aqualisa quartz : simply a better shower
TRANSCRIPT
AQUALISA QUARTZ :Simply a Better Shower
Rahadian AnandiantoRidwan RiswandyFiqi DipowicaksonoFelisia Noviana MuktiWulan Cahyo WeningImam Mashari
291103932911039829110407291104112911041629110417
Reg. 44
BACKGROUND
UK Shower Market
Top quality shower
Premium brand
Great service
Strong reputation
1998
Harry Rawlinson Other catching up to Aqualisa in terms of product quality
Market beginning to perceive Aqualisa products as being overpriced (table)
Actual service had slipped over
10% of Aqualisa showers still “went wrong”
Model Segment
Retail Price (€) MSP (€) Cost (€) Margin (€)
Aquastyle Premium 230 155 95 60
Aquavalve 609
Standard 715 380 155 225
Aquavalve Value Value 390 205 75 130
Aquastream Thermostatic
Standard 670 350 175 175
Aquastream Manual Value 480 250 140 110
Quartz Standard
Premium 850 450 175 275
Quartz Pumped
Premium 1080 575 230 345
Aquaforce 1.0/1.5 Bar
Standard 445 230 125 105
Aquaforce 2.0/3.0 Bar
Premium 595 310 175 135
Archaic plumbing was still common in many homes
Showers in the UK were plagued with problem
Gravity fed : cold-water tank / cistern sat in the roof, while a separate boiler and cylinder were needed to store hot water in a nearby airing cupboard
Poor to low water pressure
Frequent fluctuations in pressure
Type of Shower Information
Electric ShowerDoes not require hot water supply
Results in bulky box on the wall
Low flow rate
Mixer Shower
Requires both hot and cold water supply
Requires additional pump to address pressure problems
Installation typically requires excavation of bathroom
Power Shower
Requires both hot and cold water supply
Results in bulky box on the wall
Regarded as less reliable than a mixer-shower and pump combination
Poor pressure
Varying temperature
Shower often broke down
Uninformed about shower
Hard to turn valves, leaky seals, and worn-out showers
Brand awareness was low
Why customers disliked their shower ?
Aqualisa market share ranked it number two in mixing valves and number three in the overall UK shower market.
But, now their sales is decreasing.
Situation Analysis
MARKET SITUATION4P & DISTRIBUTION
PRODUCT• Wide range of product to cater to
the needs of all segment. • The recent introduction great leap
for Aqualisa (quality and cost). • Two models :o Quartz standart (not requiring apump
to boost water pressure)o Quartz premium (including the pump).
Aqualisa offer its product through a wide range of distribution outlet:
Trade shop
Showroom
DIY sheds
Plumbers
Contract outlets.
PLACE
PROMOTION• Good reputation and brand name
in the market• its exixting product high quality
& performance helped it attaint no. 3 position having close to 18 & market share (325.500 units of 1.8 million)
• Adopted several approaches : exebitions, face to face contact with plumbers and advertisement in the mail on Sunday.
-Pricing is higher, the additional features in the shower justify the premium charged. -Good value to end customer product & price-Maintain current price for Quartz -Use the value proposition in targeting customers. -Lowering the price = higher breakeven quantity,
PRICE
Trade Shops Showroom
•Carried products across all available brands
•Primary customer was the plumber
•Aqualisa brand was available in 40% of trade shops
•Their customers are looking for reliable product availability
•High-end product lines and brands
•Various shower and bath options were displayed
•Offered installation services by subcontracting with contractors and independent plumbers
•Aqualisa brand was sold in about 25% of them
•Offered discount
•Mass market
•Do-it-yourself products
•Aqualisa brand was unavailable through this channel
•Gainsborough brand was available in 70% of the approximately 3000 DIY
DIY Sheds
DISTRIBUTION CHANNELS
REACHING COSTUMERS
Plumbers
Standard Value DIY Premium Developers
CHANNELS
MIDDLEMAN
CUSTOMERS
Trade Shop DIY Sheds Showrooms
SEGMENTS & CHANNELS
Distribution Electric Showers Mixer Showers Power Showers
Do-It-Yourself Sheds 550000 80000 20000
Showrooms 55000 70000 20000
Trade Shops 330000 400000 110000
Other (Electrical Wholesalers) 165000 - -
TOTAL 1100000 550000 150000
UK Shower Market (Product Type and Channel)
Installation by Independent
Plumber54%
Commercial Installation
6%
Installation by Showroom
20%
Developer Installation for
New Home Build20%
UK Shower Market (Installation Method)
MARKET SITUATIONSWOT ANALYSIS
- Better water pressure and temperature control- Safer and easier for users (no sticking hand in hot water)- One touch control with light indicator- Easy to install : Junior apprentice can perform install as well- Day and half installation time saving per install (average)- Patent on Aqualisa Quartz design- Strong brand recognition- High quality product : strong engineering in design
- Unfamiliar product to plumbers- Stigma regarding past failures with electronic showers- Bad recent customer service reputation- Sales force focused on servicing existing accounts (90% of time)
S
W
- Current shower systems are bulky- Excavating required for current shower models- Bad water pressure and temperature control with current shower models- Much manual adjusting required with current shower models
- Competition catching-up on quality and technology- Aqualisa Quartz perceived as too expensive- Patent expiration- Cannibalization of existing shower product models
T
O
MARKET SITUATIONCONSUMER PROFILE
Standard :•Tended to emphasize performance and service•Relied on independent plumber to select product
Value :•Concerned with convenience and price•Avoid solution that required any excavation•Relied on independent plumber to select product
Premium : •Typically shopped in showroom•Style determined their selection
Consumer Pricing Segmentation
• Depend on plumber• Easy to use• Easy to install• Perceived high quality
product– High pressure– Stable
temperature– Endurance
Consumer
• Loyal to one product created expertise.
