Aqualisa Quartz

Simply A Better Shower

https://
www.youtube.com/watch?v=nUctDGNxtUY&spfreload=5

Introduction to UK
Shower market
U.K. Shower market in late 1990s was
plagued with problems.
Only 60% of U.K. homes had showers.
Archaic plumbing was used most
commonly which had a cold water tank
on the roof, a separate boiler and
cylinder to store hot water.
Problems:
Low pressure
Fluctuations in temperature

Why People Disliked

Showers
Poor
pressure

Varying
Temperatur
e

Showers
often broke
down

Brand
Awareness
very low

Channels of Distribution
TRADE SHOPS

SHOWROOMS

Carried products
of all brands.

High-end
products.

Primary
CustomerPlumbers

Showroom
consultants
helped their
customers choose
a product.

Plumbers worked
for developers,
showrooms,
contractors or
directly to
customers.
Aqualisa was
available in 40%
of the trade
shops.

No inventory was
held in the
location.
Aqualisa brand
was sold in 25%
of showrooms in
UK.

DIY SHEDS

Offered discounts,
mass market, do
it yourself
products
Electric showers
led sales in this
channel as they
were cheaper and
easier to retrofit.
Aqualisa was
unavailable but its
Gainsborough
brand was
available in 70%
of the DIY outlets
in UK.

UK Shower Market By
Installation Method(mixer
Showers Only)
20%
20%

6%
54%

By
Independent
Plumber
Developer
installation
By Showroom
Commercial
installation

UK Shower Market, by Product Type

and Channel (Total units sold, 2000)

Quartz
The
The

Versions:
Quartz Standard Shower
Quartz Pumped Shower

Benefits:
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
Installation time of half a day
Straightforward installation process
Provided efficient and reliable water pressure
Temperature one touch Control
Only single hole in the roof needed

4Ps of Aqualisa Quartz

PRODUCT
Quartz was very superior to the
electric showers being offered.
Provided efficient & reliable
water pressure.
One touch control
Automatic temperature control.
Easier installation.
Two models :
Quartz standard (not requiring a
pump to boost water pressure)
Quartz premium (including the
pump).

PLACE
Aqualisa offered its
products through a
wide
range
of
distribution
channels:
1.Trade shops
2.Showrooms
3.DIY Sheds

4Ps of Aqualisa Quartz

(contd.)
PRICE
Priced higher.
The additional features in
the shower justify the
premium charged.

PROMOTION
Sales force spends 90% of
the time servicing existing
customers.
They contacted the
plumbers face to face to
introduce the product.
Print advertisement
campaign.

Product Level
Potential
Product
Augmented
Product
Expected
Product

Body Jet
One Touch Control
Automatic temperature
control
Slave remote control
Easy Installation
Efficient & Reliable Water
Pressure
No temperature fluctuations

Basic Product

Electronic Shower

Core Product

Shower

SWOT Analysis

Safer & Easier for users

Better water pressure and
temperature control
One touch control with light indicator
Easy to install
Day and half installation time saving
per install
Nine patents on Aqualisa Quartz
design
Strong brand recognition
High quality product: strong
engineering

Unfamiliar product to plumbers

Stigma of past failures with electronic
showers
Bad recent customer service reputation
Sales force focused on servicing existing

40% of UK homes did not have shower

Current shower systems are bulky
Excavating required for current models
Bad water pressure in showers
Fluctuating temperature in current shower
model
Much manual adjustment required
Targeting plumbers, who influence 73% of end
consumers

Competition catching-up on quality and

technology
Quartz was perceived as too expensive
Plumbers distrust innovation and are brand
loyal
Dependency of consumer to the plumbers

Customers
Premium
Shopped in the showrooms
Expected high performance and service
Preferred stylish products
Standard
Emphasized performance and service
Relied on plumbers to select a product for them

Value
Concerned with convenience an price
Avoid solutions involving excavations
Relied on plumbers to select a product

Developers
Preferred reliable nice looking products that
could work in multiple settings
Price sensitive
Had relationships with individual plumbers

Do-It-Yourself
Interested in models that were easy to install
The products were usually cheap, bulky and
unattractive
Electric showers were the preferred choice in this
segment because they could be adapted to all
water systems and could be installed in a day

Different Needs Of Customers

Consistent and high pressure

Stable temperature
Endurance
Ease of use
Ease of installation
Visibly pleasing

Competitive
Landscape

The Problem
Aqualisa Quartz sales did not meet expectations
The competition was expected to match the Quartz advanced
technology within a couple of years.
Triton was the only company with an established brand awareness.
Plumbers distrusted innovation and were brand-loyal
Aqualisa Quartz was viewed and perceived as overpriced
A shift in marketing strategy was required to generate sales
momentum

Possible Solutions
Target
Custome
rs
Directly

Target
Trade
Shops &
Plumber
s

Target
Do-ItYourselfe
rs

Target
Develop
ers

Target Customers Directly

Pros
Target end-users directly to create a powerful customer
brand
This would enable them to compete better against Triton
Cons
Not a cost effective strategy for Aqualisa
Must be consistent to be effective

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
Potential cannibalization

Target Trade Shops & Plumbers

Pros
Plumbers had direct contact with final consumers, had strong
influence over purchase decision and made 54% of the
market
Trade shops represented 46.7% of the UK shower market
Cons
Plumbers were wary of innovative and unfamiliar products, it
would take time to sway them
Trade shops stocked many other more popular brands

Target Developers

Pros
Developers simplified sales for Aqualisa due to large volumes and
low cost
Plumbers would eventually be familiarized with the product
Cons
Going through developers would mean it would take longer for
Aqualisa to reach customers, as developers were only 15% of the
market
Premium price would be make Aqualisa a tough sell

Value Creation
Superiority of the brand- Large market
share
Outstanding performance, elegant design
Easier to install- simplicity
No risk of after sales problems
Easy and safe to use Simple(one touch
control) and can be used by all family
members
Great economic benefits

Value Creation for Customers

Easy to
use:
by all
family
members
and
simplicity

Easy to
install:
simplicity
and low
costs
involved

Lookssense of
prestige
and
elegance

ECONOMIC BENEFITS

Endurance
: low
maintenac
e costs

Value Creation for Plumbers

Easy to
install:
Low Cost
&
Simplicity

ECONOMY

Loyal :
Trust

BELONGING

No
Innovation
:
Simplicity

ACCOMPLISHMEN

Value Creation for Developers

Installati
on: time
saving &
low cost

Price
Sensitive
: Low
cost

Reliabilit
y: Low
cost

ECONOMY

Design:
Sold out

Recommendations
Expand distribution on showrooms
Educate plumbers:
Identify and educate plumbers regarding the new
innovation and usability of the products.
Help in forming a plumbing community which will
increase the loyalty factor in the product
Developers:
Reach out to high end customers, make contracts and
provide incentives
Invest in consumer campaigns:
Awareness about the simplicity of the products and
thereby improve the brand.

Thank You