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How do

people
bath??

Today, lets travel to UK

100% of the population


has bathtubs

60% of the
population has
showers

& one of the leading


shower making company
is

Todays Agenda
Case Overview
Needs and Wants
Four Ps
Aqualisa Quartz
Value Proposition
The Problem
Issue Tree
Final Recommendation
Conclusion

Marketing Concepts
Studied
Marketing Mix
Consumer Behaviour
STP/Brand Positioning
Behaviour Segmentaion Breakdown with
Issue Tree

Case Overview
Aqualisa is a UK shower manufacturer: a strong
reputation, a premium brand & great service.
Aqualisa has invested 5.8 million to develop a
breakthrough product (May 2001), the Quartz
shower that positions itself superiorly in terms of
quality, technology, design and ease of
installation.
Marketing strategy to generate sales momentum
for Aqualisa Quartz??

Consumers

Consumer did not like!


Little
understanding
product options

Poor Pressure
Varying Temperature
Shower broke down or went
wrong
Hard-to-turn
valves,
leaky
seals, and worn-out showers.
( Hence, almost half the U.K.
shower market consisted of
sales of replacement showers)
Consumers

were

generally

of

Low Brand awareness


Lump
sum
consumers

prices

for

Unaware about cost break


down
(labor,
material,
excavation, etc).

4 P Analysis
Product
Showers with
Various
categories.
Type of Shower :
- Electric Shower
- Mixer Shower
- Power Shower

Price

Place /
Distribution

Premium
Trade Shop
Standard
Distributor
Middle-Low Showrooms
DIY Outlets

Promotion
Advertisemen
t
(ex. Brochure)
Web

Product & Price

Pricing Segment
Premium Segment Consumer :
- Shopped in showrooms
- Granted high performance and service
- Style determined selection
Standard price Segment :
- Emphasize performance
and service
- Product selection rely on
plumber

Value Segment :
- Concern with convenience and
price
- Avoid solutions that required any
excavation
- Product selection rely on plumber
Do-it-yourselfers Segment :
- Concerned with convenience- and
Shopped at large retail outlets
price
- Interested in inexpensive models
that were easy to install, even
though bulky and unattractive
- Overwhelming choice : Electric
showers
- Popular among landlords &

Ofered discount, mass market, do-it-yourself products DIY


Cheaper and easier to retroft
The Gainsborough brand was available in 70% of DIY Sheds

Carried products across all available brands


Their primary customer was the plumber
The Aqualisa brand was available in 40% of trade shops

Preferred to carry high-end product lines and brands


Various shower and bath options
Ofered installation services by subcontracting
The Aqualisa brand was sold in about 25% of them.

High loyalty to product Plumbers


73% sales came from plumbers
Advice a brand for consumer

DlY Shed
Showroo
m
Trade
Shop
Plumbers

Channels of Distribution

Plumbers

Had high technical expertise.


Strong influence on consumers.
Consumers often had to wait six months due
to shortage
Charge about 40 to 80 per hour.
Plumbers Electronic Syndrome:
Loyal to single brand
Distrusted innovation cause Quartz
failure in the market.

Quartz the Breakthrough


Product

The are 2 versions:

To
install
shower:

the

The
Quartz
Standard
Shower
The Quartz Pumped
Quartz
Shower

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

With
technology:

Quartz

Installation time of a half-day


Plumbers were finding that
the
install
was
so
straightforward
The Quartz shower provided
efficient and reliable water
pressure and temperature
one touch control
the temperature control is
automatic

Quartz Value
Proposition
VALUE
Easy to install
PLUMBERS

More proftable able to do more installation


Take 0.5 day to install which is only 25% of
previous times
Even apprentice can do the installation
Efficient and reliable water pressure and
temperature

CONSUME
RS

Safe to use for kids and elder people


One touch control with red light indicator
Much easier to install for DIY sector
Excellent design and aesthetics, which
increases ownership pride

Initial Promotion
Curtain raisers at major shows like
Bathroom Expo: awarded top prize!
Demonstrations & Press Events
Highly appreciated by the press on
its cleverness and elegant design
Featured on the covers of trade
journals

The Problem

The Issue
Tree

Marketing Strategy

Cost and Benefit


Individual

C
O
S
T

B
E
N
E
F
I
T

Developers

Plumbers

Premium
&Standard

DIY

Price Sensitive

Dont like
innovation

Low brand
awareness

Change
premium brand
perception

Small market

Costly to
convert

Independent
of plumber
influence

Large market

Premium
brand
recognition

Cheaper

Largest
market
share
Influence
plumber

Strong
influence to
customer

Target Consumers
Directly
Pros
Target consumers directly, essentially a pull
strategy, and build a consumer brand.
Will be able to better compete against Triton, the
market leader.
Cons
A costly strategy for Aqualisa.
Must be consistent to be effective (out of sight,
out of mind).

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.
Must be consistent to be effective (out of sight,
out of mind).
Potential cannibalization.

Target Developers
Pros
Could sell in large volume.
Dealing with developers could simplify sales and
make it less costly for Aqualisa.
Will force plumbers to familiarize themselves
with the product.
Cons
It could take time for the product to get to
consumers.
Could be a tough sell due to premium price.
Only represents 15% of the market.

Target Trade Shops


and Plumbers
Pros
Plumbers have direct contact with final
consumer.
54% of mixer showers installations are done by
plumbers, and trade shops represent 46.7% of
the UK shower market
Plumbers have big influence on decision making
Cons
process.
Plumbers distrust innovation.
Plumbers may be difficult to sway and could take
time to change their perception.
Trade shops carry other brands.

Final Recommendation

Target Trade Shops


and Plumbers!

Rationale

Quartz sales are expected to reach 184,500,000


(most likely scenario), which is 4 times Aqualisas
current sales.

Plumbers will become interested because they can


become 4 times more productive and 2 times more
profitable.

Consumers will become interested because they can


get a better product for their money: a premium
product with more benefits for less, and will
experience less discomfort.

Aqualisa will develop and strengthen its relationship


within the distribution channels and establish long-

Target Trade Shops


and Plumbers
UK Shower Market
Do-It-Yourself Sheds
Trade Shops

Showrooms
Other (Electrical wholesalers)

9%

36%

47%
8%

(Total Units Sold, 2000)

Evaluation of
Alternatives

CRITERIA
WEIGHT OF CRITERIA

30%

20%

Impact on
channels
Sales
of
Revenues distributio
Potential
nRelationsh
ip

20%

15%

15%

100%

Total
Market
share

Product
Awarenes
s

Costs

Weighted
Average

ALTERNATIVES
Target Trade Shops and Plumbers

7.25

Target DIY

4.90

Target Consumers Directly

4.75

Target Developers

3.60

Conclusion
Create an intensive Marketing
communicating
campaign to target
market (consumer) & target influencer
(plumbers)
Focus in premium market shower to
increase their sales in Quartz product
Enhance market research to fnd what
customer wants and needs of shower
products really are

Thank You..!
Group 6 Wikreate
Akshay Hiremath
Nimisha Nasa
Rahul Joshi
Saurabh Wankhade
Swati Singla