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Overview & Discussion Topic
Topic : Aqualisa Quartz
Type : Shower
Owner : Aqualisa
Country of origin : U.K.
Market share : Number three in the overall
U.K shower market
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Aqualisas type of showerElectric Shower Used the cold water supply
Electronic heating element heated the water to require temperature Convenient for small bathroom A bulky white box in the shower wall The poor water flow of many showers Aqualisa sold electric showers mostly under the Gainsborough brand
Mixer Shower Came in two types: manual and thermostatic Both type blended hot and cold water to create comfortable temperature It was Aqualisas top selling shower Aqua valve 609 was the companys core product in the mixer-shower-valve Was regarded by plumber as being a high-quality, reliability, reliable mixer
shower with state-of-the-art technology
Power Shower A single compact that combined a thermostatic mixer valve and booster The presence of a bulky box on wall Provide up to 18 liters of blended water per unit
Aqualisas strongest selling shower in the power shower category
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Pricing segment of Aqualisas core
productPremiumTypically shopped in showroom
Look for high performance and service
Style determined the customers selection pattern
StandardEmphasis on performance and service
Usually relied on an individual plumber to recommended orselect a product
Value Primarily concerned with convenience and price
Tended to rely on an independent plumber to select a product
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Aqualisas Core Product Offerings
Types of Shower Valve Standard Premium
Electronic Shower Gainsborough Gainsborough Aquastyle
95 155 230
Mixer Shower Aquavalve Aquavalve
390 715
Power Shower Aquastream Aquastream
Manual Thermostatic
480 670
These all are retail prices
ShowerMax was available with high pressure shower-with Aquavalve technology-at asignificant lower cost
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The initial situationInitially, when Rawlinson joined Aqualisa, the situation of
the company washighly profitablequite comfortable with its niche in the markethad 25% net return on sales
was enjoying 5% to 10% growth in a mature market
After joining the Aqualisa, Rawlinson was very worried: other companies were catching up to Aqualisa in terms of
product quality the market was beginning to perceive Aqualisa product as
being overpriced actual service had slipped over the past few years10% of Aqualisa showers hadnt improved in many years
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The development of the Quartz
Shower Valve
At first, the company built a research and
development (R & D) team.The findings of the
researches was:
consumers wanted a shower that looked great
delivered good pressure at stable temperatures
easy to use
showers should not break down or require servicing
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The development of the Quartz
Shower Valve
Second, locate the mechanism remotelyaway from the shower.The breakthrough idea actually came from the brainstorming of theresearch team.
Third, they started using electronics to control the valve remotely.They came up with the idea because the controlling of a mechanismwhich is located remotely was a problem of users.
Fourth, once the product started to take shape, they took the fieldtest. Rawlinson took consumer field test sites, installing showers in
the homes, company personnel and friends to friends.
Finally, after three years of development Aqualisa successfully ableto provide a radically different kind of shower that called Quartz.
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Aqualisa Quartz : A Breakthrough
Aqualisa brought a new kind of shower after threeyears of research & development which cost 5.8million
Time consuming User friendly
Space flexibility
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Marketing Strategy
Targeting Customer Directly
Targeting Do-it-Yourselfers ( DIY)
Targeting Developers
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Q.1. What is the Quartz value proposition to plumbers? To customers?
Quartz is not creating enough values to plumbers as Rawlinson approaching to
target consumers directly instead of plumbers.
Its creating values to customers as they are approaching DIY approach though
its expensive.
Q.2 Why is the Quartz shower not selling?
Low pressure & Fluctuation in Temperature
Showers often broken or went wrong Brand awareness was low
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Q-3. Aqulisa spent three years and 5.8 million euro developing the
Quartz. Was the product worth the investment? Is Quartz a niche product
or a mainstream product?
The company invested in a new state-of-the-art testing facility
Had acquired nine patent Had grown its engineering team from 6 to 20
Several additional products were in advanced stages of development
Quartz is a niche product. Because Quartz is targeting a specific group of
people. As Quartz provide the facilities to use without plumber. Still there
are 54% people of U.K market are using plumber. So Quartz is targetingthose people who dont want to use plumber
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Q.4. Aqualisa currently has three brands: Aqualisa, Gainsborough, and
ShowerMax. What is the rationale behind this multiple brand strategy?Does it make sense?
According to my point of view it is not rational behind this multiple brand
strategy
Price premium high of Aqualisa
Discount
So, It doesnt make sense
Q.5. What should Rawlinson do to generate sales momentum for the Quartz
product ? Should he change his marketing to target consumers directly ,
target DIY market, or target developers ? Should he lower the price of
Quartz ? Or Should he do something different altogether ? Rawlinson should generate sales momentum for the Quartz by creating a
sales force
Yes Rawlinson should lower the price
H should change his marketing to target consumers directly, target DIY
market, target developers through branding, restructuring sales force,Offering commission to plumbers
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Appendix
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Reasons behind Aqualisa showers failure
Poor pressure and varying temperature
Showers often broken or went wrong
Hard-to-turn valves leaky seals and worn-outshowers
Consumers were uninformed and they had littleof understanding of product options
Brand awareness was lowTriton the competitor brand had managed tobuild brand awareness among customer.
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Continue
Showrooms-
Process of selection and designing a bathroom solution various showers and bath options were displayed.
Offers installation services by subcontracting
consultants
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Distribution Channels Trade Shops primary customer
Developer
PLUMBER
contractorsCustomers
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DIY (do-it-yourself)Do-it-yourself generally shopped at large retail outlets.
this customer were primarily interested in inexpensive models thatwere easy to install, though the products were unattractive and
bulky.ShowerMaxAqualisa sold to developers under its ShowerMax brand
Was available only through special outlets
Elements of Aquavalve had been redesigned and rebranded for the
ShowerMax product line.
ShowerMax could deliver a high-pressure shower-with Aquavalvetechnology at a significant lower cost