Aqualisa Answers | Advertising | Brand


1 Customer Segmentation and characteristics:
Segment Premium Characteristics 1. Shopped in Showrooms 2. Assumed high performance and service 3. Style determined the selection 1. 2. 1. 2. 3. 4. 1. 2. 3. 1. 2. 3. 4. Emphasized on performance and sevice Relied on independent plumber for shower selection Looked for convenience of installation low price criteria Avoided solutions requiring excavation Tended to rely on independent plumber for shower selection Shopped at large retail outlets Interested in easy to install and inexpensive models Preferred electric showers Preffered reliable, nice looking products Preferred products with capability to work in multiple settings Price sensitive, not interested in premium valves Chose the products themselves Aqualisa Offerings Aquastyle Quartz Standard Quartz Pumped Aquaforce 2.0/3.0 Bar Aquavalve 609 Aquastream Thermostatic Aquaforce 1.0/1.5 Bar Aquavalve Value Aquastream Manual



DIY customers




1.2 Channels:
Channels Characterstics Aqualisa Presence



DIY sheds

1. Carried products across all available brands 2. Primary customer was the plumber Aqualisa brand was available in 40% 3. Tended to stock whatever there was demand for of trade shops 4. Didn’t have the time to learn all the features and benefits of the items they offer 5. Focussed only on the right stock of products that are in demand 1. Distributors supplied showrooms 2. Tended to be more high-end 3. Led consumers through the process of selecting and designing a bathroom the Aqualisa brand was sold in 4. Allowed the consumer a chance to view the product in a about 25% of them pleasant environment 5. Preferred to carry high-end product lines and brands 6. Offered installation services by subcontracting with contractors and independent plumbers 1. offered discount Gainsborough brand was available 2. mass-market, do-it-yourself products in 70% of the approximately 3,000 3. Electric showers led sales DIY outlets in the U.K.

1.3 Competition: Top UK shower market competitors including Aqualisa have been shown below with their market ranking and market share in each kind of shower products:
Market Ranking 1 2 3 4 Electric Showers Triton Aqualisa Mira Heatrae Sadia Market Share 44% 17% 14% 4% Mixer Showers Market Share Mira 36% Aqualisa 21% Ideal Standard 11% Masco 9% Power Showers Market Share Mira & Masco 23% & 23% Triton 17% Aqualisa 16.70% -

Mrg.K.1.355 A good mix of product offerings Good business growth in a matured market Good profitability (around 25%) Strong presence in Tradeshops and DIY outlets Strong reputation in terms of quality and service Aquavalve 609 highly Recommended by plumbers Electronic showers not trusted by plumbers and consumers Consumers have low awareness about products Sales teams do not focus much on new customer development Lower presence in showrooms Considered a premium product by developers Unique product offering (Quartz) No competition in market with Quartz shower Scope of market expansion 40% of houses do not have showers Maturing categories. shower market is a matured market and can be roughly estimated to be around € 400 million market  Showers in U.K. €67. lead time availability of only 2 years Aqualisa´s own products may face competition from quartz SWOT Analysis .824 €14.956 €31. products. Only about 60 percent of U.K. homes had showers  Archaic plumbing (mostly gravity fed) was common in many homes leading to low water pressures  Majority of the market revenues come from Electric showers followed by mixer and power showers  More than 70% of the shower selection is influenced by the plumbers  Most of the shower companies in UK have low brand awareness except Triton Company  Aqualisa is the third largest company in the UK shower market by sales volumes and second in mixer showers  It has a good product mix with product offerings in all the segments and across all the channels in UK  Aqualisa has a revenue of around € 68 million with a base profit of around 25%  It has a reputation for providing good quality and service Aqualisa Financial Data (€ in thousands) Revenue Gross margin Expenses Op. or services Competition may catch up soon. were plagued with problems.4 Company and Market environment: Market Environment  U.469 €17.

Booster pump total cost calculation: Aquavalve 609 standard with std. Quartz shower Value proposition for Plumbers a).0/1. Since the Quartz shower is easier to install plumber can send his younger apprentices also for installation.00 A cost benefit of €2120 .080.5 has been explained below:  Cost saving Quartz Pumped Premium total cost calculation: Quartz Pumped Premium Retail Price €1.00 Total Cost €1. as it does not require excavation and the remote processor can be easily placed at a convenient location b).120. Quartz Shower Value proposition for consumers The value proposition for installing Quartz premium compared to Aquavalve609 standard with Aquaforce 1. Booster pump Aquavalve 609 standard MRP €715.5 Bar MRP Plumbing cost for 2 Days (16 hrs) @ €60/hr Total Cost €445.00 Aquaforce 1. again. Even without the booster pump Aquavalve 609 installation would be more expensive than the Quartz Pumped Premium for a consumer      No requirement of excavation Flexibility of keeping the pump and valve unit (processor) at a convenient remote location Better water pressure and temperature control Safe and easy to use for children as well as elderly Satisfaction of having a latest and premium product 3.00 Plumbing costs for 4 hours @ €60/hr €240.0/1. it allows him to take more work at hand c).320.2. Quartz shower takes only half a day for installation so the plumber can take almost 4 times jobs in hand which will help him earn more money .00 Aquavalve 609 standard with std.00 €2.€1320 = €800 for the consumer.00 €960. Quartz shower is easier to install.

