Aqualisa Quartz

Group No. 1
Agenda

1) Situational Analysis

2) Problem Statement

3) Strategic Options

4) Recommendations

2
5Situation
C’s Analysis
Analysis

3
Company

• High reputation (Top Quality & Great Service)

• Had a Premium Brand Image (in minds of
Plumbers/ Developers)
• Ranked #3 in overall UK shower market & #2
in mixing valves
• Launched Quartz - 1st Significant Product
Innovation in years

4
Channels
• DMU- Plumbers
• Aqualisa in 40% of the shops
Tradeshops • Staff want reliable products over technical advice
• Responsible for 47% Sales

• Premium Channel – Bathroom Solutions

• DMU- Consumers in Consultation with Showroom Staff
Showrooms • Aqualisa in 25% of the showrooms
• Responsible for 8% Sales

• Discount Channel
• DMU- Consumers
DIY Sheds • Aqualisa present through Gainsborough (70% of the sheds)
• Responsible for 36% Sales

5
Customers

• Low pressure, Temperature fluctuations & Shower breakdown

• Low brand awareness
Consumers • Standard & Value followed Plumbers recommendations
• DIY Segment shopped in DIY Sheds; inexpensive products

• Not Worried - Pressure problems ;

• Aesthetic Appeal - Reliable, Stylish products
• Price sensitive; except for Luxury Builders
Developers • Relationship -independent plumbers
• Separate Branding (ShowerMax) – Lower cost & Optimized

•High switching costs

•Highly influential; Primary customer of trade shops
•Scarcity of Plumbers
Plumbers
•Innovation skeptics

6
Competition
• Triton UK Market Share
• Highest marketOthers share – 30%
• Consumer Brand 20% Triton
30%
• Mainly focused in Electric Showers (88% of
sales)Ideal Standard
3%

• Mira Masco

• 2 Highest Market
nd 7%

• MainlyAqualisa
focused in Mixer Showers (51% of
sales) 7% Mira

• #1 in mixer Gainsborough
shower: the main target
22%

11%
market for Aqualisa
7
Context
• In UK, almost everyone had a bathtub, only 60% had
showers

• Archaic Plumbing

• 2 Problems-
• Low Pressure
• Fluctuations in Temperatures

• Innovation is rare in shower production

• Product Segments competed in

• Electric Shower Valve (61%)
• Mixer Shower Valve (31%)
• Power Shower Valve (8%)

8
Aqualisa Product Portfolio
Brands Segment Type of shower Retail Price Margin
(€) (€)
Gainsborough Value Electric 95
Aquavalve Value Mixer 390 130
Aquastream Value Power 480 110
Manual
Gainsborough Standard Electric 165
Aquavalve 609 Standard Mixer 715 225
Aquatsream Standard Power 670 175
Thermostatic
Aquaforce 1.0/1.5 Standard Booster Pump 445 105
Bar
Aquaforce 2.0/3.0 Premium Booster Pump 595 305
Bar
Aquatsyle Premium Electric 230 60
Quartz Standard Premium Innovation 850 275
Quartz Pumped Premium Innovation 1080 345 9
Customer Insights

End
Plumber
Consumer
Great looks Easy to install

Good pressure delivery

at stable temperatures
Breakdown proof
Easy to use

No servicing
Breakdown proof requirements

10
 Low
High

Average
Price

Pressure
Control

Temperature
fluctuation
control

Safety Current Shower Valves

Ease of
Maintenance

Ease of
Installation

Ease of Use
Strategy Canvas: Quartz Vs Current Shower Valves

Need of
excavation

Aesthetics

Temperature
meter
11
Quartz
Internal analysis Weakness
a. Low sales of Quartz
b. Service Standards
going down
c. 10% of product went
Strength wrong (Not improving )
a. Well known in UK
Opportunity
b. Top Quality
Showers a. Higher growth
c. Premium Brand
SWOT prospects (40%
household do not
e. Great Service have showers)
f. Superior
technology (Quartz) Threats
a. Customer
Perception of being
Over Priced
b. Competitors
catching up
12
Problem Statement

Lack of brand awareness among the customers

(plumbers and end consumers).
• This has resulted in non materialization of the sales

• Showroom channel accounts for only 20%.

13
Value Generation
Aquavalve 609

Cost of Aqua valve 609 € 715

Cost of Aqua force pump € 445 (average)
2 days work expense € 800 (assumed)
Total cost € 1960

Quartz
• Easy to use,
• Stylish,
Cost of Quartz € 1080 • Overall saving
Cost of Aqua force pump - of €680.
Half days work expense € 200 (assumed)
Total cost € 1280

14
Existing Marketing Strategy

• Pros:
Targeting • Can build consumer brand
Consumers • Cons:
Directly • High advertising budget (€3-4m over
2yrs)

• Pros:
Targeting • Easy to install
DIY • Cons:
• Risk of losing premium brand tag

15
Existing Marketing Strategy

• Pros:
• Increase in customer volume
Targeting • Will force plumbers to get familiar with
Developers Quartz
• Cons:
• Reluctant to buy, as Aqualisa products
are perceived as a high priced products

• Pros:
• Plumbers Influences 20% of decisions
Targeting • 28% customer takes advice
Plumbers • 25% selects type and brand
• Cons:
• Reluctant to use electronic showers 16
Recommendations

• To follow differentiation strategy with a focus

on short term and long term

• Short term:
– Educate plumbers:
• Identify and educate opinion leaders
– Showrooms:
• Quartz will appeal to customers who requires high end
product
– Developers:
• Quartz will help to high end customers

17
Recommendations
• Long term:
– Plumbers:
• Develop the plumber community
– Invest in large scale consumer campaign
• To build the brand.

18
Questions

19