1.James Husted Scott Sanders Carter Bibby Adrian GilmoreAqualisa Quartz

2. Aqualisa Quartz AdAny Questions? 3. Background Aqualisa Archaic PlumbingUK Market 60% homes need for change premium overpriced? 4. Current Deficiencies Water Pressure Required pump to be installedWater Temperature Inconsistent due to old plumbingPoor Ease of Installation Usually 2 days; heavy excavationUnattractive Design Tended to be bulky and unattractive 5. The Industry1electric shower2mixer shower3power showerDoes not require hot water supplyRequires both hot and cold water supplyRequires both hot and cold water supplyResults in bulky box on the wallRequires additional pump to address pressure problemsResults in bulky box on the wallLow flow rateAqualisa price ranges from 95-230Installation typically requires excavation of bathroom Aqualisa price ranges from 390-750Regarded as less reliable than a mixer shower and pump combination Aqualisa price ranges from 480-670 6. Distribution Channels Trade ShopsShowroomsDo-It-Yourself 7. Customer Segments DevelopersPlumbersGeneral Customers DIY 8. Aqualisa QuartzIntroducing . . . 9. Ease of useAqualisa Quartz Goals Easy to installGreat looksAqualisa QuartzStable temperatureGood water pressure 10. The Initial Release Low Sales Plumbers wary of innovation 11. The Central Problems Not selling enough product to break the niche marketProduct awareness and perception Plumber bias 12. Potential Solutions Ta r ge t i ng C o n s u me r s Pros D i r e c t l yKnow what to expect Easier to get to Know what it will cost Easier to convince because less educated market If convinced, will request that plumbers 13. Potential Solutions Ta r ge t i ng C o n s u me r s Cons D i r e c t l y Not getting directly to the problem Lifetime value is much lower; one-time to twotime purchase High risk/High reward when the company is already healthy 14. Potential Solutions Targeting Do-It-Yourselfers Pros Easy to install Value much higher than current electric showers that dominated the market Possibly charge a premium Differentiated from 15. Potential Solutions Targeting Do-It-Yourselfers Cons Get stuck in that market Small market for type of shower Low profitability Low total sales 16. Potential Solutions Targeting Developers Pros Large-volume channel Force plumbers to get familiar with product Dependable 17. Potential Solutions Targeting Developers Cons Lead time Long lag before sales Tough sell to developers Dont usually buy premium products Dont want to discount price for developers Higher cost of failure 18. Other Options Targeting Plumbers Directly Pros Most influence in the market More impactful word-ofmouth Lifetime potential for sales 19. Other Options Targeting Plumbers Directly Cons Difficult and expensive to market to Already biased against electric showers Reticent/resistant to change 20. Consumer Brand Awareness Commercials Small/Medium scale Viral mediaOur Solution . . . Showrooms Low cost/High benefitsPlumber Brand Awareness free trial 1 million in free give away (5,000 units) 1.2 million on total campaign Send out info and option to call-in and get free trial increase in trade show advertising 0.5 million 21. Whats a Plumber Worth? 22. Whats a Quartz Worth? 23. Warranty Cost 24. Lifetime Added Value to the Plumber 25. Any Questions? Thank You!