AQUALISA QUARTZ CASE ANAYSIS

SUBMITTED BY:
AAYUSHI BHANDARI PGFA1902
 UK Shower market
• Only 60% people had showers.
• Old plumping techniques-gravity fed
• Low pressure
• Fluctuations in temperature

Market was split into 3 types of

shower
• Electric shower
• Mixer shower
• Power shower

UK Shower market by Product,

type and channel
Consumer issues on showers
• Poor pressure
• Fluctuations in temperature Industry Analysis
• Breaking down of showers
• Stiff valves
• Leaks in seals LOW Threat of Threat of new MODERATE
substitutes entrants
Launch of Aqualisa Quartz
• 3 years of R&D
• Huge cost involved in production LOW Bargaining Bargaining HIGH
• Innovative breakthrough power of power of
• Easy to install
• Premium priced supplier buyer
Issues faced by Aqualisa
• Low sales of Quartz Rivalry among
• Plumber issues – HIGH
• Resistant to change
competitors
• Did not prefer electronic showers
• Wanted reliability
• Did not want to switch brands
Competitor Analysis SWOT

STRENGTH WEAKNESS
• Strong R&D • Low brand awareness
• Premium brand with as compared to
Triton good quality showers competitor
Mira • Plumber relationship
15%
Gainsborough
not so strong
1%
1% 30%
1% Aqualisa
2%
3% Masco
7% Ideal standard OPPORTUNITY THREATS
7% Heatrae Sadia • 40% of the UK homes • Competitors moving
Bristan
have not been tapped ahead in product
11% 22%
Grohe
• Technological quality
advancement • Consumers started to
Hansgrohe
think the brand as
Others over priced
Customer analysis Unit sold by channel and product type
SEGMENT Preference Decision Channel
Maker % of total
Channel Electric Mixed Power Total units sold
Premium design Consumer Showroom by channel

Standard Performance & Plumber Trade shops DIY 550000 80000 20000 650000 36%
service
Showrooms 55000 70000 20000 145000 8%
Value Price Plumber Trade shops
Trade shops 330000 400000 110000 840000 47%
DIY Easy Consumer DIY shops
Other 165000    165000 9%
installation

• 47% of the sales are through trade shops

• Only 8% of the sales from showrooms i.e.
premium segment

Importance of Plumber
• 73% of the selection for showers was made by plumbers, therefore they were highly influential.
• They preferred to install a single shower brand.
• Did not prefer innovative products.
• Switching cost between brands was high
 Main Objectives for Aqualisa

• Increase sales of Quartz

• Convince plumbers about the benefits of Quartz
• Increase penetration in distribution channel
• Maintain market share for current products

Measures taken by Aqualisa

• Targeted DIY segment
• Targeted developers
• Targeted consumers directly
 Suggestions

• Targeting the premium segment since their majority of the products lie in the premium segment.
• Target standard and value segments to retain market share.
• 40% of the population do not use showers so targeting them and influencing them to use showers will bring first
mover advantage.
• Only 25% of the showrooms had Aqualisa’s product so increase channel penetration.
• Effective brand campaign to increase brand awareness.
• Build relationship with plumbers since they are key influencers by giving them benefits like commission.
• Educate customers on “easy installation aspect”