with 10% margin a plumber may save €108 On each Aquavalve 609 std. Aqualisa should target Plumbers as well as the consumers 4. As the product is very simple to install and use.1 Considering a logical order Aqualisa should target the Plumbers first: Looking at the below mentioned facts: (HBS. second visits that are paid out of plumbers pocket will be minimized. with booster pump.600 e). Exhibit 5) Independent Plumbers make 54% of the installations of mixer showers in the UK shower market. plumbers can expect better service for the shower from Aqualisa f).5 Days 200 Installations 100 800 800 hours * € 60 = € 48000 €108 * 200 = € 21600 €69. with 10% margin a plumber may save €116 In 2 days.d). a plumber can fix only 1 Aquavalve 609 std. Aqualisa Quartz: Simply a Better Shower. Since quartz is a new product from Aqualisa and Aqualisa would like to increase its sales in the market.800 0. a plumber can fix around 4 Quartz pumper premium thus earning €432 in 2 days Even we reduce the margin of plumber to a much smaller percentage he will be earning more money by installing Quartz showers Plumber Earnings with Quartz Shower installations Number of days for each quartz a installation taken by plumbers number of quartz shower installation done by plumbers/ b year number of days spent by plumbers for shower c installations = a*b total hours spent by plumbers on shower installation d @8hrs/day e total earning (@€60/hour) f earnings by markup g total earning (e+f) Plumber Earnings with Mixer Shower installations Number of days for each mixer shower installation taken by a plumbers 2 Days number of mixer shower installation done by plumbers/ b year 50 Installations number of days spent by plumbers for shower c installations = a*b 100 total hours spent by plumbers on shower installation d @8hrs/day 800 e total earning (@€60/hour) 800 hours * € 60 = € 48000 f earnings by markup €116 * 50 = € 5800 g total earning (e+f) €53. with booster pump thus earning €116 in 2 days In 2 days. Exhibit 4) The plumbers influence more than 70% of the shower selection for mixer showers  . plumbers are also directly or indirectly involved in other installation methods  (HBS. thus saving cost and effort for the Plumbers 4. Aqualisa Quartz: Simply a Better Shower. Let us consider that plumbers get 10% margin on MRP of the shower as they directly make the purchases from the tradeshops      On each Quartz pumper premium.

Also.2 As it is a better value proposition for consumers than plumbers it is ideal to promote the Quartz shower in front of the consumers as well. The product has a winning edge due to its uniqueness. ease of use and safety. Action Plan to Target Plumbers:       Create special Plumber awareness programmes showcasing them the ease of installation of Quartz and its superior functionalities. as initially concluded Quartz is a high value proposition for the plumbers as well though based on their past experiences with the electronic shower products and distrust in innovation they are unable to realize the value of this proposition for themselves. in order to promote Quartz the plumbers may start pointing out deficiencies in the existing Aqualisa products such as Aquavalve609.Shower selection Consumer makes the selection himself 23% Consumer influenced by the Plumber for selection 73% On the basis of the above-mentioned facts it can be determined that Plumbers act as collaborators and have a very high influence over the consumers and thus largely affect the sales of the shower products in the UK market. In order to promote the product in front of customers the following action plan must be incorporated: . Emphasize on the increase in earning they may get by saving time and better utilization of the apprentices Give promotional offers such as incremental discounts on buying a 200-250 showers per quarter Reassure good service and quick replacements in case of any problems with the products Give 2 years warranty on complete cost reimbursements including service cost of plumbers for any break down Create special brochures describing the steps for installation of the shower etc. overall low cost. 4. Familiarizing the plumbers with the product and showcasing them the value that Quartz can provide to them as well as the consumers can boost the sales of the product Though there is a threat involved.

For standard customers the advertising should focus on cost benefits For Premium customers the advertising should focus on innovative features and functionalities of the Quartz • • • Considering the cost of a half page advertisement in a daily paper €5000 Weekly ads on each Sunday for first year to target maximum readership i. additional sales team should be employed to target the new customers. Specific advertising campaigns targeting the premium as well as standard customer should be launched aggressively as the product is still in its introductory stage. Aqualisa can capitalize on this fact and generate more sales. The sales team is currently spending 90% of the efforts for maintaining the existing customers and 10% for the new customers. A large part of the UK market i. The product should be placed in more showrooms currently only 25% of the showrooms have Aqualisa products.1.000/year .e.e. As mentioned by Rawlinson the product was an immediate hit in the showrooms exhibiting it. this should be changed. 40% do not have showers. 50 times/year Total cost of print advertising will be €250. 2. Better placement of product in the showrooms will increase customer awareness about the product with the premium customer 3.

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