• Reluctant to switch brand paid more for the 2nd visit.
• Distrusted innovation (skepticism to new technology, based on some manufacturer’s failure).
• Familiarize themselves with the service from manufacturer,
Plumber
Developer
• Price sensitive• Did not need to invest
in premium product• Had relationship with
independent plumber• Prefer reliable and
stylish model
Electric Shower
Mixer Shower
Power Shower
Quality
Mar
ket
Sh
are
COMPETITIVE LANDSCAPE
PROBLEM IDENTIFICATION
How Aqualisa increase sales of its product ?
Which marketing strategy choose by Aqualisa ?
THEORY ANALYSIS
Easier to use
High quality product
My plumber recommends this
brand
It’s elegant and bring prestige to me
Its quite expensive (than the other) so it can bring pride to me
Purchase Aqualisa Quartz
LATENT & MANIFEST MOTIVES IN PURCHASE SITUATION
The linkage between behavior and motives that are known and freely admitteThe linkage between behavior and motives that are either unknown or are such that the consumer is reluctant to admit or reveal them
VALUE CREATED FOR CUSTOMER– Quartz is superior to any other
shower on the market
– Outstanding performance, elegant design, easy to use
– Cheaper and easier to install, no wall excavation due
– Great economic benefit
Value Proposition
VALUE CREATED FOR PLUMBERS
– Quartz can be installed 4 times more quickly
– Installation is so simple to let them send apprentices to perform it, which would increase plumber business
– No risk of after-sales problems
Value Proposition
Mean-End Chains Analysis :
How consumer perceive Product attribute.
Their consequences.
What these then reveal about their value.
Explore a hierarchical sequence of :
VALUE End
CONSEQUENCES(functional and psychosocial)
PRODUCT ATTRIBUTE Mean(concrete and abstract)
The Laddering TechniquesCONSUMER
Easy to use Easy to install Good looking design Endurance
Use by all family member Simplicity Elegance &
prestige Low cost
ACCOMPLISHMENT ECONOMY
The Laddering TechniquesPLUMBER
Easy to install Loyal to 1 product
Distrusted to innovation
Trust SimplicityLow cost
ACCOMPLISHMENTECONOMY BELONGING
The Laddering TechniquesDEVELOPER
ECONOMY
Easy to install Prive sensitive Prefer reliable Stylish
EleganceSaving time Low cost
Sold out
SOLUTIONS
QuartzPremium Product
Leading product in innovation and Technology
Maintain as Niche ProductHigh Quality and Performance
Targeting Customer Directly
Targeting ShowroomTargeting Developer
QuartzPremium Product
Targeting Customer Directly
Targeting ShowroomTargeting Developer
QuartzPremium Product
Increase brand awareness and knowledge by ads
Deal with Plumber (influence 73%)
Good services to plumberMake incentive program to
plumber
Targeting Customer Directly
Targeting ShowroomTargeting Developer
Showroom with service Aqualisa provide the plumber bundling with
the productExpand distribution on
showroom
Deal with High Class Developer
Create a new brand “Supermax+”
customizable
QuartzPremium Product
Targeting Customer Directly
Targeting ShowroomTargeting Developer
Deal with High Class Developer
Create a new brand “Supermax+”
customizable
QuartzPremium Product
LESSON LEARNED
It is not easy to make and market products for the first time. There are many things that must be considered by a company in create new product. Not only innovate new technology but also research their customer profiles and ways of marketing. Companies also should not be afraid to pay extra costs to support the marketing of new product. All of these actions is expected to increase the sales of new product.
By support the marketing of its own product, company will gain extra value, which is one of the most important thing from a product : consumer’s brand awareness.
High brand awareness will bring good number of profit and sales. Each company should also pay attention to each type of consumers and customers. Different consumers will need different treatment and service, thats why its important to know their profile before.
THANK YOU