand for consumer

Plumbers•Preferred

to carry high-end product lines and brands

•Various shower and bath options

•Offered installation services by subcontracting

•The Aqualisa brand was sold in about 25% of them.

Showroom

•Carried products across all available brands

•Their primary customer was the plumber

•The Aqualisa brand was available in 40% of trade shops

Trade Shop

•Offered discount, mass market, do-it-yourself products DIY

•Cheaper and easier to retrofit

•The Gainsborough brand was available in 70% of DIY Sheds

DlY Shed

Plumbers

•Had high technical expertise.•Strong influence on consumers.•Consumers often had to wait six months due to shortage•Charge about € 40 to € 80 per hour.•Plumber’s Electronic Syndrome: Loyal to single brand Distrusted innovation → cause Quartz failure in the market.

Quartz – the Breakthrough Product

Remote Processor

A single hole

drilling

Efficient & Reliable Water

Pressure

“One Touch” Control

The are 2 versions: The Quartz Standard Shower

The Quartz Pumped Shower

With Quartz technology: – Installation time of a half-day– Plumbers were finding that the install

was so straightforward– The Quartz shower provided efficient

and reliable water pressure and temperature – “one touch” control

– the temperature control is automatic

To install the Quartz shower:– the plumber had to identify a physical

space to accommodate the remote processor

– The processor contained the thermostatic mixing valve and pump

– The device could be mounted horizontally, vertically, or on its side, depending on space constraints

VALUE

PLUMBERS

Easy to install

More profitable – able to do more installationTake 0.5 day to install which is only 25% of previous times

Even apprentice can do the installation

CONSUMERS

Efficient and reliable water pressure and temperature

Safe to use for kids and elder peopleOne touch control with red light indicatorMuch easier to install for DIY sector

Excellent design and aesthetics, which increases ownership pride

Quartz Value Proposition

Initial Promotion

• Curtain raisers at major shows like Bathroom Expo: awarded top prize!

• Demonstrations & Press Events• Highly appreciated by the press on its

cleverness and elegant design• Featured on the covers of trade journals

The Problem

Quartz Sale have not met expectation

Low awareness

Plumbers technology syndrome

Expensive

Why sales of quartz is low

People

Unaware

Less Advertisement

Not available in their Market

Aware

Plumber

Reluctance

Electronic

Syndrome

High Charg

es

PerceptionFor

Premium

Market

only

Complicate

d

Durability

Product

Pricing

Highly Priced

Not withstanding Competitors

Major Use

Replacement

Lack of Internal

Support Reveals

weakness in their

own products

Poor trust in

the product

The Issue Tree

Marketing Strategy

Targeting Customer directly

•Target customers with this product and try to build a consumer brand like “Triton.

Targeting DIY

•Try to explore deeply because they were primarily interested in inexpensive models that were easy to install, even though the products were unattractive

Targeting Developers

•This alternative could conceivably be a large volume channel, because of developers on board, they would sell a lot of showers

Target Trade shops and Plumbers

•Plumbers are the major seller and influencer in the Shower product Sales .•Save the advertisement cost

Individual Developers Plumbers

Premium &Standard

DIY Price Sensitive Don’t like innovation

Low brand awareness

Change premium brand perception

Small market Costly to convert

Independent of plumber influence

Large market

Influence plumber

Largest market share

Premium brand recognition

Cheaper Strong influence to

customer

COST

BENEFIT

Cost and Benefit

Target Consumers Directly

Pros • Target consumers directly, essentially a “pull” strategy, and build a

consumer brand. • Will be able to better compete against Triton, the market leader.

Cons• A costly strategy for Aqualisa.• Must be consistent to be effective (out of sight, out of mind).

Target Do-It-Yourselfers

Pros• Gainsborough already successful in this category and Aqualisa

could take advantage of its channels of distributions. • DIY may be willing to pay a premium because of its ease of

installation.

Cons• Expensive consumer advertising.• Must be consistent to be effective (out of sight, out of mind).• Potential cannibalization.

Target Developers

Pros• 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.

Cons• It could take time for the product to get to consumers.• Could be a tough sell due to premium price.• Only represents 15% of the market.

Target Trade Shops and Plumbers

Pros• Plumbers have direct contact with final consumer.• 54% of mixer showers installations are done by plumbers, and

trade shops represent 46.7% of the UK shower market• Plumbers have big influence on decision making process.

Cons• Plumbers distrust innovation.• Plumbers may be difficult to sway and could take time to change

their perception.• Trade shops carry other brands.

Final Recommendation

Target Trade Shops and Plumbers!

Rationale

Quartz sales are expected to reach €184,500,000 (most likely scenario), which is 4 times Aqualisa’s current sales.

Plumbers will become interested because they can become 4 times more productive and 2 times more profitable.

Consumers will become interested because they can get a better product for their money: a premium product with more benefits for less, and will experience less discomfort.

Aqualisa will develop and strengthen its relationship within the distribution channels and establish long-term bonds.

Product awareness and knowledge of its benefits will increase.

Target Trade Shops and Plumbers

36%

8%

47%

9%

UK Shower Market (Total Units Sold, 2000)

Do-It-Yourself Sheds ShowroomsTrade Shops Other (Electrical wholesalers)

Evaluation of Alternatives

CRITERIA

WEIGHT OF CRITERIA

30% 20% 20% 15% 15% 100%

Sales Revenues Potential

Impact on channels

of distributio

n - Relationsh

ip

Total Market share

Product Awarenes

sCosts Weighted

Average

ALTERNATIVES            

Target Trade Shops and Plumbers 8 9 7 8 3 7.25

Target DIY 6 3 5 7 3 4.90

Target Consumers Directly 6 3 5 7 2 4.75

Target Developers 3 4 2 4 6 3.60

Conclusion

•Create an intensive Marketing communicating campaign to target market (consumer) & target influencer (plumbers)

• Focus in premium market shower to increase their sales in Quartz product

• Enhance market research to find what customer wants and needs of shower products really are

Thank You..!

Group 6 – Wikreate

Akshay HiremathNimisha NasaRahul JoshiSaurabh WankhadeSwati Singla